Segment Data (Tables)

6 Months Ended

Jun. 26, 2020

Schedule of Segment Reporting Information by Reportable Segment

Selected information by reportable segment was as follows:


	Three Months Ended						Six Months Ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Net sales:
Specialty Brands ⁽¹⁾	$	522.8	$	627.8	$	1,013.4	$	1,232.0
Specialty Generics	178.1		195.5		353.3		381.9
Segment net sales	700.9		823.3		1,366.7		1,613.9
Medicaid lawsuit (Note 11) ⁽¹⁾	(534.4)		—		(534.4)		—
Net sales	$	166.5	$	823.3	$	832.3	$	1,613.9
Operating income:
Specialty Brands	$	245.1	$	321.4	$	457.3	$	596.9
Specialty Generics	34.9		33.9		83.2		58.3
Segment operating income	280.0		355.3		540.5		655.2
Unallocated amounts:
Corporate and unallocated expenses ⁽²⁾	(62.1)		(36.4)		(128.6)		(82.2)
Intangible asset amortization	(191.6)		(216.6)		(389.2)		(439.4)
Restructuring and related charges, net	(14.4)		0.2		(12.6)		(4.0)
Non-restructuring impairment charges	(63.5)		(113.5)		(63.5)		(113.5)
Separation costs ⁽³⁾	(20.7)		(18.9)		(42.0)		(30.6)
R&D upfront payment ⁽⁴⁾	(5.0)		—		(5.0)		—
Opioid-related litigation settlement ⁽⁵⁾	(8.5)		—		8.3		—
Medicaid lawsuit (Note 11) ⁽¹⁾	(639.7)		—		(639.7)		—
Operating loss	$	(725.5)	$	(29.9)	$	(731.8)	$	(14.5)

(1)Specialty Brands net sales for the three and six months ended June 26, 2020 includes the prospective change to the Medicaid rebate calculation, which served to reduce Acthar Gel net sales by $8.6 million for the period from June 15, 2020 through June 26, 2020, of which $6.8 million represents the channel impact. Of the $534.4 million recorded as a component of net sales, $12.3 million and $27.6 million represent the impact of the Medicaid rebate calculation through June 14, 2020 for the three and six months ended June 26, 2020, respectively. See Note 11 for further detail on the status of the Medicaid lawsuit.

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

(3)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.

(4)Represents R&D expense incurred related to an upfront payment made to acquire product rights in Japan for terlipressin.

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

Schedule of Net Sales from External Customers by Products

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


	Three Months Ended						Six Months Ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Acthar Gel ⁽¹⁾	$	213.7	$	266.4	$	381.3	$	490.3
INOmax	154.9		139.7		296.6		290.8
Ofirmev	52.4		90.5		127.3		186.1
Therakos	47.8		60.9		111.5		122.7
Amitiza ⁽²⁾	49.4		52.0		90.5		105.0
Other ⁽³⁾	4.6		18.3		6.2		37.1
Specialty Brands	522.8		627.8		1,013.4		1,232.0

Hydrocodone (API) and hydrocodone-containing tablets	25.4		18.1		51.9		35.5
Oxycodone (API) and oxycodone-containing tablets	15.0		19.6		31.9		36.1
Acetaminophen (API)	55.5		48.4		99.6		94.6
Other controlled substances	77.8		98.6		161.4		192.8
Other	4.4		10.8		8.5		22.9
Specialty Generics	178.1		195.5		353.3		381.9
Segment net sales	700.9		823.3		1,366.7		1,613.9
Medicaid lawsuit (Note 11) ⁽⁴⁾	(534.4)		—		(534.4)		—
Net sales	$	166.5	$	823.3	$	832.3	$	1,613.9

(1)The three and six months ended June 26, 2020 includes the prospective change to the Medicaid rebate calculation of $8.6 million for the period from June 15, 2020 through June 26, 2020, of which $6.8 million represents the channel impact. See Note 11 for further detail on the status of the Medicaid lawsuit.

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

(3)The three and six months ended June 28, 2019 includes $13.9 million and $26.3 million of net sales, respectively, related to BioVectra prior to the completion of the sale of this business in November 2019.

(4)Of this amount, $12.3 million and $27.6 million represent the impact of the Medicaid rebate calculation through June 14, 2020 for the three and six months ended June 26, 2020, respectively.