CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Condensed Combined Financial Statements of the Debtors

The financial statements included in this Note represent the unaudited Condensed Combined Financial Statements of the Debtors only, which include Endo International plc and most of its wholly-owned subsidiaries, except for its Indian subsidiaries and certain subsidiaries associated with the Company’s former Astora business. These statements reflect the results of operations, financial position and cash flows of the combined Debtors, including certain amounts and activities between Debtors and Non-Debtor Affiliates of the Company that are eliminated in the Condensed Consolidated Financial Statements.





CONDENSED COMBINED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)

	September 30, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	990,107
Restricted cash and cash equivalents	59,486
Accounts receivable, net	409,333
Inventories, net	254,206
Prepaid expenses and other current assets	126,613
Income taxes receivable	1,290

Receivables from Non-Debtor Affiliates	102,162
Total current assets	$	1,943,197

PROPERTY, PLANT AND EQUIPMENT, NET	236,755
OPERATING LEASE ASSETS	26,240
GOODWILL	1,352,011
OTHER INTANGIBLES, NET	1,992,932

INVESTMENTS IN NON-DEBTOR AFFILIATES	53,887
RECEIVABLES FROM NON-DEBTOR AFFILIATES	241,860
OTHER ASSETS	139,659
TOTAL ASSETS	$	5,986,541
LIABILITIES AND DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	517,978



Income taxes payable	3,459

Payables to Non-Debtor Affiliates	2,614
Total current liabilities	$	524,051
DEFERRED INCOME TAXES	11,536




OTHER LIABILITIES	21,792
LIABILITIES SUBJECT TO COMPROMISE	9,345,250
TOTAL DEFICIT	(3,916,088)
TOTAL LIABILITIES AND DEFICIT	$	5,986,541





CONDENSED COMBINED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2022			2022
TOTAL REVENUES, NET	$	541,889		$	1,765,228
COSTS AND EXPENSES:
Cost of revenues	266,811			807,013
Selling, general and administrative	189,689			592,139
Research and development	34,519			102,942
Acquired in-process research and development	800			68,700
Litigation-related and other contingencies, net	419,377			444,738
Asset impairment charges	150,200			1,951,216
Acquisition-related and integration items, net	(1,399)			(951)

Interest expense, net	71,874			347,862

Reorganization items, net	124,212			124,212
Other expense (income), net	9,052			(2,360)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX	$	(723,246)		$	(2,670,283)
INCOME TAX EXPENSE	10,535			15,032
LOSS FROM CONTINUING OPERATIONS	$	(733,781)		$	(2,685,315)
DISCONTINUED OPERATIONS, NET OF TAX	(3,896)			(15,096)
NET LOSS ATTRIBUTABLE TO DEBTOR ENTITIES	$	(737,677)		$	(2,700,411)
EQUITY IN INCOME OF NON-DEBTOR AFFILIATES, NET OF TAX	18,669			26,776
NET LOSS	$	(719,008)		$	(2,673,635)





CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
(Dollars in thousands)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2022			2022
NET LOSS	$	(719,008)		$	(2,673,635)
OTHER COMPREHENSIVE INCOME:
Net unrealized (loss) gain on foreign currency	$	(10,649)		$	(13,088)
Total other comprehensive (loss) income	$	(10,649)		$	(13,088)
COMPREHENSIVE LOSS	$	(729,657)		$	(2,686,723)





CONDENSED COMBINED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)

	Nine Months Ended September 30,
	2022
OPERATING ACTIVITIES:
Net cash provided by operating activities (1)	$	75,349
INVESTING ACTIVITIES:
Capital expenditures, excluding capitalized interest	(35,018)

Proceeds from the U.S. Government Agreement	13,601

Acquisitions, including in-process research and development, net of cash and restricted cash acquired	(89,520)




Proceeds from sale of business and other assets, net	22,378
Disbursements for loans made to Non-Debtor Affiliates	(51,180)

Net cash used in investing activities	$	(139,739)
FINANCING ACTIVITIES:


Repayments of notes	(180,342)
Repayments of term loans	(10,000)


Adequate protection payments	(168,643)
Repayments of other indebtedness	(4,500)

Payments for contingent consideration	(1,939)
Payments of tax withholding for restricted shares	(1,898)


Net cash used in financing activities	$	(367,322)
Effect of foreign exchange rate	(2,393)

NET DECREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS	$	(434,105)
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD	1,568,698
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD	$	1,134,593

__________

(1)The difference between the amount of Net cash provided by operating activities included in the table above and the amount of Net cash provided by operating activities included in the Condensed Consolidated Statements of Cash Flows for the same period primarily relates to the fact that the table above: (i) excludes the operating cash flows of our Non-Debtor Affiliates, which are included in the Condensed Consolidated Statements of Cash Flows, and (ii) includes the effects of the operating cash flows of the Debtors with the Non-Debtor Affiliates, which are eliminated in the Condensed Consolidated Statements of Cash Flows.