Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2016	Feb. 21, 2017	Jun. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Trading Symbol	ENDP
Entity Registrant Name	Endo International plc
Entity Central Index Key	0001593034
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Ordinary Shares Outstanding		222,957,922
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	Yes
Entity Public Float			$ 3,084,255,040

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 517,250	$ 272,348
Restricted cash and cash equivalents	282,074	585,379
Marketable securities	0	34
Accounts receivable, net of allowance of $6,956 and $1,309 at December 31, 2016 and 2015, respectively	992,153	1,014,808
Inventories, net	555,671	752,493
Prepaid expenses and other current assets	77,523	55,052
Income taxes receivable	47,803	735,901
Assets held for sale (NOTE 3)	116,985	36,522
Total current assets	2,589,459	3,452,537
MARKETABLE SECURITIES	2,267	3,855
PROPERTY, PLANT AND EQUIPMENT, NET	669,596	675,624
GOODWILL	4,729,395	7,299,354
OTHER INTANGIBLES, NET	5,859,297	7,828,942
DEFERRED INCOME TAXES	7,817	10,423
OTHER ASSETS	417,278	79,601
TOTAL ASSETS	14,275,109	19,350,336
CURRENT LIABILITIES:
Accounts payable and accrued expenses	1,454,084	1,510,115
Current portion of legal settlement accrual	1,015,932	1,606,726
Current portion of long-term debt	131,125	328,705
Income taxes payable	9,266	8,551
Liabilities held for sale (NOTE 3)	24,338	20,215
Total current liabilities	2,634,745	3,474,312
DEFERRED INCOME TAXES	192,297	871,040
LONG-TERM DEBT, LESS CURRENT PORTION, NET	8,141,378	8,251,657
LONG-TERM LEGAL SETTLEMENT ACCRUAL, LESS CURRENT PORTION, NET	0	549,098
OTHER LIABILITIES	605,100	236,253
COMMITMENTS AND CONTINGENCIES (NOTE 14)
SHAREHOLDERS’ EQUITY:
Euro deferred shares, $0.01 par value; 4,000,000 shares authorized and issued	42	43
Ordinary shares, $0.0001 par value; 1,000,000,000 shares authorized; 222,954,175 and 222,124,282 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively	22	22
Additional paid-in capital	8,743,240	8,693,385
Accumulated deficit	(5,688,281)	(2,341,215)
Accumulated other comprehensive loss	(353,434)	(384,205)
Total equity	2,701,589	5,968,030
Noncontrolling interests	0	(54)
Total shareholders’ equity	2,701,589	5,967,976
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 14,275,109	$ 19,350,336

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for accounts receivable	$ 6,956	$ 1,309
Euro deferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Euro deferred shares, shares authorized	4,000,000	4,000,000
Euro deferred shares, shares issued	4,000,000	4,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	222,954,175	222,124,282
Common stock, shares outstanding	222,954,175	222,124,282

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
TOTAL REVENUES	$ 4,010,274	$ 3,268,718	$ 2,380,683
COSTS AND EXPENSES:
Cost of revenues	2,634,973	2,075,651	1,231,497
Selling, general and administrative	770,728	741,304	567,986
Research and development	183,372	102,197	112,708
Litigation-related and other contingencies, net	23,950	37,082	42,084
Asset impairment charges	3,781,165	1,140,709	22,542
Acquisition-related and integration items	87,601	105,250	77,384
OPERATING (LOSS) INCOME FROM CONTINUING OPERATIONS	(3,471,515)	(933,475)	326,482
INTEREST EXPENSE, NET	452,679	373,214	227,114
LOSS ON EXTINGUISHMENT OF DEBT	0	67,484	31,817
OTHER (INCOME) EXPENSE, NET	(338)	63,691	(32,324)
LOSS BEFORE INCOME TAXES	(3,923,856)	(1,437,864)	99,875
INCOME TAX (BENEFIT) EXPENSE	(700,084)	(1,137,465)	38,267
(LOSS) INCOME FROM CONTINUING OPERATIONS	(3,223,772)	(300,399)	61,608
DISCONTINUED OPERATIONS, NET OF TAX (NOTE 3)	(123,278)	(1,194,926)	(779,792)
CONSOLIDATED NET LOSS	(3,347,050)	(1,495,325)	(718,184)
Less: Net income (loss) attributable to noncontrolling interests	16	(283)	3,135
NET LOSS ATTRIBUTABLE TO ENDO INTERNATIONAL PLC	$ (3,347,066)	$ (1,495,042)	$ (721,319)
NET LOSS PER SHARE ATTRIBUTABLE TO ENDO INTERNATIONAL PLC ORDINARY SHAREHOLDERS—BASIC:
Continuing operations (in dollars per share)	$ (14.48)	$ (1.52)	$ 0.42
Discontinued operations (in dollars per share)	(0.55)	(6.07)	(5.33)
Basic (in dollars per share)	(15.03)	(7.59)	(4.91)
NET LOSS PER SHARE ATTRIBUTABLE TO ENDO INTERNATIONAL PLC ORDINARY SHAREHOLDERS—DILUTED:
Continuing operations (in dollars per share)	(14.48)	(1.52)	0.40
Discontinued operations (in dollars per share)	(0.55)	(6.07)	(5.00)
Diluted (in dollars per share)	$ (15.03)	$ (7.59)	$ (4.60)
WEIGHTED AVERAGE SHARES:
Basic (shares)	222,651	197,100	146,896
Diluted (shares)	222,651	197,100	156,730

Consolidated Statements Of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
CONSOLIDATED NET LOSS	$ (3,347,050)	$ (1,495,325)	$ (718,184)
Net unrealized (loss) gain on securities:
Unrealized (loss) gain arising during the period	(914)	2,299	(1,099)
Less: reclassification adjustments for (gain) loss realized in net loss	(6)	0	17
Net unrealized (loss) gain on securities:	(920)	2,299	(1,082)
Foreign currency translation gain (loss):
Foreign currency gain (loss) arising during the period	31,729	(284,722)	(121,389)
Less: reclassification adjustments for loss realized in net loss	0	25,715	0
Foreign currency translation gain (loss)	31,729	(259,007)	(121,389)
OTHER COMPREHENSIVE INCOME (LOSS)	30,809	(256,708)	(122,471)
CONSOLIDATED COMPREHENSIVE LOSS	(3,316,241)	(1,752,033)	(840,655)
Less: Net income (loss) attributable to noncontrolling interests	16	(283)	3,135
Less: Other comprehensive income (loss) attributable to noncontrolling interests	38	(495)	(3,298)
COMPREHENSIVE LOSS ATTRIBUTABLE TO ENDO INTERNATIONAL PLC	$ (3,316,295)	$ (1,751,255)	$ (840,492)

Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands	Total	Auxilium Pharmaceuticals, Inc.	Par Pharmaceutical Holdings, Inc.	Total Endo International plc Shareholders’ Equity	Total Endo International plc Shareholders’ Equity Auxilium Pharmaceuticals, Inc.	Total Endo International plc Shareholders’ Equity Par Pharmaceutical Holdings, Inc.	Ordinary Shares	Ordinary Shares Auxilium Pharmaceuticals, Inc.	Ordinary Shares Par Pharmaceutical Holdings, Inc.	Euro Deferred Shares	Additional Paid-in Capital	Additional Paid-in Capital Auxilium Pharmaceuticals, Inc.	Additional Paid-in Capital Par Pharmaceutical Holdings, Inc.	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive (Loss) Income	Treasury Stock	Noncontrolling Interests
Shareholders' equity, beginning balance (in shares) at Dec. 31, 2013							144,413,074									(29,058,681)
Shareholders' equity, beginning balance at Dec. 31, 2013	$ 585,216			$ 526,018			$ 1,444				$ 1,166,375			$ 126,234	$ (4,915)	$ (763,120)	$ 59,198
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Net (loss) income	(718,184)			(721,319)										(721,319)			3,135
Other comprehensive income (loss)	(122,471)			(119,173)											(119,173)		(3,298)
Compensation related to share-based awards	32,671			32,671							32,671
Forfeiture of restricted stock awards (in shares)							(3,298)
Exercise of options (in shares)							1,528,295
Exercise of options	41,392			41,392			$ 4				41,388
Tax benefits of share awards, net	$ 33,531			33,531							33,531
Issuance of ordinary shares related to the employee stock purchase plan (in shares)	75,450
Issuance of ordinary shares related to the employee stock purchase plan	$ 4,600
Ordinary shares issued (in shares)							36,235,228
Ordinary shares issued	2,844,366			2,844,366			$ 17				2,844,349
Euro deferred shares issued (in shares)										4,000,000
Euro deferred shares issued	55			55						$ 55
Tax withholding for restricted shares	(25,081)			(25,081)							(25,081)
Distributions to noncontrolling interests	(5,291)																(5,291)
Buy-out of noncontrolling interests, net	(1,729)																(1,729)
Addition of Paladin noncontrolling interests due to acquisition	38,800																38,800
Removal of HealthTronics, Inc. noncontrolling interests due to disposition	(57,359)																(57,359)
Result of contribution of Endo Health Solutions Inc. to Endo International plc (in shares)							(29,058,681)									29,058,681
Result of contribution of Endo Health Solutions Inc. to Endo International plc							$ (1,450)				(761,670)					$ 763,120
Conversion of convertible debt (in shares)							798,367
Repurchase of convertible senior subordinated notes due 2015	(309,829)			(309,829)							(309,829)
Settlement of common stock warrants	(284,454)			(284,454)							(284,454)
Settlement of the hedge on convertible senior subordinated notes due 2015	356,265			356,265							356,265
Other	315			315						$ (7)	322
Shareholders' equity, ending balance (in shares) at Dec. 31, 2014							153,912,985			4,000,000						0
Shareholders' equity, ending balance at Dec. 31, 2014	2,408,213			2,374,757			$ 15			$ 48	3,093,867			(595,085)	(124,088)	$ 0	33,456
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Net (loss) income	(1,495,325)			(1,495,042)										(1,495,042)			(283)
Other comprehensive income (loss)	(256,708)			(256,213)											(256,213)		(495)
Compensation related to share-based awards	61,185			61,185							61,185
Exercise of options (in shares)							880,885
Exercise of options	27,217			27,217							27,217
Tax benefits of share awards, net	$ 20,051			20,051							20,051
Issuance of ordinary shares related to the employee stock purchase plan (in shares)	67,867						67,867
Issuance of ordinary shares related to the employee stock purchase plan	$ 4,299			4,299							4,299
Ordinary shares issued (in shares)							27,982,302
Ordinary shares issued	2,300,000			2,300,000			$ 3				2,299,997
Equity issuance fees	(66,956)			(66,956)							(66,956)
Ordinary shares issued in connection with acquisitions (in shares)								18,609,835	18,069,899
Ordinary shares issued in connection with acquisition		$ 1,519,320	$ 1,325,248		$ 1,519,320	$ 1,325,248		$ 2	$ 2			$ 1,519,318	$ 1,325,246
Tax withholding for restricted shares	(15,398)			(15,398)							(15,398)
Share repurchases (in shares)							(4,361,957)
Share repurchases	(251,088)			(251,088)										(251,088)
Buy-out of noncontrolling interests, net	(39,608)			(6,876)							(2,972)				(3,904)		(32,732)
Conversion of convertible debt (in shares)							5,170,239
Conversion of Auxilium Notes	160,892			160,892							160,892
Fair value of equity component of acquired Auxilium Notes	266,649			266,649							266,649
Settlement of common stock warrants (in shares)							1,792,379
Settlement of common stock warrants	0			0
Other (in shares)							(152)
Other	(15)			(15)						$ (5)	(10)
Shareholders' equity, ending balance (in shares) at Dec. 31, 2015							222,124,282			4,000,000						0
Shareholders' equity, ending balance at Dec. 31, 2015	5,967,976			5,968,030			$ 22			$ 43	8,693,385			(2,341,215)	(384,205)	$ 0	(54)
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Net (loss) income	(3,347,050)			(3,347,066)										(3,347,066)			16
Other comprehensive income (loss)	30,809			30,771											30,771		38
Compensation related to share-based awards	59,769			59,769							59,769
Exercise of options (in shares)							62,589
Exercise of options	1,952			1,952							1,952
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	$ (5,449)			(5,449)							(5,449)
Issuance of ordinary shares related to the employee stock purchase plan (in shares)	306,918						306,918
Issuance of ordinary shares related to the employee stock purchase plan	$ 5,119			5,119							5,119
Ordinary shares issued (in shares)							460,386
Tax withholding for restricted shares	(11,500)			(11,500)							(11,500)
Other	(37)			(37)						$ (1)	(36)
Shareholders' equity, ending balance (in shares) at Dec. 31, 2016							222,954,175			4,000,000						0
Shareholders' equity, ending balance at Dec. 31, 2016	$ 2,701,589			$ 2,701,589			$ 22			$ 42	$ 8,743,240			$ (5,688,281)	$ (353,434)	$ 0	$ 0

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
OPERATING ACTIVITIES:
Consolidated net loss	$ (3,347,050)	$ (1,495,325)	$ (718,184)
Adjustments to reconcile consolidated net loss to Net cash provided by operating activities:
Depreciation and amortization	983,309	632,756	331,651
Inventory step-up	108,768	232,461	65,582
Share-based compensation	59,769	61,185	32,671
Amortization of debt issuance costs and discount	28,514	23,604	29,086
Provision for bad debts	6,885	5,073	165
Provision for inventory reserve	129,245	111,750	39,606
Deferred income taxes	(745,341)	(447,168)	(275,123)
Net loss on disposal of property, plant and equipment	7,302	3,256	2,626
Change in fair value of contingent consideration	23,823	(65,640)	0
Loss on extinguishment of debt	0	67,484	31,817
Prepayment penalty on long-term debt	0	(31,496)	0
Asset impairment charges	3,802,493	1,390,281	22,542
Gain on sale of business and other assets	(4,110)	(13,550)	(8,780)
Changes in assets and liabilities which (used) provided cash:
Accounts receivable	(7,387)	(274,994)	(341,404)
Inventories	(62,369)	(82,620)	2,740
Prepaid and other assets	68,773	18,283	51,895
Accounts payable and accrued expenses	(682,515)	443,398	1,453,388
Other liabilities	(524,532)	69,926	(302,251)
Income taxes payable/receivable	678,862	(586,638)	(80,251)
Net cash provided by operating activities	524,439	62,026	337,776
INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(138,856)	(81,774)	(80,425)
Proceeds from sale of intellectual property and property, plant and equipment	6,762	0	174
Acquisitions, net of cash acquired	(30,394)	(7,650,404)	(1,086,510)
Proceeds from sale of marketable securities and investments	34	1,230	87,233
Proceeds from notes receivable	0	17	32,659
Increase in notes receivable	0	0	(35,400)
Patent acquisition costs and license fees	(19,206)	(43,968)	(5,000)
Proceeds from sale of business, net	4,108	1,588,779	54,521
Proceeds from settlement escrow	0	0	11,518
Increase in restricted cash and cash equivalents	(831,321)	(747,649)	(633,173)
Decrease in restricted cash and cash equivalents	1,134,734	688,999	869,936
Other investing activities	0	0	12,614
Net cash provided by (used in) investing activities	125,861	(6,244,770)	(771,853)
FINANCING ACTIVITIES:
Proceeds from issuance of notes	0	2,835,000	750,000
Proceeds from issuance of term loans	0	2,800,000	1,525,000
Principal payments on notes	0	(899,875)	0
Principal payments on term loans	(103,625)	(473,376)	(1,430,144)
Proceeds from draw of revolving debt	380,000	525,000	0
Repayments of revolving debt	(605,000)	(300,000)	0
Principal payments on other indebtedness, net	(7,736)	(10,070)	(7,588)
Repurchase of convertible senior subordinated notes	0	(247,760)	(587,803)
Sale of AMSH Inc. mandatorily redeemable preferred shares	0	60,000	0
Redemption of AMS mandatorily redeemable preferred shares	0	(60,000)	0
Payments to settle ordinary share warrants	0	0	(284,454)
Proceeds from the settlement of the hedge on convertible senior subordinated notes due 2015	0	0	356,265
Deferred financing fees	(500)	(125,111)	(62,715)
Payment for contingent consideration	(55,896)	(29,786)	0
Tax benefits of share awards	3,204	21,979	35,188
Payments of tax withholding for restricted shares	(11,500)	(15,398)	(25,081)
Exercise of options	1,952	27,217	41,392
Repurchase of ordinary shares	0	(250,088)	0
Issuance of ordinary shares related to the employee stock purchase plan	5,119	4,299	4,617
Issuance of ordinary shares	0	2,300,000	0
Payments related to the issuance of ordinary shares	0	(66,956)	(4,800)
Cash distributions to noncontrolling interests	0	0	(5,291)
Cash buy-out of noncontrolling interests	0	(39,608)	(1,729)
Net cash (used in) provided by financing activities	(393,982)	6,055,467	302,857
Effect of foreign exchange rate	328	(7,068)	(4,037)
Movement in cash held for sale	(11,744)	997	14,356
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	244,902	(133,348)	(120,901)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	272,348	405,696	526,597
CASH AND CASH EQUIVALENTS, END OF PERIOD	517,250	272,348	405,696
SUPPLEMENTAL INFORMATION:
Cash paid for interest	429,172	284,985	159,492
Cash paid for income taxes	63,983	42,700	36,356
Cash received from income taxes	759,950	162,821	116,819
Cash paid into Qualified Settlement Funds for mesh legal settlements	831,131	743,132	585,165
Cash paid out of Qualified Settlement Funds for mesh legal settlements	1,134,734	649,391	111,454
Other cash distributions for mesh legal settlements	7,830	27,380	26,709
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property, plant and equipment financed by capital leases	716	4,234	4,784
Accrual for purchases of property, plant and equipment	2,676	4,476	11,397
Acquisition financed by ordinary shares	0	2,844,568	2,844,279
Repurchase of convertible senior subordinated notes financed by ordinary shares	$ 0	$ 625,483	$ 55,229

