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ENDO REPORTS FOURTH-QUARTER 2022 FINANCIAL RESULTS

March 6, 2023
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DUBLIN, March 6, 2023 /PRNewswire/ -- Endo International plc (OTC: ENDPQ) today reported financial results for the fourth-quarter ended December 31, 2022.

FOURTH-QUARTER FINANCIAL PERFORMANCE

(in thousands, except per share amounts)


Three Months Ended December 31,




Year Ended December 31,




2022


2021


Change


2022


2021


Change

Total Revenues, Net

$          555,812


$         789,429


(30) %


$       2,318,875


$       2,993,206


(23) %

Reported Loss from Continuing Operations

$         (245,163)


$        (556,667)


(56) %


$      (2,909,618)


$         (569,081)


NM

Reported Diluted Weighted Average Shares

235,205


233,681


1 %


234,840


232,785


1 %

Reported Diluted Net Loss per Share from Continuing Operations

$               (1.04)


$              (2.38)


(56) %


$             (12.39)


$               (2.44)


NM

Reported Net Loss

$         (243,535)


$        (562,062)


(57) %


$      (2,923,105)


$         (613,245)


NM

Adjusted Income from Continuing Operations (2)(3)

$          189,529


$         179,914


5 %


$          463,858


$          691,229


(33) %

Adjusted Diluted Weighted Average Shares (1)(2)

236,500


237,045


— %


236,404


236,665


— %

Adjusted Diluted Net Income per Share from Continuing Operations (2)(3)

$                0.80


$               0.76


5 %


$                1.96


$                2.92


(33) %

Adjusted EBITDA (2)(3)

$          210,102


$         366,404


(43) %


$          892,050


$       1,455,702


(39) %

__________

(1)

Reported Diluted Net Loss per Share from Continuing Operations is computed based on weighted average shares outstanding and, if there is income from continuing operations during the period, the dilutive impact of ordinary share equivalents outstanding during the period. In the case of Adjusted Diluted Weighted Average Shares, Adjusted Income from Continuing Operations is used in determining whether to include such dilutive impact.

(2)

The information presented in the table above includes non-GAAP financial measures such as Adjusted Income from Continuing Operations, Adjusted Diluted Weighted Average Shares, Adjusted Diluted Net Income per Share from Continuing Operations and Adjusted EBITDA. Refer to the "Supplemental Financial Information" section below for reconciliations of certain non-GAAP financial measures to the most directly comparable GAAP financial measures.

(3)

Effective January 1, 2022, these non-GAAP financial measures now include acquired in-process research and development charges which were previously excluded under Endo's legacy non-GAAP policy. This change has been applied retrospectively to all periods presented. Refer to note (15) in the "Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures" section below for additional discussion.

CONSOLIDATED FINANCIAL RESULTS

Total revenues were $556 million in fourth-quarter 2022, a decrease of 30% compared to $789 million in fourth-quarter 2021. This decrease was primarily attributable to decreased revenues from the Sterile Injectables segment.

Reported loss from continuing operations in fourth-quarter 2022 was $245 million compared to $557 million in fourth-quarter 2021. Reported diluted net loss per share from continuing operations in fourth-quarter 2022 was $1.04 compared to $2.38 in fourth-quarter 2021. These results were primarily due to lower asset impairment and litigation-related charges and operating expenses, as well as lower interest as a result of the Chapter 11 filing, partially offset by decreased revenues and expenses related to the Chapter 11 reorganization process.

Adjusted income from continuing operations in fourth-quarter 2022 was $190 million compared to $180 million in fourth-quarter 2021. Adjusted diluted net income per share from continuing operations in fourth-quarter 2022 was $0.80 compared to $0.76 in fourth-quarter 2021. These results were primarily driven by lower interest and operating expenses, which were partially offset by decreased revenues.

BRANDED PHARMACEUTICALS SEGMENT

Fourth-quarter 2022 Branded Pharmaceuticals segment revenues were $224 million, a decrease of 2% compared to $228 million during fourth-quarter 2021.

