Reportable Segments

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Reportable Segments

NOTE 3 – REPORTABLE SEGMENTS

Actavis has three reportable segments: Actavis Pharma, Actavis Specialty Brands and Anda Distribution. The Actavis Pharma segment includes off-patent pharmaceutical products that are therapeutically equivalent to proprietary products. The Actavis Specialty Brands segment includes patent-protected products and certain trademarked off-patent products that Actavis sells and markets as brand pharmaceutical products. The Anda Distribution segment mainly distributes generic pharmaceutical products manufactured by third parties, as well as by Actavis, primarily to independent pharmacies, pharmacy chains, pharmacy buying groups and physicians’ offices. The Anda Distribution segment operating results exclude sales of products developed, acquired, or licensed by the Actavis Pharma and Actavis Specialty Brands segments.

The Company evaluates segment performance based on segment contribution. Segment contribution represents segment net revenues less cost of sales (excluding amortization), R&D expenses and selling and marketing expenses. The Company does not report total assets, capital expenditures, general and administrative expenses, amortization, gains or losses on asset sales or disposals and impairments by segment as not all such information has been accounted for at the segment level, nor is such information used by all segments.

Segment net revenues, segment operating expenses and segment contribution information for the Company’s Actavis Pharma, Actavis Specialty Brands and Anda Distribution segments consisted of the following (in millions):

	Three Months Ended June 30, 2013												Three Months Ended June 30, 2012
	Actavis Pharma			Actavis Specialty Brands			Anda Distribution			Total			Actavis Pharma			Actavis Specialty Brands			Anda Distribution			Total
Product sales	$	1,525.5		$	126.9		$	275.8		$	1,928.2		$	976.0		$	100.9		$	240.9		$	1,317.8
Other		43.7			17.9			—			61.6			19.0			18.4			—			37.4
Net revenues		1,569.2			144.8			275.8			1,989.8			995.0			119.3			240.9			1,355.2
Operating expenses:
Cost of sales (1)		776.8			34.4			238.8			1,050.0			517.4			28.7			207.9			754.0
Research and development		103.7			31.9			—			135.6			53.8			25.9			—			79.7
Selling and marketing		160.9			47.0			27.7			235.6			52.6			42.5			22.8			117.9
Contribution	$	527.8		$	31.5		$	9.3		$	568.6		$	371.2		$	22.2		$	10.2		$	403.6
Contibution margin		33.6	%		21.8	%		3.4	%		28.6	%		37.3	%		18.6	%		4.2	%		29.8	%
General and administrative											225.8												121.8
Amortization											149.6												105.8
Loss on asset sales, impairments, and contingent consideration adjustment, net											655.3												79.8
Operating income (loss)										$	(462.1	)										$	96.2
Operating margin											(23.2	%)											7.1	%

(1) Excludes amortization of acquired intangibles, including product rights.

	Six Months Ended June 30, 2013												Six Months Ended June 30, 2012
	Actavis Pharma			Actavis Specialty Brands			Anda Distribution			Total			Actavis Pharma			Actavis Specialty Brands			Anda Distribution			Total
Product sales	$	3,049.6		$	243.1		$	506.8		$	3,799.5		$	2,084.0		$	193.8		$	539.5		$	2,817.3
Other		53.4			32.4			—			85.8			27.1			35.1			—			62.2
Net revenues		3,103.0			275.5			506.8			3,885.3			2,111.1			228.9			539.5			2,879.5
Operating expenses:
Cost of sales (1)		1,638.7			64.2			433.3			2,136.2			1,131.6			54.5			472.2			1,658.3
Research and development		202.5			65.2			—			267.7			109.9			58.3			—			168.2
Selling and marketing		320.2			90.6			52.0			462.8			100.1			90.2			45.7			236.0
Contribution	$	941.6		$	55.5		$	21.5		$	1,018.6		$	769.5		$	25.9		$	21.6		$	817.0
Contibution margin		30.3	%		20.1	%		4.2	%		26.2	%		36.5	%		11.3	%		4.0	%		28.4	%
General and administrative											411.6												286.2
Amortization											308.0												237.7
Loss on asset sales, impairments, and contingent consideration adjustment, net											803.3												80.0
Operating income (loss)										$	(504.3	)										$	213.1
Operating margin											(13.0	)%											7.4	%

(1) Excludes amortization of acquired intangibles, including product rights.