10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                        to                       

Commission file number 001-38485

Amneal Pharmaceuticals, Inc.

(Exact name of registrant as specified in its charter)

Delaware	32-0546926
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Amneal Pharmaceuticals, Inc. 400 Crossing Boulevard, Bridgewater, NJ	08807
(Address of principal executive offices)	(Zip Code)

(908) 947-3120

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share	AMRX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒    No ☐ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

As of July 25, 2022, there were 151,408,535 shares of Class A common stock outstanding and 152,116,890 shares of Class B common stock outstanding, both with a par value of $0.01.

Amneal Pharmaceuticals, Inc.

Table of Contents

Cautionary Note Regarding Forward-Looking Statements			2
PART I - FINANCIAL INFORMATION
	Item 1.	Financial Statements (Unaudited)	4
		Consolidated Statements of Operations	4
		Consolidated Statements of Comprehensive (Loss) Income	5
		Consolidated Balance Sheets	6
		Consolidated Statements of Cash Flows	7
		Consolidated Statements of Changes in Stockholders' Equity	9
		Notes to Consolidated Financial Statements	11
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	46
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	57
	Item 4.	Controls and Procedures	57
PART II - OTHER INFORMATION
	Item 1.	Legal Proceedings	58
	Item 1A.	Risk Factors	58
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	58
	Item 3.	Defaults Upon Senior Securities	58
	Item 4.	Mine Safety Disclosures	58
	Item 5.	Other Information	58
	Item 6.	Exhibits	59
Signatures			60

1

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q and Amneal Pharmaceuticals, Inc.’s other publicly available documents contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Management and representatives of Amneal Pharmaceuticals, Inc. and its subsidiaries (the “Company”, “we”, “us”, or “our”) also may from time to time make forward-looking statements. Forward-looking statements do not relate strictly to historical or current facts and reflect management’s assumptions, views, plans, objectives and projections about the future. Forward-looking statements may be identified by the use of words such as “plans,” “expects,” “will,” “anticipates,” “estimates” and other words of similar meaning in conjunction with, among other things: discussions of future operations; expected operating results and financial performance; impact of planned acquisitions and dispositions; our strategy for growth; product development; regulatory approvals; market position and expenditures.

Because forward-looking statements are based on current beliefs, expectations and assumptions regarding future events, they are subject to uncertainties, risks and changes that are difficult to predict and many of which are outside of our control. Investors should realize that if underlying assumptions prove inaccurate, known or unknown risks or uncertainties materialize, or other factors or circumstances change, our actual results and financial condition could vary materially from expectations and projections expressed or implied in our forward-looking statements. Investors are therefore cautioned not to rely on these forward-looking statements.

Summary of Material Risks

Risks and uncertainties that make an investment in the Company speculative or risky or that could cause our actual results to differ materially from the forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to:

•our ability to successfully develop, license, acquire and commercialize new products on a timely basis;

•the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices;

•our ability to obtain exclusive marketing rights for our products;

•our ability to manage our growth through acquisitions and otherwise;

•our dependence on the sales of a limited number of products for a substantial portion of our total revenues;

•the continuing trend of consolidation of certain customer groups;

•our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods and any associated supply chain disruptions;

•legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives;

•the impact of severe weather and natural disasters that could cause disruptions in manufacturing and our supply chain;

•the impact of the ongoing COVID-19 pandemic and variant strains;

•risks related to federal regulation of arrangements between manufacturers of branded and generic products;

•our reliance on certain licenses to proprietary technologies from time to time;

•the significant amount of resources we expend on research and development;

•the risk of product liability and other claims against us by consumers and other third parties and the impact of adverse judgements or settlements;

•risks related to changes in the regulatory environment, including U.S. federal and state laws related to healthcare fraud abuse and health information privacy and security and changes in such laws;

•changes to Food and Drug Administration product approval requirements;

•the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers;

•our dependence on third-party agreements for a portion of our product offerings;

•the impact of global economic conditions, including any economic effects stemming from adverse geopolitical events, an economic downturn and inflation rates;

•our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms;

•our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness;

•our obligations under a tax receivable agreement may be significant;

•the high concentration of ownership of our Class A common stock and the fact that we are controlled by a group of stockholders, together with their affiliates and certain assignees, who owned Amneal Pharmaceuticals, LLC when it was a private company; and

2

•such other factors as may be set forth elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, particularly in the section 1A. Risk Factors and our public filings with the SEC.

Investors should carefully read our Annual Report on Form 10-K for the year ended December 31, 2021, including the section 1A. Risk Factors, for a description of certain risks that could, among other things, cause our actual results to differ materially from those expressed in our forward-looking statements. Investors should understand that it is not possible to predict or identify all such factors and should not consider the risks described herein and in our Annual Report to be a complete statement of all potential risks and uncertainties. The Company does not undertake to publicly update any forward-looking statement that may be made from time to time, whether as a result of new information or future events or developments.

3

PART I - FINANCIAL INFORMATION

Item 1.    Financial Statements (Unaudited)

Amneal Pharmaceuticals, Inc.

Consolidated Statements of Operations

(unaudited; in thousands, except per share amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net revenue	$	559,355	$	535,075	$	1,056,988	$	1,028,180
Cost of goods sold	353,724		322,577		676,786		624,120
Cost of goods sold impairment charges	5,112		—		5,112		—
Gross profit	200,519		212,498		375,090		404,060
Selling, general and administrative	98,806		86,157		197,471		176,883
Research and development	50,748		52,864		103,546		101,046
In-process research and development impairment charges	—		710		—		710
Intellectual property legal development expenses	821		1,365		1,585		4,947
Acquisition, transaction-related and integration expenses	241		4,283		675		7,085
Charges related to legal matters, net	251,877		—		249,551		—
Insurance recoveries for property losses and associated expenses	(1,911)		—		(1,911)		—
Restructuring and other charges	—		—		731		363
Change in fair value of contingent consideration	(270)		—		(70)		—
Other operating income	(1,175)		—		(1,175)		—
Operating (loss) income	(198,618)		67,119		(175,313)		113,026
Other (expense) income:
Interest expense, net	(35,623)		(34,083)		(68,958)		(67,968)
Foreign exchange loss, net	(5,429)		(2,244)		(7,442)		(156)
Loss on refinancing	(291)		—		(291)		—
Other income, net	7,230		4,032		9,352		4,826
Total other expense, net	(34,113)		(32,295)		(67,339)		(63,298)
(Loss) income before income taxes	(232,731)		34,824		(242,652)		49,728
Provision for income taxes	7,350		2,648		3,889		3,007
Net (loss) income	(240,081)		32,176		(246,541)		46,721
Less: Net loss (income) attributable to non-controlling interests	119,273		(17,644)		124,015		(25,483)
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. before accretion of redeemable non-controlling interest	(120,808)		14,532		(122,526)		21,238
Accretion of redeemable non-controlling interest	—		—		(438)		—
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	$	(120,808)	$	14,532	$	(122,964)	$	21,238
Net (loss) income per share attributable to Amneal Pharmaceuticals, Inc.'s class A common stockholders:
Basic	$	(0.80)	$	0.10	$	(0.82)	$	0.14
Diluted	$	(0.80)	$	0.10	$	(0.82)	$	0.14
Weighted-average common shares outstanding:
Basic	150,993		148,996		150,445		148,507
Diluted	150,993		151,986		150,445		151,606

The accompanying notes are an integral part of these consolidated financial statements.

4

Amneal Pharmaceuticals, Inc.

Consolidated Statements of Comprehensive (Loss) Income

(unaudited; in thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net (loss) income	$	(240,081)	$	32,176	$	(246,541)	$	46,721
Less: Net loss (income) attributable to non-controlling interests	119,273		(17,644)		124,015		(25,483)
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. before accretion of redeemable non-controlling interest	(120,808)		14,532		(122,526)		21,238
Accretion of redeemable non-controlling interest	—		—		(438)		—
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	(120,808)		14,532		(122,964)		21,238
Other comprehensive (loss) income:
Foreign currency translation adjustments arising during the period	(11,628)		182		(15,707)		(6,184)
Unrealized gain on cash flow hedge, net of tax	14,070		704		67,694		21,476
Less: Other comprehensive income attributable to non-controlling interests	(1,225)		(448)		(26,180)		(7,750)
Other comprehensive income attributable to Amneal Pharmaceuticals, Inc.	1,217		438		25,807		7,542
Comprehensive (loss) income attributable to Amneal Pharmaceuticals, Inc.	$	(119,591)	$	14,970	$	(97,157)	$	28,780

The accompanying notes are an integral part of these consolidated financial statements.

5

Amneal Pharmaceuticals, Inc.

Consolidated Balance Sheets

(unaudited; in thousands, except per share amounts)

	June 30, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	91,979	$	247,790
Restricted cash	6,203		8,949
Trade accounts receivable, net	688,849		662,583
Inventories	533,028		489,389
Prepaid expenses and other current assets	232,204		110,218
Related party receivables	1,338		1,179
Total current assets	1,553,601		1,520,108
Property, plant and equipment, net	483,625		514,158
Goodwill	600,974		593,017
Intangible assets, net	1,204,224		1,166,922
Operating lease right-of-use assets	36,490		39,899
Operating lease right-of-use assets - related party	19,212		20,471
Financing lease right-of-use assets	63,443		64,475
Other assets	79,836		20,614
Total assets	$	4,041,405	$	3,939,664
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	561,692	$	525,345
Current portion of liabilities for legal matters	275,338		58,000
Revolving credit facility	85,000		—
Current portion of long-term debt, net	29,920		30,614
Current portion of operating lease liabilities	10,096		9,686
Current portion of operating and financing lease liabilities - related party	2,796		2,636
Current portion of financing lease liabilities	3,318		3,101
Related party payables - short term	24,904		47,861
Total current liabilities	993,064		677,243
Long-term debt, net	2,622,447		2,680,053
Note payable - related party	38,856		38,038
Operating lease liabilities	28,904		32,894
Operating lease liabilities - related party	17,380		18,783
Financing lease liabilities	60,011		60,251
Related party payables - long term	10,654		9,619
Other long-term liabilities	79,213		38,903
Total long-term liabilities	2,857,465		2,878,541
Commitments and contingencies (Notes 5 and 13)
Redeemable non-controlling interests	17,885		16,907
Stockholders' Equity
Preferred stock, $0.01 par value, 2,000 shares authorized, none issued at both June 30, 2022 and December 31, 2021			—
Class A common stock, $0.01 par value, 900,000 shares authorized at both June 30, 2022 and December 31, 2021; 151,196 and 149,413 shares issued at June 30, 2022 and December 31, 2021, respectively	1,510		1,492
Class B common stock, $0.01 par value, 300,000 shares authorized at June 30, 2022 and December 31, 2021; 152,117 shares issued at both June 30, 2022 and December 31, 2021	1,522		1,522
Additional paid-in capital	675,588		658,350
Stockholders' accumulated deficit	(399,161)		(276,197)
Accumulated other comprehensive income (loss)	868		(24,827)
Total Amneal Pharmaceuticals, Inc. stockholders' equity	280,327		360,340
Non-controlling interests	(107,336)		6,633
Total stockholders' equity	172,991		366,973
Total liabilities and stockholders' equity	$	4,041,405	$	3,939,664

The accompanying notes are an integral part of these consolidated financial statements.

6

Amneal Pharmaceuticals, Inc.

Consolidated Statements of Cash Flows

(unaudited; in thousands)

	Six Months Ended June 30,
	2022		2021
Cash flows from operating activities:
Net (loss) income	$	(246,541)	$	46,721
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	117,511		112,037
Unrealized foreign currency loss	8,014		124
Amortization of debt issuance costs and discount	4,388		4,473
Loss on refinancing	291		—
Intangible asset impairment charges	5,112		710
Insurance recoveries for property and equipment losses	(1,000)		—
Stock-based compensation	16,327		12,962
Inventory provision	17,748		25,805
Change in fair value of contingent consideration	(70)		—
Other operating charges and credits, net	3,449		2,764
Changes in assets and liabilities:
Trade accounts receivable, net	(26,561)		(13,167)
Inventories	(65,395)		(54,580)
Prepaid expenses, other current assets and other assets	(119,747)		(23,988)
Related party receivables	(159)		7,383
Accounts payable, accrued expenses and other liabilities	273,947		(21,137)
Related party payables	7,508		(3,912)
Net cash (used in) provided by operating activities	(5,178)		96,195
Cash flows from investing activities:
Purchases of property, plant and equipment	(15,842)		(19,585)
Deposits for future acquisition of property, plant, and equipment	(3,955)		(1,667)
Acquisition of intangible assets	(10,000)		(500)
Acquisitions of businesses, net of cash acquired	(84,714)		(73,828)
Proceeds from insurance recoveries for property and equipment losses	1,000		—
Net cash used in investing activities	(113,511)		(95,580)
Cash flows from financing activities:
Payments of deferred financing and refinancing costs	(1,622)		—
Payments of principal on debt, financing leases and other	(63,010)		(33,876)
Borrowings on revolving credit facility	85,000		—
Proceeds from exercise of stock options	239		681
Employee payroll tax withholding on restricted stock unit vesting	(3,291)		(2,378)
Tax distributions to non-controlling interests	(9,917)		(27,551)
Acquisition of redeemable non-controlling interest	(1,722)		—
Payments of deferred consideration for acquisitions - related party	(43,998)		—
Payments of principal on financing lease - related party	—		(93)
Repayment of related party note	—		(1,000)
Net cash used in financing activities	(38,321)		(64,217)
Effect of foreign exchange rate on cash	(1,547)		(366)
Net decrease in cash, cash equivalents, and restricted cash	(158,557)		(63,968)
Cash, cash equivalents, and restricted cash - beginning of period	256,739		347,121
Cash, cash equivalents, and restricted cash - end of period	$	98,182	$	283,153
Cash and cash equivalents - end of period	$	91,979	$	278,306
Restricted cash - end of period	6,203		4,847
Cash, cash equivalents, and restricted cash - end of period	$	98,182	$	283,153

The accompanying notes are an integral part of these consolidated financial statements.

7

Amneal Pharmaceuticals, Inc.

Consolidated Statements of Cash Flows (continued)

(unaudited; in thousands)

	Six Months Ended June 30,
	2022		2021
Supplemental disclosure of cash flow information:
Cash paid for interest	$	57,322	$	61,441
Cash (received) paid for income taxes, net	$	(6,747)	$	4,610
Supplemental disclosure of non-cash investing and financing activity:
Contingent consideration for acquisition	$	8,796	$	—
Payable for acquisition of intangible assets	$	31,500	$	—
Deferred consideration for acquisition - related party	$	—	$	30,099
Contingent consideration for acquisition - related party	$	—	$	6,100

The accompanying notes are an integral part of these consolidated financial statements.

8

Amneal Pharmaceuticals, Inc.

Consolidated Statements of Changes in Stockholders' Equity

(unaudited; in thousands)

	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Stockholders' Accumulated Deficit		Accumulated Other Comprehensive (Loss) Income		Non- Controlling Interests		Total Equity		Redeemable Non-Controlling Interests
	Shares	Amount		Shares	Amount
Balance at April 1, 2022	150,775	$	1,506	152,117	$	1,522	$	666,799	$	(278,353)	$	(349)	$	16,282	$	407,407	$	16,420
Net (loss) income	—	—		—	—		—		(120,808)		—		(121,320)		(242,128)		2,047
Foreign currency translation adjustments	—	—		—	—		—		—		(5,792)		(5,836)		(11,628)		—
Stock-based compensation	—	—		—	—		8,262		—		—		—		8,262		—
Exercise of stock options	47	—		—	—		128		—		—		—		128		—
Restricted stock unit vesting, net of shares withheld to cover payroll taxes	374	4		—	—		399		—		—		(636)		(233)		—
Unrealized gain on cash flow hedge, net of tax	—	—		—	—		—		—		7,009		7,061		14,070		—
Tax distributions, net	—	—		—	—		—		—		—		(2,887)		(2,887)		(582)
Balance at June 30, 2022	151,196	$	1,510	152,117	$	1,522	$	675,588	$	(399,161)	$	868	$	(107,336)	$	172,991	$	17,885

	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Stockholders' Accumulated Deficit		Accumulated Other Comprehensive (Loss) Income		Non- Controlling Interests		Total Equity		Redeemable Non-Controlling Interests
	Shares	Amount		Shares	Amount
Balance at January 1, 2022	149,413	$	1,492	152,117	$	1,522	$	658,350	$	(276,197)	$	(24,827)	$	6,633	$	366,973	$	16,907
Net (loss) income	—	—		—	—		—		(122,526)		—		(128,419)		(250,945)		4,404
Foreign currency translation adjustments	—	—		—	—		—		—		(7,816)		(7,891)		(15,707)		—
Stock-based compensation	—	—		—	—		16,327		—		—		—		16,327		—
Exercise of stock options	54	—		—	—		193		—		—		46		239		—
Restricted stock unit vesting, net of shares withheld to cover payroll taxes	1,729	18		—	—		718		—		(112)		(4,001)		(3,377)		—
Unrealized gain on cash flow hedge, net of tax	—	—		—	—		—		—		33,623		34,071		67,694		—
Tax distributions, net	—	—		—	—		—		—		—		(7,330)		(7,330)		(2,587)
Reclassification of redeemable non-controlling interest	—	—		—	—		—		(438)		—		(445)		(883)		883
Acquisition of redeemable non-controlling interest	—	—		—	—		—		—		—		—		—		(1,722)
Balance at June 30, 2022	151,196	$	1,510	152,117	$	1,522	$	675,588	$	(399,161)	$	868	$	(107,336)	$	172,991	$	17,885

9

Amneal Pharmaceuticals, Inc.

Consolidated Statements of Changes in Stockholders' Equity

(unaudited; in thousands)

	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Stockholders' Accumulated Deficit		Accumulated Other Comprehensive Loss		Non- Controlling Interests		Total Equity		Redeemable Non-Controlling Interests
	Shares	Amount		Shares	Amount
Balance at April 1, 2021	148,715	$	1,485	152,117	$	1,522	$	634,484	$	(280,115)	$	(34,361)	$	43,693	$	366,708	$	13,079
Net income	—	—		—	—		—		14,532		—		15,461		29,993		2,183
Foreign currency translation adjustments	—	—		—	—		—		—		90		92		182		—
Stock-based compensation	—	—		—	—		7,632		—		—		—		7,632		—
Exercise of stock options	5	—		—	—		9		—		—		(4)		5		—
Restricted stock unit vesting, net of shares withheld to cover payroll taxes	489	5		—	—		532		—		(56)		(789)		(308)		—
Unrealized gain on cash flow hedge, net of tax	—	—		—	—		—		—		348		356		704		—
Tax distributions	—	—		—	—		—		—		—		(16,644)		(16,644)		(1,150)
Non-controlling interests from the KSP Acquisition	—	—		—	—		—		—		—		2,000		2,000		—
Balance at June 30, 2021	149,209	$	1,490	152,117	$	1,522	$	642,657	$	(265,583)	$	(33,979)	$	44,165	$	390,272	$	14,112

	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Stockholders' Accumulated Deficit		Accumulated Other Comprehensive Loss		Non- Controlling Interests		Total Equity		Redeemable Non-Controlling Interests
	Shares	Amount		Shares	Amount
Balance at January 1, 2021	147,674	$	1,475	152,117	$	1,522	$	628,413	$	(286,821)	$	(41,318)	$	41,661	$	344,932	$	11,804
Net income	—	—		—	—		—		21,238		—		21,504		42,742		3,979
Foreign currency translation adjustments	—	—		—	—		—		—		(3,049)		(3,135)		(6,184)		—
Stock-based compensation	—	—		—	—		12,962		—		—		—		12,962		—
Exercise of stock options	249	2		—	—		686		—		(34)		27		681		—
Restricted stock unit vesting, net of shares withheld to cover payroll taxes	1,286	13		—	—		596		—		(169)		(2,897)		(2,457)		—
Unrealized gain on cash flow hedge, net of tax	—	—		—	—		—		—		10,591		10,885		21,476		—
Tax distributions	—	—		—	—		—		—		—		(25,880)		(25,880)		(1,671)
Non-controlling interests from the KSP Acquisition	—	—		—	—		—		—		—		2,000		2,000		—
Balance at June 30, 2021	149,209	$	1,490	152,117	$	1,522	$	642,657	$	(265,583)	$	(33,979)	$	44,165	$	390,272	$	14,112

10

Amneal Pharmaceuticals, Inc.

Notes to Consolidated Financial Statements

(unaudited)

1. Nature of Operations

Amneal Pharmaceuticals, Inc. (the “Company”) is a pharmaceutical company specializing in developing, manufacturing, marketing and distributing high-value generic and branded specialty pharmaceutical products across a broad array of dosage forms and therapeutic areas. The Company operates principally in the United States, India, and Ireland, and sells to wholesalers, distributors, hospitals, chain pharmacies and individual pharmacies, either directly or indirectly. The Company is a holding company, whose principal assets are common units (“Amneal Common Units”) of Amneal Pharmaceuticals, LLC (“Amneal”).

In 2018, Amneal completed the acquisition of Impax Laboratories, Inc. (“Impax”), a generic and specialty pharmaceutical company. In 2020, Amneal acquired a 65.1% controlling interest in both AvKARE Inc., a Tennessee corporation now a limited liability company (“AvKARE, LLC”), and Dixon-Shane, LLC d/b/a R&S Northeast LLC, a Kentucky limited liability company (“R&S”) (collectively, the “Rondo Acquisitions”). AvKARE, LLC is one of the largest private label providers of generic pharmaceuticals in the U.S. federal agency sector, primarily focused on serving the Department of Defense and the Department of Veterans Affairs. R&S is a national pharmaceutical wholesaler focused primarily on offering 340b-qualified entities products to provide consistency in care and pricing.

The group of investors, together with their affiliates and certain assignees, who owned Amneal when it was a private company (the “Members”) held 50.2% of Amneal Common Units and the Company held the remaining 49.8% as of June 30, 2022.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States of America, should be read in conjunction with the Company’s annual audited financial statements for the year ended December 31, 2021 included in the Company’s 2021 Annual Report on Form 10-K. Certain information and footnote disclosures normally included in annual financial statements have been omitted from the accompanying unaudited consolidated financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of June 30, 2022, cash flows for the six months ended June 30, 2022 and 2021 and the results of its operations, its comprehensive (loss) income and its changes in stockholders’ equity for the three and six months ended June 30, 2022 and 2021. The consolidated balance sheet data at December 31, 2021 was derived from the Company’s audited annual financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America.

Except for the updates included in this note, the accounting policies of the Company are set forth in Note 2. Summary of Significant Accounting Policies contained in the Company’s 2021 Annual Report on Form 10-K.

Use of Estimates

The preparation of financial statements requires the Company's management to make estimates and assumptions that affect the reported financial position at the date of the financial statements and the reported results of operations during the reporting period. Such estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The following are some, but not all, of such estimates: the determination of chargebacks, sales returns, rebates, billbacks, valuation of intangible and other assets acquired in business combinations, allowances for accounts receivable, accrued liabilities, initial and subsequent valuation of contingent consideration recognized in business combinations, stock-based compensation, valuation of inventory balances, the determination of useful lives for product rights and the assessment of expected cash flows used in evaluating goodwill and other long-lived assets for impairment. Actual results could differ from those estimates.

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Recently Adopted Accounting Pronouncements

Government Assistance (Topic 832): Disclosures by Business Entities About Government Assistance

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for the Company’s annual disclosures as of and for the year ending December 31, 2022, with early adoption permissible. The Company elected to adopt this guidance during the quarter ended June 30, 2022 in connection with the recognition of cash incentive related to the India Production Linked Incentive Scheme for the Pharmaceutical Sector (“PLI Scheme”). Refer to Note 19. Government Grants, for additional information.

Recently Issued Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides elective amendments for entities that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.  These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), to expand and clarify the scope of Topic 848 to include derivative instruments on discounting transactions. The amendments in this ASU are effective in the same timeframe as ASU 2020-04. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

Reclassification

The prior period balance related to liabilities for legal proceedings of $58.0 million, formerly included in accounts payable and accrued expenses as of December 31, 2021, has been reclassified to the balance sheet caption liabilities for legal proceedings to conform to the current period presentation in the consolidated balance sheets.

3. Acquisitions

Saol Baclofen Franchise Acquisition

On December 30, 2021, the Company entered into an asset purchase agreement with certain entities affiliated with Saol International Limited (collectively, “Saol”), a private specialty pharmaceutical company, pursuant to which it agreed to acquire Saol’s baclofen franchise, including Lioresal®, LYVISPAH™, and a pipeline product under development (the “Saol Acquisition”). The Saol Acquisition expands the Company’s commercial institutional and specialty portfolio in neurology while adding commercial infrastructure in advance of its entry into the biosimilar institutional market. The transaction closed on February 9, 2022.

Consideration for the Saol Acquisition included $84.7 million, paid at closing with cash on hand, and contingent royalty payments based on annual net sales for certain acquired assets, beginning in 2023. Cash paid at closing included $1.1 million for inventory acquired in excess of the normalized level, as defined in the asset purchase agreement (working capital adjustment).

For the six months ended June 30, 2022, the Company incurred $0.1 million in transaction costs associated with the Saol Acquisition, which was recorded in acquisition, transaction-related and integration expenses (none for the three months ended June 30, 2022).

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The Saol Acquisition was accounted for under the acquisition method of accounting, with Amneal as the accounting acquirer. The preliminary purchase price was calculated as follows (in thousands):

Cash	$	84,714
Contingent consideration (royalties) (1)	8,796
Fair value of consideration transferred	$	93,510

(1)The estimated fair value of contingent consideration on the acquisition date was $8.8 million and was based on significant Level 3 inputs that were not observable in the market. Key assumptions included the discount rate, projected year of payments and expected net product sales. Refer to Note 10. Fair Value Measurements, for additional information on the methodology and determination of this liability.

The following is a summary of the preliminary purchase price allocation for the Saol Acquisition (in thousands):

	Preliminary Fair Values as of February 9, 2022
Inventory	$	2,162
Prepaid expenses and other current assets	98
Goodwill	7,553
Intangible assets	83,815
Total assets acquired	93,628
Accounts payable and accrued expenses	118
Fair value of consideration transferred	$	93,510

The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):

	Preliminary Fair Value		Weighted-Average Useful Life (in years)
Marketed product rights	$	83,815	11.6

The estimated fair value of the identifiable intangible assets was determined using the “income approach,” which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. The assumptions, including the expected projected cash flows, utilized in the purchase price allocation and in determining the purchase price were based on management's best estimates as of the closing date of the Saol Acquisition on February 9, 2022.

Some of the more significant assumptions inherent in the development of those asset valuations included the estimated net cash flows for each year for each asset (including net revenues, cost of sales, selling and marketing costs and working capital / contributory asset charges), the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, the potential regulatory and commercial success risks, competitive trends impacting the asset and each cash flow stream, as well as other factors. The underlying assumptions used to prepare the discounted cash flow analysis may change; accordingly, for these and other reasons, actual results may vary significantly from estimated results.

Goodwill is calculated as the excess of the consideration transferred over the net assets recognized. Of the total goodwill acquired in connection with the Saol Acquisition, $5.2 million was allocated to the Company’s Generics segment and $2.4 million was allocated to the Company’s Specialty segment.

From the acquisition date of February 9, 2022 to June 30, 2022, the Saol Acquisition contributed net revenue and an operating loss of $9.3 million and $2.0 million, respectively. For the three months ended June 30, 2022, the Saol Acquisition contributed net revenue and an operating loss of $6.3 million and $1.9 million, respectively.

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Puniska Healthcare Pvt. Ltd.

On November 2, 2021, the Company entered into a definitive agreement to acquire Puniska Healthcare Pvt. Ltd. (“Puniska”), a privately held manufacturer of parenteral and injectable drugs in India, and land in a transaction valued at $93.0 million (the “Puniska Acquisition”). Upon execution of the agreement, the Company paid $72.9 million with cash on hand for approximately 74% of the equity interests of Puniska. Upon approval of the transaction by the government of India in March 2022, the Company paid, with cash on hand, an additional $1.7 million for the remaining 26% of the equity interests of Puniska (included in redeemable non-controlling interests in the Company’s consolidated balance sheet as of December 31, 2021) and $14.2 million for the satisfaction of a preexisting payable to the sellers (included in related party payables-short term in the Company’s consolidated balance sheet as of December 31, 2021). During December 2021, the Company paid $4.3 million with cash on hand for land associated with the Puniska Acquisition.

There were no transaction costs associated with the Puniska Acquisition for the three and six months ended June 30, 2022.

The Puniska Acquisition, excluding the land acquired in December 2021, was accounted for under the acquisition method of accounting, with Amneal as the accounting acquirer. The preliminary purchase price was calculated as follows (in thousands):

Cash (1)	$	72,880
Payable to sellers (2)	14,162
Fair value of consideration transferred	$	87,042

(1)     Cash includes the payment made upon execution of the agreement.

(2)     Due to the short-term nature of the payable to the sellers, the principal amount approximates fair value.

The following is a summary of the preliminary purchase price allocation for the Puniska Acquisition (in thousands):

	Preliminary Fair Values as of November 2, 2021
Cash	$	165
Trade accounts receivable, net	232
Inventories	1,092
Prepaid expenses and other current assets	4,473
Property, plant and equipment	53,423
Goodwill	30,091
Operating lease-right-of-use assets	234
Other assets	1,303
Total assets acquired	91,013
Accounts payable and accrued expenses	1,732
Operating lease liabilities	234
Other long-term liabilities	263
Total liabilities assumed	2,229
Redeemable non-controlling interests	1,742
Fair value of consideration transferred	$	87,042

Goodwill is calculated as the excess of the consideration transferred and fair value of the redeemable non-controlling interests over the net assets recognized. All of the goodwill acquired in connection with the Puniska Acquisition was allocated to the Company’s Generics segment.

Kashiv Specialty Pharmaceuticals, LLC Acquisition

On January 11, 2021, the Company and Kashiv Biosciences, LLC (a related party, see Note 15. Related Party Transactions) (“Kashiv”) entered into a definitive agreement for Amneal to acquire a 98% interest in Kashiv Specialty Pharmaceuticals, LLC (“KSP”), a subsidiary of Kashiv focused on the development of innovative drug delivery platforms, novel 505(b)(2) drugs and complex generics (the “KSP Acquisition”).

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On April 2, 2021, the Company completed the KSP Acquisition.  Under the terms of the transaction, the cash portion of the consideration was $104.5 million, comprised of a purchase price of $100.1 million (including initial and deferred consideration) and a working capital adjustment of $4.4 million.  The initial cash purchase price was funded by cash on hand. For further detail of the purchase price, refer to the table below.

Transaction costs associated with the KSP Acquisition were $2.0 million and $3.1 million for the three and six months ended June 30, 2021, respectively, and were included in acquisition, transaction-related and integration expenses (none for the three and six months ended June 30, 2022).

The KSP Acquisition was accounted for under the acquisition method of accounting, with Amneal as the accounting acquirer.

The purchase price was calculated as follows (in thousands):

Cash, including working capital payments	$	74,440
Deferred consideration (1)	30,099
Contingent consideration (regulatory milestones) (2)	500
Contingent consideration (royalties) (2)	5,200
Settlement of Amneal trade accounts payable due to KSP (3)	(7,117)
Fair value consideration transferred	$	103,122

(1)The deferred consideration was stated at the fair value estimate of $30.1 million, which is the $30.5 million contractually stated amount less a $0.4 million discount. The deferred consideration consisted of $30.0 million, which the Company paid in January 2022 and $0.5 million, which the Company expects to pay during the three months ending September 30, 2022. As the deferred consideration is non-interest bearing, the Company, using guideline companies and market borrowings with comparable risk profiles, discounted the deferred consideration at 1.7% over the period from April 2, 2021 to the maturity dates, for a fair value of $30.1 million on the date of acquisition. This discount was amortized to interest expense over the life of the deferred consideration utilizing the effective interest rate method.

(2)    Kashiv is eligible to receive up to an additional $8.0 million in contingent payments upon the achievement of certain regulatory milestones and potential royalty payments from high single-digits to mid double-digits, depending on the amount of aggregate annual net sales for certain future pharmaceutical products. The estimated fair value of contingent consideration on the acquisition date was $5.7 million and was based on significant Level 3 inputs that were not observable in the market. Key assumptions included the discount rate, probability of achievement of milestones, projected year of payments and expected net product sales. Refer to Note 10. Fair Value Measurements, for additional information on the methodology and determination of this liability.

(3)    Represented trade accounts payable due to KSP that were effectively settled upon closing of the KSP Acquisition.

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The following is a summary of the purchase price allocation for the KSP Acquisition (in thousands):

	Final Fair Values as of April 2, 2021
Cash	$	112
Restricted cash	500
Prepaid expenses and other current assets	381
Property, plant and equipment	5,375
Goodwill	43,530
Intangible assets	56,400
Operating lease right-of-use assets	9,367
Total assets acquired	115,665
Accounts payable and accrued expenses	1,239
Operating lease liability	9,177
Related party payable	127
Total liabilities assumed	10,543
Non-controlling interests	2,000
Fair value of consideration transferred	$	103,122

Total acquired intangible assets of $56.4 million were comprised of marketed product rights of $29.4 million and in-process research and development (“IPR&D”) of $27.0 million.

The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):

	Fair Value		Weighted-Average Useful Life (in years)
Marketed product rights	$	29,400	5.9

The estimated fair value of the in-process research and development and identifiable intangible assets was determined using the “income approach”, which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. The assumptions, including the expected projected cash flows, utilized in the purchase price allocation and in determining the purchase price were based on management’s best estimates as of the closing date of the KSP Acquisition on April 2, 2021.

Some of the more significant assumptions inherent in the development of those asset valuations included the estimated net cash flows for each year for each asset or product (including net revenues, cost of sales, R&D, selling and marketing costs and working capital / contributory asset charges), the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, the potential regulatory and commercial success risks, competitive trends impacting the asset and each cash flow stream, as well as other factors. The underlying assumptions used to prepare the discounted cash flow analysis may change; accordingly, for these and other reasons, actual results may vary significantly from estimated results.

Goodwill is calculated as the excess of the consideration transferred and fair value of the non-controlling interests over the net assets recognized. Of the total goodwill acquired in connection with the KSP Acquisition, $40.8 million was allocated to the Company’s Generics segment and $2.7 million was allocated to the Company’s Specialty segment.

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4. Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized when the Company transfers control of its products to the customer, which typically occurs at a point-in-time, either upon shipment or delivery. Substantially all of the Company’s net revenues relate to products which are transferred to the customer at a point-in-time.

Concentration of Revenue

The following table summarizes revenues from each of our customers which individually accounted for 10% or more of our total net revenue:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Customer A	19	%	26	%	19	%	23	%
Customer B	17	%	20	%	17	%	20	%
Customer C	21	%	21	%	22	%	23	%
Customer D	11	%	11	%	11	%	11	%

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Disaggregated Revenue

The Company's significant therapeutic classes for its Generics and Specialty segments and sales channels for its AvKARE segment, as determined based on net revenue for the three and six months ended June 30, 2022 and 2021 are set forth below (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021
Generics
	Anti-Infective	$	5,566	$	9,677	$	11,811	$	15,590
	Hormonal/ Allergy	118,309		111,654		214,677		218,357
	Antiviral (1)	1,296		(261)		11,867		(8,202)
	Central Nervous System	108,787		106,628		189,912		202,919
	Cardiovascular System	32,043		36,134		55,496		71,445
	Gastroenterology	17,531		19,703		34,151		39,161
	Oncology	18,424		33,450		35,632		52,480
	Metabolic Disease/Endocrine	9,988		6,881		21,221		13,438
	Respiratory	12,118		10,463		17,783		18,641
	Dermatology	17,937		14,818		31,414		27,696
	Other therapeutic classes	22,329		11,143		57,689		20,874
	International and other	567		147		989		546
	Total Generics net revenue	364,895		360,437		682,642		672,945
Specialty
	Hormonal/ Allergy	24,320		16,012		43,739		32,808
	Central Nervous System	65,356		65,130		123,524		132,841
	Gastroenterology	484		—		554		—
	Other therapeutic classes	6,841		7,493		14,270		18,917
	Total Specialty net revenue	97,001		88,635		182,087		184,566
AvKARE
	Distribution	64,240		48,316		124,503		93,815
	Government Label	22,280		29,172		46,739		60,244
	Institutional	6,060		5,780		12,375		10,959
	Other	4,879		2,735		8,642		5,651
	Total AvKARE net revenue	97,459		86,003		192,259		170,669
	Total net revenue	$	559,355	$	535,075	$	1,056,988	$	1,028,180

(1) Antiviral net revenue for the three and six months ended June 30, 2021 reflected lower demand and increased returns activity for Oseltamivir (generic Tamiflu®) above historical levels due to decreased influenza activity during the COVID-19 pandemic.

A rollforward of the major categories of sales-related deductions for the six months ended June 30, 2022 is as follows (in thousands):

	Contract Charge - Backs and Sales Volume Allowances		Cash Discount Allowances		Accrued Returns Allowance		Accrued Medicaid and Commercial Rebates
Balance at December 31, 2021	$	503,902	$	23,642	$	161,978	$	85,737
Provision related to sales recorded in the period	1,567,090		52,895		47,486		61,913
Credits/payments issued during the period	(1,675,244)		(53,255)		(51,238)		(54,879)
Balance at June 30, 2022	$	395,748	$	23,282	$	158,226	$	92,771

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5. Alliance and Collaboration

The Company has entered into several alliance, collaboration, license, distribution and similar agreements with respect to certain of its products and services with third-party pharmaceutical companies. The consolidated statements of operations include revenue recognized under agreements the Company has entered into to develop marketing and/or distribution relationships with its partners to fully leverage the technology platform and revenue recognized under development agreements which generally obligate the Company to provide research and development services over multiple periods. The Company's significant arrangements are discussed below.

Biosimilar Licensing and Supply Agreement

On May 7, 2018, the Company entered into a licensing and supply agreement with Mabxience S.L. for its biosimilar candidate for Avastin® (bevacizumab). The supply agreement was subsequently amended on March 2, 2021 and the licensing agreement was amended on March 4, 2021. Pursuant to the agreement, the Company will be the exclusive partner in the U.S. market and will pay development and regulatory milestone payments as well as commercial milestone payments on reaching pre-agreed sales targets in the market to Mabxience, up to $78.0 million. For the three and six months ended June 30, 2021, the Company recognized $7.5 million and $9.5 million, respectively, of research and development expense under this agreement (none for the three and six months ended June 30, 2022).

On April 13, 2022, the Food and Drug Administration (“FDA”) approved the Company’s biologics license application for bevacizumab-maly, a biosimilar referencing Avastin®. In connection with this regulatory approval and associated activity, the Company incurred milestone payments of $26.5 million, of which $10.0 million was paid, during the three and six months ended June 30, 2022. The milestones were capitalized as an intangible assets and will be amortized to cost of sales over their estimated useful lives of 7 years.

Agreements with Kashiv Biosciences, LLC

For details on the Company’s related party agreements with Kashiv, refer to Note 15. Related Party Transactions in this Form 10-Q and the Company’s 2021 Annual Report on Form 10-K.

6. (Loss) Earnings per Share

Basic (loss) earnings per share of the Company’s class A common stock is computed by dividing net (loss) income attributable to Amneal Pharmaceuticals, Inc. by the weighted-average number of shares of class A common stock outstanding during the period. Diluted (loss) earnings per share of class A common stock is computed by dividing net (loss) income attributable to Amneal Pharmaceuticals, Inc. by the weighted-average number of shares of class A common stock outstanding, adjusted to give effect to potentially dilutive securities.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted (loss) earnings per share of class A common stock (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	$	(120,808)	$	14,532	$	(122,964)	$	21,238
Denominator:
Weighted-average shares outstanding - basic	150,993		148,996		150,445		148,507
Effect of dilutive securities:
Stock options	—		837		—		815
Restricted stock units	—		2,153		—		2,284
Weighted-average shares outstanding - diluted	150,993		151,986		150,445		151,606
Net (loss) earnings per share attributable to Amneal Pharmaceuticals, Inc.’s class A common stockholders:
Basic	$	(0.80)	$	0.10	$	(0.82)	$	0.14
Diluted	$	(0.80)	$	0.10	$	(0.82)	$	0.14

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Shares of the Company's class B common stock do not share in the earnings or losses of the Company and, therefore, are not participating securities. As such, separate presentation of basic and diluted (loss) earnings per share of class B common stock under the two-class method has not been presented.

The following table presents potentially dilutive securities excluded from the computations of diluted (loss) earnings per share of class A common stock (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options	2,919	(1)	347	(3)	2,919	(1)	347	(3)
Restricted stock units	10,989	(1)	—		10,989	(1)	—
Performance stock units	7,427	(1)	5,169	(4)	7,427	(1)	5,169	(4)
Shares of class B common stock	152,117	(2)	152,117	(2)	152,117	(2)	152,117	(2)

(1)Excluded from the computation of diluted earnings per share of class A common stock because the effect of their inclusion would have been anti-dilutive since there was a net loss attributable to the Company for the three and six months ended June 30, 2022.

(2)Shares of class B common stock are considered potentially dilutive shares of class A common stock. Shares of class B common stock have been excluded from the computations of diluted (loss) earnings per share because the effect of their inclusion would have been anti-dilutive under the if-converted method.

(3)Excluded from the computation of diluted earnings per share of class A common stock because the exercise price of the stock options exceeded the average market price of the class A common stock during the period (out-of-the-money).

(4)Excluded from the computation of diluted earnings per share of class A common stock because the performance vesting conditions were not met for each of the three and six months ended June 30, 2021.

7. Income Taxes

For the three months ended June 30, 2022, the Company’s provision for income taxes and effective tax rates were $7.4 million and (3.2)%, respectively, compared to $2.6 million and 7.6%, respectively, for the three months ended June 30, 2021. The period-over-period change in the provision for income taxes was primarily related to a change in the mix of foreign income.

For the six months ended June 30, 2022, the Company’s provision for income taxes and effective tax rates were $3.9 million and (1.6)%, respectively, compared to $3.0 million and 6.0%, respectively, for the six months ended June 30, 2021. The period-over-period change in the provision for income taxes was primarily related to a change in the mix of foreign income and a discrete benefit as a result of the completion of an Internal Revenue Service examination and Joint Committee review of the 2012-2018 federal income tax returns, which enabled the Company to recognize previously unrecognized tax benefits.

As of September 30, 2019, the Company established a valuation allowance based upon all available objective and verifiable evidence both positive and negative, including historical levels of pre-tax income (loss) both on a consolidated basis and tax reporting entity basis, legislative developments, expectations and risks associated with estimates of future pre-tax income, and prudent and feasible tax planning strategies. The Company estimated that as of September 30, 2019, it had generated a cumulative consolidated three-year pre-tax loss, which continued as of December 31, 2021.  As a result of the initial September 30, 2019 and December 31, 2021 analyses, the Company determined that it remained more likely than not that it would not realize the benefits of its gross deferred tax assets (“DTAs”) and, therefore, maintained its valuation allowance. As of December 31, 2021, this valuation allowance was $416.6 million, and it reduced the carrying value of these gross DTAs, net of the impact of the reversal of taxable temporary differences, to zero. As of June 30, 2022, based on its evaluation of available positive and negative evidence, the Company has maintained its position with respect to the valuation allowance.

The Company entered into a tax receivable agreement (“TRA”) for which it is generally required to pay the holders of Amneal Common Units 85% of the applicable tax savings, if any, in U.S. federal and state income tax that it is deemed to realize as a result of certain tax attributes of their Amneal Common Units sold to the Company (or exchanged in a taxable sale) and that are created as a result of (i) the sales of their Amneal Common Units for shares of class A common stock and (ii) tax benefits attributable to payments made under the TRA.  In conjunction with the valuation allowance recorded on the DTAs at September 30, 2019, the Company reversed the TRA liability.

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The projection of future taxable income involves significant judgment. Actual taxable income may differ from the Company’s estimates, which could significantly impact the timing of the recognition of the contingent liability under the TRA. As noted above, the Company has determined it is more-likely-than-not it will be unable to utilize all of its DTAs subject to the TRA; therefore, as of June 30, 2022, the Company has not recognized the contingent liability under the TRA related to the tax savings it may realize from common units sold or exchanged. If utilization of these DTAs becomes more likely than not in the future, at such time, Amneal will recognize a liability under the TRA as a result of basis adjustments under Internal Revenue Code Section 754. As of both June 30, 2022 and December 31, 2021, the contingent liability associated with the TRA was approximately $206.3 million.

The timing and amount of any payments under the TRA may vary depending upon a number of factors, including the timing and number of Amneal Common Units sold or exchanged for the Company's class A common stock, the price of the Company's class A common stock on the date of sale or exchange, the timing and amount of the Company's taxable income, and the tax rate in effect at the time of realization of the Company's taxable income (the TRA liability is determined based on a percentage of the corporate tax savings from the use of the TRA's attributes). Further sales or exchanges occurring subsequent to June 30, 2022 could result in future Amneal tax deductions and obligations to pay 85% of such benefits to the holders of Amneal Common Units. These obligations could be incremental to and substantially larger than the approximate $206.3 million contingent liability as of June 30, 2022 described above. Under certain conditions, such as a change of control or other early termination event, the Company could be obligated to make TRA payments in advance of tax benefits being realized. Payments could also be in excess of the tax savings that the Company may ultimately realize.

Any future recognition of these TRA liabilities will be recorded through charges in the Company’s consolidated statements of operations.  However, if the tax attributes are not utilized in future years, it is reasonably possible no amounts would be paid under the TRA.  Should the Company determine that a DTA with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be reversed and if a resulting TRA payment is determined to be probable, a corresponding TRA liability will be recorded.