Specialty Products revenues increased 1% to $162 million in fourth-quarter 2022 compared to $161 million in fourth-quarter 2021, with sales of XIAFLEX® decreasing 5% to $114 million compared to $120 million in fourth-quarter 2021. XIAFLEX® fourth-quarter 2022 revenues were unfavorably impacted by continued challenging market conditions for specialty product office-based elective procedures and the ongoing impact from the third-quarter disruption experienced by our third-party specialty pharmacy provider, which improved during fourth-quarter 2022. Established Products revenues decreased 9% to $61 million in fourth-quarter 2022 compared to $67 million in fourth-quarter 2021, driven primarily by ongoing generic competition.

STERILE INJECTABLES SEGMENT

Fourth-quarter 2022 Sterile Injectables segment revenues were $108 million, a decrease of 66% compared to $319 million during fourth-quarter 2021. This was primarily attributable to decreased VASOSTRICT® revenues due to lower price and market share resulting from generic competition and lower overall market volumes as COVID-19-related hospitalizations decline.

GENERIC PHARMACEUTICALS SEGMENT

Fourth-quarter 2022 Generic Pharmaceuticals segment revenues were $205 million, a decrease of 6% compared to $218 million during fourth-quarter 2021. This decrease was primarily attributable to competitive pressure on certain generic products, partially offset by revenues from varenicline tablets, the first generic version of Chantix® which launched during third-quarter 2021.

INTERNATIONAL PHARMACEUTICALS SEGMENT

Fourth-quarter 2022 International Pharmaceuticals segment revenues were $20 million, a decrease of 19% compared to $24 million during fourth-quarter 2021. This decrease was primarily attributable to competitive pressures and the expiration of a product agreement.

CASH, CASH FLOW AND OTHER UPDATES

As of December 31, 2022, the Company had approximately $1.0 billion in unrestricted cash. Fourth-quarter 2022 net cash provided by operating activities was approximately $110 million compared to approximately $50 million used in operating activities during fourth-quarter 2021. This increase was primarily attributable to a decrease in net working capital as well as reductions in cash interest and litigation related payments, which were partially offset by a decrease in Adjusted EBITDA.

Additionally, during fourth-quarter 2022, the Company announced that it will cease the production and sale of Endo Aesthetics' Qwo® (collagenase clostridium histolyticum-aaes) in light of market concerns about the extent and variability of bruising following initial treatment as well as the potential for prolonged skin discoloration.

Chantix® is a registered trademark of Pfizer Inc.

FINANCIAL SCHEDULES

The following table presents Endo's unaudited Total revenues, net for the three months and years ended December 31, 2022 and 2021 (dollars in thousands):


Three Months Ended December 31,


Percent
Growth


Year Ended December 31,


Percent
Growth


2022


2021



2022


2021


Branded Pharmaceuticals:












Specialty Products:












XIAFLEX®

$         114,304


$         120,078


(5) %


$         438,680


$         432,344


1 %

SUPPRELIN® LA

28,159


28,709


(2) %


113,011


114,374


(1) %

Other Specialty (1)

19,986


12,025


66 %


70,009


86,432


(19) %

Total Specialty Products

$         162,449


$         160,812


1 %


$         621,700


$         633,150


(2) %

Established Products:












PERCOCET®

$           26,460


$           25,093


5 %


$         103,943


$         103,788


— %

TESTOPEL®

10,396


11,322


(8) %


38,727


43,636


(11) %

Other Established (2)

24,523


30,738


(20) %


86,772


113,043


(23) %

Total Established Products

$           61,379


$           67,153


(9) %


$         229,442


$         260,467


(12) %

Total Branded Pharmaceuticals (3)

$         223,828


$         227,965


(2) %


$         851,142


$         893,617


(5) %

Sterile Injectables:












VASOSTRICT®

$           28,479


$         224,971


(87) %


$         253,696


$         901,735


(72) %

ADRENALIN®

28,790


36,494


(21) %


114,304


124,630


(8) %

Other Sterile Injectables (4)

