0001367644-22-000024 | 10-K | XBRL Viewer | Emergent Biosolutions INC

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Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 576.1	$ 621.3
Restricted cash	0.2	0.2
Accounts receivable, net	274.7	230.9
Inventories, net	350.8	307.0
Prepaid expenses and other current assets	70.3	36.5
Total current assets	1,272.1	1,195.9
Property, plant and equipment, net	800.1	644.1
Intangible assets, net	604.6	663.1
Goodwill	224.9	266.7
Other assets	57.3	113.4
Total assets	2,959.0	2,883.2
Current liabilities:
Accounts payable	128.9	136.1
Accrued expenses	51.7	46.9
Accrued compensation	88.7	84.6
Debt, current portion	31.6	33.8
Other current liabilities	72.9	83.1
Total current liabilities	373.8	384.5
Contingent consideration, net of current portion	4.5	34.2
Debt, net of current portion	809.4	841.0
Deferred tax liability	94.9	53.2
Contract liabilities, net of current portion	4.7	55.5
Other liabilities	52.7	67.8
Total liabilities	1,340.0	1,436.2
Stockholders’ equity:
Preferred stock, $0.001 par value; 15.0 shares authorized, no shares issued and outstanding	0.0	0.0
Common stock, $0.001 par value; 200.0 shares authorized, 55.1 and 54.3 shares issued; 51.3 and 53.1 shares outstanding, respectively.	0.1	0.1
Treasury stock, at cost, 3.8 and 1.2 common shares, respectively	(152.2)	(39.6)
Additional paid-in capital	829.4	784.9
Accumulated other comprehensive loss, net	(16.1)	(25.3)
Retained earnings	957.8	726.9
Total stockholders’ equity	1,619.0	1,447.0
Total liabilities and stockholders’ equity	$ 2,959.0	$ 2,883.2

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Stockholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000.0
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000.0
Common stock, shares issued (in shares)	55,100,000	54,300,000
Common stock, shares outstanding (in shares)	51,300,000	53,100,000
Treasury stock (in shares)	3,800,000	1,200,000

Consolidated Statements of Operations - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Total revenues	$ 1,792,700,000	$ 1,555,400,000	$ 1,106,000,000
Operating expenses:
Research and development	234,000,000.0	234,500,000	226,200,000
Selling, general and administrative	348,400,000	303,300,000	273,500,000
Goodwill impairment	41,700,000	0	0
Amortization of intangible assets	58,500,000	59,800,000	58,700,000
Total operating expenses	1,440,100,000	1,121,600,000	991,900,000
Income from operations	352,600,000	433,800,000	114,100,000
Other income (expense):
Interest expense	(34,500,000)	(31,300,000)	(38,400,000)
Other, net	(3,700,000)	4,700,000	1,700,000
Total other income (expense), net	(38,200,000)	(26,600,000)	(36,700,000)
Income before income taxes	314,400,000	407,200,000	77,400,000
Income taxes	83,500,000	102,100,000	22,900,000
Net income	$ 230,900,000	$ 305,100,000	$ 54,500,000
Net income per common share
Basic (in dollars per share)	$ 4.32	$ 5.79	$ 1.06
Diluted (in dollars per share)	$ 4.27	$ 5.67	$ 1.04
Shares used in computing net income per share
Basic (in shares)	53.5	52.7	51.5
Diluted (in shares)	54.1	53.8	52.4
Product sales, net
Revenues:
Services	$ 1,023,900,000	$ 989,800,000	$ 903,500,000
Operating expenses:
Cost of CDMO	382,000,000.0	392,000,000.0	372,300,000
Total CDMO
Revenues:
Total CDMO	634,600,000	450,500,000	80,000,000.0
Operating expenses:
Cost of CDMO	375,500,000	132,000,000.0	61,200,000
Services
Revenues:
Services	334,900,000	166,700,000	80,000,000.0
Leases
Revenues:
Leases	299,700,000	283,800,000	0
Contracts and grants
Revenues:
Services	$ 134,200,000	$ 115,100,000	$ 122,500,000

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 230.9	$ 305.1	$ 54.5
Other comprehensive income (loss), net of tax:
Foreign currency translation	(1.0)	(1.7)	0.4
Unrealized gains (losses) on hedging activities	6.5	(9.4)	(1.6)
Unrealized gain (losses) on pension benefit obligation	3.7	(4.3)	(3.2)
Total other comprehensive income (loss), net of tax	9.2	(15.4)	(4.4)
Comprehensive income (loss), net of tax	$ 240.1	$ 289.7	$ 50.1

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 230.9	$ 305.1	$ 54.5
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	42.4	51.0	26.7
Depreciation and amortization	123.8	114.5	110.7
Change in fair value of contingent obligations, net	2.9	31.7	24.8
Amortization of deferred financing costs	4.1	3.5	3.0
Impairments	41.7	29.0	12.0
Deferred income taxes	46.9	(2.4)	(1.1)
Write off of contract asset and liability	(17.2)	0.0	0.0
Other	2.0	(5.2)	(0.2)
Changes in operating assets and liabilities:
Accounts receivable	(48.2)	49.0	(8.2)
Inventories	(44.0)	(83.2)	(16.7)
Prepaid expenses and other assets	(24.7)	(29.2)	(39.1)
Accounts payable	(2.5)	19.8	16.5
Accrued expenses and other liabilities	(9.2)	19.4	(15.1)
Accrued compensation	4.0	21.8	4.2
Contract liabilities	(31.8)	11.2	16.0
Net cash provided by operating activities	321.1	536.0	188.0
Cash flows from investing activities:
Purchases of property, plant and equipment	(225.0)	(141.0)	(86.9)
Milestone payment from prior asset acquisition	0.0	(10.0)	(10.0)
Net cash used in investing activities	(225.0)	(151.0)	(96.9)
Cash flows (used in) provided by financing activities:
Purchases of treasury stock	(106.0)	0.0	0.0
Proceeds from revolving credit facility	0.0	0.0	130.0
Proceeds from senior unsecured notes	0.0	450.0	0.0
Principal payments on convertible senior notes	(10.6)	0.0	0.0
Principal payments on revolving credit facility	0.0	(373.0)	(105.0)
Principal payments on term loan facility	(25.3)	(14.1)	(11.3)
Proceeds from stock-based compensation activity	15.9	31.6	8.2
Taxes paid for stock-based compensation activity	(13.8)	(13.8)	(7.4)
Debt issuance costs	0.0	(8.4)	0.0
Contingent consideration payments	(1.2)	(2.8)	(50.4)
Net cash (used in) provided by financing activities:	(141.0)	69.5	(35.9)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(0.3)	(1.0)	0.4
Net change in cash, cash equivalents and restricted cash	(45.2)	453.5	55.6
Cash, cash equivalents and restricted cash at beginning of period	621.5	168.0	112.4
Cash, cash equivalents and restricted cash at end of period	576.3	621.5	168.0
Supplemental disclosure of cash flow information:
Cash paid during the year for interest	30.4	21.0	34.5
Cash paid during the year for income taxes	71.6	109.3	30.8
Supplemental information on non-cash investing and financing activities:
Purchases of property, plant and equipment unpaid at period end	20.0	22.0	12.3
Purchases of treasury stock	6.6	0.0	0.0
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents	576.1	621.3	167.8
Restricted cash	0.2	0.2	0.2
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total	$ 576.3	$ 621.5	$ 168.0

Consolidated Statement of Changes in Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Total	$0.001 Par Value Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2018		52.4		1.2
Beginning balance at Dec. 31, 2018	$ 1,010.9	$ 0.1	$ 688.6	$ (39.6)	$ (5.5)	$ 367.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation activity (in shares)		0.6
Share-based compensation activity	27.5		27.5
Net income	54.5					54.5
Other comprehensive income (loss), net of tax	(4.4)				(4.4)
Ending balance (in shares) at Dec. 31, 2019		53.0		1.2
Ending balance at Dec. 31, 2019	1,088.5	$ 0.1	716.1	$ (39.6)	(9.9)	421.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation activity (in shares)		1.3
Share-based compensation activity	68.8		68.8
Net income	305.1					305.1
Other comprehensive income (loss), net of tax	$ (15.4)				(15.4)
Ending balance (in shares) at Dec. 31, 2020	54.3	54.3		1.2
Ending balance at Dec. 31, 2020	$ 1,447.0	$ 0.1	784.9	$ (39.6)	(25.3)	726.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation activity (in shares)		0.8
Share-based compensation activity	44.5		44.5
Net income	230.9					230.9
Repurchases of stock (in shares)				(2.6)
Repurchases of stock	(112.6)			$ (112.6)
Other comprehensive income (loss), net of tax	$ 9.2				9.2
Ending balance (in shares) at Dec. 31, 2021	55.1	55.1		3.8
Ending balance at Dec. 31, 2021	$ 1,619.0	$ 0.1	$ 829.4	$ (152.2)	$ (16.1)	$ 957.8

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001

Nature of the business and organization	12 Months Ended
Nature of the business and organization	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of the business and organization	Nature of the business and organization Organization and business Emergent BioSolutions Inc. (the "Company" or "Emergent") is a global life sciences company focused on providing innovative preparedness and response solutions addressing accidental, deliberate, and naturally occurring Public Health Threats (PHTs). The Company's solutions include a product portfolio, a product development portfolio, and a contract development and manufacturing (CDMO) services portfolio. The Company is focused on the following five PHT categories: chemical, biological, radiological, nuclear and explosives (CBRNE); emerging infectious diseases (EID); travel health; emerging health crises; and acute/emergency care. The Company has a product portfolio of eleven products (vaccines, therapeutics, and drug-device combination products) that contribute a substantial portion of its revenue. The Company has one product candidate that is procured under special circumstances by the U.S. government (USG), although it is not approved by the U.S. Food and Drug Administration (FDA). The Company recently reorganized the structure of its business with a focus on markets and customers. As such, the key components of the business structure include a Government - Medical Countermeasures (MCM) business line, a Commercial business line and a Services line focused on CDMO. The Company's products and services include: Government - MCM Products ▪AV7909®, is a procured product candidate being developed as a next generation anthrax vaccine for post-exposure prophylaxis of disease resulting from suspected or confirmed Bacillus anthracis exposure. The USG has largely switched from procuring BioThrax to AV7909 for the Strategic National Stockpile (SNS) prior to its approval by the FDA; and ▪BioThrax®, the only vaccine licensed by the FDA, for the general use prophylaxis and post-exposure prophylaxis of anthrax disease; ▪ACAM2000®, the only single-dose smallpox vaccine licensed by the FDA for active immunization against smallpox disease for persons determined to be at high risk for smallpox infection; ▪BAT®, the only heptavalent antitoxin licensed by the FDA and Health Canada for the treatment of botulism; and; ▪CNJ-016®, the only polyclonal antibody therapeutic licensed by the FDA and Health Canada to address certain complications from smallpox vaccination. ▪Raxibacumab injection, a fully human monoclonal antibody therapeutic licensed by the FDA for the treatment and prophylaxis of inhalational anthrax; ▪Anthrasil®, the only polyclonal antibody therapeutic licensed by the FDA and Health Canada for the treatment of inhalational anthrax; ▪RSDL®, the only medical device cleared by the FDA to remove or neutralize the following chemical warfare agents from the skin: tabun, sarin, soman, cyclohexyl sarin, VR, VX, mustard gas, and T-2 toxin. ▪Trobigard® atropine sulfate, obidoxime chloride AUTO-INJECTOR, is a combination drug-device auto-injector procured product candidate that contains atropine sulfate and obidoxime chloride. It has not been approved by the FDA, but it is procured by certain authorized government buyers under special circumstances for potential use as a nerve agent countermeasure. Commercial Products ▪NARCAN® (naloxone HCl) Nasal Spray, the first needle-free formulation of naloxone approved by the FDA and Health Canada, for the emergency treatment of known or suspected opioid overdose as manifested by respiratory and/or central nervous system depression; Recently, the Company licensed an authorized generic of naloxone nasal spray to Sandoz; and ▪Vaxchora® (Cholera Vaccine, Live, Oral), the only single-dose oral vaccine licensed by the FDA and the European Medicines Agency (EMA) for the prevention of cholera; and ▪Vivotif® (Typhoid Vaccine Live Oral Ty21a), the only oral vaccine licensed by the FDA for the prevention of typhoid fever. Services - Contract Development and Manufacturing The Company's services line focused on CDMO offerings cover development services, drug substance manufacturing, drug product manufacturing, and when necessary, suite reservations, which depending on facts and circumstances could be considered a lease. These services are provided across the pharmaceutical and biotechnology industries as well as the USG and non-governmental organizations. The Company's technology platforms include mammalian, microbial, viral, plasma and advanced therapies utilizing the Company's core capabilities for manufacturing to third parties on a clinical and commercial (small and large) scale. Additional services include fill/finish formulation and analytical development services for injectable and other sterile products, inclusive of process design, technical transfer, manufacturing validations, aseptic filling, lyophilization, final packaging and stability studies, as well as manufacturing of vial and pre-filled syringe formats on multiple platforms. The Company operates as one operating segment.

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of significant accounting policies

Basis of presentation and consolidation

The accompanying consolidated financial statements include the accounts of Emergent and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates

The preparation of financial statements requires management to make estimates, judgments and assumptions that affect reported amounts and disclosures for asset impairments, revenue recognition, allowances for doubtful accounts, inventory, depreciation and amortization, business combinations, contingent consideration, stock-based compensation, income taxes, and other contingencies. Management continually re-evaluates its estimates, judgments and assumptions. These estimates are sometimes complex, sensitive to changes in assumptions and require fair value determinations using Level 3 fair value measurements. Actual results may differ materially from those estimates.

Cash, cash equivalents and restricted cash

Cash equivalents are highly liquid investments with a maturity of 90 days or less at the date of purchase and consist of time deposits and investments in money market funds with commercial banks and financial institutions. Also, the Company maintains cash balances with financial institutions in excess of insured limits. Restricted cash includes cash that is not readily available for use in the Company's operating activities. Restricted cash is primarily comprised of cash pledged under letters of credit.

Fair value measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value include:


Level 1 —			Observable inputs for identical assets or liabilities such as quoted prices in active markets;
Level 2 —			Inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3 —			Unobservable inputs in which little or no market data exists, which are therefore developed by the Company using estimates and assumptions that reflect those that a market participant would use.

On a recurring basis, the Company measures and records money market funds (level 1), contingent purchase consideration (level 3) and interest-rate swap arrangements (level 2) using fair value measurements in the accompanying financial statements. The carrying amounts of the Company's short-term financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable and convertible senior notes approximate their fair values due to their short maturities. The carrying amounts of the Company’s long-term variable interest rate debt arrangements (level 2) approximate their fair values.

Significant customers and accounts receivable

Billed accounts receivable are stated at invoice amounts and consist of amounts due from the USG, commercial CDMO customers, as well as amounts due under reimbursement contracts with other government entities and non-government organizations. The Company's branded and generic opioid overdose reversal product is sold commercially through physician-directed or standing order prescriptions at retail pharmacies, as well as state health departments, law enforcement agencies, state and local community based organizations, substance abuse centers and federal agencies. If necessary, the Company records a reserve for doubtful receivables to allow for amounts which may be unrecoverable. This provision is based upon an analysis of the Company's prior collection experience, customer creditworthiness and current economic trends. Amounts determined to be uncollectible are charged or written-off against the reserve. Unbilled accounts receivable relates to various service contracts for which work has been performed and the Company has a right to bill but invoicing has not yet occurred. Contract assets include revenues recognized in advance of billings and the Company does not have a right to invoice the customer under the terms of the contract. The Company has receivables from contracts containing lease components. At each reporting period, the Company assesses whether it is probable that the Company will collect all future lease payments. The Company considers payment history and current credit status when assessing collectability. The Company does not adjust our receivables for the effects of a significant financing component at contract inception if we expect to collect the receivables in one year or less from the time of sale.

Concentration Risk

Customers

The Company has long-term contracts with the USG that expire at various times from 2022 through 2029. The Company has derived a significant portion of its revenue from sales of ACAM2000 and Anthrax Vaccines under contracts with the USG. The Company's current USG contracts do not necessarily increase the likelihood that it will secure future comparable contracts with the USG. The Company expects that a significant portion of the business will continue to be under government contracts that present a number of risks that are not typically present in the commercial contracting process. USG contracts for ACAM2000 and Anthrax Vaccines are subject to unilateral termination or modification by the government. The Company may fail to achieve significant sales of ACAM2000 and Anthrax Vaccines to customers in addition to the USG, which would harm their growth opportunities. The Company's other product sales, largely Nasal Naloxone Products, are largely sold commercially through physician-directed or standing order prescriptions at retail pharmacies, as well as to state health departments, local law enforcement agencies, community-based organizations, substance abuse centers and other federal agencies. Our CDMO customers are generally third-party pharmaceutical companies.

Although the Company seeks to expand its customer base and to renew its agreements with its customers prior to expiration of a contract, a delay in securing a renewal or a failure to secure a renewal or securing a renewal on less favorable terms may have a material adverse effect on the Company’s financial condition and results of operations.

The Company’s accounts receivable do not represent a significant concentration of credit risk. The USG accounted for approximately 50%, 64% and 61% of total revenues for 2021, 2020 and 2019, respectively. The Company’s accounts receivable as of December 31, 2021 and 2020, consist primarily of amounts due from the USG or other large multi-national highly reputable customers for product sales, CDMO services or from government agencies under government grants. Management does not deem credit risk to be significant.

Financial Institutions

Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk.

Lender Counterparties

There is lender counterparty risk associated with the Company's revolving credit facility and derivatives instruments. There is risk that the Company’s revolving credit facility investors and derivative counterparties will not be available to fund as obligated. If funding under the revolving credit facility is unavailable, the Company may have to acquire a replacement credit facility from different counterparties at a higher cost or may be unable to find a suitable replacement. The Company seeks to manage risks from its revolving credit facility and derivative

instruments by contracting with experienced large financial institutions and monitoring the credit quality of its lenders. As of December 31, 2021, the Company does not anticipate nonperformance by any of its counterparties.

Inventories

Inventories are stated at the lower of cost or net realizable value with cost being determined using a standard cost method, which approximates average cost. Average cost consists primarily of material, labor and manufacturing overhead expenses (including fixed production-overhead costs) and includes the services and products of third-party suppliers. The Company analyzes its inventory levels quarterly and writes down, in the applicable period, inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected customer demand. The Company also writes off, in the applicable period, the costs related to expired inventory. Costs of purchased inventories are recorded using weighted-average costing. The Company determines normal capacity for each production facility and allocates fixed production-overhead costs on that basis.

The Company records inventory acquired in business acquisitions utilizing the comparative sales method, which estimates the expected sales price reduced for all costs expected to be incurred to complete/dispose of the inventory with a profit on those costs.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairments. subject to reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The cost of normal, recurring or periodic repairs and maintenance activities related to property, plant and equipment are expensed as incurred. The cost for planned major maintenance activities, including the related acquisition or construction of assets, is capitalized if the repair will result in future economic benefits.

Interest costs incurred during the construction of major capital projects are capitalized until the underlying asset is ready for its intended use, at which point the interest costs are amortized as depreciation expense over the life of the underlying asset.

