Segment and Geographical Data

12 Months Ended

Dec. 27, 2024

Segment Reporting [Abstract]

Segment and Geographical Data

21. 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 specialty generic drugs and API(s).

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer and Director. The CODM measures and evaluates the Company's operating segments based on segment net sales by product type and segment operating income. The CODM uses this information to evaluate the Company’s businesses operations and allocate resources. The CODM considers budget-to-actual variances of segment net sales and segment operating income on a quarterly basis to assess performance and make decisions about allocating resources to the segments.

Certain amounts that the Company considers to be non-recurring or non-operational are excluded from segment operating income because the CODM evaluates the operating results of the segments excluding such items. These items may include, but are not limited to corporate and unallocated expenses 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.

The CODM manages assets on a total company basis, not by operating segment. The CODM is not regularly provided any asset information by operating segment and, accordingly, the Company does not report asset information by operating segment. Total assets were approximately $3,302.6 million and $3,733.6 million as of December 27, 2024 (Successor) and December 29, 2023 (Successor), respectively.

Selected information by reportable segment was as follows:

	Successor
	Year Ended December 27, 2024
	Specialty Brands		Specialty Generics		Total
Net sales	$	1,083.4	$	896.3	$	1,979.7
Cost of sales (1)	529.0		607.9		1,136.9
Selling, general and administrative expenses	266.1		91.7		357.8
Research and development expenses	49.4		26.4		75.8
Restructuring charges, net	10.5		—		10.5
Segment operating income	$	228.4	$	170.3	398.7
Corporate and unallocated expenses - Cost of sales (3)					15.7
Corporate and unallocated expenses - Selling, general and administrative expenses (3)					209.0
Corporate and unallocated expenses - Research and development expenses (3)					39.9
Liabilities management and separation costs (4)					43.9
Operating income					90.2
Interest expense					(228.3)
Interest income					27.0
Gain on divestiture					754.4
Loss on debt extinguishment, net					(19.7)
Other expense, net					(9.1)
Income from continuing operations before income taxes					$	614.5
Depreciation and amortization	$	72.8	$	43.2

	Successor
	Period from November 15, 2023 through December 29, 2023
	Specialty Brands		Specialty Generics		Total
Net sales	$	139.8	$	103.2	$	243.0
Cost of sales (1)	83.6		94.1		177.7
Selling, general and administrative expenses	35.2		9.8		45.0
Research and development expenses	6.8		3.9		10.7
Non-restructuring impairment charges (2)	2.6		—		2.6
Segment operating income (loss)	$	11.6	$	(4.6)	$	7.0
Corporate and unallocated expenses - Cost of sales (3)					1.4
Corporate and unallocated expenses - Selling, general and administrative expenses (3)					19.2
Corporate and unallocated expenses - Research and development expenses (3)					5.2
Liabilities management and separation costs (4)					1.4
Operating loss					(20.2)
Interest expense					(28.3)
Interest income					0.9
Other income, net					5.4
Reorganization items, net					(4.0)
Loss from continuing operations before income taxes					$	(46.2)
Depreciation and amortization	$	15.2	$	10.4

	Predecessor
	Period from December 31, 2022 through November 14, 2023
	Specialty Brands		Specialty Generics		Total
Net sales	$	949.2	$	673.7	$	1,622.9
Cost of sales (1)	836.1		452.6		1,288.7
Selling, general and administrative expenses	214.6		75.2		289.8
Research and development expenses	40.4		22.5		62.9
Non-restructuring impairment charges (2)	50.1		85.8		135.9
Segment operating (loss) income	$	(192.0)	$	37.6	(154.4)
Corporate and unallocated expenses - Cost of sales (3)					11.8
Corporate and unallocated expenses - Selling, general and administrative expenses (3)					158.4
Corporate and unallocated expenses - Research and development expenses (3)					34.2
Corporate and unallocated expenses - Restructuring charges, net (3)					0.9
Liabilities management and separation costs (4)					157.7
Operating loss					(517.4)
Interest expense					(507.2)
Interest income					14.7
Other expense, net					(6.5)
Reorganization items, net					(892.7)
Loss from continuing operations before income taxes					$	(1,909.1)
Depreciation and amortization	$	451.6	$	32.4