50,472


57,634


(12) %


221,633


239,732


(8) %

Total Sterile Injectables (3)

$         107,741


$         319,099


(66) %


$         589,633


$      1,266,097


(53) %

Total Generic Pharmaceuticals (5)

$         204,701


$         218,135


(6) %


$         795,457


$         740,586


7 %

Total International Pharmaceuticals (6)

$           19,542


$           24,230


(19) %


$           82,643


$           92,906


(11) %

Total revenues, net

$         555,812


$         789,429


(30) %


$      2,318,875


$      2,993,206


(23) %

__________

(1)

Products included within Other Specialty include AVEED®, NASCOBAL® Nasal Spray and QWO®.

(2)

Products included within Other Established include, but are not limited to, EDEX®.

(3)

Individual products presented above represent the top two performing products in each product category for the year ended December 31, 2022 and/or any product having revenues in excess of $25 million during any completed quarterly period in 2022 or 2021.

(4)

Products included within Other Sterile Injectables include APLISOL®, ertapenem for injection and others.

(5)

The Generic Pharmaceuticals segment is comprised of a portfolio of products that are generic versions of branded products, are distributed primarily through the same wholesalers, generally have limited or no intellectual property protection and are sold within the U.S. During the three months and year ended December 31, 2022, varenicline tablets (Endo's generic version of Pfizer Inc.'s Chantix®), which launched in September 2021, made up 16% and 13%, respectively, of consolidated total revenues. During the three months ended December 31, 2021, varenicline tablets made up 7% of consolidated total revenues. No other individual product within this segment has exceeded 5% of consolidated total revenues for the periods presented.

(6)

The International Pharmaceuticals segment, which accounted for less than 5% of consolidated total revenues for each of the periods presented, includes a variety of specialty pharmaceutical products sold outside the U.S., primarily in Canada through Endo's operating company Paladin Labs Inc.

 

The following table presents unaudited Condensed Consolidated Statement of Operations data for the three months and years ended December 31, 2022 and 2021 (in thousands, except per share data):


Three Months Ended December 31,


Year Ended December 31,


2022


2021


2022


2021

TOTAL REVENUES, NET

$        555,812


$         789,429


$      2,318,875


$      2,993,206

COSTS AND EXPENSES:








Cost of revenues

294,266


311,223


1,092,499


1,221,064

Selling, general and administrative

176,957


250,103


777,169


861,760

Research and development

30,230


38,416


128,033


123,440

Acquired in-process research and development


20,120


68,700


25,120

Litigation-related and other contingencies, net

33,984


226,168


478,722


345,495

Asset impairment charges

191,530


364,584


2,142,746


414,977

Acquisition-related and integration items, net

1,359


(2,022)


408


(8,379)

Interest expense, net

290


143,501


349,776


562,353

Loss on extinguishment of debt




13,753

Reorganization items, net

78,766



202,978


Other income, net

(11,907)


(15,103)


(34,054)


(19,774)

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX

$       (239,663)


$        (547,561)


$     (2,888,102)


$        (546,603)

INCOME TAX EXPENSE

5,500


9,106


21,516


22,478

LOSS FROM CONTINUING OPERATIONS

$       (245,163)


$        (556,667)


$     (2,909,618)


$        (569,081)

DISCONTINUED OPERATIONS, NET OF TAX

1,628


(5,395)


(13,487)


(44,164)

NET LOSS

$       (243,535)


$        (562,062)


$     (2,923,105)


$        (613,245)

NET LOSS PER SHARE—BASIC:








Continuing operations

$             (1.04)


$              (2.38)


$            (12.39)


$              (2.44)

Discontinued operations


(0.03)


(0.06)


(0.19)

Basic

$             (1.04)


$              (2.41)


$            (12.45)


$              (2.63)

NET LOSS PER SHARE—DILUTED:








Continuing operations

$             (1.04)


$              (2.38)


$            (12.39)


$              (2.44)