The Company capitalizes internal-use software when both (a) the software is internally developed, acquired, or modified solely to meet the entity’s internal needs and (b) during the software’s development or modification, no substantive plan either exists or is being developed to market the software externally. Capitalization of qualifying internal-use software costs begins when the preliminary project stage is completed, management with the relevant authority, implicitly or explicitly, authorizes and commits to the funding of the software project, and it is probable that the project will be completed and the software will be used to perform the function intended.

The Company generally depreciates or amortizes the cost of its property, plant and equipment using the straight-line method over the estimated useful lives of the respective assets, which are summarized as follows:


Land			Not depreciated
Buildings			31-39 years
Building improvements			10-39 years
Furniture and equipment			3-15 years
Software			3-7 years
Leasehold improvements			Lesser of the asset life or lease term

Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. Repairs and maintenance costs are expensed as incurred.

The Company determines the fair value of the property, plant and equipment acquired in a business combination utilizing either the cost approach or the sales comparison approach. The cost approach is determined by establishing replacement cost of the asset and then subtracting any value that has been lost due to economic obsolescence, functional obsolescence, or physical deterioration. The sales comparison approach determines an asset is equal to the market price of an asset of comparable features such as design, location, size, construction, materials, use, capacity, specification, operational characteristics and other features or descriptions.

Income taxes

Income taxes includes federal, state, local and foreign taxes. Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis and net operating loss and R&D tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized.

Deferred income tax effects of transactions reported in different periods for financial reporting and income tax return purposes are recognized under the asset and liability method of accounting for income taxes. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment.

The Company's ability to realize deferred tax assets depends upon future taxable income as well as the limitations discussed below. For financial reporting purposes, a deferred tax asset must be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized prior to expiration. The Company considers future taxable income and ongoing tax planning strategies in assessing the need for valuation allowances. In general, if the Company determines that it is more likely than not to realize more than the recorded amounts of net deferred tax assets in the future, the Company will reverse all or a portion of the valuation allowance established against its deferred tax assets, resulting in a decrease to income taxes in the period in which the determination is made. Likewise, if the Company determines that it is not more likely than not to realize all or part of the net deferred tax asset in the future, the Company will establish a valuation allowance against deferred tax assets, with an offsetting increase to income taxes, in the period in which the determination is made.

Under sections 382 and 383 of the Internal Revenue Code, if an ownership change occurs with respect to a "loss corporation", as defined therein, there are annual limitations on the amount of net operating losses and deductions that are available. The Company has recognized the portion of net operating losses and R&D tax credits acquired that will not be limited and are more likely than not to be realized.

Because tax laws are complex and subject to different interpretations, significant judgment is required. As a result, the Company makes certain estimates and assumptions, in (1) calculating the Company's income tax expense, deferred tax assets and deferred tax liabilities, (2) determining any valuation allowance recorded against deferred tax assets and (3) evaluating the amount of unrecognized tax benefits, as well as the interest and penalties related to such uncertain tax positions. The Company's estimates and assumptions may differ from tax benefits ultimately realized.

Asset Impairment Analysis

Goodwill and Indefinite-lived Intangible Assets

Goodwill represents the difference between the purchase price and the fair value of the identifiable tangible and intangible net assets when accounted for using the purchase method of accounting. Goodwill is not amortized, but is reviewed for impairment. Goodwill is allocated to the Company's reporting units, which are components of our business for which discrete cash flow information is available one level below its operating segment. The Company evaluates goodwill and other indefinite-lived intangible assets for impairment annually as of October 1 and earlier if an event or other circumstance indicates that we may not recover the carrying value of the asset. If the Company believes that as a result of its qualitative assessment it is more likely than not that the fair value of a reporting unit or other indefinite-lived intangible asset is greater than its carrying amount, the quantitative impairment test is not required. If however it is determined that it is not more likely than not that the fair value of a reporting unit or other indefinite-lived intangible asset is greater than its carrying amount, a quantitative test is required.

The quantitative goodwill impairment test is performed using a one-step process. The process is to compare the fair value of a reporting unit with its carrying amount. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit is impaired and an impairment loss is recognized in an amount equal to that excess up to the total amount of goodwill included in the reporting unit.

When the Company has material indefinite lived intangible assets associated with in-process research and development (IPR&D) a qualitative assessment is performed. If the qualitative assessment indicates that it is not

more likely than not that the fair value of the indefinite lived intangible asset exceeds its carrying amount, the Company compares the estimated fair value of the intangible with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Determining fair value requires the exercise of judgment about appropriate discount rates, perpetual growth rates and the amount and timing of expected future cash flows (see Note 7).

Long-lived Assets

Long-lived assets such as intangible assets and property, plant and equipment are not required to be tested for impairment annually. Instead, they are tested for impairment whenever circumstances indicate that the carrying amount of the asset may not be recoverable, such as when the disposal of such assets is likely or there is an adverse change in the market involving the business employing the related assets. If an impairment analysis is required, the impairment test employed is based on whether the Company’s intent is to hold the asset for continued use or to hold the asset for sale. If the intent is to hold the asset for continued use, the impairment test first requires a comparison of undiscounted future cash flows to the carrying value of the asset. If the carrying value of the asset exceeds the undiscounted cash flows, the asset would not be deemed to be recoverable. Impairment would then be measured as the excess of the asset’s carrying value over its fair value. Fair value is typically determined by discounting the future cash flows associated with that asset. If the intent is to hold the asset for sale and certain other criteria are met, the impairment test involves comparing the asset’s carrying value to its fair value less costs to sell. To the extent the carrying value is greater than the asset’s fair value less costs to sell, an impairment loss is recognized in an amount equal to the difference. Significant judgments used for long-lived asset impairment assessments include identifying the appropriate asset groupings and primary assets within those groupings, determining whether events or circumstances indicate that the carrying amount of the asset may not be recoverable, determining the future cash flows for the assets involved and assumptions applied in determining fair value, which include, reasonable discount rates, growth rates, market risk premiums and other assumptions about the economic environment.

Contingent Consideration

The associated payments which will become due and payable for sales-based royalties and milestones result in a charge to cost of product sales in the period in which the increase is determined. Similarly, any future decrease in the fair value of contingent consideration associated with sales-based royalties and sales-based milestones will result in a reduction in cost of product sales. The changes in fair value for potential future sales-based royalties associated with product candidates in development will result in a charge to cost of product sales in the period in which the increase is determined.

Leases

The Company has operating leases for corporate offices, R&D facilities and manufacturing facilities. The Company determines if an arrangement is a lease at inception. Operating leases with future minimum lease payments in excess of 12 months and total lease payments greater than $0.1 million are included in right-of-use (ROU) assets and liabilities. The Company has elected to record expense on a cash basis for leases with minimum lease payments of 12 months or less and/or total lease payments less $0.1 million.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company uses an implicit rate when readily determinable. At the beginning of a lease, the operating lease ROU asset also includes any concentrated lease payments expected to be paid and excludes lease incentives. The Company's lease ROU asset may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately.

Revenue recognition

The Company recognizes revenue when the Company's customers obtain control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services by analyzing the following five steps: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

Multiple performance obligations

At contract inception, the Company assesses the products or services promised in a contract and identifies a performance obligation for each promise to transfer to the customer a product or service that is distinct, including evaluating whether the contract includes a customer option for additional goods or services which could represent a material right. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. Contracts sometimes include more than one product, a lease, or options for customers to purchase additional products or services in the future for free or at a discount, which gives rise to separate performance obligations. For contracts with multiple performance obligations, the Company allocates the contract price to each performance obligation on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate standalone selling price is the price observed in standalone sales to customers, however when prices in standalone sales are not available the Company may use third-party pricing for similar products or services or estimate the standalone selling price. Allocation of the transaction price is determined at the contracts’ inception.

Transaction price and variable consideration

Once the performance obligations in the contract have been identified, the Company estimates the transaction price of the contract. The estimate includes amounts that are fixed as well as those that can vary based on expected outcomes of the activities or contractual terms. The Company's variable consideration includes net profit received from sales of the Company's generic Nasal naloxone product, certain products sold on a net basis, cost-plus-fee contract terms and consideration transferred under its development contracts as consideration received can vary based on developmental progression of the product candidate. When a contract's transaction price includes variable consideration, the Company evaluates the variable consideration to determine whether the estimate needs to be constrained; therefore, the Company includes the variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration estimates are updated at each reporting date. There were no significant constraints or material changes to the Company's variable consideration estimates as of or during the twelve months ended December 31, 2021.

Product sales

For our product sales, we recognize revenue at a point in time when the Company’s performance obligations have been satisfied and control of the products transfer to the customer. To indicate the transfer of control the Company will have a present right to payment, legal title must have passed to the customer, and the customer must have the significant risks and rewards of ownership. This point in time depends on several factors, including delivery, transfer of legal title, transition of risk and rewards of the product to the customer and the Company's right to payment.

The Company's contracts for the sale of the Company's Government - MCM products include certain acceptance criteria before title passes to the customer. The primary customer for the Company's Government - MCM products and the primary source of funding for the development of its MCM product candidate portfolio is the USG. The USG

contracts for the sale of the Company's Government - MCM products are normally multi-year contracts with annual options.

For the Company’s commercial products, upon transfer of control of the goods the Company reflects estimates of the consideration that the Company expects. Prior to recognizing revenue, the Company makes estimates of the transaction price, including variable consideration that is subject to a constraint. Estimates of variable consideration include allowances for returns, specialty distributor fees, wholesaler fees, prompt payment discounts, government rebates, chargebacks and rebates under managed care plans.

Revenue is recognized to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with such variable consideration is subsequently resolved. Provisions for variable consideration revenues from sales of products are recorded at the net sales price. Calculating certain of these provisions involves estimates and judgments and the Company determines their expected value based on sales or invoice data, contractual terms, historical utilization rates, new information regarding changes in these programs’ regulations and guidelines that would impact the amount of the actual rebates, the Company's expectations regarding future utilization rates for these programs and channel inventory data. These provisions reflect the Company's best estimate of the amount of consideration to which the Company is entitled based on the terms of the contract. The Company reassesses the Company's provisions for variable consideration at each reporting date.

CDMO services

The Company performs CDMO services for third parties. Under these contracts, activities can include drug substance and drug product manufacturing services for injectable and other sterile products, and development services such as pharmaceutical product process development, process design, technology transfer, manufacturing validations, laboratory analytical development support, aseptic filling, lyophilization, final packaging, stability studies, and suite-reservations. These contracts vary in duration, activities, and number of performance obligations. Performance obligations identified under these arrangements may include drug substance and/or drug product manufacturing, technology transfer activities, and suite-reservations.

Drug substance, drug product manufacturing, development services and technology transfer performance obligations are recognized as revenue over-time because the Company’s performance does not create an asset with an alternative use and the Company has an enforceable right to payment for performance completed as work is performed. In drug product arrangements, the customer typically owns and supplies the active pharmaceutical ingredient (API), that is used in the manufacturing process; in drug substance arrangements, the customer provides certain seed material that is used in the manufacturing process. The transaction price generally contains both a fixed and variable component. The fixed component is stated in the agreement as a fixed price per unit with no contractual provision for a refund or price concession and the variable component generally results from pass-through costs that are billed at cost-plus over the life of the contract. The Company uses an input method to measure progress toward the satisfaction of the related performance obligations based on costs incurred as a percentage of total costs to complete which the Company believes best depicts the transfer of control of goods or services promised to its customers.

Suite reservations are classified as leases when the customer directs the use of the identified suite and obtains substantially all the economic benefits from the manufacturing capacity. If a customer reserves more than one suite, the allocation of contract value is based on relative selling price which varies due to size, location, capacity, production capability for drug product or drug substance, and the time of planned use. The associated revenue is recognized on a straight-line basis over the period of performance. For arrangements that contain both lease and non-lease components, consideration in the contract is allocated on a relative standalone selling price basis.

The Company’s CDMO customer contracts generally include provisions entitling the Company to a termination penalty when the contract is terminated prior to the contract’s nominal end date. The termination penalties in the customer contracts vary but are generally considered substantive for accounting purposes and create enforceable rights and obligations throughout the stated duration of the contract. The Company accounts for a contract cancellation as a contract modification. The determination of the contract termination penalty is based on the terms stated in the related customer agreement. As of the modification date, the Company updates its estimate of the transaction price, subject to constraints, and recognizes the amount over the remaining performance period or measure of progress under the arrangement.

For contracts that contain lease components, the Company assesses the collectability of the lease payments. If the collectability of the lease payments is probable, the Company recognizes lease income over the term of the

lease on a straight-line basis. If collectability is not deemed probable at any time during the term of the lease, the Company’s lease income is limited to the lesser of (i) the lease payments that have been collected from the lessee, or the straight-line recognition of the contract value. If the collectability assessment changes to probable after the Company has determined collectability is not deemed probable, any difference between the lease income that would have been recognized if collectability had always been assessed as probable and the lease income recognized to date is recognized as a current-period adjustment to lease income. Changes to the collectability of operating leases are recorded as adjustments to lease income in the consolidated statements of operations in the period that they occur.

Contracts and grants

The Company generates contract and grant revenue primarily from cost-plus-fee contracts associated with development of certain product candidates. Revenues from reimbursable contracts are recognized as costs are incurred, generally based on allowable costs incurred during the period, plus any recognizable earned fee. The Company uses this input method to measure progress as the customer has access to the development research under these projects and benefits incrementally as R&D activities occur. When applicable, the Company considers fixed fees under cost-plus-fee contracts to be earned in proportion to the allowable costs incurred in performance of the contract, the cost-to-cost measure of progress. The Company analyzes costs for contracts and reimbursable grants to ensure reporting of revenues gross versus net is appropriate. The USG contracts for the development of the Company's MCM product candidates are normally multi-year contracts.

Research and development

The Company expenses R&D costs as incurred. The Company's R&D expenses consist primarily of:

▪personnel-related expenses;

▪fees to professional service providers for, among other things, analytical testing, independent monitoring or other administration of the Company's clinical trials and obtaining and evaluating data from the Company's clinical trials and non-clinical studies;

▪costs of CDMO services for clinical trial material; and

▪costs of materials used in clinical trials and R&D.

Comprehensive income

Comprehensive income is comprised of net income and other changes in equity that are excluded from net income. The Company includes translation gains and losses incurred when converting its subsidiaries' financial statements from their functional currency to the U.S. dollar in accumulated other comprehensive income as well as gains and losses on its pension benefit obligation and derivative instruments.

Translation of Foreign Currencies

For our non-U.S. subsidiaries that transact in a functional currency other than the U.S. dollar, assets and liabilities are translated at current rates of exchange at the balance sheet date. Income and expense items are translated at the average foreign currency exchange rates for the period. Adjustments resulting from the translation of the financial statements of our foreign operations into U.S. dollars are excluded from the determination of net income and are recorded in accumulated other comprehensive income, a separate component of equity. For subsidiaries where the functional currency of the assets and liabilities differ from the local currency, non-monetary assets and liabilities are translated at the rate of exchange in effect on the date assets were acquired while monetary assets and liabilities are translated at current rates of exchange as of the balance sheet date. Income and expense items are translated at the average foreign currency rates for the period. Translation adjustments of these subsidiaries are included in other income (expense), net in our consolidated statements of income.

Earnings per share

Basic net income per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted income per common share is computed using the treasury method by dividing net income by the weighted average number of shares of common stock outstanding during the period, adjusted for the potential dilutive effect of other securities if such securities were converted or exercised and are not anti-dilutive.

Treasury stock

When stock is acquired for purposes other than formal or constructive retirement, the purchase price of the acquired stock is recorded in a separate treasury stock account, which is separately reported as a reduction of equity.

When stock is retired or purchased for formal or constructive retirement, the purchase price is initially recorded as a reduction to the par value of the shares repurchased, with any excess purchase price over par value recorded as a reduction to additional paid-in capital related to the series of shares repurchased and any remainder excess purchase price recorded as a reduction to retained earnings. If the purchase price exceeds the amounts allocated to par value and additional paid-in capital related to the series of shares repurchased and retained earnings, the remainder is allocated to additional paid-in capital related to other series of shares.

To determine the cost of treasury stock that is either sold or reissued, the Company uses the last in, first out method. If the proceeds from the re-issuance of treasury stock are greater than the cost, the excess is recorded as additional paid-in capital. If the proceeds from re-issuance of treasury stock are less than the cost, the excess cost first reduces any additional paid-in capital arising from previous treasury stock transactions for that class of stock, and any additional excess is recorded as a reduction of retained earnings.

Accounting for stock-based compensation

The Company has one stock-based employee compensation plan, the Emergent BioSolutions Inc. Stock Incentive Plan (the Emergent Plan), under which the Company may grant various types of equity awards including stock options, restricted stock units and performance stock units.

The terms and conditions of equity awards (such as price, vesting schedule, term and number of shares) under the Emergent Plan is determined by the compensation committee of the Company's board of directors, which administers the Emergent Plan. Each equity award granted under the Emergent Plan vests as specified in the relevant agreement with the award recipient and no option can be exercised after seven years from the date of grant. The Company records the estimated fair value of awards in expense on a straight-line basis over the requisite service period, which is generally the vesting period. Where awards are made with non-substantive vesting periods (for instance, where a portion of the award vests upon retirement eligibility), the Company estimates and recognizes expense based on the period from the grant date to the date the employee becomes retirement eligible.

The Company determines the fair value of restricted stock units using the closing market price of the Company's common stock on the day prior to the date of grant. The Company's performance stock units settle in the Company's stock. The fair value is determined on the date of the grant using the number of shares expected to be earned and the ending market value of the stock on the day prior to the grant date. The number of shares expected to vest is determined by assessing the probability that the performance criteria will be met and the associated targeted payout level that is forecasted will be achieved.

The Company utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below is a discussion of the Company's methodology for developing each of the assumptions used:

▪Expected dividend yield — the Company does not pay regular dividends on its common stock and does not anticipate paying any dividends in the foreseeable future.

▪Expected volatility — a measure of the amount by which a financial variable, such as share price, has fluctuated (historical volatility) or is expected to fluctuate (implied volatility) during a period. The Company analyzed its own historical volatility to estimate expected volatility over the same period as the expected average life of the options.

▪Risk-free interest rate — the range of U.S. Treasury rates with a term that most closely resembles the expected life of the option as of the date on which the option is granted.

▪Expected average life of options — the period of time that options granted are expected to remain outstanding, based primarily on the Company's expectation of option exercise behavior subsequent to vesting of options.

Pension plans

net present value is calculated based on years of employment, expected salary increase, and pension adjustments. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. Actuarial gains and losses are deferred in accumulated other comprehensive income, net of tax and are amortized over the remaining service attribution periods of the employees under the corridor method. Differences between the expected long-term return on plan assets and the actual annual return are amortized to net periodic benefit cost over the estimated remaining life as a component of selling, general and administrative expenses in the consolidated statements of operations.

Derivative Instruments and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company has entered into interest rate swaps to manage exposures that arise from the Company's senior secured credit agreement's payments of variable interest rate debt.

The Company's interest rate swaps qualify for hedge accounting as cash flow hedges. All derivatives are recorded on the balance sheet at fair value. Hedge accounting provides for the matching of the timing of gain or loss recognition on these interest rate swaps with the recognition of the changes in interest expense on the Company's variable rate debt. For derivatives designated as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The cash flows from the designated interest rate swaps are classified as a component of operating cash flows, similar to interest expense.

