Segment Data

6 Months Ended

Jun. 28, 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 June 28, 2024		Three Months Ended June 30, 2023
Net sales:
Specialty Brands	$	274.5	$	280.1
Specialty Generics	239.8		194.9
Net sales	$	514.3	$	475.0
Operating income (loss):
Specialty Brands	$	15.7	$	61.6
Specialty Generics	62.4		35.1
Segment operating income	78.1		96.7
Unallocated amounts:
Corporate and unallocated expenses (1)	(11.1)		0.6
Depreciation and amortization	(32.1)		(141.1)
Share-based compensation	(3.4)		(2.7)
Restructuring charges, net	(0.2)		0.2
Liabilities management and separation costs (2)	(10.3)		(10.3)
Recovery of bad debt - customer bankruptcy	6.4		—
Operating income (loss)	27.4		(56.6)
Interest expense	(59.4)		(162.6)
Interest income	6.0		4.7
Other expense, net	(3.5)		(1.2)
Reorganization items, net (3)	—		(4.0)
Loss from continuing operations before income taxes	$	(29.5)	$	(219.7)

(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 explored potential sales of non-core assets to enable further deleveraging post-emergence from the 2023 and professional fees and costs incurred in connection with the Company’s evaluation of its financial situation and related discussions with its stakeholders prior to the commencement of the 2023 Chapter 11 Cases. As of the 2023 Petition Date, professional fees directly related to the 2023 Chapter 11 Cases that were previously reflected as liabilities management and separation costs were classified as reorganization items, net.

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

	Successor		Predecessor
	Six Months Ended June 28, 2024		Six Months Ended June 30, 2023
Net sales:
Specialty Brands	$	531.8	$	532.1
Specialty Generics	450.3		367.5
Net sales	$	982.1	$	899.6
Operating income (loss):
Specialty Brands	$	45.6	$	94.0
Specialty Generics	100.6		67.9
Segment operating income	146.2		161.9
Unallocated amounts:
Corporate and unallocated expenses (1)	(43.0)		(13.4)
Depreciation and amortization	(67.2)		(286.2)
Share-based compensation	(5.3)		(5.3)
Restructuring charges, net	(10.4)		(1.0)
Liabilities management and separation costs (2)	(17.0)		(15.2)
Recovery of bad debt - customer bankruptcy	6.4		—
Operating income (loss)	9.7		(159.2)
Interest expense	(118.5)		(324.6)
Interest income	12.8		9.4
Other expense, net	0.2		(15.8)
Reorganization items, net (3)	—		(9.6)
Loss from continuing operations before income taxes	$	(95.8)	$	(499.8)

(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, primarily related to professional fees and costs incurred as the Company explored potential sales of non-core assets to enable further deleveraging post-emergence from the 2023 and 2020 Bankruptcy Proceedings and professional fees and costs incurred in connection with the Company’s evaluation of its financial situation and related discussions with its stakeholders prior to the commencement of the 2023 Chapter 11 Cases. As of the 2023 Petition Date, professional fees directly related to the 2023 Chapter 11 Cases that were previously reflected as liabilities management and separation costs were classified as reorganization items, net.

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

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

	Successor		Predecessor
	Three Months Ended June 28, 2024		Three Months Ended June 30, 2023
Acthar Gel	$	117.7	$	116.8
INOmax	66.4		76.9
Therakos	67.2		62.9
Amitiza	15.3		18.6
Terlivaz	5.3		3.4
Other	2.6		1.5
Specialty Brands	274.5		280.1
Opioids	95.2		72.1
ADHD	41.8		19.0
Addiction treatment	21.0		16.1
Other	3.6		2.4
Generics	161.6		109.6
Controlled substances	26.4		20.9
APAP	47.3		59.8
Other	4.5		4.6
API	78.2		85.3
Specialty Generics	239.8		194.9
Net sales	$	514.3	$	475.0