Discontinued operations


(0.03)


(0.06)


(0.19)

Diluted

$             (1.04)


$              (2.41)


$            (12.45)


$              (2.63)

WEIGHTED AVERAGE SHARES:








Basic

235,205


233,681


234,840


232,785

Diluted

235,205


233,681


234,840


232,785

 

The following table presents unaudited Condensed Consolidated Balance Sheet data at December 31, 2022 and December 31, 2021 (in thousands):


December 31,
2022


December 31,
2021

ASSETS




CURRENT ASSETS:




Cash and cash equivalents

$      1,018,883


$      1,507,196

Restricted cash and cash equivalents

145,358


124,114

Accounts receivable

493,988


592,019

Inventories, net

274,499


283,552

Other current assets

144,040


207,705

Total current assets

$      2,076,768


$      2,714,586

TOTAL NON-CURRENT ASSETS

3,681,169


6,052,829

TOTAL ASSETS

$      5,757,937


$      8,767,415

LIABILITIES AND SHAREHOLDERS' DEFICIT




CURRENT LIABILITIES:




Accounts payable and accrued expenses, including legal settlement accruals

$         687,183


$      1,417,892

Other current liabilities

2,444


212,070

Total current liabilities

$         689,627


$      1,629,962

LONG-TERM DEBT, LESS CURRENT PORTION, NET


8,048,980

OTHER LIABILITIES

61,700


332,459

LIABILITIES SUBJECT TO COMPROMISE

9,168,782


SHAREHOLDERS' DEFICIT

(4,162,172)


(1,243,986)

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT

$      5,757,937


$      8,767,415

 

The following table presents unaudited Condensed Consolidated Statement of Cash Flow data for the years ended December 31, 2022 and 2021 (in thousands):


Year Ended December 31,


2022


2021

OPERATING ACTIVITIES:




Net loss

$    (2,923,105)


$       (613,245)

Adjustments to reconcile Net loss to Net cash provided by operating activities:




Depreciation and amortization

391,629


457,098

Asset impairment charges

2,142,746


414,977

Non-cash reorganization items, net

89,197


Other, including cash payments to claimants from Qualified Settlement Funds

568,726


152,220

Net cash provided by operating activities

$         269,193


$         411,050

INVESTING ACTIVITIES:




Capital expenditures, excluding capitalized interest

$          (99,722)


$         (77,929)

Acquisitions, including in-process research and development, net of cash and restricted cash acquired

(90,320)


(5,000)

Proceeds from sale of business and other assets, net

41,400


30,283

Other

15,495


(6,898)

Net cash used in investing activities

$        (133,147)


$         (59,544)

FINANCING ACTIVITIES:




Payments on borrowings, including certain adequate protection payments, net (a)

$        (509,513)


$         (78,745)

Other

(4,360)


(26,736)

Net cash used in financing activities

$        (513,873)


$       (105,481)

Effect of foreign exchange rate

(4,242)


285

NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS

$        (382,069)


$        246,310

CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD

1,631,310


1,385,000

CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD

$      1,249,241


$     1,631,310

__________

(a)

Beginning during the third quarter of 2022, Endo became obligated to make certain adequate protection payments as a result of the Chapter 11 proceedings, which are currently being accounted for as a reduction of the carrying amount of the related debt instruments and presented as financing cash outflows. Some or all of the adequate protection payments may later be recharacterized as interest expense and/or as operating cash outflows depending upon certain developments in the Chapter 11 proceedings, which could result in increases in interest expense and/or decreases in operating cash flows in future periods that may be material.

 

SUPPLEMENTAL FINANCIAL INFORMATION

To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures. For additional information on the Company's use of such non-GAAP financial measures, refer to Endo's Current Report on Form 8-K furnished today to the U.S. Securities and Exchange Commission, which includes an explanation of the Company's reasons for using non-GAAP measures.

The tables below provide reconciliations of certain of the Company's non-GAAP financial measures to their most directly comparable GAAP amounts. Refer to the "Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures" section below for additional details regarding the adjustments to the non-GAAP financial measures detailed throughout this Supplemental Financial Information section.