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE 1. DESCRIPTION OF BUSINESS Endo International plc is an Ireland-domiciled, global specialty pharmaceutical company focused on generic and branded pharmaceuticals. We aim to be the premier partner to healthcare professionals and payment providers, delivering an innovative suite of generic and branded drugs to meet patients’ needs. Unless otherwise indicated or required by the context, references throughout to “Endo,” the “Company,” “we,” “our,” or “us” refer to financial information and transactions of Endo International plc and its consolidated subsidiaries thereafter. The accompanying Consolidated Financial Statements of Endo International plc and its subsidiaries have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP).

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation and Basis of Presentation—The Consolidated Financial Statements include the accounts of wholly owned subsidiaries after the elimination of intercompany accounts and transactions.

Reclassifications—Certain prior period amounts have been reclassified to conform to the current period presentation.

The Company has modified its presentation of accounts payable and accrued expenses that had been in effect prior to December 31, 2016. The Company has combined amounts related to accounts payable and accrued expenses in its Consolidated Balance Sheets and Consolidated Statements of Cash Flows. The Company has applied this change retrospectively to all periods presented.

Use of Estimates—The preparation of our Consolidated Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are required in the determination of revenue recognition and sales deductions for estimated chargebacks, rebates, sales incentives and allowances, certain royalties, distribution service fees, returns and allowances. Significant estimates and assumptions are also required when determining the fair value of certain financial instruments, the valuation of long-lived and indefinite-lived intangible assets, goodwill, income taxes, contingencies and share-based compensation. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. Our estimates often are based on complex judgments, probabilities and assumptions that we believe to be reasonable but that are inherently uncertain and unpredictable. For any given individual estimate or assumption made by us, there may also be other estimates or assumptions that are reasonable.

We regularly evaluate our estimates and assumptions using historical experience and other factors, including the economic environment. As future events and their effects cannot be determined with precision, our estimates and assumptions may prove to be incomplete or inaccurate, or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. Market conditions, such as illiquid credit markets, volatile equity markets, dramatic fluctuations in foreign currency rates and economic downturn, can increase the uncertainty already inherent in our estimates and assumptions. We adjust our estimates and assumptions when facts and circumstances indicate the need for change. Those changes generally will be reflected in our Consolidated Financial Statements on a prospective basis. It is possible that other professionals, applying reasonable judgment to the same facts and circumstances, could develop and support a range of alternative estimated amounts. We also are subject to other risks and uncertainties that may cause actual results to differ from estimated amounts, such as changes in the healthcare environment, competition, litigation, legislation and regulations.

Customer, Product and Supplier Concentration—We primarily sell our generic and branded pharmaceuticals to wholesalers, drug store chains, supermarket chains, mass merchandisers, distributors, mail order accounts, hospitals and government agencies. Our wholesalers and distributors purchase products from us and, in turn, supply products to retail drug store chains, independent pharmacies and managed health care organizations. Customers in the managed health care market include health maintenance organizations, nursing homes, hospitals, clinics, pharmacy benefit management companies and mail order customers. Total revenues from direct customers that accounted for 10% or more of our total consolidated revenues during the years ended December 31 are as follows:



	2016		2015		2014
Cardinal Health, Inc.	26	%	21	%	21	%
McKesson Corporation	27	%	31	%	31	%
AmerisourceBergen Corporation	25	%	23	%	16	%

Revenues from these customers are included within our U.S. Generic Pharmaceuticals, U.S. Branded Pharmaceuticals and International Pharmaceuticals segments.

No products accounted for 10% or more of our total revenues during the years ended December 31, 2016, 2015 or 2014.

We have agreements with Novartis Consumer Health, Inc., Novartis AG, Sandoz, Inc., (collectively, Novartis) Teikoku Seiyaku Co., Ltd. (Teikoku), Noramco, Inc. (Noramco), Grünenthal GmbH (Grünenthal) and Jubilant HollisterStier Laboratories LLC (JHS), among others, for the manufacture and supply of several of our existing pharmaceutical products. See Note 14. Commitments and Contingencies for further information.

Revenue Recognition—

Pharmaceutical Products

Our net pharmaceutical product sales consist of revenues from sales of our pharmaceutical products, less estimates for chargebacks, rebates, sales incentives and allowances, certain royalties, distribution service fees, returns and allowances as well as fees for services. We recognize revenue for product sales when title and risk of loss has passed to the customer, which is typically upon delivery to the customer, when estimated provisions for revenue reserves are reasonably determinable, and when collectability is reasonably confirmed. Revenue from the launch of a new or significantly unique product may be deferred until such time that the product has achieved market acceptance. For these products, revenue is typically recognized based on dispensed prescription data and other information obtained prior to and during the period following launch.

Sales Deductions—When we recognize net sales from the sale of our pharmaceutical products, we record an adjustment to revenue for estimated revenue reserves. These provisions are estimated based on historical experience, estimated future trends, estimated customer inventory levels, current contract sales terms with our direct and indirect customers and other competitive factors. If the assumptions we used to calculate these adjustments do not appropriately reflect future activity, our financial position, results of operations and cash flows could be materially impacted.

Research and Development (R&D)—Expenditures for research and development are expensed as incurred. In addition to upfront and milestone payments, total R&D expenses include the costs of discovery research, preclinical development, early- and late-clinical development and drug formulation, as well as clinical trials, medical support of marketed products, other payments under third-party collaborations and contracts and other costs. R&D spending also includes enterprise-wide costs which support our overall R&D infrastructure. Property, plant and equipment that are acquired or constructed for research and development activities and that have alternate future uses are capitalized and depreciated over their estimated useful lives on a straight-line basis. Upfront and milestone payments made to third parties in connection with agreements with third parties are generally expensed as incurred up to the point of regulatory approval. Payments made to third parties subsequent to regulatory approval are generally capitalized and amortized over the remaining useful life of the related product. Amounts capitalized for such payments are included in Other intangibles, net in the Consolidated Balance Sheets.

