XML 62 R52.htm IDEA: XBRL DOCUMENT v3.4.0.3
Acquisitions (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended
Nov. 25, 2015
Nov. 25, 2015
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Jun. 30, 2015
Fair value of total consideration transferred:                
Unsecured 12.0% Senior Notes issued to UCB         $ 200,000      
Acquisition-related contingent consideration         35,000      
Warrant issued to UCB         $ 29,920      
Debt instrument, stated percentage 12.00% 12.00% 12.00%   12.00%      
Additional tax benefits         $ 100,000      
Purchase price allocation of the assets acquired and liabilities assumed                
Goodwill     $ 313,451   313,451     $ 141
Revenues     140,114 $ 99,352 373,606 $ 307,561    
Net income (loss) attributable to Lannett Company, Inc.     $ (5,490) $ 36,233 $ 41,211 $ 115,976    
Earnings (loss) per common share attributable to Lannett Company, Inc.:                
Basic (in dollars per share)     $ (0.15) $ 1.01 $ 1.13 $ 3.25    
Diluted (in dollars per share)     $ (0.15) $ 0.97 $ 1.10 $ 3.13    
Acquisition costs incurred by acquirer                
Earnings (loss) per common share attributable to Lannett Company, Inc.:                
Acquisition-related expenses         $ 21,500 $ 21,500    
Acquisition costs incurred by acquiree                
Earnings (loss) per common share attributable to Lannett Company, Inc.:                
Acquisition-related expenses         7,400 9,200    
KUPI                
Acquisitions                
Percentage of outstanding equity interest 100.00% 100.00%            
Fair value of total consideration transferred:                
Cash purchase price paid to KUPI shareholders   $ 1,030,000            
Estimated working capital adjustment   (46,202)            
Certain amounts reimbursable by UCB   (37,340)            
Total cash consideration transferred to KUPI shareholders   946,458            
Unsecured 12.0% Senior Notes issued to UCB   200,000            
Acquisition-related contingent consideration   35,000            
Warrant issued to UCB   29,920            
Total consideration to KUPI shareholders   $ 1,211,378            
Debt instrument, stated percentage 12.00% 12.00%            
Incremental tax cost will be reimbursed (as a percent) 50.00% 50.00%            
Business combination recognized identifiable assets acquired and liabilities assumed cash on hand $ 90,100 $ 90,100            
Additional tax benefits 100,000              
Purchase price allocation of the assets acquired and liabilities assumed                
Cash and cash equivalents     $ 16,877   16,877   $ 16,877  
Accounts receivable, net of revenue-related reserves     143,019   143,019   149,209  
Inventories     83,600   83,600   83,815  
Other current assets     11,405   11,405   12,873  
Property, plant and equipment     117,587   117,587   97,418  
In-process research and development     129,000   129,000   232,000  
Goodwill     313,310   313,310   240,575  
Deferred tax assets     4,956   4,956   4,956  
Other assets     4,859   4,859   4,859  
Total assets acquired     1,276,533   1,276,533   1,274,502  
Accounts payable     (19,249)   (19,249)   (19,249)  
Accrued expenses     (6,079)   (6,079)   (4,161)  
Accrued payroll and payroll-related expenses     (21,040)   (21,040)   (20,731)  
Rebates payable     (9,816)   (9,816)   (9,816)  
Royalties payable     (3,602)   (3,602)   (3,798)  
Other long-term liabilities     (5,369)   (5,369)   (5,369)  
Total net assets acquired     1,211,378   1,211,378   1,211,378  
Preliminary indemnification assets acquired 15,300 15,300            
Compensation related payments 10,400 10,400            
Unrecognized tax benefits $ 4,900 4,900            
Revenues     69,933   96,064      
Net income (loss) attributable to Lannett Company, Inc.     $ 2,260   (4,047)      
Measurement Period Adjustments                
Accounts receivable, net of revenue-related reserves         (6,190)      
Inventories         (215)      
Other current assets         (1,468)      
Property, plant and equipment         20,169      
In-process research and development         (103,000)      
Goodwill         72,735      
Total assets acquired         2,031      
Accrued expenses         (1,918)      
Accrued payroll and payroll-related expenses         (309)      
Royalties payable         $ 196      
Earnings (loss) per common share attributable to Lannett Company, Inc.:                
Basic (in dollars per share)     $ 0.06   $ (0.11)      
Diluted (in dollars per share)     $ 0.06   $ (0.11)      
Acquisition-related expenses         $ 21,500      
Unaudited Pro Forma financial results                
Revenues     $ 163,712 $ 193,612 520,867 616,083    
Net income attributable to Lannett Company, Inc.     $ 896 $ 29,889 $ 55,596 $ 89,527    
Earnings per common share attributable to Lannett Company, Inc.:                
Basic     $ 0.02 $ 0.83 $ 1.53 $ 2.50    
Diluted     $ 0.02 $ 0.80 $ 1.49 $ 2.41    
Proforma earnings     $ 896 $ 29,889 $ 55,596 $ 89,527    
KUPI | Acquisition-related Costs                
Unaudited Pro Forma financial results                
Net income attributable to Lannett Company, Inc.         (28,900) (30,700)    
Earnings per common share attributable to Lannett Company, Inc.:                
Proforma earnings         (28,900) (30,700)    
KUPI | Acquisition costs incurred by acquiree                
Unaudited Pro Forma financial results                
Net income attributable to Lannett Company, Inc.       (1,000)        
Earnings per common share attributable to Lannett Company, Inc.:                
Proforma earnings       $ (1,000)        
KUPI | Fair value set-up adjustment                
Purchase price allocation of the assets acquired and liabilities assumed                
Inventory fair value step-up adjustments   $ 19,100            
Unaudited Pro Forma financial results                
Net income attributable to Lannett Company, Inc.     8,600   14,400 18,900    
Earnings per common share attributable to Lannett Company, Inc.:                
Proforma earnings     8,600   14,400 $ 18,900    
Senior Notes due 2023                
Fair value of total consideration transferred:                
Debt instrument, stated percentage 12.00% 12.00%            
Senior Notes due 2023 | KUPI                
Fair value of total consideration transferred:                
Amount of debt issuance for funding the acquisition and transaction expenses   $ 250,000            
Senior secured credit facility | KUPI                
Fair value of total consideration transferred:                
Amount of debt issuance for funding the acquisition and transaction expenses   910,000            
Revolving Credit Facility | KUPI                
Fair value of total consideration transferred:                
Amount of debt issuance for funding the acquisition and transaction expenses   $ 22,800            
Product rights | KUPI                
Purchase price allocation of the assets acquired and liabilities assumed                
Product Rights     430,000   430,000   409,000  
Measurement Period Adjustments                
Intangible assets         21,000      
Trade name | KUPI                
Purchase price allocation of the assets acquired and liabilities assumed                
Product Rights     2,920   2,920   2,920  
Other Intangible Assets | KUPI                
Purchase price allocation of the assets acquired and liabilities assumed                
Product Rights     $ 19,000   19,000   $ 20,000  
Measurement Period Adjustments                
Intangible assets         $ (1,000)