QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Title of each class) | (Trading Symbol(s)) | (Name of each exchange on which registered) | ||||||
Large Accelerated Filer | ☐ | ☒ | Emerging Growth Company | ||||||||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company |
Page | ||||||||
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 (Successor), for the period from June 17, 2022 through July 1, 2022 (Successor), the period from April 2, 2022 through June 16, 2022 (Predecessor), and the period from January 1, 2022 through June 16, 2022 (Predecessor). | ||||||||
Condensed Consolidated Statements of Comprehensive Operations for the three and six months ended June 30, 2023 (Successor), for the period from June 17, 2022 through July 1, 2022 (Successor), the period from April 2, 2022 through June 16, 2022 (Predecessor), and the period from January 1, 2022 through June 16, 2022 (Predecessor). | ||||||||
Condensed Consolidated Balance Sheets as of June 30, 2023 (Successor) and December 30, 2022 (Successor). | ||||||||
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 (Successor), for the period from June 17, 2022 through July 1, 2022 (Successor), and the period from January 1, 2022 through June 16, 2022 (Predecessor). | ||||||||
Condensed Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2023 (Successor), for the period from June 17, 2022 through July 1, 2022 (Successor), the period from April 2, 2022 through June 16, 2022 (Predecessor), and the period from January 1, 2022 through June 16, 2022 (Predecessor). | ||||||||
Item 1. | Financial Statements. |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Net sales | $ | $ | $ | |||||||||||||||||
Cost of sales | ||||||||||||||||||||
Gross profit (loss) | ( | |||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||||
Research and development expenses | ||||||||||||||||||||
Restructuring charges, net | ( | |||||||||||||||||||
Operating loss | ( | ( | ( | |||||||||||||||||
Interest expense | ( | ( | ( | |||||||||||||||||
Interest income | ||||||||||||||||||||
Other (expense) income, net | ( | ( | ||||||||||||||||||
Reorganization items, net | ( | ( | ( | |||||||||||||||||
Loss from continuing operations before income taxes | ( | ( | ( | |||||||||||||||||
Income tax expense (benefit) | ( | ( | ||||||||||||||||||
Loss from continuing operations | ( | ( | ( | |||||||||||||||||
Income from discontinued operations, net of income taxes | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Basic (loss) income per share (Note 5): | ||||||||||||||||||||
Loss from continuing operations | $ | ( | $ | ( | $ | ( | ||||||||||||||
Income from discontinued operations | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Basic weighted-average shares outstanding | ||||||||||||||||||||
Diluted (loss) income per share (Note 5): | ||||||||||||||||||||
Loss from continuing operations | $ | ( | $ | ( | $ | ( | ||||||||||||||
Income from discontinued operations | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Diluted weighted-average shares outstanding |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Net sales | $ | $ | $ | |||||||||||||||||
Cost of sales | ||||||||||||||||||||
Gross profit (loss) | ( | |||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||||
Research and development expenses | ||||||||||||||||||||
Restructuring charges, net | ||||||||||||||||||||
Operating loss | ( | ( | ( | |||||||||||||||||
Interest expense | ( | ( | ( | |||||||||||||||||
Interest income | ||||||||||||||||||||
Other (expense) income, net | ( | ( | ||||||||||||||||||
Reorganization items, net | ( | ( | ( | |||||||||||||||||
Loss from continuing operations before income taxes | ( | ( | ( | |||||||||||||||||
Income tax expense (benefit) | ( | ( | ||||||||||||||||||
Loss from continuing operations | ( | ( | ( | |||||||||||||||||
Income from discontinued operations, net of income taxes | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Basic (loss) income per share (Note 5): | ||||||||||||||||||||
Loss from continuing operations | $ | ( | $ | ( | $ | ( | ||||||||||||||
Income from discontinued operations | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Basic weighted-average shares outstanding | ||||||||||||||||||||
Diluted (loss) income per share (Note 5): | ||||||||||||||||||||
Loss from continuing operations | $ | ( | $ | ( | $ | ( | ||||||||||||||
Income from discontinued operations | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Diluted weighted-average shares outstanding | ||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Currency translation adjustments | ( | ( | ( | |||||||||||||||||
Derivatives, net of tax | ||||||||||||||||||||
Benefit plans, net of tax | ( | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | ||||||||||||||||||
Comprehensive loss | $ | ( | $ | ( | $ | ( |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Currency translation adjustments | ( | ( | ( | |||||||||||||||||
Derivatives, net of tax | ||||||||||||||||||||
Benefit plans, net of tax | ( | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | ||||||||||||||||||
Comprehensive loss | $ | ( | $ | ( | $ | ( |
Successor | |||||||||||
June 30, 2023 | December 30, 2022 | ||||||||||
Assets | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowance for doubtful accounts of $ | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Intangible assets, net | |||||||||||
Deferred income taxes | |||||||||||
Other assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Shareholders' Equity | |||||||||||
Current Liabilities: | |||||||||||
Current maturities of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued payroll and payroll-related costs | |||||||||||
Accrued interest | |||||||||||
Acthar Gel-Related Settlement | |||||||||||
Opioid-Related Litigation Settlement liability | |||||||||||
Accrued and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Acthar Gel-Related Settlement | |||||||||||
Opioid-Related Litigation Settlement liability | |||||||||||
Pension and postretirement benefits | |||||||||||
Environmental liabilities | |||||||||||
Other income tax liabilities | |||||||||||
Other liabilities | |||||||||||
Total Liabilities | |||||||||||
Shareholders' Equity: | |||||||||||
Successor preferred shares, $ | |||||||||||
Successor ordinary A shares, € | |||||||||||
Successor ordinary shares, $ | |||||||||||
Successor ordinary shares held in treasury at cost, | ( | ||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Retained deficit | ( | ( | |||||||||
Total Shareholders' Equity | |||||||||||
Total Liabilities and Shareholders' Equity | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Adjustments to reconcile net cash from operating activities: | ||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||
Deferred income taxes | ( | ( | ||||||||||||||||||
Reorganization items, net | ||||||||||||||||||||
Non-cash accretion expense | ||||||||||||||||||||
Other non-cash items | ( | |||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Accounts receivable, net | ||||||||||||||||||||
Inventories | ( | |||||||||||||||||||
Accounts payable | ( | ( | ( | |||||||||||||||||
Income taxes | ( | ( | ||||||||||||||||||
Payments of claims | ( | |||||||||||||||||||
Other | ( | ( | ||||||||||||||||||
Net cash from operating activities | ( | ( | ||||||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||||||
Capital expenditures | ( | ( | ( | |||||||||||||||||
Proceeds from divestitures, net of cash | ||||||||||||||||||||
Other | ||||||||||||||||||||
Net cash from investing activities | ( | ( | ||||||||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||||||
Issuance of external debt | ||||||||||||||||||||
Repayment of external debt | ( | ( | ( | |||||||||||||||||
Debt financing costs | ( | |||||||||||||||||||
Repurchase of shares | ( | |||||||||||||||||||
Net cash from financing activities | ( | ( | ( | |||||||||||||||||
Effect of currency rate changes on cash | ( | ( | ( | |||||||||||||||||
Net change in cash, cash equivalents and restricted cash | ( | |||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | ||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | $ | |||||||||||||||||
Cash and cash equivalents at end of period | $ | $ | $ | |||||||||||||||||
Restricted cash included in prepaid expenses and other current assets at end of period | ||||||||||||||||||||
Restricted cash included in other long-term assets at end of period | ||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | $ |
Ordinary Shares | Treasury Shares | Additional Paid-In Capital | Retained Deficit | Accumulated Other Comprehensive (Loss) Income | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 (Predecessor) | $ | $ | ( | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as of April 1, 2022 (Predecessor) | $ | $ | ( | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Cancellation of Predecessor equity | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Issuance of Successor common stock | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of Successor Opioid Warrants | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as of June 16, 2022 (Successor) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance as of July 1, 2022 (Successor) | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Balance as of December 30, 2022 (Successor) | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 (Successor) | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Vesting of restricted shares | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 (Successor) | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||
1. | Background and Basis of Presentation |
2. | Revenue from Contracts with Customers |
Rebates and Chargebacks (1) | Product Returns | Other Sales Deductions | Total | ||||||||||||||||||||
Balance as of December 31, 2021 (Predecessor) | $ | $ | $ | $ | |||||||||||||||||||
Provisions | |||||||||||||||||||||||
Payments or credits | ( | ( | ( | ( | |||||||||||||||||||
Balance as of June 16, 2022 (Predecessor) | $ | $ | $ | $ | |||||||||||||||||||
Balance as of June 17, 2022 (Successor) | $ | $ | $ | $ | |||||||||||||||||||
Provisions | |||||||||||||||||||||||
Payments or credits | ( | ( | ( | ( | |||||||||||||||||||
Balance as of July 1, 2022 (Successor) | $ | $ | $ | $ | |||||||||||||||||||
Balance as of December 30, 2022 (Successor) | $ | $ | $ | $ | |||||||||||||||||||
Provisions | |||||||||||||||||||||||
Payments or credits | ( | ( | ( | ( | |||||||||||||||||||
Balance as of June 30, 2023 (Successor) | $ | $ | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Product sales transferred at a point in time | % | % | % | |||||||||||||||||
Product sales transferred over time |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Product sales transferred at a point in time | % | % | % | |||||||||||||||||
Product sales transferred over time |
Remainder of Fiscal 2023 | $ | ||||
Fiscal 2024 | |||||
Fiscal 2025 | |||||
Thereafter |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Royalty revenue | $ | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Royalty revenue | $ | $ | $ |
3. | Restructuring and Related Charges |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Corporate | $ | ( | $ | $ | ||||||||||||||||
Restructuring charges, net | $ | ( | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Specialty Generics | $ | $ | $ | |||||||||||||||||
Corporate | ||||||||||||||||||||
Restructuring and related charges, net | ||||||||||||||||||||
Less: accelerated depreciation | ( | |||||||||||||||||||
Restructuring charges, net | $ | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
2018 Program | $ | ( | $ | $ | ||||||||||||||||
Less: non-cash charges, including accelerated depreciation | ( | ( | ||||||||||||||||||
Total charges expected to be settled in cash | $ | ( | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
2018 Program | $ | $ | $ | |||||||||||||||||
Less: non-cash charges, including accelerated depreciation | ( | ( | ( | |||||||||||||||||
Total charges expected to be settled in cash | $ | $ | $ |
2018 Program | |||||
Balance as of December 30, 2022 (Successor) | $ | ||||
Charges from continuing operations | |||||
Changes in estimate from continuing operations | ( | ||||
Cash payments | ( | ||||
Balance as of June 30, 2023 (Successor) | $ |
Successor | Predecessor | |||||||||||||
Specialty Brands | $ | $ | ||||||||||||
Specialty Generics | ||||||||||||||
Corporate | ||||||||||||||
$ | $ |
4. | Income Taxes |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Current tax expense (benefit) | $ | $ | ( | $ | ( | |||||||||||||||
Deferred tax expense (benefit) | ( | ( | ||||||||||||||||||
Income tax expense (benefit) | $ | $ | ( | $ | ( |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Current tax expense (benefit) | $ | $ | ( | $ | ( | |||||||||||||||
Deferred tax expense (benefit) | ( | ( | ||||||||||||||||||
Income tax expense (benefit) | $ | $ | ( | $ | ( |
5. | Loss per Share |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Basic and diluted | ||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Basic and diluted | ||||||||||||||||||||
6. | Inventories |
Successor | |||||||||||
June 30, 2023 | December 30, 2022 | ||||||||||
Raw materials and supplies | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
$ | $ |
7. | Property, Plant and Equipment |
Successor | |||||||||||
June 30, 2023 | December 30, 2022 | ||||||||||
Property, plant and equipment, gross | $ | $ | |||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Depreciation expense | $ | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Depreciation expense | $ | $ | $ |
8. | Intangible Assets |
Successor | |||||||||||||||||||||||
June 30, 2023 | December 30, 2022 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||
Amortizable: | |||||||||||||||||||||||
Completed technology | $ | $ | $ | $ | |||||||||||||||||||
Non-Amortizable: | |||||||||||||||||||||||
In-process research and development | |||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Amortization expense | $ | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Amortization expense | $ | $ | $ |
Successor | |||||
Remainder of Fiscal 2023 | $ | ||||
Fiscal 2024 | |||||
Fiscal 2025 | |||||
Fiscal 2026 | |||||
Fiscal 2027 |
9. | Debt |
Successor | |||||||||||||||||||||||||||||||||||
June 30, 2023 | December 30, 2022 | ||||||||||||||||||||||||||||||||||
Principal | Carrying Value | Unamortized Discount and Debt Issuance Costs | Principal | Carrying Value | Unamortized Discount and Debt Issuance Costs | ||||||||||||||||||||||||||||||
Current maturities of long-term debt: | |||||||||||||||||||||||||||||||||||
Receivables financing facility due June 2026 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
2017 Replacement Term loan due September 2027 | |||||||||||||||||||||||||||||||||||
2018 Replacement Term loan due September 2027 | |||||||||||||||||||||||||||||||||||
11.50% first lien senior secured notes due December 2028 | |||||||||||||||||||||||||||||||||||
10.00% second lien senior secured notes due June 2029 | |||||||||||||||||||||||||||||||||||
Total current debt | |||||||||||||||||||||||||||||||||||
Long-term debt: | |||||||||||||||||||||||||||||||||||
10.00% first lien senior secured notes due April 2025 | |||||||||||||||||||||||||||||||||||
10.00% second lien senior secured notes due April 2025 | |||||||||||||||||||||||||||||||||||
2017 Replacement Term loan due September 2027 | |||||||||||||||||||||||||||||||||||
2018 Replacement Term loan due September 2027 | |||||||||||||||||||||||||||||||||||
11.50% first lien senior secured notes due December 2028 | |||||||||||||||||||||||||||||||||||
10.00% second lien senior secured notes due June 2029 | |||||||||||||||||||||||||||||||||||
Total long-term debt | |||||||||||||||||||||||||||||||||||
Total debt | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Applicable Interest Rate | Outstanding Principal | ||||||||||
Fixed-rate instruments | % | $ | |||||||||
2017 Replacement Term Loan due September 2027 (1) | |||||||||||
2018 Replacement Term Loan due September 2027 (1) |
10. | Guarantees |
11. | Commitments and Contingencies |
12. | Financial Instruments and Fair Value Measurements |
