Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 09, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-35803 | |
Entity Registrant Name | Mallinckrodt plc | |
Entity Incorporation, State or Country Code | L2 | |
Entity Tax Identification Number | 98-1088325 | |
Entity Address, Address Line One | College Business & Technology Park | |
Entity Address, City or Town | Dublin | |
Entity Address, Postal Zip Code | 15 | |
Entity Address, Country | IE | |
City Area Code | 1 | |
Local Phone Number | 696 0000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Central Index Key | 0001567892 | |
Current Fiscal Year End Date | --12-29 | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Ordinary Shares Outstanding | 13,289,180 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Address, Address Line Two | Cruiserath | |
Entity Address, Address Line Three | Blanchardstown | |
Country Region | 353 | |
Entity Filer Category | Accelerated Filer | |
Title of 12(b) Security | Ordinary shares, par value $0.01 per share | |
Trading Symbol | MNK | |
Security Exchange Name | NYSEAMER |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | |
Net sales | $ 85 | $ 475 | $ 383.7 | $ 899.6 | $ 874.6 |
Cost of sales | 102.2 | 370.1 | 266.8 | 744.9 | 582 |
Gross profit (loss) | (17.2) | 104.9 | 116.9 | 154.7 | 292.6 |
Selling, general and administrative expenses | 30.3 | 132.7 | 122.8 | 255.6 | 275.3 |
Research and development expenses | 6.2 | 29 | 28.3 | 57.3 | 65.5 |
Restructuring charges, net | 1.1 | (0.2) | 2.8 | 1 | 9.6 |
Operating loss | (54.8) | (56.6) | (37) | (159.2) | (57.8) |
Interest expense | 21.1 | 162.6 | 50.4 | 324.6 | 108.6 |
Interest income | (0.1) | (4.7) | (0.2) | (9.4) | (0.6) |
Other (expense) income, net | 5.9 | (1.2) | (10.5) | (15.8) | (14.6) |
Reorganization items, net | (3.5) | (4) | (587.5) | (9.6) | (630.9) |
Loss from continuing operations before income taxes | (73.4) | (219.7) | (685.2) | (499.8) | (811.3) |
Income tax expense (benefit) | (9.7) | 528.1 | (491.4) | 497.3 | (497.3) |
Loss from continuing operations | (63.7) | (747.8) | (193.8) | (997.1) | (314) |
Income from discontinued operations, net of income taxes | 0 | 0 | 0.3 | $ 0 | $ 0.9 |
Net loss | $ (63.7) | $ (747.8) | $ (193.5) | ||
Basic (loss) income per share (Note 5): | |||||
Loss from continuing operations | $ (4.83) | $ (56.74) | $ (2.29) | $ (75.68) | $ (3.70) |
Income from discontinued operations | 0 | 0 | 0 | 0 | 0.01 |
Net loss | $ (4.83) | $ (56.74) | $ (2.28) | $ (75.68) | $ (3.69) |
Basic weighted-averaged shares outstanding (in shares) | 13.2 | 13.2 | 84.8 | 13.2 | 84.8 |
Diluted (loss) income per share (Note 5): | |||||
Loss from continuing operations | $ (4.83) | $ (56.74) | $ (2.29) | $ (75.68) | $ (3.70) |
Income from discontinued operations | 0 | 0 | 0 | 0 | 0.10 |
Net loss | $ (4.83) | $ (56.74) | $ (2.28) | $ (75.68) | $ (3.69) |
Diluted weighted-average shares outstanding (in shares) | 13.2 | 13.2 | 84.8 | 13.2 | 84.8 |
Retained Earnings (Deficit) | |||||
Net loss | $ (63.7) | $ (747.8) | $ (193.5) | $ (997.1) | $ (313.1) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | |
Net loss | $ (63.7) | $ (747.8) | $ (193.5) | ||
Total other comprehensive income (loss), net of tax | (1.7) | 6.4 | (1.5) | ||
Currency translation adjustments | (1.7) | (3.6) | (1.7) | $ (1.8) | $ (1.5) |
Derivatives, net of tax | 0 | 10.1 | 0 | 5.8 | 0 |
Benefit plans, net of tax | 0 | (0.1) | 0.2 | (0.2) | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (65.4) | (741.4) | (195) | (993.3) | (314.6) |
Net loss | (63.7) | (747.8) | (193.5) | ||
Other comprehensive income (loss), net of tax: | |||||
Currency translation adjustments | (1.7) | (3.6) | (1.7) | (1.8) | (1.5) |
Derivatives, net of tax | 0 | 10.1 | 0 | 5.8 | 0 |
Benefit plans, net of tax | 0 | (0.1) | 0.2 | (0.2) | 0 |
Total other comprehensive income (loss), net of tax | (1.7) | 6.4 | (1.5) | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total | (65.4) | (741.4) | (195) | (993.3) | (314.6) |
Retained Earnings (Deficit) | |||||
Net loss | (63.7) | (747.8) | (193.5) | (997.1) | (313.1) |
Net loss | (63.7) | (747.8) | (193.5) | (997.1) | (313.1) |
Accumulated Other Comprehensive Loss | |||||
Total other comprehensive income (loss), net of tax | (1.7) | 6.4 | (1.5) | 3.8 | (1.5) |
Other comprehensive income (loss), net of tax: | |||||
Total other comprehensive income (loss), net of tax | $ (1.7) | $ 6.4 | $ (1.5) | $ 3.8 | $ (1.5) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets $ in Millions | Jun. 30, 2023 USD ($) $ / shares shares | Dec. 30, 2022 USD ($) $ / shares shares |
Cash and cash equivalents | $ 480.6 | $ 409.5 |
Accounts receivable, less allowance for doubtful accounts of $4.0 and $4.4 | 391.2 | 405.3 |
Inventories | 860.5 | 947.6 |
Prepaid expenses and other current assets | 123.2 | 273.4 |
Assets, Current | 1,855.5 | 2,035.8 |
Property, plant and equipment, net | 453.2 | 457.6 |
Intangible assets, net | 2,581.3 | 2,843.8 |
Other assets | 216.9 | 201.1 |
Assets | 5,106.9 | 6,013.8 |
Current maturities of long-term debt | 2,361 | 44.1 |
Accounts payable | 83.4 | 114 |
Accrued payroll and payroll-related costs | 51.7 | 49.5 |
Accrued interest | 81 | 29 |
Medicaid lawsuit liability | 21.4 | 16.5 |
Opioid-Related Litigation Settlement liability, Current | 400 | 200 |
Accrued and other current liabilities | 256.8 | 290.7 |
Liabilities, Current | 3,255.3 | 743.8 |
Long-term debt | 737.6 | 3,027.7 |
Opioid-Related Litigation Settlement liability | 258 | 379.9 |
Acthar Gel-Related Settlement, Non-current | 65.8 | 75 |
Pension and postretirement benefits | 41 | 41 |
Environmental liabilities | 35.2 | 35.8 |
Other income tax liabilities | 18.9 | 18.2 |
Other liabilities | 69.7 | 78.7 |
Liabilities | 4,481.5 | 4,400.1 |
Preferred shares | 0 | 0 |
Ordinary A shares | 0 | 0 |
Ordinary shares | $ 0.1 | $ 0.1 |
Preferred shares, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized (in shares) | shares | 500,000,000 | 500,000,000 |
Preferred shares, shares issued (in shares) | shares | 0 | 0 |
Preferred shares, shares outstanding (in shares) | shares | 0 | 0 |
Deferred Tax Assets, Net | $ 0 | $ 475.5 |
Ordinary shares, shares issued (in shares) | shares | 13,353,356 | 13,170,932 |
Ordinary shares, shares authorized (in shares) | shares | 500,000,000 | 500,000,000 |
Common Stock, Shares, Outstanding | shares | 13,289,180 | 13,170,932 |
Ordinary shares, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Treasury Stock, Common, Shares | shares | 64,176 | 0 |
Additional Paid in Capital | $ 2,196.1 | $ 2,191 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 14.6 | 10.8 |
Retained deficit | (1,585.3) | (588.2) |
Stockholders' Equity Attributable to Parent | 625.4 | 1,613.7 |
Liabilities and Equity | 5,106.9 | 6,013.8 |
Ordinary shares held in treasury at cost | (0.1) | 0 |
Current Assets: | ||
Cash and cash equivalents | 480.6 | 409.5 |
Accounts receivable, less allowance for doubtful accounts of $4.0 and $4.4 | 391.2 | 405.3 |
Inventories | 860.5 | 947.6 |
Prepaid expenses and other current assets | 123.2 | 273.4 |
Total current assets | 1,855.5 | 2,035.8 |
Property, plant and equipment, net | 453.2 | 457.6 |
Intangible assets, net | 2,581.3 | 2,843.8 |
Other assets | 216.9 | 201.1 |
Total Assets | 5,106.9 | 6,013.8 |
Current Liabilities: | ||
Current maturities of long-term debt | 2,361 | 44.1 |
Accounts payable | 83.4 | 114 |
Accrued payroll and payroll-related costs | 51.7 | 49.5 |
Accrued interest | 81 | 29 |
Accrued and other current liabilities | 256.8 | 290.7 |
Total current liabilities | 3,255.3 | 743.8 |
Pension and postretirement benefits | 41 | 41 |
Environmental liabilities | 35.2 | 35.8 |
Other income tax liabilities | 18.9 | 18.2 |
Other liabilities | 69.7 | 78.7 |
Total Liabilities and Shareholders' Equity | 5,106.9 | 6,013.8 |
Other liabilities | 4,481.5 | 4,400.1 |
Shareholders' Equity: | ||
Preferred shares | $ 0 | $ 0 |
Preferred shares, shares outstanding (in shares) | shares | 0 | 0 |
Ordinary A shares | $ 0 | $ 0 |
Ordinary shares | 0.1 | 0.1 |
Additional Paid in Capital | 2,196.1 | 2,191 |
Retained deficit | (1,585.3) | (588.2) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 14.6 | 10.8 |
Total Shareholders' Equity | $ 625.4 | $ 1,613.7 |
Ordinary A | ||
Ordinary shares, shares issued (in shares) | shares | 0 | 0 |
Ordinary shares, shares authorized (in shares) | shares | 40,000 | 40,000 |
Shareholders' Equity: | ||
Ordinary A shares, shares outstanding (in shares) | shares | 0 | 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) $ in Millions | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2023 € / shares | Dec. 30, 2022 USD ($) $ / shares shares | Dec. 30, 2022 € / shares |
Allowance for doubtful accounts | $ | $ 4 | $ 4.4 | ||
Preferred shares, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Preferred shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Preferred shares, shares issued (in shares) | 0 | 0 | ||
Preferred shares, shares outstanding (in shares) | 0 | 0 | ||
Ordinary shares, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Ordinary shares, shares issued (in shares) | 13,353,356 | 13,170,932 | ||
Ordinary shares, shares outstanding (in shares) | 13,289,180 | 13,170,932 | ||
Ordinary A | ||||
Ordinary shares, par value (in usd per share) | € / shares | € 1 | € 1 | ||
Ordinary shares, shares authorized (in shares) | 40,000 | 40,000 | ||
Ordinary shares, shares issued (in shares) | 0 | 0 | ||
Ordinary A shares, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows $ in Millions | 1 Months Ended | 6 Months Ended | |
Jul. 01, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 16, 2022 USD ($) | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ (0.2) | $ (1.1) | $ (3.9) |
Net loss | (63.7) | ||
Depreciation and amortization | 48.4 | 286.2 | 321.8 |
Deferred income taxes | (6.4) | 475.5 | (473) |
Reorganization Items, non-cash | 0 | 0 | 425.4 |
Accretion Expense | 7.7 | 138.6 | 0 |
Other Noncash Income (Expense) | 6.1 | (16.8) | (35.3) |
Increase (Decrease) in Accounts Receivable | (17) | (14.4) | (49.8) |
Increase (Decrease) in Inventories | (24.6) | (75.7) | 33.2 |
Accounts payable | (11.7) | (24.5) | (3.6) |
Income taxes | (4.1) | 159.4 | (26.9) |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 21.2 | 29.3 | (2.5) |
Net Cash Provided by (Used in) Operating Activities | (15.5) | 121 | (642.3) |
Payments to Acquire Property, Plant, and Equipment | 3.7 | 26.3 | 33.4 |
Payments for (Proceeds from) Other Investing Activities | 0 | (0.7) | (0.4) |
Net Cash Provided by (Used in) Investing Activities | 61.3 | (25.6) | (33) |
Repayment of Long-term Debt, Long-term Lease Obligation, and Capital Security | 1.7 | 22 | 904.6 |
Net Cash Provided by (Used in) Financing Activities | (1.7) | (22.1) | (278.7) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 43.9 | 72.2 | (957.9) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 491.2 | 538.9 | 447.3 |
Cash and cash equivalents | 354.7 | 480.6 | 297.9 |
Restricted Cash and Investments, Current | 100.1 | 22.7 | 113 |
Restricted Cash and Investments, Noncurrent | 36.4 | 35.6 | 36.4 |
Repurchase of shares | 0 | (0.1) | 0 |
Payments of claims | 0 | 0 | (629) |
Proceeds from divestitures, net of cash | 65 | 0 | 0 |
Issuance of external debt | 0 | 0 | 650 |
Debt financing costs | 0 | 0 | (24.1) |
Cash Flows From Operating Activities: | |||
Net loss | (63.7) | ||
Adjustments to reconcile net cash from operating activities: | |||
Depreciation and amortization | 48.4 | 286.2 | 321.8 |
Deferred income taxes | (6.4) | 475.5 | (473) |
Reorganization Items, non-cash | 0 | 0 | 425.4 |
Other non-cash items | (6.1) | 16.8 | 35.3 |
Changes in assets and liabilities: | |||
Accounts receivable, net | 17 | 14.4 | 49.8 |
Inventories | 24.6 | 75.7 | (33.2) |
Accounts payable | (11.7) | (24.5) | (3.6) |
Income taxes | (4.1) | 159.4 | (26.9) |
Other | (21.2) | (29.3) | 2.5 |
Net Cash From Operating Activities | (15.5) | 121 | (642.3) |
Cash Flows From Investing Activities: | |||
Capital expenditures | (3.7) | (26.3) | (33.4) |
Other | 0 | 0.7 | 0.4 |
Net Cash From Investing Activities | 61.3 | (25.6) | (33) |
Cash Flows From Financing Activities: | |||
Repayment of external debt | (1.7) | (22) | (904.6) |
Net Cash Provided From Financing Activities | (1.7) | (22.1) | (278.7) |
Net change in cash, cash equivalents and restricted cash | 43.9 | 72.2 | (957.9) |
Cash, cash equivalents and restricted cash at beginning of period | 447.3 | 466.7 | 1,405.2 |
Cash, cash equivalents and restricted cash at end of period | 491.2 | 538.9 | 447.3 |
Cash and cash equivalents, end of period | 354.7 | 480.6 | 297.9 |
Restricted Cash and Investments, Current | 100.1 | 22.7 | 113 |
Restricted Cash and Investments, Noncurrent | 36.4 | 35.6 | 36.4 |
Retained Earnings (Deficit) | |||
Net loss | (63.7) | (997.1) | (313.1) |
Cash Flows From Operating Activities: | |||
Net loss | (63.7) | (997.1) | (313.1) |
Additional Paid-In Capital | |||
Share-based compensation | 0 | 5.3 | 1.7 |
Adjustments to reconcile net cash from operating activities: | |||
Share-based compensation | $ 0 | $ 5.3 | $ 1.7 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Shareholders' Equity Statement - USD ($) $ in Millions | Total | Ordinary Shares | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock, Common |
Shares, Outstanding | 94,300,000 | 9,600,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 313.4 | $ 18.9 | $ 5,597.8 | $ (3,678.9) | $ (8.3) | $ (1,616.1) |
Net loss | (119.6) | (119.6) | ||||
Share-based compensation | 1.2 | 1.2 | ||||
Ending balance at Apr. 01, 2022 | 195 | 18.9 | 5,599 | (3,798.5) | (8.3) | (1,616.1) |
Beginning balance at Dec. 31, 2021 | 313.4 | 18.9 | 5,597.8 | (3,678.9) | (8.3) | (1,616.1) |
Net loss | (313.1) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.5) | |||||
Ending balance at Jun. 16, 2022 | 2,203.6 | $ 0.1 | 2,203.5 | 0 | 0 | $ 0 |
Shares, Outstanding | 94,300,000 | 9,600,000 | ||||
Beginning balance at Apr. 01, 2022 | 195 | $ 18.9 | 5,599 | (3,798.5) | (8.3) | $ (1,616.1) |
Net loss | (193.5) | (193.5) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.5) | (1.5) | ||||
Share-based compensation | 0.5 | 0.5 | ||||
Cancellation of Predecessor equity | $ (0.5) | $ (18.9) | (5,599.5) | 3,992 | 9.8 | $ 1,616.1 |
Cancellation of Predecessor equity, Shares | (94,300,000) | (9,600,000) | ||||
Stock Issued During Period, Shares, New Issues | 13,200,000 | |||||
Stock Issued During Period, Value, New Issues | $ 2,189.7 | $ 0.1 | 2,189.6 | |||
Adjustments to Additional Paid in Capital, Warrant Issued | 13.9 | 13.9 | ||||
Ending balance at Jun. 16, 2022 | 2,203.6 | $ 0.1 | 2,203.5 | 0 | 0 | $ 0 |
Shares, Outstanding | 13,200,000 | 0 | ||||
Net loss | (63.7) | (63.7) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.7) | (1.7) | ||||
Ending balance at Jul. 01, 2022 | $ 2,138.2 | $ 0.1 | 2,203.5 | (63.7) | (1.7) | $ 0 |
Shares, Outstanding | 13,200,000 | 0 | ||||
Shares, Outstanding | 13,200,000 | 0 | ||||
Beginning balance, ordinary shares (in shares) at Dec. 30, 2022 | 13,170,932 | |||||
Beginning balance at Dec. 30, 2022 | $ 1,613.7 | $ 0.1 | 2,191 | (588.2) | 10.8 | $ 0 |
Net loss | (249.3) | (249.3) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (2.6) | (2.6) | ||||
Share-based compensation | 2.6 | 2.6 | ||||
Ending balance at Mar. 31, 2023 | $ 1,364.4 | 0.1 | 2,193.6 | (837.5) | 8.2 | 0 |
Beginning balance, ordinary shares (in shares) at Dec. 30, 2022 | 13,170,932 | |||||
Beginning balance at Dec. 30, 2022 | $ 1,613.7 | 0.1 | 2,191 | (588.2) | 10.8 | 0 |
Net loss | (997.1) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 3.8 | |||||
Ending balance, ordinary shares (in shares) at Jun. 30, 2023 | 13,353,356 | |||||
Ending balance at Jun. 30, 2023 | $ 625.4 | $ 0.1 | 2,196.1 | (1,585.3) | 14.6 | $ (0.1) |
Shares, Outstanding | 13,200,000 | 0 | ||||
Beginning balance at Mar. 31, 2023 | 1,364.4 | $ 0.1 | 2,193.6 | (837.5) | 8.2 | $ 0 |
Net loss | (747.8) | (747.8) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ 6.4 | 6.4 | ||||
Vesting of restricted shares (in usd) | $ (0.1) | |||||
Vesting of restricted shares (in shares) | (100,000) | 200,000 | 100,000 | |||
Share-based compensation | $ 2.5 | 2.5 | ||||
Ending balance, ordinary shares (in shares) at Jun. 30, 2023 | 13,353,356 | |||||
Ending balance at Jun. 30, 2023 | $ 625.4 | $ 0.1 | $ 2,196.1 | $ (1,585.3) | $ 14.6 | $ (0.1) |
