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Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information Segment information
In the fourth quarter of 2023, we realigned our reportable operating segments to reflect recent changes in our internal operating and reporting process. The revised reporting structure reflects the internal reporting and review process used by our CODM for making decisions and assessing performance and is consistent with how we currently manage the business. We now manage our business with a focus on three reportable segments. Our Commercial Products segment, which includes NARCAN® products and other commercial products which were sold as part of our travel health business in the second quarter of 2023 (see Note 3, "Divestiture" for more information on the sale of the travel health business), our MCM Products segment, which includes the Anthrax - MCM products, Smallpox - MCM products and Other Products, and our Services segment consisting of our Bioservices offerings.
The Company evaluates the performance of these reportable segments based on revenue and segment adjusted gross margin, which is a non-GAAP financial measure. Segment revenue includes external customer sales, but it does not include inter-segment services. We define segment adjusted gross margin, as segment gross margin excluding the impact of restructuring costs and non-cash items related to changes in fair value of contingent consideration and inventory step-up provision. We define total segment adjusted gross margin, which is a non-GAAP financial measure, as total segment gross margin, excluding the impact of restructuring costs, inventory step-up provision and the fair value of contingent consideration. The Company does not allocate research and development, selling, general and administrative costs, amortization of intangibles assets, interest and other income (expense) or taxes to operating segments in the management reporting reviewed by the CODM. The accounting policies for segment reporting are the same as for the Company as a whole.
The Company manages its assets on a total company basis, not by operating segment, as the Company's operating assets are shared or commingled. Therefore, the Company's CODM does not regularly review any asset information by operating segment and, accordingly, the Company does not report asset information by operating segment.
For all tables presented below, the prior period disclosures have been recast to conform to the current period segment presentation.
The following table presents segment revenues, segment cost of sales or services, segment gross margin, segment gross margin % and total segment adjusted gross margin for each of our reportable segments for the years ended December 31, 2023, 2022, and 2021:
Year Ended December 31,
202320222021
Revenues:
Commercial Products
$497.3 $386.6 $438.0 
MCM Products447.2 579.6 585.9 
Services (1)
78.5 109.9 615.5 
Segment revenues1,023.0 1,076.1 1,639.4 
Contracts and grants revenue26.3 41.4 134.2 
Total revenues$1,049.3 $1,117.5 $1,773.6 
Cost of sales or services:
Cost of Commercial Products
$210.3 $160.3 $187.2 
Cost of MCM Products305.6 264.3 195.4 
Cost of Services189.5 268.5 365.5 
Total cost of sales or services$705.4 $693.1 $748.1 
Gross margin
Commercial Products
$287.0 $226.3 $250.8 
MCM Products141.6 315.3 390.5 
Services (1)
(111.0)(158.6)250.0 
Total segment gross margin (2)
$317.6 $383.0 $891.3 
Gross margin %
Commercial Products
58 %59 %57 %
MCM Products32 %54 %67 %
Services (1)
(141)%(144)%41 %
Total Segment31 %36 %54 %
Segment adjusted gross margin
Commercial Products$287.0 $226.3 $250.8 
MCM Products151.3 369.3 393.4 
Services (1)
(102.6)(158.6)250.0 
Total segment adjusted gross margin$335.7 $437.0 $894.2 
(1) Services revenue, Services gross margin and Services segment adjusted gross margin for the year ended December 31, 2021 includes the impact of $243.1 million of Bioservices leases revenues related to the BARDA COVID-19 Development Public Private Partnership which ended in November 2021.
(2) Segment revenues less total cost of sales or services.
The following table provides a reconciliation of the Company's total segment adjusted gross margin to the Consolidated Statement of Operations:
Year Ended December 31,
202320222021
Total segment adjusted gross margin$335.7 $437.0 $894.2 
Reconciling items:
Contracts and grants revenue$26.3 $41.4 $134.2 
Segment restructuring costs(14.0)— — 
Segment inventory step-up provision(3.9)(51.4)— 
Changes in fair value of contingent consideration(0.2)(2.6)(2.9)
Impairment of long-lived assets(306.7)— — 
Research and development(111.4)(188.3)(235.2)
Selling, general and administrative(368.4)(339.5)(348.7)
Goodwill impairment(218.2)(6.7)(41.7)
Amortization of intangible assets(65.6)(59.9)(58.5)
Interest expense(87.9)(37.3)(34.5)
Gain on sale of business74.2 — — 
Other, net8.9 (11.7)(3.7)
Income (loss) before income taxes$(731.2)$(219.0)$303.2 
The following table includes depreciation expense for each segment:
Year Ended December 31,
202320222021
Depreciation:
Commercial Products$0.3 $3.2 $3.1 
MCM Products22.8 29.7 24.7 
Services22.5 43.2 28.3 
Other13.9 7.3 6.1 
Total$59.5 $83.4 $62.2 
The following table includes revenues by country. Revenues have been attributed based on the location of the customer:
Year Ended December 31,
202320222021
Revenue:
United States$607.2 $886.1 $1,623.4 
Canada224.2 148.6 66.7 
Other217.9 82.8 83.5 
Total revenues$1,049.3 $1,117.5 $1,773.6 
The following table included long-lived assets, net by country. Long-lived assets, net includes right-of-use assets and property, plant & equipment, net, excluding software, net:
December 31,
20232022
Long-lived assets, net:
United States$352.3 $696.1 
Switzerland— 88.1 
Canada37.2 37.5 
Other2.9 5.0 
Total long-lived assets, net$392.4 $826.7