June 30, 2023 (Successor) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Debt and equity securities held in rabbi trusts | $ | $ | $ | $ | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Interest rate cap | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Deferred compensation liabilities | $ | $ | $ | $ | |||||||||||||||||||
Contingent consideration liabilities | |||||||||||||||||||||||
$ | $ | $ | $ |
December 30, 2022 (Successor) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Debt and equity securities held in rabbi trusts | $ | $ | $ | $ | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Deferred compensation liabilities | $ | $ | $ | $ | |||||||||||||||||||
Contingent consideration liabilities | |||||||||||||||||||||||
$ | $ | $ | $ |
Successor | |||||||||||||||||||||||
June 30, 2023 | December 30, 2022 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Level 1: | |||||||||||||||||||||||
10.00% first lien senior secured notes due April 2025 | $ | $ | $ | $ | |||||||||||||||||||
10.00% second lien senior secured notes due April 2025 | |||||||||||||||||||||||
11.50% first lien senior secured notes due December 2028 | |||||||||||||||||||||||
10.00% second lien senior secured notes due June 2029 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||
2017 Replacement Term loan due September 2027 | |||||||||||||||||||||||
2018 Replacement Term loan due September 2027 | |||||||||||||||||||||||
Total Debt | $ | $ | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
FFF Enterprises, Inc. | % | % | % |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
FFF Enterprises, Inc. | % | % | % | |||||||||||||||||
CuraScript, Inc. | * | * |
Successor | |||||||||||
June 30, 2023 | December 30, 2022 | ||||||||||
AmerisourceBergen Corporation | % | % | |||||||||
McKesson Corporation | |||||||||||
FFF Enterprises, Inc. | * |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Acthar Gel | % | % | % | |||||||||||||||||
INOmax | ||||||||||||||||||||
Therakos | ||||||||||||||||||||
APAP |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Acthar Gel | % | % | % | |||||||||||||||||
INOmax | ||||||||||||||||||||
Therakos | ||||||||||||||||||||
APAP |
13. | Segment Data |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Net sales: | ||||||||||||||||||||
Specialty Brands | $ | $ | $ | |||||||||||||||||
Specialty Generics | ||||||||||||||||||||
Net sales | $ | $ | $ | |||||||||||||||||
Operating income (loss): | ||||||||||||||||||||
Specialty Brands | $ | $ | $ | |||||||||||||||||
Specialty Generics | ||||||||||||||||||||
Segment operating income | ||||||||||||||||||||
Unallocated amounts: | ||||||||||||||||||||
Corporate and unallocated expenses (1) | ( | ( | ||||||||||||||||||
Depreciation and amortization | ( | ( | ( | |||||||||||||||||
Share-based compensation | ( | ( | ||||||||||||||||||
Restructuring charges, net | ( | ( | ||||||||||||||||||
Liabilities management and separation costs (2) | ( | ( | ( | |||||||||||||||||
Operating loss | $ | ( | $ | ( | $ | ( |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Net sales: | ||||||||||||||||||||
Specialty Brands | $ | $ | $ | |||||||||||||||||
Specialty Generics | ||||||||||||||||||||
Net sales | $ | $ | $ | |||||||||||||||||
Operating income (loss): | ||||||||||||||||||||
Specialty Brands | $ | $ | $ | |||||||||||||||||
Specialty Generics | ||||||||||||||||||||
Segment operating income | ||||||||||||||||||||
Unallocated amounts: | ||||||||||||||||||||
Corporate and unallocated expenses (1) | ( | ( | ( | |||||||||||||||||
Depreciation and amortization | ( | ( | ( | |||||||||||||||||
Share-based compensation | ( | ( | ||||||||||||||||||
Restructuring charges, net | ( | ( | ( | |||||||||||||||||
Liabilities management and separation costs (2) | ( | ( | ( | |||||||||||||||||
Operating loss | $ | ( | $ | ( | $ | ( |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | ||||||||||||||||||
Acthar Gel | $ | $ | $ | |||||||||||||||||
INOmax | ||||||||||||||||||||
Therakos | ||||||||||||||||||||
Amitiza (1) | ||||||||||||||||||||
Terlivaz | ||||||||||||||||||||
Other | ||||||||||||||||||||
Specialty Brands | ||||||||||||||||||||
Opioids | ||||||||||||||||||||
ADHD | ||||||||||||||||||||
Addiction treatment | ||||||||||||||||||||
Other | ||||||||||||||||||||
Generics | ||||||||||||||||||||
Controlled substances | ||||||||||||||||||||
APAP | ||||||||||||||||||||
Other | ||||||||||||||||||||
API | ||||||||||||||||||||
Specialty Generics | ||||||||||||||||||||
Net sales | $ | $ | $ |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Acthar Gel | $ | $ | $ | |||||||||||||||||
INOmax | ||||||||||||||||||||
Therakos | ||||||||||||||||||||
Amitiza (1) | ||||||||||||||||||||
Terlivaz | ||||||||||||||||||||
Other | ||||||||||||||||||||
Specialty Brands | ||||||||||||||||||||
Opioids | ||||||||||||||||||||
ADHD | ||||||||||||||||||||
Addiction treatment | ||||||||||||||||||||
Other | ||||||||||||||||||||
Generics | ||||||||||||||||||||
Controlled substances | ||||||||||||||||||||
APAP | ||||||||||||||||||||
Other | ||||||||||||||||||||
API | ||||||||||||||||||||
Specialty Generics | ||||||||||||||||||||
Net sales | $ | $ | $ |
14. | Subsequent Events |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations. |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | Combined Three Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
U.S. | $ | 426.2 | $ | 74.7 | $ | 334.4 | $ | 409.1 | 4.2 | % | ||||||||||||||||||||||
Europe, Middle East and Africa | 45.9 | 9.4 | 40.3 | 49.7 | (7.6) | |||||||||||||||||||||||||||
Other geographic areas | 2.9 | 0.9 | 9.0 | 9.9 | (70.7) | |||||||||||||||||||||||||||
Net sales | $ | 475.0 | $ | 85.0 | $ | 383.7 | $ | 468.7 | 1.3 | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | Combined Six Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
U.S. | $ | 805.8 | $ | 74.7 | $ | 784.2 | $ | 858.9 | (6.2) | % | ||||||||||||||||||||||
Europe, Middle East and Africa | 86.5 | 9.4 | 73.6 | 83.0 | 4.2 | |||||||||||||||||||||||||||
Other geographic areas | 7.3 | 0.9 | 16.8 | 17.7 | (58.8) | |||||||||||||||||||||||||||
Net sales | $ | 899.6 | $ | 85.0 | $ | 874.6 | $ | 959.6 | (6.3) | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | Combined Three Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
Specialty Brands | $ | 280.1 | $ | 58.2 | $ | 247.7 | $ | 305.9 | (8.4) | % | ||||||||||||||||||||||
Specialty Generics | 194.9 | 26.8 | 136.0 | 162.8 | 19.7 | |||||||||||||||||||||||||||
Net sales | $ | 475.0 | $ | 85.0 | $ | 383.7 | $ | 468.7 | 1.3 | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | Combined Three Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
U.S. | $ | 260.5 | $ | 55.1 | $ | 228.8 | $ | 283.9 | (8.2) | % | ||||||||||||||||||||||
Europe, Middle East and Africa | 17.6 | 2.8 | 12.6 | 15.4 | 14.3 | |||||||||||||||||||||||||||
Other | 2.0 | 0.3 | 6.3 | 6.6 | (69.7) | |||||||||||||||||||||||||||
Net sales | $ | 280.1 | $ | 58.2 | $ | 247.7 | $ | 305.9 | (8.4) | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | Combined Three Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
Acthar Gel | $ | 116.8 | $ | 27.5 | $ | 94.2 | $ | 121.7 | (4.0) | % | ||||||||||||||||||||||
INOmax | 76.9 | 13.5 | 66.8 | 80.3 | (4.2) | |||||||||||||||||||||||||||
Therakos | 62.9 | 10.2 | 49.7 | 59.9 | 5.0 | |||||||||||||||||||||||||||
Amitiza | 18.6 | 5.8 | 33.8 | 39.6 | (53.0) | |||||||||||||||||||||||||||
Terlivaz | 3.4 | — | — | — | — | |||||||||||||||||||||||||||
Other | 1.5 | 1.2 | 3.2 | 4.4 | (65.9) | |||||||||||||||||||||||||||
Specialty Brands | $ | 280.1 | $ | 58.2 | $ | 247.7 | $ | 305.9 | (8.4) | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | Combined Three Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
U.S. | $ | 165.7 | $ | 19.6 | $ | 105.6 | $ | 125.2 | 32.3 | % | ||||||||||||||||||||||
Europe, Middle East and Africa | 28.3 | 6.6 | 27.7 | 34.3 | (17.5) | |||||||||||||||||||||||||||
Other | 0.9 | 0.6 | 2.7 | 3.3 | (72.7) | |||||||||||||||||||||||||||
Net sales | $ | 194.9 | $ | 26.8 | $ | 136.0 | $ | 162.8 | 19.7 | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | Combined Three Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
Opioids | $ | 72.1 | $ | 8.7 | $ | 38.8 | $ | 47.5 | 51.8 | % | ||||||||||||||||||||||
ADHD | 19.0 | 1.8 | 6.8 | 8.6 | 120.9 | |||||||||||||||||||||||||||
Addiction treatment | 16.1 | 2.5 | 14.1 | 16.6 | (3.0) | |||||||||||||||||||||||||||
Other | 2.4 | 0.1 | 2.0 | 2.1 | 14.3 | |||||||||||||||||||||||||||
Generics | 109.6 | 13.1 | 61.7 | 74.8 | 46.5 | |||||||||||||||||||||||||||
Controlled substances | 20.9 | 1.7 | 17.2 | 18.9 | 10.6 | |||||||||||||||||||||||||||
APAP | 59.8 | 11.3 | 50.2 | 61.5 | (2.8) | |||||||||||||||||||||||||||
Other | 4.6 | 0.7 | 6.9 | 7.6 | (39.5) | |||||||||||||||||||||||||||
API | 85.3 | 13.7 | 74.3 | 88.0 | (3.1) | |||||||||||||||||||||||||||
Specialty Generics | $ | 194.9 | $ | 26.8 | $ | 136.0 | $ | 162.8 | 19.7 | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from April 2, 2022 through June 16, 2022 | Combined Three Months Ended July 1, 2022 | |||||||||||||||||||||||
Specialty Brands (1) | $ | 61.6 | $ | 4.5 | $ | 102.4 | $ | 106.9 | ||||||||||||||||||
Specialty Generics (2) | 35.1 | 0.3 | 30.9 | 31.2 | ||||||||||||||||||||||
Segment operating income | 96.7 | 4.8 | 133.3 | 138.1 | ||||||||||||||||||||||
Unallocated amounts: | ||||||||||||||||||||||||||
Corporate and unallocated income (expenses) (3) | 0.6 | (0.9) | (15.4) | (16.3) | ||||||||||||||||||||||
Depreciation and amortization | (141.1) | (48.4) | (144.6) | (193.0) | ||||||||||||||||||||||
Share-based compensation | (2.7) | — | (0.5) | (0.5) | ||||||||||||||||||||||
Restructuring charges, net | 0.2 | (1.1) | (2.8) | (3.9) | ||||||||||||||||||||||
Liabilities management and separation costs (4) | (10.3) | (9.2) | (7.0) | (16.2) | ||||||||||||||||||||||
Total operating loss | $ | (56.6) | $ | (54.8) | $ | (37.0) | $ | (91.8) |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | Combined Six Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
Specialty Brands | $ | 532.1 | $ | 58.2 | $ | 587.1 | $ | 645.3 | (17.5) | % | ||||||||||||||||||||||
Specialty Generics | 367.5 | 26.8 | 287.5 | 314.3 | 16.9 | |||||||||||||||||||||||||||
Net sales | $ | 899.6 | $ | 85.0 | $ | 874.6 | $ | 959.6 | (6.3) | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | Combined Six Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
U.S. | $ | 493.8 | $ | 55.1 | $ | 547.1 | $ | 602.2 | (18.0) | % | ||||||||||||||||||||||
Europe, Middle East and Africa | 33.3 | 2.8 | 29.2 | 32.0 | 4.1 | |||||||||||||||||||||||||||
Other | 5.0 | 0.3 | 10.8 | 11.1 | (55.0) | |||||||||||||||||||||||||||
Net sales | $ | 532.1 | $ | 58.2 | $ | 587.1 | $ | 645.3 | (17.5) | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | Combined Six Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
Acthar Gel | $ | 198.8 | $ | 27.5 | $ | 221.9 | $ | 249.4 | (20.3) | % | ||||||||||||||||||||||
INOmax | 159.6 | 13.5 | 165.8 | 179.3 | (11.0) | |||||||||||||||||||||||||||
Therakos | 121.6 | 10.2 | 109.6 | 119.8 | 1.5 | |||||||||||||||||||||||||||
Amitiza | 43.1 | 5.8 | 81.5 | 87.3 | (50.6) | |||||||||||||||||||||||||||
Terlivaz | 5.6 | — | — | — | — | |||||||||||||||||||||||||||
Other | 3.4 | 1.2 | 8.3 | 9.5 | (64.2) | |||||||||||||||||||||||||||
Specialty Brands | $ | 532.1 | $ | 58.2 | $ | 587.1 | $ | 645.3 | (17.5) | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | Combined Six Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
U.S. | $ | 312.0 | $ | 19.6 | $ | 237.1 | $ | 256.7 | 21.5 | % | ||||||||||||||||||||||
Europe, Middle East and Africa | 53.2 | 6.6 | 44.4 | 51.0 | 4.3 | |||||||||||||||||||||||||||
Other | 2.3 | 0.6 | 6.0 | 6.6 | (65.2) | |||||||||||||||||||||||||||
Net sales | $ | 367.5 | $ | 26.8 | $ | 287.5 | $ | 314.3 | 16.9 | % |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | Combined Six Months Ended July 1, 2022 | Percentage Change | ||||||||||||||||||||||||||||
Opioids | $ | 134.3 | $ | 8.7 | $ | 88.8 | $ | 97.5 | 37.7% | |||||||||||||||||||||||
ADHD | 41.4 | 1.8 | 17.5 | 19.3 | 114.5 | |||||||||||||||||||||||||||
Addiction treatment | 31.7 | 2.5 | 30.0 | 32.5 | (2.5) | |||||||||||||||||||||||||||
Other | 4.2 | 0.1 | 4.9 | 5.0 | (16.0) | |||||||||||||||||||||||||||
Generics | 211.6 | 13.1 | 141.2 | 154.3 | 37.1 | |||||||||||||||||||||||||||
Controlled substances | 39.4 | 1.7 | 37.6 | 39.3 | 0.3 | |||||||||||||||||||||||||||
APAP | 106.2 | 11.3 | 96.5 | 107.8 | (1.5) | |||||||||||||||||||||||||||
Other | 10.3 | 0.7 | 12.2 | 12.9 | (20.2) | |||||||||||||||||||||||||||
API | 155.9 | 13.7 | 146.3 | 160.0 | (2.6) | |||||||||||||||||||||||||||
Specialty Generics | $ | 367.5 | $ | 26.8 | $ | 287.5 | $ | 314.3 | 16.9% |
Successor | Predecessor | Non-GAAP | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | Combined Six Months Ended July 1, 2022 | |||||||||||||||||||||||
Specialty Brands (1) | $ | 94.0 | $ | 4.5 | $ | 267.2 | $ | 271.7 | ||||||||||||||||||
Specialty Generics (2) | 67.9 | 0.3 | 65.3 | 65.6 | ||||||||||||||||||||||
Segment operating income | 161.9 | 4.8 | 332.5 | 337.3 | ||||||||||||||||||||||
Unallocated amounts: | ||||||||||||||||||||||||||
Corporate and unallocated expenses (3) | (13.4) | (0.9) | (48.2) | (49.1) | ||||||||||||||||||||||
Depreciation and amortization | (286.2) | (48.4) | (321.8) | (370.2) | ||||||||||||||||||||||
Share-based compensation | (5.3) | — | (1.7) | (1.7) | ||||||||||||||||||||||
Restructuring charges, net | (1.0) | (1.1) | (9.6) | (10.7) | ||||||||||||||||||||||
Liabilities management and separation costs (4) | (15.2) | (9.2) | (9.0) | (18.2) | ||||||||||||||||||||||
Total operating loss | $ | (159.2) | $ | (54.8) | $ | (57.8) | $ | (112.6) |
Successor | Predecessor | |||||||||||||||||||
Six Months Ended June 30, 2023 | Period from June 17, 2022 through July 1, 2022 | Period from January 1, 2022 through June 16, 2022 | ||||||||||||||||||
Net cash from: | ||||||||||||||||||||
Operating activities | $ | 121.0 | $ | (15.5) | $ | (642.3) | ||||||||||||||
Investing activities | (25.6) | 61.3 | (33.0) | |||||||||||||||||
Financing activities | (22.1) | (1.7) | (278.7) | |||||||||||||||||
Effect of currency exchange rate changes on cash and cash equivalents | (1.1) | (0.2) | (3.9) | |||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | $ | 72.2 | $ | 43.9 | $ | (957.9) |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 5. | Other Information. |
Item 6. | Exhibits. |
Exhibit Number | Exhibit | |||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101 | Interactive Data File (Form 10-Q for the quarterly period ended June 30, 2023 filed in XBRL). The financial information contained in the XBRL-related documents is "unaudited" and "unreviewed." The instance document does not appear in the interactive file because its XBRL tags are embedded within the inline XBRL document. | |||||||
104 | Cover Page Interactive Data File (embedded within the inline XBRL document and included in Exhibit 101). |
MALLINCKRODT PLC | ||||||||
By: | /s/ Bryan M. Reasons | |||||||
Bryan M. Reasons Executive Vice President and Chief Financial Officer (principal financial and accounting officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Mallinckrodt plc; | ||||||||||||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||||||||||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||||||||||||||||
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: | ||||||||||||||||
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||||||||||||||||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||||||||||||||||
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||||||||||||||||
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||||||||||||||||
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | ||||||||||||||||
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||||||||||||||||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 9, 2023 | By: | /s/ Sigurdur Olafsson | |||||||||||
Sigurdur Olafsson | ||||||||||||||
President and Chief Executive Officer and Director (principal executive officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Mallinckrodt plc; | ||||||||||||||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||||||||||||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||||||||||||||||
