Document

“We are very pleased with our first quarter results and the progress we have made to advance our growth strategy. With recent U.S. FDA approvals for our first two biosimilars, as well as the closing of our Saol Baclofen acquisition, Amneal is expanding in high growth areas, including biosimilars and injectables, which we expect to drive meaningful growth going forward. These important milestones, as well as our continued focus on advancing R&D initiatives, are diversifying our business as we work to fulfill our mission of bringing innovative and affordable medicines to patients and creating value for shareholders,” said Chirag and Chintu Patel, Co-Chief Executive Officers.

Net loss attributable to Amneal Pharmaceuticals, Inc. was $2 million in the first quarter of 2022 compared to a net income of $7 million in the first quarter of 2021. Beginning in the first quarter of 2022, we will no longer exclude research and development milestone expenses from non-GAAP financial measures. In the first quarter of 2022 and 2021, R&D milestone expenses were $5 million and $11 million, respectively. Prior periods presented have been revised to reflect this change. Adjusted EBITDA(1) in the first quarter of 2022 was $100 million, a decrease of 13% compared to the first quarter of 2021, reflective of lower gross profit due to product mix and a tough comparison to the prior year. Adjusted diluted EPS(1) in the first quarter of 2022 was $0.12, compared to $0.17 in the first quarter of 2021.

Amneal’s 2022 estimates are based on management's current expectations, including with respect to prescription trends, pricing levels, the timing of future product launches, the costs incurred and benefits realized of restructuring activities, and our long-term strategy. The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company cannot provide a reconciliation between non-GAAP projections and the most directly comparable measures in accordance with GAAP without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results.

Amneal will host a conference call and live webcast at 8:30 am Eastern Time on May 4, 2022 to discuss its results. The live webcast and presentation will be accessible through the Investor Relations section of the Company’s website at https://investors.amneal.com. To access the call through a conference line, dial (844) 200-6205 (in the U.S.) or (929) 526-1599 (international callers). The access code for the call is 874223. A replay of the conference call will be posted shortly after the call and will be available for seven days. To access the replay, dial (866) 813-9403 (in the U.S.) or +44 (204) 525-0658 (international callers). The access code for the replay is 097886.

Amneal Pharmaceuticals, Inc. (NYSE: AMRX), headquartered in Bridgewater, NJ, is a fully-integrated essential medicines company. We make healthy possible through the development, manufacturing, and distribution of generic and specialty pharmaceuticals, primarily within the United States. The Company has a diverse portfolio of over 250 products in its Generics segment and is expanding across a broad range of complex products and therapeutic areas, including injectables and biosimilars. In its Specialty segment, Amneal has a growing portfolio of branded pharmaceutical products focused primarily on central nervous system and endocrine disorders, with a pipeline focused on unmet needs. Through its AvKARE segment, the Company is a distributor of pharmaceuticals and other products for the U.S. federal government, retail, and institutional markets. For more information, please visit www.amneal.com.

Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). Such forward-looking statements include statements regarding management’s intentions, plans, beliefs, expectations or forecasts for the future, including among other things: discussions of future operations; expected operating results and financial performance; impact of planned acquisitions and dispositions; the Company’s strategy for growth; product development; regulatory approvals; market position and expenditures. Words such as “plans,” “expects,” “will,” “anticipates,” “estimates” and similar words are intended to identify estimates and forward-looking statements.

Such risks and uncertainties include, but are not limited to: our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to obtain exclusive marketing rights for our products; our ability to manage our growth through acquisitions and otherwise; our dependence on the sales of a limited number of products for a substantial portion of our total revenues; the continuing trend of consolidation of certain customer groups; our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods and any associated supply chain disruptions; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; the impact of severe weather; the impact of the ongoing COVID-19 pandemic; risks related to federal regulation of arrangements between manufacturers of branded and generic products; our reliance on certain licenses to proprietary technologies from time to time; the significant amount of resources we expend on research and development; the risk of product liability and other claims against us by consumers and other third parties; risks related to changes in the regulatory environment, including U.S. federal and state laws related to healthcare fraud abuse and health information privacy and security and changes in such laws; changes to Food and Drug Administration product approval requirements; the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers; our dependence on third-party agreements for a portion of our product offerings; the impact of

global economic conditions, including any economic effects stemming from adverse geopolitical events, an economic downturn and inflation rates; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; our obligations under a tax receivable agreement may be significant; and the high concentration of ownership of our Class A Common Stock and the fact that we are controlled by the Amneal Group. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof.