Shares, Outstanding | 13,400,000 | 100,000 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | 1. Background and Basis of Presentation Background Mallinckrodt plc is a global business of multiple wholly owned subsidiaries (collectively, "Mallinckrodt" or "the Company") that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. Areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, hepatology, nephrology, pulmonology, ophthalmology and oncology; immunotherapy and neonatal respiratory critical care therapies; analgesics; cultured skin substitutes and gastrointestinal products. The Company operates in two reportable segments, which are further described below: • Specialty Brands includes innovative specialty pharmaceutical brands; and • Specialty Generics includes niche specialty generic drugs and active pharmaceutical ingredients ("API(s)"). The Company owns or has rights to use the trademarks and trade names that are used in conjunction with the operation of its business. One of the more important trademarks that the Company owns or has rights to use that appears in this Quarterly Report on Form 10-Q is "Mallinckrodt," which is a registered trademark or the subject of pending trademark applications in the United States ("U.S.") and other jurisdictions. Solely for convenience, the Company only uses the ™ or ® symbols the first time any trademark or trade name is mentioned in the following notes. Such references are not intended to indicate in any way that the Company will not assert, to the fullest extent permitted under applicable law, its rights to its trademarks and trade names. Each trademark or trade name of any other company appearing in the following notes is, to the Company's knowledge, owned by such other company. Basis of Presentation On October 12, 2020 ("Petition Date"), Mallinckrodt plc and substantially all of its U.S. subsidiaries, including certain subsidiaries of Mallinckrodt plc operating the Specialty Generics business ("Specialty Generics Subsidiaries") and the Specialty Brands business ("Specialty Brands Subsidiaries"), and certain of the Company's international subsidiaries (together with the Company, Specialty Generics Subsidiaries and Specialty Brands Subsidiaries, the "Debtors") voluntarily initiated proceedings ("Chapter 11 Cases") under chapter 11 of title 11 ("Chapter 11") of the United States Code ("Bankruptcy Code"). On March 2, 2022, the U.S. Bankruptcy Court for the District of Delaware ("Bankruptcy Court") entered an order confirming the fourth amended plan of reorganization (with technical modifications) ("Plan"). Subsequent to the filing of the Chapter 11 Cases, Chapter 11 proceedings commenced by a limited subset of the Debtors were recognized and given effect in Canada, and separately the High Court of Ireland made an order confirming a scheme of arrangement on April 27, 2022, which is based on and consistent in all respects with the Plan ("Scheme of Arrangement"). On June 8, 2022, the Bankruptcy Court entered an order approving a minor modification to the Plan. The Plan became effective on June 16, 2022 ("Effective Date"), and on such date the Company emerged from the Chapter 11 and the Scheme of Arrangement became effective concurrently. Upon emergence from Chapter 11, the Company adopted fresh-start accounting in accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 852 - Reorganizations , and became a new entity for financial reporting purposes as of the Effective Date. References to "Successor" relate to the financial position as of June 16, 2022 and results of operations of the reorganized Company subsequent to June 16, 2022, while references to "Predecessor" relate to the financial position prior to June 16, 2022 and results of operations of the Company prior to, and including, June 16, 2022. All emergence-related transactions of the Predecessor were recorded as of June 16, 2022. Accordingly, the unaudited condensed consolidated financial statements for the Successor are not comparable to the unaudited condensed consolidated financial statements for the Predecessor. Reorganization items, net for the Successor represents amounts incurred after the Effective Date that directly resulted from Chapter 11 and were entirely comprised of professional fees associated with the implementation of the Plan. Reorganization items, net for the Predecessor represents amounts incurred after the Petition Date but prior to emergence as a direct result of the Chapter 11 Cases and were comprised of bankruptcy-related professional fees and adjustments to reflect the carrying value of liabilities subject to compromise ("LSTC") at their estimated allowed claim amounts, as such adjustments were approved by the Bankruptcy Court. Cash paid for reorganization items, net for the six months ended June 30, 2023 (Successor), for the period from June 17, 2022 through July 1, 2022 (Successor), and the period from January 1, 2022 through June 16, 2022 (Predecessor), was $14.6 million, zero, and $304.1 million, respectively. The unaudited condensed consolidated financial statements have been prepared in U.S. dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"). The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results may differ from those estimates. The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and entities in which they own or control more than 50.0% of the voting shares, or have the ability to control through similar rights. In the opinion of management, all adjustments necessary for a fair statement of results of operations, cash flows and financial position have been made. All intercompany balances and transactions have been eliminated in consolidation and all normal recurring adjustments necessary for a fair presentation have been included in the results reported. The results of entities disposed of are included in the unaudited condensed consolidated financial statements up to the date of disposal, and where appropriate, these operations have been reported in discontinued operations. Divestitures of product lines and businesses not meeting the criteria for discontinued operations have been reflected in operating loss. The fiscal year end balance sheet data was derived from audited consolidated financial statements, but does not include all of the annual disclosures required by GAAP; accordingly these unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited annual consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 30, 2022 filed with the U.S. Securities and Exchange Commission ("SEC") on March 3, 2023 ("Annual Report on Form 10-K"). Going Concern The accompanying unaudited condensed consolidated financial statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Beginning on May 17, 2023, the Company received unsolicited letters on behalf of various parties holding substantial positions across the Company's capital structure, including certain holders of the Company's (i) first lien senior secured term loans due 2027 ("Term Loans") issued under the credit agreement, dated as of June 16, 2022, by and among the Company, certain of its subsidiaries, the lenders party thereto, Acquiom Agency Services LLC and Seaport Loan Products LLC, as co-administrative agents, and Deutsche Bank AG New York Branch, as collateral agent ("Term Loan Credit Agreement") (ii) 10.00% first lien senior secured notes due 2025 ("2025 First Lien Notes"), (iii) 11.50% first lien senior secured notes due 2028 ("2028 First Lien Notes"), (iv) 10.00% second lien senior secured notes due 2025 ("2025 Second Lien Notes"), and (v) 10.00% second lien senior secured notes due 2029 ("2029 Second Lien Notes"). Under the Board of Directors' direction, the Company has been analyzing various proposals and engaging in discussions with various stakeholders, including such creditors and representatives of the Opioid Master Disbursement Trust II ("Trust"). As the Company’s discussions with its stakeholders proceeded, the Company determined not to make interest payments that were due on June 15, 2023 on its 2028 First Lien Notes and 2029 Second Lien Notes. Substantial doubt about the Company's ability to continue as a going concern exists in light of events of default arising from the failure to make these interest payments before the expiration of applicable grace periods, which events of default were continuing as of the date of this report. While the Company has sufficient liquidity to make such interest payments (as well as the $200.0 million installment payment originally due to be paid to the Trust on June 16, 2023 with respect to our opioid-related litigation settlement obligation ("Opioid Deferred Cash Payment"), which the Trust has agreed to extend until August 15, 2023), the failure to make the above described interest payments has resulted in events of default under the 2028 First Lien Notes and 2029 Second Lien Notes and, absent prompt cure of such events of default or discharge of the 2028 First Lien Notes and 2029 Second Lien Notes, cross-defaults under the Term Loans issued under the Term Loan Credit Agreement and the receivables financing facility pursuant to the ABL credit agreement, dated as of June 16, 2022 by and among ST US AR Finance LLC, the lenders party thereto, the L/C Issuers (as defined in the ABL Credit Agreement) party thereto and Barclays Bank plc, as administrative agent and collateral agent ("ABL Credit Agreement"), permitting specified portions of the creditors in respect of the 2028 First Lien Notes, 2029 Second Lien Notes, Term Loans and/or the ABL Credit Agreement to accelerate such obligations (which, in the case of the 2028 First Lien Notes and the 2029 Second Lien Notes, would include a prepayment premium) and terminate any applicable commitments to make additional loans under the ABL Credit Agreement. Although the Company has entered into forbearance agreements with certain holders of, and agents under, the 2028 First Lien Notes, 2029 Second Lien Notes, Term Loans, and the loans under the ABL Credit Agreement, such agreements expire on August 15, 2023 and it is possible that such obligations may be accelerated and applicable commitments to make additional loans under the ABL Credit Agreement may be terminated even before such date, notwithstanding such forbearance agreements. If such obligations were to be accelerated, the Company would not have sufficient liquidity to meet all such obligations as of the date of issuance of this report. Moreover, if the creditors in respect of the 2028 First Lien Notes, 2029 Second Lien Notes or the Term Loans were to accelerate such obligations (without such obligations being discharged), it would permit the Company's remaining noteholders and/or the Trust to accelerate their respective obligations in respect of the Company's remaining secured notes and opioid-related litigation settlement obligation. See Note 11 for further information with respect to the Company's opioid-related litigation settlement obligation, and Note 14 for further information on these matters, including other significant developments with respect to the Company's funded debt obligations. The Company's Board of Directors continues to actively evaluate the Company's financial situation and consider options, and the Company is actively engaged in advanced discussions with various stakeholders. These discussions contemplate entering into a restructuring support agreement with various stakeholders that would include, among other things, the Company's initiating Chapter 11 proceedings under the U.S. Bankruptcy Code or analogous foreign bankruptcy or insolvency laws. However, there can be no assurance that the Company will reach an agreement in a timely manner, or at all, on terms of a restructuring support agreement that the Board of Directors would support. Because plans to resolve the risks to the Company's ability to continue as a going concern have not yet been finalized and are not fully within the Company's control, and therefore cannot be deemed probable, the Company has concluded that management's plans at this stage do not alleviate substantial doubt about the Company's ability to continue as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts and classification of liabilities that might result from the outcome of this uncertainty. See Note 4 for discussion regarding the valuation allowance on the Company's net deferred tax assets that was recorded within the unaudited condensed consolidated balance sheet as of June 30, 2023 (Successor) as a result of considering the aforementioned substantial doubt in the Company's assessment of the realizability of certain net deferred tax assets. Fiscal Year The Company reports its results based on a "52-53 week" year ending on the last Friday of December. Unless otherwise indicated, the three and six months ended June 30, 2023 (Successor) refers to the thirteen and twenty-six week period ended June 30, 2023 (Successor). The period June 17, 2022 through July 1, 2022 reflects the Successor period, while the period April 2, 2022 through, and including, June 16, 2022 and the period January 1, 2022 through, and including, June 16, 2022 reflects the Predecessor periods. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers Revenue from Contracts with Customers (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 2. Revenue from Contracts with Customers Product Sales Revenue See Note 13 for presentation of the Company's net sales by product family. Reserves for variable consideration The following table reflects activity in the Company's sales reserve accounts: Rebates and Chargebacks (1) Product Returns Other Sales Deductions Total Balance as of December 31, 2021 (Predecessor) $ 241.8 $ 21.5 $ 9.5 $ 272.8 Provisions 693.4 5.2 17.1 715.7 Payments or credits (684.6) (8.1) (18.9) (711.6) Balance as of June 16, 2022 (Predecessor) $ 250.6 $ 18.6 $ 7.7 $ 276.9 Balance as of June 17, 2022 (Successor) $ 250.6 $ 18.6 $ 7.7 $ 276.9 Provisions 68.5 0.5 1.5 70.5 Payments or credits (81.4) (0.7) (1.9) (84.0) Balance as of July 1, 2022 (Successor) $ 237.7 $ 18.4 $ 7.3 $ 263.4 Balance as of December 30, 2022 (Successor) $ 265.3 $ 16.0 $ 12.7 $ 294.0 Provisions 726.0 5.8 21.0 752.8 Payments or credits (748.3) (8.6) (25.4) (782.3) Balance as of June 30, 2023 (Successor) $ 243.0 $ 13.2 $ 8.3 $ 264.5 (1) Includes $91.3 million and $89.3 million of accrued Medicaid and $36.4 million and $55.3 million of accrued rebates as of June 30, 2023 (Successor) and December 30, 2022 (Successor), respectively, included within accrued and other current liabilities in the unaudited condensed consolidated balance sheets. Product sales transferred to customers at a point in time and over time were as follows: Successor Predecessor Three Months Period from Period from Product sales transferred at a point in time 83.6 % 83.8 % 82.4 % Product sales transferred over time 16.4 16.2 17.6 Successor Predecessor Six Months Period from Period from Product sales transferred at a point in time 82.0 % 83.8 % 80.8 % Product sales transferred over time 18.0 16.2 19.2 Transaction price allocated to the remaining performance obligations The following table includes estimated revenue from contracts extending greater than one year for certain of the Company's hospital products that are expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of June 30, 2023 (Successor): Remainder of Fiscal 2023 $ 39.6 Fiscal 2024 37.7 Fiscal 2025 13.2 Thereafter 0.2 Product Royalty Revenues The Company licenses certain rights to Amitiza ® (lubiprostone) ("Amitiza") to third parties in exchange for royalties on net sales of the product. The Company receives a double-digit royalty based on a percentage of the gross profits of the licensed products sold during the term of the agreements. The Company recognizes such royalty revenue as the related sales occur. The associated royalty revenue recognized was as follows: Successor Predecessor Three Months Period from Period from Royalty revenue $ 0.4 $ 3.0 $ 14.9 |
Restructuring and Related Charg
