Segment Data

3 Months Ended

Mar. 29, 2024

Segment Reporting [Abstract]

Segment Data

14. 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 March 29, 2024		Three Months Ended March 31, 2023
Net sales:
Specialty Brands	$	257.3	$	252.0
Specialty Generics	210.5		172.6
Net sales	$	467.8	$	424.6
Operating income (loss):
Specialty Brands	$	29.9	$	32.4
Specialty Generics	38.2		32.8
Segment operating income	68.1		65.2
Unallocated amounts:
Corporate and unallocated expenses (1)	(31.9)		(14.0)
Depreciation and amortization	(35.1)		(145.1)
Share-based compensation	(1.9)		(2.6)
Restructuring charges, net	(10.2)		(1.2)
Liabilities management and separation costs (2)	(6.7)		(4.9)
Operating loss	(17.7)		(102.6)
Interest expense	(59.1)		(162.0)
Interest income	6.8		4.7
Other income (expense), net	3.7		(14.6)
Reorganization items, net (3)	—		(5.6)
Loss from continuing operations before income taxes	$	(66.3)	$	(280.1)

(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, primarily related to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence from the 2023 Bankruptcy Proceedings and the Company’s emergence from the Chapter 11 cases and Irish examinership proceedings in 2022.

(3)As of December 30, 2023, professional fees directly related to the 2023 Bankruptcy Proceedings that were previously reflected as reorganization items, net, are being classified on a go-forward basis within SG&A expenses.

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

	Successor		Predecessor
	Three Months Ended March 29, 2024		Three Months Ended March 31, 2023
Acthar Gel	$	102.8	$	82.0
INOmax	70.2		82.7
Therakos	58.2		58.7
Amitiza	19.4		24.5
Terlivaz	6.0		2.2
Other	0.7		1.9
Specialty Brands	257.3		252.0
Opioids	81.9		62.2
ADHD	31.7		22.4
Addiction treatment	15.4		15.6
Other	1.5		1.8
Generics	130.5		102.0
Controlled substances	22.9		18.5
APAP	51.7		46.4
Other	5.4		5.7
API	80.0		70.6
Specialty Generics	210.5		172.6
Net sales	$	467.8	$	424.6