This release includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted earnings per share, adjusted gross profit, adjusted gross margin, adjusted operating income, adjusted cost of goods sold, adjusted selling general and administrative expense, and adjusted research and development expense, which are intended as supplemental measures of the Company’s performance that are not required by or presented in accordance with GAAP. The calculation of non-GAAP adjusted diluted earnings per share assumes the conversion of all outstanding shares of class B Common Stock to shares of class A Common Stock under the if-converted method.

Management uses these non-GAAP measures internally to evaluate and manage the Company’s operations and to better understand its business because they facilitate a comparative assessment of the Company's operating performance relative to its performance based on results calculated under GAAP. These non-GAAP measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company's operations and underlying operational performance. The compensation committee of the Company’s board of directors also uses certain of these measures to evaluate management's performance and set its compensation. The Company believes that these non-GAAP measures also provide useful information to investors regarding certain financial and business trends relating to the Company’s financial condition and operating results facilitates an evaluation of the financial performance of the Company and its operations on a consistent basis. Providing this information therefore allows investors to make independent assessments of the Company’s financial performance, results of operations and trends while viewing the information through the eyes of management.

These non-GAAP measures are subject to limitations. The non-GAAP measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these non-GAAP measures in conjunction with the Company’s GAAP results; no non-GAAP measure should be considered in isolation from or as alternatives to net income, diluted earnings per share, gross profit, gross margin, operating income, cost of goods sold, selling general and administrative expense, and research and development expense or any other measure determined in accordance with GAAP. Readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the Company’s business.


	Three Months Ended March 31,
	2022		2021
Net revenue	$	497,633	$	493,105
Cost of goods sold	323,062		301,543
Gross profit	174,571		191,562
Selling, general and administrative	98,665		90,726
Research and development	52,798		48,182
Intellectual property legal development expenses	764		3,582
Acquisition, transaction-related and integration expenses	434		2,802
Credit related to legal matters, net	(2,326)		—
Restructuring and other charges	731		363
Change in fair value of contingent consideration	200		—
Operating income	23,305		45,907
Other (expense) income:
Interest expense, net	(33,335)		(33,885)
Foreign exchange (loss) gain, net	(2,013)		2,088
Other income, net	2,122		794
Total other expense, net	(33,226)		(31,003)
(Loss) income before income taxes	(9,921)		14,904
(Benefit from) provision for income taxes	(3,461)		359
Net (loss) income	(6,460)		14,545
Less: Net loss (income) attributable to non-controlling interests	4,742		(7,839)
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. before accretion of redeemable non-controlling interest	$	(1,718)	$	6,706
Accretion of redeemable non-controlling interest	(438)		—
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.	$	(2,156)	$	6,706

Net (loss) income per share attributable to Amneal Pharmaceuticals, Inc.'s class A common stockholders:
Basic	$	(0.01)	$	0.05
Diluted	$	(0.01)	$	0.04
Weighted-average common shares outstanding:
Basic	149,892		148,013
Diluted	149,892		151,220


	March 31, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	210,477	$	247,790
Restricted cash	6,068		8,949
Trade accounts receivable, net	538,309		662,583
Inventories	512,241		489,389
Prepaid expenses and other current assets	121,408		110,218
Related party receivables	1,175		1,179
Total current assets	1,389,678		1,520,108
Property, plant and equipment, net	500,911		514,158
Goodwill	602,893		593,017
Intangible assets, net	1,209,818		1,166,922
Operating lease right-of-use assets	37,675		39,899
Operating lease right-of-use assets - related party	19,846		20,471
Financing lease right-of-use assets	64,204		64,475
Other assets	63,943		20,614
Total assets	$	3,888,968	$	3,939,664
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	539,734	$	583,345
Current portion of long-term debt, net	30,523		30,614
Current portion of operating lease liabilities	9,901		9,686
Current portion of operating and financing lease liabilities - related party	2,692		2,636
Current portion of financing lease liabilities	3,233		3,101
Related party payables - short term	15,960		47,861
Total current liabilities	602,043		677,243
Long-term debt, net	2,672,661		2,680,053
Note payable - related party	38,443		38,038
Operating lease liabilities	30,378		32,894
Operating lease liabilities - related party	18,093		18,783
Financing lease liabilities	60,286		60,251
Related party payables - long term	10,371		9,619
Other long-term liabilities	32,866		38,903
Total long-term liabilities	2,863,098		2,878,541
Redeemable non-controlling interests	16,420		16,907
Total stockholders' equity	407,407		366,973
Total liabilities and stockholders' equity	$	3,888,968	$	3,939,664


