As noted above, in November 2020, the Company announced the initiation of several strategic actions to further optimize the Company’s operations and increase overall efficiency. These actions were initiated with the expectation of, among other things, generating significant cost savings to be reinvested, among other things, to support the Company’s key strategic priority to expand and enhance its product portfolio. These actions included the following:

•Increasing organizational effectiveness by further integrating the Company’s commercial, operations and research and development functions, respectively, to support the Company’s key strategic priorities.

As a result of the 2020 Restructuring Initiative, the Company’s global workforce was reduced by approximately 300 net full-time positions. The Company expects to realize annualized pre-tax cash savings (without giving effect to the costs described below) of approximately $85 million to $95 million by the first half of 2023, primarily related to reductions in Cost of revenues of approximately $65 million to $70 million and other expenses, including Selling, general and administrative and Research and development expenses, of approximately $20 million to $25 million. Future costs associated with the 2020 Restructuring Initiative are not expected to be material.

The following pre-tax net amounts related to the 2020 Restructuring Initiative are included in the Company’s Consolidated Statements of Operations during the years ended December 31, 2022, 2021 and 2020 (in thousands):



	2022		2021		2020
Net restructuring charges (charge reversals) related to:
Accelerated depreciation	$	3,773	$	24,718	$	22,459
Asset impairments	—		42,155		7,391
Inventory adjustments	1,494		6,968		3,097
Employee separation, continuity and other benefit-related costs	1,216		(7,384)		60,025
Certain other restructuring costs	795		2,012		664
Total	$	7,278	$	68,469	$	93,636

These pre-tax net amounts were primarily attributable to our Generic Pharmaceuticals segment, which incurred $5.4 million, $49.9 million and $79.0 million of pre-tax net charges during the years ended December 31, 2022, 2021 and 2020, respectively. The remaining amounts related to our other segments and certain corporate unallocated costs.

As of December 31, 2022, cumulative amounts incurred to date include charges related to accelerated depreciation of approximately $51.0 million, asset impairments related to certain identifiable intangible assets, operating lease assets and disposal groups totaling approximately $49.5 million, inventory adjustments of approximately $11.6 million, employee separation, continuity and other benefit-related costs, net of approximately $53.9 million and certain other restructuring costs of approximately $3.5 million. Of these amounts, approximately $134.3 million was attributable to the Generic Pharmaceuticals segment, with the remaining amounts relating to our other segments and certain corporate unallocated costs.



	2022		2021		2020
Net restructuring charges (charge reversals) included in:
Cost of revenues	$	3,966	$	6,244	$	53,297
Selling, general and administrative	208		20,788		27,857
Research and development	3,104		1,367		5,091
Asset impairment charges	—		42,155		7,391
Other income, net	—		(2,085)		—
Total	$	7,278	$	68,469	$	93,636

In addition to the pre-tax net amounts summarized above, as part of the 2020 Restructuring Initiative, we recognized a pre-tax disposal gain of approximately $8.4 million during the fourth quarter of 2022 as a result of the Chestnut Ridge, New York sale transaction, which is further described in Note 4. Discontinued Operations and Asset Sales. The assets sold primarily related to our Generic Pharmaceuticals segment.


	Employee Separation, Continuity and Other Benefit-Related Costs		Certain Other Restructuring Costs		Total
Liability balance as of December 31, 2019	$	—	$	—	$	—
Net charges	60,025		664		60,689
Cash payments	(1,687)		—		(1,687)
Liability balance as of December 31, 2020	$	58,338	$	664	$	59,002
Net (charge reversals) charges	(7,384)		3,711		(3,673)
Cash payments	(39,975)		(4,170)		(44,145)
Liability balance as of December 31, 2021	$	10,979	$	205	$	11,184
Net charges	1,216		796		2,012
Cash payments	(11,926)		(1,001)		(12,927)
Liability balance as of December 31, 2022	$	269	$	—	$	269

In April 2022, the Company communicated the initiation of actions to streamline and simplify certain functions, including its commercial organization, to increase its overall organizational effectiveness and better align with current and future needs. In December 2022, the Company announced it would be taking certain additional actions to cease the production and sale of QWO® in light of market concerns about the extent and variability of bruising following initial treatment as well as the potential for prolonged skin discoloration. These actions, which are collectively referred to herein as the 2022 Restructuring Initiative, were initiated with the expectation of, among other things, generating cost savings, with a portion to be reinvested to support the Company’s key strategic priority to expand and enhance its product portfolio. In December 2022, the Bankruptcy Court approved an order authorizing the Company to cease the production and commercialization of QWO® and granting related relief.

As a result of the 2022 Restructuring Initiative, the Company’s global workforce is ultimately expected to be reduced by up to approximately 190 net full-time positions. The Company expects to realize annualized pre-tax cash savings (without giving effect to the costs described below) of approximately $105 million to $125 million by the end of 2023, primarily related to reductions in Selling, general and administrative expenses and Cost of revenues. Future costs associated with the 2022 Restructuring Initiative are not expected to be material.

The following pre-tax net amounts related to the 2022 Restructuring Initiative are included in the Company’s Consolidated Statements of Operations during the year ended December 31, 2022 (in thousands):



	2022
Net restructuring charges related to:

Asset impairments	$	180,248
Inventory adjustments	34,870
Employee separation, continuity and other benefit-related costs	28,345
Certain other restructuring costs	8,656
Total	$	252,119

These pre-tax net amounts were primarily attributable to our Branded Pharmaceuticals segment, which incurred $238.6 million of pre-tax net charges during the year ended December 31, 2022. The remaining amounts related to our Generic Pharmaceuticals segment and certain corporate unallocated costs.


	Employee Separation, Continuity and Other Benefit-Related Costs		Certain Other Restructuring Costs		Total



Liability balance as of December 31, 2021	$	—	$	—	$	—
Net charges	28,345		1,102		29,447
Cash payments	(13,348)		(1,102)		(14,450)
Liability balance as of December 31, 2022	$	14,997	$	—	$	14,997