XML 42 R32.htm IDEA: XBRL DOCUMENT v3.23.2
SEGMENT RESULTS (Tables)
 6 Months Ended
Jun. 30, 2023
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, 2023 and 2022 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Net revenues from external customers:
Branded Pharmaceuticals$212,377 $218,952 $409,950 $423,813 
Sterile Injectables137,028 123,171 238,283 363,199 
Generic Pharmaceuticals178,579 203,377 376,759 389,321 
International Pharmaceuticals (1)18,868 23,614 37,127 45,040 
Total net revenues from external customers$546,852 $569,114 $1,062,119 $1,221,373 
Segment adjusted income from continuing operations before income tax:
Branded Pharmaceuticals$115,340 $88,613 $211,605 $166,279 
Sterile Injectables69,546 68,397 110,636 259,651 
Generic Pharmaceuticals80,404 83,337 172,091 149,719 
International Pharmaceuticals4,861 8,472 10,208 12,853 
Total segment adjusted income from continuing operations before income tax$270,151 $248,819 $504,540 $588,502 
__________
(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 (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 six months ended June 30, 2023 and 2022 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Total consolidated income (loss) from continuing operations before income tax$34,290 $(1,873,732)$37,240 $(1,940,847)
Interest expense, net120 139,784 229 274,733 
Corporate unallocated costs (1)37,696 38,388 77,353 81,669 
Amortization of intangible assets64,425 87,568 129,681 177,802 
Acquired in-process research and development charges— 65,000 — 67,900 
Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives (2)14,281 37,347 25,954 94,996 
Certain litigation-related and other contingencies, net (3)28,013 208 43,213 25,362 
Certain legal costs (4)2,113 (9,462)3,673 23,270 
Asset impairment charges (5)— 1,781,063 146 1,801,016 
Acquisition-related and integration items, net (6)365 1,825 762 448 
Foreign currency impact related to the remeasurement of intercompany debt instruments1,922 (2,092)2,206 (894)
Reorganization items, net (7)84,267 — 169,619 — 
Other, net (8)2,659 (17,078)14,464 (16,953)
Total segment adjusted income from continuing operations before income tax$270,151 $248,819 $504,540 $588,502 
__________
(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, 2023 include net employee separation, continuity and other benefit-related charges of $15.1 million, partially offset by a net reversal of certain inventory charges related to restructurings of $0.9 million. Amounts for the six months ended June 30, 2023 include net employee separation, continuity and other benefit-related charges of $25.9 million and other net charges of $0.6 million, partially offset by a net reversal of certain inventory charges related to restructurings of $0.6 million. Amounts for the three months ended June 30, 2022 include net employee separation, continuity and other benefit-related charges of $11.7 million, accelerated depreciation charges of $0.1 million and other net charges, including those related to strategic review initiatives, of $25.5 million. Amounts for the six months ended June 30, 2022 include net employee separation, continuity and other benefit-related charges of $44.1 million, accelerated depreciation charges of $3.8 million and other net charges, including those related to strategic review initiatives, of $47.1 million. These amounts relate primarily to our restructuring activities as further described in Note 5. Restructuring, certain continuity and transitional compensation arrangements, certain other cost reduction initiatives and certain strategic review initiatives, including costs incurred in connection with our bankruptcy proceedings, which are included in this row until the Petition Date and in the Reorganization items, net row thereafter.
(3)Amounts include adjustments to our accruals for litigation-related settlement charges. Our material legal proceedings and other contingent matters are described in more detail in Note 15. Commitments and Contingencies.
(4)Amounts relate to opioid-related legal expenses.
(5)Amounts primarily relate to charges to impair goodwill and intangible assets. For additional information, refer to Note 10. Goodwill and Other Intangibles.
(6)Amounts primarily relate to changes in the fair value of contingent consideration.
(7)Amounts relate to the net expense or income recognized during our bankruptcy proceedings required to be presented as Reorganization items, net under ASC 852. Refer to Note 2. Bankruptcy Proceedings for further details.
(8)The amount for the six months ended June 30, 2023 primarily relates to a charge of approximately $9.2 million associated with the rejection of certain equity award agreements, which was approved by the Bankruptcy Court in March 2023. Other amounts in this row relate to gains and losses on sales of business and other assets and certain other items.
Schedule of 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,
2023202220232022
Branded Pharmaceuticals:
Specialty Products:
XIAFLEX®$117,291 $120,878 $214,201 $220,362 
SUPPRELIN® LA28,223 24,739 51,800 53,569 
Other Specialty (1)19,839 18,246 41,533 38,990 
Total Specialty Products$165,353 $163,863 $307,534 $312,921 
Established Products:
PERCOCET®$26,445 $26,256 $52,501 $52,431 
TESTOPEL®11,600 10,021 22,589 18,901 
Other Established (2)8,979 18,812 27,326 39,560 
Total Established Products$47,024 $55,089 $102,416 $110,892 
Total Branded Pharmaceuticals (3)$212,377 $218,952 $409,950 $423,813 
Sterile Injectables:
ADRENALIN®$27,133 $26,774 $52,708 $60,597 
VASOSTRICT®24,419 35,630 50,370 191,520 
Other Sterile Injectables (4)85,476 60,767 135,205 111,082 
Total Sterile Injectables (3)$137,028 $123,171 $238,283 $363,199 
Total Generic Pharmaceuticals (5)$178,579 $203,377 $376,759 $389,321 
Total International Pharmaceuticals (6)$18,868 $23,614 $37,127 $45,040 
Total revenues, net$546,852 $569,114 $1,062,119 $1,221,373 
__________
(1)Products included within Other Specialty include AVEED®, NASCOBAL® Nasal Spray and QWO®.
(2)Products included within Other Established include, but are not limited to, EDEX®.
(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, 2023 and/or any product having revenues in excess of $25 million during any completed quarterly period in 2023 or 2022.
(4)Products included within Other Sterile Injectables include, but are not limited to, APLISOL®. During the second quarter of 2023, the Company executed a Settlement Agreement and Release of Claims with Novavax, Inc. (the Novavax Settlement Agreement) to resolve a dispute under a previous manufacturing and services agreement. For the three months ended June 30, 2023, the cash and non-cash consideration received in connection with the Novavax Settlement Agreement made up 6% of consolidated total revenues. No other individual product within Other Sterile Injectables has exceeded 5% of consolidated total revenues for the periods presented.
(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 limited or no intellectual property protection and are sold within the U.S. Varenicline tablets (Endo’s generic version of Pfizer Inc.’s Chantix®), which launched in September 2021, made up 10% and 13%, for the three and six months ended June 30, 2023, respectively, and 13% and 12% for the three and six months ended June 30, 2022, respectively, of consolidated total revenues. During the six months ended June 30, 2023, dexlansoprazole delayed release capsules (Endo’s generic version of Takeda Pharmaceuticals USA, Inc.’s Dexilant®), which launched in November 2022, made up 5% of consolidated total revenues. 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 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 Endo’s operating company Paladin.