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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________________________ 
FORM 10-Q
____________________________________________________________________________________________ 
(Mark One)
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2020
or
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM                          TO
Commission File Number: 001-36326
____________________________________________________________________________________________
Endo International plc
(Exact name of registrant as specified in its charter)
____________________________________________________________________________________________
Ireland
68-0683755
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
First Floor, Minerva House, Simmonscourt Road
Ballsbridge, Dublin 4,
Ireland
Not Applicable
(Address of Principal Executive Offices)
(Zip Code)
011-353-1-268-2000
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes
No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).Yes
No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes
No
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Ordinary shares, nominal value $0.0001 per shareENDPThe Nasdaq Global Select Market
The number of Ordinary shares, nominal value $0.0001 per share outstanding as of July 30, 2020 was 229,816,005.



ENDO INTERNATIONAL PLC
INDEX
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FORWARD-LOOKING STATEMENTS
Statements contained or incorporated by reference in this document contain information that includes or is based on “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). Forward-looking statements include, without limitation, estimated future results of operations, estimates of future revenues, future expenses, future net income and future net income per share, as well as statements regarding future financing activities, the impact of the novel strain of coronavirus referred to as COVID-19 on the health and welfare of our employees and on our business, including any response to COVID-19 such as anticipated return to historical purchasing decisions by customers, the economic impact of COVID-19, changes in consumer spending, decisions to engage in certain medical procedures, future governmental orders that could impact our operations and the ability of our manufacturing facilities and suppliers to fulfill their obligations to us, and any other statements that refer to Endo’s expected, estimated or anticipated future results. We have tried, whenever possible, to identify such statements by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “project,” “forecast,” “will,” “may” or similar expressions. We have based these forward-looking statements on our current expectations, assumptions and projections about the growth of our business, our financial performance and the development of our industry. Because these statements reflect our current views concerning future events, these forward-looking statements involve risks and uncertainties including, without limitation, the risks related to the impact of COVID-19 (such as, without limitation, the scope and duration of the pandemic and the resulting economic crisis and levels of unemployment, governmental actions and restrictive measures implemented in response, material delays and cancellations of certain medical procedures, potential manufacturing and supply chain disruptions and other potential impacts to the business as a result of COVID-19) and the other risks and uncertainties more fully described under the caption “Risk Factors” in Part II, Item 1A of this document, in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (SEC) on February 26, 2020 (the Annual Report) and in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 filed with the SEC on May 7, 2020 (the First Quarter 2020 Form 10-Q). These risks and uncertainties, many of which are outside of our control, and any other risks and uncertainties that we are not currently able to predict or identify, individually or in the aggregate, could have a material adverse effect on our business, financial condition, results of operations and cash flows and could cause our actual results to differ materially and adversely from those expressed in forward-looking statements contained or incorporated by reference in this document. Additionally, the prolonged impact of COVID-19 could heighten the impact of one or more of such risk factors.
