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

12 Months Ended

Dec. 31, 2022

Reorganizations [Abstract]

Schedule of Condensed Combined Financial Statements of the Debtors

The financial statements included in this Note represent the 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 Consolidated Financial Statements.

CONDENSED COMBINED BALANCE SHEETS
(Dollars in thousands)
	December 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	991,901
Restricted cash and cash equivalents	59,358
Accounts receivable, net	478,889
Inventories, net	241,349
Prepaid expenses and other current assets	111,807
Income taxes receivable	7,038
Receivables from Non-Debtor Affiliates	94,608
Total current assets	$	1,984,950
PROPERTY, PLANT AND EQUIPMENT, NET	233,114
OPERATING LEASE ASSETS	23,200
GOODWILL	1,352,011
OTHER INTANGIBLES, NET	1,732,935
INVESTMENTS IN NON-DEBTOR AFFILIATES	50,001
RECEIVABLES FROM NON-DEBTOR AFFILIATES	240,002
OTHER ASSETS	126,494
TOTAL ASSETS	$	5,742,707
LIABILITIES AND DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	654,414
Current portion of operating lease liabilities	230
Income taxes payable	10
Payables to Non-Debtor Affiliates	20,162
Total current liabilities	$	674,816
DEFERRED INCOME TAXES	13,479
OPERATING LEASE LIABILITIES, LESS CURRENT PORTION	994
OTHER LIABILITIES	37,367
LIABILITIES SUBJECT TO COMPROMISE	9,168,782
TOTAL DEFICIT	(4,152,731)
TOTAL LIABILITIES AND DEFICIT	$	5,742,707

CONDENSED COMBINED STATEMENTS OF OPERATIONS
(Dollars in thousands)
	2022
TOTAL REVENUES, NET	$	2,321,426
COSTS AND EXPENSES:
Cost of revenues	1,106,855
Selling, general and administrative	764,768
Research and development	137,851
Acquired in-process research and development	68,700
Litigation-related and other contingencies, net	478,722
Asset impairment charges	2,137,107
Acquisition-related and integration items, net	408
Interest expense, net	345,593
Reorganization items, net	202,978
Other income, net	(13,409)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX	$	(2,908,147)
INCOME TAX EXPENSE	17,721
LOSS FROM CONTINUING OPERATIONS	$	(2,925,868)
DISCONTINUED OPERATIONS, NET OF TAX	(13,468)
NET LOSS ATTRIBUTABLE TO DEBTOR ENTITIES	$	(2,939,336)
EQUITY IN INCOME OF NON-DEBTOR AFFILIATES, NET OF TAX	22,671
NET LOSS	$	(2,916,665)

CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE LOSS
(Dollars in thousands)
	2022
NET LOSS	$	(2,916,665)
OTHER COMPREHENSIVE LOSS:
Net unrealized loss on foreign currency	$	(10,496)
Total other comprehensive loss	$	(10,496)
COMPREHENSIVE LOSS	$	(2,927,161)

CONDENSED COMBINED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
	2022
OPERATING ACTIVITIES:
Net cash provided by operating activities (1)	$	209,523
INVESTING ACTIVITIES:
Capital expenditures, excluding capitalized interest	(43,743)
Capitalized interest payments	(3,140)
Proceeds from the U.S. Government Agreement	18,635
Acquisitions, including in-process research and development, net of cash and restricted cash acquired	(90,320)
Proceeds from sale of business and other assets, net	41,400
Proceeds from loans made to Non-Debtor Affiliates	2,355
Disbursements for loans made to Non-Debtor Affiliates	(51,486)
Net cash used in investing activities	$	(126,299)
FINANCING ACTIVITIES:
Repayments of notes	(180,342)
Repayments of term loans	(10,000)
Adequate protection payments	(313,109)
Repayments of other indebtedness	(6,062)
Payments for contingent consideration	(2,462)
Payments of tax withholding for restricted shares	(1,898)
Net cash used in financing activities	$	(513,873)
Effect of foreign exchange rate	(1,790)
NET DECREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS	$	(432,439)
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	$	1,136,259

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(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 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 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 Consolidated Statements of Cash Flows.