Segment Data

3 Months Ended

Mar. 27, 2020



13.	Segment Data

The Company operates in two reportable segments, which are further described below:


•	Specialty Brands includes innovative specialty pharmaceutical brands; and


•	Specialty Generics includes niche specialty generic drugs and APIs.

All prior period segment information has been reclassified to reflect the realignment of the Company's reportable segments on a comparable basis, as previously discussed in Note 1.

Selected information by reportable segment was as follows:



	Three Months Ended
	March 27, 2020			March 29, 2019
Net sales:
Specialty Brands	$	490.6		$	604.2
Specialty Generics	175.2			186.4
Net sales	$	665.8		$	790.6
Operating (loss) income:
Specialty Brands	$	212.2		$	275.5
Specialty Generics	48.3			24.4
Segment operating income	260.5			299.9
Unallocated amounts:
Corporate and unallocated expenses ⁽¹⁾	(66.5		)	(45.8		)
Intangible asset amortization	(197.6		)	(222.8		)
Restructuring and related charges, net	1.8			(4.2		)
Separation costs ⁽²⁾	(21.3		)	(11.7		)
Opioid-related litigation settlement ⁽³⁾	16.8			—
Operating (loss) income	$	(6.3	)	$	15.4


(1)	Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments.

(2)

These costs, which are included in SG&A expenses, primarily relate to professional fees, incremental costs incurred to build out the corporate infrastructure of the previously planned spin-off of the Company's Specialty Generics segment, costs incurred as the Company works to resolve opioid uncertainties, as well as rebranding initiatives associated with the Specialty Brands ongoing transformation.


(3)	Represents the change in the Settlement Warrants' fair value. Refer to Note 12 for further information regarding the valuations of the Settlement Warrants.

Net sales by product family within the Company's reportable segments were as follows:



	Three Months Ended
	March 27, 2020		March 29, 2019
Acthar Gel	$	167.6	$	223.9
INOmax	141.7		151.1
Ofirmev	74.9		95.6
Therakos	63.7		61.8
Amitiza ⁽¹⁾	41.1		53.0
Other ⁽²⁾	1.6		18.8
Specialty Brands	490.6		604.2

Hydrocodone (API) and hydrocodone-containing tablets	26.5		17.4
Oxycodone (API) and oxycodone-containing tablets	16.9		16.5
Acetaminophen (API)	44.1		46.2
Other controlled substances	83.6		94.2
Other	4.1		12.1
Specialty Generics	175.2		186.4
Net sales	$	665.8	$	790.6


(1)	Amitiza consists of both product net sales and royalties. Refer to Note 2 for further details on Amitiza's revenues.

(2)

The three months ended March 29, 2019 includes $12.4 million of net sales related to BioVectra prior to the completion of the sale of this business in November 2019.