☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 83-4364296 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class: | Trading Symbol(s) | Name of Each Exchange on Which Registered: | ||||||||||||
Common Stock, par value $0.01 per share | ||||||||||||||
VTRS | ||||||||||||||
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. ☐ |
Page | |||||||||||
PART I — FINANCIAL INFORMATION | |||||||||||
ITEM 1. | Condensed Consolidated Financial Statements (unaudited) | ||||||||||
Condensed Consolidated Statements of Comprehensive | |||||||||||
ITEM 2. | |||||||||||
PART II — OTHER INFORMATION | |||||||||||
ITEM 1. | |||||||||||
ITEM 1A. | |||||||||||
ITEM 6. | |||||||||||
(millions of dollars, except common share and per common share data) | Three Months Ended September 27, 2020 | Three Months Ended September 29, 2019 | Nine Months Ended September 27, 2020 | Period From February 14, 2019 (Date of Incorporation) to September 29, 2019 | ||||||||||||
Revenues | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Operating expenses | 0 | 0 | 0 | 0 | ||||||||||||
Other (income)/deductions––net | 221 | 0 | 222 | 0 | ||||||||||||
Loss before benefit for taxes on income | (221 | ) | 0 | (222 | ) | 0 | ||||||||||
Benefit for taxes on income | (52 | ) | 0 | (52 | ) | 0 | ||||||||||
Net loss | $ | (169 | ) | $ | 0 | $ | (170 | ) | $ | 0 | ||||||
Loss per common share––basic and diluted (a) | $ | (1,689,743 | ) | $ | 0 | $ | (1,698,814 | ) | $ | 0 | ||||||
Weighted-average common shares––basic and diluted (a) | 100 | 100 | 100 | 100 | ||||||||||||
2003 LTIP | 2003 Long-Term Incentive Plan | ||||
2020 Form 10-K | Viatris’ annual report on Form 10-K for the fiscal year ended December 31, 2020, as amended | ||||
2020 Revolving Facility | The revolving credit facility available pursuant to the revolving credit agreement, dated as of June 16, 2020, by and among Viatris, certain lenders and issuing banks from time to time party thereto and Bank of America, N.A., as administrative agent and repaid in full in July 2021 | ||||
2021 Revolving Facility | The $4.0 billion revolving facility dated as of July 1, 2021, by and among Viatris, certain lenders and issuing banks from time to time party thereto and Bank of America, N.A., as administrative agent | ||||
Adjusted EBITDA | Non-GAAP financial measure that the Company believes is appropriate to provide information to investors - EBITDA (defined below) is further adjusted for share-based compensation expense, litigation settlements, and other contingencies, net, restructuring and other special items | ||||
ANDA | Abbreviated New Drug Application | ||||
AOCE | Accumulated other comprehensive earnings | ||||
APIs | Active pharmaceutical ingredients | ||||
ASC | Accounting Standards Codification | ||||
Aspen | Aspen Global Incorporated | ||||
ASU | Accounting Standards Update | ||||
Biogen | Biogen MA Inc. and Biogen International GmbH, collectively | ||||
Business Combination Agreement | Business Combination Agreement, dated as of July 29, 2019, as amended from time to time, among Viatris, Mylan, Pfizer and certain of their affiliates | ||||
CAT | Competition Appeals Tribunal | ||||
CJEU | European Court of Justice | ||||
clean energy investments | Used to define the three equity method investments the Company has in limited liability companies that own refined coal production plants whose activities qualify for income tax credits under Section 45 of the Code | ||||
CMA | Competition and Markets Authority | ||||
Code | The U.S. Internal Revenue Code of 1986, as amended | ||||
Combination | Refers to Mylan combining with Pfizer's Upjohn Business in a Reverse Morris Trust transaction to form Viatris on November 16, 2020 | ||||
Commercial Paper Program | The $1.65 billion unsecured commercial paper program entered into as of November 16, 2020 by Viatris, as issuer, Mylan Inc., Utah Acquisition Sub Inc. and Mylan II B.V., as guarantors, and certain dealers from time to time | ||||
Commission | European Commission | ||||
COVID-19 | Novel coronavirus disease of 2019 | ||||
DCGI | Drug Controller General of India | ||||
Developed Markets segment | Viatris’ business segment that includes our operations primarily in the following markets: North America and Europe |
Distribution | Pfizer's distribution to Pfizer stockholders all the issued and outstanding shares of Upjohn Inc. | ||||
DOJ | U.S. Department of Justice | ||||
EBITDA | Non-GAAP financial measure that the Company believes is appropriate to provide information to investors - U.S. GAAP net earnings (loss) adjusted for net contribution attributable to equity method investments, income tax provision (benefit), interest expense and depreciation and amortization | ||||
EDPA | U.S. District Court for the Eastern District of Pennsylvania | ||||
Emerging Markets segment | Viatris’ business segment that includes, but is not limited to, our operations primarily in the following markets: Parts of Asia, the Middle East, South and Central America, Africa, and Eastern Europe | ||||
EU | European Union | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
Exchange Offer | The offer to exchange the Unregistered Upjohn Notes for the Registered Upjohn Notes, which was conducted pursuant to a registration statement filed with the SEC in September 2021 by Viatris Inc., Mylan Inc., Mylan II B.V. and Utah Acquisition Sub Inc. and declared effective on September 28, 2021. The exchange offer expired on October 28, 2021 and settled on October 29, 2021. | ||||
FASB | Financial Accounting Standards Board | ||||
FDA | U.S. Food and Drug Administration | ||||
Form 10-Q | This quarterly report on Form 10-Q for the quarterly period ended September 30, 2021 | ||||
Greater China segment | Viatris’ business segment that includes our operations primarily in the following markets: China, Taiwan and Hong Kong | ||||
Gx | Generic drugs | ||||
IPR | Inter Partes review | ||||
IRS | U.S. Internal Revenue Service | ||||
IT | Information technology | ||||
JANZ segment | Viatris’ business segment that includes our operations in the following markets: Japan, Australia and New Zealand | ||||
LIBOR | London Interbank Offered Rate | ||||
Lilly | Eli Lilly and Company | ||||
maximum leverage ratio | The maximum consolidated leverage ratio financial covenant requiring maintenance of a maximum ratio of consolidated total indebtedness as of the end of any quarter to consolidated EBITDA for the trailing four quarters as defined in the related credit agreements from time to time | ||||
MDL | Multidistrict litigation | ||||
MPI | Mylan Pharmaceutical Inc. | ||||
Mylan | Mylan N.V. and its subsidiaries | ||||
Mylan II | Mylan II, B.V.; a company incorporated under the laws of the Netherlands and an indirect wholly owned subsidiary of Viatris, in which legacy Mylan merged with and into | ||||
Mylan Inc. Senior Notes | The 4.200% Senior Notes due 2023, 3.125% Senior Notes due 2023, 4.550% Senior Notes due 2028, 5.400% Senior Notes due 2043 and 5.200% Senior Notes due 2048 issued by Mylan Inc., which are fully and unconditionally guaranteed on a senior unsecured basis by Mylan II B.V., Viatris Inc. and Utah Acquisition Sub Inc. | ||||
NASDAQ | The NASDAQ Stock Market |
NDA | New drug application | ||||
NHS | National Health Services | ||||
Note Securitization Facility | The note securitization facility entered into in July 2021 for borrowings up to $200 million and expiring in August 2022 | ||||
OTC | Over-the-counter | ||||
Pfizer | Pfizer Inc. | ||||
Plan | Viatris Inc. 2020 Stock Incentive Plan | ||||
PMS | Pharmascience Inc. | ||||
PSUs | Performance awards | ||||
PTAB | U.S. Patent Trial and Appeal Board | ||||
R&D | Research and development | ||||
Receivables Facility | The $400 million accounts receivable entered into in August 2020 and expiring in April 2022 | ||||
Registered Upjohn Notes | The 1.125% Senior Notes due 2022, 1.650% Senior Notes due 2025, 2.300% Senior Notes due 2027, 2.700% Senior Notes due 2030, 3.850% Senior Notes due 2040 and 4.000% Senior Notes due 2050 originally issued on October 29, 2021 registered with the SEC in exchange for the Unregistered Upjohn Notes in a similar aggregate principal amount and with terms substantially identical to the Unregistered Upjohn Notes and fully and unconditionally guaranteed by Mylan Inc., Mylan II and Utah Acquisition Sub Inc. | ||||
respiratory delivery platform | Pfizer’s proprietary dry powder inhaler delivery platform | ||||
restricted stock awards | The Company’s nonvested restricted stock and restricted stock unit awards, including PSUs | ||||
RICO | Racketeer Influenced and Corrupt Organizations Act | ||||
Sanofi | Sanofi-Aventis U.S., LLC | ||||
SARs | Stock Appreciation Rights | ||||
SDNY | U.S. District Court for the Southern District of New York | ||||
SEC | U.S. Securities and Exchange Commission | ||||
Securities Act | Securities Act of 1933, as amended | ||||
Senior Notes | The Registered Upjohn Notes, the Utah Senior Notes and the Mylan Inc. Senior Notes, collectively | ||||
Separation | Pfizer's transfer to Upjohn of substantially all the assets and liabilities comprising the Upjohn Business | ||||
Separation and Distribution Agreement | Separation and Distribution Agreement between Viatris and Pfizer, dated as of July 29, 2019, as amended from time to time | ||||
SG&A | Selling, general and administrative expenses | ||||
Teva | Teva Pharmaceutical Industries Ltd. | ||||
TSA | Transition service agreements | ||||
U.K. | United Kingdom | ||||