	Predecessor
	Period from June 17, 2022 through December 30, 2022
	Specialty Brands		Specialty Generics		Total
Net sales	$	682.4	$	357.3	$	1,039.7
Cost of sales (1)	662.8		326.9		989.7
Selling, general and administrative expenses	140.4		42.6		183.0
Research and development expenses	31.5		12.6		44.1
Segment operating loss	$	(152.3)	$	(24.8)	(177.1)
Corporate and unallocated expenses - Cost of sales (3)					1.3
Corporate and unallocated expenses - Selling, general and administrative expenses (3)					85.9
Corporate and unallocated expenses - Research and development expenses (3)					20.1
Corporate and unallocated expenses - Restructuring charges, net (3)					11.1
Liabilities management and separation costs (4)					21.2
Operating loss					(316.7)
Interest expense					(324.3)
Interest income					3.9
Other income, net					10.0
Reorganization items, net					(23.2)
Loss from continuing operations before income taxes					$	(650.3)
Depreciation and amortization	$	320.6	$	21.1

	Predecessor
	Period from January 1, 2022 through June 16, 2022
	Specialty Brands		Specialty Generics		Total
Net sales	$	587.1	$	287.5	$	874.6
Cost of sales (1)	371.9		204.9		576.8
Selling, general and administrative expenses	137.7		35.0		172.7
Research and development expenses	33.9		12.1		46.0
Restructuring charges, net	—		3.5		3.5
Segment operating income	$	43.6	$	32.0	75.6
Corporate and unallocated expenses - Cost of sales (3)					5.2
Corporate and unallocated expenses - Selling, general and administrative expenses (3)					93.6
Corporate and unallocated expenses - Research and development expenses (3)					19.5
Corporate and unallocated expenses - Restructuring charges, net (3)					6.1
Liabilities management and separation costs (4)					9.0
Operating loss					(57.8)
Interest expense					(108.6)
Interest income					0.6
Other expense, net					(14.6)
Reorganization items, net					(630.9)
Loss from continuing operations before income taxes					$	(811.3)
Depreciation and amortization	$	286.9	$	29.7

(1)Includes $44.0 million of Acthar Gel inventory write-down to net realizable value within the Specialty Brands segment during the period December 31, 2022 through November 14, 2023 (Predecessor) and $30.0 million of fresh-start inventory-related expense within the Specialty Generics segment during the period June 17, 2022 through December 30, 2022 (Predecessor) primarily driven by the Company’s change in accounting estimate

(2)Includes $2.6 million and $50.1 million of impairment charges on StrataGraft long-lived assets and intangibles assets, respectively, within the Specialty Brands segment during the period November 15, 2023 through December 29, 2023 (Successor) and the period December 31, 2022 through November 14, 2023 (Predecessor). Also includes $85.8 million of impairment charges on intangible assets within the Specialty Generics segment during the period December 31, 2022 through November 14, 2023 (Predecessor).

(3)Includes certain compensation, information technology, legal, environmental and other costs not charged to the Company’s reportable segments.

(4)Represents costs primarily related to professional fees 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, and expenses incurred related to the severance of certain former executives of the Predecessor as a result of the 2020 Bankruptcy Proceedings. 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 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
	Year Ended December 27, 2024		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
Acthar Gel	$	485.7	$	57.0	$	368.3	$	294.1	$	221.9
INOmax	261.4		35.3		267.9		173.9		165.8
Therakos	241.6		39.1		220.0		130.5		109.6
Amitiza (1)	62.9		5.0		72.0		77.1		81.5
Terlivaz	24.7		2.3		13.3		1.2		—
Other	7.1		1.1		7.7		5.6		8.3
Specialty Brands	1,083.4		139.8		949.2		682.4		587.1
Opioids	349.9		31.6		230.7		117.9		88.8
ADHD	166.2		13.5		101.4		28.4		17.5
Addiction treatment	75.3		10.5		55.6		35.0		30.0
Other	8.1		1.6		8.2		6.8		4.9
Generics	599.5		57.2		395.9		188.1		141.2
Controlled substances	98.7		11.6		75.5		47.0		37.6
APAP	177.8		32.5		184.8		111.4		96.5
Other	20.3		1.9		17.5		10.8		12.2
API	296.8		46.0		277.8		169.2		146.3
Specialty Generics	896.3		103.2		673.7		357.3		287.5
Net Sales	$	1,979.7	$	243.0	$	1,622.9	$	1,039.7	$	874.6

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

Selected information by geographic area was as follows:

	Successor				Predecessor
	Year Ended December 27, 2024		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
Net sales (1):
U.S.	$	1,802.6	$	212.8	$	1,448.9	$	928.3	$	784.2
Europe, Middle East and Africa	162.1		28.8		157.1		100.4		73.6
Other	15.0		1.4		16.9		11.0		16.8
Net Sales	$	1,979.7	$	243.0	$	1,622.9	$	1,039.7	$	874.6

(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.