8. Trade Accounts Receivable, Net

Trade accounts receivable, net was comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Gross accounts receivable	$	1,109,812	$	1,191,792
Allowance for credit losses	(1,933)		(1,665)
Contract charge-backs and sales volume allowances	(395,748)		(503,902)
Cash discount allowances	(23,282)		(23,642)
Subtotal	(420,963)		(529,209)
Trade accounts receivable, net	$	688,849	$	662,583

Concentration of Receivables

Trade accounts receivable from customers representing 10% or more of the Company’s total trade accounts receivable were as follows:

	June 30, 2022		December 31, 2021
Customer A	34	%	37	%
Customer B	22	%	24	%
Customer C	28	%	25	%

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9. Inventories

Inventories were comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Raw materials	$	220,593	$	214,508
Work in process	71,784		47,802
Finished goods	240,651		227,079
Total inventories	$	533,028	$	489,389

10. Fair Value Measurements

Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Value is determined using pricing models, discounted cash flow methodologies, or similar techniques and also includes instruments for which the determination of fair value requires significant judgment or estimation.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification for each reporting period. The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 (in thousands):

			Fair Value Measurement Based on
June 30, 2022	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Interest rate swap asset (1)	$	56,221	$	—	$	56,221	$	—
Liabilities
Deferred compensation plan liabilities (2)	$	10,648	$	—	$	10,648	$	—
Contingent consideration liabilities (3)	$	14,626	$	—	$	—	$	14,626
December 31, 2021
Liabilities
Interest rate swap liability (1)	$	11,473	$	—	$	11,473	$	—
Deferred compensation plan liabilities (2)	$	13,883	$	—	$	13,883	$	—
Contingent consideration liability (3)	$	5,900	$	—	$	—	$	5,900

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(1)The fair value measurement of the Company’s interest rate swap classified within Level 2 of the fair value hierarchy is a model-derived valuation as of a given date in which all significant inputs are observable in active markets including certain financial information and certain assumptions regarding past, present, and future market conditions. Refer to Note 11. Financial Instruments for information on the Company's interest rate swap.

(2)These liabilities are recorded at the value of the amount owed to the plan participants, with changes in value recognized as compensation expense. The calculation of the deferred compensation plan obligation is derived from observable market data by reference to hypothetical investments selected by the participants.

(3)The fair value measurement of contingent consideration liabilities has been classified as Level 3 recurring liabilities as the valuations require judgment and estimation of factors that are not currently observable in the market. If different assumptions were used for various inputs, the estimated fair values could be higher or lower than what the Company determined. As of June 30, 2022, contingent consideration liabilities of $5.8 million associated with the KSP Acquisition and $8.8 million associated with the Saol Acquisition were recorded within related party payables - long term and other long-term liabilities, respectively. As of December 31, 2021, a contingent consideration liability of $5.9 million associated with the KSP Acquisition was recorded within related party payables - long term. Refer to Note 3. Acquisitions for additional information related to contingent consideration associated with the KSP Acquisition and the Saol Acquisition.

There were no transfers between levels in the fair value hierarchy during the six months ended June 30, 2022.

Contingent consideration

On April 2, 2021, the Company completed the KSP Acquisition, which provides for contingent milestone payments of up to an aggregate of $8.0 million (undiscounted) upon the achievement of certain regulatory milestones, as well as contingent royalty payments that are tiered depending on the aggregate annual net sales for certain future pharmaceutical products.

On February 9, 2022, the Company completed the Saol Acquisition, which provides for contingent royalty payments that are tiered depending on the aggregate annual net sales for certain pharmaceutical products, beginning in 2023.

The following table provides a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

	Six Months Ended June 30, 2022		Year Ended December 31, 2021
Balance, beginning of period	$	5,900	$	—
Addition due to the Saol Acquisition	8,796		—
Addition due to the KSP Acquisition	—		5,700
Change in fair value during the period	(70)		200
Balance, end of period	$	14,626	$	5,900

The fair value measurement of the contingent consideration liabilities were determined based on significant unobservable inputs, including the discount rate, estimated probabilities of success, timing of achieving specified regulatory milestones and the estimated amount of future sales of the acquired products. The contingent consideration liabilities were estimated by applying a probability-weighted expected payment model for contingent milestone payments and Monte Carlo simulation models for contingent royalty payments, which were then discounted to present value. Changes to the fair values of the contingent consideration liabilities can result from changes to one or a number of the aforementioned inputs. If different assumptions were used for various inputs, the estimated fair value could be higher or lower than what the Company determined.

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The following table summarizes the significant unobservable inputs used in the fair value measurement of our contingent consideration liabilities as of June 30, 2022:

Contingent Consideration Liability	Fair Value as of June 30, 2022 (in thousands)	Unobservable input	Range			Weighted Average(1)
Regulatory Milestones (KSP Acquisition)	$430	Discount rate	7.9%	-	9.0%	8.0%
		Probability of payment	1.8%	-	20.0%	17.0%
		Projected year of payment	2023	-	2027	2023
Royalties (KSP Acquisition)	$5,400	Discount rate	12.5%	-	12.5%	12.5%
		Probability of payment	1.8%	-	20.0%	18.0%
		Projected year of payment	2023	-	2032	2029
Royalties (Saol Acquisition)	$8,796	Discount rate	16.8%	-	16.8%	16.8%
		Projected year of payment	2023	-	2037	2027

(1) Unobservable inputs were weighted by the relative fair value of each product candidate acquired.

Assets and Liabilities Not Measured at Fair Value on a Recurring Basis

The carrying amounts of cash, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments.

The Term Loan, as defined in Note 17. Debt in the Company’s 2021 Annual Report on Form 10-K, is in the Level 2 category within the fair value level hierarchy. The fair value was determined using market data for valuation. The fair value of the Term Loan at June 30, 2022 was approximately $2.3 billion as compared to approximately $2.6 billion at December 31, 2021.

The Rondo Term Loan, as defined in Note 17. Debt in the Company’s 2021 Annual Report on Form 10-K, is in the Level 2 category within the fair value level hierarchy. The fair value of the Rondo Term Loan at June 30, 2022 and December 31, 2021 was $91.3 million and $139.0 million, respectively.

The Sellers Notes are in the Level 2 category within the fair value level hierarchy. The fair value of the Sellers Notes at June 30, 2022 and December 31, 2021 was $38.6 million and $38.0 million, respectively.

Refer to Note 17. Debt in our 2021 Annual Report on Form 10-K for detailed information about our indebtedness, including definitions of terms.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

There were no non-recurring fair value measurements during the six months ended June 30, 2022 and 2021.

11. Financial Instruments

The Company uses an interest rate swap to manage its exposure to market risks for changes in interest rates.

Interest Rate Risk

Interest income earned on cash and cash equivalents may fluctuate as interest rates change; however, due to their relatively short maturities, the Company does not hedge these assets or their investment cash flows because the impact of interest rate risk is not material. The Company is exposed to interest rate risk on its debt obligations. The Company's debt obligations consist of variable-rate and fixed-rate debt instruments.  The Company's primary objective is to achieve the lowest overall cost of funding while managing the variability in cash outflows within an acceptable range.  In order to achieve this objective, the Company has entered into an interest rate swap on the Term Loan.

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Interest Rate Derivative – Cash Flow Hedge

The interest rate swap involves the periodic exchange of payments without the exchange of underlying principal or notional amounts. In October 2019, the Company entered into an interest rate lock agreement for a total notional amount of $1.3 billion to hedge part of the Company's interest rate exposure associated with the variability in future cash flows from changes in the one-month LIBOR associated with the Term Loan.

As of June 30, 2022, the total gain, net of income taxes, related to the Company’s cash flow hedge was $56.2 million, of which $27.6 million was recognized in accumulated other comprehensive income and $28.6 million was recognized in non-controlling interests.

A summary of the fair values of derivative instruments in the consolidated balance sheets was as follows (in thousands):

	June 30, 2022			December 31, 2021
Derivatives Designated as Hedging Instruments	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Variable-to-fixed interest rate swap	Other Assets	$	56,221	Other long-term liabilities	$	11,473

12. Goodwill and Other Intangible Assets

The changes in goodwill for the six months ended June 30, 2022 and for the year ended December 31, 2021 were as follows (in thousands):

	June 30, 2022		December 31, 2021
Balance, beginning of period	$	593,017	$	522,814
Goodwill acquired during the period	7,553		70,584
Adjustment during the period for Puniska Acquisition	3,075		—
Currency translation	(2,671)		(381)
Balance, end of period	$	600,974	$	593,017

As of June 30, 2022, $366.3 million, $165.2 million, and $69.5 million of goodwill was allocated to the Specialty, Generics, and AvKARE segments, respectively. As of December 31, 2021, $363.9 million, $159.6 million, and $69.5 million of goodwill was allocated to the Specialty, Generics, and AvKARE segments, respectively. For the six months ended June 30, 2022, goodwill acquired during the period was associated with the Saol Acquisition. For the year ended December 31, 2021, goodwill acquired during the period was associated with the Puniska Acquisition and the KSP Acquisition. Refer to Note 3. Acquisitions for additional information.

Intangible assets at June 30, 2022 and December 31, 2021 were comprised of the following (in thousands):

	June 30, 2022							December 31, 2021
	Weighted-Average Amortization Period (in years)	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Amortizing intangible assets:
Product rights	7.9	$	1,240,871	$	(507,894)	$	732,977	$	1,122,612	$	(436,902)	$	685,710
Other intangible assets	4.5	133,800		(67,978)		65,822		133,800		(58,013)		75,787
Subtotal		$	1,374,671	$	(575,872)	$	798,799	$	1,256,412	$	(494,915)	$	761,497
In-process research and development		405,425		—		405,425		405,425		—		405,425
Total intangible assets		$	1,780,096	$	(575,872)	$	1,204,224	$	1,661,837	$	(494,915)	$	1,166,922

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During the six months ended June 30, 2022, the Company recognized $83.8 million of product rights intangible assets associated with the preliminary purchase price allocation of the Saol Acquisition. During the three and six months ended June 30, 2021, the Company recognized $73.8 million of intangible assets associated with the then preliminary purchase price allocation of the KSP Acquisition, consisting of $29.5 million of product rights and $44.3 million of IPR&D. Product rights are amortized to cost of goods sold over their estimated useful lives. Refer to Note 3. Acquisitions for additional information on the preliminary purchase price allocation associated with the Saol Aquisition and the final purchase price allocation associated with the KSP Acquisition.

Amortization expense related to intangible assets was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Amortization	$	41,982	$	43,520	$	82,901	$	85,192

The following table presents future amortization expense for the next five years and thereafter, excluding $405.4 million of IPR&D intangible assets (in thousands):

	Future Amortization
Remainder of 2022	$	88,560
2023	161,146
2024	158,554
2025	120,845
2026	72,132
Thereafter	197,562
Total	$	798,799

The Company reviews intangible assets with finite lives for recoverability whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. Indefinite-lived intangible assets, including IPR&D, are tested for impairment if impairment indicators arise and, at a minimum, annually.

For both the three and six months ended June 30, 2022, the Company recognized a $5.1 million of intangible asset impairment charge. This charge was associated with a currently marketed product that experienced significant price erosion without an offsetting increase in customer demand, resulting in significantly lower than expected future margins.

For both the three and six months ended June 30, 2021, the Company recognized a $0.7 million intangible asset impairment charge associated with one IPR&D product, which experienced a delay in its estimated launch date.

13. Commitments and Contingencies

Commitments

Commercial Manufacturing, Collaboration, License, and Distribution Agreements

The Company continues to seek to enhance its product line and develop a balanced portfolio of differentiated products through product acquisitions and in-licensing. Accordingly, the Company, in certain instances, may be contractually obligated to make potential future development, regulatory, and commercial milestone, royalty and/or profit-sharing payments in conjunction with collaborative agreements or acquisitions that the Company has entered with third parties. The Company has also licensed certain technologies or intellectual property from various third parties. The Company is generally required to make upfront payments as well as other payments upon successful completion of regulatory or sales milestones. The agreements generally permit the Company to terminate the agreement with no significant continuing obligation. The Company could be required to make significant payments pursuant to these arrangements. These payments are contingent upon the occurrence of certain future events and, given the nature of these events, it is unclear when, if ever, the Company may be required to pay such amounts. Further, the timing of any future payment is not reasonably estimable. Refer to Note 5. Alliance and Collaboration for additional information. Certain of these arrangements are with related parties. Refer to Note 15. Related Party Transactions for additional information.

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Contingencies

Legal Proceedings

The Company's legal proceedings are complex, constantly evolving, and subject to uncertainty. As such, the Company cannot predict the outcome or impact of the legal proceedings set forth below. Additionally, the Company manufactures and derives a portion of its revenue from the sale of pharmaceutical products in the opioid class of drugs and may therefore face claims arising from the regulation and/or consumption of such products. The Company is also subject to legal proceedings that are not set forth below. While the Company believes it has meritorious claims and/or defenses to the matters described below (and intends to vigorously prosecute and defend them), the nature and cost of litigation is unpredictable, and an unfavorable outcome of the following proceedings could include damages, fines, penalties and injunctive or administrative remedies. For any proceedings where losses are probable and reasonably capable of estimation, the Company accrues for a potential loss. When the Company has a probable loss for which a reasonable estimate of the liability is a range of losses and no amount within that range is a better estimate than any other amount, the Company records the loss at the low end of the range. While these accruals have been deemed reasonable by the Company’s management, the assessment process relies heavily on estimates and assumptions that may ultimately prove inaccurate or incomplete. Additionally, unforeseen circumstances or events may lead the Company to subsequently change its estimates and assumptions. Unless otherwise indicated below, the Company is unable at this time to estimate the possible loss or the range of loss, if any, associated with such legal proceedings and claims. Any such claims, proceedings, investigations or litigation, regardless of the merits, might result in substantial costs to defend or settle, borrowings under our debt agreements, restrictions on product use or sales, or otherwise injure our business. The ultimate resolution of any or all claims, legal proceedings or investigations are inherently uncertain and difficult to predict, could differ materially from our estimates and could have a material adverse effect on the Company's results of operations and/or cash flows in any given accounting period, or on the Company's overall financial condition. The Company currently intends to vigorously prosecute and/or defend these proceedings as appropriate. From time to time, however, the Company may settle or otherwise resolve these matters on terms and conditions that it believes to be in its best interest. An insurance recovery, if any, is recorded in the period in which it is probable the recovery will be realized.

Charges related to legal matters, net were comprised of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Matter	2022		2021		2022		2021
Opana ER® Antitrust Litigation	$	262,837	$	—	$	262,837	$	—
Insurance Recoveries - Securities Class Action - Cambridge Retirement System v. Amneal	(11,500)		—		(15,500)		—
Galeas v. Amneal	—		—		1,200
Other	540		—		1,014		—
Total	$	251,877	$	—	$	249,551	$	—

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Liabilities for legal matters were comprised of the following (in thousands):

Matter	June 30, 2022		December 31, 2021
Opana ER® Antitrust Litigation(1)	$	215,000	$	—
Securities Class Action - Fleming v. Impax(1)	33,000		33,000
Securities Class Action - Cambridge Retirement System v. Amneal(1)	25,000		25,000
Galeas vs. Amneal	1,200
Other (2)	1,138		—
Current portion of liabilities for legal matters	$	275,338	$	58,000
Opana ER® Antitrust Litigation	$	50,000	$	—
Imputed interest	(2,082)
Accrued interest	90		—
Long-term portion of liabilities for legal matters (included in other long-term liabilities)	$	48,008	$	—

1) Refer to Note 17. Prepaid Expenses and Other Current Assets for information on settlement escrow deposits associated with these matters. Upon final approval by the court, escrow deposits made by the Company and its insurers will be used to satisfy the associated accrued liabilities.

(2)    Includes $0.2 million of accrued interest associated with the Opana ER® antitrust litigation preliminary settlement.

A schedule of payments associated with the Opana ER® antitrust litigation preliminary settlement is as follows:

Date	Amount Due
June 2022	$	100,000
July 2022	15,000
December 2022	16,056
January 2023	83,944
January 2024	50,000
	$	265,000

3% interest is payable on the amounts due in December 2022, January 2023, and January 2024. The Company includes the interest accrual on these amounts as a component of the current portion of liabilities for legal matters. Additional interest of 2.7% was imputed on the $50.0 million long-term liability due in January 2024, resulting in an initial discount of $2.2 million, which will be amortized to interest expense over the life of the liability using the effective interest method.

Refer to the respective discussions below for additional information on the significant matters in the tables above.

Medicaid Reimbursement and Price Reporting Matters

The Company is required to provide pricing information to state agencies, including agencies that administer federal Medicaid programs. Certain state agencies have alleged that manufacturers have reported improper pricing information, which allegedly caused them to overpay reimbursement costs. Other agencies have alleged that manufacturers have failed to timely file required reports concerning pricing information. Liabilities are periodically established by the Company for any potential claims or settlements of overpayment. The Company intends to vigorously defend against any such claims. The ultimate settlement of any potential liability for such claims may be higher or lower than estimated.

Patent Litigation

There is substantial litigation in the pharmaceutical, biological, and biotechnology industries with respect to the manufacture, use, and sale of new products which are the subject of conflicting patent and intellectual property claims. One or more patents often cover the brand name products for which the Company is developing generic versions and the Company typically has patent rights covering the Company’s branded products.

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Under federal law, when a drug developer files an Abbreviated New Drug Application (“ANDA”) for a generic drug seeking approval before expiration of a patent which has been listed with the FDA as covering the brand name product, the developer must certify its product will not infringe the listed patent(s) and/or the listed patent is invalid or unenforceable (commonly referred to as a “Paragraph IV” certification). Notices of such certification must be provided to the patent holder, who may file a suit for patent infringement within 45 days of the patent holder’s receipt of such notice. If the patent holder files suit within the 45-day period, the FDA can review and tentatively approve the ANDA, but generally is prevented from granting final marketing approval of the product until a final judgment in the action has been rendered in favor of the generic drug developer, or 30 months from the date the notice was received, whichever is sooner. The Company’s Generics segment is typically subject to patent infringement litigation brought by branded pharmaceutical manufacturers in connection with the Company’s Paragraph IV certifications seeking an order delaying the approval of the Company’s ANDA until expiration of the patent(s) at issue in the litigation.

The uncertainties inherent in patent litigation make the outcome of such litigation difficult to predict. For the Company’s Generics segment, the potential consequences in the event of an unfavorable outcome in such litigation include delaying the launch of its generic products until patent expiration. If the Company were to launch its generic product prior to successful resolution of a patent litigation, the Company could be liable for potential damages measured by the profits lost by the branded product manufacturer rather than the profits earned by the Company if it is found to infringe a valid, enforceable patent, or enhanced treble damages in cases of willful infringement. For the Company’s Specialty segment, an unfavorable outcome may significantly accelerate generic competition ahead of expiration of the patents covering the Company’s branded products. All such litigation typically involves significant expense.

The Company is generally responsible for all the patent litigation fees and costs associated with current and future products not covered by its alliance and collaboration agreements. The Company has agreed to share legal expenses with respect to third-party and Company products under the terms of certain of the alliance and collaboration agreements. The Company records the costs of patent litigation as expense in the period when incurred for products it has developed, as well as for products which are the subject of an alliance or collaboration agreement with a third-party.

Patent Defense Matter

Biogen International GMBH, et al. v. Amneal Pharmaceuticals LLC, et al. (Dimethyl Fumarate)

In June 2017, Biogen International GMBH (“Biogen”) filed suit against Amneal and various other generic manufacturers in the United States District Court for the District of Delaware (“D. Del.”) alleging patent infringement based on the filing of ANDAs by Amneal and others for generic alternatives to Biogen’s Tecfidera® (dimethyl fumarate) capsules product (Biogen International GMBH, et al. v. Amneal Pharmaceuticals LLC, et al., No. 1:17-cv-00823-MN). Biogen also filed suit in June 2017 against Mylan Pharmaceuticals Inc. (“Mylan”) in the United States District Court for the Northern District of West Virginia (“N.D. W. Va.”) relating to Mylan’s own ANDA for Tecfidera®. On June 18, 2020, the N.D. W. Va. court issued an order finding the sole Biogen patent at issue invalid. Biogen appealed the order (the “Mylan Appeal”) to the United States Court of Appeals for the Federal Circuit (the “Federal Circuit”). On September 22, 2020, the D. Del. court entered judgment in favor of the defendants (including Amneal), adopting the finding of invalidity made by the N.D. W. Va. court. Biogen appealed the D. Del. Order (“the Amneal Consolidated Appeal”).

Amneal, like Mylan and a number of other generic manufacturers, launched its generic dimethyl fumarate capsule products “at-risk,” pending the outcome of Biogen’s appeal of the N.D. W. Va. order.

On November 30, 2021, the Federal Circuit affirmed the N.D. W. Va. court’s order that Biogen’s patent is invalid: on March 23, 2022, issued a mandate in the Mylan Appeal as to the invalidity of the patent; and on June 16, 2022, Biogen filed a cert petition with the Supreme Court of the United States (the “U.S. Supreme Court”). The Amneal Consolidated Appeal is currently stayed pending the U.S. Supreme Court’s decision to consider Biogen’s cert petition.

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Other Litigation Related to the Company’s Business

Opana ER® FTC Matters

On February 25, 2014, Impax received a Civil Investigative Demand (“CID”) from the Federal Trade Commission (“FTC”) concerning its investigation into the drug Opana® ER and its generic equivalents. On March 30, 2016, the FTC filed a complaint against Impax, Endo Pharmaceuticals Inc. (“Endo”), and others in the United States District Court for the Eastern District of Pennsylvania, alleging that Impax and Endo violated antitrust laws when they entered into a June 2010 settlement agreement that resolved patent litigation in connection with the submission of Impax’s ANDA for generic original Opana® ER. In October 2016, the Court granted Impax’s motion to sever, formally terminating the suit against Impax. In January 2017, the FTC filed a Part 3 Administrative Complaint against Impax with similar allegations regarding the 2010 settlement. Following trial, in May 2018, the Administrative Law Judge ruled in favor of Impax and dismissed the Complaint in its entirety. FTC Complaint Counsel appealed the decision to the full Commission, and in March 2019, the FTC issued an Opinion & Order reversing the Administrative Law Judge’s decision. The Opinion & Order did not provide for any monetary damages but enjoined Impax from entering into future agreements containing certain terms. Impax filed a Petition for Review of the FTC’s Opinion & Order with the United States Court of Appeals for the Fifth Circuit, and on April 13, 2021, the Fifth Circuit issued a decision denying Impax’s Petition for Review, effectively affirming the FTC’s Opinion & Order. On September 10, 2021, Impax filed a petition for writ of certiorari in the U.S. Supreme Court, which was denied in December 2021.

On July 12, 2019, the Company received a CID from the FTC concerning an August 2017 settlement agreement between Impax and Endo, which resolved a subsequent patent infringement and breach of contract dispute between the parties regarding the above-referenced June 2010 settlement agreement related to Opana® ER. The Company cooperated with the FTC regarding the CID. On January 25, 2021, the FTC filed a complaint against Endo, Impax and Amneal in the United States District Court for the District of Columbia, alleging that the 2017 settlement violated antitrust laws. In April 2021, the Company filed a motion to dismiss the FTC’s complaint, which the District Court granted on March 24, 2022. The FTC appealed the District Court’s decision in May 2022, which appeal remains pending. The Company believes it has strong defenses to the FTC’s allegations and intends to vigorously defend the action, however, no assurance can be given as to the timing or outcome of the litigation.

Opana ER® Antitrust Litigation

From June 2014 to April 2015, several complaints styled as class actions on behalf of direct purchasers and indirect purchasers (or end-payors) and several separate individual complaints on behalf of certain direct purchasers (the “opt-out plaintiffs”) of Opana ER® were filed against Endo and Impax.

In December 2014, the United States Judicial Panel on Multidistrict Litigation (the “JPML”) transferred the actions to the United States District Court for the Northern District of Illinois (“N.D. Ill.”) for coordinated pretrial proceedings, as In Re: Opana ER Antitrust Litigation (MDL No. 2580) (“MDL”). In each case, the complaints allege that Endo engaged in an anticompetitive scheme by, among other things, entering into an anticompetitive settlement agreement with Impax to delay generic competition of Opana ER® and in violation of state and federal antitrust laws. Plaintiffs seek, among other things, unspecified monetary damages, and equitable relief, including disgorgement and restitution. On March 25, 2019, plaintiffs filed motions for class certification and served expert reports. Defendants’ oppositions to class certification and expert reports were filed and served on August 29, 2019. On April 15, 2020, defendants filed motions for summary judgment and each side moved to exclude certain opposing experts. On June 4, 2021, the MDL court granted the end-payor plaintiffs’ and direct purchaser plaintiffs’ class certification motions. Defendants appealed certification of the end-payor plaintiffs’ class, and on July 13, 2021, the Seventh Circuit granted defendants’ petition and remanded the case to the MDL to consider specific issues regarding uninjured class members. On August 11, 2021, the MDL court entered an order certifying end-payor plaintiffs’ class with an amended class definition. On June 4, 2021, the MDL also denied defendants’ summary judgment motion except as to certain state law claims and issued an opinion excluding certain experts of both sides.

In June 2022, Impax entered into a preliminary settlement agreement with the class of direct purchasers and the individual complainants that, if all conditions are satisfied, would result in the resolution of substantially all the direct purchasers’ and individual complainants’ underlying claims and lawsuits in the MDL. In addition, subsequently Impax entered into a separate preliminary settlement agreement with the class of indirect purchasers that, if all conditions are satisfied, would result in the resolution of substantially all the indirect purchasers’ underlying claims and lawsuits in the MDL. The preliminary settlement agreements are referred to herein collectively as the “Preliminary Settlement Agreements,” and the direct purchaser plaintiffs, indirect purchaser plaintiffs, and individual complainants are referred to herein collectively as “the Plaintiffs.”

Pursuant to the Preliminary Settlement Agreements, the Company has agreed to pay a total of $265.0 million between 2022 and mid-January 2024 to resolve substantially all the Plaintiffs’ claims. 3% interest is due on $150.0 million payable between December 2022 and mid-January 2024. The Preliminary Settlement Agreements are not an admission of liability or fault by

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Impax, the Company or its subsidiaries, and are subject to a number of other conditions including, with respect to the Preliminary Settlement Agreements between Impax and the purported classes of (i) direct purchaser plaintiffs and (ii) indirect purchaser plaintiffs, court approval. Upon satisfaction of the relevant pre-conditions, including but not limited to court approval of the final settlement agreements, substantially all of the claims and lawsuits in the litigation will have been resolved. During the three and six months ended June 30, 2022, the Company recorded a pre-tax charge of $262.8 million associated with the Preliminary Settlement Agreements. Imputed interest of $2.2 million will be recognized to interest expense during the payment period.

During June 2022, the Company paid $100.0 million into a settlement escrow account, which has been recognized as an escrow deposit as of June 30, 2022 (refer to Note 17. Prepaid Expenses and Other Current Assets). During July 2022, the Company paid an additional $15.0 million into a settlement escrow account.

Sergeants Benevolent Association Health & Welfare Fund v. Actavis, PLC, et. al.

In August 2015, a complaint styled as a class action was filed against Forest Laboratories (a subsidiary of Actavis plc) and numerous generic drug manufacturers, including Amneal, in the United States District Court for the Southern District of New York involving patent litigation settlement agreements between Forest Laboratories and the generic drug manufacturers concerning generic versions of Forest’s Namenda IR product. The complaint (as amended on February 12, 2016) asserts federal and state antitrust claims on behalf of indirect purchasers, who allege in relevant part that during the class period they indirectly purchased Namenda® IR or its generic equivalents in various states at higher prices than they would have absent the defendants’ allegedly unlawful anticompetitive conduct. Plaintiff seeks, among other things, unspecified monetary damages, and equitable relief, including disgorgement and restitution. On September 13, 2016, the Court stayed the indirect purchaser plaintiff’s claims pending factual development or resolution of claims brought in a separate, related complaint by direct purchasers (in which the Company is not a defendant). On September 10, 2018, the Court lifted the stay and referred the case to the assigned Magistrate Judge for supervision of supplemental, non-duplicative discovery in advance of mediation to be scheduled in 2019. The parties thereafter participated in supplemental discovery, as well as supplemental motion-to-dismiss briefing. On December 26, 2018, the Court granted in part and denied in part motions to dismiss the indirect purchaser plaintiff’s claims. On January 7, 2019, Amneal, its relevant co-defendants, and the indirect purchaser plaintiff informed the Magistrate Judge that they had agreed to mediation, which occurred in April 2019. In June 2019, the Company reached a settlement with plaintiff, subject to Court approval. On September 10, 2019, the Court entered an order preliminarily approving the settlement and indefinitely staying the case as to the settling defendants (including the Company). The settlement is now subject to final approval from the Court. The Company anticipates a final determination regarding approval to be made after a trial as to the plaintiff’s claims against the non-settling parties. Trial is scheduled to begin in October 2022. The amount of the settlement was not material to the Company's consolidated financial statements.

Attorney General of the State of Connecticut Interrogatories and Subpoena Duces Tecum

On July 14, 2014, Impax received a subpoena and interrogations from the State of Connecticut Attorney General (“Connecticut AG”) concerning its investigation into sales of Impax's generic product, digoxin. According to the Connecticut AG, the investigation concerned whether anyone engaged in a contract, combination, or conspiracy in restraint of trade or commerce which had the effect of (i) fixing, controlling, or maintaining prices or (ii) allocating or dividing customers or territories relating to the sale of digoxin. Impax cooperated in the investigation and produced documents and information in response to the subpoena in 2014 and 2015. However, no assurance can be given as to the timing or outcome of this investigation.

United States Department of Justice Investigations

On November 6, 2014, Impax disclosed that one of its sales representatives received a grand jury subpoena from the Antitrust Division of the United States Department of Justice (the “DOJ”). On March 13, 2015, Impax received a grand jury subpoena from the DOJ requesting the production of information and documents regarding the sales, marketing, and pricing of four generic prescription medications. Impax has cooperated in the investigation and produced documents and information in response to the subpoenas from 2014 to 2016. However, no assurance can be given as to the timing or outcome of the investigation.

On April 30, 2018, Impax received a CID from the Civil Division of the DOJ (the “Civil Division”). The CID requests the production of information and documents regarding the pricing and sale of Impax’s pharmaceuticals and interactions with other generic pharmaceutical manufacturers regarding whether generic pharmaceutical manufacturers engaged in market allocation and price-fixing agreements, paid illegal remuneration, and caused false claims to be submitted to the Federal government. Impax has cooperated with the Civil Division’s investigation. However, no assurance can be given as to the timing or outcome of the investigation.

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In Re Generic Pharmaceuticals Pricing Antitrust Litigation

Since March 2016, multiple putative antitrust class action complaints have been filed on behalf of direct purchasers, indirect purchasers (or end-payors), and indirect resellers, as well as individual complaints on behalf of certain direct and indirect purchasers, and municipalities (the “opt-out plaintiffs”) against manufacturers of generic drugs, including Impax and the Company. The complaints allege a conspiracy to fix, maintain, stabilize, and/or raise prices, rig bids, and allocate markets or customers for various generic drugs in violation of federal and state antitrust and consumer protection laws. Plaintiffs seek unspecified monetary damages and equitable relief, including disgorgement and restitution. The lawsuits have been consolidated in an MDL in the United States District Court for the Eastern District of Pennsylvania (In re Generic Pharmaceuticals Pricing Antitrust Litigation, No. 2724, (E.D. Pa.)).

On May 10, 2019, Attorneys General of 43 States and the Commonwealth of Puerto Rico filed a complaint in the United States District Court for the District of Connecticut against various manufacturers and individuals, including the Company, alleging a conspiracy to fix, maintain, stabilize, and/or raise prices, rig bids, and allocate markets or customers for multiple generic drugs. On November 1, 2019, the State Attorneys General filed an Amended Complaint on behalf of nine additional states and territories. On June 10, 2020, Attorneys General of 46 States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Territory of Guam, the U.S. Virgin Islands, and the District of Columbia filed a new complaint against various manufacturers and individuals, including the Company, alleging a conspiracy to fix prices, rig bids, and allocate markets or customers for additional generic drugs. Plaintiff States seek unspecified monetary damages and penalties and equitable relief, including disgorgement and restitution. On September 9, 2021, the State Attorneys General filed an Amended Complaint on behalf of California in addition to the original Plaintiff States. On March 30, 2022, the State of Alabama voluntarily dismissed all of its claims in the May 10, 2019 and June 10, 2020 actions against all defendants, including the Company, without prejudice. These lawsuits have been incorporated into MDL No. 2724. Fact and document discovery in MDL No. 2724 are proceeding. In May 2021, the court issued a revised order designating certain plaintiffs’ complaints regarding two generic drug products to proceed as bellwether cases, along with the Plaintiff States’ June 10, 2020, complaint involving the Company. No final scheduling order has yet been issued for this matter.

On June 3, 2020, the Company and Impax were also named in a putative class action complaint filed in the Federal Court of Canada in Toronto, Ontario against numerous generic pharmaceutical manufacturers, on behalf of a putative class of individuals who purchased generic drugs in the private sector from 2012 to the present (Kathryn Eaton v. Teva Canada Limited, et. al., No. T-607-20). The complaint alleges price fixing, among other claims, and has not progressed to date.

Prescription Opioid Litigation

The Company and certain of its affiliates have been named as defendants in various matters filed in state and federal courts relating to the sale of prescription opioid pain relievers. Plaintiffs in these actions include state Attorneys General, county and municipal governments, hospitals, Indian tribes, pension funds, third-party payors, and individuals. Plaintiffs seek unspecified monetary damages and other forms of relief based on various causes of action, including negligence, public nuisance, unjust enrichment, and civil conspiracy, as well as alleged violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), state and federal controlled substances laws and other statutes. All cases involving the Company also name other manufacturers, distributors and retail pharmacies as defendants, and there are numerous other cases involving allegations relating to prescription opioid pain relievers against other manufacturers, distributors, and retail pharmacies in which the Company and its affiliates are not named.

Nearly all cases pending in federal district courts have been consolidated for pre-trial proceedings in an MDL in the United States District Court for the Northern District of Ohio (In re: National Prescription Opiate Litigation, Case No. 17-mdl-2804). There are approximately 915 cases in the MDL in which the Company or its affiliates have been named as defendants. The Company also is named in approximately 119 state court cases pending in eleven states. The Company has filed motions to dismiss in many of these cases. No firm trial dates have been set except in Alabama (July 24, 2023) and in West Virginia (April 3, 2023). The Company will not be involved in the September 2022 trial in New Mexico previously reported as a result of the tentative settlement the Company reached with the New Mexico Attorney General in May 2022 to resolve the New Mexico Attorney General’s claims against the Company. The Company anticipates a final determination regarding approval to be made following a trial as to the plaintiff’s claims against the non-settling defendants.

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Securities Class Actions

On April 17, 2017, New York Hotel Trades Council & Hotel Association of New York City, Inc. Pension Fund filed an amended putative class action complaint in the United States District Court for the Northern District of California against Impax and four former Impax officers alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 (Fleming v. Impax Laboratories Inc., et al., No. 4:16-cv-6557-HSG). Plaintiff alleges that Impax (1) concealed collusion with competitors to fix the price of the generic drug digoxin; (2) concealed anticipated erosion in the price of generic drug diclofenac; and (3) overstated the value of the generic drug budesonide. In June 2021, Plaintiffs (New York Hotel Trades Council & Hotel Association of New York City, Inc. Pension Fund, and Sheet Metal Workers’ Pension Fund of Southern California, Arizona and Nevada, who had filed various motions to intervene as a plaintiff in the case) and defendants reached a tentative agreement to settle all claims in the case for $33.0 million, subject to certain terms and conditions and subject to court approval. The proposed settlement is covered in full by insurance (refer to Note 17. Prepaid Expenses and Other Current Assets for amounts deposited into a settlement escrow account). The district court entered an order granting preliminary approval of the settlement on November 22, 2021, and held a fairness hearing on March 31, 2022. On July 15, 2022, the district court entered an order granting final approval of the settlement. On July 21, 2022, a stipulated final judgment was entered, effectively terminating this matter before the district court.

On December 18, 2019, Cambridge Retirement System filed a putative class action complaint in the Superior Court of New Jersey, Somerset County against the Company and certain current or former officers alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 (Cambridge Retirement System v. Amneal Pharmaceuticals, Inc., et al., No. SOM-L-1701-19). Plaintiffs allege that the May 7, 2018, amended registration statement and prospectus issued in connection with the Amneal/Impax business combination was materially false and/or misleading because it failed to disclose that Amneal allegedly engaged in anticompetitive conduct to fix generic drug prices. Plaintiffs filed a motion for class certification on October 30, 2020, and in April 2021 filed a second amended complaint including similar allegations regarding a November 2017 registration statement and prospectus issued in connection with the Amneal/ Impax business combination. The Company’s motion to dismiss and Plaintiff’s motion for class certification are currently pending. In February 2022, the parties reached a tentative agreement to settle the claims, subject to, among other things, the negotiation and court approval of a definitive settlement agreement. On March 28, 2022, the parties executed a settlement agreement for $25.0 million that remains subject to, among other things, final court approval. On April 29, 2022, the court preliminarily approved the settlement. A hearing on final approval of the settlement agreement is set for August 15, 2022. For the three and six months ended June 30, 2022, the Company recorded insurance recoveries of $11.5 million and $15.5 million, respectively, related to this case (refer to Note 17. Prepaid Expenses and Other Current Assets for amounts deposited into a settlement escrow account).

United States Department of Justice / Drug Enforcement Administration Subpoenas

On July 7, 2017, Amneal Pharmaceuticals of New York, LLC received an administrative subpoena issued by the Long Island, NY District Office of the Drug Enforcement Administration (the “DEA”) requesting information related to compliance with certain recordkeeping and reporting requirements. On or about April 12, 2019, and May 28, 2019, the Company received grand jury subpoenas from the U.S. Attorney’s Office for the Eastern District of New York (the “USAO”) relating to similar topics concerning the Company’s suspicious order monitoring program and its compliance with the Controlled Substances Act. The Company is cooperating with the USAO in responding to the subpoenas and has entered civil and criminal amended tolling agreements with the USAO through approximately November 14, 2022. It is not currently possible to determine the exact outcome of these investigations.

On March 14, 2019, Amneal received a subpoena (the “Subpoena”) from the U.S. Attorney’s Office for the Southern District of Florida. The Subpoena requests information and documents generally related to the marketing, sale, and distribution of oxymorphone. The Company has cooperated and produced documents in response to the Subpoena. However, no assurance can be given as to the timing or outcome of the underlying investigation.

On October 7, 2019, Amneal received a subpoena from the New York State Department of Financial Services seeking documents and information related to sales of opioid products in the state of New York. The Company is cooperating with the request and providing responsive information. It is not currently possible to determine the exact outcome of this investigation.

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Ranitidine Litigation

The Company and its affiliates have been named as defendants, along with numerous other pharmaceutical manufacturers, wholesale distributors, and retail pharmacy chains, in In re Zantac/Ranitidine NDMA Litigation (MDL No. 2924), pending in the Southern District of Florida. Plaintiffs allege that defendants failed to disclose and/or concealed the alleged inherent presence of N-Nitrosodimethylamine (or “NDMA”) in brand-name Zantac® or generic ranitidine and the alleged associated risk of cancer. Consolidated groups of (a) personal injury plaintiffs, (b) economic loss/medical monitoring class action plaintiffs, and (c) third-party payor plaintiffs have each filed master complaints against brand and generic pharmaceutical manufacturers, distributors, retailers, and repackagers of ranitidine-containing products. The Company or its affiliates have been named in the three master complaints and approximately 316 personal injury short form complaints. On December 31, 2020, the Court dismissed in full the three master complaints against the generic manufacturers, including the Company and its affiliates, with leave to file amended complaints on certain claims relating to manufacturing, storage, and transportation. Plaintiffs filed amended complaints in February 2021, and Defendants filed various motions to dismiss the amended complaints in March 2021. On July 8, 2021, the MDL dismissed all claims against the generic drug manufacturers, including the Company and its affiliates, without leave to file further amended complaints. Plaintiffs have appealed the MDL court’s dismissal to the 11th Circuit Court of Appeals, which has consolidated the appeals of the personal injury cases.

On June 18, 2020, Amneal Pharmaceuticals LLC was named in a lawsuit filed in New Mexico brought by the New Mexico Attorney General alleging claims of public nuisance, negligence, and violations of consumer protection laws against various brand and generic manufacturers and store-brand distributors of Zantac®/Ranitidine. Plaintiff seeks unspecified compensatory and punitive damages, as well as abatement, medical monitoring, restitution, and injunctive relief. The Company filed a motion to dismiss on May 17, 2021, and filed a notice of supplemental authority based on the MDL court’s July 2021 dismissal order. The Court denied the motion on August 17, 2021. The Company filed a motion to dismiss based on lack of personal jurisdiction on January 26, 2022, which remains pending. On November 12, 2020, Amneal Pharmaceuticals LLC was named in a public nuisance and consumer protection lawsuit filed in state court in Baltimore, Maryland, on behalf of the Mayor and City Council of Baltimore. Defendants removed the case to federal court and on April 1, 2021, the case was remanded to state court. On August 23, 2021, the Company filed a motion to dismiss, which was granted.

On October 1, 2021, Amneal Pharmaceuticals LLC, and Amneal Pharmaceuticals of New York, LLC, were named in a lawsuit filed in Pennsylvania state court along with twenty-five other defendants, including brand-name manufacturers, generic manufacturers, and one Pennsylvania-based pharmacy. The Complaint tracks the dismissed master personal injury complaint from the MDL and was removed and subsequently transferred to the MDL on November 9, 2021. The case was remanded to Pennsylvania state court on April 22, 2022. The Company filed preliminary objections on May 18, 2022, which remain pending.

On February 8, 2022, plaintiff Gary Ross filed a lawsuit in Illinois state court naming Amneal Pharmaceuticals LLC and Amneal Pharmaceuticals of New York, LLC, along with twenty other defendants, including brand-name manufacturers, generic manufacturers, and retailers. The generic manufacturers filed a motion to dismiss on March 28, 2022.

On March 1, 2022, plaintiff Barbara Martin filed a lawsuit in Illinois state court naming Amneal Pharmaceuticals LLC, Amneal Pharmaceuticals of New York, LLC, and Amneal Pharmaceuticals, Inc., along with seven other defendants, including brand-name manufacturers, generic manufacturers, and retailers. Plaintiff has attempted to serve only Amneal Pharmaceuticals of New York, LLC. The Company filed a motion to dismiss on May 6, 2022.

Metformin Litigation

Amneal and AvKARE, Inc. were named as defendants, along with numerous other manufacturers, retail pharmacies, and wholesalers, in several putative class action lawsuits pending in the United States District Court for the District of New Jersey (“D.N.J.”), consolidated as In Re Metformin Marketing and Sales Practices Litigation (No. 2:20-cv-02324-MCA-MAH). The lawsuits all allege that defendants made and sold to putative class members generic metformin products that were “adulterated” or “contaminated” with NDMA.

An economic loss complaint filed on behalf of consumers and third-party payors who purchased or paid or made reimbursements for metformin alleges that plaintiffs suffered economic losses in connection with their purchases or reimbursements due to the purported contamination. On May 20, 2021, the Court granted Defendants’ motion to dismiss the economic loss complaint, and Plaintiffs filed an amended complaint on June 21, 2021. Defendants again moved to dismiss, and on March 30, 2022, the Court granted in part and denied in part Defendants’ second motion to dismiss. Plaintiffs filed a second amended complaint on May 6, 2022. Defendants again moved to dismiss on June 3, 2022, and briefing is ongoing. Initial discovery has begun. Additionally, medical monitoring class action complaints were filed on behalf of consumers who

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consumed allegedly contaminated metformin allege “cellular damage, genetic harm, and/or are at an increased risk of developing cancer” and seek medical monitoring, including evaluation and treatment. These cases are currently stayed.

On March 29, 2021, a plaintiff filed a complaint in the United States District Court for the Middle District of Alabama asserting claims against manufacturers of Valsartan, Losartan, and Metformin based on the alleged presence of nitrosamines in those products. The only allegations against Amneal concern Metformin. (Davis v. Camber Pharmaceuticals, Inc., et al., C.A. No. 2:21-00254 (M.D. Ala.) (the “Davis Action”)). On May 5, 2021, the JPML transferred the Davis Action into the In re: Valsartan, Losartan, and Irbesartan Products Liability Litigation multi-district litigation for pretrial proceedings.

On October 29, 2021, three plaintiffs filed a complaint in the District Court of Douglas County, Nebraska asserting claims against Amneal based on the alleged presence of nitrosamines in metformin. On January 10, 2022, Amneal removed the case to the United States District Court for the District of Nebraska. (Conrad et al v. Amneal Pharmaceuticals, Inc., No. 22-cv-00011-BCB-SMB (D. Neb.)). Amneal moved to dismiss the complaint on March 3, 2022, and on March 31, 2022, one plaintiff filed an amended complaint. Amneal moved to dismiss the amended complaint on June 1, 2022, and briefing is ongoing.

