Segment Data

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Data

13. 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:

	Successor		Predecessor
	Three Months Ended March 31, 2023		Three Months Ended April 1, 2022
Net sales:
Specialty Brands	$	252.0	$	339.4
Specialty Generics	172.6		151.5
Net sales	$	424.6	$	490.9
Operating income (loss):
Specialty Brands	$	32.4	$	164.8
Specialty Generics	32.8		34.4
Segment operating income	65.2		199.2
Unallocated amounts:
Corporate and unallocated expenses (1)	(14.0)		(32.8)
Depreciation and amortization	(145.1)		(177.2)
Share-based compensation	(2.6)		(1.2)
Restructuring charges, net	(1.2)		(6.8)
Separation costs (2)	(4.9)		(2.0)
Operating loss	$	(102.6)	$	(20.8)

(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:

	Successor		Predecessor
	Three Months Ended March 31, 2023		Three Months Ended April 1, 2022
Acthar Gel	$	82.0	$	127.7
INOmax	82.7		99.0
Therakos	58.7		59.9
Amitiza (1)	24.5		47.7
Terlivaz	2.2		—
Other	1.9		5.1
Specialty Brands	252.0		339.4
Opioids	62.2		50.0
ADHD	22.4		10.8
Addiction treatment	15.6		15.9
Other	1.8		2.8
Generics	102.0		79.5
Controlled substances	18.5		20.4
APAP	46.4		46.3
Other	5.7		5.3
API	70.6		72.0
Specialty Generics	172.6		151.5
Net sales	$	424.6	$	490.9

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