Restructuring and Related Charges | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | 3. Restructuring and Related Charges During fiscal 2021 and 2018, the Company launched restructuring programs designed to improve its cost structure, neither of which has a specified time period. Charges of $50.0 million to $100.0 million were provided for under the 2021 program and $100.0 million to $125.0 million were provided for under the 2018 program. The 2021 program will commence upon substantial completion of the 2018 program, and has not commenced as of June 30, 2023 (Successor). Net restructuring and related charges by segment were as follows: Successor Predecessor Three Months Period from Period from Corporate $ (0.2) $ 1.1 $ 2.8 Restructuring charges, net $ (0.2) $ 1.1 $ 2.8 Successor Predecessor Six Months Period from Period from Specialty Generics $ — $ — $ 3.5 Corporate 1.7 1.1 6.1 Restructuring and related charges, net 1.7 1.1 9.6 Less: accelerated depreciation (0.7) — — Restructuring charges, net $ 1.0 $ 1.1 $ 9.6 Net restructuring and related charges by program were comprised of the following: Successor Predecessor Three Months Period from Period from 2018 Program $ (0.2) $ 1.1 $ 2.8 Less: non-cash charges, including accelerated depreciation — (0.2) (1.5) Total charges expected to be settled in cash $ (0.2) $ 0.9 $ 1.3 Successor Predecessor Six Months Period from Period from 2018 Program $ 1.7 $ 1.1 $ 9.6 Less: non-cash charges, including accelerated depreciation (0.8) (0.2) (3.6) Total charges expected to be settled in cash $ 0.9 $ 0.9 $ 6.0 The following table summarizes cash activity for restructuring reserves for the 2018 Program, which primarily related to employee severance and benefits: 2018 Program Balance as of December 30, 2022 (Successor) $ 4.6 Charges from continuing operations 1.2 Changes in estimate from continuing operations (0.3) Cash payments (5.3) Balance as of June 30, 2023 (Successor) $ 0.2 As of June 30, 2023 (Successor), net restructuring and related charges incurred cumulative to date for the 2018 Program were as follows: Successor Predecessor Specialty Brands $ — $ 3.1 Specialty Generics 0.8 18.5 Corporate 13.0 84.0 $ 13.8 $ 105.6 All of the restructuring reserves were included in accrued and other current liabilities on the Company's unaudited condensed consolidated balance sheets. Amounts paid in the future may differ from the amount currently recorded. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 16, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | 4. Income Taxes The Company's income tax expense (benefit) was as follows: Successor Predecessor Three Months Period from Period from Current tax expense (benefit) $ 19.2 $ (3.3) $ (18.9) Deferred tax expense (benefit) 508.9 (6.4) (472.5) Income tax expense (benefit) $ 528.1 $ (9.7) $ (491.4) Successor Predecessor Six Months Period from Period from Current tax expense (benefit) $ 21.8 $ (3.3) $ (23.9) Deferred tax expense (benefit) 475.5 (6.4) (473.4) Income tax expense (benefit) $ 497.3 $ (9.7) $ (497.3) As further discussed in Note 1, the Company concluded that there is substantial doubt about its ability to continue as a going concern within one year from the date of issuance of this report. The Company considered this in determining that certain net deferred tax assets were no longer more likely than not realizable. Therefore, a valuation allowance of $475.5 million was placed on the net deferred tax assets as of the beginning of the year. Additionally, a valuation allowance was recorded to offset the current year deferred tax activity, predominately related to intangible asset amortization, accretion expense associated with our settlement obligations and debt, and inventory step-up amortization expense. As a result, all of the Company’s net deferred tax assets as of the six months ended June 30, 2023 (Successor) are fully offset by a valuation allowance. The Company recognized income tax expense of $528.1 million and $497.3 million on losses from continuing operations before income taxes of $219.7 million and $499.8 million for the three and six months ended June 30, 2023 (Successor), respectively. This resulted in effective tax rates of negative 240.4% and negative 99.5%, respectively. The income tax provision for both the three and six months ended June 30, 2023 (Successor) consisted of deferred income tax expense related to the valuation allowance noted above, recorded against the Company's net deferred tax assets, and current income tax expense related to a decrease in prepaid income taxes. The income tax expense of $528.1 million for the three months ended June 30, 2023 (Successor) consisted of the valuation allowance of $475.5 million placed on the net deferred tax assets as of the beginning of the year that were no longer more likely than not realizable, $29.9 million attributed to the valuation allowance recorded on current year deferred tax activity, $20.9 million attributed to a decrease in prepaid income taxes and $1.8 million predominately attributed to pretax earnings in various jurisdictions. The income tax expense of $497.3 million for the six months ended June 30, 2023 (Successor) consisted of the valuation allowance of $475.5 million placed on the net deferred tax assets as of the beginning of the year that were no longer more likely than not realizable, $20.9 million attributed to a decrease in prepaid income taxes and $2.2 million predominately attributed to pretax earnings in various jurisdictions, offset by $1.3 million attributed to the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. The Company recognized $9.7 million, $491.4 million, and $497.3 million of income tax benefit on $73.4 million, $685.2 million, and $811.3 million of losses from continuing operations before income taxes for the periods from June 17, 2022 through July 1, 2022 (Successor), April 2, 2022 through June 16, 2022 (Predecessor), and January 1, 2022 through June 16, 2022 (Predecessor), respectively. This resulted in effective tax rates of 13.2%, 71.7%, and 61.3%, respectively. The income tax benefit of $9.7 million for the period from June 17, 2022 through July 1, 2022 (Successor) consisted of $8.0 million attributed to pretax earnings in various jurisdictions and $1.7 million attributed to separation costs, reorganization items, net and restructuring charges. The income tax benefit for the period from April 2, 2022 through June 16, 2022 (Predecessor) and the period from January 1, 2022 through June 16, 2022 (Predecessor) primarily consisted of the income tax impacts from reorganization and fresh-start adjustments, including adjustments to the Company's valuation allowance. For the period January 1, 2022 through June 16, 2022 (Predecessor), the Company recorded an income tax benefit of $497.3 million, primarily for reorganization adjustments in the Predecessor period consisting of (1) $1,231.5 million of tax expense for the reduction in federal and state net operating loss (“NOL”) carryforwards from the cancellation of debt income (“CODI”) realized upon emergence and limitations under Sections 382 and 383 of the IRC; (2) $141.3 million of tax expense for the net decrease in deferred tax assets resulting from reorganization adjustments; and (3) $1,270.1 million of tax benefit for the reduction in the valuation allowance on the Company's deferred tax assets; and fresh-start adjustments in the Predecessor period consisting of (4) $297.1 million of tax benefit for the net decrease in deferred tax liabilities resulting from fresh-start adjustments and (5) $285.3 million of tax benefit associated with the release of uncertain tax positions. The remaining tax benefit was attributable to pretax earnings in various jurisdictions during the Predecessor period. During the six months ended June 30, 2023 (Successor), net cash refunds for income taxes were $137.8 million, including refunds of $141.6 million received as a result of provisions in the CARES Act and net payments of $3.8 million related to operational activity. During the period June 17, 2022 through July 1, 2022 (Successor) and the period January 1, 2022 through June 16, 2022 (Predecessor), net cash payments for income taxes were $0.7 million and $3.0 million, respectively. The Company's unrecognized tax benefits, excluding interest, totaled $24.8 million as of both June 30, 2023 (Successor) and December 30, 2022 (Successor). If favorably settled, $15.4 million of unrecognized tax benefits as of June 30, 2023 (Successor) would benefit the effective tax rate. The remaining unrecognized tax benefits are reflected as a write-off of related deferred tax assets. If these unrecognized tax benefits were recognized, the related deferred tax assets would be offset by a valuation allowance. The total amount of accrued interest and penalties related to these obligations was $3.4 million and $2.8 million as of June 30, 2023 (Successor) and December 30, 2022 (Successor), respectively. Within the next twelve months, the unrecognized tax benefits and the related interest and penalties are not expected to significantly change. Certain of the Company's subsidiaries continue to be subject to examination by taxing authorities. The earliest open years subject to examination for both the U.S federal and state jurisdictions and various foreign jurisdictions, including Ireland, Japan, Luxembourg, Switzerland and the United Kingdom is 2013. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 5. Loss per Share Loss per share is computed by dividing net loss by the number of weighted-average shares outstanding during the period. Dilutive securities, including participating securities, have not been included in the computation of loss per share as the Company reported a net loss from continuing operations during all periods presented below and therefore, the impact would be anti-dilutive. The weighted-average number of shares outstanding used in the computations of both basic and diluted loss per share were as follows ( in millions ): Successor Predecessor Three Months Period from Period from Basic and diluted 13.2 13.2 84.8 Successor Predecessor Six Months Period from Period from Basic and diluted 13.2 13.2 84.8 The computation of diluted weighted-average shares outstanding for the three and six months ended June 30, 2023 (Successor) excluded approximately zero shares of equity awards. The computation of diluted weighted-average shares outstanding for the period June 17, 2022 through July 1, 2022 (Successor) excluded approximately 3.2 million shares of warrants that were issued on the Effective Date because the effect would have been anti-dilutive. The computation of diluted weighted-average shares outstanding for both the periods April 2, 2022 through June 16, 2022 (Predecessor) and the period January 1, 2022 through June 16, 2022 (Predecessor) excluded approximately 0.5 million shares of equity awards because the effect would have been anti-dilutive, respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory, Net [Abstract] | |
Inventories | 6. Inventories Inventories were comprised of the following at the end of each period: Successor June 30, December 30, Raw materials and supplies $ 102.2 $ 80.2 Work in process 485.9 552.1 Finished goods 272.4 315.3 $ 860.5 $ 947.6 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment | |
Property, Plant and Equipment Disclosure | 7. Property, Plant and Equipment The gross carrying amount and accumulated depreciation of property, plant and equipment were comprised of the following at the end of each period: Successor June 30, December 30, Property, plant and equipment, gross $ 503.0 $ 485.0 Less: accumulated depreciation (49.8) (27.4) Property, plant and equipment, net $ 453.2 $ 457.6 Depreciation expense was as follows: Successor Predecessor Three Months Period from Period from Depreciation expense $ 11.8 $ 2.9 $ 17.9 Successor Predecessor Six Months Period from Period from Depreciation expense $ 23.7 $ 2.9 $ 40.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. Intangible Assets The gross carrying amount and accumulated amortization of intangible assets were comprised of the following at the end of each period: Successor June 30, 2023 December 30, 2022 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable: Completed technology $ 3,041.2 $ 581.2 $ 3,041.2 $ 318.7 Non-Amortizable: In-process research and development 121.3 121.3 Intangible asset amortization expense was as follows: Successor Predecessor Three Months Period from Period from Amortization expense $ 129.3 $ 45.5 $ 126.7 Successor Predecessor Six Months Period from Period from Amortization expense $ 262.5 $ 45.5 $ 281.8 The estimated aggregate amortization expense on intangible assets owned by the Company is expected to be as follows: Successor Remainder of Fiscal 2023 $ 246.7 Fiscal 2024 446.1 Fiscal 2025 385.1 Fiscal 2026 337.5 Fiscal 2027 284.4 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | 9. Debt Debt was comprised of the following at the end of each period: Successor June 30, 2023 December 30, 2022 Principal Carrying Value Unamortized Discount and Debt Issuance Costs Principal Carrying Value Unamortized Discount and Debt Issuance Costs Current maturities of long-term debt: Receivables financing facility due June 2026 $ — $ — $ 1.2 $ — $ — $ — 2017 Replacement Term loan due September 2027 1,356.7 1,220.8 — 34.8 34.8 — 2018 Replacement Term loan due September 2027 360.1 326.3 — 9.3 9.3 — 11.50% first lien senior secured notes due December 2028 650.0 650.0 19.0 — — — 10.00% second lien senior secured notes due June 2029 328.3 184.1 — — — — Total current debt 2,695.1 2,381.2 20.2 44.1 44.1 — Long-term debt: 10.00% first lien senior secured notes due April 2025 495.0 480.0 — 495.0 475.9 — 10.00% second lien senior secured notes due April 2025 321.9 257.6 — 321.9 242.2 — 2017 Replacement Term loan due September 2027 — — — 1,339.3 1,187.3 — 2018 Replacement Term loan due September 2027 — — — 355.5 317.6 — 11.50% first lien senior secured notes due December 2028 — — — 650.0 650.0 20.8 10.00% second lien senior secured notes due June 2029 — — — 328.3 175.5 — Total long-term debt 816.9 737.6 — 3,490.0 3,048.5 20.8 Total debt $ 3,512.0 $ 3,118.8 $ 20.2 $ 3,534.1 $ 3,092.6 $ 20.8 As previously disclosed, the Company determined not to make interest payments that were due on June 15, 2023 on its 2028 First Lien Notes and 2029 Second Lien Notes. The failure to make these interest payments constituted an event of default under each such series of notes because such failure continued unremedied after the expiration of the applicable grace period, permitting specified portions of the creditors in respect thereof to accelerate such obligations (which would include a prepayment premium). The occurrence of such events of default, unless promptly cured and absent the 2028 First Lien Notes and the 2029 Second Lien Notes being discharged, also constitute an event of default under the Company’s Term Loans and ABL Credit Agreement, permitting specified portions of the creditors in respect thereof to accelerate the obligations in respect thereof and terminate any applicable commitments to make additional loans under the ABL Credit Agreement. Although, on July 16, 2023, the Company entered into certain forbearance agreements with holders of more than 75% in principal amount of the outstanding 2028 First Lien Notes, holders of a majority in principal amount of each of the 2029 Second Lien Notes and the Term Loans (and the administrative agent with respect to the Term Loans), and the lenders and agents under the ABL Credit Agreement pursuant to which the applicable creditors and agents party thereto have agreed to forbear from exercising any rights or remedies with respect to the above described events of default, such agreements expire on August 15, 2023, and it is possible that such obligations may be accelerated and any applicable commitments to make additional loans under the ABL Credit Agreement may be terminated even before such date, notwithstanding such forbearance agreements. Refer to Note 14 for further information. As a result of the above described events of default, the carrying values of the 2028 First Lien Notes, the 2029 Second Lien Notes, the Term Loans and the ABL Credit Agreement were classified as current on the unaudited condensed consolidated balance sheet as of June 30, 2023 (Successor). The Company's debt instruments are further described within the notes to the financial statements included within the Company's Annual Report on Form 10-K. Applicable interest rate As of June 30, 2023 (Successor), the applicable interest rate and outstanding principal on the Company's debt instruments were as follows: Applicable Interest Rate Outstanding Principal Fixed-rate instruments 10.54 % $ 1,795.2 2017 Replacement Term Loan due September 2027 (1) 10.15 1,356.7 2018 Replacement Term Loan due September 2027 (1) 10.40 360.1 |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2023 | |