Xyrem® (Sodium Oxybate) Antitrust Litigation

Amneal has been named as a defendant, along with Jazz Pharmaceuticals, Inc. (“Jazz”) and numerous other manufacturers of generic versions of Jazz’s Xyrem® (sodium oxybate), in several putative class action lawsuits filed in the United States District Court for the Northern District of California and the United States District Court for the Southern District of New York, alleging that the generic manufacturers entered into anticompetitive agreements with Jazz in connection with settling patent litigation related to Xyrem®. Plaintiffs seek unspecified monetary damages and penalties as well as equitable relief, including disgorgement and restitution. On December 16, 2020, the JPML transferred the actions to the United States District Court for the Northern District of California for consolidated pretrial proceedings consolidated as In re Xyrem (Sodium Oxybate) Antitrust Litigation (No. 5:20-md-02966-LHK). Plaintiffs filed a consolidated amended class complaint in March 2021, which Defendants moved to dismiss. On August 13, 2021, the Court granted in part and denied in part Defendants’ motion, dismissing the federal damages claims and several state-law claims, while permitting the remaining claims to proceed. Discovery is currently ongoing.

Value Drug Company v. Takeda Pharmaceuticals U.S.A., Inc.

On August 5, 2021, Value Drug Company filed a purported class action lawsuit in the United States District Court for the Eastern District of Pennsylvania against Takeda Pharmaceuticals U.S.A., Inc. (“Takeda”) and numerous other manufacturers of generic versions of Takeda’s Colcrys® (colchicine), including Amneal Pharmaceuticals LLC, alleging that the generic manufacturers conspired with Takeda to restrict output of generic Colcrys in order to maintain higher prices, in violation of the antitrust laws. The Company, along with the other defendants, moved to dismiss for failure to state a claim, and on December 28, 2021, the Court granted the motion in full, with leave to amend. On January 18, 2022, Plaintiff filed its amended complaint, making substantively the same antitrust allegations, but alleging that the violations were effectuated by either a single overarching conspiracy or a series of bilateral conspiracies. The Company moved to dismiss the amended complaint for failure to state a claim. On March 30, 2022, the Court granted in part and denied in party defendants’ motion, dismissing the newly pled bilateral conspiracy claims but allowing the revised overarching conspiracy claim to proceed against all defendants. Discovery is currently ongoing.

Galeas v. Amneal Pharmaceuticals, Inc.

On July 27, 2021, Cesy Galeas filed a purported class action lawsuit in the U.S. District Court for the Eastern District of New York against Amneal Pharmaceuticals, Inc., alleging that the payment schedule for certain workers violated New York Labor Law. Specifically, the purported class, which presently consists of one named plaintiff contends that the Company paid the employees all owed wages, but did so bi-weekly, instead of weekly. In March 2022, the parties reached an agreement to settle the claims for $1.2 million, subject to, among other things, court approval of the contemplated settlement agreement. The parties filed a motion to approve the settlement agreement on July 13, 2022. A hearing on final approval of the settlement agreement is expected to be scheduled within the next 6-8 weeks. The Company recorded a $1.2 million charge associated with this matter for the six months ended June 30, 2022.

Russell Thiele, et al. v. Kashiv Biosciences, LLC, et.al.

On March 22, 2022, two purported Amneal stockholders filed a stockholder derivative lawsuit in the Court of Chancery of the State of Delaware against Kashiv and certain members of the Company’s Board of Directors. The Company is named as a nominal defendant. The suit alleges that the Company’s January 2021 acquisition of a 98% interest in KSP, then a wholly owned subsidiary of Kashiv, was unfair to the Company, that the defendant Directors breached fiduciary duties of loyalty and good faith in connection with the transaction, and that the transaction unjustly enriched Kashiv and certain of the defendants

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who had a financial interest in Kashiv. The suit, which is allegedly brought on the Company’s behalf, seeks among other remedies rescission of the transaction and unspecified monetary damages. Defendants moved to dismiss the complaint for failure to state a claim and failure to plead demand futility on June 3, 2022, and Plaintiffs filed an amended complaint on July 29, 2022.

14. Segment Information

The Company has three reportable segments: Generics, Specialty, and AvKARE.

Generics

Generics develops, manufactures and commercializes complex oral solids, injectables, ophthalmics, liquids, topicals, softgels, inhalation products and transdermals across a broad range of therapeutic categories. Generics’ retail and institutional portfolio contains many difficult-to-manufacture products or products that have a high barrier-to-entry, such as oncologics, anti-infectives and supportive care products for healthcare providers.

Specialty

Specialty delivers proprietary medicines to the U.S. market. The Company offers a growing portfolio in core therapeutic categories including central nervous system disorders, endocrinology, parasitic infections and other therapeutic areas. The Company's specialty products are marketed through skilled specialty sales and marketing teams, who call on neurologists, movement disorder specialists, endocrinologists and primary care physicians in key markets throughout the U.S. Specialty also has a number of product candidates that are in varying stages of development.

AvKARE

AvKARE provides pharmaceuticals, medical and surgical products and services primarily to governmental agencies, primarily focused on serving the Department of Defense and the Department of Veterans Affairs.  AvKARE is also a wholesale distributor of bottle and unit dose pharmaceuticals under the registered names of AvKARE and AvPAK, as well as medical and surgical products.  AvKARE is also a packager and wholesale distributor of pharmaceuticals and vitamins to its retail and institutional customers who are located throughout the United States focused primarily on offering 340b-qualified entities products to provide consistency in care and pricing.

Chief Operating Decision Markers

The Company’s chief operating decision makers evaluate the financial performance of the Company’s segments based upon segment operating income (loss). Items below operating income (loss) are not reported by segment, since they are excluded from the measure of segment profitability reviewed by the Company’s chief operating decision makers. Additionally, general and administrative expenses, certain selling expenses, certain litigation settlements, and non-operating income and expenses are included in “Corporate and Other.” The Company does not report balance sheet information by segment since it is not reviewed by the Company’s chief operating decision makers.

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The tables below present segment information reconciled to total Company financial results, with segment operating income (loss) including gross profit less direct selling, general and administrative expenses, research and development expenses, and other operating expenses to the extent specifically identified by segment (in thousands):

Three Months Ended June 30, 2022	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	364,895	$	97,001	$	97,459	$	—	$	559,355
Cost of goods sold	223,423		42,791		87,510		—		353,724
Cost of goods sold impairment charges	5,112		—		—		—		5,112
Gross profit	136,360		54,210		9,949		—		200,519
Selling, general and administrative	26,558		23,171		12,735		36,342		98,806
Research and development	44,174		6,574		—		—		50,748
Intellectual property legal development expenses	778		43		—		—		821
Acquisition, transaction-related and integration expenses	8		32		—		201		241
Charges related to legal matters, net	483		—		—		251,394		251,877
Insurance recoveries for property losses and associated expenses	(1,911)		—		—		—		(1,911)
Change in fair value of contingent consideration	—		(270)		—		—		(270)
Other operating income	(1,175)		—		—		—		(1,175)
Operating income (loss)	$	67,445	$	24,660	$	(2,786)	$	(287,937)	$	(198,618)

Six Months Ended June 30, 2022	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	682,642	$	182,087	$	192,259	$	—	$	1,056,988
Cost of goods sold	422,453		86,644		167,689		—		676,786
Cost of goods sold impairment charges	5,112		—		—		—		5,112
Gross profit	255,077		95,443		24,570		—		375,090
Selling, general and administrative	54,151		47,571		26,145		69,604		197,471
Research and development	87,395		16,151		—		—		103,546
Intellectual property legal development expenses	1,550		35		—		—		1,585
Acquisition, transaction-related and integration expenses	8		32		—		635		675
Charges related to legal matters, net	2,157		—		—		247,394		249,551
Insurance recoveries for property losses and associated expenses	(1,911)		—		—		—		(1,911)
Restructuring and other charges	206		—		—		525		731
Change in fair value of contingent consideration	—		(70)		—		—		(70)
Other operating income	(1,175)		—		—		—		(1,175)
Operating income (loss)	$	112,696	$	31,724	$	(1,575)	$	(318,158)	$	(175,313)

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Three Months Ended June 30, 2021	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	360,437	$	88,635	$	86,003	$	—	$	535,075
Cost of goods sold	204,154		48,683		69,740		—		322,577
Gross profit	156,283		39,952		16,263		—		212,498
Selling, general and administrative	11,797		20,656		13,599		40,105		86,157
Research and development	43,431		9,433		—		—		52,864
In-process research and development charges	710		—		—		—		710
Intellectual property legal development expenses	1,340		25		—		—		1,365
Acquisition, transaction-related and integration expenses	—		16		491		3,776		4,283
Operating income (loss)	$	99,005	$	9,822	$	2,173	$	(43,881)	$	67,119

Six Months Ended June 30, 2021	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	672,945	$	184,566	$	170,669	$	—	$	1,028,180
Cost of goods sold	389,452		96,881		137,787		—		624,120
Gross profit	283,493		87,685		32,882		—		404,060
Selling, general and administrative	30,559		40,537		27,303		78,484		176,883
Research and development	79,548		21,498		—		—		101,046
In-process research and development charges	710		—		—		—		710
Intellectual property legal development expenses	4,922		25		—		—		4,947
Acquisition, transaction-related and integration expenses	—		16		1,422		5,647		7,085
Restructuring and other charges	80		—		—		283		363
Operating income (loss)	$	167,674	$	25,609	$	4,157	$	(84,414)	$	113,026

(1)Operating results for the sale of Amneal products by AvKARE are included in Generics.

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15. Related Party Transactions

The Company has various business agreements with certain parties in which there is some common ownership. However, the Company does not directly own or manage of any of such related parties. Except as disclosed below, as of and for the three and six months ended June 30, 2022, there were no material changes to our related party agreements or relationships as described in Note 24. Related Party Transactions and Note 22. Stockholders’ Equity in our 2021 Annual Report on Form 10-K.

Amendment to Kashiv Biosciences LLC License and Commercialization Agreement

In 2017 Kashiv and Amneal entered into an exclusive license and commercialization agreement (the “Kashiv Biosimilar Agreement”) to distribute and sell two biosimilar products, Filgrastim and Pegfilgrastim, in the U.S. Kashiv is responsible for development, regulatory filings, obtaining FDA approval, and manufacturing, and Amneal is responsible for marketing, selling, and pricing activities. The term of the agreement is 10 years from the respective product’s launch date.

The Kashiv Biosimilar Agreement provided for potential future milestone payments to Kashiv of up to $183.0 million, as follows: (i) up to $22.5 million relating to regulatory approval and execution, (ii) up to $43.0 million for successful delivery of commercial launch inventory, (iii) up to $50.0 million depending on the number of competitors at launch for one product, and (iv) between $15.0 million and $67.5 million for the achievement of cumulative net sales for both products.

In July 2022, the Company and Kashiv amended the Kashiv Biosimilar Agreement to, among other things, (i.) eliminate milestones related to the manufacturing and delivery of the Kashiv products, (ii.) revise the net sales milestones to provide for future milestone payments by the Company to Kashiv of up to $37.5 million for the achievement of cumulative combined net sales goals for both products, and (iii.) adjust the supply price of product that Kashiv manufacturers and supplies to the Company, which will lower the cost per unit of both products.

The remaining milestones are subject to reaching certain commercial sales volume objectives. In addition, the agreement provides for Amneal to pay a profit share equal to 50% of net profits, after considering manufacturing and marketing costs.

On May 27, 2022, the FDA approved the Company’s biologic license application, associated with the amended Kashiv Biosimilar Agreement, for Pegfilgrastim-pbbk. In connection with this regulatory approval and associated activity, the Company incurred a milestone payable to Kashiv of $15.0 million during the three and six months ended June 30, 2022. The milestone was capitalized as an intangible asset and will be amortized to cost of sales over an estimated useful life of 8.3 years.

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The following table summarizes the Company’s related party transactions (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
Related Party and Nature of Transaction	Caption in Balance Sheet and Statement of Operations	2022		2021		2022		2021
Kashiv Biosciences LLC
Parking space lease (1)	Cost of goods sold	$	25	$	25	$	50	$	50
Development and commercialization agreements - various products (1)	Research and development	—		—		—		32
License and commercialization agreement - Filgrastim and Pegfilgrastim - regulatory approval milestone for Filgrastim(1)	Selling, general and administrative	—		—		5,000		—
Development and commercialization agreement - Ganirelix Acetate and Cetrorelix Acetate (1)	Research and development	1,706		1		1,723		644
Development and commercialization agreements - various products (2)	Research and development	—		259		—		150
Profit sharing - various products (2)	Cost of goods sold	—		—		—		2,680
Commercial product support for EluRyng and other products (2)	Inventory and cost of goods sold	—		—		—		1,239
K127 development and commercialization agreement (2)	Research and development	—		—		—		3,000
Transition services associated with the KSP Acquisition	Selling, general and administrative	—		—		—		300
Development and commercialization - Consulting	Research and development	—		500		—		500
License and commercialization agreement - Filgrastim and Pegfilgrastim - regulatory approval milestone for Pegfilgrastim-pbbk(1)	Intangible asset	15,000		—		15,000		—
Total		$	16,731	$	785	$	21,773	$	8,595
LAX Hotel, LLC (3)
Financing lease	Inventory and cost of goods sold	$	—	$	—	$	—	$	217
Interest component of financing lease	Interest expense	—		—		—		362
Total		$	—	$	—	$	—	$	579
Other Related Parties
Kanan, LLC - operating lease	Inventory and cost of goods sold	$	526	$	525	$	1,052	$	1,051
Sutaria Family Realty, LLC - operating lease	Inventory and cost of goods sold	$	305	$	299	$	601	$	586
PharmaSophia, LLC - research and development services income	Research and development	$	(15)	$	(42)	$	(30)	$	(299)
Fosun International Limited - license and supply agreement	Net revenue	$	—	$	—	$	—	$	—
Apace KY, LLC d/b/a Apace Packaging LLC - packaging agreement	Inventory and cost of goods sold	$	964	$	3,416	$	1,422	$	5,517
Tracy Properties LLC - operating lease	Selling, general and administrative	$	136	$	131	$	271	$	262
AzaTech Pharma LLC - supply agreement	Inventory and cost of goods sold	$	1,431	$	837	$	2,652	$	1,980
AvPROP, LLC - operating lease	Selling, general and administrative	$	50	$	38	$	90	$	77
Tarsadia Investments, LLC - financial consulting services	Selling, general and administrative	$	—	$	—	$	—	$	—
Avtar Investments, LLC consulting services	Selling, general and administrative	$	85	$	92	$	169	$	175
TPG Operations, LLC consulting services	Selling, general and administrative	$	—	$	—	$	19	$	—
Alkermes	Inventory and cost of goods sold	$	77	$	—	$	107	$	—
R&S Solutions - logistics services	Selling, general and administrative	$	20	$	—	$	39	$	—

(1) Agreement between Amneal and Kashiv was not affected by the Acquisition of KSP (refer to Note 3. Acquisitions for additional information).

(2) Agreement between Amneal and Kashiv was acquired with KSP and has become a transaction among Amneal’s consolidated subsidiaries subsequent to the transaction closing on April 2, 2021. The disclosure relates to the historical agreement as a related party transaction through April 2, 2021 (refer to Note 3. Acquisitions for additional information).

(3) During January 2021, LAX Hotel LLC sold its interests in the leased buildings to an unrelated third-party. Therefore, this lease was no longer a related party transaction subsequent to that date.

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The following table summarizes the amounts due to or from the Company for related party transactions (in thousands):

	June 30, 2022		December 31, 2021
Kashiv - deferred consideration associated with the KSP Acquisition (1)	$	500	$	30,500
Kashiv - various agreements(2)	21,715		314
Sellers of Puniska - consideration for acquisition (3)	—		14,225
Apace Packaging LLC - packaging agreement	1,058		560
AzaTech Pharma LLC - supply agreement	1,055		1,783
Avtar Investments LLC - consulting services	98		37
Sellers of AvKARE LLC and R&S - accrued interest on Sellers Notes (4)	442		442
R&S Solutions - logistics services	7		—
Alkermes	29		—
Related party payables - short term	$	24,904	$	47,861
PharmaSophia, LLC - research and development agreement	$	1,111	$	1,081
Sellers of AvKARE LLC and R&S - state tax indemnification	204		68
Kashiv - various agreements	23		14
Apace Packaging, LLC - packaging agreement	—		16
Related party receivables - short term	$	1,338	$	1,179
Kashiv - contingent consideration (5)	$	5,830	$	5,900
Sellers of AvKARE LLC and R&S - accrued interest on Sellers Notes (4)	4,824		3,719
Related party payables - long term	$	10,654	$	9,619

(1) As discussed in Note 3. Acquisitions, the purchase price for the KSP Acquisition included a contractually stated amount of deferred consideration of $30.5 million. The deferred consideration consisted of $30.0 million, which the Company paid during January 2022, and $0.5 million, which the Company expects to pay during the third quarter of 2022.

(2) A $5.0 million milestone was payable to Kashiv for regulatory approval of Filgrastim and a $15.0 million milestone was payable to Kashiv for regulatory approval of Pegfilgrastim-pbbk as of June 30, 2022.

(3) As discussed in Note 3. Acquisitions, the purchase price for the Puniska Acquisition included $14.2 million due to the sellers for the satisfaction of a preexisting payable upon approval of the transaction by the government of India. The Company satisfied this liability in March 2022.

(4) Represents accrued interest on the Sellers Notes associated with the Rondo Acquisitions, as defined and discussed in Note 3. Acquisitions and Divestitures and Note 17. Debt in the Company’s 2021 Annual Report on Form 10-K.

(5)     The contingent consideration liability was associated with the KSP Acquisition. Refer to Note 3. Acquisitions for additional information.

Puniska Acquisition - Redeemable Non-Controlling Interests

The Company paid $1.7 million for the remaining 26% equity interest of Puniska (included in redeemable non-controlling interests in the Company’s consolidated balance sheet as of December 31, 2021) upon approval of the Puniska Acquisition by the government of India in March 2022.

16. Stockholders’ Equity and Redeemable Non-Controlling Interests

Non-Controlling Interests

The Company consolidates the financial statements of Amneal and its subsidiaries and records non-controlling interests for the portion of Amneal’s economic interests that is not held by the Company. Non-controlling interests are adjusted for capital transactions that impact the non-publicly held economic interests in Amneal.

Under the terms of Amneal's limited liability company agreement, as amended, Amneal is obligated to make tax distributions to its members. During the three and six months ended June 30, 2022, the Company recorded net tax distributions of $2.9 million and $7.3 million, respectively, as a reduction of non-controlling interests. For the three and six months ended June 30, 2021,

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the Company recorded tax distributions of $16.6 million and $25.9 million, respectively, as a reduction of non-controlling interests.

As discussed in Note 3. Acquisitions, the Company acquired a 98% interest in KSP on April 2, 2021. The sellers of KSP, a related party, hold the remaining interest. The Company attributes 2% of the net income or loss of KSP to the non-controlling interests.

Redeemable Non-Controlling Interests

As discussed in Note 1. Nature of Operations, the Company acquired a 65.1% controlling interest in both AvKARE, LLC and R&S in 2020.  The sellers of AvKARE, LLC and R&S hold the remaining 34.9% interest (“Rondo Class B Units”) in the holding company that directly owns the acquired companies (“Rondo”).  Beginning on January 1, 2026, the holders of the Rondo Class B Units have the right (“Put Right”) to require the Company to acquire the Rondo Class B Units for a purchase price that is based on a multiple of Rondo’s earnings before income taxes, depreciation, and amortization (EBITDA) if certain financial targets and other conditions are met.  Additionally, beginning on January 31, 2020, the Company has the right to acquire the Rondo Class B Units based on the same value and conditions as the Put Right.  The Rondo Class B Units are also redeemable by the holders upon a change in control.

Since the redemption of the Rondo Class B Units is outside of the Company's control, the units have been presented outside of stockholders’ equity as redeemable non-controlling interests. Upon closing of the Rondo Acquisitions, the redeemable non-controlling interests were recorded as a component of the fair value of consideration transferred at an estimated fair value of $11.0 million. The fair value of the redeemable non-controlling interests was estimated using the Monte-Carlo simulation approach under the option pricing framework, which considers the redemption rights of both the Company and the holders of the Rondo Class B Units.

The Company attributes 34.9% of the net income or loss associated with Rondo to redeemable non-controlling interests. The Company will also accrete the redeemable non-controlling interests to redemption value upon an event that makes redemption probable. For the three and six months ended June 30, 2022, the Company recorded tax distributions of $0.6 million and $2.6 million as a reduction of redeemable non-controlling interests, respectively. For the three and six months ended June 30, 2021, the Company recorded tax distributions of $1.2 million and $1.7 million as a reduction of redeemable non-controlling interests, respectively.

Redeemable Non-Controlling Interests - Puniska

As discussed in Note 3. Acquisitions, the Company acquired 74% of the equity interests in Puniska on November 2, 2021. Amneal was required pursuant to the purchase agreement to acquire the remaining 26% of Puniska upon approval of the transaction by the government of India. Since approval of the government of India was outside of the Company’s control, upon closing of the Puniska Acquisition, the equity interests of Puniska that the Company did not own were presented outside of stockholders' equity as redeemable non-controlling interests. The Company attributed 26% of the net losses of Puniska to the redeemable non-controlling interests.

Upon approval of the transaction by the government of India in March 2022, the Company paid the $1.7 million redemption value for the remaining 26% of the equity interests of Puniska. For the six months ended June 30, 2022, the Company recorded accretion of $0.9 million to increase the redeemable non-controlling interests to redemption value.

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Changes in Accumulated Other Comprehensive (Loss) Income by Component (in thousands):

	Foreign currency translation adjustments		Unrealized (loss) gain on cash flow hedge, net of tax		Accumulated other comprehensive (loss) income
Balance December 31, 2020	$	(14,497)	$	(26,821)	$	(41,318)
Other comprehensive loss before reclassification	(4,255)		20,972		16,717
Reallocation of ownership interests	(93)		(133)		(226)
Balance December 31, 2021	(18,845)		(5,982)		(24,827)
Other comprehensive loss before reclassification	(7,816)		33,623		25,807
Reallocation of ownership interests	(115)		3		(112)
Balance June 30, 2022	$	(26,776)	$	27,644	$	868

17. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets are comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Deposits and advances	$	1,694	$	1,174
Prepaid insurance	7,478		7,962
Prepaid regulatory fees	1,265		3,710
Income and other tax receivables	11,535		8,850
Prepaid taxes	15,953		16,085
Escrow deposits for legal settlements(1)	148,500		33,000
Other current receivables	17,748		9,770
Other prepaid assets	20,895		17,309
Chargebacks receivable (2)	7,136		12,358
Total prepaid expenses and other current assets	$	232,204	$	110,218

(1)Escrow deposits for legal settlements includes preliminary settlement escrow deposits by the Company’s insurers of $48.5 million and $33.0 million as of June 30, 2022 and December 31, 2021, respectively, associated with insured securities class action lawsuits. Escrow deposits for legal settlements also includes an escrow deposit of $100.0 million for preliminary settlement agreements related to the Opana ER® antitrust litigation as of June 30, 2022. Refer to Note 13. Commitments and Contingencies for additional details regarding these matters.

(2)When a sale occurs on a contract item, the difference between the cost paid to the manufacturer by the Company and the contract cost that the end customer has with the manufacturer is rebated back to the Company by the manufacturer. The Company establishes a chargeback (rebate) receivable and a reduction to cost of goods sold in the same period as the related sale.

18. Other Assets

Other assets were comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Interest rate swap (1)	$	56,221	$	—
Security deposits	5,402		3,895
Long-term prepaid expenses	7,086		5,896
Deferred revolving credit facility costs	2,453		1,603
Other long term assets	8,674		9,220
Total	$	79,836	$	20,614

(1)Refer to Note 10. Fair Value Measurements and Note 11. Financial Instruments for information about the Company’s interest rate swap.

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19. Government Grants

In November 2021, Amneal Pharmaceuticals Private Limited, a subsidiary of the Company in India, was selected as one of 55 companies to participate in the PLI Scheme. The government of India established the PLI Scheme to make India’s domestic manufacturing more globally competitive and to create global champions within the pharmaceutical sector by encouraging investment and product diversification with a focus on manufacturing complex and high value goods.

Under the PLI Scheme, the Company is eligible to receive up to 10 billion Indian rupees, or approximately $126.9 million (based on conversion rates as of June 30, 2022), over a maximum six-year period, starting in 2022. To be eligible to receive the cash incentives, Amneal must achieve (i) minimum cumulative expenditures towards developmental and/or capital investments and (ii) a minimum percentage growth in sales of eligible products.

The Company has concluded the PLI Scheme is government assistance in the form of a grant and, in the absence of specific accounting guidance under U.S. GAAP, the Company has analogized to International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance. The Company has evaluated the PLI Scheme to be a grant related to income and will recognize the cash incentives in the consolidated statements of operations on a systematic basis within other operating income. For the three and six months ended June 30, 2022, the Company recognized $1.2 million of other operating income associated with the PLI Scheme. Receivables from the government of India of $0.9 million and $0.3 million, respectively, were recorded within prepaid and other current assets and other long-term assets as of June 30, 2022, respectively, based on the terms of the PLI Scheme.

20. Debt

The following is a summary of the Company’s total indebtedness (in thousands):

	June 30, 2022		December 31, 2021
Term Loan due May 2025	$	2,577,376	$	2,590,876
Rondo Term Loan due January 2025	92,000		139,250
Other	—		624
Total debt	2,669,376		2,730,750
Less: debt issuance costs	(17,009)		(20,083)
Total debt, net of debt issuance costs	2,652,367		2,710,667
Less: current portion of long-term debt	(29,920)		(30,614)
Total long-term debt, net	$	2,622,447	$	2,680,053

There have been no material changes in the Company’s long-term debt since December 31, 2021, except as disclosed below. Refer to Note 17. Debt in our 2021 Annual Report on Form 10-K for additional information.

On June 2, 2022, the Company entered into a revolving credit agreement (the “New Credit Agreement”), which amended the existing senior secured asset backed revolving credit facility (the “Revolving Credit Facility”). The New Credit Agreement (i) replaced the Revolving Credit Facility with a $350.0 million senior secured revolving credit facility (the “New Revolving Credit Facility”) that matures on June 2, 2027, (ii) provides for up to $25.0 million of the New Revolving Credit Facility to be available for the purpose of issuing letters of credit; (iii) provides for up to $35.0 million of the New Revolving Credit Facility to be available for the purpose of issuing swingline loans; (iv) allows the the Company to request an incremental increase in the revolving facility commitments by up to $150.0 million; and (v) terminated the revolving credit facility commitments of lenders under the Revolving Credit Facility.

Interest is payable on the New Revolving Credit Facility at a rate equal to the alternate base rate (“ABR”) or the secured overnight financing rate (“SOFR”), plus an applicable margin, in each case, subject to a ABR floor of 1.00% or a SOFR floor of 0.00%, as applicable. The applicable margin for the New Revolving Credit Facility is initially 0.25% per annum for ABR loans and 1.25% per annum for SOFR loans. The applicable margin on borrowings under the New Revolving Credit Facility thereafter will adjust ranging from 0.25% to 0.50% per annum for ABR loans and from 1.25% to 1.50% per annum for SOFR loans determined by the average historical excess availability. The proceeds of any loans made under the New Revolving Credit Facility can be used for capital expenditures, acquisitions, working capital needs and other general purposes, subject to covenants as described below. The Borrower pays a commitment fee based on the average daily unused amount of the New Revolving Credit Facility at a rate of 0.25% per annum.

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Subject to the refinancing, there was a decrease in the borrowing capacity of certain lenders between the New Revolving Credit Facility and the Revolving Credit Facility. As a result, the Company recorded $0.3 million charge for the three and six months ended June 30, 2022 in loss on refinancing. Additionally, the Company incurred costs of $1.6 million associated with the Credit Agreement, which was capitalized as deferred financing costs with the remaining unamortized costs associated with the New Revolving Credit Facility, and will be amortized over the life of the New Credit Agreement.

The New Credit Agreement contains certain negative covenants that, among other things and subject to certain exceptions, restrict the Company’s and certain subsidiaries’ ability to incur additional debt or guarantees, grant liens, make loans, acquisitions or other investments, dispose of assets, merge, dissolve, liquidate or consolidate, pay dividends or other payments on capital stock, make optional payments or modify certain debt instruments, modify certain organizational documents, enter into arrangements that restrict the ability to pay dividends or grant liens, or enter into or consummate transactions with affiliates. The New Revolving Credit Facility also includes a financial covenant whereby the Company must maintain a minimum fixed-charge coverage ratio if certain borrowing conditions are met. The New Revolving Credit Facility contains customary events of default, subject to certain exceptions. Upon the occurrence of certain events of default, the obligations under the New Revolving Credit Facility may be accelerated and the commitments may be terminated.

As of June 30, 2022, the Company had $85.0 million in borrowings under the New Revolving Credit Facility.

During June 2022, the Company prepaid $42.8 million of outstanding principal of the Rondo Term Loan, and repaid the remaining $0.6 million in principal of other debt obligations.

21. Property Losses and Associated Expenses

On September 1, 2021, Tropical Storm Ida brought extreme rainfall and flash flooding to New Jersey that caused damage to two of the Company’s facilities. Operations at these facilities were closed for the majority of September 2021 in order to assess the damage, make repairs and restore operations.

The Company concluded that all inventory on-hand at the time of the flooding was damaged and unsellable and that a majority of the equipment was damaged beyond repair. In addition, the Company incurred significant costs to repair both facilities. Accordingly, the Company recorded $10.4 million of charges for the year ended December 31, 2021.

The Company has insurance policies for property damage, inventory losses and business interruption. Insurance recoveries are recorded in the periods when it is probable they will be realized. During the three and six months ended June 30, 2022, insurance recoveries of $1.9 million associated with property damage and inventory losses were received and recorded in insurance recoveries for property losses and associated expenses.

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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Amneal Pharmaceuticals, Inc. (the “Company,” “we,” “us,” or “our”) is a pharmaceutical company specializing in developing, manufacturing, marketing and distributing high-value generic pharmaceutical products across a broad array of dosage forms and therapeutic areas, as well as branded products. We operate principally in the United States, India, and Ireland, and sell to wholesalers, distributors, hospitals, chain pharmacies and individual pharmacies, either directly or indirectly.

The Company is a holding company, whose principal assets are common units (“Amneal Common Units”) of Amneal Pharmaceuticals, LLC (“Amneal”). In 2018, Amneal completed the acquisition of Impax Laboratories, Inc. (“Impax”), a generic and specialty pharmaceutical company.

The group of investors, together with their affiliates and certain assignees, who owned Amneal when it was a private company (the “Members”) held 50.2% of Amneal Common Units and the Company held the remaining 49.8% as of June 30, 2022.

The following discussion and analysis contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth under Item 1A. Risk Factors in our 2021 Annual Report on Form 10-K and under the heading Cautionary Note Regarding Forward-Looking Statements included elsewhere in this Quarterly Report on Form 10-Q.

The following discussion and analysis for the three and six months ended June 30, 2022 should also be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements for the year ended December 31, 2021 included in our 2021 Annual Report on Form 10-K.

Overview

We have three reportable segments: Generics, Specialty, and AvKARE.  

Generics

Our Generics segment includes over 250 product families covering an extensive range of dosage forms and delivery systems, including both immediate and extended release oral solids, powders, liquids, sterile injectables, nasal sprays, inhalation and respiratory products, ophthalmics (which are sterile pharmaceutical preparations administered for ocular conditions), films, transdermal patches and topicals (which are creams or gels designed to administer pharmaceuticals locally through the skin). We focus on developing products with substantial barriers-to-entry resulting from complex drug formulations or manufacturing, or legal or regulatory challenges. Generic products, particularly in the U.S., generally contribute most significantly to revenues and gross margins at the time of their launch, and even more so in periods of market exclusivity, or in periods of limited generic competition. As such, the timing of new product introductions can have a significant impact on the Company’s financial results. The entrance into the market of additional competition generally has a negative impact on the volume and / or pricing of the affected products. Additionally, pricing is determined by market place dynamics and is often affected by factors outside of the Company’s control.

Specialty

Our Specialty segment is engaged in the development, promotion, sale and distribution of proprietary branded pharmaceutical products, with a focus on products addressing central nervous system (“CNS”) disorders, including migraine and Parkinson’s disease. Our portfolio of products includes Rytary®, an extended release oral capsule formulation of carbidopa-levodopa for the treatment of Parkinson’s disease, post-encephalitic parkinsonism, and parkinsonism that may follow carbon monoxide intoxication or manganese intoxication. In addition to Rytary®, our promoted Specialty portfolio includes Unithroid® (levothyroxine sodium), for the treatment of hypothyroidism, which is sold under a license and distribution agreement with Jerome Stevens Pharmaceuticals, Inc., and Emverm® (mebendazole) 100 mg chewable tablets, for the treatment of pinworm, whipworm, common roundworm, common hookworm and American hookworm in single or mixed infections.

For Specialty products, the majority of the product’s commercial value is usually realized during the period in which the product has market exclusivity. In the U.S. when market exclusivity expires and generic versions of a product are approved and marketed, there can often be very substantial and rapid declines in the branded product’s sales. For example, the pediatric exclusivity of the AstraZeneca patent licensed to Impax for Zomig® Nasal Spray expired in May 2021, and we lost market exclusivity in the fourth quarter of 2021.

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AvKARE

Our AvKARE segment provides pharmaceuticals, medical and surgical products, and services primarily to governmental agencies. AvKARE is a re-packager of bottle and unit dose pharmaceuticals under the registered names of AvKARE and AvPAK, which service the Department of Defense and Department of Veterans Affairs as well as institutional customers. AvKARE is also a wholesale distributor of pharmaceuticals, over the counter products and medical supplies to institutional customers which are located throughout the United States of America focused primarily on offering 340b-qualified entities products to provide consistency in care and pricing.

The Pharmaceutical Industry

The pharmaceutical industry is highly competitive and highly regulated. As a result, we face a number of industry-specific factors and challenges, which can significantly impact our results. For a more detailed explanation of our business and its risks, refer to our 2021 Annual Report on Form 10-K, as supplemented by Part II, Item 1A “Risk Factors” of our subsequent Quarterly Reports on Form 10-Q.

COVID-19 Pandemic

In March 2020, the World Health Organization designated the outbreak of a novel strain of coronavirus (“COVID-19”) as a global pandemic. Governments and businesses around the world took unprecedented actions to mitigate the spread of COVID-19, including imposing restrictions on movement and travel such as quarantines and shelter-in-place requirements, and restricting or prohibiting outright some or all commercial and business activity, including the manufacture and distribution of certain goods and the provision of non-essential services.

To the extent that the pandemic (and variant strains) continues or worsens, national, state, local and international governments may impose additional restrictions or extend the restrictions already in place. The worsening of the pandemic and the related safety and business operating restrictions could result in a number of adverse impacts to our business, including, but not limited to, additional disruption to the economy and our customers, additional work restrictions, supply chains being interrupted or slowed, and rising supply prices. Also, governments may impose other laws, regulations, or taxes that could adversely impact our business, financial condition, or results of operations. Further, depending on the extent to which our customers are affected, they could delay or reduce purchases of products we provide. The potential effects of the pandemic also could impact us in a number of other ways including, but not limited to, reductions to our profitability, fluctuations in foreign currency markets, the availability of future borrowings, the cost of borrowings, credit risks of our customers and counterparties, and potential impairment of the carrying amount of goodwill or other definite-lived assets.

Although not currently expected, any supply chain disruptions may significantly impact our 2022 results of operations and cash flows. Increasing infection rates and the introduction of new and more easily transmitted variants of COVID-19, such as the Delta and Omicron variants, could cause material disruptions to our global supply chains and cause labor shortages, as well as reduce the number of physician visits in general.

We continue to actively monitor the situation and may take further precautionary and preemptive actions as may be required by national, state, or local authorities or that we determine are in the best interests of our employees, customers, partners, suppliers, and shareholders. Until the ultimate extent and duration of the pandemic is known, we cannot predict the ultimate effects the pandemic may have on our business, in particular with respect to demand for our products, our strategy, and our prospects, the effects on our customers, or the impact on our financial results.

Inflation

While it is difficult to accurately measure the impact of inflation, we currently expect an inflationary impact of approximately $30 million for the year ending December 31, 2022, excluding the impact of rising interest rates. However, rising inflationary pressures due to higher input costs, including higher material, transportation, labor and other costs, could exceed our expectations, which would further adversely impact our operating results in future periods.

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Results of Operations

Consolidated Results

The following table sets forth our summarized, consolidated results of operations for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net revenue	$	559,355	$	535,075	$	1,056,988	$	1,028,180
Cost of goods sold	353,724		322,577		676,786		624,120
Cost of goods sold impairment charges	5,112		—		5,112		—
Gross profit	200,519		212,498		375,090		404,060
Selling, general and administrative	98,806		86,157		197,471		176,883
Research and development	50,748		52,864		103,546		101,046
In-process research and development impairment charges	—		710		—		710
Intellectual property legal development expenses	821		1,365		1,585		4,947
Acquisition, transaction-related and integration expenses	241		4,283		675		7,085
Charges related to legal matters, net	251,877		—		249,551		—
Insurance recoveries for property losses and associated expenses	(1,911)		—		(1,911)		—
Restructuring and other charges	—		—		731		363
Change in fair value of contingent consideration	(270)		—		(70)		—
Other operating income	(1,175)		—		(1,175)		—
Operating (loss) income	(198,618)		67,119		(175,313)		113,026
Total other expense, net	(34,113)		(32,295)		(67,339)		(63,298)
(Loss) income before income taxes	(232,731)		34,824		(242,652)		49,728
Provision for income taxes	7,350		2,648		3,889		3,007
Net (loss) income	$	(240,081)	$	32,176	$	(246,541)	$	46,721

Net Revenue

Net revenue for the three months ended June 30, 2022 was $559.4 million, an increase of 5% as compared to $535.1 million for the three months ended June 30, 2021. The increase from the prior year period was attributable to the growth in all three segments as follows:

•Net revenue growth in our Generics segment of $4.5 million during the three months ended June 30, 2022 as compared to the prior year period was primarily due to volume growth, partially offset by a decline in new products launched in 2022 and 2021 of $10.1 million and continued price erosion.

•Specialty segment net revenue increased $8.4 million for the three months ended June 30, 2022 as compared to the prior year period driven by growth in our promoted products including Rytary® and Unithroid® which increased 14% and 46%, respectively, as volume growth continued to remain strong, partially offset by the loss of exclusivity of Zomig® Nasal Spray.

•AvKARE net segment revenue grew $11.5 million for the three months ended June 30, 2022 as compared to the prior year period due to growth in our distribution channel.

Net revenue for the six months ended June 30, 2022 was $1,057.0 million, an increase of 3% as compared to $1,028.2 million for the six months ended June 30, 2021. The increase from the prior year period was attributable to growth in Generics and AvKARE as follows:

•Net revenue growth in our Generics segment of $9.6 million for the six months ended June 30, 2022 as compared to the prior year period was primarily due to new products launched in 2022 and 2021 that contributed revenue growth of $3.4 million, the favorable year-over-year impact of lower returns relating to Oseltamivir (generic Tamiflu®), as well as volume growth. These increases were partially offset by continued price erosion.

•Specialty segment net revenue decreased $2.5 million for the six months ended June 30, 2022 as compared to the prior year period, driven by the loss of exclusivity of Zomig® Nasal Spray as well as a decline in our other non-promoted

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products. These declines were partially offset by growth in our promoted products, including Rytary® and Unithroid®, which increased 4% and 30%, respectively, as prescription growth remained strong for both products.

•AvKARE net segment revenue grew $21.6 million for the six months ended June 30, 2022 as compared to the prior year period due to growth in our distribution channel.

Cost of Goods Sold and Gross Profit

Cost of goods sold, including impairment charges, increased 11%, or $36.3 million, to $358.8 million for the three months ended June 30, 2022 as compared to $322.6 million for the three months ended June 30, 2021. The increase in cost of goods sold, including impairment charges, was primarily due to increased Generics and AvKARE costs as volume increased and a $5.1 million intangible asset impairment charge. The intangible asset impairment charge was associated with a currently marketed product that experienced significant price erosion without an offsetting increase in customer demand, resulting in significantly lower than expected future margins.

Gross profit for the three months ended June 30, 2022 was $200.5 million (36% of total net revenue) as compared to gross profit of $212.5 million (40% of total net revenue) for the three months ended June 30, 2021. Our gross profit as a percentage of net revenue decreased compared to the prior year period primarily as a result of the mix of business and the impairment charge discussed above.

Cost of goods sold, including impairment charges, increased 9%, or $57.8 million, to $681.9 million for the six months ended June 30, 2022 as compared to $624.1 million for the six months ended June 30, 2021. The increase in cost of goods sold was primarily due to increased Generics and AvKARE costs as volume increased and a $5.1 million intangible asset impairment charge discussed above. Increases in costs and the impairment charge were partially offset by costs reductions associated with operating efficiency benefits realized period-over-period.

Gross profit for the six months ended June 30, 2022 was $375.1 million (35% of total net revenue) as compared to gross profit of $404.1 million (39% of total net revenue) for the six months ended June 30, 2021. Our gross profit as a percentage of net revenue decreased compared to the prior year period primarily as a result of the factors noted above.

Selling, General, and Administrative

Selling, general, and administrative (“SG&A”) expenses for the three months ended June 30, 2022 were $98.8 million, as compared to $86.2 million for the three months ended June 30 , 2021. The $12.6 million increase from the prior year period was primarily due to an increase in employee compensation as well as increased freight charges as fuel costs continue to increase.

SG&A expenses for the six months ended June 30, 2022 were $197.5 million, as compared to $176.9 million for the prior year period. The $20.6 million increase from the prior year period was primarily due to an increase in employee compensation, increased logistics costs and a $5.0 million expense associated with a biosimilar regulatory approval.

Research and Development

Research and development (“R&D”) expenses for the three months ended June 30, 2022 were $50.7 million, as compared to $52.9 million for the three months ended June 30, 2021. The $2.2 million decrease compared to the prior year period was primarily attributable to reduced in-licensing and upfront milestone payments of $7.3 million, partially offset by increased compensation and other costs associated with acquired businesses in 2021.

R&D expenses for the six months ended June 30, 2022 were $103.5 million, as compared to $101.0 million for the six months ended June 30, 2021. The $2.5 million increase compared to the prior year period was primarily attributable to increased compensation and other costs associated with acquired businesses in 2021, partially offset by a decrease in in-licensing and upfront milestone payments of $12.9 million.

Intellectual Property Legal Development Expense

Intellectual property legal development expenses include, but are not limited to, costs associated with formulation assessments, patent challenge opinions and strategy, and litigation expenses to defend our intellectual property. Intellectual property legal development expenses for the three months ended June 30, 2022 and 2021 were $0.8 million and $1.4 million, respectively. Expenses may vary based on the number of individual cases and corresponding litigation outstanding in a particular period.

Intellectual property legal development expenses for the six months ended June 30, 2022 and 2021 were $1.6 million and $4.9 million, respectively. The period-over-period decrease of $3.3 million was due to the timing of specific cases. Expenses may vary based on the number of individual cases and corresponding litigation outstanding in a particular period.

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Acquisition, Transaction-Related and Integration Expenses

Acquisition, transaction-related and integration expenses were $0.2 million for the three months ended June 30, 2022 as compared to $4.3 million for the three months ended June 30, 2021. Acquisition, transaction-related and integration expenses were $0.7 million for the six months ended June 30, 2022 as compared to $7.1 million for the six months ended June 30, 2021.

For the three and six months ended June 30, 2021, acquisition, transaction-related and integration expenses were primarily related to the KSP Acquisition, which closed on April 2, 2021, and integration expenses related to the businesses that comprise our AvKARE segment.

Acquisition, transaction-related and integration expenses for the six months ended June 30, 2022 were primarily related to the Saol Acquisition, which closed on February 9, 2022. Refer to Note 3. Acquisitions for additional information.

Credit Related to Legal Matters, Net

For the three and six months ended June 30, 2022, we recorded a net charges related to legal matters of $251.9 million and $249.6 million, respectively. The net charges for both periods were primarily comprised of charges associated with Opana® ER antitrust litigation, net of insurance recoveries associated with securities class actions. Refer to Note 13. Commitments and Contingencies for additional information.

Insurance Recoveries for Property Losses and Associated Expenses

During the three and six months ended June 30, 2022, insurance recoveries of $1.9 million associated with property damage and inventory losses were received and recorded in insurance recoveries for property losses and associated expenses.

Other Operating Income

Other operating income for the three and six month periods ended June 30, 2022 of $1.2 million was comprised of income earned from the India Production Linked Incentive Scheme for the Pharmaceutical Sector. Refer to Note 19. Government Grants for additional information.

Total Other Expense, Net

Total other expense, net was $34.1 million for the three months ended June 30, 2022 as compared to $32.3 million for the three months ended June 30, 2021. Overall, the increase from the prior year period was driven by a $3.2 million unfavorable period-over-period impact of net foreign exchange gains and losses and higher interest expense, partially offset by an increase in the benefit related to a previously outstanding contingent liability.

Total other expense, net was $67.3 million for the six months ended June 30, 2022 as compared to $63.3 million for the six months ended June 30, 2021. Overall, the increase from the prior year period was driven by a $7.3 million unfavorable period-over-period impact of net foreign exchange gains and losses, partially offset by an increase in the benefit related to a previously outstanding contingent liability.

Provision For Income Taxes  

For the three months ended June 30, 2022 and 2021, our provision for income taxes and effective tax rates were $7.4 million and (3.2)% and $2.6 million and 7.6%, respectively. The period-over-period change in the provision for income taxes was primarily related to a change in the mix of foreign income.

For the six months ended June 30, 2022 and 2021, our provision for income taxes and effective tax rates were $3.9 million and (1.6)% and $3.0 million and 6.0%, respectively. The period-over-period change in the provision for income taxes was primarily related to a change in the mix of foreign income and an Internal Revenue Service examination and Joint Committee review of the 2012-2018 federal income tax returns, which enabled the Company to recognize previously unrecognized tax benefits.