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: | ||||||||||||||||
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||||||||||||||||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||||||||||||||||
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||||||||||||||||
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||||||||||||||||
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | ||||||||||||||||
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||||||||||||||||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 9, 2023 | By: | /s/ Bryan M. Reasons | |||||||||||
Bryan M. Reasons | ||||||||||||||
Executive Vice President and Chief Financial Officer (principal financial and accounting officer) |
By: | /s/ Sigurdur Olafsson | ||||
Sigurdur Olafsson | |||||
President and Chief Executive Officer and Director (principal executive officer) |
By: | /s/ Bryan M. Reasons | ||||
Bryan M. Reasons | |||||
Executive Vice President and Chief Financial Officer (principal financial and accounting officer) |
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
|
Net sales | $ 85.0 | $ 475.0 | $ 383.7 | $ 899.6 | $ 874.6 |
Cost of sales | 102.2 | 370.1 | 266.8 | 744.9 | 582.0 |
Gross profit (loss) | (17.2) | 104.9 | 116.9 | 154.7 | 292.6 |
Selling, general and administrative expenses | 30.3 | 132.7 | 122.8 | 255.6 | 275.3 |
Research and development expenses | 6.2 | 29.0 | 28.3 | 57.3 | 65.5 |
Restructuring charges, net | 1.1 | (0.2) | 2.8 | 1.0 | 9.6 |
Operating loss | (54.8) | (56.6) | (37.0) | (159.2) | (57.8) |
Interest expense | 21.1 | 162.6 | 50.4 | 324.6 | 108.6 |
Interest income | (0.1) | (4.7) | (0.2) | (9.4) | (0.6) |
Other (expense) income, net | 5.9 | (1.2) | (10.5) | (15.8) | (14.6) |
Reorganization items, net | (3.5) | (4.0) | (587.5) | (9.6) | (630.9) |
Loss from continuing operations before income taxes | (73.4) | (219.7) | (685.2) | (499.8) | (811.3) |
Income tax expense (benefit) | (9.7) | 528.1 | (491.4) | 497.3 | (497.3) |
Loss from continuing operations | (63.7) | (747.8) | (193.8) | (997.1) | (314.0) |
Income from discontinued operations, net of income taxes | 0.0 | 0.0 | 0.3 | $ 0.0 | $ 0.9 |
Net loss | $ (63.7) | $ (747.8) | $ (193.5) | ||
Basic (loss) income per share (Note 5): | |||||
Loss from continuing operations | $ (4.83) | $ (56.74) | $ (2.29) | $ (75.68) | $ (3.70) |
Income from discontinued operations | 0 | 0 | 0 | 0 | 0.01 |
Net loss | $ (4.83) | $ (56.74) | $ (2.28) | $ (75.68) | $ (3.69) |
Basic weighted-averaged shares outstanding (in shares) | 13.2 | 13.2 | 84.8 | 13.2 | 84.8 |
Diluted (loss) income per share (Note 5): | |||||
Loss from continuing operations | $ (4.83) | $ (56.74) | $ (2.29) | $ (75.68) | $ (3.70) |
Income from discontinued operations | 0 | 0 | 0 | 0 | 0.10 |
Net loss | $ (4.83) | $ (56.74) | $ (2.28) | $ (75.68) | $ (3.69) |
Diluted weighted-average shares outstanding (in shares) | 13.2 | 13.2 | 84.8 | 13.2 | 84.8 |
Retained Earnings (Deficit) | |||||
Net loss | $ (63.7) | $ (747.8) | $ (193.5) | $ (997.1) | $ (313.1) |
Background and Basis of Presentation |
6 Months Ended | ||||||||||||
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Jun. 30, 2023 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Background and Basis of Presentation |
Background Mallinckrodt plc is a global business of multiple wholly owned subsidiaries (collectively, "Mallinckrodt" or "the Company") that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. Areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, hepatology, nephrology, pulmonology, ophthalmology and oncology; immunotherapy and neonatal respiratory critical care therapies; analgesics; cultured skin substitutes and gastrointestinal products. The Company operates in two reportable segments, which are further described below: •Specialty Brands includes innovative specialty pharmaceutical brands; and •Specialty Generics includes niche specialty generic drugs and active pharmaceutical ingredients ("API(s)"). The Company owns or has rights to use the trademarks and trade names that are used in conjunction with the operation of its business. One of the more important trademarks that the Company owns or has rights to use that appears in this Quarterly Report on Form 10-Q is "Mallinckrodt," which is a registered trademark or the subject of pending trademark applications in the United States ("U.S.") and other jurisdictions. Solely for convenience, the Company only uses the ™ or ® symbols the first time any trademark or trade name is mentioned in the following notes. Such references are not intended to indicate in any way that the Company will not assert, to the fullest extent permitted under applicable law, its rights to its trademarks and trade names. Each trademark or trade name of any other company appearing in the following notes is, to the Company's knowledge, owned by such other company. Basis of Presentation On October 12, 2020 ("Petition Date"), Mallinckrodt plc and substantially all of its U.S. subsidiaries, including certain subsidiaries of Mallinckrodt plc operating the Specialty Generics business ("Specialty Generics Subsidiaries") and the Specialty Brands business ("Specialty Brands Subsidiaries"), and certain of the Company's international subsidiaries (together with the Company, Specialty Generics Subsidiaries and Specialty Brands Subsidiaries, the "Debtors") voluntarily initiated proceedings ("Chapter 11 Cases") under chapter 11 of title 11 ("Chapter 11") of the United States Code ("Bankruptcy Code"). On March 2, 2022, the U.S. Bankruptcy Court for the District of Delaware ("Bankruptcy Court") entered an order confirming the fourth amended plan of reorganization (with technical modifications) ("Plan"). Subsequent to the filing of the Chapter 11 Cases, Chapter 11 proceedings commenced by a limited subset of the Debtors were recognized and given effect in Canada, and separately the High Court of Ireland made an order confirming a scheme of arrangement on April 27, 2022, which is based on and consistent in all respects with the Plan ("Scheme of Arrangement"). On June 8, 2022, the Bankruptcy Court entered an order approving a minor modification to the Plan. The Plan became effective on June 16, 2022 ("Effective Date"), and on such date the Company emerged from the Chapter 11 and the Scheme of Arrangement became effective concurrently. Upon emergence from Chapter 11, the Company adopted fresh-start accounting in accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 852 - Reorganizations, and became a new entity for financial reporting purposes as of the Effective Date. References to "Successor" relate to the financial position as of June 16, 2022 and results of operations of the reorganized Company subsequent to June 16, 2022, while references to "Predecessor" relate to the financial position prior to June 16, 2022 and results of operations of the Company prior to, and including, June 16, 2022. All emergence-related transactions of the Predecessor were recorded as of June 16, 2022. Accordingly, the unaudited condensed consolidated financial statements for the Successor are not comparable to the unaudited condensed consolidated financial statements for the Predecessor. Reorganization items, net for the Successor represents amounts incurred after the Effective Date that directly resulted from Chapter 11 and were entirely comprised of professional fees associated with the implementation of the Plan. Reorganization items, net for the Predecessor represents amounts incurred after the Petition Date but prior to emergence as a direct result of the Chapter 11 Cases and were comprised of bankruptcy-related professional fees and adjustments to reflect the carrying value of liabilities subject to compromise ("LSTC") at their estimated allowed claim amounts, as such adjustments were approved by the Bankruptcy Court. Cash paid for reorganization items, net for the six months ended June 30, 2023 (Successor), for the period from June 17, 2022 through July 1, 2022 (Successor), and the period from January 1, 2022 through June 16, 2022 (Predecessor), was $14.6 million, zero, and $304.1 million, respectively. The unaudited condensed consolidated financial statements have been prepared in U.S. dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"). The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results may differ from those estimates. The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and entities in which they own or control more than 50.0% of the voting shares, or have the ability to control through similar rights. In the opinion of management, all adjustments necessary for a fair statement of results of operations, cash flows and financial position have been made. All intercompany balances and transactions have been eliminated in consolidation and all normal recurring adjustments necessary for a fair presentation have been included in the results reported. The results of entities disposed of are included in the unaudited condensed consolidated financial statements up to the date of disposal, and where appropriate, these operations have been reported in discontinued operations. Divestitures of product lines and businesses not meeting the criteria for discontinued operations have been reflected in operating loss. The fiscal year end balance sheet data was derived from audited consolidated financial statements, but does not include all of the annual disclosures required by GAAP; accordingly these unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited annual consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 30, 2022 filed with the U.S. Securities and Exchange Commission ("SEC") on March 3, 2023 ("Annual Report on Form 10-K"). Going Concern The accompanying unaudited condensed consolidated financial statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Beginning on May 17, 2023, the Company received unsolicited letters on behalf of various parties holding substantial positions across the Company's capital structure, including certain holders of the Company's (i) first lien senior secured term loans due 2027 ("Term Loans") issued under the credit agreement, dated as of June 16, 2022, by and among the Company, certain of its subsidiaries, the lenders party thereto, Acquiom Agency Services LLC and Seaport Loan Products LLC, as co-administrative agents, and Deutsche Bank AG New York Branch, as collateral agent ("Term Loan Credit Agreement") (ii) 10.00% first lien senior secured notes due 2025 ("2025 First Lien Notes"), (iii) 11.50% first lien senior secured notes due 2028 ("2028 First Lien Notes"), (iv) 10.00% second lien senior secured notes due 2025 ("2025 Second Lien Notes"), and (v) 10.00% second lien senior secured notes due 2029 ("2029 Second Lien Notes"). Under the Board of Directors' direction, the Company has been analyzing various proposals and engaging in discussions with various stakeholders, including such creditors and representatives of the Opioid Master Disbursement Trust II ("Trust"). As the Company’s discussions with its stakeholders proceeded, the Company determined not to make interest payments that were due on June 15, 2023 on its 2028 First Lien Notes and 2029 Second Lien Notes. Substantial doubt about the Company's ability to continue as a going concern exists in light of events of default arising from the failure to make these interest payments before the expiration of applicable grace periods, which events of default were continuing as of the date of this report. While the Company has sufficient liquidity to make such interest payments (as well as the $200.0 million installment payment originally due to be paid to the Trust on June 16, 2023 with respect to our opioid-related litigation settlement obligation ("Opioid Deferred Cash Payment"), which the Trust has agreed to extend until August 15, 2023), the failure to make the above described interest payments has resulted in events of default under the 2028 First Lien Notes and 2029 Second Lien Notes and, absent prompt cure of such events of default or discharge of the 2028 First Lien Notes and 2029 Second Lien Notes, cross-defaults under the Term Loans issued under the Term Loan Credit Agreement and the receivables financing facility pursuant to the ABL credit agreement, dated as of June 16, 2022 by and among ST US AR Finance LLC, the lenders party thereto, the L/C Issuers (as defined in the ABL Credit Agreement) party thereto and Barclays Bank plc, as administrative agent and collateral agent ("ABL Credit Agreement"), permitting specified portions of the creditors in respect of the 2028 First Lien Notes, 2029 Second Lien Notes, Term Loans and/or the ABL Credit Agreement to accelerate such obligations (which, in the case of the 2028 First Lien Notes and the 2029 Second Lien Notes, would include a prepayment premium) and terminate any applicable commitments to make additional loans under the ABL Credit Agreement. Although the Company has entered into forbearance agreements with certain holders of, and agents under, the 2028 First Lien Notes, 2029 Second Lien Notes, Term Loans, and the loans under the ABL Credit Agreement, such agreements expire on August 15, 2023 and it is possible that such obligations may be accelerated and applicable commitments to make additional loans under the ABL Credit Agreement may be terminated even before such date, notwithstanding such forbearance agreements. If such obligations were to be accelerated, the Company would not have sufficient liquidity to meet all such obligations as of the date of issuance of this report. Moreover, if the creditors in respect of the 2028 First Lien Notes, 2029 Second Lien Notes or the Term Loans were to accelerate such obligations (without such obligations being discharged), it would permit the Company's remaining noteholders and/or the Trust to accelerate their respective obligations in respect of the Company's remaining secured notes and opioid-related litigation settlement obligation. See Note 11 for further information with respect to the Company's opioid-related litigation settlement obligation, and Note 14 for further information on these matters, including other significant developments with respect to the Company's funded debt obligations. The Company's Board of Directors continues to actively evaluate the Company's financial situation and consider options, and the Company is actively engaged in advanced discussions with various stakeholders. These discussions contemplate entering into a restructuring support agreement with various stakeholders that would include, among other things, the Company's initiating Chapter 11 proceedings under the U.S. Bankruptcy Code or analogous foreign bankruptcy or insolvency laws. However, there can be no assurance that the Company will reach an agreement in a timely manner, or at all, on terms of a restructuring support agreement that the Board of Directors would support. Because plans to resolve the risks to the Company's ability to continue as a going concern have not yet been finalized and are not fully within the Company's control, and therefore cannot be deemed probable, the Company has concluded that management's plans at this stage do not alleviate substantial doubt about the Company's ability to continue as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts and classification of liabilities that might result from the outcome of this uncertainty. See Note 4 for discussion regarding the valuation allowance on the Company's net deferred tax assets that was recorded within the unaudited condensed consolidated balance sheet as of June 30, 2023 (Successor) as a result of considering the aforementioned substantial doubt in the Company's assessment of the realizability of certain net deferred tax assets. Fiscal Year The Company reports its results based on a "52-53 week" year ending on the last Friday of December. Unless otherwise indicated, the three and six months ended June 30, 2023 (Successor) refers to the thirteen and twenty-six week period ended June 30, 2023 (Successor). The period June 17, 2022 through July 1, 2022 reflects the Successor period, while the period April 2, 2022 through, and including, June 16, 2022 and the period January 1, 2022 through, and including, June 16, 2022 reflects the Predecessor periods.
