• | Second-quarter 2017 revenues of $876 million and reported $3.12 diluted (GAAP) loss per share from continuing operations |
• | Second-quarter 2017 Branded Specialty Products revenues increased 16 percent to $110 million |
• | Second-quarter 2017 Sterile Injectables revenues increased 27 percent to $161 million |
• | Second-quarter 2017 adjusted diluted earnings per share (EPS) from continuing operations increased 8 percent to $0.93 |
• | Second-quarter 2017 reported (GAAP) consolidated net loss of $1,397 million, including $775 million to increase the mesh product liability accrual primarily related to the resolution of virtually all known U.S. mesh product liability claims |
• | Second-quarter 2017 adjusted income from continuing operations increased 8 percent to $207 million |
• | Second-quarter 2017 adjusted EBITDA increased 11 percent to $388 million |
• | Company updates 2017 financial guidance to reflect the previously announced Somar divestiture, OPANA® ER withdrawal and manufacturing network restructuring |
• | Company reports $725 million of impairment charges relating primarily to market and competitive factors impacting certain products, its manufacturing network restructuring, Somar divestiture and the market withdrawal of OPANA® ER |
• | Revenues of $876 million, a 5 percent decrease compared to second-quarter 2016 revenues of $921 million. |
• | Reported net loss from continuing operations of $696 million compared to second-quarter 2016 reported net income from continuing operations of $390 million. |
• | Reported diluted loss per share from continuing operations of $3.12 compared to second-quarter 2016 reported diluted earnings per share from continuing operations of $1.75. |
• | Adjusted income from continuing operations of $207 million, an 8 percent increase compared to second-quarter 2016 adjusted income from continuing operations of $192 million. |
• | Adjusted diluted EPS from continuing operations of $0.93, an 8 percent increase compared to second-quarter 2016 adjusted diluted EPS from continuing operations of $0.86. |
• | Adjusted EBITDA of $388 million, an 11 percent increase compared to second-quarter 2016 adjusted EBITDA of $350 million. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
Total Revenues | $ | 875,731 | $ | 920,887 | (5 | )% | $ | 1,913,331 | $ | 1,884,426 | 2 | % | |||||||||
Reported (Loss) Income from Continuing Operations | $ | (696,020 | ) | $ | 389,812 | NM | $ | (861,443 | ) | $ | 301,049 | NM | |||||||||
Reported Diluted Weighted Average Shares | 223,158 | 222,863 | — | % | 223,086 | 223,021 | — | % | |||||||||||||
Reported Diluted (Loss) Income per Share from Continuing Operations | $ | (3.12 | ) | $ | 1.75 | NM | $ | (3.86 | ) | $ | 1.35 | NM | |||||||||
Adjusted Income from Continuing Operations | $ | 207,201 | $ | 192,341 | 8 | % | $ | 482,446 | $ | 433,072 | 11 | % | |||||||||
Adjusted Diluted Weighted Average Shares1 | 223,785 | 222,863 | — | % | 223,560 | 223,021 | — | % | |||||||||||||
Adjusted Diluted EPS from Continuing Operations | $ | 0.93 | $ | 0.86 | 8 | % | $ | 2.16 | $ | 1.94 | 11 | % |
(1) | Diluted per share data is computed based on weighted average shares outstanding and, if there is income from continuing operations during the period, the dilutive impact of share equivalents outstanding during the period. In the case of Adjusted Diluted Weighted Average Shares, Adjusted Income from Continuing Operations is used in determining whether to include such dilutive impact. |
• | Revenues of $563 million, virtually unchanged from second-quarter 2016, as decline in the Generics Base business was substantially offset by strong growth in Sterile Injectables and New Launches and Alternative Dosages. |
• | Sterile Injectables increased 27 percent compared to second-quarter 2016; this increase was driven primarily by VASOSTRICT® and ADRENALIN®. |
• | The Generics Base business decreased 34 percent compared to second-quarter 2016; this decrease primarily resulted from the impact on second-quarter 2017 related to 2016 competitive events and previously announced product discontinuances. |
• | Revenues of $245 million, a 15 percent decrease compared to second-quarter 2016; this decrease was primarily attributable to generic competition adversely impacting the Company's established products portfolio, including VOLTAREN® Gel, LIDODERM® and OPANA® ER , along with the divestiture of STENDRA®. |
• | Specialty Products increased 16 percent in second-quarter 2017 versus the same period in 2016, driven by strong performance from XIAFLEX®, SUPPRELIN® LA and AVEED®. Sales of XIAFLEX®, our flagship Branded product, increased 18 percent compared to second-quarter 2016; this increase was primarily attributable to strong volume growth. |
• | Total revenues to be between $3.38 billion to $3.53 billion; |
• | Reported diluted GAAP loss per share from continuing operations to be between $4.76 and $4.46; |
• | Adjusted diluted EPS from continuing operations to be between $3.35 to $3.65; and |
• | Adjusted EBITDA from continuing operations to be between $1.48 billion to $1.56 billion. |
• | Adjusted gross margin of approximately 62.5% to 63.5%; |