Cash and Cash Equivalents—The Company considers all highly liquid money market instruments with an original maturity of three months or less when purchased to be cash equivalents. At December 31, 2016, cash equivalents were deposited in financial institutions and consisted of immediately available fund balances and time deposits. The Company maintains its cash deposits and cash equivalents with well-known and stable financial institutions.

Restricted Cash and Cash Equivalents—Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded in Restricted cash and cash equivalents in the Consolidated Balance Sheets. At December 31, 2016, restricted cash and cash equivalents totaled $282.1 million, of which $276.0 million is held in Qualified Settlement Funds (QSFs) for mesh product liability settlement agreements. The restricted cash related to QSFs are for payments related to the Company’s vaginal mesh liability. See Note 14. Commitments and Contingencies for further information relating to the vaginal mesh liability. At December 31, 2015, restricted cash and cash equivalents totaled $585.4 million, of which $579.0 million was held in QSFs for mesh product liability settlement agreements.

Marketable Securities—The Company has equity securities, which consist of investments in the stock of publicly traded companies. For additional information see Note 7. Fair Value Measurements.

Accounts Receivable—Accounts receivable are stated at their net realizable value. The allowance for doubtful accounts against gross accounts receivable reflects the best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available information. In addition, accounts receivable is reduced by certain sales deduction reserves where we have the right of offset with the customer.

Concentrations of Credit Risk—Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, marketable debt securities and accounts receivable. We invest our excess cash in high-quality, liquid money market instruments and time deposits maintained by major U.S. banks and financial institutions. We have not experienced any losses on our cash equivalents.

We perform ongoing credit evaluations of our customers and generally do not require collateral. We have no history of significant losses from uncollectible accounts. Approximately 84% and 77% of our gross trade accounts receivable balance represent amounts due from three customers at December 31, 2016 and 2015, respectively.

We do not expect our current or future credit risk exposures to have a significant impact on our operations. However, there can be no assurance that our business will not experience any adverse impact from credit risk in the future.

Inventories—Inventories consist of finished goods held for distribution, raw materials and work-in-process. Our inventories are stated at the lower of cost or market. Cost is determined by the first-in, first-out method. We write-down inventories to net realizable value based on forecasted demand and market conditions, which may differ from actual results. Inventory that is in excess of the amount expected to be sold within one year is classified as long-term inventory and is recorded in Other Assets in the Consolidated Balance Sheets.

Property, plant and equipment—Property, plant and equipment is stated at cost less accumulated depreciation. Major improvements are capitalized, while routine maintenance and repairs are expensed as incurred. Costs incurred on assets under construction are capitalized as construction is in progress. Depreciation is computed over the estimated useful life of the related assets on a straight-line basis. Leasehold improvements and capital lease assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the terms of their respective leases. Depreciation is not recorded on assets held for sale. Gains and losses on disposals are included in Other (income) expense, net in the Consolidated Statements of Operations.

Depreciation is based on the following estimated useful lives, as of December 31, 2016:



	Range of Useful Lives, from:
Buildings	10 years	to	40 years
Machinery and equipment	2 years	to	20 years
Leasehold improvements	2 years	to	20 years
Computer equipment and software	2 years	to	7 years
Assets under capital lease	Shorter of useful life or lease term
Furniture and fixtures	3 years	to	10 years

Computer Software—The Company capitalizes certain costs incurred in connection with obtaining or developing internal-use software, including external direct costs of material and services, and payroll costs for employees directly involved with the software development. Capitalized software costs are included in Property, plant and equipment, net in the Consolidated Balance Sheets and amortized beginning when the software project is substantially complete and the asset is ready for its intended use. Costs incurred during the preliminary project stage and post-implementation stage, as well as maintenance and training costs, are expensed as incurred.

Lease Accounting—The Company accounts for operating lease transactions by recording rent expense on a straight-line basis over the expected life of the lease, commencing on the date it gains possession of leased property. The Company includes tenant improvement allowances and rent holidays received from landlords and the effect of any rent escalation clauses as adjustments to straight-line rent expense over the expected life of the lease.

Capital lease transactions are reflected as a liability at the inception of the lease based on the present value of the minimum lease payments or, if lower, the fair value of the property. Assets under capital leases are recorded in Property, plant and equipment, net in the Consolidated Balance Sheets and depreciated in a manner similar to other Property, plant and equipment.

Certain construction projects may be accounted for as direct financing arrangements, whereby the Company records, over the construction period, the full cost of the asset in Property, plant and equipment, net in the Consolidated Balance Sheets. A corresponding liability is also recorded, net of leasehold improvements paid for by the Company, and is amortized over the expected lease term through monthly rental payments using an effective interest method. Assets recorded under direct financing arrangements are depreciated over the lease term.

License Rights—The cost of licenses are either expensed immediately or, if capitalized, are recorded at cost, less accumulated amortization and are amortized using the straight-line method over their estimated useful lives ranging from 3 years to 15 years, with a weighted average useful life of approximately 12 years. We determine amortization periods for licenses based on our assessment of various factors impacting estimated useful lives and cash flows of the acquired rights. Such factors include the expected launch date of the product, the strength of the intellectual property protection of the product and various other competitive, developmental and regulatory issues, and contractual terms. Significant changes to any of these factors may result in a reduction in the useful life of the asset and an acceleration of related amortization expense, which could cause our operating income, net income and net income per share to decrease.

Trade names—Acquired trade names are recorded at fair value upon acquisition and, if deemed to have definite lives, are amortized using the straight-line method over their estimated useful lives of approximately 12 years. We determine amortization periods for trade names based on our assessment of various factors impacting estimated useful lives and cash flows from the acquired assets. Such factors include the strength of the trade name and our plans regarding the future use of the trade name. Significant changes to any of these factors may result in a reduction in the useful life of the asset and an acceleration of related amortization expense, which could cause our operating income, net income and net income per share to decrease.

Developed Technology—Acquired developed technology is recorded at fair value upon acquisition and is amortized using the economic benefit model or the straight-line method, over the estimated useful life ranging from 1 year to 20 years for our intangibles relating to continuing operations, with a weighted average useful life of approximately 11 years. We determine amortization periods and method of amortization for developed technology based on our assessment of various factors impacting estimated useful lives and timing and extent of estimated cash flows of the acquired assets. Such factors include the strength of the intellectual property protection of the product and various other competitive and regulatory issues, and contractual terms. Significant changes to any of these factors may result in a reduction in the useful life of the asset and an acceleration of related amortization expense, which could cause our operating income, net income and net income per share to decrease. Amortization expense is not recorded on assets held for sale. The value of these assets is subject to continuing scientific, medical and marketplace uncertainty.

Long-Lived Asset Impairment Testing—Long-lived assets, which include property, plant and equipment and definite-lived intangible assets, are assessed for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. The impairment testing involves comparing the carrying amount of the asset to the forecasted undiscounted future cash flows generated by that asset. In the event the carrying amount of the asset exceeds the undiscounted future cash flows generated by that asset and the carrying amount is not considered recoverable, an impairment exists. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. An impairment loss is recognized in net income in the period that the impairment occurs.

In-Process Research and Development Assets (IPR&D)—The fair value of IPR&D acquired in a business combination is determined based on the present value of each research project’s projected cash flows using an income approach. Future cash flows are predominately based on the net income forecast of each project, consistent with historical pricing, margins and expense levels of similar products. Revenues are estimated based on relevant market size and growth factors, expected industry trends, individual project life cycles and the life of each research project’s underlying patent. In determining the fair value of each research project, expected cash flows are adjusted for the technical and regulatory risk of completion.