Guarantees [Abstract] | |
Guarantees | 10. Guarantees In disposing of assets or businesses, the Company has from time to time provided representations, warranties and indemnities to cover various risks and liabilities, including unknown damage to assets, environmental risks involved in the sale of real estate, liability to investigate and remediate environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities related to periods prior to disposition. The Company assesses the probability of potential liabilities related to such representations, warranties and indemnities and adjusts potential liabilities as a result of changes in facts and circumstances. The Company believes, given the information currently available, that the ultimate resolutions will not have a material adverse effect on its financial condition, results of operations and cash flows. In connection with the sale of the Specialty Chemical business (formerly known as Mallinckrodt Baker) in fiscal 2010, the Company agreed to indemnify the purchaser with respect to various matters, including certain environmental, health, safety, tax and other matters. The indemnification obligations relating to certain environmental, health and safety matters have a term of 17 years from the sale, while some of the other indemnification obligations have an indefinite term. The liability relating to all of these indemnification obligations was governed by a contract that was rejected as part of Chapter 11 and is no longer a liability of the Successor Company. The Company was required to pay $30.0 million into an escrow account as collateral to the purchaser. The contract governing the escrow account was assumed in the Chapter 11 proceedings. As of June 30, 2023 (Successor) and December 30, 2022 (Successor), $19.7 million and $19.3 million remained in restricted cash, included in other long-term assets on the unaudited condensed consolidated balance sheets, respectively. As of June 30, 2023 (Successor), the Company does not expect to make future payments related to these indemnification obligations. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies The Company is subject to various legal proceedings and claims, including government investigations, environmental matters, product liability matters, patent infringement claims, antitrust matters, securities class action lawsuits, personal injury claims, employment disputes, contractual and other commercial disputes, and all other legal proceedings, all in the ordinary course of business, including those described below. Although it is not feasible to predict the outcomes of these matters, the Company believes, unless otherwise indicated below, given the information currently available, that their ultimate resolution will not have a material adverse effect on its financial condition, results of operations and cash flows. Governmental Proceedings Acthar Gel-Related Matters SEC Subpoena. In August 2019, the Company received a subpoena from the SEC for documents related to the Company's disclosure of its dispute with the U.S. Department of Health and Human Services ("HHS") and Centers for Medicare and Medicaid Services (together with HHS, the "Agency") concerning the base date average manufacturer price for Acthar ® Gel under the Medicaid Drug Rebate Program, which was also the subject of litigation that the Company filed against the Agency. The SEC issued subsequent subpoenas on January 7, 2022 and September 28, 2022, requesting additional documents from the Company. In connection with the investigation, on January 13, 2023, the SEC staff issued Wells Notices to the Company and individuals, including certain of its current and former executive officers, who were employed during 2019 (collectively, the “Individuals”). The notices indicate that the SEC staff has made a preliminary determination to recommend that the SEC file an enforcement action against the Company that would allege violations of the federal securities laws, and against the Individuals that would allege violations of the federal securities laws and/or aiding and abetting violations of the federal securities laws. The recommendation as to the Company may involve an injunction, a cease-and-desist order and/or other appropriate relief. The actions recommended by the SEC staff would allege, among other things, that (a) the Company improperly omitted to disclose the dispute with the Agency prior to the litigation filed by the Company in federal court on May 21, 2019, and (b) the Company’s disclosure of the civil investigative demand received from the U.S. Attorney’s Office for the District of Massachusetts in January 2019 (“Boston CID”) should have stated that the Boston CID related to the Company’s dispute with the Agency. A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law. Under the SEC procedures, a recipient of a Wells Notice has an opportunity to respond and make a submission to the SEC staff setting forth the recipient’s interests and position in regard to the subject matter of the investigation. The Company believes that it has complied with all applicable laws and regulations, and it has provided a submission explaining the Company’s position and its belief that no enforcement action is warranted or appropriate. The Company understands that the Individuals have provided similar submissions to the SEC staff. The outcome of this matter is uncertain, and as a result, the Company is unable to estimate the potential exposure associated with this matter. Commercial and Securities Litigation Putative Class Action Securities Litigation (Continental General). On July 7, 2023, a putative class action lawsuit was filed against the Company, its Chief Executive Officer ("CEO") Sigurdur Olafsson, its Chief Financial Officer ("CFO") Bryan Reasons, and the Chairman of the Board, Paul Bisaro, in the U.S. District Court for the Southern District of New Jersey, captioned Continental General Insurance Company and Percy Rockdale, LLC v. Mallinckrodt plc et al. , No. 23-cv-03662. The complaint purports to be brought on behalf of all persons who purchased or otherwise acquired Mallinckrodt's securities between June 17, 2022 and June 14, 2023. The lawsuit generally alleges that the defendants made false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder related to the Company’s business, operations, and prospects, including its financial strength, its ability to timely make certain payments related to Mallinckrodt’s settlement of opioid-related litigation and the risk of additional filings for bankruptcy protection. The lawsuit seeks monetary damages in an unspecified amount. The Company intends to vigorously defend itself in this matter. Local 542. In May 2018, the International Union of Operating Engineers ("IUOE") Local 542 filed a non-class complaint against the Company and other defendants in Pennsylvania state court alleging improper pricing and distribution of Acthar Gel, in violation of Pennsylvania's Unfair Trade Practices and Consumer Protection Law, aiding and abetting, unjust enrichment and negligent misrepresentation captioned as Int'l Union of Operating Engineers Local 542 v. Mallinckrodt ARD Inc., et al. Plaintiff filed an amended complaint in August 2018, the Company's objections to which were denied by the court. In January 2021, the Company removed this case to the U.S. District Court for the Eastern District of Pennsylvania ("EDPA"). In March 2021, the EDPA granted the Company's motion to transfer the case to the District of Delaware and denied without prejudice Local 542's motion to remand the case to state court. In June 2021, the District of Delaware referred this case to the Bankruptcy Court in Delaware. On November 17, 2022, Local 542 filed a motion to withdraw the reference to the District Court, and the case was transferred back to the District of Delaware at Case No. 22-cv-01502. On December 22, 2022, Local 542 filed a request for the motion to withdraw the reference to be decided by the EDPA and to permit remand to state court. On December 28, 2022, the case was assigned to Judge Ambro of the United States Court of Appeals for the Third Circuit due to related cases. On June 27, 2023, the Delaware district court entered an order to withdraw reference of the action to the Delaware bankruptcy court and to transfer the case back to the Eastern District of Pennsylvania in order to be remanded to state court. The Company is discussing its dismissal from the case in light of the Bankruptcy Discharge. The Company will vigorously defend itself in this matter both on the merits and as discharged through the bankruptcy. Patent Litigation Mallinckrodt Pharmaceuticals Ireland Limited et al. v. Airgas Therapeutics LLC et al. On December 30, 2022, the Company initiated litigation against Airgas Therapeutics, LLC, Airgas USA LLC, and Air Liquide S.A. (Collectively "Airgas") in the District of Delaware following notice from Airgas of its abbreviated new drug application ("ANDA") submission seeking approval from the FDA for a generic version of INOmax ® (nitric oxide) gas, for inhalation ("INOmax"). The case is at an early stage, with discovery just commencing. At the July 2023 scheduling conference, the court set an initial trial date of March 10, 2025. Airgas's ANDA received final approval from the FDA in July 2023, and according to Airgas' counsel, the original ANDA was filed in April 2011. Many of the patents asserted against Airgas were previously asserted in the District of Delaware against Praxair Distribution, Inc. and Praxair, Inc. (collectively "Praxair") in 2015 and 2016 following Praxair's submissions with FDA seeking approval for a nitric oxide drug product and delivery system. The litigation against Praxair resulted in Praxair's launch of a competitive nitric oxide product. The Company continues to develop and pursue patent protection of next generation nitric oxide delivery systems and additional uses of nitric oxide and intends to vigorously enforce its intellectual property rights against any parties that may seek to market a generic version of the Company's INOmax product and/or next generation delivery systems. Environmental Remediation and Litigation Proceedings The Company is involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites, including those described below. The ultimate cost of site cleanup and timing of future cash outlays is difficult to predict, given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations and alternative cleanup methods. The Company concluded that, as of June 30, 2023 (Successor), it was probable that it would incur remediation costs in the range of $18.1 million to $48.1 million. The Company also concluded that, as of June 30, 2023 (Successor), the best estimate within this range was $36.4 million, of which $1.2 million was included in accrued and other current liabilities and the remainder was included in environmental liabilities on the unaudited condensed consolidated balance sheet as of June 30, 2023 (Successor). While it is not possible at this time to determine with certainty the ultimate outcome of these matters, the Company believes, given the information currently available, that the final resolution of all known claims, after taking into account amounts already accrued, will not have a material adverse effect on its financial condition, results of operations and cash flows. Lower Passaic River, New Jersey . The Company and approximately 70 other companies ("Cooperating Parties Group" or "CPG") are parties to a May 2007 Administrative Order on Consent with the Environmental Protection Agency ("EPA") to perform a remedial investigation and feasibility study ("RI/FS") of the 17-mile stretch known as the Lower Passaic River Study Area (“River”). The Company's potential liability stems from former operations at Lodi and Belleville, New Jersey (the “Lodi facility” and the “Belleville facility” respectively). In April 2014, the EPA issued a revised Focused Feasibility Study ("FFS"), with remedial alternatives to address cleanup of the lower 8-mile stretch of the River. The EPA estimated that the cost for the remediation alternatives ranged from $365.0 million to $3.2 billion and the EPA's preferred approach had an estimated cost of $1.7 billion. In April 2015, the CPG presented a draft of the RI/FS of the River to the EPA that included alternative remedial actions for the entire 17-mile stretch of the River. In March 2016, the EPA issued the Record of Decision ("ROD(s)") for the lower 8 miles of the River with a slight modification on its preferred approach and a revised estimated cost of $1.38 billion. In October 2016, the EPA announced that Occidental Chemicals Corporation had entered into an agreement to develop the remedial design. In August 2018, the EPA finalized a buyout offer of $280,600 with the Company, limited to its former Lodi facility, for the lower 8 miles of the River. In September 2021, the EPA issued the ROD for the upper 9 miles of the River selecting source control as the remedy for the upper 9 miles with an estimated cost of $441.0 million. In September 2022, the Company entered into a conditional $0.3 million Early Cash-Out Consent Decree (“CD”) with the EPA as a buyout for its portion of the upper part of the River related to its former Lodi facility; finalization of the CD is subject to the EPA approval following the public comment period that was extended until a September 22, 2023 court hearing to determine whether the court will hold a Fairness Hearing or whether the EPA will finalize and approve the conditional CD. The portion of the liability related to the Belleville facility was discharged against the Company as a result of the Plan. Any reserves associated with this contingency were included in LSTC as of the Effective Date, and any related liabilities were discharged under the Bankruptcy Code. As of June 30, 2023 (Successor), the Company estimated that its remaining liability related to the River was $21.0 million, which was included within environmental liabilities on the unaudited condensed consolidated balance sheet as of June 30, 2023 (Successor). Despite the issuance of the revised FFS and the RODs for both the lower and upper River by the EPA, the RI/FS by the CPG, and the conditional CD by the EPA, there are many uncertainties associated with the final agreed-upon remediation, potential future liabilities and the Company's allocable share of the remediation. Given those uncertainties, the amounts accrued may not be indicative of the amounts for which the Company may be ultimately responsible and will be refined as the remediation progresses. Hoffmann, et al. v. ASHTA Chemical, Inc., et al. On June 20, 2023, a complaint was filed against several corporations, including Mallinckrodt LLC, by 75 of the corporations' respective former employees and contractors, and certain family members thereof, alleging various tort claims related to alleged injuries resulting from exposure to mercury at a manufacturing facility in Ashtabula, Ohio. The alleged claims (employer intentional tort, negligence, fraudulent concealment and misrepresentation, premises liability, and civil conspiracy) against Mallinckrodt LLC are based on alleged mercury exposure between 1974 to 1982, when an alleged predecessor in interest to Mallinckrodt owned and operated the Ashtabula facility. The Company believes that the claims arose before June 16, 2022 emergence from bankruptcy and therefore were discharged as a result of the Plan, and the plaintiffs are enjoined from bringing an action against Mallinckrodt LLC. The Company is currently in the process of responding to the complaint. Bankruptcy Litigation and Appeals First Lien Noteholder Matters. The Plan reinstated the issuers' 2025 First Lien Notes in an aggregate principal amount of $495.0 million and the note documents relating thereto. Certain holders of the 2025 First Lien Notes and the trustee in respect thereof (collectively, "Noteholder Parties"), objected to the reinstatement, arguing, among other things, that the Company was required to pay a significant make-whole premium as a condition to reinstatement of the 2025 First Lien Notes. In the course of