Segment Data

3 Months Ended

Apr. 01, 2022

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 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 and separation costs. Although these amounts are excluded from segment operating income, as applicable, they are included in reported consolidated operating loss and are reflected in the reconciliations presented below.

Selected information by reportable segment was as follows:

	Three Months Ended
	April 1, 2022		March 26, 2021
Net sales:
Specialty Brands	$	339.4	$	408.4
Specialty Generics	151.5		149.6
Net sales	$	490.9	$	558.0
Operating income (loss):
Specialty Brands	$	164.8	$	212.1
Specialty Generics	34.4		31.7
Segment operating income	199.2		243.8
Unallocated amounts:
Corporate and unallocated expenses (1)	(32.8)		(22.6)
Depreciation and amortization	(177.2)		(169.6)
Share-based compensation	(1.2)		(3.6)
Restructuring charges, net	(6.8)		(0.4)
Non-restructuring impairment charges	—		(64.5)
Separation costs (2)	(2.0)		(0.6)
Operating loss	$	(20.8)	$	(17.5)

(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 selling, general and administrative expenses, primarily related to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence.

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

	Three Months Ended
	April 1, 2022		March 26, 2021
Acthar Gel	$	127.7	$	129.0
INOmax	99.0		134.0
Ofirmev	2.6		12.8
Therakos	59.9		66.8
Amitiza (1)	47.7		61.4
Other	2.5		4.4
Specialty Brands	339.4		408.4
Hydrocodone (API) and hydrocodone-containing tablets	19.0		23.3
Oxycodone (API) and oxycodone-containing tablets	16.6		17.2
Acetaminophen (API)	46.3		45.5
Other controlled substances	64.1		58.1
Other	5.5		5.5
Specialty Generics	151.5		149.6
Net sales	$	490.9	$	558.0

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