IPR&D is initially capitalized and considered indefinite-lived intangible assets subject to annual impairment reviews. The reviews, which occur annually or more frequently upon the occurrence of certain events, requires the determination of the fair value of the respective intangible assets. If the fair value of the intangible assets is less than its carrying amount, an impairment loss is recognized for the difference. For those assets that reach commercialization, the assets are amortized over the expected useful lives.

Goodwill—Goodwill, which represents the excess of purchase price over the fair value of net assets acquired, is carried at cost. Goodwill is not amortized; rather, it is subject to a periodic assessment for impairment by applying a fair value based test. Goodwill is assessed for impairment on an annual basis, as of October 1st of each year or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment model requires a two-step method for determining goodwill impairment. In the first step, we determine the fair value of our reporting units using an appropriate valuation methodology. If the net book value of a reporting unit exceeds its fair value, we would then perform the second step of the impairment test which requires allocation of the reporting unit’s fair value to all of its assets and liabilities using the acquisition method prescribed under authoritative guidance for business combinations. Any residual fair value is allocated to goodwill. An impairment charge is recognized only when the implied fair value of our reporting unit’s goodwill is less than its carrying amount.

Contingencies—The Company is subject to various patent challenges, product liability claims, government investigations and other legal proceedings in the ordinary course of business. Legal fees and other expenses related to litigation are expensed as incurred and included in Selling, general and administrative expenses or Discontinued operations, net of tax in the Consolidated Statements of Operations. Contingent accruals and legal settlements are recorded with a corresponding charge to Litigation-related and other contingencies, net or Discontinued operations, net of tax in the Consolidated Statements of Operations when the Company determines that a loss is both probable and reasonably estimable. Due to the fact that legal proceedings and other contingencies are inherently unpredictable, our assessments involve significant judgment regarding future events. The Company records a receivable from its product liability insurance carriers only when the resolution of any dispute has been reached and realization of the potential claim for recovery is considered probable.

Contingent Consideration—Certain of the Company’s business acquisitions involve the potential for future payment of consideration that is contingent upon the achievement of operational and commercial milestones and royalty payments on future product sales. The fair value of contingent consideration liabilities is determined at the acquisition date using unobservable inputs. These inputs include the estimated amount and timing of projected cash flows, the probability of success (achievement of the contingent event) and the risk-adjusted discount rate used to present value the probability-weighted cash flows. Subsequent to the acquisition date, at each reporting period, the contingent consideration liability is remeasured at current fair value with changes recorded in earnings. Changes in any of the inputs may result in a significantly different fair value adjustment.

Share Repurchases—The Company accounts for the repurchase of ordinary shares at par value. Under applicable Irish law, ordinary shares repurchased are retired and not displayed separately as treasury stock. Upon retirement of the ordinary shares, the Company records the difference between the weighted average cost of such ordinary shares and the par value of the ordinary shares as an adjustment to Accumulated deficit in the Consolidated Balance Sheets.

Advertising Costs—Advertising costs are expensed as incurred and included in Selling, general and administrative expenses in the Consolidated Statements of Operations and amounted to $47.9 million, $57.9 million and $28.1 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Cost of Revenues—Cost of revenues includes all costs directly related to bringing both purchased and manufactured products to their final selling destination. It includes purchasing and receiving costs, direct and indirect costs to manufacture products, including direct materials, direct labor, and direct overhead expenses necessary to acquire and convert purchased materials and supplies into finished goods. Cost of revenues also includes royalties paid or owed by Endo on certain in-licensed products, inspection costs, depreciation, amortization of intangible assets, warehousing costs, freight charges, costs to operate our equipment, and other shipping and handling activity.

Share-Based Compensation—Share-based compensation for employees and non-employee directors is measured at the grant date based on the estimated fair value of the award and is recognized as an expense over the requisite service period. Share-based compensation expense is reduced for estimated future forfeitures. These estimates are revised in future periods if actual forfeitures differ from the estimates. Changes in forfeiture estimates impact compensation expense in the period in which the change in estimate occurs.

Foreign Currency Translation—The Company's operations utilize the U.S. dollar (USD) or local currency as the functional currency, where applicable. The company identifies its separate and distinct foreign entities and groups the foreign entities into two categories: 1) extension of the parent (USD functional currency) and 2) self-contained (local functional currency). If a foreign entity does not align with either category, factors are evaluated and a judgment is made to determine the functional currency.

For foreign entities where the USD is the functional currency, all foreign currency-denominated asset and liability amounts are re-measured into USD at end-of-period exchange rates, except for inventories, prepaid expenses, property, plant and equipment, goodwill and other intangible assets, which are re-measured at historical rates. Foreign currency income and expenses are re-measured at average exchange rates in effect during the year, except for expenses related to balance sheet amounts re-measured at historical exchange rates. Exchange gains and losses arising from re-measurement of foreign currency-denominated monetary assets and liabilities are included in income in the period in which they occur.

For foreign entities where the local currency is the functional currency, assets and liabilities denominated in local currencies are translated into USD at end-of-period exchange rates and the resultant translation adjustments are reported, net of their related tax effects, as a component of accumulated other comprehensive income (loss) in equity. Assets and liabilities denominated in other than the local currency are re-measured into the local currency prior to translation into USD and the resultant exchange gains or losses are included in income in the period in which they occur. Income and expenses are translated into USD at average exchange rates in effect during the period.

Income Taxes—The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such a determination, the Company considers all available positive and negative evidence, including projected future taxable income, tax-planning strategies and results of recent operations. In the event that the Company were to determine that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income tax.

The Company records uncertain tax positions in accordance with Accounting Standards Codification (ASC) Topic 740, Income Taxes, on the basis of a two-step process whereby the Company first determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and then measures those tax positions that meet the more-likely-than-not recognition threshold. The Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statements of Operations. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets.

Comprehensive Income—Comprehensive income includes all changes in equity during a period except those that resulted from investments by or distributions to a company’s shareholders. Other comprehensive income or loss refers to revenues, expenses, gains and losses that are included in comprehensive income, but excluded from net income as these amounts are recorded directly as an adjustment to shareholders’ equity.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards update (ASU) No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09). ASU 2014-09 represents a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled to receive in exchange for those goods or services. This ASU sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year, but permits companies to adopt one year earlier if they choose (i.e., the original effective date). As such, ASU 2014-09 will be effective for annual and interim reporting periods beginning after December 15, 2017. In March and April 2016, the FASB issued ASU No. 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Consideration (Reporting Revenue Gross versus Net)” and ASU No. 2016-10 “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” respectively, which clarifies the guidance on reporting revenue as a principal versus agent, identifying performance obligations and accounting for intellectual property licenses. In addition, in May 2016, the FASB issued ASU No. 2016-12 “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” which amends certain narrow aspects of Topic 606, and in December 2016, the FASB issued ASU No. 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” which amends certain narrow aspects of Topic 606.

The Company will adopt the new revenue recognition standards on January 1, 2018. The Company has established a cross-functional implementation team consisting of representatives from across its business segments. The Company is currently in the process of performing a diagnostic assessment of the impact of the standard on its contract portfolio by reviewing the Company’s current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts. In addition, during 2017 the Company plans to identify and implement, if necessary, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard. The implementation team intends to report the findings and progress of the project to the Company’s management and the Audit Committee throughout the remainder of 2017. The Company is currently evaluating the impact of ASU 2014-09 on the Company’s consolidated results of operations and financial position. In addition, the two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company is currently evaluating which transition method it will elect.

In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory” (ASU 2015-11). ASU 2015-11 states that an entity should measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For public entities, ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this update should be applied prospectively and early application is permitted. The Company does not expect the adoption of ASU 2015-11 to impact the Company’s consolidated results of operations and financial position.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (ASU 2016-02). ASU 2016-02 establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. This guidance results in a more faithful representation of the rights and obligations arising from operating and capital leases by requiring lessees to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2016-02 on the Company’s consolidated results of operations and financial position.