As previously communicated, in response to views expressed by the U.S. Securities and Exchange Commission, the Company has, effective January 1, 2022, revised its definition of its adjusted financial measures to no longer exclude Acquired in-process research and development charges (representing the research and development costs it had previously labeled as "Upfront and milestone payments to partners"). As a result of this change, the Company's adjusted financial measures now reflect the impact of those transactions. The inclusion of the impact of these transactions, which may occur from time to time, could result in significant, but temporary, fluctuations in both Endo's GAAP and Non-GAAP financial measures in the period(s) in which they are incurred. These charges also are not indicative of the underlying performance of Endo's operations during the period. This change was applied retrospectively to all periods presented herein. Refer to footnote (15) in the "Notes to the Reconciliations of GAAP and Non-GAAP Financial Measures" section below for additional discussion.

Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP)

The following table provides a reconciliation of Net loss (GAAP) to Adjusted EBITDA (non-GAAP) for the three months and years ended December 31, 2022 and 2021 (in thousands):


Three Months Ended December 31,


Year Ended December 31,


2022


2021


2022


2021

Net loss (GAAP)

$       (243,535)


$       (562,062)


$    (2,923,105)


$       (613,245)

Income tax expense

5,500


9,106


21,516


22,478

Interest expense, net

290


143,501


349,776


562,353

Depreciation and amortization (1)

89,342


104,254


387,856


432,380

EBITDA (non-GAAP)

$       (148,403)


$       (305,201)


$    (2,163,957)


$         403,966

Amounts related to continuity and separation benefits,
cost reductions and strategic review initiatives (2)

59,356


32,280


198,381


90,912

Certain litigation-related and other contingencies, net (3)

33,984


226,168


478,722


345,495

Certain legal costs (4)

434


53,187


31,756


136,148

Asset impairment charges (5)

191,530


364,584


2,142,746


414,977

Acquisition-related and integration costs (6)




414

Fair value of contingent consideration (7)

1,359


(2,022)


408


(8,793)

Loss on extinguishment of debt (8)




13,753

Share-based compensation (1)

4,124


6,990


17,145


29,227

Other income, net (9)

(11,907)


(15,103)


(34,054)


(19,774)

Reorganization items, net (10)

78,766



202,978


Other (11)

2,487


126


4,438


5,213

Discontinued operations, net of tax (12)

(1,628)


5,395


13,487


44,164

Adjusted EBITDA (non-GAAP) (15)

$         210,102


$         366,404


$         892,050


$      1,455,702

 

Reconciliation of Adjusted Income from Continuing Operations (non-GAAP)

The following table provides a reconciliation of the Company's Loss from continuing operations (GAAP) to Adjusted income from continuing operations (non-GAAP) for the three months and years ended December 31, 2022 and 2021 (in thousands):


Three Months Ended December 31,


Year Ended December 31,


2022


2021


2022


2021

Loss from continuing operations (GAAP)

$       (245,163)


$       (556,667)


$    (2,909,618)


$       (569,081)

Non-GAAP adjustments:








Amortization of intangible assets (13)

75,467


91,806


337,311


372,907

Amounts related to continuity and separation benefits,
cost reductions and strategic review initiatives (2)

59,356


32,280


198,381


90,912

Certain litigation-related and other contingencies, net (3)

33,984


226,168


478,722


345,495

Certain legal costs (4)

434


53,187


31,756


136,148

Asset impairment charges (5)

191,530


364,584


2,142,746


414,977

Acquisition-related and integration costs (6)




414

Fair value of contingent consideration (7)

1,359


(2,022)


408


(8,793)

Loss on extinguishment of debt (8)




13,753

Reorganization items, net (10)

78,766



202,978


Other (11)

(10,022)


(15,200)


(32,980)


(14,539)

Tax adjustments (14)

3,818


(14,222)


14,154


(90,964)