• | Adjusted operating expenses as a percentage of revenues of approximately 22.5%; |
• | Adjusted interest expense of approximately $490 million to $500 million; |
• | Adjusted effective tax rate of approximately 14.0%; and |
• | Adjusted diluted EPS from continuing operations assumes full-year adjusted diluted shares outstanding of approximately 224 million shares. |
• | $501 million of non-restructuring goodwill and intangible asset impairments related to its U.S. Generic and Branded Pharmaceuticals segments, which included the market withdrawal of OPANA® ER and $115 million of goodwill and other intangible assets related to the Company’s planned Somar sale. |
• | As part of its recently announced manufacturing network restructuring initiative, the Company will be ceasing operations and closing its manufacturing and distribution facilities in Huntsville, Alabama. The Company recorded an impairment charge of $90 million related to intangible assets and property, plant and equipment associated with the planned closure. |
Three Months Ended June 30, | Percent Growth | Six Months Ended June 30, | Percent Growth | ||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
U.S. Generic Pharmaceuticals: | |||||||||||||||||||||
U.S. Generics Base | $ | 218,935 | $ | 331,095 | (34 | )% | $ | 455,082 | $ | 678,524 | (33 | )% | |||||||||
Sterile Injectables | 160,597 | 126,245 | 27 | % | 311,946 | 249,934 | 25 | % | |||||||||||||
New Launches and Alternative Dosages | 183,780 | 108,018 | 70 | % | 518,267 | 220,290 | 135 | % | |||||||||||||
Total U.S. Generic Pharmaceuticals | $ | 563,312 | $ | 565,358 | — | % | $ | 1,285,295 | $ | 1,148,748 | 12 | % | |||||||||
U.S. Branded Pharmaceuticals: | |||||||||||||||||||||
Specialty Products: | |||||||||||||||||||||
XIAFLEX® | $ | 50,077 | $ | 42,419 | 18 | % | $ | 99,602 | $ | 86,464 | 15 | % | |||||||||
SUPPRELIN® LA | 23,649 | 21,211 | 11 | % | 42,830 | 38,463 | 11 | % | |||||||||||||
Other Specialty (1) | 36,745 | 31,973 | 15 | % | 72,773 | 64,942 | 12 | % | |||||||||||||
Total Specialty Products | $ | 110,471 | $ | 95,603 | 16 | % | $ | 215,205 | $ | 189,869 | 13 | % | |||||||||
Established Products: | |||||||||||||||||||||
OPANA® ER | $ | 31,582 | $ | 38,554 | (18 | )% | $ | 67,300 | $ | 83,224 | (19 | )% | |||||||||
PERCOCET® | 30,889 | 35,708 | (13 | )% | 61,834 | 69,301 | (11 | )% | |||||||||||||
VOLTAREN® Gel | 20,270 | 27,290 | (26 | )% | 34,544 | 63,037 | (45 | )% | |||||||||||||
LIDODERM® | 11,678 | 27,039 | (57 | )% | 24,854 | 46,751 | (47 | )% | |||||||||||||
Other Established (2) | 40,298 | 64,148 | (37 | )% | 91,610 | 144,973 | (37 | )% | |||||||||||||
Total Established Products | $ | 134,717 | $ | 192,739 | (30 | )% | $ | 280,142 | $ | 407,286 | (31 | )% | |||||||||
Total U.S. Branded Pharmaceuticals (3) | $ | 245,188 | $ | 288,342 | (15 | )% | $ | 495,347 | $ | 597,155 | (17 | )% | |||||||||
Total International Pharmaceuticals | $ | 67,231 | $ | 67,187 | — | % | $ | 132,689 | $ | 138,523 | (4 | )% | |||||||||
Total Revenues | $ | 875,731 | $ | 920,887 | (5 | )% | $ | 1,913,331 | $ | 1,884,426 | 2 | % |
(1) | Products included within Other Specialty include TESTOPEL®, NASCOBAL® Nasal Spray, and AVEED®. |
(2) | Products included within Other Established include, but are not limited to, TESTIM® and FORTESTA® Gel, including the authorized generic. |
(3) | Individual products presented above represent the top two performing products in each product category and/or any product having revenues in excess of $25 million during any quarterly period in 2017 or 2016. LIDODERM® is separately presented as its revenues exceeded $25 million in certain quarterly periods in 2016. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
TOTAL REVENUES | $ | 875,731 | $ | 920,887 | $ | 1,913,331 | $ | 1,884,426 | |||||||
COSTS AND EXPENSES: | |||||||||||||||
Cost of revenues | 539,401 | 632,218 | 1,208,363 | 1,320,923 | |||||||||||
Selling, general and administrative | 155,555 | 193,070 | 332,795 | 371,425 | |||||||||||
Research and development | 40,869 | 50,589 | 83,878 | 92,281 | |||||||||||
Litigation-related and other contingencies, net | (2,600 | ) | 5,259 | (1,664 | ) | 10,459 | |||||||||
Asset impairment charges | 725,044 | 39,951 | 929,006 | 169,576 | |||||||||||
Acquisition-related and integration items | 4,190 | 48,171 | 15,070 | 60,725 | |||||||||||
OPERATING LOSS FROM CONTINUING OPERATIONS | $ | (586,728 | ) | $ | (48,371 | ) | $ | (654,117 | ) | $ | (140,963 | ) | |||
INTEREST EXPENSE, NET | 121,747 | 111,919 | 233,746 | 228,712 | |||||||||||
LOSS ON EXTINGUISHMENT OF DEBT | 51,734 | — | 51,734 | — | |||||||||||
OTHER (INCOME) EXPENSE, NET | (6,709 | ) | 5,175 | (8,746 | ) | 3,268 | |||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | $ | (753,500 | ) | $ | (165,465 | ) | $ | (930,851 | ) | $ | (372,943 | ) | |||
INCOME TAX BENEFIT | (57,480 | ) | (555,277 | ) | (69,408 | ) | (673,992 | ) | |||||||
(LOSS) INCOME FROM CONTINUING OPERATIONS | $ | (696,020 | ) | $ | 389,812 | $ | (861,443 | ) | $ | 301,049 | |||||
DISCONTINUED OPERATIONS, NET OF TAX | (700,498 | ) | (46,216 | ) | (708,903 | ) | (91,324 | ) | |||||||
CONSOLIDATED NET (LOSS) INCOME | $ | (1,396,518 | ) | $ | 343,596 | $ | (1,570,346 | ) | $ | 209,725 | |||||
Less: Net income attributable to noncontrolling interests | — | 18 | — | 16 | |||||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO ENDO INTERNATIONAL PLC | $ | (1,396,518 | ) | $ | 343,578 | $ | (1,570,346 | ) | $ | 209,709 | |||||
NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO ENDO INTERNATIONAL PLC ORDINARY SHAREHOLDERS—BASIC: | |||||||||||||||
Continuing operations | $ | (3.12 | ) | $ | 1.75 | $ | (3.86 | ) | $ | 1.35 | |||||
Discontinued operations | (3.14 | ) | (0.21 | ) | (3.18 | ) | (0.41 | ) | |||||||
Basic | $ | (6.26 | ) | $ | 1.54 | $ | (7.04 | ) | $ | 0.94 | |||||
NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO ENDO INTERNATIONAL PLC ORDINARY SHAREHOLDERS—DILUTED: | |||||||||||||||
Continuing operations | $ | (3.12 | ) | $ | 1.75 | $ | (3.86 | ) | $ | 1.35 | |||||
Discontinued operations | (3.14 | ) | (0.21 | ) | (3.18 | ) | (0.41 | ) | |||||||
Diluted | $ | (6.26 | ) | $ | 1.54 | $ | (7.04 | ) | $ | 0.94 | |||||
WEIGHTED AVERAGE SHARES: | |||||||||||||||
Basic | 223,158 | 222,667 | 223,086 | 222,485 | |||||||||||
Diluted | 223,158 | 222,863 | 223,086 | 223,021 |
June 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 616,534 | $ | 517,250 | |||
Restricted cash and cash equivalents | 364,796 | 282,074 | |||||
Accounts receivable | 580,123 | 992,153 | |||||
Inventories, net | 489,752 | 555,671 | |||||
Assets held for sale | 166,190 | 116,985 | |||||
Other current assets | 57,620 | 125,326 | |||||
Total current assets | $ | 2,275,015 | $ | 2,589,459 | |||
TOTAL NON-CURRENT ASSETS | 10,003,075 | 11,685,650 | |||||
TOTAL ASSETS | $ | 12,278,090 | $ | 14,275,109 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued expenses, including legal settlement accruals | $ | 2,143,167 | $ | 2,470,016 | |||
Liabilities held for sale | 44,367 | 24,338 | |||||
Other current liabilities | 39,413 | 140,391 | |||||
Total current liabilities | $ | 2,226,947 | $ | 2,634,745 | |||
LONG-TERM DEBT, LESS CURRENT PORTION, NET | 8,251,289 | 8,141,378 | |||||
OTHER LIABILITIES | 990,748 | 797,397 | |||||
TOTAL SHAREHOLDERS' EQUITY | 809,106 | 2,701,589 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 12,278,090 | $ | 14,275,109 |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
OPERATING ACTIVITIES: | |||||||
Consolidated net (loss) income | $ | (1,570,346 | ) | $ | 209,725 | ||
Adjustments to reconcile consolidated net (loss) income to Net cash provided by operating activities: | |||||||
Depreciation and amortization | 499,656 | 476,911 | |||||
Asset impairment charges | 929,006 | 190,904 | |||||
Other, including cash payments to claimants from Qualified Settlement Funds (1) | 482,670 | (318,929 | ) | ||||
Net cash provided by operating activities | $ | 340,986 | $ | 558,611 | |||
INVESTING ACTIVITIES: | |||||||
Purchases of property, plant and equipment | $ | (59,729 | ) | $ | (53,705 | ) | |
Proceeds from sale of business and other assets, net | 18,531 | 6,631 | |||||
Increase in restricted cash and cash equivalents (1) | (522,772 | ) | (327,359 | ) | |||
Decrease in restricted cash and cash equivalents (1) | 440,190 | 524,438 | |||||
Other | — | (13,000 | ) | ||||
Net cash (used in) provided by investing activities | $ | (123,780 | ) | $ | 137,005 | ||
FINANCING ACTIVITIES: | |||||||
(Payments on) proceeds from borrowings, net | $ | (2,550 | ) | $ | (276,740 | ) | |
Other | (97,033 | ) | (24,861 | ) | |||
Net cash used in financing activities | $ | (99,583 | ) | $ | (301,601 | ) | |
Effect of foreign exchange rate | $ | 2,786 | $ | 1,459 | |||
Movement in cash held for sale | (21,125 | ) | — | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | $ | 99,284 | $ | 395,474 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 517,250 | 272,348 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 616,534 | $ | 667,822 |
(1) | Included within the above Condensed Consolidated Statements of Cash Flows is the impact of payments into and out of QSFs for mesh-related product liability. Cash payments into QSFs result in a cash outflow for investing activities (CFI). Cash releases from QSFs result in a cash inflow for investing activities and a corresponding outflow for operating activities (CFO). The following table reflects the mesh-related payment activities for the six months ended June 30, 2017 and 2016 by cash flow component: |
Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Impact on CFO (a) | Impact on CFI | Impact on CFO (a) | Impact on CFI | ||||||||||||
Cash contributions to Qualified Settlement Funds | $ | — | $ | (522,770 | ) | $ | — | $ | (326,795 | ) | |||||
Cash payments to claimants from Qualified Settlement Funds | (440,190 | ) | 440,190 | (524,438 | ) | 524,438 | |||||||||
Cash payments made directly to claimants | (3,794 | ) | — | (5,438 | ) | — | |||||||||
Total | $ | (443,984 | ) | $ | (82,580 | ) | $ | (529,876 | ) | $ | 197,643 |
(a) | These amounts are included in "Other, including cash payments to claimants from Qualified Settlement Funds (1)" in the Condensed Consolidated Statements of Cash Flows above. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net (loss) income attributable to Endo International plc (GAAP) | $ | (1,396,518 | ) | $ | 343,578 | $ | (1,570,346 | ) | $ | 209,709 | |||||
Income tax benefit | (57,480 | ) | (555,277 | ) | (69,408 | ) | (673,992 | ) | |||||||
Interest expense, net | 121,747 | 111,919 | 233,746 | 228,712 | |||||||||||
Depreciation and amortization (18) | 212,801 | 231,478 | 496,910 | 464,912 | |||||||||||
EBITDA (non-GAAP) | $ | (1,119,450 | ) | $ | 131,698 | $ | (909,098 | ) | $ | 229,341 | |||||
Inventory step-up and other cost savings (2) | $ | 100 | $ | 29,103 | $ | 215 | $ | 97,579 | |||||||
Upfront and milestone-related payments (3) | 3,082 | 2,688 | 6,177 | 4,105 | |||||||||||
Inventory reserve increase from restructuring (4) | 7,899 | 6,706 | 7,899 | 33,633 | |||||||||||
Royalty obligations (5) | — | — | — | (7,750 | ) | ||||||||||
Separation benefits and other restructuring (6) | 16,715 | 15,468 | 39,385 | 26,997 | |||||||||||
Certain litigation-related and other contingencies, net (7) | (2,600 | ) | 5,259 | (1,664 | ) | 10,459 | |||||||||
Asset impairment charges (8) | 725,044 | 39,951 | 929,006 | 169,576 | |||||||||||
Acquisition-related and integration costs (9) | 2,240 | 24,287 | 6,936 | 47,515 | |||||||||||
Fair value of contingent consideration (10) | 1,950 | 23,884 | 8,134 | 13,210 | |||||||||||
Loss on extinguishment of debt (11) | 51,734 | — | 51,734 | — | |||||||||||
Share-based compensation | 7,512 | 14,203 | 27,005 | 28,520 | |||||||||||
Other (income) expense, net (19) | (6,709 | ) | 5,175 | (8,746 | ) | 3,268 | |||||||||
Other adjustments | (114 | ) | 5,783 | (17 | ) | (1,395 | ) | ||||||||
Discontinued operations, net of tax (15) | 700,498 | 46,216 | 708,903 | 91,324 | |||||||||||
Net income attributable to noncontrolling interests (16) | — | 18 | — | 16 | |||||||||||
Adjusted EBITDA (non-GAAP) | $ | 387,901 | $ | 350,439 | $ | 865,869 | $ | 746,398 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Loss) income from continuing operations (GAAP) | $ | (696,020 | ) | $ | 389,812 | $ | (861,443 | ) | $ | 301,049 | |||||
Non-GAAP adjustments: | |||||||||||||||
Amortization of intangible assets (1) | 190,943 | 212,844 | 454,077 | 424,513 | |||||||||||
Inventory step-up and other cost savings (2) | 100 | 29,103 | 215 | 97,579 | |||||||||||
Upfront and milestone-related payments (3) | 3,082 | 2,688 | 6,177 | 4,105 | |||||||||||
Inventory reserve increase from restructuring (4) | 7,899 | 6,706 | 7,899 | 33,633 | |||||||||||
Royalty obligations (5) | — | — | — | (7,750 | ) | ||||||||||
Separation benefits and other restructuring (6) | 16,715 | 15,468 | 39,385 | 26,997 | |||||||||||
Certain litigation-related and other contingencies, net (7) | (2,600 | ) | 5,259 | (1,664 | ) | 10,459 | |||||||||
Asset impairment charges (8) | 725,044 | 39,951 | 929,006 | 169,576 | |||||||||||
Acquisition-related and integration costs (9) | 2,240 | 24,287 | 6,936 | 47,515 | |||||||||||
Fair value of contingent consideration (10) | 1,950 | 23,884 | 8,134 | 13,210 | |||||||||||
Loss on extinguishment of debt (11) | 51,734 | — | 51,734 | — | |||||||||||
Non-cash and penalty interest charges (12) | — | — | — | 4,092 | |||||||||||
Other (13) | (3,233 | ) | 1,541 | (4,168 | ) | (5,490 | ) | ||||||||
Tax adjustments (14) | (90,653 | ) | (559,202 | ) | (153,842 | ) | (686,416 | ) | |||||||
Adjusted income from continuing operations (non-GAAP) | $ | 207,201 | $ | 192,341 | $ | 482,446 | $ | 433,072 |
Three Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Cost of revenues | Gross margin | Gross margin % | Total operating expenses | Operating expense to revenue % | Operating (loss) income from continuing operations | Operating margin % | Other non-operating expense, net | (Loss) income from continuing operations before income tax | Income tax (benefit) expense | Effective tax rate | (Loss) income from continuing operations | Discontinued operations, net of tax | Net (loss) income attributable to Endo International plc | Diluted (loss) income per share from continuing operations (17) | ||||||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) | $ | 875,731 | $ | 539,401 | $ | 336,330 | 38 | % | $ | 923,058 | 105 | % | $ | (586,728 | ) | (67 | )% | $ | 166,772 | $ | (753,500 | ) | $ | (57,480 | ) | 8 | % | $ | (696,020 | ) | $ | (700,498 | ) | $ | (1,396,518 | ) | $ | (3.12 | ) | ||||||||||||||||||||
Items impacting comparability: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets (1) | — | (190,943 | ) | 190,943 | — | 190,943 | — | 190,943 | — | 190,943 | — | 190,943 | 0.86 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventory step-up and other cost savings (2) | — | (100 | ) | 100 | — | 100 | — | 100 | — | 100 | — | 100 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Upfront and milestone-related payments (3) | — | (682 | ) | 682 | (2,400 | ) | 3,082 | — | 3,082 | — | 3,082 | — | 3,082 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||
Inventory reserve increase from restructuring (4) | — | (7,899 | ) | 7,899 | — | 7,899 | — | 7,899 | — | 7,899 | — | 7,899 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||||||
Separation benefits and other restructuring (6) | — | (5,026 | ) | 5,026 | (11,689 | ) | 16,715 | — | 16,715 | — | 16,715 | — | 16,715 | 0.07 | |||||||||||||||||||||||||||||||||||||||||||||
Certain litigation-related and other contingencies, net (7) | — | — | — | 2,600 | (2,600 | ) | — | (2,600 | ) | — | (2,600 | ) | — | (2,600 | ) | (0.01 | ) | ||||||||||||||||||||||||||||||||||||||||||
Asset impairment charges (8) | — | — | — | (725,044 | ) | 725,044 | — | 725,044 | — | 725,044 | — | 725,044 | 3.25 | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related and integration costs (9) | — | — | — | (2,240 | ) | 2,240 | — | 2,240 | — | 2,240 | — | 2,240 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||||
Fair value of contingent consideration (10) | — | — | — | (1,950 | ) | 1,950 | — | 1,950 | — | 1,950 | — | 1,950 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt (11) | — | — | — | — | — | (51,734 | ) | 51,734 | — | 51,734 | — | 51,734 | 0.23 | ||||||||||||||||||||||||||||||||||||||||||||||
Other (13) | — | — | — | — | — | 3,233 | (3,233 | ) | — | (3,233 | ) | — | (3,233 | ) | (0.01 | ) | |||||||||||||||||||||||||||||||||||||||||||
Tax adjustments (14) | — | — | — | — | — | — | — | 90,653 | (90,653 | ) | — | (90,653 | ) | (0.41 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Exclude discontinued operations, net of tax (15) | — | — | — | — | — | — | — | — | — | 700,498 | 700,498 | — | |||||||||||||||||||||||||||||||||||||||||||||||
After considering items (non-GAAP) | $ | 875,731 | $ | 334,751 | $ | 540,980 | 62 | % | $ | 182,335 | 21 | % | $ | 358,645 | 41 | % | $ | 118,271 | $ | 240,374 | $ | 33,173 | 14 | % | $ | 207,201 | $ | — | $ | 207,201 | $ | 0.93 |
Three Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Cost of revenues | Gross margin | Gross margin % | Total operating expenses | Operating expense to revenue % | Operating (loss) income from continuing operations | Operating margin % | Other non-operating expense, net | (Loss) income from continuing operations before income tax | Income tax (benefit) expense | Effective tax rate | (Loss) income from continuing operations | Discontinued operations, net of tax | Net (loss) income attributable to Endo International plc (16) | Diluted (loss) income per share from continuing operations (17) | ||||||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) | $ | 920,887 | $ | 632,218 | $ | 288,669 | 31 | % | $ | 337,040 | 37 | % | $ | (48,371 | ) | (5 | )% | $ | 117,094 | $ | (165,465 | ) | $ | (555,277 | ) | 336 | % | $ | 389,812 | $ | (46,216 | ) | $ | 343,578 | $ | 1.75 | |||||||||||||||||||||||
Items impacting comparability: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets (1) | — | (212,844 | ) | 212,844 | — | 212,844 | — | 212,844 | — | 212,844 | — | 212,844 | 0.95 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventory step-up and other cost savings (2) | — | (29,103 | ) | 29,103 | — | 29,103 | — | 29,103 | — | 29,103 | — | 29,103 | 0.13 | ||||||||||||||||||||||||||||||||||||||||||||||
Upfront and milestone-related payments (3) | — | (642 | ) | 642 | (2,046 | ) | 2,688 | — | 2,688 | — | 2,688 | — | 2,688 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||
Inventory reserve increase from restructuring (4) | — | (6,706 | ) | 6,706 | — | 6,706 | — | 6,706 | — | 6,706 | — | 6,706 | 0.03 | ||||||||||||||||||||||||||||||||||||||||||||||
Separation benefits and other restructuring (6) | — | (6,405 | ) | 6,405 | (9,063 | ) | 15,468 | — | 15,468 | — | 15,468 | — | 15,468 | 0.07 | |||||||||||||||||||||||||||||||||||||||||||||
Certain litigation-related and other contingencies, net (7) | — | — | — | (5,259 | ) | 5,259 | — | 5,259 | — | 5,259 | — | 5,259 | 0.02 | ||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment charges (8) | — | — | — | (39,951 | ) | 39,951 | — | 39,951 | — | 39,951 | — | 39,951 | 0.18 | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related and integration costs (9) | — | — | — | (24,287 | ) | 24,287 | — | 24,287 | — | 24,287 | — | 24,287 | 0.11 | ||||||||||||||||||||||||||||||||||||||||||||||
Fair value of contingent consideration (10) | — | — | — | (23,884 | ) | 23,884 | — | 23,884 | — | 23,884 | — | 23,884 | 0.11 | ||||||||||||||||||||||||||||||||||||||||||||||
Other (13) | — | — | — | — | — | (1,541 | ) | 1,541 | — | 1,541 | — | 1,541 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||||
Tax adjustments (14) | — | — | — | — | — | — | — | 559,202 | (559,202 | ) | — | (559,202 | ) | (2.51 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Exclude discontinued operations, net of tax (15) | — | — | — | — | — | — | — | — | — | 46,216 | 46,216 | — | |||||||||||||||||||||||||||||||||||||||||||||||
After considering items (non-GAAP) | $ | 920,887 | $ | 376,518 | $ | 544,369 | 59 | % | $ | 232,550 | 25 | % | $ | 311,819 | 34 | % | $ | 115,553 | $ | 196,266 | $ | 3,925 | 2 | % | $ | 192,341 | $ | — | $ | 192,323 | $ | 0.86 |
Six Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Cost of revenues | Gross margin | Gross margin % | Total operating expenses | Operating expense to revenue % | Operating (loss) income from continuing operations | Operating margin % | Other non-operating expense, net | (Loss) income from continuing operations before income tax | Income tax (benefit) expense | Effective tax rate | (Loss) income from continuing operations | Discontinued operations, net of tax | Net (loss) income attributable to Endo International plc | Diluted (loss) income per share from continuing operations (17) | ||||||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) | $ | 1,913,331 | $ | 1,208,363 | $ | 704,968 | 37 | % | $ | 1,359,085 | 71 | % | $ | (654,117 | ) | (34 | )% | $ | 276,734 | $ | (930,851 | ) | $ | (69,408 | ) | 7 | % | $ | (861,443 | ) | $ | (708,903 | ) | $ | (1,570,346 | ) | $ | (3.86 | ) | ||||||||||||||||||||
Items impacting comparability: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets (1) | — | (454,077 | ) | 454,077 | — | 454,077 | — | 454,077 | — | 454,077 | — | 454,077 | 2.03 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventory step-up and other cost savings (2) | — | (215 | ) | 215 | — | 215 | — | 215 | — | 215 | — | 215 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Upfront and milestone-related payments (3) | — | (1,351 | ) | 1,351 | (4,826 | ) | 6,177 | — | 6,177 | — | 6,177 | — | 6,177 | 0.03 | |||||||||||||||||||||||||||||||||||||||||||||
Inventory reserve increase from restructuring (4) | — | (7,899 | ) | 7,899 | — | 7,899 | — | 7,899 | — | 7,899 | — | 7,899 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||||||
Separation benefits and other restructuring (6) | — | (6,687 | ) | 6,687 | (32,698 | ) | 39,385 | — | 39,385 | — | 39,385 | — | 39,385 | 0.18 | |||||||||||||||||||||||||||||||||||||||||||||
Certain litigation-related and other contingencies, net (7) | — | — | — | 1,664 | (1,664 | ) | — | (1,664 | ) | — | (1,664 | ) | — | (1,664 | ) | (0.01 | ) | ||||||||||||||||||||||||||||||||||||||||||
Asset impairment charges (8) | — | — | — | (929,006 | ) | 929,006 | — | 929,006 | — | 929,006 | — | 929,006 | 4.16 | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related and integration costs (9) | — | — | — | (6,936 | ) | 6,936 | — | 6,936 | — | 6,936 | — | 6,936 | 0.03 | ||||||||||||||||||||||||||||||||||||||||||||||
Fair value of contingent consideration (10) | — | — | — | (8,134 | ) | 8,134 | — | 8,134 | — | 8,134 | — | 8,134 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt (11) | — | — | — | — | — | (51,734 | ) | 51,734 | — | 51,734 | — | 51,734 | 0.23 | ||||||||||||||||||||||||||||||||||||||||||||||
Other (13) | — | — | — | — | — | 4,168 | (4,168 | ) | — | (4,168 | ) | — | (4,168 | ) | (0.02 | ) | |||||||||||||||||||||||||||||||||||||||||||
Tax adjustments (14) | — | — | — | — | — | — | — | 153,842 | (153,842 | ) | — | (153,842 | ) | (0.69 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Exclude discontinued operations, net of tax (15) | — | — | — | — | — | — | — | — | — | 708,903 | 708,903 | — | |||||||||||||||||||||||||||||||||||||||||||||||
After considering items (non-GAAP) | $ | 1,913,331 | $ | 738,134 | $ | 1,175,197 | 61 | % | $ | 379,149 | 20 | % | $ | 796,048 | 42 | % | $ | 229,168 | $ | 566,880 | $ | 84,434 | 15 | % | $ | 482,446 | $ | — | $ | 482,446 | $ | 2.16 |
Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Cost of revenues | Gross margin | Gross margin % | Total operating expenses | Operating expense to revenue % | Operating (loss) income from continuing operations | Operating margin % | Other non-operating expense, net | (Loss) income from continuing operations before income tax | Income tax (benefit) expense | Effective tax rate | (Loss) income from continuing operations | Discontinued operations, net of tax | Net (loss) income attributable to Endo International plc (16) | Diluted (loss) income per share from continuing operations (17) | ||||||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) | $ | 1,884,426 | $ | 1,320,923 | $ | 563,503 | 30 | % | $ | 704,466 | 37 | % | $ | (140,963 | ) | (7 | )% | $ | 231,980 | $ | (372,943 | ) | $ | (673,992 | ) | 181 | % | $ | 301,049 | $ | (91,324 | ) | $ | 209,709 | $ | 1.35 | |||||||||||||||||||||||
Items impacting comparability: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets (1) | — | (424,513 | ) | 424,513 | — | 424,513 | — | 424,513 | — | 424,513 | — | 424,513 | 1.90 | ||||||||||||||||||||||||||||||||||||||||||||||
Inventory step-up and other cost savings (2) | — | (96,229 | ) | 96,229 | (1,350 | ) | 97,579 | — | 97,579 | — | 97,579 | — | 97,579 | 0.44 | |||||||||||||||||||||||||||||||||||||||||||||
Upfront and milestone-related payments (3) | — | (1,309 | ) | 1,309 | (2,796 | ) | 4,105 | — | 4,105 | — | 4,105 | — | 4,105 | 0.02 | |||||||||||||||||||||||||||||||||||||||||||||
Inventory reserve increase from restructuring (4) | — | (33,633 | ) | 33,633 | — | 33,633 | — | 33,633 | — | 33,633 | — | 33,633 | 0.15 | ||||||||||||||||||||||||||||||||||||||||||||||
Royalty obligations (5) | — | 7,750 | (7,750 | ) | — | (7,750 | ) | — | (7,750 | ) | — | (7,750 | ) | — | (7,750 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||||||||||||
Separation benefits and other restructuring (6) | — | (6,405 | ) | 6,405 | (20,592 | ) | 26,997 | — | 26,997 | — | 26,997 | — | 26,997 | 0.11 | |||||||||||||||||||||||||||||||||||||||||||||
Certain litigation-related and other contingencies, net (7) | — | — | — | (10,459 | ) | 10,459 | — | 10,459 | — | 10,459 | — | 10,459 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment charges (8) | — | — | — | (169,576 | ) | 169,576 | — | 169,576 | — | 169,576 | — | 169,576 | 0.76 | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related and integration costs (9) | — | — | — | (47,515 | ) | 47,515 | — | 47,515 | — | 47,515 | — | 47,515 | 0.21 | ||||||||||||||||||||||||||||||||||||||||||||||
Fair value of contingent consideration (10) | — | — | — | (13,210 | ) | 13,210 | — | 13,210 | — | 13,210 | — | 13,210 | 0.06 | ||||||||||||||||||||||||||||||||||||||||||||||
Non-cash and penalty interest charges (12) | — | — | — | — | — | (4,092 | ) | 4,092 | — | 4,092 | — | 4,092 | 0.02 | ||||||||||||||||||||||||||||||||||||||||||||||
Other (13) | — | — | — | 8,350 | (8,350 | ) | (2,860 | ) | (5,490 | ) | — | (5,490 | ) | — | (5,490 | ) | (0.02 | ) | |||||||||||||||||||||||||||||||||||||||||
Tax adjustments (14) | — | — | — | — | — | — | — | 686,416 | (686,416 | ) | — | (686,416 | ) | (3.08 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Exclude discontinued operations, net of tax (15) | — | — | — | — | — | — | — | — | — | 91,324 | 91,324 | — | |||||||||||||||||||||||||||||||||||||||||||||||
After considering items (non-GAAP) | $ | 1,884,426 | $ | 766,584 | $ | 1,117,842 | 59 | % | $ | 447,318 | 24 | % | $ | 670,524 | 36 | % | $ | 225,028 | $ | 445,496 | $ | 12,424 | 3 | % | $ | 433,072 | $ | — | $ | 433,056 | $ | 1.94 |
(1) | Adjustments for amortization of commercial intangible assets included the following (in thousands): |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Amortization of intangible assets excluding fair value step-up from contingent consideration | $ | 180,886 | $ | 204,593 | $ | 433,775 | $ | 407,973 | |||||||
Amortization of intangible assets related to fair value step-up from contingent consideration | 10,057 | 8,251 | 20,302 | 16,540 | |||||||||||
Total | $ | 190,943 | $ | 212,844 | $ | 454,077 | $ | 424,513 |
(2) | Adjustments for inventory step-up and other cost savings included the following (in thousands): |
Three Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Cost of revenues | Operating expenses | Cost of revenues | Operating expenses | ||||||||||||
Fair value step-up of inventory sold | $ | 100 | $ | — | $ | 26,600 | $ | — | |||||||
Excess manufacturing costs that will be eliminated pursuant to integration plans | — | — | 2,503 | — | |||||||||||
Total | $ | 100 | $ | — | $ | 29,103 | $ | — |
Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Cost of revenues | Operating expenses | Cost of revenues | Operating expenses | ||||||||||||
Fair value step-up of inventory sold | $ | 215 | $ | — | $ | 87,970 | $ | 957 | |||||||
Excess manufacturing costs that will be eliminated pursuant to integration plans | — | — | 8,259 | 393 | |||||||||||
Total | $ | 215 | $ | — | $ | 96,229 | $ | 1,350 |
(3) | Adjustments for upfront and milestone-related payments to partners included the following (in thousands): |
Three Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Cost of revenues | Operating expenses | Cost of revenues | Operating expenses | ||||||||||||
Sales-based milestones | $ | 682 | $ | — | $ | 642 | $ | — | |||||||
Development-based milestones | — | 2,400 | — | 2,046 | |||||||||||
Total | $ | 682 | $ | 2,400 | $ | 642 | $ | 2,046 |
Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Cost of revenues | Operating expenses | Cost of revenues | Operating expenses | ||||||||||||
Sales-based milestones | $ | 1,351 | $ | — | $ | 1,309 | $ | — | |||||||
Development-based milestones | — | 4,826 | — | 2,796 | |||||||||||
Total | $ | 1,351 | $ | 4,826 | $ | 1,309 | $ | 2,796 |
(4) | To exclude charges reflecting adjustments to excess inventory reserves related to the 2017 U.S. Generics Pharmaceuticals restructuring initiative and 2016 U.S. Generic Pharmaceuticals restructuring initiative. |
(5) | To adjust for the reversal of the remaining VOLTAREN® Gel minimum royalty obligations as a result of a generic entrant during the first quarter of 2016. |
(6) | Adjustments for separation benefits and other restructuring included the following (in thousands): |
Three Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Cost of revenues | Operating expenses | Cost of revenues | Operating expenses | ||||||||||||
Separation benefits | $ | 609 | $ | 128 | $ | 6,405 | $ | 2,014 | |||||||
Accelerated depreciation and product discontinuation | — | — | — | 3,402 | |||||||||||
Other | 4,417 | 11,561 | — | 3,647 | |||||||||||
Total | $ | 5,026 | $ | 11,689 | $ | 6,405 | $ | 9,063 |
Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Cost of revenues | Operating expenses | Cost of revenues | Operating expenses | ||||||||||||
Separation benefits | $ | 2,270 | $ | 19,255 | $ | 6,405 | $ | 8,773 | |||||||
Accelerated depreciation and product discontinuation charges | — | 398 | — | 7,771 | |||||||||||
Other | 4,417 | 13,045 | — | 4,048 | |||||||||||
Total | $ | 6,687 | $ | 32,698 | $ | 6,405 | $ | 20,592 |
(7) | To exclude litigation settlement charges or reimbursements. |
(8) | To exclude pre-tax, non-cash goodwill, intangible asset and property, plant and equipment impairment charges. |
(9) | Adjustments for acquisition and integration items primarily relate to various acquisitions, including Par Pharmaceuticals. Amounts included the following (in thousands): |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Integration costs (primarily third-party consulting fees) | $ | 2,233 | $ | 18,731 | $ | 4,476 | $ | 31,186 | |||||||
Transition services | — | 3,621 | — | 8,470 | |||||||||||
Other | 7 | 1,935 | 2,460 | 7,859 | |||||||||||
Total | $ | 2,240 | $ | 24,287 | $ | 6,936 | $ | 47,515 |
(10) | To exclude the impact of changes in the fair value of contingent consideration resulting from changes in market conditions impacting the commercial potential of the underlying products. |
(11) | To exclude the loss on the extinguishment of debt associated with our April 2017 refinancing. |
(12) | To exclude penalty interest charges. |
(13) | Adjustments to other included the following (in thousands): |
Three Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Operating expenses | Other non-operating expenses | Operating expenses | Other non-operating expenses | ||||||||||||
Foreign currency impact related to the re-measurement of intercompany debt instruments | $ | — | $ | (3,233 | ) | $ | — | $ | 417 | ||||||
Other miscellaneous | — | — | — | 1,124 | |||||||||||
Total | $ | — | $ | (3,233 | ) | $ | — | $ | 1,541 |
Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Operating expenses | Other non-operating expenses | Operating expenses | Other non-operating expenses | ||||||||||||
Foreign currency impact related to the re-measurement of intercompany debt instruments | $ | — | $ | (5,927 | ) | $ | — | $ | 1,672 | ||||||
Other miscellaneous expense (income) | — | 1,759 | (8,350 | ) | 1,188 | ||||||||||
Total | $ | — | $ | (4,168 | ) | $ | (8,350 | ) | $ | 2,860 |
(14) | Adjusted income taxes are calculated by tax effecting adjusted pre-tax income and permanent book-tax differences at the applicable effective tax rate that will be determined by reference to statutory tax rates in the relevant jurisdictions in which the Company operates. Adjusted income taxes include current and deferred income tax expense commensurate with the non-GAAP measure of profitability. |
(15) | To exclude the results of the businesses reported as discontinued operations, net of tax in the Condensed Consolidated Statement of Operations. |
(16) | Net income attributable to noncontrolling interests is excluded from Adjusted EBITDA (non-GAAP) and Net (loss) income attributable to Endo International plc. |
(17) | Calculated as income (loss) from continuing operations divided by the applicable weighted average share number. The applicable weighted average share numbers are as follows (in thousands): |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
GAAP EPS | 223,158 | 222,863 | 223,086 | 223,021 | |||||||
Non-GAAP EPS | 223,785 | 222,863 | 223,560 | 223,021 |
(18) | Depreciation and amortization per the Adjusted EBITDA reconciliations do not include certain depreciation amounts reflected in other lines of the reconciliations, including Acquisition-related and integration costs and Separation benefits and other restructuring. |
(19) | To exclude Other (income) expense, net per the Condensed Consolidated Statement of Operations. |
Year Ending | |||||||
December 31, 2017 | |||||||
Projected GAAP diluted loss per share from continuing operations | $ | (4.76 | ) | to | $ | (4.46 | ) |
Amortization of commercial intangible assets | 3.42 | ||||||
Acquisition related, integration and restructuring charges and certain excess costs that will be eliminated pursuant to integration plans | 1.28 | ||||||
Asset impairment charges | 4.15 | ||||||
Loss on extinguished debts | 0.23 | ||||||
Other | (0.03) | ||||||
Tax effect of pre-tax adjustments at applicable tax rates | (0.94) | ||||||
Adjusted diluted earnings per share from continuing operations | $ | 3.35 | to | $ | 3.65 |
• | Certain of the above amounts are based on estimates and there can be no assurance that Endo will achieve these results. |
• | Includes all completed and pending business development transactions as of August 8, 2017. |
Twelve Months Ended June 30, 2017 | |||
Net (loss) income attributable to Endo International plc (GAAP) | $ | (5,127,121 | ) |
Income tax benefit | (95,500 | ) | |
Interest expense, net | 457,713 | ||
Depreciation and amortization (18) | 987,800 | ||
EBITDA (non-GAAP) | $ | (3,777,108 | ) |
Inventory step-up and other cost savings | $ | 28,335 | |
Upfront and milestone-related payments | 10,402 | ||
Inventory reserve decrease from restructuring | (1,279 | ) | |
Separation benefits and other restructuring | 95,424 | ||
Certain litigation-related and other contingencies, net | 11,827 | ||
Asset impairment charges | 4,540,595 | ||
Acquisition-related and integration costs | 23,199 | ||
Fair value of contingent consideration | 18,747 | ||
Loss on extinguishment of debt | 51,734 | ||
Share-based compensation | 57,141 | ||
Other income, net | (12,352 | ) | |
Other adjustments | 1,378 | ||
Discontinued operations, net of tax | 740,857 | ||
Adjusted EBITDA (non-GAAP) | $ | 1,788,900 | |
Calculation of Net Debt: | |||
Debt | $ | 8,285,439 | |
Cash (excluding Restricted Cash) | 616,534 | ||
Net Debt (non-GAAP) | $ | 7,668,905 | |
Calculation of Net Debt Leverage: | |||
Net Debt Leverage Ratio (non-GAAP) | 4.3 |