The valuation of the interest rate swaps is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each interest rate swap. This analysis reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with the provisions of ASC 820, Fair Value Measurement, the Company incorporates credit valuation adjustments in the fair value measurements to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk. These credit valuation adjustments were concluded to not be significant inputs for the fair value calculations for the periods presented. In adjusting the fair value of the Company's derivative contracts for the effect of nonperformance risk, it has considered the impact of netting and any applicable credit enhancements, such as the posting of collateral, thresholds, mutual puts and guarantees. The valuation of interest rate swaps fall into Level 2 in the fair value hierarchy. See Note 9 for further details on the interest rate swaps.

Out-of-period adjustments

During the year ended December 31, 2021, the Company identified and recorded immaterial out-of-period adjustments. In prior years, the Company had recognized revenue for drug substance and drug product manufacturing performance obligations when the goods were released, legal title had passed and the customer had possession. Beginning in 2021, the Company began recognizing revenue over time using an input measure based on costs incurred as a percentage of total estimated contract costs for drug substance and drug product revenue. As batch production and fill-finish manufacturing generally take place over short intervals, the adjustments to the financial statements were not material. Additionally, the Company determined that the classification of its suite reservations, when the customer directs the use of the identified suite and obtains substantially all the economic benefits reflected in CDMO service revenue, are more appropriately classified as leases. Although either classification generally results in recognition of revenue on a straight line basis over-time, the Company identified one lease component commencement date change which impacted the revenue recognized during our 2020 and 2021 periods. The Company has included incremental lease accounting disclosures in these financial statements (see Note 3).

The Company evaluated the materiality of the out-of-period adjustments from quantitative and qualitative perspectives and concluded that the amounts were immaterial to the Company’s prior period interim and annual consolidated financial statements. As a result, no amendments to previously filed interim or annual periodic reports are required. These out-of-period adjustments in the current consolidated statements of operations are as follows:


(in millions)	Year Ended December 31, 2021
Contract development and manufacturing revenue:
Services	$	28.8
Leases	(5.5)
Total contract development and manufacturing revenue	23.3
Cost of CDMO	16.2
Income before income taxes	7.1
Net income	$	5.3

Reclassifications

In addition, during the year ended December 31, 2021, the Company revised its presentation on the consolidated statement of operations to separately present (i) lease revenue as opposed to combining with CDMO services revenues and (ii) cost of CDMO services as opposed to combining with cost of product sales. As the Company's lease revenue is solely associated with CDMO services and is substantially related to one arrangement which ended in 2021, the Company has combined the costs of CDMO services and leases on the consolidated statement of operations. All associated prior period amounts have been reclassified to conform to the current period presentation.

Recently issued accounting standards

Recently Adopted

ASU 2019-12, Simplifications to Accounting for Income Taxes (ASU 2019-12)

In December 2019, the FASB issued ASU 2019-12. ASU 2019-12 removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including deferred taxes for goodwill and allocating taxes for members of a consolidated group. ASU 2019-12 is effective for all entities for fiscal years beginning after December 15, 2020, and earlier adoption is permitted. As of January 1, 2021, the Company adopted the standard, which did not have a material impact on the Company's consolidated financial statements.

Not Yet Adopted

ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

In March 2020, the FASB issued Topic 848, which was further amended in January 2021. Topic 848 provides relief for impacted areas as it relates to impending reference rate reform. ASC 848 contains optional expedients and exceptions to debt arrangements, contracts, hedging relationships, and other areas or transactions that are impacted by reference rate reform. This guidance is effective upon issuance for all entities and elections of certain optional expedients are required to apply the provisions of the guidance. The Company continues to assess all potential impacts of the standard and will disclose the nature and reason for any elections that the Company makes.

Revenue recognition

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue recognition

The Company operates in one business segment. Therefore, results of the Company's operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting.

For the years ended December 31, 2021, 2020, and 2019, the Company's revenues disaggregated by the major sources were as follows:


(in millions)	Year Ended December 31,
	2021						2020						2019
	U.S Government		Non-U.S. Government		Total		U.S Government		Non-U.S. Government		Total		U.S Government		Non-U.S. Government		Total
Product sales	$	530.0	$	493.9	$	1,023.9	$	626.0	$	363.8	$	989.8	$	568.8	$	334.7	$	903.5
CDMO:
Services	—		334.9		334.9		—		166.7		166.7		—		80.0		80.0
Leases	237.6		62.1		299.7		253.3		30.5		283.8		—		—		—
Total CDMO	237.6		397.0		634.6		253.3		197.2		450.5		—		80.0		80.0
Contracts and grants	130.2		4.0		134.2		109.2		5.9		115.1		105.9		16.6		122.5
Total revenues	$	897.8	$	894.9	$	1,792.7	$	988.5	$	566.9	$	1,555.4	$	674.7	$	431.3	$	1,106.0

For the years ended December 31, 2021, 2020 and 2019, the Company's product sales from Anthrax Vaccines, ACAM2000, Nasal Naloxone products and Other products as a percentage of total product sales were as follows:


	2021		2020		2019
% of product sales:
Anthrax vaccines	25	%	38	%	19	%
Nasal naloxone products	43	%	31	%	31	%
ACAM2000	20	%	20	%	27	%
Other products	12	%	11	%	23	%

As of December 31, 2021, 2020 and 2019, aside from sales to the USG, there were no sales to an individual customer in excess of 10% of total revenues. For the years ended December 31, 2021, 2020, and 2019, the Company’s revenues from customers within the United States comprised 92%, 93% and 90%, respectively, of total revenues.

BARDA Centers of Innovation and Advanced Development and Manufacturing (CIADM) agreement

The Company and BARDA had a CIADM agreement which began in June 2012 and terminated on November 1, 2021. The value of this base arrangement was $163.2 million and was recorded as a stand-ready performance obligation and reflected as a component of contracts and grants revenue in the consolidated statements of operations. In 2020, we announced that we had been issued a task order under CIADM for COVID-19 vaccine development and manufacturing (the BARDA COVID-19 Development Public Private Partnership). The task order and associated amendments which allowed BARDA to reserve drug substance and drug product manufacturing capacity at various manufacturing sites had a contract value of $650.8 million that was accounted for as a lease. On November 1, 2021, the Company and BARDA mutually agreed to terminate the CIADM agreement and associated task orders which resulted in an adjusted contract value of $140.5 million for the base arrangement and $470.9 million for the BARDA COVID-19 Development Public Private Partnership. For the base arrangement, the Company released $55.2 million of contract liabilities which is reflected as a component of contract and grants revenue on the consolidated statements of operations. Total revenues associated with the base arrangement were $71.3 million, $15.8 million and $15.8 million during the years ended December 31, 2021, 2020 and 2019 and are reflected as a component of contracts and grants revenue on the consolidated statements of operations. Revenues associated with the BARDA COVID-19 Development Public-Private Partnership were $237.6 million and $233.3 million during the years ended December 31, 2021 and 2020 and are recorded as CDMO leases on the consolidated statements of operations. There were no revenues from the BARDA COVID-19 Development Public-Private Partnership during the year ended December 31, 2019. The termination resulted in the write off of $38.0 million in contract assets to R&D expense on the consolidated statements of operations.

CDMO Operating Leases

Certain multi-year CDMO service arrangements with non-USG customers include operating leases whereby the customer has the right to direct the use of and obtain substantially all of the economic benefits of specific manufacturing suites operated by the Company. The associated revenue is recognized on a straight-line basis over the term of the lease. The remaining term on the Company's operating lease components approximates 3.0 years. The Company utilizes a cost-plus model to determine the stand-alone selling price of the lease component to allocate contract consideration between the lease and non-lease components. During the year ended December 31, 2021, the Company's non-USG lease revenues were $62.1 million, which is included within CDMO leases in the consolidated statement of operations. The Company has allocated contracted operating lease revenues due under our long-term CDMO service arrangements as follows:


(in millions)	Year Ended December 31,
2022	45.8
2023	50.7
2024	11.5
	$	108.0

Transaction price allocated to remaining performance obligations

As of December 31, 2021, the Company expects future revenues of approximately $1.3 billion associated with all arrangements entered into by the Company. The Company expects to recognize a majority of the $1.3 billion of unsatisfied performance obligations within the next 24 months. The amount and timing of revenue recognition for unsatisfied performance obligations can change. The future revenues associated with unsatisfied performance obligations exclude the value of unexercised option periods in the Company’s revenue arrangements. Often the timing of manufacturing activities changes based on customer needs and resource availability. Regulatory compliance may also impact the status of the Company’s COVID-19 related CDMO arrangements. Government funding appropriations can impact the timing of product deliveries. The success of the Company's development activities that receive development funding support from the USG under development contracts can also impact the timing of revenue recognition.

Contract assets

The Company considers unbilled accounts receivable and deferred costs associated with revenue generating contracts, which are not included in inventory or property, plant and equipment, as contract assets. As of December 31, 2021, the Company had $21.5 million from revenue generating contracts recorded within accounts receivable, net on the consolidated balance sheets. As of December 31, 2020, deferred costs from revenue generating contracts recorded as contract assets were $41.1 million, which is reflected as a component of other assets on the consolidated balance sheets.

Contract liabilities

When performance obligations are not transferred to a customer at the end of a reporting period, cash received associated with the amount allocated to those performance obligations is reflected as contract liabilities on the consolidated balance sheets and is deferred until control of these performance obligations is transferred to the customer. The following table presents the roll forward of the contract liabilities:


(in millions)
December 31, 2019	$	88.9
Deferral of revenue	146.2
Revenue recognized	(135.0)
Balance at December 31, 2020	100.1
Deferral of revenue	279.7
Revenue recognized	(363.4)
Balance at December 31, 2021	$	16.4

As of December 31, 2021 and 2020, the current portion of contract liabilities was $11.7 million and $44.6 million, respectively, and was included in other current liabilities on the balance sheet.

Accounts receivable

Accounts receivable including unbilled accounts receivable contract assets consist of the following:


	December 31,
(in millions)	2021		2020
Billed, net	$	224.9	$	172.7
Unbilled	49.8		58.2
Total, net	$	274.7	$	230.9

As of December 31, 2021 and 2020, the allowance for doubtful accounts was $3.2 million and $3.1 million, respectively.

- 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 http://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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Fair value measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair value measurements

The table below presents information about our assets and liabilities that are regularly measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques we utilized to determine fair value:


	December 31, 2021								December 31, 2020
(In millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	152.4	$	152.4	$	—	$	—	$	352.2	$	352.2	$	—	$	—
Time deposits	200.0		—		200.0		—		—		—		—		—
Total	$	352.4	$	152.4	$	200.0	$	—	$	352.2	$	352.2	$	—	$	—
Liabilities:
Contingent consideration	$	37.2	$	—	$	—	$	37.2	$	58.1	$	—	$	—	$	58.1
Derivative instruments	6.1		—		6.1		—		15.0		—		15.0		—
Total	$	43.3	$	—	$	6.1	$	37.2	$	73.1	$	—	$	15.0	$	58.1

Contingent consideration

Contingent consideration liabilities associated with business combinations are measured at fair value. These liabilities represent an obligation of the Company to transfer additional assets to the selling shareholders and owners if future events occur or conditions are met. These liabilities associated with business combinations are measured at fair value at inception and at each subsequent reporting date. The changes in the fair value are primarily due to the expected amount and timing of future net sales, which are inputs that have no observable market. Any changes in fair value for the contingent consideration liabilities related to the Company’s products are classified in the Company's statement of operations as cost of product sales. Any changes in fair value for the contingent consideration liabilities related to the Company’s product candidates are recorded in R&D expense for regulatory and development milestones.

The following table is a reconciliation of the beginning and ending balance of the contingent consideration liabilities measured at fair value during the years ended December 31, 2021 and 2020.


(in millions)
Balance at December 31, 2019	$	29.2
Expense included in earnings	31.7
Settlements	(2.8)
Balance at December 31, 2020	$	58.1
Expense included in earnings	2.9
Settlements	(23.8)
Balance at December 31, 2021	$	37.2

As of December 31, 2021 and 2020, the current portion of the contingent consideration liability was $32.7 million and $23.9 million, respectively, and was included in other current liabilities on the consolidated balance sheets.

The recurring Level 3 fair value measurements for the Company's contingent consideration liability include the following significant unobservable inputs:

Contingent Consideration Liability

Fair Value as of December 31, 2021

Valuation Technique

Unobservable Input

Range

Weighted Average

Revenue milestone and royalty based

$37.2 million

Discounted cash flow

Discount rate

—% - 7.4%

1.5%

Probability of payment

25.0% - 100.0%

87.0%

Projected year of payment

2022 - 2028

2022

Non-Variable Rate Debt

As of December 31, 2021 and December 31, 2020, the fair value of the Company's 3.875% Senior Unsecured Notes was $433.3 million and $466.0 million, respectively. The fair value was determined through market sources, which are level 2 inputs and directly observable. The carrying amounts of the Company’s other long-term variable interest rate debt arrangements approximate their fair values (see Note 8).

Non-recurring fair value measurements

Separate disclosure is required for assets and liabilities measured at fair value on a recurring basis from those measured at fair value on a non-recurring basis. As of December 31, 2021 and 2020, other than those outlined in Note 7, there were no material assets or liabilities measured at fair value on a non-recurring basis.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventories

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories consist of the following:


	December 31,
(in millions)	2021		2020
Raw materials and supplies	$	217.5	$	160.6
Work-in-process	95.8		102.5
Finished goods	37.5		43.9
Total inventories	$	350.8	$	307.0

Inventories, net is stated at the lower of cost or net realizable value. During the year ended December 31, 2021, the Company recorded inventory write-offs at its Bayview facility of $41.5 million, which were the result of the cross-contamination event at the Bayview facility. The inventory write-off resulted from the Company's plan to discard raw materials and in-process batches that were deemed unusable. The charge was reflected as a component of cost of CDMO services on the Company's consolidated statements of operations.

Property, plant and equipment, net

12 Months Ended

Dec. 31, 2021

Property Plant and Equipment Income Statement Disclosures [Abstract]

Property, plant and equipment, net

Property, plant and equipment, net consists of the following:


	December 31,
(in millions)	2021		2020
Land and improvements	$	52.1	$	52.7
Buildings, building improvements and leasehold improvements	269.7		246.3
Furniture and equipment	513.5		362.1
Software	60.7		58.7
Construction-in-progress	223.2		183.4
	1,119.2		903.2
Less: Accumulated depreciation and amortization	(319.1)		(259.1)
Total property, plant and equipment, net	$	800.1	$	644.1

For the years ended December 31, 2021 and 2020, construction-in-progress primarily includes costs incurred related to construction to advance the Company's CDMO capabilities.

Depreciation and amortization expense associated with property, plant and equipment was $62.2 million, $50.1 million and $49.5 million for the years ended December 31, 2021, 2020, and 2019, respectively.

Intangible assets and goodwill

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets and goodwill

The Company's intangible assets consist of products acquired via business combinations or asset acquisitions. Components of the Company’s intangible assets, excluding IPR&D and goodwill, consisted of the following:


		December 31, 2021
(in millions)	Estimated Life	Cost		Accumulated Amortization		Net
Products	9-22 years	$	798.0	$	193.5	$	604.5
Customer relationships	8 years	28.6		28.6		—
CDMO	8 years	5.5		5.4		0.1
Total intangible assets		$	832.1	$	227.5	$	604.6


		December 31, 2020
(in millions)	Estimated Life	Cost		Accumulated Amortization		Net
Products	9-22 years	$	798.0	$	137.8	$	660.2
Customer relationships	8 years	28.6		26.5		2.1
CDMO	8 years	5.5		4.7		0.8
Total intangible assets		$	832.1	$	169.0	$	663.1

For the years ended December 31, 2021, 2020, and 2019, the Company recorded amortization expense for intangible assets of $58.5 million, $59.8 million and $58.7 million, respectively, which is included in the amortization of intangible assets in the consolidated statements of operations. As of December 31, 2021, the weighted average amortization period remaining for intangible assets is 11.9 years.

Future amortization expense as of December 31, 2021 is as follows:


(in millions)
2022	$	55.9
2023	55.8
2024	55.8
2025	55.8
2026 and beyond	381.3
Total remaining amortization	$	604.6

As a result of the Company's expectation that it would not generate future cash flows to recover the asset balance of the Company's IPR&D intangible asset, the Company recorded an intangible asset impairment charge of $29.0 million during the year ended December 31, 2020. As such, there is no remaining balance recorded on the Company's consolidated balance sheets at December 31, 2021 and 2020. The impairment charge is reflected as a component of R&D expense in the consolidated statement of operations for the year ended December 31, 2020.

The following table is a summary of changes in goodwill:


	Year ended December 31,
(in millions)	2021		2020
Balance at beginning of the year	$	266.7	$	266.6
Goodwill impairment (1)	(41.7)		—
Foreign currency translation	(0.1)		0.1
Balance at end of the year	$	224.9	$	266.7

(1) The carrying amount of goodwill included accumulated impairments of $41.7 million as of December 31, 2021. There were no impairment charges or accumulated impairments as of December 31, 2020.

On October 1, 2021, the date of the Company's annual goodwill impairment testing, the Company reorganized its lines of business resulting in a change in the composition of two of its reporting units. The Company performed quantitative tests to determine fair values of the reporting units using both a market based (comparable company multiple) and income based (discounted cash flows) approach, each a level three non recurring fair value measurement, of the reporting units both before and after the reorganization of the lines of business and its reporting units and determined that there was a goodwill impairment of $41.7 million associated with the new commercial reporting unit. The Company utilized a quantitative assessment for our goodwill impairment testing of one reporting unit in 2020. The Company used a qualitative assessment for our goodwill impairment testing for all other reporting units in 2020. The assessments completed during the year ended 2020 indicated no impairment.

Long-term debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Long-term debt

The components of debt are as follows:


	December 31,
(in millions)	2021		2020
Senior secured credit agreement - Term loan due 2023	$	396.6	$	421.9
Senior secured credit agreement - Revolver loan due 2023	—		—
3.875% Senior Unsecured Notes due 2028	450.0		450.0
2.875% Convertible Senior Notes due 2021	—		10.6
Other	3.0		3.0
Total debt	$	849.6	$	885.5
Current portion of debt, net of debt issuance costs	(31.6)		(33.8)
Unamortized debt issuance costs	(8.5)		(10.7)
Debt, net of current portion	$	809.4	$	841.0

As of December 31, 2021, the Company had approximately $2.0 million and $1.6 million of debt issuance costs associated with the revolver loan that were classified as other current assets and other assets, respectively, on the Company's consolidated balance sheets because there was no outstanding revolver balance at December 31, 2021. As of December 31, 2020, the Company had approximately $2.0 million and $3.5 million of debt issuance costs associated with the revolver loan that were classified as other current assets and other assets, respectively, on the Company's consolidated balance sheets because there was an outstanding revolver balance at December 31, 2020.