confirming the Plan, the Bankruptcy Court overruled these objections. On March 30, 2022, the Noteholder Parties appealed the confirmation order's approval of the reinstatement of the 2025 First Lien Notes to the United States District Court for the District of Delaware ("District Court"). The Company and the 2025 First Lien Notes trustee reached an agreement to hold the trustee's appeal in abeyance, to be determined by the result of the holders' appeals, subject to certain conditions, which was approved by the District Court. Briefing on the merits of the Noteholder Parties' appeals was completed on July 1, 2022. On the same date, the Company moved to dismiss the Noteholder Parties' appeals as equitably moot. Briefing on the motion was completed on August 5, 2022 and supplemental declarations have been filed in the appeal. Oral argument was held on the Noteholder Parties' appeals on May 5, 2023, and the District Court took the matter under advisement. At this stage, the Company is not able to reasonably estimate the expected amount or range of cost or any loss associated with these appeals. The Company will continue to vigorously defend the Plan. Sanofi. On October 12, 2021, in the Company's bankruptcy, sanofi-aventis U.S. LLC ("Sanofi") filed a motion asking the Bankruptcy Court for an order determining that, under the Bankruptcy Code, the Company could not discharge alleged royalty obligations owed to Sanofi under an asset purchase agreement through which the Company acquired certain intellectual property from Sanofi's predecessor ("Sanofi Motion"). On November 8, 2021, the Bankruptcy Court denied the Sanofi Motion and ordered that any royalty obligations allegedly owed to Sanofi constitute prepetition unsecured claims that may be discharged under the Bankruptcy Code. On November 19, 2021, Sanofi appealed the Bankruptcy Court's ruling of the Sanofi Motion to the District Court. Briefing was completed on March 10, 2022 and the District Court affirmed on December 20, 2022, for which Sanofi filed a notice of appeal on January 17, 2023. Sanofi had also appealed the Bankruptcy Court's confirmation order, but pursuant to the terms of a settlement between Sanofi and the General Unsecured Claims Trustee appointed pursuant to the Plan, Sanofi dismissed its appeal of the confirmation order with prejudice. Banks et al. v. Cotter Corporation et al. v. Mallinckrodt LLC, et al. On January 29, 2023, the named plaintiffs in Banks et al. v. Cotter Corporation et al. v. Mallinckrodt LLC, et al. No. 20-CV-1227 (E.D. Mo.) filed a motion to amend their class-action petition to add Mallinckrodt LLC as a defendant. Mallinckrodt LLC filed a motion in the Bankruptcy Court to enjoin this petition on the grounds that these alleged claims were discharged pursuant to the Plan and confirmation order. Following an April 11, 2023 oral argument on the motion to enjoin, the Bankruptcy Court denied the motion, with the effect being that the named plaintiffs were permitted to proceed with their motion to amend their petition. Under the confirmation order, any liability Mallinckrodt LLC may have in connection with the Banks litigation was discharged upon emergence from Chapter 11, with the limited exception of liability that both was asserted in writing prepetition and is indemnified by the U.S. government. Opioid-related litigation settlement On June 15, 2023, the Company, certain subsidiaries of the Company and the Trust entered into Amendment No. 1 ("Amendment") to that certain opioid deferred cash payments agreement, dated as of June 16, 2022, which was entered into in connection with the Plan. The Amendment extended to June 23, 2023, from June 16, 2023, the date on which the Opioid Deferred Cash Payment is required to be made to the Trust. Since then, pursuant to the Amendment, the Trust has provided several additional written notices that had the effect of extending the due date of the Opioid Deferred Cash Payment to August 15, 2023. Other Matters The Company's legal proceedings and claims are further described within the notes to the financial statements included within the Company's Annual Report on Form 10-K. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 12. Financial Instruments and Fair Value Measurements Fair value is defined as the exit price that would be received from the sale of an asset or paid to transfer a liability, using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes a three-level fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs used in measuring fair value. The levels within the hierarchy are as follows: Level 1— observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2— significant other observable inputs that are observable either directly or indirectly; and Level 3— significant unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. The following tables provide a summary of the significant assets and liabilities that are measured at fair value on a recurring basis at the end of each period: June 30, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 39.1 $ 26.5 $ 12.6 $ — Equity securities 9.1 9.1 — — Interest rate cap 23.8 — 23.8 — $ 72.0 $ 35.6 $ 36.4 $ — Liabilities: Deferred compensation liabilities $ 18.7 $ — $ 18.7 $ — Contingent consideration liabilities 0.2 — — 0.2 $ 18.9 $ — $ 18.7 $ 0.2 December 30, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 36.6 $ 24.8 $ 11.8 $ — Equity securities 25.5 25.5 — — $ 62.1 $ 50.3 $ 11.8 $ — Liabilities: Deferred compensation liabilities $ 26.0 $ — $ 26.0 $ — Contingent consideration liabilities 7.3 — — 7.3 $ 33.3 $ — $ 26.0 $ 7.3 Debt and equity securities held in rabbi trusts. Debt securities held in rabbi trusts primarily consist of U.S. government and agency securities and corporate bonds. When quoted prices are available in an active market, the investments are classified as level 1. When quoted market prices for a security are not available in an active market, they are classified as level 2. Equity securities held in rabbi trusts primarily consist of U.S. common stocks, which are valued using quoted market prices reported on nationally recognized securities exchanges. Equity securities. Equity securities consist of shares in Silence Therapeutics plc and Panbela Therapeutics, Inc. for which quoted prices are available in an active market; therefore, these investments are classified as level 1 and are valued based on quoted market prices reported on internationally recognized securities exchanges. Interest rate cap. The Company is exposed to interest rate risk on its variable-rate debt. During the three months ended March 31, 2023, the Company entered into an interest rate cap agreement, which serves to reduce the volatility on future interest expense cash outflows. The interest rate cap agreement has a total notional value of $860.0 million with an upfront premium of $20.0 million and provides the Company with interest rate protection (i) for the period March 16, 2023 through July 19, 2023 to the extent that the one-month London Interbank Offered Rate ("LIBOR") exceeds 4.65%, and (ii) for the period July 20, 2023 through March 26, 2026 to the extent that the one-month Secured Overnight Financing Rate ("SOFR") exceeds 3.84%. The interest rate cap agreement qualifies as a cash flow hedge. The premium paid is recognized in income on a rational basis, and changes in the fair value of the interest rate cap are recorded within accumulated other comprehensive income ("AOCI") and are subsequently reclassed into interest expense in the period when the hedged interest affects earnings. The fair value of the interest rate cap is included in other assets on the Company’s unaudited condensed consolidated balance sheet as of June 30, 2023 (Successor). The Company elected to use the income approach to value the interest rate cap derivative using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted) reflecting current market expectations about those future amounts. Level 2 inputs for derivative valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts) and inputs other than quoted prices that are observable such as LIBOR or SOFR rate curves, futures and volatilities. Mid-market pricing is used as a practical expedient in the fair value measurements. During the three and six months ended June 30, 2023 (Successor) the Company recognized an unrealized gain of $11.1 million and $6.1 million, respectively, within AOCI with $0.9 million and $1.2 million, respectively, being reclassified into earnings as a component of interest expense, net. It is expected that over the next 12 months, $6.7 million of the estimated losses in AOCI will be recognized into interest expense, net. The cash payment of the $20.0 million premium and other corresponding activity related to the interest rate cap were reflected as cash flows from operating activities in the unaudited condensed consolidated statement of cash flows for the six months ended June 30, 2023 (Successor). Deferred compensation liabilities. The Company maintains a non-qualified deferred compensation plan in the U.S., which permits eligible employees of the Company to defer a portion of their compensation. A recordkeeping account is set up for each participant and the participant chooses from a variety of funds for the deemed investment of their accounts. The recordkeeping accounts generally correspond to the funds offered in the Company's U.S. tax-qualified defined contribution retirement plan and the account balance fluctuates with the investment returns on those funds. Contingent consideration liabilities. In accordance with the Plan and the Scheme of Arrangement, the Company will provide consideration for a contingent value right ("CVR") associated with Terlivaz ® primarily in the form of the achievement of a cumulative net sales milestone. The Company assesses the likelihood and timing of making such payments at each balance sheet date. The fair value of the contingent payment was measured based on the net present value of a probability-weighted assessment. The Company determined the fair value of the Terlivaz CVR as of June 30, 2023 (Successor) and December 30, 2022 (Successor) to be $0.2 million and $7.3 million, respectively. Financial Instruments Not Measured at Fair Value The following methods and assumptions were used by the Company in estimating fair values for financial instruments not measured at fair value as of June 30, 2023 (Successor) and December 30, 2022 (Successor): • The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and the majority of other current assets and liabilities approximate fair value because of their short-term nature. The Company classifies cash on hand and deposits in banks, including commercial paper, money market accounts and other investments it may hold from time to time, with an original maturity of three months or less, as cash and cash equivalents (level 1). The fair value of restricted cash was equivalent to its carrying value of $58.3 million and $57.2 million as of June 30, 2023 (Successor) and December 30, 2022 (Successor) (level 1), respectively. • The Company's life insurance contracts are carried at cash surrender value, which is based on the present value of future cash flows under the terms of the contracts (level 3). Significant assumptions used in determining the cash surrender value include the amount and timing of future cash flows, interest rates and mortality charges. The fair value of these contracts approximates the carrying value of $46.6 million and $46.7 million as of June 30, 2023 (Successor) and December 30, 2022 (Successor), respectively. These contracts are included in other assets on the unaudited condensed consolidated balance sheets. • The Company's 10.00% and 11.50% first and second lien senior secured notes are classified as level 1, as quoted prices are available in an active market for these notes. Since quoted market prices for the Company's term loans are not available in an active market, they are classified as level 2 for purposes of developing an estimate of fair value. The following table presents the carrying values and estimated fair values of the Company's debt as of the end of each period: Successor June 30, 2023 December 30, 2022 Carrying Fair Carrying Fair Level 1: 10.00% first lien senior secured notes due April 2025 $ 480.0 $ 389.8 $ 475.9 $ 425.9 10.00% second lien senior secured notes due April 2025 257.6 60.3 242.2 216.8 11.50% first lien senior secured notes due December 2028 650.0 557.9 650.0 552.6 10.00% second lien senior secured notes due June 2029 184.1 52.7 175.5 176.7 Level 2: 2017 Replacement Term loan due September 2027 1,220.8 1,026.2 1,222.1 1,037.8 2018 Replacement Term loan due September 2027 326.3 272.6 326.9 274.8 Total Debt $ 3,118.8 $ 2,359.5 $ 3,092.6 $ 2,684.6 Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of accounts receivable. The Company generally does not require collateral from customers. A portion of the Company's accounts receivable outside the U.S. includes sales to government-owned or supported healthcare systems in several countries, which are subject to payment delays. Payment is dependent upon the financial stability and creditworthiness of those countries' national economies. The following table shows net sales attributable to distributors that accounted for 10.0% or more of the Company's total net sales: Successor Predecessor Three Months Period from Period from FFF Enterprises, Inc. 23.8 % 23.6 % 26.9 % Successor Predecessor Six Months Period from Period from FFF Enterprises, Inc. 21.4 % 23.6 % 11.8 % CuraScript, Inc. * * 15.6 * Net sales to this distributor was less than 10.0% of the Company's total net sales for the respective periods presented above. The following table shows accounts receivable attributable to distributors that accounted for 10.0% or more of the Company's gross accounts receivable at the end of each period: Successor June 30, December 30, AmerisourceBergen Corporation 24.5 % 23.3 % McKesson Corporation 21.6 17.3 FFF Enterprises, Inc. * 16.2 *Accounts receivable attributable to this distributor was less than 10.0% of total gross accounts receivable at the end of the respective period presented above. The following table shows net sales attributable to products that accounted for 10.0% or more of the Company's total net sales: Successor Predecessor Three Months Period from Period from Acthar Gel 24.6 % 32.4 % 24.6 % INOmax 16.2 15.8 17.4 Therakos 13.2 12.0 13.0 APAP 12.6 13.3 13.1 Successor Predecessor Six Months Period from Period from Acthar Gel 22.1 % 32.4 % 25.4 % INOmax 17.7 15.8 19.0 Therakos 13.5 12.0 12.5 APAP 11.8 13.3 11.0 |
Segment Data