We do not undertake any obligation to update our forward-looking statements after the date of this document for any reason, even if new information becomes available or other events occur in the future, except as may be required under applicable securities laws. You are advised to consult any further disclosures we make on related subjects in our reports filed with the SEC and with securities regulators in Canada on the System for Electronic Document Analysis and Retrieval. Also note that, in Part II, Item 1A of this document, in Part I, Item 1A of the Annual Report and in Part II, Item 1A of the First Quarter 2020 Form 10-Q, and as otherwise enumerated herein, we provide a cautionary discussion of the risks, uncertainties and possibly inaccurate assumptions relevant to our business. These are factors that, individually or in the aggregate, we think could cause our actual results to differ materially from expected and historical results. We note these factors for investors as permitted by Section 27A of the Securities Act and Section 21E of the Exchange Act. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider this to be a complete discussion of all potential risks or uncertainties.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENDO INTERNATIONAL PLC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands, except share and per share data)
June 30, 2020December 31, 2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$1,780,087  $1,454,531  
Restricted cash and cash equivalents180,730  247,457  
Accounts receivable, net271,893  467,953  
Inventories, net330,540  327,865  
Prepaid expenses and other current assets55,813  40,845  
Income taxes receivable67,081  47,567  
Total current assets$2,686,144  $2,586,218  
PROPERTY, PLANT AND EQUIPMENT, NET489,668  504,865  
OPERATING LEASE ASSETS47,535  51,700  
GOODWILL3,560,011  3,595,184  
OTHER INTANGIBLES, NET2,281,172  2,571,267  
DEFERRED INCOME TAXES2,192  2,192  
OTHER ASSETS98,412  78,101  
TOTAL ASSETS$9,165,134  $9,389,527  
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses$756,364  $899,949  
Current portion of legal settlement accrual418,877  513,005  
Current portion of operating lease liabilities11,379  10,763  
Current portion of long-term debt34,150  34,150  
Income taxes payable1,641  2,422  
Total current liabilities$1,222,411  $1,460,289  
DEFERRED INCOME TAXES28,170  31,703  
LONG-TERM DEBT, LESS CURRENT PORTION, NET8,302,595  8,359,899  
OPERATING LEASE LIABILITIES, LESS CURRENT PORTION42,673  48,299  
OTHER LIABILITIES284,152  355,881  
COMMITMENTS AND CONTINGENCIES (NOTE 12)
SHAREHOLDERS' DEFICIT:
Euro deferred shares, $0.01 par value; 4,000,000 shares authorized and issued at both June 30, 2020 and December 31, 2019
45  45  
Ordinary shares, $0.0001 par value; 1,000,000,000 shares authorized; 229,798,823 and 226,802,609 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively
23  23  
Additional paid-in capital8,924,694  8,904,692  
Accumulated deficit(9,411,726) (9,552,214) 
Accumulated other comprehensive loss(227,903) (219,090) 
Total shareholders' deficit$(714,867) $(866,544) 
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT$9,165,134  $9,389,527  
See accompanying Notes to Condensed Consolidated Financial Statements.
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ENDO INTERNATIONAL PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars and shares in thousands, except per share data)
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
TOTAL REVENUES, NET$687,588  $699,727  $1,507,993  $1,420,138  
COSTS AND EXPENSES:
Cost of revenues336,096  388,208  724,895  780,117  
Selling, general and administrative173,258  152,297  340,026  303,420  
Research and development30,495  26,348  62,110  59,834  
Litigation-related and other contingencies, net(8,572) 10,315  (25,748) 10,321  
Asset impairment charges  88,438  97,785  253,886  
Acquisition-related and integration items, net6,045  (5,507) 18,507  (43,008) 
Interest expense, net129,164  134,809  262,041  267,484  
Gain on extinguishment of debt      (119,828) 
Other (income) expense, net(4,150) (597) (18,124) 4,205  
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX$25,252  $(94,584) $46,501  $(96,293) 
INCOME TAX EXPENSE (BENEFIT)7,642  3,468  (128,690) 14,371  
INCOME (LOSS) FROM CONTINUING OPERATIONS$17,610  $(98,052) $175,191  $(110,664) 
DISCONTINUED OPERATIONS, NET OF TAX (NOTE 3)(7,052) (7,953) (34,703) (13,914) 
NET INCOME (LOSS)$10,558  $(106,005) $140,488  $(124,578) 
NET INCOME (LOSS) PER SHARE—BASIC:
Continuing operations$0.08  $(0.43) $0.77  $(0.49) 
Discontinued operations(0.03) (0.04) (0.16) (0.06) 
Basic$0.05  $(0.47) $0.61  $(0.55) 
NET INCOME (LOSS) PER SHARE—DILUTED:
Continuing operations$0.08  $(0.43) $0.75  $(0.49) 
Discontinued operations(0.03) (0.04) (0.15) (0.06) 
Diluted$0.05  $(0.47) $0.60  $(0.55) 
WEIGHTED AVERAGE SHARES:
Basic229,716  226,221  228,457  225,408  
Diluted233,681  226,221  233,348  225,408  
See accompanying Notes to Condensed Consolidated Financial Statements.
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ENDO INTERNATIONAL PLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(Dollars in thousands)
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
NET INCOME (LOSS)$10,558  $(106,005) $140,488  $(124,578) 
OTHER COMPREHENSIVE INCOME (LOSS):
Net unrealized gain (loss) on foreign currency$5,624  $4,395  $(8,813) $9,125  
Total other comprehensive income (loss)$5,624  $4,395  $(8,813) $9,125  
COMPREHENSIVE INCOME (LOSS)$16,182  $(101,610) $131,675  $(115,453) 
See accompanying Notes to Condensed Consolidated Financial Statements.