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Net (Loss) Income

We recognized a net loss for the three months ended June 30, 2022 of $240.1 million as compared to net income of $32.2 million for the three months ended June 30, 2021. The period-over-period change was attributable to the factors listed above, primarily the net charge for the three months ended June 30, 2022 related to legal matters of $251.9 million associated with the Opana® ER antitrust litigation, net of insurance recoveries associated with a securities class action.

We recognized a net loss for the six months ended June 30, 2022 of $246.5 million as compared to net income of $46.7 million for the six months ended June 30, 2021. The period-over-period change was attributable to the factors listed above.

Generics

The following table sets forth results of operations for our Generics segment for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net revenue	$	364,895	$	360,437	$	682,642	$	672,945
Cost of goods sold	223,423		204,154		422,453		389,452
Cost of good sold impairment charges	5,112		—		5,112		—
Gross profit	136,360		156,283		255,077		283,493
Selling, general and administrative	26,558		11,797		54,151		30,559
Research and development	44,174		43,431		87,395		79,548
In-process research and development impairment charges	—		710		—		710
Intellectual property legal development expenses	778		1,340		1,550		4,922
Acquisition, transaction-related and integration expenses	8		—		8		—
Charges related to legal matters, net	483		—		2,157		—
Insurance recoveries for property losses and associated expenses	(1,911)		—		(1,911)		—
Restructuring and other charges	—		—		206		80
Other operating income	(1,175)		—		(1,175)		—
Operating income	$	67,445	$	99,005	$	112,696	$	167,674

Net Revenue

Generics net revenue was $364.9 million for the three months ended June 30, 2022, an increase of $4.5 million as compared to the prior year period, primarily due to volume growth, partially offset by a decline in new products launched in 2022 and 2021 of $10.0 million and continued price erosion.

Generics net revenue was $682.6 million for the six months ended June 30, 2022, an increase of $9.7 million as compared to the prior year period. The increase primarily related to new products launched in 2022 and 2021 that contributed revenue growth of $3.4 million, the favorable year-over-year impact of lower returns relating to Oseltamivir (generic Tamiflu®), as well as volume growth. These increases were partially offset by continued price erosion.

Cost of Goods Sold and Gross Profit

Generics cost of goods sold, including impairment charges, for the three months ended June 30, 2022 was $228.5 million, an increase of $24.4 million compared the prior year period. The increase in cost of goods sold was primarily attributable to increased volume, a reduction in operating efficiency benefits realized period-over-period, and a $5.1 million intangible asset impairment charge. The intangible asset impairment charge was associated with a currently marketed product that experienced significant price erosion without an offsetting increase in customer demand, resulting in significantly lower than expected future margins.

Generics gross profit for the three months ended June 30, 2022 was $136.4 million (37% of net revenue) as compared to gross profit of $156.3 million (43% of net revenue) for the three months ended June 30, 2021 as a result of the factors described above.

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Generics cost of goods sold, including impairment charges, for the six months ended June 30, 2022 was $427.6 million, an increase of $38.1 million as compared to the six months ended June 30, 2021. The increase in cost of goods sold was primarily attributable to increased volume, a reduction in operating efficiency benefits realized period-over-period, and a $5.1 million intangible asset impairment charge, as discussed above.

Generics gross profit for the six months ended June 30, 2022 was $255.1 million (37% of net revenue) as compared to gross profit of $283.5 million (42% of net revenue) for the six months ended June 30, 2021 as a result of the factors described above.

Selling, General, and Administrative

Generics SG&A expense for the three months ended June 30, 2022 was $26.6 million, as compared to $11.8 million for the three months ended June 30, 2021. The increase was primarily attributed to increased employee compensation, freight charges due to fuel costs, and increased legal fees.

Generics SG&A expense for the six months ended June 30, 2022 was $54.2 million, as compared to $30.6 million for the six months ended June 30, 2021. The increase was primarily attributed to increased employee compensation, increased freight due to rising fuel costs, increased legal fees, and a $5.0 million expense associated with a biosimilar regulatory approval.

Research and Development

Generics R&D expenses for the three months ended June 30, 2022 was $44.2 million, an increase of $0.8 million compared to the three months ended June 30, 2021. The increase was primarily associated with inflationary pressures and the costs associated with acquired businesses in 2021, partially offset by a decrease in in-licensing and upfront milestone payments of $7.3 million.

Generics R&D expenses for the six months ended June 30, 2022 was $87.4 million, an increase of $7.9 million as compared to the six months ended June 30, 2021. The increase was primarily associated with inflationary pressures and the costs associated with acquired businesses in 2021, partially offset by a decrease in in-licensing and upfront milestone payments of $8.0 million.

Intellectual Property Legal Development Expenses

Intellectual property legal development expenses include, but are not limited to, costs associated with formulation assessments, patent challenge opinions and strategy, and litigation expenses to defend our intellectual property. Intellectual property legal development expenses for the three months ended June 30, 2022 and 2021 were $0.8 million and $1.3 million, respectively. Expenses may vary based on the number of individual cases and corresponding litigation outstanding in a particular period.

Intellectual property legal development expenses for the six months ended June 30, 2022 and 2021 were $1.6 million and $4.9 million, respectively. The period-over-period decrease of $3.3 million was due to the timing of specific cases. Expenses may vary based on the number of individual cases and corresponding litigation outstanding in a particular period.

Insurance Recoveries for Property Losses and Associated Expenses

During the three and six months ended June 30, 2022, insurance recoveries of $1.9 million associated with property damage and inventory losses were received and recorded in insurance recoveries for property losses and associated expenses.

Other Operating Income

Other operating income for the three and six month periods ended June 30, 2022 of $1.2 million was comprised of income earned from the India Production Linked Incentive Scheme for the Pharmaceutical Sector. Refer to Note 19. Government Grants for additional information.

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Specialty

The following table sets forth results of operations for our Specialty segment for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net revenue	$	97,001	$	88,635	$	182,087	$	184,566
Cost of goods sold	42,791		48,683		86,644		96,881
Gross profit	54,210		39,952		95,443		87,685
Selling, general and administrative	23,171		20,656		47,571		40,537
Research and development	6,574		9,433		16,151		21,498
Intellectual property legal development expenses	43		25		35		25
Acquisition,transaction-related and integration expenses	32		16		32		16
Change in fair value of contingent consideration	(270)		—		(70)		—
Operating income	$	24,660	$	9,822	$	31,724	$	25,609

Net Revenue

Specialty net revenue for the three months ended June 30, 2022 was $97.0 million, an increase of $8.4 million as compared to the three months ended June 30, 2021 driven by growth in our promoted products including Rytary® and Unithroid® which increased 14% and 46%, respectively, as volume growth continued to remain strong, partially offset by loss of exclusivity on Zomig® Nasal Spray.

Specialty net revenue for the six months ended June 30, 2022 was $182.1 million, a decrease of $2.5 million as compared to the six months ended June 30, 2021, driven by the loss of exclusivity of Zomig® Nasal Spray as well as a decline in our other non-promoted products, partially offset by promoted products including Rytary® and Unithroid® which increased 4% and 30%, respectively, as prescription growth continued to remain strong for both products.

Cost of Goods Sold and Gross Profit

Specialty cost of goods sold for the three months ended June 30, 2022 was $42.8 million as compared to $48.7 million for the three months ended June 30, 2021. Specialty gross profit for the three months ended June 30, 2022 was $54.2 million (56% of net revenue) as compared to gross profit of $40.0 million (45% of net revenue) for the three months ended June 30, 2021. The increase in gross profit primarily related to the increase in revenues. The increase in gross margin was due to product mix, including the loss of exclusivity on Zomig® Nasal Spray which had lower margin.

Specialty cost of goods sold for the six months ended June 30, 2022 was $86.6 million as compared to $96.9 million for the six months ended June 30, 2021. Specialty gross profit for the six months ended June 30, 2022 was $95.4 million (52% of net revenue) as compared to gross profit of $87.7 million (48% of net revenue) for the six months ended June 30, 2021. The increase in gross profit primarily related to the decrease in revenues, offset by product mix, including the loss of exclusivity on Zomig® Nasal Spray which had lower margin.

Selling, General, and Administrative

Specialty SG&A expense was $23.2 million for the three months ended June 30, 2022, an increase of $2.5 million or 12% compared to the three months ended June 30, 2021. The increase was driven by an increase in in-person sales and marketing efforts following the onset of the COVID-19 pandemic.

Specialty SG&A expense was $47.6 million for the six months ended June 30, 2022, an increase of $7.0 million or 17% compared to the six months ended June 30, 2021. The increase was driven by an increase in in-person sales and marketing efforts following the onset of the COVID-19 pandemic.

Research and Development

Specialty R&D expenses for the three months ended June 30, 2022 were $6.6 million, as compared to $9.4 million for the three months ended June 30, 2021. The $2.9 million decrease from the prior year period was primarily attributable to a decrease in project spend as the IPX study winds down.

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Specialty R&D expenses for the six months ended June 30, 2022 were $16.2 million, as compared to $21.5 million for the six months ended June 30, 2021. The $5.3 million decrease from the prior year period was primarily attributable to a decrease in in-licensing and upfront milestone payments of $4.9 million.

AvKARE

The following table sets forth results of operations for our AvKARE segment for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net revenue	$	97,459	$	86,003	$	192,259	$	170,669
Cost of goods sold	87,510		69,740		167,689		137,787
Gross profit	9,949		16,263		24,570		32,882
Selling, general and administrative	12,735		13,599		26,145		27,303
Acquisition, transaction-related and integration expenses	—		491		—		1,422
Operating (loss) income	$	(2,786)	$	2,173	$	(1,575)	$	4,157

Net Revenue

AvKARE net revenue for the three months ended June 30, 2022 was $97.5 million, an increase of $11.5 million as compared to the three months ended June 30, 2021, driven by growth in our distribution channel.

AvKARE net revenue for the six months ended June 30, 2022 was $192.3 million, an increase of $21.6 million as compared to the six months ended June 30, 2021, driven by growth in our distribution channel.

Cost of Goods Sold and Gross Profit

AvKARE cost of goods sold for the three months ended June 30, 2022 was $87.5 million as compared to $69.7 million for the three months ended June 30, 2021. AvKARE gross profit for the three months ended June 30, 2022 was $9.9 million (10% of net revenue) as compared to gross profit of $16.3 million (19% of net revenue) for the three months ended June 30, 2021. The decrease in gross profit primarily related to the increase in sales through our lower margin distribution channel, a decrease in sales through our higher margin government label channel, and an increase in inventory related charges.

AvKARE cost of goods sold for the six months ended June 30, 2022 was $167.7 million as compared to $137.8 million for the six months ended June 30, 2021. AvKARE gross profit for the six months ended June 30, 2022 was $24.6 million (13% of net revenue) as compared to gross profit of $32.9 million (19% of net revenue) for the six months ended June 30, 2021. The decrease in gross profit primarily related to the increase in sales through our lower margin distribution channel and a decrease in sales through our higher margin governmental label channel.

Selling, General, and Administrative

AvKARE SG&A expense was $12.7 million for the three months ended June 30, 2022 as compared to $13.6 million in the prior year period.

AvKARE SG&A expense was $26.1 million for the six months ended June 30, 2022 as compared to $27.3 million for the prior year period.

Liquidity and Capital Resources

On June 2, 2022, the Company entered into a revolving credit agreement (the “New Credit Agreement”), which amended the existing senior secured asset based revolving credit facility (the “Revolving Credit Facility”). The New Credit Agreement (i) replaced the Revolving Credit Facility with a $350.0 million senior secured revolving credit facility (the “New Revolving Credit Facility”) that matures on June 2, 2027, (ii) provides for up to $25.0 million of the New Revolving Credit Facility to be available for the purpose of issuing letters of credit; (iii) provides for up to $35.0 million of the New Revolving Credit Facility to be available for the purpose of issuing swingline loans; (iv) allows the the Company to request an incremental increase in the revolving facility commitments by up to $150.0 million; and (v) terminated the revolving credit facility commitments of lenders under the Revolving Credit Facility.

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Interest is payable on the New Revolving Credit Facility at a rate equal to the alternate base rate (“ABR”) or the secured overnight financing rate (“SOFR”), plus an applicable margin, in each case, subject to a ABR floor of 1.00% or a SOFR floor of 0.00%, as applicable. The applicable margin for the New Revolving Credit Facility is initially 0.25% per annum for ABR loans and 1.25% per annum for SOFR loans. The applicable margin on borrowings under the New Revolving Credit Facility thereafter will adjust ranging from 0.25% to 0.50% per annum for ABR loans and from 1.25% to 1.50% per annum for SOFR loans determined by the average historical excess availability. The proceeds of any loans made under the New Revolving Credit Facility can be used for capital expenditures, acquisitions, working capital needs and other general purposes, subject to covenants as described below. The Borrower pays a commitment fee based on the average daily unused amount of the New Revolving Credit Facility at a rate of 0.25% per annum.

Our primary source of liquidity is cash generated from operations, available cash on hand and borrowings under debt financing arrangements, including $260.6 million of available capacity on our New Revolving Credit facility as of June 30, 2022. Refer to Note 17. Debt in our 2021 Annual Report on Form 10-K for additional information. We believe these sources are sufficient to fund our planned operations, meet our interest and contractual obligations, including acquisitions, and provide sufficient liquidity over the next 12 months from the date of filing of this Form 10-Q. However, our ability to satisfy our working capital requirements and debt obligations will depend upon economic conditions, the impact of the COVID-19 pandemic, and demand for our products, which are factors that may be out of our control.

Our primary uses of capital resources are to fund operating activities, including research and development expenses associated with new product filings, and pharmaceutical product manufacturing expenses, license payments, spending on production facility expansions and capital equipment, acquisitions, and settlements of litigation. As the impact of the COVID-19 pandemic on the economy and our operations evolves, we will continue to assess our liquidity needs. A continued worldwide disruption could materially affect our future access to sources of liquidity, particularly our cash flows from operations, and financial condition. In the event of a sustained market deterioration, we may need additional liquidity, which would require us to evaluate available alternatives and take appropriate actions.

We estimate that we will invest approximately $65.0 million to $75.0 million during 2022 for capital expenditures to support and grow our existing operations, primarily related to investments in manufacturing equipment, information technology and facilities.

Over the next 12 months, we expect to make substantial payments, including a $16.5 million milestone payment to Mabxience S.L. (refer to Note 5. Alliance and Collaboration), a $15.0 million milestone payment to Kashiv Biosciences LLC (a related party, refer to Note 15. Related Party Transactions), $115.0 million in payments associated with preliminary settlement of the Opana® ER antitrust litigation (refer to Note 13. Commitments and Contingencies), monthly interest and quarterly principal amounts due for our debt instruments, including our Term Loan and Rondo Term Loan, as well as contractual payments for leased premises. Refer to Note 17. Debt and Note 12. Leases in our 2021 Annual Report on Form 10-K for additional information on our indebtedness and leases, respectively.

We are party to a tax receivable agreement (“TRA”) that requires us to make cash payments to the Members other than the Company, in respect of certain tax benefits that we may realize or may be deemed to realize as a result of sales or exchanges of Amneal Common Units by the Members (refer to Note 1. Nature of Operations). The timing and amount of any payments under the TRA will also vary, depending upon a number of factors including the timing and number of Amneal Common Units sold or exchanged for our class A common stock, the price of our class A common stock on the date of sale or exchange, the timing and amount of our taxable income, and the tax rate in effect at the time of realization of our taxable income. The tax receivable agreement also requires that we make an accelerated payment to the Members equal to the present value of all future payments due under the agreement upon certain change of control and similar transactions. Further sales or exchanges occurring subsequent to June 30, 2022 could result in future Amneal tax deductions and obligations to pay 85% of such benefits to the holders of Amneal Common Units. These obligations could be incremental to and substantially larger than the approximate $206.3 million contingent liability as of June 30, 2022 (refer to Note 7. Income Taxes). As a result of the foregoing, our obligations under the tax receivable agreement could have a substantial negative impact on our liquidity. For further details, refer to Item 1A. Risk Factors in our 2021 Annual Report on Form 10-K.

In addition, pursuant to the limited liability operating agreement of Amneal, as amended, in connection with any tax period, we will be required to make distributions to Amneal's members, on a pro rata basis in proportion to the number of Amneal Common Units held by each member, of cash until each member (other than Amneal) has received an amount at least equal to its assumed tax liability and Amneal has received an amount sufficient to enable it to timely satisfy all of its U.S. federal, state and local and non-U.S. tax liabilities, and meet its obligations pursuant to the TRA. During the six months ended June 30, 2022 and June 30, 2021, we made net tax distributions of $7.3 million and $26.0 million, respectively, to the Members.

55

As of June 30, 2022, our cash and cash equivalents consist of cash on deposit and highly liquid investments. A portion of our cash flows are derived outside the United States. As a result, we are subject to market risk associated with changes in foreign exchange rates. We maintain cash balances at both U.S. based and foreign country based commercial banks. At various times during the year, our cash balances held in the United States may exceed amounts that are insured by the Federal Deposit Insurance Corporation (FDIC). We make our investments in accordance with our investment policy. The primary objectives of our investment policy are liquidity and safety of principal.

Cash Flows

(in thousands)

	Six Months Ended June 30,
	2022		2021
Cash (used in) provided by:
Operating activities	$	(5,178)	$	96,195
Investing activities	(113,511)		(95,580)
Financing activities	(38,321)		(64,217)
Effect of exchange rate changes on cash	(1,547)		(366)
Net (decrease) increase in cash, cash equivalents, and restricted cash	$	(158,557)	$	(63,968)

Cash Flows from Operating Activities

Net cash used in operating activities was $5.2 million for the six months ended June 30, 2022 as compared to net cash provided by operating activities of $96.2 million for the six months ended June 30, 2021.  The decrease in operating cash flows was primarily driven by a $100.0 million payment made into an escrow account associated with the Opana® ER antitrust litigation preliminary settlement agreements.

Cash Flows from Investing Activities

Net cash used in investing activities for the six months ended June 30, 2022 was $113.5 million as compared to $95.6 million for the six months ended June 30, 2021. The period-over-period increase of $17.9 million in net cash used in investing activities was primarily due to an increase in cash paid for acquisitions.

Cash Flows from Financing Activities

Net cash used in financing activities was $38.3 million for the six months ended June 30, 2022 as compared to net cash used in financing activities of $64.2 million for the six months ended June 30, 2021. The period-over-period decrease of $25.9 million in net cash used in financing activities was primarily due to $85.0 million in borrowings under the New Revolving Credit Facility (refer to Note 20. Debt) and a $17.6 million decrease in tax distributions, partially offset by $44.0 million paid for deferred consideration associated with the KSP Acquisition and the Puniska Acquisition (refer to Note 3. Acquisitions) and an increase in debt payments, primarily a $42.8 million prepayment made on the Rondo Term Loan.

56

Commitments and Contractual Obligations

The contractual obligations of the Company are set forth in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the Company’s 2021 Annual Report on Form 10-K. Other than the contractual obligations noted below (shown in thousands), there have been no material changes to the disclosure presented in our 2021 Annual Report on Form 10-K.

	Payments Due by Period
Contractual Obligations	Total		Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years
Opana ER® antitrust litigation preliminary settlement (1)	$	165,000	$	115,000	$	50,000	$	—	$	—
Interest associated with the Opana ER® antitrust litigation preliminary settlement (1)	4,220		1,805		2,415		—		—
Total	$	169,220	$	116,805	$	52,415	$	—	$	—

(1) Refer to Note 13. Commitments and Contingencies for additional information.

The foregoing table does not include milestone payments potentially payable by the Company under its collaboration agreements and licenses. Such milestone payments are dependent upon the occurrence of specific and contingent events, and not the passage of time. A discussion of our significant contingent milestones is contained in Note 5. Alliance and Collaboration and Note 24. Related Party Transactions in our 2021 Annual Report on Form 10-K and Note 6. Alliance and Collaboration and Note 15. Related Party Transactions in this Form 10-Q.

Off-Balance Sheet Arrangements

We did not have any off-balance sheet arrangements as of June 30, 2022.

Critical Accounting Policies and Estimates

For a discussion of the Company’s critical accounting policies and estimates, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2021 Annual Report on Form 10-K. There have been no material changes to the disclosures presented in our 2021 Annual Report on Form 10-K.

Recently Issued Accounting Standards

Recently issued accounting standards are discussed in Note 2. Summary of Significant Accounting Policies.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

There has not been any material change in our assessment of market risk as set forth in Item 7A. Quantitative and Qualitative Disclosures About Market Risk, in our 2021 Annual Report on Form 10-K. 

Item 4.    Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Co-Chief Executive Officers and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Our management, with the participation of our Co-Chief Executive Officers and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this

57

Quarterly Report on Form 10-Q. Based upon that evaluation, our Co-Chief Executive Officers and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2022.

Changes in Internal Control over Financial Reporting

In April 2022, as part of our ongoing efforts to increase efficiencies we implemented new software and updated various business processes related to sales deductions. Except as noted above, there were no changes in internal control over financial reporting which materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls

Management, including our Co-Chief Executive Officers and Chief Financial Officer, does not expect that our disclosure controls and procedures or our system of internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed or operated, can provide only reasonable, but not absolute, assurance that the objectives of the system of internal control are met. The design of our control system reflects the fact that there are resource constraints, and that the benefits of such control system must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control failures and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the intentional acts of individuals, by collusion of two or more people, or by management override of the controls. The design of any system of controls is also based in part on certain assumptions about the likelihood of future events, and there can be no assurance that the design of any particular control will always succeed in achieving its objective under all potential future conditions.

Part II – OTHER INFORMATION

Item 1.    Legal Proceedings

Information pertaining to legal proceedings can be found in Note 13. Commitments and Contingencies and is incorporated by reference herein.

Item 1A.    Risk Factors

There have been no material changes to the disclosures presented in our 2021 Annual Report on Form 10-K under Item 1A. Risk Factors.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.    Defaults Upon Senior Securities

None.

Item 4.    Mine Safety Disclosures

Not applicable.

Item 5.    Other Information

None.

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Item 6.    Exhibits

Exhibit No.	Description of Document
10.1	Amneal Pharmaceuticals, Inc. Non-Employee Director Compensation Policy, as amended on August 4, 2022 †*
10.2	Revolving Credit Agreement, dated as of June 2, 2022, by and among Amneal Pharmaceuticals LLC. as the borrower, Truist Bank, as administrative agent and collateral agent and the lenders and other parties party thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed June 2, 2022).
10.3	ABL Guarantee and Collateral Agreement, dated as of June 2, 2022, by and among the loan parties from time -to-time party thereto and Truist Bank, as administrative agent and collateral agent (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on June 2, 2022).
31.1	Certification of the Co - Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certification of the Co - Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.3	Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of the Co - Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.2	Certification of the Co - Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.3	Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Operations for each of the three and six months ended June 30, 2022 and 2021, (ii) Consolidated Statements of Comprehensive (Loss) Income for each of the three and six months ended June 30, 2022 and 2021, (iii) Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, (iv) Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021, (v) Consolidated Statements of Changes in Stockholders' Equity for each of the three and six months ended June 30, 2022 and 2021 and (vi) Notes to Consolidated Financial Statements.*
104	Cover Page Interactive Data File – The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 is formatted in Inline XBRL (included as Exhibit 101).

*	Filed herewith
**	This certificate is being furnished solely to accompany the report pursuant to 18 U.S.C. 1350 and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
†	Denotes management compensatory plan or arrangement.

59

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: August 8, 2022	Amneal Pharmaceuticals, Inc.
		(Registrant)
	By:	/s/ Anastasios Konidaris
		Anastasios Konidaris
		Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

60

EX-10.1

Exhibit 10.1

AMNEAL PHARMACEUTICALS, INC.

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

As amended and restated on August 4, 2022

Non‐employee members of the board of directors (the “Board”) of Amneal Pharmaceuticals, Inc. (the “Company”) shall be eligible to receive cash and equity compensation as set forth in this Non‐ Employee Director Compensation Policy (this “Policy”). The cash and equity compensation described in this Policy shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, a “Non‐Employee Director”) who may be eligible to receive such cash or equity compensation, unless such Non‐Employee Director declines the receipt of such cash or equity compensation by written notice to the Company. This Policy shall become effective as of the date set forth above and shall remain in effect until it is revised or rescinded by further action of the Board. This Policy may be amended, modified or terminated by the Board at any time in its sole discretion. The terms and conditions of this Policy shall supersede any prior cash and/or equity compensation arrangements for service as a member of the Board between the Company and any of its Non‐Employee Directors and between any subsidiary of the Company and any of its non‐employee directors. No Non‐Employee Director shall have any rights hereunder, except with respect to equity awards granted pursuant to this Policy.

1.Cash Compensation.

a.Annual Board Retainers. Each Non‐Employee Director shall receive an annual retainer of $75,000 for service on the Board.

b.Additional Committee Retainers. In addition, a Non‐Employee Director shall receive the following annual retainers:

i.Audit Committee. A Non‐Employee Director serving as Chairperson of the Audit Committee shall receive an additional annual retainer of $25,000 for such service. A Non‐ Employee Director serving as a member of the Audit Committee (other than the Chairperson), shall receive an additional annual retainer of $15,000 for such service. In addition to the annual retainers described above, for each duly convened meeting of a committee that a member of such committee attends in excess of six duly convened meetings per calendar year, such member shall be entitled to receive an additional per meeting stipend equal to 1/6th of such member's annual cash stipend for service on that committee. The per meeting stipend described in the preceding sentence shall be referred to throughout this Policy as the “Per Meeting Stipend.” A committee meeting shall be deemed to have been “duly convened” if such meeting has been scheduled by the chairperson of that committee (or his or her duly authorized designee), conducted in person or by means of video/teleconferencing, and memorialized in minutes taken during such meeting.

ii.Compensation Committee. A Non‐Employee Director serving as Chairperson of the Compensation Committee shall receive an additional annual retainer of $20,000 for such service. A Non‐Employee Director serving as a member of the Compensation Committee (other than the Chairperson) shall receive an additional

annual retainer of $10,000 for such service. In addition to the annual retainers described above, for each duly convened meeting of a committee that a member of such committee attends in excess of six duly convened meetings per calendar year, such member shall be entitled to receive an additional Per Meeting Stipend.

iii.Nominating and Corporate Governance Committee. A Non‐Employee Director serving as Chairperson of the Nominating and Corporate Governance Committee shall receive an additional annual retainer of $15,000 for such service. A Non‐Employee Director serving as a member of the Nominating and Corporate Governance Committee (other than the Chairperson) shall receive an additional annual retainer of $7,500 for such service. In addition to the annual retainers described above, for each duly convened meeting of a committee that a member of such committee attends in excess of six duly convened meetings per calendar year, such member shall be entitled to receive an additional Per Meeting Stipend.

iv.Conflicts Committee. A Non‐Employee Director serving as Chairperson of the Conflicts Committee shall receive an additional annual retainer of $25,000 for such service. A Non‐ Employee Director serving as a member of the Conflicts Committee (other than the Chairperson) shall receive an additional annual retainer of $15,000 for such service. In addition to the annual retainers described above, for each duly convened meeting of a committee that a member of such committee attends in excess of six duly convened meetings per calendar year, such member shall be entitled to receive an additional Per Meeting Stipend.

c.Payment of Retainers. The annual retainers described in Sections 1(a) and 1(b) shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than the fifteenth (15th) day following the end of each calendar quarter. In the event a Non‐ Employee Director does not serve as a Non‐Employee Director, or in the applicable positions described in Section 1(b), for an entire calendar quarter, such Non‐Employee Director shall receive a prorated portion of the annual retainer(s) otherwise payable to such Non‐Employee Director for such calendar quarter pursuant to Section 1(b), with such prorated portion determined by multiplying such otherwise payable retainer(s) by a fraction, the numerator of which is the number of days during which the Non‐Employee Director serves as a Non‐Employee Director or in the applicable positions described in Section 1(b) during the applicable calendar quarter and the denominator of which is the number of days in the applicable calendar quarter. The Per Meeting Stipend(s) earned (if any), and described in Section 1(b), shall be payable no later than the fifteenth (15th) day following the end of the calendar quarter in which any such meeting or meetings shall have taken place.

2.Equity Compensation. Non‐Employee Directors shall be granted the equity awards described below. The awards described below shall be granted under and shall be subject to the terms and provisions of the Company’s 2018 Incentive Award Plan or any other applicable Company equity incentive plan then‐maintained by the Company (such plan, as may be amended from time to time, the “Equity Plan”) and shall be granted subject to the execution and delivery of award agreements, including attached exhibits, in substantially the forms previously approved by the Board. All applicable terms of the Equity Plan apply to this Policy as if fully set forth herein, and all equity grants hereunder are subject in all respects to the terms of the Equity Plan.

a.Annual Awards. Each Non-Employee Director who (i) serves on the Board as of the date of any annual meeting of the Company’s stockholders (an “Annual Meeting”) and (ii) will continue to serve as a Non-Employee Director immediately following such Annual Meeting shall be automatically granted, on the date of such Annual Meeting, an award of restricted stock units equal to $250,000 (“Non-Employee Director Restricted Stock Unit

Award”). The Chairman shall receive an additional award of restricted stock units equal to $100,000 (“Additional Chairman Restricted Stock Unit Award”). In each case, the number of units for such award shall be determined by dividing the Non-Employee Director Restricted Stock Unit Award and the Additional Chairman Restricted Stock Unit Award, respectively, by the fair value of such unit on the date of the Annual Meeting. The fair value of a unit is determined in accordance with ASC 718, Compensation – Stock Compensation and is subject to adjustment as provided in the Equity Plan. The awards described in this Section 2(a) shall be referred to as the “Annual Awards.” For the avoidance of doubt, a Non-Employee Director elected for the first time to the Board at an Annual Meeting shall receive only an Annual Award in connection with such election, and shall not receive any Initial Award on the date of such Annual Meeting as well.

b.Initial Awards. Except as otherwise determined by the Board, each Non-Employee Director who is initially elected or appointed to the Board, on any date other than the date of an Annual Meeting, shall be automatically granted, on the date of such Non-Employee Director’s initial election or appointment (such Non-Employee Director’s “Start Date”), an award of restricted stock units equal to $250,000 multiplied by the Applicable Percentage (“New Director Restricted Stock Unit Award”). The number of units for such award shall be determined by dividing the New Director Restricted Stock Unit Award by the fair value of such unit on the Start Date. The fair value of a unit is determined in accordance with ASC 718, Compensation. The awards described in this Section 2(b) shall be referred to as “Initial Awards.” For the avoidance of doubt, no Non-Employee Director shall be granted more than one Initial Award. "Applicable Percentage" shall mean a fraction, the numerator of which is the number of days from the Start Date until the first anniversary of the Company's most recently held Annual Meeting and the denominator of which is the number of days in the applicable calendar year.

c.Termination of Employment of Employee Directors. Members of the Board who are employees of the Company or any parent or subsidiary of the Company who subsequently terminate their employment with the Company and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Award pursuant to Section 2(b) above, but to the extent that they are otherwise eligible, will be eligible to receive, after termination from service with the Company and any parent or subsidiary of the Company, Annual Awards as described in Section 2(a) above.

d.Vesting of Awards Granted to Non-Employee Directors. Each Annual Award and Initial Award shall vest (and, in the case of options, become exercisable) on the later of (x) the day immediately preceding the date of the first Annual Meeting following the date of grant and (y) the day immediately following the first anniversary of the date of grant, subject to the Non-Employee Director continuing in service through the applicable vesting date. No portion of an Annual Award or Initial Award that is unvested or unexercisable at the time of a Non-Employee Director’s Termination of Service (as defined in the Equity Plan) shall become vested and exercisable thereafter.

* * * * *

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Chirag Patel, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022 of Amneal Pharmaceuticals, Inc.;

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 officers 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 Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and 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 officers 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.

August 8, 2022	By:	/s/ Chirag Patel
		Chirag Patel
		President and Co-Chief Executive Officer (Co-Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Chintu Patel, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022 of Amneal Pharmaceuticals, Inc.;

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 officers 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 Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and 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 officers 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.

August 8, 2022	By:	/s/ Chintu Patel
		Chintu Patel
		Co-Chief Executive Officer (Co-Principal Executive Officer)

EX-31.3

Exhibit 31.3

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Anastasios Konidaris, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022 of Amneal Pharmaceuticals, Inc.;

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 officers 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 Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and 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 officers 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.

August 8, 2022	By:	/s/ Anastasios Konidaris
		Anastasios Konidaris
		Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Amneal Pharmaceuticals, Inc. (the “Company”) for the fiscal quarter ended June 30, 2022 (the “Report”), Chirag Patel, President and Co-Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 8, 2022	By:	/s/ Chirag Patel
		Chirag Patel
		President and Co-Chief Executive Officer
		(Co-Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to Amneal Pharmaceuticals, Inc. and will be retained by Amneal Pharmaceuticals, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Amneal Pharmaceuticals, Inc. (the “Company”) for the fiscal quarter ended June 30, 2022 (the “Report”), Chintu Patel, Co-Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 8, 2022	By:	/s/ Chintu Patel
		Chintu Patel
		Co-Chief Executive Officer
		(Co-Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to Amneal Pharmaceuticals, Inc. and will be retained by Amneal Pharmaceuticals, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.3

Exhibit 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Amneal Pharmaceuticals, Inc. (the “Company”) for the fiscal quarter ended June 30, 2022 (the “Report”), Anastasios Konidaris, Executive Vice President and Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 8, 2022	By:	/s/ Anastasios Konidaris
		Anastasios Konidaris
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to Amneal Pharmaceuticals, Inc. and will be retained by Amneal Pharmaceuticals, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - shares	6 Months Ended
	Jun. 30, 2022	Jul. 25, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-38485
Entity Registrant Name	Amneal Pharmaceuticals, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	32-0546926
Entity Address, Address Line One	400 Crossing Boulevard,
Entity Address, City or Town	Bridgewater
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08807
City Area Code	908
Local Phone Number	947-3120
Title of 12(b) Security	Class A Common Stock, par value $0.01 per share
Trading Symbol	AMRX
Security Exchange Name	NYSE
Entity Current Reporting	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001723128
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		151,408,535
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		152,116,890

XML

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net revenue	$ 559,355	$ 535,075	$ 1,056,988	$ 1,028,180
Cost of goods sold	353,724	322,577	676,786	624,120
Cost of goods sold impairment charges	5,112	0	5,112	0
Gross profit	200,519	212,498	375,090	404,060
Selling, general and administrative	98,806	86,157	197,471	176,883
Research and development	50,748	52,864	103,546	101,046
In-process research and development impairment charges	0	710	0	710
Intellectual property legal development expenses	821	1,365	1,585	4,947
Acquisition, transaction-related and integration expenses	241	4,283	675	7,085
Charges related to legal matters, net	251,877	0	249,551	0
Insurance recoveries for property losses and associated expenses	(1,911)	0	(1,911)	0
Restructuring and other charges	0	0	731	363
Change in fair value of contingent consideration	(270)	0	(70)	0
Other operating income	(1,175)	0	(1,175)	0
Operating (loss) income	(198,618)	67,119	(175,313)	113,026
Other (expense) income:
Interest expense, net	(35,623)	(34,083)	(68,958)	(67,968)
Foreign exchange loss, net	(5,429)	(2,244)	(7,442)	(156)
Loss on refinancing	(291)	0	(291)	0
Other income, net	7,230	4,032	9,352	4,826
Total other expense, net	(34,113)	(32,295)	(67,339)	(63,298)
(Loss) income before income taxes	(232,731)	34,824	(242,652)	49,728
Provision for income taxes	7,350	2,648	3,889	3,007
Net (loss) income	(240,081)	32,176	(246,541)	46,721
Less: Net loss (income) attributable to non-controlling interests	119,273	(17,644)	124,015	(25,483)
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. before accretion of redeemable non-controlling interest	(120,808)	14,532	(122,526)	21,238
Accretion of redeemable non-controlling interest	0	0	(438)	0
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	$ (120,808)	$ 14,532	$ (122,964)	$ 21,238
Net (loss) income per share attributable to Amneal Pharmaceuticals, Inc.'s class A common stockholders:
Basic (in dollars per share)	$ (0.80)	$ 0.10	$ (0.82)	$ 0.14
Diluted (in dollars per share)	$ (0.80)	$ 0.10	$ (0.82)	$ 0.14
Weighted-average common shares outstanding:
Basic (in shares)	150,993	148,996	150,445	148,507
Diluted (in shares)	150,993	151,986	150,445	151,606

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Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Other Comprehensive Income [Abstract]
Net (loss) income	$ (240,081)	$ 32,176	$ (246,541)	$ 46,721
Less: Net loss (income) attributable to non-controlling interests	119,273	(17,644)	124,015	(25,483)
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. before accretion of redeemable non-controlling interest	(120,808)	14,532	(122,526)	21,238
Accretion of redeemable non-controlling interest	0	0	(438)	0
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	(120,808)	14,532	(122,964)	21,238
Other comprehensive (loss) income:
Foreign currency translation adjustments arising during the period	(11,628)	182	(15,707)	(6,184)
Unrealized gain on cash flow hedge, net of tax	14,070	704	67,694	21,476
Less: Other comprehensive income attributable to non-controlling interests	(1,225)	(448)	(26,180)	(7,750)
Other comprehensive income attributable to Amneal Pharmaceuticals, Inc.	1,217	438	25,807	7,542
Comprehensive (loss) income attributable to Amneal Pharmaceuticals, Inc.	$ (119,591)	$ 14,970	$ (97,157)	$ 28,780

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 91,979	$ 247,790
Restricted cash	6,203	8,949
Trade accounts receivable, net	688,849	662,583
Inventories	533,028	489,389
Prepaid expenses and other current assets	232,204	110,218
Related party receivables	1,338	1,179
Total current assets	1,553,601	1,520,108
Property, plant and equipment, net	483,625	514,158
Goodwill	600,974	593,017
Intangible assets, net	1,204,224	1,166,922
Other assets	79,836	20,614
Total assets	4,041,405	3,939,664
Current liabilities:
Accounts payable and accrued expenses	561,692	525,345
Current portion of liabilities for legal matters	275,338	58,000
Revolving credit facility	85,000	0
Current portion of long-term debt, net	29,920	30,614
Related party payables - short term	24,904	47,861
Total current liabilities	993,064	677,243
Long-term debt, net	2,622,447	2,680,053
Note payable - related party	38,856	38,038
Related party payables - long term	10,654	9,619
Other long-term liabilities	79,213	38,903
Total long-term liabilities	2,857,465	2,878,541
Commitments and contingencies (Notes 5 and 13)
Redeemable non-controlling interests	17,885	16,907
Stockholders' Equity
Preferred stock, $0.01 par value, 2,000 shares authorized, none issued at both June 30, 2022 and December 31, 2021		0
Additional paid-in capital	675,588	658,350
Stockholders' accumulated deficit	(399,161)	(276,197)
Accumulated other comprehensive income (loss)	868	(24,827)
Total Amneal Pharmaceuticals, Inc. stockholders' equity	280,327	360,340
Non-controlling interests	(107,336)	6,633
Total stockholders' equity	172,991	366,973
Total liabilities and stockholders' equity	4,041,405	3,939,664
Class A Common Stock
Stockholders' Equity
Common stock	1,510	1,492
Class B Common Stock
Stockholders' Equity
Common stock	1,522	1,522
Excluding Related Party
Current assets:
Operating lease right-of-use assets	36,490	39,899
Financing lease right-of-use assets	63,443	64,475
Current liabilities:
Current portion of operating lease liabilities	10,096	9,686
Current portion of financing lease liabilities	3,318	3,101
Operating lease liabilities	28,904	32,894
Financing lease liabilities	60,011	60,251
Related Party
Current assets:
Operating lease right-of-use assets	19,212	20,471
Current liabilities:
Current portion of operating and financing lease liabilities - related party	2,796	2,636
Operating lease liabilities	$ 17,380	$ 18,783

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Class A Common Stock
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	900,000,000	900,000,000
Common stock, shares issued (in shares)	151,196,000	149,413,000
Class B Common Stock
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	152,117,000	152,117,000

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net (loss) income	$ (246,541)	$ 46,721
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	117,511	112,037
Unrealized foreign currency loss	8,014	124
Amortization of debt issuance costs and discount	4,388	4,473
Loss on refinancing	291	0
Intangible asset impairment charges	5,112	710
Insurance recoveries for property and equipment losses	(1,000)	0
Stock-based compensation	16,327	12,962
Inventory provision	17,748	25,805
Change in fair value of contingent consideration	(70)	0
Other operating charges and credits, net	3,449	2,764
Changes in assets and liabilities:
Trade accounts receivable, net	(26,561)	(13,167)
Inventories	(65,395)	(54,580)
Prepaid expenses, other current assets and other assets	(119,747)	(23,988)
Related party receivables	(159)	7,383
Accounts payable, accrued expenses and other liabilities	273,947	(21,137)
Related party payables	7,508	(3,912)
Net cash (used in) provided by operating activities	(5,178)	96,195
Cash flows from investing activities:
Purchases of property, plant and equipment	(15,842)	(19,585)
Deposits for future acquisition of property, plant, and equipment	(3,955)	(1,667)
Acquisition of intangible assets	(10,000)	(500)
Acquisitions of businesses, net of cash acquired	(84,714)	(73,828)
Proceeds from insurance recoveries for property and equipment losses	1,000	0
Net cash used in investing activities	(113,511)	(95,580)
Cash flows from financing activities:
Payments of deferred financing and refinancing costs	(1,622)	0
Payments of principal on debt, financing leases and other	(63,010)	(33,876)
Borrowings on revolving credit facility	85,000	0
Proceeds from exercise of stock options	239	681
Employee payroll tax withholding on restricted stock unit vesting	(3,291)	(2,378)
Tax distributions to non-controlling interests	(9,917)	(27,551)
Acquisition of redeemable non-controlling interest	(1,722)	0
Payments of deferred consideration for acquisitions - related party	(43,998)	0
Payments of principal on financing lease - related party	0	(93)
Repayment of related party note	0	(1,000)
Net cash used in financing activities	(38,321)	(64,217)
Effect of foreign exchange rate on cash	(1,547)	(366)
Net decrease in cash, cash equivalents, and restricted cash	(158,557)	(63,968)
Cash, cash equivalents, and restricted cash - beginning of period	256,739	347,121
Cash, cash equivalents, and restricted cash - end of period	98,182	283,153
Cash and cash equivalents - end of period	91,979	278,306
Restricted cash - end of period	6,203	4,847
Supplemental disclosure of cash flow information:
Cash paid for interest	57,322	61,441
Cash (received) paid for income taxes, net	(6,747)	4,610
Supplemental disclosure of non-cash investing and financing activity:
Contingent consideration for acquisition	8,796	0
Payable for acquisition of intangible assets	31,500	0
Deferred consideration for acquisition - related party	0	30,099
Contingent consideration for acquisition - related party	$ 0	$ 6,100

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Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Subsequent To Combination	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-in Capital	Stockholders' Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income	Non- Controlling Interests	Non- Controlling Interests Subsequent To Combination
Shares beginning balance (in shares) at Dec. 31, 2020			147,674	152,117
Stockholders' equity beginning balance at Dec. 31, 2020	$ 344,932		$ 1,475	$ 1,522	$ 628,413	$ (286,821)	$ (41,318)	$ 41,661
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	42,742					21,238		21,504
Foreign currency translation adjustments	(6,184)						(3,049)	(3,135)
Stock-based compensation	12,962				12,962
Exercise of stock options (in shares)			249
Exercise of stock options	681		$ 2		686		(34)	27
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (in shares)			1,286
Restricted stock unit vesting, net of shares withheld to cover payroll taxes	(2,457)		$ 13		596		(169)	(2,897)
Unrealized gain on cash flow hedge, net of tax	21,476						10,591	10,885
Tax distributions, net		$ (25,880)							$ (25,880)
Non-controlling interests from the KSP Acquisition	2,000							2,000
Shares ending balance (in shares) at Jun. 30, 2021			149,209	152,117
Stockholders' equity ending balance at Jun. 30, 2021	390,272		$ 1,490	$ 1,522	642,657	(265,583)	(33,979)	44,165
Redeemable Non-Controlling Interests, beginning balance at Dec. 31, 2020	11,804
Increase (Decrease) in Temporary Equity [Roll Forward]
Net (loss) income	3,979
Tax distributions, net	(1,671)
Redeemable Non-Controlling Interests, ending balance at Jun. 30, 2021	14,112
Shares beginning balance (in shares) at Mar. 31, 2021			148,715	152,117
Stockholders' equity beginning balance at Mar. 31, 2021	366,708		$ 1,485	$ 1,522	634,484	(280,115)	(34,361)	43,693
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	29,993					14,532		15,461
Foreign currency translation adjustments	182						90	92
Stock-based compensation	7,632				7,632
Exercise of stock options (in shares)			5
Exercise of stock options	5				9			(4)
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (in shares)			489
Restricted stock unit vesting, net of shares withheld to cover payroll taxes	(308)		$ 5		532		(56)	(789)
Unrealized gain on cash flow hedge, net of tax	704						348	356
Tax distributions, net		(16,644)							(16,644)
Non-controlling interests from the KSP Acquisition	2,000							2,000
Shares ending balance (in shares) at Jun. 30, 2021			149,209	152,117
Stockholders' equity ending balance at Jun. 30, 2021	390,272		$ 1,490	$ 1,522	642,657	(265,583)	(33,979)	44,165
Redeemable Non-Controlling Interests, beginning balance at Mar. 31, 2021	13,079
Increase (Decrease) in Temporary Equity [Roll Forward]
Net (loss) income	2,183
Tax distributions, net	(1,150)
Redeemable Non-Controlling Interests, ending balance at Jun. 30, 2021	14,112
Shares beginning balance (in shares) at Dec. 31, 2021			149,413	152,117
Stockholders' equity beginning balance at Dec. 31, 2021	366,973		$ 1,492	$ 1,522	658,350	(276,197)	(24,827)	6,633
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(250,945)					(122,526)		(128,419)
Foreign currency translation adjustments	(15,707)						(7,816)	(7,891)
Stock-based compensation	16,327				16,327
Exercise of stock options (in shares)			54
Exercise of stock options	239				193			46
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (in shares)			1,729
Restricted stock unit vesting, net of shares withheld to cover payroll taxes	(3,377)		$ 18		718		(112)	(4,001)
Unrealized gain on cash flow hedge, net of tax	67,694						33,623	34,071
Tax distributions, net		(7,330)							(7,330)
Reclassification of redeemable non-controlling interest	(883)					(438)		(445)
Shares ending balance (in shares) at Jun. 30, 2022			151,196	152,117
Stockholders' equity ending balance at Jun. 30, 2022	172,991		$ 1,510	$ 1,522	675,588	(399,161)	868	(107,336)
Redeemable Non-Controlling Interests, beginning balance at Dec. 31, 2021	16,907
Increase (Decrease) in Temporary Equity [Roll Forward]
Net (loss) income	4,404
Tax distributions, net	(2,587)
Reclassification of redeemable non-controlling interest	883
Acquisition of redeemable non-controlling interest	(1,722)
Redeemable Non-Controlling Interests, ending balance at Jun. 30, 2022	17,885
Shares beginning balance (in shares) at Mar. 31, 2022			150,775	152,117
Stockholders' equity beginning balance at Mar. 31, 2022	407,407		$ 1,506	$ 1,522	666,799	(278,353)	(349)	16,282
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(242,128)					(120,808)		(121,320)
Foreign currency translation adjustments	(11,628)						(5,792)	(5,836)
Stock-based compensation	8,262				8,262
Exercise of stock options (in shares)			47
Exercise of stock options	128				128
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (in shares)			374
Restricted stock unit vesting, net of shares withheld to cover payroll taxes	(233)		$ 4		399			(636)
Unrealized gain on cash flow hedge, net of tax	14,070						7,009	7,061
Tax distributions, net		$ (2,887)							$ (2,887)
Shares ending balance (in shares) at Jun. 30, 2022			151,196	152,117
Stockholders' equity ending balance at Jun. 30, 2022	172,991		$ 1,510	$ 1,522	$ 675,588	$ (399,161)	$ 868	$ (107,336)
Redeemable Non-Controlling Interests, beginning balance at Mar. 31, 2022	16,420
Increase (Decrease) in Temporary Equity [Roll Forward]
Net (loss) income	2,047
Tax distributions, net	(582)
Redeemable Non-Controlling Interests, ending balance at Jun. 30, 2022	$ 17,885

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Nature of Operations

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Nature of Operations

Amneal Pharmaceuticals, Inc. (the “Company”) is a pharmaceutical company specializing in developing, manufacturing, marketing and distributing high-value generic and branded specialty pharmaceutical products across a broad array of dosage forms and therapeutic areas. The Company operates principally in the United States, India, and Ireland, and sells to wholesalers, distributors, hospitals, chain pharmacies and individual pharmacies, either directly or indirectly. The Company is a holding company, whose principal assets are common units (“Amneal Common Units”) of Amneal Pharmaceuticals, LLC (“Amneal”).

