Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ENDP | |
Entity Registrant Name | Endo International plc | |
Entity Central Index Key | 1,593,034 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Ordinary Shares Outstanding | 224,344,760 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,118,885 | $ 986,605 |
Restricted cash and cash equivalents | 289,667 | 320,453 |
Accounts receivable | 467,156 | 517,436 |
Inventories, net | 332,787 | 391,437 |
Prepaid expenses and other current assets | 50,697 | 43,098 |
Income taxes receivable | 16,407 | 12,048 |
Total current assets | 2,275,599 | 2,271,077 |
MARKETABLE SECURITIES | 1,693 | 1,456 |
PROPERTY, PLANT AND EQUIPMENT, NET | 495,546 | 523,971 |
GOODWILL | 4,056,668 | 4,450,082 |
OTHER INTANGIBLES, NET | 3,624,216 | 4,317,684 |
DEFERRED INCOME TAXES | 6 | 11,582 |
OTHER ASSETS | 67,934 | 59,728 |
TOTAL ASSETS | 10,521,662 | 11,635,580 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 1,019,004 | 1,096,825 |
Current portion of legal settlement accrual | 966,633 | 1,087,793 |
Current portion of long-term debt | 34,150 | 34,205 |
Income taxes payable | 1,681 | 2,086 |
Total current liabilities | 2,021,468 | 2,220,909 |
DEFERRED INCOME TAXES | 43,630 | 43,131 |
LONG-TERM DEBT, LESS CURRENT PORTION, NET | 8,228,612 | 8,242,032 |
LONG-TERM LEGAL SETTLEMENT ACCRUAL, LESS CURRENT PORTION | 35,450 | 210,450 |
OTHER LIABILITIES | 411,961 | 434,178 |
COMMITMENTS AND CONTINGENCIES (NOTE 14) | ||
SHAREHOLDERS' (DEFICIT) EQUITY: | ||
Euro deferred shares, $0.01 par value; 4,000,000 shares authorized and issued at both September 30, 2018 and December 31, 2017 | 46 | 48 |
Ordinary shares, $0.0001 par value; 1,000,000,000 shares authorized; 224,288,553 and 223,331,706 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 22 | 22 |
Additional paid-in capital | 8,830,351 | 8,791,170 |
Accumulated deficit | (8,833,024) | (8,096,539) |
Accumulated other comprehensive loss | (216,854) | (209,821) |
Total shareholders' (deficit) equity | (219,459) | 484,880 |
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY | $ 10,521,662 | $ 11,635,580 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Euro deferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Euro deferred shares, shares authorized | 4,000,000 | 4,000,000 |
Euro deferred shares, shares issued | 4,000,000 | 4,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 224,288,553 | 223,331,706 |
Common stock, shares outstanding | 224,288,553 | 223,331,706 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
TOTAL REVENUES | $ 745,466 | $ 786,887 | $ 2,160,689 | $ 2,700,218 |
COSTS AND EXPENSES: | ||||
Cost of revenues | 412,965 | 514,522 | 1,198,468 | 1,722,885 |
Selling, general and administrative | 163,791 | 135,880 | 478,615 | 468,675 |
Research and development | 39,683 | 39,644 | 160,431 | 123,522 |
Litigation-related and other contingencies, net | (1,750) | (12,352) | 15,370 | (14,016) |
Asset impairment charges | 142,217 | 94,924 | 613,400 | 1,023,930 |
Acquisition-related and integration items | 1,288 | 16,641 | 13,284 | 31,711 |
OPERATING LOSS FROM CONTINUING OPERATIONS | (12,728) | (2,372) | (318,879) | (656,489) |
INTEREST EXPENSE, NET | 131,847 | 127,521 | 385,896 | 361,267 |
LOSS ON EXTINGUISHMENT OF DEBT | 0 | 0 | 0 | (51,734) |
OTHER INCOME, NET | (1,507) | (2,097) | (33,216) | (10,843) |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | (143,068) | (127,796) | (671,559) | (1,058,647) |
INCOME TAX EXPENSE (BENEFIT) | 3,003 | (28,109) | 24,729 | (97,517) |
LOSS FROM CONTINUING OPERATIONS | (146,071) | (99,687) | (696,288) | (961,130) |
DISCONTINUED OPERATIONS, NET OF TAX (NOTE 3) | (27,134) | 3,017 | (43,273) | (705,886) |
NET LOSS | $ (173,205) | $ (96,670) | $ (739,561) | $ (1,667,016) |
NET (LOSS) INCOME PER SHARE—BASIC: | ||||
Continuing operations (in dollars per share) | $ (0.65) | $ (0.45) | $ (3.11) | $ (4.31) |
Discontinued operations (in dollars per share) | (0.12) | 0.02 | (0.19) | (3.16) |
Basic (in dollars per share) | (0.77) | (0.43) | (3.30) | (7.47) |
NET (LOSS) INCOME PER SHARE—DILUTED: | ||||
Continuing operations (in dollars per share) | (0.65) | (0.45) | (3.11) | (4.31) |
Discontinued operations (in dollars per share) | (0.12) | 0.02 | (0.19) | (3.16) |
Diluted (in dollars per share) | $ (0.77) | $ (0.43) | $ (3.30) | $ (7.47) |
WEIGHTED AVERAGE SHARES: | ||||
Basic (shares) | 224,132 | 223,299 | 223,829 | 223,157 |
Diluted (shares) | 224,132 | 223,299 | 223,829 | 223,157 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
NET LOSS | $ (173,205) | $ (96,670) | $ (739,561) | $ (1,667,016) |
Net unrealized gain on securities, net of tax: | ||||
Unrealized gain arising during the period | 188 | 333 | ||
Less: reclassification adjustments for (gain) loss realized in net loss | 0 | 0 | 0 | 0 |
Net unrealized gain (loss) on securities | 0 | 188 | 0 | 333 |
Net unrealized gain (loss) on foreign currency: | ||||
Foreign currency translation gain (loss) arising during the period | 4,735 | 9,941 | (7,033) | 35,415 |
Less: reclassification adjustments for loss realized in net loss | 0 | 29,325 | 0 | 29,325 |
Foreign currency translation gain (loss) | 4,735 | 39,266 | (7,033) | 64,740 |
OTHER COMPREHENSIVE INCOME (LOSS) | 4,735 | 39,454 | (7,033) | 65,073 |
COMPREHENSIVE LOSS | $ (168,470) | $ (57,216) | $ (746,594) | $ (1,601,943) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES: | ||
NET LOSS | $ (739,561) | $ (1,667,016) |
Adjustments to reconcile Net loss to Net cash provided by operating activities: | ||
Depreciation and amortization | 556,503 | 742,936 |
Inventory step-up | 261 | 281 |
Share-based compensation | 43,722 | 40,252 |
Amortization of debt issuance costs and discount | 15,289 | 17,698 |
Deferred income taxes | 13,118 | (239,174) |
Change in fair value of contingent consideration | 11,731 | 23,574 |
Loss on extinguishment of debt | 0 | 51,734 |
Asset impairment charges | 613,400 | 1,023,930 |
Gain on sale of business and other assets | (29,859) | (5,074) |
Changes in assets and liabilities which provided (used) cash: | ||
Accounts receivable | 31,634 | 471,448 |
Inventories | 52,499 | 91,047 |
Prepaid and other assets | 993 | 11,626 |
Accounts payable, accrued expenses and other liabilities | (367,979) | (159,245) |
Income taxes payable/receivable | (4,759) | 18,145 |
Net cash provided by operating activities | 196,992 | 422,162 |
INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment, excluding capitalized interest | (56,544) | (94,102) |
Capitalized interest payments | (2,569) | 0 |
Decrease in notes receivable | 0 | 7,000 |
Proceeds from sale of business and other assets, net | 43,753 | 96,066 |
Other investing activities | 1,678 | 0 |
Net cash (used in) provided by investing activities | (13,682) | 8,964 |
FINANCING ACTIVITIES: | ||
Proceeds from issuance of notes | 0 | 300,000 |
Proceeds from issuance of term loans | 0 | 3,415,000 |
Principal payments on term loans | (25,614) | (3,722,413) |
Principal payments on other indebtedness | (3,921) | (4,912) |
Deferred financing fees | 0 | (57,358) |
Payments for contingent consideration | (28,664) | (63,712) |
Payments of tax withholding for restricted shares | (5,082) | (1,958) |
Exercise of options | 473 | 0 |
Net cash used in financing activities | (62,808) | (135,353) |
Effect of foreign exchange rate | (608) | 3,983 |
Movement in cash held for sale | 0 | (1,450) |
NET INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS | 119,894 | 298,306 |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,311,014 | 805,180 |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD | 1,430,908 | 1,103,486 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid into Qualified Settlement Funds for mesh legal settlements | 216,770 | 623,128 |
Cash paid out of Qualified Settlement Funds for mesh legal settlements | 248,485 | 545,379 |
Other cash distributions for mesh legal settlements | $ 17,114 | $ 3,625 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1. BASIS OF PRESENTATION Endo International plc is an Ireland-domiciled, global specialty pharmaceutical company focused on generic and branded pharmaceuticals. We aim to be the premier partner to healthcare professionals and payment providers, delivering an innovative suite of generic and branded drugs to meet patients’ needs. Unless otherwise indicated or required by the context, references throughout to “Endo,” the “Company,” “we,” “our,” or “us” refer to financial information and transactions of Endo International plc and its subsidiaries. The accompanying unaudited Condensed Consolidated Financial Statements of Endo International plc and its subsidiaries have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying Condensed Consolidated Financial Statements of Endo International plc and its subsidiaries, which are unaudited, include all normal and recurring adjustments necessary for a fair statement of the Company’s financial position as of September 30, 2018 and the results of our operations and our cash flows for the periods presented. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . The year-end Condensed Consolidated Balance Sheet data as of December 31, 2017 was derived from audited financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Consolidated Financial Statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 . Certain prior period amounts have been reclassified to conform to the current period presentation as a result of our fourth-quarter 2017 adoption of Accounting Standards Update (ASU) No. 2016-18 “Statement of Cash Flows (Topic 230) - Restricted Cash” (ASU 2016-18). The table below presents the effects of ASU 2016-18 on the Company’s Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2017 (in thousands): Prior to Adoption Impact of Adoption Subsequent to Adoption Net cash provided by operating activities $ 424,062 $ (1,900 ) $ 422,162 Net cash (used in) provided by investing activities (69,802 ) 78,766 8,964 Net cash used in financing activities (135,353 ) — (135,353 ) Effect of foreign exchange rate 3,686 297 3,983 Movement in cash held for sale (1,450 ) — (1,450 ) Net change (1) $ 221,143 $ 77,163 $ 298,306 Beginning-of-period balance (2) 517,250 287,930 805,180 End-of-period balance (2) $ 738,393 $ 365,093 $ 1,103,486 __________ (1) This line refers to the “Net increase in cash and cash equivalents” prior to the adoption of ASU 2016-18 and the “Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents” after the adoption. (2) These lines refer to the beginning or end of period amounts of “Cash and cash equivalents” prior to the adoption of ASU 2016-18 and the beginning or end of period amounts of “Cash, cash equivalents, restricted cash and restricted cash equivalents” after the adoption. Additionally, the information in this Quarterly Report on Form 10-Q has been retrospectively recast to reflect the change in reportable segments referenced in Note 6. Segment Results . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies Updated since December 31, 2017 Significant changes to our significant accounting policies since December 31, 2017 are detailed below. For additional discussion of the Company’s significant accounting policies, see Note 2. Summary of Significant Accounting Policies in the Consolidated Financial Statements , included in Part IV, Item 15 of our Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the Securities and Exchange Commission on February 27, 2018. Revenue Recognition . The Company adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606) on January 1, 2018 using the modified retrospective method for all revenue-generating contracts, including modifications thereto, that were not completed contracts at the date of adoption. For further discussion of the impact of adoption, refer to the “ Recent Accounting Pronouncements Adopted or Otherwise Effective as of September 30, 2018 ” section below. ASC 606 applies to contracts with commercial substance that establish the payment terms and each party’s rights regarding the goods or services to be transferred, to the extent collection of substantially all of the related consideration is probable. Under ASC 606, we recognize revenue for contracts meeting these criteria when (or as) we satisfy our performance obligations for such contracts by transferring control of the underlying promised goods or services to our customers. The amount of revenue we recognize reflects our estimate of the consideration we expect to be entitled to receive, subject to certain constraints, in exchange for such goods or services. This amount is referred to as the transaction price. Our revenue consists almost entirely of sales of our pharmaceutical products to customers, whereby we ship products to a customer pursuant to a purchase order and invoice the customer upon shipment. For contracts such as these, revenue is recognized when our contractual performance obligations have been fulfilled and control has been transferred to the customer pursuant to the contract’s terms, which is generally upon delivery to the customer. The amount of revenue we recognize is equal to the fixed amount of the transaction price, adjusted for our estimates of a number of significant variable components including, but not limited to, estimates for chargebacks, rebates, sales incentives and allowances, distribution service agreement (DSA) and other fees for services, returns and allowances. The Company utilizes the expected value method when estimating the amount of variable consideration to include in the transaction price with respect to each of the foregoing variable components and the most likely amount method when estimating the amount of variable consideration to include in the transaction price with respect to future potential milestone payments that do not qualify for the sales- and usage-based royalty exception. Variable consideration is included in the transaction price only to the extent that it is probable that a significant revenue reversal will not occur when the uncertainty associated with the variable consideration is resolved. Payment terms for these types of contracts generally fall within 30 to 90 days of invoicing. Our most significant components of variable consideration are further described below. Our estimates for these components are based on factors such as historical experience, estimated future trends, estimated customer inventory levels, current contract sales terms with our direct and indirect customers and other competitive factors. Returns and Allowances. Consistent with industry practice, we maintain a return policy that allows our customers to return products within a specified period of time both subsequent to and, in certain cases, prior to the products’ expiration date. Our return policy generally allows customers to receive credit for expired products within six months prior to expiration and within one year after expiration. Our provision for returns and allowances consists of our estimates for future product returns, pricing adjustments and delivery errors. Rebates. Our provision for rebates, sales incentives and other allowances can generally be categorized into the following four types: • direct rebates; • indirect rebates; • governmental rebates, including those for Medicaid, Medicare and TRICARE, among others; and • managed-care rebates. We establish contracts with wholesalers, chain stores and indirect customers that provide for rebates, sales incentives, DSA fees and other allowances. Some customers receive rebates upon attaining established sales volumes. Direct rebates are generally rebates paid to direct purchasing customers based on a percentage applied to a direct customer’s purchases from us, including fees paid to wholesalers under our DSAs, as described above. Indirect rebates are rebates paid to indirect customers which have purchased our products from a wholesaler under a contract with us. We are subject to rebates on sales made under governmental and managed-care pricing programs based on relevant statutes with respect to governmental pricing programs and contractual sales terms with respect to managed-care providers and group purchasing organizations. For example, we are required to provide a 50% discount on our brand-name drugs to patients who fall within the Medicare Part D coverage gap, also referred to as the donut hole. We participate in various federal and state government-managed programs whereby discounts and rebates are provided to participating government entities. For example, Medicaid rebates are amounts owed based upon contractual agreements or legal requirements with public sector (Medicaid) benefit providers after the final dispensing of the product by a pharmacy to a benefit plan participant. Chargebacks. We market and sell products to both: (i) direct customers including wholesalers, distributors, warehousing pharmacy chains and other direct purchasing groups and (ii) indirect customers including independent pharmacies, non-warehousing chains, managed-care organizations, group purchasing organizations and government entities. We enter into agreements with certain of our indirect customers to establish contract pricing for certain products. These indirect customers then independently select a wholesaler from which to purchase the products at these contracted prices. Alternatively, we may pre-authorize wholesalers to offer specified contract pricing to other indirect customers. Under either arrangement, we provide credit to the wholesaler for any difference between the contracted price with the indirect customer and the wholesaler’s invoice price. Such credit is called a chargeback. New Significant Accounting Policies Added since December 31, 2017 Contract Assets and Contract Liabilities . Contract assets represent the Company’s right to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditioned on something other than the passage of time including, for example, the entity’s future performance. The Company records revenue and a corresponding contract asset when it fulfills a contractual performance obligation, but must also fulfill one or more additional performance obligations before being entitled to payment. Once the Company’s right to consideration becomes unconditional, the contract asset amount is reclassified as Accounts receivable. Contract liabilities represent the Company’s obligation to transfer goods or services to a customer. The Company records a contract liability generally upon receipt of consideration in advance of fulfilling one or more of its contractual performance obligations. Upon completing the corresponding performance obligation, the contract liability amount is reversed and revenue is recognized. Contract assets and liabilities related to rights and obligations arising from a single contract, or a series of contracts combined and accounted for as a single contract, are generally presented on a net basis. Contract assets and liabilities are further described in Note 11. Contract Assets and Liabilities . Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted as of September 30, 2018 In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, “Leases (Topic 842)” (ASU 2016-02) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases” (ASU 2018-10), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU No. 2018-11, “Leases (Topic 842) - Targeted Improvements” (ASU 2018-11), which addresses implementation issues related to the new lease standard. This guidance will be effective for the Company beginning in the first quarter of 2019, with early application permitted. The Company plans to adopt this guidance in the first quarter of 2019 using the modified retrospective approach and will recognize a cumulative-effect adjustment to the opening balance of Accumulated deficit in that period. This guidance includes a number of optional practical expedients that the Company may elect to apply, including an expedient that permits lease agreements that are twelve months or less to be excluded from the balance sheet. The Company is continuing to evaluate the impact that this new guidance will have on its consolidated financial statements, including its disclosures. It is expected that the primary impact upon adoption will be the recognition, on a discounted basis, of the Company’s minimum commitments under noncancelable operating leases as right of use assets and obligations on the consolidated balance sheets. This will result in a significant increase in assets and liabilities on the Company’s consolidated balance sheets. In preparation for the adoption of this guidance, the Company is continuing the process of identifying and validating the Company’s lease information and evaluating the impact that this new guidance will have on its processes and controls. In February 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ” (ASU 2018-02). ASU 2018-02 allows for a reclassification from accumulated other comprehensive income or loss to retained earnings or accumulated deficit for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (TCJA). ASU 2018-02 also requires certain related disclosures. ASU 2018-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recognized. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-02 on the Company’s consolidated results of operations and financial position. In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements” (ASU 2018-09). ASU 2018-09 makes changes to a variety of topics to clarify, correct errors in or make minor improvements to the Accounting Standards Codification. Certain of these provisions are effective immediately; however, these provisions did not have a material impact on the Company’s financial statements or disclosures. The remaining provisions are generally effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company is currently evaluating the impact of these remaining provisions of ASU 2018-09 on the Company’s consolidated results of operations and financial position. In August 2018, the FASB issued ASU No. 2018-13, “ Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ” (ASU 2018-13). ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement . ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Certain aspects of ASU 2018-13 require prospective treatment, while others require retrospective treatment. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-13 on the Company’s disclosures. In August 2018, the FASB issued ASU No. 2018-15, “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ” (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (including hosting arrangements where a software license is deemed to exist). ASU 2018-15 also requires the customer to expense any such capitalized implementation costs over the term of the hosting arrangement and to apply the existing impairment guidance for long-lived assets to such capitalized costs. Additionally, ASU 2018-15 sets forth required disclosures and guidance on financial statement classification for expenses, cash flows and balances related to implementation costs within the scope of ASU 2018-15. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. ASU 2018-15 may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption and early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-15 on the Company’s consolidated results of operations, financial position and disclosures. In November 2018, the FASB issued ASU No. 2018-18, “ Clarifying the Interaction Between Topic 808 and Topic 606” (ASU 2018-18). The main provisions of ASU 2018-18 include: (i) clarifying that certain transactions between collaborative arrangement participants should be accounted for as revenue when the collaborative arrangement participant is a customer in the context of a unit of account and (ii) precluding the presentation of transactions with collaborative arrangement participants that are not directly related to sales to third parties together with revenue. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. ASU 2018-18 should generally be applied retrospectively to the date of initial application of Topic 606 (January 1, 2018 for the Company) and early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-18 on the Company’s consolidated results of operations, financial position and disclosures. Recent Accounting Pronouncements Adopted or Otherwise Effective as of September 30, 2018 In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which was subsequently amended and supplemented by several additional ASUs including: • ASU No. 2015-14, “ Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” (issued in August 2015), which deferred the effective date of ASU 2014-09 by one year, such that ASU 2014-09 became effective for Endo for annual and interim reporting periods beginning after December 15, 2017; • ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Consideration (Reporting Revenue Gross versus Net)” (issued in March 2016) , which clarified the guidance on reporting revenue as a principal versus agent; • ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (issued in April 2016) , which clarified the guidance on identifying performance obligations and accounting for intellectual property licenses; and • ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” (issued in May 2016 and December 2016, respectively), which amended certain narrow aspects of Topic 606. These ASUs have generally been codified in Accounting Standards Codification Topic 606 “ Revenue from Contracts with Customers ”, and are collectively referred to herein as ASC 606. ASC 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (ASC 605), and requires entities to recognize revenue when control of promised goods or services is transferred to customers at an amount that reflects the consideration to which entities expect to be entitled in exchange for those goods or services. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective method for all revenue-generating contracts, including modifications thereto, that were not completed contracts at the date of adoption. Under the modified retrospective method, results beginning on January 1, 2018 are presented under ASC 606, while the comparative prior period results continue to be presented under ASC 605 based on the accounting standards originally in effect for such periods. As a result of adopting ASC 606, the Company recorded a net decrease of $3.1 million to its accumulated deficit at January 1, 2018, representing the cumulative impact of adopting ASC 606. The current period impact of adoption on our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets is as follows (in thousands, except per share amounts): Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Statement of Operations: Amounts reported under ASC 606 Amounts assuming continued application of ASC 605 Effect of adoption of ASC 606 (1) Amounts reported under ASC 606 Amounts assuming continued application of ASC 605 Effect of adoption of ASC 606 (1) Total revenues $ 745,466 $ 747,571 $ (2,105 ) $ 2,160,689 $ 2,160,132 $ 557 Cost of revenues $ 412,965 $ 414,430 $ (1,465 ) $ 1,198,468 $ 1,199,042 $ (574 ) Other income, net $ (1,507 ) $ (1,507 ) $ — $ (33,216 ) $ (32,216 ) $ (1,000 ) Loss from continuing operations $ (146,071 ) $ (145,431 ) $ (640 ) $ (696,288 ) $ (698,419 ) $ 2,131 Net loss $ (173,205 ) $ (172,565 ) $ (640 ) $ (739,561 ) $ (741,692 ) $ 2,131 Net loss per share—Basic: Continuing operations $ (0.65 ) $ (0.65 ) $ — $ (3.11 ) $ (3.12 ) $ 0.01 Total basic $ (0.77 ) $ (0.77 ) $ — $ (3.30 ) $ (3.31 ) $ 0.01 Net loss per share—Diluted: Continuing operations $ (0.65 ) $ (0.65 ) $ — $ (3.11 ) $ (3.12 ) $ 0.01 Total diluted $ (0.77 ) $ (0.77 ) $ — $ (3.30 ) $ (3.31 ) $ 0.01 __________ (1) Amounts may not add due to rounding. At September 30, 2018 Balance Sheet: Amounts reported under ASC 606 Amounts assuming continued application of ASC 605 Effect of adoption of ASC 606 Assets: Inventories, net $ 332,787 $ 341,189 $ (8,402 ) Prepaid expenses and other current assets $ 50,697 $ 40,368 $ 10,329 Other assets $ 67,934 $ 64,972 $ 2,962 Liabilities: Accounts payable and accrued expenses $ 1,019,004 $ 1,019,322 $ (318 ) Shareholders' (defici t) equity: Accumulated deficit $ (8,833,024 ) $ (8,838,231 ) $ 5,207 In May 2017, the FASB issued ASU No. 2017-09 “Compensation - Stock Compensation” (ASU 2017-09). ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. It is intended to reduce both (1) diversity in practice and (2) cost and complexity when accounting for changes to the terms or conditions of share-based payment awards. ASU 2017-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted the new standard on January 1, 2018 and the amendments in this update will be applied prospectively to any award modified on or after the adoption date. |