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ENDO INTERNATIONAL PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
Six Months Ended June 30,
20202019
OPERATING ACTIVITIES:
Net income (loss)$140,488  $(124,578) 
Adjustments to reconcile Net income (loss) to Net cash provided by operating activities:
Depreciation and amortization264,198  320,788  
Share-based compensation26,867  37,333  
Amortization of debt issuance costs and discount8,551  9,540  
Deferred income taxes(2,544) (1,423) 
Change in fair value of contingent consideration18,507  (43,008) 
Gain on extinguishment of debt  (119,828) 
Asset impairment charges97,785  253,886  
Gain on sale of business and other assets(14,842) (1,168) 
Changes in assets and liabilities which provided (used) cash:
Accounts receivable192,599  34,557  
Inventories(8,719) (29,167) 
Prepaid and other assets(15,123) 6,780  
Accounts payable, accrued expenses and other liabilities(228,861) (266,800) 
Income taxes payable/receivable, net(112,018) 9,690  
Net cash provided by operating activities$366,888  $86,602  
INVESTING ACTIVITIES:
Purchases of property, plant and equipment, excluding capitalized interest(36,305) (23,632) 
Capitalized interest payments(1,125) (2,190) 
Proceeds from sale of business and other assets, net6,017  2,594  
Other investing activities  912  
Net cash used in investing activities$(31,413) $(22,316) 
FINANCING ACTIVITIES:
Proceeds from issuance of notes, net  1,483,125  
Repayments of notes(47,218) (1,501,788) 
Repayments of term loans(17,074) (17,076) 
Proceeds from draw of revolving debt  300,000  
Repayments of other indebtedness(2,393) (6,656) 
Payments for debt issuance and extinguishment costs  (5,100) 
Payments for contingent consideration(2,181) (8,153) 
Payments of tax withholding for restricted shares(6,865) (9,427) 
Proceeds from exercise of options  4  
Net cash (used in) provided by financing activities$(75,731) $234,929  
Effect of foreign exchange rate(915) 841  
NET INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS$258,829  $300,056  
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD1,720,388  1,476,837  
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD$1,979,217  $1,776,893  
SUPPLEMENTAL INFORMATION:
Cash paid into Qualified Settlement Funds for mesh legal settlements$  $155,995  
Cash paid out of Qualified Settlement Funds for mesh legal settlements$67,733  $151,388  
Other cash distributions for mesh legal settlements$18,165  $11,428  
See accompanying Notes to Condensed Consolidated Financial Statements.
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ENDO INTERNATIONAL PLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2020
NOTE 1. BASIS OF PRESENTATION
Endo International plc is an Ireland-domiciled specialty pharmaceutical company that conducts business through its operating subsidiaries. Unless otherwise indicated or required by the context, references throughout to “Endo,” the “Company,” “we,” “our” or “us” refer to Endo International plc and its subsidiaries.
The accompanying unaudited Condensed Consolidated Financial Statements of Endo International plc and its subsidiaries have been prepared in accordance with United States (U.S.) generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying Condensed Consolidated Financial Statements of Endo International plc and its subsidiaries, which are unaudited, include all normal and recurring adjustments necessary for a fair statement of the Company’s financial position as of June 30, 2020 and the results of its operations and its cash flows for the periods presented. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The year-end Condensed Consolidated Balance Sheet data as of December 31, 2019 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP.
The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Consolidated Financial Statements and accompanying notes included in the Annual Report.
Certain prior period amounts have been reclassified to conform to the current period presentation.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of our Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires us to make estimates that affect the amounts and disclosures in the Condensed Consolidated Financial Statements, including the notes thereto, and elsewhere in this report. Uncertainties related to the magnitude and duration of COVID-19, the extent to which it will impact our estimated future financial results, worldwide macroeconomic conditions including interest rates, employment rates, consumer spending and health insurance coverage, the speed of the anticipated recovery and governmental and business reactions to the pandemic have increased the complexity of developing these estimates, including the allowance for expected credit losses and the carrying amounts of long-lived assets, goodwill and other intangible assets. Actual results may differ significantly from our estimates, including as a result of COVID-19.