Segment Data | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Data | 13. Segment Data The Company operates in two reportable segments, which are further described below: • Specialty Brands includes innovative specialty pharmaceutical brands; and • Specialty Generics includes niche specialty generic drugs and APIs. Management measures and evaluates the Company's operating segments based on segment net sales and operating income. Management excludes corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management and the chief operating decision maker evaluate the operating results of the segments excluding such items. These items may include, but are not limited to, depreciation and amortization, share-based compensation, net restructuring charges, non-restructuring impairment charges and liabilities management and separation costs. Although these amounts are excluded from segment operating income, as applicable, they are included in reported consolidated operating loss and are reflected in the reconciliations presented below. Selected information by reportable segment was as follows: Successor Predecessor Three Months Period from Period from Net sales: Specialty Brands $ 280.1 $ 58.2 $ 247.7 Specialty Generics 194.9 26.8 136.0 Net sales $ 475.0 $ 85.0 $ 383.7 Operating income (loss): Specialty Brands $ 61.6 $ 4.5 $ 102.4 Specialty Generics 35.1 0.3 30.9 Segment operating income 96.7 4.8 133.3 Unallocated amounts: Corporate and unallocated expenses (1) 0.6 (0.9) (15.4) Depreciation and amortization (141.1) (48.4) (144.6) Share-based compensation (2.7) — (0.5) Restructuring charges, net 0.2 (1.1) (2.8) Liabilities management and separation costs (2) (10.3) (9.2) (7.0) Operating loss $ (56.6) $ (54.8) $ (37.0) (1) Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. (2) Represents costs included in selling, general and administrative ("SG&A") expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence. . Successor Predecessor Six Months Period from Period from Net sales: Specialty Brands $ 532.1 $ 58.2 $ 587.1 Specialty Generics 367.5 26.8 287.5 Net sales $ 899.6 $ 85.0 $ 874.6 Operating income (loss): Specialty Brands $ 94.0 $ 4.5 $ 267.2 Specialty Generics 67.9 0.3 65.3 Segment operating income 161.9 4.8 332.5 Unallocated amounts: Corporate and unallocated expenses (1) (13.4) (0.9) (48.2) Depreciation and amortization (286.2) (48.4) (321.8) Share-based compensation (5.3) — (1.7) Restructuring charges, net (1.0) (1.1) (9.6) Liabilities management and separation costs (2) (15.2) (9.2) (9.0) Operating loss $ (159.2) $ (54.8) $ (57.8) (1) Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. (2) Represents costs included in SG&A expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence. . Net sales by product family within the Company's reportable segments were as follows: Successor Predecessor Three Months Period from Period from Acthar Gel $ 116.8 $ 27.5 $ 94.2 INOmax 76.9 13.5 66.8 Therakos 62.9 10.2 49.7 Amitiza (1) 18.6 5.8 33.8 Terlivaz 3.4 — — Other 1.5 1.2 3.2 Specialty Brands 280.1 58.2 247.7 Opioids 72.1 8.7 38.8 ADHD 19.0 1.8 6.8 Addiction treatment 16.1 2.5 14.1 Other 2.4 0.1 2.0 Generics 109.6 13.1 61.7 Controlled substances 20.9 1.7 17.2 APAP 59.8 11.3 50.2 Other 4.6 0.7 6.9 API 85.3 13.7 74.3 Specialty Generics 194.9 26.8 136.0 Net sales $ 475.0 $ 85.0 $ 383.7 (1) Amitiza consists of both product net sales and royalties. Refer to Note 2 for further details on Amitiza's revenues. Successor Predecessor Six Months Period from Period from Acthar Gel $ 198.8 $ 27.5 $ 221.9 INOmax 159.6 13.5 165.8 Therakos 121.6 10.2 109.6 Amitiza (1) 43.1 5.8 81.5 Terlivaz 5.6 — — Other 3.4 1.2 8.3 Specialty Brands 532.1 58.2 587.1 Opioids 134.3 8.7 88.8 ADHD 41.4 1.8 17.5 Addiction treatment 31.7 2.5 30.0 Other 4.2 0.1 4.9 Generics 211.6 13.1 141.2 Controlled substances 39.4 1.7 37.6 APAP 106.2 11.3 96.5 Other 10.3 0.7 12.2 API 155.9 13.7 146.3 Specialty Generics 367.5 26.8 287.5 Net sales $ 899.6 $ 85.0 $ 874.6 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Commitments and Contingencies Certain litigation matters occurred on, or prior to, June 30, 2023 (Successor), but had subsequent updates through the date of issuance of this report. See further discussion in Note 11. Debt On June 15, 2023, the Company did not make interest payments that were due on that date on its 2028 First Lien Notes and 2029 Second Lien Notes. As the failure to make these interest payments continued unremedied after the expiration of applicable grace periods, events of default occurred under the 2028 First Lien Notes and 2029 Second Lien Notes, permitting specified portions of the creditors in respect thereof to accelerate the obligations in respect thereof (which would include a prepayment premium). The occurrence of such events of default, unless promptly cured and absent the 2028 First Lien Notes and the 2029 Second Lien Notes being discharged, also constitute an event of default under the Company’s Term Loans and ABL Credit Agreement, permitting specified portions of the creditors in respect thereof to accelerate the obligations and terminate any applicable commitments to make additional loans under the ABL Credit Agreement. On July 13, 2023, ST US AR Finance LLC, a wholly owned subsidiary of the Company, borrowed $100.0 million under the Company's receivables financing facility pursuant to the ABL Credit Agreement in order to maximize cash on hand. On July 16, 2023, certain subsidiaries of the Company entered into forbearance agreements with the holders of (i) more than 75% in principal amount of the outstanding 2028 First Lien Notes ("2028 First Lien Notes Forbearance Agreement") and (ii) a majority in principal amount of the outstanding 2029 Second Lien Notes ("2029 Second Lien Notes Forbearance Agreement"), pursuant to which such noteholders agreed to forbear from exercising any rights and remedies (including any right to accelerate any obligations thereunder) with respect to the events of default arising from the failure to make interest payments in respect thereof that were due and payable on June 15, 2023 (and certain related events of default) until August 15, 2023 unless such forbearance agreements (which contain customary termination events, including the termination of the Credit Agreement Forbearance Agreement (as defined below)) are earlier terminated in accordance with the terms thereof. Also on July 16, 2023, the Company and certain of its subsidiaries entered into a forbearance agreement ("Credit Agreement Forbearance Agreement") with the holders of a majority in principal amount of the outstanding Term Loans outstanding and Acquiom Agency Services LLC and Seaport Loan Products LLC, as co-administrative agents in respect of the Company's Term Loans (together, the "Administrative Agent"), pursuant to which such lenders and the Administrative Agent agreed to forbear from exercising (and such lenders agreed to instruct the Administrative Agent and the collateral agent not to exercise) any rights and remedies (including any right to accelerate any obligations thereunder) with respect to the event of default arising from such failure (and certain related events of default) until August 15, 2023, unless the Credit Agreement Forbearance Agreement (which contains customary termination events, including the termination of either the 2028 First Lien Notes Forbearance Agreement or the 2029 Second Lien Notes Forbearance Agreement) is earlier terminated in accordance with the terms thereof. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | |
Sales Reserves Rollforward | The following table reflects activity in the Company's sales reserve accounts: Rebates and Chargebacks (1) Product Returns Other Sales Deductions Total Balance as of December 31, 2021 (Predecessor) $ 241.8 $ 21.5 $ 9.5 $ 272.8 Provisions 693.4 5.2 17.1 715.7 Payments or credits (684.6) (8.1) (18.9) (711.6) Balance as of June 16, 2022 (Predecessor) $ 250.6 $ 18.6 $ 7.7 $ 276.9 Balance as of June 17, 2022 (Successor) $ 250.6 $ 18.6 $ 7.7 $ 276.9 Provisions 68.5 0.5 1.5 70.5 Payments or credits (81.4) (0.7) (1.9) (84.0) Balance as of July 1, 2022 (Successor) $ 237.7 $ 18.4 $ 7.3 $ 263.4 Balance as of December 30, 2022 (Successor) $ 265.3 $ 16.0 $ 12.7 $ 294.0 Provisions 726.0 5.8 21.0 752.8 Payments or credits (748.3) (8.6) (25.4) (782.3) Balance as of June 30, 2023 (Successor) $ 243.0 $ 13.2 $ 8.3 $ 264.5 (1) Includes $91.3 million and $89.3 million of accrued Medicaid and $36.4 million and $55.3 million of accrued rebates as of June 30, 2023 (Successor) and December 30, 2022 (Successor), respectively, included within accrued and other current liabilities in the unaudited condensed consolidated balance sheets. |
Disaggregation of Revenue | Product sales transferred to customers at a point in time and over time were as follows: Successor Predecessor Three Months Period from Period from Product sales transferred at a point in time 83.6 % 83.8 % 82.4 % Product sales transferred over time 16.4 16.2 17.6 Successor Predecessor Six Months Period from Period from Product sales transferred at a point in time 82.0 % 83.8 % 80.8 % Product sales transferred over time 18.0 16.2 19.2 Successor Predecessor Three Months Period from Period from Royalty revenue $ 0.4 $ 3.0 $ 14.9 Successor Predecessor Six Months Period from Period from Royalty revenue $ 3.8 $ 3.0 $ 34.9 |
Contract with Customer, Timing of Satisfaction of Performance Obligation and Payment | The following table includes estimated revenue from contracts extending greater than one year for certain of the Company's hospital products that are expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of June 30, 2023 (Successor): Remainder of Fiscal 2023 $ 39.6 Fiscal 2024 37.7 Fiscal 2025 13.2 Thereafter 0.2 |
Restructuring and Related Cha_2
Restructuring and Related Charges (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Charges by Segment | Net restructuring and related charges by segment were as follows: Successor Predecessor Three Months Period from Period from Corporate $ (0.2) $ 1.1 $ 2.8 Restructuring charges, net $ (0.2) $ 1.1 $ 2.8 Successor Predecessor Six Months Period from Period from Specialty Generics $ — $ — $ 3.5 Corporate 1.7 1.1 6.1 Restructuring and related charges, net 1.7 1.1 9.6 Less: accelerated depreciation (0.7) — — Restructuring charges, net $ 1.0 $ 1.1 $ 9.6 |
Schedule of Net Restructuring and Related Charges | Net restructuring and related charges by program were comprised of the following: Successor Predecessor Three Months Period from Period from 2018 Program $ (0.2) $ 1.1 $ 2.8 Less: non-cash charges, including accelerated depreciation — (0.2) (1.5) Total charges expected to be settled in cash $ (0.2) $ 0.9 $ 1.3 Successor Predecessor Six Months Period from Period from 2018 Program $ 1.7 $ 1.1 $ 9.6 Less: non-cash charges, including accelerated depreciation (0.8) (0.2) (3.6) Total charges expected to be settled in cash $ 0.9 $ 0.9 $ 6.0 |
Schedule of Restructuring Reserves Reconciliation by Program | The following table summarizes cash activity for restructuring reserves for the 2018 Program, which primarily related to employee severance and benefits: 2018 Program Balance as of December 30, 2022 (Successor) $ 4.6 Charges from continuing operations 1.2 Changes in estimate from continuing operations (0.3) Cash payments (5.3) Balance as of June 30, 2023 (Successor) $ 0.2 |
Schedule of Restructuring Charges Incurred Cumulative to Date | As of June 30, 2023 (Successor), net restructuring and related charges incurred cumulative to date for the 2018 Program were as follows: Successor Predecessor Specialty Brands $ — $ 3.1 Specialty Generics 0.8 18.5 Corporate 13.0 84.0 $ 13.8 $ 105.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The Company's income tax expense (benefit) was as follows: Successor Predecessor Three Months Period from Period from Current tax expense (benefit) $ 19.2 $ (3.3) $ (18.9) Deferred tax expense (benefit) 508.9 (6.4) (472.5) Income tax expense (benefit) $ 528.1 $ (9.7) $ (491.4) Successor Predecessor Six Months Period from Period from Current tax expense (benefit) $ 21.8 $ (3.3) $ (23.9) Deferred tax expense (benefit) 475.5 (6.4) (473.4) Income tax expense (benefit) $ 497.3 $ (9.7) $ (497.3) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | The weighted-average number of shares outstanding used in the computations of both basic and diluted loss per share were as follows ( in millions ): Successor Predecessor Three Months Period from Period from Basic and diluted 13.2 13.2 84.8 Successor Predecessor Six Months Period from Period from Basic and diluted 13.2 13.2 84.8 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Inventories were comprised of the following at the end of each period: Successor June 30, December 30, Raw materials and supplies $ 102.2 $ 80.2 Work in process 485.9 552.1 Finished goods 272.4 315.3 $ 860.5 $ 947.6 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | The gross carrying amount and accumulated depreciation of property, plant and equipment were comprised of the following at the end of each period: Successor June 30, December 30, Property, plant and equipment, gross $ 503.0 $ 485.0 Less: accumulated depreciation (49.8) (27.4) Property, plant and equipment, net $ 453.2 $ 457.6 |
Depreciation of Fixed Assets | Depreciation expense was as follows: Successor Predecessor Three Months Period from Period from Depreciation expense $ 11.8 $ 2.9 $ 17.9 Successor Predecessor Six Months Period from Period from Depreciation expense $ 23.7 $ 2.9 $ 40.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The gross carrying amount and accumulated amortization of intangible assets were comprised of the following at the end of each period: Successor June 30, 2023 December 30, 2022 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable: Completed technology $ 3,041.2 $ 581.2 $ 3,041.2 $ 318.7 Non-Amortizable: In-process research and development 121.3 121.3 |
Intangible Asset Amortization Expense | Intangible asset amortization expense was as follows: Successor Predecessor Three Months Period from Period from Amortization expense $ 129.3 $ 45.5 $ 126.7 Successor Predecessor Six Months Period from Period from Amortization expense $ 262.5 $ 45.5 $ 281.8 |
Schedule of Future Amortization Expense, Intangible Assets | The estimated aggregate amortization expense on intangible assets owned by the Company is expected to be as follows: Successor Remainder of Fiscal 2023 $ 246.7 Fiscal 2024 446.1 Fiscal 2025 385.1 Fiscal 2026 337.5 Fiscal 2027 284.4 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt including Capital Lease Obligation | Debt was comprised of the following at the end of each period: Successor June 30, 2023 December 30, 2022 Principal Carrying Value Unamortized Discount and Debt Issuance Costs Principal Carrying Value Unamortized Discount and Debt Issuance Costs Current maturities of long-term debt: Receivables financing facility due June 2026 $ — $ — $ 1.2 $ — $ — $ — 2017 Replacement Term loan due September 2027 1,356.7 1,220.8 — 34.8 34.8 — 2018 Replacement Term loan due September 2027 360.1 326.3 — 9.3 9.3 — 11.50% first lien senior secured notes due December 2028 650.0 650.0 19.0 — — — 10.00% second lien senior secured notes due June 2029 328.3 184.1 — — — — Total current debt 2,695.1 2,381.2 20.2 44.1 44.1 — Long-term debt: 10.00% first lien senior secured notes due April 2025 495.0 480.0 — 495.0 475.9 — 10.00% second lien senior secured notes due April 2025 321.9 257.6 — 321.9 242.2 — 2017 Replacement Term loan due September 2027 — — — 1,339.3 1,187.3 — 2018 Replacement Term loan due September 2027 — — — 355.5 317.6 — 11.50% first lien senior secured notes due December 2028 — — — 650.0 650.0 20.8 10.00% second lien senior secured notes due June 2029 — — — 328.3 175.5 — Total long-term debt 816.9 737.6 — 3,490.0 3,048.5 20.8 Total debt $ 3,512.0 $ 3,118.8 $ 20.2 $ 3,534.1 $ 3,092.6 $ 20.8 |
Schedule of Applicable Interest Rate on Variable-rate Debt | As of June 30, 2023 (Successor), the applicable interest rate and outstanding principal on the Company's debt instruments were as follows: Applicable Interest Rate Outstanding Principal Fixed-rate instruments 10.54 % $ 1,795.2 2017 Replacement Term Loan due September 2027 (1) 10.15 1,356.7 2018 Replacement Term Loan due September 2027 (1) 10.40 360.1 (1) Includes the impact of the interest rate cap agreement, which is discussed further in Note 12. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following tables provide a summary of the significant assets and liabilities that are measured at fair value on a recurring basis at the end of each period: June 30, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 39.1 $ 26.5 $ 12.6 $ — Equity securities 9.1 9.1 — — Interest rate cap 23.8 — 23.8 — $ 72.0 $ 35.6 $ 36.4 $ — Liabilities: Deferred compensation liabilities $ 18.7 $ — $ 18.7 $ — Contingent consideration liabilities 0.2 — — 0.2 $ 18.9 $ — $ 18.7 $ 0.2 December 30, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt and equity securities held in rabbi trusts $ 36.6 $ 24.8 $ 11.8 $ — Equity securities 25.5 25.5 — — $ 62.1 $ 50.3 $ 11.8 $ — Liabilities: Deferred compensation liabilities $ 26.0 $ — $ 26.0 $ — Contingent consideration liabilities 7.3 — — 7.3 $ 33.3 $ — $ 26.0 $ 7.3 |
Schedule of Carrying Amount and Fair Value of Long-term Debt | The following table presents the carrying values and estimated fair values of the Company's debt as of the end of each period: Successor June 30, 2023 December 30, 2022 Carrying Fair Carrying Fair Level 1: 10.00% first lien senior secured notes due April 2025 $ 480.0 $ 389.8 $ 475.9 $ 425.9 10.00% second lien senior secured notes due April 2025 257.6 60.3 242.2 216.8 11.50% first lien senior secured notes due December 2028 650.0 557.9 650.0 552.6 10.00% second lien senior secured notes due June 2029 184.1 52.7 175.5 176.7 Level 2: 2017 Replacement Term loan due September 2027 1,220.8 1,026.2 1,222.1 1,037.8 2018 Replacement Term loan due September 2027 326.3 272.6 326.9 274.8 Total Debt $ 3,118.8 $ 2,359.5 $ 3,092.6 $ 2,684.6 |