In March 2016, the FASB issued ASU No. 2016-09 “Improvements to Employee Share-Based Payment Accounting” (ASU 2016-09). ASU 2016-09 changes how companies account for certain aspects of share-based payments to employees including: (a) requiring all income tax effects of awards to be recognized in the income statement, rather than in additional paid in capital, when the awards vest or are settled, (b) eliminating the requirement that excess tax benefits be realized before companies can recognize them, (c) requiring companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, (d) increasing the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation, (e) requiring an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on its statement of cash flows and (f) electing whether to account for forfeitures of share-based payments by (1) recognizing forfeitures of awards as they occur or (2) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as is currently required. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company will adopt the new guidance on a prospective basis on January 1, 2017. The Company expects the primary impact of adoption to be the recognition of excess tax benefits and deficiencies within income taxes on continuing operations rather than within additional paid-in capital. If we had adopted the updated guidance in 2016, our income tax benefit would have decreased by $0.7 million, our effective tax rate would have decreased by a negligible amount and our diluted earnings per share attributable to Endo International plc shareholders in 2016 would not have changed. In addition, upon adoption the Company will retrospectively adopt the provision of this guidance related to changes to the statement of cash flows in any of the periods presented. The table below presents the effect on the Company’s consolidated statement of cash flows for each of the years ended December 31, 2016, 2015 and 2014. These amounts are not necessarily indicative of amounts that the Company will recognize in future years related to the excess income tax benefits or deficiencies nor the cash paid for withholding taxes.



Year ended December 31, (in millions):	As Reported			Effect of Adoption			Upon Adoption
2016:
Net cash provided by operating activities	$	524,439		$	3,204		$	527,643
Net cash (used in) financing activities	$	(393,982	)	$	(3,204	)	$	(397,186	)
2015:
Net cash provided by (used in) operating activities	$	62,026		$	21,979		$	84,005
Net cash provided by financing activities	$	6,055,467		$	(21,979	)	$	6,033,488
2014:
Net cash provided by (used in) operating activities	$	337,776		$	35,188		$	372,964
Net cash provided by financing activities	$	302,857		$	(35,188	)	$	267,669

The Company expects to continue estimating forfeitures to determine the amount of compensation cost to be recognized in each period. None of the other provisions in this amended guidance are expected to have a significant impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15 “Classification of Certain Cash Receipts and Cash Payments” (ASU 2016-15). ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period but all of ASU 2016-15 must be adopted in the same period. The Company is currently evaluating the impact of ASU 2016-15 on the Company’s consolidated statement of cash flows.

In October 2016, the FASB issued ASU No. 2016-16 “Intra-Entity Transfers of Assets Other Than Inventory” (ASU 2016-16). ASU 2016-16 states that an entity should recognize the income tax consequences when an intra-entity transfer of an asset other than inventory occurs. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted as long as it is adopted in the first interim period of a fiscal year beginning after December 15, 2016. During the year ended December 31, 2016, the Company completed a legal entity restructuring as part of its continuing integration of its acquired businesses that was accounted for as an intra-entity transfer of assets. As a result, the Company recorded a current deferred charge of $34.3 million and a non-current deferred charge of $348.8 million in the Consolidated Balance Sheet at December 31, 2016 within Prepaid expenses and other current assets and Other assets, respectively. The impact of adopting the accounting guidance would be the elimination of approximately $25 million of the current deferred charge and all of the non-current deferred charge as an adjustment to retained earnings. Additionally, upon adoption, the Company would record additional net long-term deferred tax assets offset by a corresponding valuation allowance.

In November 2016, the FASB issued ASU No. 2016-18 “Statement of Cash Flows (Topic 230) - Restricted Cash” (ASU 2016-18). ASU 2016-18 states that a statement of cash flows should explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period, and all updates should be applied using a retrospective transition method. The Company is currently evaluating the impact of ASU 2016-18 on the Company’s consolidated statement of cash flows.

In January 2017, the FASB issued ASU No. 2017-01 “Business Combinations (Topic 805) - Clarifying the Definition of a Business” (ASU 2017-01). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update provide a screen to determine when an integrated set of assets and activities (collectively referred to as a “set”), is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments in this update should be applied prospectively on or after the effective date. Early application of the amendments in this update is allowed as follows: 1) for transactions for which the acquisition date occurs before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance; 2) for transactions in which a subsidiary is deconsolidated or a group of assets is derecognized that occur before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The Company plans to early adopt this new standard as of January 1, 2017 and expects that ASU 2017-01 will result in fewer Company transactions meeting the definition of a business.

In January 2017, the FASB issued ASU No. 2017-04 “Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment” (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under ASU 2017-04, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and an entity should apply the amendments of ASU 2017-04 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company plans to adopt this standard as of January 1, 2017 and will eliminate Step 2 from its goodwill tests.

Discontinued Operations and Held For Sale

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND HELD FOR SALE

NOTE 3. DISCONTINUED OPERATIONS AND HELD FOR SALE

American Medical Systems

On February 24, 2015, the Company’s Board of Directors (Board of Directors) approved a plan to sell the Company’s American Medical Systems Holdings, Inc. (AMS) business, which comprised the entirety of our former Devices segment. The AMS business was comprised of the Men’s Health and Prostate Health business as well as the Women’s Health business (referred to herein as Astora). On August 3, 2015, the Company sold the Men’s Health and Prostate Health business to Boston Scientific Corporation (Boston Scientific) for $1.65 billion, with $1.60 billion paid upfront in cash and $50.0 million in cash contingent on Boston Scientific achieving certain product revenue milestones in the Men’s Health and Prostate Health business in 2016. The milestones related to the $50.0 million contingent payment were not achieved. In addition, Boston Scientific paid $60.0 million in exchange for 60,000 shares of AMS Series B Non-Voting Preferred Stock (the Series B Senior Preferred Stock) sold by our subsidiary Endo Pharmaceuticals Inc. (EPI). On December 11, 2015, the Company repurchased the Series B Senior Preferred Stock from Boston Scientific Corporation for $61.6 million.

In addition to selling the Men’s Health and Prostate Health business in 2015, as of December 31, 2015 and continuing into 2016, the Company was actively pursuing a sale of Astora with the Company in active negotiations with multiple potential buyers. The majority of the remaining assets and liabilities of the AMS business, which were related to Astora, were classified as held for sale in the Consolidated Balance Sheet as of December 31, 2015 in the Company’s Form 10-K filed with the Securities and Exchange Commission (SEC) on February 29, 2016. Certain of AMS’s assets and liabilities, primarily with respect to its product liability accrual related to vaginal mesh cases, the related QSFs and certain intangible and fixed assets, were not classified as held for sale based on management’s expectation that these assets and liabilities would remain with the Company.

On February 24, 2016, the Board of Directors resolved to wind-down Astora as it did not align with the Company’s strategic direction and to reduce Astora’s exposure to mesh-related product liability. Astora conducted a wind-down process to transition physicians to alternative products during the first quarter of 2016. Astora ceased business operations on March 31, 2016. As a result, as of March 31, 2016 and periods thereafter, the remaining assets and liabilities of the AMS business, which were related to the Astora business, were no longer classified as held for sale in the Consolidated Balance Sheets. In accordance with applicable accounting guidance, the Company also reclassified the Astora assets and liabilities previously presented as held for sale as of December 31, 2015 to held and used on its Consolidated Balance Sheets.

The operating results of the AMS business are reported as Discontinued operations, net of tax in the Consolidated Statements of Operations for all periods presented.

In connection with classifying AMS as held for sale during 2015, the Company was required to compare the estimated fair values of the underlying disposal groups, less the costs to sell, to the respective carrying amounts. As a result of this analysis, the Company recorded a combined asset impairment charge of $222.8 million during the three months ended March 31, 2015, which was classified as Discontinued operations, net of tax in the Consolidated Statements of Operations. We estimated the fair value of the Men’s Health and Prostate Health division based on the agreed-upon purchase price with Boston Scientific. The fair value of Astora was estimated based on contemporaneous expressions of interest from third parties. Subsequently, at the time of the sale of the Men’s Health and Prostate Health component in August 2015, the Company recorded a gain based on the difference between the net proceeds received and the net book value of the assets sold of approximately $13.6 million, which included an adjustment of $25.7 million relating to amounts transferred from foreign currency translation adjustments and included in the determination of net income for the period as a result of the sale, which decreased the gain. This amount is included in Discontinued operations, net of tax in the Consolidated Statements of Operations for the year ended December 31, 2015.