Significant Accounting Policies Added or Updated since December 31, 2019
Significant changes to our significant accounting policies since December 31, 2019 are detailed below. For additional discussion of the Company’s significant accounting policies, see Note 2. Summary of Significant Accounting Policies in the Consolidated Financial Statements, included in Part IV, Item 15 of the Annual Report.
Accounts Receivable. The Company adopted Accounting Standards Codification (ASC) Topic 326, Financial Instruments-Credit Losses (ASC 326) on January 1, 2020. For further discussion of the adoption, refer to the “Recent Accounting Pronouncements Adopted or Otherwise Effective as of June 30, 2020” section below. Subsequent to the adoption of ASC 326, our accounts receivable balance is stated at amortized cost less an allowance for expected credit losses. In addition, our accounts receivable balance is reduced by certain sales deduction reserves where we have the right of offset with the customer. We generally do not require collateral.
Concentrations of Credit Risk and Credit Losses. Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash equivalents, restricted cash equivalents and accounts receivable. From time to time, we invest our excess cash in high-quality, liquid money market instruments maintained by major banks and financial institutions. We have not experienced any losses on our cash equivalents.
With respect to our accounts receivable, we have no history of significant losses. Approximately 86% and 88% of our gross trade accounts receivable balances represent amounts due from three customers (Cardinal Health, Inc., McKesson Corporation and AmerisourceBergen Corporation) at June 30, 2020 and December 31, 2019, respectively. We perform ongoing credit evaluations of these and our other customers based on information available to us. We consider these and other factors, including changes in the composition and aging of our accounts receivable, in developing our allowance for expected credit losses. The estimated allowance was not material to the Company’s Condensed Consolidated Financial Statements at June 30, 2020 or December 31, 2019, nor were the changes to the allowance during any of the periods presented.
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We do not currently expect our current or future exposures to credit losses to have a significant impact on us. However, our customers’ ability to pay us on a timely basis, or at all, could be affected by factors specific to their respective businesses and/or by economic conditions, including those related to the COVID-19 pandemic, the extent of which cannot be fully predicted.
Recent Accounting Pronouncements Adopted or Otherwise Effective as of June 30, 2020
In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13, together with a series of subsequently-issued related ASUs, has been codified in ASC 326. ASC 326 establishes new requirements for companies to estimate expected credit losses when measuring certain financial assets, including accounts receivable. The Company adopted ASC 326 using a modified retrospective approach with an effective date of January 1, 2020. The adoption of ASC 326 did not have a material impact on the Company’s Condensed Consolidated Financial Statements.
NOTE 3. DISCONTINUED OPERATIONS
Astora
The operating results of the Company’s Astora business, which the Company’s board of directors (the Board) resolved to wind-down in 2016, are reported as Discontinued operations, net of tax in the Condensed Consolidated Statements of Operations for all periods presented. The following table provides the operating results of Astora Discontinued operations, net of tax, for the three and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Litigation-related and other contingencies, net$(2,103) $  $28,351  $  
Loss from discontinued operations before income taxes$(6,507) $(7,953) $(40,024) $(13,914) 
Income tax expense (benefit)$545  $  $(5,321) $  
Discontinued operations, net of tax$(7,052) $(7,953) $(34,703) $(13,914) 
Loss from discontinued operations before income taxes includes Litigation-related and other contingencies, net, mesh-related legal defense costs and certain other items.
The cash flows from discontinued operating activities related to Astora included the impact of net losses of $34.7 million and $13.9 million for the six months ended June 30, 2020 and 2019, respectively, and the impact of cash activity related to vaginal mesh cases. There were no material net cash flows related to Astora discontinued investing activities during the six months ended June 30, 2020 or 2019. There was no depreciation or amortization during the six months ended June 30, 2020 or 2019 related to Astora.
NOTE 4. SEGMENT RESULTS
The Company’s four reportable business segments are Branded Pharmaceuticals, Sterile Injectables, Generic Pharmaceuticals and International Pharmaceuticals. These segments reflect the level at which the chief operating decision maker (CODM) regularly reviews financial information to assess performance and to make decisions about resources to be allocated. Each segment derives revenue from the sales or licensing of its respective products and is discussed in more detail below.