	Three Months Ended March 31,
	2022		2021
Cash flows from operating activities:
Net (loss) income	$	(6,460)	$	14,545
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	57,815		55,549
Unrealized foreign currency loss (gain)	3,140		(1,970)
Amortization of debt issuance costs and discount	2,195		2,183
Stock-based compensation	8,065		5,330
Inventory provision	3,578		16,021
Change in fair value of contingent consideration	200		—
Other operating charges and credits, net	1,155		1,431
Changes in assets and liabilities:
Trade accounts receivable, net	124,268		108,385
Inventories	(25,549)		(20,283)
Prepaid expenses, other current assets and other assets	(4,423)		602
Related party receivables	4		301
Accounts payable, accrued expenses and other liabilities	(48,777)		(37,226)
Related party payables	5,132		3,260
Net cash provided by operating activities	120,343		148,128
Cash flows from investing activities:
Purchases of property, plant and equipment	(10,793)		(11,776)
Deposits for future acquisition of property, plant, and equipment	(1,888)		(917)
Acquisition of business	(84,714)		—
Net cash used in investing activities	(97,395)		(12,693)
Cash flows from financing activities:
Payments of principal on debt, financing leases and other	(9,796)		(23,630)
Proceeds from exercise of stock options	111		676
Employee payroll tax withholding on restricted stock unit vesting	(3,001)		(2,102)
Tax distributions to non-controlling interests	(3,164)		—
Acquisition of redeemable non-controlling interest	(1,722)		—
Payments of deferred consideration for acquisitions - related party	(43,998)		—
Payments of principal on financing lease - related party	—		(93)
Repayment of related party note	—		(1,000)
Net cash used in financing activities	(61,570)		(26,149)
Effect of foreign exchange rate on cash	(1,572)		(593)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(40,194)		108,693
Cash, cash equivalents, and restricted cash - beginning of period	256,739		347,121
Cash, cash equivalents, and restricted cash - end of period	$	216,545	$	455,814
Cash and cash equivalents - end of period	$	210,477	$	452,097
Restricted cash - end of period	6,068		3,717
Cash, cash equivalents, and restricted cash - end of period	$	216,545	$	455,814

Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (1)


	Three Months Ended March 31,
	2022		2021
Net (loss) income	$	(6,460)	$	14,545
Adjusted to add (deduct):
Interest expense, net	33,335		33,885
Income tax expense (benefit)	(3,461)		359
Depreciation and amortization	57,815		55,549
EBITDA (Non-GAAP)	$	81,229	$	104,338
Adjusted to add (deduct):
Stock-based compensation expense	8,065		5,330
Acquisition, site closure, and idle facility expenses (2)	5,589		5,792
Restructuring and other charges (3)	731		363
Inventory related charges	—		114
Credit related to legal matters, net (4)	(2,326)		—
Asset impairment charges	—		323
Foreign exchange loss (gain)	2,013		(2,088)
Regulatory approval milestone	5,000		—
Change in fair value of contingent consideration	200		—

Other	(641)		999
Adjusted EBITDA (Non-GAAP)	$	99,860	$	115,171

Reconciliation of Net (Loss) Income to Adjusted Net Income and Calculation of Adjusted Diluted Earnings Per Share (1)