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Revenue from Contracts with Customers Revenue from Contracts with Customers (Notes) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] |
Product Sales Revenue See Note 13 for presentation of the Company's net sales by product family. Reserves for variable consideration The following table reflects activity in the Company's sales reserve accounts:
(1)Includes $91.3 million and $89.3 million of accrued Medicaid and $36.4 million and $55.3 million of accrued rebates as of June 30, 2023 (Successor) and December 30, 2022 (Successor), respectively, included within accrued and other current liabilities in the unaudited condensed consolidated balance sheets. Product sales transferred to customers at a point in time and over time were as follows:
Transaction price allocated to the remaining performance obligations The following table includes estimated revenue from contracts extending greater than one year for certain of the Company's hospital products that are expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of June 30, 2023 (Successor):
Product Royalty Revenues The Company licenses certain rights to Amitiza® (lubiprostone) ("Amitiza") to third parties in exchange for royalties on net sales of the product. The Company receives a double-digit royalty based on a percentage of the gross profits of the licensed products sold during the term of the agreements. The Company recognizes such royalty revenue as the related sales occur. The associated royalty revenue recognized was as follows:
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Restructuring and Related Charges |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Charges |
During fiscal 2021 and 2018, the Company launched restructuring programs designed to improve its cost structure, neither of which has a specified time period. Charges of $50.0 million to $100.0 million were provided for under the 2021 program and $100.0 million to $125.0 million were provided for under the 2018 program. The 2021 program will commence upon substantial completion of the 2018 program, and has not commenced as of June 30, 2023 (Successor). Net restructuring and related charges by segment were as follows:
Net restructuring and related charges by program were comprised of the following:
The following table summarizes cash activity for restructuring reserves for the 2018 Program, which primarily related to employee severance and benefits:
As of June 30, 2023 (Successor), net restructuring and related charges incurred cumulative to date for the 2018 Program were as follows:
All of the restructuring reserves were included in accrued and other current liabilities on the Company's unaudited condensed consolidated balance sheets. Amounts paid in the future may differ from the amount currently recorded.
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Income Taxes |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 16, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure |
The Company's income tax expense (benefit) was as follows:
As further discussed in Note 1, the Company concluded that there is substantial doubt about its ability to continue as a going concern within one year from the date of issuance of this report. The Company considered this in determining that certain net deferred tax assets were no longer more likely than not realizable. Therefore, a valuation allowance of $475.5 million was placed on the net deferred tax assets as of the beginning of the year. Additionally, a valuation allowance was recorded to offset the current year deferred tax activity, predominately related to intangible asset amortization, accretion expense associated with our settlement obligations and debt, and inventory step-up amortization expense. As a result, all of the Company’s net deferred tax assets as of the six months ended June 30, 2023 (Successor) are fully offset by a valuation allowance. The Company recognized income tax expense of $528.1 million and $497.3 million on losses from continuing operations before income taxes of $219.7 million and $499.8 million for the three and six months ended June 30, 2023 (Successor), respectively. This resulted in effective tax rates of negative 240.4% and negative 99.5%, respectively. The income tax provision for both the three and six months ended June 30, 2023 (Successor) consisted of deferred income tax expense related to the valuation allowance noted above, recorded against the Company's net deferred tax assets, and current income tax expense related to a decrease in prepaid income taxes. The income tax expense of $528.1 million for the three months ended June 30, 2023 (Successor) consisted of the valuation allowance of $475.5 million placed on the net deferred tax assets as of the beginning of the year that were no longer more likely than not realizable, $29.9 million attributed to the valuation allowance recorded on current year deferred tax activity, $20.9 million attributed to a decrease in prepaid income taxes and $1.8 million predominately attributed to pretax earnings in various jurisdictions. The income tax expense of $497.3 million for the six months ended June 30, 2023 (Successor) consisted of the valuation allowance of $475.5 million placed on the net deferred tax assets as of the beginning of the year that were no longer more likely than not realizable, $20.9 million attributed to a decrease in prepaid income taxes and $2.2 million predominately attributed to pretax earnings in various jurisdictions, offset by $1.3 million attributed to the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. The Company recognized $9.7 million, $491.4 million, and $497.3 million of income tax benefit on $73.4 million, $685.2 million, and $811.3 million of losses from continuing operations before income taxes for the periods from June 17, 2022 through July 1, 2022 (Successor), April 2, 2022 through June 16, 2022 (Predecessor), and January 1, 2022 through June 16, 2022 (Predecessor), respectively. This resulted in effective tax rates of 13.2%, 71.7%, and 61.3%, respectively. The income tax benefit of $9.7 million for the period from June 17, 2022 through July 1, 2022 (Successor) consisted of $8.0 million attributed to pretax earnings in various jurisdictions and $1.7 million attributed to separation costs, reorganization items, net and restructuring charges. The income tax benefit for the period from April 2, 2022 through June 16, 2022 (Predecessor) and the period from January 1, 2022 through June 16, 2022 (Predecessor) primarily consisted of the income tax impacts from reorganization and fresh-start adjustments, including adjustments to the Company's valuation allowance. For the period January 1, 2022 through June 16, 2022 (Predecessor), the Company recorded an income tax benefit of $497.3 million, primarily for reorganization adjustments in the Predecessor period consisting of (1) $1,231.5 million of tax expense for the reduction in federal and state net operating loss (“NOL”) carryforwards from the cancellation of debt income (“CODI”) realized upon emergence and limitations under Sections 382 and 383 of the IRC; (2) $141.3 million of tax expense for the net decrease in deferred tax assets resulting from reorganization adjustments; and (3) $1,270.1 million of tax benefit for the reduction in the valuation allowance on the Company's deferred tax assets; and fresh-start adjustments in the Predecessor period consisting of (4) $297.1 million of tax benefit for the net decrease in deferred tax liabilities resulting from fresh-start adjustments and (5) $285.3 million of tax benefit associated with the release of uncertain tax positions. The remaining tax benefit was attributable to pretax earnings in various jurisdictions during the Predecessor period. During the six months ended June 30, 2023 (Successor), net cash refunds for income taxes were $137.8 million, including refunds of $141.6 million received as a result of provisions in the CARES Act and net payments of $3.8 million related to operational activity. During the period June 17, 2022 through July 1, 2022 (Successor) and the period January 1, 2022 through June 16, 2022 (Predecessor), net cash payments for income taxes were $0.7 million and $3.0 million, respectively. The Company's unrecognized tax benefits, excluding interest, totaled $24.8 million as of both June 30, 2023 (Successor) and December 30, 2022 (Successor). If favorably settled, $15.4 million of unrecognized tax benefits as of June 30, 2023 (Successor) would benefit the effective tax rate. The remaining unrecognized tax benefits are reflected as a write-off of related deferred tax assets. If these unrecognized tax benefits were recognized, the related deferred tax assets would be offset by a valuation allowance. The total amount of accrued interest and penalties related to these obligations was $3.4 million and $2.8 million as of June 30, 2023 (Successor) and December 30, 2022 (Successor), respectively. Within the next twelve months, the unrecognized tax benefits and the related interest and penalties are not expected to significantly change. Certain of the Company's subsidiaries continue to be subject to examination by taxing authorities. The earliest open years subject to examination for both the U.S federal and state jurisdictions and various foreign jurisdictions, including Ireland, Japan, Luxembourg, Switzerland and the United Kingdom is 2013.
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Earnings per Share |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share |
Loss per share is computed by dividing net loss by the number of weighted-average shares outstanding during the period. Dilutive securities, including participating securities, have not been included in the computation of loss per share as the Company reported a net loss from continuing operations during all periods presented below and therefore, the impact would be anti-dilutive. The weighted-average number of shares outstanding used in the computations of both basic and diluted loss per share were as follows (in millions):
The computation of diluted weighted-average shares outstanding for the three and six months ended June 30, 2023 (Successor) excluded approximately zero shares of equity awards. The computation of diluted weighted-average shares outstanding for the period June 17, 2022 through July 1, 2022 (Successor) excluded approximately 3.2 million shares of warrants that were issued on the Effective Date because the effect would have been anti-dilutive. The computation of diluted weighted-average shares outstanding for both the periods April 2, 2022 through June 16, 2022 (Predecessor) and the period January 1, 2022 through June 16, 2022 (Predecessor) excluded approximately 0.5 million shares of equity awards because the effect would have been anti-dilutive, respectively.
