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Income Taxes (Tables)

12 Months Ended

Dec. 30, 2022

Schedule of Components of Income from Continuing Operations before Income Taxes

The domestic and international components (1) of loss from continuing operations before income taxes 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
Domestic	$	(359.4)	$	(2,883.3)	$	(512.2)	$	(656.9)
International	(290.9)		2,072.0		(317.6)		(303.9)
Total	$	(650.3)	$	(811.3)	$	(829.8)	$	(960.8)

(1) Domestic reflects Ireland.

Schedule of Significant Components of Income Taxes Related to Continuing Operations

Significant components (1) of income taxes related to continuing operations are 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
Current:
Domestic	$	(32.8)	$	33.7	$	(33.7)	$	0.1
International	5.7		(57.6)		(12.7)		(375.4)
Current income tax (benefit) provision	(27.1)		(23.9)		(46.4)		(375.3)
Deferred:
Domestic	(44.6)		(82.3)		(59.5)		102.2
International	19.7		(391.1)		(0.4)		282.0
Deferred income tax (benefit) provision	(24.9)		(473.4)		(59.9)		384.2
Total	$	(52.0)	$	(497.3)	$	(106.3)	$	8.9

(1) Domestic reflects Ireland.

Schedule of Reconciliation of Income Taxes at Statutory Rate and Tax Provision

The reconciliation between domestic income taxes at the statutory rate and the Company's provision for income taxes on continuing operations is 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
Benefit for income taxes at domestic statutory income tax rate (1)	$	(81.3)	$	(101.4)	$	(103.7)	$	(120.1)
Adjustments to reconcile to income tax provision:
Rate difference between domestic and international jurisdictions	(4.7)		226.5		(224.9)		(315.3)
Adjustments to accrued income tax liabilities and uncertain tax positions (2)	—		—		(9.7)		16.7


Credits, principally research and orphan drug	—		(0.9)		(4.7)		(11.2)

Permanently nondeductible and nontaxable items (3)	3.1		(1.7)		9.8		2.8
Emergence	—		(31.6)		—		—
Withholding tax on Swiss distribution	4.7		—		—		—
U.S. Tax Reform (4)	—		—		—		(281.5)
Legal entity reorganization (5)	—		—		—		82.0
Separation costs	—		—		—		8.4
Reorganization items, net	1.7		15.7		36.9		8.8
Other	(1.4)		(3.1)		0.3		0.1
Valuation allowances (6)	25.9		(600.8)		189.7		618.2
(Benefit) provision for income taxes	$	(52.0)	$	(497.3)	$	(106.3)	$	8.9

(1)The statutory tax rate reflects the Irish statutory tax rate of 12.5%.

(2)Includes interest and penalties on accrued income tax liabilities and uncertain tax positions.

(3)For fiscal 2021 (Predecessor), the permanently nondeductible and nontaxable item were primarily driven by the opioid-related litigation settlement loss.

(4)For fiscal 2020 (Predecessor), the Company recognized a tax benefit as a result of the CARES Act. Associated unrecognized tax benefit and valuation allowance are netted within this line.

(5)Associated unrecognized tax benefit and valuation allowance are netted within this line.

(6)Fiscal 2020 (Predecessor) includes a tax expense of $204.9 million for an increase to the valuation allowance on certain net deferred tax assets that were no longer more likely than not realizable due to the Company's former substantial doubt about its ability to continue as a going concern. Additional valuation allowance impacts are netted within other line items, as referenced in the associated footnotes.

Schedule of Unrecognized Tax Benefit Activity

The following table summarizes the activity related to the Company's unrecognized tax benefits, excluding interest:


	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
Balance at beginning of period	$	24.8	$	333.5	$	349.0	$	398.6
Additions related to current year tax positions	—		—		—		71.1
Additions related to prior period tax positions	—		—		9.3		9.8
Reductions related to prior period tax positions	—		(306.1)		(2.8)		(14.2)

Settlements	—		(2.6)		(0.2)		(80.3)
Lapse of statutes of limitations	—		—		(21.8)		(36.0)
Balance at end of period	$	24.8	$	24.8	$	333.5	$	349.0

Schedule of Unrecongized Tax Benefits Balance Sheet Location

Unrecognized tax benefits, excluding interest, were reported in the following consolidated balance sheet captions in the amounts shown:


	Successor		Predecessor
	December 30, 2022		December 31, 2021
Other assets (1)	$	—	$	255.7
Deferred income tax asset	9.4		—
Other income tax liabilities	15.4		64.1
Deferred income tax liability	—		13.7
	$	24.8	$	333.5

Schedule of Income Taxes Payable

Income taxes payable, including uncertain tax positions and related interest accruals, was reported in the following consolidated balance sheet captions in the amounts shown:


	Successor		Predecessor
	December 30, 2022		December 31, 2021
Accrued and other current liabilities	$	3.6	$	1.7
Other income tax liabilities	18.2		83.2
	$	21.8	$	84.9

Schedule of Income Tax Receivables and Other Assets

Tax receivables were included in the following consolidated balance sheet captions in the amounts shown:


	Successor		Predecessor
	December 30, 2022		December 31, 2021
Other assets	$	—	$	141.3
Prepaid expenses and other current assets	179.5		36.5
	$	179.5	$	177.8

Schedule of Deferred Taxes Activity

The components of the net deferred tax asset (liability) at the end of each fiscal year were as follows:


	Successor		Predecessor
	December 30, 2022		December 31, 2021
Deferred tax assets:


Tax loss and credit carryforward	$	3,646.0	$	4,147.5
Capital tax loss carryforward and related assets	1,412.6		1,605.0
Intangible assets	278.4		—
Opioid-Related Litigation Settlement liability	111.7		294.7
Excess interest	84.0		159.5
Other	159.8		292.2
	5,692.5		6,498.9
Deferred tax liabilities:

Intangible assets	—		(108.5)

Investment in partnership	(67.4)		(67.1)
Other	(157.0)		—
	(224.4)		(175.6)
Net deferred tax asset before valuation allowances	5,468.1		6,323.3
Valuation allowances	(4,992.9)		(6,344.2)
Net deferred tax asset (liability)	$	475.2	$	(20.9)

Schedule of Deferred Tax Assets and Liabilities on Balance Sheet

Deferred taxes were included in the following consolidated balance sheet captions in the amounts shown:


	Successor		Predecessor
	December 30, 2022		December 31, 2021
Deferred income tax asset	$	475.5	$	—
Deferred income tax liability	(0.3)		(20.9)
Net deferred tax asset (liability)	$	475.2	$	(20.9)