In 2018, Amneal completed the acquisition of Impax Laboratories, Inc. (“Impax”), a generic and specialty pharmaceutical company. In 2020, Amneal acquired a 65.1% controlling interest in both AvKARE Inc., a Tennessee corporation now a limited liability company (“AvKARE, LLC”), and Dixon-Shane, LLC d/b/a R&S Northeast LLC, a Kentucky limited liability company (“R&S”) (collectively, the “Rondo Acquisitions”). AvKARE, LLC is one of the largest private label providers of generic pharmaceuticals in the U.S. federal agency sector, primarily focused on serving the Department of Defense and the Department of Veterans Affairs. R&S is a national pharmaceutical wholesaler focused primarily on offering 340b-qualified entities products to provide consistency in care and pricing.

The group of investors, together with their affiliates and certain assignees, who owned Amneal when it was a private company (the “Members”) held 50.2% of Amneal Common Units and the Company held the remaining 49.8% as of June 30, 2022.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States of America, should be read in conjunction with the Company’s annual audited financial statements for the year ended December 31, 2021 included in the Company’s 2021 Annual Report on Form 10-K. Certain information and footnote disclosures normally included in annual financial statements have been omitted from the accompanying unaudited consolidated financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of June 30, 2022, cash flows for the six months ended June 30, 2022 and 2021 and the results of its operations, its comprehensive (loss) income and its changes in stockholders’ equity for the three and six months ended June 30, 2022 and 2021. The consolidated balance sheet data at December 31, 2021 was derived from the Company’s audited annual financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America.

Except for the updates included in this note, the accounting policies of the Company are set forth in Note 2. Summary of Significant Accounting Policies contained in the Company’s 2021 Annual Report on Form 10-K.

Use of Estimates

The preparation of financial statements requires the Company's management to make estimates and assumptions that affect the reported financial position at the date of the financial statements and the reported results of operations during the reporting period. Such estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The following are some, but not all, of such estimates: the determination of chargebacks, sales returns, rebates, billbacks, valuation of intangible and other assets acquired in business combinations, allowances for accounts receivable, accrued liabilities, initial and subsequent valuation of contingent consideration recognized in business combinations, stock-based compensation, valuation of inventory balances, the determination of useful lives for product rights and the assessment of expected cash flows used in evaluating goodwill and other long-lived assets for impairment. Actual results could differ from those estimates.

Recently Adopted Accounting Pronouncements

Government Assistance (Topic 832): Disclosures by Business Entities About Government Assistance

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for the Company’s annual disclosures as of and for the year ending December 31, 2022, with early adoption permissible. The Company elected to adopt this guidance during the quarter ended June 30, 2022 in connection with the recognition of cash incentive related to the India Production Linked Incentive Scheme for the Pharmaceutical Sector (“PLI Scheme”). Refer to Note 19. Government Grants, for additional information.

Recently Issued Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides elective amendments for entities that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.  These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), to expand and clarify the scope of Topic 848 to include derivative instruments on discounting transactions. The amendments in this ASU are effective in the same timeframe as ASU 2020-04. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

Reclassification

The prior period balance related to liabilities for legal proceedings of $58.0 million, formerly included in accounts payable and accrued expenses as of December 31, 2021, has been reclassified to the balance sheet caption liabilities for legal proceedings to conform to the current period presentation in the consolidated balance sheets.

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Acquisitions

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

Saol Baclofen Franchise Acquisition

On December 30, 2021, the Company entered into an asset purchase agreement with certain entities affiliated with Saol International Limited (collectively, “Saol”), a private specialty pharmaceutical company, pursuant to which it agreed to acquire Saol’s baclofen franchise, including Lioresal®, LYVISPAH™, and a pipeline product under development (the “Saol Acquisition”). The Saol Acquisition expands the Company’s commercial institutional and specialty portfolio in neurology while adding commercial infrastructure in advance of its entry into the biosimilar institutional market. The transaction closed on February 9, 2022.

Consideration for the Saol Acquisition included $84.7 million, paid at closing with cash on hand, and contingent royalty payments based on annual net sales for certain acquired assets, beginning in 2023. Cash paid at closing included $1.1 million for inventory acquired in excess of the normalized level, as defined in the asset purchase agreement (working capital adjustment).

For the six months ended June 30, 2022, the Company incurred $0.1 million in transaction costs associated with the Saol Acquisition, which was recorded in acquisition, transaction-related and integration expenses (none for the three months ended June 30, 2022).

The Saol Acquisition was accounted for under the acquisition method of accounting, with Amneal as the accounting acquirer. The preliminary purchase price was calculated as follows (in thousands):

Cash	$	84,714
Contingent consideration (royalties) (1)	8,796
Fair value of consideration transferred	$	93,510

(1)The estimated fair value of contingent consideration on the acquisition date was $8.8 million and was based on significant Level 3 inputs that were not observable in the market. Key assumptions included the discount rate, projected year of payments and expected net product sales. Refer to Note 10. Fair Value Measurements, for additional information on the methodology and determination of this liability.

The following is a summary of the preliminary purchase price allocation for the Saol Acquisition (in thousands):

	Preliminary Fair Values as of February 9, 2022
Inventory	$	2,162
Prepaid expenses and other current assets	98
Goodwill	7,553
Intangible assets	83,815
Total assets acquired	93,628
Accounts payable and accrued expenses	118
Fair value of consideration transferred	$	93,510

The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):

	Preliminary Fair Value		Weighted-Average Useful Life (in years)
Marketed product rights	$	83,815	11.6

The estimated fair value of the identifiable intangible assets was determined using the “income approach,” which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. The assumptions, including the expected projected cash flows, utilized in the purchase price allocation and in determining the purchase price were based on management's best estimates as of the closing date of the Saol Acquisition on February 9, 2022.

Some of the more significant assumptions inherent in the development of those asset valuations included the estimated net cash flows for each year for each asset (including net revenues, cost of sales, selling and marketing costs and working capital / contributory asset charges), the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, the potential regulatory and commercial success risks, competitive trends impacting the asset and each cash flow stream, as well as other factors. The underlying assumptions used to prepare the discounted cash flow analysis may change; accordingly, for these and other reasons, actual results may vary significantly from estimated results.

Goodwill is calculated as the excess of the consideration transferred over the net assets recognized. Of the total goodwill acquired in connection with the Saol Acquisition, $5.2 million was allocated to the Company’s Generics segment and $2.4 million was allocated to the Company’s Specialty segment.

From the acquisition date of February 9, 2022 to June 30, 2022, the Saol Acquisition contributed net revenue and an operating loss of $9.3 million and $2.0 million, respectively. For the three months ended June 30, 2022, the Saol Acquisition contributed net revenue and an operating loss of $6.3 million and $1.9 million, respectively.

Puniska Healthcare Pvt. Ltd.

On November 2, 2021, the Company entered into a definitive agreement to acquire Puniska Healthcare Pvt. Ltd. (“Puniska”), a privately held manufacturer of parenteral and injectable drugs in India, and land in a transaction valued at $93.0 million (the “Puniska Acquisition”). Upon execution of the agreement, the Company paid $72.9 million with cash on hand for approximately 74% of the equity interests of Puniska. Upon approval of the transaction by the government of India in March 2022, the Company paid, with cash on hand, an additional $1.7 million for the remaining 26% of the equity interests of Puniska (included in redeemable non-controlling interests in the Company’s consolidated balance sheet as of December 31, 2021) and $14.2 million for the satisfaction of a preexisting payable to the sellers (included in related party payables-short term in the Company’s consolidated balance sheet as of December 31, 2021). During December 2021, the Company paid $4.3 million with cash on hand for land associated with the Puniska Acquisition.

There were no transaction costs associated with the Puniska Acquisition for the three and six months ended June 30, 2022.

The Puniska Acquisition, excluding the land acquired in December 2021, was accounted for under the acquisition method of accounting, with Amneal as the accounting acquirer. The preliminary purchase price was calculated as follows (in thousands):

Cash (1)	$	72,880
Payable to sellers (2)	14,162
Fair value of consideration transferred	$	87,042

(1)     Cash includes the payment made upon execution of the agreement.

(2)     Due to the short-term nature of the payable to the sellers, the principal amount approximates fair value.

The following is a summary of the preliminary purchase price allocation for the Puniska Acquisition (in thousands):

	Preliminary Fair Values as of November 2, 2021
Cash	$	165
Trade accounts receivable, net	232
Inventories	1,092
Prepaid expenses and other current assets	4,473
Property, plant and equipment	53,423
Goodwill	30,091
Operating lease-right-of-use assets	234
Other assets	1,303
Total assets acquired	91,013
Accounts payable and accrued expenses	1,732
Operating lease liabilities	234
Other long-term liabilities	263
Total liabilities assumed	2,229
Redeemable non-controlling interests	1,742
Fair value of consideration transferred	$	87,042

Goodwill is calculated as the excess of the consideration transferred and fair value of the redeemable non-controlling interests over the net assets recognized. All of the goodwill acquired in connection with the Puniska Acquisition was allocated to the Company’s Generics segment.

Kashiv Specialty Pharmaceuticals, LLC Acquisition

On January 11, 2021, the Company and Kashiv Biosciences, LLC (a related party, see Note 15. Related Party Transactions) (“Kashiv”) entered into a definitive agreement for Amneal to acquire a 98% interest in Kashiv Specialty Pharmaceuticals, LLC (“KSP”), a subsidiary of Kashiv focused on the development of innovative drug delivery platforms, novel 505(b)(2) drugs and complex generics (the “KSP Acquisition”).

On April 2, 2021, the Company completed the KSP Acquisition.  Under the terms of the transaction, the cash portion of the consideration was $104.5 million, comprised of a purchase price of $100.1 million (including initial and deferred consideration) and a working capital adjustment of $4.4 million.  The initial cash purchase price was funded by cash on hand. For further detail of the purchase price, refer to the table below.

Transaction costs associated with the KSP Acquisition were $2.0 million and $3.1 million for the three and six months ended June 30, 2021, respectively, and were included in acquisition, transaction-related and integration expenses (none for the three and six months ended June 30, 2022).

The KSP Acquisition was accounted for under the acquisition method of accounting, with Amneal as the accounting acquirer.

The purchase price was calculated as follows (in thousands):

Cash, including working capital payments	$	74,440
Deferred consideration (1)	30,099
Contingent consideration (regulatory milestones) (2)	500
Contingent consideration (royalties) (2)	5,200
Settlement of Amneal trade accounts payable due to KSP (3)	(7,117)
Fair value consideration transferred	$	103,122

(1)The deferred consideration was stated at the fair value estimate of $30.1 million, which is the $30.5 million contractually stated amount less a $0.4 million discount. The deferred consideration consisted of $30.0 million, which the Company paid in January 2022 and $0.5 million, which the Company expects to pay during the three months ending September 30, 2022. As the deferred consideration is non-interest bearing, the Company, using guideline companies and market borrowings with comparable risk profiles, discounted the deferred consideration at 1.7% over the period from April 2, 2021 to the maturity dates, for a fair value of $30.1 million on the date of acquisition. This discount was amortized to interest expense over the life of the deferred consideration utilizing the effective interest rate method.

(2)    Kashiv is eligible to receive up to an additional $8.0 million in contingent payments upon the achievement of certain regulatory milestones and potential royalty payments from high single-digits to mid double-digits, depending on the amount of aggregate annual net sales for certain future pharmaceutical products. The estimated fair value of contingent consideration on the acquisition date was $5.7 million and was based on significant Level 3 inputs that were not observable in the market. Key assumptions included the discount rate, probability of achievement of milestones, projected year of payments and expected net product sales. Refer to Note 10. Fair Value Measurements, for additional information on the methodology and determination of this liability.

(3)    Represented trade accounts payable due to KSP that were effectively settled upon closing of the KSP Acquisition.

The following is a summary of the purchase price allocation for the KSP Acquisition (in thousands):

	Final Fair Values as of April 2, 2021
Cash	$	112
Restricted cash	500
Prepaid expenses and other current assets	381
Property, plant and equipment	5,375
Goodwill	43,530
Intangible assets	56,400
Operating lease right-of-use assets	9,367
Total assets acquired	115,665
Accounts payable and accrued expenses	1,239
Operating lease liability	9,177
Related party payable	127
Total liabilities assumed	10,543
Non-controlling interests	2,000
Fair value of consideration transferred	$	103,122

Total acquired intangible assets of $56.4 million were comprised of marketed product rights of $29.4 million and in-process research and development (“IPR&D”) of $27.0 million.

The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):

	Fair Value		Weighted-Average Useful Life (in years)
Marketed product rights	$	29,400	5.9

The estimated fair value of the in-process research and development and identifiable intangible assets was determined using the “income approach”, which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. The assumptions, including the expected projected cash flows, utilized in the purchase price allocation and in determining the purchase price were based on management’s best estimates as of the closing date of the KSP Acquisition on April 2, 2021.

Some of the more significant assumptions inherent in the development of those asset valuations included the estimated net cash flows for each year for each asset or product (including net revenues, cost of sales, R&D, selling and marketing costs and working capital / contributory asset charges), the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, the potential regulatory and commercial success risks, competitive trends impacting the asset and each cash flow stream, as well as other factors. The underlying assumptions used to prepare the discounted cash flow analysis may change; accordingly, for these and other reasons, actual results may vary significantly from estimated results.

Goodwill is calculated as the excess of the consideration transferred and fair value of the non-controlling interests over the net assets recognized. Of the total goodwill acquired in connection with the KSP Acquisition, $40.8 million was allocated to the Company’s Generics segment and $2.7 million was allocated to the Company’s Specialty segment.

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Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized when the Company transfers control of its products to the customer, which typically occurs at a point-in-time, either upon shipment or delivery. Substantially all of the Company’s net revenues relate to products which are transferred to the customer at a point-in-time.

Concentration of Revenue

The following table summarizes revenues from each of our customers which individually accounted for 10% or more of our total net revenue:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Customer A	19	%	26	%	19	%	23	%
Customer B	17	%	20	%	17	%	20	%
Customer C	21	%	21	%	22	%	23	%
Customer D	11	%	11	%	11	%	11	%

Disaggregated Revenue

The Company's significant therapeutic classes for its Generics and Specialty segments and sales channels for its AvKARE segment, as determined based on net revenue for the three and six months ended June 30, 2022 and 2021 are set forth below (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021
Generics
	Anti-Infective	$	5,566	$	9,677	$	11,811	$	15,590
	Hormonal/ Allergy	118,309		111,654		214,677		218,357
	Antiviral (1)	1,296		(261)		11,867		(8,202)
	Central Nervous System	108,787		106,628		189,912		202,919
	Cardiovascular System	32,043		36,134		55,496		71,445
	Gastroenterology	17,531		19,703		34,151		39,161
	Oncology	18,424		33,450		35,632		52,480
	Metabolic Disease/Endocrine	9,988		6,881		21,221		13,438
	Respiratory	12,118		10,463		17,783		18,641
	Dermatology	17,937		14,818		31,414		27,696
	Other therapeutic classes	22,329		11,143		57,689		20,874
	International and other	567		147		989		546
	Total Generics net revenue	364,895		360,437		682,642		672,945
Specialty
	Hormonal/ Allergy	24,320		16,012		43,739		32,808
	Central Nervous System	65,356		65,130		123,524		132,841
	Gastroenterology	484		—		554		—
	Other therapeutic classes	6,841		7,493		14,270		18,917
	Total Specialty net revenue	97,001		88,635		182,087		184,566
AvKARE
	Distribution	64,240		48,316		124,503		93,815
	Government Label	22,280		29,172		46,739		60,244
	Institutional	6,060		5,780		12,375		10,959
	Other	4,879		2,735		8,642		5,651
	Total AvKARE net revenue	97,459		86,003		192,259		170,669
	Total net revenue	$	559,355	$	535,075	$	1,056,988	$	1,028,180

(1) Antiviral net revenue for the three and six months ended June 30, 2021 reflected lower demand and increased returns activity for Oseltamivir (generic Tamiflu®) above historical levels due to decreased influenza activity during the COVID-19 pandemic.

A rollforward of the major categories of sales-related deductions for the six months ended June 30, 2022 is as follows (in thousands):

	Contract Charge - Backs and Sales Volume Allowances		Cash Discount Allowances		Accrued Returns Allowance		Accrued Medicaid and Commercial Rebates
Balance at December 31, 2021	$	503,902	$	23,642	$	161,978	$	85,737
Provision related to sales recorded in the period	1,567,090		52,895		47,486		61,913
Credits/payments issued during the period	(1,675,244)		(53,255)		(51,238)		(54,879)
Balance at June 30, 2022	$	395,748	$	23,282	$	158,226	$	92,771

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Alliance and Collaboration

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Alliance and Collaboration

Alliance and Collaboration

The Company has entered into several alliance, collaboration, license, distribution and similar agreements with respect to certain of its products and services with third-party pharmaceutical companies. The consolidated statements of operations include revenue recognized under agreements the Company has entered into to develop marketing and/or distribution relationships with its partners to fully leverage the technology platform and revenue recognized under development agreements which generally obligate the Company to provide research and development services over multiple periods. The Company's significant arrangements are discussed below.

Biosimilar Licensing and Supply Agreement

On May 7, 2018, the Company entered into a licensing and supply agreement with Mabxience S.L. for its biosimilar candidate for Avastin® (bevacizumab). The supply agreement was subsequently amended on March 2, 2021 and the licensing agreement was amended on March 4, 2021. Pursuant to the agreement, the Company will be the exclusive partner in the U.S. market and will pay development and regulatory milestone payments as well as commercial milestone payments on reaching pre-agreed sales targets in the market to Mabxience, up to $78.0 million. For the three and six months ended June 30, 2021, the Company recognized $7.5 million and $9.5 million, respectively, of research and development expense under this agreement (none for the three and six months ended June 30, 2022).

On April 13, 2022, the Food and Drug Administration (“FDA”) approved the Company’s biologics license application for bevacizumab-maly, a biosimilar referencing Avastin®. In connection with this regulatory approval and associated activity, the Company incurred milestone payments of $26.5 million, of which $10.0 million was paid, during the three and six months ended June 30, 2022. The milestones were capitalized as an intangible assets and will be amortized to cost of sales over their estimated useful lives of 7 years.

Agreements with Kashiv Biosciences, LLC

For details on the Company’s related party agreements with Kashiv, refer to Note 15. Related Party Transactions in this Form 10-Q and the Company’s 2021 Annual Report on Form 10-K

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(Loss) Earnings per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

(Loss) Earnings per Share

(Loss) Earnings per Share

Basic (loss) earnings per share of the Company’s class A common stock is computed by dividing net (loss) income attributable to Amneal Pharmaceuticals, Inc. by the weighted-average number of shares of class A common stock outstanding during the period. Diluted (loss) earnings per share of class A common stock is computed by dividing net (loss) income attributable to Amneal Pharmaceuticals, Inc. by the weighted-average number of shares of class A common stock outstanding, adjusted to give effect to potentially dilutive securities.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted (loss) earnings per share of class A common stock (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	$	(120,808)	$	14,532	$	(122,964)	$	21,238
Denominator:
Weighted-average shares outstanding - basic	150,993		148,996		150,445		148,507
Effect of dilutive securities:
Stock options	—		837		—		815
Restricted stock units	—		2,153		—		2,284
Weighted-average shares outstanding - diluted	150,993		151,986		150,445		151,606
Net (loss) earnings per share attributable to Amneal Pharmaceuticals, Inc.’s class A common stockholders:
Basic	$	(0.80)	$	0.10	$	(0.82)	$	0.14
Diluted	$	(0.80)	$	0.10	$	(0.82)	$	0.14

Shares of the Company's class B common stock do not share in the earnings or losses of the Company and, therefore, are not participating securities. As such, separate presentation of basic and diluted (loss) earnings per share of class B common stock under the two-class method has not been presented.

The following table presents potentially dilutive securities excluded from the computations of diluted (loss) earnings per share of class A common stock (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options	2,919	(1)	347	(3)	2,919	(1)	347	(3)
Restricted stock units	10,989	(1)	—		10,989	(1)	—
Performance stock units	7,427	(1)	5,169	(4)	7,427	(1)	5,169	(4)
Shares of class B common stock	152,117	(2)	152,117	(2)	152,117	(2)	152,117	(2)

(1)Excluded from the computation of diluted earnings per share of class A common stock because the effect of their inclusion would have been anti-dilutive since there was a net loss attributable to the Company for the three and six months ended June 30, 2022.

(2)Shares of class B common stock are considered potentially dilutive shares of class A common stock. Shares of class B common stock have been excluded from the computations of diluted (loss) earnings per share because the effect of their inclusion would have been anti-dilutive under the if-converted method.

(3)Excluded from the computation of diluted earnings per share of class A common stock because the exercise price of the stock options exceeded the average market price of the class A common stock during the period (out-of-the-money).

(4)Excluded from the computation of diluted earnings per share of class A common stock because the performance vesting conditions were not met for each of the three and six months ended June 30, 2021.

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Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended June 30, 2022, the Company’s provision for income taxes and effective tax rates were $7.4 million and (3.2)%, respectively, compared to $2.6 million and 7.6%, respectively, for the three months ended June 30, 2021. The period-over-period change in the provision for income taxes was primarily related to a change in the mix of foreign income.

For the six months ended June 30, 2022, the Company’s provision for income taxes and effective tax rates were $3.9 million and (1.6)%, respectively, compared to $3.0 million and 6.0%, respectively, for the six months ended June 30, 2021. The period-over-period change in the provision for income taxes was primarily related to a change in the mix of foreign income and a discrete benefit as a result of the completion of an Internal Revenue Service examination and Joint Committee review of the 2012-2018 federal income tax returns, which enabled the Company to recognize previously unrecognized tax benefits.

As of September 30, 2019, the Company established a valuation allowance based upon all available objective and verifiable evidence both positive and negative, including historical levels of pre-tax income (loss) both on a consolidated basis and tax reporting entity basis, legislative developments, expectations and risks associated with estimates of future pre-tax income, and prudent and feasible tax planning strategies. The Company estimated that as of September 30, 2019, it had generated a cumulative consolidated three-year pre-tax loss, which continued as of December 31, 2021.  As a result of the initial September 30, 2019 and December 31, 2021 analyses, the Company determined that it remained more likely than not that it would not realize the benefits of its gross deferred tax assets (“DTAs”) and, therefore, maintained its valuation allowance. As of December 31, 2021, this valuation allowance was $416.6 million, and it reduced the carrying value of these gross DTAs, net of the impact of the reversal of taxable temporary differences, to zero. As of June 30, 2022, based on its evaluation of available positive and negative evidence, the Company has maintained its position with respect to the valuation allowance.

The Company entered into a tax receivable agreement (“TRA”) for which it is generally required to pay the holders of Amneal Common Units 85% of the applicable tax savings, if any, in U.S. federal and state income tax that it is deemed to realize as a result of certain tax attributes of their Amneal Common Units sold to the Company (or exchanged in a taxable sale) and that are created as a result of (i) the sales of their Amneal Common Units for shares of class A common stock and (ii) tax benefits attributable to payments made under the TRA.  In conjunction with the valuation allowance recorded on the DTAs at September 30, 2019, the Company reversed the TRA liability.

The projection of future taxable income involves significant judgment. Actual taxable income may differ from the Company’s estimates, which could significantly impact the timing of the recognition of the contingent liability under the TRA. As noted above, the Company has determined it is more-likely-than-not it will be unable to utilize all of its DTAs subject to the TRA; therefore, as of June 30, 2022, the Company has not recognized the contingent liability under the TRA related to the tax savings it may realize from common units sold or exchanged. If utilization of these DTAs becomes more likely than not in the future, at such time, Amneal will recognize a liability under the TRA as a result of basis adjustments under Internal Revenue Code Section 754. As of both June 30, 2022 and December 31, 2021, the contingent liability associated with the TRA was approximately $206.3 million.

The timing and amount of any payments under the TRA may vary depending upon a number of factors, including the timing and number of Amneal Common Units sold or exchanged for the Company's class A common stock, the price of the Company's class A common stock on the date of sale or exchange, the timing and amount of the Company's taxable income, and the tax rate in effect at the time of realization of the Company's taxable income (the TRA liability is determined based on a percentage of the corporate tax savings from the use of the TRA's attributes). Further sales or exchanges occurring subsequent to June 30, 2022 could result in future Amneal tax deductions and obligations to pay 85% of such benefits to the holders of Amneal Common Units. These obligations could be incremental to and substantially larger than the approximate $206.3 million contingent liability as of June 30, 2022 described above. Under certain conditions, such as a change of control or other early termination event, the Company could be obligated to make TRA payments in advance of tax benefits being realized. Payments could also be in excess of the tax savings that the Company may ultimately realize.

Any future recognition of these TRA liabilities will be recorded through charges in the Company’s consolidated statements of operations.  However, if the tax attributes are not utilized in future years, it is reasonably possible no amounts would be paid under the TRA.  Should the Company determine that a DTA with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be reversed and if a resulting TRA payment is determined to be probable, a corresponding TRA liability will be recorded.

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Trade Accounts Receivable, Net

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Trade Accounts Receivable, Net

Trade Accounts Receivable, Net

Trade accounts receivable, net was comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Gross accounts receivable	$	1,109,812	$	1,191,792
Allowance for credit losses	(1,933)		(1,665)
Contract charge-backs and sales volume allowances	(395,748)		(503,902)
Cash discount allowances	(23,282)		(23,642)
Subtotal	(420,963)		(529,209)
Trade accounts receivable, net	$	688,849	$	662,583

Concentration of Receivables

Trade accounts receivable from customers representing 10% or more of the Company’s total trade accounts receivable were as follows:

	June 30, 2022		December 31, 2021
Customer A	34	%	37	%
Customer B	22	%	24	%
Customer C	28	%	25	%

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Inventories

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories were comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Raw materials	$	220,593	$	214,508
Work in process	71,784		47,802
Finished goods	240,651		227,079
Total inventories	$	533,028	$	489,389

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Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Value is determined using pricing models, discounted cash flow methodologies, or similar techniques and also includes instruments for which the determination of fair value requires significant judgment or estimation.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification for each reporting period. The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 (in thousands):

			Fair Value Measurement Based on
June 30, 2022	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Interest rate swap asset (1)	$	56,221	$	—	$	56,221	$	—
Liabilities
Deferred compensation plan liabilities (2)	$	10,648	$	—	$	10,648	$	—
Contingent consideration liabilities (3)	$	14,626	$	—	$	—	$	14,626
December 31, 2021
Liabilities
Interest rate swap liability (1)	$	11,473	$	—	$	11,473	$	—
Deferred compensation plan liabilities (2)	$	13,883	$	—	$	13,883	$	—
Contingent consideration liability (3)	$	5,900	$	—	$	—	$	5,900

(1)The fair value measurement of the Company’s interest rate swap classified within Level 2 of the fair value hierarchy is a model-derived valuation as of a given date in which all significant inputs are observable in active markets including certain financial information and certain assumptions regarding past, present, and future market conditions. Refer to Note 11. Financial Instruments for information on the Company's interest rate swap.

(2)These liabilities are recorded at the value of the amount owed to the plan participants, with changes in value recognized as compensation expense. The calculation of the deferred compensation plan obligation is derived from observable market data by reference to hypothetical investments selected by the participants.

(3)The fair value measurement of contingent consideration liabilities has been classified as Level 3 recurring liabilities as the valuations require judgment and estimation of factors that are not currently observable in the market. If different assumptions were used for various inputs, the estimated fair values could be higher or lower than what the Company determined. As of June 30, 2022, contingent consideration liabilities of $5.8 million associated with the KSP Acquisition and $8.8 million associated with the Saol Acquisition were recorded within related party payables - long term and other long-term liabilities, respectively. As of December 31, 2021, a contingent consideration liability of $5.9 million associated with the KSP Acquisition was recorded within related party payables - long term. Refer to Note 3. Acquisitions for additional information related to contingent consideration associated with the KSP Acquisition and the Saol Acquisition.

There were no transfers between levels in the fair value hierarchy during the six months ended June 30, 2022.

Contingent consideration

On April 2, 2021, the Company completed the KSP Acquisition, which provides for contingent milestone payments of up to an aggregate of $8.0 million (undiscounted) upon the achievement of certain regulatory milestones, as well as contingent royalty payments that are tiered depending on the aggregate annual net sales for certain future pharmaceutical products.

On February 9, 2022, the Company completed the Saol Acquisition, which provides for contingent royalty payments that are tiered depending on the aggregate annual net sales for certain pharmaceutical products, beginning in 2023.

The following table provides a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

	Six Months Ended June 30, 2022		Year Ended December 31, 2021
Balance, beginning of period	$	5,900	$	—
Addition due to the Saol Acquisition	8,796		—
Addition due to the KSP Acquisition	—		5,700
Change in fair value during the period	(70)		200
Balance, end of period	$	14,626	$	5,900

The fair value measurement of the contingent consideration liabilities were determined based on significant unobservable inputs, including the discount rate, estimated probabilities of success, timing of achieving specified regulatory milestones and the estimated amount of future sales of the acquired products. The contingent consideration liabilities were estimated by applying a probability-weighted expected payment model for contingent milestone payments and Monte Carlo simulation models for contingent royalty payments, which were then discounted to present value. Changes to the fair values of the contingent consideration liabilities can result from changes to one or a number of the aforementioned inputs. If different assumptions were used for various inputs, the estimated fair value could be higher or lower than what the Company determined.

The following table summarizes the significant unobservable inputs used in the fair value measurement of our contingent consideration liabilities as of June 30, 2022:

Contingent Consideration Liability	Fair Value as of June 30, 2022 (in thousands)	Unobservable input	Range			Weighted Average(1)
Regulatory Milestones (KSP Acquisition)	$430	Discount rate	7.9%	-	9.0%	8.0%
		Probability of payment	1.8%	-	20.0%	17.0%
		Projected year of payment	2023	-	2027	2023
Royalties (KSP Acquisition)	$5,400	Discount rate	12.5%	-	12.5%	12.5%
		Probability of payment	1.8%	-	20.0%	18.0%
		Projected year of payment	2023	-	2032	2029
Royalties (Saol Acquisition)	$8,796	Discount rate	16.8%	-	16.8%	16.8%
		Projected year of payment	2023	-	2037	2027

(1) Unobservable inputs were weighted by the relative fair value of each product candidate acquired.

Assets and Liabilities Not Measured at Fair Value on a Recurring Basis

The carrying amounts of cash, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments.

The Term Loan, as defined in Note 17. Debt in the Company’s 2021 Annual Report on Form 10-K, is in the Level 2 category within the fair value level hierarchy. The fair value was determined using market data for valuation. The fair value of the Term Loan at June 30, 2022 was approximately $2.3 billion as compared to approximately $2.6 billion at December 31, 2021.

The Rondo Term Loan, as defined in Note 17. Debt in the Company’s 2021 Annual Report on Form 10-K, is in the Level 2 category within the fair value level hierarchy. The fair value of the Rondo Term Loan at June 30, 2022 and December 31, 2021 was $91.3 million and $139.0 million, respectively.

The Sellers Notes are in the Level 2 category within the fair value level hierarchy. The fair value of the Sellers Notes at June 30, 2022 and December 31, 2021 was $38.6 million and $38.0 million, respectively.

Refer to Note 17. Debt in our 2021 Annual Report on Form 10-K for detailed information about our indebtedness, including definitions of terms.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

There were no non-recurring fair value measurements during the six months ended June 30, 2022 and 2021.

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Financial Instruments

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

Financial Instruments

The Company uses an interest rate swap to manage its exposure to market risks for changes in interest rates.

Interest Rate Risk

Interest income earned on cash and cash equivalents may fluctuate as interest rates change; however, due to their relatively short maturities, the Company does not hedge these assets or their investment cash flows because the impact of interest rate risk is not material. The Company is exposed to interest rate risk on its debt obligations. The Company's debt obligations consist of variable-rate and fixed-rate debt instruments.  The Company's primary objective is to achieve the lowest overall cost of funding while managing the variability in cash outflows within an acceptable range.  In order to achieve this objective, the Company has entered into an interest rate swap on the Term Loan.

Interest Rate Derivative – Cash Flow Hedge

The interest rate swap involves the periodic exchange of payments without the exchange of underlying principal or notional amounts. In October 2019, the Company entered into an interest rate lock agreement for a total notional amount of $1.3 billion to hedge part of the Company's interest rate exposure associated with the variability in future cash flows from changes in the one-month LIBOR associated with the Term Loan.

As of June 30, 2022, the total gain, net of income taxes, related to the Company’s cash flow hedge was $56.2 million, of which $27.6 million was recognized in accumulated other comprehensive income and $28.6 million was recognized in non-controlling interests.

A summary of the fair values of derivative instruments in the consolidated balance sheets was as follows (in thousands):

	June 30, 2022			December 31, 2021
Derivatives Designated as Hedging Instruments	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Variable-to-fixed interest rate swap	Other Assets	$	56,221	Other long-term liabilities	$	11,473

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The changes in goodwill for the six months ended June 30, 2022 and for the year ended December 31, 2021 were as follows (in thousands):

	June 30, 2022		December 31, 2021
Balance, beginning of period	$	593,017	$	522,814
Goodwill acquired during the period	7,553		70,584
Adjustment during the period for Puniska Acquisition	3,075		—
Currency translation	(2,671)		(381)
Balance, end of period	$	600,974	$	593,017

As of June 30, 2022, $366.3 million, $165.2 million, and $69.5 million of goodwill was allocated to the Specialty, Generics, and AvKARE segments, respectively. As of December 31, 2021, $363.9 million, $159.6 million, and $69.5 million of goodwill was allocated to the Specialty, Generics, and AvKARE segments, respectively. For the six months ended June 30, 2022, goodwill acquired during the period was associated with the Saol Acquisition. For the year ended December 31, 2021, goodwill acquired during the period was associated with the Puniska Acquisition and the KSP Acquisition. Refer to Note 3. Acquisitions for additional information.

Intangible assets at June 30, 2022 and December 31, 2021 were comprised of the following (in thousands):

	June 30, 2022							December 31, 2021
	Weighted-Average Amortization Period (in years)	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Amortizing intangible assets:
Product rights	7.9	$	1,240,871	$	(507,894)	$	732,977	$	1,122,612	$	(436,902)	$	685,710
Other intangible assets	4.5	133,800		(67,978)		65,822		133,800		(58,013)		75,787
Subtotal		$	1,374,671	$	(575,872)	$	798,799	$	1,256,412	$	(494,915)	$	761,497
In-process research and development		405,425		—		405,425		405,425		—		405,425
Total intangible assets		$	1,780,096	$	(575,872)	$	1,204,224	$	1,661,837	$	(494,915)	$	1,166,922

During the six months ended June 30, 2022, the Company recognized $83.8 million of product rights intangible assets associated with the preliminary purchase price allocation of the Saol Acquisition. During the three and six months ended June 30, 2021, the Company recognized $73.8 million of intangible assets associated with the then preliminary purchase price allocation of the KSP Acquisition, consisting of $29.5 million of product rights and $44.3 million of IPR&D. Product rights are amortized to cost of goods sold over their estimated useful lives. Refer to Note 3. Acquisitions for additional information on the preliminary purchase price allocation associated with the Saol Aquisition and the final purchase price allocation associated with the KSP Acquisition.

Amortization expense related to intangible assets was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Amortization	$	41,982	$	43,520	$	82,901	$	85,192

The following table presents future amortization expense for the next five years and thereafter, excluding $405.4 million of IPR&D intangible assets (in thousands):

	Future Amortization
Remainder of 2022	$	88,560
2023	161,146
2024	158,554
2025	120,845
2026	72,132
Thereafter	197,562
Total	$	798,799

The Company reviews intangible assets with finite lives for recoverability whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. Indefinite-lived intangible assets, including IPR&D, are tested for impairment if impairment indicators arise and, at a minimum, annually.

For both the three and six months ended June 30, 2022, the Company recognized a $5.1 million of intangible asset impairment charge. This charge was associated with a currently marketed product that experienced significant price erosion without an offsetting increase in customer demand, resulting in significantly lower than expected future margins.

For both the three and six months ended June 30, 2021, the Company recognized a $0.7 million intangible asset impairment charge associated with one IPR&D product, which experienced a delay in its estimated launch date.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Commitments

Commercial Manufacturing, Collaboration, License, and Distribution Agreements

The Company continues to seek to enhance its product line and develop a balanced portfolio of differentiated products through product acquisitions and in-licensing. Accordingly, the Company, in certain instances, may be contractually obligated to make potential future development, regulatory, and commercial milestone, royalty and/or profit-sharing payments in conjunction with collaborative agreements or acquisitions that the Company has entered with third parties. The Company has also licensed certain technologies or intellectual property from various third parties. The Company is generally required to make upfront payments as well as other payments upon successful completion of regulatory or sales milestones. The agreements generally permit the Company to terminate the agreement with no significant continuing obligation. The Company could be required to make significant payments pursuant to these arrangements. These payments are contingent upon the occurrence of certain future events and, given the nature of these events, it is unclear when, if ever, the Company may be required to pay such amounts. Further, the timing of any future payment is not reasonably estimable. Refer to Note 5. Alliance and Collaboration for additional information. Certain of these arrangements are with related parties. Refer to Note 15. Related Party Transactions for additional information.

Contingencies

Legal Proceedings

The Company's legal proceedings are complex, constantly evolving, and subject to uncertainty. As such, the Company cannot predict the outcome or impact of the legal proceedings set forth below. Additionally, the Company manufactures and derives a portion of its revenue from the sale of pharmaceutical products in the opioid class of drugs and may therefore face claims arising from the regulation and/or consumption of such products. The Company is also subject to legal proceedings that are not set forth below. While the Company believes it has meritorious claims and/or defenses to the matters described below (and intends to vigorously prosecute and defend them), the nature and cost of litigation is unpredictable, and an unfavorable outcome of the following proceedings could include damages, fines, penalties and injunctive or administrative remedies. For any proceedings where losses are probable and reasonably capable of estimation, the Company accrues for a potential loss. When the Company has a probable loss for which a reasonable estimate of the liability is a range of losses and no amount within that range is a better estimate than any other amount, the Company records the loss at the low end of the range. While these accruals have been deemed reasonable by the Company’s management, the assessment process relies heavily on estimates and assumptions that may ultimately prove inaccurate or incomplete. Additionally, unforeseen circumstances or events may lead the Company to subsequently change its estimates and assumptions. Unless otherwise indicated below, the Company is unable at this time to estimate the possible loss or the range of loss, if any, associated with such legal proceedings and claims. Any such claims, proceedings, investigations or litigation, regardless of the merits, might result in substantial costs to defend or settle, borrowings under our debt agreements, restrictions on product use or sales, or otherwise injure our business. The ultimate resolution of any or all claims, legal proceedings or investigations are inherently uncertain and difficult to predict, could differ materially from our estimates and could have a material adverse effect on the Company's results of operations and/or cash flows in any given accounting period, or on the Company's overall financial condition. The Company currently intends to vigorously prosecute and/or defend these proceedings as appropriate. From time to time, however, the Company may settle or otherwise resolve these matters on terms and conditions that it believes to be in its best interest. An insurance recovery, if any, is recorded in the period in which it is probable the recovery will be realized.

Charges related to legal matters, net were comprised of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Matter	2022		2021		2022		2021
Opana ER® Antitrust Litigation	$	262,837	$	—	$	262,837	$	—
Insurance Recoveries - Securities Class Action - Cambridge Retirement System v. Amneal	(11,500)		—		(15,500)		—
Galeas v. Amneal	—		—		1,200
Other	540		—		1,014		—
Total	$	251,877	$	—	$	249,551	$	—

Liabilities for legal matters were comprised of the following (in thousands):

Matter	June 30, 2022		December 31, 2021
Opana ER® Antitrust Litigation(1)	$	215,000	$	—
Securities Class Action - Fleming v. Impax(1)	33,000		33,000
Securities Class Action - Cambridge Retirement System v. Amneal(1)	25,000		25,000
Galeas vs. Amneal	1,200
Other (2)	1,138		—
Current portion of liabilities for legal matters	$	275,338	$	58,000
Opana ER® Antitrust Litigation	$	50,000	$	—
Imputed interest	(2,082)
Accrued interest	90		—
Long-term portion of liabilities for legal matters (included in other long-term liabilities)	$	48,008	$	—

1) Refer to Note 17. Prepaid Expenses and Other Current Assets for information on settlement escrow deposits associated with these matters. Upon final approval by the court, escrow deposits made by the Company and its insurers will be used to satisfy the associated accrued liabilities.

(2)    Includes $0.2 million of accrued interest associated with the Opana ER® antitrust litigation preliminary settlement.

A schedule of payments associated with the Opana ER® antitrust litigation preliminary settlement is as follows:

Date	Amount Due
June 2022	$	100,000
July 2022	15,000
December 2022	16,056
January 2023	83,944
January 2024	50,000
	$	265,000

3% interest is payable on the amounts due in December 2022, January 2023, and January 2024. The Company includes the interest accrual on these amounts as a component of the current portion of liabilities for legal matters. Additional interest of 2.7% was imputed on the $50.0 million long-term liability due in January 2024, resulting in an initial discount of $2.2 million, which will be amortized to interest expense over the life of the liability using the effective interest method.

Refer to the respective discussions below for additional information on the significant matters in the tables above.

Medicaid Reimbursement and Price Reporting Matters

The Company is required to provide pricing information to state agencies, including agencies that administer federal Medicaid programs. Certain state agencies have alleged that manufacturers have reported improper pricing information, which allegedly caused them to overpay reimbursement costs. Other agencies have alleged that manufacturers have failed to timely file required reports concerning pricing information. Liabilities are periodically established by the Company for any potential claims or settlements of overpayment. The Company intends to vigorously defend against any such claims. The ultimate settlement of any potential liability for such claims may be higher or lower than estimated.

Patent Litigation

There is substantial litigation in the pharmaceutical, biological, and biotechnology industries with respect to the manufacture, use, and sale of new products which are the subject of conflicting patent and intellectual property claims. One or more patents often cover the brand name products for which the Company is developing generic versions and the Company typically has patent rights covering the Company’s branded products.