Unregistered Upjohn Notes | The 1.125% Senior Notes due 2022, 1.650% Senior Notes due 2025, 2.300% Senior Notes due 2027, 2.700% Senior Notes due 2030, 3.850% Senior Notes due 2040 and 4.000% Senior Notes due 2050 originally issued on June 22, 2020 by Upjohn Inc. (now Viatris Inc.) in a private offering exempt from the registration requirements of the Securities Act and fully and unconditionally guaranteed by Mylan Inc., Mylan II and Utah Acquisition Sub Inc. | ||||
U.S. | United States | ||||
U.S. GAAP | Accounting principles generally accepted in the U.S. |
Upjohn | Upjohn Inc., a wholly owned subsidiary of Pfizer prior to the Distribution, that combined with Mylan and was renamed Viatris Inc. | ||||
Upjohn Business | Pfizer’s off-patent branded and generic established medicines business that, in connection with the Combination, was separated from Pfizer and combined with Mylan to form Viatris | ||||
USD Term Loan Agreement | The $600 million delayed draw term loan credit agreement, dated as of June 16, 2020 by and among Viatris, Mizuho Bank, Ltd. and MUFG Bank, Ltd., as administrative agent, and repaid in full in July 2021 | ||||
Utah Senior Notes | The 3.150% Senior Notes due 2021, 3.950% Senior Notes due 2026 and 5.250% Senior Notes due 2046 issued by Utah Acquisition Sub Inc., which are fully and unconditionally guaranteed on a senior unsecured basis by Mylan Inc., Viatris Inc. and Mylan II B.V. | ||||
Viatris | Viatris Inc., formerly known as Upjohn Inc. prior to the completion of the Combination | ||||
YEN Term Loan Agreement | The ¥40 billion term loan agreement dated as of July 1, 2021, by and among Viatris, Mizuho Bank, Ltd. and MUFG Bank, Ltd., as administrative agent |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Net sales | $ | 4,520.5 | $ | 2,948.1 | $ | 13,482.3 | $ | 8,232.2 | |||||||||||||||
Other revenues | 16.1 | 24.0 | 62.4 | 90.3 | |||||||||||||||||||
Total revenues | 4,536.6 | 2,972.1 | 13,544.7 | 8,322.5 | |||||||||||||||||||
Cost of sales | 2,962.5 | 1,813.6 | 9,515.6 | 5,232.2 | |||||||||||||||||||
Gross profit | 1,574.1 | 1,158.5 | 4,029.1 | 3,090.3 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 152.1 | 129.8 | 483.9 | 400.3 | |||||||||||||||||||
Selling, general and administrative | 1,055.0 | 658.4 | 3,446.3 | 1,983.2 | |||||||||||||||||||
Litigation settlements and other contingencies, net | 9.4 | 18.9 | 55.3 | 36.5 | |||||||||||||||||||
Total operating expenses | 1,216.5 | 807.1 | 3,985.5 | 2,420.0 | |||||||||||||||||||
Earnings from operations | 357.6 | 351.4 | 43.6 | 670.3 | |||||||||||||||||||
Interest expense | 151.9 | 117.3 | 488.0 | 353.4 | |||||||||||||||||||
Other expense (income), net | 5.8 | (7.5) | 16.1 | 24.6 | |||||||||||||||||||
Earnings (loss) before income taxes | 199.9 | 241.6 | (460.5) | 292.3 | |||||||||||||||||||
Income tax (benefit) provision | (111.6) | 55.9 | 544.8 | 46.4 | |||||||||||||||||||
Net earnings (loss) | $ | 311.5 | $ | 185.7 | $ | (1,005.3) | $ | 245.9 | |||||||||||||||
Earnings (loss) per share attributable to Viatris Inc. shareholders | |||||||||||||||||||||||
Basic | $ | 0.26 | $ | 0.36 | $ | (0.83) | $ | 0.48 | |||||||||||||||
Diluted | $ | 0.26 | $ | 0.36 | $ | (0.83) | $ | 0.48 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 1,209.3 | 516.9 | 1,208.6 | 516.8 | |||||||||||||||||||
Diluted | 1,212.6 | 517.7 | 1,208.6 | 517.3 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net earnings (loss) | $ | 311.5 | $ | 185.7 | $ | (1,005.3) | $ | 245.9 | |||||||||||||||
Other comprehensive (loss) earnings, before tax: | |||||||||||||||||||||||
Foreign currency translation adjustment | (407.4) | 687.7 | (967.9) | 483.1 | |||||||||||||||||||
Change in unrecognized gain (loss) and prior service cost related to defined benefit plans | 0.8 | (1.6) | 74.1 | 3.4 | |||||||||||||||||||
Net unrecognized gain (loss) on derivatives in cash flow hedging relationships | 11.8 | 32.5 | 27.5 | (0.2) | |||||||||||||||||||
Net unrecognized gain (loss) on derivatives in net investment hedging relationships | 168.4 | (114.7) | 318.4 | (119.7) | |||||||||||||||||||
Net unrealized (loss) gain on marketable securities | (0.1) | — | (0.8) | 0.8 | |||||||||||||||||||
Other comprehensive (loss) earnings, before tax | (226.5) | 603.9 | (548.7) | 367.4 | |||||||||||||||||||
Income tax provision (benefit) | 40.4 | 2.8 | 65.2 | (6.0) | |||||||||||||||||||
Other comprehensive (loss) earnings, net of tax | (266.9) | 601.1 | (613.9) | 373.4 | |||||||||||||||||||
Comprehensive earnings (loss) | $ | 44.6 | $ | 786.8 | $ | (1,619.2) | $ | 619.3 |
(millions of dollars) | Three Months Ended September 27, 2020 | Three Months Ended September 29, 2019 | Nine Months Ended September 27, 2020 | Period From February 14, 2019 (Date of Incorporation) to September 29, 2019 | ||||||||||||
Net loss | $ | (169 | ) | $ | 0 | $ | (170 | ) | $ | 0 | ||||||
Other comprehensive income/(loss) before tax | 0 | 0 | 0 | 0 | ||||||||||||
Tax provision/(benefit) on other comprehensive income/(loss) | 0 | 0 | 0 | 0 | ||||||||||||
Other comprehensive income/(loss) | 0 | 0 | 0 | 0 | ||||||||||||
Comprehensive loss attributable to Upjohn Inc. | $ | (169 | ) | $ | 0 | $ | (170 | ) | $ | 0 | ||||||
(millions of dollars, except common share and per common share data) | As of September 27, 2020 | As of December 31, 2019 | ||||||||||
(Unaudited) | ||||||||||||
Assets | ||||||||||||
Restricted short-term investments (a) | $ | 11,413 | $ | 0 | ||||||||
Other current assets | 0 | 0 | ||||||||||
Total current assets | 11,413 | 0 | ||||||||||
Total assets | $ | 11,413 | $ | 0 | ||||||||
Liabilities and Equity | ||||||||||||
Other current liabilities | $ | 79 | $ | 0 | ||||||||
Total current liabilities | 79 | 0 | ||||||||||
Long-term debt | 11,535 | 0 | ||||||||||
Total liabilities | 11,614 | 0 | ||||||||||
Commitments and Contingencies | ||||||||||||
Common stock, $0.01 par value; 1,000 shares authorized; issued: 2020—100 shares; 2019—100 shares | 0 | 0 | ||||||||||
Additional paid-in capital | (31 | ) | 0 | |||||||||
Due from shareholder | 0 | 0 | ||||||||||
Retained earnings/ (deficit) | (170 | ) | 0 | |||||||||
Accumulated other comprehensive income/(loss) | 0 | 0 | ||||||||||
Total Upjohn Inc. shareholder’s equity/(deficit) | (201 | ) | 0 | |||||||||
Total liabilities and equity | $ | 11,413 | $ | 0 |
September 30, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 756.6 | $ | 844.4 | |||||||
Accounts receivable, net | 4,345.5 | 4,843.8 | |||||||||
Inventories | 4,081.9 | 5,471.9 | |||||||||
Prepaid expenses and other current assets | 2,124.4 | 1,707.4 | |||||||||
Total current assets | 11,308.4 | 12,867.5 | |||||||||
Property, plant and equipment, net | 3,114.0 | 3,459.9 | |||||||||
Intangible assets, net | 26,987.0 | 29,683.2 | |||||||||
Goodwill | 12,169.5 | 12,347.0 | |||||||||
Deferred income tax benefit - noncurrent | 1,451.9 | 2,147.9 | |||||||||
Other assets | 1,039.6 | 1,047.5 | |||||||||
Total assets | $ | 56,070.4 | $ | 61,553.0 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 1,659.6 | $ | 1,904.2 | |||||||
Short-term borrowings | 1,706.9 | 1,100.9 | |||||||||
Income taxes payable | 198.0 | 288.6 | |||||||||
Current portion of long-term debt and other long-term obligations | 1,908.1 | 2,308.5 | |||||||||
Other current liabilities | 4,631.3 | 4,960.7 | |||||||||
Total current liabilities | 10,103.9 | 10,562.9 | |||||||||
Long-term debt | 19,854.3 | 22,429.2 | |||||||||
Deferred income tax liability | 2,918.0 | 3,123.7 | |||||||||
Other long-term obligations | 2,052.9 | 2,483.1 | |||||||||
Total liabilities | 34,929.1 | 38,598.9 | |||||||||
Equity | |||||||||||
Viatris Inc. shareholders’ equity | |||||||||||
Common stock — par value $0.01 per share as of September 30, 2021 and December 31, 2020: | |||||||||||
Shares authorized: 3,000,000,000 as of September 30, 2021 and December 31, 2020 | |||||||||||
Shares issued and outstanding: 1,209,378,962 and 1,206,895,644 as of September 30, 2021 and December 31, 2020 | 12.1 | 12.1 | |||||||||
Additional paid-in capital | 18,514.1 | 18,438.8 | |||||||||
Retained earnings | 4,087.0 | 5,361.2 | |||||||||
Accumulated other comprehensive loss | (1,471.9) | (858.0) | |||||||||
Total equity | 21,141.3 | 22,954.1 | |||||||||
Total liabilities and equity | $ | 56,070.4 | $ | 61,553.0 |
Common Stock | ||||||||||||||||||||||||||||
(millions of dollars, except common shares) | Shares | Par Value | Add’l Paid-In Capital | Due from Share- holder | Retained Earnings/ (Deficit) | Accum. Other Comp. Income/ (Loss) | Upjohn Inc. Shareholder’s Equity/ (Deficit) | |||||||||||||||||||||
Balance, June 28, 2020 | 100 | $ | 0 | $ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | (1 | ) | |||||||||||||
Net loss | (169 | ) | (169 | ) | ||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | 0 | 0 | ||||||||||||||||||||||||||
Net transfers –– (a) | (31 | ) | (31 | ) | ||||||||||||||||||||||||
Balance, September 27, 2020 | 100 | $ | 0 | $ | (31 | ) | $ | 0 | $ | (170 | ) | $ | 0 | $ | (201 | ) |
Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Cost | Shares | Cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 1,209,212,338 | $ | 12.1 | $ | 18,489.9 | $ | 3,909.9 | — | $ | — | $ | (1,205.0) | $ | 21,206.9 | |||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 311.5 | — | — | — | 311.5 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | (266.9) | (266.9) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock and stock options exercised, net | 166,624 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Taxes related to the net share settlement of equity awards | — | — | (0.8) | — | — | — | — | (0.8) | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 25.0 | — | — | — | — | 25.0 | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $0.11 per common share | — | — | — | (134.4) | — | — | — | (134.4) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 1,209,378,962 | $ | 12.1 | $ | 18,514.1 | $ | 4,087.0 | — | $ | — | $ | (1,471.9) | $ | 21,141.3 | |||||||||||||||||||||||||||||||||||||||
Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Cost | Shares | Cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 1,206,895,644 | $ | 12.1 | $ | 18,438.8 | $ | 5,361.2 | — | $ | — | $ | (858.0) | $ | 22,954.1 | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (1,005.3) | — | — | — | (1,005.3) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | (613.9) | (613.9) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock and stock options exercised, net | 2,483,318 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Taxes related to the net share settlement of equity awards | — | — | (13.4) | — | — | — | — | (13.4) | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 88.7 | — | — | — | — | 88.7 | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $0.11 per common share | — | — | — | (268.9) | — | — | — | (268.9) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 1,209,378,962 | $ | 12.1 | $ | 18,514.1 | $ | 4,087.0 | — | $ | — | $ | (1,471.9) | $ | 21,141.3 |
Common Stock | ||||||||||||||||||||||||||||
(millions of dollars, except common shares) | Shares | Par Value | Add’l Paid-In Capital | Due from Share- holder | Retained Earnings/ (Deficit) | Accum. Other Comp. Income/ (Loss) | Upjohn Inc. Shareholder’s Equity/ (Deficit) | |||||||||||||||||||||
Balance, June 30, 2019 | 100 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
Net loss | 0 | 0 | ||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | 0 | 0 | ||||||||||||||||||||||||||
Net transfers––Pfizer | 0 | 0 | ||||||||||||||||||||||||||
Balance, September 29, 2019 | 100 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
Common Stock | ||||||||||||||||||||||||||||
(millions of dollars, except common shares) | Shares | Par Value | Add’l Paid-In Capital | Due from Share- holder | Retained Earnings/ (Deficit) | Accum. Other Comp. Income/ (Loss) | Upjohn Inc. Shareholder’s Equity/ (Deficit) | |||||||||||||||||||||
Balance, January 1, 2020 | 100 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
Net loss | (170 | ) | (170 | ) | ||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | 0 | 0 | ||||||||||||||||||||||||||
Net transfers––Pfizer (a) | (31 | ) | (31 | ) | ||||||||||||||||||||||||
Balance, September 27, 2020 | 100 | $ | 0 | $ | (31 | ) | $ | 0 | $ | (170 | ) | $ | 0 | $ | (201 | ) |
Common Stock | ||||||||||||||||||||||||||||
(millions of dollars, except common shares) | Shares | Par Value | Add’l Paid-In Capital | Due from Share- holder | Retained Earnings/ (Deficit) | Accum. Other Comp. Income/ (Loss) | Upjohn Inc. Shareholder’s Equity/ (Deficit) | |||||||||||||||||||||
Initial capitalization, February 14, 2019 (date of incorporation) | 100 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
Net loss | 0 | 0 | ||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | 0 | 0 | ||||||||||||||||||||||||||
Net transfers––Pfizer | 0 | 0 | ||||||||||||||||||||||||||
Balance, September 29, 2019 | 100 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary Shares (1) | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Cost | Shares | Cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 541,545,308 | $ | 6.1 | $ | 8,673.2 | $ | 6,091.5 | 24,598,074 | $ | (999.7) | $ | (2,024.9) | $ | 11,746.2 | |||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 185.7 | — | — | — | 185.7 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings, net of tax | — | — | — | — | — | — | 601.1 | 601.1 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock and stock options exercised, net | 4,747 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 15.1 | — | — | — | — | 15.1 | |||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | (0.2) | — | — | — | (0.2) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 541,550,055 | $ | 6.1 | $ | 8,688.3 | $ | 6,277.0 | 24,598,074 | $ | (999.7) | $ | (1,423.8) | $ | 12,547.9 | |||||||||||||||||||||||||||||||||||||||
Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary Shares (1) | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Cost | Shares | Cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 540,746,871 | $ | 6.1 | $ | 8,643.5 | $ | 6,031.1 | 24,598,074 | $ | (999.7) | $ | (1,797.2) | $ | 11,883.8 | |||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 245.9 | — | — | — | 245.9 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive earnings, net of tax | — | — | — | — | — | — | 373.4 | 373.4 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock and stock options exercised, net | 803,184 | — | 0.6 | — | — | — | — | 0.6 | |||||||||||||||||||||||||||||||||||||||||||||
Taxes related to the net share settlement of equity awards | — | — | (5.6) | — | — | — | — | (5.6) | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 49.8 | — | — | — | — | 49.8 | |||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 541,550,055 | $ | 6.1 | $ | 8,688.3 | $ | 6,277.0 | 24,598,074 | $ | (999.7) | $ | (1,423.8) | $ | 12,547.9 |
(millions of dollars) | Nine Months Ended September 27, 2020 | Period From February 14, 2019 (Date of Incorporation) to September 29, 2019 | ||||||
Operating Activities | ||||||||
Net loss | $ | (170 | ) | $ | 0 | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | — | |||||||
Amortization of bond discount and issuance costs | 3 | 0 | ||||||
Currency remeasurement loss on euro notes | 144 | |||||||
Benefit for taxes on income (a) | (52 | ) | 0 | |||||
Other changes in assets and liabilities | 77 | 0 | ||||||
Net cash provided by operating activities (b) | 1 | 0 | ||||||
Investing Activities | ||||||||
Net (purchases of)/proceeds from redemptions/sales of short-term investments (c) | (11,413 | ) | 0 | |||||
Net cash used in investing activities | (11,413 | ) | 0 | |||||
Financing Activities | ||||||||
Proceeds from issuance of long-term debt (c) | 11,478 | 0 | ||||||
Long-term debt issuance costs paid (c) | (88 | ) | 0 | |||||
Financing activities with Pfizer (d) | 21 | |||||||
Net cash provided by financing activities | 11,412 | 0 | ||||||
Effect of exchange-rate changes on cash and cash equivalents | 0 | 0 | ||||||
Net increase/(decrease) in cash and cash equivalents | 0 | 0 | ||||||
Cash and cash equivalents, beginning | 0 | 0 | ||||||
Cash and cash equivalents, end | $ | 0 | $ | 0 | ||||
Supplemental Cash Flow Information | ||||||||
Cash paid during the period for: | ||||||||
Income taxes | $ | 0 | $ | 0 | ||||
Interest | 0 | 0 |
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) earnings | $ | (1,005.3) | $ | 245.9 | |||||||
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 3,756.7 | 1,263.0 | |||||||||
Share-based compensation expense | 88.7 | 49.8 | |||||||||
Deferred income tax expense (benefit) | 728.6 | (210.4) | |||||||||
Loss from equity method investments | 52.2 | 37.4 | |||||||||
Other non-cash items | 288.2 | 134.3 | |||||||||
Litigation settlements and other contingencies, net | 50.0 | 43.6 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 69.1 | (27.3) | |||||||||
Inventories | (351.1) | (532.4) | |||||||||
Accounts payable | (108.4) | (99.7) | |||||||||
Income taxes | (675.3) | 115.2 | |||||||||
Other operating assets and liabilities, net | (399.6) | 176.2 | |||||||||
Net cash provided by operating activities | 2,493.8 | 1,195.6 | |||||||||
Cash flows from investing activities: | |||||||||||
Cash received from acquisitions | 277.0 | — | |||||||||
Capital expenditures | (259.8) | (126.1) | |||||||||
Purchase of marketable securities | (26.3) | (96.1) | |||||||||
Proceeds from the sale of marketable securities | 26.0 | 38.6 | |||||||||
Payments for product rights and other, net | (28.2) | (97.3) | |||||||||
Proceeds from sale of assets and subsidiaries | 96.5 | — | |||||||||
Proceeds from sale of property, plant and equipment | 16.1 | 2.1 | |||||||||
Net cash provided by (used in) investing activities | 101.3 | (278.8) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt | 1,710.1 | 33.2 | |||||||||
Payments of long-term debt | (4,200.7) | (588.9) | |||||||||
Change in short-term borrowings, net | 606.1 | 0.3 | |||||||||
Cash dividends paid | (266.0) | — | |||||||||
Taxes paid related to net share settlement of equity awards | (17.1) | (7.1) | |||||||||
Non-contingent payments for product rights | (456.0) | (139.5) | |||||||||
Contingent consideration payments | (28.6) | (48.5) | |||||||||
Payments of financing fees | (6.5) | (1.8) | |||||||||
Proceeds from exercise of stock options | — | 0.6 | |||||||||
Other items, net | (4.1) | (3.1) | |||||||||
Net cash used in financing activities | (2,662.8) | (754.8) | |||||||||
Effect on cash of changes in exchange rates | (20.6) | 14.0 | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (88.3) | 176.0 | |||||||||
Cash, cash equivalents and restricted cash — beginning of period | 850.0 | 491.1 | |||||||||
Cash, cash equivalents and restricted cash — end of period | $ | 761.7 | $ | 667.1 |
(In millions) | Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||
Product Category | Developed Markets | Greater China | JANZ | Emerging Markets | Total | ||||||||||||||||||||||||
Brands | $ | 1,522.7 | $ | 566.8 | $ | 299.1 | $ | 414.5 | $ | 2,803.1 | |||||||||||||||||||
Complex Gx and Biosimilars | 305.1 | — | 13.2 | 13.7 | 332.0 | ||||||||||||||||||||||||
Generics | 828.1 | — | 193.0 | 364.3 | 1,385.4 | ||||||||||||||||||||||||
Total | $ | 2,655.9 | $ | 566.8 | $ | 505.3 | $ | 792.5 | $ | 4,520.5 |