Schedules of Concentration of Risk | The following table shows net sales attributable to distributors that accounted for 10.0% or more of the Company's total net sales: Successor Predecessor Three Months Period from Period from FFF Enterprises, Inc. 23.8 % 23.6 % 26.9 % Successor Predecessor Six Months Period from Period from FFF Enterprises, Inc. 21.4 % 23.6 % 11.8 % CuraScript, Inc. * * 15.6 * Net sales to this distributor was less than 10.0% of the Company's total net sales for the respective periods presented above. The following table shows accounts receivable attributable to distributors that accounted for 10.0% or more of the Company's gross accounts receivable at the end of each period: Successor June 30, December 30, AmerisourceBergen Corporation 24.5 % 23.3 % McKesson Corporation 21.6 17.3 FFF Enterprises, Inc. * 16.2 *Accounts receivable attributable to this distributor was less than 10.0% of total gross accounts receivable at the end of the respective period presented above. The following table shows net sales attributable to products that accounted for 10.0% or more of the Company's total net sales: Successor Predecessor Three Months Period from Period from Acthar Gel 24.6 % 32.4 % 24.6 % INOmax 16.2 15.8 17.4 Therakos 13.2 12.0 13.0 APAP 12.6 13.3 13.1 Successor Predecessor Six Months Period from Period from Acthar Gel 22.1 % 32.4 % 25.4 % INOmax 17.7 15.8 19.0 Therakos 13.5 12.0 12.5 APAP 11.8 13.3 11.0 |
Segment Data (Tables)
Segment Data (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Reportable Segment | Selected information by reportable segment was as follows: Successor Predecessor Three Months Period from Period from Net sales: Specialty Brands $ 280.1 $ 58.2 $ 247.7 Specialty Generics 194.9 26.8 136.0 Net sales $ 475.0 $ 85.0 $ 383.7 Operating income (loss): Specialty Brands $ 61.6 $ 4.5 $ 102.4 Specialty Generics 35.1 0.3 30.9 Segment operating income 96.7 4.8 133.3 Unallocated amounts: Corporate and unallocated expenses (1) 0.6 (0.9) (15.4) Depreciation and amortization (141.1) (48.4) (144.6) Share-based compensation (2.7) — (0.5) Restructuring charges, net 0.2 (1.1) (2.8) Liabilities management and separation costs (2) (10.3) (9.2) (7.0) Operating loss $ (56.6) $ (54.8) $ (37.0) (1) Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. (2) Represents costs included in selling, general and administrative ("SG&A") expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence. . Successor Predecessor Six Months Period from Period from Net sales: Specialty Brands $ 532.1 $ 58.2 $ 587.1 Specialty Generics 367.5 26.8 287.5 Net sales $ 899.6 $ 85.0 $ 874.6 Operating income (loss): Specialty Brands $ 94.0 $ 4.5 $ 267.2 Specialty Generics 67.9 0.3 65.3 Segment operating income 161.9 4.8 332.5 Unallocated amounts: Corporate and unallocated expenses (1) (13.4) (0.9) (48.2) Depreciation and amortization (286.2) (48.4) (321.8) Share-based compensation (5.3) — (1.7) Restructuring charges, net (1.0) (1.1) (9.6) Liabilities management and separation costs (2) (15.2) (9.2) (9.0) Operating loss $ (159.2) $ (54.8) $ (57.8) (1) Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. (2) Represents costs included in SG&A expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence. . |
Schedule of Net Sales from External Customers by Products | Net sales by product family within the Company's reportable segments were as follows: Successor Predecessor Three Months Period from Period from Acthar Gel $ 116.8 $ 27.5 $ 94.2 INOmax 76.9 13.5 66.8 Therakos 62.9 10.2 49.7 Amitiza (1) 18.6 5.8 33.8 Terlivaz 3.4 — — Other 1.5 1.2 3.2 Specialty Brands 280.1 58.2 247.7 Opioids 72.1 8.7 38.8 ADHD 19.0 1.8 6.8 Addiction treatment 16.1 2.5 14.1 Other 2.4 0.1 2.0 Generics 109.6 13.1 61.7 Controlled substances 20.9 1.7 17.2 APAP 59.8 11.3 50.2 Other 4.6 0.7 6.9 API 85.3 13.7 74.3 Specialty Generics 194.9 26.8 136.0 Net sales $ 475.0 $ 85.0 $ 383.7 (1) Amitiza consists of both product net sales and royalties. Refer to Note 2 for further details on Amitiza's revenues. Successor Predecessor Six Months Period from Period from Acthar Gel $ 198.8 $ 27.5 $ 221.9 INOmax 159.6 13.5 165.8 Therakos 121.6 10.2 109.6 Amitiza (1) 43.1 5.8 81.5 Terlivaz 5.6 — — Other 3.4 1.2 8.3 Specialty Brands 532.1 58.2 587.1 Opioids 134.3 8.7 88.8 ADHD 41.4 1.8 17.5 Addiction treatment 31.7 2.5 30.0 Other 4.2 0.1 4.9 Generics 211.6 13.1 141.2 Controlled substances 39.4 1.7 37.6 APAP 106.2 11.3 96.5 Other 10.3 0.7 12.2 API 155.9 13.7 146.3 Specialty Generics 367.5 26.8 287.5 Net sales $ 899.6 $ 85.0 $ 874.6 (1) Amitiza consists of both product net sales and royalties. Refer to Note 2 for further details on Amitiza's revenues. |
Background and Basis of Prese_2
Background and Basis of Presentation Background and Basis of Presentation (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 16, 2023 | |
Schedule of Basis of Preperation [Line Items] | ||||
Cash Paid, Reorganization items | $ 0 | $ 14.6 | $ 304.1 | |
Opioid-Related Settlement, Payment Year One | $ 200 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Future Performance Obligations (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Remainder of Fiscal 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 39.6 |
Fiscal 2024 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 37.7 |
Fiscal 2025 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 13.2 |
Thereafter | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 0.2 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Dec. 30, 2022 | Dec. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue Reserves | $ 263.4 | $ 264.5 | $ 276.9 | $ 264.5 | $ 276.9 | $ 294 | $ 272.8 | |
Revenue Reserve Provision | 70.5 | 752.8 | 715.7 | |||||
Revenue Reserve Payments or Credits | (84) | (782.3) | (711.6) | |||||
Net sales | $ 85 | 475 | $ 383.7 | 899.6 | $ 874.6 | |||
Accrued Medicaid | 91.3 | 91.3 | 89.3 | |||||
Accrued rebates | $ 36.4 | $ 36.4 | 55.3 | |||||
Transferred at Point in Time [Member] | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 83.80% | 83.60% | 82.40% | 82% | 80.80% | |||
Transferred over Time [Member] | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 16.20% | 16.40% | 17.60% | 18% | 19.20% | |||
Royalty [Member] | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Net sales | $ 3 | $ 0.4 | $ 14.9 | $ 3.8 | $ 34.9 | |||
Rebates and Chargebacks [Member] | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue Reserves | [1] | 237.7 | 243 | 250.6 | 243 | 250.6 | 265.3 | 241.8 |
Revenue Reserve Provision | [1] | 68.5 | 726 | 693.4 | ||||
Revenue Reserve Payments or Credits | [1] | (81.4) | (748.3) | (684.6) | ||||
Allowance for Sales Returns [Member] | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue Reserves | 18.4 | 13.2 | 18.6 | 13.2 | 18.6 | 16 | 21.5 | |
Revenue Reserve Provision | 0.5 | 5.8 | 5.2 | |||||
Revenue Reserve Payments or Credits | (0.7) | (8.6) | (8.1) | |||||
Other Sales Deductions [Member] | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue Reserves | 7.3 | $ 8.3 | $ 7.7 | 8.3 | 7.7 | $ 12.7 | $ 9.5 | |
Revenue Reserve Provision | 1.5 | 21 | 17.1 | |||||
Revenue Reserve Payments or Credits | $ (1.9) | $ (25.4) | $ (18.9) | |||||
[1]Includes $91.3 million and $89.3 million of accrued Medicaid and $36.4 million and $55.3 million of accrued rebates as of June 30, 2023 (Successor) and December 30, 2022 (Successor), respectively, included within accrued and other current liabilities in the unaudited condensed consolidated balance sheets. |
Restructuring and Related Cha_3
Restructuring and Related Charges (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Dec. 01, 2021 | Feb. 01, 2018 | |
Restructuring Cost and Reserve | |||||||
Restructuring charges, net | $ 1.1 | $ (0.2) | $ 2.8 | $ 1 | $ 9.6 | ||
Restructuring Fiscal 2018 Plan | Minimum | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring and Related Cost, Expected Cost | $ 100 | ||||||
Restructuring Fiscal 2018 Plan | Maximum | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring and Related Cost, Expected Cost | $ 125 | ||||||
Restructuring Fiscal 2021 Plan | Minimum | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring and Related Cost, Expected Cost | $ 50 | ||||||
Restructuring Fiscal 2021 Plan | Maximum | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring and Related Cost, Expected Cost | $ 100 |
Restructuring and Related Cha_4
Restructuring and Related Charges (Schedule of Restructuring and Related Charges by Segment) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | |
Restructuring Cost and Reserve | |||||
Restructuring and related charges, net | $ 1.1 | $ 1.7 | $ 9.6 | ||
Restructuring and Related Cost, Accelerated Depreciation | 0 | (0.7) | 0 | ||
Restructuring charges, net | 1.1 | $ (0.2) | $ 2.8 | 1 | 9.6 |
Specialty Generics | |||||
Restructuring Cost and Reserve | |||||
Restructuring and related charges, net | 0 | 0 | 3.5 | ||
Corporate | |||||
Restructuring Cost and Reserve | |||||
Restructuring and related charges, net | $ 1.1 | $ (0.2) | $ 2.8 | $ 1.7 | $ 6.1 |
Restructuring and Related Cha_5
Restructuring and Related Charges (Schedule of Net Restructuring and Related Charges) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | |
Restructuring Cost and Reserve | |||||
Restructuring and related charges, net | $ 1.1 | $ 1.7 | $ 9.6 | ||
Restructuring and Related Costs, Non-cash Charges, Including Accelerated Depreciation | (0.2) | $ 0 | $ (1.5) | (0.8) | (3.6) |
Total charges expected to be settled in cash | 0.9 | (0.2) | 1.3 | 0.9 | 6 |
Restructuring Fiscal 2018 Plan | |||||
Restructuring Cost and Reserve | |||||
Restructuring and related charges, net | $ 1.1 | $ (0.2) | $ 2.8 | $ 1.7 | $ 9.6 |
Restructuring and Related Cha_6
Restructuring and Related Charges (Schedule of Restructuring Reserves by Type of Cost) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | |
Restructuring Reserve [Roll Forward] | |||||
Total Restructuring And Related Expense | $ 1.1 | $ 1.7 | $ 9.6 | ||
Restructuring and Related Costs, Non-cash Charges, Including Accelerated Depreciation | (0.2) | $ 0 | $ (1.5) | (0.8) | (3.6) |
Restructuring and Related Costs, Total Charges Expected to be Settled in Cash | 0.9 | (0.2) | 1.3 | 0.9 | 6 |
Restructuring Fiscal 2018 Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Total Restructuring And Related Expense | $ 1.1 | (0.2) | $ 2.8 | 1.7 | $ 9.6 |
Continuing Operations | Restructuring Fiscal 2018 Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 4.6 | ||||
Charges from continuing operations | 1.2 | ||||
Changes in estimate from continuing operations | (0.3) | ||||
Cash payments | (5.3) | ||||
Ending Balance | $ 0.2 | $ 0.2 |
Restructuring and Related Cha_7
Restructuring and Related Charges (Schedule of Restructuring Charges Incurred Cumulative to Date) (Details) - Restructuring Fiscal 2018 Plan - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 16, 2022 |
Restructuring Cost and Reserve | ||
Restructuring costs incurred cumulative to date | $ 13.8 | $ 105.6 |
Specialty Brands | ||
Restructuring Cost and Reserve | ||
Restructuring costs incurred cumulative to date | 0 | 3.1 |
Specialty Generics | ||
Restructuring Cost and Reserve | ||
Restructuring costs incurred cumulative to date | 0.8 | 18.5 |
Corporate | ||
Restructuring Cost and Reserve | ||
Restructuring costs incurred cumulative to date | $ 13 | $ 84 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Dec. 30, 2022 | |
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ 9.7 | $ (528.1) | $ 491.4 | $ (497.3) | $ 497.3 | |
Effective tax rate | 13.20% | 240.40% | 71.70% | 99.50% | 61.30% | |
Current Income Tax Expense (Benefit) | $ (3.3) | $ 19.2 | $ (18.9) | $ 21.8 | $ (23.9) | |
Deferred Income Tax Expense (Benefit) | (6.4) | 508.9 | (472.5) | 475.5 | (473.4) | |
Unrecognized tax benefits | 24.8 | 24.8 | ||||
Increase (Decrease) Tax Expense (Benefit), Change in Operating Income | 8 | 1.8 | 2.2 | |||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 0 | 0.3 | 0 | 0.9 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 73.4 | 219.7 | $ 685.2 | 499.8 | 811.3 | |
Proceeds from Income Tax Refunds | 137.8 | |||||
Interest accrued on unrecognized tax benefits | 3.4 | 3.4 | $ 2.8 | |||
Income Taxes Paid | 0.7 | 3 | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 475.5 | |||||
Increase (Decrease), Income Tax Expense (Benefit), Valuation Allowances, Current Year Deferred Tax Assets | 29.9 | |||||
Increase (Decrease), Income Tax Expense (Benefit), Prepaid Income Taxes | 20.9 | 20.9 | ||||
Increase (Decrease), Income Tax Expense (Benefit), CARES Act | 1.3 | |||||
Increase (Decrease) Tax Expense (Benefit), Separation Costs, Reorganization Items, Net and Restructuring Charges | $ 1.7 | |||||
Increase (Decrease) Tax Expense (Benefit), Cancellation of Debt Income | 1,231.5 | |||||
Increase (Decrease) Income Tax Expense (Benefit), Deferred Tax Assets, Reorganization Adjustments | 141.3 | |||||
Increase (Decrease) Income Tax Expense (Benefit), Valuation Allowance Reduction on Deferred Tax Assets | 1,270.1 | |||||
Increase (Decrease) Income Tax Expense (Benefit), Deferred Tax Liabilities Fresh Start Adjustments | 297.1 | |||||
Increase (Decrease), Tax Expense (Benefit), Uncertain Tax Positions | $ 285.3 | |||||
Unrecognized tax benefits, which if favorably settled would benefit the effective tax rate | $ 15.4 | 15.4 | ||||
CARES Act [Member] | ||||||
Income Taxes [Line Items] | ||||||
Proceeds from Income Tax Refunds | 141.6 | |||||
Operational activity | ||||||
Income Taxes [Line Items] | ||||||
Proceeds from Income Tax Refunds | $ 3.8 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | |
Earnings Per Share | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.2 | 0 | 0.5 | 0 | 0.5 |
Weighted-average shares outstanding - basic (in shares) | 13.2 | 13.2 | 84.8 | 13.2 | 84.8 |
Weighted-average shares outstanding - diluted (in shares) | 13.2 | 13.2 | 84.8 | 13.2 | 84.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 30, 2022 |
Raw materials and supplies | $ 102.2 | $ 80.2 |
Work in process | 485.9 | 552.1 |
Finished goods | 272.4 | 315.3 |
Inventory, Net, Total | $ 860.5 | $ 947.6 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 30, 2022 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 503 | $ 485 |
Less: accumulated depreciation | (49.8) | (27.4) |
Property, plant and equipment, net | $ 453.2 | $ 457.6 |
Property, Plant and Equipment D
Property, Plant and Equipment Depreciation (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | |
Property, Plant and Equipment | |||||
Depreciation | $ 2.9 | $ 11.8 | $ 17.9 | $ 23.7 | $ 40 |
Depreciation | $ 2.9 | $ 11.8 | $ 17.9 | $ 23.7 | $ 40 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Dec. 30, 2022 | |
Schedule of Intangible Asset by Major Class [Line Items] | ||||||
Intangible assets, net | $ 2,581.3 | $ 2,581.3 | $ 2,843.8 | |||
Amortization of Intangible Assets | $ 45.5 | $ 129.3 | $ 126.7 | $ 262.5 | $ 281.8 | |
Loss from continuing operations | $ (4.83) | $ (56.74) | $ (2.29) | $ (75.68) | $ (3.70) | |
In-process Research and Development | ||||||
Schedule of Intangible Asset by Major Class [Line Items] | ||||||
Non-Amortizable intangible assets, gross | $ 121.3 | $ 121.3 | 121.3 | |||
Completed Technology | ||||||
Schedule of Intangible Asset by Major Class [Line Items] | ||||||
Amortizable intangible assets, gross | 3,041.2 | 3,041.2 | 3,041.2 | |||
Accumulated amortization | $ 581.2 | $ 581.2 | $ 318.7 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of Intangible Assets | $ 45.5 | $ 129.3 | $ 126.7 | $ 262.5 | $ 281.8 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Future Amortization Expense, Intangible Assets) (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2023 | $ 246.7 |
Fiscal 2024 | 446.1 |
Fiscal 2025 | 385.1 |
Fiscal 2026 | 337.5 |
Fiscal 2027 | $ 284.4 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 30, 2022 | Jun. 16, 2022 |
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | $ 20.2 | $ 0 | |
Long-term Debt, Current Maturities | 2,381.2 | 44.1 | |
Long-term debt | |||
Total Debt Issuance Costs | 20.2 | 20.8 | |
Total Debt | 3,118.8 | 3,092.6 | |
Debt Instrument, Face Amount | 3,512 | 3,534.1 | |
Long-term Debt | 737.6 | 3,048.5 | |
Debt Issuance Costs | 0 | 20.8 | |
Debt Instrument, Face Amount, Current Maturity | 2,695.1 | 44.1 | |
Debt Instrument, Face Amount, Noncurrent Maturity | 816.9 | 3,490 | |
10.00% Second Lien Senior Notes | |||
Long-term debt | |||
Long-term Debt | 257.6 | 242.2 | |
