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Acquisitions and Divestitures (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of Business Acquisition Pro Forma Data

The unaudited pro forma combined results of operations for the three and six months ended June 30, 2020 and 2019 (assuming the closing of the Acquisitions occurred on January 1, 2019) are as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Net revenue	$	464,662	$	479,891	$	989,965	$	991,096
Net (loss) income	$	(23,944)	$	(45,622)	$	92,472	$	(178,006)
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	$	(11,996)	$	(15,535)	$	101,438	$	(65,712)

AvKARE and R&S Acquisitions

Business Acquisition [Line Items]

Schedule of Purchase Price

The preliminary purchase price is calculated as follows (in thousands):


Cash	$	254,000
Sellers Notes ⁽¹⁾	35,033
Settlement of Amneal trade accounts receivable from R&S ⁽²⁾	7,440
Short-Term Seller Note ⁽³⁾	1,000
Working capital adjustment ⁽⁴⁾	(2,640)
Fair value consideration transferred	$	294,833

(1)In accordance with ASC 805, Business Combinations, all consideration transferred was measured at its acquisition-date fair value. The Sellers Notes are stated at the preliminary fair value estimate of $35 million, which is the $44 million aggregate principal amount less a $9 million discount. The fair value of the Sellers Notes was estimated using the Monte-Carlo simulation approach under the option pricing framework.

(2)Represents trade accounts receivable from R&S that was effectively settled upon closing of the Acquisitions.

(3)Represents the principal amount due on the Short-Term Seller Note, which approximates fair value.

(4)Represents estimated working capital adjustment pursuant to the terms of the purchase agreement.

Schedule of Purchase Price Allocation

The following is a summary of the preliminary purchase price allocation for the Acquisitions (in thousands):


	Preliminary Fair Values as of January 31, 2020

Trade accounts receivable, net	$	49,286
Inventories	68,115
Prepaid expenses and other current assets	7,401
Related party receivables	61
Property, plant and equipment	5,278
Goodwill	108,790
Intangible assets, net	130,800
Operating lease right-of-use assets - related party	5,544
Total assets acquired	375,275
Accounts payable and accrued expenses	61,891
Related party payables	1,532
Operating lease liabilities - related party	5,544
Total liabilities assumed	68,967
Redeemable non-controlling interests	11,475
Fair value of consideration transferred	$	294,833

Schedule of Acquired Intangible Assets

The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):


	Preliminary Fair Values		Weighted-Average Useful Life
Government licenses	$	66,700	7 years
Government contracts	22,000		4 years
National contracts	28,600		5 years
Customer relationships	13,000		10 years
Trade name	500		6 years
	$	130,800