(In millions) | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||
Product Category | Developed Markets | Greater China | JANZ | Emerging Markets | Total | ||||||||||||||||||||||||
Brands | $ | 4,350.5 | $ | 1,706.9 | $ | 878.5 | $ | 1,293.5 | $ | 8,229.4 | |||||||||||||||||||
Complex Gx and Biosimilars | 926.4 | — | 31.9 | 35.4 | 993.7 | ||||||||||||||||||||||||
Generics | 2,591.0 | 2.1 | 577.8 | 1,088.3 | 4,259.2 | ||||||||||||||||||||||||
Total | $ | 7,867.9 | $ | 1,709.0 | $ | 1,488.2 | $ | 2,417.2 | $ | 13,482.3 |
(In millions) | Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||
Product Category | Developed Markets | Greater China | JANZ | Emerging Markets | Total | ||||||||||||||||||||||||
Brands | $ | 1,013.2 | $ | 30.5 | $ | 116.8 | $ | 80.9 | $ | 1,241.4 | |||||||||||||||||||
Complex Gx and Biosimilars | 325.8 | 0.1 | 8.3 | 18.1 | 352.3 | ||||||||||||||||||||||||
Generics | 824.2 | 0.9 | 157.3 | 372.0 | 1,354.4 | ||||||||||||||||||||||||
Total | $ | 2,163.2 | $ | 31.5 | $ | 282.4 | $ | 471.0 | $ | 2,948.1 |
(In millions) | Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||
Product Category | Developed Markets | Greater China | JANZ | Emerging Markets | Total | ||||||||||||||||||||||||
Brands | $ | 2,760.2 | $ | 67.2 | $ | 335.5 | $ | 213.0 | $ | 3,375.9 | |||||||||||||||||||
Complex Gx and Biosimilars | 896.0 | 0.2 | 25.2 | 35.3 | 956.7 | ||||||||||||||||||||||||
Generics | 2,476.1 | 1.9 | 445.1 | 976.5 | 3,899.6 | ||||||||||||||||||||||||
Total | $ | 6,132.3 | $ | 69.3 | $ | 805.8 | $ | 1,224.8 | $ | 8,232.2 |
(In millions) | Three months ended September 30, 2021 | Nine months ended September 30, 2021 | ||||||||||||
Select Key Global Products | ||||||||||||||
Lipitor ® | $ | 410.0 | $ | 1,272.9 | ||||||||||
Norvasc ® | 198.4 | 635.9 | ||||||||||||
Lyrica ® | 175.6 | 555.9 | ||||||||||||
Viagra ® | 138.0 | 412.4 | ||||||||||||
EpiPen® Auto-Injectors | 129.5 | 337.3 | ||||||||||||
Celebrex ® | 86.0 | 257.3 | ||||||||||||
Creon ® | 81.1 | 231.7 | ||||||||||||
Effexor ® | 79.5 | 239.6 | ||||||||||||
Zoloft ® | 61.3 | 208.8 | ||||||||||||
Xalabrands | 55.8 | 172.0 | ||||||||||||
Select Key Segment Products | ||||||||||||||
Influvac ® | $ | 161.2 | $ | 165.3 | ||||||||||
Amitiza ® | 49.5 | 147.5 | ||||||||||||
Xanax ® | 47.6 | 141.5 | ||||||||||||
Yupelri ® | 39.4 | 118.1 | ||||||||||||
Dymista ® | 35.0 | 129.9 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Gross sales | $ | 7,739.5 | $ | 4,986.4 | $ | 23,058.8 | $ | 13,868.0 | |||||||||||||||
Gross to net adjustments: | |||||||||||||||||||||||
Chargebacks | (1,439.3) | (967.0) | (4,112.1) | (2,616.9) | |||||||||||||||||||
Rebates, promotional programs and other sales allowances | (1,521.6) | (926.3) | (4,656.7) | (2,592.3) | |||||||||||||||||||
Returns | (87.9) | (76.6) | (289.2) | (193.2) | |||||||||||||||||||
Governmental rebate programs | (170.2) | (68.4) | (518.5) | (233.4) | |||||||||||||||||||
Total gross to net adjustments | $ | (3,219.0) | $ | (2,038.3) | $ | (9,576.5) | $ | (5,635.8) | |||||||||||||||
Net sales | $ | 4,520.5 | $ | 2,948.1 | $ | 13,482.3 | $ | 8,232.2 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Accounts receivable, net | $ | 1,733.0 | $ | 1,802.9 | |||||||
Other current liabilities | 1,395.8 | 1,211.8 | |||||||||
Total | $ | 3,128.8 | $ | 3,014.7 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Trade receivables, net | $ | 3,841.5 | $ | 3,891.3 | |||||||
Other receivables | 504.0 | 952.5 | |||||||||
Accounts receivable, net | $ | 4,345.5 | $ | 4,843.8 |
Accounting Standard Update | Effective Date | ||||
ASU 2020-04: Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting | January 1, 2023 |
(In millions) | Preliminary Purchase Price Allocation as of December 31, 2020 (a) | Measurement Period and Other Adjustments (b) | Preliminary Purchase Price Allocation as of September 30, 2021 (as adjusted) | ||||||||||||||
Current assets (excluding inventories and net of cash acquired) | $ | 2,841.9 | $ | (7.3) | $ | 2,834.6 | |||||||||||
Inventories | 2,588.9 | (34.2) | 2,554.7 | ||||||||||||||
Property, plant and equipment | 1,394.1 | (5.0) | 1,389.1 | ||||||||||||||
Identified intangible assets | 18,040.0 | — | 18,040.0 | ||||||||||||||
Goodwill | 2,107.5 | 218.6 | 2,326.1 | ||||||||||||||
Deferred income tax benefit | 1,481.9 | 247.4 | 1,729.3 | ||||||||||||||
Other assets | 792.1 | (0.1) | 792.0 | ||||||||||||||
Total assets acquired | $ | 29,246.4 | $ | 419.4 | $ | 29,665.8 | |||||||||||
Current liabilities | 2,760.2 | 418.6 | 3,178.8 | ||||||||||||||
Long-term debt, including current portion | 13,076.2 | — | 13,076.2 | ||||||||||||||
Deferred tax liabilities | 1,656.9 | (1.7) | 1,655.2 | ||||||||||||||
Other noncurrent liabilities | 1,441.5 | 2.5 | 1,444.0 | ||||||||||||||
Net assets acquired (net of $415.8 of cash acquired) | $ | 10,311.6 | $ | — | $ | 10,311.6 | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(Unaudited, in millions, except per share amounts) | September 30, 2020 | September 30, 2020 | |||||||||||||||
Total revenues | $ | 4,712.2 | $ | 13,707.0 | |||||||||||||
Net earnings | $ | 419.1 | $ | 1,642.8 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.35 | $ | 1.36 | |||||||||||||
Diluted | $ | 0.35 | $ | 1.36 | |||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 1,206.8 | 1,206.7 | |||||||||||||||
Diluted | 1,207.6 | 1,207.2 |
Number of Shares Under Stock Awards | Weighted Average Exercise Price per Share | ||||||||||
Outstanding at December 31, 2020 | 6,711,731 | $ | 35.36 | ||||||||
Forfeited | (1,002,889) | $ | 25.24 | ||||||||
Outstanding at September 30, 2021 | 5,708,842 | $ | 37.14 | ||||||||
Vested and expected to vest at September 30, 2021 | 5,615,521 | $ | 37.40 | ||||||||
Exercisable at September 30, 2021 | 5,071,319 | $ | 39.19 |
Number of Restricted Stock Awards | Weighted Average Grant-Date Fair Value Per Share | ||||||||||
Nonvested at December 31, 2020 | 12,073,790 | $ | 18.34 | ||||||||
Granted | 9,850,633 | 14.42 | |||||||||
Released | (3,029,725) | 24.94 | |||||||||
Forfeited | (1,383,140) | 15.42 | |||||||||
Nonvested at September 30, 2021 | 17,511,558 | $ | 15.14 |
Pension and Other Postretirement Benefits | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Service cost | $ | 10.8 | $ | 5.3 | $ | 32.5 | $ | 15.9 | |||||||||||||||
Interest cost | 8.5 | 2.9 | 25.7 | 8.7 | |||||||||||||||||||
Expected return on plan assets | (16.6) | (3.3) | (49.8) | (10.1) | |||||||||||||||||||
Amortization of prior service costs | (0.1) | — | (0.4) | — | |||||||||||||||||||
Recognized net actuarial losses | 0.4 | 0.1 | 1.2 | 0.4 | |||||||||||||||||||
Settlement gain | — | — | (3.1) | — | |||||||||||||||||||
Net periodic benefit cost | $ | 3.0 | $ | 5.0 | $ | 6.1 | $ | 14.9 |
(In millions) | September 30, 2021 | December 31, 2020 | September 30, 2020 | ||||||||||||||
Cash and cash equivalents | $ | 756.6 | $ | 844.4 | $ | 664.5 | |||||||||||
Restricted cash, included in other current and non-current assets | 5.1 | 5.6 | 2.6 | ||||||||||||||
Cash, cash equivalents and restricted cash | $ | 761.7 | $ | 850.0 | $ | 667.1 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Raw materials | $ | 955.7 | $ | 958.4 | |||||||
Work in process | 836.4 | 1,438.1 | |||||||||
Finished goods | 2,289.8 | 3,075.4 | |||||||||
Inventories | $ | 4,081.9 | $ | 5,471.9 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Prepaid expenses | $ | 237.3 | $ | 267.8 | |||||||
Available-for-sale fixed income securities | 38.7 | 39.1 | |||||||||
Fair value of financial instruments | 146.5 | 118.6 | |||||||||
Equity securities | 49.0 | 45.8 | |||||||||
Other current assets | 1,652.9 | 1,236.1 | |||||||||
Prepaid expenses and other current assets | $ | 2,124.4 | $ | 1,707.4 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Machinery and equipment | $ | 3,070.3 | $ | 3,235.0 | |||||||
Buildings and improvements | 1,888.4 | 1,954.8 | |||||||||
Construction in progress | 493.1 | 376.3 | |||||||||
Land and improvements | 146.0 | 155.8 | |||||||||
Gross property, plant and equipment | 5,597.8 | 5,721.9 | |||||||||
Accumulated depreciation | 2,483.8 | 2,262.0 | |||||||||
Property, plant and equipment, net | $ | 3,114.0 | $ | 3,459.9 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Equity method investments, clean energy investments | $ | 11.6 | $ | 47.9 | |||||||
Operating lease right-of-use assets | 305.9 | 323.6 | |||||||||
Other long-term assets | 722.1 | 676.0 | |||||||||
Other assets | $ | 1,039.6 | $ | 1,047.5 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Trade accounts payable | $ | 1,139.0 | $ | 1,345.7 | |||||||
Other payables | 520.6 | 558.5 | |||||||||
Accounts payable | $ | 1,659.6 | $ | 1,904.2 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Accrued sales allowances | $ | 1,395.8 | $ | 1,211.8 | |||||||
Legal and professional accruals, including litigation accruals | 474.9 | 362.9 | |||||||||
Payroll and employee benefit liabilities | 712.0 | 828.2 | |||||||||
Contingent consideration | 85.0 | 100.5 | |||||||||
Accrued interest | 224.1 | 90.9 | |||||||||
Restructuring | 249.7 | 149.2 | |||||||||
Equity method investments, clean energy investments | 20.2 | 47.5 | |||||||||
Fair value of financial instruments | 47.1 | 103.6 | |||||||||
Operating lease liability | 88.9 | 92.9 | |||||||||
Other | 1,333.6 | 1,973.2 | |||||||||
Other current liabilities | $ | 4,631.3 | $ | 4,960.7 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Employee benefit liabilities | $ | 884.9 | $ | 1,020.4 | |||||||
Contingent consideration | 121.9 | 123.1 | |||||||||
Tax related items, including contingencies | 399.4 | 469.5 | |||||||||
Operating lease liability | 213.7 | 229.5 | |||||||||
