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Segment Results (Tables)
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Schedule of reportable segments information
The following represents selected information for the Company’s reportable segments for the three months ended March 31, 2016 and 2015 (in thousands):
 
Three Months Ended March 31,
 
2016
 
2015
Net revenues to external customers:
 
 
 
U.S. Branded Pharmaceuticals
$
308,813

 
$
284,507

U.S. Generic Pharmaceuticals
583,390

 
356,962

International Pharmaceuticals (1)
71,336

 
72,659

Total net revenues to external customers
$
963,539

 
$
714,128

 
 
 
 
Adjusted income from continuing operations before income tax:
 
 
 
U.S. Branded Pharmaceuticals
$
168,781

 
$
158,794

U.S. Generic Pharmaceuticals
$
211,768

 
$
183,457

International Pharmaceuticals
$
21,754

 
$
16,567

__________
(1)
Revenues generated by our International Pharmaceuticals segment are primarily attributable to Canada, Mexico and South Africa.
Schedule of reconciliations of consolidated adjusted income before income tax
The table below provides reconciliations of our segment adjusted income from continuing operations before income tax to our consolidated loss from continuing operations before income tax, which is determined in accordance with U.S. GAAP, for the three months ended March 31, 2016 and 2015 (in thousands):
 
Three Months Ended March 31,
 
2016
 
2015
Total segment adjusted income from continuing operations before income tax:
$
402,303

 
$
358,818

Corporate unallocated costs (1)
(153,073
)
 
(111,068
)
Upfront and milestone payments to partners
(1,417
)
 
(2,667
)
Asset impairment charges (2)
(129,625
)
 
(7,000
)
Acquisition-related and integration items (3)
(12,554
)
 
(34,640
)
Separation benefits and other cost reduction initiatives (4)
(38,456
)
 
(41,807
)
Amortization of intangible assets
(211,669
)
 
(95,269
)
Inventory step-up and certain manufacturing costs that will be eliminated pursuant to integration plans
(68,476
)
 
(39,916
)
Non-cash interest expense related to the 1.75% Convertible Senior Subordinated Notes
—

 
(1,379
)
Loss on extinguishment of debt
—

 
(980
)
Impact of Voltaren® Gel generic competition
7,750

 
—

Certain litigation-related charges, net (5)
(5,200
)
 
(13,000
)
Costs associated with unused financing commitments
—

 
(11,810
)
Acceleration of Auxilium employee equity awards at closing
—

 
(37,603
)
Foreign currency impact related to the remeasurement of intercompany debt instruments
(1,255
)
 
21,090

Other, net
4,194

 
854

Total consolidated loss from continuing operations before income tax
$
(207,478
)
 
$
(16,377
)
__________
(1)
Corporate unallocated costs include certain corporate overhead costs, interest expense, net, and certain other income and expenses.
(2)
Asset impairment charges primarily related to charges to write down intangible assets as further described in Note 9. Goodwill and Other Intangibles.
(3)
Acquisition-related and integration-items include costs directly associated with previous acquisitions of $23.2 million for the three months ended March 31, 2016 and $35.4 million for the comparable 2015 period. During 2016 and 2015, these costs are net of a benefit due to changes in the fair value of contingent consideration of $10.7 million and $0.8 million, respectively.
(4)
Separation benefits and other cost reduction initiatives include charges to increase excess inventory reserves of $26.9 million related to the 2016 U.S. Generic Pharmaceuticals restructuring initiative, employee separation costs of $6.8 million and other restructuring costs of $4.4 million for the three months ended March 31, 2016. Amounts in the comparable 2015 period include employee separation costs of $32.4 million and a $7.9 million charge recorded upon the cease use date of our Auxilium subsidiary’s former corporate headquarters, representing the liability for our remaining obligations under the respective lease agreement, net of estimated sublease income. These amounts were primarily recorded as Selling, general and administrative expense in our Condensed Consolidated Statements of Operations. See Note 4. Restructuring for discussion of our material restructuring initiatives.
(5)
These amounts include charges for Litigation-related and other contingencies, net as further described in Note 12. Commitments and Contingencies.