Segment and Geographical Data

12 Months Ended

Dec. 29, 2023

Segment Reporting [Abstract]

Segment and Geographical Data

20. 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 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.

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 $3,733.6 million and $6,013.8 million as of December 29, 2023 (Successor) and December 30, 2022 (Predecessor), respectively.

Selected information by reportable segment was as follows:

	Successor		Predecessor
	Period from November 15, 2023 through December 29, 2023		Period from December 31, 2022 through November 14, 2023		Period from June 17, 2022 through December 30, 2022		Period from January 1, 2022 through June 16, 2022		Year Ended December 31, 2021
Net sales:
Specialty Brands	$	139.8	$	949.2	$	682.4	$	587.1	$	1,547.0
Specialty Generics	103.2		673.7		357.3		287.5		661.8
Net sales	$	243.0	$	1,622.9	$	1,039.7	$	874.6	$	2,208.8
Operating loss:
Specialty Brands	$	9.0	$	209.9	$	113.8	$	267.2	$	812.8
Specialty Generics (1)	5.8		156.2		(3.6)		65.3		107.9
Segment operating income	14.8		366.1		110.2		332.5		920.7
Unallocated amounts:
Corporate and unallocated expenses (2)	(4.0)		(45.8)		(39.3)		(48.2)		(129.6)
Depreciation and amortization	(25.8)		(490.3)		(347.5)		(321.8)		(675.8)
Share-based compensation	—		(8.9)		(1.4)		(1.7)		(10.2)
Restructuring charges, net	—		(0.9)		(11.1)		(9.6)		(26.9)
Non-restructuring impairment charges (3)	(3.8)		(179.9)		—		—		(154.9)
Liabilities management and separation costs (4)	(1.4)		(157.7)		(21.2)		(9.0)		(1.2)
Opioid-Related Litigation Settlement loss	—		—		—		—		(125.0)
Bad debt expense - customer bankruptcy	—		—		(6.4)		—		—
Operating loss	$	(20.2)	$	(517.4)	$	(316.7)	$	(57.8)	$	(202.9)
Depreciation and amortization:
Specialty Brands	$	15.3	$	455.3	$	323.6	$	288.4	$	597.7
Specialty Generics	10.5		35.0		23.9		33.4		78.1
	$	25.8	$	490.3	$	347.5	$	321.8	$	675.8

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

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

(3)Includes $135.9 million and $154.9 million of impairment charges on intangible assets during the period December 31, 2022 through November 14, 2023 (Predecessor) and fiscal 2021 (Predecessor), respectively, as further described in Note 12, a $44.0 million Acthar Gel inventory write-down to net realizable value during the period December 31, 2022 through November 14, 2023 (Predecessor), and $3.8 million of impairment charges on StrataGraft long-lived assets during the period November 15, 2023 through December 29, 2023 (Successor).

(4)Represents costs 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 evaluation of its financial situation and related discussions with its stakeholders prior to the commencement of the 2023 Bankruptcy Proceedings, expenses incurred related to the severance of certain former executives of the Predecessor as a result of the 2020 Bankruptcy Proceedings, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence. As of the 2023 Petition Date and 2020 Petition Date, professional fees directly related to the 2023 Bankruptcy Proceedings and 2020 Bankruptcy Proceedings, respectively, that were previously reflected as liabilities management and separation costs were classified on a go-forward basis as reorganization items, net until the 2023 Effective Date and the 2020 Effective Date, respectively.

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

	Successor		Predecessor
	Period from November 15, 2023 through December 29, 2023		Period from December 31, 2022 through November 14, 2023		Period from June 17, 2022 through December 30, 2022		Period from January 1, 2022 through June 16, 2022		Year Ended December 31, 2021
Acthar Gel	$	57.0	$	368.3	$	294.1	$	221.9	$	593.6
INOmax	35.3		267.9		173.9		165.8		448.5
Therakos	39.1		220.0		130.5		109.6		266.5
Amitiza (1)	5.0		72.0		77.1		81.5		196.9
Terlivaz	2.3		13.3		1.2		—		—
Other	1.1		7.7		5.6		8.3		41.5
Specialty Brands	139.8		949.2		682.4		587.1		1,547.0
Opioids	31.6		230.7		117.9		88.8		213.2
ADHD	13.5		101.4		28.4		17.5		37.4
Addiction treatment	10.5		55.6		35.0		30.0		68.3
Other	1.6		8.2		6.8		4.9		12.0
Generics	57.2		395.9		188.1		141.2		330.9
Controlled substances	11.6		75.5		47.0		37.6		93.4
APAP	32.5		184.8		111.4		96.5		215.9
Other	1.9		17.5		10.8		12.2		21.6
API	46.0		277.8		169.2		146.3		330.9
Specialty Generics	103.2		673.7		357.3		287.5		661.8
Net Sales	$	243.0	$	1,622.9	$	1,039.7	$	874.6	$	2,208.8

(1)Amitiza net sales consist of both product and royalty net sales.

Selected information by geographic area was as follows:

	Successor		Predecessor
	Period from November 15, 2023 through December 29, 2023		Period from December 31, 2022 through November 14, 2023		Period from June 17, 2022 through December 30, 2022		Period from January 1, 2022 through June 16, 2022		Year Ended December 31, 2021
Net sales (1):
U.S.	$	212.8	$	1,448.9	$	928.3	$	784.2	$	1,991.8
Europe, Middle East and Africa	28.8		157.1		100.4		73.6		181.8
Other	1.4		16.9		11.0		16.8		35.2
Net Sales	$	243.0	$	1,622.9	$	1,039.7	$	874.6	$	2,208.8

(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.