Segment and Geographical Data

12 Months Ended

Dec. 30, 2022

Segment Reporting [Abstract]

Segment and Geographical Data

21. Segment and Geographical 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 API(s).

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, R&D upfront payments, changes related to the Opioid-Related Litigation Settlement and 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 loss and are reflected in the reconciliations presented below.

Management manages assets on a total company basis, not by operating segment. The Company's chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, the Company does not report asset

information by operating segment. Total assets were approximately $6,013.8 million and $8,916.3 million as of December 30, 2022 (Successor) and December 31, 2021 (Predecessor), respectively.

Selected information by reportable segment was as follows:

	Successor		Predecessor
	Period from June 17, 2022  through December 30, 2022		Period from January 1, 2022  through June 16, 2022		Year Ended December 31, 2021		Year Ended December 25, 2020
Net sales:
Specialty Brands (1)	$	682.4	$	587.1	$	1,547.0	$	2,059.6
Specialty Generics	357.3		287.5		661.8		689.8
Segment net sales	1,039.7		874.6		2,208.8		2,749.4
Medicaid lawsuit (1)	—		—		—		(536.0)
Net sales	$	1,039.7	$	874.6	$	2,208.8	$	2,213.4
Operating loss:
Specialty Brands	$	113.8	$	267.2	$	812.8	$	1,015.7
Specialty Generics (2)	(3.6)		65.3		107.9		206.4
Segment operating income	110.2		332.5		920.7		1,222.1
Unallocated amounts:
Corporate and unallocated expenses (3)	(39.3)		(48.2)		(129.6)		(166.1)
Depreciation and amortization	(347.5)		(321.8)		(675.8)		(885.2)
Share-based compensation	(1.4)		(1.7)		(10.2)		(25.3)
Restructuring charges, net	(11.1)		(9.6)		(26.9)		(37.5)
Non-restructuring impairment charges	—		—		(154.9)		(63.5)
Separation costs (4)	(21.2)		(9.0)		(1.2)		(93.4)
R&D upfront payment (5)	—		—		—		(5.0)
Opioid-related litigation settlement gain (loss)	—		—		(125.0)		43.4
Medicaid lawsuit (1)	—		—		—		(641.1)
Bad debt expense - customer bankruptcy	(6.4)		—		—		—
Operating loss	$	(316.7)	$	(57.8)	$	(202.9)	$	(651.6)
Depreciation and amortization:
Specialty Brands	$	323.6	$	288.4	$	597.7	$	799.3
Specialty Generics	23.9		33.4		78.1		85.9
	$	347.5	$	321.8	$	675.8	$	885.2

(1)Specialty Brands net sales for fiscal 2020 (Predecessor) includes the prospective change to the Medicaid rebate calculation, which served to reduce Acthar Gel net sales by $40.4 million for the period from June 15, 2020 through December 25, 2020 (Predecessor).

(2)Includes $30.0 million of fresh-start inventory-related expense during the period from June 17, 2022 through December 30, 2022 (Successor) primarily driven by the Company's change in accounting estimate as disclosed in Note 1.

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

(4)Represents costs included in SG&A expenses, primarily related to expenses incurred related to the severance for the former CEO and certain former executives of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence from bankruptcy during the period from June 17, 2022 through December 30, 2022 (Successor). Costs incurred during the Predecessor periods include 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 were classified on a go-forward basis as reorganization items, net.

(5)Represents R&D expense incurred related to an upfront payment made to acquire product rights in Japan for Terlivaz during fiscal 2020.

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

	Successor		Predecessor
	Period from June 17, 2022  through December 30, 2022		Period from January 1, 2022  through June 16, 2022		Year Ended December 31, 2021		Year Ended December 25, 2020
Acthar Gel (1)	$	294.1	$	221.9	$	593.6	$	767.9
INOmax	173.9		165.8		448.5		574.1
Ofirmev	(0.3)		2.5		28.9		276.5
Therakos	130.5		109.6		266.5		238.6
Amitiza (2)	77.1		81.5		196.9		188.8
Other	7.1		5.8		12.6		13.7
Specialty Brands	682.4		587.1		1,547.0		2,059.6
Opioids	117.9		88.8		213.2		233.9
ADHD	28.4		17.5		37.4		48.3
Addiction treatment	35.0		30.0		68.3		68.9
Other	6.8		4.9		12.0		7.3
Generics	188.1		141.2		330.9		358.4
Controlled substances	47.0		37.6		93.4		98.3
APAP	111.4		96.5		215.9		213.0
Other	10.8		12.2		21.6		20.1
API	169.2		146.3		330.9		331.4
Specialty Generics	357.3		287.5		661.8		689.8
Segment net sales	1,039.7		874.6		2,208.8		2,749.4
Medicaid lawsuit	—		—		—		(536.0)
Net Sales	$	1,039.7	$	874.6	$	2,208.8	$	2,213.4

(1)Fiscal 2020 (Predecessor) includes the prospective change to the Medicaid rebate calculation of $40.4 million for the period from June 15, 2020 through December 25, 2020 (Predecessor).

(2)Amitiza net sales consist of both product and royalty net sales. Refer to Note 5 for further details on Amitiza's revenues.

Selected information by geographic area was as follows:

	Successor		Predecessor
	Period from June 17, 2022  through December 30, 2022		Period from January 1, 2022  through June 16, 2022		Year Ended December 31, 2021		Year Ended December 25, 2020
Net sales (1):
U.S.	$	928.3	$	784.2	$	1,991.8	$	2,465.5
Europe, Middle East and Africa	100.4		73.6		181.8		227.5
Other	11.0		16.8		35.2		56.4
Geographic area net sales	1,039.7		874.6		2,208.8		2,749.4
Medicaid lawsuit	—		—		—		(536.0)
Net Sales	$	1,039.7	$	874.6	$	2,208.8	$	2,213.4

(1)Net sales are attributed to regions based on the location of the entity that records the transaction, none of which relate to the country of Ireland.