3.875% Senior Unsecured Notes due 2028

On August 7, 2020, the Company completed its offering of $450 million aggregate principal amount of 3.875% Senior Unsecured Notes due 2028 (the 2028 Notes) of which the majority of the net proceeds were used to pay down the Revolving Credit Facility (as defined below). Interest on the 2028 Notes is payable on February 15th and August 15th of each year until maturity, beginning on February 15, 2021. The 2028 Notes will mature on August 15, 2028.

On or after August 15, 2023, the Company may redeem the 2028 Notes, in whole or in part, at the redemption prices set forth in the related Indenture, plus accrued and unpaid interest. Prior to August 15, 2023 the Company may redeem all or a portion of the 2028 Notes at a redemption price equal to 100% of the principal amount of the 2028 Notes plus a “make-whole” premium and accrued and unpaid interest. Prior to August 15, 2023, the Company may redeem up to 40% of the aggregate principal amount of the 2028 Notes using the net cash proceeds of certain equity offerings at the redemption price set forth in the related Indenture. Upon the occurrence of a change of control, the Company must offer to repurchase the 2028 Notes at a purchase price of 101% of the principal amount of such 2028 Notes plus accrued and unpaid interest.

Negative covenants in the Indenture governing the 2028 Notes, among other things, limit the ability of the Company to incur indebtedness and liens, dispose of assets, make investments, enter into certain merger or consolidation transactions and make restricted payments.

Senior Secured Credit Agreement

Also on August 7, 2020, the Company entered into a Second Amendment (the Credit Agreement Amendment) to its senior secured credit agreement, dated October 15, 2018, with multiple lending institutions relating to the Company’s senior secured credit facilities (the Credit Agreement, and as amended, the Amended Credit Agreement), consisting of a senior revolving credit facility (the Revolving Credit Facility) and senior term loan facility (the Term Loan Facility, and together with the Revolving Credit Facility, the Senior Secured Credit Facilities). The Credit Agreement Amendment amended, among other things, the definition of incremental facilities limit, the consolidated net leverage ratio financial covenant by increasing the maximum level, increased the permissible applicable margins based on the Company’s consolidated net leverage ratio and increased the commitment fee that the Company is required to pay in respect of the average daily unused commitments under the Revolving Credit Facility, depending on the Company’s consolidated net leverage ratio.

The Amended Credit Agreement includes (i) a Revolving Credit Facility of $600 million with a maturity date of October 13, 2023, and (ii) a Term Loan Facility with a principal amount of $450 million. The Company may request

incremental term loan facilities or increases in the Revolving Credit Facility (each an Incremental Loan) as long as certain requirements involving our net leverage ratio will be maintained on a pro forma basis. Borrowings under the Revolving Credit Facility and the Term Loan Facility bear interest at a rate per annum equal to (a) a eurocurrency rate plus a margin ranging from 1.3% to 2.3% per annum, depending on the Company's consolidated net leverage ratio or (b) a base rate (which is the highest of the prime rate, the federal funds rate plus 0.5%, and a eurocurrency rate for an interest period of one month plus 1.0% plus a margin ranging from 0.3% to 1.3%, depending on the Company's consolidated net leverage ratio. The Company is required to make quarterly payments on the last business day of each calendar quarter under the Amended Credit Agreement for accrued and unpaid interest on the outstanding principal balance, based on the above interest rates. In addition, the Company is required to pay commitment fees ranging from 0.2% to 0.4% per annum, depending on the Company's consolidated net leverage ratio, for the average daily unused commitments under the Revolving Credit Facility. The Company is to repay the outstanding principal amount of the Term Loan Facility in quarterly installments on the last business day of each calendar quarter based on an annual percentage equal to 2.5% of the original principal amount of the Term Loan Facility during each of the first two years of the Term Loan Facility, 5.0% of the original principal amount of the Term Loan Facility during the third year of the Term Loan Facility and 7.5% of the original principal amount of the Term Loan Facility during each year of the remainder of the term of the Term Loan Facility until the maturity date of the Term Loan Facility, at which time the entire unpaid principal balance of the Term Loan Facility will be due and payable. The Company has the right to prepay the Term Loan Facility without premium or penalty. The Revolving Credit Facility and the Term Loan Facility mature on October 13, 2023.

The Amended Credit Agreement also requires mandatory prepayments of the Term Loan Facility in the event the Company or its subsidiaries (a) incur indebtedness not otherwise permitted under the Amended Credit Agreement or (b) receive cash proceeds in excess of $100 million during the term of the Credit Agreement from certain dispositions of property or from casualty events involving their property, subject to certain reinvestment rights. The financial covenants under the Amended Credit Agreement currently require the quarterly presentation of a minimum consolidated 12-month rolling debt service coverage ratio of 2.5 to 1.0, and a maximum consolidated net leverage ratio of 4.5 to 1.0 (subject to an increase to 5.0 to 1.0 for an applicable four quarter period, at the election of the Company, in connection with a permitted acquisition having an aggregate consideration in excess of $75.0 million). Negative covenants in the Amended Credit Agreement, among other things, limit the ability of the Company to incur indebtedness and liens, dispose of assets, make investments, enter into certain merger or consolidation transactions and make restricted payments. As of the date of these financial statements, the Company is in compliance with all affirmative and negative covenants.

2.875% Convertible Senior Notes Due 2021

On January 29, 2014, the Company issued 2.875% convertible senior notes due 2021 (the Notes). The Notes bore interest at a rate of 2.875% per year, payable semi-annually in arrears on January 15 and July 15 of each year. The Notes matured and were paid on January 15, 2021.

Debt Maturity

Future debt payments of long-term indebtedness are as follows:


(in millions)	December 31, 2021
2022	$	33.8
2023	363.6
2024	0.2
2025	—
2026 and thereafter	452.0
Total debt	$	849.6

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
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+ Details

Derivative Instruments and hedging activities

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and hedging activities

Risk management objective of using derivatives

As of December 31, 2021, the Company had the following outstanding interest rate swap derivatives that were designated as cash flow hedges of interest rate risk:


(in millions, except number of instruments)	Number of Instruments	Notional amount
Interest Rate Swaps	7	$350.0

The table below presents the fair value of the Company’s derivative financial instruments designated as hedges as well as their classification on the balance sheet.

Liability Derivatives

December 31, 2021

December 31, 2020

(in millions)

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Interest Rate Swaps

Other Current Liabilities

4.5

Other Current Liabilities

5.7

Other Liabilities

1.6

Other Liabilities

9.3

The table below presents the effect of cash flow hedge accounting on accumulated other comprehensive income.


(in millions)	Cumulative Amount of Gain/(Loss) Recognized in OCI on Derivative				Location of Gain or (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income
(in millions)	December 31, 2021		December 31, 2020			December 31, 2021		December 31, 2020
Interest Rate Swaps	$	(6.1)	$	(15.0)	Interest expense	$	(5.8)	$	(3.9)

If current fair values of designated interest rate swaps remained static over the next twelve months, the Company would reclassify $1.6 million of net deferred losses from accumulated other comprehensive loss to the statement of operations over the next twelve month period. All outstanding cash flow hedges mature in October 2023.

Stockholders' equity

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Stockholders' equity

Preferred stock

The Company is authorized to issue up to 15.0 million shares of preferred stock, $0.001 par value per share (Preferred Stock). Any Preferred Stock issued may have dividend rights, voting rights, conversion privileges, redemption characteristics, and sinking fund requirements as approved by the Company's board of directors.

Common stock

The Company currently has one class of common stock, $0.001 par value per share common stock (Common Stock), authorized and outstanding. The Company is authorized to issue up to 200.0 million shares of Common Stock. Holders of Common Stock are entitled to one vote for each share of Common Stock held on all matters, except as may be provided by law.

Repurchase programs

On November 11, 2021, the Company announced that its Board of Directors authorized management to repurchase, up to an aggregate of $250.0 million of Common Stock under a board-approved Share Repurchase Program, of which $112.6 million has been utilized to purchase 2.6 million shares as of December 31, 2021. The number of shares repurchased includes trades executed in December and settled in January due to timing. The Share Repurchase Program does not obligate the Company to acquire any specific number of shares. Repurchased shares will be available for use in connection with our stock plans and for other corporate purposes.

Accounting for stock-based compensation

The Company has one stock-based employee compensation plan, the Fourth Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (the Emergent Plan), which includes stock options and performance and restricted stock units.

As of December 31, 2021, an aggregate of 25.4 million shares of common stock were authorized for issuance under the Emergent Plan, of which a total of approximately 6.7 million shares of common stock remain available for future awards to be made to plan participants. The exercise price of each option must be not less than 100% of the fair market value of the shares underlying such option on the date of grant. Options granted under the Emergent Plan have a contractual life of 7 years.

The Company utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted:


	Year Ended December 31,
	2021		2020		2019
Expected dividend yield	0	%	0	%	0	%
Expected volatility	47-48%		39-48%		37-39%
Risk-free interest rate	0.43-0.94%		0.27-1.42%		1.57-2.48%
Expected average life of options	4.5 years		4.5 years		4.5 years

Stock options, restricted and performance stock units

The following is a summary of stock option award activity under the Emergent Plan:


(in millions, except per share data)	Number of Shares	Weighted-Average Exercise Price		Aggregate Intrinsic Value
Outstanding at December 31, 2020	1.3	$	49.07	$	53.4
Granted	0.3	89.47
Exercised	(0.3)	35.91
Forfeited	(0.1)	71.77
Outstanding at December 31, 2021	1.2	$	60.83	$	3.0
Exercisable at December 31, 2021	0.6	$	47.28	$	3.0

The weighted average remaining contractual term of options outstanding as of both December 31, 2021 and 2020 was 4.3 years. The weighted average remaining contractual term of options exercisable as of December 31, 2021 and 2020 was 3.2 years and 2.9 years, respectively.

The weighted average grant date fair value of options granted during the years ended December 31, 2021, 2020, and 2019 was $35.16, $21.69 and $21.13 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2021, 2020, and 2019 was $15.7 million, $38.2 million and $5.3 million, respectively.

The following is a summary of performance stock and restricted stock unit award activity under the Emergent Plan.


(in millions, except per share data)	Number of Shares	Weighted-Average Grant Price		Aggregate Intrinsic Value
Outstanding at December 31, 2020	1.1	$	63.30	$	96.3
Granted	0.7	76.72
Vested	(0.5)	61.76
Forfeited	(0.2)	74.42
Outstanding at December 31, 2021	1.1	$	70.82	$	47.6

The total fair value of restricted stock unit awards vested during 2021, 2020 and 2019 was $30.8 million, $35.3 million and $16.9 million, respectively. As of the year ended December 31, 2021, the total compensation cost and weighted average period over which total compensation is expected to be recognized related to unvested equity awards was $60.7 million and 1.6 years, respectively.

Stock-based compensation expense was recorded in the following financial statement line items:


	Year Ended December 31,
(in millions)	2021		2020		2019
Cost of product sales	$	6.4	$	8.9	$	2.3
Cost of CDMO services	1.1		3.5		0.8
Research and development	5.0		8.4		4.0
Selling, general and administrative	29.9		30.2		19.6
Total stock-based compensation expense	$	42.4	$	51.0	$	26.7

Accumulated Other Comprehensive (Loss) Income

The following table includes changes in accumulated other comprehensive (loss) income by component, net of tax:


	Defined Benefit Pension Plan		Derivative Instruments		Foreign Currency Translation Losses		Total
(in millions)
Balance, December 31, 2019	$	(3.4)	$	(1.6)	$	(4.9)	$	(9.9)
Other comprehensive (loss) income before reclassifications	(4.3)		(13.3)		(1.7)		(19.3)
Amounts reclassified from accumulated other comprehensive income	—		3.9		—		3.9
Net current period other comprehensive income (loss)	(4.3)		(9.4)		(1.7)		(15.4)
Balance, December 31, 2020	$	(7.7)	$	(11.0)	$	(6.6)	(25.3)
Other comprehensive (loss) income before reclassifications	4.3		0.7		(1.0)		4.0
Amounts reclassified from accumulated other comprehensive income	(0.6)		5.8		—		5.2
Net current period other comprehensive income (loss)	3.7		6.5		(1.0)		9.2
Balance, December 31, 2021	$	(4.0)	$	(4.5)	$	(7.6)	$	(16.1)

The following table presents the tax effects related to each component of accumulated other comprehensive (loss) income:


	December 31, 2021						December 31, 2020						December 31, 2019
(in millions)	Pretax		Tax Benefit (Expense)		Net-of-tax		Pretax		Tax Benefit (Expense)		Net-of-tax		Pretax		Tax Benefit (Expense)		Net-of-tax
Defined Benefit Pension Plan	4.3		(0.6)		3.7		(5.0)		0.7		(4.3)		(3.7)		0.5		(3.2)
Derivative Instruments	8.9		(2.4)		6.5		(13.0)		3.6		(9.4)		(2.0)		0.4		(1.6)
Foreign Currency Translation Losses	(1.2)		0.2		(1.0)		(1.8)		0.1		(1.7)		0.4		—		0.4
Total Adjustments	$	12.0	$	(2.8)	$	9.2	$	(19.8)	$	4.4	$	(15.4)	$	(5.3)	$	0.9	$	(4.4)

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Income taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income taxes

Income taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized.

The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company is subject to incremental U.S. tax on GILTI income. The Company has elected to account for GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended December 31, 2021 and 2020. BEAT provisions do not have material impact on the consolidated financial statements.

For the years ended December 31, 2021 and 2020, the Company has not recognized deferred tax liabilities for temporary differences related to investments in foreign subsidiaries that were deemed indefinitely reinvested. Determination of the amount of unrecognized deferred income tax liabilities on these outside basis differences is not practicable because such liability, if any, depends on certain circumstances existing if and when remittance occurs. A deferred tax liability will be recognized if and when the Company no longer plans to indefinitely reinvest these undistributed earnings.

Significant components of income taxes attributable to operations consist of the following:


	December 31,
(in millions)	2021		2020		2019
Current
Federal	$	(3.7)	$	62.8	$	1.4
State	14.9		27.7		11.6
International	28.4		14.0		11.0
Total current	39.6		104.5		24.0
Deferred
Federal	38.0		1.1		1.9
State	4.3		—		1.1
International	1.6		(3.5)		(4.1)
Total deferred	43.9		(2.4)		(1.1)
Total income taxes	$	83.5	$	102.1	$	22.9

The Company's net deferred tax asset (liability) consists of the following:


	December 31,
(in millions)	2021		2020
Federal losses carryforward	$	7.6	$	8.1
State losses carryforward	3.3		3.1
Research and development carryforward	9.5		7.5
State research and development carryforward	5.0		5.0
Scientific research and experimental development credit carryforward	2.1		8.4
Stock compensation	8.9		8.6
Foreign losses carryforward	10.2		36.9
Deferred revenue	0.4		26.2
Inventory reserves	2.9		1.7
Lease liability	6.5		8.2
IRC 263A capitalized costs	3.9		2.3
Other	5.6		8.5
Deferred tax asset	65.9		124.5
Valuation allowance	(25.0)		(51.1)
Net deferred tax asset	40.9		73.4
Fixed assets	(75.1)		(54.6)
Intangible assets	(47.6)		(50.4)
Right-of-use asset	(6.1)		(7.7)
Other	(2.8)		(4.5)
Deferred tax liability	(131.6)		(117.2)
Net deferred tax liability	$	(90.7)	$	(43.8)

As of December 31, 2021, the Company has approximately $36.0 million ($7.6 million tax effected) in U.S. federal net operating loss carryforwards. The U.S. federal net operating loss carryforwards are recorded with a $4.7 million valuation allowance. States have their own statutes concerning whether a NOL should be carried forward pre or post apportionment. The US federal and state R&D tax credit carryforwards of $14.5 million have a valuation allowance in the amount of $9.1 million. The net operating loss carryforwards and the R&D tax credits will begin to expire in 2031 and 2024, respectively. Certain of the net operating loss carryforwards and the R&D tax credit carryforwards are subject to an annual limitation pursuant to Internal Revenue Code Section 382 and 383.

As of December 31, 2021, the Company had pre-apportionment state NOLs totaling approximately $1,083.9 million (de minimis when tax effected) primarily in Maryland which will begin to expire in 2025 and post-apportionment NOLs totaling approximately $76.4 million ($3.2 million tax effected) primarily in California that will begin to expire in 2025. The U.S. state tax loss carryforwards are recorded with a valuation allowance of $79.4 million ($3.2 million tax effected).

The Company has approximately $46.7 million ($8.2 million tax effected) in net operating losses from foreign jurisdictions as of December 31, 2021, some of which have an indefinite life (unless the foreign entities have a change in the nature or conduct of the business in the three years following a change in ownership), and some of which begin to expire in 2022. A valuation allowance in respect to these foreign losses has been recorded in the tax effected amount of $6.0 million. The change in foreign losses and the corresponding valuation allowance is primarily attributable to liquidation of an inactive foreign entity during the year.

As of December 31, 2021, the Company has approximately $2.1 million in Manitoba scientific research and experimental development credit carryforwards that will begin to expire in 2040. The use of any of these net

operating losses and R&D tax credit carryforwards may be restricted due to future changes in the Company's ownership.

Income taxes differ from the amount of taxes determined by applying the U.S. federal statutory rate to income before taxes as a result of the following:


	December 31,
(in millions)	2021		2020		2019
US	$	112.0	$	362.0	$	63.9
International	202.4		45.2		13.5
Earnings before taxes on income	314.4		407.2		77.4
Federal tax at statutory rates	$	65.8	$	85.5	$	16.3
State taxes, net of federal benefit	16.1		23.2		10.3
Impact of foreign operations	(16.8)		(7.8)		(6.9)
Change in valuation allowance	4.3		1.5		(1.0)
Tax credits	(4.7)		(7.6)		(3.6)
Stock compensation	(4.9)		(7.9)		(2.4)
Impairments	8.3		—		—
Return to provision true-ups	0.8		(0.7)		(2.3)
Transaction costs	0.3		6.0		4.7
Compensation limitation	2.9		2.2		1.3
FIN 48	0.3		(0.3)		1.1
GILTI, net	11.4		5.4		3.6
Permanent differences	(0.3)		2.6		1.8
Income taxes	$	83.5	$	102.1	$	22.9

The effective annual tax rate for the years ended December 31, 2021, 2020, and 2019 was 27%, 25% and 30%, respectively.

The effective annual tax rate of 27% in 2021 is higher than the statutory rate primarily due to the impact of goodwill impairment, state taxes, GILTI and other non-deductible items. This is partially offset by stock option deduction benefits, tax credits, and favorable rates in foreign jurisdictions. The jurisdictional mix of profit has changed from the prior year largely due to lower US CDMO margins, the termination of the CIADM arrangement in the US and an increase in sales of NARCAN in which a portion of the profit is attributable to a foreign subsidiary.

The effective annual tax rate of 25% in 2020 is higher than the statutory rate primarily due to the impact of state taxes, GILTI, contingent consideration, other non-deductible items and the jurisdictional mix of earnings. This is partially offset by stock option deduction benefits, tax credits, and favorable rates in foreign jurisdictions.

The effective annual tax rate of 30% in 2019 is higher than the statutory rate primarily due to the impact of state taxes, GILTI, contingent consideration, and other non-deductible items. This is partially offset by stock option deduction benefits, tax credits, and favorable rates in foreign jurisdictions.