Under federal law, when a drug developer files an Abbreviated New Drug Application (“ANDA”) for a generic drug seeking approval before expiration of a patent which has been listed with the FDA as covering the brand name product, the developer must certify its product will not infringe the listed patent(s) and/or the listed patent is invalid or unenforceable (commonly referred to as a “Paragraph IV” certification). Notices of such certification must be provided to the patent holder, who may file a suit for patent infringement within 45 days of the patent holder’s receipt of such notice. If the patent holder files suit within the 45-day period, the FDA can review and tentatively approve the ANDA, but generally is prevented from granting final marketing approval of the product until a final judgment in the action has been rendered in favor of the generic drug developer, or 30 months from the date the notice was received, whichever is sooner. The Company’s Generics segment is typically subject to patent infringement litigation brought by branded pharmaceutical manufacturers in connection with the Company’s Paragraph IV certifications seeking an order delaying the approval of the Company’s ANDA until expiration of the patent(s) at issue in the litigation.

The uncertainties inherent in patent litigation make the outcome of such litigation difficult to predict. For the Company’s Generics segment, the potential consequences in the event of an unfavorable outcome in such litigation include delaying the launch of its generic products until patent expiration. If the Company were to launch its generic product prior to successful resolution of a patent litigation, the Company could be liable for potential damages measured by the profits lost by the branded product manufacturer rather than the profits earned by the Company if it is found to infringe a valid, enforceable patent, or enhanced treble damages in cases of willful infringement. For the Company’s Specialty segment, an unfavorable outcome may significantly accelerate generic competition ahead of expiration of the patents covering the Company’s branded products. All such litigation typically involves significant expense.

The Company is generally responsible for all the patent litigation fees and costs associated with current and future products not covered by its alliance and collaboration agreements. The Company has agreed to share legal expenses with respect to third-party and Company products under the terms of certain of the alliance and collaboration agreements. The Company records the costs of patent litigation as expense in the period when incurred for products it has developed, as well as for products which are the subject of an alliance or collaboration agreement with a third-party.

Patent Defense Matter

Biogen International GMBH, et al. v. Amneal Pharmaceuticals LLC, et al. (Dimethyl Fumarate)

In June 2017, Biogen International GMBH (“Biogen”) filed suit against Amneal and various other generic manufacturers in the United States District Court for the District of Delaware (“D. Del.”) alleging patent infringement based on the filing of ANDAs by Amneal and others for generic alternatives to Biogen’s Tecfidera® (dimethyl fumarate) capsules product (Biogen International GMBH, et al. v. Amneal Pharmaceuticals LLC, et al., No. 1:17-cv-00823-MN). Biogen also filed suit in June 2017 against Mylan Pharmaceuticals Inc. (“Mylan”) in the United States District Court for the Northern District of West Virginia (“N.D. W. Va.”) relating to Mylan’s own ANDA for Tecfidera®. On June 18, 2020, the N.D. W. Va. court issued an order finding the sole Biogen patent at issue invalid. Biogen appealed the order (the “Mylan Appeal”) to the United States Court of Appeals for the Federal Circuit (the “Federal Circuit”). On September 22, 2020, the D. Del. court entered judgment in favor of the defendants (including Amneal), adopting the finding of invalidity made by the N.D. W. Va. court. Biogen appealed the D. Del. Order (“the Amneal Consolidated Appeal”).

Amneal, like Mylan and a number of other generic manufacturers, launched its generic dimethyl fumarate capsule products “at-risk,” pending the outcome of Biogen’s appeal of the N.D. W. Va. order.

On November 30, 2021, the Federal Circuit affirmed the N.D. W. Va. court’s order that Biogen’s patent is invalid: on March 23, 2022, issued a mandate in the Mylan Appeal as to the invalidity of the patent; and on June 16, 2022, Biogen filed a cert petition with the Supreme Court of the United States (the “U.S. Supreme Court”). The Amneal Consolidated Appeal is currently stayed pending the U.S. Supreme Court’s decision to consider Biogen’s cert petition.

Other Litigation Related to the Company’s Business

Opana ER® FTC Matters

On February 25, 2014, Impax received a Civil Investigative Demand (“CID”) from the Federal Trade Commission (“FTC”) concerning its investigation into the drug Opana® ER and its generic equivalents. On March 30, 2016, the FTC filed a complaint against Impax, Endo Pharmaceuticals Inc. (“Endo”), and others in the United States District Court for the Eastern District of Pennsylvania, alleging that Impax and Endo violated antitrust laws when they entered into a June 2010 settlement agreement that resolved patent litigation in connection with the submission of Impax’s ANDA for generic original Opana® ER. In October 2016, the Court granted Impax’s motion to sever, formally terminating the suit against Impax. In January 2017, the FTC filed a Part 3 Administrative Complaint against Impax with similar allegations regarding the 2010 settlement. Following trial, in May 2018, the Administrative Law Judge ruled in favor of Impax and dismissed the Complaint in its entirety. FTC Complaint Counsel appealed the decision to the full Commission, and in March 2019, the FTC issued an Opinion & Order reversing the Administrative Law Judge’s decision. The Opinion & Order did not provide for any monetary damages but enjoined Impax from entering into future agreements containing certain terms. Impax filed a Petition for Review of the FTC’s Opinion & Order with the United States Court of Appeals for the Fifth Circuit, and on April 13, 2021, the Fifth Circuit issued a decision denying Impax’s Petition for Review, effectively affirming the FTC’s Opinion & Order. On September 10, 2021, Impax filed a petition for writ of certiorari in the U.S. Supreme Court, which was denied in December 2021.

On July 12, 2019, the Company received a CID from the FTC concerning an August 2017 settlement agreement between Impax and Endo, which resolved a subsequent patent infringement and breach of contract dispute between the parties regarding the above-referenced June 2010 settlement agreement related to Opana® ER. The Company cooperated with the FTC regarding the CID. On January 25, 2021, the FTC filed a complaint against Endo, Impax and Amneal in the United States District Court for the District of Columbia, alleging that the 2017 settlement violated antitrust laws. In April 2021, the Company filed a motion to dismiss the FTC’s complaint, which the District Court granted on March 24, 2022. The FTC appealed the District Court’s decision in May 2022, which appeal remains pending. The Company believes it has strong defenses to the FTC’s allegations and intends to vigorously defend the action, however, no assurance can be given as to the timing or outcome of the litigation.

Opana ER® Antitrust Litigation

From June 2014 to April 2015, several complaints styled as class actions on behalf of direct purchasers and indirect purchasers (or end-payors) and several separate individual complaints on behalf of certain direct purchasers (the “opt-out plaintiffs”) of Opana ER® were filed against Endo and Impax.

In December 2014, the United States Judicial Panel on Multidistrict Litigation (the “JPML”) transferred the actions to the United States District Court for the Northern District of Illinois (“N.D. Ill.”) for coordinated pretrial proceedings, as In Re: Opana ER Antitrust Litigation (MDL No. 2580) (“MDL”). In each case, the complaints allege that Endo engaged in an anticompetitive scheme by, among other things, entering into an anticompetitive settlement agreement with Impax to delay generic competition of Opana ER® and in violation of state and federal antitrust laws. Plaintiffs seek, among other things, unspecified monetary damages, and equitable relief, including disgorgement and restitution. On March 25, 2019, plaintiffs filed motions for class certification and served expert reports. Defendants’ oppositions to class certification and expert reports were filed and served on August 29, 2019. On April 15, 2020, defendants filed motions for summary judgment and each side moved to exclude certain opposing experts. On June 4, 2021, the MDL court granted the end-payor plaintiffs’ and direct purchaser plaintiffs’ class certification motions. Defendants appealed certification of the end-payor plaintiffs’ class, and on July 13, 2021, the Seventh Circuit granted defendants’ petition and remanded the case to the MDL to consider specific issues regarding uninjured class members. On August 11, 2021, the MDL court entered an order certifying end-payor plaintiffs’ class with an amended class definition. On June 4, 2021, the MDL also denied defendants’ summary judgment motion except as to certain state law claims and issued an opinion excluding certain experts of both sides.

In June 2022, Impax entered into a preliminary settlement agreement with the class of direct purchasers and the individual complainants that, if all conditions are satisfied, would result in the resolution of substantially all the direct purchasers’ and individual complainants’ underlying claims and lawsuits in the MDL. In addition, subsequently Impax entered into a separate preliminary settlement agreement with the class of indirect purchasers that, if all conditions are satisfied, would result in the resolution of substantially all the indirect purchasers’ underlying claims and lawsuits in the MDL. The preliminary settlement agreements are referred to herein collectively as the “Preliminary Settlement Agreements,” and the direct purchaser plaintiffs, indirect purchaser plaintiffs, and individual complainants are referred to herein collectively as “the Plaintiffs.”

Pursuant to the Preliminary Settlement Agreements, the Company has agreed to pay a total of $265.0 million between 2022 and mid-January 2024 to resolve substantially all the Plaintiffs’ claims. 3% interest is due on $150.0 million payable between December 2022 and mid-January 2024. The Preliminary Settlement Agreements are not an admission of liability or fault by

Impax, the Company or its subsidiaries, and are subject to a number of other conditions including, with respect to the Preliminary Settlement Agreements between Impax and the purported classes of (i) direct purchaser plaintiffs and (ii) indirect purchaser plaintiffs, court approval. Upon satisfaction of the relevant pre-conditions, including but not limited to court approval of the final settlement agreements, substantially all of the claims and lawsuits in the litigation will have been resolved. During the three and six months ended June 30, 2022, the Company recorded a pre-tax charge of $262.8 million associated with the Preliminary Settlement Agreements. Imputed interest of $2.2 million will be recognized to interest expense during the payment period.

During June 2022, the Company paid $100.0 million into a settlement escrow account, which has been recognized as an escrow deposit as of June 30, 2022 (refer to Note 17. Prepaid Expenses and Other Current Assets). During July 2022, the Company paid an additional $15.0 million into a settlement escrow account.

Sergeants Benevolent Association Health & Welfare Fund v. Actavis, PLC, et. al.

In August 2015, a complaint styled as a class action was filed against Forest Laboratories (a subsidiary of Actavis plc) and numerous generic drug manufacturers, including Amneal, in the United States District Court for the Southern District of New York involving patent litigation settlement agreements between Forest Laboratories and the generic drug manufacturers concerning generic versions of Forest’s Namenda IR product. The complaint (as amended on February 12, 2016) asserts federal and state antitrust claims on behalf of indirect purchasers, who allege in relevant part that during the class period they indirectly purchased Namenda® IR or its generic equivalents in various states at higher prices than they would have absent the defendants’ allegedly unlawful anticompetitive conduct. Plaintiff seeks, among other things, unspecified monetary damages, and equitable relief, including disgorgement and restitution. On September 13, 2016, the Court stayed the indirect purchaser plaintiff’s claims pending factual development or resolution of claims brought in a separate, related complaint by direct purchasers (in which the Company is not a defendant). On September 10, 2018, the Court lifted the stay and referred the case to the assigned Magistrate Judge for supervision of supplemental, non-duplicative discovery in advance of mediation to be scheduled in 2019. The parties thereafter participated in supplemental discovery, as well as supplemental motion-to-dismiss briefing. On December 26, 2018, the Court granted in part and denied in part motions to dismiss the indirect purchaser plaintiff’s claims. On January 7, 2019, Amneal, its relevant co-defendants, and the indirect purchaser plaintiff informed the Magistrate Judge that they had agreed to mediation, which occurred in April 2019. In June 2019, the Company reached a settlement with plaintiff, subject to Court approval. On September 10, 2019, the Court entered an order preliminarily approving the settlement and indefinitely staying the case as to the settling defendants (including the Company). The settlement is now subject to final approval from the Court. The Company anticipates a final determination regarding approval to be made after a trial as to the plaintiff’s claims against the non-settling parties. Trial is scheduled to begin in October 2022. The amount of the settlement was not material to the Company's consolidated financial statements.

Attorney General of the State of Connecticut Interrogatories and Subpoena Duces Tecum

On July 14, 2014, Impax received a subpoena and interrogations from the State of Connecticut Attorney General (“Connecticut AG”) concerning its investigation into sales of Impax's generic product, digoxin. According to the Connecticut AG, the investigation concerned whether anyone engaged in a contract, combination, or conspiracy in restraint of trade or commerce which had the effect of (i) fixing, controlling, or maintaining prices or (ii) allocating or dividing customers or territories relating to the sale of digoxin. Impax cooperated in the investigation and produced documents and information in response to the subpoena in 2014 and 2015. However, no assurance can be given as to the timing or outcome of this investigation.

United States Department of Justice Investigations

On November 6, 2014, Impax disclosed that one of its sales representatives received a grand jury subpoena from the Antitrust Division of the United States Department of Justice (the “DOJ”). On March 13, 2015, Impax received a grand jury subpoena from the DOJ requesting the production of information and documents regarding the sales, marketing, and pricing of four generic prescription medications. Impax has cooperated in the investigation and produced documents and information in response to the subpoenas from 2014 to 2016. However, no assurance can be given as to the timing or outcome of the investigation.

On April 30, 2018, Impax received a CID from the Civil Division of the DOJ (the “Civil Division”). The CID requests the production of information and documents regarding the pricing and sale of Impax’s pharmaceuticals and interactions with other generic pharmaceutical manufacturers regarding whether generic pharmaceutical manufacturers engaged in market allocation and price-fixing agreements, paid illegal remuneration, and caused false claims to be submitted to the Federal government. Impax has cooperated with the Civil Division’s investigation. However, no assurance can be given as to the timing or outcome of the investigation.

In Re Generic Pharmaceuticals Pricing Antitrust Litigation

Since March 2016, multiple putative antitrust class action complaints have been filed on behalf of direct purchasers, indirect purchasers (or end-payors), and indirect resellers, as well as individual complaints on behalf of certain direct and indirect purchasers, and municipalities (the “opt-out plaintiffs”) against manufacturers of generic drugs, including Impax and the Company. The complaints allege a conspiracy to fix, maintain, stabilize, and/or raise prices, rig bids, and allocate markets or customers for various generic drugs in violation of federal and state antitrust and consumer protection laws. Plaintiffs seek unspecified monetary damages and equitable relief, including disgorgement and restitution. The lawsuits have been consolidated in an MDL in the United States District Court for the Eastern District of Pennsylvania (In re Generic Pharmaceuticals Pricing Antitrust Litigation, No. 2724, (E.D. Pa.)).

On May 10, 2019, Attorneys General of 43 States and the Commonwealth of Puerto Rico filed a complaint in the United States District Court for the District of Connecticut against various manufacturers and individuals, including the Company, alleging a conspiracy to fix, maintain, stabilize, and/or raise prices, rig bids, and allocate markets or customers for multiple generic drugs. On November 1, 2019, the State Attorneys General filed an Amended Complaint on behalf of nine additional states and territories. On June 10, 2020, Attorneys General of 46 States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Territory of Guam, the U.S. Virgin Islands, and the District of Columbia filed a new complaint against various manufacturers and individuals, including the Company, alleging a conspiracy to fix prices, rig bids, and allocate markets or customers for additional generic drugs. Plaintiff States seek unspecified monetary damages and penalties and equitable relief, including disgorgement and restitution. On September 9, 2021, the State Attorneys General filed an Amended Complaint on behalf of California in addition to the original Plaintiff States. On March 30, 2022, the State of Alabama voluntarily dismissed all of its claims in the May 10, 2019 and June 10, 2020 actions against all defendants, including the Company, without prejudice. These lawsuits have been incorporated into MDL No. 2724. Fact and document discovery in MDL No. 2724 are proceeding. In May 2021, the court issued a revised order designating certain plaintiffs’ complaints regarding two generic drug products to proceed as bellwether cases, along with the Plaintiff States’ June 10, 2020, complaint involving the Company. No final scheduling order has yet been issued for this matter.

On June 3, 2020, the Company and Impax were also named in a putative class action complaint filed in the Federal Court of Canada in Toronto, Ontario against numerous generic pharmaceutical manufacturers, on behalf of a putative class of individuals who purchased generic drugs in the private sector from 2012 to the present (Kathryn Eaton v. Teva Canada Limited, et. al., No. T-607-20). The complaint alleges price fixing, among other claims, and has not progressed to date.

Prescription Opioid Litigation

The Company and certain of its affiliates have been named as defendants in various matters filed in state and federal courts relating to the sale of prescription opioid pain relievers. Plaintiffs in these actions include state Attorneys General, county and municipal governments, hospitals, Indian tribes, pension funds, third-party payors, and individuals. Plaintiffs seek unspecified monetary damages and other forms of relief based on various causes of action, including negligence, public nuisance, unjust enrichment, and civil conspiracy, as well as alleged violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), state and federal controlled substances laws and other statutes. All cases involving the Company also name other manufacturers, distributors and retail pharmacies as defendants, and there are numerous other cases involving allegations relating to prescription opioid pain relievers against other manufacturers, distributors, and retail pharmacies in which the Company and its affiliates are not named.

Nearly all cases pending in federal district courts have been consolidated for pre-trial proceedings in an MDL in the United States District Court for the Northern District of Ohio (In re: National Prescription Opiate Litigation, Case No. 17-mdl-2804). There are approximately 915 cases in the MDL in which the Company or its affiliates have been named as defendants. The Company also is named in approximately 119 state court cases pending in eleven states. The Company has filed motions to dismiss in many of these cases. No firm trial dates have been set except in Alabama (July 24, 2023) and in West Virginia (April 3, 2023). The Company will not be involved in the September 2022 trial in New Mexico previously reported as a result of the tentative settlement the Company reached with the New Mexico Attorney General in May 2022 to resolve the New Mexico Attorney General’s claims against the Company. The Company anticipates a final determination regarding approval to be made following a trial as to the plaintiff’s claims against the non-settling defendants.

Securities Class Actions

On April 17, 2017, New York Hotel Trades Council & Hotel Association of New York City, Inc. Pension Fund filed an amended putative class action complaint in the United States District Court for the Northern District of California against Impax and four former Impax officers alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 (Fleming v. Impax Laboratories Inc., et al., No. 4:16-cv-6557-HSG). Plaintiff alleges that Impax (1) concealed collusion with competitors to fix the price of the generic drug digoxin; (2) concealed anticipated erosion in the price of generic drug diclofenac; and (3) overstated the value of the generic drug budesonide. In June 2021, Plaintiffs (New York Hotel Trades Council & Hotel Association of New York City, Inc. Pension Fund, and Sheet Metal Workers’ Pension Fund of Southern California, Arizona and Nevada, who had filed various motions to intervene as a plaintiff in the case) and defendants reached a tentative agreement to settle all claims in the case for $33.0 million, subject to certain terms and conditions and subject to court approval. The proposed settlement is covered in full by insurance (refer to Note 17. Prepaid Expenses and Other Current Assets for amounts deposited into a settlement escrow account). The district court entered an order granting preliminary approval of the settlement on November 22, 2021, and held a fairness hearing on March 31, 2022. On July 15, 2022, the district court entered an order granting final approval of the settlement. On July 21, 2022, a stipulated final judgment was entered, effectively terminating this matter before the district court.

On December 18, 2019, Cambridge Retirement System filed a putative class action complaint in the Superior Court of New Jersey, Somerset County against the Company and certain current or former officers alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 (Cambridge Retirement System v. Amneal Pharmaceuticals, Inc., et al., No. SOM-L-1701-19). Plaintiffs allege that the May 7, 2018, amended registration statement and prospectus issued in connection with the Amneal/Impax business combination was materially false and/or misleading because it failed to disclose that Amneal allegedly engaged in anticompetitive conduct to fix generic drug prices. Plaintiffs filed a motion for class certification on October 30, 2020, and in April 2021 filed a second amended complaint including similar allegations regarding a November 2017 registration statement and prospectus issued in connection with the Amneal/ Impax business combination. The Company’s motion to dismiss and Plaintiff’s motion for class certification are currently pending. In February 2022, the parties reached a tentative agreement to settle the claims, subject to, among other things, the negotiation and court approval of a definitive settlement agreement. On March 28, 2022, the parties executed a settlement agreement for $25.0 million that remains subject to, among other things, final court approval. On April 29, 2022, the court preliminarily approved the settlement. A hearing on final approval of the settlement agreement is set for August 15, 2022. For the three and six months ended June 30, 2022, the Company recorded insurance recoveries of $11.5 million and $15.5 million, respectively, related to this case (refer to Note 17. Prepaid Expenses and Other Current Assets for amounts deposited into a settlement escrow account).

United States Department of Justice / Drug Enforcement Administration Subpoenas

On July 7, 2017, Amneal Pharmaceuticals of New York, LLC received an administrative subpoena issued by the Long Island, NY District Office of the Drug Enforcement Administration (the “DEA”) requesting information related to compliance with certain recordkeeping and reporting requirements. On or about April 12, 2019, and May 28, 2019, the Company received grand jury subpoenas from the U.S. Attorney’s Office for the Eastern District of New York (the “USAO”) relating to similar topics concerning the Company’s suspicious order monitoring program and its compliance with the Controlled Substances Act. The Company is cooperating with the USAO in responding to the subpoenas and has entered civil and criminal amended tolling agreements with the USAO through approximately November 14, 2022. It is not currently possible to determine the exact outcome of these investigations.

On March 14, 2019, Amneal received a subpoena (the “Subpoena”) from the U.S. Attorney’s Office for the Southern District of Florida. The Subpoena requests information and documents generally related to the marketing, sale, and distribution of oxymorphone. The Company has cooperated and produced documents in response to the Subpoena. However, no assurance can be given as to the timing or outcome of the underlying investigation.

On October 7, 2019, Amneal received a subpoena from the New York State Department of Financial Services seeking documents and information related to sales of opioid products in the state of New York. The Company is cooperating with the request and providing responsive information. It is not currently possible to determine the exact outcome of this investigation.

Ranitidine Litigation

The Company and its affiliates have been named as defendants, along with numerous other pharmaceutical manufacturers, wholesale distributors, and retail pharmacy chains, in In re Zantac/Ranitidine NDMA Litigation (MDL No. 2924), pending in the Southern District of Florida. Plaintiffs allege that defendants failed to disclose and/or concealed the alleged inherent presence of N-Nitrosodimethylamine (or “NDMA”) in brand-name Zantac® or generic ranitidine and the alleged associated risk of cancer. Consolidated groups of (a) personal injury plaintiffs, (b) economic loss/medical monitoring class action plaintiffs, and (c) third-party payor plaintiffs have each filed master complaints against brand and generic pharmaceutical manufacturers, distributors, retailers, and repackagers of ranitidine-containing products. The Company or its affiliates have been named in the three master complaints and approximately 316 personal injury short form complaints. On December 31, 2020, the Court dismissed in full the three master complaints against the generic manufacturers, including the Company and its affiliates, with leave to file amended complaints on certain claims relating to manufacturing, storage, and transportation. Plaintiffs filed amended complaints in February 2021, and Defendants filed various motions to dismiss the amended complaints in March 2021. On July 8, 2021, the MDL dismissed all claims against the generic drug manufacturers, including the Company and its affiliates, without leave to file further amended complaints. Plaintiffs have appealed the MDL court’s dismissal to the 11th Circuit Court of Appeals, which has consolidated the appeals of the personal injury cases.

On June 18, 2020, Amneal Pharmaceuticals LLC was named in a lawsuit filed in New Mexico brought by the New Mexico Attorney General alleging claims of public nuisance, negligence, and violations of consumer protection laws against various brand and generic manufacturers and store-brand distributors of Zantac®/Ranitidine. Plaintiff seeks unspecified compensatory and punitive damages, as well as abatement, medical monitoring, restitution, and injunctive relief. The Company filed a motion to dismiss on May 17, 2021, and filed a notice of supplemental authority based on the MDL court’s July 2021 dismissal order. The Court denied the motion on August 17, 2021. The Company filed a motion to dismiss based on lack of personal jurisdiction on January 26, 2022, which remains pending. On November 12, 2020, Amneal Pharmaceuticals LLC was named in a public nuisance and consumer protection lawsuit filed in state court in Baltimore, Maryland, on behalf of the Mayor and City Council of Baltimore. Defendants removed the case to federal court and on April 1, 2021, the case was remanded to state court. On August 23, 2021, the Company filed a motion to dismiss, which was granted.

On October 1, 2021, Amneal Pharmaceuticals LLC, and Amneal Pharmaceuticals of New York, LLC, were named in a lawsuit filed in Pennsylvania state court along with twenty-five other defendants, including brand-name manufacturers, generic manufacturers, and one Pennsylvania-based pharmacy. The Complaint tracks the dismissed master personal injury complaint from the MDL and was removed and subsequently transferred to the MDL on November 9, 2021. The case was remanded to Pennsylvania state court on April 22, 2022. The Company filed preliminary objections on May 18, 2022, which remain pending.

On February 8, 2022, plaintiff Gary Ross filed a lawsuit in Illinois state court naming Amneal Pharmaceuticals LLC and Amneal Pharmaceuticals of New York, LLC, along with twenty other defendants, including brand-name manufacturers, generic manufacturers, and retailers. The generic manufacturers filed a motion to dismiss on March 28, 2022.

On March 1, 2022, plaintiff Barbara Martin filed a lawsuit in Illinois state court naming Amneal Pharmaceuticals LLC, Amneal Pharmaceuticals of New York, LLC, and Amneal Pharmaceuticals, Inc., along with seven other defendants, including brand-name manufacturers, generic manufacturers, and retailers. Plaintiff has attempted to serve only Amneal Pharmaceuticals of New York, LLC. The Company filed a motion to dismiss on May 6, 2022.

Metformin Litigation

Amneal and AvKARE, Inc. were named as defendants, along with numerous other manufacturers, retail pharmacies, and wholesalers, in several putative class action lawsuits pending in the United States District Court for the District of New Jersey (“D.N.J.”), consolidated as In Re Metformin Marketing and Sales Practices Litigation (No. 2:20-cv-02324-MCA-MAH). The lawsuits all allege that defendants made and sold to putative class members generic metformin products that were “adulterated” or “contaminated” with NDMA.

An economic loss complaint filed on behalf of consumers and third-party payors who purchased or paid or made reimbursements for metformin alleges that plaintiffs suffered economic losses in connection with their purchases or reimbursements due to the purported contamination. On May 20, 2021, the Court granted Defendants’ motion to dismiss the economic loss complaint, and Plaintiffs filed an amended complaint on June 21, 2021. Defendants again moved to dismiss, and on March 30, 2022, the Court granted in part and denied in part Defendants’ second motion to dismiss. Plaintiffs filed a second amended complaint on May 6, 2022. Defendants again moved to dismiss on June 3, 2022, and briefing is ongoing. Initial discovery has begun. Additionally, medical monitoring class action complaints were filed on behalf of consumers who

consumed allegedly contaminated metformin allege “cellular damage, genetic harm, and/or are at an increased risk of developing cancer” and seek medical monitoring, including evaluation and treatment. These cases are currently stayed.

On March 29, 2021, a plaintiff filed a complaint in the United States District Court for the Middle District of Alabama asserting claims against manufacturers of Valsartan, Losartan, and Metformin based on the alleged presence of nitrosamines in those products. The only allegations against Amneal concern Metformin. (Davis v. Camber Pharmaceuticals, Inc., et al., C.A. No. 2:21-00254 (M.D. Ala.) (the “Davis Action”)). On May 5, 2021, the JPML transferred the Davis Action into the In re: Valsartan, Losartan, and Irbesartan Products Liability Litigation multi-district litigation for pretrial proceedings.

On October 29, 2021, three plaintiffs filed a complaint in the District Court of Douglas County, Nebraska asserting claims against Amneal based on the alleged presence of nitrosamines in metformin. On January 10, 2022, Amneal removed the case to the United States District Court for the District of Nebraska. (Conrad et al v. Amneal Pharmaceuticals, Inc., No. 22-cv-00011-BCB-SMB (D. Neb.)). Amneal moved to dismiss the complaint on March 3, 2022, and on March 31, 2022, one plaintiff filed an amended complaint. Amneal moved to dismiss the amended complaint on June 1, 2022, and briefing is ongoing.

Xyrem® (Sodium Oxybate) Antitrust Litigation

Amneal has been named as a defendant, along with Jazz Pharmaceuticals, Inc. (“Jazz”) and numerous other manufacturers of generic versions of Jazz’s Xyrem® (sodium oxybate), in several putative class action lawsuits filed in the United States District Court for the Northern District of California and the United States District Court for the Southern District of New York, alleging that the generic manufacturers entered into anticompetitive agreements with Jazz in connection with settling patent litigation related to Xyrem®. Plaintiffs seek unspecified monetary damages and penalties as well as equitable relief, including disgorgement and restitution. On December 16, 2020, the JPML transferred the actions to the United States District Court for the Northern District of California for consolidated pretrial proceedings consolidated as In re Xyrem (Sodium Oxybate) Antitrust Litigation (No. 5:20-md-02966-LHK). Plaintiffs filed a consolidated amended class complaint in March 2021, which Defendants moved to dismiss. On August 13, 2021, the Court granted in part and denied in part Defendants’ motion, dismissing the federal damages claims and several state-law claims, while permitting the remaining claims to proceed. Discovery is currently ongoing.

Value Drug Company v. Takeda Pharmaceuticals U.S.A., Inc.

On August 5, 2021, Value Drug Company filed a purported class action lawsuit in the United States District Court for the Eastern District of Pennsylvania against Takeda Pharmaceuticals U.S.A., Inc. (“Takeda”) and numerous other manufacturers of generic versions of Takeda’s Colcrys® (colchicine), including Amneal Pharmaceuticals LLC, alleging that the generic manufacturers conspired with Takeda to restrict output of generic Colcrys in order to maintain higher prices, in violation of the antitrust laws. The Company, along with the other defendants, moved to dismiss for failure to state a claim, and on December 28, 2021, the Court granted the motion in full, with leave to amend. On January 18, 2022, Plaintiff filed its amended complaint, making substantively the same antitrust allegations, but alleging that the violations were effectuated by either a single overarching conspiracy or a series of bilateral conspiracies. The Company moved to dismiss the amended complaint for failure to state a claim. On March 30, 2022, the Court granted in part and denied in party defendants’ motion, dismissing the newly pled bilateral conspiracy claims but allowing the revised overarching conspiracy claim to proceed against all defendants. Discovery is currently ongoing.

Galeas v. Amneal Pharmaceuticals, Inc.

On July 27, 2021, Cesy Galeas filed a purported class action lawsuit in the U.S. District Court for the Eastern District of New York against Amneal Pharmaceuticals, Inc., alleging that the payment schedule for certain workers violated New York Labor Law. Specifically, the purported class, which presently consists of one named plaintiff contends that the Company paid the employees all owed wages, but did so bi-weekly, instead of weekly. In March 2022, the parties reached an agreement to settle the claims for $1.2 million, subject to, among other things, court approval of the contemplated settlement agreement. The parties filed a motion to approve the settlement agreement on July 13, 2022. A hearing on final approval of the settlement agreement is expected to be scheduled within the next 6-8 weeks. The Company recorded a $1.2 million charge associated with this matter for the six months ended June 30, 2022.

Russell Thiele, et al. v. Kashiv Biosciences, LLC, et.al.

On March 22, 2022, two purported Amneal stockholders filed a stockholder derivative lawsuit in the Court of Chancery of the State of Delaware against Kashiv and certain members of the Company’s Board of Directors. The Company is named as a nominal defendant. The suit alleges that the Company’s January 2021 acquisition of a 98% interest in KSP, then a wholly owned subsidiary of Kashiv, was unfair to the Company, that the defendant Directors breached fiduciary duties of loyalty and good faith in connection with the transaction, and that the transaction unjustly enriched Kashiv and certain of the defendants

who had a financial interest in Kashiv. The suit, which is allegedly brought on the Company’s behalf, seeks among other remedies rescission of the transaction and unspecified monetary damages. Defendants moved to dismiss the complaint for failure to state a claim and failure to plead demand futility on June 3, 2022, and Plaintiffs filed an amended complaint on July 29, 2022.

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Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments: Generics, Specialty, and AvKARE.

Generics

Generics develops, manufactures and commercializes complex oral solids, injectables, ophthalmics, liquids, topicals, softgels, inhalation products and transdermals across a broad range of therapeutic categories. Generics’ retail and institutional portfolio contains many difficult-to-manufacture products or products that have a high barrier-to-entry, such as oncologics, anti-infectives and supportive care products for healthcare providers.

Specialty

Specialty delivers proprietary medicines to the U.S. market. The Company offers a growing portfolio in core therapeutic categories including central nervous system disorders, endocrinology, parasitic infections and other therapeutic areas. The Company's specialty products are marketed through skilled specialty sales and marketing teams, who call on neurologists, movement disorder specialists, endocrinologists and primary care physicians in key markets throughout the U.S. Specialty also has a number of product candidates that are in varying stages of development.

AvKARE

AvKARE provides pharmaceuticals, medical and surgical products and services primarily to governmental agencies, primarily focused on serving the Department of Defense and the Department of Veterans Affairs.  AvKARE is also a wholesale distributor of bottle and unit dose pharmaceuticals under the registered names of AvKARE and AvPAK, as well as medical and surgical products.  AvKARE is also a packager and wholesale distributor of pharmaceuticals and vitamins to its retail and institutional customers who are located throughout the United States focused primarily on offering 340b-qualified entities products to provide consistency in care and pricing.

Chief Operating Decision Markers

The Company’s chief operating decision makers evaluate the financial performance of the Company’s segments based upon segment operating income (loss). Items below operating income (loss) are not reported by segment, since they are excluded from the measure of segment profitability reviewed by the Company’s chief operating decision makers. Additionally, general and administrative expenses, certain selling expenses, certain litigation settlements, and non-operating income and expenses are included in “Corporate and Other.” The Company does not report balance sheet information by segment since it is not reviewed by the Company’s chief operating decision makers.

The tables below present segment information reconciled to total Company financial results, with segment operating income (loss) including gross profit less direct selling, general and administrative expenses, research and development expenses, and other operating expenses to the extent specifically identified by segment (in thousands):

Three Months Ended June 30, 2022	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	364,895	$	97,001	$	97,459	$	—	$	559,355
Cost of goods sold	223,423		42,791		87,510		—		353,724
Cost of goods sold impairment charges	5,112		—		—		—		5,112
Gross profit	136,360		54,210		9,949		—		200,519
Selling, general and administrative	26,558		23,171		12,735		36,342		98,806
Research and development	44,174		6,574		—		—		50,748
Intellectual property legal development expenses	778		43		—		—		821
Acquisition, transaction-related and integration expenses	8		32		—		201		241
Charges related to legal matters, net	483		—		—		251,394		251,877
Insurance recoveries for property losses and associated expenses	(1,911)		—		—		—		(1,911)
Change in fair value of contingent consideration	—		(270)		—		—		(270)
Other operating income	(1,175)		—		—		—		(1,175)
Operating income (loss)	$	67,445	$	24,660	$	(2,786)	$	(287,937)	$	(198,618)

Six Months Ended June 30, 2022	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	682,642	$	182,087	$	192,259	$	—	$	1,056,988
Cost of goods sold	422,453		86,644		167,689		—		676,786
Cost of goods sold impairment charges	5,112		—		—		—		5,112
Gross profit	255,077		95,443		24,570		—		375,090
Selling, general and administrative	54,151		47,571		26,145		69,604		197,471
Research and development	87,395		16,151		—		—		103,546
Intellectual property legal development expenses	1,550		35		—		—		1,585
Acquisition, transaction-related and integration expenses	8		32		—		635		675
Charges related to legal matters, net	2,157		—		—		247,394		249,551
Insurance recoveries for property losses and associated expenses	(1,911)		—		—		—		(1,911)
Restructuring and other charges	206		—		—		525		731
Change in fair value of contingent consideration	—		(70)		—		—		(70)
Other operating income	(1,175)		—		—		—		(1,175)
Operating income (loss)	$	112,696	$	31,724	$	(1,575)	$	(318,158)	$	(175,313)

Three Months Ended June 30, 2021	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	360,437	$	88,635	$	86,003	$	—	$	535,075
Cost of goods sold	204,154		48,683		69,740		—		322,577
Gross profit	156,283		39,952		16,263		—		212,498
Selling, general and administrative	11,797		20,656		13,599		40,105		86,157
Research and development	43,431		9,433		—		—		52,864
In-process research and development charges	710		—		—		—		710
Intellectual property legal development expenses	1,340		25		—		—		1,365
Acquisition, transaction-related and integration expenses	—		16		491		3,776		4,283
Operating income (loss)	$	99,005	$	9,822	$	2,173	$	(43,881)	$	67,119

Six Months Ended June 30, 2021	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	672,945	$	184,566	$	170,669	$	—	$	1,028,180
Cost of goods sold	389,452		96,881		137,787		—		624,120
Gross profit	283,493		87,685		32,882		—		404,060
Selling, general and administrative	30,559		40,537		27,303		78,484		176,883
Research and development	79,548		21,498		—		—		101,046
In-process research and development charges	710		—		—		—		710
Intellectual property legal development expenses	4,922		25		—		—		4,947
Acquisition, transaction-related and integration expenses	—		16		1,422		5,647		7,085
Restructuring and other charges	80		—		—		283		363
Operating income (loss)	$	167,674	$	25,609	$	4,157	$	(84,414)	$	113,026

(1)Operating results for the sale of Amneal products by AvKARE are included in Generics.

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Related Party Transactions

6 Months Ended

Jun. 30, 2022

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company has various business agreements with certain parties in which there is some common ownership. However, the Company does not directly own or manage of any of such related parties. Except as disclosed below, as of and for the three and six months ended June 30, 2022, there were no material changes to our related party agreements or relationships as described in Note 24. Related Party Transactions and Note 22. Stockholders’ Equity in our 2021 Annual Report on Form 10-K.

Amendment to Kashiv Biosciences LLC License and Commercialization Agreement

In 2017 Kashiv and Amneal entered into an exclusive license and commercialization agreement (the “Kashiv Biosimilar Agreement”) to distribute and sell two biosimilar products, Filgrastim and Pegfilgrastim, in the U.S. Kashiv is responsible for development, regulatory filings, obtaining FDA approval, and manufacturing, and Amneal is responsible for marketing, selling, and pricing activities. The term of the agreement is 10 years from the respective product’s launch date.

The Kashiv Biosimilar Agreement provided for potential future milestone payments to Kashiv of up to $183.0 million, as follows: (i) up to $22.5 million relating to regulatory approval and execution, (ii) up to $43.0 million for successful delivery of commercial launch inventory, (iii) up to $50.0 million depending on the number of competitors at launch for one product, and (iv) between $15.0 million and $67.5 million for the achievement of cumulative net sales for both products.

In July 2022, the Company and Kashiv amended the Kashiv Biosimilar Agreement to, among other things, (i.) eliminate milestones related to the manufacturing and delivery of the Kashiv products, (ii.) revise the net sales milestones to provide for future milestone payments by the Company to Kashiv of up to $37.5 million for the achievement of cumulative combined net sales goals for both products, and (iii.) adjust the supply price of product that Kashiv manufacturers and supplies to the Company, which will lower the cost per unit of both products.

The remaining milestones are subject to reaching certain commercial sales volume objectives. In addition, the agreement provides for Amneal to pay a profit share equal to 50% of net profits, after considering manufacturing and marketing costs.

On May 27, 2022, the FDA approved the Company’s biologic license application, associated with the amended Kashiv Biosimilar Agreement, for Pegfilgrastim-pbbk. In connection with this regulatory approval and associated activity, the Company incurred a milestone payable to Kashiv of $15.0 million during the three and six months ended June 30, 2022. The milestone was capitalized as an intangible asset and will be amortized to cost of sales over an estimated useful life of 8.3 years.

The following table summarizes the Company’s related party transactions (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
Related Party and Nature of Transaction	Caption in Balance Sheet and Statement of Operations	2022		2021		2022		2021
Kashiv Biosciences LLC
Parking space lease (1)	Cost of goods sold	$	25	$	25	$	50	$	50
Development and commercialization agreements - various products (1)	Research and development	—		—		—		32
License and commercialization agreement - Filgrastim and Pegfilgrastim - regulatory approval milestone for Filgrastim(1)	Selling, general and administrative	—		—		5,000		—
Development and commercialization agreement - Ganirelix Acetate and Cetrorelix Acetate (1)	Research and development	1,706		1		1,723		644
Development and commercialization agreements - various products (2)	Research and development	—		259		—		150
Profit sharing - various products (2)	Cost of goods sold	—		—		—		2,680
Commercial product support for EluRyng and other products (2)	Inventory and cost of goods sold	—		—		—		1,239
K127 development and commercialization agreement (2)	Research and development	—		—		—		3,000
Transition services associated with the KSP Acquisition	Selling, general and administrative	—		—		—		300
Development and commercialization - Consulting	Research and development	—		500		—		500
License and commercialization agreement - Filgrastim and Pegfilgrastim - regulatory approval milestone for Pegfilgrastim-pbbk(1)	Intangible asset	15,000		—		15,000		—
Total		$	16,731	$	785	$	21,773	$	8,595
LAX Hotel, LLC (3)
Financing lease	Inventory and cost of goods sold	$	—	$	—	$	—	$	217
Interest component of financing lease	Interest expense	—		—		—		362
Total		$	—	$	—	$	—	$	579
Other Related Parties
Kanan, LLC - operating lease	Inventory and cost of goods sold	$	526	$	525	$	1,052	$	1,051
Sutaria Family Realty, LLC - operating lease	Inventory and cost of goods sold	$	305	$	299	$	601	$	586
PharmaSophia, LLC - research and development services income	Research and development	$	(15)	$	(42)	$	(30)	$	(299)
Fosun International Limited - license and supply agreement	Net revenue	$	—	$	—	$	—	$	—
Apace KY, LLC d/b/a Apace Packaging LLC - packaging agreement	Inventory and cost of goods sold	$	964	$	3,416	$	1,422	$	5,517
Tracy Properties LLC - operating lease	Selling, general and administrative	$	136	$	131	$	271	$	262
AzaTech Pharma LLC - supply agreement	Inventory and cost of goods sold	$	1,431	$	837	$	2,652	$	1,980
AvPROP, LLC - operating lease	Selling, general and administrative	$	50	$	38	$	90	$	77
Tarsadia Investments, LLC - financial consulting services	Selling, general and administrative	$	—	$	—	$	—	$	—
Avtar Investments, LLC consulting services	Selling, general and administrative	$	85	$	92	$	169	$	175
TPG Operations, LLC consulting services	Selling, general and administrative	$	—	$	—	$	19	$	—
Alkermes	Inventory and cost of goods sold	$	77	$	—	$	107	$	—
R&S Solutions - logistics services	Selling, general and administrative	$	20	$	—	$	39	$	—

(1) Agreement between Amneal and Kashiv was not affected by the Acquisition of KSP (refer to Note 3. Acquisitions for additional information).

(2) Agreement between Amneal and Kashiv was acquired with KSP and has become a transaction among Amneal’s consolidated subsidiaries subsequent to the transaction closing on April 2, 2021. The disclosure relates to the historical agreement as a related party transaction through April 2, 2021 (refer to Note 3. Acquisitions for additional information).

(3) During January 2021, LAX Hotel LLC sold its interests in the leased buildings to an unrelated third-party. Therefore, this lease was no longer a related party transaction subsequent to that date.

The following table summarizes the amounts due to or from the Company for related party transactions (in thousands):

	June 30, 2022		December 31, 2021
Kashiv - deferred consideration associated with the KSP Acquisition (1)	$	500	$	30,500
Kashiv - various agreements(2)	21,715		314
Sellers of Puniska - consideration for acquisition (3)	—		14,225
Apace Packaging LLC - packaging agreement	1,058		560
AzaTech Pharma LLC - supply agreement	1,055		1,783
Avtar Investments LLC - consulting services	98		37
Sellers of AvKARE LLC and R&S - accrued interest on Sellers Notes (4)	442		442
R&S Solutions - logistics services	7		—
Alkermes	29		—
Related party payables - short term	$	24,904	$	47,861
PharmaSophia, LLC - research and development agreement	$	1,111	$	1,081
Sellers of AvKARE LLC and R&S - state tax indemnification	204		68
Kashiv - various agreements	23		14
Apace Packaging, LLC - packaging agreement	—		16
Related party receivables - short term	$	1,338	$	1,179
Kashiv - contingent consideration (5)	$	5,830	$	5,900
Sellers of AvKARE LLC and R&S - accrued interest on Sellers Notes (4)	4,824		3,719
Related party payables - long term	$	10,654	$	9,619

(1) As discussed in Note 3. Acquisitions, the purchase price for the KSP Acquisition included a contractually stated amount of deferred consideration of $30.5 million. The deferred consideration consisted of $30.0 million, which the Company paid during January 2022, and $0.5 million, which the Company expects to pay during the third quarter of 2022.

(2) A $5.0 million milestone was payable to Kashiv for regulatory approval of Filgrastim and a $15.0 million milestone was payable to Kashiv for regulatory approval of Pegfilgrastim-pbbk as of June 30, 2022.

(3) As discussed in Note 3. Acquisitions, the purchase price for the Puniska Acquisition included $14.2 million due to the sellers for the satisfaction of a preexisting payable upon approval of the transaction by the government of India. The Company satisfied this liability in March 2022.

(4) Represents accrued interest on the Sellers Notes associated with the Rondo Acquisitions, as defined and discussed in Note 3. Acquisitions and Divestitures and Note 17. Debt in the Company’s 2021 Annual Report on Form 10-K.

(5)     The contingent consideration liability was associated with the KSP Acquisition. Refer to Note 3. Acquisitions for additional information.

Puniska Acquisition - Redeemable Non-Controlling Interests

The Company paid $1.7 million for the remaining 26% equity interest of Puniska (included in redeemable non-controlling interests in the Company’s consolidated balance sheet as of December 31, 2021) upon approval of the Puniska Acquisition by the government of India in March 2022.

