Segment Data

9 Months Ended

Sep. 24, 2021

Segment Reporting [Abstract]

Segment Data

14. 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.

Management measures and evaluates the Company's operating segments based on segment net sales and operating income. Management excludes corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment net sales and operating income because management and the chief operating decision maker evaluate the operating results of the segments excluding such items. These items may include, but are not limited to, depreciation and amortization, share-based compensation, net restructuring charges, non-restructuring impairment charges, separation costs, research and development ("R&D") upfront payments, changes related to the Amended Proposed Opioid-Related Litigation Settlement and the Acthar Gel Medicaid Retrospective Rebate incurred as a result of the Medicaid lawsuit. Although these amounts are excluded from segment net sales and operating income, as applicable, they are included in reported consolidated net sales and operating income (loss) and are reflected in the reconciliations presented below.

Selected information by reportable segment was as follows:

	Three Months Ended				Nine Months Ended
	September 24, 2021		September 25, 2020		September 24, 2021		September 25, 2020
Net sales:
Specialty Brands	$	359.7	$	539.6	$	1,149.6	$	1,553.0
Specialty Generics	147.5		159.4		462.0		512.7
Segment net sales	507.2		699.0		1,611.6		2,065.7
Medicaid lawsuit (Note 12)	—		(0.7)		—		(535.1)
Net sales	$	507.2	$	698.3	$	1,611.6	$	1,530.6
Operating income (loss):
Specialty Brands	$	189.9	$	291.8	$	588.6	$	765.0
Specialty Generics	15.2		43.1		73.8		155.5
Segment operating income	205.1		334.9		662.4		920.5
Unallocated amounts:
Corporate and unallocated expenses (1)	(20.8)		(42.1)		(69.1)		(152.3)
Depreciation and amortization	(168.4)		(236.1)		(506.1)		(675.5)
Share-based compensation	(2.4)		(4.3)		(8.4)		(17.6)
Restructuring charges, net	(11.0)		(3.2)		(17.5)		(15.8)
Non-restructuring impairment charges	—		—		(64.5)		(63.5)
Separation costs (2)	(0.1)		(33.0)		(1.0)		(75.0)
R&D upfront payment (3)	—		—		—		(5.0)
Opioid-related litigation settlement (loss) gain (Note 12)	(125.0)		25.8		(125.0)		34.1
Medicaid lawsuit (Note 12)	—		(0.5)		—		(640.2)
Operating (loss) income	$	(122.6)	$	41.5	$	(129.2)	$	(690.3)

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

(2)Represents costs included in SG&A expenses, primarily related to professional fees and costs incurred in preparation for the Chapter 11 proceedings. As of the Petition Date, professional fees directly related to the Chapter 11 proceedings that were previously reflected as separation costs are being classified on a go-forward basis as reorganization items, net.

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

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

	Three Months Ended				Nine Months Ended
	September 24, 2021		September 25, 2020		September 24, 2021		September 25, 2020
Acthar Gel	$	143.4	$	195.3	$	423.9	$	576.6
INOmax	98.4		141.9		338.3		438.5
Ofirmev	4.7		88.7		24.0		216.0
Therakos	62.5		62.6		197.8		174.1
Amitiza (1)	49.6		47.7		155.8		138.2
Other	1.1		3.4		9.8		9.6
Specialty Brands	359.7		539.6		1,149.6		1,553.0
Hydrocodone (API) and hydrocodone-containing tablets	16.9		20.0		60.7		71.9
Oxycodone (API) and oxycodone-containing tablets	15.2		16.1		49.5		48.0
Acetaminophen (API)	49.6		54.9		146.8		154.5
Other controlled substances	60.8		62.4		187.9		223.8
Other	5.0		6.0		17.1		14.5
Specialty Generics	147.5		159.4		462.0		512.7
Segment net sales	507.2		699.0		1,611.6		2,065.7
Medicaid lawsuit (Note 12)	—		(0.7)		—		(535.1)
Net sales	$	507.2	$	698.3	$	1,611.6	$	1,530.6

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