The Company recognizes interest in interest expense and recognizes potential penalties related to unrecognized tax benefits in selling, general and administrative expense. The total unrecognized tax benefits recorded at December 31, 2021 and 2020 of $9.8 million and $9.2 million, respectively, is classified as a non-current liability on the balance sheet.

The table below presents the gross unrecognized tax benefits activity for 2021, 2020 and 2019:


(in millions)
Gross unrecognized tax benefits at December 31, 2018	$	8.8
Increases for tax positions for prior years	0.5
Increases for tax positions for current year	1.5
Settlements	(0.4)
Gross unrecognized tax benefits at December 31, 2019	$	10.4
Increases for tax positions for prior years	—
Increases for tax positions for current year	0.6
Settlements	(1.8)
Gross unrecognized tax benefits at December 31, 2020	$	9.2
Increases for tax positions for prior years	0.4
Increases for tax positions for current year	0.2
Gross unrecognized tax benefits at December 31, 2021	$	9.8

The total gross unrecognized tax benefit of $9.8 million, includes $7.4 million that relates to the 2018 acquisition of PaxVax Holdings Company, Ltd., which is entirely offset by a $7.4 million receivable pursuant to a Tax Indemnity Agreement that became effective as at the close of the acquisition.

When resolved, substantially all of these liabilities would impact the effective tax rate.

The Company's federal and state income tax returns for the tax years 2017 and onwards remain open to examination. The Company's tax returns for Canada remain open to examination for the tax years 2013 to 2020. The Company's Irish tax returns remain open to examination for the tax years 2015 to 2019.

As of December 31, 2021, the Company’s Canadian 2019 and 2020 Scientific Research and Experimental Development Claim is under audit. The Company's 2016 and 2017 Canadian income tax returns for the Adapt entities are under audit.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Defined benefit and 401(k) savings plan

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Defined benefit and 401(k) savings plan

Defined benefit and 401(k) savings plan The Company sponsors a defined benefit pension plan covering eligible employees in Switzerland (the Swiss Plan). Under the Swiss Plan, the Company and certain of its employees with annual earnings in excess of government determined amounts are required to make contributions into a fund managed by an independent investment fiduciary. Employer contributions must be in an amount at least equal to the employee’s contribution. The Swiss Plan's assets are comprised of an insurance contract that has a fair value consistent with its contract value based on the practicability exception using level 3 inputs. The entire liability is listed as non-current because plan assets are greater than the expected benefit payments over the next year. The Company recognized pension expense related to the Swiss Plan of $2.0 million, $2.4 million and $1.5 million reflected as a component of selling, general and administrative for the years ended December 31, 2021, 2020 and 2019, respectively.

The funded status of the Swiss Plan is as follows:


(in millions)	December 31, 2021		December 31, 2020
Fair value of plan assets, beginning of year	$	27.6	$	20.6
Employer contributions	1.4		1.4
Employee contributions	0.9		0.8
Net benefits received (paid)	0.5		6.8
Actual return on plan assets	(0.1)		0.3
Settlements	—		(4.5)
Currency impact	(1.0)		2.2
Fair value of plan assets, end of year	$	29.3	$	27.6
Projected benefit obligation, beginning of year	$	49.2	$	35.2
Service cost	2.4		1.9
Interest Cost	—		0.1
Employee contributions	0.9		0.8
Actuarial (gain) loss	(4.6)		5.0
Net benefits received (paid)	0.5		6.8
Settlements	—		(4.5)
Currency impact	(1.6)		3.9
Projected benefit obligation, end of year	$	46.8	$	49.2
Funded status, end of year	$	(17.5)	$	(21.6)
Accumulated benefit obligation, end of year	$	41.8	$	43.0

Components of net periodic pension cost incurred during the year are as follows:


(in millions)	December 31, 2021		December 31, 2020		December 31, 2019
Service cost	$	2.4	$	1.9	$	1.3
Interest cost	—		0.1		0.2
Expected return on plan assets	(0.8)		(0.6)		(0.5)
Amortization of loss	0.6		0.2		—
Amortization of prior service cost	(0.2)		(0.2)		—
Settlements	—		1.0		0.5
Net periodic benefit cost	$	2.0	$	2.4	$	1.5

The weighted average assumptions used to calculate the projected benefit obligations are as follows:


	December 31, 2021		December 31, 2020
Discount rate	0.30	%	0.02	%
Expected rate of return	3.0	%	3.0	%
Rate of future compensation increases	1.4	%	1.4	%

The overall expected long-term rate of return on assets assumption considers historical returns, as well as expected future returns based on the fact that investment returns are insured, and the legal minimum interest crediting rate as applicable. Total contributions expected to be made into the plan for the year-ended December 31, 2022 is $1.4 million.

The following table presents losses recognized in accumulated other comprehensive (income) loss before income tax related to the Company’s defined benefit pension plans:


(in millions)	Year Ended December 31, 2021		Year Ended December 31, 2020
Net actuarial (gain) loss	$	5.9	$	9.9
Prior service cost	(1.3)		(1.0)
Total recognized in accumulated other comprehensive (income) loss	$	4.6	$	8.9

Future benefits expected to be paid as of December 31, 2021 are as follows:


(In millions)	December 31,
2022	$	2.2
2023	1.7
2024	1.7
2025	1.8
2026	1.8
Thereafter	37.6
Total	$	46.8

401(k) savings plan

The Company has established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. The 401(k) Plan covers substantially all U.S. employees. Under the 401(k) Plan, employees may make elective salary deferrals. During the years ended December 31, 2021, 2020 and 2019, the Company made matching contributions of approximately $8.9 million, $6.6 million and $5.1 million, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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+ Details

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

The components of lease expense were as follows:


	Year Ended December 31,
(In millions)	2021		2020		2019
Operating lease cost:
Amortization of right-of-use assets	$	5.6	$	4.5	$	2.7
Interest on lease liabilities	1.3		1.1		0.6
Total operating lease cost	$	6.9	$	5.6	$	3.3

Supplemental balance sheet information related to leases was as follows:


		Year Ended December 31,
(In millions, except lease term and discount rate)	Balance Sheet Location	2021			2020
Operating lease right-of-use assets	Other assets	$	28.3		$	31.0

Operating lease liabilities, current portion	Other current liabilities	5.8			5.4
Operating lease liabilities	Other liabilities	24.2			27.8
Total operating lease liabilities		$	30.0		$	33.2

Operating leases:
Weighted average remaining lease term (years)		7.0			7.7
Weighted average discount rate		4.1		%	4.1		%

The Company's leases have remaining lease terms of 1 year to 12 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year.

Lease maturities as of December 31, 2021, are as follows:


(in millions)	Operating leases
2022	$	6.9
2023	6.9
2024	4.7
2025	3.1
2026	2.7
Thereafter	10.4
Total undiscounted lease liabilities	34.7
Less: Imputed interest	(4.7)
Total Lease liabilities	$	30.0

Earnings per share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Earnings per share

The following table presents the calculation of basic and diluted net income per share:


	Year Ended December 31,
(in millions, except per share data)	2021		2020		2019
Numerator:
Net income	$	230.9	$	305.1	$	54.5

Denominator:
Weighted-average number of shares-basic	53.5		52.7		51.5
Dilutive effect of employee incentive plans	0.6		1.1		0.9
Weighted-average number of shares-diluted	54.1		53.8		52.4

Net income per share-basic	$	4.32	$	5.79	$	1.06
Net income per share-diluted	$	4.27	5.67		$	1.04

Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted income per share is computed using the treasury method by dividing net income by the weighted average number of shares of common stock outstanding during the period,

adjusted for the potential dilutive effect of other securities if such securities were converted or exercised and are not anti-dilutive.

The following table presents the share-based awards that are not considered in the diluted net income per share calculation generally because the exercise price of the awards was greater than the average per share closing price during the year ending December 31, 2021, 2020 and 2019. In certain instances awards may be anti-dilutive even if the average market price exceeds the exercise price when the sum of the assumed proceeds exceeds the difference between the market price and the exercise price.


	Year Ended December 31,
	2021	2020	2019
Anti-dilutive stock awards	1.0	—	$	0.9

Purchase commitments	12 Months Ended
Purchase commitments	Dec. 31, 2021
Purchase Obligation, Fiscal Year Maturity [Abstract]
Purchase commitments	Purchase commitments As of December 31, 2021 the Company has approximately $132.0 million of purchase commitments associated with raw materials and CDMO services that will be purchased in the next 3 years. For the years ended December 31, 2021, 2020, and 2019, the Company purchased $110.7 million, $108.0 million and $51.3 million, respectively, of materials under these commitments.

Segment information	12 Months Ended
Segment information	Dec. 31, 2021
Segment Reporting [Abstract]
Segment information	Segment information The Company reports financial information for one reportable segment. This reportable segment engages in business activities based on financial information that is provided to and resources which are allocated by the Chief Operating Decision Maker. The accounting policies of the reportable segment are the same as those described in the summary of significant accounting policies. For years ended December 31, 2021 and 2020, the Company had long-lived assets outside of the United States of approximately $111.9 million and $98.6 million, respectively, which are primarily located within Canada and Switzerland.

- 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.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Litigation	12 Months Ended
Litigation	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Litigation	Litigation Securities and Shareholder Litigation On April 20, 2021, May 14, 2021, and June 2, 2021, purported class action lawsuits were filed against the Company and certain of its current and former senior officers in the United States District Court for the District of Maryland on behalf of purchasers of the Company’s common stock, seeking to pursue remedies under the Securities Exchange Act of 1934 (the Exchange Act). These complaints were filed by Plaintiff Palm Tran, Inc. – Amalgamated Transit Union Local 1577 Pension Plan; Plaintiff Alan I. Roth; and Plaintiff Stephen M. Weiss, respectively. The complaints allege, among other things, that the defendants disseminated materially false and misleading information about its capabilities to manufacture COVID-19 vaccine bulk drug substance in violation of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. These cases were consolidated on December 23, 2021, under the caption In re Emergent BioSolutions Inc. Securities Litigation, No. 8:21-cv-00955-PWG. The Lead Plaintiffs in the consolidated matter are Nova Scotia Health Employees’ Pension Plan and The City of Fort Lauderdale Police & Firefighters’ Retirement System. The Lead Plaintiff is to prepare an amended consolidated complaint by March 10, 2022. The defendants believe that the allegations in the complaints are without merit and intend to defend the matters vigorously. Given the uncertainty of litigation, the preliminary stage of the cases, and the legal standards that must be met for, among other things, class certification and success on the merits, the Company cannot reasonably estimate the possible loss or range of loss, if any, that may result from the consolidated action. With respect to the specific legal proceedings and claims described below, unless otherwise noted, the amount or range of possible losses is not reasonably estimable. There can be no assurance that the settlement, resolution, or other outcome of one or more matters, including the matters set forth below, during any subsequent reporting period will not have a material adverse effect on the Company's results of operations or cash flows for that period or on the Company's financial condition. On June 29, 2021, Lincolnshire Police Pension Fund and on August 16, 2021, Pooja Sayal, filed putative stockholder derivative lawsuits in the United States District Court for the District of Maryland on behalf of the Company against certain of its current and former officers and directors for breach of fiduciary duties, waste of corporate assets, and unjust enrichment, each allegation related to the Company’s capabilities to manufacture COVID-19 vaccine bulk drug substance. In addition to monetary damages, the complaints seek the implementation of multiple corporate governance and internal policy changes. On November 16, 2021, both cases were consolidated under the caption In re Emergent BioSolutions Inc. Stockholder Derivative Litigation, Master File No. 8:21-cv-01595-PWG. The defendants believe that the allegations in the complaints are without merit and intend to defend the matter vigorously. On September 15, 2021, September 16, 2021, and November 12, 2021, putative stockholder derivative lawsuits were filed by Chang Kyum Kim, Mark Nevins and Employees Retirement System of the State of Rhode Island, North Collier Fire Control and Rescue District Firefighters Pension Plan, and Pembroke Pines Firefighters & Police Officers Pension Fund in The Court of Chancery of the State of Delaware on behalf of the Company against certain of its current and former officers and directors for breach of fiduciary duties, unjust enrichment and insider trading, each allegation related to the Company’s capabilities to manufacture COVID-19 vaccine bulk drug substance. In addition to monetary damages, the complaints seek the implementation of multiple corporate governance and internal policy changes. On February 2, 2022, the cases were consolidated under the caption In re Emergent BioSolutions, Inc. Derivative Litigation, C.A. No. 2021-0974-MTZ with the institutional investors as co-lead plaintiffs. The defendants believe that the allegations in the complaints are without merit and intend to defend the matters vigorously. On December 3, 2021, December 22, 2021 and January 18, 2022, putative stockholder derivative lawsuits were filed by Zachary Elton, Eric White and Jeffrey Reynolds in the Circuit Court for Montgomery County, Maryland on behalf of the Company against certain of its current and former officers and directors for breach of fiduciary duty, unjust enrichment, waste of corporate assets, failing to maintain internal controls, making or causing to be made false and/or misleading statements and material omissions, insider trading and otherwise violating the laws, each allegation related to the Company’s capabilities to manufacture COVID-19 vaccine bulk drug substance. The complaints seek monetary and punitive damages. The defendants believe that the allegations in the complaints are without merit and intend to defend the matters vigorously. In addition to the above actions, the Company has received preliminary inquiries and subpoenas to produce documents related to these matters from Representative Carolyn Maloney and Representative Jim Clyburn, members of the Oversight Committee and the Select Subcommittee on the Coronavirus Crisis, Senator Murray of the Committee on Health, Education, Labor and Pensions, the Financial Industry Regulatory Authority, the Department of Justice, the SEC, the Maryland Attorney General’s Office, and the New York Attorney General’s Office. The Company is producing and has produced documents as required in response and will continue to cooperate with these government inquiries. Intellectual Property Emergent BioSolutions’ Adapt Pharma subsidiaries (Emergent) are as follows: Emergent Devices Inc. (EBPA), formerly known as Adapt Pharma Inc.; Emergent Operations Ireland Limited (EIRE), formerly known as Adapt Pharma Operations Limited; and Emergent BioSolutions Ireland Limited (EIR2), formerly known as Adapt Pharma Limited. ANDA Litigation - Teva 4mg Emergent BioSolutions’ Adapt Pharma subsidiaries EBPA and EIRE, and Opiant Pharmaceuticals Inc. (Opiant) received notice letters from Teva Pharmaceuticals Industries Limited and Teva Pharmaceuticals USA (collectively, Teva) that Teva had filed an Abbreviated New Drug Application (ANDA) with the FDA seeking regulatory approval to market a generic version of NARCAN® (naloxone HCI) Nasal Spray 4 mg/spray before the expiration of certain patents listed on the FDA’s website for Approved Drug Products with Therapeutic Equivalence Evaluations (Orange Book Listed Patents) for NARCAN. Teva’s notice letters alleged that claims of certain Orange Book Listed Patents for NARCAN were invalid and/or would not be infringed by the activities described in Teva’s ANDA. Emergent and Opiant filed complaints against Teva in the U.S. District Court for the District of New Jersey alleging infringement of certain Orange Book Listed Patents for NARCAN. On June 5, 2020, the U.S. District Court for the District of New Jersey ruled in favor of Teva. Emergent appealed the District of New Jersey’s decision to the Court of Appeals for the Federal Circuit (CAFC). On February 10, 2022, the CAFC issued a decision affirming the District Court’s decision and the Company intends to petition for a rehearing. Emergent filed suit in the Federal Court in Canada against Teva Pharmaceuticals in July 2020. The litigation in Canada related to Teva Pharmaceuticals’ filing of an abbreviated new drug submission (ANDS) in Canada seeking to manufacture and sell a generic form of NARCAN® (naloxone HCI) Nasal Spray ahead of the expiry of the Canadian patent covering NARCAN. In January 2022, Emergent and Teva settled the matter and mutually agreed to discontinue the litigation. ANDA Litigation - Teva 2mg Emergent BioSolutions’ Adapt Pharma subsidiaries EBPA and EIRE, and Opiant received a notice letter from Teva that Teva had filed an ANDA with the FDA seeking regulatory approval to market a generic version of NARCAN® (naloxone HCI) Nasal Spray 2 mg/spray before the expiration of certain Orange Book Listed Patents for the 2 mg/spray dose of NARCAN®. Teva’s notice letter alleged that claims of certain Orange Book Listed Patents for the 2 mg/spray dose of NARCAN® were invalid and/or would not be infringed by the activities described in Teva’s ANDA. Emergent and Opiant filed complaints against Teva in the U.S. District Court for the District of New Jersey alleging infringement of certain Orange Book Listed Patents for the 2 mg/spray dose of NARCAN. This case is currently stayed pending final outcome of the appeal of the NARCAN 4 mg/spray case.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS


(in millions)	Beginning Balance		Charged to Costs and Expenses		Deductions		Ending Balance
Year Ended December 31, 2021
Inventory allowance	$	37.6	$	37.9	$	(32.8)	$	42.7
Prepaid expenses and other current assets allowance	3.9		0.2		(0.4)		3.7

Year Ended December 31, 2020
Inventory allowance	$	17.9	$	48.0	$	(28.3)	$	37.6
Prepaid expenses and other current assets allowance	4.0		0.5		(0.6)		3.9

Year Ended December 31, 2019
Inventory allowance	$	14.0	$	23.0	$	(19.1)	$	17.9
Prepaid expenses and other current assets allowance	4.3		—		(0.3)		4.0

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of presentation and consolidation

Use of estimates

Cash and cash equivalents and restricted cash

Fair value measurements


Level 1 —			Observable inputs for identical assets or liabilities such as quoted prices in active markets;
Level 2 —			Inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3 —			Unobservable inputs in which little or no market data exists, which are therefore developed by the Company using estimates and assumptions that reflect those that a market participant would use.

Significant customers and accounting receivable

Concentration Risk

Customers

Financial Institutions

Lender Counterparties

Inventories

Property, plant and equipment


Land			Not depreciated
Buildings			31-39 years
Building improvements			10-39 years
Furniture and equipment			3-15 years
Software			3-7 years
Leasehold improvements			Lesser of the asset life or lease term

Income taxes

The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized.

Asset impairment analysis

Goodwill and Indefinite-lived Intangible Assets

Long-lived Assets

Contingent consideration

In connection with the Company's acquisitions accounted for as business combinations, the Company records contingent consideration associated with sales-based royalties, sales-based milestones and development and regulatory milestones at fair value. The fair value model used to calculate these obligations is based on the income approach (a discounted cash flow model) that has been risk adjusted based on the probability of achievement of net sales and achievement of the milestones. The inputs the Company uses for determining the fair value of the contingent consideration associated with sales-based royalties, sales-based milestones and development and regulatory milestones are Level 3 fair value measurements. The Company re-evaluates the fair value on a quarterly basis. Changes in the fair value can result from adjustments to the discount rates and updates in the assumed timing of or achievement of net sales and/or the achievement of development and regulatory milestones. Any future increase or decrease in the fair value of the contingent consideration associated with sales-based royalties and sales-based milestones along with development and regulatory milestones are based on an assessment of the likelihood that the underlying net sales or milestones will be achieved.The associated payments which will become due and payable for sales-based royalties and milestones result in a charge to cost of product sales in the period in which the increase is determined. Similarly, any future decrease in the fair value of contingent consideration associated with sales-based royalties and sales-based milestones will result in a reduction in cost of product sales. The changes in fair value for potential future sales-based royalties associated with product candidates in development will result in a charge to cost of product sales in the period in which the increase is determined.