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Stockholders’ Equity and Redeemable Non-Controlling Interests

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Stockholders’ Equity and Redeemable Non-Controlling Interests

Stockholders’ Equity and Redeemable Non-Controlling Interests

Non-Controlling Interests

The Company consolidates the financial statements of Amneal and its subsidiaries and records non-controlling interests for the portion of Amneal’s economic interests that is not held by the Company. Non-controlling interests are adjusted for capital transactions that impact the non-publicly held economic interests in Amneal.

Under the terms of Amneal's limited liability company agreement, as amended, Amneal is obligated to make tax distributions to its members. During the three and six months ended June 30, 2022, the Company recorded net tax distributions of $2.9 million and $7.3 million, respectively, as a reduction of non-controlling interests. For the three and six months ended June 30, 2021,

the Company recorded tax distributions of $16.6 million and $25.9 million, respectively, as a reduction of non-controlling interests.

As discussed in Note 3. Acquisitions, the Company acquired a 98% interest in KSP on April 2, 2021. The sellers of KSP, a related party, hold the remaining interest. The Company attributes 2% of the net income or loss of KSP to the non-controlling interests.

Redeemable Non-Controlling Interests

As discussed in Note 1. Nature of Operations, the Company acquired a 65.1% controlling interest in both AvKARE, LLC and R&S in 2020.  The sellers of AvKARE, LLC and R&S hold the remaining 34.9% interest (“Rondo Class B Units”) in the holding company that directly owns the acquired companies (“Rondo”).  Beginning on January 1, 2026, the holders of the Rondo Class B Units have the right (“Put Right”) to require the Company to acquire the Rondo Class B Units for a purchase price that is based on a multiple of Rondo’s earnings before income taxes, depreciation, and amortization (EBITDA) if certain financial targets and other conditions are met.  Additionally, beginning on January 31, 2020, the Company has the right to acquire the Rondo Class B Units based on the same value and conditions as the Put Right.  The Rondo Class B Units are also redeemable by the holders upon a change in control.

Since the redemption of the Rondo Class B Units is outside of the Company's control, the units have been presented outside of stockholders’ equity as redeemable non-controlling interests. Upon closing of the Rondo Acquisitions, the redeemable non-controlling interests were recorded as a component of the fair value of consideration transferred at an estimated fair value of $11.0 million. The fair value of the redeemable non-controlling interests was estimated using the Monte-Carlo simulation approach under the option pricing framework, which considers the redemption rights of both the Company and the holders of the Rondo Class B Units.

The Company attributes 34.9% of the net income or loss associated with Rondo to redeemable non-controlling interests. The Company will also accrete the redeemable non-controlling interests to redemption value upon an event that makes redemption probable. For the three and six months ended June 30, 2022, the Company recorded tax distributions of $0.6 million and $2.6 million as a reduction of redeemable non-controlling interests, respectively. For the three and six months ended June 30, 2021, the Company recorded tax distributions of $1.2 million and $1.7 million as a reduction of redeemable non-controlling interests, respectively.

Redeemable Non-Controlling Interests - Puniska

As discussed in Note 3. Acquisitions, the Company acquired 74% of the equity interests in Puniska on November 2, 2021. Amneal was required pursuant to the purchase agreement to acquire the remaining 26% of Puniska upon approval of the transaction by the government of India. Since approval of the government of India was outside of the Company’s control, upon closing of the Puniska Acquisition, the equity interests of Puniska that the Company did not own were presented outside of stockholders' equity as redeemable non-controlling interests. The Company attributed 26% of the net losses of Puniska to the redeemable non-controlling interests.

Upon approval of the transaction by the government of India in March 2022, the Company paid the $1.7 million redemption value for the remaining 26% of the equity interests of Puniska. For the six months ended June 30, 2022, the Company recorded accretion of $0.9 million to increase the redeemable non-controlling interests to redemption value.

Changes in Accumulated Other Comprehensive (Loss) Income by Component (in thousands):

	Foreign currency translation adjustments		Unrealized (loss) gain on cash flow hedge, net of tax		Accumulated other comprehensive (loss) income
Balance December 31, 2020	$	(14,497)	$	(26,821)	$	(41,318)
Other comprehensive loss before reclassification	(4,255)		20,972		16,717
Reallocation of ownership interests	(93)		(133)		(226)
Balance December 31, 2021	(18,845)		(5,982)		(24,827)
Other comprehensive loss before reclassification	(7,816)		33,623		25,807
Reallocation of ownership interests	(115)		3		(112)
Balance June 30, 2022	$	(26,776)	$	27,644	$	868

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Prepaid Expenses and Other Current Assets

6 Months Ended

Jun. 30, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets are comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Deposits and advances	$	1,694	$	1,174
Prepaid insurance	7,478		7,962
Prepaid regulatory fees	1,265		3,710
Income and other tax receivables	11,535		8,850
Prepaid taxes	15,953		16,085
Escrow deposits for legal settlements(1)	148,500		33,000
Other current receivables	17,748		9,770
Other prepaid assets	20,895		17,309
Chargebacks receivable (2)	7,136		12,358
Total prepaid expenses and other current assets	$	232,204	$	110,218

(1)Escrow deposits for legal settlements includes preliminary settlement escrow deposits by the Company’s insurers of $48.5 million and $33.0 million as of June 30, 2022 and December 31, 2021, respectively, associated with insured securities class action lawsuits. Escrow deposits for legal settlements also includes an escrow deposit of $100.0 million for preliminary settlement agreements related to the Opana ER® antitrust litigation as of June 30, 2022. Refer to Note 13. Commitments and Contingencies for additional details regarding these matters.

(2)When a sale occurs on a contract item, the difference between the cost paid to the manufacturer by the Company and the contract cost that the end customer has with the manufacturer is rebated back to the Company by the manufacturer. The Company establishes a chargeback (rebate) receivable and a reduction to cost of goods sold in the same period as the related sale.

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Other Assets

6 Months Ended

Jun. 30, 2022

Other Assets [Abstract]

Other Assets

Other Assets

Other assets were comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Interest rate swap (1)	$	56,221	$	—
Security deposits	5,402		3,895
Long-term prepaid expenses	7,086		5,896
Deferred revolving credit facility costs	2,453		1,603
Other long term assets	8,674		9,220
Total	$	79,836	$	20,614

(1)Refer to Note 10. Fair Value Measurements and Note 11. Financial Instruments for information about the Company’s interest rate swap.

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Government Grants

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Government Grants

Government Grants

In November 2021, Amneal Pharmaceuticals Private Limited, a subsidiary of the Company in India, was selected as one of 55 companies to participate in the PLI Scheme. The government of India established the PLI Scheme to make India’s domestic manufacturing more globally competitive and to create global champions within the pharmaceutical sector by encouraging investment and product diversification with a focus on manufacturing complex and high value goods.

Under the PLI Scheme, the Company is eligible to receive up to 10 billion Indian rupees, or approximately $126.9 million (based on conversion rates as of June 30, 2022), over a maximum six-year period, starting in 2022. To be eligible to receive the cash incentives, Amneal must achieve (i) minimum cumulative expenditures towards developmental and/or capital investments and (ii) a minimum percentage growth in sales of eligible products.

The Company has concluded the PLI Scheme is government assistance in the form of a grant and, in the absence of specific accounting guidance under U.S. GAAP, the Company has analogized to International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance. The Company has evaluated the PLI Scheme to be a grant related to income and will recognize the cash incentives in the consolidated statements of operations on a systematic basis within other operating income. For the three and six months ended June 30, 2022, the Company recognized $1.2 million of other operating income associated with the PLI Scheme. Receivables from the government of India of $0.9 million and $0.3 million, respectively, were recorded within prepaid and other current assets and other long-term assets as of June 30, 2022, respectively, based on the terms of the PLI Scheme.

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Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt

The following is a summary of the Company’s total indebtedness (in thousands):

	June 30, 2022		December 31, 2021
Term Loan due May 2025	$	2,577,376	$	2,590,876
Rondo Term Loan due January 2025	92,000		139,250
Other	—		624
Total debt	2,669,376		2,730,750
Less: debt issuance costs	(17,009)		(20,083)
Total debt, net of debt issuance costs	2,652,367		2,710,667
Less: current portion of long-term debt	(29,920)		(30,614)
Total long-term debt, net	$	2,622,447	$	2,680,053

There have been no material changes in the Company’s long-term debt since December 31, 2021, except as disclosed below. Refer to Note 17. Debt in our 2021 Annual Report on Form 10-K for additional information.

On June 2, 2022, the Company entered into a revolving credit agreement (the “New Credit Agreement”), which amended the existing senior secured asset backed revolving credit facility (the “Revolving Credit Facility”). The New Credit Agreement (i) replaced the Revolving Credit Facility with a $350.0 million senior secured revolving credit facility (the “New Revolving Credit Facility”) that matures on June 2, 2027, (ii) provides for up to $25.0 million of the New Revolving Credit Facility to be available for the purpose of issuing letters of credit; (iii) provides for up to $35.0 million of the New Revolving Credit Facility to be available for the purpose of issuing swingline loans; (iv) allows the the Company to request an incremental increase in the revolving facility commitments by up to $150.0 million; and (v) terminated the revolving credit facility commitments of lenders under the Revolving Credit Facility.

Interest is payable on the New Revolving Credit Facility at a rate equal to the alternate base rate (“ABR”) or the secured overnight financing rate (“SOFR”), plus an applicable margin, in each case, subject to a ABR floor of 1.00% or a SOFR floor of 0.00%, as applicable. The applicable margin for the New Revolving Credit Facility is initially 0.25% per annum for ABR loans and 1.25% per annum for SOFR loans. The applicable margin on borrowings under the New Revolving Credit Facility thereafter will adjust ranging from 0.25% to 0.50% per annum for ABR loans and from 1.25% to 1.50% per annum for SOFR loans determined by the average historical excess availability. The proceeds of any loans made under the New Revolving Credit Facility can be used for capital expenditures, acquisitions, working capital needs and other general purposes, subject to covenants as described below. The Borrower pays a commitment fee based on the average daily unused amount of the New Revolving Credit Facility at a rate of 0.25% per annum.

Subject to the refinancing, there was a decrease in the borrowing capacity of certain lenders between the New Revolving Credit Facility and the Revolving Credit Facility. As a result, the Company recorded $0.3 million charge for the three and six months ended June 30, 2022 in loss on refinancing. Additionally, the Company incurred costs of $1.6 million associated with the Credit Agreement, which was capitalized as deferred financing costs with the remaining unamortized costs associated with the New Revolving Credit Facility, and will be amortized over the life of the New Credit Agreement.

The New Credit Agreement contains certain negative covenants that, among other things and subject to certain exceptions, restrict the Company’s and certain subsidiaries’ ability to incur additional debt or guarantees, grant liens, make loans, acquisitions or other investments, dispose of assets, merge, dissolve, liquidate or consolidate, pay dividends or other payments on capital stock, make optional payments or modify certain debt instruments, modify certain organizational documents, enter into arrangements that restrict the ability to pay dividends or grant liens, or enter into or consummate transactions with affiliates. The New Revolving Credit Facility also includes a financial covenant whereby the Company must maintain a minimum fixed-charge coverage ratio if certain borrowing conditions are met. The New Revolving Credit Facility contains customary events of default, subject to certain exceptions. Upon the occurrence of certain events of default, the obligations under the New Revolving Credit Facility may be accelerated and the commitments may be terminated.

As of June 30, 2022, the Company had $85.0 million in borrowings under the New Revolving Credit Facility.

During June 2022, the Company prepaid $42.8 million of outstanding principal of the Rondo Term Loan, and repaid the remaining $0.6 million in principal of other debt obligations.

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Property Losses and Associated Expenses

6 Months Ended

Jun. 30, 2022

Unusual or Infrequent Items, or Both [Abstract]

Property Losses and Associated Expenses

Property Losses and Associated Expenses

On September 1, 2021, Tropical Storm Ida brought extreme rainfall and flash flooding to New Jersey that caused damage to two of the Company’s facilities. Operations at these facilities were closed for the majority of September 2021 in order to assess the damage, make repairs and restore operations.

The Company concluded that all inventory on-hand at the time of the flooding was damaged and unsellable and that a majority of the equipment was damaged beyond repair. In addition, the Company incurred significant costs to repair both facilities. Accordingly, the Company recorded $10.4 million of charges for the year ended December 31, 2021.

The Company has insurance policies for property damage, inventory losses and business interruption. Insurance recoveries are recorded in the periods when it is probable they will be realized. During the three and six months ended June 30, 2022, insurance recoveries of $1.9 million associated with property damage and inventory losses were received and recorded in insurance recoveries for property losses and associated expenses.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States of America, should be read in conjunction with the Company’s annual audited financial statements for the year ended December 31, 2021 included in the Company’s 2021 Annual Report on Form 10-K. Certain information and footnote disclosures normally included in annual financial statements have been omitted from the accompanying unaudited consolidated financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of June 30, 2022, cash flows for the six months ended June 30, 2022 and 2021 and the results of its operations, its comprehensive (loss) income and its changes in stockholders’ equity for the three and six months ended June 30, 2022 and 2021. The consolidated balance sheet data at December 31, 2021 was derived from the Company’s audited annual financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America.

Except for the updates included in this note, the accounting policies of the Company are set forth in Note 2. Summary of Significant Accounting Policies contained in the Company’s 2021 Annual Report on Form 10-K.

Use of Estimates

Use of Estimates

The preparation of financial statements requires the Company's management to make estimates and assumptions that affect the reported financial position at the date of the financial statements and the reported results of operations during the reporting period. Such estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The following are some, but not all, of such estimates: the determination of chargebacks, sales returns, rebates, billbacks, valuation of intangible and other assets acquired in business combinations, allowances for accounts receivable, accrued liabilities, initial and subsequent valuation of contingent consideration recognized in business combinations, stock-based compensation, valuation of inventory balances, the determination of useful lives for product rights and the assessment of expected cash flows used in evaluating goodwill and other long-lived assets for impairment. Actual results could differ from those estimates.

Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Government Assistance (Topic 832): Disclosures by Business Entities About Government Assistance

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for the Company’s annual disclosures as of and for the year ending December 31, 2022, with early adoption permissible. The Company elected to adopt this guidance during the quarter ended June 30, 2022 in connection with the recognition of cash incentive related to the India Production Linked Incentive Scheme for the Pharmaceutical Sector (“PLI Scheme”). Refer to Note 19. Government Grants, for additional information.

Recently Issued Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides elective amendments for entities that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.  These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), to expand and clarify the scope of Topic 848 to include derivative instruments on discounting transactions. The amendments in this ASU are effective in the same timeframe as ASU 2020-04. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

Reclassification

Reclassification

The prior period balance related to liabilities for legal proceedings of $58.0 million, formerly included in accounts payable and accrued expenses as of December 31, 2021, has been reclassified to the balance sheet caption liabilities for legal proceedings to conform to the current period presentation in the consolidated balance sheets.

Performance Obligations

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized when the Company transfers control of its products to the customer, which typically occurs at a point-in-time, either upon shipment or delivery. Substantially all of the Company’s net revenues relate to products which are transferred to the customer at a point-in-time.

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2022

Business Acquisition [Line Items]

Schedule of Asset Acquisition

The preliminary purchase price was calculated as follows (in thousands):

Cash	$	84,714
Contingent consideration (royalties) (1)	8,796
Fair value of consideration transferred	$	93,510

(1)The estimated fair value of contingent consideration on the acquisition date was $8.8 million and was based on significant Level 3 inputs that were not observable in the market. Key assumptions included the discount rate, projected year of payments and expected net product sales. Refer to Note 10. Fair Value Measurements, for additional information on the methodology and determination of this liability.

The following is a summary of the preliminary purchase price allocation for the Saol Acquisition (in thousands):

	Preliminary Fair Values as of February 9, 2022
Inventory	$	2,162
Prepaid expenses and other current assets	98
Goodwill	7,553
Intangible assets	83,815
Total assets acquired	93,628
Accounts payable and accrued expenses	118
Fair value of consideration transferred	$	93,510

Saol Baclofen Franchise Acquisition

Business Acquisition [Line Items]

Schedule of Acquired Intangible Assets

The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):

	Preliminary Fair Value		Weighted-Average Useful Life (in years)
Marketed product rights	$	83,815	11.6

Puniska Healthcare Pvt Ltd

Business Acquisition [Line Items]

Schedule of Purchase Price

The Puniska Acquisition, excluding the land acquired in December 2021, was accounted for under the acquisition method of accounting, with Amneal as the accounting acquirer. The preliminary purchase price was calculated as follows (in thousands):

Cash (1)	$	72,880
Payable to sellers (2)	14,162
Fair value of consideration transferred	$	87,042

(1)     Cash includes the payment made upon execution of the agreement.

(2)     Due to the short-term nature of the payable to the sellers, the principal amount approximates fair value.

Schedule of Purchase Price Allocation

The following is a summary of the preliminary purchase price allocation for the Puniska Acquisition (in thousands):

	Preliminary Fair Values as of November 2, 2021
Cash	$	165
Trade accounts receivable, net	232
Inventories	1,092
Prepaid expenses and other current assets	4,473
Property, plant and equipment	53,423
Goodwill	30,091
Operating lease-right-of-use assets	234
Other assets	1,303
Total assets acquired	91,013
Accounts payable and accrued expenses	1,732
Operating lease liabilities	234
Other long-term liabilities	263
Total liabilities assumed	2,229
Redeemable non-controlling interests	1,742
Fair value of consideration transferred	$	87,042

Kashiv Specialty Pharmaceuticals, LLC

Business Acquisition [Line Items]

Schedule of Acquired Intangible Assets

The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):

	Fair Value		Weighted-Average Useful Life (in years)
Marketed product rights	$	29,400	5.9

Schedule of Purchase Price

The purchase price was calculated as follows (in thousands):

Cash, including working capital payments	$	74,440
Deferred consideration (1)	30,099
Contingent consideration (regulatory milestones) (2)	500
Contingent consideration (royalties) (2)	5,200
Settlement of Amneal trade accounts payable due to KSP (3)	(7,117)
Fair value consideration transferred	$	103,122

(1)The deferred consideration was stated at the fair value estimate of $30.1 million, which is the $30.5 million contractually stated amount less a $0.4 million discount. The deferred consideration consisted of $30.0 million, which the Company paid in January 2022 and $0.5 million, which the Company expects to pay during the three months ending September 30, 2022. As the deferred consideration is non-interest bearing, the Company, using guideline companies and market borrowings with comparable risk profiles, discounted the deferred consideration at 1.7% over the period from April 2, 2021 to the maturity dates, for a fair value of $30.1 million on the date of acquisition. This discount was amortized to interest expense over the life of the deferred consideration utilizing the effective interest rate method.

(2)    Kashiv is eligible to receive up to an additional $8.0 million in contingent payments upon the achievement of certain regulatory milestones and potential royalty payments from high single-digits to mid double-digits, depending on the amount of aggregate annual net sales for certain future pharmaceutical products. The estimated fair value of contingent consideration on the acquisition date was $5.7 million and was based on significant Level 3 inputs that were not observable in the market. Key assumptions included the discount rate, probability of achievement of milestones, projected year of payments and expected net product sales. Refer to Note 10. Fair Value Measurements, for additional information on the methodology and determination of this liability.

(3)    Represented trade accounts payable due to KSP that were effectively settled upon closing of the KSP Acquisition.

Schedule of Purchase Price Allocation

The following is a summary of the purchase price allocation for the KSP Acquisition (in thousands):

	Final Fair Values as of April 2, 2021
Cash	$	112
Restricted cash	500
Prepaid expenses and other current assets	381
Property, plant and equipment	5,375
Goodwill	43,530
Intangible assets	56,400
Operating lease right-of-use assets	9,367
Total assets acquired	115,665
Accounts payable and accrued expenses	1,239
Operating lease liability	9,177
Related party payable	127
Total liabilities assumed	10,543
Non-controlling interests	2,000
Fair value of consideration transferred	$	103,122

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Revenue by Major Customers by Reporting Segments

The following table summarizes revenues from each of our customers which individually accounted for 10% or more of our total net revenue:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Customer A	19	%	26	%	19	%	23	%
Customer B	17	%	20	%	17	%	20	%
Customer C	21	%	21	%	22	%	23	%
Customer D	11	%	11	%	11	%	11	%

Schedule of Disaggregated Revenue

The Company's significant therapeutic classes for its Generics and Specialty segments and sales channels for its AvKARE segment, as determined based on net revenue for the three and six months ended June 30, 2022 and 2021 are set forth below (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021
Generics
	Anti-Infective	$	5,566	$	9,677	$	11,811	$	15,590
	Hormonal/ Allergy	118,309		111,654		214,677		218,357
	Antiviral (1)	1,296		(261)		11,867		(8,202)
	Central Nervous System	108,787		106,628		189,912		202,919
	Cardiovascular System	32,043		36,134		55,496		71,445
	Gastroenterology	17,531		19,703		34,151		39,161
	Oncology	18,424		33,450		35,632		52,480
	Metabolic Disease/Endocrine	9,988		6,881		21,221		13,438
	Respiratory	12,118		10,463		17,783		18,641
	Dermatology	17,937		14,818		31,414		27,696
	Other therapeutic classes	22,329		11,143		57,689		20,874
	International and other	567		147		989		546
	Total Generics net revenue	364,895		360,437		682,642		672,945
Specialty
	Hormonal/ Allergy	24,320		16,012		43,739		32,808
	Central Nervous System	65,356		65,130		123,524		132,841
	Gastroenterology	484		—		554		—
	Other therapeutic classes	6,841		7,493		14,270		18,917
	Total Specialty net revenue	97,001		88,635		182,087		184,566
AvKARE
	Distribution	64,240		48,316		124,503		93,815
	Government Label	22,280		29,172		46,739		60,244
	Institutional	6,060		5,780		12,375		10,959
	Other	4,879		2,735		8,642		5,651
	Total AvKARE net revenue	97,459		86,003		192,259		170,669
	Total net revenue	$	559,355	$	535,075	$	1,056,988	$	1,028,180

(1) Antiviral net revenue for the three and six months ended June 30, 2021 reflected lower demand and increased returns activity for Oseltamivir (generic Tamiflu®) above historical levels due to decreased influenza activity during the COVID-19 pandemic.

Schedule of Major Categories of Sales-Related Deductions

A rollforward of the major categories of sales-related deductions for the six months ended June 30, 2022 is as follows (in thousands):

	Contract Charge - Backs and Sales Volume Allowances		Cash Discount Allowances		Accrued Returns Allowance		Accrued Medicaid and Commercial Rebates
Balance at December 31, 2021	$	503,902	$	23,642	$	161,978	$	85,737
Provision related to sales recorded in the period	1,567,090		52,895		47,486		61,913
Credits/payments issued during the period	(1,675,244)		(53,255)		(51,238)		(54,879)
Balance at June 30, 2022	$	395,748	$	23,282	$	158,226	$	92,771

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(Loss) Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) Per Share, Basic and Diluted

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted (loss) earnings per share of class A common stock (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	$	(120,808)	$	14,532	$	(122,964)	$	21,238
Denominator:
Weighted-average shares outstanding - basic	150,993		148,996		150,445		148,507
Effect of dilutive securities:
Stock options	—		837		—		815
Restricted stock units	—		2,153		—		2,284
Weighted-average shares outstanding - diluted	150,993		151,986		150,445		151,606
Net (loss) earnings per share attributable to Amneal Pharmaceuticals, Inc.’s class A common stockholders:
Basic	$	(0.80)	$	0.10	$	(0.82)	$	0.14
Diluted	$	(0.80)	$	0.10	$	(0.82)	$	0.14

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table presents potentially dilutive securities excluded from the computations of diluted (loss) earnings per share of class A common stock (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options	2,919	(1)	347	(3)	2,919	(1)	347	(3)
Restricted stock units	10,989	(1)	—		10,989	(1)	—
Performance stock units	7,427	(1)	5,169	(4)	7,427	(1)	5,169	(4)
Shares of class B common stock	152,117	(2)	152,117	(2)	152,117	(2)	152,117	(2)

(1)Excluded from the computation of diluted earnings per share of class A common stock because the effect of their inclusion would have been anti-dilutive since there was a net loss attributable to the Company for the three and six months ended June 30, 2022.

(2)Shares of class B common stock are considered potentially dilutive shares of class A common stock. Shares of class B common stock have been excluded from the computations of diluted (loss) earnings per share because the effect of their inclusion would have been anti-dilutive under the if-converted method.

(3)Excluded from the computation of diluted earnings per share of class A common stock because the exercise price of the stock options exceeded the average market price of the class A common stock during the period (out-of-the-money).

(4)Excluded from the computation of diluted earnings per share of class A common stock because the performance vesting conditions were not met for each of the three and six months ended June 30, 2021.

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Trade Accounts Receivable, Net (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Schedule of Trade Accounts Receivable, Net

Trade accounts receivable, net was comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Gross accounts receivable	$	1,109,812	$	1,191,792
Allowance for credit losses	(1,933)		(1,665)
Contract charge-backs and sales volume allowances	(395,748)		(503,902)
Cash discount allowances	(23,282)		(23,642)
Subtotal	(420,963)		(529,209)
Trade accounts receivable, net	$	688,849	$	662,583

Schedules of Percent of Gross Trade Receivables

Concentration of Receivables

Trade accounts receivable from customers representing 10% or more of the Company’s total trade accounts receivable were as follows:

	June 30, 2022		December 31, 2021
Customer A	34	%	37	%
Customer B	22	%	24	%
Customer C	28	%	25	%

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Inventories (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Components of Inventories

Inventories were comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Raw materials	$	220,593	$	214,508
Work in process	71,784		47,802
Finished goods	240,651		227,079
Total inventories	$	533,028	$	489,389

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 (in thousands):

			Fair Value Measurement Based on
June 30, 2022	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Interest rate swap asset (1)	$	56,221	$	—	$	56,221	$	—
Liabilities
Deferred compensation plan liabilities (2)	$	10,648	$	—	$	10,648	$	—
Contingent consideration liabilities (3)	$	14,626	$	—	$	—	$	14,626
December 31, 2021
Liabilities
Interest rate swap liability (1)	$	11,473	$	—	$	11,473	$	—
Deferred compensation plan liabilities (2)	$	13,883	$	—	$	13,883	$	—
Contingent consideration liability (3)	$	5,900	$	—	$	—	$	5,900

(1)The fair value measurement of the Company’s interest rate swap classified within Level 2 of the fair value hierarchy is a model-derived valuation as of a given date in which all significant inputs are observable in active markets including certain financial information and certain assumptions regarding past, present, and future market conditions. Refer to Note 11. Financial Instruments for information on the Company's interest rate swap.

(2)These liabilities are recorded at the value of the amount owed to the plan participants, with changes in value recognized as compensation expense. The calculation of the deferred compensation plan obligation is derived from observable market data by reference to hypothetical investments selected by the participants.

(3)The fair value measurement of contingent consideration liabilities has been classified as Level 3 recurring liabilities as the valuations require judgment and estimation of factors that are not currently observable in the market. If different assumptions were used for various inputs, the estimated fair values could be higher or lower than what the Company determined. As of June 30, 2022, contingent consideration liabilities of $5.8 million associated with the KSP Acquisition and $8.8 million associated with the Saol Acquisition were recorded within related party payables - long term and other long-term liabilities, respectively. As of December 31, 2021, a contingent consideration liability of $5.9 million associated with the KSP Acquisition was recorded within related party payables - long term. Refer to Note 3. Acquisitions for additional information related to contingent consideration associated with the KSP Acquisition and the Saol Acquisition.

Reconciliation of Contingent Consideration Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The following table provides a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

	Six Months Ended June 30, 2022		Year Ended December 31, 2021
Balance, beginning of period	$	5,900	$	—
Addition due to the Saol Acquisition	8,796		—
Addition due to the KSP Acquisition	—		5,700
Change in fair value during the period	(70)		200
Balance, end of period	$	14,626	$	5,900

Significant Inputs Used in Fair Value Measurements

The following table summarizes the significant unobservable inputs used in the fair value measurement of our contingent consideration liabilities as of June 30, 2022:

Contingent Consideration Liability	Fair Value as of June 30, 2022 (in thousands)	Unobservable input	Range			Weighted Average(1)
Regulatory Milestones (KSP Acquisition)	$430	Discount rate	7.9%	-	9.0%	8.0%
		Probability of payment	1.8%	-	20.0%	17.0%
		Projected year of payment	2023	-	2027	2023
Royalties (KSP Acquisition)	$5,400	Discount rate	12.5%	-	12.5%	12.5%
		Probability of payment	1.8%	-	20.0%	18.0%
		Projected year of payment	2023	-	2032	2029
Royalties (Saol Acquisition)	$8,796	Discount rate	16.8%	-	16.8%	16.8%
		Projected year of payment	2023	-	2037	2027

(1) Unobservable inputs were weighted by the relative fair value of each product candidate acquired.

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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Values of Derivative Instruments in Consolidated Balance Sheets

A summary of the fair values of derivative instruments in the consolidated balance sheets was as follows (in thousands):

	June 30, 2022			December 31, 2021
Derivatives Designated as Hedging Instruments	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Variable-to-fixed interest rate swap	Other Assets	$	56,221	Other long-term liabilities	$	11,473

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in goodwill for the six months ended June 30, 2022 and for the year ended December 31, 2021 were as follows (in thousands):

	June 30, 2022		December 31, 2021
Balance, beginning of period	$	593,017	$	522,814
Goodwill acquired during the period	7,553		70,584
Adjustment during the period for Puniska Acquisition	3,075		—
Currency translation	(2,671)		(381)
Balance, end of period	$	600,974	$	593,017

Schedule of Finite-Lived Intangible Assets

Intangible assets at June 30, 2022 and December 31, 2021 were comprised of the following (in thousands):

	June 30, 2022							December 31, 2021
	Weighted-Average Amortization Period (in years)	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Amortizing intangible assets:
Product rights	7.9	$	1,240,871	$	(507,894)	$	732,977	$	1,122,612	$	(436,902)	$	685,710
Other intangible assets	4.5	133,800		(67,978)		65,822		133,800		(58,013)		75,787
Subtotal		$	1,374,671	$	(575,872)	$	798,799	$	1,256,412	$	(494,915)	$	761,497
In-process research and development		405,425		—		405,425		405,425		—		405,425
Total intangible assets		$	1,780,096	$	(575,872)	$	1,204,224	$	1,661,837	$	(494,915)	$	1,166,922

Finite-lived Intangible Assets Amortization Expense

Amortization expense related to intangible assets was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Amortization	$	41,982	$	43,520	$	82,901	$	85,192

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The following table presents future amortization expense for the next five years and thereafter, excluding $405.4 million of IPR&D intangible assets (in thousands):

	Future Amortization
Remainder of 2022	$	88,560
2023	161,146
2024	158,554
2025	120,845
2026	72,132
Thereafter	197,562
Total	$	798,799

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Commitment and Contingencies (Tables)

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Charges and Liabilities Related to Legal Matters

Charges related to legal matters, net were comprised of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Matter	2022		2021		2022		2021
Opana ER® Antitrust Litigation	$	262,837	$	—	$	262,837	$	—
Insurance Recoveries - Securities Class Action - Cambridge Retirement System v. Amneal	(11,500)		—		(15,500)		—
Galeas v. Amneal	—		—		1,200
Other	540		—		1,014		—
Total	$	251,877	$	—	$	249,551	$	—

Liabilities for legal matters were comprised of the following (in thousands):

Matter	June 30, 2022		December 31, 2021
Opana ER® Antitrust Litigation(1)	$	215,000	$	—
Securities Class Action - Fleming v. Impax(1)	33,000		33,000
Securities Class Action - Cambridge Retirement System v. Amneal(1)	25,000		25,000
Galeas vs. Amneal	1,200
Other (2)	1,138		—
Current portion of liabilities for legal matters	$	275,338	$	58,000
Opana ER® Antitrust Litigation	$	50,000	$	—
Imputed interest	(2,082)
Accrued interest	90		—
Long-term portion of liabilities for legal matters (included in other long-term liabilities)	$	48,008	$	—

1) Refer to Note 17. Prepaid Expenses and Other Current Assets for information on settlement escrow deposits associated with these matters. Upon final approval by the court, escrow deposits made by the Company and its insurers will be used to satisfy the associated accrued liabilities.

(2)    Includes $0.2 million of accrued interest associated with the Opana ER® antitrust litigation preliminary settlement.

Schedule of Antitrust Litigation Preliminary Settlement

A schedule of payments associated with the Opana ER® antitrust litigation preliminary settlement is as follows:

Date	Amount Due
June 2022	$	100,000
July 2022	15,000
December 2022	16,056
January 2023	83,944
January 2024	50,000
	$	265,000

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The tables below present segment information reconciled to total Company financial results, with segment operating income (loss) including gross profit less direct selling, general and administrative expenses, research and development expenses, and other operating expenses to the extent specifically identified by segment (in thousands):

Three Months Ended June 30, 2022	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	364,895	$	97,001	$	97,459	$	—	$	559,355
Cost of goods sold	223,423		42,791		87,510		—		353,724
Cost of goods sold impairment charges	5,112		—		—		—		5,112
Gross profit	136,360		54,210		9,949		—		200,519
Selling, general and administrative	26,558		23,171		12,735		36,342		98,806
Research and development	44,174		6,574		—		—		50,748
Intellectual property legal development expenses	778		43		—		—		821
Acquisition, transaction-related and integration expenses	8		32		—		201		241
Charges related to legal matters, net	483		—		—		251,394		251,877
Insurance recoveries for property losses and associated expenses	(1,911)		—		—		—		(1,911)
Change in fair value of contingent consideration	—		(270)		—		—		(270)
Other operating income	(1,175)		—		—		—		(1,175)
Operating income (loss)	$	67,445	$	24,660	$	(2,786)	$	(287,937)	$	(198,618)

Six Months Ended June 30, 2022	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	682,642	$	182,087	$	192,259	$	—	$	1,056,988
Cost of goods sold	422,453		86,644		167,689		—		676,786
Cost of goods sold impairment charges	5,112		—		—		—		5,112
Gross profit	255,077		95,443		24,570		—		375,090
Selling, general and administrative	54,151		47,571		26,145		69,604		197,471
Research and development	87,395		16,151		—		—		103,546
Intellectual property legal development expenses	1,550		35		—		—		1,585
Acquisition, transaction-related and integration expenses	8		32		—		635		675
Charges related to legal matters, net	2,157		—		—		247,394		249,551
Insurance recoveries for property losses and associated expenses	(1,911)		—		—		—		(1,911)
Restructuring and other charges	206		—		—		525		731
Change in fair value of contingent consideration	—		(70)		—		—		(70)
Other operating income	(1,175)		—		—		—		(1,175)
Operating income (loss)	$	112,696	$	31,724	$	(1,575)	$	(318,158)	$	(175,313)

Three Months Ended June 30, 2021	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	360,437	$	88,635	$	86,003	$	—	$	535,075
Cost of goods sold	204,154		48,683		69,740		—		322,577
Gross profit	156,283		39,952		16,263		—		212,498
Selling, general and administrative	11,797		20,656		13,599		40,105		86,157
Research and development	43,431		9,433		—		—		52,864
In-process research and development charges	710		—		—		—		710
Intellectual property legal development expenses	1,340		25		—		—		1,365
Acquisition, transaction-related and integration expenses	—		16		491		3,776		4,283
Operating income (loss)	$	99,005	$	9,822	$	2,173	$	(43,881)	$	67,119

Six Months Ended June 30, 2021	Generics (1)		Specialty		AvKARE (1)		Corporate and Other		Total Company
Net revenue	$	672,945	$	184,566	$	170,669	$	—	$	1,028,180
Cost of goods sold	389,452		96,881		137,787		—		624,120
Gross profit	283,493		87,685		32,882		—		404,060
Selling, general and administrative	30,559		40,537		27,303		78,484		176,883
Research and development	79,548		21,498		—		—		101,046
In-process research and development charges	710		—		—		—		710
Intellectual property legal development expenses	4,922		25		—		—		4,947
Acquisition, transaction-related and integration expenses	—		16		1,422		5,647		7,085
Restructuring and other charges	80		—		—		283		363
Operating income (loss)	$	167,674	$	25,609	$	4,157	$	(84,414)	$	113,026

(1)Operating results for the sale of Amneal products by AvKARE are included in Generics.

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2022

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

The following table summarizes the Company’s related party transactions (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
Related Party and Nature of Transaction	Caption in Balance Sheet and Statement of Operations	2022		2021		2022		2021
Kashiv Biosciences LLC
Parking space lease (1)	Cost of goods sold	$	25	$	25	$	50	$	50
Development and commercialization agreements - various products (1)	Research and development	—		—		—		32
License and commercialization agreement - Filgrastim and Pegfilgrastim - regulatory approval milestone for Filgrastim(1)	Selling, general and administrative	—		—		5,000		—
Development and commercialization agreement - Ganirelix Acetate and Cetrorelix Acetate (1)	Research and development	1,706		1		1,723		644
Development and commercialization agreements - various products (2)	Research and development	—		259		—		150
Profit sharing - various products (2)	Cost of goods sold	—		—		—		2,680
Commercial product support for EluRyng and other products (2)	Inventory and cost of goods sold	—		—		—		1,239
K127 development and commercialization agreement (2)	Research and development	—		—		—		3,000
Transition services associated with the KSP Acquisition	Selling, general and administrative	—		—		—		300
Development and commercialization - Consulting	Research and development	—		500		—		500
License and commercialization agreement - Filgrastim and Pegfilgrastim - regulatory approval milestone for Pegfilgrastim-pbbk(1)	Intangible asset	15,000		—		15,000		—
Total		$	16,731	$	785	$	21,773	$	8,595
LAX Hotel, LLC (3)
Financing lease	Inventory and cost of goods sold	$	—	$	—	$	—	$	217
Interest component of financing lease	Interest expense	—		—		—		362
Total		$	—	$	—	$	—	$	579
Other Related Parties
Kanan, LLC - operating lease	Inventory and cost of goods sold	$	526	$	525	$	1,052	$	1,051
Sutaria Family Realty, LLC - operating lease	Inventory and cost of goods sold	$	305	$	299	$	601	$	586
PharmaSophia, LLC - research and development services income	Research and development	$	(15)	$	(42)	$	(30)	$	(299)
Fosun International Limited - license and supply agreement	Net revenue	$	—	$	—	$	—	$	—
Apace KY, LLC d/b/a Apace Packaging LLC - packaging agreement	Inventory and cost of goods sold	$	964	$	3,416	$	1,422	$	5,517
Tracy Properties LLC - operating lease	Selling, general and administrative	$	136	$	131	$	271	$	262
AzaTech Pharma LLC - supply agreement	Inventory and cost of goods sold	$	1,431	$	837	$	2,652	$	1,980
AvPROP, LLC - operating lease	Selling, general and administrative	$	50	$	38	$	90	$	77
Tarsadia Investments, LLC - financial consulting services	Selling, general and administrative	$	—	$	—	$	—	$	—
Avtar Investments, LLC consulting services	Selling, general and administrative	$	85	$	92	$	169	$	175
TPG Operations, LLC consulting services	Selling, general and administrative	$	—	$	—	$	19	$	—
Alkermes	Inventory and cost of goods sold	$	77	$	—	$	107	$	—
R&S Solutions - logistics services	Selling, general and administrative	$	20	$	—	$	39	$	—

(1) Agreement between Amneal and Kashiv was not affected by the Acquisition of KSP (refer to Note 3. Acquisitions for additional information).

(2) Agreement between Amneal and Kashiv was acquired with KSP and has become a transaction among Amneal’s consolidated subsidiaries subsequent to the transaction closing on April 2, 2021. The disclosure relates to the historical agreement as a related party transaction through April 2, 2021 (refer to Note 3. Acquisitions for additional information).

(3) During January 2021, LAX Hotel LLC sold its interests in the leased buildings to an unrelated third-party. Therefore, this lease was no longer a related party transaction subsequent to that date.

The following table summarizes the amounts due to or from the Company for related party transactions (in thousands):

	June 30, 2022		December 31, 2021
Kashiv - deferred consideration associated with the KSP Acquisition (1)	$	500	$	30,500
Kashiv - various agreements(2)	21,715		314
Sellers of Puniska - consideration for acquisition (3)	—		14,225
Apace Packaging LLC - packaging agreement	1,058		560
AzaTech Pharma LLC - supply agreement	1,055		1,783
Avtar Investments LLC - consulting services	98		37
Sellers of AvKARE LLC and R&S - accrued interest on Sellers Notes (4)	442		442
R&S Solutions - logistics services	7		—
Alkermes	29		—
Related party payables - short term	$	24,904	$	47,861
PharmaSophia, LLC - research and development agreement	$	1,111	$	1,081
Sellers of AvKARE LLC and R&S - state tax indemnification	204		68
Kashiv - various agreements	23		14
Apace Packaging, LLC - packaging agreement	—		16
Related party receivables - short term	$	1,338	$	1,179
Kashiv - contingent consideration (5)	$	5,830	$	5,900
Sellers of AvKARE LLC and R&S - accrued interest on Sellers Notes (4)	4,824		3,719
Related party payables - long term	$	10,654	$	9,619

(1) As discussed in Note 3. Acquisitions, the purchase price for the KSP Acquisition included a contractually stated amount of deferred consideration of $30.5 million. The deferred consideration consisted of $30.0 million, which the Company paid during January 2022, and $0.5 million, which the Company expects to pay during the third quarter of 2022.

(2) A $5.0 million milestone was payable to Kashiv for regulatory approval of Filgrastim and a $15.0 million milestone was payable to Kashiv for regulatory approval of Pegfilgrastim-pbbk as of June 30, 2022.

(3) As discussed in Note 3. Acquisitions, the purchase price for the Puniska Acquisition included $14.2 million due to the sellers for the satisfaction of a preexisting payable upon approval of the transaction by the government of India. The Company satisfied this liability in March 2022.

(4) Represents accrued interest on the Sellers Notes associated with the Rondo Acquisitions, as defined and discussed in Note 3. Acquisitions and Divestitures and Note 17. Debt in the Company’s 2021 Annual Report on Form 10-K.

(5)     The contingent consideration liability was associated with the KSP Acquisition. Refer to Note 3. Acquisitions for additional information.

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Stockholders’ Equity and Redeemable Non-Controlling Interests (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive (Loss) Income by Component

Changes in Accumulated Other Comprehensive (Loss) Income by Component (in thousands):

	Foreign currency translation adjustments		Unrealized (loss) gain on cash flow hedge, net of tax		Accumulated other comprehensive (loss) income
Balance December 31, 2020	$	(14,497)	$	(26,821)	$	(41,318)
Other comprehensive loss before reclassification	(4,255)		20,972		16,717
Reallocation of ownership interests	(93)		(133)		(226)
Balance December 31, 2021	(18,845)		(5,982)		(24,827)
Other comprehensive loss before reclassification	(7,816)		33,623		25,807
Reallocation of ownership interests	(115)		3		(112)
Balance June 30, 2022	$	(26,776)	$	27,644	$	868

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Prepaid Expenses and Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets are comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Deposits and advances	$	1,694	$	1,174
Prepaid insurance	7,478		7,962
Prepaid regulatory fees	1,265		3,710
Income and other tax receivables	11,535		8,850
Prepaid taxes	15,953		16,085
Escrow deposits for legal settlements(1)	148,500		33,000
Other current receivables	17,748		9,770
Other prepaid assets	20,895		17,309
Chargebacks receivable (2)	7,136		12,358
Total prepaid expenses and other current assets	$	232,204	$	110,218

(1)Escrow deposits for legal settlements includes preliminary settlement escrow deposits by the Company’s insurers of $48.5 million and $33.0 million as of June 30, 2022 and December 31, 2021, respectively, associated with insured securities class action lawsuits. Escrow deposits for legal settlements also includes an escrow deposit of $100.0 million for preliminary settlement agreements related to the Opana ER® antitrust litigation as of June 30, 2022. Refer to Note 13. Commitments and Contingencies for additional details regarding these matters.

(2)When a sale occurs on a contract item, the difference between the cost paid to the manufacturer by the Company and the contract cost that the end customer has with the manufacturer is rebated back to the Company by the manufacturer. The Company establishes a chargeback (rebate) receivable and a reduction to cost of goods sold in the same period as the related sale.

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Other Assets (Tables)

6 Months Ended

Jun. 30, 2022

Other Assets [Abstract]

Schedule of Other Assets

Other assets were comprised of the following (in thousands):

	June 30, 2022		December 31, 2021
Interest rate swap (1)	$	56,221	$	—
Security deposits	5,402		3,895
Long-term prepaid expenses	7,086		5,896
Deferred revolving credit facility costs	2,453		1,603
Other long term assets	8,674		9,220
Total	$	79,836	$	20,614

(1)Refer to Note 10. Fair Value Measurements and Note 11. Financial Instruments for information about the Company’s interest rate swap.