Adjusted income from continuing operations (non-GAAP) (15)

$         189,529


$         179,914


$         463,858


$         691,229

 

Reconciliation of Other Adjusted Income Statement Data (non-GAAP)

The following tables provide detailed reconciliations of various other income statement data between the GAAP and non-GAAP amounts for the three months and years ended December 31, 2022 and 2021 (in thousands, except per share data):


Three Months Ended December 31, 2022


Total revenues, net


Cost of revenues


Gross margin


Gross margin %


Total operating expenses


Operating expense to revenue %


Operating (loss) income from continuing operations


Operating margin %


Other non-operating expense, net


(Loss) income from continuing operations before income tax


Income tax expense


Effective tax rate


(Loss) income from continuing operations


Discontinued operations, net of tax


Net (loss) income


Diluted net (loss) income per share from continuing operations (16)

Reported (GAAP)

$     555,812


$     294,266


$     261,546


47.1 %


$     434,060


78.1 %


$   (172,514)


(31.0) %


$       67,149


$   (239,663)


$         5,500


(2.3) %


$   (245,163)


$         1,628


$   (243,535)


$         (1.04)

Items impacting comparability:
































Amortization of intangible assets (13)


(75,467)


75,467







75,467





75,467





75,467



75,467



Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives (2)


(38,153)


38,153




(21,203)




59,356





59,356





59,356



59,356



Certain litigation-related and other contingencies, net (3)






(33,984)




33,984





33,984





33,984



33,984



Certain legal costs (4)






(434)




434





434





434



434



Asset impairment charges (5)






(191,530)




191,530





191,530





191,530



191,530



Fair value of contingent consideration (7)






(1,359)




1,359





1,359





1,359



1,359



Reorganization items, net (10)












(78,766)


78,766





78,766



78,766



Other (11)


(125)


125




(2,355)




2,480




12,502


(10,022)





(10,022)



(10,022)



Tax adjustments (14)














(3,818)




3,818



3,818



Discontinued operations, net of tax (12)


















(1,628)


(1,628)



After considering items (non-GAAP) (15)

$     555,812


$     180,521


$     375,291


67.5 %


$     183,195


33.0 %


$     192,096


34.6 %


$            885


$     191,211


$         1,682


0.9 %


$     189,529


$              —


$     189,529


$           0.80

 


Three Months Ended December 31, 2021


Total revenues, net


Cost of revenues


Gross margin


Gross margin %


Total operating expenses


Operating expense to revenue %


Operating (loss) income from continuing operations


Operating margin %


Other non-operating expense, net


(Loss) income from continuing operations before income tax


Income tax expense


Effective tax rate


(Loss) income from continuing operations


Discontinued operations, net of tax


Net (loss) income


Diluted net (loss) income per share from continuing operations (16)

Reported (GAAP)

$     789,429


$     311,223


$     478,206


60.6 %


$     897,369


113.7 %


$   (419,163)


(53.1) %


$     128,398


$   (547,561)


$         9,106


(1.7) %


$   (556,667)


$       (5,395)


$   (562,062)


$         (2.38)

Items impacting comparability:
































Amortization of intangible assets (13)


(91,806)


91,806







91,806





91,806





91,806



91,806



Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives (2)


949


(949)




(33,229)




32,280





32,280





32,280



32,280



Certain litigation-related and other contingencies, net (3)






(226,168)




226,168





226,168





226,168



226,168



Certain legal costs (4)






(53,187)




53,187





53,187





53,187



53,187



Asset impairment charges (5)






(364,584)




364,584





364,584





364,584



364,584



Fair value of contingent consideration (7)






2,022




(2,022)





(2,022)





(2,022)



(2,022)



Other (11)


(125)


125







125




15,325


(15,200)





(15,200)



(15,200)



Tax adjustments (14)














14,222




(14,222)



(14,222)



Discontinued operations, net of tax (12)


















5,395


5,395



After considering items (non-GAAP) (15)