	Three Months Ended March 31,
	2022		2021
Net (loss) income	$	(6,460)	$	14,545
Adjusted to add (deduct):
Non-cash interest	1,982		1,972
GAAP Income tax (benefit) expense	(3,461)		359
Amortization	39,152		39,514
Stock-based compensation expense	8,065		5,330
Acquisition, site closure expenses, and idle facility expenses (2)	5,589		5,792
Restructuring and other charges (3)	731		363
Inventory related charges	—		114
Credit related to legal matters, net (4)	(2,326)		—
Asset impairment charges	—		323
Regulatory approval milestone	5,000		—
Change in fair value of contingent consideration	200		—

Other	(500)		999
Income tax (5)	(10,185)		(15,053)
Net income attributable to non-controlling interests not associated with our class B common stock	(2,199)		(1,796)
Adjusted net income (Non-GAAP)	$	35,588	$	52,462
Weighted average diluted shares outstanding (Non-GAAP) (6)	304,630		303,337
Adjusted diluted earnings per share (Non-GAAP)	$	0.12	$	0.17


(1)			Beginning in the first quarter of 2022, we will no longer exclude research and development milestone expenses related to license and collaboration agreements from our non-GAAP financial measures and our line item components, including adjusted research and development, adjusted EBITDA, adjusted operating income, adjusted net income and adjusted earnings per share. Prior period adjusted results have been revised to reflect this change.

(2)			Acquisition, site closure, and idle facility expenses for the three months ended March 31, 2022 primarily included (i) transaction and integration costs associated with the acquisition of the baclofen franchise from certain entities affiliated with Saol International Limited; (ii.) integration costs associated with the acquisition of Puniska Healthcare Pvt. Ltd.; and (iii) site closure costs associated with the planned cessation of manufacturing at our Hauppauge, NY facility. Acquisition, site closure and idle facility expenses for the three months ended March 31, 2021 primarily included (i) transaction costs associated with the acquisition of Kashiv Specialty Pharmaceuticals, LLC, which closed on April 2, 2021; (ii) integration costs associated with the acquisition of AvKARE; and (iii) site closure expenses associated with the planned cessation of manufacturing at our Hauppauge, NY facility.

(3)			For the three months ended March 31, 2022 and 2021, restructuring and other charges primarily consisted of cash severance charges associated with the cost of benefits for former senior executives and management employees.

(4)			For the three months ended March 31, 2022, we recorded a net credit of $2.3 million consisting of an insurance recovery of $4 million, partially offset by charges for legal proceedings (none for the three months ended March 31, 2021).



(5)			The non-GAAP effective tax rates for the three months ended March 31, 2022 and 2021 were 22.3% and 21.0%, respectively.

(6)			Weighted average diluted shares outstanding consisted of class A common stock and class B common stock under the if-converted method.


	Three Months Ended March 31, 2022								Three Months Ended March 31, 2021
	As Reported			Adjustments		Non-GAAP			As Reported			Adjustments		Non-GAAP
Net revenue	$	317,747		$	—	$	317,747		$	312,508		$	—	$	312,508
Cost of goods sold (2)	199,030			(15,091)		183,939			185,298			(12,019)		173,279
Gross profit	118,717			15,091		133,808			127,210			12,019		139,229
Gross margin %	37.4		%			42.1		%	40.7		%			44.6		%

Selling, general and administrative (3)	27,593			(6,250)		21,343			18,762			(824)		17,938
Research and development (4)	43,221			(1,159)		42,062			36,117			(1,002)		35,115
Charges related to legal matters, net (5)	1,674			(1,674)		—			—			—		—
Intellectual property legal development expenses	772			—		772			3,582			—		3,582
Restructuring and other charges	206			(206)		—			80			(80)		—
Operating income	$	45,251		$	24,380	$	69,631		$	68,669		$	13,925	$	82,594


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

(2)			Adjustments for the three months ended March 31, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($1.5 million and $0.6 million), amortization expense ($9.3 million and $8.0 million), site closure and idle facility expenses ($4.6 million and $2.5 million), inventory related charges (none and $0.1 million), asset impairment charges (none and $0.3 million), and other ($(0.3) million and $0.5 million).

(3)			Adjustments for the three months ended March 31, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($0.7 million and $0.3 million), a regulatory approval milestone ($5.0 million and none) and site closure costs ($0.6 million and $0.5 million).