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Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Summary of Long-term Debt

The following is a summary of the Company’s total indebtedness (in thousands):

	June 30, 2022		December 31, 2021
Term Loan due May 2025	$	2,577,376	$	2,590,876
Rondo Term Loan due January 2025	92,000		139,250
Other	—		624
Total debt	2,669,376		2,730,750
Less: debt issuance costs	(17,009)		(20,083)
Total debt, net of debt issuance costs	2,652,367		2,710,667
Less: current portion of long-term debt	(29,920)		(30,614)
Total long-term debt, net	$	2,622,447	$	2,680,053

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Nature of Operations - Additional Information (Details)	Jun. 30, 2022	Dec. 31, 2020
Amneal Group
Noncontrolling Interest [Line Items]
Ownership by parent (percent)	49.80%
Amneal Group | Amneal Group
Noncontrolling Interest [Line Items]
Ownership percentage by noncontrolling owners (percent)	50.20%
AvKARE and R&S Acquisitions
Noncontrolling Interest [Line Items]
Voting interest acquired (percent)		65.10%

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Summary of Significant Accounting Policies (Details) $ in Millions	Dec. 31, 2021 USD ($)
Accounting Policies [Abstract]
Current portion of liabilities for legal matters	$ 58.0

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Acquisitions - Additional Information (Details) - USD ($)						1 Months Ended	2 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended		9 Months Ended
	Mar. 01, 2022	Feb. 09, 2022	Dec. 31, 2021	Nov. 02, 2021	Apr. 02, 2021	Dec. 31, 2021	Dec. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Nov. 01, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill			$ 593,017,000			$ 593,017,000	$ 593,017,000	$ 600,974,000		$ 600,974,000	$ 600,974,000		$ 593,017,000		$ 522,814,000
Net revenue								559,355,000	$ 535,075,000		1,056,988,000	$ 1,028,180,000
Operating (loss) income								(198,618,000)	67,119,000		(175,313,000)	113,026,000
Intangible assets acquired									73,800,000			73,800,000
Intangible assets			1,256,412,000			1,256,412,000	1,256,412,000	1,374,671,000		1,374,671,000	1,374,671,000		1,256,412,000
Specialty
Business Acquisition [Line Items]
Goodwill			363,900,000			363,900,000	363,900,000	366,300,000		$ 366,300,000	366,300,000		363,900,000
Net revenue								$ 97,001,000	88,635,000		$ 182,087,000	184,566,000
Marketed product rights
Business Acquisition [Line Items]
Intangible assets acquired					$ 83,815,000
In-process research and development
Business Acquisition [Line Items]
Intangible assets acquired												44,300,000
Puniska Healthcare Pvt Ltd
Business Acquisition [Line Items]
Goodwill														$ 30,091,000
Definitive acquisition agreement amount				$ 93,000,000
Consideration paid in cash on hand	$ 1,700,000		$ 14,162,000	$ 72,880,000
Voting interest acquired (percent)	26.00%			74.00%				26.00%		26.00%	26.00%
Acquired non-controlling interest, non-public subsidiary						$ 4,300,000
Acquisition, transaction costs								$ 0			$ 0
Total consideration, net of cash acquired							$ 87,042,000
Kashiv Specialty Pharmaceuticals, LLC
Business Acquisition [Line Items]
Goodwill					43,530,000
Consideration paid in cash on hand					$ 100,100,000
Voting interest acquired (percent)					98.00%
Acquisition, transaction costs								0	$ 2,000,000		0	$ 3,100,000
Total consideration, net of cash acquired					$ 104,500,000								$ 103,122,000
Working capital costs					4,400,000
Intangible assets					56,400,000
Kashiv Specialty Pharmaceuticals, LLC | Generics
Business Acquisition [Line Items]
Goodwill					40,800,000
Kashiv Specialty Pharmaceuticals, LLC | Specialty
Business Acquisition [Line Items]
Goodwill					2,700,000
Kashiv Specialty Pharmaceuticals, LLC | Marketed product rights
Business Acquisition [Line Items]
Intangible assets acquired					29,400,000
Kashiv Specialty Pharmaceuticals, LLC | In-process research and development
Business Acquisition [Line Items]
Intangible assets					27,000,000
Saol Baclofen Franchise Acquisition | Generics
Business Acquisition [Line Items]
Goodwill					5,200,000
Saol Baclofen Franchise Acquisition | Specialty
Business Acquisition [Line Items]
Goodwill					$ 2,400,000
Saol Baclofen Franchise Acquisition
Business Acquisition [Line Items]
Payment for asset acquisition		$ 84,714,000
Asset acquisition, inventory acquired		$ 1,100,000
Asset acquisition, transaction cost								0			$ 100,000
Net revenue								6,300,000		$ 9,300,000
Operating (loss) income								$ (1,900,000)		$ (2,000,000)

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Acquisitions - Payments to Acquire Business (Details) - USD ($) $ in Thousands						2 Months Ended	9 Months Ended
	Mar. 01, 2022	Feb. 09, 2022	Dec. 31, 2021	Nov. 02, 2021	Apr. 02, 2021	Dec. 31, 2021	Dec. 31, 2021	Sep. 30, 2022	Jun. 30, 2022	Jan. 11, 2022	Dec. 31, 2020
Puniska Healthcare Pvt Ltd
Business Acquisition [Line Items]
Cash	$ 1,700		$ 14,162	$ 72,880
Fair value consideration transferred						$ 87,042
Kashiv Specialty Pharmaceuticals, LLC
Business Acquisition [Line Items]
Cash, including working capital payments							$ 74,440
Cash					$ 100,100
Deferred consideration, gross fair value					30,100		30,099
Contingent consideration (milestones)							500
Contingent consideration (royalties)							5,200
Settlement of Amneal trade accounts payable due to KSP							(7,117)
Fair value consideration transferred					104,500		103,122
Deferred consideration					30,500				$ 30,100	$ 30,000
Deferred consideration discount					$ 400
Deferred consideration, discount rate (percent)					1.70%
Contingent consideration, maximum liability					$ 8,000
Contingent consideration			$ 5,900		$ 5,700	$ 5,900	$ 5,900		$ 14,626		$ 0
Kashiv Specialty Pharmaceuticals, LLC | Forecast
Business Acquisition [Line Items]
Deferred consideration								$ 500
Saol Baclofen Franchise Acquisition
Business Acquisition [Line Items]
Cash		$ 84,714
Contingent consideration (royalties)		8,796
Fair value of consideration transferred		$ 93,510

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Acquisitions - Preliminary Purchase Price Allocation for the Acquisitions (Details) - USD ($) $ in Thousands		6 Months Ended
	Feb. 09, 2022	Jun. 30, 2022	Dec. 31, 2021	Nov. 01, 2021	Apr. 02, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 600,974	$ 593,017			$ 522,814
Puniska Healthcare Pvt Ltd
Business Acquisition [Line Items]
Cash				$ 165
Trade accounts receivable, net				232
Inventories				1,092
Prepaid expenses and other current assets				4,473
Property, plant and equipment				53,423
Goodwill				30,091
Operating lease right-of-use assets				234
Other assets				1,303
Total assets acquired				91,013
Accounts payable and accrued expenses				1,732
Operating lease liability				234
Other long-term liabilities				263
Total liabilities assumed				2,229
Non-controlling interests				1,742
Fair value of consideration transferred				$ 87,042
Kashiv Specialty Pharmaceuticals, LLC
Business Acquisition [Line Items]
Cash					$ 112
Restricted cash					500
Prepaid expenses and other current assets					381
Property, plant and equipment					5,375
Goodwill					43,530
Intangible assets					56,400
Operating lease right-of-use assets					9,367
Total assets acquired					115,665
Accounts payable and accrued expenses					1,239
Operating lease liability					9,177
Related party payable					127
Total liabilities assumed					10,543
Non-controlling interests					2,000
Fair value of consideration transferred					$ 103,122
Saol Baclofen Franchise Acquisition
Asset Acquisition [Line Items]
Inventory	$ 2,162
Prepaid expenses and other current assets	98
Goodwill	7,553
Intangible assets	83,815	$ 83,800
Total assets acquired	93,628
Accounts payable and accrued expenses	118
Fair value of consideration transferred	$ 93,510

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Acquisitions - Acquired Intangible Assets (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Apr. 02, 2021	Jun. 30, 2021	Jun. 30, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Fair Value		$ 73,800	$ 73,800
Marketed product rights
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Fair Value	$ 83,815
Weighted-Average Useful Life (in years)	11 years 7 months 6 days
Marketed product rights | Kashiv Specialty Pharmaceuticals, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Preliminary Fair Value	$ 29,400
Weighted-Average Useful Life (in years)	5 years 10 months 24 days

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Revenue Recognition - Concentration of Revenue (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Customer A
Concentration Risk [Line Items]
Concentration risk (percent)	19.00%	26.00%	19.00%	23.00%
Customer B
Concentration Risk [Line Items]
Concentration risk (percent)	17.00%	20.00%	17.00%	20.00%
Customer C
Concentration Risk [Line Items]
Concentration risk (percent)	21.00%	21.00%	22.00%	23.00%
Customer D
Concentration Risk [Line Items]
Concentration risk (percent)	11.00%	11.00%	11.00%	11.00%

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Revenue Recognition - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Net revenue	$ 559,355	$ 535,075	$ 1,056,988	$ 1,028,180
Generics
Disaggregation of Revenue [Line Items]
Net revenue	364,895	360,437	682,642	672,945
Specialty
Disaggregation of Revenue [Line Items]
Net revenue	97,001	88,635	182,087	184,566
AvKARE
Disaggregation of Revenue [Line Items]
Net revenue	97,459	86,003	192,259	170,669
International and other | Generics
Disaggregation of Revenue [Line Items]
Net revenue	567	147	989	546
Anti-Infective | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	5,566	9,677	11,811	15,590
Hormonal/ Allergy | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	118,309	111,654	214,677	218,357
Hormonal/ Allergy | US | Specialty
Disaggregation of Revenue [Line Items]
Net revenue	24,320	16,012	43,739	32,808
Antiviral | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	1,296	(261)	11,867	(8,202)
Central Nervous System | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	108,787	106,628	189,912	202,919
Central Nervous System | US | Specialty
Disaggregation of Revenue [Line Items]
Net revenue	65,356	65,130	123,524	132,841
Cardiovascular System | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	32,043	36,134	55,496	71,445
Gastroenterology | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	17,531	19,703	34,151	39,161
Gastroenterology | US | Specialty
Disaggregation of Revenue [Line Items]
Net revenue	484	0	554	0
Oncology | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	18,424	33,450	35,632	52,480
Metabolic Disease/Endocrine | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	9,988	6,881	21,221	13,438
Respiratory | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	12,118	10,463	17,783	18,641
Dermatology | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	17,937	14,818	31,414	27,696
Other therapeutic classes | US | Generics
Disaggregation of Revenue [Line Items]
Net revenue	22,329	11,143	57,689	20,874
Other therapeutic classes | US | Specialty
Disaggregation of Revenue [Line Items]
Net revenue	6,841	7,493	14,270	18,917
Distribution | US | AvKARE
Disaggregation of Revenue [Line Items]
Net revenue	64,240	48,316	124,503	93,815
Government Label | US | AvKARE
Disaggregation of Revenue [Line Items]
Net revenue	22,280	29,172	46,739	60,244
Institutional | US | AvKARE
Disaggregation of Revenue [Line Items]
Net revenue	6,060	5,780	12,375	10,959
Other | US | AvKARE
Disaggregation of Revenue [Line Items]
Net revenue	$ 4,879	$ 2,735	$ 8,642	$ 5,651

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Revenue Recognition - Schedule of Major Categories of Sales-Related Deductions (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Contract Charge - Backs and Sales Volume Allowances
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 503,902
Provision related to sales recorded in the period	1,567,090
Credits/payments issued during the period	(1,675,244)
Balance, end of period	395,748
Cash Discount Allowances
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	23,642
Provision related to sales recorded in the period	52,895
Credits/payments issued during the period	(53,255)
Balance, end of period	23,282
Accrued Returns Allowance
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	161,978
Provision related to sales recorded in the period	47,486
Credits/payments issued during the period	(51,238)
Balance, end of period	158,226
Accrued Medicaid and Commercial Rebates
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	85,737
Provision related to sales recorded in the period	61,913
Credits/payments issued during the period	(54,879)
Balance, end of period	$ 92,771

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Alliance and Collaboration - Additional Information (Details) - USD ($)		3 Months Ended		6 Months Ended
	May 07, 2018	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development		$ 50,748,000	$ 52,864,000	$ 103,546,000	$ 101,046,000
Collaborative arrangement maximum milestone payment		26,500,000		26,500,000
Biosimilar Licensing and Supply Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaborative arrangement maximum contingent payments amount	$ 78,000,000
Research and development		0	$ 7,500,000	0	$ 9,500,000
Collaborative arrangement maximum milestone paid		$ 10,000,000		$ 10,000,000
Estimated useful life				7 years

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(Loss) Earnings per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	$ (120,808)	$ 14,532	$ (122,964)	$ 21,238
Denominator:
Weighted-average shares outstanding - basic (in shares)	150,993	148,996	150,445	148,507
Effect of dilutive securities:
Weighted-average shares outstanding - diluted (in shares)	150,993	151,986	150,445	151,606
Net (loss) earnings per share attributable to Amneal Pharmaceuticals, Inc.’s class A common stockholders:
Basic (in dollars per share)	$ (0.80)	$ 0.10	$ (0.82)	$ 0.14
Diluted (in dollars per share)	$ (0.80)	$ 0.10	$ (0.82)	$ 0.14
Stock options
Effect of dilutive securities:
Effect of dilutive securities (in shares)	0	837	0	815
Restricted stock units
Effect of dilutive securities:
Effect of dilutive securities (in shares)	0	2,153	0	2,284

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(Loss) Earnings per Share - Securities Excluded from Diluted Earnings per Share Computation (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from earnings per share (in shares)	152,117	152,117	152,117	152,117
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from earnings per share (in shares)	2,919	347	2,919	347
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from earnings per share (in shares)	10,989	0	10,989	0
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from earnings per share (in shares)	7,427	5,169	7,427	5,169

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Income Taxes - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Aug. 08, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Income Tax Contingency [Line Items]
Percentage of tax receivable agreement paid to other holders of Amneal common units (percent)					85.00%
Income tax expense (benefit)			$ 7,350	$ 2,648	$ 3,889	$ 3,007
Effective tax rate (percent)			(3.20%)	7.60%	(1.60%)	6.00%
Estimated pre tax loss period	3 years
Valuation allowance							$ 416,600
Liabilities under tax receivable agreement			$ 206,300		$ 206,300		$ 206,300
Forecast
Income Tax Contingency [Line Items]
Percentage of tax receivable agreement paid to other holders of Amneal common units (percent)		85.00%

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Trade Accounts Receivable, Net - Schedule of Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Receivables [Abstract]
Gross accounts receivable	$ 1,109,812	$ 1,191,792
Allowance for credit losses	(1,933)	(1,665)
Contract charge-backs and sales volume allowances	(395,748)	(503,902)
Cash discount allowances	(23,282)	(23,642)
Subtotal	(420,963)	(529,209)
Trade accounts receivable, net	$ 688,849	$ 662,583

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Trade Accounts Receivable, Net - Concentration of Receivables (Details) - Customer Concentration Risk - Accounts Receivable	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Customer A
Concentration Risk [Line Items]
Concentration risk (percent)	34.00%	37.00%
Customer B
Concentration Risk [Line Items]
Concentration risk (percent)	22.00%	24.00%
Customer C
Concentration Risk [Line Items]
Concentration risk (percent)	28.00%	25.00%

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Inventories - Components of Inventories, Net of Reserves (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 220,593	$ 214,508
Work in process	71,784	47,802
Finished goods	240,651	227,079
Total inventories	$ 533,028	$ 489,389

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Interest rate swap asset	$ 56,221
Liabilities
Interest rate swap liability		$ 11,473
Deferred compensation plan liabilities	10,648	13,883
Contingent consideration liability	14,626	5,900
Kashiv Specialty Pharmaceuticals, LLC
Liabilities
Contingent consideration liability	5,800	5,900
Saol Baclofen Franchise Acquisition
Liabilities
Contingent consideration liability	8,800
Quoted Prices in Active Markets (Level 1)
Assets
Interest rate swap asset	0
Liabilities
Interest rate swap liability		0
Deferred compensation plan liabilities	0	0
Contingent consideration liability	0	0
Significant Other Observable Inputs (Level 2)
Assets
Interest rate swap asset	56,221
Liabilities
Interest rate swap liability		11,473
Deferred compensation plan liabilities	10,648	13,883
Contingent consideration liability	0	0
Significant Unobservable Inputs (Level 3)
Assets
Interest rate swap asset	0
Liabilities
Interest rate swap liability		0
Deferred compensation plan liabilities	0	0
Contingent consideration liability	$ 14,626	$ 5,900

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Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Apr. 02, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt	$ 2,652,367	$ 2,710,667
Term Loan | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt fair value	2,300,000	2,600,000
Term Loan | Significant Other Observable Inputs (Level 2) | Rondo Partners L L C
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt fair value	91,300	139,000
Sellers Notes | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt	$ 38,600	$ 38,000
Kashiv Specialty Pharmaceuticals, LLC
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration, maximum liability			$ 8,000

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Fair Value Measurements - Reconciliation of Contingent Consideration Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Saol Baclofen Franchise Acquisition
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Addition due to the Saol Acquisition	$ 8,796	$ 0
Kashiv Specialty Pharmaceuticals, LLC
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	5,900	0
Addition due to the Saol Acquisition	0	5,700
Change in fair value during the period	(70)	200
Balance, end of period	$ 14,626	$ 5,900

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Fair Value Measurements - Significant Inputs Used in Fair Value Measurements (Details) $ in Thousands	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value	$ 14,626	$ 5,900
Regulatory Milestones
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value	430
Royalties
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value	5,400
Royalties Saol Acquisition
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value	$ 8,796
Minimum | Discount rate | Regulatory Milestones
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.079
Minimum | Discount rate | Royalties
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.125
Minimum | Discount rate | Royalties Saol Acquisition
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.168
Minimum | Probability of payment | Regulatory Milestones
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.018
Minimum | Probability of payment | Royalties
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.018
Maximum | Discount rate | Regulatory Milestones
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.090
Maximum | Discount rate | Royalties
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.125
Maximum | Discount rate | Royalties Saol Acquisition
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.168
Maximum | Probability of payment | Regulatory Milestones
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.200
Maximum | Probability of payment | Royalties
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.200
Weighted Average | Discount rate | Regulatory Milestones
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.080
Weighted Average | Discount rate | Royalties
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.125
Weighted Average | Discount rate | Royalties Saol Acquisition
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.168
Weighted Average | Probability of payment | Regulatory Milestones
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.170
Weighted Average | Probability of payment | Royalties
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.180

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Financial Instruments - Additional Information (Details) - USD ($)	Jun. 30, 2022	Oct. 31, 2019
Derivative [Line Items]
Net of income taxes, recognized in accumulated other comprehensive income	$ 56,200,000
Accumulated Other Comprehensive (Loss) Income
Derivative [Line Items]
Net of income taxes, recognized in accumulated other comprehensive income	27,600,000
Non- Controlling Interests
Derivative [Line Items]
Net of income taxes, recognized in accumulated other comprehensive income	$ 28,600,000
Interest Rate Lock Agreement
Derivative [Line Items]
Notional amount		$ 1,300,000,000

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Financial Instruments - Summary of Fair Values of Derivative Instruments in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Fair Value		$ 11,473
Variable to Fixed Interest Rate Swap | Designated as Hedging Instrument | Other Assets
Derivative [Line Items]
Fair Value	$ 56,221
Variable to Fixed Interest Rate Swap | Designated as Hedging Instrument | Other long-term liabilities
Derivative [Line Items]
Fair Value		$ 11,473

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Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Balance, beginning of period	$ 593,017	$ 522,814
Goodwill acquired during the period	7,553	70,584
Adjustment during the period for Puniska Acquisition	3,075	0
Currency translation	(2,671)	(381)
Balance, end of period	$ 600,974	$ 593,017

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Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Thousands		3 Months Ended		6 Months Ended
	Feb. 09, 2022 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) product	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Goodwill [Line Items]
Goodwill		$ 600,974		$ 600,974		$ 593,017	$ 522,814
Intangible assets acquired			$ 73,800		$ 73,800
In-process research and development		405,425		405,425		405,425
Product rights
Goodwill [Line Items]
Intangible assets acquired					29,500
In-process research and development
Goodwill [Line Items]
Intangible assets acquired					44,300
Impairment charges		5,100	$ 700	$ 5,100	$ 700
Number of products impaired | product				1
Saol Baclofen Franchise Acquisition
Goodwill [Line Items]
Intangible assets	$ 83,815			$ 83,800
Specialty
Goodwill [Line Items]
Goodwill		366,300		366,300		363,900
Generics
Goodwill [Line Items]
Goodwill		165,200		165,200		159,600
AvKARE
Goodwill [Line Items]
Goodwill		$ 69,500		$ 69,500		$ 69,500

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Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Cost	$ 1,374,671	$ 1,256,412
Accumulated Amortization	(575,872)	(494,915)
Net	798,799	761,497
In-process research and development	405,425	405,425
Intangible assets, cost	1,780,096	1,661,837
Intangible assets, net	1,204,224	1,166,922
In-process research and development
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ 0	0
Product rights
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Amortization Period (in years)	7 years 10 months 24 days
Cost	$ 1,240,871	1,122,612
Accumulated Amortization	(507,894)	(436,902)
Net	$ 732,977	685,710
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Amortization Period (in years)	4 years 6 months
Cost	$ 133,800	133,800
Accumulated Amortization	(67,978)	(58,013)
Net	$ 65,822	$ 75,787

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Goodwill and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 41,982	$ 43,520	$ 82,901	$ 85,192

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Goodwill and Other Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
Remainder of 2022	$ 88,560
2023	161,146
2024	158,554
2025	120,845
2026	72,132
Thereafter	197,562
Net	$ 798,799	$ 761,497

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Commitment and Contingencies - Schedule of Charges Related to Legal Matters (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Loss Contingencies [Line Items]
Charges related to legal matters, net	$ 251,877	$ 0	$ 249,551	$ 0
Opana ER® Antitrust Litigation
Loss Contingencies [Line Items]
Charges related to legal matters, net	262,837	0	262,837	0
Insurance Recoveries - Securities Class Action - Cambridge Retirement System v. Amneal
Loss Contingencies [Line Items]
Charges related to legal matters, net	(11,500)	0	(15,500)	0
Galeas v. Amneal
Loss Contingencies [Line Items]
Charges related to legal matters, net	0	0	1,200
Other
Loss Contingencies [Line Items]
Charges related to legal matters, net	$ 540	$ 0	$ 1,014	$ 0

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Commitment and Contingencies - Schedule of Liabilities For Legal Matters (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Current portion of liabilities for legal matters	$ 275,338	$ 58,000
Imputed interest	(2,082)
Accrued interest	90	0
Long-term portion of liabilities for legal matters (included in other long-term liabilities)	48,008	0
Estimated litigation liability		58,000
Opana ER® Antitrust Litigation
Loss Contingencies [Line Items]
Current portion of liabilities for legal matters	215,000	0
Opana ER® Antitrust Litigation	50,000	0
Estimated litigation liability	200
Fleming v. Impax Laboratories, Inc. et al.
Loss Contingencies [Line Items]
Current portion of liabilities for legal matters	33,000	33,000
Insurance Recoveries - Securities Class Action - Cambridge Retirement System v. Amneal
Loss Contingencies [Line Items]
Current portion of liabilities for legal matters	25,000	25,000
Galeas v. Amneal
Loss Contingencies [Line Items]
Current portion of liabilities for legal matters	1,200
Other
Loss Contingencies [Line Items]
Current portion of liabilities for legal matters	$ 1,138	$ 0

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Commitment and Contingencies - Schedule of Antitrust Litigation Preliminary Settlement (Details) - Opana ER® Antitrust Litigation $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Loss Contingencies [Line Items]
Amount Due	$ 265,000
June 2022
Loss Contingencies [Line Items]
Amount Due	100,000
July 2022
Loss Contingencies [Line Items]
Amount Due	15,000
December 2022
Loss Contingencies [Line Items]
Amount Due	16,056
January 2023
Loss Contingencies [Line Items]
Amount Due	83,944
January 2024
Loss Contingencies [Line Items]
Amount Due	$ 50,000

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Commitments and Contingencies - Additional Information (Details) $ in Thousands									1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 22, 2022 lawsuit	Mar. 01, 2022 defendant	Feb. 08, 2022 defendant	Oct. 29, 2021 defendant	Oct. 01, 2021 pharmacy defendant	Dec. 31, 2020 claim	Mar. 13, 2015 medication	Nov. 06, 2014 representative	May 31, 2021 product	Jun. 30, 2022 USD ($) case state	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) claim case complaint state	Jun. 30, 2021 USD ($)	Jul. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Mar. 28, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jan. 31, 2021	Jun. 10, 2020 state	Nov. 01, 2019 state	May 10, 2019 state	Apr. 17, 2017 officer
Loss Contingencies [Line Items]
Long-term portion of liabilities for legal matters (included in other long-term liabilities)										$ 48,008		$ 48,008					$ 0
Litigation settlement, initial discount, amount										2,200		2,200
Charges related to legal matters, net										262,800		262,800
Litigation Settlement Interest												2,200
Escrow deposit										$ 100,000		$ 100,000
Number of pending claims, including third parties | case										915		915
Number of cases | case										119		119
Number of states with cases | state										11		11
Legal settlements covered by insurance										$ 148,500		$ 148,500					33,000
Insurance recoveries for property losses and associated expenses										1,911	$ 0	1,911	$ 0
Number of lawsuit filed | lawsuit	2
Subsequent Event
Loss Contingencies [Line Items]
Additional escrow deposit														$ 15,000
Kashiv Biosciences LLC
Loss Contingencies [Line Items]
Voting interest acquired (percent)																		98.00%
United States Department of Justice Investigations
Loss Contingencies [Line Items]
Number of sales representatives | representative								1
Number of generic prescription medications | medication							4
Opana ER® Antitrust Litigation
Loss Contingencies [Line Items]
Loss contingency accrual										265,000		265,000
Legal settlements covered by insurance																	$ 100,000
Generic Digoxin and Doxycycline Antitrust Litigation
Loss Contingencies [Line Items]
Number of generic prescription medications | product									2
Number of states, filed civil lawsuit | state																			46		43
Loss contingency civil lawsuit filed number of additional states | state																				9
Fleming v. Impax Laboratories, Inc. et al.
Loss Contingencies [Line Items]
Number of former officers alleging violations | officer																						4
Legal settlements covered by insurance											$ 33,000		$ 33,000
Insurance Recoveries - Securities Class Action - Cambridge Retirement System v. Amneal
Loss Contingencies [Line Items]
Legal settlements covered by insurance																$ 25,000
Insurance recoveries for property losses and associated expenses										$ 11,500		$ 15,500
Ranitidine
Loss Contingencies [Line Items]
Number of claims dismissed | claim						3						3
Number of personal injury short form complaints | complaint												316
Ranitidine Pennsylvania Lawsuit
Loss Contingencies [Line Items]
Number of co-defendants | defendant		7	20		25
Number of pharmacies | pharmacy					1
Number of plaintiffs | defendant				3
Galeas v. Amneal
Loss Contingencies [Line Items]
Loss contingency accrual															$ 1,200
Litigation settlement amount												$ 1,200
December 2022
Loss Contingencies [Line Items]
Interest rate										3.00%		3.00%
January 2023
Loss Contingencies [Line Items]
Interest rate										3.00%		3.00%
January 2024
Loss Contingencies [Line Items]
Interest rate										3.00%		3.00%
Additional interest rate										2.70%		2.70%
Long-term portion of liabilities for legal matters (included in other long-term liabilities)										$ 50,000		$ 50,000
December 2022 and Mid-January 2024
Loss Contingencies [Line Items]
Interest rate										3.00%		3.00%
Loss contingency accrual										$ 150,000		$ 150,000

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Segment Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022 segment
Segment Reporting [Abstract]
Number of reportable segments	3

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Segment Information - Schedules of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Net revenue	$ 559,355	$ 535,075	$ 1,056,988	$ 1,028,180
Cost of goods sold	353,724	322,577	676,786	624,120
Cost of goods sold impairment charges	5,112		5,112
Gross profit	200,519	212,498	375,090	404,060
Selling, general and administrative	98,806	86,157	197,471	176,883
Research and development	50,748	52,864	103,546	101,046
In-process research and development charges	0	710	0	710
Intellectual property legal development expenses	821	1,365	1,585	4,947
Acquisition, transaction-related and integration expenses	241	4,283	675	7,085
Charges related to legal matters, net	251,877	0	249,551	0
Insurance recoveries for property losses and associated expenses	(1,911)	0	(1,911)	0
Restructuring and other charges	0	0	731	363
Change in fair value of contingent consideration	(270)	0	(70)	0
Other operating income	(1,175)	0	(1,175)	0
Operating (loss) income	(198,618)	67,119	(175,313)	113,026
Generics
Segment Reporting Information [Line Items]
Net revenue	364,895	360,437	682,642	672,945
AvKARE
Segment Reporting Information [Line Items]
Net revenue	97,459	86,003	192,259	170,669
Operating Segments | Generics
Segment Reporting Information [Line Items]
Net revenue	364,895	360,437	682,642	672,945
Cost of goods sold	223,423	204,154	422,453	389,452
Cost of goods sold impairment charges	5,112		5,112
Gross profit	136,360	156,283	255,077	283,493
Selling, general and administrative	26,558	11,797	54,151	30,559
Research and development	44,174	43,431	87,395	79,548
In-process research and development charges		710		710
Intellectual property legal development expenses	778	1,340	1,550	4,922
Acquisition, transaction-related and integration expenses	8	0	8	0
Charges related to legal matters, net	483		2,157
Insurance recoveries for property losses and associated expenses	(1,911)		(1,911)
Restructuring and other charges			206	80
Change in fair value of contingent consideration	0		0
Other operating income	(1,175)		(1,175)
Operating (loss) income	67,445	99,005	112,696	167,674
Operating Segments | Specialty
Segment Reporting Information [Line Items]
Net revenue	97,001	88,635	182,087	184,566
Cost of goods sold	42,791	48,683	86,644	96,881
Cost of goods sold impairment charges	0		0
Gross profit	54,210	39,952	95,443	87,685
Selling, general and administrative	23,171	20,656	47,571	40,537
Research and development	6,574	9,433	16,151	21,498
In-process research and development charges		0		0
Intellectual property legal development expenses	43	25	35	25
Acquisition, transaction-related and integration expenses	32	16	32	16
Charges related to legal matters, net	0		0
Insurance recoveries for property losses and associated expenses	0		0
Restructuring and other charges			0	0
Change in fair value of contingent consideration	(270)		(70)
Other operating income	0		0
Operating (loss) income	24,660	9,822	31,724	25,609
Operating Segments | AvKARE
Segment Reporting Information [Line Items]
Net revenue	97,459	86,003	192,259	170,669
Cost of goods sold	87,510	69,740	167,689	137,787
Cost of goods sold impairment charges	0		0
Gross profit	9,949	16,263	24,570	32,882
Selling, general and administrative	12,735	13,599	26,145	27,303
Research and development	0	0	0	0
In-process research and development charges		0		0
Intellectual property legal development expenses	0	0	0	0
Acquisition, transaction-related and integration expenses	0	491	0	1,422
Charges related to legal matters, net	0		0
Insurance recoveries for property losses and associated expenses	0		0
Restructuring and other charges			0	0
Change in fair value of contingent consideration	0		0
Other operating income	0		0
Operating (loss) income	(2,786)	2,173	(1,575)	4,157
Corporate and Other
Segment Reporting Information [Line Items]
Net revenue	0	0	0	0
Cost of goods sold	0	0	0	0
Cost of goods sold impairment charges	0		0
Gross profit	0	0	0	0
Selling, general and administrative	36,342	40,105	69,604	78,484
Research and development	0	0	0	0
In-process research and development charges		0		0
Intellectual property legal development expenses	0	0	0	0
Acquisition, transaction-related and integration expenses	201	3,776	635	5,647
Charges related to legal matters, net	251,394		247,394
Insurance recoveries for property losses and associated expenses	0		0
Restructuring and other charges			525	283
Change in fair value of contingent consideration	0		0
Other operating income	0		0
Operating (loss) income	$ (287,937)	$ (43,881)	$ (318,158)	$ (84,414)

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Related Party Transactions - Related Party Agreements (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			6 Months Ended
	Jan. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Income from related parties			$ 0	$ 0	$ 0	$ 0
Related party payables - short term			24,904		24,904		$ 47,861
Related party receivables - short term			1,338		1,338		1,179
Related party payables - long term			10,654		10,654		9,619
Kashiv Specialty Pharmaceuticals, LLC
Related Party Transaction [Line Items]
Acquisition, purchase price			30,500
Deferred consideration paid	$ 30,000
Kashiv Specialty Pharmaceuticals, LLC | Forecast
Related Party Transaction [Line Items]
Acquisition, purchase price		$ 500
Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			16,731	785	21,773	8,595
Related party payables - short term			21,715		21,715		314
Inventory and Cost of Goods Sold - Kanan, LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			526	525	1,052	1,051
Inventory and Cost of Goods Sold - Sutaria Family Realty, LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			305	299	601	586
Research and Development - PharmaSophia LLC
Related Party Transaction [Line Items]
Income from related parties			(15)	(42)	(30)	(299)
Inventory and Cost of Goods Sold - Apace KY, LLC d/b/a Apace Packaging LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			964	3,416	1,422	5,517
Selling, General and Administrative - Tracy Properties LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			136	131	271	262
Inventory and Cost of Goods Sold - AzaTech Pharma LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			1,431	837	2,652	1,980
Selling, General and Administrative - AvPROP, LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			50	38	90	77
Inventory and Cost of Goods Sold - Alkermes
Related Party Transaction [Line Items]
Amounts of transaction with related party			77	0	107	0
Selling, General and Administrative - R&S Solutions - Logistics Services
Related Party Transaction [Line Items]
Amounts of transaction with related party			20	0	39	0
Regulatory Approval | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Related party payables - long term			5,000		5,000
Filgrastim and PEG-Filgrastim | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Related party payables - long term			15,000		15,000
Related Party | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Related party payables - short term			500		500		30,500
Related party receivables - short term			23		23		14
Related party payables - long term			5,830		5,830		5,900
Related Party | LAX Hotel, LLC
Related Party Transaction [Line Items]
Financing lease			0	0	0	217
Interest component of financing lease			0	0	0	362
Financing lease cost and interest expense			0	0	0	579
Related Party | Avtar Investments LLC - consulting services
Related Party Transaction [Line Items]
Related party payables - short term			98		98		37
Related Party | Cost of Goods Sold - Parking Space Lease | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			25	25	50	50
Related Party | Research and Development - Development and Commercialization Agreements - Various1 | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			0	0	0	32
Related Party | Selling, General and Administrative - Development and Commercialization Agreement | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			0	0	5,000	0
Related Party | Research and Development - Development and Commercialization Agreement - Ganirelix Acetate and Centrorelix Acetate | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			1,706	1	1,723	644
Related Party | Research and Development - Development and Commercialization Agreements - Various2 | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			0	259	0	150
Related Party | Cost of Good Sold - Profit Sharing | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			0	0	0	2,680
Related Party | Inventory and Cost of Goods Sold - Commercial Product Support | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			0	0	0	1,239
Related Party | Research and Development - K127 Development and Commercialization Agreement | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			0	0	0	3,000
Related Party | Selling, General and Administrative - Transition Services | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			0	0	0	300
Related Party | Development and commercialization - Consulting | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			0	500	0	500
Related Party | Other Intangible Assets | Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Amounts of transaction with related party			15,000	0	15,000	0
Related Party | Sales Milestone Expenses | Avtar Investments LLC - consulting services
Related Party Transaction [Line Items]
Amounts of transaction with related party			85	92	169	175
Puniska Healthcare Pvt Ltd
Related Party Transaction [Line Items]
Related party payables - short term			0		0		14,225
Apace Packaging, LLC - packaging agreement
Related Party Transaction [Line Items]
Related party payables - short term			1,058		1,058		560
Related party receivables - short term			0		0		16
AzaTech Pharma LLC - supply agreement
Related Party Transaction [Line Items]
Related party payables - short term			1,055		1,055		1,783
PharmaSophia, LLC - research and development agreement
Related Party Transaction [Line Items]
Related party receivables - short term			1,111		1,111		1,081
Rondo Partners L L C
Related Party Transaction [Line Items]
Related party payables - short term			442		442		442
Related party receivables - short term			204		204		68
Related party payables - long term			4,824		4,824		3,719
R&S Solutions - logistics services
Related Party Transaction [Line Items]
Related party payables - short term			7		7		0
Alkermes
Related Party Transaction [Line Items]
Related party payables - short term			29		29		$ 0
Tarsadia Investments, LLC | Sales Milestone Expenses
Related Party Transaction [Line Items]
Amounts of transaction with related party			0	0	0	0
TPG Operations, LLC | Sales Milestone Expenses
Related Party Transaction [Line Items]
Amounts of transaction with related party			$ 0	$ 0	$ 19	$ 0

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Related Party Transactions - Narrative (Details) $ in Thousands				3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 01, 2022 USD ($)	Dec. 31, 2021 USD ($)	Nov. 02, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2017 USD ($) product	Jan. 31, 2021
Related Party Transaction [Line Items]
Collaborative arrangement maximum milestone payment				$ 26,500	$ 26,500
Kashiv Bio Sciences License and Commercialization Agreement
Related Party Transaction [Line Items]
Number of products in agreement | product						2
Collaborative arrangement term						10 years
Collaborative arrangement, profit share (percent)						50.00%
Kashiv Bio Sciences License and Commercialization Agreement | Regulatory Approval
Related Party Transaction [Line Items]
Collaborative arrangement maximum contingent payments amount						$ 22,500
Kashiv Bio Sciences License and Commercialization Agreement | Successful Delivery of Commercial Launch Inventory
Related Party Transaction [Line Items]
Collaborative arrangement maximum contingent payments amount						43,000
Kashiv Bio Sciences License and Commercialization Agreement | Number of Competitors for Launch of one Product | Maximum
Related Party Transaction [Line Items]
Collaborative arrangement maximum contingent payments amount						50,000
Kashiv Bio Sciences License and Commercialization Agreement | Achievement of Cumulative Net Sales | Minimum
Related Party Transaction [Line Items]
Collaborative arrangement maximum contingent payments amount						15,000
Kashiv Bio Sciences License and Commercialization Agreement | Achievement of Cumulative Net Sales | Maximum
Related Party Transaction [Line Items]
Collaborative arrangement maximum contingent payments amount						67,500
Kashiv Biosciences LLC
Related Party Transaction [Line Items]
Collaborative arrangement, upfront payment						183,000
Voting interest acquired (percent)							98.00%
Collaborative arrangement maximum milestone payment				$ 15,000	$ 15,000
Estimated useful life					8 years 3 months 18 days
Kashiv Biosciences LLC | Maximum
Related Party Transaction [Line Items]
Collaborative arrangement, upfront payment						$ 37,500
Puniska Healthcare Pvt Ltd
Related Party Transaction [Line Items]
Consideration paid in cash on hand	$ 1,700	$ 14,162	$ 72,880
Voting interest acquired (percent)	26.00%		74.00%	26.00%	26.00%

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Stockholders' Equity and Redeemable Non-Controlling Interests - Additional Information (Details) - USD ($) $ in Thousands						3 Months Ended		6 Months Ended
	Mar. 01, 2022	Dec. 31, 2021	Nov. 02, 2021	Apr. 02, 2021	Jan. 31, 2020	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Class of Stock [Line Items]
Tax distribution						$ (2,900)	$ (16,600)	$ (7,300)	$ (25,900)
Kashiv Specialty Pharmaceuticals, LLC
Class of Stock [Line Items]
Voting interest acquired (percent)				98.00%
Consideration paid in cash on hand				$ 100,100
Kashiv Specialty Pharmaceuticals, LLC | Sellers of KSP
Class of Stock [Line Items]
Ownership percentage by noncontrolling owners (percent)				2.00%
Av Kare Incorporation And R And S Northeast L L C
Class of Stock [Line Items]
Voting interest acquired (percent)					65.10%
Liabilities incurred, fair value					$ 11,000
Tax distribution recorded as a reduction to redeemable non-controlling interest						$ (600)	$ (1,200)	$ (2,600)	$ (1,700)
Av Kare Incorporation And R And S Northeast L L C | Rondo Partners L L C
Class of Stock [Line Items]
Ownership percentage by noncontrolling owners (percent)					34.90%	34.90%		34.90%
Puniska Healthcare Pvt Ltd
Class of Stock [Line Items]
Voting interest acquired (percent)	26.00%		74.00%			26.00%		26.00%
Consideration paid in cash on hand	$ 1,700	$ 14,162	$ 72,880
Increase in redeemable non-controlling interest to redemption value								$ 900

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Stockholders' Equity and Redeemable Non-Controlling Interests - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Stockholders' equity beginning balance	$ 366,973	$ 344,932
Other comprehensive loss before reclassification	25,807	16,717
Reallocation of ownership interests	(112)	(226)
Stockholders' equity ending balance	172,991	366,973
Foreign currency translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Stockholders' equity beginning balance	(18,845)	(14,497)
Other comprehensive loss before reclassification	(7,816)	(4,255)
Reallocation of ownership interests	(115)	(93)
Stockholders' equity ending balance	(26,776)	(18,845)
Unrealized (loss) gain on cash flow hedge, net of tax
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Stockholders' equity beginning balance	(5,982)	(26,821)
Other comprehensive loss before reclassification	33,623	20,972
Reallocation of ownership interests	3	(133)
Stockholders' equity ending balance	27,644	(5,982)
Accumulated Other Comprehensive (Loss) Income
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Stockholders' equity beginning balance	(24,827)	(41,318)
Stockholders' equity ending balance	$ 868	$ (24,827)

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Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Gain Contingencies [Line Items]
Escrow deposits for legal settlements	$ 148,500	$ 33,000
Deposits and advances	1,694	1,174
Prepaid insurance	7,478	7,962
Prepaid regulatory fees	1,265	3,710
Income and other tax receivables	11,535	8,850
Prepaid taxes	15,953	16,085
Other current receivables	17,748	9,770
Other prepaid assets	20,895	17,309
Chargebacks receivable	7,136	12,358
Total prepaid expenses and other current assets	232,204	110,218
Securities Class Action Lawsuits
Gain Contingencies [Line Items]
Escrow deposits for legal settlements	$ 48,500	33,000
Opana ER® Antitrust Litigation
Gain Contingencies [Line Items]
Escrow deposits for legal settlements		$ 100,000

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Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Other Assets [Line Items]
Other assets	$ 79,836	$ 20,614
Interest rate swap
Other Assets [Line Items]
Other assets	56,221	0
Security deposits
Other Assets [Line Items]
Other assets	5,402	3,895
Long-term prepaid expenses
Other Assets [Line Items]
Other assets	7,086	5,896
Deferred revolving credit facility costs
Other Assets [Line Items]
Other assets	2,453	1,603
Other long term assets
Other Assets [Line Items]
Other assets	$ 8,674	$ 9,220

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Government Grants - Additional Information (Details) $ in Thousands, ₨ in Billions	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2021 INR (₨) company	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Other operating income		$ 1,175	$ 0	$ 1,175	$ 0
Prepaid expenses and other current assets		232,204		232,204		$ 110,218
Government of India
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of companies | company	55
Grants receivable	₨ 10	126,900		126,900
Government grant eligible term	6 years
Government of India | Prepaid and other current assets
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Prepaid expenses and other current assets		900		900
Government of India | Other long term assets
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Other long-term assets		$ 300		$ 300

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Debt - Summary of Long-term Debt (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total debt	$ 2,669,376,000	$ 2,730,750,000
Less: debt issuance costs	(17,009,000)	(20,083,000)
Total debt, net of debt issuance costs	2,652,367,000	2,710,667,000
Less: current portion of long-term debt	(29,920,000)	(30,614,000)
Total long-term debt, net	2,622,447,000	2,680,053,000
Other
Debt Instrument [Line Items]
Total debt	0	624,000
Term Loan due May 2025
Debt Instrument [Line Items]
Total debt	2,577,376,000	2,590,876,000
Rondo Term Loan due January 2025
Debt Instrument [Line Items]
Total debt	$ 92,000,000	$ 139,250,000

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Debt - Narrative (Details) - USD ($)		3 Months Ended	6 Months Ended
	Jun. 02, 2022	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Long-term debt		$ 2,669,376,000	$ 2,669,376,000	$ 2,730,750,000
Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee percentage on unused capacity (percent)	0.25%
Write off of deferred debt issuance cost		300,000	300,000
Debt issuance costs		1,600,000	1,600,000
Revolving credit facility		85,000,000	85,000,000
Line of Credit | Revolving Credit Facility | ABR
Debt Instrument [Line Items]
Debt instrument, interest rate floor (percent)	1.00%
Basis spread on variable rate (percent)	0.25%
Line of Credit | Revolving Credit Facility | ABR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.25%
Line of Credit | Revolving Credit Facility | ABR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.50%
Line of Credit | Revolving Credit Facility | SOFR
Debt Instrument [Line Items]
Debt instrument, interest rate floor (percent)	0.00%
Basis spread on variable rate (percent)	1.25%
Line of Credit | Revolving Credit Facility | SOFR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.25%
Line of Credit | Revolving Credit Facility | SOFR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.50%
Line of Credit | Senior Secured Asset-Backed Revolving Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 350,000,000
Line of credit facility, increase limit	150,000,000
Line of Credit | Senior Secured Asset-Backed Revolving Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	25,000,000
Line of Credit | Senior Secured Asset-Backed Revolving Credit Facility | Bridge Loan
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 35,000,000
Rondo Term Loan
Debt Instrument [Line Items]
Prepayment of outstanding principal			42,800,000
Long-term debt		$ 600,000	$ 600,000

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Property Losses and Associated Expenses - Narrative (Details) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 01, 2021 facility	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Unusual or Infrequent Items, or Both [Abstract]
Number of facilities damaged | facility	2
Property losses and associated expenses, net						$ 10,400
Insurance recoveries for property losses and associated expenses		$ 1,911	$ 0	$ 1,911	$ 0