$     789,429


$     220,241


$     569,188


72.1 %


$     222,223


28.1 %


$     346,965


44.0 %


$     143,723


$     203,242


$       23,328


11.5 %


$     179,914


$              —


$     179,914


$           0.76

 


Year Ended December 31, 2022


Total revenues, net


Cost of revenues


Gross margin


Gross margin %


Total operating expenses


Operating expense to revenue %


Operating (loss) income from continuing operations


Operating margin %


Other non-operating expense, net


(Loss) income from continuing operations before income tax


Income tax expense


Effective tax rate


(Loss) income from continuing operations


Discontinued operations, net of tax


Net (loss) income


Diluted net (loss) income per share from continuing operations (16)

Reported (GAAP)

$  2,318,875


$  1,092,499


$  1,226,376


52.9 %


$  3,595,778


155.1 %


$(2,369,402)


(102.2) %


$     518,700


$(2,888,102)


$       21,516


(0.7) %


$(2,909,618)


$     (13,487)


$(2,923,105)


$       (12.39)

Items impacting comparability:
































Amortization of intangible assets (13)


(337,311)


337,311







337,311





337,311





337,311



337,311



Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives (2)


(61,806)


61,806




(136,575)




198,381





198,381





198,381



198,381



Certain litigation-related and other contingencies, net (3)






(478,722)




478,722





478,722





478,722



478,722



Certain legal costs (4)






(31,756)




31,756





31,756





31,756



31,756



Asset impairment charges (5)






(2,142,746)




2,142,746





2,142,746





2,142,746



2,142,746



Fair value of contingent consideration (7)






(408)




408





408





408



408



Reorganization items, net (10)












(202,978)


202,978





202,978



202,978



Other (11)


(500)


500




(3,925)




4,425




37,405


(32,980)





(32,980)



(32,980)



Tax adjustments (14)














(14,154)




14,154



14,154



Discontinued operations, net of tax (12)


















13,487


13,487



After considering items (non-GAAP) (15)

$  2,318,875


$     692,882


$  1,625,993


70.1 %


$     801,646


34.6 %


$     824,347


35.5 %


$     353,127


$     471,220


$         7,362


1.6 %


$     463,858


$              —


$     463,858


$           1.96

 


Year Ended December 31, 2021


Total revenues, net


Cost of revenues


Gross margin


Gross margin %


Total operating expenses


Operating expense to revenue %


Operating income from continuing operations


Operating margin %


Other non-operating expense, net


(Loss) income from continuing operations before income tax


Income tax expense


Effective tax rate


(Loss) income from continuing operations


Discontinued operations, net of tax


Net (loss) income


Diluted net (loss) income per share from continuing operations (16)

Reported (GAAP)

$  2,993,206


$  1,221,064


$  1,772,142


59.2 %


$  1,762,413


58.9 %


$         9,729


0.3 %


$     556,332


$   (546,603)


$       22,478


(4.1) %


$   (569,081)


$     (44,164)


$   (613,245)


$         (2.44)

Items impacting comparability:
































Amortization of intangible assets (13)


(372,907)


372,907







372,907





372,907





372,907



372,907



Amounts related to continuity and separation benefits, cost reductions and strategic review initiatives (2)


(9,058)


9,058




(81,854)




90,912





90,912





90,912



90,912



Certain litigation-related and other contingencies, net (3)






(345,495)




345,495





345,495





345,495



345,495



Certain legal costs (4)






(136,148)




136,148





136,148





136,148



136,148



Asset impairment charges (5)






(414,977)




414,977





414,977





414,977



414,977



Acquisition-related and integration costs (6)






(414)




414





414





414



414



Fair value of contingent consideration (7)






8,793




(8,793)





(8,793)





(8,793)



(8,793)



Loss on extinguishment of debt (8)












(13,753)


13,753





13,753



13,753



Other (11)


(1,301)


1,301




(3,909)




5,210




19,749


(14,539)





(14,539)



(14,539)



Tax adjustments (14)














90,964




(90,964)



(90,964)



Discontinued operations, net of tax (12)