Segment Data

6 Months Ended

Jun. 30, 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 liabilities management 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 June 30, 2023		Period from June 17, 2022 through July 1, 2022		Period from April 2, 2022 through June 16, 2022
Net sales:
Specialty Brands	$	280.1	$	58.2	$	247.7
Specialty Generics	194.9		26.8		136.0
Net sales	$	475.0	$	85.0	$	383.7
Operating income (loss):
Specialty Brands	$	61.6	$	4.5	$	102.4
Specialty Generics	35.1		0.3		30.9
Segment operating income	96.7		4.8		133.3
Unallocated amounts:
Corporate and unallocated expenses (1)	0.6		(0.9)		(15.4)
Depreciation and amortization	(141.1)		(48.4)		(144.6)
Share-based compensation	(2.7)		—		(0.5)
Restructuring charges, net	0.2		(1.1)		(2.8)
Liabilities management and separation costs (2)	(10.3)		(9.2)		(7.0)
Operating loss	$	(56.6)	$	(54.8)	$	(37.0)

(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 ("SG&A") expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO 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.

.

	Successor				Predecessor
	Six Months Ended June 30, 2023		Period from June 17, 2022 through July 1, 2022		Period from January 1, 2022  through June 16, 2022
Net sales:
Specialty Brands	$	532.1	$	58.2	$	587.1
Specialty Generics	367.5		26.8		287.5
Net sales	$	899.6	$	85.0	$	874.6
Operating income (loss):
Specialty Brands	$	94.0	$	4.5	$	267.2
Specialty Generics	67.9		0.3		65.3
Segment operating income	161.9		4.8		332.5
Unallocated amounts:
Corporate and unallocated expenses (1)	(13.4)		(0.9)		(48.2)
Depreciation and amortization	(286.2)		(48.4)		(321.8)
Share-based compensation	(5.3)		—		(1.7)
Restructuring charges, net	(1.0)		(1.1)		(9.6)
Liabilities management and separation costs (2)	(15.2)		(9.2)		(9.0)
Operating loss	$	(159.2)	$	(54.8)	$	(57.8)

(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 SG&A expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO 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.

.

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

	Successor				Predecessor
	Three Months Ended June 30, 2023		Period from June 17, 2022 through July 1, 2022		Period from April 2, 2022 through June 16, 2022
Acthar Gel	$	116.8	$	27.5	$	94.2
INOmax	76.9		13.5		66.8
Therakos	62.9		10.2		49.7
Amitiza (1)	18.6		5.8		33.8
Terlivaz	3.4		—		—
Other	1.5		1.2		3.2
Specialty Brands	280.1		58.2		247.7
Opioids	72.1		8.7		38.8
ADHD	19.0		1.8		6.8
Addiction treatment	16.1		2.5		14.1
Other	2.4		0.1		2.0
Generics	109.6		13.1		61.7
Controlled substances	20.9		1.7		17.2
APAP	59.8		11.3		50.2
Other	4.6		0.7		6.9
API	85.3		13.7		74.3
Specialty Generics	194.9		26.8		136.0
Net sales	$	475.0	$	85.0	$	383.7

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

	Successor				Predecessor
	Six Months Ended June 30, 2023		Period from June 17, 2022 through July 1, 2022		Period from January 1, 2022  through June 16, 2022
Acthar Gel	$	198.8	$	27.5	$	221.9
INOmax	159.6		13.5		165.8
Therakos	121.6		10.2		109.6
Amitiza (1)	43.1		5.8		81.5
Terlivaz	5.6		—		—
Other	3.4		1.2		8.3
Specialty Brands	532.1		58.2		587.1
Opioids	134.3		8.7		88.8
ADHD	41.4		1.8		17.5
Addiction treatment	31.7		2.5		30.0
Other	4.2		0.1		4.9
Generics	211.6		13.1		141.2
Controlled substances	39.4		1.7		37.6
APAP	106.2		11.3		96.5
Other	10.3		0.7		12.2
API	155.9		13.7		146.3
Specialty Generics	367.5		26.8		287.5
Net sales	$	899.6	$	85.0	$	874.6