Leases

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately.

Revenue recognition

Multiple performance obligations

Transaction price and variable consideration

Product sales

contracts for the sale of the Company's Government - MCM products are normally multi-year contracts with annual options.

CDMO services

Contracts and grants

Research and development

The Company expenses R&D costs as incurred. The Company's R&D expenses consist primarily of:

▪personnel-related expenses;

▪costs of CDMO services for clinical trial material; and

▪costs of materials used in clinical trials and R&D.

Comprehensive Income

Translation of Foreign Currencies

Earnings per share

Treasury Stock

Accounting for stock-based compensation

▪Expected dividend yield — the Company does not pay regular dividends on its common stock and does not anticipate paying any dividends in the foreseeable future.

▪Risk-free interest rate — the range of U.S. Treasury rates with a term that most closely resembles the expected life of the option as of the date on which the option is granted.

Pension plans

The Company maintains defined benefit plans for employees in certain countries outside the U.S., including retirement benefit plans required by applicable local law. The plans are valued by independent actuaries using the projected unit credit method. The liabilities correspond to the projected benefit obligations of which the discounted net present value is calculated based on years of employment, expected salary increase, and pension adjustments. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. Actuarial gains and losses are deferred in accumulated other comprehensive income, net of tax and are amortized over the remaining service attribution periods of the employees under the corridor method. Differences between the expected long-term return on plan assets and the actual annual return are amortized to net periodic benefit cost over the estimated remaining life as a component of selling, general and administrative expenses in the consolidated statements of operations.

Derivative Instruments and Hedging Activities

Reclassifications

Recently issued accounting standards

Recently Adopted

ASU 2019-12, Simplifications to Accounting for Income Taxes (ASU 2019-12)

Not Yet Adopted

ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Property, Plant and Equipment Useful Lives


Land			Not depreciated
Buildings			31-39 years
Building improvements			10-39 years
Furniture and equipment			3-15 years
Software			3-7 years
Leasehold improvements			Lesser of the asset life or lease term

Property, plant and equipment, net consists of the following:


	December 31,
(in millions)	2021		2020
Land and improvements	$	52.1	$	52.7
Buildings, building improvements and leasehold improvements	269.7		246.3
Furniture and equipment	513.5		362.1
Software	60.7		58.7
Construction-in-progress	223.2		183.4
	1,119.2		903.2
Less: Accumulated depreciation and amortization	(319.1)		(259.1)
Total property, plant and equipment, net	$	800.1	$	644.1

Schedule of Error Corrections and Prior Period Adjustments

These out-of-period adjustments in the current consolidated statements of operations are as follows:


(in millions)	Year Ended December 31, 2021
Contract development and manufacturing revenue:
Services	$	28.8
Leases	(5.5)
Total contract development and manufacturing revenue	23.3
Cost of CDMO	16.2
Income before income taxes	7.1
Net income	$	5.3

Revenue recognition (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Summary of Disaggregation of Revenue

For the years ended December 31, 2021, 2020, and 2019, the Company's revenues disaggregated by the major sources were as follows:


(in millions)	Year Ended December 31,
	2021						2020						2019
	U.S Government		Non-U.S. Government		Total		U.S Government		Non-U.S. Government		Total		U.S Government		Non-U.S. Government		Total
Product sales	$	530.0	$	493.9	$	1,023.9	$	626.0	$	363.8	$	989.8	$	568.8	$	334.7	$	903.5
CDMO:
Services	—		334.9		334.9		—		166.7		166.7		—		80.0		80.0
Leases	237.6		62.1		299.7		253.3		30.5		283.8		—		—		—
Total CDMO	237.6		397.0		634.6		253.3		197.2		450.5		—		80.0		80.0
Contracts and grants	130.2		4.0		134.2		109.2		5.9		115.1		105.9		16.6		122.5
Total revenues	$	897.8	$	894.9	$	1,792.7	$	988.5	$	566.9	$	1,555.4	$	674.7	$	431.3	$	1,106.0

Schedules of Concentration of Risk, by Risk Factor

he Company's product sales from Anthrax Vaccines, ACAM2000, Nasal Naloxone products and Other products as a percentage of total product sales were as follows:


	2021		2020		2019
% of product sales:
Anthrax vaccines	25	%	38	%	19	%
Nasal naloxone products	43	%	31	%	31	%
ACAM2000	20	%	20	%	27	%
Other products	12	%	11	%	23	%

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The Company has allocated contracted operating lease revenues due under our long-term CDMO service arrangements as follows:


(in millions)	Year Ended December 31,
2022	45.8
2023	50.7
2024	11.5
	$	108.0

Summary of Deferred Revenue Contract Liabilities

The following table presents the roll forward of the contract liabilities:


(in millions)
December 31, 2019	$	88.9
Deferral of revenue	146.2
Revenue recognized	(135.0)
Balance at December 31, 2020	100.1
Deferral of revenue	279.7
Revenue recognized	(363.4)
Balance at December 31, 2021	$	16.4

Schedule of Accounts Receivable, Net

Accounts receivable including unbilled accounts receivable contract assets consist of the following:


	December 31,
(in millions)	2021		2020
Billed, net	$	224.9	$	172.7
Unbilled	49.8		58.2
Total, net	$	274.7	$	230.9

Fair value measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring


	December 31, 2021								December 31, 2020
(In millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets:
Money market accounts	$	152.4	$	152.4	$	—	$	—	$	352.2	$	352.2	$	—	$	—
Time deposits	200.0		—		200.0		—		—		—		—		—
Total	$	352.4	$	152.4	$	200.0	$	—	$	352.2	$	352.2	$	—	$	—
Liabilities:
Contingent consideration	$	37.2	$	—	$	—	$	37.2	$	58.1	$	—	$	—	$	58.1
Derivative instruments	6.1		—		6.1		—		15.0		—		15.0		—
Total	$	43.3	$	—	$	6.1	$	37.2	$	73.1	$	—	$	15.0	$	58.1

Summary of Reconciliation of Contingent Consideration Liabilities Measured at Fair Value

The following table is a reconciliation of the beginning and ending balance of the contingent consideration liabilities measured at fair value during the years ended December 31, 2021 and 2020.


(in millions)
Balance at December 31, 2019	$	29.2
Expense included in earnings	31.7
Settlements	(2.8)
Balance at December 31, 2020	$	58.1
Expense included in earnings	2.9
Settlements	(23.8)
Balance at December 31, 2021	$	37.2

Fair Value Measurement Inputs and Valuation Techniques

The recurring Level 3 fair value measurements for the Company's contingent consideration liability include the following significant unobservable inputs:

Contingent Consideration Liability

Fair Value as of December 31, 2021

Valuation Technique

Unobservable Input

Range

Weighted Average

Revenue milestone and royalty based

$37.2 million

Discounted cash flow

Discount rate

—% - 7.4%

1.5%

Probability of payment

25.0% - 100.0%

87.0%

Projected year of payment

2022 - 2028

2022

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Inventories (Tables)

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of the following:


	December 31,
(in millions)	2021		2020
Raw materials and supplies	$	217.5	$	160.6
Work-in-process	95.8		102.5
Finished goods	37.5		43.9
Total inventories	$	350.8	$	307.0

Property, plant and equipment, net (Tables)

12 Months Ended

Dec. 31, 2021

Property Plant and Equipment Income Statement Disclosures [Abstract]

Schedule of Property, Plant and Equipment


Land			Not depreciated
Buildings			31-39 years
Building improvements			10-39 years
Furniture and equipment			3-15 years
Software			3-7 years
Leasehold improvements			Lesser of the asset life or lease term

Property, plant and equipment, net consists of the following:


	December 31,
(in millions)	2021		2020
Land and improvements	$	52.1	$	52.7
Buildings, building improvements and leasehold improvements	269.7		246.3
Furniture and equipment	513.5		362.1
Software	60.7		58.7
Construction-in-progress	223.2		183.4
	1,119.2		903.2
Less: Accumulated depreciation and amortization	(319.1)		(259.1)
Total property, plant and equipment, net	$	800.1	$	644.1

Intangible assets and goodwill (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets


		December 31, 2021
(in millions)	Estimated Life	Cost		Accumulated Amortization		Net
Products	9-22 years	$	798.0	$	193.5	$	604.5
Customer relationships	8 years	28.6		28.6		—
CDMO	8 years	5.5		5.4		0.1
Total intangible assets		$	832.1	$	227.5	$	604.6


		December 31, 2020
(in millions)	Estimated Life	Cost		Accumulated Amortization		Net
Products	9-22 years	$	798.0	$	137.8	$	660.2
Customer relationships	8 years	28.6		26.5		2.1
CDMO	8 years	5.5		4.7		0.8
Total intangible assets		$	832.1	$	169.0	$	663.1

Summary of Future Amortization Expense

Future amortization expense as of December 31, 2021 is as follows:


(in millions)
2022	$	55.9
2023	55.8
2024	55.8
2025	55.8
2026 and beyond	381.3
Total remaining amortization	$	604.6

Summary of Goodwill

The following table is a summary of changes in goodwill:


	Year ended December 31,
(in millions)	2021		2020
Balance at beginning of the year	$	266.7	$	266.6
Goodwill impairment (1)	(41.7)		—
Foreign currency translation	(0.1)		0.1
Balance at end of the year	$	224.9	$	266.7

(1) The carrying amount of goodwill included accumulated impairments of $41.7 million as of December 31, 2021. There were no impairment charges or accumulated impairments as of December 31, 2020.

Long-term debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Debt

The components of debt are as follows:


	December 31,
(in millions)	2021		2020
Senior secured credit agreement - Term loan due 2023	$	396.6	$	421.9
Senior secured credit agreement - Revolver loan due 2023	—		—
3.875% Senior Unsecured Notes due 2028	450.0		450.0
2.875% Convertible Senior Notes due 2021	—		10.6
Other	3.0		3.0
Total debt	$	849.6	$	885.5
Current portion of debt, net of debt issuance costs	(31.6)		(33.8)
Unamortized debt issuance costs	(8.5)		(10.7)
Debt, net of current portion	$	809.4	$	841.0

Summary of Future Debt Payments of Long-Term Indebtedness

Future debt payments of long-term indebtedness are as follows:


(in millions)	December 31, 2021
2022	$	33.8
2023	363.6
2024	0.2
2025	—
2026 and thereafter	452.0
Total debt	$	849.6

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
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Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-Section 55
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Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21475-112644

+ Details

Derivative Instruments and hedging activities (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

As of December 31, 2021, the Company had the following outstanding interest rate swap derivatives that were designated as cash flow hedges of interest rate risk:


(in millions, except number of instruments)	Number of Instruments	Notional amount
Interest Rate Swaps	7	$350.0

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair value of the Company’s derivative financial instruments designated as hedges as well as their classification on the balance sheet.

Liability Derivatives

December 31, 2021

December 31, 2020

(in millions)

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Interest Rate Swaps

Other Current Liabilities

4.5

Other Current Liabilities

5.7

Other Liabilities

1.6

Other Liabilities

9.3

Derivative Instruments, Gain (Loss)

The table below presents the effect of cash flow hedge accounting on accumulated other comprehensive income.


(in millions)	Cumulative Amount of Gain/(Loss) Recognized in OCI on Derivative				Location of Gain or (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income
(in millions)	December 31, 2021		December 31, 2020			December 31, 2021		December 31, 2020
Interest Rate Swaps	$	(6.1)	$	(15.0)	Interest expense	$	(5.8)	$	(3.9)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959

+ Details

Stockholders' equity (Tables)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Schedule of Share-based Payment Award, Valuation Assumptions, Stock Options Granted

The Company utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted:


	Year Ended December 31,
	2021		2020		2019
Expected dividend yield	0	%	0	%	0	%
Expected volatility	47-48%		39-48%		37-39%
Risk-free interest rate	0.43-0.94%		0.27-1.42%		1.57-2.48%
Expected average life of options	4.5 years		4.5 years		4.5 years

Summary of Stock Option Award Activity

The following is a summary of stock option award activity under the Emergent Plan:


(in millions, except per share data)	Number of Shares	Weighted-Average Exercise Price		Aggregate Intrinsic Value
Outstanding at December 31, 2020	1.3	$	49.07	$	53.4
Granted	0.3	89.47
Exercised	(0.3)	35.91
Forfeited	(0.1)	71.77
Outstanding at December 31, 2021	1.2	$	60.83	$	3.0
Exercisable at December 31, 2021	0.6	$	47.28	$	3.0

Summary of Performance Stock and Restricted Stock Unit Award Activity

The following is a summary of performance stock and restricted stock unit award activity under the Emergent Plan.


(in millions, except per share data)	Number of Shares	Weighted-Average Grant Price		Aggregate Intrinsic Value
Outstanding at December 31, 2020	1.1	$	63.30	$	96.3
Granted	0.7	76.72
Vested	(0.5)	61.76
Forfeited	(0.2)	74.42
Outstanding at December 31, 2021	1.1	$	70.82	$	47.6

Summary of Stock-Based Compensation Expense

Stock-based compensation expense was recorded in the following financial statement line items:


	Year Ended December 31,
(in millions)	2021		2020		2019
Cost of product sales	$	6.4	$	8.9	$	2.3
Cost of CDMO services	1.1		3.5		0.8
Research and development	5.0		8.4		4.0
Selling, general and administrative	29.9		30.2		19.6
Total stock-based compensation expense	$	42.4	$	51.0	$	26.7

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table includes changes in accumulated other comprehensive (loss) income by component, net of tax:


	Defined Benefit Pension Plan		Derivative Instruments		Foreign Currency Translation Losses		Total
(in millions)
Balance, December 31, 2019	$	(3.4)	$	(1.6)	$	(4.9)	$	(9.9)
Other comprehensive (loss) income before reclassifications	(4.3)		(13.3)		(1.7)		(19.3)
Amounts reclassified from accumulated other comprehensive income	—		3.9		—		3.9
Net current period other comprehensive income (loss)	(4.3)		(9.4)		(1.7)		(15.4)
Balance, December 31, 2020	$	(7.7)	$	(11.0)	$	(6.6)	(25.3)
Other comprehensive (loss) income before reclassifications	4.3		0.7		(1.0)		4.0
Amounts reclassified from accumulated other comprehensive income	(0.6)		5.8		—		5.2
Net current period other comprehensive income (loss)	3.7		6.5		(1.0)		9.2
Balance, December 31, 2021	$	(4.0)	$	(4.5)	$	(7.6)	$	(16.1)

Comprehensive Income (Loss)

The following table presents the tax effects related to each component of accumulated other comprehensive (loss) income:


	December 31, 2021						December 31, 2020						December 31, 2019
(in millions)	Pretax		Tax Benefit (Expense)		Net-of-tax		Pretax		Tax Benefit (Expense)		Net-of-tax		Pretax		Tax Benefit (Expense)		Net-of-tax
Defined Benefit Pension Plan	4.3		(0.6)		3.7		(5.0)		0.7		(4.3)		(3.7)		0.5		(3.2)
Derivative Instruments	8.9		(2.4)		6.5		(13.0)		3.6		(9.4)		(2.0)		0.4		(1.6)
Foreign Currency Translation Losses	(1.2)		0.2		(1.0)		(1.8)		0.1		(1.7)		0.4		—		0.4
Total Adjustments	$	12.0	$	(2.8)	$	9.2	$	(19.8)	$	4.4	$	(15.4)	$	(5.3)	$	0.9	$	(4.4)

Income taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of Significant Components of the Provisions for Income Taxes Attributable to Operations

Significant components of income taxes attributable to operations consist of the following:


	December 31,
(in millions)	2021		2020		2019
Current
Federal	$	(3.7)	$	62.8	$	1.4
State	14.9		27.7		11.6
International	28.4		14.0		11.0
Total current	39.6		104.5		24.0
Deferred
Federal	38.0		1.1		1.9
State	4.3		—		1.1
International	1.6		(3.5)		(4.1)
Total deferred	43.9		(2.4)		(1.1)
Total income taxes	$	83.5	$	102.1	$	22.9

Schedule of Deferred Tax Assets and Liabilities

The Company's net deferred tax asset (liability) consists of the following:


	December 31,
(in millions)	2021		2020
Federal losses carryforward	$	7.6	$	8.1
State losses carryforward	3.3		3.1
Research and development carryforward	9.5		7.5
State research and development carryforward	5.0		5.0
Scientific research and experimental development credit carryforward	2.1		8.4
Stock compensation	8.9		8.6
Foreign losses carryforward	10.2		36.9
Deferred revenue	0.4		26.2
Inventory reserves	2.9		1.7
Lease liability	6.5		8.2
IRC 263A capitalized costs	3.9		2.3
Other	5.6		8.5
Deferred tax asset	65.9		124.5
Valuation allowance	(25.0)		(51.1)
Net deferred tax asset	40.9		73.4
Fixed assets	(75.1)		(54.6)
Intangible assets	(47.6)		(50.4)
Right-of-use asset	(6.1)		(7.7)
Other	(2.8)		(4.5)
Deferred tax liability	(131.6)		(117.2)
Net deferred tax liability	$	(90.7)	$	(43.8)

Reconciliation of Income Before the Provision for Income Taxes

Income taxes differ from the amount of taxes determined by applying the U.S. federal statutory rate to income before taxes as a result of the following:


	December 31,
(in millions)	2021		2020		2019
US	$	112.0	$	362.0	$	63.9
International	202.4		45.2		13.5
Earnings before taxes on income	314.4		407.2		77.4
Federal tax at statutory rates	$	65.8	$	85.5	$	16.3
State taxes, net of federal benefit	16.1		23.2		10.3
Impact of foreign operations	(16.8)		(7.8)		(6.9)
Change in valuation allowance	4.3		1.5		(1.0)
Tax credits	(4.7)		(7.6)		(3.6)
Stock compensation	(4.9)		(7.9)		(2.4)
Impairments	8.3		—		—
Return to provision true-ups	0.8		(0.7)		(2.3)
Transaction costs	0.3		6.0		4.7
Compensation limitation	2.9		2.2		1.3
FIN 48	0.3		(0.3)		1.1
GILTI, net	11.4		5.4		3.6
Permanent differences	(0.3)		2.6		1.8
Income taxes	$	83.5	$	102.1	$	22.9

Schedule of Unrecognized Tax Benefits Activity

The table below presents the gross unrecognized tax benefits activity for 2021, 2020 and 2019:


(in millions)
Gross unrecognized tax benefits at December 31, 2018	$	8.8
Increases for tax positions for prior years	0.5
Increases for tax positions for current year	1.5
Settlements	(0.4)
Gross unrecognized tax benefits at December 31, 2019	$	10.4
Increases for tax positions for prior years	—
Increases for tax positions for current year	0.6
Settlements	(1.8)
Gross unrecognized tax benefits at December 31, 2020	$	9.2
Increases for tax positions for prior years	0.4
Increases for tax positions for current year	0.2
Gross unrecognized tax benefits at December 31, 2021	$	9.8

Defined benefit and 401(k) savings plan (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Summary of Funded Status of the Swiss Plan

