XML 40 R29.htm IDEA: XBRL DOCUMENT v3.21.2
SEGMENT RESULTS (Tables)
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Schedule of reportable segments information
The following represents selected information for the Company’s reportable segments for the three and six months ended June 30, 2021 and 2020 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Net revenues from external customers:
Branded Pharmaceuticals$228,040 $129,521 $434,675 $333,594 
Sterile Injectables294,600 319,214 603,345 655,604 
Generic Pharmaceuticals167,272 215,879 348,145 467,162 
International Pharmaceuticals (1)23,918 22,974 45,584 51,633 
Total net revenues from external customers$713,830 $687,588 $1,431,749 $1,507,993 
Segment adjusted income from continuing operations before income tax:
Branded Pharmaceuticals$101,659 $49,174 $195,428 $147,596 
Sterile Injectables226,983 241,753 469,622 505,649 
Generic Pharmaceuticals20,922 47,394 55,026 104,721 
International Pharmaceuticals10,102 9,304 17,573 23,501 
Total segment adjusted income from continuing operations before income tax$359,666 $347,625 $737,649 $781,467 
__________
(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 income 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 six months ended June 30, 2021 and 2020 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Total consolidated income from continuing operations before income tax$916 $25,252 $48,699 $46,501 
Interest expense, net141,553 129,164 275,894 262,041 
Corporate unallocated costs (1)36,500 33,590 75,974 76,912 
Amortization of intangible assets94,070 104,498 189,200 221,735 
Upfront and milestone payments to partners5,125 444 5,681 2,194 
Continuity and separation benefits and other cost reduction initiatives (2)15,083 9,444 38,803 32,664 
Certain litigation-related and other contingencies, net (3)35,195 (8,572)35,832 (25,748)
Certain legal costs (4)24,843 18,005 44,119 33,541 
Asset impairment charges (5)4,929 — 8,238 97,785 
Acquisition-related and integration items, net (6)97 6,045 (4,925)18,507 
Loss on extinguishment of debt— — 13,753 — 
Foreign currency impact related to the remeasurement of intercompany debt instruments1,355 3,005 2,502 (4,089)
Other, net (7)— 26,750 3,879 19,424 
Total segment adjusted income from continuing operations before income tax$359,666 $347,625 $737,649 $781,467 
__________
(1)Amounts include certain corporate overhead costs, such as headcount, facility and corporate litigation expenses and certain other income and expenses.
(2)Amounts for the three months ended June 30, 2021 include employee separation, continuity and other benefit-related costs of $1.6 million, accelerated depreciation charges of $9.1 million and miscellaneous charges of $4.4 million. Amounts for the six months ended June 30, 2021 include employee separation, continuity and other benefit-related costs of $10.1 million, accelerated depreciation charges of $16.0 million and miscellaneous charges of $12.7 million. Amounts for the three months ended June 30, 2020 include employee separation, continuity and other benefit-related costs of $4.1 million, accelerated depreciation charges of $1.8 million and miscellaneous charges of $3.6 million. Amounts for the six months ended June 30, 2020 include employee separation, continuity and other benefit-related costs of $17.9 million, accelerated depreciation charges of $8.4 million and miscellaneous charges of $6.4 million. These costs relate primarily to our restructuring activities as further described in Note 4. Restructuring, certain continuity and transitional compensation arrangements for certain senior management of the Company and certain other cost reduction 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 relate to opioid-related legal expenses.
(5)Amounts primarily relate to charges to impair goodwill and intangible assets as further described in Note 9. Goodwill and Other Intangibles.
(6)Amounts primarily relate to changes in the fair value of contingent consideration.
(7)Amounts for the six months ended June 30, 2021 primarily relate to $3.9 million of third party fees incurred in connection with the March 2021 Refinancing Transactions, which were accounted for as debt modification costs. Amounts for the three and six months ended June 30, 2020 primarily relate to $30.7 million of third party fees incurred in connection with the June 2020 Refinancing Transactions, which were accounted for as debt modification costs. Refer to Note 12. Debt for additional information. Other amounts in this row primarily relate to gains on sales of businesses and other assets.
Disaggregation of revenue 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 June 30,Six Months Ended June 30,
2021202020212020
Branded Pharmaceuticals:
Specialty Products:
XIAFLEX®
$111,487 $33,783 $206,757 $122,855 
SUPPRELIN® LA
27,568 15,395 55,596 35,115 
Other Specialty (1)28,036 19,566 48,068 45,071 
Total Specialty Products$167,091 $68,744 $310,421 $203,041 
Established Products:
PERCOCET®
$26,156 $27,578 $51,781 $55,281 
TESTOPEL®
9,439 617 20,628 8,809 
Other Established (2)25,354 32,582 51,845 66,463 
Total Established Products$60,949 $60,777 $124,254 $130,553 
Total Branded Pharmaceuticals (3)$228,040 $129,521 $434,675 $333,594 
Sterile Injectables:
VASOSTRICT®
$197,121 $214,214 $421,067 $417,118 
ADRENALIN®
29,977 33,161 59,414 89,673 
Other Sterile Injectables (4)67,502 71,839 122,864 148,813 
Total Sterile Injectables (3)$294,600 $319,214 $603,345 $655,604 
Total Generic Pharmaceuticals (5)$167,272 $215,879 $348,145 $467,162 
Total International Pharmaceuticals (6)$23,918 $22,974 $45,584 $51,633 
Total revenues, net$713,830 $687,588 $1,431,749 $1,507,993 
__________
(1)Products included within Other Specialty include NASCOBAL® Nasal Spray, AVEED® and QWO®.
(2)Products included within Other Established include, but are not limited to, EDEX® and LIDODERM®.
(3)Individual products presented above represent the top two performing products in each product category for either the three or six months ended June 30, 2021 and/or any product having revenues in excess of $25 million during any quarterly period in 2021 or 2020.
(4)Products included within Other Sterile Injectables include ertapenem for injection, APLISOL® 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. No individual product within this segment has exceeded 5% of consolidated total revenues for the periods presented.
(6)The International Pharmaceuticals segment, which accounted for less than 5% of consolidated total revenues for each of the periods presented, includes a variety of specialty pharmaceutical products sold outside the U.S., primarily in Canada through our operating company Paladin.