Asset Impairment, Restructuring, and Other Special Charges

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Asset Impairment, Restructuring, and Other Special Charges

The components of the charges included in asset impairment, restructuring, and other special charges in our consolidated condensed statements of operations are described below.


	Six Months Ended June 30,
		2021		2020
Severance		$	11.5	$	9.8
Asset impairment and other special charges		200.1		50.1
Total asset impairment, restructuring, and other special charges		$	211.6	$	59.9

There were no asset impairment, restructuring, and other special charges recognized during the three months ended June 30, 2021 and 2020.

Asset impairment, restructuring, and other special charges recognized during the six months ended June 30, 2021 were primarily related to an intangible asset impairment of $108.1 million resulting from the sale of the rights to Qbrexza, as well as acquisition and integration costs associated with the acquisition of Prevail. During the three months ended March 31, 2021, we entered into an agreement to sell our rights to Qbrexza, subject to closing conditions which were completed in the second quarter of 2021. The assets associated with Qbrexza were written down to fair value less cost to sell, which were determined based upon a discounted cash flow valuation.

Asset impairment, restructuring, and other special charges recognized during the six months ended June 30, 2020 were primarily related to acquisition and integration costs associated with the acquisition of Dermira.

We recognized inventory impairment charges of $423.0 million and $504.5 million during the three and six months ended June 30, 2021, respectively, in cost of sales in our consolidated condensed statements of operations for excess inventory related to our COVID-19 antibodies. As part of our response to the COVID-19 pandemic, and at the request of the U.S. and international governments, we invested in large-scale manufacturing of COVID-19 antibodies at risk, in order to ensure rapid access to patients around the world. As the COVID-19 pandemic has continued to evolve during 2021, we incurred excess inventory charges primarily due to the combination of changes to current and forecasted demand from U.S. and international governments, including changes to our agreement with the U.S. government, and near-term expiry dates of COVID-19 antibodies.