Segment Data (Tables)

9 Months Ended

Sep. 25, 2020

Schedule of Segment Reporting Information by Reportable Segment

Selected information by reportable segment was as follows:


	Three Months Ended				Nine Months Ended
	September 25, 2020		September 27, 2019		September 25, 2020		September 27, 2019
Net sales:
Specialty Brands	$	539.6	$	580.4	$	1,553.0	$	1,812.4
Specialty Generics	159.4		163.3		512.7		545.2
Segment net sales	699.0		743.7		2,065.7		2,357.6
Medicaid lawsuit (Note 11)	(0.7)		—		(535.1)		—
Net sales	$	698.3	$	743.7	$	1,530.6	$	2,357.6
Operating income:
Specialty Brands	$	291.8	$	277.0	$	765.0	$	894.2
Specialty Generics	43.1		36.3		155.5		125.4
Segment operating income	334.9		313.3		920.5		1,019.6
Unallocated amounts:
Corporate and unallocated expenses (1)	(42.1)		(15.3)		(152.3)		(76.6)
Depreciation and amortization	(236.1)		(234.9)		(675.5)		(723.5)
Share-based compensation	(4.3)		(7.8)		(17.6)		(30.6)
Restructuring and related charges, net	(3.2)		(7.2)		(15.8)		(11.2)
Non-restructuring impairment charges	—		—		(63.5)		(113.5)
Separation costs (2)	(33.0)		(19.8)		(75.0)		(50.4)
R&D upfront payment (3)	—		(20.0)		(5.0)		(20.0)
Opioid-related litigation settlement (4)	25.8		—		34.1		—
Medicaid lawsuit (Note 11)	(0.5)		—		(640.2)		—
Operating income (loss)	$	41.5	$	8.3	$	(690.3)	$	(6.2)

(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, costs incurred in preparation for the Chapter 11 proceedings as the Company works to resolve opioid and other legal uncertainties, incremental costs incurred to build out the corporate infrastructure of the previously planned spin-off of the Company's Specialty Generics segment, as well as rebranding initiatives associated with the Specialty Brands ongoing transformation.

(3)Represents R&D expense incurred related to an upfront payment made to acquire product rights in Japan for terlipressin during the nine months ended September 25, 2020 and an upfront payment made to Silence in connection with the license and collaboration agreement entered into during the three and nine months ended September 27, 2019.

(4)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				Nine Months Ended
	September 25, 2020		September 27, 2019		September 25, 2020		September 27, 2019
Acthar Gel (1)	$	195.3	$	229.8	$	576.6	$	720.1
INOmax	141.9		136.8		438.5		427.6
Ofirmev	88.7		86.1		216.0		272.2
Therakos	62.6		60.9		174.1		183.6
Amitiza (2)	47.7		52.6		138.2		157.6
Other (3)	3.4		14.2		9.6		51.3
Specialty Brands	539.6		580.4		1,553.0		1,812.4

Hydrocodone (API) and hydrocodone-containing tablets	20.0		15.7		71.9		51.2
Oxycodone (API) and oxycodone-containing tablets	16.1		17.2		48.0		53.3
Acetaminophen (API)	54.9		48.5		154.5		143.1
Other controlled substances	62.4		72.9		223.8		265.7
Other	6.0		9.0		14.5		31.9
Specialty Generics	159.4		163.3		512.7		545.2
Segment net sales	699.0		743.7		2,065.7		2,357.6
Medicaid lawsuit (Note 11)	(0.7)		—		(535.1)		—
Net sales	$	698.3	$	743.7	$	1,530.6	$	2,357.6

(1)The three and nine months ended September 25, 2020 includes the prospective change to the Medicaid rebate calculation beginning in June 2020, which impacted Acthar Gel net sales by $22.2 million and $30.8 million, respectively. 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 nine months ended September 27, 2019 includes $10.5 million and $36.8 million of net sales, respectively, related to BioVectra prior to the completion of the sale of this business in November 2019.