Goodwill and Intangible Assets

3 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

9. Intangible Assets

The gross carrying amount and accumulated amortization of intangible assets were comprised of the following at the end of each period:

	Successor
	September 29, 2023				December 30, 2022
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable:
Completed technology	$	3,010.4	$	700.1	$	3,041.2	$	318.7
Non-Amortizable:
In-process research and development	9.5				121.3

Generics IPR&D

During the three months ended September 29, 2023 (Successor), the U.S. Food and Drug Administration approved the abbreviated new drug application for certain of the Company's Specialty Generics in-process research and development ("IPR&D") assets. Upon approval, the Company transferred a total of $26.0 million of asset value from non-amortizable indefinite-lived IPR&D rights to amortizable, finite-lived completed technology with amortization commencing upon the first commercial shipment of the respective products.

Additionally, during the three months ended September 29, 2023 (Successor), the Company recognized a full impairment on certain other Specialty Generics IPR&D assets totaling $85.8 million. The Company has decided it will no longer pursue further development of the respective assets.

StrataGraft®

During the three months ended September 29, 2023 (Successor), due to lower anticipated cash flows expected from StrataGraft, the Company identified a triggering event with respect to the associated intangible asset within the Specialty Brands segment and assessed the recoverability of the definite-lived asset. The Company determined that the undiscounted cash flows related to the StrataGraft intangible asset were less than its net book value, which required the Company to record a full impairment charge.

The Company determined the fair value of the StrataGraft intangible asset using the income approach, a level three measurement technique. For purposes of determining fair value, the Company made various assumptions regarding estimated future cash flows, the discount rate and other factors in determining the fair value of the intangible asset. The Company's projections in relation to the StrataGraft intangible asset included long-term net sales and operating income at lower than historical levels. These changes in assumptions resulted in a fair value of the StrataGraft intangible asset that was less than its net book value. Therefore, the Company recorded a full impairment charge of $50.1 million.

Intangible asset amortization expense was as follows:

	Successor
	Three Months Ended September 29, 2023		Three Months Ended September 30, 2022
Amortization expense	$	125.6	$	136.6

	Successor				Predecessor
	Nine Months Ended September 29, 2023		Period from June 17, 2022 through September 30, 2022		Period from January 1, 2022  through June 16, 2022
Amortization expense	$	388.1	$	182.1	$	281.8

The estimated aggregate amortization expense on intangible assets owned by the Company is expected to be as follows:

	Successor
Remainder of Fiscal 2023	$	121.4
Fiscal 2024	446.1
Fiscal 2025	385.2
Fiscal 2026	337.6
Fiscal 2027	284.4