Debt Issuance Costs | 0 | 0 | |
Debt Instrument, Face Amount, Noncurrent Maturity | 321.9 | 321.9 | |
10.00% First Lien Senior Notes | |||
Long-term debt | |||
Debt Instrument, Face Amount | $ 495 | ||
Long-term Debt | 480 | 475.9 | |
Debt Issuance Costs | 0 | 0 | |
Debt Instrument, Face Amount, Noncurrent Maturity | 495 | 495 | |
2017 Replacement Term Loan | |||
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | 0 | 0 | |
Long-term Debt, Current Maturities | 1,220.8 | 34.8 | |
Long-term debt | |||
Total Debt | 1,220.8 | 1,222.1 | |
Debt Instrument, Face Amount | 1,356.7 | ||
Long-term Debt | 0 | 1,187.3 | |
Debt Issuance Costs | 0 | 0 | |
Debt Instrument, Face Amount, Current Maturity | 1,356.7 | 34.8 | |
Debt Instrument, Face Amount, Noncurrent Maturity | 0 | 1,339.3 | |
2018 Replacement Term Loan | |||
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | 0 | 0 | |
Long-term Debt, Current Maturities | 326.3 | 9.3 | |
Long-term debt | |||
Total Debt | 326.3 | 326.9 | |
Debt Instrument, Face Amount | 360.1 | ||
Long-term Debt | 0 | 317.6 | |
Debt Issuance Costs | 0 | 0 | |
Debt Instrument, Face Amount, Current Maturity | 360.1 | 9.3 | |
Debt Instrument, Face Amount, Noncurrent Maturity | 0 | 355.5 | |
Eleven Point Five Percent First Lien Senior Secured Notes | |||
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | 19 | 0 | |
Long-term Debt, Current Maturities | 650 | 0 | |
Long-term debt | |||
Long-term Debt | 0 | 650 | |
Debt Issuance Costs | 0 | 20.8 | |
Debt Instrument, Face Amount, Current Maturity | 650 | 0 | |
Debt Instrument, Face Amount, Noncurrent Maturity | 0 | 650 | |
Ten Point Zero Percent Second Lien Notes due 2029 | |||
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | 0 | 0 | |
Long-term Debt, Current Maturities | 184.1 | 0 | |
Long-term debt | |||
Long-term Debt | 0 | 175.5 | |
Debt Issuance Costs | 0 | 0 | |
Debt Instrument, Face Amount, Current Maturity | 328.3 | 0 | |
Debt Instrument, Face Amount, Noncurrent Maturity | 0 | 328.3 | |
Receivables financing facility due June 2026 | |||
Current maturities of long-term debt | |||
Debt Issuance Costs, Current, Net | 1.2 | 0 | |
Long-term Debt, Current Maturities | 0 | 0 | |
Long-term debt | |||
Debt Instrument, Face Amount, Current Maturity | $ 0 | $ 0 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 30, 2022 | Jun. 16, 2022 |
Debt Instrument | |||
Debt Instrument, Face Amount | $ 3,512 | $ 3,534.1 | |
10.00% First Lien Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Face Amount | $ 495 | ||
2017 Replacement Term Loan | |||
Debt Instrument | |||
Debt Instrument, Face Amount | 1,356.7 | ||
2018 Replacement Term Loan | |||
Debt Instrument | |||
Debt Instrument, Face Amount | $ 360.1 |
Debt (Schedule of Applicable In
Debt (Schedule of Applicable Interest Rates on Variable-rate Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 30, 2022 | |
Schedule of Applicable Interest Rate on Variable-rate Debt [Line Items] | |||
Total Debt | $ 3,118.8 | $ 3,092.6 | |
Debt Instrument, Face Amount | $ 3,512 | 3,534.1 | |
Fixed-rate instruments | |||
Schedule of Applicable Interest Rate on Variable-rate Debt [Line Items] | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 10.54% | ||
Total Debt | $ 1,795.2 | ||
2017 Replacement Term Loan | |||
Schedule of Applicable Interest Rate on Variable-rate Debt [Line Items] | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | [1] | 10.15% | |
Total Debt | $ 1,220.8 | 1,222.1 | |
Debt Instrument, Face Amount | $ 1,356.7 | ||
2018 Replacement Term Loan | |||
Schedule of Applicable Interest Rate on Variable-rate Debt [Line Items] | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | [1] | 10.40% | |
Total Debt | $ 326.3 | $ 326.9 | |
Debt Instrument, Face Amount | $ 360.1 | ||
[1]Includes the impact of the interest rate cap agreement, which is discussed further in Note 12. |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 30, 2022 |
Others | ||
Guarantor Obligations [Line Items] | ||
Maximum future payments | $ 30.1 | |
Asset Pledged as Collateral [Member] | ||
Guarantor Obligations [Line Items] | ||
Restricted Cash | 38.6 | |
Mallinckrodt Baker | Indemnification Agreement | ||
Guarantor Obligations [Line Items] | ||
Escrow Deposit | 30 | |
Mallinckrodt Baker | Indemnification Agreement | Other current and non-current assets | ||
Guarantor Obligations [Line Items] | ||
Escrow Deposit | $ 19.7 | $ 19.3 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | May 01, 2007 Defendent | Jun. 30, 2023 USD ($) | Dec. 30, 2022 USD ($) | Sep. 09, 2022 USD ($) | Jun. 16, 2022 USD ($) | Sep. 28, 2021 USD ($) | Dec. 27, 2019 USD ($) | Aug. 07, 2018 USD ($) | Apr. 11, 2014 USD ($) |
Loss Contingencies [Line Items] | |||||||||
Environmental liabilities | $ 36,400,000 | ||||||||
Environmental liabilities, current | 1,200,000 | ||||||||
Environmental liabilities | 35,200,000 | $ 35,800,000 | |||||||
Debt Instrument, Face Amount | 3,512,000,000 | $ 3,534,100,000 | |||||||
Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Number of Defendants | Defendent | 70 | ||||||||
Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | $ 1,380,000,000 | $ 1,700,000,000 | |||||||
Loss Contingency, Settlement Agreement, Amount | $ 300,000 | $ 280,600 | |||||||
Upper 9 Miles, Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | 21,000,000 | $ 441,000,000 | |||||||
Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | 18,100,000 | ||||||||
Minimum | Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | 365,000,000 | ||||||||
Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | $ 48,100,000 | ||||||||
Maximum | Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | $ 3,200,000,000 | ||||||||
10.00% First Lien Senior Notes | |||||||||
Loss Contingencies [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 495,000,000 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2023 | Mar. 13, 2023 | Dec. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative, Notional Amount | $ 860 | |||
Derivative, Interest Rate Cap, Premium | $ 20 | |||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), Reclassification, before Tax | 0.9 | $ 1.2 | ||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | 11.1 | 6.1 | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 6.7 | 6.7 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative, Cap Interest Rate | 3.84% | |||
London Interbank Offered Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative, Cap Interest Rate | 4.65% | |||
Level 3 | Other current and non-current assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Cash surrender value of life insurance | 46.6 | 46.6 | $ 46.7 | |
Indemnification Agreement | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Restricted Cash and Cash Equivalents | $ 58.3 | $ 58.3 | $ 57.2 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 30, 2022 |
Assets: | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 23.8 | |
Other Assets, Fair Value Disclosure | 9.1 | $ 25.5 |
Assets, Fair Value Disclosure | 72 | 62.1 |
Level 1 | Indemnification Agreement | ||
Liabilities: | ||
Restricted Cash and Cash Equivalents | 58.3 | 57.2 |
Recurring | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 39.1 | 36.6 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 18.7 | 26 |
Contingent consideration and acquired contingent liabilities | 0.2 | 7.3 |
Total liabilities at fair value | 18.9 | 33.3 |
Recurring | Level 1 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 26.5 | 24.8 |
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 0 | |
Other Assets, Fair Value Disclosure | 9.1 | 25.5 |
Assets, Fair Value Disclosure | 35.6 | 50.3 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 0 | 0 |
Contingent consideration and acquired contingent liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 12.6 | 11.8 |
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 23.8 | |
Other Assets, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 36.4 | 11.8 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 18.7 | 26 |
Contingent consideration and acquired contingent liabilities | 0 | 0 |
Total liabilities at fair value | 18.7 | 26 |
Recurring | Level 3 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 0 | 0 |
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 0 | |
Other Assets, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 0 | 0 |
Contingent consideration and acquired contingent liabilities | 0.2 | 7.3 |
Total liabilities at fair value | $ 0.2 | $ 7.3 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Schedule of Carrying Amount and Fair Value of Long-term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 30, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | $ 2,381.2 | $ 44.1 |
Total debt, fair value | 2,359.5 | 2,684.6 |
Long-term Debt | 737.6 | 3,048.5 |
Total Debt | 3,118.8 | 3,092.6 |
10.00% Second Lien Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 60.3 | 216.8 |
Long-term Debt | 257.6 | 242.2 |
10.00% First Lien Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 389.8 | 425.9 |
Long-term Debt | 480 | 475.9 |
Eleven Point Five Percent First Lien Senior Secured Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 650 | 0 |
Total debt, fair value | 557.9 | 552.6 |
Long-term Debt | 0 | 650 |
Ten Point Zero Percent Second Lien Notes due 2029 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 184.1 | 0 |
Total debt, fair value | 52.7 | 176.7 |
Long-term Debt | 0 | 175.5 |
2017 Replacement Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 1,220.8 | 34.8 |
Total debt, fair value | 1,026.2 | 1,037.8 |
Long-term Debt | 0 | 1,187.3 |
Total Debt | 1,220.8 | 1,222.1 |
2018 Replacement Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 326.3 | 9.3 |
Total debt, fair value | 272.6 | 274.8 |
Long-term Debt | 0 | 317.6 |
Total Debt | $ 326.3 | $ 326.9 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements (Schedules of Concentration of Risk) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | |
Distributor Concentration Risk | Revenue from Contract with Customer Benchmark [Member] | CuraScript, Inc | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 15.60% | |||||
Distributor Concentration Risk | Revenue from Contract with Customer Benchmark [Member] | FFF Enterprises, Inc. | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 23.60% | 23.80% | 26.90% | 21.40% | 11.80% | |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Amerisource Bergen Corporation [Member] | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 24.50% | 23.30% | ||||
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | McKesson Corporation [Member] | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 21.60% | 17.30% | ||||
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | FFF Enterprises, Inc. | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 16.20% | |||||
Product Concentration Risk | Net Sales Attributable to Products | Acthar | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 32.40% | 24.60% | 24.60% | 22.10% | 25.40% | |
Product Concentration Risk | Net Sales Attributable to Products | Inomax | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 15.80% | 16.20% | 17.40% | 17.70% | 19% | |
Product Concentration Risk | Net Sales Attributable to Products | Therakos [Member] | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 12% | 13.20% | 13% | 13.50% | 12.50% | |
Product Concentration Risk | Net Sales Attributable to Products | APAP | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 13.30% | 12.60% | 13.10% | 11.80% | 11% |
Segment Data (Schedule of Segme
Segment Data (Schedule of Segment Reporting Information by Business Segment) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | ||||||
Net sales | $ 85 | $ 475 | $ 383.7 | $ 899.6 | $ 874.6 | |||||
Operating Income (Loss) | (54.8) | (56.6) | (37) | (159.2) | (57.8) | |||||
Depreciation and amortization | (45.5) | (129.3) | (126.7) | (262.5) | (281.8) | |||||
Employee Benefits and Share-based Compensation | 0 | (2.7) | (0.5) | (5.3) | (1.7) | |||||
Restructuring and related charges, net | (1.1) | (1.7) | (9.6) | |||||||
Specialty Generics | ||||||||||
Net sales | 26.8 | 194.9 | 136 | 367.5 | 287.5 | |||||
Restructuring and related charges, net | 0 | 0 | (3.5) | |||||||
Corporate, Non-Segment | ||||||||||
Corporate and unallocated expenses | (0.9) | [1] | 0.6 | [2] | (15.4) | [2] | (13.4) | [1] | (48.2) | [1] |
Depreciation and amortization | (48.4) | (141.1) | (144.6) | (286.2) | (321.8) | |||||
Restructuring and related charges, net | (1.1) | 0.2 | (2.8) | (1) | (9.6) | |||||
Separation Costs | (9.2) | [3],[4] | (10.3) | [4] | (7) | [4] | (15.2) | [3] | (9) | [3] |
Operating Segments | ||||||||||
Operating Income (Loss) | 4.8 | 96.7 | 133.3 | 161.9 | 332.5 | |||||
Operating Segments | Specialty Brands | ||||||||||
Net sales | 58.2 | 280.1 | 247.7 | 532.1 | 587.1 | |||||
Operating Income (Loss) | 4.5 | 61.6 | 102.4 | 94 | 267.2 | |||||
Operating Segments | Specialty Generics | ||||||||||
Net sales | 26.8 | 194.9 | 136 | 367.5 | 287.5 | |||||
Operating Income (Loss) | $ 0.3 | $ 35.1 | $ 30.9 | $ 67.9 | $ 65.3 | |||||
[1]Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments.[2]Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments.[3]Represents costs included in SG&A expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence.[4]Represents costs included in selling, general and administrative ("SG&A") expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence. |
Segment Data (Schedule of Net S
Segment Data (Schedule of Net Sales from External Customers by Products) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | Jun. 30, 2023 | Jun. 16, 2022 | ||
Segment Reporting Information | ||||||
Net sales | $ 85 | $ 475 | $ 383.7 | $ 899.6 | $ 874.6 | |
Specialty Brands | Operating Segments | ||||||
Segment Reporting Information | ||||||
Net sales | 58.2 | 280.1 | 247.7 | 532.1 | 587.1 | |
Specialty Generics | ||||||
Segment Reporting Information | ||||||
Net sales | 26.8 | 194.9 | 136 | 367.5 | 287.5 | |
Specialty Generics | Operating Segments | ||||||
Segment Reporting Information | ||||||
Net sales | 26.8 | 194.9 | 136 | 367.5 | 287.5 | |
Acthar | Specialty Brands | ||||||
Segment Reporting Information | ||||||
Net sales | 27.5 | 116.8 | 94.2 | 198.8 | 221.9 | |
Inomax | Specialty Brands | ||||||
Segment Reporting Information | ||||||
Net sales | 13.5 | 76.9 | 66.8 | 159.6 | 165.8 | |
Therakos immunotherapy | Specialty Brands | ||||||
Segment Reporting Information | ||||||
Net sales | 10.2 | 62.9 | 49.7 | 121.6 | 109.6 | |
Amitiza [Member] | Specialty Brands | ||||||
Segment Reporting Information | ||||||
Net sales | [1] | 5.8 | 18.6 | 33.8 | 43.1 | 81.5 |
Other | Specialty Brands | ||||||
Segment Reporting Information | ||||||
Net sales | 1.2 | 1.5 | 3.2 | 3.4 | 8.3 | |
Opioids | Specialty Generics | ||||||
Segment Reporting Information | ||||||
Net sales | 8.7 | 72.1 | 38.8 | 134.3 | 88.8 | |
ADHD | Specialty Generics | ||||||
Segment Reporting Information | ||||||
Net sales | 1.8 | 19 | 6.8 | 41.4 | 17.5 | |
Addiction Treatment | Specialty Generics | ||||||
Segment Reporting Information | ||||||
Net sales | 2.5 | 16.1 | 14.1 | 31.7 | 30 | |
Other Generics | Specialty Generics | ||||||
Segment Reporting Information | ||||||
Net sales | 0.1 | 2.4 | 2 | 4.2 | 4.9 | |
Generics | Specialty Generics | ||||||
Segment Reporting Information | ||||||
Net sales | 13.1 | 109.6 | 61.7 | 211.6 | 141.2 | |
Controlled substances | Specialty Generics | ||||||
Segment Reporting Information | ||||||
Net sales | 1.7 | 20.9 | 17.2 | 39.4 | 37.6 | |
APAP | Specialty Generics | ||||||
Segment Reporting Information | ||||||
Net sales | 11.3 | 59.8 | 50.2 | 106.2 | 96.5 | |
Other API | Specialty Generics | ||||||
Segment Reporting Information | ||||||
Net sales | 0.7 | 4.6 | 6.9 | 10.3 | 12.2 | |
API | Specialty Generics | ||||||
Segment Reporting Information | ||||||
Net sales | 13.7 | 85.3 | 74.3 | 155.9 | 146.3 | |
Terlivaz | Specialty Brands | ||||||
Segment Reporting Information | ||||||
Net sales | $ 0 | $ 3.4 | $ 0 | $ 5.6 | $ 0 | |
[1]Amitiza consists of both product net sales and royalties. Refer to Note 2 for further details on Amitiza's revenues. |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jul. 13, 2023 USD ($) |
Subsequent Event [Member] | Receivables financing facility due June 2026 | |
Subsequent Event [Line Items] | |
Proceeds from (Repayments of) Debt | $ 100 |