Accrued Restructuring | 122.0 | 134.8 | |||||||||
Other | 311.0 | 505.8 | |||||||||
Other long-term obligations | $ | 2,052.9 | $ | 2,483.1 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Total revenues | $ | 94.0 | $ | 113.5 | $ | 293.5 | $ | 288.8 | |||||||||||||||
Gross loss | (1.3) | (1.4) | (3.9) | (3.6) | |||||||||||||||||||
Operating and non-operating expense | 4.8 | 5.2 | 13.7 | 14.4 | |||||||||||||||||||
Net loss | $ | (6.1) | $ | (6.6) | $ | (17.6) | $ | (18.0) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
(In millions, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Basic earnings (loss) attributable to Viatris Inc. common shareholders | |||||||||||||||||||||||
Net earnings (loss) attributable to Viatris Inc. common shareholders | $ | 311.5 | $ | 185.7 | $ | (1,005.3) | $ | 245.9 | |||||||||||||||
Shares (denominator): | |||||||||||||||||||||||
Weighted average shares outstanding | 1,209.3 | 516.9 | 1,208.6 | 516.8 | |||||||||||||||||||
Basic earnings (loss) per share attributable to Viatris Inc. shareholders | $ | 0.26 | $ | 0.36 | $ | (0.83) | $ | 0.48 | |||||||||||||||
Diluted earnings (loss) attributable to Viatris Inc. common shareholders | |||||||||||||||||||||||
Net earnings (loss) attributable to Viatris Inc. common shareholders | $ | 311.5 | $ | 185.7 | $ | (1,005.3) | $ | 245.9 | |||||||||||||||
Shares (denominator): | |||||||||||||||||||||||
Weighted average shares outstanding | 1,209.3 | 516.9 | 1,208.6 | 516.8 | |||||||||||||||||||
Share-based awards and warrants | 3.3 | 0.8 | — | 0.5 | |||||||||||||||||||
Total dilutive shares outstanding | 1,212.6 | 517.7 | 1,208.6 | 517.3 | |||||||||||||||||||
Diluted earnings (loss) per share attributable to Viatris Inc. shareholders | $ | 0.26 | $ | 0.36 | $ | (0.83) | $ | 0.48 |
(In millions) | Developed Markets | Greater China | JANZ | Emerging Markets | Total | ||||||||||||||||||||||||
Balance at December 31, 2020: | |||||||||||||||||||||||||||||
Goodwill | $ | 9,569.5 | $ | 738.3 | $ | 864.0 | $ | 1,560.2 | $ | 12,732.0 | |||||||||||||||||||
Accumulated impairment losses | (385.0) | — | — | — | (385.0) | ||||||||||||||||||||||||
9,184.5 | 738.3 | 864.0 | 1,560.2 | 12,347.0 | |||||||||||||||||||||||||
Measurement period and other adjustments | 73.0 | 67.7 | 22.5 | 55.4 | 218.6 | ||||||||||||||||||||||||
Foreign currency translation | (406.9) | 6.3 | (49.8) | 54.3 | (396.1) | ||||||||||||||||||||||||
$ | 8,850.6 | $ | 812.3 | $ | 836.7 | $ | 1,669.9 | $ | 12,169.5 | ||||||||||||||||||||
Balance at September 30, 2021: | |||||||||||||||||||||||||||||
Goodwill | $ | 9,235.6 | $ | 812.3 | $ | 836.7 | $ | 1,669.9 | $ | 12,554.5 | |||||||||||||||||||
Accumulated impairment losses | (385.0) | — | — | — | (385.0) | ||||||||||||||||||||||||
$ | 8,850.6 | $ | 812.3 | $ | 836.7 | $ | 1,669.9 | $ | 12,169.5 |
(In millions) | Weighted Average Life (Years) | Original Cost | Accumulated Amortization | Net Book Value | |||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||
Product rights, licenses and other (1) | 15 | $ | 39,352.4 | $ | 12,445.2 | $ | 26,907.2 | ||||||||||||||||
In-process research and development | 79.8 | — | 79.8 | ||||||||||||||||||||
$ | 39,432.2 | $ | 12,445.2 | $ | 26,987.0 | ||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Product rights, licenses and other (1) | 15 | $ | 40,404.1 | $ | 10,801.6 | $ | 29,602.5 | ||||||||||||||||
In-process research and development | 80.7 | — | 80.7 | ||||||||||||||||||||
$ | 40,484.8 | $ | 10,801.6 | $ | 29,683.2 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Intangible asset amortization expense | $ | 671.5 | $ | 368.1 | $ | 2,037.5 | $ | 1,070.9 | |||||||||||||||
Intangible asset impairment charges | — | — | 83.4 | — | |||||||||||||||||||
Total intangible asset amortization expense (including impairment charges) | $ | 671.5 | $ | 368.1 | $ | 2,120.9 | $ | 1,070.9 |
(In millions) | |||||
2021 | $ | 661 | |||
2022 | 2,592 | ||||
2023 | 2,428 | ||||
2024 | 2,335 | ||||
2025 | 2,237 |
Notional Amount Designated as a Net Investment Hedge | ||||||||||||||||||||
(In millions) | Principal Amount | September 30, 2021 | December 31, 2020 | |||||||||||||||||
Euro | ||||||||||||||||||||
2.250% Euro Senior Notes due 2024 | € | 1,000.0 | € | 1,000.0 | € | 1,000.0 | ||||||||||||||
3.125% Euro Senior Notes due 2028 | 750.0 | 750.0 | 750.0 | |||||||||||||||||
2.125% Euro Senior Notes due 2025 | 500.0 | 500.0 | 500.0 | |||||||||||||||||
0.816% Euro Senior Notes due 2022 | 750.0 | 750.0 | 750.0 | |||||||||||||||||
1.023% Euro Senior Notes due 2024 | 750.0 | 750.0 | 750.0 | |||||||||||||||||
1.362% Euro Senior Notes due 2027 | 850.0 | 850.0 | 850.0 | |||||||||||||||||
1.908% Euro Senior Notes due 2032 | 1,250.0 | 1,250.0 | 1,250.0 | |||||||||||||||||
Foreign currency forward contracts | 105.6 | — | 105.6 | |||||||||||||||||
Euro Total | € | 5,955.6 | € | 5,850.0 | € | 5,955.6 | ||||||||||||||
Yen | ||||||||||||||||||||
YEN Term Loan | ¥ | 40,000.0 | ¥ | 40,000.0 | ¥ | — | ||||||||||||||
Yen Total | ¥ | 40,000.0 | ¥ | 40,000.0 | ¥ | — |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||
(In millions) | Balance Sheet Location | September 30, 2021 Fair Value | December 31, 2020 Fair Value | Balance Sheet Location | September 30, 2021 Fair Value | December 31, 2020 Fair Value | |||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Foreign currency forward contracts | Prepaid expenses & other current assets | $ | 55.0 | $ | 28.3 | Other current liabilities | $ | 0.5 | $ | 0.8 | |||||||||||||
Total derivatives designated as hedges | 55.0 | 28.3 | 0.5 | 0.8 | |||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||||
Foreign currency forward contracts | Prepaid expenses & other current assets | 91.5 | 90.3 | Other current liabilities | 46.6 | 102.8 | |||||||||||||||||
Total derivatives not designated as hedges | 91.5 | 90.3 | 46.6 | 102.8 | |||||||||||||||||||
Total derivatives | $ | 146.5 | $ | 118.6 | $ | 47.1 | $ | 103.6 |
Amount of Gains/(Losses) Recognized in Earnings | Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives | Amount of Gains/(Losses) Reclassified from AOCE into Earnings | |||||||||||||||||||||
Three months ended September 30, | Three months ended September 30, | Three months ended September 30, | |||||||||||||||||||||
(In millions) | Location of Gain/(Loss) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedging Relationships (2) : | |||||||||||||||||||||||
Foreign currency forward contracts | Net sales (4) | $ | — | $ | — | $ | 15.5 | $ | 29.5 | $ | 10.2 | $ | 5.1 | ||||||||||
Interest rate swaps | Interest expense (4) | — | — | (0.8) | — | (1.1) | (1.2) | ||||||||||||||||
Derivative Financial Instruments in Net Investment Hedging Relationships: | |||||||||||||||||||||||
Foreign currency borrowings and forward contracts | — | — | 130.4 | (109.0) | — | — | |||||||||||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments: | |||||||||||||||||||||||
Foreign currency option and forward contracts | Other expense, net (3) | 37.6 | 9.8 | — | — | — | — | ||||||||||||||||
Total | $ | 37.6 | $ | 9.8 | $ | 145.1 | $ | (79.5) | $ | 9.1 | $ | 3.9 |
Amount of Gains/(Losses) Recognized in Earnings | Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives | Amount of Gains/(Losses) Reclassified from AOCE into Earnings | |||||||||||||||||||||
Nine months ended September 30, | Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
(In millions) | Location of Gain/(Loss) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
Derivative Financial Instruments in Fair Value Hedge Relationships (1) : | |||||||||||||||||||||||
Interest rate swaps | Interest expense (3) | $ | — | $ | 22.1 | $ | — | $ | — | $ | — | $ | — | ||||||||||
2023 Senior Notes (3.125% coupon) | Interest expense (3) | — | (22.1) | — | — | — | — | ||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedging Relationships (2) : | |||||||||||||||||||||||
Foreign currency forward contracts | Net sales (4) | — | — | 32.4 | (0.5) | 19.9 | 2.3 | ||||||||||||||||
Interest rate swaps | Interest expense (4) | — | — | (2.5) | — | (3.2) | (3.4) | ||||||||||||||||
Derivative Financial Instruments in Net Investment Hedging Relationships: | |||||||||||||||||||||||
Foreign currency borrowings and forward contracts | — | — | 329.4 | (113.8) | — | — | |||||||||||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments: | |||||||||||||||||||||||
Foreign currency option and forward contracts | Other expense, net (3) | 58.3 | 22.9 | — | — | — | — | ||||||||||||||||
Total | $ | 58.3 | $ | 22.9 | $ | 359.3 | $ | (114.3) | $ | 16.7 | $ | (1.1) |
September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Recurring fair value measurements | |||||||||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||||
Money market funds | $ | 51.5 | $ | — | $ | — | $ | 0.9 | $ | — | $ | — | |||||||||||||||||||||||
Total cash equivalents | 51.5 | — | — | 0.9 | — | — | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||
Exchange traded funds | 48.3 | — | — | 45.1 | — | — | |||||||||||||||||||||||||||||
Marketable securities | 0.7 | — | — | 0.7 | — | — | |||||||||||||||||||||||||||||
Total equity securities | 49.0 | — | — | 45.8 | — | — | |||||||||||||||||||||||||||||
Available-for-sale fixed income investments: | |||||||||||||||||||||||||||||||||||
Corporate bonds | — | 17.0 | — | — | 17.8 | — | |||||||||||||||||||||||||||||
U.S. Treasuries | — | 14.3 | — | — | 14.4 | — | |||||||||||||||||||||||||||||
Agency mortgage-backed securities | — | 1.8 | — | — | 1.9 | — | |||||||||||||||||||||||||||||
Asset backed securities | — | 5.0 | — | — | 4.6 | — | |||||||||||||||||||||||||||||