During the three months ended September 30, 2015 and December 31, 2015, the Company compared the estimated fair value of Astora, less the costs to sell, to its respective carrying amount. As a result of these analyses, the Company recorded total additional asset impairment charges of $7.9 million for the year ended December 31, 2015, which were classified as Discontinued operations, net of tax in the Consolidated Statements of Operations.

In addition, as a result of determining that the sale of the AMS disposal groups was probable as of December 31, 2015, the Company re-assessed its permanent reinvestment assertion for certain components of the AMS business and recognized a corresponding tax benefit of $161.8 million during the year ended December 31, 2015, which was recorded as Income tax benefit (a component of (loss) income from continuing operations) in the Consolidated Statements of Operations. In addition, due to the overall differences between the book and tax basis of the underlying assets sold during the third quarter of 2015, the Company recognized a tax benefit of $157.4 million during the year ended December 31, 2015, from Discontinued operations.

As a result of the Astora wind-down initiative announced in the first quarter of 2016, the Company incurred asset impairment charges of $21.3 million during the year ended December 31, 2016. See below for discussion of our material wind-down initiatives.

The following table provides the operating results of AMS Discontinued operations, net of tax for the years ended December 31 (in thousands):



	2016			2015			2014
Revenue	$	30,101		$	305,256		$	496,505
Litigation related and other contingencies, net	$	20,115		$	1,107,752		$	1,273,358
Asset impairment charges	$	21,328		$	230,703		$	—
Gain on sale of business	$	—		$	13,550		$	—
Loss from discontinued operations before income taxes	$	(123,164	)	$	(1,352,344	)	$	(1,225,576	)
Income tax benefit	$	—		$	(157,418	)	$	(440,107	)
Discontinued operations, net of tax	$	(123,164	)	$	(1,194,926	)	$	(785,469	)

The following table provides the Depreciation and amortization and Purchases of property, plant and equipment of AMS for the years ended December 31 (in thousands):



	2016			2015			2014
Cash flows from discontinued operating activities:
Net loss	$	(123,164	)	$	(1,194,926	)	$	(785,469	)
Depreciation and amortization	$	—		$	11,555		$	70,275
Net cash used in discontinued investing activities:
Purchases of property, plant and equipment	$	(138	)	$	(2,709	)	$	(4,423	)

Astora Restructuring

The Astora wind-down process includes a restructuring initiative implemented during the three months ended March 31, 2016, which includes the reduction of the Astora workforce consisting of approximately 250 employees. Under this restructuring initiative, separation costs are expensed over the requisite service period, if any, while retention is being expensed ratably over the respective retention period.

As a result of the Astora restructuring initiative, the Company incurred expenses of $60.9 million during the year ended December 31, 2016 consisting of employee separation and other benefit-related costs, asset impairment charges, contract termination charges and other general restructuring costs. There were no restructuring expenses related to this initiative during the year ended December 31, 2015. The Company anticipates there will be no significant additional pre-tax restructuring expenses related to employee separation and other benefit-related costs, contract termination charges and other restructuring costs. The majority of these actions were completed as of September 30, 2016 and substantially all cash payments will be made by June 30, 2017. These restructuring costs are included in Discontinued operations in the Consolidated Statements of Operations.

A summary of expenses related to the Astora restructuring initiative is included below for the year ended December 31, 2016 (in thousands):



	2016
Employee separation, retention and other benefit-related costs	$	20,476
Asset impairment charges	21,328
Contract termination charges	8,074
Other wind down costs	10,972
Total	$	60,850

The liability related to the Astora restructuring initiative totaled $5.5 million as of December 31, 2016 and is included in Accounts payable and accrued expenses in the Consolidated Balance Sheets. Changes to this accrual during the year ended December 31, 2016 were as follows (in thousands):



	Employee Separation, Retention and Other Benefit-Related Costs			Contract Termination Charges			Other Restructuring Costs			Total
Liability balance as of January 1, 2016	$	—		$	—		$	—		$	—
Expenses	20,476			8,074			5,798			34,348
Cash distributions	(16,621		)	(6,413		)	(5,798		)	(28,832		)
Liability balance as of December 31, 2016	$	3,855		$	1,661		$	—		$	5,516

Litha

During the fourth quarter of 2016, the Company initiated a process to sell its Litha Healthcare Group Limited and related Sub-Sahara African business assets (Litha) and on February 27, 2017, the Company entered into a definitive agreement to sell Litha to Acino Pharma AG for up to $100 million in cash. See Note 22. Subsequent Events for further discussion. The assets and liabilities of Litha are classified as held for sale in the Consolidated Balance Sheet as of December 31, 2016.

The following table provides the components of Assets and Liabilities held for sale of Litha as of December 31, 2016 (in thousands):



	December 31, 2016
Current assets	$	50,167
Property, plant and equipment	3,527
Other intangibles, net	29,950
Other assets	11,343
Assets held for sale	$	94,987
Current liabilities	$	18,642
Deferred taxes	—
Other liabilities	5,696
Liabilities held for sale	$	24,338

Given that the sale of Litha does not represent a strategic shift in the Company’s business, the Company has not classified the operations of this business as discontinued.

HealthTronics

On December 28, 2013, the Board of Directors approved a plan to sell the HealthTronics, Inc. (HealthTronics) business and the Company entered into a definitive agreement to sell the business on January 9, 2014 to Altaris Capital Partners LLC for an upfront cash payment of $85.0 million, subject to cash and other working capital adjustments. During the three months ended March 31, 2015, we received additional cash payments of $4.7 million from the purchaser of HealthTronics. The sale was completed on February 3, 2014.

In 2014, the Company recorded a net gain of $3.6 million, representing the carrying amount of the assets sold less the amount of the net proceeds, including the $4.7 million described above, which the Company became entitled to receive during the fourth quarter of 2014.

The operating results of this business are reported as Discontinued operations, net of tax, in the Consolidated Statements of Operations for the year ended December 31, 2014.

The following table provides the operating results of HealthTronics Discontinued operations, net of tax for the year ended December 31, 2014 (in thousands).



	2014
Revenue	$	14,443
Income from discontinued operations before income taxes	$	6,434
Income tax expense	$	757
Discontinued operations, net of tax	$	5,677

There were no Assets or Liabilities held for sale relating to HealthTronics included in the Consolidated Balance Sheets as of December 31, 2016 and 2015.

- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Restructuring

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

RESTRUCTURING

NOTE 4. RESTRUCTURING

U.S. Generic Pharmaceuticals Restructuring

2015 U.S Generic Pharmaceuticals Restructuring

In connection with the acquisition of Par Pharmaceutical Holdings, Inc. and its subsidiaries (together herein Par) on September 25, 2015, we implemented cost-rationalization and integration initiatives to capture operating synergies and generate cost savings across the Company. These measures included realigning the Company’s U.S. Generic Pharmaceuticals segment sales, sales support, management activities and staffing, which resulted in separation benefits to certain U.S. Generic Pharmaceuticals employees. The cost reduction initiatives included a reduction in headcount of approximately 6% of the U.S. Generic Pharmaceuticals workforces. Under this restructuring initiative (the 2015 U.S. Generic Pharmaceuticals restructuring initiative), separation costs are expensed over the requisite service period, if any, while retention is expensed ratably over the respective retention period.

As a result of the 2015 U.S. Generic Pharmaceuticals restructuring initiative, the Company incurred restructuring expenses of $5.0 million and $23.6 million during the years ended December 31, 2016 and 2015, respectively, consisting of employee separation and other benefit-related costs. The Company does not anticipate any further restructuring expenses related to employee separation and other benefit-related costs. These actions were completed by October 31, 2016. In addition, the Company anticipates there will be additional restructuring expenses of approximately $2.5 million related to accelerated depreciation on certain assets. These restructuring costs are allocated to the U.S. Generic Pharmaceuticals segment, and are primarily included in Selling, general and administrative expenses in the Consolidated Statements of Operations.

The liability related to the 2015 U.S. Generic Pharmaceuticals restructuring initiative totaled $3.3 million and $17.9 million at December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, this liability is included in Accounts payable and accrued expenses in the Consolidated Balance Sheets. Changes to this accrual during the years ended December 31, 2016 and 2015 were as follows (in thousands):



	Total
Liability balance as of January 1, 2015	$	—
Expenses	23,591
Cash distributions	(5,677		)
Liability balance as of January 1, 2016	$	17,914
Expenses	5,010
Cash distributions	(19,655		)
Liability balance as of December 31, 2016	$	3,269

2016 U.S Generic Pharmaceuticals Restructuring

As part of the ongoing U.S. Generic Pharmaceuticals integration efforts, in May 2016 we announced a restructuring initiative to optimize our product portfolio and rationalize our manufacturing sites to expand product margins (the 2016 U.S. Generic Pharmaceuticals restructuring initiative). These measures include certain cost savings initiatives, including a reduction in headcount and the disposal of our Charlotte, North Carolina manufacturing facility (the Charlotte facility). On October 31, 2016, we entered into a definitive agreement to sell the Charlotte facility for proceeds of $14 million. The Company recorded an impairment charge of $6.9 million during the fourth quarter of 2016 related to fixed assets associated with the sale. The transaction closed in January 2017 and the assets and liabilities of the Charlotte facility were classified as held for sale in the accompanying Consolidated Balance Sheet as of December 31, 2016.

As a result of the 2016 U.S. Generic Pharmaceuticals restructuring initiative, the Company has incurred total restructuring expenses of $173.9 million through December 31, 2016 and expects to incur additional restructuring-related expenses of approximately $1.0 million consisting of accelerated depreciation, employee separation and other benefit-related costs and certain other charges. The Company anticipates these actions will be completed by September 2017, with substantially all cash payments made by the end of 2017. Under this restructuring initiative, separation costs are expensed ratably over the requisite service period, as applicable.

Restructuring charges of $173.9 million recorded during the year ended December 31, 2016, consisted of certain intangible asset impairment charges of $107.2 million, charges to increase excess inventory reserves of $33.3 million, charges relating to employee separation and other benefit-related costs of $17.0 million, accelerated depreciation of $10.2 million and other charges of $6.2 million. These charges are included in the U.S. Generic Pharmaceuticals segment and are included in Asset impairment charges, Cost of revenues, and Selling, general and administrative expenses in the Consolidated Statements of Operations.

The liability related to the 2016 U.S. Generic Pharmaceuticals restructuring initiative totaled $9.9 million at December 31, 2016 and is included in Accounts payable and accrued expenses in the Consolidated Balance Sheets. Changes to the accrual during the year ended December 31, 2016 were as follows (in thousands):



	Total
Liability balance as of January 1, 2016	$	—
Expenses	16,983
Cash distributions	(7,044		)
Liability balance as of December 31, 2016	$	9,939

2016 U.S. Branded Pharmaceutical Restructuring

In December 2016, the Company announced that it was terminating its worldwide license and development agreement with BioDelivery Sciences International, Inc. (BDSI) for BELBUCA™ and returning the product to BDSI. This transaction closed on January 6, 2017. As a result of this announcement and a comprehensive assessment of its product portfolio, the Company restructured its U.S. Branded Pharmaceuticals segment sales organization during the fourth quarter of 2016 (the 2016 U.S. Branded restructuring initiative). This restructuring was comprised of certain cost savings initiatives, including the elimination of an approximate 375-member U.S. Branded pain field sales force and the termination of certain contracts. The Company’s legacy pain portfolio products will be managed as mature brands going forward.

As a result of the 2016 U.S. Branded restructuring initiative, the Company incurred total pre-tax charges of approximately $61.5 million during the fourth quarter of 2016. These charges consisted of a non-cash intangible asset impairment charge of approximately $36.8 million, employee separation and other benefit-related costs of $16.5 million, early contract termination fees of $5.2 million, and $3.0 million of inventory write-offs. These actions were completed by December 31, 2016 and substantially all of the cash payments are anticipated to be made by the end of 2017. These charges are included in the U.S. Branded Pharmaceuticals segment and are included in Asset impairment charges, Cost of revenues, and Selling, general and administrative expenses in the Consolidated Statements of Operations. The Company does not anticipate there will be additional material pre-tax restructuring expenses related to this initiative.

The liability related to the 2016 U.S. Branded Pharmaceutical restructuring initiative totaled $21.8 million at December 31, 2016 and is included in Accounts payable and accrued expenses in the Consolidated Balance Sheets. Changes to the accrual during the year ended December 31, 2016 were as follows (in thousands):



	Employee Separation and Other Benefit-Related Costs		Contract Termination Charges		Total
Liability balance as of January 1, 2016	$	—	$	—	$	—
Expenses	16,544		5,224		21,768
Cash distributions	—		—		—
Liability balance as of December 31, 2016	$	16,544	$	5,224	$	21,768

Auxilium Restructuring

In connection with the acquisition of Auxilium Pharmaceuticals, Inc. (subsequently converted to Auxilium Pharmaceuticals LLC hereafter referred to as Auxilium) on January 29, 2015, the Company implemented cost-rationalization and integration initiatives to capture operating synergies and generate cost savings across the Company (the Auxilium restructuring initiative). These measures included realigning our sales, sales support, management activities and staffing, which included separation benefits to former Auxilium employees, in addition to the closing of duplicative facilities. The cost reduction initiatives included a reduction in headcount of approximately 40% of the former Auxilium workforce. For former Auxilium employees that agreed to continue employment with the Company for a merger transition period, the separation costs payable upon completion of their retention period were expensed over their respective retention period.

As a result of the Auxilium restructuring initiative, the Company incurred restructuring expenses of $41.9 million during the year ended December 31, 2015, consisting of $26.7 million of employee severance and other benefit-related costs. The expenses were also attributable to certain charges related to our Auxilium subsidiary’s former corporate headquarters in Chesterbrook, Pennsylvania, including $7.0 million of asset impairment charges on certain related leasehold improvements during the first quarter of 2015, and $7.9 million recorded upon the facility’s cease use date, representing the liability for our remaining obligations under the respective lease agreement, net of estimated sublease income, during the first quarter of 2015. These restructuring costs are included in the U.S. Branded Pharmaceuticals segment, and are primarily included in Selling, general and administrative costs and expenses in the Consolidated Statements of Operations. There were no expenses associated with this restructuring for the year ended December 31, 2016 and the Company does not anticipate any additional pre-tax restructuring expenses. A summary of expenses related to the Auxilium restructuring initiatives is included below for the year ended December 31, 2015 (in thousands):



	December 31, 2015
Employee Separation and Other Benefit-Related Costs	$	26,696
Asset Impairment Charges	7,000
Other Restructuring Costs	8,215
Total	$	41,911

Substantially all employee separation and other benefit-related costs cash payments relating to this initiative were made by the end of 2016 and the remainder of the cash payments will be made over the remaining lease term of Auxilium’s former corporate headquarters in Chesterbrook, Pennsylvania.

The liability related to the Auxilium restructuring initiative totaled $5.5 million and $12.3 million at December 31, 2016 and 2015, respectively, and is included in Accounts payable and accrued expenses and Other liabilities in the Consolidated Balance Sheets. Changes to this accrual during the year ended December 31, 2016 were as follows (in thousands):



	Employee Separation and Other Benefit-Related Costs			Other Restructuring Costs			Total
Liability balance as of January 1, 2015	$	—		$	—		$	—
Expenses	26,696			8,215			34,911
Cash distributions	(21,343		)	(1,305		)	(22,648		)
Liability balance as of January 1, 2016	$	5,353		$	6,910		$	12,263
Cash distributions	(