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Inventories |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
Inventories were comprised of the following at the end of each period:
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Property, Plant and Equipment |
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Property, Plant and Equipment Disclosure |
The gross carrying amount and accumulated depreciation of property, plant and equipment were comprised of the following at the end of each period:
Depreciation expense was as follows:
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Goodwill and Intangible Assets |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets |
The gross carrying amount and accumulated amortization of intangible assets were comprised of the following at the end of each period:
Intangible asset amortization expense was as follows:
The estimated aggregate amortization expense on intangible assets owned by the Company is expected to be as follows:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure |
Debt was comprised of the following at the end of each period:
As previously disclosed, the Company determined not to make interest payments that were due on June 15, 2023 on its 2028 First Lien Notes and 2029 Second Lien Notes. The failure to make these interest payments constituted an event of default under each such series of notes because such failure continued unremedied after the expiration of the applicable grace period, permitting specified portions of the creditors in respect thereof to accelerate such obligations (which would include a prepayment premium). The occurrence of such events of default, unless promptly cured and absent the 2028 First Lien Notes and the 2029 Second Lien Notes being discharged, also constitute an event of default under the Company’s Term Loans and ABL Credit Agreement, permitting specified portions of the creditors in respect thereof to accelerate the obligations in respect thereof and terminate any applicable commitments to make additional loans under the ABL Credit Agreement. Although, on July 16, 2023, the Company entered into certain forbearance agreements with holders of more than 75% in principal amount of the outstanding 2028 First Lien Notes, holders of a majority in principal amount of each of the 2029 Second Lien Notes and the Term Loans (and the administrative agent with respect to the Term Loans), and the lenders and agents under the ABL Credit Agreement pursuant to which the applicable creditors and agents party thereto have agreed to forbear from exercising any rights or remedies with respect to the above described events of default, such agreements expire on August 15, 2023, and it is possible that such obligations may be accelerated and any applicable commitments to make additional loans under the ABL Credit Agreement may be terminated even before such date, notwithstanding such forbearance agreements. Refer to Note 14 for further information. As a result of the above described events of default, the carrying values of the 2028 First Lien Notes, the 2029 Second Lien Notes, the Term Loans and the ABL Credit Agreement were classified as current on the unaudited condensed consolidated balance sheet as of June 30, 2023 (Successor). The Company's debt instruments are further described within the notes to the financial statements included within the Company's Annual Report on Form 10-K. Applicable interest rate As of June 30, 2023 (Successor), the applicable interest rate and outstanding principal on the Company's debt instruments were as follows:
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Guarantees |
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Jun. 30, 2023 | |||||||||||||
Guarantees [Abstract] | |||||||||||||
Guarantees |
In disposing of assets or businesses, the Company has from time to time provided representations, warranties and indemnities to cover various risks and liabilities, including unknown damage to assets, environmental risks involved in the sale of real estate, liability to investigate and remediate environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities related to periods prior to disposition. The Company assesses the probability of potential liabilities related to such representations, warranties and indemnities and adjusts potential liabilities as a result of changes in facts and circumstances. The Company believes, given the information currently available, that the ultimate resolutions will not have a material adverse effect on its financial condition, results of operations and cash flows. In connection with the sale of the Specialty Chemical business (formerly known as Mallinckrodt Baker) in fiscal 2010, the Company agreed to indemnify the purchaser with respect to various matters, including certain environmental, health, safety, tax and other matters. The indemnification obligations relating to certain environmental, health and safety matters have a term of 17 years from the sale, while some of the other indemnification obligations have an indefinite term. The liability relating to all of these indemnification obligations was governed by a contract that was rejected as part of Chapter 11 and is no longer a liability of the Successor Company. The Company was required to pay $30.0 million into an escrow account as collateral to the purchaser. The contract governing the escrow account was assumed in the Chapter 11 proceedings. As of June 30, 2023 (Successor) and December 30, 2022 (Successor), $19.7 million and $19.3 million remained in restricted cash, included in other long-term assets on the unaudited condensed consolidated balance sheets, respectively. As of June 30, 2023 (Successor), the Company does not expect to make future payments related to these indemnification obligations. As of June 30, 2023 (Successor), the Company had various other letters of credit, guarantees and surety bonds totaling $30.1 million and restricted cash of $38.6 million held in segregated accounts primarily to collateralize surety bonds for the Company's environmental liabilities.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies |
The Company is subject to various legal proceedings and claims, including government investigations, environmental matters, product liability matters, patent infringement claims, antitrust matters, securities class action lawsuits, personal injury claims, employment disputes, contractual and other commercial disputes, and all other legal proceedings, all in the ordinary course of business, including those described below. Although it is not feasible to predict the outcomes of these matters, the Company believes, unless otherwise indicated below, given the information currently available, that their ultimate resolution will not have a material adverse effect on its financial condition, results of operations and cash flows. Governmental Proceedings Acthar Gel-Related Matters SEC Subpoena. In August 2019, the Company received a subpoena from the SEC for documents related to the Company's disclosure of its dispute with the U.S. Department of Health and Human Services ("HHS") and Centers for Medicare and Medicaid Services (together with HHS, the "Agency") concerning the base date average manufacturer price for Acthar® Gel under the Medicaid Drug Rebate Program, which was also the subject of litigation that the Company filed against the Agency. The SEC issued subsequent subpoenas on January 7, 2022 and September 28, 2022, requesting additional documents from the Company. In connection with the investigation, on January 13, 2023, the SEC staff issued Wells Notices to the Company and individuals, including certain of its current and former executive officers, who were employed during 2019 (collectively, the “Individuals”). The notices indicate that the SEC staff has made a preliminary determination to recommend that the SEC file an enforcement action against the Company that would allege violations of the federal securities laws, and against the Individuals that would allege violations of the federal securities laws and/or aiding and abetting violations of the federal securities laws. The recommendation as to the Company may involve an injunction, a cease-and-desist order and/or other appropriate relief. The actions recommended by the SEC staff would allege, among other things, that (a) the Company improperly omitted to disclose the dispute with the Agency prior to the litigation filed by the Company in federal court on May 21, 2019, and (b) the Company’s disclosure of the civil investigative demand received from the U.S. Attorney’s Office for the District of Massachusetts in January 2019 (“Boston CID”) should have stated that the Boston CID related to the Company’s dispute with the Agency. A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law. Under the SEC procedures, a recipient of a Wells Notice has an opportunity to respond and make a submission to the SEC staff setting forth the recipient’s interests and position in regard to the subject matter of the investigation. The Company believes that it has complied with all applicable laws and regulations, and it has provided a submission explaining the Company’s position and its belief that no enforcement action is warranted or appropriate. The Company understands that the Individuals have provided similar submissions to the SEC staff. The outcome of this matter is uncertain, and as a result, the Company is unable to estimate the potential exposure associated with this matter. Commercial and Securities Litigation Putative Class Action Securities Litigation (Continental General). On July 7, 2023, a putative class action lawsuit was filed against the Company, its Chief Executive Officer ("CEO") Sigurdur Olafsson, its Chief Financial Officer ("CFO") Bryan Reasons, and the Chairman of the Board, Paul Bisaro, in the U.S. District Court for the Southern District of New Jersey, captioned Continental General Insurance Company and Percy Rockdale, LLC v. Mallinckrodt plc et al., No. 23-cv-03662. The complaint purports to be brought on behalf of all persons who purchased or otherwise acquired Mallinckrodt's securities between June 17, 2022 and June 14, 2023. The lawsuit generally alleges that the defendants made false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder related to the Company’s business, operations, and prospects, including its financial strength, its ability to timely make certain payments related to Mallinckrodt’s settlement of opioid-related litigation and the risk of additional filings for bankruptcy protection. The lawsuit seeks monetary damages in an unspecified amount. The Company intends to vigorously defend itself in this matter. Local 542. In May 2018, the International Union of Operating Engineers ("IUOE") Local 542 filed a non-class complaint against the Company and other defendants in Pennsylvania state court alleging improper pricing and distribution of Acthar Gel, in violation of Pennsylvania's Unfair Trade Practices and Consumer Protection Law, aiding and abetting, unjust enrichment and negligent misrepresentation captioned as Int'l Union of Operating Engineers Local 542 v. Mallinckrodt ARD Inc., et al. Plaintiff filed an amended complaint in August 2018, the Company's objections to which were denied by the court. In January 2021, the Company removed this case to the U.S. District Court for the Eastern District of Pennsylvania ("EDPA"). In March 2021, the EDPA granted the Company's motion to transfer the case to the District of Delaware and denied without prejudice Local 542's motion to remand the case to state court. In June 2021, the District of Delaware referred this case to the Bankruptcy Court in Delaware. On November 17, 2022, Local 542 filed a motion to withdraw the reference to the District Court, and the case was transferred back to the District of Delaware at Case No. 22-cv-01502. On December 22, 2022, Local 542 filed a request for the motion to withdraw the reference to be decided by the EDPA and to permit remand to state court. On December 28, 2022, the case was assigned to Judge Ambro of the United States Court of Appeals for the Third Circuit due to related cases. On June 27, 2023, the Delaware district court entered an order to withdraw reference of the action to the Delaware bankruptcy court and to transfer the case back to the Eastern District of Pennsylvania in order to be remanded to state court. The Company is discussing its dismissal from the case in light of the Bankruptcy Discharge. The Company will vigorously defend itself in this matter both on the merits and as discharged through the bankruptcy. Patent Litigation Mallinckrodt Pharmaceuticals Ireland Limited et al. v. Airgas Therapeutics LLC et al. On December 30, 2022, the Company initiated litigation against Airgas Therapeutics, LLC, Airgas USA LLC, and Air Liquide S.A. (Collectively "Airgas") in the District of Delaware following notice from Airgas of its abbreviated new drug application ("ANDA") submission seeking approval from the FDA for a generic version of INOmax® (nitric oxide) gas, for inhalation ("INOmax"). The case is at an early stage, with discovery just commencing. At the July 2023 scheduling conference, the court set an initial trial date of March 10, 2025. Airgas's ANDA received final approval from the FDA in July 2023, and according to Airgas' counsel, the original ANDA was filed in April 2011. Many of the patents asserted against Airgas were previously asserted in the District of Delaware against Praxair Distribution, Inc. and Praxair, Inc. (collectively "Praxair") in 2015 and 2016 following Praxair's submissions with FDA seeking approval for a nitric oxide drug product and delivery system. The litigation against Praxair resulted in Praxair's launch of a competitive nitric oxide product. The Company continues to develop and pursue patent protection of next generation nitric oxide delivery systems and additional uses of nitric oxide and intends to vigorously enforce its intellectual property rights against any parties that may seek to market a generic version of the Company's INOmax product and/or next generation delivery systems. Environmental Remediation and Litigation Proceedings The Company is involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites, including those described below. The ultimate cost of site cleanup and timing of future cash outlays is difficult to predict, given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations and alternative cleanup methods. The Company concluded that, as of June 30, 2023 (Successor), it was probable that it would incur remediation costs in the range of $18.1 million to $48.1 million. The Company also concluded that, as of June 30, 2023 (Successor), the best estimate within this range was $36.4 million, of which $1.2 million was included in accrued and other current liabilities and the remainder was included in environmental liabilities on the unaudited condensed consolidated balance sheet as of June 30, 2023 (Successor). While it is not possible at this time to determine with certainty the ultimate outcome of these matters, the Company believes, given the information currently available, that the final resolution of all known claims, after taking into account amounts already accrued, will not have a material adverse effect on its financial condition, results of operations and cash flows. Lower Passaic River, New Jersey. The Company and approximately 70 other companies ("Cooperating Parties Group" or "CPG") are parties to a May 2007 Administrative Order on Consent with the Environmental Protection Agency ("EPA") to perform a remedial investigation and feasibility study ("RI/FS") of the 17-mile stretch known as the Lower Passaic River Study Area (“River”). The Company's potential liability stems from former operations at Lodi and Belleville, New Jersey (the “Lodi facility” and the “Belleville facility” respectively). In April 2014, the EPA issued a revised Focused Feasibility Study ("FFS"), with remedial alternatives to address cleanup of the lower 8-mile stretch of the River. The EPA estimated that the cost for the remediation alternatives ranged from $365.0 million to $3.2 billion and the EPA's preferred approach had an estimated cost of $1.7 billion. In April 2015, the CPG presented a draft of the RI/FS of the River to the EPA that included alternative remedial actions for the entire 17-mile stretch of the River. In March 2016, the EPA issued the Record of Decision ("ROD(s)") for the lower 8 miles of the River with a slight modification on its preferred approach and a revised estimated cost of $1.38 billion. In October 2016, the EPA announced that Occidental Chemicals Corporation had entered into an agreement to develop the remedial design. In August 2018, the EPA finalized a buyout offer of $280,600 with the Company, limited to its former Lodi facility, for the lower 8 miles of the River. In September 2021, the EPA issued the ROD for the upper 9 miles of the River selecting source control as the remedy for the upper 9 miles with an estimated cost of $441.0 million. In September 2022, the Company entered into a conditional $0.3 million Early Cash-Out Consent Decree (“CD”) with the EPA as a buyout for its portion of the upper part of the River related to its former Lodi facility; finalization of the CD is subject to the EPA approval following the public comment period that was extended until a September 22, 2023 court hearing to determine whether the court will hold a Fairness Hearing or whether the EPA will finalize and approve the conditional CD. The portion of the liability related to the Belleville facility was discharged against the Company as a result of the Plan. Any reserves associated with this contingency were included in LSTC as of the Effective Date, and any related liabilities were discharged under the Bankruptcy Code. As of June 30, 2023 (Successor), the Company estimated that its remaining liability related to the River was $21.0 million, which was included within environmental liabilities on the unaudited condensed consolidated balance sheet as of June 30, 2023 (Successor). Despite the issuance of the revised FFS and the RODs for both the lower and upper River by the EPA, the RI/FS by the CPG, and the conditional CD by the EPA, there are many uncertainties associated with the final agreed-upon remediation, potential future liabilities and the Company's allocable share of the remediation. Given those uncertainties, the amounts accrued may not be indicative of the amounts for which the Company may be ultimately responsible and will be refined as the remediation progresses. Hoffmann, et al. v. ASHTA Chemical, Inc., et al. On June 20, 2023, a complaint was filed against several corporations, including Mallinckrodt LLC, by 75 of the corporations' respective former employees and contractors, and certain family members thereof, alleging various tort claims related to alleged injuries resulting from exposure to mercury at a manufacturing facility in Ashtabula, Ohio. The alleged claims (employer intentional tort, negligence, fraudulent concealment and misrepresentation, premises liability, and civil conspiracy) against Mallinckrodt LLC are based on alleged mercury exposure between 1974 to 1982, when an alleged predecessor in interest to Mallinckrodt owned and operated the Ashtabula facility. The Company believes that the claims arose before June 16, 2022 emergence from bankruptcy and therefore were discharged as a result of the Plan, and the plaintiffs are enjoined from bringing an action against Mallinckrodt LLC. The Company is currently in the process of responding to the complaint. Bankruptcy Litigation and Appeals First Lien Noteholder Matters. The Plan reinstated the issuers' 2025 First Lien Notes in an aggregate principal amount of $495.0 million and the note documents relating thereto. Certain holders of the 2025 First Lien Notes and the trustee in respect thereof (collectively, "Noteholder Parties"), objected to the reinstatement, arguing, among other things, that the Company was required to pay a significant make-whole premium as a condition to reinstatement of the 2025 First Lien Notes. In the course of confirming the Plan, the Bankruptcy Court overruled these objections. On March 30, 2022, the Noteholder Parties appealed the confirmation order's approval of the reinstatement of the 2025 First Lien Notes to the United States District Court for the District of Delaware ("District Court"). The Company and the 2025 First Lien Notes trustee reached an agreement to hold the trustee's appeal in abeyance, to be determined by the result of the holders' appeals, subject to certain conditions, which was approved by the District Court. Briefing on the merits of the Noteholder Parties' appeals was completed on July 1, 2022. On the same date, the Company moved to dismiss the Noteholder Parties' appeals as equitably moot. Briefing on the motion was completed on August 5, 2022 and supplemental declarations have been filed in the appeal. Oral argument was held on the Noteholder Parties' appeals on May 5, 2023, and the District Court took the matter under advisement. At this stage, the Company is not able to reasonably estimate the expected amount or range of cost or any loss associated with these appeals. The Company will continue to vigorously defend the Plan. Sanofi. On October 12, 2021, in the Company's bankruptcy, sanofi-aventis U.S. LLC ("Sanofi") filed a motion asking the Bankruptcy Court for an order determining that, under the Bankruptcy Code, the Company could not discharge alleged royalty obligations owed to Sanofi under an asset purchase agreement through which the Company acquired certain intellectual property from Sanofi's predecessor ("Sanofi Motion"). On November 8, 2021, the Bankruptcy Court denied the Sanofi Motion and ordered that any royalty obligations allegedly owed to Sanofi constitute prepetition unsecured claims that may be discharged under the Bankruptcy Code. On November 19, 2021, Sanofi appealed the Bankruptcy Court's ruling of the Sanofi Motion to the District Court. Briefing was completed on March 10, 2022 and the District Court affirmed on December 20, 2022, for which Sanofi filed a notice of appeal on January 17, 2023. Sanofi had also appealed the Bankruptcy Court's confirmation order, but pursuant to the terms of a settlement between Sanofi and the General Unsecured Claims Trustee appointed pursuant to the Plan, Sanofi dismissed its appeal of the confirmation order with prejudice. Banks et al. v. Cotter Corporation et al. v. Mallinckrodt LLC, et al. On January 29, 2023, the named plaintiffs in Banks et al. v. Cotter Corporation et al. v. Mallinckrodt LLC, et al. No. 20-CV-1227 (E.D. Mo.) filed a motion to amend their class-action petition to add Mallinckrodt LLC as a defendant. Mallinckrodt LLC filed a motion in the Bankruptcy Court to enjoin this petition on the grounds that these alleged claims were discharged pursuant to the Plan and confirmation order. Following an April 11, 2023 oral argument on the motion to enjoin, the Bankruptcy Court denied the motion, with the effect being that the named plaintiffs were permitted to proceed with their motion to amend their petition. Under the confirmation order, any liability Mallinckrodt LLC may have in connection with the Banks litigation was discharged upon emergence from Chapter 11, with the limited exception of liability that both was asserted in writing prepetition and is indemnified by the U.S. government. Opioid-related litigation settlement On June 15, 2023, the Company, certain subsidiaries of the Company and the Trust entered into Amendment No. 1 ("Amendment") to that certain opioid deferred cash payments agreement, dated as of June 16, 2022, which was entered into in connection with the Plan. The Amendment extended to June 23, 2023, from June 16, 2023, the date on which the Opioid Deferred Cash Payment is required to be made to the Trust. Since then, pursuant to the Amendment, the Trust has provided several additional written notices that had the effect of extending the due date of the Opioid Deferred Cash Payment to August 15, 2023. Other Matters The Company's legal proceedings and claims are further described within the notes to the financial statements included within the Company's Annual Report on Form 10-K.