Other | — | 0.6 | — | — | 0.4 | — | |||||||||||||||||||||||||||||
Total available-for-sale fixed income investments | — | 38.7 | — | — | 39.1 | — | |||||||||||||||||||||||||||||
Foreign exchange derivative assets | — | 146.5 | — | — | 118.6 | — | |||||||||||||||||||||||||||||
Total assets at recurring fair value measurement | $ | 100.5 | $ | 185.2 | $ | — | $ | 46.7 | $ | 157.7 | $ | — | |||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||||
Foreign exchange derivative liabilities | — | 47.1 | — | — | 103.6 | — | |||||||||||||||||||||||||||||
Contingent consideration | — | — | 206.9 | — | — | 223.6 | |||||||||||||||||||||||||||||
Total liabilities at recurring fair value measurement | $ | — | $ | 47.1 | $ | 206.9 | $ | — | $ | 103.6 | $ | 223.6 |
The following table provides the components of Other (income)/deductions––net | ||||||||||||||||
(millions of dollars) | Three Months Ended September 27, 2020 | Three Months Ended September 29, 2019 | Nine Months Ended September 27, 2020 | Period From February 14, 2019 (Date of Incorporation) to September 29, 2019 | ||||||||||||
Interest income (a) | $ | (1 | ) | $ | — | $ | (2 | ) | $ | — | ||||||
Interest expense (b) | 71 | — | 76 | — | ||||||||||||
Net interest expense | 70 | — | 75 | — | ||||||||||||
Foreign exchange (gain)/loss, net (c) | 148 | — | 144 | — | ||||||||||||
Other, net (d) | 3 | 3 | ||||||||||||||
Other (income)/deductions––net | $ | 221 | $ | — | $ | 222 | $ | — | ||||||||
September 27, 2020 | December 31, 2019 | |||||||||||||||
(millions of dollars) | Total | Level 2 | Total | Level 2 | ||||||||||||
Financial assets measured at fair value on a recurring basis: | ||||||||||||||||
Short-term investments | ||||||||||||||||
Classified as equity securities with readily determinable fair values: | ||||||||||||||||
Money market funds (a) | $ | 11,413 | $ | 11,413 | $ | — | $ | — | ||||||||
Total short-term investments | $ | 11,413 | $ | 11,413 | $ | — | $ | — | ||||||||
The following table presents the financial liabilities not measured at fair value on a recurring basis, including the carrying values and estimated fair values using a market approach: | ||||||||||||||||||||||||
September 27, 2020 | December 31, 2019 | |||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||||||||
(millions of dollars) | Total | Level 2 | Total | Level 2 | ||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||
Long-term debt | $ | 11,535 | $ | 13,244 | $ | 13,244 | $ | — | $ | — | $ | — |
Principal | ||||||||
(millions of dollars/euros) | Maturity Date | Issue Currency | As of September 27, 2020 | |||||
Upjohn Inc. (Upjohn) (a) 1.125% U.S. dollar notes | June 22, 2022 | U.S. dollar | $ | 1,000 | ||||
1.650% U.S. dollar notes | June 22, 2025 | U.S. dollar | 750 | |||||
2.300% U.S. dollar notes | June 22, 2027 | U.S. dollar | 750 | |||||
2.700% U.S. dollar notes | June 22, 2030 | U.S. dollar | 1,450 | |||||
3.850% U.S. dollar notes | June 22, 2040 | U.S. dollar | 1,500 | |||||
4.000% U.S. dollar notes | June 22, 2050 | U.S. dollar | 2,000 | |||||
Total U.S. dollar notes issued in the second quarter of 2020 | $ | 7,450 | ||||||
Upjohn Finance B.V. (Finco) (a) | ||||||||
0.816% Euro notes | June 23, 2022 | Euro | € | 750 | ||||
1.023% Euro notes | June 23, 2024 | Euro | 750 | |||||
1.362% Euro notes | June 23, 2027 | Euro | 850 | |||||
1.908% Euro notes | June 23, 2032 | Euro | 1,250 | |||||
Total Euro notes issued in the second quarter of 2020 | € | 3,600 |
The following table provides the components of the Company’s senior unsecured long-term debt, including the weighted-average annual stated interest rate by maturity: | ||||
(millions of dollars) | As of September 27, 2020 | |||
Notes due 2022 (0.981%) | $ | 1,872 | ||
Notes due 2024 (1.023%) | 872 | |||
Notes due 2025 (1.650%) | 750 | |||
Notes due 2027 (1.767%) | 1,739 | |||
Notes due 2030 (2.700%) | 1,450 | |||
Notes due 2032 (1.908%) | 1,454 | |||
Notes due 2040 (3.850%) | 1,500 | |||
Notes due 2050 (4.000%) | 2,000 | |||
Total long-term debt, principal amount | 11,638 | |||
Net unamortized discounts and debt issuance costs | (103 | ) | ||
Total long-term debt, carried at historical proceeds, as adjusted | $ | 11,535 | ||
(In millions) | Current Portion (1) | Long-Term Portion (2) | Total Contingent Consideration | ||||||||||||||
Balance at December 31, 2020 | $ | 100.5 | $ | 123.1 | $ | 223.6 | |||||||||||
Payments | (64.9) | — | (64.9) | ||||||||||||||
Reclassifications | 49.4 | (49.4) | — | ||||||||||||||
Accretion | — | 7.0 | 7.0 | ||||||||||||||
Fair value loss (3) | — | 41.2 | 41.2 | ||||||||||||||
Balance at September 30, 2021 | $ | 85.0 | $ | 121.9 | $ | 206.9 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Commercial paper notes | $ | 1,132.4 | $ | 651.3 | |||||||
Receivables Facility | 374.5 | 248.4 | |||||||||
Note Securitization Facility | 200.0 | 200.0 | |||||||||
Other | — | 1.2 | |||||||||
Short-term borrowings | $ | 1,706.9 | $ | 1,100.9 |
($ in millions) | Interest Rate as of September 30, 2021 | September 30, 2021 | December 31, 2020 | ||||||||||||||
Current portion of long-term debt: | |||||||||||||||||
2021 Senior Notes (a) ** | 3.150 | % | $ | — | $ | 2,249.7 | |||||||||||
2022 Euro Senior Notes **** | 0.816 | % | 874.4 | — | |||||||||||||
2022 Senior Notes *** | 1.125 | % | 1,004.4 | — | |||||||||||||
Other | 2.3 | 8.0 | |||||||||||||||
Deferred financing fees | (0.1) | (1.4) | |||||||||||||||
Current portion of long-term debt | $ | 1,881.0 | $ | 2,256.3 | |||||||||||||
Non-current portion of long-term debt: | |||||||||||||||||
2022 Euro Senior Notes **** | 0.816 | % | $ | — | $ | 928.8 | |||||||||||
2022 Senior Notes *** | 1.125 | % | — | 1,008.8 | |||||||||||||
2023 Senior Notes (b) * | 3.125 | % | 770.0 | 781.6 | |||||||||||||
2023 Senior Notes * | 4.200 | % | 499.5 | 499.3 | |||||||||||||
2024 Euro Senior Notes ** | 2.250 | % | 1,156.7 | 1,219.9 | |||||||||||||
2024 Euro Senior Notes **** | 1.023 | % | 889.6 | 944.6 | |||||||||||||
2025 Euro Senior Notes * | 2.125 | % | 578.3 | 609.9 | |||||||||||||
2025 Senior Notes *** | 1.650 | % | 764.3 | 767.1 | |||||||||||||
2026 Senior Notes ** | 3.950 | % | 2,241.0 | 2,239.7 | |||||||||||||
2027 Euro Senior Notes **** | 1.362 | % | 1,033.9 | 1,097.4 | |||||||||||||
2027 Senior Notes *** | 2.300 | % | 782.1 | 786.1 | |||||||||||||
2028 Euro Senior Notes ** | 3.125 | % | 862.9 | 909.7 | |||||||||||||
2028 Senior Notes * | 4.550 | % | 748.7 | 748.6 | |||||||||||||
2030 Senior Notes *** | 2.700 | % | 1,522.4 | 1,528.0 | |||||||||||||
2032 Euro Senior Notes **** | 1.908 | % | 1,577.7 | 1,672.6 | |||||||||||||
2040 Senior Notes *** | 3.850 | % | 1,658.7 | 1,663.3 | |||||||||||||
2043 Senior Notes * | 5.400 | % | 497.3 | 497.3 | |||||||||||||
2046 Senior Notes ** | 5.250 | % | 999.9 | 999.9 | |||||||||||||
2048 Senior Notes * | 5.200 | % | 747.7 | 747.7 | |||||||||||||
2050 Senior Notes *** | 4.000 | % | 2,206.2 | 2,209.3 | |||||||||||||
USD Term Loan | — | 600.0 | |||||||||||||||
YEN Term Loan | 359.4 | — | |||||||||||||||
Other | 1.7 | 17.4 | |||||||||||||||
Deferred financing fees | (43.7) | (47.8) | |||||||||||||||
Long-term debt | $ | 19,854.3 | $ | 22,429.2 |
(In millions) | Total | ||||
2021 | $ | — | |||
2022 | 1,869 | ||||
2023 | 1,250 | ||||
2024 | 2,027 | ||||
2025 | 1,329 | ||||
Thereafter | 14,610 | ||||
Total | $ | 21,085 |
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
Accumulated other comprehensive loss: | |||||||||||
Net unrealized gain on marketable securities, net of tax | $ | 0.3 | $ | 1.2 | |||||||
Net unrecognized gain (loss) and prior service cost related to defined benefit plans, net of tax | 44.9 | (26.1) | |||||||||
Net unrecognized gain (loss) on derivatives in cash flow hedging relationships, net of tax | 2.7 | (18.0) | |||||||||
Net unrecognized (loss) on derivatives in net investment hedging relationships, net of tax | (90.4) | (353.6) | |||||||||
Foreign currency translation adjustment | (1,429.4) | (461.5) | |||||||||
$ | (1,471.9) | $ | (858.0) |
Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Gains and Losses on Net Investment Hedges | Gains and Losses on Marketable Securities | Defined Pension Plan Items | Foreign Currency Translation Adjustment | Totals | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | Foreign Currency Forward Contracts | Interest Rate Swaps | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021, net of tax | $ | (6.2) | $ | (220.8) | $ | 0.4 | $ | 43.6 | $ | (1,022.0) | $ | (1,205.0) | |||||||||||||||||||||||||||||||||||
Other comprehensive earnings (loss) before reclassifications, before tax | 20.9 | 168.4 | (0.1) | 0.5 | (407.4) | (217.7) | |||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: | |||||||||||||||||||||||||||||||||||||||||||||||
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales | (10.2) | (10.2) | (10.2) | ||||||||||||||||||||||||||||||||||||||||||||
Loss on interest rate swaps classified as cash flow hedges, included in interest expense | 1.1 | 1.1 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs included in SG&A | (0.1) | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial gain included in SG&A | 0.4 | 0.4 | |||||||||||||||||||||||||||||||||||||||||||||
Net other comprehensive earnings (loss), before tax | 11.8 | 168.4 | (0.1) | 0.8 | (407.4) | (226.5) | |||||||||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 2.9 | 38.0 | — | (0.5) | — | 40.4 | |||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021, net of tax | $ | 2.7 | $ | (90.4) | $ | 0.3 | $ | 44.9 | $ | (1,429.4) | $ | (1,471.9) |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Gains and Losses on Net Investment Hedges | Gains and Losses on Marketable Securities | Defined Pension Plan Items | Foreign Currency Translation Adjustment | Totals | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | Foreign Currency Forward Contracts | Interest Rate Swaps | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020, net of tax | $ | (55.7) | $ | (79.0) | $ | 1.3 | $ | (12.4) | $ | (1,879.1) | $ | (2,024.9) | |||||||||||||||||||||||||||||||||||