Discontinued Operations and Div
Discontinued Operations and Divestitures | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS AND DIVESTITURES | NOTE 3. DISCONTINUED OPERATIONS AND DIVESTITURES Astora The Company’s Astora business ceased business operations on March 31, 2016. The operating results of Astora are reported as Discontinued operations, net of tax in the Condensed Consolidated Statements of Operations for all periods presented. The following table provides the operating results of Astora for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Litigation-related and other contingencies, net $ 19,000 $ — $ 19,000 $ 775,684 Loss from discontinued operations before income taxes $ (27,134 ) $ (8,957 ) $ (43,273 ) $ (813,442 ) Income tax benefit $ — $ (11,974 ) $ — $ (107,556 ) Discontinued operations, net of tax $ (27,134 ) $ 3,017 $ (43,273 ) $ (705,886 ) Amounts reported in the table above as Litigation-related and other contingencies, net relate to charges for vaginal-mesh-related matters. Loss from discontinued operations before income taxes also includes mesh-related legal defense costs and certain other items. The cash flows from discontinued operating activities related to Astora included the impact of net losses of $43.3 million and $705.9 million for the nine months ended September 30, 2018 and 2017 , respectively, and the impact of cash activity related to vaginal mesh cases. There was no net cash used in discontinued investing activities related to Astora during the nine months ended September 30, 2018 or 2017 . There was no depreciation or amortization during the nine months ended September 30, 2018 or 2017 related to Astora. Refer to Note 14. Commitments and Contingencies for amounts and additional information relating to vaginal mesh-related matters. Litha During the fourth quarter of 2016, the Company initiated a process to sell its Litha Healthcare Group Limited and related Sub-Sahara African business assets (Litha) and, on February 27, 2017, the Company entered into a definitive agreement to sell Litha to Acino Pharma AG (Acino). The sale closed on July 3, 2017 and the Company received net cash proceeds of approximately $94.2 million , after giving effect to cash and net working capital purchase price adjustments, as well as a short-term receivable of $4.4 million , which was subsequently collected in October 2017. No additional gain or loss was recognized upon sale. However, in December 2017, Acino became obligated to pay $10.1 million of additional consideration to the Company related to the settlement of certain contingencies set forth in the purchase agreement, which was subsequently paid to the Company in January 2018. In December 2017, the Company recorded a short-term receivable and a gain on the sale of Litha for this amount. The gain was recorded in Other income, net in the Condensed Consolidated Statements of Operations . Litha was part of the Company’s International Pharmaceuticals segment. Litha does not meet the requirements for treatment as a discontinued operation. Somar On June 30, 2017, the Company entered into a definitive agreement to sell Grupo Farmacéutico Somar, S.A.P.I. de C.V. (Somar) and all of the securities thereof, to AI Global Investments (Netherlands) PCC Limited acting for and on behalf of the Soar Cell (the Purchaser). The sale closed on October 25, 2017 and the Purchaser paid an aggregate purchase price of approximately $124 million in cash, after giving effect to estimated cash, debt and net working capital purchase price adjustments. The Company recognized a $1.3 million loss upon sale. Somar was part of the Company’s International Pharmaceuticals segment. Somar does not meet the requirements for treatment as a discontinued operation. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | NOTE 4. RESTRUCTURING January 2017 Restructuring Initiative On January 26, 2017, the Company announced a restructuring initiative implemented as part of its ongoing organizational review (the January 2017 Restructuring Initiative ). This restructuring was intended to further integrate, streamline and optimize the Company’s operations by aligning certain corporate and research and development (R&D) functions with its recently restructured U.S. generics and U.S. branded business units in order to create efficiencies and cost savings. As part of this restructuring, the Company undertook certain cost reduction initiatives, including a reduction of approximately 90 positions of its workforce, primarily related to corporate and branded R&D functions in Malvern, Pennsylvania and Chestnut Ridge, New York, a streamlining of general and administrative expenses, an optimization of commercial spend and a refocusing of research and development efforts. The Company did not incur any pre-tax charges during the three and nine months ended September 30, 2018 as a result of the January 2017 Restructuring Initiative . During the nine months ended September 30, 2017 , the Company incurred total pre-tax charges of approximately $15.1 million related to employee separation and other benefit-related costs. Of the total charges incurred, $6.9 million was included in the U.S. Branded - Specialty & Established Pharmaceuticals segment, $4.9 million was included in Corporate unallocated costs and $3.3 million was included in the U.S. Generic Pharmaceuticals segment. These charges were included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations . There were no charges related to this restructuring initiative for the three months ended September 30, 2017 . The Company does not expect to incur additional material pre-tax restructuring-related expenses related to this initiative. Substantially all cash payments were made by the end of 2017 and substantially all of the actions associated with this restructuring were completed by the end of April 2017. 2017 U.S. Generic Pharmaceuticals Restructuring Initiative On July 21, 2017, the Company announced that after completing a comprehensive review of its manufacturing network, the Company would be ceasing operations and closing its manufacturing and distribution facilities in Huntsville, Alabama (the 2017 U.S. Generic Pharmaceuticals Restructuring Initiative ). The closure of the facilities was completed in June 2018. Employee separation, retention and certain other employee benefit-related costs are expensed ratably over the requisite service period. Other costs including, but not limited to, contract termination fees and product technology transfer costs, are expensed as incurred. As a result of the 2017 U.S. Generic Pharmaceuticals Restructuring Initiative , the Company incurred pre-tax charges of $4.8 million and $59.6 million during the three and nine months ended September 30, 2018 , respectively. During the three months ended September 30, 2018 , the expenses consisted of employee separation and other benefit-related costs of $2.1 million and certain other charges of $2.7 million . During the nine months ended September 30, 2018 , the expenses consisted of charges relating to accelerated depreciation of $35.2 million , employee separation, retention and other benefit-related costs of $9.8 million , asset impairment charges of $2.6 million and certain other charges of $12.0 million . During the three and nine months ended September 30, 2017 , the Company incurred pre-tax charges of $94.2 million and $203.7 million , respectively, related to the 2017 U.S. Generic Pharmaceuticals Restructuring Initiative . The amounts incurred during the three months ended September 30, 2017 included accelerated depreciation charges of $59.8 million , employee separation, retention and other benefit-related costs of $19.5 million , certain property, plant and equipment impairment charges of $14.2 million and certain other charges of $0.6 million . The amounts incurred during the nine months ended September 30, 2017 included accelerated depreciation charges of $59.8 million , employee separation, retention and other benefit-related costs of $19.5 million , certain intangible asset and property, plant and equipment impairment charges of $103.7 million , charges to increase excess inventory reserves of $7.9 million and certain other charges of $12.7 million . In the third quarter of 2017, the Company recorded a correcting entry to increase Property, plant and equipment impairment charges resulting from certain assets that should have been impaired during the second quarter of 2017. The pre-tax impact for the three months ended September 30, 2017 includes a correcting adjustment of $14.2 million , which had a corresponding decrease to Property, plant and equipment, net. The Company determined that the impact to the prior period and the current period are not material to the quarterly periods presented and have no impact on 2017 full year results. These charges are included in the U.S. Generic Pharmaceuticals segment. Accelerated depreciation and employee separation, retention and other benefit-related costs are included in Cost of revenues. Certain other charges are included in both Cost of revenues and Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations . The Company does not expect to incur additional material pre-tax restructuring-related expenses related to this initiative. Substantially all cash payments are expected to be made by the end of the third quarter in 2019. The liability related to the 2017 U.S. Generic Pharmaceuticals Restructuring Initiative is primarily included in Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets . Changes to this liability during the nine months ended September 30, 2018 were as follows (in thousands): Employee Separation and Other Benefit-Related Costs Other Restructuring Costs Total Liability balance as of January 1, 2018 $ 22,975 $ 1,610 $ 24,585 Expenses 9,779 9,341 19,120 Cash distributions (22,518 ) (10,951 ) (33,469 ) Liability balance as of September 30, 2018 $ 10,236 $ — $ 10,236 January 2018 Restructuring Initiative In January 2018, the Company initiated a restructuring initiative that included a reorganization of its U.S. Generic Pharmaceuticals segment’s research and development network, a further simplification of the Company’s manufacturing networks and a company-wide unification of certain corporate functions (the January 2018 Restructuring Initiative ). As a result of the January 2018 Restructuring Initiative , the Company incurred pre-tax charges of $23.8 million during the nine months ended September 30, 2018 . The expenses consisted primarily of employee separation, retention and other benefit-related costs of $22.1 million and certain other charges of $1.7 million . Of the total charges incurred, $10.8 million are included in the U.S. Generic Pharmaceuticals segment, $5.2 million are included in Corporate unallocated costs, $4.0 million are included in the U.S. Branded - Sterile Injectables segment, $3.1 million are included in the International Pharmaceuticals segment and $0.7 million are included in the U.S. Branded - Specialty & Established Pharmaceuticals segment. The Company did not incur material charges related to this restructuring initiative during the three months ended September 30, 2018 . Employee separation, retention and other benefit-related costs are included in Cost of revenues, Selling, general and administrative and Research and development expenses in the Condensed Consolidated Statements of Operations . Certain other charges are primarily included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations . The Company does not expect to incur additional material pre-tax restructuring-related expenses related to this initiative. Substantially all cash payments are expected to be made by the end of the second quarter in 2019. The liability related to the January 2018 Restructuring Initiative is primarily included in Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets . Changes to this liability during the nine months ended September 30, 2018 were as follows (in thousands): Employee Separation and Other Benefit-Related Costs Other Restructuring Costs Total Liability balance as of January 1, 2018 $ — $ 650 $ 650 Expenses 22,087 1,705 23,792 Cash distributions (18,439 ) (1,949 ) (20,388 ) Liability balance as of September 30, 2018 $ 3,648 $ 406 $ 4,054 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 5. ACQUISITIONS On April 26, 2018, the Company entered into a Membership Interest and Asset Purchase Agreement (the Somerset Purchase Agreement) with Mendham Holdings, LLC (the Seller) and certain other Seller related parties in connection with the acquisition of all of the limited liability company membership interests (the LLC Interests) of Somerset Therapeutics, LLC (Somerset) and certain of Somerset’s assets, including intellectual property, product Abbreviated New Drug Applications (ANDAs) and inventory (the Somerset Assets). Somerset is a specialty pharmaceutical company that develops and markets sterile injectable and ophthalmic drugs for the U.S. market. The Somerset acquisition is contingent upon the closing of the acquisition of the Indian-based Wintac business (as defined below). Pursuant to the terms of the Somerset Purchase Agreement, the Company will acquire 100% of the LLC Interests of Somerset and the Somerset Assets for an aggregate cash purchase price of approximately $160 million , subject to customary adjustments for cash, net working capital and indebtedness as described in the Somerset Purchase Agreement. The Somerset Purchase Agreement contains certain customary representations, warranties and covenants and provides for indemnification rights of the parties in respect of inaccuracies or breaches of certain representations, warranties and covenants, subject to the limitations set forth in the Somerset Purchase Agreement. The Somerset acquisition is expected to close in the first quarter of 2019, subject to satisfaction of customary closing conditions, including required regulatory approvals and the closing of the acquisition of the Wintac business. In connection with the Somerset acquisition, the Company’s Indian subsidiary has entered into separate agreements to acquire the entire business of Somerset’s Indian-based contract development and manufacturing affiliate, Wintac Limited (Wintac), including certain real property in Bangalore, India and the manufacturing plants thereon and to assume certain debt of Wintac for the expected aggregate amount of the rupee equivalent of approximately $30 million , subject to customary adjustments for net working capital. |
Segment Results
Segment Results | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT RESULTS | NOTE 6. SEGMENT RESULTS As of January 1, 2018, we made changes to our reportable segments. Following these changes, the four reportable business segments in which we operate are: (1) U.S. Branded - Specialty & Established Pharmaceuticals , (2) U.S. Branded - Sterile Injectables , (3) U.S. Generic Pharmaceuticals and (4) International Pharmaceuticals . Previously, we had three reportable segments: (1) U.S. Generic Pharmaceuticals, (2) U.S. Branded Pharmaceuticals and (3) International Pharmaceuticals. The updates to our reportable segments were made based on first quarter 2018 changes to the way we manage and evaluate our business. Our new U.S. Branded - Sterile Injectables segment consists of our sterile injectables product portfolio, which was previously part of our former U.S. Generic Pharmaceuticals segment. Our new U.S. Generic Pharmaceuticals segment represents the remainder of our former U.S. Generic Pharmaceuticals segment. Additionally, our former U.S. Branded Pharmaceuticals segment has been renamed “ U.S. Branded - Specialty & Established Pharmaceuticals .” Our segments reflect the level at which the chief operating decision maker regularly reviews financial information to assess performance and to make decisions about resources to be allocated. Each segment derives revenue from the sales or licensing of its respective products and is discussed in more detail below. We evaluate segment performance based on each segment’s adjusted income from continuing operations before income tax , which we define as Loss from continuing operations before income tax and before certain upfront and milestone payments to partners; acquisition-related and integration items, including transaction costs, earn-out payments or adjustments, changes in the fair value of contingent consideration and bridge financing costs; cost reduction and integration-related initiatives such as separation benefits, retention payments, other exit costs and certain costs associated with integrating an acquired company’s operations; asset impairment charges; amortization of intangible assets; inventory step-up recorded as part of our acquisitions; litigation-related and other contingent matters; gains or losses from early termination of debt; gains or losses from the sales of businesses and other assets; foreign currency gains or losses on intercompany financing arrangements; and certain other items . Certain of the corporate expenses incurred by the Company are not attributable to any specific segment. Accordingly, these costs are not allocated to any of the Company’s segments and are included in the results below as “Corporate unallocated costs.” Interest income and expense are also considered corporate items and not allocated to any of the Company’s segments. The Company’s consolidated adjusted income from continuing operations before income tax is equal to the combined results of each of its segments less these unallocated corporate items. U.S. Branded - Specialty & Established Pharmaceuticals Our U.S. Branded - Specialty & Established Pharmaceuticals segment includes a variety of branded prescription products to treat and manage conditions in urology, urologic oncology, endocrinology, pain and orthopedics. The products in this segment include XIAFLEX ® , SUPPRELIN ® LA, TESTOPEL ® , NASCOBAL ® Nasal Spray, AVEED ® , PERCOCET ® , VOLTAREN ® Gel, LIDODERM ® , EDEX ® , TESTIM ® and FORTESTA ® Gel, among others. U.S. Branded - Sterile Injectables Our U.S. Branded - Sterile Injectables segment consists primarily of branded sterile injectable products such as VASOSTRICT ® , ADRENALIN ® and APLISOL ® , among others, and certain generic sterile injectable products, including ertapenem for injection and ephedrine sulfate injection, among others. U.S. Generic Pharmaceuticals Our U.S. Generic Pharmaceuticals segment consists of a differentiated product portfolio including solid oral extended-release, solid oral immediate-release, abuse-deterrent products, liquids, semi-solids, patches, powders, ophthalmics and sprays and includes products in the pain management, urology, central nervous system disorders, immunosuppression, oncology, women’s health and cardiovascular disease markets, among others. International Pharmaceuticals Our International Pharmaceuticals segment includes a variety of specialty pharmaceutical products sold outside the U.S., primarily in Canada through our operating company Paladin Labs Inc. (Paladin). This segment’s key products serve growing therapeutic areas, including attention deficit hyperactivity disorder (ADHD), pain, women’s health and oncology. This segment also included: (i) our South African Litha business, which was sold in July 2017 , and (ii) our Latin American Somar business, which was sold in October 2017. The following represents selected information for the Company’s reportable segments for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net revenues from external customers: U.S. Branded - Specialty & Established Pharmaceuticals $ 220,100 $ 233,803 $ 632,972 $ 729,150 U.S. Branded - Sterile Injectables 237,150 201,905 670,847 554,365 U.S. Generic Pharmaceuticals 257,969 294,749 748,445 1,227,584 International Pharmaceuticals (1) 30,247 56,430 108,425 189,119 Total net revenues from external customers $ 745,466 $ 786,887 $ 2,160,689 $ 2,700,218 Adjusted income from continuing operations before income tax: U.S. Branded - Specialty & Established Pharmaceuticals $ 84,891 $ 123,754 $ 262,454 $ 380,841 U.S. Branded - Sterile Injectables 170,329 150,531 513,082 417,060 U.S. Generic Pharmaceuticals 82,555 86,236 247,137 415,172 International Pharmaceuticals 13,377 17,434 45,594 47,128 Total segment adjusted income from continuing operations before income tax $ 351,152 $ 377,955 $ 1,068,267 $ 1,260,201 __________ (1) Revenues generated by our International Pharmaceuticals segment are primarily attributable to external customers located in Canada and, prior to the sale of Litha on July 3, 2017 and Somar on October 25, 2017, South Africa and Latin America. There were no material revenues from external customers attributed to an individual country outside of the United States during any of the periods presented. There were no material tangible long-lived assets in an individual country other than the United States as of September 30, 2018 or December 31, 2017 . The table below provides reconciliations of our consolidated Loss from continuing operations before income tax , which is determined in accordance with U.S. generally accepted accounting principles (U.S. GAAP), to our total segment adjusted income from continuing operations before income tax for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Total consolidated loss from continuing operations before income tax $ (143,068 ) $ (127,796 ) $ (671,559 ) $ (1,058,647 ) Interest expense, net 131,847 127,521 385,896 361,267 Corporate unallocated costs (1) 49,187 33,035 144,693 114,655 Amortization of intangible assets 161,275 161,413 471,662 615,490 Inventory step-up 71 66 261 281 Upfront and milestone payments to partners 4,731 775 43,027 6,952 Separation benefits and other cost reduction initiatives (2) 4,001 80,693 82,141 127,977 Certain litigation-related and other contingencies, net (3) (1,750 ) (12,352 ) 15,370 (14,016 ) Asset impairment charges (4) 142,217 94,924 613,400 1,023,930 Acquisition-related and integration items (5) 1,288 16,641 13,284 31,711 Loss on extinguishment of debt — — — 51,734 Foreign currency impact related to the remeasurement of intercompany debt instruments 1,528 3,005 (1,560 ) (2,922 ) Other, net (6) (175 ) 30 (28,348 ) 1,789 Total segment adjusted income from continuing operations before income tax $ 351,152 $ 377,955 $ 1,068,267 $ 1,260,201 __________ (1) Amounts include certain corporate overhead costs, such as headcount and facility expenses and certain other income and expenses. (2) Amounts for the three and nine months ended September 30, 2018 relate to employee separation costs of $2.1 million and $32.7 million , respectively, charges to increase excess inventory reserves of $0.2 million and $2.8 million , respectively, and other charges of $1.7 million and $11.4 million , respectively, each of which related primarily to our restructuring initiatives. Also included in the amount for the nine months ended September 30, 2018 is accelerated depreciation of $35.2 million , which related to the 2017 U.S. Generic Pharmaceuticals Restructuring Initiative . During the three and nine months ended September 30, 2017 , amounts primarily relate to employee separation costs of $19.8 million and $41.3 million , accelerated depreciation of $59.8 million and $60.2 million , other charges of $1.1 million and $18.5 million , respectively, and charges to increase excess inventory reserves of $7.9 million during the nine months ended September 30, 2017 . These charges were related primarily to the 2017 U.S. Generics Pharmaceuticals restructuring initiative. See Note 4. Restructuring for discussion of our material restructuring initiatives. (3) Amounts include adjustments for Litigation-related and other contingencies, net as further described in Note 14. Commitments and Contingencies . (4) Amounts primarily relate to charges to impair goodwill and intangible assets as further described in Note 9. Goodwill and Other Intangibles as well as charges to write down certain property, plant and equipment as further described in Note 7. Fair Value Measurements . (5) Amounts during the three and nine months ended September 30, 2018 are primarily related to charge s due to changes in the fair value of contingent consideration of $0.8 million and $11.7 million , respectively. Amounts during the three and nine months ended September 30, 2017 include charge s due to changes in the fair value of contingent consideration of $15.4 million and $23.6 million , respectively. All other amounts are directly related to costs associated with acquisition and integration efforts. (6) Amounts during the three and nine months ended September 30, 2018 primarily relate to gains on sales of businesses and other assets, as further described in Note 17. Other income, net . Asset information is not reviewed or included within our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment. The Company disaggregates its revenue from contracts with customers into the categories included in the table below (in thousands). The Company believes these categories depict how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 U.S. Branded - Specialty & Established Pharmaceuticals: Specialty Products: XIAFLEX® $ 64,214 $ 52,511 $ 184,855 $ 152,113 SUPPRELIN® LA 20,408 20,638 60,948 63,468 Other Specialty (1) 43,576 40,634 114,202 113,407 Total Specialty Products $ 128,198 $ 113,783 $ 360,005 $ 328,988 Established Products: PERCOCET® $ 30,730 $ 31,349 $ 93,539 $ 93,183 VOLTAREN® Gel 15,057 19,102 44,185 53,646 OPANA® ER — 14,756 — 82,056 Other Established (2) 46,115 54,813 135,243 171,277 Total Established Products $ 91,902 $ 120,020 $ 272,967 $ 400,162 Total U.S. Branded - Specialty & Established Pharmaceuticals (3) $ 220,100 $ 233,803 $ 632,972 $ 729,150 U.S. Branded - Sterile Injectables: VASOSTRICT® $ 112,333 $ 105,741 $ 332,387 $ 300,649 ADRENALIN® 35,460 25,335 101,858 50,464 Ertapenem for injection 25,798 — 25,798 — Other Sterile Injectables (4) 63,559 70,829 210,804 203,252 Total U.S. Branded - Sterile Injectables (3) $ 237,150 $ 201,905 $ 670,847 $ 554,365 Total U.S. Generic Pharmaceuticals (5) $ 257,969 $ 294,749 $ 748,445 $ 1,227,584 Total International Pharmaceuticals (6) $ 30,247 $ 56,430 $ 108,425 $ 189,119 Total Revenues $ 745,466 $ 786,887 $ 2,160,689 $ 2,700,218 __________ (1) Products included within Other Specialty include TESTOPEL ® , NASCOBAL ® Nasal Spray and AVEED ® . (2) Products included within Other Established include, but are not limited to, LIDODERM ® , EDEX ® , TESTIM ® and FORTESTA ® Gel, including the authorized generics. (3) Individual products presented above represent the top two performing products in each product category and/or any product having revenues in excess of $25 million during any quarterly period in 2018 or 2017 . (4) Products included within Other Sterile Injectables include, but are not limited to, APLISOL ® and ephedrine sulfate injection. (5) The U.S. Generic Pharmaceuticals segment is comprised of a portfolio of products that are generic versions of branded products, are distributed primarily through the same wholesalers, generally have no intellectual property protection and are sold within the U.S. During the nine months ended September 30, 2017 , combined sales of ezetimibe tablets and quetiapine ER tablets, for which we lost temporary marketing exclusivity during the second quarter of 2017, made up 9% of consolidated total revenue. No other individual product within this segment has exceeded 5% of consolidated total revenues for the periods presented. (6) The International Pharmaceuticals segment, which accounted for 4% and 5% of consolidated total revenues during the three and nine months ended September 30, 2018 , respectively, and 7% of consolidated total revenues during both the three and nine months ended September 30, 2017 , includes a variety of specialty pharmaceutical products sold outside the U.S., primarily in Canada through our operating company Paladin Labs, Inc. (Paladin). This segment also included: (i) our South African business, which was sold in July 2017 and consisted of Litha and certain assets acquired from Aspen Holdings in October 2015 and (ii) our Latin American business consisting of Somar, which was sold in October 2017. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 7. FAIR VALUE MEASUREMENTS Financial Instruments The financial instruments recorded in our Condensed Consolidated Balance Sheets include cash and cash equivalents (including money market funds and time deposits), restricted cash and cash equivalents, accounts receivable, marketable securities, equity and cost method investments, accounts payable and accrued expenses, acquisition-related contingent consideration and debt obligations. Included in cash and cash equivalents and restricted cash and cash equivalents are money market funds representing a type of mutual fund required by law to invest in low-risk securities (for example, U.S. government bonds, U.S. Treasury Bills and commercial paper). Money market funds pay dividends that generally reflect short-term interest rates. Due to their short-term maturity, the carrying amounts of non-restricted and restricted cash and cash equivalents (including money market funds and time deposits), accounts receivable, accounts payable and accrued expenses approximate their fair values. At September 30, 2018 and December 31, 2017 , the Company had combined restricted cash and cash equivalents of $312.0 million and $324.4 million , respectively, of which $289.7 million and $320.5 million , respectively, are classified as current assets and reported in our Condensed Consolidated Balance Sheets as Restricted cash and cash equivalents. The remaining amounts, which are classified as non-current assets, are reported in our Condensed Consolidated Balance Sheets as Other assets. Approximately $283.8 million and $313.8 million of our restricted cash and cash equivalents are held in qualified settlement funds (QSFs) for mesh-related matters at September 30, 2018 and December 31, 2017 , respectively. The remaining amount of restricted cash and cash equivalents at September 30, 2018 primarily relates to other litigation-related matters. See Note 14. Commitments and Contingencies for further information. Fair value guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Marketable Securities Equity securities consist of investments in the stock of publicly traded companies, the values of which are based on quoted market prices and thus represent Level 1 measurements within the above-defined fair value hierarchy. These securities are not held to support current operations and are therefore classified as non-current assets. Equity securities are included in Marketable securities in our Condensed Consolidated Balance Sheets at September 30, 2018 and December 31, 2017 . Acquisition-Related Contingent Consideration The fair value of contingent consideration liabilities is determined using unobservable inputs; hence these instruments represent Level 3 measurements within the above-defined fair value hierarchy. These inputs include the estimated amount and timing of projected cash flows, the probability of success (achievement of the contingent event) and the risk-adjusted discount rate used to present value the probability-weighted cash flows. Subsequent to the acquisition date, at each reporting period, the contingent consideration liability is remeasured at current fair value with changes recorded in earnings. Changes in any of these estimated inputs used as of the date of this report could have resulted in significant adjustments to fair value. See Recurring Fair Value Measurements below for additional information on acquisition-related contingent consideration. Recurring Fair Value Measurements The Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017 were as follows (in thousands): Fair Value Measurements at Reporting Date using: September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 691,579 $ — $ — $ 691,579 Equity securities 1,693 — — 1,693 Total $ 693,272 $ — $ — $ 693,272 Liabilities: Acquisition-related contingent consideration—short-term $ — $ — $ 42,261 $ 42,261 Acquisition-related contingent consideration—long-term — — 86,209 86,209 Total $ — $ — $ 128,470 $ 128,470 Fair Value Measurements at Reporting Date using: December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 439,831 $ — $ — $ 439,831 Time deposits — 303,410 — 303,410 Equity securities 1,456 — — 1,456 Total $ 441,287 $ 303,410 $ — $ 744,697 Liabilities: Acquisition-related contingent consideration—short-term $ — $ — $ 70,543 $ 70,543 Acquisition-related contingent consideration—long-term — — 119,899 119,899 Total $ — $ — $ 190,442 $ 190,442 At September 30, 2018 and December 31, 2017 , money market funds include $57.0 million and $35.6 million , respectively, in QSFs to be disbursed to mesh-related or other product liability claimants. Amounts in QSFs are considered restricted cash equivalents. See Note 14. Commitments and Contingencies for further discussion of our product liability cases. The differences between the amortized cost and fair value of our money market funds and equity securities were not material, individually or in the aggregate, at September 30, 2018 or December 31, 2017 , nor were any of the related gross unrealized gains or losses. Fair Value Measurements Using Significant Unobservable Inputs The following table presents changes to the Company’s liability for acquisition-related contingent consideration, which was measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Beginning of period $ 152,098 $ 210,460 $ 190,442 $ 262,113 Amounts settled (24,564 ) (31,617 ) (73,298 ) (91,927 ) Changes in fair value recorded in earnings 769 15,440 11,731 23,574 Effect of currency translation 167 504 (405 ) 1,027 End of period $ 128,470 $ 194,787 $ 128,470 $ 194,787 At September 30, 2018 , the fair value measurements of the contingent consideration obligations were determined using risk-adjusted discount rates ranging from approximately 10% to 22% (weighted average rate of approximately 14.1% ). Changes in fair value recorded in earnings related to acquisition-related contingent consideration are included in our Condensed Consolidated Statements of Operations as Acquisition-related and integration items , and amounts recorded for the short-term and long-term portions of acquisition-related contingent consideration are included in Accounts payable and accrued expenses and Other liabilities, respectively, in our Condensed Consolidated Balance Sheets . The following table presents changes to the Company’s liability for acquisition-related contingent consideration during the nine months ended September 30, 2018 by acquisition (in thousands): Balance as of December 31, 2017 Fair Value Adjustments and Accretion Payments and Other Balance as of September 30, 2018 Auxilium acquisition $ 13,061 $ (263 ) $ (1,844 ) $ 10,954 Lehigh Valley Technologies, Inc. acquisitions 63,001 11,169 (39,469 ) 34,701 VOLTAREN ® Gel acquisition 98,124 3,839 (30,923 ) 71,040 Other 16,256 (3,014 ) (1,467 ) 11,775 Total $ 190,442 $ 11,731 $ (73,703 ) $ 128,470 Nonrecurring Fair Value Measurements The Company’s financial assets and liabilities measured at fair value on a nonrecurring basis during the nine months ended September 30, 2018 were as follows (in thousands): Fair Value Measurements at Reporting Date using: Total Expense for the Nine Months Ended September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Intangible assets, excluding goodwill (Note 9) $ — $ — $ 239,857 $ (217,576 ) Certain property, plant and equipment (1) — — — (4,824 ) Total $ — $ — $ 239,857 $ (222,400 ) __________ (1) Amount includes $2.6 million related to the 2017 U.S. Generic Pharmaceuticals Restructuring Initiative , which is described further in Note 4. Restructuring . Additionally, the Company recorded aggregate goodwill impairment charges during the nine months ended September 30, 2018 of $391.0 million . Refer to Note 9. Goodwill and Other Intangibles for further description, including the valuation methodologies utilized. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 8. INVENTORIES Inventories consist of the following at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Raw materials (1) $ 119,627 $ 124,685 Work-in-process (1) 83,665 109,897 Finished goods (1) 129,495 156,855 Total $ 332,787 $ 391,437 __________ (1) The components of inventory shown in the table above are net of allowance for obsolescence. Inventory that is in excess of the amount expected to be sold within one year, which relates primarily to XIAFLEX ® inventory, is classified as long-term inventory and is not included in the table above. At September 30, 2018 and December 31, 2017 , $13.3 million and $17.1 million , respectively, of long-term inventory was included in Other assets in the Condensed Consolidated Balance Sheets . As of September 30, 2018 and December 31, 2017 , the Company’s Condensed Consolidated Balance Sheets included approximately $13.6 million and $5.9 million , respectively, of capitalized pre-launch inventories related to generic products that were not yet available to be sold. |
Goodwill And Other Intangibles
Goodwill And Other Intangibles | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | NOTE 9. GOODWILL AND OTHER INTANGIBLES Goodwill Changes in the carrying amount of our goodwill for the nine months ended September 30, 2018 were as follows (in thousands): U.S. Branded - Specialty & Established Pharmaceuticals U.S. Branded - Sterile Injectables U.S. Generic Pharmaceuticals International Pharmaceuticals Total Goodwill as of December 31, 2017 $ 828,818 $ — $ 3,531,301 $ 89,963 $ 4,450,082 Allocation to current segments (1) — 2,731,193 (2,731,193 ) — — Effect of currency translation — — — (2,414 ) (2,414 ) Goodwill impairment charges — — (391,000 ) — (391,000 ) Goodwill as of September 30, 2018 $ 828,818 $ 2,731,193 $ 409,108 $ 87,549 $ 4,056,668 __________ (1) This allocation relates to the change in segments described in Note 6. Segment Results . The amount of goodwill initially attributed to the new U.S. Branded - Sterile Injectables and U.S. Generic Pharmaceuticals segments was determined using a relative fair value methodology in accordance with U.S. GAAP. The carrying amounts of goodwill at September 30, 2018 and December 31, 2017 are net of the following accumulated impairments (in thousands): U.S. Branded - Specialty & Established Pharmaceuticals U.S. Branded - Sterile Injectables U.S. Generic Pharmaceuticals International Pharmaceuticals Total Accumulated impairment losses as of December 31, 2017 $ 855,810 $ — $ 2,342,549 $ 463,545 $ 3,661,904 Accumulated impairment losses as of September 30, 2018 $ 855,810 $ — $ 2,733,549 $ 451,209 $ 4,040,568 Other Intangible Assets Changes in the amount of other intangible assets for the nine months ended September 30, 2018 are set forth in the table below (in thousands). Cost basis: Balance as of December 31, 2017 Acquisitions Impairments Other (1) Effect of Currency Translation Balance as of September 30, 2018 Indefinite-lived intangibles: In-process research and development $ 347,200 $ — $ (87,900 ) $ (165,400 ) $ — $ 93,900 Total indefinite-lived intangibles $ 347,200 $ — $ (87,900 ) $ (165,400 ) $ — $ 93,900 Finite-lived intangibles: Licenses (weighted average life of 12 years) $ 457,402 $ — $ — $ — $ — $ 457,402 Tradenames 6,409 — — — — 6,409 Developed technology (weighted average life of 11 years) 6,187,764 — (129,676 ) 154,753 (7,447 ) 6,205,394 Total finite-lived intangibles (weighted average life of 11 years) $ 6,651,575 $ — $ (129,676 ) $ 154,753 $ (7,447 ) $ 6,669,205 Total other intangibles $ 6,998,775 $ — $ (217,576 ) $ (10,647 ) $ (7,447 ) $ 6,763,105 Accumulated amortization: Balance as of December 31, 2017 Amortization Impairments Other (1) Effect of Currency Translation Balance as of September 30, 2018 Finite-lived intangibles: Licenses $ (370,221 ) $ (21,262 ) $ — $ — $ — $ (391,483 ) Tradenames (6,409 ) — — — — (6,409 ) Developed technology (2,304,461 ) (450,400 ) — 10,647 3,217 (2,740,997 ) Total other intangibles $ (2,681,091 ) $ (471,662 ) $ — $ 10,647 $ 3,217 $ (3,138,889 ) Net other intangibles $ 4,317,684 $ 3,624,216 __________ (1) Other adjustments relate to reclassification adjustments of $165.4 million for certain developed technology intangible assets, previously classified as in-process research and development, that were placed in service during the nine months ended September 30, 2018 and the removal of certain fully amortized intangible assets. Amortization expense for the three and nine months ended September 30, 2018 totaled $161.3 million and $471.7 million , respectively. Amortization expense for the three and nine months ended September 30, 2017 totaled $161.4 million and $615.5 million , respectively. Amortization expense is included in Cost of revenues in the Condensed Consolidated Statements of Operations . Estimated amortization of intangibles for the five fiscal years subsequent to December 31, 2017 is as follows (in thousands): 2018 $ 622,384 2019 $ 552,516 2020 $ 481,300 2021 $ 447,157 2022 $ 420,786 Impairments Endo tests goodwill and indefinite-lived intangible assets for impairment annually, or more frequently whenever events or changes in circumstances indicate that the asset might be impaired. Our annual assessment is performed as of October 1st. As part of our goodwill and intangible asset impairment assessments, we estimate the fair values of our reporting units and our intangible assets using an income approach that utilizes a discounted cash flow model or, where appropriate, a market approach. The discounted cash flow models are dependent upon our estimates of future cash flows and other factors. These estimates of future cash flows involve assumptions concerning (i) future operating performance, including future sales, long-term growth rates, operating margins, tax rates, variations in the amount and timing of cash flows and the probability of achieving the estimated cash flows and (ii) future economic conditions. These assumptions are based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value hierarchy. The discount rates applied to the estimated cash flows are based on the overall risk associated with the particular assets and other market factors. We believe the discount rates and other inputs and assumptions are consistent with those that a market participant would use. Any impairment charges resulting from annual or interim goodwill and intangible asset impairment assessments are recorded to Asset impairment charges in our Condensed Consolidated Statements of Operations . During the three and nine months ended September 30, 2018 and 2017 , the Company incurred the following goodwill and other intangible asset impairment charges: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Goodwill impairment charges $ — $ — $ 391,000 $ 288,745 Other intangible asset impairment charges $ 140,609 $ 78,300 $ 217,576 $ 674,177 A summary of significant goodwill and other intangible asset impairment tests and related charges is included below. Other intangible asset impairment charges that are not included in the below narrative totaled $140.6 million and $78.3 million during the three months ended September 30, 2018 and 2017 , respectively, and $217.6 million and $461.1 million during the nine months ended September 30, 2018 and 2017 , respectively. These charges relate primarily to certain in-process research and development and/or developed technology intangible assets that were tested for impairment following changes in market conditions and certain other factors impacting recoverability. Our first quarter 2018 change in segments described in Note 6. Segment Results resulted in changes to our reporting units for goodwill impairment testing purposes, including the creation of a new U.S. Branded - Sterile Injectables reporting unit, which was previously part of our Generics reporting unit. As a result of these changes, under U.S. GAAP, we tested the goodwill of the former Generics reporting unit immediately before the segment realignment and the goodwill of both the new U.S. Branded - Sterile Injectables and U.S. Generic Pharmaceuticals reporting units immediately after the segment realignment. These goodwill tests were performed using an income approach that utilizes a discounted cash flow model. The results of these goodwill impairment tests were as follows: • The former Generics reporting unit’s estimated fair value (determined using a discount rate of 9.5% ) exceeded its carrying amount, resulting in no related goodwill impairment charge. • The new U.S. Branded - Sterile Injectables reporting unit’s estimated fair value (determined using a discount rate of 9.5% ) exceeded its carrying amount, resulting in no related goodwill impairment charge. • The new U.S. Generic Pharmaceuticals reporting unit’s carrying amount exceeded its estimated fair value (determined using a discount rate of 9.5% ), resulting in a pre-tax non-cash goodwill impairment charge of $391.0 million . In March 2017, we announced that the Food and Drug Administration’s (FDA) Drug Safety and Risk Management and Anesthetic and Analgesic Drug Products Advisory Committees voted that the benefits of reformulated OPANA ® ER (oxymorphone hydrochloride extended release) no longer outweigh its risks. In June 2017, we became aware of the FDA’s request that we voluntarily withdraw OPANA ® ER from the market, and in July 2017, after careful consideration and consultation with the FDA, we decided to voluntarily remove OPANA ® ER from the market. As a result of our decision, the Company determined that the carrying amount of its OPANA ® ER intangible asset was no longer recoverable, resulting in a pre-tax, non-cash impairment charge of $20.6 million in the second quarter of 2017, representing the remaining carrying amount. As a result of the withdrawal of OPANA ® ER from the market and the continued erosion of our U.S. Branded Pharmaceuticals segment’s Established Products portfolio, we initiated an interim goodwill impairment analysis of our Branded reporting unit during the second quarter of 2017. We recorded a pre-tax, non-cash goodwill impairment charge of $180.4 million during the three months ended June 30, 2017 for the amount by which the carrying amount exceeded the reporting unit’s fair value. We estimated the fair value of the Branded reporting unit using an income approach that utilized a discounted cash flow model. The discount rate applied to the estimated cash flows for our Branded goodwill impairment test was 9.5% . As further described in Note 4. Restructuring , the Company announced the 2017 U.S. Generic Pharmaceuticals Restructuring Initiative in July 2017, which includes the discontinuation of certain commercial products. As a result, the Company assessed the recoverability of the impacted products, resulting in pre-tax, non-cash intangible asset impairment charges of approximately $57.5 million during the second quarter of 2017. The Company also initiated an interim goodwill impairment analysis of its Generics reporting unit during the second quarter of 2017 as a result of the 2017 U.S. Generic Pharmaceuticals Restructuring Initiative and determined that the estimated fair value of the Generics reporting unit exceeded its carrying amount. Accordingly, no related goodwill impairment was recorded. The Company estimated the fair value of the Generics reporting unit using an income approach that utilized a discounted cash flow model. The discount rate applied to the estimated cash flows for our Generics goodwill impairment test was 9.0% . Pursuant to an existing agreement with a wholly owned subsidiary of Novartis AG (Novartis), Paladin licensed the Canadian rights to commercialize serelaxin, an investigational drug for the treatment of acute heart failure (AHF). In March 2017, Novartis announced that a Phase 3 study of serelaxin in patients with AHF failed to meet its primary endpoints. As a result, we concluded that the full carrying amount of our serelaxin in-process research and development intangible asset was impaired, resulting in a $45.5 million pre-tax non-cash impairment charge for the three months ended March 31, 2017. In addition and as a result of the serelaxin impairment, we assessed the recoverability of our Paladin goodwill balance and determined that the estimated fair value of the Paladin reporting unit was below its carrying amount. We recorded a pre-tax, non-cash goodwill impairment charge of $82.6 million during the three months ended March 31, 2017 for the amount by which the carrying amount exceeded the reporting unit’s fair value. We estimated the fair value of the Paladin reporting unit using an income approach that utilized a discounted cash flow model. The discount rate applied to the estimated cash flows for our Paladin goodwill impairment test was 10.0% . As further discussed in Note 3. Discontinued Operations and Divestitures , we entered into a definitive agreement to sell Somar on June 30, 2017, which resulted in Somar’s assets and liabilities being classified as held for sale. The initiation of held-for-sale accounting, together with the agreed upon sale price, triggered an impairment review. Accordingly, we performed an impairment analysis using a market approach and determined that impairment charges were required. We recorded pre-tax, non-cash impairment charges of $25.7 million and $89.5 million related to Somar’s goodwill and other intangible assets, respectively, during the second quarter of 2017, each of which represented the remaining carrying amounts of the corresponding assets. |
License And Collaboration Agree
License And Collaboration Agreements | 9 Months Ended |
Sep. 30, 2018 | |
License And Collaboration Agreements [Abstract] | |
LICENSE AND COLLABORATION AGREEMENTS | NOTE 10. LICENSE AND COLLABORATION AGREEMENTS Our subsidiaries have entered into certain license, collaboration and discovery agreements with third parties for product development. These agreements require our subsidiaries to share in the development costs of such products and the third parties grant marketing rights to our subsidiaries for such products. Generally, under these agreements: (i) we are required to make upfront payments and other payments upon successful completion of regulatory or sales milestones, (ii) we are required to pay royalties on sales of the products arising from these agreements and (iii) termination is permitted with no significant continuing obligation. During the second quarter of 2018, we entered into a development, license and commercialization agreement with a third party pharmaceutical company related to five sterile injectable product candidates. Pursuant to this agreement, the third party will generally be responsible, at its expense, to develop and seek regulatory approval for these product candidates, and the Company will generally be responsible, at its expense, to launch and distribute any products that are approved. The Company will have exclusive license rights to all of these products launched in the U.S. and a first right of refusal for the Canadian territory. Upon entering into this agreement, the Company became obligated to make an upfront payment, which was recorded as Research and development expense in the Condensed Consolidated Statements of Operations during the three months ended June 30, 2018. The Company could become obligated to make additional payments based on certain potential future milestones being achieved. There have been no other significant changes to our license, collaboration and discovery agreements since our Annual Report on Form 10-K for the year ended December 31, 2017 . |
Contract Assets and Liabilities
Contract Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract Assets and Liabilities | NOTE 11. CONTRACT ASSETS AND LIABILITIES Our revenue consists almost entirely of sales of our pharmaceutical products to customers, whereby we ship products to a customer pursuant to a purchase order. Revenue contracts such as these do not generally give rise to contract assets or contract liabilities because: (i) the underlying contracts generally have only a single performance obligation and (ii) we do not generally receive consideration until the performance obligation is fully satisfied. At September 30, 2018 , the unfulfilled performance obligations for these types of contracts relate to ordered but undelivered products. We generally expect to fulfill the performance obligations and recognize revenue within one week of entering into the underlying contract. Based on the short-term initial contract duration, additional disclosure about the remaining performance obligations is not required. Certain of our other revenue-generating contracts, including license and collaboration agreements, may result in contract assets and/or contract liabilities. For example, we may recognize contract liabilities upon receipt of certain upfront and milestone payments from customers when there are remaining performance obligations. The following table shows the opening and closing balances of contract assets and contract liabilities from contracts with customers (dollars in thousands): September 30, 2018 January 1, 2018 $ Change % Change Contract assets, net (1) $ 13,291 $ 11,287 $ 2,004 18 % Contract liabilities, net (2) $ 19,635 $ 20,954 $ (1,319 ) (6 )% __________ (1) At September 30, 2018 and January 1, 2018 , approximately $10.3 million and $8.2 million , respectively, of these contract asset amounts are classified as current assets and are included in Prepaid expenses and other current assets in the Company’s Condensed Consolidated Balance Sheets . The remaining amounts are classified as non-current and are included in Other assets. The net increase in contract assets during the nine months ended September 30, 2018 was primarily due to certain sales activity during the period, partially offset by reclassifications to accounts receivable following the resolution of certain conditions other than the passage of time affecting the Company’s rights to consideration for the sale of certain goods. (2) At September 30, 2018 and January 1, 2018 , approximately $1.7 million and $1.9 million , respectively, of these contract liability amounts are classified as current liabilities and are included in Accounts payable and accrued expenses in the Company’s Condensed Consolidated Balance Sheets . The remaining amounts are classified as non-current and are included in Other liabilities. During the nine months ended September 30, 2018 , the Company recognized revenue of $1.3 million that was included in the contract liability balance at January 1, 2018 , resulting in a corresponding decrease in contract liabilities. During the nine months ended September 30, 2018 , we recognized revenue of $4.6 million relating to performance obligations satisfied, or partially satisfied, in prior periods. Such revenue generally relates to changes in estimates with respect to our variable consideration. |
Accounts Payable And Accrued Ex
Accounts Payable And Accrued Expenses | 9 Months Ended |