(4)			Adjustments for the three months ended March 31, 2022 and 2021, respectively, were comprised of stock-based compensation expense ($1.2 million and $0.8 million) and other (none and $0.2 million). Non-GAAP adjusted research and development for the three months ended March 31, 2021, as previously reported, has been revised to include $3.4 million of research and development milestone expenses previously excluded.

(5)			Adjustments for the three months ended March 31, 2022 were related to charges for legal proceedings.


	Three Months Ended March 31, 2022								Three Months Ended March 31, 2021
	As Reported			Adjustments		Non-GAAP			As Reported			Adjustments		Non-GAAP
Net revenue	$	85,086		$	—	$	85,086		$	95,931		$	—	$	95,931
Cost of goods sold (1)	43,853			(26,653)		17,200			48,198			(27,493)		20,705
Gross profit	41,233			26,653		67,886			47,733			27,493		75,226
Gross margin %	48.5		%			79.8		%	49.8		%			78.4		%

Selling, general and administrative (2)	24,400			(613)		23,787			19,881			(591)		19,290
Research and development (3)	9,577			(326)		9,251			12,065			(180)		11,885
Change in fair value of contingent consideration (4)	200			(200)		—			—			—		—
Intellectual property legal development credit	(8)			—		(8)			—			—		—
Operating income	$	7,064		$	27,792	$	34,856		$	15,787		$	28,264	$	44,051


(1)			Adjustments for the three months ended March 31, 2022 and 2021 were comprised of amortization expense.

(2)			Adjustments for the three months ended March 31, 2022 and 2021 were comprised of stock-based compensation expense.

(3)			Adjustments for the three months ended March 31, 2022 and 2021 were comprised of stock-based compensation expense. Non-GAAP adjusted research and development for the three months ended March 31, 2021, as previously reported, has been revised to include $7.4 million of research and development milestone expenses previously excluded.

(4)			Contingent consideration was recorded in connection with the acquisition of Kashiv Specialty Pharmaceuticals, LLC.


	Three Months Ended March 31, 2022								Three Months Ended March 31, 2021
	As Reported			Adjustments		Non-GAAP			As Reported			Adjustments		Non-GAAP
Net revenue	$	94,800		$	—	$	94,800		$	84,666		$	—	$	84,666
Cost of goods sold	80,179			—		80,179			68,047			—		68,047
Gross profit	14,621			—		14,621			16,619			—		16,619
Gross margin %	15.4		%			15.4		%	19.6		%			19.6		%

Selling, general and administrative (2)	13,410			(4,526)		8,884			13,704			(6,184)		7,520
Acquisition, transaction-related and integration expenses (3)	—			—		—			931			$	(931)	—
Operating income (loss)	$	1,211		$	4,526	$	5,737		$	1,984		$	7,115	$	9,099


	Three months ended								Year ended
	Dec. 31, 2021		Sept. 30, 2021		June 30, 2021		March 31, 2021		Dec. 31, 2021		Dec. 31, 2020
Net (loss) income	$	(20,459)	$	(6,092)	$	32,176	$	14,545	$	20,170	$	68,578
Adjusted to add (deduct):
Interest expense, net	33,957		34,400		34,083		33,885		136,325		145,998
Income tax expense (benefit)	4,140		4,049		2,648		359		11,196		(104,358)
Depreciation and amortization	61,183		60,186		56,487		55,549		233,406		235,387
EBITDA (Non-GAAP)	$	78,821	$	92,543	$	125,394	$	104,338	$	401,097	$	345,605
Adjusted to add (deduct):
Stock-based compensation expense	7,742		7,708		7,632		5,330		28,412		20,750
Acquisition, site closure, and idle facility expenses	6,027		2,220		5,964		5,792		20,003		23,384
Restructuring and other charges	—		425		—		363		788		2,398
Inventory related charges	16		44		87		114		261		6,574
Charges related to legal matters, net	6,000		19,000		—		—		25,000		5,610
Asset impairment charges	22,353		688		741		323		24,105		43,629
Foreign exchange loss (gain)	170		29		2,244		(2,088)		355		(16,350)
Gain on sale of international businesses, net	—		—		—		—		—		(123)
Research and development milestones	4,566		2,496		7,847		10,886		25,795		22,771
Change in fair value of contingent consideration	(100)		300		—		—		200		—
Property losses and associated expenses, net	(2,818)		8,186		—		—		5,368		—
Other	3,592		1,282		807		999		6,680		1,926
Adjusted EBITDA (Non-GAAP), as previously reported	$	126,369	$	134,921	$	150,716	$	126,057	$	538,064	$	456,174
Research and development milestones (1)	(4,566)		(2,496)		(7,847)		(10,886)		(25,795)		(22,771)
Adjusted EBITDA (Non-GAAP), as revised	$	121,803	$	132,425	$	142,869	$	115,171	$	512,269	$	433,403


	Three months ended								Year ended
	Dec. 31, 2021		Sept. 30, 2021		June 30, 2021		March 31, 2021		Dec. 31, 2021		Dec. 31, 2020
Net (loss) income	$	(20,459)	$	(6,092)	$	32,176	$	14,545	$	20,170	$	68,578
Adjusted to add (deduct):
Non-cash interest	2,123		2,183		2,077		1,972		8,355		7,900
GAAP Income tax expense (benefit)	4,140		4,049		2,648		359		11,196		(104,358)
Amortization	41,543		41,651		41,361		39,514		164,069		163,842
Stock-based compensation expense	7,742		7,708		7,632		5,330		28,412		20,750
Acquisition, site closure, and idle facility expenses	6,027		2,220		5,964		5,792		20,003		23,384
Restructuring and other charges	—		425		—		363		788		2,398
Inventory related charges	16		44		87		114		261		6,574
Charges related to legal matters, net	6,000		19,000		—		—		25,000		5,610
Asset impairment charges	22,353		688		741		323		24,105		43,629
Foreign exchange gain	—		—		—		—		—		(16,350)
Gain on sale of international businesses, net	—		—		—		—		—		(123)
Research and development milestones	4,566		2,496		7,847		10,886		25,795		22,771
Change in fair value of contingent consideration	(100)		300		—		—		200		—
Property losses and associated expenses, net	(2,818)		8,186		—		—		5,368		—
Other	3,592		1,282		807		999		6,680		1,926
Income tax	(19,313)		(17,346)		(21,779)		(17,339)		(75,777)		(54,271)
Net income attributable to non-controlling interests not associated with our Class B common stock	(1,191)		(1,541)		(2,054)		(1,796)		(6,582)		(1,240)
Adjusted net income (Non-GAAP), as previously reported	$	54,221	$	65,253	$	77,507	$	61,062	$	258,043	$	191,020
Research and development milestones (1)	(4,566)		(2,496)		(7,847)		(10,886)		(25,795)		(22,771)
Income tax impact of revision	1,120		525		1,647		2,286		5,578		4,640
Adjusted net income (Non-GAAP), as revised	$	50,775	$	63,282	$	71,307	$	52,462	$	237,826	$	172,889

Weighted average diluted shares outstanding (Non-GAAP) (2)	304,429		303,861		304,103		303,337		303,937		301,030

Adjusted diluted EPS (Non-GAAP), as previously reported	$	0.18	$	0.21	$	0.25	$	0.20	$	0.85	$	0.63
Adjusted diluted EPS (Non-GAAP), as revised	$	0.17	$	0.21	$	0.23	$	0.17	$	0.78	$	0.57


(1)			Beginning in the first quarter of 2022, we will no longer exclude research and development milestone expenses related to license and collaboration agreements from our non-GAAP financial measures and our line item components, including adjusted research and development, adjusted EBITDA, adjusted operating income, adjusted net income and adjusted diluted earnings per share. Prior period results have been revised to reflect this change.

(2)			Weighted average diluted shares outstanding consisted of class A common stock and class B common stock under the if-converted method.


			Full Year 2022 Financial Guidance
Net revenue			$2.15 billion - $2.25 billion
Adjusted EBITDA (1)			$540 million - $560 million
Adjusted diluted EPS (2)			$0.80 - $0.85
Operating cash flow (3)			$225 million - $250 million
Capital expenditures			$75 million - $85 million
Weighted average diluted shares outstanding (4)			Approximately 307 million