Segment Data

9 Months Ended

Sep. 27, 2024

Segment Reporting [Abstract]

Segment Data

15. 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 September 27, 2024		Three Months Ended September 29, 2023
Net sales:
Specialty Brands	$	286.0	$	286.2
Specialty Generics	219.5		210.8
Net sales	$	505.5	$	497.0
Operating income (loss):
Specialty Brands	$	51.6	$	87.6
Specialty Generics	52.0		64.0
Segment operating income	103.6		151.6
Unallocated amounts:
Corporate and unallocated expenses (1)	(27.1)		(16.3)
Depreciation and amortization	(26.3)		(137.0)
Share-based compensation	1.5		(2.4)
Restructuring charges, net	(0.1)		0.1
Non-restructuring impairment charges	—		(135.9)
Liabilities management and separation costs (2)	(15.2)		(142.1)
Operating income (loss)	36.4		(282.0)
Interest expense	(59.0)		(133.1)
Interest income	7.4		3.4
Other (expense) income, net	(3.8)		9.1
Reorganization items, net (3)	—		(1,311.5)
Loss from continuing operations before income taxes	$	(19.0)	$	(1,714.1)

(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 explored potential sales of non-core assets to enable further deleveraging post-emergence from the 2023 Bankruptcy Proceedings and professional fees incurred by the Company (including where the Company are responsible for the fees of third parties, including pursuant to the forbearance agreements related to certain of the Company’s former debt obligations) 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
	Nine Months Ended September 27, 2024		Nine Months Ended September 29, 2023
Net sales:
Specialty Brands	$	817.8	$	818.3
Specialty Generics	669.8		578.3
Net sales	$	1,487.6	$	1,396.6
Operating income (loss):
Specialty Brands	$	97.2	$	181.6
Specialty Generics	152.6		131.9
Segment operating income	249.8		313.5
Unallocated amounts:
Corporate and unallocated expenses (1)	(70.1)		(29.7)
Depreciation and amortization	(93.5)		(423.2)
Share-based compensation	(3.8)		(7.7)
Restructuring charges, net	(10.5)		(0.9)
Non-restructuring impairment charges	—		(135.9)
Liabilities management and separation costs (2)	(32.2)		(157.3)
Recovery of bad debt - customer bankruptcy	6.4		—
Operating income (loss)	46.1		(441.2)
Interest expense	(177.5)		(457.7)
Interest income	20.2		12.8
Other expense, net	(3.6)		(6.7)
Reorganization items, net (3)	—		(1,321.1)
Loss from continuing operations before income taxes	$	(114.8)	$	(2,213.9)

(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 incurred by the Company (including where the Company are responsible for the fees of third parties, including pursuant to the forbearance agreements related to certain of the Company’s former debt obligations) 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 September 27, 2024		Three Months Ended September 29, 2023
Acthar Gel	$	126.4	$	122.1
INOmax	64.0		72.9
Therakos	67.6		66.0
Amitiza	18.8		18.3
Terlivaz	7.3		4.4
Other	1.9		2.5
Specialty Brands	286.0		286.2
Opioids	85.9		65.9
ADHD	41.3		41.5
Addiction treatment	18.1		15.1
Other	0.9		3.4
Generics	146.2		125.9
Controlled substances	27.2		22.0
APAP	40.0		57.4
Other	6.1		5.5
API	73.3		84.9
Specialty Generics	219.5		210.8
Net sales	$	505.5	$	497.0