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Financial Instruments and Fair Value Measurements |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements |
Fair value is defined as the exit price that would be received from the sale of an asset or paid to transfer a liability, using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes a three-level fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs used in measuring fair value. The levels within the hierarchy are as follows: Level 1— observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2— significant other observable inputs that are observable either directly or indirectly; and Level 3— significant unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. The following tables provide a summary of the significant assets and liabilities that are measured at fair value on a recurring basis at the end of each period:
Debt and equity securities held in rabbi trusts. Debt securities held in rabbi trusts primarily consist of U.S. government and agency securities and corporate bonds. When quoted prices are available in an active market, the investments are classified as level 1. When quoted market prices for a security are not available in an active market, they are classified as level 2. Equity securities held in rabbi trusts primarily consist of U.S. common stocks, which are valued using quoted market prices reported on nationally recognized securities exchanges. Equity securities. Equity securities consist of shares in Silence Therapeutics plc and Panbela Therapeutics, Inc. for which quoted prices are available in an active market; therefore, these investments are classified as level 1 and are valued based on quoted market prices reported on internationally recognized securities exchanges. Interest rate cap. The Company is exposed to interest rate risk on its variable-rate debt. During the three months ended March 31, 2023, the Company entered into an interest rate cap agreement, which serves to reduce the volatility on future interest expense cash outflows. The interest rate cap agreement has a total notional value of $860.0 million with an upfront premium of $20.0 million and provides the Company with interest rate protection (i) for the period March 16, 2023 through July 19, 2023 to the extent that the one-month London Interbank Offered Rate ("LIBOR") exceeds 4.65%, and (ii) for the period July 20, 2023 through March 26, 2026 to the extent that the one-month Secured Overnight Financing Rate ("SOFR") exceeds 3.84%. The interest rate cap agreement qualifies as a cash flow hedge. The premium paid is recognized in income on a rational basis, and changes in the fair value of the interest rate cap are recorded within accumulated other comprehensive income ("AOCI") and are subsequently reclassed into interest expense in the period when the hedged interest affects earnings. The fair value of the interest rate cap is included in other assets on the Company’s unaudited condensed consolidated balance sheet as of June 30, 2023 (Successor). The Company elected to use the income approach to value the interest rate cap derivative using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted) reflecting current market expectations about those future amounts. Level 2 inputs for derivative valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts) and inputs other than quoted prices that are observable such as LIBOR or SOFR rate curves, futures and volatilities. Mid-market pricing is used as a practical expedient in the fair value measurements. During the three and six months ended June 30, 2023 (Successor) the Company recognized an unrealized gain of $11.1 million and $6.1 million, respectively, within AOCI with $0.9 million and $1.2 million, respectively, being reclassified into earnings as a component of interest expense, net. It is expected that over the next 12 months, $6.7 million of the estimated losses in AOCI will be recognized into interest expense, net. The cash payment of the $20.0 million premium and other corresponding activity related to the interest rate cap were reflected as cash flows from operating activities in the unaudited condensed consolidated statement of cash flows for the six months ended June 30, 2023 (Successor). Deferred compensation liabilities. The Company maintains a non-qualified deferred compensation plan in the U.S., which permits eligible employees of the Company to defer a portion of their compensation. A recordkeeping account is set up for each participant and the participant chooses from a variety of funds for the deemed investment of their accounts. The recordkeeping accounts generally correspond to the funds offered in the Company's U.S. tax-qualified defined contribution retirement plan and the account balance fluctuates with the investment returns on those funds. Contingent consideration liabilities. In accordance with the Plan and the Scheme of Arrangement, the Company will provide consideration for a contingent value right ("CVR") associated with Terlivaz® primarily in the form of the achievement of a cumulative net sales milestone. The Company assesses the likelihood and timing of making such payments at each balance sheet date. The fair value of the contingent payment was measured based on the net present value of a probability-weighted assessment. The Company determined the fair value of the Terlivaz CVR as of June 30, 2023 (Successor) and December 30, 2022 (Successor) to be $0.2 million and $7.3 million, respectively. Financial Instruments Not Measured at Fair Value The following methods and assumptions were used by the Company in estimating fair values for financial instruments not measured at fair value as of June 30, 2023 (Successor) and December 30, 2022 (Successor): •The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and the majority of other current assets and liabilities approximate fair value because of their short-term nature. The Company classifies cash on hand and deposits in banks, including commercial paper, money market accounts and other investments it may hold from time to time, with an original maturity of three months or less, as cash and cash equivalents (level 1). The fair value of restricted cash was equivalent to its carrying value of $58.3 million and $57.2 million as of June 30, 2023 (Successor) and December 30, 2022 (Successor) (level 1), respectively. •The Company's life insurance contracts are carried at cash surrender value, which is based on the present value of future cash flows under the terms of the contracts (level 3). Significant assumptions used in determining the cash surrender value include the amount and timing of future cash flows, interest rates and mortality charges. The fair value of these contracts approximates the carrying value of $46.6 million and $46.7 million as of June 30, 2023 (Successor) and December 30, 2022 (Successor), respectively. These contracts are included in other assets on the unaudited condensed consolidated balance sheets. •The Company's 10.00% and 11.50% first and second lien senior secured notes are classified as level 1, as quoted prices are available in an active market for these notes. Since quoted market prices for the Company's term loans are not available in an active market, they are classified as level 2 for purposes of developing an estimate of fair value. The following table presents the carrying values and estimated fair values of the Company's debt as of the end of each period:
Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of accounts receivable. The Company generally does not require collateral from customers. A portion of the Company's accounts receivable outside the U.S. includes sales to government-owned or supported healthcare systems in several countries, which are subject to payment delays. Payment is dependent upon the financial stability and creditworthiness of those countries' national economies. The following table shows net sales attributable to distributors that accounted for 10.0% or more of the Company's total net sales:
* Net sales to this distributor was less than 10.0% of the Company's total net sales for the respective periods presented above. The following table shows accounts receivable attributable to distributors that accounted for 10.0% or more of the Company's gross accounts receivable at the end of each period:
*Accounts receivable attributable to this distributor was less than 10.0% of total gross accounts receivable at the end of the respective period presented above. The following table shows net sales attributable to products that accounted for 10.0% or more of the Company's total net sales:
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Segment Data |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data |
The Company operates in two reportable segments, which are further described below: •Specialty Brands includes innovative specialty pharmaceutical brands; and •Specialty Generics includes niche specialty generic drugs and APIs. Management measures and evaluates the Company's operating segments based on segment net sales and operating income. Management excludes corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management and the chief operating decision maker evaluate the operating results of the segments excluding such items. These items may include, but are not limited to, depreciation and amortization, share-based compensation, net restructuring charges, non-restructuring impairment charges and liabilities management and separation costs. Although these amounts are excluded from segment operating income, as applicable, they are included in reported consolidated operating loss and are reflected in the reconciliations presented below. Selected information by reportable segment was as follows:
(1)Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. (2)Represents costs included in selling, general and administrative ("SG&A") expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence. .
(1)Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. (2)Represents costs included in SG&A expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence. . Net sales by product family within the Company's reportable segments were as follows:
(1)Amitiza consists of both product net sales and royalties. Refer to Note 2 for further details on Amitiza's revenues.
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Subsequent Events |
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Jun. 30, 2023 | |||||||||||||
Subsequent Events [Abstract] | |||||||||||||
Subsequent Events |
Commitments and Contingencies Certain litigation matters occurred on, or prior to, June 30, 2023 (Successor), but had subsequent updates through the date of issuance of this report. See further discussion in Note 11. Debt On June 15, 2023, the Company did not make interest payments that were due on that date on its 2028 First Lien Notes and 2029 Second Lien Notes. As the failure to make these interest payments continued unremedied after the expiration of applicable grace periods, events of default occurred under the 2028 First Lien Notes and 2029 Second Lien Notes, permitting specified portions of the creditors in respect thereof to accelerate the obligations in respect thereof (which would include a prepayment premium). The occurrence of such events of default, unless promptly cured and absent the 2028 First Lien Notes and the 2029 Second Lien Notes being discharged, also constitute an event of default under the Company’s Term Loans and ABL Credit Agreement, permitting specified portions of the creditors in respect thereof to accelerate the obligations and terminate any applicable commitments to make additional loans under the ABL Credit Agreement. On July 13, 2023, ST US AR Finance LLC, a wholly owned subsidiary of the Company, borrowed $100.0 million under the Company's receivables financing facility pursuant to the ABL Credit Agreement in order to maximize cash on hand. On July 16, 2023, certain subsidiaries of the Company entered into forbearance agreements with the holders of (i) more than 75% in principal amount of the outstanding 2028 First Lien Notes ("2028 First Lien Notes Forbearance Agreement") and (ii) a majority in principal amount of the outstanding 2029 Second Lien Notes ("2029 Second Lien Notes Forbearance Agreement"), pursuant to which such noteholders agreed to forbear from exercising any rights and remedies (including any right to accelerate any obligations thereunder) with respect to the events of default arising from the failure to make interest payments in respect thereof that were due and payable on June 15, 2023 (and certain related events of default) until August 15, 2023 unless such forbearance agreements (which contain customary termination events, including the termination of the Credit Agreement Forbearance Agreement (as defined below)) are earlier terminated in accordance with the terms thereof. Also on July 16, 2023, the Company and certain of its subsidiaries entered into a forbearance agreement ("Credit Agreement Forbearance Agreement") with the holders of a majority in principal amount of the outstanding Term Loans outstanding and Acquiom Agency Services LLC and Seaport Loan Products LLC, as co-administrative agents in respect of the Company's Term Loans (together, the "Administrative Agent"), pursuant to which such lenders and the Administrative Agent agreed to forbear from exercising (and such lenders agreed to instruct the Administrative Agent and the collateral agent not to exercise) any rights and remedies (including any right to accelerate any obligations thereunder) with respect to the event of default arising from such failure (and certain related events of default) until August 15, 2023, unless the Credit Agreement Forbearance Agreement (which contains customary termination events, including the termination of either the 2028 First Lien Notes Forbearance Agreement or the 2029 Second Lien Notes Forbearance Agreement) is earlier terminated in accordance with the terms thereof. Also on July 16, 2023, ST US AR Finance LLC entered into a forbearance agreement ("ABL Forbearance Agreement") with the Required Lenders (as defined in the ABL Credit Agreement) under such facility and with Barclays Bank plc, as administrative agent and collateral agent thereunder ("ABL Agent"), pursuant to which such lenders and the ABL Agent agreed to forbear from exercising (and such lenders agreed to instruct the ABL Agent not to exercise) any rights or remedies (including any right to accelerate any obligations thereunder) with respect to any of the foregoing events of default (and certain related events of default) until August 15, 2023, unless the ABL Forbearance Agreement (which contains customary termination events, including the termination of the 2028 First Lien Notes Forbearance Agreement, the 2029 Second Lien Notes Forbearance Agreement or the Credit Agreement Forbearance Agreement) is earlier terminated in accordance with the terms thereof. Pursuant to the terms of the ABL Forbearance Agreement, the ABL Credit Agreement was amended so as to increase the applicable margin (which is determined by a pricing grid) by 1.00% and to cap availability under the ABL Credit Agreement (inclusive of the borrowing made on July 13, 2023) at $100.0 million, as a result of which the Company no longer has additional borrowing availability under the ABL Credit Agreement. In connection with the ABL Forbearance Agreement, on July 16, 2023, certain of the Company's subsidiaries entered into an Acknowledgment and Release ("Acknowledgment and Release"), pursuant to which such subsidiaries waived, released and discharged, for themselves and on behalf of their subsidiaries and controlled affiliates, any and all claims against the ABL Agent, the lenders party to the ABL Credit Agreement and the other Released Parties (as defined in the Acknowledgment and Release) in connection with or related to the ABL Credit Agreement, the other Loan Documents (as defined in the ABL Credit Agreement), the Collateral (as defined in the ABL Credit Agreement) or the negotiation and execution of the ABL Forbearance Agreement.
