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

6 Months Ended

Jun. 30, 2023

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)

	June 30, 2023		December 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	835,388	$	991,901
Restricted cash and cash equivalents	73,707		59,358
Accounts receivable, net	437,649		478,889
Inventories, net	238,855		241,349
Prepaid expenses and other current assets	87,241		111,807
Income taxes receivable	6,784		7,038

Receivables from Non-Debtor Affiliates	95,051		94,608
Total current assets	$	1,774,675	$	1,984,950

PROPERTY, PLANT AND EQUIPMENT, NET	229,542		233,114
OPERATING LEASE ASSETS	21,375		23,200
GOODWILL	1,352,011		1,352,011
OTHER INTANGIBLES, NET	1,604,271		1,732,935

INVESTMENTS IN NON-DEBTOR AFFILIATES	48,783		50,001
RECEIVABLES FROM NON-DEBTOR AFFILIATES	254,194		240,002
OTHER ASSETS	122,262		126,494
TOTAL ASSETS	$	5,407,113	$	5,742,707
LIABILITIES AND DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	539,541	$	654,414

Current portion of operating lease liabilities	239		230

Income taxes payable	—		10

Payables to Non-Debtor Affiliates	13,666		20,162
Total current liabilities	$	553,446	$	674,816
DEFERRED INCOME TAXES	11,286		13,479


OPERATING LEASE LIABILITIES, LESS CURRENT PORTION	877		994

OTHER LIABILITIES	34,851		37,367
LIABILITIES SUBJECT TO COMPROMISE	8,924,870		9,168,782
TOTAL DEFICIT	(4,118,217)		(4,152,731)
TOTAL LIABILITIES AND DEFICIT	$	5,407,113	$	5,742,707





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

	Three Months Ended June 30,		Six Months Ended June 30,
	2023			2023
TOTAL REVENUES, NET	$	546,942		$	1,062,172
COSTS AND EXPENSES:
Cost of revenues	237,476			471,366
Selling, general and administrative	135,554			284,680
Research and development	31,301			61,061

Litigation-related and other contingencies, net	28,013			43,213
Asset impairment charges	—			146
Acquisition-related and integration items, net	365			762

Interest income, net	(2,854)			(5,592)

Reorganization items, net	84,267			169,619
Other income, net	(97)			(811)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX	$	32,917		$	37,728
INCOME TAX EXPENSE	10,157			15,814
INCOME FROM CONTINUING OPERATIONS	$	22,760		$	21,914
DISCONTINUED OPERATIONS, NET OF TAX	(573)			(1,029)
NET INCOME ATTRIBUTABLE TO DEBTOR ENTITIES	$	22,187		$	20,885
EQUITY IN LOSS OF NON-DEBTOR AFFILIATES, NET OF TAX	507			(1,109)
NET INCOME	$	22,694		$	19,776





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

	Three Months Ended June 30,		Six Months Ended June 30,
	2023			2023
NET INCOME	$	22,694		$	19,776
OTHER COMPREHENSIVE INCOME:
Net unrealized gain on foreign currency	$	2,891		$	3,498
Total other comprehensive income	$	2,891		$	3,498
COMPREHENSIVE INCOME	$	25,585		$	23,274





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

	Six Months Ended June 30,
	2023
OPERATING ACTIVITIES:
Net cash provided by operating activities (1)	$	183,576
INVESTING ACTIVITIES:
Capital expenditures, excluding capitalized interest	(36,805)

Proceeds from the U.S. Government Agreement	19,354






Proceeds from sale of business and other assets	2,259

Disbursements for loans made to Non-Debtor Affiliates	(14,243)

Net cash used in investing activities	$	(29,435)
FINANCING ACTIVITIES:






Adequate protection payments	(291,689)
Repayments of other indebtedness	(3,299)

Payments for contingent consideration	(2,083)



Net cash used in financing activities	$	(297,071)
Effect of foreign exchange rate	766

NET DECREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS	$	(142,164)
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD	1,136,259
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD	$	994,095

__________

(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.