We evaluate segment performance based on segment adjusted income from continuing operations before income tax, which we define as Income (loss) from continuing operations before income tax and before certain upfront and milestone payments to partners; acquisition-related and integration items, including transaction costs and changes in the fair value of contingent consideration; cost reduction and integration-related initiatives such as separation benefits, continuity payments, other exit costs and certain costs associated with integrating an acquired company's operations; asset impairment charges; amortization of intangible assets; inventory step-up recorded as part of our acquisitions; litigation-related and other contingent matters; certain legal costs; gains or losses from early termination of debt; debt modification costs; gains or losses from the sales of businesses and other assets; foreign currency gains or losses on intercompany financing arrangements; and certain other items. Effective January 1, 2020, the Company revised its definition of segment adjusted income from continuing operations before income tax to exclude certain legal costs in order to reflect changes in how the CODM reviews segment performance. The Company believes that such costs are not indicative of business performance and that excluding them more accurately reflects each segment’s results and better enables management to compare financial results between periods. Prior period results have been adjusted to reflect this change. Specifically, for the three months ended June 30, 2019, certain legal costs of $18.6 million and $0.4 million have been excluded from our Branded Pharmaceuticals and Generic Pharmaceuticals segments, respectively, and for the six months ended June 30, 2019, certain legal costs of $34.8 million and $0.8 million have been excluded from our Branded Pharmaceuticals and Generic Pharmaceuticals segments, respectively, resulting in increases to the segment adjusted income from continuing operations before income tax for these segments. This change had no impact on our Total consolidated income (loss) from continuing operations before income tax.
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Certain of the corporate expenses incurred by the Company are not directly attributable to any specific segment. Accordingly, these costs are not allocated to any of the Company’s segments and are included in the results below as “Corporate unallocated costs.” Interest income and expense are also considered corporate items and not allocated to any of the Company’s segments. The Company’s total segment adjusted income from continuing operations before income tax is equal to the combined results of each of its segments.
Branded Pharmaceuticals
Our Branded Pharmaceuticals segment includes a variety of branded prescription products to treat and manage conditions in urology, urologic oncology, endocrinology, pain and orthopedics. The products in this segment include XIAFLEX®, SUPPRELIN® LA, NASCOBAL® Nasal Spray, AVEED®, PERCOCET®, LIDODERM®, EDEX® and TESTOPEL®, among others.
Sterile Injectables
Our Sterile Injectables segment consists primarily of branded sterile injectable products such as VASOSTRICT®, ADRENALIN® and APLISOL®, among others, and certain generic sterile injectable products, including ertapenem for injection (the authorized generic of Merck Sharp & Dohme Corp.’s (Merck) Invanz®) and ephedrine sulfate injection, among others.
Generic Pharmaceuticals
Our Generic Pharmaceuticals segment consists of a differentiated product portfolio including solid oral extended-release, solid oral immediate-release, liquids, semi-solids, patches, powders, ophthalmics and sprays and includes products in the pain management, urology, central nervous system disorders, immunosuppression, oncology, women’s health and cardiovascular disease markets, among others.
International Pharmaceuticals
Our International Pharmaceuticals segment includes a variety of specialty pharmaceutical products sold outside the U.S., primarily in Canada through our operating company Paladin Labs Inc. (Paladin). The key products of this segment serve various therapeutic areas, including attention deficit hyperactivity disorder, pain, women’s health and oncology.
The following represents selected information for the Company’s reportable segments for the three and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Net revenues from external customers:
Branded Pharmaceuticals$129,521  $209,013  $333,594  $412,538  
Sterile Injectables319,214  244,280  655,604  514,328  
Generic Pharmaceuticals215,879  217,784  467,162  436,310  
International Pharmaceuticals (1)22,974  28,650  51,633  56,962  
Total net revenues from external customers$687,588  $699,727  $1,507,993  $1,420,138  
Segment adjusted income from continuing operations before income tax:
Branded Pharmaceuticals$49,174  $101,535  $147,596  $196,818  
Sterile Injectables241,753  172,188  505,649  368,371  
Generic Pharmaceuticals47,394  49,722  104,721  100,133  
International Pharmaceuticals9,304  11,447  23,501  23,542  
Total segment adjusted income from continuing operations before income tax$347,625  $334,892  $781,467  $688,864  
__________
(1)Revenues generated by our International Pharmaceuticals segment are primarily attributable to external customers located in Canada.
There were no material revenues from external customers attributed to an individual country outside of the U.S. during any of the periods presented.