The funded status of the Swiss Plan is as follows:


(in millions)	December 31, 2021		December 31, 2020
Fair value of plan assets, beginning of year	$	27.6	$	20.6
Employer contributions	1.4		1.4
Employee contributions	0.9		0.8
Net benefits received (paid)	0.5		6.8
Actual return on plan assets	(0.1)		0.3
Settlements	—		(4.5)
Currency impact	(1.0)		2.2
Fair value of plan assets, end of year	$	29.3	$	27.6
Projected benefit obligation, beginning of year	$	49.2	$	35.2
Service cost	2.4		1.9
Interest Cost	—		0.1
Employee contributions	0.9		0.8
Actuarial (gain) loss	(4.6)		5.0
Net benefits received (paid)	0.5		6.8
Settlements	—		(4.5)
Currency impact	(1.6)		3.9
Projected benefit obligation, end of year	$	46.8	$	49.2
Funded status, end of year	$	(17.5)	$	(21.6)
Accumulated benefit obligation, end of year	$	41.8	$	43.0

Components of Net Periodic Pension Cost

Components of net periodic pension cost incurred during the year are as follows:


(in millions)	December 31, 2021		December 31, 2020		December 31, 2019
Service cost	$	2.4	$	1.9	$	1.3
Interest cost	—		0.1		0.2
Expected return on plan assets	(0.8)		(0.6)		(0.5)
Amortization of loss	0.6		0.2		—
Amortization of prior service cost	(0.2)		(0.2)		—
Settlements	—		1.0		0.5
Net periodic benefit cost	$	2.0	$	2.4	$	1.5

Schedule of Weighted Average Assumptions

The weighted average assumptions used to calculate the projected benefit obligations are as follows:


	December 31, 2021		December 31, 2020
Discount rate	0.30	%	0.02	%
Expected rate of return	3.0	%	3.0	%
Rate of future compensation increases	1.4	%	1.4	%

Schedule of Accumulated Other Comprehensive Loss Before Income Tax

The following table presents losses recognized in accumulated other comprehensive (income) loss before income tax related to the Company’s defined benefit pension plans:


(in millions)	Year Ended December 31, 2021		Year Ended December 31, 2020
Net actuarial (gain) loss	$	5.9	$	9.9
Prior service cost	(1.3)		(1.0)
Total recognized in accumulated other comprehensive (income) loss	$	4.6	$	8.9

Schedule of Expected Future Benefits Payments

Future benefits expected to be paid as of December 31, 2021 are as follows:


(In millions)	December 31,
2022	$	2.2
2023	1.7
2024	1.7
2025	1.8
2026	1.8
Thereafter	37.6
Total	$	46.8

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Summary of Lease Expense Cost

The components of lease expense were as follows:


	Year Ended December 31,
(In millions)	2021		2020		2019
Operating lease cost:
Amortization of right-of-use assets	$	5.6	$	4.5	$	2.7
Interest on lease liabilities	1.3		1.1		0.6
Total operating lease cost	$	6.9	$	5.6	$	3.3

Schedule of Leases Supplemental Balance Sheets

Supplemental balance sheet information related to leases was as follows:


		Year Ended December 31,
(In millions, except lease term and discount rate)	Balance Sheet Location	2021			2020
Operating lease right-of-use assets	Other assets	$	28.3		$	31.0

Operating lease liabilities, current portion	Other current liabilities	5.8			5.4
Operating lease liabilities	Other liabilities	24.2			27.8
Total operating lease liabilities		$	30.0		$	33.2

Operating leases:
Weighted average remaining lease term (years)		7.0			7.7
Weighted average discount rate		4.1		%	4.1		%

Lessee, Operating Lease, Liability, Maturity

Lease maturities as of December 31, 2021, are as follows:


(in millions)	Operating leases
2022	$	6.9
2023	6.9
2024	4.7
2025	3.1
2026	2.7
Thereafter	10.4
Total undiscounted lease liabilities	34.7
Less: Imputed interest	(4.7)
Total Lease liabilities	$	30.0

Earnings per share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Net Income Per Share, Basic and Diluted

The following table presents the calculation of basic and diluted net income per share:


	Year Ended December 31,
(in millions, except per share data)	2021		2020		2019
Numerator:
Net income	$	230.9	$	305.1	$	54.5

Denominator:
Weighted-average number of shares-basic	53.5		52.7		51.5
Dilutive effect of employee incentive plans	0.6		1.1		0.9
Weighted-average number of shares-diluted	54.1		53.8		52.4

Net income per share-basic	$	4.32	$	5.79	$	1.06
Net income per share-diluted	$	4.27	5.67		$	1.04

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	Year Ended December 31,
	2021	2020	2019
Anti-dilutive stock awards	1.0	—	$	0.9

Nature of the business and organization (Details)	12 Months Ended
Nature of the business and organization (Details)	Dec. 31, 2021 category product productCandidate segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of categories of public health threats \| category	5
Number of revenue generating products \| product	11
Number of product candidates \| productCandidate	1
Number of operating segments \| segment	1

Summary of significant accounting policies - Concentration Risk (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer \| Customer Concentration Risk \| USG
Concentration Risk [Line Items]
Concentration risk percentage	50.00%	64.00%	61.00%

Summary of significant accounting policies - Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2021
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	31 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	39 years
Building improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Building improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	39 years
Furniture and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Furniture and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	15 years
Software \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Software \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years

Summary of significant accounting policies - Accounting for Stock-based Compensation (Details)	12 Months Ended
	Dec. 31, 2021 plan
Accounting Policies [Abstract]
Number of stock based employee compensation plans	1
Contractual life of awards	7 years

Summary of significant accounting policies - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Income before income taxes	$ 314.4	$ 407.2	$ 77.4
Net income	230.9	305.1	54.5
Revision of Prior Period, Adjustment
Disaggregation of Revenue [Line Items]
Income before income taxes	7.1
Net income	5.3
Services
Disaggregation of Revenue [Line Items]
Services	334.9	166.7	80.0
Services \| Revision of Prior Period, Adjustment
Disaggregation of Revenue [Line Items]
Services	28.8
Cost of CDMO	16.2
Leases
Disaggregation of Revenue [Line Items]
Leases	299.7	283.8	0.0
Leases \| Revision of Prior Period, Adjustment
Disaggregation of Revenue [Line Items]
Leases	(5.5)
Total CDMO
Disaggregation of Revenue [Line Items]
Total CDMO	634.6	450.5	80.0
Cost of CDMO	375.5	$ 132.0	$ 61.2
Total CDMO \| Revision of Prior Period, Adjustment
Disaggregation of Revenue [Line Items]
Total CDMO	$ 23.3

Revenue recognition - Narrative (Details)		12 Months Ended
Revenue recognition - Narrative (Details)	Nov. 01, 2021 USD ($)	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Jun. 30, 2013 USD ($)
Concentration Risk [Line Items]
Number of operating segments \| segment		1
Contract liability		$ 16,400,000	$ 100,100,000	$ 88,900,000
Research and development expense		234,000,000.0	234,500,000	226,200,000
Operating lease, lease income		62,100,000
Revenue, remaining performance obligation, amount		1,300,000,000
Contract with customer, asset, after allowance for credit loss, current		21,500,000
Contract with customer, asset, after allowance for credit loss, noncurrent			41,100,000
Contract with customer, liability, current		11,700,000	44,600,000
Accounts receivable, allowance for credit loss		3,200,000	3,100,000
Contracts and grants
Concentration Risk [Line Items]
Revenue		134,200,000	115,100,000	122,500,000
BARDA
Concentration Risk [Line Items]
Lessor, operating lease, payments to be received	$ 470,900,000		650,800,000
Contract liability		55,200,000
Operating lease, lease income, lease payments		237,600,000	233,300,000	0
Research and development expense	38,000,000
BARDA \| Contracts and grants
Concentration Risk [Line Items]
Revenue		71,300,000	15,800,000	15,800,000
BARDA \| CIADM
Concentration Risk [Line Items]
Lessor, operating lease, payments to be received	$ 140,500,000				$ 163,200,000
U.S Government \| Contracts and grants
Concentration Risk [Line Items]
Revenue		$ 130,200,000	$ 109,200,000	$ 105,900,000
U.S Government \| Revenue from Contract with Customer \| Geographic Concentration Risk
Concentration Risk [Line Items]
Concentration risk percentage		92.00%	93.00%	90.00%
Non-U.S. Government
Concentration Risk [Line Items]
Lessee, operating lease, remaining lease term		3 years
Non-U.S. Government \| Contracts and grants
Concentration Risk [Line Items]
Revenue		$ 4,000,000.0	$ 5,900,000	$ 16,600,000

Revenue recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenues	$ 1,792.7	$ 1,555.4	$ 1,106.0
U.S Government
Disaggregation of Revenue [Line Items]
Total revenues	897.8	988.5	674.7
Non-U.S. Government
Disaggregation of Revenue [Line Items]
Total revenues	894.9	566.9	431.3
Product sales, net
Disaggregation of Revenue [Line Items]
Revenue	1,023.9	989.8	903.5
Product sales, net \| U.S Government
Disaggregation of Revenue [Line Items]
Revenue	530.0	626.0	568.8
Product sales, net \| Non-U.S. Government
Disaggregation of Revenue [Line Items]
Revenue	493.9	363.8	334.7
Total CDMO
Disaggregation of Revenue [Line Items]
Total CDMO	634.6	450.5	80.0
Total CDMO \| U.S Government
Disaggregation of Revenue [Line Items]
Total CDMO	237.6	253.3	0.0
Total CDMO \| Non-U.S. Government
Disaggregation of Revenue [Line Items]
Total CDMO	397.0	197.2	80.0
Services
Disaggregation of Revenue [Line Items]
Revenue	334.9	166.7	80.0
Services \| U.S Government
Disaggregation of Revenue [Line Items]
Revenue	0.0	0.0	0.0
Services \| Non-U.S. Government
Disaggregation of Revenue [Line Items]
Revenue	334.9	166.7	80.0
Leases
Disaggregation of Revenue [Line Items]
Leases	299.7	283.8	0.0
Leases \| U.S Government
Disaggregation of Revenue [Line Items]
Leases	237.6	253.3	0.0
Leases \| Non-U.S. Government
Disaggregation of Revenue [Line Items]
Leases	62.1	30.5	0.0
Contracts and grants
Disaggregation of Revenue [Line Items]
Revenue	134.2	115.1	122.5
Contracts and grants \| U.S Government
Disaggregation of Revenue [Line Items]
Revenue	130.2	109.2	105.9
Contracts and grants \| Non-U.S. Government
Disaggregation of Revenue [Line Items]
Revenue	$ 4.0	$ 5.9	$ 16.6

Revenue recognition - Percentage of Product Sales (Details) - Sales Revenue, Product Line - Product Concentration Risk	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Anthrax vaccines
Concentration Risk [Line Items]
Concentration risk percentage	25.00%	38.00%	19.00%
Nasal naloxone products
Concentration Risk [Line Items]
Concentration risk percentage	43.00%	31.00%	31.00%
ACAM2000
Concentration Risk [Line Items]
Concentration risk percentage	20.00%	20.00%	27.00%
Other products
Concentration Risk [Line Items]
Concentration risk percentage	12.00%	11.00%	23.00%

Revenue recognition - Performance Obligations (Details) $ in Millions	Dec. 31, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 1,300.0
Leases
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 108.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	24 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 \| Leases
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 45.8
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 \| Leases
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 50.7
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 \| Leases
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 11.5
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year

Revenue recognition - Remaining Performance Obligation (Details)	Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	24 months

Revenue recognition - Contract Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Change in Contract With Customer, Liability [Roll Forward]
Beginning balance	$ 100.1	$ 88.9
Deferral of revenue	279.7	146.2
Revenue recognized	(363.4)	(135.0)
Ending balance	$ 16.4	$ 100.1

Revenue recognition - Accounts Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Accounts receivable [Abstract]
Billed, net	$ 224.9	$ 172.7
Unbilled	49.8	58.2
Total, net	$ 274.7	$ 230.9

Fair value measurements - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 352.4	$ 352.2
Contingent consideration	37.2	58.1
Derivative instruments	6.1	15.0
Total	43.3	73.1
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	152.4	352.2
Contingent consideration	0.0	0.0
Derivative instruments	0.0	0.0
Total	0.0	0.0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	200.0	0.0
Contingent consideration	0.0	0.0
Derivative instruments	6.1	15.0
Total	6.1	15.0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0.0	0.0
Contingent consideration	37.2	58.1
Derivative instruments	0.0	0.0
Total	37.2	58.1
Money market accounts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	152.4	352.2
Money market accounts \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	152.4	352.2
Money market accounts \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0.0	0.0
Money market accounts \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0.0	0.0
Time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	200.0	0.0
Time deposits \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0.0	0.0
Time deposits \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	200.0	0.0
Time deposits \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 0.0	$ 0.0

Fair value measurements - Reconciliation of the Contingent Consideration Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 58.1	$ 29.2
Expense included in earnings	2.9	31.7
Settlements	(23.8)	(2.8)
Balance, end of period	$ 37.2	$ 58.1

Fair value measurements - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Aug. 07, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, current	$ 32.7	$ 23.9
3.875% Senior Unsecured Notes due 2028 \| Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate, stated percentage	3.875%	3.875%	3.875%
Long-term debt, fair value	$ 433.3	$ 466.0

Fair value measurements - Level 3 Significant Unobservable Inputs (Details) $ in Millions	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value	$ 37.2	$ 58.1	$ 29.2
Fair Value, Inputs, Level 3 \| Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value	$ 37.2
Fair Value, Inputs, Level 3 \| Fair Value, Recurring \| Discount rate \| Discounted cash flow \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, liability, measurement input	0
Fair Value, Inputs, Level 3 \| Fair Value, Recurring \| Discount rate \| Discounted cash flow \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, liability, measurement input	0.074
Fair Value, Inputs, Level 3 \| Fair Value, Recurring \| Discount rate \| Discounted cash flow \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, liability, measurement input	0.015
Fair Value, Inputs, Level 3 \| Fair Value, Recurring \| Probability of payment \| Discounted cash flow \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, liability, measurement input	0.250
Fair Value, Inputs, Level 3 \| Fair Value, Recurring \| Probability of payment \| Discounted cash flow \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, liability, measurement input	1.000
Fair Value, Inputs, Level 3 \| Fair Value, Recurring \| Probability of payment \| Discounted cash flow \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, liability, measurement input	0.870

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 217.5	$ 160.6
Work-in-process	95.8	102.5
Finished goods	37.5	43.9
Total inventories	$ 350.8	$ 307.0

Inventories - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Inventory Disclosure [Abstract]
Inventory, LIFO reserve, period charge	$ 41.5

Property, plant and equipment, net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,119.2	$ 903.2
Less: Accumulated depreciation and amortization	(319.1)	(259.1)
Total property, plant and equipment, net	800.1	644.1
Depreciation	62.2	50.1	$ 49.5
Land and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	52.1	52.7
Buildings, building improvements and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	269.7	246.3
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	513.5	362.1
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	60.7	58.7
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 223.2	$ 183.4

Intangible assets and goodwill - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	$ 832.1	$ 832.1
Accumulated Amortization	227.5	169.0
Net	604.6	663.1
Products
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	798.0	798.0
Accumulated Amortization	193.5	137.8
Net	$ 604.5	$ 660.2
Products \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Life	9 years	9 years
Products \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Life	22 years	22 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Life	8 years	8 years
Cost	$ 28.6	$ 28.6
Accumulated Amortization	28.6	26.5
Net	$ 0.0	$ 2.1
CDMO
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Life	8 years	8 years
Cost	$ 5.5	$ 5.5
Accumulated Amortization	5.4	4.7
Net	$ 0.1	$ 0.8

Intangible assets and goodwill - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 58,500,000	$ 59,800,000	$ 58,700,000
Intangible assets, weighted average useful life	11 years 10 months 24 days
Impairment of intangible assets	$ 41,700,000	29,000,000.0	12,000,000.0
Goodwill impairment	$ 41,700,000	$ 0	$ 0

Intangible assets and goodwill - Future Amortization Expense (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 55.9
2023	55.8
2024	55.8
2025	55.8
2026	381.3
Net	$ 604.6	$ 663.1

Intangible assets and goodwill - Summary Changes in Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
Balance at beginning of the year	$ 266,700,000	$ 266,600,000
Goodwill impairment	(41,700,000)	0	$ 0
Foreign currency translation	(100,000)	100,000
Balance at end of the year	$ 224,900,000	$ 266,700,000	$ 266,600,000

Long-term debt - Components of Long-term Indebtedness (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Aug. 07, 2020	Jan. 29, 2014
Debt Instrument [Line Items]
Total debt	$ 849,600,000	$ 885,500,000
Current portion of debt, net of debt issuance costs	(31,600,000)	(33,800,000)
Unamortized debt issuance costs	(8,500,000)	(10,700,000)
Debt, net of current portion	809,400,000	841,000,000.0
Term Loan
Debt Instrument [Line Items]
Total debt	396,600,000	421,900,000
Line of Credit
Debt Instrument [Line Items]
Total debt	$ 0	$ 0
3.875% Senior Unsecured Notes due 2028 \| Senior Notes
Debt Instrument [Line Items]
Interest rate, stated percentage	3.875%	3.875%	3.875%
Total debt	$ 450,000,000.0	$ 450,000,000.0	$ 450,000,000
2.875% Convertible Senior Notes due 2021
Debt Instrument [Line Items]
Interest rate, stated percentage	2.875%			2.875%
2.875% Convertible Senior Notes due 2021 \| Convertible Debt
Debt Instrument [Line Items]
Total debt	$ 0	10,600,000
Other
Debt Instrument [Line Items]
Total debt	$ 3,000,000.0	$ 3,000,000.0

Long-term debt - Senior Unsecured Notes (Details) - USD ($) $ in Millions	Aug. 07, 2020	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Debt issuance costs, current, net		$ 2.0	$ 2.0
Debt issuance costs		1.6	3.5
Long-term debt		$ 849.6	$ 885.5
3.875% Senior Unsecured Notes due 2028 \| Prior to August 15, 2023
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.00%
3.875% Senior Unsecured Notes due 2028 \| Prior to August 15, 2023 \| Maximum
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	40.00%
3.875% Senior Unsecured Notes due 2028 \| Upon the occurrence of a change in control \| Maximum
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	101.00%
3.875% Senior Unsecured Notes due 2028 \| Senior Notes
Debt Instrument [Line Items]
Interest rate, stated percentage	3.875%	3.875%	3.875%
Long-term debt	$ 450.0	$ 450.0	$ 450.0