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Revenue from Contracts with Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Reserves Rollforward | The following table reflects activity in the Company's sales reserve accounts:
(1)Includes $91.3 million and $89.3 million of accrued Medicaid and $36.4 million and $55.3 million of accrued rebates as of June 30, 2023 (Successor) and December 30, 2022 (Successor), respectively, included within accrued and other current liabilities in the unaudited condensed consolidated balance sheets.
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Disaggregation of Revenue | Product sales transferred to customers at a point in time and over time were as follows:
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Contract with Customer, Timing of Satisfaction of Performance Obligation and Payment | The following table includes estimated revenue from contracts extending greater than one year for certain of the Company's hospital products that are expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of June 30, 2023 (Successor):
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Restructuring and Related Charges (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Charges by Segment | Net restructuring and related charges by segment were as follows:
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Schedule of Net Restructuring and Related Charges | Net restructuring and related charges by program were comprised of the following:
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Schedule of Restructuring Reserves Reconciliation by Program | The following table summarizes cash activity for restructuring reserves for the 2018 Program, which primarily related to employee severance and benefits:
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Schedule of Restructuring Charges Incurred Cumulative to Date | As of June 30, 2023 (Successor), net restructuring and related charges incurred cumulative to date for the 2018 Program were as follows:
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The Company's income tax expense (benefit) was as follows:
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Earnings per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings per Share | The weighted-average number of shares outstanding used in the computations of both basic and diluted loss per share were as follows (in millions):
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories were comprised of the following at the end of each period:
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Property, Plant and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | The gross carrying amount and accumulated depreciation of property, plant and equipment were comprised of the following at the end of each period:
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Depreciation of Fixed Assets | Depreciation expense was as follows:
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Goodwill and Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | The gross carrying amount and accumulated amortization of intangible assets were comprised of the following at the end of each period:
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Intangible Asset Amortization Expense | Intangible asset amortization expense was as follows:
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Schedule of Future Amortization Expense, Intangible Assets | The estimated aggregate amortization expense on intangible assets owned by the Company is expected to be as follows:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt including Capital Lease Obligation | Debt was comprised of the following at the end of each period:
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Schedule of Applicable Interest Rate on Variable-rate Debt | As of June 30, 2023 (Successor), the applicable interest rate and outstanding principal on the Company's debt instruments were as follows:
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Financial Instruments and Fair Value Measurements (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following tables provide a summary of the significant assets and liabilities that are measured at fair value on a recurring basis at the end of each period:
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Schedule of Carrying Amount and Fair Value of Long-term Debt | The following table presents the carrying values and estimated fair values of the Company's debt as of the end of each period:
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Schedules of Concentration of Risk | The following table shows net sales attributable to distributors that accounted for 10.0% or more of the Company's total net sales:
* Net sales to this distributor was less than 10.0% of the Company's total net sales for the respective periods presented above. The following table shows accounts receivable attributable to distributors that accounted for 10.0% or more of the Company's gross accounts receivable at the end of each period:
*Accounts receivable attributable to this distributor was less than 10.0% of total gross accounts receivable at the end of the respective period presented above. The following table shows net sales attributable to products that accounted for 10.0% or more of the Company's total net sales:
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Segment Data (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information by Reportable Segment | Selected information by reportable segment was as follows:
(1)Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. (2)Represents costs included in selling, general and administrative ("SG&A") expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence. .
(1)Includes administration expenses and certain compensation, legal, environmental and other costs not charged to the Company's reportable segments. (2)Represents costs included in SG&A expenses, primarily related to professional fees incurred by the Company (including where the Company is responsible for the fees of third parties) in connection with its ongoing evaluation of its financial situation and related discussions with its stakeholders, expenses incurred related to the Predecessor directors' and officers' insurance policy and severance for the former CEO of the Predecessor, in addition to professional fees and costs incurred as the Company explores potential sales of non-core assets to enable further deleveraging post-emergence. .
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Schedule of Net Sales from External Customers by Products | Net sales by product family within the Company's reportable segments were as follows:
(1)Amitiza consists of both product net sales and royalties. Refer to Note 2 for further details on Amitiza's revenues.
(1)Amitiza consists of both product net sales and royalties. Refer to Note 2 for further details on Amitiza's revenues.
|
Background and Basis of Presentation Background and Basis of Presentation (Details) - USD ($) $ in Millions |
1 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 16, 2023 |
|
Schedule of Basis of Preperation [Line Items] | ||||
Cash Paid, Reorganization items | $ 0.0 | $ 14.6 | $ 304.1 | |
Opioid-Related Settlement, Payment Year One | $ 200.0 |
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Dec. 30, 2022 |
Dec. 31, 2021 |
|||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue Reserves | $ 263.4 | $ 264.5 | $ 276.9 | $ 264.5 | $ 276.9 | $ 294.0 | $ 272.8 | ||
Revenue Reserve Provision | 70.5 | 752.8 | 715.7 | ||||||
Revenue Reserve Payments or Credits | (84.0) | (782.3) | (711.6) | ||||||
Net sales | $ 85.0 | 475.0 | $ 383.7 | 899.6 | $ 874.6 | ||||
Accrued Medicaid | 91.3 | 91.3 | 89.3 | ||||||
Accrued rebates | $ 36.4 | $ 36.4 | 55.3 | ||||||
Transferred at Point in Time [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue | 83.80% | 83.60% | 82.40% | 82.00% | 80.80% | ||||
Transferred over Time [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue | 16.20% | 16.40% | 17.60% | 18.00% | 19.20% | ||||
Royalty [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Net sales | $ 3.0 | $ 0.4 | $ 14.9 | $ 3.8 | $ 34.9 | ||||
Rebates and Chargebacks [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue Reserves | [1] | 237.7 | 243.0 | 250.6 | 243.0 | 250.6 | 265.3 | 241.8 | |
Revenue Reserve Provision | [1] | 68.5 | 726.0 | 693.4 | |||||
Revenue Reserve Payments or Credits | [1] | (81.4) | (748.3) | (684.6) | |||||
Allowance for Sales Returns [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue Reserves | 18.4 | 13.2 | 18.6 | 13.2 | 18.6 | 16.0 | 21.5 | ||
Revenue Reserve Provision | 0.5 | 5.8 | 5.2 | ||||||
Revenue Reserve Payments or Credits | (0.7) | (8.6) | (8.1) | ||||||
Other Sales Deductions [Member] | |||||||||
Disaggregation of Revenue [Line Items] | |||||||||
Revenue Reserves | 7.3 | $ 8.3 | $ 7.7 | 8.3 | 7.7 | $ 12.7 | $ 9.5 | ||
Revenue Reserve Provision | 1.5 | 21.0 | 17.1 | ||||||
Revenue Reserve Payments or Credits | $ (1.9) | $ (25.4) | $ (18.9) | ||||||
|
Restructuring and Related Charges (Narrative) (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Dec. 01, 2021 |
Feb. 01, 2018 |
|
Restructuring Cost and Reserve | |||||||
Restructuring charges, net | $ 1.1 | $ (0.2) | $ 2.8 | $ 1.0 | $ 9.6 | ||
Restructuring Fiscal 2018 Plan | Minimum | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring and Related Cost, Expected Cost | $ 100.0 | ||||||
Restructuring Fiscal 2018 Plan | Maximum | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring and Related Cost, Expected Cost | $ 125.0 | ||||||
Restructuring Fiscal 2021 Plan | Minimum | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring and Related Cost, Expected Cost | $ 50.0 | ||||||
Restructuring Fiscal 2021 Plan | Maximum | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring and Related Cost, Expected Cost | $ 100.0 |
Restructuring and Related Charges (Schedule of Restructuring and Related Charges by Segment) (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
|
Restructuring Cost and Reserve | |||||
Restructuring and related charges, net | $ 1.1 | $ 1.7 | $ 9.6 | ||
Restructuring and Related Cost, Accelerated Depreciation | 0.0 | (0.7) | 0.0 | ||
Restructuring charges, net | 1.1 | $ (0.2) | $ 2.8 | 1.0 | 9.6 |
Specialty Generics | |||||
Restructuring Cost and Reserve | |||||
Restructuring and related charges, net | 0.0 | 0.0 | 3.5 | ||
Corporate | |||||
Restructuring Cost and Reserve | |||||
Restructuring and related charges, net | $ 1.1 | $ (0.2) | $ 2.8 | $ 1.7 | $ 6.1 |
Restructuring and Related Charges (Schedule of Net Restructuring and Related Charges) (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
|
Restructuring Cost and Reserve | |||||
Restructuring and related charges, net | $ 1.1 | $ 1.7 | $ 9.6 | ||
Restructuring and Related Costs, Non-cash Charges, Including Accelerated Depreciation | (0.2) | $ 0.0 | $ (1.5) | (0.8) | (3.6) |
Total charges expected to be settled in cash | 0.9 | (0.2) | 1.3 | 0.9 | 6.0 |
Restructuring Fiscal 2018 Plan | |||||
Restructuring Cost and Reserve | |||||
Restructuring and related charges, net | $ 1.1 | $ (0.2) | $ 2.8 | $ 1.7 | $ 9.6 |
Restructuring and Related Charges (Schedule of Restructuring Reserves by Type of Cost) (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
|
Restructuring Reserve [Roll Forward] | |||||
Total Restructuring And Related Expense | $ 1.1 | $ 1.7 | $ 9.6 | ||
Restructuring and Related Costs, Non-cash Charges, Including Accelerated Depreciation | (0.2) | $ 0.0 | $ (1.5) | (0.8) | (3.6) |
Restructuring and Related Costs, Total Charges Expected to be Settled in Cash | 0.9 | (0.2) | 1.3 | 0.9 | 6.0 |
Restructuring Fiscal 2018 Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Total Restructuring And Related Expense | $ 1.1 | (0.2) | $ 2.8 | 1.7 | $ 9.6 |
Continuing Operations | Restructuring Fiscal 2018 Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 4.6 | ||||
Charges from continuing operations | 1.2 | ||||
Changes in estimate from continuing operations | (0.3) | ||||
Cash payments | (5.3) | ||||
Ending Balance | $ 0.2 | $ 0.2 |
Restructuring and Related Charges (Schedule of Restructuring Charges Incurred Cumulative to Date) (Details) - Restructuring Fiscal 2018 Plan - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 16, 2022 |
---|---|---|
Restructuring Cost and Reserve | ||
Restructuring costs incurred cumulative to date | $ 13.8 | $ 105.6 |
Specialty Brands | ||
Restructuring Cost and Reserve | ||
Restructuring costs incurred cumulative to date | 0.0 | 3.1 |
Specialty Generics | ||
Restructuring Cost and Reserve | ||
Restructuring costs incurred cumulative to date | 0.8 | 18.5 |
Corporate | ||
Restructuring Cost and Reserve | ||
Restructuring costs incurred cumulative to date | $ 13.0 | $ 84.0 |
Earnings per Share (Details) - shares shares in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
|
Earnings Per Share | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.2 | 0.0 | 0.5 | 0.0 | 0.5 |
Weighted-average shares outstanding - basic (in shares) | 13.2 | 13.2 | 84.8 | 13.2 | 84.8 |
Weighted-average shares outstanding - diluted (in shares) | 13.2 | 13.2 | 84.8 | 13.2 | 84.8 |
Inventories (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 30, 2022 |
---|---|---|
Raw materials and supplies | $ 102.2 | $ 80.2 |
Work in process | 485.9 | 552.1 |
Finished goods | 272.4 | 315.3 |
Inventory, Net, Total | $ 860.5 | $ 947.6 |
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 30, 2022 |
---|---|---|
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 503.0 | $ 485.0 |
Less: accumulated depreciation | (49.8) | (27.4) |
Property, plant and equipment, net | $ 453.2 | $ 457.6 |
Property, Plant and Equipment Depreciation (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
|
Property, Plant and Equipment | |||||
Depreciation | $ 2.9 | $ 11.8 | $ 17.9 | $ 23.7 | $ 40.0 |
Depreciation | $ 2.9 | $ 11.8 | $ 17.9 | $ 23.7 | $ 40.0 |
Goodwill and Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Dec. 30, 2022 |
|
Schedule of Intangible Asset by Major Class [Line Items] | ||||||
Intangible assets, net | $ 2,581.3 | $ 2,581.3 | $ 2,843.8 | |||
Amortization of Intangible Assets | $ 45.5 | $ 129.3 | $ 126.7 | $ 262.5 | $ 281.8 | |
Loss from continuing operations | $ (4.83) | $ (56.74) | $ (2.29) | $ (75.68) | $ (3.70) | |