Other comprehensive earnings (loss) before reclassifications, before tax | 36.4 | (114.7) | — | (1.7) | 687.7 | 607.7 | |||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: | |||||||||||||||||||||||||||||||||||||||||||||||
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales | (5.1) | (5.1) | (5.1) | ||||||||||||||||||||||||||||||||||||||||||||
Loss on interest rate swaps classified as cash flow hedges, included in interest expense | 1.2 | 1.2 | 1.2 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss included in SG&A | 0.1 | 0.1 | |||||||||||||||||||||||||||||||||||||||||||||
Net other comprehensive earnings (loss), before tax | 32.5 | (114.7) | — | (1.6) | 687.7 | 603.9 | |||||||||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 8.1 | (5.7) | (0.1) | 0.5 | — | 2.8 | |||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020, net of tax | $ | (31.3) | $ | (188.0) | $ | 1.4 | $ | (14.5) | $ | (1,191.4) | $ | (1,423.8) |
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Gains and Losses on Net Investment Hedges | Gains and Losses on Marketable Securities | Defined Pension Plan Items | Foreign Currency Translation Adjustment | Totals | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | Foreign Currency Forward Contracts | Interest Rate Swaps | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020, net of tax | $ | (18.0) | $ | (353.6) | $ | 1.2 | $ | (26.1) | $ | (461.5) | $ | (858.0) | |||||||||||||||||||||||||||||||||||
Other comprehensive earnings (loss) before reclassifications, before tax | 44.2 | 318.4 | (0.8) | 73.3 | (967.9) | (532.8) | |||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: | |||||||||||||||||||||||||||||||||||||||||||||||
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales | (19.9) | (19.9) | (19.9) | ||||||||||||||||||||||||||||||||||||||||||||
Loss on interest rate swaps classified as cash flow hedges, included in interest expense | 3.2 | 3.2 | 3.2 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs included in SG&A | (0.4) | (0.4) | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss included in SG&A | 1.2 | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||
Net other comprehensive earnings (loss), before tax | 27.5 | 318.4 | (0.8) | 74.1 | (967.9) | (548.7) | |||||||||||||||||||||||||||||||||||||||||
Income tax provision | 6.8 | 55.2 | 0.1 | 3.1 | — | 65.2 | |||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021, net of tax | $ | 2.7 | $ | (90.4) | $ | 0.3 | $ | 44.9 | $ | (1,429.4) | $ | (1,471.9) |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Gains and Losses on Net Investment Hedges | Gains and Losses on Marketable Securities | Defined Pension Plan Items | Foreign Currency Translation Adjustment | Totals | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | Foreign Currency Forward Contracts | Interest Rate Swaps | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019, net of tax | $ | (31.6) | $ | (74.3) | $ | 0.6 | $ | (17.4) | $ | (1,674.5) | $ | (1,797.2) | |||||||||||||||||||||||||||||||||||
Other comprehensive (loss) earnings before reclassifications, before tax | (1.3) | (119.7) | 0.8 | 3.0 | 483.1 | 365.9 | |||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax: | |||||||||||||||||||||||||||||||||||||||||||||||
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales | (2.3) | (2.3) | (2.3) | ||||||||||||||||||||||||||||||||||||||||||||
Loss on interest rate swaps classified as cash flow hedges, included in interest expense | 3.4 | 3.4 | 3.4 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss included in SG&A | 0.4 | 0.4 | |||||||||||||||||||||||||||||||||||||||||||||
Net other comprehensive (loss) earnings, before tax | (0.2) | (119.7) | 0.8 | 3.4 | 483.1 | 367.4 | |||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) provision | (0.5) | (6.0) | — | 0.5 | — | (6.0) | |||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020, net of tax | $ | (31.3) | $ | (188.0) | $ | 1.4 | $ | (14.5) | $ | (1,191.4) | $ | (1,423.8) |
Net Sales | Segment Profitability | |||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Reportable Segments: | ||||||||||||||||||||||||||
Developed Markets | $ | 2,655.9 | $ | 2,163.2 | $ | 1,302.7 | $ | 1,141.4 | ||||||||||||||||||
Greater China | 566.8 | 31.5 | 352.5 | (24.4) | ||||||||||||||||||||||
JANZ | 505.3 | 282.4 | 216.7 | 73.4 | ||||||||||||||||||||||
Emerging Markets | 792.5 | 471.0 | 362.5 | 165.3 | ||||||||||||||||||||||
Total reportable segments | $ | 4,520.5 | $ | 2,948.1 | $ | 2,234.4 | $ | 1,355.7 | ||||||||||||||||||
Reconciling items: | ||||||||||||||||||||||||||
Intangible asset amortization expense | (671.5) | (368.1) | ||||||||||||||||||||||||
Globally managed research and development costs | (152.1) | (129.8) | ||||||||||||||||||||||||
Litigation settlements & other contingencies | (9.4) | (18.9) | ||||||||||||||||||||||||
Transaction related and other special items | (569.8) | (192.9) | ||||||||||||||||||||||||
Corporate and other unallocated | (474.0) | (294.6) | ||||||||||||||||||||||||
Earnings from operations | $ | 357.6 | $ | 351.4 |
Net Sales | Segment Profitability | |||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Reportable Segments: | ||||||||||||||||||||||||||
Developed Markets | $ | 7,867.9 | $ | 6,132.3 | $ | 3,908.0 | $ | 3,179.0 | ||||||||||||||||||
Greater China | 1,709.0 | 69.3 | 1,123.9 | (19.3) | ||||||||||||||||||||||
JANZ | 1,488.2 | 805.8 | 586.3 | 208.4 | ||||||||||||||||||||||
Emerging Markets | 2,417.2 | 1,224.8 | 1,084.5 | 393.5 | ||||||||||||||||||||||
Total reportable segments | $ | 13,482.3 | $ | 8,232.2 | $ | 6,702.7 | $ | 3,761.6 | ||||||||||||||||||
Reconciling items: | ||||||||||||||||||||||||||
Intangible asset amortization expense | (2,037.5) | (1,070.9) | ||||||||||||||||||||||||
Intangible asset impairment charges | (83.4) | — | ||||||||||||||||||||||||
Globally managed research and development costs | (483.9) | (400.3) | ||||||||||||||||||||||||
Litigation settlements & other contingencies | (55.3) | (36.5) | ||||||||||||||||||||||||
Transaction related and other special items | (2,483.9) | (626.7) | ||||||||||||||||||||||||
Corporate and other unallocated | (1,515.1) | (956.9) | ||||||||||||||||||||||||
Earnings from operations | $ | 43.6 | $ | 670.3 |
(In millions) | Employee Related Costs | Other Exit Costs | Total | ||||||||||||||
Balance at December 31, 2020: | $ | 262.6 | $ | 4.8 | $ | 267.4 | |||||||||||
Charges (1) | 161.6 | 152.0 | 313.6 | ||||||||||||||
Cash payment | (49.2) | (1.1) | (50.3) | ||||||||||||||
Utilization | — | (151.0) | (151.0) | ||||||||||||||
Foreign currency translation | (3.3) | 0.1 | (3.2) | ||||||||||||||
Balance at March 31, 2021: | 371.7 | 4.8 | 376.5 | ||||||||||||||
Charges (1) | 169.0 | 82.9 | 251.9 | ||||||||||||||
Reimbursable restructuring charges | 26.4 | — | 26.4 | ||||||||||||||
Cash payment | (74.7) | (2.1) | (76.8) | ||||||||||||||
Utilization | — | (80.8) | (80.8) | ||||||||||||||
Foreign currency translation | 1.6 | (0.1) | 1.5 | ||||||||||||||
Balance at June 30, 2021: | 494.0 | 4.7 | 498.7 | ||||||||||||||
Charges (1) | 64.2 | 108.6 | 172.8 | ||||||||||||||
Cash payment | (189.2) | (21.8) | (211.0) | ||||||||||||||
Utilization | — | (87.3) | (87.3) | ||||||||||||||
Foreign currency translation | (2.6) | — | (2.6) | ||||||||||||||
Balance at September 30, 2021: | $ | 366.4 | $ | 4.2 | $ | 370.6 |
(millions of dollars) | September 27, 2020 | December 31, 2019 | ||||||
Selected financial assets: | ||||||||
Restricted short-term investments (a) | $ | 11,413 | $ | — | ||||
Debt: | ||||||||
Long-term debt (a) | 11,535 | $ | — | |||||
Selected net financial liabilities | $ | (122 | ) | $ | — |
Years | ||||||||||||||||||||||||
(millions of dollars) | Total | 2020 | 2021 | 2022-2023 | 2024-2025 | Thereafter | ||||||||||||||||||
Long-term debt (a) | $ | 11,535 | $ | — | $ | — | $ | 1,865 | $ | 1,611 | $ | 8,059 | ||||||||||||
Interest payments on long-term debt obligations (b) | 4,598 | 109 | 297 | 515 | 464 | 3,212 |
Three Months Ended | |||||||||||||||||||||||
September 30, | |||||||||||||||||||||||
(In millions, except per share amounts) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Total revenues | $ | 4,536.6 | $ | 2,972.1 | $ | 1,564.5 | 53 | % | |||||||||||||||
Gross profit | 1,574.1 | 1,158.5 | 415.6 | 36 | % | ||||||||||||||||||
Earnings from operations | 357.6 | 351.4 | 6.2 | 2 | % | ||||||||||||||||||
Net earnings | 311.5 | 185.7 | 125.8 | nm | |||||||||||||||||||
Diluted earnings per share | $ | 0.26 | $ | 0.36 | $ | (0.10) | nm | ||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, | |||||||||||||||||||||||
(In millions, except per share amounts) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Total revenues | $ | 13,544.7 | $ | 8,322.5 | $ | 5,222.2 | 63 | % | |||||||||||||||
Gross profit | 4,029.1 | 3,090.3 | 938.8 | 30 | % | ||||||||||||||||||
Earnings from operations | 43.6 | 670.3 | (626.7) | (93) | % | ||||||||||||||||||
Net (loss) earnings | (1,005.3) | 245.9 | (1,251.2) | nm | |||||||||||||||||||
Diluted (loss) earnings per share | $ | (0.83) | $ | 0.48 | $ | (1.31) | nm |
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||||