Sep. 30, 2018 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable And Accrued Expenses | NOTE 12. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses include the following at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Trade accounts payable $ 106,321 $ 85,348 Returns and allowances 250,637 291,034 Rebates 152,297 168,333 Chargebacks 2,022 14,604 Accrued interest 64,647 130,257 Accrued payroll and related benefits 84,240 113,908 Accrued royalties and other distribution partner payables 103,673 63,114 Acquisition-related contingent consideration—short-term 42,261 70,543 Other 212,906 159,684 Total $ 1,019,004 $ 1,096,825 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 13. DEBT The following table presents information about the Company’s total indebtedness at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Effective Interest Rate Principal Amount Carrying Amount Effective Interest Rate Principal Amount Carrying Amount 7.25% Senior Notes due 2022 7.91 % $ 400,000 $ 392,439 7.91 % $ 400,000 $ 390,974 5.75% Senior Notes due 2022 6.04 % 700,000 694,053 6.04 % 700,000 692,855 5.375% Senior Notes due 2023 5.62 % 750,000 743,083 5.62 % 750,000 742,048 6.00% Senior Notes due 2023 6.28 % 1,635,000 1,615,955 6.28 % 1,635,000 1,613,446 5.875% Senior Secured Notes due 2024 6.14 % 300,000 295,922 6.14 % 300,000 295,513 6.00% Senior Notes due 2025 6.27 % 1,200,000 1,182,859 6.27 % 1,200,000 1,181,243 Term Loan B Facility Due 2024 5.46 % 3,372,313 3,338,451 5.46 % 3,397,925 3,360,103 Other debt — — 1.50 % 55 55 Total long-term debt, net $ 8,357,313 $ 8,262,762 $ 8,382,980 $ 8,276,237 Less current portion, net 34,150 34,150 34,205 34,205 Total long-term debt, less current portion, net $ 8,323,163 $ 8,228,612 $ 8,348,775 $ 8,242,032 The senior unsecured notes are unsecured and effectively subordinated in right of priority to our credit agreement (the 2017 Credit Agreement) and our senior secured notes, in each case to the extent of the value of the collateral securing such instruments, which collateral represents substantially all of the assets of the issuers or borrowers and the guarantors party thereto. The aggregate estimated fair value of the Company’s long-term debt, which was estimated using inputs based on quoted market prices for the same or similar debt issuances, was $7.9 billion and $7.5 billion at September 30, 2018 and December 31, 2017 , respectively. Based on this valuation methodology, we determined these debt instruments represent Level 2 measurements within the fair value hierarchy. Credit Facility We have $997.2 million of remaining credit available through our revolving credit facility as of September 30, 2018 . As of September 30, 2018 , we were in compliance with all covenants contained in our credit agreement. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14. COMMITMENTS AND CONTINGENCIES Legal Proceedings and Investigations We and certain of our subsidiaries are involved in various claims, legal proceedings and internal and governmental investigations (collectively, proceedings) that arise from time to time in the ordinary course of our business, including, among others, those relating to product liability, intellectual property, regulatory compliance, consumer protection and commercial matters. While we cannot predict the outcome of these proceedings and we intend to vigorously prosecute or defend our position as appropriate, there can be no assurance that we will be successful or obtain any requested relief, and an adverse outcome in any of these proceedings could have a material adverse effect on our current and future financial position, results of operations and cash flows. Matters that are not being disclosed herein are, in the opinion of our management, immaterial both individually and in the aggregate with respect to our financial position, results of operations and cash flows. If and when such matters, in the opinion of our management, become material, either individually or in the aggregate, we will disclose such matters. We believe that certain settlements and judgments, as well as legal defense costs, relating to certain product liability or other matters are or may be covered in whole or in part under our insurance policies with a number of insurance carriers. In certain circumstances, insurance carriers reserve their rights to contest or deny coverage. We intend to contest vigorously any and all such disputes with our insurance carriers and to enforce our rights under the terms of our insurance policies. Accordingly, we will record receivables with respect to amounts due under these policies only when the resolution of any dispute has been reached and realization of the potential claim for recovery is considered probable. Amounts recovered under our insurance policies could be less than the stated coverage limits and may not be adequate to cover damages and/or costs relating to claims. In addition, there is no guarantee that insurers will pay claims or that coverage will otherwise be available. As of September 30, 2018 , our accrual for loss contingencies totaled $1,002.1 million , of which $845.6 million relates to our liability accrual for vaginal mesh cases and other mesh-related matters. During the fourth quarter of 2017, the Company recorded a total increase to its liability accrual of approximately $200 million related to testosterone-related product liability matters and LIDODERM ® -related antitrust matters. The accrual for LIDODERM ® -related matters includes an estimated loss for, among other matters, settlement of all remaining claims filed against EPI in multidistrict litigation (MDL) No. 2521, which is further discussed below under the heading “ Other Antitrust Matters .” The testosterone-related accrual includes an estimated loss for, among other matters, all testosterone-related product liability cases filed in MDL No. 2545 and in other courts. These cases are further discussed below under the heading “ Product Liability and Related Matters .” Although we believe there is a reasonable possibility that a loss in excess of the amount recognized exists, we are unable to estimate the possible loss or range of loss in excess of the amount recognized at this time. Product Liability and Related Matters We and certain of our subsidiaries have been named as defendants in numerous lawsuits in various U.S. federal and state courts, as well as in Canada and other countries, alleging personal injury resulting from the use of certain products of our subsidiaries. These and other related matters are described below in more detail. Vaginal Mesh. Since 2008, we and certain of our subsidiaries, including American Medical Systems Holdings, Inc. (subsequently converted to Astora Women’s Health Holding LLC and merged into Astora Women’s Health LLC and referred to herein as AMS) and/or Astora, have been named as defendants in multiple lawsuits in various state and federal courts in the U.S. (including a federal MDL pending in the U.S. District Court for the Southern District of West Virginia (MDL No. 2325)), and in Canada and other countries, alleging personal injury resulting from the use of transvaginal surgical mesh products designed to treat pelvic organ prolapse (POP) and stress urinary incontinence (SUI). In January 2018, a representative proceeding (class action) was filed in the Federal Court of Australia against American Medical Systems, LLC. In the various class action and individual complaints, plaintiffs claim a variety of personal injuries, including chronic pain, incontinence, inability to control bowel function and permanent deformities, and seek compensatory and punitive damages, where available. We and certain plaintiffs’ counsel representing mesh-related product liability claimants have entered into various Master Settlement Agreements (MSAs) and other agreements to resolve up to approximately 71,000 filed and unfiled mesh claims handled or controlled by the participating counsel. These MSAs and other agreements were entered into at various times between June 2013 and the present, were solely by way of compromise and settlement and were not in any way an admission of liability or fault by us or any of our subsidiaries. All MSAs are subject to a process that includes guidelines and procedures for administering the settlements and the release of funds. In certain cases, the MSAs provide for the creation of QSFs into which funds may be deposited pursuant to certain schedules set forth in those agreements. All MSAs have participation requirements regarding the claims represented by each law firm party to the MSA. In addition, one agreement gives us a unilateral right of approval regarding which claims may be eligible to participate under that settlement. To the extent fewer claims than are authorized under an agreement participate, the total settlement payment under that agreement will be reduced by an agreed-upon amount for each such non-participating claim. Funds deposited in QSFs are considered restricted cash and/or restricted cash equivalents. Distribution of funds to any individual claimant is conditioned upon the receipt of documentation substantiating the validity of the claim, a full release and dismissal of the entire action or claim as to all AMS parties and affiliates. Prior to receiving funds, an individual claimant is required to represent and warrant that liens, assignment rights or other claims identified in the claims administration process have been or will be satisfied by the individual claimant. Confidentiality provisions apply to the amount of settlement awards to participating claimants, the claims evaluation process and procedures used in conjunction with award distributions, and the negotiations leading to the settlements. In June 2017, the MDL court entered a case management order which, among other things, requires plaintiffs in newly-filed MDL cases to provide expert disclosures on specific causation within one hundred twenty (120) days of filing a claim (the Order). Under the Order, a plaintiff's failure to meet the foregoing deadline may be grounds for the entry of judgment against such plaintiff. In July 2017, a similar order was entered in Minnesota state court. In June 2018, at the request of the MDL court, the Judicial Panel on Multidistrict Litigation entered a minute order suspending the transfer of cases into the MDL. Subsequently, the MDL court issued a pretrial order discontinuing the direct filing of claims in MDL No. 2325. The MDL court also issued similar orders in other MDLs involving claims against other mesh manufacturers. Although the Company believes it has appropriately estimated the probable total amount of loss associated with all matters as of the date of this report, fact and expert discovery is ongoing in certain cases that have not settled, and it is reasonably possible that further claims may be filed or asserted and that adjustments to our liability accrual may be required. This could have a material adverse effect on our business, financial condition, results of operations and cash flows. The following table presents the changes in the QSFs and mesh liability accrual balance during the nine months ended September 30, 2018 (in thousands): Qualified Settlement Funds Mesh Liability Accrual Balance as of January 1, 2018 $ 313,814 $ 1,087,172 Additional charges — 19,000 Cash contributions to Qualified Settlement Funds 216,770 — Cash distributions to settle disputes from Qualified Settlement Funds (248,485 ) (248,485 ) Cash distributions to settle disputes — (17,114 ) Other (1) 1,653 5,038 Balance as of September 30, 2018 $ 283,752 $ 845,611 __________ (1) Amounts deposited in the QSFs may earn interest, which is generally used to pay administrative costs of the fund and is reflected in the table above as an increase to the QSF and Mesh Liability Accrual balances. Any interest remaining after all claims have been paid will generally be distributed to the claimants who participated in that settlement. The $5.0 million in the table above also includes a second quarter 2018 reclassification adjustment of $4.4 million for accrued interest amounts previously recorded in Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets . As of September 30, 2018 , $820.2 million of the mesh liability accrual amount shown above is classified in the Current portion of the legal settlement accrual in the Condensed Consolidated Balance Sheets , with the remainder classified as Long-term legal settlement accrual, less current portion. Charges related to vaginal mesh liability and associated legal fees and other expenses for all periods presented are reported in Discontinued operations, net of tax in our Condensed Consolidated Statements of Operations . To date, the Company has made total mesh liability payments of approximately $3.1 billion , $283.8 million of which remains in the QSFs as of September 30, 2018 . We expect to fund into the QSFs the remaining payments under all settlement agreements during the remainder of 2018 and 2019. As the funds are disbursed out of the QSFs from time to time, the liability accrual will be reduced accordingly with a corresponding reduction to restricted cash and cash equivalents. In addition, we may pay cash distributions to settle disputes separate from the QSFs, which will also decrease the liability accrual and decrease cash and cash equivalents. We were contacted in October 2012 regarding a civil investigation initiated by a number of state attorneys general into mesh products, including transvaginal surgical mesh products designed to treat POP and SUI. In November 2013, we received a subpoena relating to this investigation from the state of California, and we have subsequently received additional subpoenas from California and other states. We are cooperating with these investigations. We will continue to vigorously defend any unresolved claims and to explore other options as appropriate in our best interests. Similar matters may be brought by others or the foregoing matters may be expanded. We are unable to predict the outcome of these matters or to estimate the possible range of any additional losses that could be incurred. Testosterone. Various manufacturers of prescription medications containing testosterone, including our subsidiaries Endo Pharmaceuticals Inc. (EPI) and Auxilium Pharmaceuticals, Inc. (subsequently converted to Auxilium Pharmaceuticals, LLC and hereinafter referred to as Auxilium), have been named as defendants in multiple lawsuits alleging personal injury resulting from the use of such medications, including FORTESTA ® Gel, DELATESTRYL ® , TESTIM ® , TESTOPEL ® , AVEED ® and STRIANT ® . Plaintiffs in these suits generally allege various personal injuries, including pulmonary embolism, stroke or other vascular and/or cardiac injuries, and seek compensatory and/or punitive damages, where available. As of November 1, 2018 , we were aware of approximately 1,205 testosterone cases (some of which may have been filed on behalf of multiple plaintiffs) pending against one or more of our subsidiaries in federal or state court. Many of these cases have been coordinated in a federal MDL pending in the U.S. District Court for the Northern District of Illinois (MDL No. 2545). In November 2015, the MDL court entered an order granting defendants’ motion to dismiss claims involving certain testosterone products that were approved pursuant to ANDAs, including TESTOPEL ® . Plaintiffs filed a motion for reconsideration and clarification of this order. In March 2016, the MDL court granted plaintiffs’ motion in part and entered an order permitting certain claims to go forward to the extent they are based on allegations of fraudulent off-label marketing. An MDL trial against Auxilium involving TESTIM ® took place in November 2017 and resulted in a defense verdict. A trial against Auxilium involving TESTIM ® was scheduled for January 2018 in the Philadelphia Court of Common Pleas (PCCP) but resolved prior to trial. In June 2018, counsel for plaintiffs, on the one hand, and Auxilium and EPI, on the other, executed an MSA allowing for the resolution of all known testosterone replacement therapy product liability claims against our subsidiaries. The MSA was solely by way of compromise and settlement and was not in any way an admission of fault by us or any of our subsidiaries. The MSA is subject to a process that includes guidelines and procedures for administering the settlement and the release of funds. Among other things, the MSA provides for the creation of a QSF into which the settlement funds will be deposited, establishes participation requirements, and allows for a reduction of the total settlement payment in the event the participation threshold is not met. Distribution of funds to any individual claimant is conditioned upon the receipt of documentation substantiating product use and injury as determined by a third-party special master, the dismissal of any lawsuit and the release of the claim as to us and all affiliates. Prior to receiving funds, an individual claimant must represent and warrant that liens, assignment rights or other claims identified in the claims administration process have been or will be satisfied by the individual claimant. Confidentiality provisions apply to the settlement funds, amounts allocated to individual claimants and other terms of the agreement. Although the Company believes it has appropriately estimated the probable total amount of loss associated with testosterone-related product liability matters as of the date of this report, it is reasonably possible that further claims may be filed or asserted and that adjustments to our liability accrual may be required. This could have a material adverse effect on our business, financial condition, results of operations and cash flows. The MDL also includes a lawsuit filed in November 2014 in the U.S. District for the Northern District of Illinois against EPI, Auxilium and various other manufacturers of testosterone products on behalf of a proposed class of health insurance companies and other third party payers that claim to have paid for certain testosterone products. After a series of motions to dismiss, plaintiff filed a third amended complaint in April 2016, asserting civil claims for alleged violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) and negligent misrepresentation based on defendants’ marketing of certain testosterone products. The court denied a motion to dismiss this complaint in August 2016. In July 2018, the court denied plaintiff’s motion for class certification. In October 2018, defendants moved for summary judgment. This lawsuit is not part of the settlement described above. We will continue to vigorously defend any unresolved claims and to explore other options as appropriate in our best interests. Similar matters may be brought by others or the foregoing matters may be expanded. We are unable to predict the outcome of these matters or to estimate the possible range of any additional losses that could be incurred. Unapproved Drug Litigation In September 2013, the state of Louisiana filed a petition for damages against certain of our subsidiaries, including EPI, and more than 50 other pharmaceutical companies in Louisiana state court (19th Judicial District) alleging that the defendants or their subsidiaries marketed products that were not approved by the FDA and seeking damages, fines, penalties, attorneys’ fees and costs under various causes of action. In October 2015, the district court entered judgment for defendants on their exception for no right of action. The state appealed, and in October 2016 the Louisiana First Circuit Court of Appeals reversed the dismissal as to the state’s Medicaid Assistance Program Integrity Law (MAPIL) and Louisiana Unfair Trade Practices Act (LUTPA) claims but affirmed the dismissal as to the state’s other claims. The state’s petition for rehearing was denied in December 2016. Both sides applied to the Louisiana Supreme Court for a writ of certiorari to review the First Circuit’s decision. Those writs were denied in March 2017. In May 2017, defendants filed exceptions for no cause of action in the district court. In August 2017, the court sustained defendants’ exception as to the MAPIL claim but overruled defendants’ exception as to the LUTPA claim. The state then filed a motion seeking reconsideration with respect to the MAPIL claim, and defendants filed a motion for clarification with respect to the court’s ruling on the LUTPA claim. In October 2017, the court denied the state’s motion and entered final judgment against the state with respect to the MAPIL claim. The court also granted defendants’ motion for clarification and dismissed the state’s LUTPA claim insofar as it sought civil penalties for alleged violations occurring before June 2, 2006. In October 2017, defendants applied for a supervisory writ of certiorari to the Louisiana First Circuit Court of Appeals on the district court’s August 2017 order overruling defendants’ exception on the state’s LUTPA claim. The First Circuit Court of Appeals denied defendants’ writ application in July 2018. In August 2018, the defendants filed an application for a supervisory writ of certiorari to the Louisiana Supreme Court. That writ application is fully briefed. In March 2017, the state of Mississippi filed a complaint against our subsidiary EPI in Mississippi state court (Hinds County Chancery Court) alleging that EPI marketed products that were not approved by the FDA and seeking damages, penalties, attorneys’ fees, costs and other relief under various causes of action. In April 2017, EPI removed the case to the U.S. District Court for the Southern District of Mississippi. In May 2017, the state moved to remand the case to state court, and that motion was granted in October 2017. In November 2017, EPI filed a motion to dismiss the state’s complaint on various grounds. In January 2018, the state filed a motion for leave to amend its complaint. In February 2018, following an unopposed motion by the state, the court consolidated the state’s case against EPI with five substantially similar cases brought by the state against other defendants. The consolidation is solely for purposes of coordinated pretrial proceedings and discovery, not for trial. In March 2018, the court signed an agreed order dismissing EPI and granting the state leave to file a first amended complaint. The first amended complaint names our subsidiary Generics International (US), Inc. (Generics) as the defendant. In April 2018, Generics moved to dismiss on various grounds. The case is currently stayed by agreement of the parties. We will continue to vigorously defend the foregoing matters and to explore other options as appropriate in our best interests. Similar matters may be brought by others or the foregoing matters may be expanded. We are unable to predict the outcome of these matters or to estimate the possible range of any losses that could be incurred. Opioid-Related Matters Since 2014, multiple U.S. states, counties, other governmental persons or entities and private plaintiffs have filed suit against certain of our subsidiaries, including Endo Health Solutions Inc. (EHSI), EPI, Par Pharmaceutical, Inc. (PPI), Par Pharmaceutical Companies, Inc. (Par), Vintage Pharmaceuticals, LLC and/or Generics Bidco I, LLC and, in some instances, the Company, as well as various other manufacturers, distributors and/or others, asserting claims relating to defendants’ alleged sales, marketing and/or distribution practices with respect to prescription opioid medications, including certain of our products. As of November 1, 2018 , the cases of which we were aware include, but are not limited to, approximately 11 cases filed by or on behalf of states; approximately 1,505 cases filed by counties, cities, Native American tribes and/or other government-related persons or entities; approximately 112 cases filed by hospitals, health systems, unions, health and welfare funds or other third-party payers; and approximately 48 cases filed by individuals. Certain of the cases have been filed as putative class actions. In addition to the litigation in the U.S., in September 2018, an action against Paladin Labs, EPI, the Company and various other manufacturers and distributors was commenced in British Columbia on behalf of all federal, provincial and territorial governments and agencies in Canada that paid healthcare, pharmaceutical and treatment costs related to opioids. Many of the U.S. cases have been coordinated in a federal MDL pending in the U.S. District Court for the Northern District of Ohio (MDL No. 2804). In March 2018, the U.S. Department of Justice (DOJ) filed a statement of interest in the case, and in April 2018 it filed a motion to participate in settlement discussions and as a friend of the court, which the MDL court has granted. The MDL court has issued a series of case management orders permitting motions to dismiss addressing threshold legal issues in certain cases, setting a trial date in September 2019 for three cases originally filed in the Northern District of Ohio, allowing certain discovery and establishing certain other deadlines and procedures, among other things. Other cases remain pending in various state courts. In some jurisdictions, such as Connecticut, Illinois, New York, Pennsylvania and Texas, certain state court cases have been transferred to a single court within their respective state court systems for coordinated pretrial proceedings. The state cases are generally at the pleading and/or discovery stage. The complaints in the cases assert a variety of claims including, but not limited to, claims for alleged violations of public nuisance, consumer protection, unfair trade practices, racketeering, Medicaid fraud and/or drug dealer liability statutes and/or common law claims for public nuisance, fraud/misrepresentation, strict liability, negligence and/or unjust enrichment. The claims are generally based on alleged misrepresentations and/or omissions in connection with the sale and marketing of prescription opioid medications and/or an alleged failure to take adequate steps to prevent abuse and diversion. Plaintiffs generally seek declaratory and/or injunctive relief; compensatory, punitive and/or treble damages; restitution, disgorgement, civil penalties, abatement, attorneys’ fees, costs and/or other relief. We will continue to vigorously defend the foregoing matters and to explore other options as appropriate in our best interests. Similar matters may be brought by others or the foregoing matters may be expanded. We are unable to predict the outcome of these matters or to estimate the possible range of any losses that could be incurred. In addition to the lawsuits described above, the Company and/or its subsidiaries have received certain subpoenas, civil investigative demands (CIDs) and informal requests for information concerning the sale, marketing and/or distribution of prescription opioid medications, including the following: In September 2017, the Department of Justice for the state of Oregon and the Office of the Attorney General for the Commonwealth of Massachusetts issued CIDs to EHSI and EPI on behalf of a multistate group which we understand currently includes approximately 30 states. Our subsidiaries are cooperating with this investigation. Certain states participating in the multistate investigation had issued their own CIDs, subpoenas or requests for information to the Company prior to their participation in the multistate investigation. Other states are conducting their own investigations outside of the multistate group. These states include New Hampshire (subpoenas received by EPI in August 2015 and December 2017); New Jersey (subpoena received by EPI in March 2017); Washington (CID received by the Company, EHSI and EPI in August 2017); Montana (CID received by EHSI and EPI in January 2018); Alaska (CID received by EPI in February 2018); and South Carolina (CID received by EHSI and EPI in February 2018). We are cooperating with these investigations. In January 2018, our subsidiary EPI received a federal grand jury subpoena from the U.S. District Court for the Southern District of Florida in connection with an investigation being conducted by the U.S. Attorney’s Office for the Southern District of Florida in conjunction with the U.S. Food and Drug Administration. The subpoena seeks information related to OPANA ® ER and other oxymorphone products. EPI is cooperating with the investigation. Similar investigations may be brought by others or the foregoing matters may be expanded or result in litigation. We are unable to predict the outcome of these matters or to estimate the possible range of any losses that could be incurred. Generic Drug Pricing Matters In December 2014, we received a grand jury subpoena from the Antitrust Division of the DOJ issued by the U.S. District Court for the Eastern District of Pennsylvania to Par Pharmaceuticals. The subpoena requested documents and information focused primarily on product and pricing information relating to Par’s authorized generic version of Lanoxin (digoxin) oral tablets and Par’s generic doxycycline products, and on communications with competitors and others regarding those products. We are cooperating with the investigation. In December 2015, EPI received interrogatories and a subpoena from the Connecticut Attorney General’s Office requesting documents and information regarding pricing of certain of generic products, including doxycycline hyclate, amitriptyline hydrochloride, doxazosin mesylate, methotrexate sodium and oxybutynin chloride. EPI is cooperating with this investigation. In May 2018, we and our subsidiary Par each received a CID from the U.S. Department of Justice in relation to a False Claims Act investigation concerning whether generic pharmaceutical manufacturers engaged in price fixing and market allocation agreements, paid illegal remuneration and caused the submission of false claims. We are cooperating with the investigation. Similar investigations may be brought by others or the foregoing matters may be expanded or result in litigation. We are unable to predict the outcome of these matters or to estimate the possible range of any losses that could be incurred. Certain cases alleging price-fixing and other anticompetitive conduct with respect to various generic pharmaceutical products have been consolidated and/or coordinated for pretrial proceedings in a federal MDL pending in the U.S. District Court for the Eastern District of Pennsylvania under the caption In re Generic Pharmaceuticals Pricing Antitrust Litigation (MDL No. 2724). Among the lawsuits consolidated and/or coordinated in the MDL, the earliest lawsuits naming the Company and/or its subsidiaries were filed in November 2016 and related to digoxin and doxycycline. The private plaintiffs in the MDL include alleged direct purchasers, end-payers and indirect purchaser resellers who purport to represent not only themselves but also all