In-process Research and Development | ||||||
Schedule of Intangible Asset by Major Class [Line Items] | ||||||
Non-Amortizable intangible assets, gross | $ 121.3 | $ 121.3 | 121.3 | |||
Completed Technology | ||||||
Schedule of Intangible Asset by Major Class [Line Items] | ||||||
Amortizable intangible assets, gross | 3,041.2 | 3,041.2 | 3,041.2 | |||
Accumulated amortization | $ 581.2 | $ 581.2 | $ 318.7 |
Goodwill and Intangible Assets (Schedule of Intangible Asset Amortization Expense) (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of Intangible Assets | $ 45.5 | $ 129.3 | $ 126.7 | $ 262.5 | $ 281.8 |
Goodwill and Intangible Assets (Schedule of Future Amortization Expense, Intangible Assets) (Details) $ in Millions |
Jun. 30, 2023
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2023 | $ 246.7 |
Fiscal 2024 | 446.1 |
Fiscal 2025 | 385.1 |
Fiscal 2026 | 337.5 |
Fiscal 2027 | $ 284.4 |
Debt (Narrative) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 30, 2022 |
Jun. 16, 2022 |
---|---|---|---|
Debt Instrument | |||
Debt Instrument, Face Amount | $ 3,512.0 | $ 3,534.1 | |
10.00% First Lien Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Face Amount | $ 495.0 | ||
2017 Replacement Term Loan | |||
Debt Instrument | |||
Debt Instrument, Face Amount | 1,356.7 | ||
2018 Replacement Term Loan | |||
Debt Instrument | |||
Debt Instrument, Face Amount | $ 360.1 |
Guarantees (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 30, 2022 |
---|---|---|
Others | ||
Guarantor Obligations [Line Items] | ||
Maximum future payments | $ 30.1 | |
Asset Pledged as Collateral [Member] | ||
Guarantor Obligations [Line Items] | ||
Restricted Cash | 38.6 | |
Mallinckrodt Baker | Indemnification Agreement | ||
Guarantor Obligations [Line Items] | ||
Escrow Deposit | 30.0 | |
Mallinckrodt Baker | Indemnification Agreement | Other current and non-current assets | ||
Guarantor Obligations [Line Items] | ||
Escrow Deposit | $ 19.7 | $ 19.3 |
Commitments and Contingencies (Narrative) (Details) |
May 01, 2007
Defendent
|
Jun. 30, 2023
USD ($)
|
Dec. 30, 2022
USD ($)
|
Sep. 09, 2022
USD ($)
|
Jun. 16, 2022
USD ($)
|
Sep. 28, 2021
USD ($)
|
Dec. 27, 2019
USD ($)
|
Aug. 07, 2018
USD ($)
|
Apr. 11, 2014
USD ($)
|
---|---|---|---|---|---|---|---|---|---|
Loss Contingencies [Line Items] | |||||||||
Environmental liabilities | $ 36,400,000 | ||||||||
Environmental liabilities, current | 1,200,000 | ||||||||
Environmental liabilities | 35,200,000 | $ 35,800,000 | |||||||
Debt Instrument, Face Amount | 3,512,000,000 | $ 3,534,100,000 | |||||||
Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Number of Defendants | Defendent | 70 | ||||||||
Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | $ 1,380,000,000 | $ 1,700,000,000 | |||||||
Loss Contingency, Settlement Agreement, Amount | $ 300,000 | $ 280,600 | |||||||
Upper 9 Miles, Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | 21,000,000 | $ 441,000,000 | |||||||
Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | 18,100,000 | ||||||||
Minimum | Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | 365,000,000 | ||||||||
Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | $ 48,100,000 | ||||||||
Maximum | Lower Passaic River, New Jersey | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Estimate of Possible Loss | $ 3,200,000,000 | ||||||||
10.00% First Lien Senior Notes | |||||||||
Loss Contingencies [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 495,000,000 |
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
Mar. 13, 2023 |
Dec. 30, 2022 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative, Notional Amount | $ 860.0 | |||
Derivative, Interest Rate Cap, Premium | $ 20.0 | |||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), Reclassification, before Tax | 0.9 | $ 1.2 | ||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | 11.1 | 6.1 | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 6.7 | 6.7 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative, Cap Interest Rate | 3.84% | |||
London Interbank Offered Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative, Cap Interest Rate | 4.65% | |||
Level 3 | Other current and non-current assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Cash surrender value of life insurance | 46.6 | 46.6 | $ 46.7 | |
Indemnification Agreement | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Restricted Cash and Cash Equivalents | $ 58.3 | $ 58.3 | $ 57.2 |
Financial Instruments and Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 30, 2022 |
---|---|---|
Assets: | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 23.8 | |
Other Assets, Fair Value Disclosure | 9.1 | $ 25.5 |
Assets, Fair Value Disclosure | 72.0 | 62.1 |
Level 1 | Indemnification Agreement | ||
Liabilities: | ||
Restricted Cash and Cash Equivalents | 58.3 | 57.2 |
Recurring | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 39.1 | 36.6 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 18.7 | 26.0 |
Contingent consideration and acquired contingent liabilities | 0.2 | 7.3 |
Total liabilities at fair value | 18.9 | 33.3 |
Recurring | Level 1 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 26.5 | 24.8 |
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 0.0 | |
Other Assets, Fair Value Disclosure | 9.1 | 25.5 |
Assets, Fair Value Disclosure | 35.6 | 50.3 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 0.0 | 0.0 |
Contingent consideration and acquired contingent liabilities | 0.0 | 0.0 |
Total liabilities at fair value | 0.0 | 0.0 |
Recurring | Level 2 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 12.6 | 11.8 |
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 23.8 | |
Other Assets, Fair Value Disclosure | 0.0 | 0.0 |
Assets, Fair Value Disclosure | 36.4 | 11.8 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 18.7 | 26.0 |
Contingent consideration and acquired contingent liabilities | 0.0 | 0.0 |
Total liabilities at fair value | 18.7 | 26.0 |
Recurring | Level 3 | ||
Assets: | ||
Rabbi Trust Investments, Fair Value Disclosure | 0.0 | 0.0 |
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 0.0 | |
Other Assets, Fair Value Disclosure | 0.0 | 0.0 |
Assets, Fair Value Disclosure | 0.0 | 0.0 |
Liabilities: | ||
Deferred Compensation Liability, Fair Value | 0.0 | 0.0 |
Contingent consideration and acquired contingent liabilities | 0.2 | 7.3 |
Total liabilities at fair value | $ 0.2 | $ 7.3 |
Financial Instruments and Fair Value Measurements (Schedule of Carrying Amount and Fair Value of Long-term Debt) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 30, 2022 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | $ 2,381.2 | $ 44.1 |
Total debt, fair value | 2,359.5 | 2,684.6 |
Long-term Debt | 737.6 | 3,048.5 |
Total Debt | 3,118.8 | 3,092.6 |
10.00% Second Lien Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 60.3 | 216.8 |
Long-term Debt | 257.6 | 242.2 |
10.00% First Lien Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total debt, fair value | 389.8 | 425.9 |
Long-term Debt | 480.0 | 475.9 |
Eleven Point Five Percent First Lien Senior Secured Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 650.0 | 0.0 |
Total debt, fair value | 557.9 | 552.6 |
Long-term Debt | 0.0 | 650.0 |
Ten Point Zero Percent Second Lien Notes due 2029 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 184.1 | 0.0 |
Total debt, fair value | 52.7 | 176.7 |
Long-term Debt | 0.0 | 175.5 |
2017 Replacement Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 1,220.8 | 34.8 |
Total debt, fair value | 1,026.2 | 1,037.8 |
Long-term Debt | 0.0 | 1,187.3 |
Total Debt | 1,220.8 | 1,222.1 |
2018 Replacement Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term Debt, Current Maturities | 326.3 | 9.3 |
Total debt, fair value | 272.6 | 274.8 |
Long-term Debt | 0.0 | 317.6 |
Total Debt | $ 326.3 | $ 326.9 |
Financial Instruments and Fair Value Measurements (Schedules of Concentration of Risk) (Details) |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
|
Distributor Concentration Risk | Revenue from Contract with Customer Benchmark [Member] | CuraScript, Inc | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 15.60% | |||||
Distributor Concentration Risk | Revenue from Contract with Customer Benchmark [Member] | FFF Enterprises, Inc. | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 23.60% | 23.80% | 26.90% | 21.40% | 11.80% | |
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | Amerisource Bergen Corporation [Member] | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 24.50% | 23.30% | ||||
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | McKesson Corporation [Member] | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 21.60% | 17.30% | ||||
Distributor Concentration Risk | Accounts Receivable Attributable to Distributors | FFF Enterprises, Inc. | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 16.20% | |||||
Product Concentration Risk | Net Sales Attributable to Products | Acthar | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 32.40% | 24.60% | 24.60% | 22.10% | 25.40% | |
Product Concentration Risk | Net Sales Attributable to Products | Inomax | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 15.80% | 16.20% | 17.40% | 17.70% | 19.00% | |
Product Concentration Risk | Net Sales Attributable to Products | Therakos [Member] | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 12.00% | 13.20% | 13.00% | 13.50% | 12.50% | |
Product Concentration Risk | Net Sales Attributable to Products | APAP | ||||||
Concentration Risk | ||||||
Concentration Risk, Percentage | 13.30% | 12.60% | 13.10% | 11.80% | 11.00% |
Segment Data (Schedule of Segment Reporting Information by Business Segment) (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
||||||||||||||
Net sales | $ 85.0 | $ 475.0 | $ 383.7 | $ 899.6 | $ 874.6 | |||||||||||||
Operating Income (Loss) | (54.8) | (56.6) | (37.0) | (159.2) | (57.8) | |||||||||||||
Depreciation and amortization | (45.5) | (129.3) | (126.7) | (262.5) | (281.8) | |||||||||||||
Employee Benefits and Share-based Compensation | 0.0 | (2.7) | (0.5) | (5.3) | (1.7) | |||||||||||||
Restructuring and related charges, net | (1.1) | (1.7) | (9.6) | |||||||||||||||
Specialty Generics | ||||||||||||||||||
Net sales | 26.8 | 194.9 | 136.0 | 367.5 | 287.5 | |||||||||||||
Restructuring and related charges, net | 0.0 | 0.0 | (3.5) | |||||||||||||||
Corporate, Non-Segment | ||||||||||||||||||
Corporate and unallocated expenses | (0.9) | [1] | 0.6 | [2] | (15.4) | [2] | (13.4) | [1] | (48.2) | [1] | ||||||||
Depreciation and amortization | (48.4) | (141.1) | (144.6) | (286.2) | (321.8) | |||||||||||||
Restructuring and related charges, net | (1.1) | 0.2 | (2.8) | (1.0) | (9.6) | |||||||||||||
Separation Costs | (9.2) | [3],[4] | (10.3) | [4] | (7.0) | [4] | (15.2) | [3] | (9.0) | [3] | ||||||||
Operating Segments | ||||||||||||||||||
Operating Income (Loss) | 4.8 | 96.7 | 133.3 | 161.9 | 332.5 | |||||||||||||
Operating Segments | Specialty Brands | ||||||||||||||||||
Net sales | 58.2 | 280.1 | 247.7 | 532.1 | 587.1 | |||||||||||||
Operating Income (Loss) | 4.5 | 61.6 | 102.4 | 94.0 | 267.2 | |||||||||||||
Operating Segments | Specialty Generics | ||||||||||||||||||
Net sales | 26.8 | 194.9 | 136.0 | 367.5 | 287.5 | |||||||||||||
Operating Income (Loss) | $ 0.3 | $ 35.1 | $ 30.9 | $ 67.9 | $ 65.3 | |||||||||||||
|
Segment Data (Schedule of Net Sales from External Customers by Products) (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jul. 01, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
Jun. 30, 2023 |
Jun. 16, 2022 |
|||
Segment Reporting Information | |||||||
Net sales | $ 85.0 | $ 475.0 | $ 383.7 | $ 899.6 | $ 874.6 | ||
Specialty Brands | Operating Segments | |||||||
Segment Reporting Information | |||||||
Net sales | 58.2 | 280.1 | 247.7 | 532.1 | 587.1 | ||
Specialty Generics | |||||||
Segment Reporting Information | |||||||
Net sales | 26.8 | 194.9 | 136.0 | 367.5 | 287.5 | ||
Specialty Generics | Operating Segments | |||||||
Segment Reporting Information | |||||||
Net sales | 26.8 | 194.9 | 136.0 | 367.5 | 287.5 | ||
Acthar | Specialty Brands | |||||||
Segment Reporting Information | |||||||
Net sales | 27.5 | 116.8 | 94.2 | 198.8 | 221.9 | ||
Inomax | Specialty Brands | |||||||
Segment Reporting Information | |||||||
Net sales | 13.5 | 76.9 | 66.8 | 159.6 | 165.8 | ||
Therakos immunotherapy | Specialty Brands | |||||||
Segment Reporting Information | |||||||
Net sales | 10.2 | 62.9 | 49.7 | 121.6 | 109.6 | ||
Amitiza [Member] | Specialty Brands | |||||||
Segment Reporting Information | |||||||
Net sales | [1] | 5.8 | 18.6 | 33.8 | 43.1 | 81.5 | |
Other | Specialty Brands | |||||||
Segment Reporting Information | |||||||
Net sales | 1.2 | 1.5 | 3.2 | 3.4 | 8.3 | ||
Opioids | Specialty Generics | |||||||
Segment Reporting Information | |||||||
Net sales | 8.7 | 72.1 | 38.8 | 134.3 | 88.8 | ||
ADHD | Specialty Generics | |||||||
Segment Reporting Information | |||||||
Net sales | 1.8 | 19.0 | 6.8 | 41.4 | 17.5 | ||
Addiction Treatment | Specialty Generics | |||||||
Segment Reporting Information | |||||||
Net sales | 2.5 | 16.1 | 14.1 | 31.7 | 30.0 | ||
Other Generics | Specialty Generics | |||||||
Segment Reporting Information | |||||||
Net sales | 0.1 | 2.4 | 2.0 | 4.2 | 4.9 | ||
Generics | Specialty Generics | |||||||
Segment Reporting Information | |||||||
Net sales | 13.1 | 109.6 | 61.7 | 211.6 | 141.2 | ||
Controlled substances | Specialty Generics | |||||||
Segment Reporting Information | |||||||
Net sales | 1.7 | 20.9 | 17.2 | 39.4 | 37.6 | ||
APAP | Specialty Generics | |||||||
Segment Reporting Information | |||||||
Net sales | 11.3 | 59.8 | 50.2 | 106.2 | 96.5 | ||
Other API | Specialty Generics | |||||||
Segment Reporting Information | |||||||
Net sales | 0.7 | 4.6 | 6.9 | 10.3 | 12.2 | ||
API | Specialty Generics | |||||||
Segment Reporting Information | |||||||
Net sales | 13.7 | 85.3 | 74.3 | 155.9 | 146.3 | ||
Terlivaz | Specialty Brands | |||||||
Segment Reporting Information | |||||||
Net sales | $ 0.0 | $ 3.4 | $ 0.0 | $ 5.6 | $ 0.0 | ||
|
Subsequent Events (Details) $ in Millions |
Jul. 13, 2023
USD ($)
|
---|---|
Subsequent Event [Member] | Receivables financing facility due June 2026 | |
Subsequent Event [Line Items] | |
Proceeds from (Repayments of) Debt | $ 100.0 |
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