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The table below provides reconciliations of our Total consolidated income (loss) from continuing operations before income tax, which is determined in accordance with U.S. GAAP, to our total segment adjusted income from continuing operations before income tax for the three and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Total consolidated income (loss) from continuing operations before income tax$25,252  $(94,584) $46,501  $(96,293) 
Interest expense, net129,164  134,809  262,041  267,484  
Corporate unallocated costs (1)33,590  38,365  76,912  86,460  
Amortization of intangible assets104,498  140,418  221,735  286,017  
Upfront and milestone payments to partners444  1,444  2,194  2,383  
Continuity and separation benefits and other cost reduction initiatives (2)9,444  2,124  32,664  4,149  
Certain litigation-related and other contingencies, net (3)(8,572) 10,315  (25,748) 10,321  
Certain legal costs (4)18,005  18,984  33,541  35,673  
Asset impairment charges (5)  88,438  97,785  253,886  
Acquisition-related and integration items, net (6)6,045  (5,507) 18,507  (43,008) 
Gain on extinguishment of debt      (119,828) 
Foreign currency impact related to the remeasurement of intercompany debt instruments3,005  2,262  (4,089) 3,796  
Other, net (7)26,750  (2,176) 19,424  (2,176) 
Total segment adjusted income from continuing operations before income tax$347,625  $334,892  $781,467  $688,864  
__________
(1)Amounts include certain corporate overhead costs, such as headcount, facility and corporate litigation expenses and certain other income and expenses.
(2)Amounts for the three and six months ended June 30, 2020 include $4.1 million and $17.9 million, respectively, of costs associated with certain continuity and transitional compensation arrangements for certain senior management of the Company. Other amounts in 2020 related primarily to certain cost reduction initiatives. Such amounts included accelerated depreciation of $1.8 million and other charges of $3.6 million during the three months ended June 30, 2020 and accelerated depreciation of $8.4 million and other charges of $6.4 million during the six months ended June 30, 2020. Amounts for the three and six months ended June 30, 2019 primarily relate to employee separation costs of $0.4 million and $2.2 million, respectively, and other charges of $1.7 million and $1.9 million, respectively.
(3)Amounts include adjustments to our accruals for litigation-related settlement charges and certain settlement proceeds related to suits filed by our subsidiaries. Our material legal proceedings and other contingent matters are described in more detail in Note 12. Commitments and Contingencies.
(4)Amounts relate to opioid-related legal expenses.
(5)Amounts primarily relate to charges to impair goodwill and intangible assets as further described in Note 8. Goodwill and Other Intangibles.
(6)Amounts primarily relate to changes in the fair value of contingent consideration.
(7)The amounts during the three and six months ended June 30, 2020 primarily relate to $30.7 million of third party fees incurred in connection with the June 2020 Refinancing Transactions, which were accounted for as debt modifications. Refer to Note 11. Debt for additional information. Remaining amounts in this line primarily relate to gains on sales of businesses and other assets, as further described in Note 15. Other (Income) Expense, Net.
Asset information is not reviewed or included within our internal management reporting. Therefore, the Company has not disclosed asset information for each reportable segment.
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During the three and six months ended June 30, 2020 and 2019, the Company disaggregated its revenue from contracts with customers into the categories included in the table below (in thousands). The Company believes these categories depict how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors.
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Branded Pharmaceuticals:
Specialty Products:
XIAFLEX®$33,783  $74,855  $122,855  $143,362  
SUPPRELIN® LA15,395  23,714  35,115  45,770  
Other Specialty (1)19,566  25,524  45,071  49,927  
Total Specialty Products$68,744  $124,093  $203,041  $239,059  
Established Products:
PERCOCET®$27,578  $28,878  $55,281  $59,638  
LIDODERM®7,056  9,051  14,279  17,120  
EDEX®6,604  7,662  15,172  13,633  
Other Established (2)19,539  39,329  45,821  83,088  
Total Established Products$60,777  $84,920  $130,553  $173,479  
Total Branded Pharmaceuticals (3)$129,521  $209,013  $333,594  $412,538  
Sterile Injectables:
VASOSTRICT®$214,214  $116,026  $417,118  $255,163  
ADRENALIN®33,161  45,835  89,673  93,157  
Ertapenem for injection11,990  25,547  29,864  57,766  
APLISOL®6,511  15,530