(In millions, except %s) | 2021 | 2020 | % Change | 2021 Currency Impact (1) | 2021 Constant Currency Revenues | Constant Currency % Change (2) | |||||||||||||||||||||||||||||
Net sales | |||||||||||||||||||||||||||||||||||
Developed Markets | $ | 2,655.9 | $ | 2,163.2 | 23 | % | $ | (17.3) | $ | 2,638.4 | 22 | % | |||||||||||||||||||||||
Greater China | 566.8 | 31.5 | nm | (0.3) | 566.6 | nm | |||||||||||||||||||||||||||||
JANZ | 505.3 | 282.4 | 79 | % | 2.5 | 507.9 | 80 | % | |||||||||||||||||||||||||||
Emerging Markets | 792.5 | 471.0 | 68 | % | (6.2) | 786.3 | 67 | % | |||||||||||||||||||||||||||
Total net sales | $ | 4,520.5 | $ | 2,948.1 | 53 | % | $ | (21.3) | $ | 4,499.2 | 53 | % | |||||||||||||||||||||||
Other revenues (3) | 16.1 | 24.0 | (33) | % | — | 16.1 | (33) | % | |||||||||||||||||||||||||||
Consolidated total revenues (4) | $ | 4,536.6 | $ | 2,972.1 | 53 | % | $ | (21.3) | $ | 4,515.3 | 52 | % |
Three Months Ended | |||||||||||
September 30, | |||||||||||
(In millions, except %s) | 2021 | 2020 | |||||||||
U.S. GAAP cost of sales | $ | 2,962.5 | $ | 1,813.6 | |||||||
Deduct: | |||||||||||
Purchase accounting related amortization | (919.9) | (368.5) | |||||||||
Acquisition related items | (4.5) | (9.4) | |||||||||
Restructuring related costs | (151.3) | (8.7) | |||||||||
Share-based compensation expense | (0.8) | (0.4) | |||||||||
Other special items | (72.7) | (83.6) | |||||||||
Adjusted cost of sales | $ | 1,813.3 | $ | 1,343.0 | |||||||
Adjusted gross profit (a) | $ | 2,723.3 | $ | 1,629.1 | |||||||
Adjusted gross margin (a) | 60 | % | 55 | % |
Three Months Ended | |||||||||||
September 30, | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Respiratory delivery platform contingent consideration adjustment | $ | 9.2 | $ | 16.9 | |||||||
Litigation settlements, net | 0.2 | 2.0 | |||||||||
Total litigation settlements and other contingencies, net | $ | 9.4 | $ | 18.9 |
Three Months Ended | |||||||||||
September 30, | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Losses from equity affiliates, primarily clean energy investments | $ | 17.6 | $ | 2.9 | |||||||
Foreign exchange gains, net | (3.8) | (8.8) | |||||||||
Other gains, net | (8.0) | (1.6) | |||||||||
Other expense (income), net | $ | 5.8 | $ | (7.5) |
Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||||
(In millions, except %s) | 2021 | 2020 | % Change | 2021 Currency Impact (1) | 2021 Constant Currency Revenues | Constant Currency % Change (2) | |||||||||||||||||||||||||||||
Net sales | |||||||||||||||||||||||||||||||||||
Developed Markets | $ | 7,867.9 | $ | 6,132.3 | 28 | % | $ | (226.4) | $ | 7,641.4 | 25 | % | |||||||||||||||||||||||
Greater China | 1,709.0 | 69.3 | nm | (0.6) | 1,708.4 | nm | |||||||||||||||||||||||||||||
JANZ | 1,488.2 | 805.8 | 85 | % | (34.3) | 1,453.9 | 80 | % | |||||||||||||||||||||||||||
Emerging Markets | 2,417.2 | 1,224.8 | 97 | % | (30.8) | 2,386.4 | 95 | % | |||||||||||||||||||||||||||
Total net sales | $ | 13,482.3 | $ | 8,232.2 | 64 | % | $ | (292.1) | $ | 13,190.1 | 60 | % | |||||||||||||||||||||||
Other revenues (3) | 62.4 | 90.3 | (31) | % | (1.3) | 61.1 | (32) | % | |||||||||||||||||||||||||||
Consolidated total revenues (4) | $ | 13,544.7 | $ | 8,322.5 | 63 | % | $ | (293.4) | $ | 13,251.2 | 59 | % |
Nine Months Ended | |||||||||||
September 30, | |||||||||||
(In millions, except %s) | 2021 | 2020 | |||||||||
U.S. GAAP cost of sales | $ | 9,515.6 | $ | 5,232.2 | |||||||
Deduct: | |||||||||||
Purchase accounting related amortization | (3,344.7) | (1,072.5) | |||||||||
Acquisition related items | (8.0) | (11.5) | |||||||||
Restructuring related costs | (399.5) | (17.6) | |||||||||
Share-based compensation expense | (2.0) | (1.1) | |||||||||
Other special items | (257.1) | (299.3) | |||||||||
Adjusted cost of sales | $ | 5,504.3 | $ | 3,830.2 | |||||||
Adjusted gross profit (a) | $ | 8,040.4 | $ | 4,492.3 | |||||||
Adjusted gross margin (a) | 59 | % | 54 | % |
Nine Months Ended | |||||||||||
September 30, | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Respiratory delivery platform contingent consideration adjustment | $ | 41.2 | $ | 35.6 | |||||||
Litigation settlements, net | 14.1 | 0.9 | |||||||||
Total litigation settlements and other contingencies, net | $ | 55.3 | $ | 36.5 |
Nine Months Ended | |||||||||||
September 30, | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Losses from equity affiliates, primarily clean energy investments | $ | 52.2 | $ | 37.4 | |||||||
Foreign exchange losses, net | 4.8 | 8.6 | |||||||||
Other gains, net | (40.9) | (21.4) | |||||||||
Other expense, net | $ | 16.1 | $ | 24.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
U.S. GAAP net earnings (loss) | $ | 311.5 | $ | 185.7 | $ | (1,005.3) | $ | 245.9 | |||||||||||||||||||||
Purchase accounting related amortization (primarily included in cost of sales) (a) | 919.9 | 368.5 | 3,344.7 | 1,072.5 | |||||||||||||||||||||||||
Litigation settlements and other contingencies, net | 9.4 | 18.9 | 55.3 | 36.5 | |||||||||||||||||||||||||
Interest expense (primarily amortization of premiums and discounts on long term debt) | (13.6) | 5.3 | (40.3) | 16.6 | |||||||||||||||||||||||||
Clean energy investments pre-tax loss | 17.6 | 2.9 | 52.2 | 37.4 | |||||||||||||||||||||||||
Acquisition related costs (primarily included in SG&A) (b) | 41.5 | 72.3 | 149.7 | 218.2 | |||||||||||||||||||||||||
Restructuring related costs (c) | 169.8 | 14.5 | 741.6 | 47.0 | |||||||||||||||||||||||||
Share-based compensation expense | 25.0 | 15.1 | 88.7 | 49.8 | |||||||||||||||||||||||||
Other special items included in: | |||||||||||||||||||||||||||||
Cost of sales (d) | 72.7 | 83.6 | 257.1 | 299.3 | |||||||||||||||||||||||||
Research and development expense (e) | 3.7 | 3.7 | 12.1 | 45.8 | |||||||||||||||||||||||||
Selling, general and administrative expense | 9.9 | 7.5 | 39.4 | 12.9 | |||||||||||||||||||||||||
Other expense, net | (2.3) | — | (2.3) | (16.4) | |||||||||||||||||||||||||
Tax effect of the above items and other income tax related items (f) | (366.0) | (98.3) | (196.8) | (344.3) | |||||||||||||||||||||||||
Adjusted net earnings | $ | 1,199.1 | $ | 679.7 | $ | 3,496.1 | $ | 1,721.2 | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
U.S. GAAP net earnings (loss) | $ | 311.5 | $ | 185.7 | $ | (1,005.3) | $ | 245.9 | |||||||||||||||
Add adjustments: | |||||||||||||||||||||||
Net contribution attributable to equity method investments | 17.6 | 2.9 | 52.2 | 37.4 | |||||||||||||||||||
Income tax (benefit) provision | (111.6) | 55.9 | 544.8 | 46.4 | |||||||||||||||||||
Interest expense (a) | 151.9 | 117.3 | 488.0 | 353.4 | |||||||||||||||||||
Depreciation and amortization (b) | 1,017.1 | 432.3 | 3,756.7 | 1,263.0 | |||||||||||||||||||
EBITDA | $ | 1,386.5 | $ | 794.1 | $ | 3,836.4 | $ | 1,946.1 | |||||||||||||||
Add adjustments: | |||||||||||||||||||||||
Share-based compensation expense | 25.0 | 15.1 | 88.7 | 49.8 | |||||||||||||||||||
Litigation settlements and other contingencies, net | 9.4 | 18.9 | 55.3 | 36.5 | |||||||||||||||||||
Restructuring, acquisition related and other special items (c) | 277.4 | 181.6 | 1,029.9 | 606.6 | |||||||||||||||||||
Adjusted EBITDA | $ | 1,698.3 | $ | 1,009.7 | $ | 5,010.3 | $ | 2,639.0 |
Combined Summarized Balance Sheet Information of Viatris Inc., Mylan Inc., Utah Acquisition Sub Inc. and Mylan II B.V. | |||||||||||
(In millions) | September 30, 2021 | December 31, 2020 | |||||||||
ASSETS | |||||||||||
Current assets | $ | 374.8 | $ | 477.7 | |||||||
Non-current assets | 60,007.5 | 61,272.4 | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | 22,819.6 | 20,951.7 | |||||||||
Non-current liabilities | 16,421.4 | 17,844.2 |
Combined Summarized Income Statement Information of Viatris Inc., Mylan Inc., Utah Acquisition Sub Inc. and Mylan II B.V. | |||||||||||
(In millions) | Nine Months Ended September 30, 2021 | Year Ended December 31, 2020 | |||||||||
Revenues | $ | — | $ | — | |||||||
Gross Profit | — | — | |||||||||
Loss from Operations | (773.3) | (929.6) | |||||||||
Net loss | (1,005.3) | (669.9) |
Amended and Restated Revolving Credit Agreement, dated as of July 1, 2021, among Viatris, the guarantors from time to time party thereto, the lenders and issuing banks from time to time party thereto and Bank of America, N.A., as administrative agent, filed as Exhibit 10.1 to the Report on Form 8-K filed by Viatris Inc. with the SEC on July 1, 2021, and incorporated herein by reference.* | |||||||
Term Loan Credit Agreement, dated as of July 1, 2021, among Viatris, the guarantors from time to time party thereto, the lenders from time to time party thereto and Mizuho Bank, Ltd., as administrative agent, filed as Exhibit 10.2 to the Report on Form 8-K filed by Viatris Inc. with the SEC on July 1, 2021, and incorporated herein by reference.* | |||||||
List of Subsidiary Guarantors and Issuers of Guaranteed Securities, filed by Viatris Inc. as Exhibit 22 to the Form 10-K for the year ended December 31, 2020 and incorporated herein by reference. | |||||||
Certification | |||||||
Certification | |||||||
Certification | |||||||
Inline XBRL Taxonomy Extension Schema | |||||||
Inline XBRL Taxonomy Extension Calculation Linkbase | |||||||
Inline XBRL Taxonomy Definition Linkbase | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | ||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | ||||||
Cover Page Interactive Data |
* | Annexes, schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. | ||||
By: | /s/ MICHAEL GOETTLER | |||||||
Michael Goettler | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
/s/ SANJEEV NARULA | ||||||||
Sanjeev Narula | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |