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Segment Results (Tables)
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Schedule of reportable segments information
The following represents selected information for the Company’s reportable segments for the three and nine months ended September 30, 2019 and 2018 (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net revenues from external customers:
 
 
 
 
 
 
 
Branded Pharmaceuticals
$
217,313

 
$
220,100

 
$
629,851

 
$
632,972

Sterile Injectables
263,635

 
237,150

 
777,963

 
670,847

Generic Pharmaceuticals
218,012

 
257,969

 
654,322

 
748,445

International Pharmaceuticals (1)
30,466

 
30,247

 
87,428

 
108,425

Total net revenues from external customers
$
729,426

 
$
745,466

 
$
2,149,564

 
$
2,160,689

Adjusted income from continuing operations before income tax:
 
 
 
 
 
 
 
Branded Pharmaceuticals
$
91,444


$
84,891


$
253,417


$
262,454

Sterile Injectables
197,974


170,329


566,345


513,082

Generic Pharmaceuticals
29,433


82,555


128,738


247,137

International Pharmaceuticals
11,511


13,377


35,053


45,594

Total segment adjusted income from continuing operations before income tax
$
330,362


$
351,152


$
983,553


$
1,068,267

__________
(1)
Revenues generated by our International Pharmaceuticals segment are primarily attributable to external customers located in Canada.
The table below provides reconciliations of our Total consolidated loss from continuing operations before income tax, which is determined in accordance with U.S. GAAP, to our total segment adjusted income from continuing operations before income tax for the three and nine months ended September 30, 2019 and 2018 (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Total consolidated loss from continuing operations before income tax
$
(24,070
)
 
$
(143,068
)
 
$
(120,363
)
 
$
(671,559
)
Interest expense, net
136,903

 
131,847

 
404,387

 
385,896

Corporate unallocated costs (1)
37,891

 
49,187

 
124,351

 
144,693

Amortization of intangible assets
131,932

 
161,275

 
417,949

 
471,662

Inventory step-up
—

 
71

 
—

 
261

Upfront and milestone payments to partners
1,672

 
4,731

 
4,055

 
43,027

Retention and separation benefits and other cost reduction initiatives (2)
11,023

 
4,001

 
15,172

 
82,141

Certain litigation-related and other contingencies, net (3)
(14,414
)
 
(1,750
)
 
(4,093
)
 
15,370

Asset impairment charges (4)
4,766

 
142,217

 
258,652

 
613,400

Acquisition-related and integration items (5)
16,025

 
1,288

 
(26,983
)
 
13,284

Gain on extinguishment of debt
—

 
—

 
(119,828
)
 
—

Foreign currency impact related to the remeasurement of intercompany debt instruments
(922
)
 
1,528

 
2,874

 
(1,560
)
Other, net (6)
29,556

 
(175
)
 
27,380

 
(28,348
)
Total segment adjusted income from continuing operations before income tax
$
330,362

 
$
351,152

 
$
983,553

 
$
1,068,267

__________
(1)
Amounts include certain corporate overhead costs, such as headcount, facility and corporate litigation expenses and certain other income and expenses.
(2)
Amounts for both the three and nine months ended September 30, 2019 include $6.7 million of costs associated with retention bonuses awarded to certain senior management of the Company. Other amounts during each of the periods presented related primarily to our restructuring initiatives. Such amounts included employee separation costs of $2.2 million during the nine months ended September 30, 2019 and other charges of $4.4 million and $6.3 million during the three and nine months ended September 30, 2019, respectively. During the three and nine months ended September 30, 2018, such amounts included employee separation costs of $2.1 million and $32.7 million, respectively, charges to increase excess inventory reserves of $0.2 million and $2.8 million, respectively, and other charges of $1.7 million and $11.4 million, respectively. Also included in the amount for the nine months ended September 30, 2018 is accelerated depreciation of $35.2 million. See Note 4. Restructuring for discussion of our material restructuring initiatives.
(3)
Amounts include adjustments to our accruals for litigation-related settlement charges and certain settlement proceeds related to suits filed by our subsidiaries. Our material legal proceedings and other contingent matters are described in more detail in Note 13. Commitments and Contingencies.
(4)
Amounts primarily relate to charges to impair goodwill and intangible assets as further described in Note 9. Goodwill and Other Intangibles.
(5)
Amounts primarily relate to changes in the fair value of contingent consideration.
(6)
Amounts during the three and nine months ended September 30, 2019 include $17.5 million for contract termination costs incurred as a result of certain product discontinuation activities in our International Pharmaceuticals segment and $14.1 million for a premium associated with an extended reporting period endorsement on an expiring insurance program. The remaining amounts primarily relate to gains on sales of businesses and other assets.
Disaggregation of revenue
The Company disaggregates its revenue from contracts with customers into the categories included in the table below (in thousands). The Company believes these categories depict how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors.

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2018

2019

2018
Branded Pharmaceuticals:
 
 
 
 
 
 
 
Specialty Products:
 
 
 
 
 
 
 
XIAFLEX®
$
82,756

 
$
64,214

 
$
226,118

 
$
184,855

SUPPRELIN® LA
20,772

 
20,408

 
66,542

 
60,948

Other Specialty (1)
28,470

 
27,614

 
78,397

 
69,226

Total Specialty Products
$
131,998

 
$
112,236

 
$
371,057

 
$
315,029

Established Products:
 
 
 
 
 
 
 
PERCOCET®
$
28,561

 
$
30,730

 
$
88,199

 
$
93,539

TESTOPEL®
13,236

 
15,962

 
40,830

 
44,976

Other Established (2)
43,518

 
61,172

 
129,765

 
179,428

Total Established Products
$
85,315

 
$
107,864

 
$
258,794

 
$
317,943

Total Branded Pharmaceuticals (3)
$
217,313

 
$
220,100

 
$
629,851

 
$
632,972

Sterile Injectables:
 
 
 
 
 
 
 
VASOSTRICT®
$
129,691


$
112,333


$
384,854


$
332,387

ADRENALIN®
40,311


35,460


133,468


101,858

APLISOL®
28,085

 
15,992

 
55,996

 
49,064

Ertapenem for injection
21,853

 
25,798

 
79,619

 
25,798

Other Sterile Injectables (4)
43,695


47,567


124,026


161,740

Total Sterile Injectables (3)
$
263,635


$
237,150


$
777,963


$
670,847

Total Generic Pharmaceuticals (5)
$
218,012

 
$
257,969

 
$
654,322

 
$
748,445

Total International Pharmaceuticals (6)
$
30,466

 
$
30,247

 
$
87,428

 
$
108,425

Total revenues, net
$
729,426

 
$
745,466

 
$
2,149,564

 
$
2,160,689

__________
(1)
Products included within Other Specialty are NASCOBAL® Nasal Spray and AVEED®. Beginning with our first-quarter 2019 reporting, TESTOPEL®, which was previously included in Other Specialty, has been reclassified and is now included in the Established Products portfolio for all periods presented.
(2)
Products included within Other Established include, but are not limited to, LIDODERM®, VOLTAREN® Gel, EDEX®, FORTESTA® Gel and TESTIM®, including the authorized generics of FORTESTA® Gel and TESTIM®.
(3)
Individual products presented above represent the top two performing products in each product category for either the three or nine months ended September 30, 2019 and/or any product having revenues in excess of $25 million during any quarterly period in 2019 or 2018.
(4)
Products included within Other Sterile Injectables include ephedrine sulfate injection and others.
(5)
The Generic Pharmaceuticals segment is comprised of a portfolio of products that are generic versions of branded products, are distributed primarily through the same wholesalers, generally have no intellectual property protection and are sold within the U.S. During the three and nine months ended September 30, 2019, colchicine tablets, the authorized generic of Takeda Pharmaceuticals U.S.A., Inc.’s Colcrys®, which launched in July 2018, made up 7% and 6% of consolidated total revenue, respectively. No other individual product within this segment has exceeded 5% of consolidated total revenues for the periods presented.
(6)
The International Pharmaceuticals segment, which accounted for 4% of consolidated total revenues during both the three and nine months ended September 30, 2019 and 4% and 5% of consolidated total revenues during the three and nine months ended September 30, 2018, respectively, includes a variety of specialty pharmaceutical products sold outside the U.S., primarily in Canada through our operating company Paladin.