others similarly situated. At the MDL court’s direction, in August 2017, each group of private plaintiffs (direct purchasers, end-payers and indirect purchaser resellers) filed separate consolidated amended class action complaints as to each of 18 products, except with respect to one product (propranolol) direct purchaser plaintiffs stated their intention to proceed on a consolidated amended complaint filed in the U.S. District Court for the Southern District of New York prior to MDL transfer (the Southern District of New York had denied a motion to dismiss this complaint). Each of the consolidated amended complaints filed in August 2017 relates to one product, and our subsidiary PPI was named as a defendant in complaints relating to the following six products: digoxin, doxycycline hyclate, divalproex ER, propranolol, baclofen and amitriptyline hydrochloride. The MDL court divided the various cases into three separate product-based tranches for certain administrative and scheduling purposes, including briefing on motions to dismiss, and allowed certain targeted discovery. As to the six products in the first tranche (including digoxin, doxycycline hyclate and divalproex ER), defendants filed motions to dismiss in October 2017. In October 2018, the MDL court denied portions of these motions and has yet to rule on other aspects. In December 2016, the Attorney General for the state of Connecticut, leading a coalition of 20 state attorneys general, filed a complaint in the U.S. District Court for the District of Connecticut alleging price-fixing and other anticompetitive conduct with respect to doxycycline hyclate delayed release and glyburide against certain manufacturers of those products. The Company and its subsidiaries were not named in that complaint, or in an amended complaint filed on behalf of 40 states in March 2017, or in a separate lawsuit filed by four more states and the District of Columbia in the same court in July 2017. In August 2017, the state cases were transferred to MDL No. 2724. In October 2017, the state plaintiffs filed a motion for leave to (1) consolidate their two cases, (2) add Alaska and the Commonwealth of Puerto Rico as plaintiffs and (3) assert additional claims against existing and new defendants. In June 2018, the MDL court granted this motion, and the state plaintiffs filed their amended complaint. The amended complaint adds new allegations and claims against 14 new defendants, including our subsidiary Par, relating to 13 additional products. The amended complaint alleges anticompetitive conduct by our subsidiary with respect to doxycycline monohydrate. It also alleges that all defendants engaged in an overarching conspiracy to restrain trade across the generic pharmaceutical industry and seeks to hold all defendants, including our subsidiary, jointly and severally liable for harm caused by alleged anticompetitive activity concerning each of the 15 drugs at issue. The amended complaint seeks declaratory and injunctive relief, disgorgement and other equitable relief, compensatory and treble damages, civil penalties, costs and attorneys’ fees. In January 2018, The Kroger Co., Albertsons Companies, LLC, and H.E. Butt Grocery Company LP filed a complaint in the U.S. District Court for the Eastern District of Pennsylvania against PPI, as well as numerous other manufacturers of generic pharmaceuticals, alleging anticompetitive conduct relating to 30 separate generic pharmaceutical products, including seven products allegedly manufactured by PPI: digoxin, doxycycline hyclate, doxycycline monohydrate, divalproex ER, propranolol, baclofen and amitriptyline hydrochloride. This lawsuit has been assigned to the MDL court. The complaint alleges an overarching conspiracy among all named defendants to engage in price-fixing for all 30 products, as well as product-specific conspiracies relating to each individual product, in violation of federal antitrust law. The complaint seeks monetary damages, including treble damages, attorneys’ fees and injunctive relief. In June 2018, direct purchaser, end-payer and indirect purchaser reseller plaintiffs filed additional class action complaints in the U.S. District Court for the Eastern District of Pennsylvania, alleging anticompetitive conduct relating to approximately 15 generic pharmaceuticals (generally those that were the subject of the state p |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | NOTE 15. OTHER COMPREHENSIVE INCOME (LOSS) Set forth below are the tax effects allocated to each component of Other comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, 2018 2017 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Net unrealized gain on securities: Unrealized gain arising during the period $ — $ — $ — $ 295 $ (107 ) $ 188 Less: reclassification adjustments for (gain) loss realized in net loss — — — — — — Net unrealized gains on securities $ — $ — $ — $ 295 $ (107 ) $ 188 Net unrealized gain on foreign currency: Foreign currency translation gain arising during the period 4,735 — 4,735 9,941 — 9,941 Less: reclassification adjustments for loss realized in net loss — — — 29,325 — 29,325 Foreign currency translation gain $ 4,735 $ — $ 4,735 $ 39,266 $ — $ 39,266 Other comprehensive income $ 4,735 $ — $ 4,735 $ 39,561 $ (107 ) $ 39,454 Nine Months Ended September 30, 2018 2017 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Net unrealized gain on securities: Unrealized gain arising during the period $ — $ — $ — $ 522 $ (189 ) $ 333 Less: reclassification adjustments for (gain) loss realized in net loss — — — — — — Net unrealized gains on securities $ — $ — $ — $ 522 $ (189 ) $ 333 Net unrealized (loss) gain on foreign currency: Foreign currency translation (loss) gain arising during the period (7,033 ) — (7,033 ) 35,415 — 35,415 Less: reclassification adjustments for loss realized in net loss — — — 29,325 — 29,325 Foreign currency translation (loss) gain $ (7,033 ) $ — $ (7,033 ) $ 64,740 $ — $ 64,740 Other comprehensive (loss) income $ (7,033 ) $ — $ (7,033 ) $ 65,262 $ (189 ) $ 65,073 Reclassification adjustments out of Other comprehensive income related to foreign currency translation were recorded upon the liquidation of Litha in the third quarter of 2017. Substantially all of the Company’s Accumulated other comprehensive loss at September 30, 2018 and December 31, 2017 consists of Foreign currency translation loss . |
Shareholders' (Deficit) Equity
Shareholders' (Deficit) Equity Shareholders' (Deficit) Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Shareholders' (Deficit) Equity | NOTE 16. SHAREHOLDERS' (DEFICIT) EQUITY Changes in Shareholders' (Deficit) Equity The following table displays a reconciliation of our beginning and ending balances in Total shareholders' equity (deficit) for the nine months ended September 30, 2018 (in thousands): Total Shareholders' Equity (Deficit) Shareholders' equity at January 1, 2018, prior to the adoption of ASC 606 $ 484,880 Effect of adopting ASC 606 (1) 3,076 Shareholders' equity at January 1, 2018 $ 487,956 Net loss (739,561 ) Other comprehensive loss (7,033 ) Compensation related to share-based awards 43,722 Tax withholding for restricted shares (5,082 ) Exercise of options 473 Other 66 Shareholders' deficit at September 30, 2018 $ (219,459 ) __________ (1) Refer to Note 2. Summary of Significant Accounting Policies for further description of ASC 606. Share-Based Compensation During the second quarter of 2018, the Company’s shareholders approved an amendment to the Endo International plc Amended and Restated 2015 Stock Incentive Plan (the Plan). The Plan was amended and restated to increase the number of the Company’s ordinary shares that may be issued with respect to awards under the Plan by 5.0 million ordinary shares and to make certain other changes to the Plan’s terms. The Company recognized share-based compensation expense of $13.7 million and $13.2 million during the three months ended September 30, 2018 and 2017 , respectively, and $43.7 million and $40.3 million during the nine months ended September 30, 2018 and 2017 , respectively. As of September 30, 2018 , the total remaining unrecognized compensation cost related to non-vested share-based compensation awards amounted to $45.6 million . During the third quarter of 2017, the Company issued approximately 1.0 million stock options and 0.1 million restricted stock units that were initially subject to shareholder approval and were subsequently approved by shareholders on June 7, 2018 at the Company’s Annual General Meeting of Shareholders. The options have an exercise price equal to the closing share price on their issuance date in August 2017. There are 0.5 million performance share units outstanding as of September 30, 2018 , representing target amounts, for which a grant date has not been established. No fair value has been ascribed to these awards as no grant date has been established. Accordingly, they are not reflected in the remaining unrecognized compensation cost above or the weighted average remaining requisite service period below. Beginning in 2017, long-term cash incentive (LTCI) awards were provided to certain employees. LTCI awards were designed to vest ratably, in equal amounts, over a three -year service period. Upon vesting, each vested LTCI unit would be settled in cash in an amount equal to the price of Endo’s ordinary shares on the vest date. As of September 30, 2018, approximately 3.0 million unvested LTCI awards were outstanding with a weighted average remaining requisite service period of 2.3 years . A corresponding liability of $14.9 million was recorded as of September 30, 2018 in Accounts payable and accrued expenses and Other liabilities in the Company’s Condensed Consolidated Balance Sheets . On October 1, 2018, the Compensation Committee of the Company’s Board of Directors authorized the Company to settle each of the outstanding unvested LTCI awards in shares, rather than cash, upon vesting in accordance with the original vesting terms of the awards. With the authorization of the Compensation Committee, management’s intent to settle the awards in shares rather than cash is a modification that changes the awards’ classification from liability to equity, effective October 1, 2018. The accounting for the modification will occur in the fourth quarter of 2018. As of September 30, 2018, the LTCI awards are not reflected in the remaining unrecognized compensation cost above or the weighted average remaining requisite service period below. As of September 30, 2018 , the weighted average remaining requisite service period for non-vested stock options was 1.8 years and for non-vested restricted stock units was 2.0 years . |
Other Income, Net
Other Income, Net | 9 Months Ended |
Sep. 30, 2018 | |
Component of Operating Income [Abstract] | |
OTHER INCOME, NET | NOTE 17. OTHER INCOME, NET The components of Other income, net for the three and nine months ended September 30, 2018 and 2017 are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net gain on sale of business and other assets $ (2,866 ) $ (2,763 ) $ (29,859 ) $ (5,074 ) Foreign currency loss (gain), net 1,354 2,549 (734 ) (4,305 ) Net loss (gain) from our investments in the equity of other companies 842 (1,075 ) 3,163 (1,163 ) Other miscellaneous, net (837 ) (808 ) (5,786 ) (301 ) Other income, net $ (1,507 ) $ (2,097 ) $ (33,216 ) $ (10,843 ) Net gain on sale of business and other assets primarily relates to proceeds received from the sale of various ANDAs during the three and nine months ended September 30, 2018 . Foreign currency loss (gain), net results from the remeasurement of the Company’s foreign currency denominated assets and liabilities. Net loss (gain) from our investments in the equity of other companies includes the income statement impacts of our investments in the equity of other companies, including those accounted for under the equity method and those classified as marketable securities. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 18. INCOME TAXES The following table displays our Loss from continuing operations before income tax , Income tax expense (benefit) and Effective tax rate for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Loss from continuing operations before income tax $ (143,068 ) $ (127,796 ) $ (671,559 ) $ (1,058,647 ) Income tax expense (benefit) $ 3,003 $ (28,109 ) $ 24,729 $ (97,517 ) Effective tax rate (2.1 )% 22.0 % (3.7 )% 9.2 % The income tax expense for the three months ended September 30, 2018 primarily relates to the geographic mix of pre-tax earnings. As of September 30, 2018 , we had valuation allowances established against our deferred tax assets in most jurisdictions in which we operate, with the exception of Canada and India . The income tax benefit for the comparable 2017 period primarily relates to the geographic mix of pre-tax earnings and a discrete tax benefit primarily associated with the filing of the Company’s 2016 U.S. federal income tax return and an intangible asset impairment. The income tax expense for the nine months ended September 30, 2018 primarily relates to the geographic mix of pre-tax earnings and discrete tax expense incurred in connection with an intercompany asset restructuring. The income tax benefit for the comparable 2017 period relates primarily to the geographic mix of pre-tax earnings and the discrete tax benefits associated with goodwill and intangible asset impairments and the favorable return to provision adjustments resulting from the filing of the Company’s 2016 U.S. federal income tax return. During the year ended December 31, 2017, we recorded a benefit of $36.2 million as our estimate of the impact of the TCJA. This benefit, which is primarily related to the remeasurement of deferred tax liabilities related to tax deductible goodwill, was recorded in our Consolidated Statements of Operations as Income tax benefit during the three months ended December 31, 2017. We recorded the aforementioned net benefit based on currently available information and interpretations of the TCJA. In accordance with authoritative guidance issued by the SEC, the income tax effect for certain aspects of the TCJA may represent provisional amounts for which our accounting is incomplete but a reasonable estimate could be determined. We consider amounts related to the various transition rules and interpretations of the TCJA to be provisional. Accordingly, we will continue to evaluate the impacts of the TCJA, including administrative and regulatory guidance as it becomes available. The measurement and existence of current and non-current income tax payables and/or the remeasurement of deferred tax assets and liabilities may change upon finalization of our analysis, which is expected to occur no later than one year from December 22, 2017, the date of the TCJA’s enactment. Any adjustment to a provisional amount identified during the one-year measurement period will be recorded as an income tax expense or benefit in the period the adjustment is determined. During the nine months ended September 30, 2018 , we did not record any adjustments to the provisional amounts recognized in 2017. We will continue to monitor for any significant impact on the Company’s consolidated financial statements with respect to the TCJA as more refined information and further guidance become available. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NOTE 19. NET LOSS PER SHARE The following is a reconciliation of the numerator and denominator of basic and diluted net loss per share for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Loss from continuing operations $ (146,071 ) $ (99,687 ) $ (696,288 ) $ (961,130 ) (Loss) income from discontinued operations, net of tax (27,134 ) 3,017 (43,273 ) (705,886 ) Net loss $ (173,205 ) $ (96,670 ) $ (739,561 ) $ (1,667,016 ) Denominator: For basic per share data—weighted average shares 224,132 223,299 223,829 223,157 Dilutive effect of ordinary share equivalents — — — — For diluted per share data—weighted average shares 224,132 223,299 223,829 223,157 Basic net loss per share data is computed based on the weighted average number of ordinary shares outstanding during the period. Diluted loss per share data is computed based on the weighted average number of ordinary shares outstanding and, if there is net income from continuing operations attributable to Endo ordinary shareholders during the period, the dilutive impact of ordinary share equivalents outstanding during the period. Stock options and awards that have been issued but for which a grant date has not yet been established, such as the performance share units discussed in Note 16. Shareholders' (Deficit) Equity , are not considered in the calculation of basic or diluted weighted average shares. All potentially dilutive items were excluded from the diluted share calculation for the three and nine months ended September 30, 2018 and 2017 because their effect would have been anti-dilutive, as the Company was in a loss position. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition . The Company adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606) on January 1, 2018 using the modified retrospective method for all revenue-generating contracts, including modifications thereto, that were not completed contracts at the date of adoption. For further discussion of the impact of adoption, refer to the “ Recent Accounting Pronouncements Adopted or Otherwise Effective as of September 30, 2018 ” section below. ASC 606 applies to contracts with commercial substance that establish the payment terms and each party’s rights regarding the goods or services to be transferred, to the extent collection of substantially all of the related consideration is probable. Under ASC 606, we recognize revenue for contracts meeting these criteria when (or as) we satisfy our performance obligations for such contracts by transferring control of the underlying promised goods or services to our customers. The amount of revenue we recognize reflects our estimate of the consideration we expect to be entitled to receive, subject to certain constraints, in exchange for such goods or services. This amount is referred to as the transaction price. Our revenue consists almost entirely of sales of our pharmaceutical products to customers, whereby we ship products to a customer pursuant to a purchase order and invoice the customer upon shipment. For contracts such as these, revenue is recognized when our contractual performance obligations have been fulfilled and control has been transferred to the customer pursuant to the contract’s terms, which is generally upon delivery to the customer. The amount of revenue we recognize is equal to the fixed amount of the transaction price, adjusted for our estimates of a number of significant variable components including, but not limited to, estimates for chargebacks, rebates, sales incentives and allowances, distribution service agreement (DSA) and other fees for services, returns and allowances. The Company utilizes the expected value method when estimating the amount of variable consideration to include in the transaction price with respect to each of the foregoing variable components and the most likely amount method when estimating the amount of variable consideration to include in the transaction price with respect to future potential milestone payments that do not qualify for the sales- and usage-based royalty exception. Variable consideration is included in the transaction price only to the extent that it is probable that a significant revenue reversal will not occur when the uncertainty associated with the variable consideration is resolved. Payment terms for these types of contracts generally fall within 30 to 90 days of invoicing. Our most significant components of variable consideration are further described below. Our estimates for these components are based on factors such as historical experience, estimated future trends, estimated customer inventory levels, current contract sales terms with our direct and indirect customers and other competitive factors. Contract Assets and Contract Liabilities . Contract assets represent the Company’s right to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditioned on something other than the passage of time including, for example, the entity’s future performance. The Company records revenue and a corresponding contract asset when it fulfills a contractual performance obligation, but must also fulfill one or more additional performance obligations before being entitled to payment. Once the Company’s right to consideration becomes unconditional, the contract asset amount is reclassified as Accounts receivable. Contract liabilities represent the Company’s obligation to transfer goods or services to a customer. The Company records a contract liability generally upon receipt of consideration in advance of fulfilling one or more of its contractual performance obligations. Upon completing the corresponding performance obligation, the contract liability amount is reversed and revenue is recognized. Contract assets and liabilities related to rights and obligations arising from a single contract, or a series of contracts combined and accounted for as a single contract, are generally presented on a net basis. Contract assets and liabilities are further described in Note 11. Contract Assets and Liabilities . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted as of September 30, 2018 In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, “Leases (Topic 842)” (ASU 2016-02) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases” (ASU 2018-10), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU No. 2018-11, “Leases (Topic 842) - Targeted Improvements” (ASU 2018-11), which addresses implementation issues related to the new lease standard. This guidance will be effective for the Company beginning in the first quarter of 2019, with early application permitted. The Company plans to adopt this guidance in the first quarter of 2019 using the modified retrospective approach and will recognize a cumulative-effect adjustment to the opening balance of Accumulated deficit in that period. This guidance includes a number of optional practical expedients that the Company may elect to apply, including an expedient that permits lease agreements that are twelve months or less to be excluded from the balance sheet. The Company is continuing to evaluate the impact that this new guidance will have on its consolidated financial statements, including its disclosures. It is expected that the primary impact upon adoption will be the recognition, on a discounted basis, of the Company’s minimum commitments under noncancelable operating leases as right of use assets and obligations on the consolidated balance sheets. This will result in a significant increase in assets and liabilities on the Company’s consolidated balance sheets. In preparation for the adoption of this guidance, the Company is continuing the process of identifying and validating the Company’s lease information and evaluating the impact that this new guidance will have on its processes and controls. In February 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ” (ASU 2018-02). ASU 2018-02 allows for a reclassification from accumulated other comprehensive income or loss to retained earnings or accumulated deficit for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (TCJA). ASU 2018-02 also requires certain related disclosures. ASU 2018-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recognized. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-02 on the Company’s consolidated results of operations and financial position. In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements” (ASU 2018-09). ASU 2018-09 makes changes to a variety of topics to clarify, correct errors in or make minor improvements to the Accounting Standards Codification. Certain of these provisions are effective immediately; however, these provisions did not have a material impact on the Company’s financial statements or disclosures. The remaining provisions are generally effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company is currently evaluating the impact of these remaining provisions of ASU 2018-09 on the Company’s consolidated results of operations and financial position. In August 2018, the FASB issued ASU No. 2018-13, “ Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ” (ASU 2018-13). ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement . ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Certain aspects of ASU 2018-13 require prospective treatment, while others require retrospective treatment. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-13 on the Company’s disclosures. In August 2018, the FASB issued ASU No. 2018-15, “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ” (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (including hosting arrangements where a software license is deemed to exist). ASU 2018-15 also requires the customer to expense any such capitalized implementation costs over the term of the hosting arrangement and to apply the existing impairment guidance for long-lived assets to such capitalized costs. Additionally, ASU 2018-15 sets forth required disclosures and guidance on financial statement classification for expenses, cash flows and balances related to implementation costs within the scope of ASU 2018-15. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. ASU 2018-15 may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption and early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-15 on the Company’s consolidated results of operations, financial position and disclosures. In November 2018, the FASB issued ASU No. 2018-18, “ Clarifying the Interaction Between Topic 808 and Topic 606” (ASU 2018-18). The main provisions of ASU 2018-18 include: (i) clarifying that certain transactions between collaborative arrangement participants should be accounted for as revenue when the collaborative arrangement participant is a customer in the context of a unit of account and (ii) precluding the presentation of transactions with collaborative arrangement participants that are not directly related to sales to third parties together with revenue. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. ASU 2018-18 should generally be applied retrospectively to the date of initial application of Topic 606 (January 1, 2018 for the Company) and early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-18 on the Company’s consolidated results of operations, financial position and disclosures. Recent Accounting Pronouncements Adopted or Otherwise Effective as of September 30, 2018 In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which was subsequently amended and supplemented by several additional ASUs including: • ASU No. 2015-14, “ Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” (issued in August 2015), which deferred the effective date of ASU 2014-09 by one year, such that ASU 2014-09 became effective for Endo for annual and interim reporting periods beginning after December 15, 2017; • ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Consideration (Reporting Revenue Gross versus Net)” (issued in March 2016) , which clarified the guidance on reporting revenue as a principal versus agent; • ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (issued in April 2016) , which clarified the guidance on identifying performance obligations and accounting for intellectual property licenses; and • ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” (issued in May 2016 and December 2016, respectively), which amended certain narrow aspects of Topic 606. These ASUs have generally been codified in Accounting Standards Codification Topic 606 “ Revenue from Contracts with Customers ”, and are collectively referred to herein as ASC 606. ASC 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (ASC 605), and requires entities to recognize revenue when control of promised goods or services is transferred to customers at an amount that reflects the consideration to which entities expect to be entitled in exchange for those goods or services. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective method for all revenue-generating contracts, including modifications thereto, that were not completed contracts at the date of adoption. Under the modified retrospective method, results beginning on January 1, 2018 are presented under ASC 606, while the comparative prior period results continue to be presented under ASC 605 based on the accounting standards originally in effect for such periods. As a result of adopting ASC 606, the Company recorded a net decrease of $3.1 million to its accumulated deficit at January 1, 2018, representing the cumulative impact of adopting ASC 606. In May 2017, the FASB issued ASU No. 2017-09 “Compensation - Stock Compensation” (ASU 2017-09). ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. It is intended to reduce both (1) diversity in practice and (2) cost and complexity when accounting for changes to the terms or conditions of share-based payment awards. ASU 2017-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted the new standard on January 1, 2018 and the amendments in this update will be applied prospectively to any award modified on or after the adoption date. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of new accounting pronouncements | The table below presents the effects of ASU 2016-18 on the Company’s Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2017 (in thousands): Prior to Adoption Impact of Adoption Subsequent to Adoption Net cash provided by operating activities $ 424,062 $ (1,900 ) $ 422,162 Net cash (used in) provided by investing activities (69,802 ) 78,766 8,964 Net cash used in financing activities (135,353 ) — (135,353 ) Effect of foreign exchange rate 3,686 297 3,983 Movement in cash held for sale (1,450 ) — (1,450 ) Net change (1) $ 221,143 $ 77,163 $ 298,306 Beginning-of-period balance (2) 517,250 287,930 805,180 End-of-period balance (2) $ 738,393 $ 365,093 $ 1,103,486 __________ (1) This line refers to the “Net increase in cash and cash equivalents” prior to the adoption of ASU 2016-18 and the “Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents” after the adoption. (2) These lines refer to the beginning or end of period amounts of “Cash and cash equivalents” prior to the adoption of ASU 2016-18 and the beginning or end of period amounts of “Cash, cash equivalents, restricted cash and restricted cash equivalents” after the adoption. The current period impact of adoption on our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets is as follows (in thousands, except per share amounts): Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Statement of Operations: Amounts reported under ASC 606 Amounts assuming continued application of ASC 605 Effect of adoption of ASC 606 (1) Amounts reported under ASC 606 Amounts assuming continued application of ASC 605 Effect of adoption of ASC 606 (1) Total revenues $ 745,466 $ 747,571 $ (2,105 ) $ 2,160,689 $ 2,160,132 $ 557 Cost of revenues $ 412,965 $ 414,430 $ (1,465 ) $ 1,198,468 $ 1,199,042 $ (574 ) Other income, net $ (1,507 ) $ (1,507 ) $ — $ (33,216 ) $ (32,216 ) $ (1,000 ) Loss from continuing operations $ (146,071 ) $ (145,431 ) $ (640 ) $ (696,288 ) $ (698,419 ) $ 2,131 Net loss $ (173,205 ) $ (172,565 ) $ (640 ) $ (739,561 ) $ (741,692 ) $ 2,131 Net loss per share—Basic: Continuing operations $ (0.65 ) $ (0.65 ) $ — $ (3.11 ) $ (3.12 ) $ 0.01 Total basic $ (0.77 ) $ (0.77 ) $ — $ (3.30 ) $ (3.31 ) $ 0.01 Net loss per share—Diluted: Continuing operations $ (0.65 ) $ (0.65 ) $ — $ (3.11 ) $ (3.12 ) $ 0.01 Total diluted $ (0.77 ) $ (0.77 ) $ — $ (3.30 ) $ (3.31 ) $ 0.01 __________ (1) Amounts may not add due to rounding. At September 30, 2018 Balance Sheet: Amounts reported under ASC 606 Amounts assuming continued application of ASC 605 Effect of adoption of ASC 606 Assets: Inventories, net $ 332,787 $ 341,189 $ (8,402 ) Prepaid expenses and other current assets $ 50,697 $ 40,368 $ 10,329 Other assets $ 67,934 $ 64,972 $ 2,962 Liabilities: Accounts payable and accrued expenses $ 1,019,004 $ 1,019,322 $ (318 ) Shareholders' (defici t) equity: Accumulated deficit $ (8,833,024 ) $ (8,838,231 ) $ 5,207 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of new accounting pronouncements | The table below presents the effects of ASU 2016-18 on the Company’s Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2017 (in thousands): Prior to Adoption Impact of Adoption Subsequent to Adoption Net cash provided by operating activities $ 424,062 $ (1,900 ) $ 422,162 Net cash (used in) provided by investing activities (69,802 ) 78,766 8,964 Net cash used in financing activities (135,353 ) — (135,353 ) Effect of foreign exchange rate 3,686 297 3,983 Movement in cash held for sale (1,450 ) — (1,450 ) Net change (1) $ 221,143 $ 77,163 $ 298,306 Beginning-of-period balance (2) 517,250 287,930 805,180 End-of-period balance (2) $ 738,393 $ 365,093 $ 1,103,486 __________ (1) This line refers to the “Net increase in cash and cash equivalents” prior to the adoption of ASU 2016-18 and the “Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents” after the adoption. (2) These lines refer to the beginning or end of period amounts of “Cash and cash equivalents” prior to the adoption of ASU 2016-18 and the beginning or end of period amounts of “Cash, cash equivalents, restricted cash and restricted cash equivalents” after the adoption. The current period impact of adoption on our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets is as follows (in thousands, except per share amounts): Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Statement of Operations: Amounts reported under ASC 606 Amounts assuming continued application of ASC 605 Effect of adoption of ASC 606 (1) Amounts reported under ASC 606 Amounts assuming continued application of ASC 605 Effect of adoption of ASC 606 (1) Total revenues $ 745,466 $ 747,571 $ (2,105 ) $ 2,160,689 $ 2,160,132 $ 557 Cost of revenues $ 412,965 $ 414,430 $ (1,465 ) $ 1,198,468 $ 1,199,042 $ (574 ) Other income, net $ (1,507 ) $ (1,507 ) $ — $ (33,216 ) $ (32,216 ) $ (1,000 ) Loss from continuing operations $ (146,071 ) $ (145,431 ) $ (640 ) $ (696,288 ) $ (698,419 ) $ 2,131 Net loss $ (173,205 ) $ (172,565 ) $ (640 ) $ (739,561 ) $ (741,692 ) $ 2,131 Net loss per share—Basic: Continuing operations $ (0.65 ) $ (0.65 ) $ — $ (3.11 ) $ (3.12 ) $ 0.01 Total basic $ (0.77 ) $ (0.77 ) $ — $ (3.30 ) $ (3.31 ) $ 0.01 Net loss per share—Diluted: Continuing operations $ (0.65 ) $ (0.65 ) $ — $ (3.11 ) $ (3.12 ) $ 0.01 Total diluted $ (0.77 ) $ (0.77 ) $ — $ (3.30 ) $ (3.31 ) $ 0.01 __________ (1) Amounts may not add due to rounding. At September 30, 2018 Balance Sheet: Amounts reported under ASC 606 Amounts assuming continued application of ASC 605 Effect of adoption of ASC 606 Assets: Inventories, net $ 332,787 $ 341,189 $ (8,402 ) Prepaid expenses and other current assets $ 50,697 $ 40,368 $ 10,329 Other assets $ 67,934 $ 64,972 $ 2,962 Liabilities: Accounts payable and accrued expenses $ 1,019,004 $ 1,019,322 $ (318 ) Shareholders' (defici t) equity: Accumulated deficit $ (8,833,024 ) $ (8,838,231 ) $ 5,207 |
Discontinued Operations and D_2
Discontinued Operations and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of disposal groups, including discontinued operations, income statement, balance sheet and additional disclosures | The following table provides the operating results of Astora for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Litigation-related and other contingencies, net $ 19,000 $ — $ 19,000 $ 775,684 Loss from discontinued operations before income taxes $ (27,134 ) $ (8,957 ) $ (43,273 ) $ (813,442 ) Income tax benefit $ — $ (11,974 ) $ — $ (107,556 ) Discontinued operations, net of tax $ (27,134 ) $ 3,017 $ (43,273 ) $ (705,886 ) |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve by type of cost | Changes to this liability during the nine months ended September 30, 2018 were as follows (in thousands): Employee Separation and Other Benefit-Related Costs Other Restructuring Costs Total Liability balance as of January 1, 2018 $ — $ 650 $ 650 Expenses 22,087 1,705 23,792 Cash distributions (18,439 ) (1,949 ) (20,388 ) Liability balance as of September 30, 2018 $ 3,648 $ 406 $ 4,054 Changes to this liability during the nine months ended September 30, 2018 were as follows (in thousands): Employee Separation and Other Benefit-Related Costs Other Restructuring Costs Total Liability balance as of January 1, 2018 $ 22,975 $ 1,610 $ 24,585 Expenses 9,779 9,341 19,120 Cash distributions (22,518 ) (10,951 ) (33,469 ) Liability balance as of September 30, 2018 $ 10,236 $ — $ 10,236 |
Segment Results (Tables)
Segment Results (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of reportable segments information | The following represents selected information for the Company’s reportable segments for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net revenues from external customers: U.S. Branded - Specialty & Established Pharmaceuticals $ 220,100 $ 233,803 $ 632,972 $ 729,150 U.S. Branded - Sterile Injectables 237,150 201,905 670,847 554,365 U.S. Generic Pharmaceuticals 257,969 294,749 748,445 1,227,584 International Pharmaceuticals (1) 30,247 56,430 108,425 189,119 Total net revenues from external customers $ 745,466 $ 786,887 $ 2,160,689 $ 2,700,218 Adjusted income from continuing operations before income tax: U.S. Branded - Specialty & Established Pharmaceuticals $ 84,891 $ 123,754 $ 262,454 $ 380,841 U.S. Branded - Sterile Injectables 170,329 150,531 513,082 417,060 U.S. Generic Pharmaceuticals 82,555 86,236 247,137 415,172 International Pharmaceuticals 13,377 17,434 45,594 47,128 Total segment adjusted income from continuing operations before income tax $ 351,152 $ 377,955 $ 1,068,267 $ 1,260,201 __________ (1) Revenues generated by our International Pharmaceuticals segment are primarily attributable to external customers located in Canada and, prior to the sale of Litha on July 3, 2017 and Somar on October 25, 2017, South Africa and Latin America. |
Schedule of reconciliations of consolidated loss from continuing operations before income tax | The table below provides reconciliations of our consolidated Loss from continuing operations before income tax , which is determined in accordance with U.S. generally accepted accounting principles (U.S. GAAP), to our total segment adjusted income from continuing operations before income tax for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Total consolidated loss from continuing operations before income tax $ (143,068 ) $ (127,796 ) $ (671,559 ) $ (1,058,647 ) Interest expense, net 131,847 127,521 385,896 361,267 Corporate unallocated costs (1) 49,187 33,035 144,693 114,655 Amortization of intangible assets 161,275 161,413 471,662 615,490 Inventory step-up 71 66 261 281 Upfront and milestone payments to partners 4,731 775 43,027 6,952 Separation benefits and other cost reduction initiatives (2) 4,001 80,693 82,141 127,977 Certain litigation-related and other contingencies, net (3) (1,750 ) (12,352 ) 15,370 (14,016 ) Asset impairment charges (4) 142,217 94,924 613,400 1,023,930 Acquisition-related and integration items (5) 1,288 16,641 13,284 31,711 Loss on extinguishment of debt — — — 51,734 Foreign currency impact related to the remeasurement of intercompany debt instruments 1,528 3,005 (1,560 ) (2,922 ) Other, net (6) (175 ) 30 (28,348 ) 1,789 Total segment adjusted income from continuing operations before income tax $ 351,152 $ 377,955 $ 1,068,267 $ 1,260,201 __________ (1) Amounts include certain corporate overhead costs, such as headcount and facility expenses and certain other income and expenses. (2) Amounts for the three and nine months ended September 30, 2018 relate to employee separation costs of $2.1 million and $32.7 million , respectively, charges to increase excess inventory reserves of $0.2 million and $2.8 million , respectively, and other charges of $1.7 million and $11.4 million , respectively, each of which related primarily to our restructuring initiatives. Also included in the amount for the nine months ended September 30, 2018 is accelerated depreciation of $35.2 million , which related to the 2017 U.S. Generic Pharmaceuticals Restructuring Initiative . During the three and nine months ended September 30, 2017 , amounts primarily relate to employee separation costs of $19.8 million and $41.3 million , accelerated depreciation of $59.8 million and $60.2 million , other charges of $1.1 million and $18.5 million , respectively, and charges to increase excess inventory reserves of $7.9 million during the nine months ended September 30, 2017 . These charges were related primarily to the 2017 U.S. Generics Pharmaceuticals restructuring initiative. See Note 4. Restructuring for discussion of our material restructuring initiatives. (3) Amounts include adjustments for Litigation-related and other contingencies, net as further described in Note 14. Commitments and Contingencies . (4) Amounts primarily relate to charges to impair goodwill and intangible assets as further described in Note 9. Goodwill and Other Intangibles as well as charges to write down certain property, plant and equipment as further described in Note 7. Fair Value Measurements . (5) Amounts during the three and nine months ended September 30, 2018 are primarily related to charge s due to changes in the fair value of contingent consideration of $0.8 million and $11.7 million , respectively. Amounts during the three and nine months ended September 30, 2017 include charge s due to changes in the fair value of contingent consideration of $15.4 million and $23.6 million , respectively. All other amounts are directly related to costs associated with acquisition and integration efforts. (6) Amounts during the three and nine months ended September 30, 2018 primarily relate to gains on sales of businesses and other assets, as further described in Note 17. Other income, net . |
Disaggregation of revenue | The Company disaggregates its revenue from contracts with customers into the categories included in the table below (in thousands). The Company believes these categories depict how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 U.S. Branded - Specialty & Established Pharmaceuticals: Specialty Products: XIAFLEX® $ 64,214 $ 52,511 $ 184,855 $ 152,113 SUPPRELIN® LA 20,408 20,638 60,948 63,468 Other Specialty (1) 43,576 40,634 114,202 113,407 Total Specialty Products $ 128,198 $ 113,783 $ 360,005 $ 328,988 Established Products: PERCOCET® $ 30,730 $ 31,349 $ 93,539 $ 93,183 VOLTAREN® Gel 15,057 19,102 44,185 53,646 OPANA® ER — 14,756 — 82,056 Other Established (2) 46,115 54,813 135,243 171,277 Total Established Products $ 91,902 $ 120,020 $ 272,967 $ 400,162 Total U.S. Branded - Specialty & Established Pharmaceuticals (3) $ 220,100 $ 233,803 $ 632,972 $ 729,150 U.S. Branded - Sterile Injectables: VASOSTRICT® $ 112,333 $ 105,741 $ 332,387 $ 300,649 ADRENALIN® 35,460 25,335 101,858 50,464 Ertapenem for injection 25,798 — 25,798 — Other Sterile Injectables (4) 63,559 70,829 210,804 203,252 Total U.S. Branded - Sterile Injectables (3) $ 237,150 $ 201,905 $ 670,847 $ 554,365 Total U.S. Generic Pharmaceuticals (5) $ 257,969 $ 294,749 $ 748,445 $ 1,227,584 Total International Pharmaceuticals (6) $ 30,247 $ 56,430 $ 108,425 $ 189,119 Total Revenues $ 745,466 $ 786,887 $ 2,160,689 $ 2,700,218 __________ (1) Products included within Other Specialty include TESTOPEL ® , NASCOBAL ® Nasal Spray and AVEED ® . (2) Products included within Other Established include, but are not limited to, LIDODERM ® , EDEX ® , TESTIM ® and FORTESTA ® Gel, including the authorized generics. (3) Individual products presented above represent the top two performing products in each product category and/or any product having revenues in excess of $25 million during any quarterly period in 2018 or 2017 . (4) Products included within Other Sterile Injectables include, but are not limited to, APLISOL ® and ephedrine sulfate injection. (5) The U.S. Generic Pharmaceuticals segment is comprised of a portfolio of products that are generic versions of branded products, are distributed primarily through the same wholesalers, generally have no intellectual property protection and are sold within the U.S. During the nine months ended September 30, 2017 , combined sales of ezetimibe tablets and quetiapine ER tablets, for which we lost temporary marketing exclusivity during the second quarter of 2017, made up 9% of consolidated total revenue. No other individual product within this segment has exceeded 5% of consolidated total revenues for the periods presented. (6) The International Pharmaceuticals segment, which accounted for 4% and 5% of consolidated total revenues during the three and nine months ended September 30, 2018 , respectively, and 7% of consolidated total revenues during both the three and nine months ended September 30, 2017 , includes a variety of specialty pharmaceutical products sold outside the U.S., primarily in Canada through our operating company Paladin Labs, Inc. (Paladin). This segment also included: (i) our South African business, which was sold in July 2017 and consisted of Litha and certain assets acquired from Aspen Holdings in October 2015 and (ii) our Latin American business consisting of Somar, which was sold in October 2017. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on recurring basis | The Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017 were as follows (in thousands): Fair Value Measurements at Reporting Date using: September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 691,579 $ — $ — $ 691,579 Equity securities 1,693 — — 1,693 Total $ 693,272 $ — $ — $ 693,272 Liabilities: Acquisition-related contingent consideration—short-term $ — $ — $ 42,261 $ 42,261 Acquisition-related contingent consideration—long-term — — 86,209 86,209 Total $ — $ — $ 128,470 $ 128,470 Fair Value Measurements at Reporting Date using: December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 439,831 $ — $ — $ 439,831 Time deposits — 303,410 — 303,410 Equity securities 1,456 — — 1,456 Total $ 441,287 $ 303,410 $ — $ 744,697 Liabilities: Acquisition-related contingent consideration—short-term $ — $ — $ 70,543 $ 70,543 Acquisition-related contingent consideration—long-term — — 119,899 119,899 Total $ — $ — $ 190,442 $ 190,442 |
Changes to liability for acquisition-related contingent consideration | The following table presents changes to the Company’s liability for acquisition-related contingent consideration during the nine months ended September 30, 2018 by acquisition (in thousands): Balance as of December 31, 2017 Fair Value Adjustments and Accretion Payments and Other Balance as of September 30, 2018 Auxilium acquisition $ 13,061 $ (263 ) $ (1,844 ) $ 10,954 Lehigh Valley Technologies, Inc. acquisitions 63,001 11,169 (39,469 ) 34,701 VOLTAREN ® Gel acquisition 98,124 3,839 (30,923 ) 71,040 Other 16,256 (3,014 ) (1,467 ) 11,775 Total $ 190,442 $ 11,731 $ (73,703 ) $ 128,470 The following table presents changes to the Company’s liability for acquisition-related contingent consideration, which was measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Beginning of period $ 152,098 $ 210,460 $ 190,442 $ 262,113 Amounts settled (24,564 ) (31,617 ) (73,298 ) (91,927 ) Changes in fair value recorded in earnings 769 15,440 11,731 23,574 Effect of currency translation 167 504 (405 ) 1,027 End of period $ 128,470 $ 194,787 $ 128,470 $ 194,787 |
Summary of nonrecurring fair value measurements | The Company’s financial assets and liabilities measured at fair value on a nonrecurring basis during the nine months ended September 30, 2018 were as follows (in thousands): Fair Value Measurements at Reporting Date using: Total Expense for the Nine Months Ended September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Intangible assets, excluding goodwill (Note 9) $ — $ — $ 239,857 $ (217,576 ) Certain property, plant and equipment (1) — — — (4,824 ) Total $ — $ — $ 239,857 $ (222,400 ) __________ (1) Amount includes $2.6 million related to the 2017 U.S. Generic Pharmaceuticals Restructuring Initiative , which is described further in Note 4. Restructuring . |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consist of the following at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Raw materials (1) $ 119,627 $ 124,685 Work-in-process (1) 83,665 109,897 Finished goods (1) 129,495 156,855 Total $ 332,787 $ 391,437 __________ (1) The components of inventory shown in the table above are net of allowance for obsolescence. |
Goodwill And Other Intangibles
Goodwill And Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The carrying amounts of goodwill at September 30, 2018 and December 31, 2017 are net of the following accumulated impairments (in thousands): U.S. Branded - Specialty & Established Pharmaceuticals U.S. Branded - Sterile Injectables U.S. Generic Pharmaceuticals International Pharmaceuticals Total Accumulated impairment losses as of December 31, 2017 $ 855,810 $ — $ 2,342,549 $ 463,545 $ 3,661,904 Accumulated impairment losses as of September 30, 2018 $ 855,810 $ — $ 2,733,549 $ 451,209 $ 4,040,568 Changes in the carrying amount of our goodwill for the nine months ended September 30, 2018 were as follows (in thousands): U.S. Branded - Specialty & Established Pharmaceuticals U.S. Branded - Sterile Injectables U.S. Generic Pharmaceuticals International Pharmaceuticals Total Goodwill as of December 31, 2017 $ 828,818 $ — $ 3,531,301 $ 89,963 $ 4,450,082 Allocation to current segments (1) — 2,731,193 (2,731,193 ) — — Effect of currency translation — — — (2,414 ) (2,414 ) Goodwill impairment charges — — (391,000 ) — (391,000 ) Goodwill as of September 30, 2018 $ 828,818 $ 2,731,193 $ 409,108 $ 87,549 $ 4,056,668 __________ (1) This allocation relates to the change in segments described in Note 6. Segment Results . The amount of goodwill initially attributed to the new U.S. Branded - Sterile Injectables and U.S. Generic Pharmaceuticals segments was determined using a relative fair value methodology in accordance with U.S. GAAP. |
Schedule of other intangible assets | Changes in the amount of other intangible assets for the nine months ended September 30, 2018 are set forth in the table below (in thousands). Cost basis: Balance as of December 31, 2017 Acquisitions Impairments Other (1) Effect of Currency Translation Balance as of September 30, 2018 Indefinite-lived intangibles: In-process research and development $ 347,200 $ — $ (87,900 ) $ (165,400 ) $ — $ 93,900 Total indefinite-lived intangibles $ 347,200 $ — $ (87,900 ) $ (165,400 ) $ — $ 93,900 Finite-lived intangibles: Licenses (weighted average life of 12 years) $ 457,402 $ — $ — $ — $ — $ 457,402 Tradenames 6,409 — — — — 6,409 Developed technology (weighted average life of 11 years) 6,187,764 — (129,676 ) 154,753 (7,447 ) 6,205,394 Total finite-lived intangibles (weighted average life of 11 years) $ 6,651,575 $ — $ (129,676 ) $ 154,753 $ (7,447 ) $ 6,669,205 Total other intangibles $ 6,998,775 $ — $ (217,576 ) $ (10,647 ) $ (7,447 ) $ 6,763,105 Accumulated amortization: Balance as of December 31, 2017 Amortization Impairments Other (1) Effect of Currency Translation Balance as of September 30, 2018 Finite-lived intangibles: Licenses $ (370,221 ) $ (21,262 ) $ — $ — $ — $ (391,483 ) Tradenames (6,409 ) — — — — (6,409 ) Developed technology (2,304,461 ) (450,400 ) — 10,647 3,217 (2,740,997 ) Total other intangibles $ (2,681,091 ) $ (471,662 ) $ — $ 10,647 $ 3,217 $ (3,138,889 ) Net other intangibles $ 4,317,684 $ 3,624,216 __________ (1) Other adjustments relate to |
Schedule of future amortization expense | Estimated amortization of intangibles for the five fiscal years subsequent to December 31, 2017 is as follows (in thousands): 2018 $ 622,384 2019 $ 552,516 2020 $ 481,300 2021 $ 447,157 2022 $ 420,786 |
Schedule of intangible asset impairment charges including goodwill | During the three and nine months ended September 30, 2018 and 2017 , the Company incurred the following goodwill and other intangible asset impairment charges: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Goodwill impairment charges $ — $ — $ 391,000 $ 288,745 Other intangible asset impairment charges $ 140,609 $ 78,300 $ 217,576 $ 674,177 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract Assets and Liabilities | The following table shows the opening and closing balances of contract assets and contract liabilities from contracts with customers (dollars in thousands): September 30, 2018 January 1, 2018 $ Change % Change Contract assets, net (1) $ 13,291 $ 11,287 $ 2,004 18 % Contract liabilities, net (2) $ 19,635 $ 20,954 $ (1,319 ) (6 )% __________ (1) At September 30, 2018 and January 1, 2018 , approximately $10.3 million and $8.2 million , respectively, of these contract asset amounts are classified as current assets and are included in Prepaid expenses and other current assets in the Company’s Condensed Consolidated Balance Sheets . The remaining amounts are classified as non-current and are included in Other assets. The net increase in contract assets during the nine months ended September 30, 2018 was primarily due to certain sales activity during the period, partially offset by reclassifications to accounts receivable following the resolution of certain conditions other than the passage of time affecting the Company’s rights to consideration for the sale of certain goods. (2) At September 30, 2018 and January 1, 2018 , approximately $1.7 million and $1.9 million , respectively, of these contract liability amounts are classified as current liabilities and are included in Accounts payable and accrued expenses in the Company’s Condensed Consolidated Balance Sheets . The remaining amounts are classified as non-current and are included in Other liabilities. During the nine months ended September 30, 2018 , the Company recognized revenue of $1.3 million that was included in the contract liability balance at January 1, 2018 , resulting in a corresponding decrease in contract liabilities. |
Accounts Payable And Accrued _2
Accounts Payable And Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued expenses include the following at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Trade accounts payable $ 106,321 $ 85,348 Returns and allowances 250,637 291,034 Rebates 152,297 168,333 Chargebacks 2,022 14,604 Accrued interest 64,647 130,257 Accrued payroll and related benefits 84,240 113,908 Accrued royalties and other distribution partner payables 103,673 63,114 Acquisition-related contingent consideration—short-term 42,261 70,543 Other 212,906 159,684 Total $ 1,019,004 $ 1,096,825 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The following table presents information about the Company’s total indebtedness at September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Effective Interest Rate Principal Amount Carrying Amount Effective Interest Rate Principal Amount Carrying Amount 7.25% Senior Notes due 2022 7.91 % $ 400,000 $ 392,439 7.91 % $ 400,000 $ 390,974 5.75% Senior Notes due 2022 6.04 % 700,000 694,053 6.04 % 700,000 692,855 5.375% Senior Notes due 2023 5.62 % 750,000 743,083 5.62 % 750,000 742,048 6.00% Senior Notes due 2023 6.28 % 1,635,000 1,615,955 6.28 % 1,635,000 1,613,446 5.875% Senior Secured Notes due 2024 6.14 % 300,000 295,922 6.14 % 300,000 295,513 6.00% Senior Notes due 2025 6.27 % 1,200,000 1,182,859 6.27 % 1,200,000 1,181,243 Term Loan B Facility Due 2024 5.46 % 3,372,313 3,338,451 5.46 % 3,397,925 3,360,103 Other debt — — 1.50 % 55 55 Total long-term debt, net $ 8,357,313 $ 8,262,762 $ 8,382,980 $ 8,276,237 Less current portion, net 34,150 34,150 34,205 34,205 Total long-term debt, less current portion, net $ 8,323,163 $ 8,228,612 $ 8,348,775 $ 8,242,032 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in Qualified Settlement Funds accounts and product liability balance | The following table presents the changes in the QSFs and mesh liability accrual balance during the nine months ended September 30, 2018 (in thousands): Qualified Settlement Funds Mesh Liability Accrual Balance as of January 1, 2018 $ 313,814 $ 1,087,172 Additional charges — 19,000 Cash contributions to Qualified Settlement Funds 216,770 — Cash distributions to settle disputes from Qualified Settlement Funds (248,485 ) (248,485 ) Cash distributions to settle disputes — (17,114 ) Other (1) 1,653 5,038 Balance as of September 30, 2018 $ 283,752 $ 845,611 __________ (1) Amounts deposited in the QSFs may earn interest, which is generally used to pay administrative costs of the fund and is reflected in the table above as an increase to the QSF and Mesh Liability Accrual balances. Any interest remaining after all claims have been paid will generally be distributed to the claimants who participated in that settlement. The $5.0 million in the table above also includes a second quarter 2018 reclassification adjustment of $4.4 million for accrued interest amounts previously recorded in Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets . |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of tax effects allocated to each component of other comprehensive income | Set forth below are the tax effects allocated to each component of Other comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, 2018 2017 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Net unrealized gain on securities: Unrealized gain arising during the period $ — $ — $ — $ 295 $ (107 ) $ 188 Less: reclassification adjustments for (gain) loss realized in net loss — — — — — — Net unrealized gains on securities $ — $ — $ — $ 295 $ (107 ) $ 188 Net unrealized gain on foreign currency: Foreign currency translation gain arising during the period 4,735 — 4,735 9,941 — 9,941 Less: reclassification adjustments for loss realized in net loss — — — 29,325 — 29,325 Foreign currency translation gain $ 4,735 $ — $ 4,735 $ 39,266 $ — $ 39,266 Other comprehensive income $ 4,735 $ — $ 4,735 $ 39,561 $ (107 ) $ 39,454 Nine Months Ended September 30, 2018 2017 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Net unrealized gain on securities: Unrealized gain arising during the period $ — $ — $ — $ 522 $ (189 ) $ 333 Less: reclassification adjustments for (gain) loss realized in net loss — — — — — — Net unrealized gains on securities $ — $ — $ — $ 522 $ (189 ) $ 333 Net unrealized (loss) gain on foreign currency: Foreign currency translation (loss) gain arising during the period (7,033 ) — (7,033 ) 35,415 — 35,415 Less: reclassification adjustments for loss realized in net loss — — — 29,325 — 29,325 Foreign currency translation (loss) gain $ (7,033 ) $ — $ (7,033 ) $ 64,740 $ — $ 64,740 Other comprehensive (loss) income $ (7,033 ) $ — $ (7,033 ) $ 65,262 $ (189 ) $ 65,073 |
