CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Condensed Combined Financial Statements of the Debtors

The financial statements included in this Note represent the Condensed Combined Financial Statements of the Debtors only, which include Endo International plc and most of its wholly-owned subsidiaries, except for its Indian subsidiaries and certain subsidiaries associated with the Company’s former Astora business. These statements reflect the results of operations, financial position and cash flows of the combined Debtors, including certain amounts and activities between Debtors and Non-Debtor Affiliates of the Company that are eliminated in the Consolidated Financial Statements.





CONDENSED COMBINED BALANCE SHEETS
(Dollars in thousands)

	December 31, 2023		December 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	735,927	$	991,901
Restricted cash and cash equivalents	81,806		59,358
Accounts receivable, net	375,613		478,889
Inventories, net	219,230		241,349
Prepaid expenses and other current assets	68,245		111,807
Income taxes receivable	7,715		7,038

Receivables from Non-Debtor Affiliates	100,829		94,608
Total current assets	$	1,589,365	$	1,984,950

PROPERTY, PLANT AND EQUIPMENT, NET	250,286		233,114
OPERATING LEASE ASSETS	19,002		23,200
GOODWILL	1,352,011		1,352,011
OTHER INTANGIBLES, NET	1,477,883		1,732,935

INVESTMENTS IN NON-DEBTOR AFFILIATES	48,253		50,001
RECEIVABLES FROM NON-DEBTOR AFFILIATES	258,445		240,002
OTHER ASSETS	134,224		126,494
TOTAL ASSETS	$	5,129,469	$	5,742,707
LIABILITIES AND DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	510,697	$	654,414

Current portion of operating lease liabilities	248		230

Income taxes payable	181		10

Payables to Non-Debtor Affiliates	14,419		20,162
Total current liabilities	$	525,545	$	674,816
DEFERRED INCOME TAXES	16,248		13,479


OPERATING LEASE LIABILITIES, LESS CURRENT PORTION	750		994

OTHER LIABILITIES	74,223		37,367
LIABILITIES SUBJECT TO COMPROMISE	11,095,868		9,168,782
TOTAL DEFICIT	(6,583,165)		(4,152,731)
TOTAL LIABILITIES AND DEFICIT	$	5,129,469	$	5,742,707





CONDENSED COMBINED STATEMENTS OF OPERATIONS
(Dollars in thousands)


	2023		2022
TOTAL REVENUES, NET	$	2,011,565	$	2,321,426
COSTS AND EXPENSES:
Cost of revenues	954,349		1,106,855
Selling, general and administrative	558,183		764,768
Research and development	124,987		137,851
Acquired in-process research and development	—		68,700
Litigation-related and other contingencies, net	1,611,090		478,722
Asset impairment charges	503		2,137,107
Acquisition-related and integration items, net	1,972		408

Interest (income) expense, net	(11,660)		345,593

Reorganization items, net	1,169,961		202,978
Other income, net	(9,330)		(13,409)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX	$	(2,388,490)	$	(2,908,147)
INCOME TAX EXPENSE	52,521		17,721
LOSS FROM CONTINUING OPERATIONS	$	(2,441,011)	$	(2,925,868)
DISCONTINUED OPERATIONS, NET OF TAX	(2,021)		(13,468)
NET LOSS ATTRIBUTABLE TO DEBTOR ENTITIES	$	(2,443,032)	$	(2,939,336)
EQUITY IN LOSS OF NON-DEBTOR AFFILIATES, NET OF TAX	(1,822)		22,671
NET LOSS	$	(2,444,854)	$	(2,916,665)





CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE LOSS
(Dollars in thousands)


	2023		2022
NET LOSS	$	(2,444,854)	$	(2,916,665)
OTHER COMPREHENSIVE INCOME (LOSS):
Net unrealized gain (loss) on foreign currency	$	3,179	$	(10,496)
Total other comprehensive income (loss)	$	3,179	$	(10,496)
COMPREHENSIVE LOSS	$	(2,441,675)	$	(2,927,161)





CONDENSED COMBINED STATEMENTS OF CASH FLOWS
(Dollars in thousands)


	2023		2022
OPERATING ACTIVITIES:
Net cash provided by operating activities (1)	$	416,541	$	209,523
INVESTING ACTIVITIES:
Capital expenditures, excluding capitalized interest	(67,149)		(43,743)
Capitalized interest payments	—		(3,140)
Proceeds from the U.S. Government Cooperative Agreement	39,397		18,635

Acquisitions, including in-process research and development, net of cash and restricted cash acquired	—		(90,320)




Proceeds from sale of business and other assets	5,134		41,400
Proceeds from loans made to Non-Debtor Affiliates	1,572		2,355
Disbursements for loans made to Non-Debtor Affiliates	(25,243)		(51,486)

Net cash used in investing activities	$	(46,289)	$	(126,299)
FINANCING ACTIVITIES:


Repayments of notes	—		(180,342)
Repayments of term loans	—		(10,000)


Adequate protection payments	(592,759)		(313,109)
Repayments of other indebtedness	(6,733)		(6,062)

Payments for contingent consideration	(5,136)		(2,462)
Payments of tax withholding for restricted shares	—		(1,898)


Net cash used in financing activities	$	(604,628)	$	(513,873)
Effect of foreign exchange rate	850		(1,790)

NET DECREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS	$	(233,526)	$	(432,439)
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD	1,136,259		1,568,698
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD	$	902,733	$	1,136,259

__________

(1)The difference between the amount of Net cash provided by operating activities included in the table above and the amount of Net cash provided by operating activities included in the Consolidated Statements of Cash Flows for the same period primarily relates to the fact that the table above: (i) excludes the operating cash flows of our Non-Debtor Affiliates, which are included in the Consolidated Statements of Cash Flows, and (ii) includes the effects of the operating cash flows of the Debtors with the Non-Debtor Affiliates, which are eliminated in the Consolidated Statements of Cash Flows.

Endo International plc 10-K