Long-term debt - Senior Secured Credit Agreement (Details)	Aug. 07, 2020 USD ($)
Debt Instrument [Line Items]
Debt instrument, covenant, net leverage ratio rolling period	12 months
Debt instrument, covenant, net leverage ratio adjustment period	12 months
Amended Credit Agreement \| Minimum
Debt Instrument [Line Items]
Commitment fee percentage	0.20%
Debt instrument, covenant, debt service coverage ratio	2.5
Amended Credit Agreement \| Maximum
Debt Instrument [Line Items]
Commitment fee percentage	0.40%
Debt instrument, covenant, net leverage ratio, maximum	4.5
Debt instrument, covenant, net leverage, adjustment	5.0
Amended Credit Agreement \| Eurodollar
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.00%
Amended Credit Agreement \| Eurodollar \| Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.30%
Amended Credit Agreement \| Eurodollar \| Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.30%
Amended Credit Agreement \| Federal Funds Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.50%
Amended Credit Agreement \| Base Rate \| Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.30%
Amended Credit Agreement \| Base Rate \| Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.30%
Revolving Credit Facility \| Amended Credit Agreement
Debt Instrument [Line Items]
Current borrowing capacity	$ 600,000,000
Term Loan Facility \| Amended Credit Agreement
Debt Instrument [Line Items]
Current borrowing capacity	$ 450,000,000
Percentage of original principal amount required to repay in the first two years	2.50%
Percentage of original principal amount required to repay during the third year	5.00%
Percentage of original principal amount required to repay remaining year	7.50%
Cash proceeds excess amount from dispositions of property or casualty events subject to certain reinvestment right	$ 100,000,000
Debt instrument, covenant, consideration threshold	$ 75,000,000

Long-term debt - Convertible Senior Notes (Details)	Dec. 31, 2021	Jan. 29, 2014
2.875% Convertible Senior Notes due 2021
Long-Term Debt [Line Items]
Interest rate, stated percentage	2.875%	2.875%

Long-term debt - Future Debt Payments of Long-term Indebtedness (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
2022	$ 33.8
2023	363.6
2024	0.2
2025	0.0
2026	452.0
Total debt	$ 849.6	$ 885.5

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Derivative Instruments and hedging activities - Derivative Designated as Cash Flow Hedges (Details) - Interest Rate Swaps - Designated as Hedging Instrument	Dec. 31, 2021 USD ($) instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of Instruments \| instrument	7
Notional amount \| $	$ 350,000,000.0

Derivative Instruments and hedging activities - Fair Value by Balance Sheet Location (Details) - Interest Rate Swaps - Designated as Hedging Instrument - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Other Current Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 4.5	$ 5.7
Other Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 1.6	$ 9.3

Derivative Instruments and hedging activities - Cash Flow Hedging on AOCI (Details) - Interest Rate Swaps - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income	$ (6.1)	$ (15.0)
Interest expense \| Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income	$ (5.8)	$ (3.9)

Derivative Instruments and hedging activities - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Interest Rate Swaps
Derivatives, Fair Value [Line Items]
Cash flow hedge gain (loss) to be reclassified within twelve months	$ 1.6

Stockholders' equity - Narrative (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) plan vote $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares	Nov. 11, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, shares authorized (in shares) \| shares	15,000,000	15,000,000.0
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001	$ 0.001
Common stock, shares authorized (in shares) \| shares	200,000,000	200,000,000.0
Common stock, voting rights \| vote	1
Stock repurchase program, authorized amount				$ 250.0
Repurchases of stock	$ 112.6
Number of stock based employee compensation plans \| plan	1
Contractual life of awards	7 years
Weighted average remaining contractual term of options outstanding	4 years 3 months 18 days	4 years 3 months 18 days
Weighted average remaining contractual term of options exercisable	3 years 2 months 12 days	2 years 10 months 24 days
Weighted average grant date fair value of options granted (in dollars per share) \| $ / shares	$ 35.16	$ 21.69	$ 21.13
Total intrinsic value of options exercised	$ 15.7	$ 38.2	$ 5.3
Compensation cost expected to be recognized related to unvested equity awards	$ 60.7
Weighted average period expected to be recognized related to unvested equity awards	1 year 7 months 6 days
Treasury Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchases of stock	$ 112.6
Repurchases of stock (in shares) \| shares	2,600,000
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for issuance under the plan (in shares) \| shares	25,400,000
Common stock available for future awards (in shares) \| shares	6,700,000
Exercise price of option as percentage of fair market value at grant date, minimum	100.00%
Contractual life of awards	7 years
Total fair value of awards vested	$ 30.8	$ 35.3	$ 16.9

Stockholders' equity - Stock Options Valuation Assumptions (Details) - Employee Stock Option	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%
Expected volatility, minimum	47.00%	39.00%	37.00%
Expected volatility, maximum	48.00%	48.00%	39.00%
Risk-free interest rate, minimum	0.43%	0.27%	1.57%
Risk-free interest rate, maximum	0.94%	1.42%	2.48%
Expected average life of options	4 years 6 months	4 years 6 months	4 years 6 months

Stockholders' equity - Stock Options and Restricted Stock Units (Details) - 2006 Stock Incentive Plan - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Number of Shares
Outstanding, beginning of period (in shares)	1,300,000
Stock options granted (in shares)	300,000
Exercised (in shares)	(300,000)
Forfeited (in shares)	(100,000)
Outstanding, end of period (in shares)	1,200,000
Exercisable, end of period (in shares)	600,000
Weighted-Average Exercise Price
Outstanding, beginning of period (in dollars per share)	$ 49,070,000.00
Stock options grant price (in dollars per share)	89,470,000
Exercised (in dollars per share)	35,910,000
Forfeited (in dollars per share)	71,770,000
Outstanding, end of period (in dollars per share)	60,830,000
Exercisable, end of period (in dollars per share)	$ 47,280,000
Aggregate Intrinsic Value
Outstanding	$ 3.0	$ 53.4
Exercisable	$ 3.0
Performance Stock Units (PSUs) and Restricted Stock Units (RSUs)
Number of Shares
Outstanding, beginning of period (in shares)	1,100,000
Restricted stock units granted (in shares)	700,000
Vested (in shares)	(500,000)
Forfeited (in shares)	(200,000)
Outstanding, end of period (in shares)	1,100,000
Weighted-Average Grant Price
Outstanding, beginning of period (in dollars per share)	$ 63,300,000
Restricted stock units grant price (in dollars per share)	76,720,000
Vested (in dollars per share)	61,760,000
Forfeited (in dollars per share)	74,420,000
Outstanding, end of period (in dollars per share)	$ 70,820,000
Aggregate Intrinsic Value
Outstanding	$ 47.6	$ 96.3

Stockholders' equity - Stock-based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 42.4	$ 51.0	$ 26.7
Cost of product sales \| Products
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	6.4	8.9	2.3
Cost of product sales \| Contract Development And Manufacturing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1.1	3.5	0.8
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	5.0	8.4	4.0
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 29.9	$ 30.2	$ 19.6

Stockholders' equity - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,447.0	$ 1,088.5	$ 1,010.9
Other comprehensive (loss) income before reclassifications	4.0	(19.3)
Amounts reclassified from accumulated other comprehensive income	5.2	3.9
Total other comprehensive income (loss), net of tax	9.2	(15.4)	(4.4)
Ending balance	1,619.0	1,447.0	1,088.5
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(25.3)	(9.9)	(5.5)
Total other comprehensive income (loss), net of tax	9.2	(15.4)	(4.4)
Ending balance	(16.1)	(25.3)	(9.9)
Defined Benefit Pension Plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(7.7)	(3.4)
Other comprehensive (loss) income before reclassifications	4.3	(4.3)
Amounts reclassified from accumulated other comprehensive income	(0.6)	0.0
Total other comprehensive income (loss), net of tax	3.7	(4.3)	(3.2)
Ending balance	(4.0)	(7.7)	(3.4)
Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(11.0)	(1.6)
Other comprehensive (loss) income before reclassifications	0.7	(13.3)
Amounts reclassified from accumulated other comprehensive income	5.8	3.9
Total other comprehensive income (loss), net of tax	6.5	(9.4)	(1.6)
Ending balance	(4.5)	(11.0)	(1.6)
Foreign Currency Translation Losses
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(6.6)	(4.9)
Other comprehensive (loss) income before reclassifications	(1.0)	(1.7)
Amounts reclassified from accumulated other comprehensive income	0.0	0.0
Total other comprehensive income (loss), net of tax	(1.0)	(1.7)	0.4
Ending balance	$ (7.6)	$ (6.6)	$ (4.9)

- Definition

+ References

+ Details

Stockholders' equity - Tax Effects Related to Each Component of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pretax	$ 12.0	$ (19.8)	$ (5.3)
Tax Benefit (Expense)	(2.8)	4.4	0.9
Total other comprehensive income (loss), net of tax	9.2	(15.4)	(4.4)
Defined Benefit Pension Plan
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pretax	4.3	(5.0)	(3.7)
Tax Benefit (Expense)	(0.6)	0.7	0.5
Total other comprehensive income (loss), net of tax	3.7	(4.3)	(3.2)
Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pretax	8.9	(13.0)	(2.0)
Tax Benefit (Expense)	(2.4)	3.6	0.4
Total other comprehensive income (loss), net of tax	6.5	(9.4)	(1.6)
Foreign Currency Translation Losses
Accumulated Other Comprehensive Income (Loss) [Line Items]
Pretax	(1.2)	(1.8)	0.4
Tax Benefit (Expense)	0.2	0.1	0.0
Total other comprehensive income (loss), net of tax	$ (1.0)	$ (1.7)	$ 0.4

Income taxes - Narrative (Details) - USD ($)	12 Months Ended
Income taxes - Narrative (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Contingency [Line Items]
Deferred tax liabilities, undistributed foreign earnings	$ 0	$ 0
Deferred tax liabilities, net	90,700,000	43,800,000
Federal losses carryforward	7,600,000	8,100,000
Valuation allowance	25,000,000.0	51,100,000
Foreign losses carryforward	$ 10,200,000	$ 36,900,000
Effective income tax rate reconciliation, percent	(27.00%)	(25.00%)	30.00%
Unrecognized tax benefits, noncurrent	$ 9,800,000	$ 9,200,000
Gross unrecognized tax benefits	9,800,000	$ 9,200,000	$ 10,400,000	$ 8,800,000
Research Tax Credit Carryforward
Income Tax Contingency [Line Items]
Tax credit carryforward, amount	14,500,000
Tax credit carryforward, valuation allowance	9,100,000
Manitoba Scientific Research and Experimental Development
Income Tax Contingency [Line Items]
Tax credit carryforward, amount	2,100,000
Domestic Tax Authority
Income Tax Contingency [Line Items]
Operating loss carryforwards	36,000,000
Federal losses carryforward	7,600,000
Valuation allowance	4,700,000
Foreign Tax Authority
Income Tax Contingency [Line Items]
Operating loss carryforwards	46,700,000
Valuation allowance	6,000,000
Foreign losses carryforward	8,200,000
State and Local Jurisdiction
Income Tax Contingency [Line Items]
Valuation allowance	3,200,000
Operating loss carryforwards, valuation allowance	79,400,000
State and Local Jurisdiction \| Maryland
Income Tax Contingency [Line Items]
Operating loss carryforwards	1,083,900,000
State and Local Jurisdiction \| California
Income Tax Contingency [Line Items]
Operating loss carryforwards	76,400,000
Deferred tax assets, operating loss carryforwards	3,200,000
PaxVax
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Increase Resulting from Acquisition	$ 7,400,000

Income taxes - Components of the Provisions for Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current
Federal	$ (3.7)	$ 62.8	$ 1.4
State	14.9	27.7	11.6
International	28.4	14.0	11.0
Total current	39.6	104.5	24.0
Deferred
Federal	38.0	1.1	1.9
State	4.3	0.0	1.1
International	1.6	(3.5)	(4.1)
Total deferred	43.9	(2.4)	(1.1)
Total income taxes	$ 83.5	$ 102.1	$ 22.9

Income taxes - Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Tax Credit Carryforward [Line Items]
Federal losses carryforward	$ 7.6	$ 8.1
State losses carryforward	3.3	3.1
Scientific research and experimental development credit carryforward	2.1	8.4
Stock compensation	8.9	8.6
Foreign losses carryforward	10.2	36.9
Deferred revenue	0.4	26.2
Inventory reserves	2.9	1.7
Lease liability	6.5	8.2
IRC 263A capitalized costs	3.9	2.3
Other	5.6	8.5
Deferred tax asset	65.9	124.5
Valuation allowance	(25.0)	(51.1)
Net deferred tax asset	40.9	73.4
Fixed assets	(75.1)	(54.6)
Intangible assets	(47.6)	(50.4)
Right-of-use asset	(6.1)	(7.7)
Other	(2.8)	(4.5)
Deferred tax liability	(131.6)	(117.2)
Net deferred tax liability	(90.7)	(43.8)
Domestic Tax Authority
Tax Credit Carryforward [Line Items]
Federal losses carryforward	7.6
Research and development carryforward	9.5	7.5
Valuation allowance	(4.7)
State and Local Jurisdiction
Tax Credit Carryforward [Line Items]
Research and development carryforward	5.0	$ 5.0
Valuation allowance	$ (3.2)

Income taxes - Reconciliation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
US	$ 112.0	$ 362.0	$ 63.9
International	202.4	45.2	13.5
Earnings before taxes on income	314.4	407.2	77.4
Federal tax at statutory rates	65.8	85.5	16.3
State taxes, net of federal benefit	16.1	23.2	10.3
Impact of foreign operations	(16.8)	(7.8)	(6.9)
Change in valuation allowance	4.3	1.5	(1.0)
Tax credits	(4.7)	(7.6)	(3.6)
Stock compensation	(4.9)	(7.9)	(2.4)
Impairments	8.3	0.0	0.0
Return to provision true-ups	0.8	(0.7)	(2.3)
Transaction costs	0.3	6.0	4.7
Compensation limitation	2.9	2.2	1.3
FIN 48	0.3	(0.3)	1.1
GILTI, net	11.4	5.4	3.6
Permanent differences	(0.3)	2.6	1.8
Total income taxes	$ 83.5	$ 102.1	$ 22.9

Income taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefits, beginning balance	$ 9.2	$ 10.4	$ 8.8
Increases for tax positions for prior years	0.4	0.0	0.5
Increases for tax positions for current year	0.2	0.6	1.5
Settlements		(1.8)	(0.4)
Gross unrecognized tax benefits, ending balance	$ 9.8	$ 9.2	$ 10.4

Defined benefit and 401(k) savings plan - Swiss Plan Funded Status (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Pension expense	$ 2.0	$ 2.4	$ 1.5
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets, beginning of year	27.6	20.6
Employer contributions	1.4	1.4
Employee contributions	0.9	0.8
Net benefits received (paid)	0.5	6.8
Actual return on plan assets	(0.1)	0.3
Settlements	0.0	(4.5)
Currency impact	(1.0)	2.2
Fair value of plan assets, end of year	29.3	27.6	20.6
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Projected benefit obligation, beginning of year	49.2	35.2
Service cost	2.4	1.9	1.3
Interest Cost	0.0	0.1	0.2
Employee contributions	0.9	0.8
Actuarial (gain) loss	(4.6)	5.0
Net benefits received (paid)	0.5	6.8
Settlements	0.0	(4.5)
Currency impact	(1.6)	3.9
Projected benefit obligation, end of year	46.8	49.2	$ 35.2
Funded status, end of year	(17.5)	(21.6)
Accumulated benefit obligation, end of year	$ 41.8	$ 43.0

Defined benefit and 401(k) savings plan - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Total contributions expected	$ 1.4
Matching contributions made by employer	$ 8.9	$ 6.6	$ 5.1

Defined benefit and 401(k) savings plan - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Service cost	$ 2.4	$ 1.9	$ 1.3
Interest cost	0.0	0.1	0.2
Expected return on plan assets	(0.8)	(0.6)	(0.5)
Amortization of loss	0.6	0.2	0.0
Amortization of prior service cost	(0.2)	(0.2)	0.0
Settlements	0.0	1.0	0.5
Net periodic benefit cost	$ 2.0	$ 2.4	$ 1.5

Defined benefit and 401(k) savings plan - Weighted Average Assumptions (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Discount rate	0.30%	0.02%
Expected rate of return	3.00%	3.00%
Rate of future compensation increases	1.40%	1.40%

Defined benefit and 401(k) savings plan - Accumulated Other Comprehensive Loss Before Income Tax (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Net actuarial (gain) loss	$ 5.9	$ 9.9
Prior service cost	(1.3)	(1.0)
Total recognized in accumulated other comprehensive (income) loss	$ 4.6	$ 8.9

Defined benefit and 401(k) savings plan - Expected Future Benefits Payments (Details) $ in Millions	Dec. 31, 2021 USD ($)
Retirement Benefits [Abstract]
2022	$ 2.2
2023	1.7
2024	1.7
2025	1.8
2026	1.8
Thereafter	37.6
Total	$ 46.8

Leases - Components of Lease Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating lease cost:
Amortization of right-of-use assets	$ 5.6	$ 4.5	$ 2.7
Interest on lease liabilities	1.3	1.1	0.6
Total operating lease cost	$ 6.9	$ 5.6	$ 3.3

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	us-gaap:OtherLiabilities	us-gaap:OtherLiabilities
Total operating lease liabilities	$ 30.0	$ 33.2
Operating leases:
Weighted average remaining lease term (years)	7 years	7 years 8 months 12 days
Weighted average discount rate	4.10%	4.10%
Other assets
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 28.3	$ 31.0
Other Current Liabilities
Lessee, Lease, Description [Line Items]
Operating lease liabilities, current portion	5.8	5.4
Other Liabilities
Lessee, Lease, Description [Line Items]
Operating lease liabilities	$ 24.2	$ 27.8

Leases - Narrative (Details)	12 Months Ended
Leases - Narrative (Details)	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Operating lease, renewal term	5 years
Operating lease, termination period	1 year
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	12 years

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Operating leases
2022	$ 6.9
2023	6.9
2024	4.7
2025	3.1
2026	2.7
Thereafter	10.4
Total undiscounted lease liabilities	34.7
Less: Imputed interest	(4.7)
Total Lease liabilities	$ 30.0	$ 33.2

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income	$ 230.9	$ 305.1	$ 54.5
Denominator:
Weighted-average number of shares-basic (in shares)	53.5	52.7	51.5
Dilutive securities-equity awards (in shares)	0.6	1.1	0.9
Weighted-average number of shares-diluted (in shares)	54.1	53.8	52.4
Net income (loss) per share - basic (in dollars per share)	$ 4.32	$ 5.79	$ 1.06
Net income (loss) per share - diluted (in dollars per share)	$ 4.27	$ 5.67	$ 1.04
Anti-dilutive stock awards (in shares)	1.0	0.0	0.9

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Purchase commitments (Details) - USD ($) $ in Millions	12 Months Ended
Purchase commitments (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Purchase Obligation, Fiscal Year Maturity [Abstract]
Total purchase commitment	$ 132.0
Purchase commitment period	3 years
Materials purchased under commitment, amount	$ 110.7	$ 108.0	$ 51.3

Segment information - Narrative (Details) $ in Millions	12 Months Ended
Segment information - Narrative (Details) $ in Millions	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	1
Non-US
Segment Reporting Information [Line Items]
Long-lived assets \| $	$ 111.9	$ 98.6

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Inventory allowance
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	$ 37.6	$ 17.9	$ 14.0
Charged to Costs and Expenses	37.9	48.0	23.0
Deductions	(32.8)	(28.3)	(19.1)
Ending Balance	42.7	37.6	17.9
Prepaid expenses and other current assets allowance
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	3.9	4.0	4.3
Charged to Costs and Expenses	0.2	0.5	0.0
Deductions	(0.4)	(0.6)	(0.3)
Ending Balance	$ 3.7	$ 3.9	$ 4.0