Shareholders' (Deficit) Equit_2
Shareholders' (Deficit) Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of changes in stockholders' equity | The following table displays a reconciliation of our beginning and ending balances in Total shareholders' equity (deficit) for the nine months ended September 30, 2018 (in thousands): Total Shareholders' Equity (Deficit) Shareholders' equity at January 1, 2018, prior to the adoption of ASC 606 $ 484,880 Effect of adopting ASC 606 (1) 3,076 Shareholders' equity at January 1, 2018 $ 487,956 Net loss (739,561 ) Other comprehensive loss (7,033 ) Compensation related to share-based awards 43,722 Tax withholding for restricted shares (5,082 ) Exercise of options 473 Other 66 Shareholders' deficit at September 30, 2018 $ (219,459 ) __________ (1) Refer to Note 2. Summary of Significant Accounting Policies for further description of ASC 606. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Component of Operating Income [Abstract] | |
Schedule of components of other income, net | The components of Other income, net for the three and nine months ended September 30, 2018 and 2017 are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net gain on sale of business and other assets $ (2,866 ) $ (2,763 ) $ (29,859 ) $ (5,074 ) Foreign currency loss (gain), net 1,354 2,549 (734 ) (4,305 ) Net loss (gain) from our investments in the equity of other companies 842 (1,075 ) 3,163 (1,163 ) Other miscellaneous, net (837 ) (808 ) (5,786 ) (301 ) Other income, net $ (1,507 ) $ (2,097 ) $ (33,216 ) $ (10,843 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax | The following table displays our Loss from continuing operations before income tax , Income tax expense (benefit) and Effective tax rate for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Loss from continuing operations before income tax $ (143,068 ) $ (127,796 ) $ (671,559 ) $ (1,058,647 ) Income tax expense (benefit) $ 3,003 $ (28,109 ) $ 24,729 $ (97,517 ) Effective tax rate (2.1 )% 22.0 % (3.7 )% 9.2 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerator and denominator of basic and diluted net loss per share | The following is a reconciliation of the numerator and denominator of basic and diluted net loss per share for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Loss from continuing operations $ (146,071 ) $ (99,687 ) $ (696,288 ) $ (961,130 ) (Loss) income from discontinued operations, net of tax (27,134 ) 3,017 (43,273 ) (705,886 ) Net loss $ (173,205 ) $ (96,670 ) $ (739,561 ) $ (1,667,016 ) Denominator: For basic per share data—weighted average shares 224,132 223,299 223,829 223,157 Dilutive effect of ordinary share equivalents — — — — For diluted per share data—weighted average shares 224,132 223,299 223,829 223,157 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Effect of Adoption of ASU 2016-18 (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by operating activities | $ 196,992 | $ 422,162 |
Net cash (used in) provided by investing activities | (13,682) | 8,964 |
Net cash used in financing activities | (62,808) | (135,353) |
Effect of foreign exchange rate | (608) | 3,983 |
Movement in cash held for sale | 0 | (1,450) |
NET INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS | 119,894 | 298,306 |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,311,014 | 805,180 |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD | $ 1,430,908 | 1,103,486 |
Prior to Adoption | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by operating activities | 424,062 | |
Net cash (used in) provided by investing activities | (69,802) | |
Net cash used in financing activities | (135,353) | |
Effect of foreign exchange rate | 3,686 | |
Movement in cash held for sale | (1,450) | |
NET INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS | 221,143 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD | 517,250 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD | 738,393 | |
Accounting Standards Update 2016-18 | Impact of Adoption | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by operating activities | (1,900) | |
Net cash (used in) provided by investing activities | 78,766 | |
Net cash used in financing activities | 0 | |
Effect of foreign exchange rate | 297 | |
Movement in cash held for sale | 0 | |
NET INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS | 77,163 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD | 287,930 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD | $ 365,093 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Impact of ASC 606 (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Discount on brand-name drugs | 50.00% | ||||
Decrease to accumulated deficit | $ (3,076) | ||||
Statement of Operations: | |||||
TOTAL REVENUES | $ 745,466 | $ 786,887 | $ 2,160,689 | $ 2,700,218 | |
Cost of revenues | 412,965 | 514,522 | 1,198,468 | 1,722,885 | |
OTHER EXPENSE (INCOME), NET | (1,507) | (2,097) | (33,216) | (10,843) | |
Loss from continuing operations | (146,071) | (99,687) | (696,288) | (961,130) | |
NET LOSS | $ (173,205) | $ (96,670) | $ (739,561) | $ (1,667,016) | |
NET (LOSS) INCOME PER SHARE—BASIC: | |||||
Continuing operations (in dollars per share) | $ (0.65) | $ (0.45) | $ (3.11) | $ (4.31) | |
Basic (in dollars per share) | (0.77) | (0.43) | (3.30) | (7.47) | |
Net loss per share—Diluted: | |||||
Continuing operations (in dollars per share) | (0.65) | (0.45) | (3.11) | (4.31) | |
Diluted (in dollars per share) | $ (0.77) | $ (0.43) | $ (3.30) | $ (7.47) | |
ASSETS | |||||
Inventories, net | $ 332,787 | $ 332,787 | 391,437 | ||
Prepaid expenses and other current assets | 50,697 | 50,697 | 43,098 | ||
OTHER ASSETS | 67,934 | 67,934 | 59,728 | ||
Liabilities: | |||||
Accounts payable and accrued expenses | 1,019,004 | 1,019,004 | 1,096,825 | ||
Shareholders' (deficit) equity: | |||||
Accumulated deficit | (8,833,024) | (8,833,024) | (8,096,539) | ||
Amounts assuming continued application of ASC 605 | |||||
Statement of Operations: | |||||
TOTAL REVENUES | 747,571 | 2,160,132 | |||
Cost of revenues | 414,430 | 1,199,042 | |||
OTHER EXPENSE (INCOME), NET | (1,507) | (32,216) | |||
Loss from continuing operations | (145,431) | (698,419) | |||
NET LOSS | $ (172,565) | $ (741,692) | |||
NET (LOSS) INCOME PER SHARE—BASIC: | |||||
Continuing operations (in dollars per share) | $ (0.65) | $ (3.12) | |||
Basic (in dollars per share) | (0.77) | (3.31) | |||
Net loss per share—Diluted: | |||||
Continuing operations (in dollars per share) | (0.65) | (3.12) | |||
Diluted (in dollars per share) | $ (0.77) | $ (3.31) | |||
ASSETS | |||||
Inventories, net | $ 341,189 | $ 341,189 | |||
Prepaid expenses and other current assets | 40,368 | 40,368 | |||
OTHER ASSETS | 64,972 | 64,972 | |||
Liabilities: | |||||
Accounts payable and accrued expenses | 1,019,322 | 1,019,322 | |||
Shareholders' (deficit) equity: | |||||
Accumulated deficit | (8,838,231) | (8,838,231) | |||
Effect of adoption of ASC 606 | ASC 606 | |||||
Statement of Operations: | |||||
TOTAL REVENUES | (2,105) | 557 | |||
Cost of revenues | (1,465) | (574) | |||
OTHER EXPENSE (INCOME), NET | 0 | (1,000) | |||
Loss from continuing operations | (640) | 2,131 | |||
NET LOSS | $ (640) | $ 2,131 | |||
NET (LOSS) INCOME PER SHARE—BASIC: | |||||
Continuing operations (in dollars per share) | $ 0 | $ 0.01 | |||
Basic (in dollars per share) | 0 | 0.01 | |||
Net loss per share—Diluted: | |||||
Continuing operations (in dollars per share) | 0 | 0.01 | |||
Diluted (in dollars per share) | $ 0 | $ 0.01 | |||
ASSETS | |||||
Inventories, net | $ (8,402) | $ (8,402) | |||
Prepaid expenses and other current assets | 10,329 | 10,329 | |||
OTHER ASSETS | 2,962 | 2,962 | |||
Liabilities: | |||||
Accounts payable and accrued expenses | (318) | (318) | |||
Shareholders' (deficit) equity: | |||||
Accumulated deficit | $ 5,207 | $ 5,207 | |||
Accumulated Deficit | ASC 606 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Decrease to accumulated deficit | $ 3,100 |
Discontinued Operations and D_3
Discontinued Operations and Divestitures - Astora (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations, net of tax | $ (27,134,000) | $ 3,017,000 | $ (43,273,000) | $ (705,886,000) |
Discontinued Operations, Disposed of by Sale | Astora | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Litigation-related and other contingencies, net | 19,000,000 | 0 | 19,000,000 | 775,684,000 |
Loss from discontinued operations before income taxes | (27,134,000) | (8,957,000) | (43,273,000) | (813,442,000) |
Income tax benefit | 0 | (11,974,000) | 0 | (107,556,000) |
Income (loss) from discontinued operations, net of tax | $ (27,134,000) | $ 3,017,000 | (43,273,000) | (705,886,000) |
Cash used in discontinued investing activities Operations | 0 | 0 | ||
Depreciation and amortization | $ 0 | $ 0 |
Discontinued Operations and D_4
Discontinued Operations and Divestitures - Lithia (Narrative) (Details) - USD ($) | Jul. 03, 2017 | Dec. 31, 2017 | Oct. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of business, net | $ 43,753,000 | $ 96,066,000 | |||
Litha Healthcare Group Limited | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of business, net | $ 94,200,000 | ||||
Consideration receivable | $ 4,400,000 | ||||
Gain on sale of business | $ 0 | $ 10,100,000 |
Discontinued Operations and D_5
Discontinued Operations and Divestitures - Somar (Narrative) (Details) - USD ($) $ in Thousands | Oct. 25, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net gain on sale of business and other assets | $ (2,866) | $ (2,763) | $ (29,859) | $ (5,074) | |
Somar | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Aggregate purchase price | $ 124,000 | ||||
Net gain on sale of business and other assets | $ 1,300 |
Restructuring - 2017 Restructur
Restructuring - 2017 Restructuring Initiatives (Narrative) (Details) | Jan. 26, 2017position | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Other restructuring charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 1,700,000 | $ 1,100,000 | $ 11,400,000 | $ 18,500,000 | |
January 2017 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of positions to be eliminated | position | 90 | ||||
Restructuring charges | 94,200,000 | 203,700,000 | |||
Restructuring reserve correcting adjustment | 14,200,000 | ||||
January 2017 Restructuring | Corporate unallocated costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 4,900,000 | ||||
January 2017 Restructuring | U.S. Branded - Specialty & Established Pharmaceuticals | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 6,900,000 | ||||
January 2017 Restructuring | U.S. Generic Pharmaceuticals | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 3,300,000 | ||||
January 2017 Restructuring | Employee Separation, Retention, and Other Benefit Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0 | ||||
Expected restructuring costs remaining | 0 | 0 | |||
January 2017 Restructuring | Employee Separation, Retention, and Other Benefit Related Costs | U.S. Branded - Specialty & Established Pharmaceuticals | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 0 | 15,100,000 | |||
January 2017 Restructuring | Other restructuring charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 12,700,000 | ||||
January 2017 Restructuring | Inventory Reserve | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 7,900,000 | ||||
2017 US Generic Pharmaceuticals Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 19,120,000 | ||||
2017 US Generic Pharmaceuticals Restructuring | U.S. Generic Pharmaceuticals | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 4,800,000 | 59,600,000 | |||
2017 US Generic Pharmaceuticals Restructuring | Employee Separation, Retention, and Other Benefit Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 2,100,000 | 19,500,000 | 9,800,000 | 19,500,000 | |
2017 US Generic Pharmaceuticals Restructuring | Property, Plant and Equipment Impairment Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 14,200,000 | 103,700,000 | |||
2017 US Generic Pharmaceuticals Restructuring | Accelerated Depreciation | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 59,800,000 | 35,200,000 | $ 59,800,000 | ||
2017 US Generic Pharmaceuticals Restructuring | Asset Impairment Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 2,600,000 | ||||
2017 US Generic Pharmaceuticals Restructuring | Other restructuring charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 9,341,000 | ||||
Restructuring charges | 2,700,000 | $ 600,000 | 12,000,000 | ||
January 2018 Restructuring Initiative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 23,792,000 | ||||
January 2018 Restructuring Initiative | Corporate unallocated costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 5,200,000 | ||||
January 2018 Restructuring Initiative | U.S. Generic Pharmaceuticals | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 23,800,000 | ||||
January 2018 Restructuring Initiative | U.S. Generic Pharmaceuticals | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 10,800,000 | ||||
January 2018 Restructuring Initiative | Employee Separation, Retention, and Other Benefit Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 22,100,000 | ||||
Expected restructuring costs remaining | $ 0 | 0 | |||
January 2018 Restructuring Initiative | Other restructuring charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 1,705,000 | ||||
Restructuring charges | $ 1,700,000 |
Restructuring - January 2018 Re
Restructuring - January 2018 Restructuring Initiative (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
January 2018 Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 23,792,000 | |||
Employee Separation, Retention, and Other Benefit Related Costs | January 2018 Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 22,100,000 | |||
Expected restructuring costs remaining | $ 0 | 0 | ||
Other restructuring charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 1,700,000 | $ 1,100,000 | 11,400,000 | $ 18,500,000 |
Other restructuring charges | January 2018 Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 1,705,000 | |||
Restructuring charges | 1,700,000 | |||
U.S. Generic Pharmaceuticals | January 2018 Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 23,800,000 | |||
Corporate unallocated costs | January 2018 Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 5,200,000 | |||
Operating Segments | U.S. Generic Pharmaceuticals | January 2018 Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 10,800,000 | |||
Operating Segments | U.S. Branded - Sterile Injectables | January 2018 Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 4,000,000 | |||
Operating Segments | International Pharmaceuticals | January 2018 Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 3,100,000 | |||
Operating Segments | U.S. Branded - Specialty & Established Pharmaceuticals | January 2018 Restructuring Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 700,000 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Restructuring Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Expenses | $ 1,700 | $ 1,100 | $ 11,400 | $ 18,500 |
2017 US Generic Pharmaceuticals Restructuring | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning liability balance | 24,585 | |||
Expenses | 19,120 | |||
Cash distributions | (33,469) | |||
Ending liability balance | 10,236 | 10,236 | ||
2017 US Generic Pharmaceuticals Restructuring | Employee separation, retention and other benefit-related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning liability balance | 22,975 | |||
Expenses | 9,779 | |||
Cash distributions | (22,518) | |||
Ending liability balance | 10,236 | 10,236 | ||
2017 US Generic Pharmaceuticals Restructuring | Other Restructuring Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning liability balance | 1,610 | |||
Expenses | 9,341 | |||
Cash distributions | (10,951) | |||
Ending liability balance | 0 | 0 | ||
January 2018 Restructuring Initiative | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning liability balance | 650 | |||
Expenses | 23,792 | |||
Cash distributions | (20,388) | |||
Ending liability balance | 4,054 | 4,054 | ||
January 2018 Restructuring Initiative | Employee separation, retention and other benefit-related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning liability balance | 0 | |||
Expenses | 22,087 | |||
Cash distributions | (18,439) | |||
Ending liability balance | 3,648 | 3,648 | ||
January 2018 Restructuring Initiative | Other Restructuring Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning liability balance | 650 | |||
Expenses | 1,705 | |||
Cash distributions | (1,949) | |||
Ending liability balance | $ 406 | $ 406 |
Acquisitions (Other Acquisition
Acquisitions (Other Acquisition) (Narrative) (Details) - Forecast - Somerset $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Percentage of voting interests acquired | 100.00% |
Aggregate consideration transferred | $ 160 |
Debt to be assumed | $ 30 |
Segment Results - Schedule Of R
Segment Results - Schedule Of Reportable Segments Information (Details) $ in Thousands | Dec. 31, 2017Reportable_Business_Segments | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Reportable_Business_Segments | Sep. 30, 2017USD ($) |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Reportable_Business_Segments | 3 | 4 | |||
Total net revenues from external customers | $ 745,466 | $ 786,887 | $ 2,160,689 | $ 2,700,218 | |
Total segment adjusted income from continuing operations before income tax | 351,152 | 377,955 | 1,068,267 | 1,260,201 | |
U.S. Branded - Specialty & Established Pharmaceuticals | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues from external customers | 220,100 | 233,803 | 632,972 | 729,150 | |
Total segment adjusted income from continuing operations before income tax | 84,891 | 123,754 | 262,454 | 380,841 | |
U.S. Branded - Sterile Injectables | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues from external customers | 237,150 | 201,905 | 670,847 | 554,365 | |
Total segment adjusted income from continuing operations before income tax | 170,329 | 150,531 | 513,082 | 417,060 | |
U.S. Generic Pharmaceuticals | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues from external customers | 257,969 | 294,749 | 748,445 | 1,227,584 | |
Total segment adjusted income from continuing operations before income tax | 82,555 | 86,236 | 247,137 | 415,172 | |
International Pharmaceuticals | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues from external customers | 30,247 | 56,430 | 108,425 | 189,119 | |
Total segment adjusted income from continuing operations before income tax | $ 13,377 | $ 17,434 | $ 45,594 | $ 47,128 |
Segment Results - Schedule Of_2
Segment Results - Schedule Of Reconciliations Of Consolidated Adjusted Income (Loss) Before Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total consolidated loss from continuing operations before income tax | $ (143,068) | $ (127,796) | $ (671,559) | $ (1,058,647) |
Interest expense, net | 131,847 | 127,521 | 385,896 | 361,267 |
Amortization of intangible assets | 161,300 | 161,400 | 471,662 | 615,500 |
Inventory step-up | 261 | 281 | ||
Asset impairment charges | 142,217 | 94,924 | 613,400 | 1,023,930 |
Acquisition-related costs | 1,288 | 16,641 | 13,284 | 31,711 |
Loss on extinguishment of debt | 0 | 0 | 0 | 51,734 |
Severance costs | 2,100 | 19,800 | 32,700 | 41,300 |
Accelerated depreciation | 59,800 | 35,200 | 60,200 | |
Change in fair value of contingent consideration | 800 | 15,400 | 11,731 | 23,574 |
Inventory Write-Offs | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring expenses | 200 | 2,800 | 7,900 | |
Other restructuring charges | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring expenses | 1,700 | 1,100 | 11,400 | 18,500 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense, net | 131,847 | 127,521 | 385,896 | 361,267 |
Corporate unallocated costs | 49,187 | 33,035 | 144,693 | 114,655 |
Amortization of intangible assets | 161,275 | 161,413 | 471,662 | 615,490 |
Inventory step-up | 71 | 66 | 261 | 281 |
Upfront and milestone payments to partners | 4,731 | 775 | 43,027 | 6,952 |
Separation benefits and other cost reduction initiatives | 4,001 | 80,693 | 82,141 | 127,977 |
Certain litigation-related and other contingencies, net | (1,750) | (12,352) | 15,370 | (14,016) |
Asset impairment charges | 142,217 | 94,924 | 613,400 | 1,023,930 |
Acquisition-related costs | 1,288 | 16,641 | 13,284 | 31,711 |
Loss on extinguishment of debt | 0 | 0 | 0 | 51,734 |
Foreign currency impact related to the remeasurement of intercompany debt instruments | 1,528 | 3,005 | (1,560) | (2,922) |
Other, net | (175) | 30 | (28,348) | 1,789 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated loss from continuing operations before income tax | $ 351,152 | $ 377,955 | $ 1,068,267 | $ 1,260,201 |
Segment Results - Schedule of D
Segment Results - Schedule of Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | $ 745,466 | $ 786,887 | $ 2,160,689 | $ 2,700,218 |
Product line revenue reporting threshold | 25,000 | 25,000 | ||
U.S. Branded - Specialty & Established Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 220,100 | 233,803 | 632,972 | 729,150 |
U.S. Branded - Sterile Injectables | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 237,150 | 201,905 | 670,847 | 554,365 |
U.S. Generic Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 257,969 | 294,749 | 748,445 | 1,227,584 |
International Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | $ 30,247 | $ 56,430 | $ 108,425 | $ 189,119 |
Concentration risk, percentage | 4.00% | 7.00% | 5.00% | 7.00% |
XIAFLEX® | U.S. Branded - Specialty & Established Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | $ 64,214 | $ 52,511 | $ 184,855 | $ 152,113 |
SUPPRELIN® LA | U.S. Branded - Specialty & Established Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 20,408 | 20,638 | 60,948 | 63,468 |
Other Specialty | U.S. Branded - Specialty & Established Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 43,576 | 40,634 | 114,202 | 113,407 |
Total Specialty Products | U.S. Branded - Specialty & Established Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 128,198 | 113,783 | 360,005 | 328,988 |
PERCOCET® | U.S. Branded - Specialty & Established Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 30,730 | 31,349 | 93,539 | 93,183 |
VOLTAREN® Gel | U.S. Branded - Specialty & Established Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 15,057 | 19,102 | 44,185 | 53,646 |
OPANA® ER | U.S. Branded - Specialty & Established Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 0 | 14,756 | 0 | 82,056 |
Other Established | U.S. Branded - Specialty & Established Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 46,115 | 54,813 | 135,243 | 171,277 |
Total Established Products | U.S. Branded - Specialty & Established Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 91,902 | 120,020 | 272,967 | 400,162 |
Vasostrict® | U.S. Branded - Sterile Injectables | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 112,333 | 105,741 | 332,387 | 300,649 |
ADRENALIN® | U.S. Branded - Sterile Injectables | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 35,460 | 25,335 | 101,858 | 50,464 |
Ertapenem For Injection | U.S. Branded - Sterile Injectables | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | 25,798 | 0 | 25,798 | 0 |
Other Sterile Injectables | U.S. Branded - Sterile Injectables | ||||
Disaggregation of Revenue [Line Items] | ||||
TOTAL REVENUES | $ 63,559 | $ 70,829 | $ 210,804 | $ 203,252 |
Product Concentration Risk | U.S. Generic Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 5.00% | |||
Product Concentration Risk | Ezetimibe and Quetiapine ER Tablets | U.S. Generic Pharmaceuticals | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 9.00% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Restricted cash and cash equivalents | $ 312,000 | $ 312,000 | $ 324,400 | ||
Restricted cash and cash equivalents classified as current assets | 289,667 | 289,667 | 320,453 | ||
Goodwill impairment charges | 0 | $ 0 | $ 391,000 | $ 288,745 | |
Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Discount rate range (percent) | 9.50% | ||||
Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Discount rate range (percent) | 22.00% | ||||
Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Discount rate range (percent) | 14.10% | ||||
Vaginal Mesh Cases | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Settlement funds | 283,752 | $ 283,752 | 313,814 | ||
Money market funds | Restricted cash and cash equivalents | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Settlement funds | $ 57,000 | $ 57,000 | $ 35,600 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets And Liabilities Measured At Fair Value On Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Fair value of financial assets measured on recurring basis | $ 693,272 | $ 744,697 |
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 128,470 | 190,442 |
Acquisition-related contingent consideration—short-term | ||
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 42,261 | 70,543 |
Acquisition-related contingent consideration—long-term | ||
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 86,209 | 119,899 |
Money market funds | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 691,579 | 439,831 |
Time deposits | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 303,410 | |
Equity securities | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 1,693 | 1,456 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 693,272 | 441,287 |
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Acquisition-related contingent consideration—short-term | ||
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Acquisition-related contingent consideration—long-term | ||
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 691,579 | 439,831 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Time deposits | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 1,693 | 1,456 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 0 | 303,410 |
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Acquisition-related contingent consideration—short-term | ||
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Acquisition-related contingent consideration—long-term | ||
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Time deposits | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 303,410 | |
Significant Other Observable Inputs (Level 2) | Equity securities | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 0 | 0 |
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 128,470 | 190,442 |
Significant Unobservable Inputs (Level 3) | Acquisition-related contingent consideration—short-term | ||
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 42,261 | 70,543 |
Significant Unobservable Inputs (Level 3) | Acquisition-related contingent consideration—long-term | ||
Liabilities: | ||
Fair value of financial liabilities measured on recurring basis | 86,209 | 119,899 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Time deposits | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | 0 | |
Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets: | ||
Fair value of financial assets measured on recurring basis | $ 0 | $ 0 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Liabilities Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs (Details) - Acquisition-related contingent consideration - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of period | $ 152,098 | $ 210,460 | $ 190,442 | $ 262,113 |
Amounts settled | (24,564) | (31,617) | (73,298) | (91,927) |
Changes in fair value recorded in earnings | 769 | 15,440 | 11,731 | 23,574 |
Effect of currency translation | 167 | 504 | (405) | 1,027 |
Fair Value Adjustments and Accretion | 11,731 | |||
Payments and Other | (73,703) | |||
End of period | 128,470 | $ 194,787 | 128,470 | $ 194,787 |
Auxilium acquisition | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of period | 13,061 | |||
Fair Value Adjustments and Accretion | (263) | |||
Payments and Other | (1,844) | |||
End of period | 10,954 | 10,954 | ||
Lehigh Valley Technologies, Inc. acquisitions | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of period | 63,001 | |||
Fair Value Adjustments and Accretion | 11,169 | |||
Payments and Other | (39,469) | |||
End of period | 34,701 | 34,701 | ||
VOLTAREN® Gel acquisition | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of period | 98,124 | |||
Fair Value Adjustments and Accretion | 3,839 | |||
Payments and Other | (30,923) | |||
End of period | 71,040 | 71,040 | ||
Other | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of period | 16,256 | |||
Fair Value Adjustments and Accretion | (3,014) | |||
Payments and Other | (1,467) | |||
End of period | $ 11,775 | $ 11,775 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements (Schedule of Financial Assets Measured At Fair Value On A Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Assets: | ||||
Total expense for the year | $ (142,217) | $ (94,924) | $ (613,400) | $ (1,023,930) |
2017 US Generic Pharmaceuticals Restructuring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restructuring expenses | 19,120 | |||
2017 US Generic Pharmaceuticals Restructuring | Asset impairment charges | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restructuring expenses | 2,600 | |||
Fair value, measurements, nonrecurring | ||||
Assets: | ||||
Total expense for the year | (222,400) | |||
Fair value, measurements, nonrecurring | Intangible assets | ||||
Assets: | ||||
Total expense for the year | (217,576) | |||
Fair value, measurements, nonrecurring | Certain property, plant and equipment | ||||
Assets: | ||||
Total expense for the year | (4,824) | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, nonrecurring | ||||
Assets: | ||||
Intangible assets, excluding goodwill | 0 | 0 | ||
Certain property, plant and equipment | 0 | 0 | ||
Total | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | Fair value, measurements, nonrecurring | ||||
Assets: | ||||
Intangible assets, excluding goodwill | 0 | 0 | ||
Certain property, plant and equipment | 0 | 0 | ||
Total | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Fair value, measurements, nonrecurring | ||||
Assets: | ||||
Intangible assets, excluding goodwill | 239,857 | 239,857 | ||
Certain property, plant and equipment | 0 | 0 | ||
Total | $ 239,857 | $ 239,857 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 119,627 | $ 124,685 |
Work-in-process | 83,665 | 109,897 |
Finished goods | 129,495 | 156,855 |
Total | 332,787 | 391,437 |
Long-term inventory | 13,300 | 17,100 |
Inventories not yet available for sale | $ 13,600 | $ 5,900 |
Goodwill And Other Intangible_2
Goodwill And Other Intangibles - Schedule Of Changes In The Carrying Amount Of Goodwill (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | $ 4,450,082,000 | $ 4,450,082,000 | |||
Allocation to current segments | 0 | ||||
Effect of currency translation on gross balance | (2,414,000) | ||||
Goodwill impairment charges | $ 0 | $ 0 | (391,000,000) | $ (288,745,000) | |
Goodwill, ending balance | 4,056,668,000 | 4,056,668,000 | |||
U.S. Branded - Specialty & Established Pharmaceuticals | |||||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | 828,818,000 | 828,818,000 | |||
Allocation to current segments | 0 | ||||
Effect of currency translation on gross balance | 0 | ||||
Goodwill impairment charges | 0 | ||||
Goodwill, ending balance | 828,818,000 | 828,818,000 | |||
U.S. Branded - Sterile Injectables | |||||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | 0 | 0 | |||
Allocation to current segments | 2,731,193,000 | ||||
Effect of currency translation on gross balance | 0 | ||||
Goodwill impairment charges | 0 | 0 | |||
Goodwill, ending balance | 2,731,193,000 | 2,731,193,000 | |||
U.S. Generic Pharmaceuticals | |||||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | 3,531,301,000 | 3,531,301,000 | |||
Allocation to current segments | (2,731,193,000) | ||||
Effect of currency translation on gross balance | 0 | ||||
Goodwill impairment charges | (391,000,000) | (391,000,000) | |||
Goodwill, ending balance | 409,108,000 | 409,108,000 | |||
International Pharmaceuticals | |||||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | $ 89,963,000 | 89,963,000 | |||
Allocation to current segments | 0 | ||||
Effect of currency translation on gross balance | (2,414,000) | ||||
Goodwill impairment charges | 0 | ||||
Goodwill, ending balance | $ 87,549,000 | $ 87,549,000 |
Goodwill And Other Intangible_3
Goodwill And Other Intangibles - Accumulated Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Accumulated impairment losses | $ 4,040,568 | $ 3,661,904 |
U.S. Branded - Specialty & Established Pharmaceuticals | ||
Goodwill [Line Items] | ||
Accumulated impairment losses | 855,810 | 855,810 |
U.S. Branded - Sterile Injectables | ||
Goodwill [Line Items] | ||
Accumulated impairment losses | 0 | 0 |
U.S. Generic Pharmaceuticals | ||
Goodwill [Line Items] | ||
Accumulated impairment losses | 2,733,549 | 2,342,549 |
International Pharmaceuticals | ||
Goodwill [Line Items] | ||
Accumulated impairment losses | $ 451,209 | 463,545 |
Former U.S. Generic Pharmaceuticals | ||
Goodwill [Line Items] | ||
Accumulated impairment losses | $ 2,342,500 |
Goodwill And Other Intangible_4
Goodwill And Other Intangibles - Schedule Of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Indefinite-lived intangibles: | ||||||
Beginning Balance | $ 347,200 | |||||
Acquisitions | 0 | |||||
Impairments | (87,900) | |||||
Other | [1] | (165,400) | ||||
Effect of Currency Translation | 0 | |||||
Ending Balance | $ 93,900 | 93,900 | ||||
Finite-lived intangibles: | ||||||
Beginning Balance | 6,651,575 | |||||
Acquisitions | 0 | |||||
Impairments | (129,676) | |||||
Other | [1] | 154,753 | ||||
Effect of Currency Translation | (7,447) | |||||
Ending Balance | 6,669,205 | 6,669,205 | ||||
Total other intangibles | ||||||
Beginning balance | 6,998,775 | |||||
Acquisitions | 0 | |||||
Impairments | (140,609) | $ (78,300) | (217,576) | $ (674,177) | ||
Other | [1] | (10,647) | ||||
Effect of Currency Translation | (7,447) | |||||
Ending balance | 6,763,105 | 6,763,105 | ||||
Accumulated amortization: | ||||||
Beginning Balance | (2,681,091) | |||||
Amortization | (161,300) | (161,400) | (471,662) | $ (615,500) | ||
Impairments | 0 | |||||
Other | [1] | 10,647 | ||||
Effect of Currency Translation | 3,217 | |||||
Ending Balance | (3,138,889) | (3,138,889) | ||||
Net other intangibles | 3,624,216 | 3,624,216 | $ 4,317,684 | |||
Licenses | ||||||
Finite-lived intangibles: | ||||||
Beginning Balance | 457,402 | |||||
Acquisitions | 0 | |||||
Impairments | 0 | |||||
Other | [1] | 0 | ||||
Effect of Currency Translation | 0 | |||||
Ending Balance | 457,402 | 457,402 | ||||
Accumulated amortization: | ||||||
Beginning Balance | (370,221) | |||||
Amortization | (21,262) | |||||
Impairments | 0 | |||||
Other | [1] | 0 | ||||
Effect of Currency Translation | 0 | |||||
Ending Balance | (391,483) | (391,483) | ||||
Tradenames | ||||||
Finite-lived intangibles: | ||||||
Beginning Balance | 6,409 | |||||
Acquisitions | 0 | |||||
Impairments | 0 | |||||
Other | [1] | 0 | ||||
Effect of Currency Translation | 0 | |||||
Ending Balance | 6,409 | 6,409 | ||||
Accumulated amortization: | ||||||
Beginning Balance | (6,409) | |||||
Amortization | 0 | |||||
Impairments | 0 | |||||
Other | [1] | 0 | ||||
Effect of Currency Translation | 0 | |||||
Ending Balance | (6,409) | (6,409) | ||||
Developed technology | ||||||
Finite-lived intangibles: | ||||||
Beginning Balance | 6,187,764 | |||||
Acquisitions | 0 | |||||
Impairments | $ (20,600) | (129,676) | ||||
Other | [1] | 154,753 | ||||
Effect of Currency Translation | (7,447) | |||||
Ending Balance | 6,205,394 | 6,205,394 | ||||
Accumulated amortization: | ||||||
Beginning Balance | (2,304,461) | |||||
Amortization | (450,400) | |||||
Impairments | 0 | |||||
Other | [1] | 10,647 | ||||
Effect of Currency Translation | 3,217 | |||||
Ending Balance | (2,740,997) | (2,740,997) | ||||
In-process research and development | ||||||
Indefinite-lived intangibles: | ||||||
Beginning Balance | 347,200 | |||||
Acquisitions | 0 | |||||
Impairments | (87,900) | |||||
Other | [1] | (165,400) | ||||
Effect of Currency Translation | 0 | |||||
Ending Balance | $ 93,900 | $ 93,900 | ||||
Weighted Average | ||||||
Accumulated amortization: | ||||||
Intangible life (years) | 11 years | |||||
Weighted Average | Licenses | ||||||
Accumulated amortization: | ||||||
Intangible life (years) | 12 years | |||||
Weighted Average | Developed technology | ||||||
Accumulated amortization: | ||||||
Intangible life (years) | 11 years | |||||
[1] | Other adjustments relate to reclassification adjustments of $165.4 million for certain developed technology intangible assets, previously classified as in-process research and development, that were placed in service during the nine months ended September 30, 2018 and the removal of certain fully amortized intangible assets. |
Goodwill And Other Intangible_5
Goodwill And Other Intangibles - Other Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 161,300 | $ 161,400 | $ 471,662 | $ 615,500 |
Goodwill And Other Intangible_6
Goodwill And Other Intangibles - Schedule Of Estimated Amortization Of Intangibles (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 622,384 |
2,019 | 552,516 |
2,020 | 481,300 |
2,021 | 447,157 |
2,022 | $ 420,786 |
Goodwill And Other Intangible_7
Goodwill And Other Intangibles - Schedule of Intangible Asset Impairment Charges Including Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment charges | $ 0 | $ 0 | $ 391,000 | $ 288,745 |
Impairment of intangible assets | $ 140,609 | $ 78,300 | $ 217,576 | $ 674,177 |
Goodwill And Other Intangible_8
Goodwill And Other Intangibles - Impairments Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Line Items] | ||||||
Impairment of intangible assets | $ 140,609,000 | $ 78,300,000 | $ 217,576,000 | $ 674,177,000 | ||
Goodwill impairment charges (reduction) | 0 | $ 0 | 391,000,000 | 288,745,000 | ||
Non-cash intangible asset impairment charge | 129,676,000 | |||||
Serelaxin In-Process Research and Development Intangible Assets | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment charges (reduction) | $ 45,500,000 | |||||
Paladin Labs Inc. | ||||||
Goodwill [Line Items] | ||||||
Discount rate applied (percent) | 10.00% | |||||
Goodwill impairment charges (reduction) | $ 82,600,000 | |||||
Former U.S. Generic Pharmaceuticals | ||||||
Goodwill [Line Items] | ||||||
Discount rate applied (percent) | 9.50% | |||||
Goodwill impairment charges (reduction) | $ 0 | |||||
U.S. Branded - Sterile Injectables | ||||||
Goodwill [Line Items] | ||||||
Discount rate applied (percent) | 9.50% | |||||
Goodwill impairment charges (reduction) | $ 0 | 0 | ||||
U.S. Generic Pharmaceuticals | ||||||
Goodwill [Line Items] | ||||||
Discount rate applied (percent) | 9.50% | 9.00% | ||||
Goodwill impairment charges (reduction) | $ 391,000,000 | 391,000,000 | ||||
U.S. Branded - Specialty & Established Pharmaceuticals | ||||||
Goodwill [Line Items] | ||||||
Discount rate applied (percent) | 9.50% | |||||
In process research and development or developed technology | ||||||
Goodwill [Line Items] | ||||||
Impairment of intangible assets | $ 140,600,000 | $ 217,600,000 | 78,300,000 | $ 461,100,000 | ||
Developed technology | ||||||
Goodwill [Line Items] | ||||||
Non-cash intangible asset impairment charge | 20,600,000 | $ 129,676,000 | ||||
Developed technology | U.S. Generic Pharmaceuticals | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment charges (reduction) | 0 | |||||
Non-cash intangible asset impairment charge | 57,500,000 | |||||
Developed technology | U.S. Branded - Specialty & Established Pharmaceuticals | ||||||
Goodwill [Line Items] | ||||||
Non-cash intangible asset impairment charge | 180,400,000 | |||||
Somar | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Goodwill [Line Items] | ||||||
Impairment of intangible assets | 89,500,000 | |||||
Goodwill impairment charges (reduction) | $ 25,700,000 |
License And Collaboration Agr_2
License And Collaboration Agreements (Narrative) (Details) | 3 Months Ended |
Sep. 30, 2018product_candidates | |
License And Collaboration Agreements [Abstract] | |
Number of sterile injectable product candidates | 5 |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Jan. 01, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | ||
Contract assets, net | $ 13,291 | $ 11,287 |
Contract assets, net - $ change | $ 2,004 | |
Contract assets, net - % change | 18.00% | |
Contract liabilities, net | $ 19,635 | 20,954 |
Contract liabilities, net - $ change | $ (1,319) | |
Contract liabilities, net - % change | (6.00%) | |
Contract asset amounts classified as current | $ 10,300 | 8,200 |
Contract liability amounts classified as current | 1,700 | $ 1,900 |
Revenue recognized | (1,300) | |
Reduction in revenue relating to performance obligation satisfied in prior periods | $ 4,600 |
Accounts Payable And Accrued _3
Accounts Payable And Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Trade accounts payable | $ 106,321 | $ 85,348 |
Returns and allowances | 250,637 | 291,034 |
Rebates | 152,297 | 168,333 |
Chargebacks | 2,022 | 14,604 |
Accrued interest | 64,647 | 130,257 |
Accrued payroll and related benefits | 84,240 | 113,908 |
Accrued royalties and other distribution partner payables | 103,673 | 63,114 |
Acquisition-related contingent consideration—short-term | 42,261 | 70,543 |
Other | 212,906 | 159,684 |
Total | $ 1,019,004 | $ 1,096,825 |
Debt (Components Of Total Indeb
Debt (Components Of Total Indebtedness) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Principal Amount | $ 8,357,313 | $ 8,382,980 |
Carrying Amount | 8,262,762 | 8,276,237 |
Less current portion, net | 34,150 | 34,205 |
Principal amount of total long-term debt, less current portion, net | 8,323,163 | 8,348,775 |
Carrying amount of total long-term debt, less current portion, net | 8,228,612 | 8,242,032 |
Fair value of long term debt | $ 7,900,000 | $ 7,500,000 |
7.25% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Effective interest rate (as percent) | 7.91% | 7.91% |
Principal Amount | $ 400,000 | $ 400,000 |
Carrying Amount | $ 392,439 | $ 390,974 |
Interest rate (as percent) | 7.25% | |
5.75% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Effective interest rate (as percent) | 6.04% | 6.04% |
Principal Amount | $ 700,000 | $ 700,000 |
Carrying Amount | $ 694,053 | $ 692,855 |
Interest rate (as percent) | 5.75% | |
5.375% Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Effective interest rate (as percent) | 5.62% | 5.62% |
Principal Amount | $ 750,000 | $ 750,000 |
Carrying Amount | $ 743,083 | $ 742,048 |
Interest rate (as percent) | 5.375% | |
6.00% Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Effective interest rate (as percent) | 6.28% | 6.28% |
Principal Amount | $ 1,635,000 | $ 1,635,000 |
Carrying Amount | $ 1,615,955 | $ 1,613,446 |
Interest rate (as percent) | 6.00% | |
5.875% Senior Secured Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Effective interest rate (as percent) | 6.14% | 6.14% |
Principal Amount | $ 300,000 | $ 300,000 |
Carrying Amount | $ 295,922 | $ 295,513 |
Interest rate (as percent) | 5.875% | |
6.00% Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Effective interest rate (as percent) | 6.27% | 6.27% |
Principal Amount | $ 1,200,000 | $ 1,200,000 |
Carrying Amount | $ 1,182,859 | $ 1,181,243 |
Interest rate (as percent) | 6.00% | |
Term Loan B Facility Due 2024 | ||
Debt Instrument [Line Items] | ||
Effective interest rate (as percent) | 5.46% | 5.46% |
Principal Amount | $ 3,372,313 | $ 3,397,925 |
Carrying Amount | 3,338,451 | $ 3,360,103 |
Other debt | ||
Debt Instrument [Line Items] | ||
Effective interest rate (as percent) | 1.50% | |
Principal Amount | 0 | $ 55 |
Carrying Amount | $ 0 | $ 55 |
Debt (Credit Facility) (Narrati
Debt (Credit Facility) (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Fair value of long term debt | $ 7,900 | $ 7,500 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Credit facility, remaining borrowing capacity | $ 997.2 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||
Oct. 31, 2018 | Sep. 30, 2018USD ($)distributor | Aug. 31, 2018dproduct | Jun. 30, 2018producttheory | May 31, 2018 | Apr. 30, 2018case | Mar. 31, 2018ddefendant | Feb. 28, 2018defendantclaim | Jan. 31, 2018dproductemployee | Oct. 31, 2017patentproductcasedefendant | Aug. 31, 2017trancheproductdefendant | Dec. 31, 2016state_attorney_general | Sep. 30, 2013company | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($)case | Nov. 01, 2018caseclaim | Dec. 31, 2017USD ($) | Jul. 31, 2017state | Mar. 31, 2017state | |
Loss Contingencies [Line Items] | |||||||||||||||||||
Reserve for loss contingencies | $ 1,002,100 | $ 1,002,100 | $ 1,002,100 | ||||||||||||||||
Increase in legal reserves | 200,000 | ||||||||||||||||||
Current portion of legal settlement accrual | 966,633 | 966,633 | 966,633 | $ 1,087,793 | |||||||||||||||
Vaginal Mesh Cases | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Current portion of legal settlement accrual | 820,200 | 820,200 | 820,200 | ||||||||||||||||
Payments to plaintiffs and qualified settlement funds | 3,100,000 | ||||||||||||||||||
Settlement funds | 283,752 | 283,752 | 283,752 | $ 313,814 | |||||||||||||||
Testosterone Cases | Subsequent Event | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Pending claims, number | claim | 1,205 | ||||||||||||||||||
Unapproved Drug Litigation | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Number of additional defendants | company | 50 | ||||||||||||||||||
Number of claims consolidated | claim | 5 | ||||||||||||||||||
Opioid-Related Matters | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Number of claims set for trial | case | 3 | ||||||||||||||||||
Opioid-Related Matters | Subsequent Event | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Pending claims, number | case | 1,505 | ||||||||||||||||||
Number of cases filed by states | case | 11 | ||||||||||||||||||
Number of cases filed by hospitals, health systems, unions, welfare funds or other third-party | case | 112 | ||||||||||||||||||
Number of cases alleging personal injury and/or wrongful death | case | 48 | ||||||||||||||||||
Pricing Matters Cases | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Number of claims consolidated | case | 2 | ||||||||||||||||||
Number of cases filed by states | state | 4 | 40 | |||||||||||||||||
Number of products involved in claims | product | 18 | 15 | |||||||||||||||||
Number of state attorney generals | state_attorney_general | 20 | ||||||||||||||||||
Number of defendants | defendant | 14 | ||||||||||||||||||
Lidoderm cases | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Reserve for loss contingencies | 100,000 | 100,000 | 100,000 | ||||||||||||||||
AndroGel 1.62% | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Number of causation theories rejected | theory | 2 | ||||||||||||||||||
Number of causation theories | theory | 3 | ||||||||||||||||||
Bier v. Endo International plc, et al. | Current and Former Directors and Officers | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Number of additional defendants | defendant | 4 | ||||||||||||||||||
Number of defendants | defendant | 20 | ||||||||||||||||||
AMS | Vaginal Mesh Cases | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Product liability accrual, period expense | $ 845,600 | $ 845,600 | $ 845,600 | ||||||||||||||||
Loss contingency, claims settled, number | case | 71,000 | ||||||||||||||||||
Par Pharmaceutical, Inc. | Pricing Matters Cases | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Number of products involved in claims | product | 30 | 13 | 1 | ||||||||||||||||
Number of tranches for claims | tranche | 3 | ||||||||||||||||||
Number of products allegedly manufactured by PPI | product | 7 | ||||||||||||||||||
Par Pharmaceutical, Inc. | Pricing Matters Cases | First tranche | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Number of products involved in claims | product | 6 | ||||||||||||||||||
Par Pharmaceutical, Inc. | VASOSTRICT Related Matters | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Number of additional defendants | employee | 5 | ||||||||||||||||||
Number of patents allegedly infringed upon | patent | 5 | ||||||||||||||||||
Number of defendants filing motion to dismiss the breach of contract claim | defendant | 7 | ||||||||||||||||||
Number of defendants filing motion to dismiss for lack of personal injury jurisdiction | defendant | 4 | ||||||||||||||||||
Number of defendants filing motion to dismiss breach of contract claim | defendant | 1 | ||||||||||||||||||
Stay of litigation, number of days | d | 60 | ||||||||||||||||||
Loss Contingency, Extension of Temporary Stay, Number of Days | d | 180 | 180 | |||||||||||||||||
Lawsuit filing period | 45 days | ||||||||||||||||||
Stay of approval period, hatch-waxman act | 30 months | ||||||||||||||||||
Par Pharmaceutical, Inc. | VASOSTRICT Related Matters | Subsequent Event | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Lawsuit filing period | 45 days | ||||||||||||||||||
Stay of approval period, hatch-waxman act | 30 months | ||||||||||||||||||
Endo Pharmaceuticals Inc. and Par Pharmaceuticals Inc. | Pricing Matters Cases | |||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||
Number of products involved in claims | product | 16 | ||||||||||||||||||
Loss Contingency, Number of Distributors | distributor | 1 |
Commitments And Contingencies -
Commitments And Contingencies - Schedule of Loss Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Qualified Settlement Funds | |||
Cash contributions to Qualified Settlement Funds | $ 216,770 | $ 623,128 | |
Mesh Liability Accrual | |||
Ending balance | 1,002,100 | ||
Vaginal Mesh Cases | |||
Qualified Settlement Funds | |||
Beginning balance | 313,814 | ||
Cash contributions to Qualified Settlement Funds | 216,770 | ||
Cash distributions to settle disputes from Qualified Settlement Funds | (248,485) | ||
Other (1) | 1,653 | ||
Ending balance | 283,752 | ||
Mesh Liability Accrual | |||
Additional charges | 0 | ||
Cash distributions to settle disputes | 0 | ||
Vaginal Mesh Cases | Mesh Product Liability Accrual | |||
Qualified Settlement Funds | |||
Cash contributions to Qualified Settlement Funds | 0 | ||
Other (1) | 5,038 | ||
Mesh Liability Accrual | |||
Beginning balance | 1,087,172 | ||
Additional charges | 19,000 | ||
Cash distributions to settle disputes from Qualified Settlement Funds | (248,485) | ||
Cash distributions to settle disputes | (17,114) | ||
Ending balance | $ 845,611 | ||
Loss Contingency Accrual, Accrued Interest | $ 4,400 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Schedule Of Tax Effects Allocated To Each Component Of Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before- Tax Amount | $ 4,735 | $ 39,561 | $ (7,033) | $ 65,262 |
Tax Benefit (Expense) | 0 | (107) | 0 | (189) |
OTHER COMPREHENSIVE INCOME (LOSS) | 4,735 | 39,454 | (7,033) | 65,073 |
Net unrealized gain (loss) on securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before Reclassification, Before Tax Amount | 295 | 522 | ||
Before Reclassification, Tax Benefit (Expense) | (107) | (189) | ||
Before Reclassification, Net-of-Tax Amount | 0 | 188 | 0 | 333 |
Reclassification, Before Tax Amount | 0 | 0 | 0 | 0 |
Reclassification, Tax Benefit (Expense) | 0 | 0 | 0 | 0 |
Reclassification, Net-of-Tax Amount | 0 | 0 | 0 | 0 |
Before- Tax Amount | 295 | 522 | ||
Tax Benefit (Expense) | (107) | (189) | ||
OTHER COMPREHENSIVE INCOME (LOSS) | 0 | 188 | 0 | 333 |
Net unrealized gain (loss) on foreign currency | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before Reclassification, Before Tax Amount | 4,735 | 9,941 | (7,033) | 35,415 |
Before Reclassification, Tax Benefit (Expense) | 0 | 0 | 0 | 0 |
Before Reclassification, Net-of-Tax Amount | 4,735 | 9,941 | (7,033) | 35,415 |
Reclassification, Before Tax Amount | 0 | 29,325 | 0 | 29,325 |
Reclassification, Tax Benefit (Expense) | 0 | 0 | 0 | 0 |
Reclassification, Net-of-Tax Amount | 0 | 29,325 | 0 | 29,325 |
Before- Tax Amount | 4,735 | 39,266 | (7,033) | 64,740 |
Tax Benefit (Expense) | 0 | 0 | 0 | 0 |
OTHER COMPREHENSIVE INCOME (LOSS) | $ 4,735 | $ 39,266 | $ (7,033) | $ 64,740 |
Shareholders' (Deficit) Equit_3
Shareholders' (Deficit) Equity - Schedule of Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Shareholders' equity, beginning balance | $ 484,880 | ||||
Effect of adopting ASC 606 | $ 3,076 | ||||
Shareholders' equity at January 1, 2018 | $ 487,956 | ||||
Net loss | (739,561) | ||||
Other comprehensive loss | $ 4,735 | $ 39,454 | (7,033) | $ 65,073 | |
Compensation related to share-based awards | 43,722 | ||||
Exercise of options | 473 | ||||
Tax withholding for restricted shares | (5,082) | ||||
Other | 66 | ||||
Shareholders' equity, ending balance | $ (219,459) | $ (219,459) |
Shareholders' (Deficit) Equit_4
Shareholders' (Deficit) Equity (Details) - USD ($) $ in Thousands, $ / shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional ordinary shares authorized for issuance (in shares) | 5,000,000 | |||
Share-based compensation | $ 13,700 | $ 13,200 | $ 43,722 | $ 40,252 |
Share-based compensation awards | $ 45,600 | $ 45,600 | ||
Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options issued (in shares) | 1,000,000 | |||
Nonvested Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service period | 2 years | |||
Nonvested Restricted Stock | Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target amount of share-based compensation awards (in shares) | 100,000 | |||
Performance Stock Units | Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target amount of share-based compensation awards (in shares) | 500,000 | |||
Award fair value (in dollars per share) | $ 0 | $ 0 | ||
Long-term Cash Incentive | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Unvested awards outstanding | $ 3,000 | $ 3,000 | ||
Service period | 2 years 3 months 18 days | |||
Corresponding liability | $ 14,900 | $ 14,900 | ||
Nonvested Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service period | 1 year 9 months 18 days |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Component of Operating Income [Abstract] | ||||
Net gain on sale of business and other assets | $ (2,866) | $ (2,763) | $ (29,859) | $ (5,074) |
Foreign currency loss (gain), net | 1,354 | 2,549 | (734) | (4,305) |
Net loss (gain) from our investments in the equity of other companies | 842 | (1,075) | 3,163 | (1,163) |
Other miscellaneous, net | (837) | (808) | (5,786) | (301) |
Other income, net | $ (1,507) | $ (2,097) | $ (33,216) | $ (10,843) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Total consolidated loss from continuing operations before income tax | $ (143,068) | $ (127,796) | $ (671,559) | $ (1,058,647) | |
Income tax expense (benefit) | $ 3,003 | $ (28,109) | $ 24,729 | $ (97,517) | |
Effective Income Tax Rate Reconciliation, Percent | (2.10%) | 22.00% | (3.70%) | 9.20% | |
Provisional tax benefit related to Tax Cuts And Jobs Act Of 2017 | $ 36,200 |
Net Loss Per Share (Reconciliat
Net Loss Per Share (Reconciliation Of The Numerator And Denominator Of Basic And Diluted Net Loss Per Share) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Loss from continuing operations | $ (146,071) | $ (99,687) | $ (696,288) | $ (961,130) |
(Loss) income from discontinued operations, net of tax | (27,134) | 3,017 | (43,273) | (705,886) |
NET LOSS | $ (173,205) | $ (96,670) | $ (739,561) | $ (1,667,016) |
Denominator: | ||||
For basic per share data—weighted average shares (shares) | 224,132 | 223,299 | 223,829 | 223,157 |
Dilutive effect of ordinary share equivalents (shares) | 0 | 0 | 0 | 0 |
For diluted per share data—weighted average shares (shares) | 224,132 | 223,299 | 223,829 | 223,157 |