COVER
COVER | 6 Months Ended |
Jun. 30, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity File Number | 001-31269 |
Entity Registrant Name | ALCON INC. |
Entity Address, Address Line One | Rue Louis-d'Affry 6 |
Entity Address, Address Line Two | 1701 |
Entity Address, City or Town | Fribourg |
Entity Address, Country | CH |
Document Period End Date | Jun. 30, 2022 |
Entity Central Index Key | 0001167379 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED INCOME STATEMENT (
CONSOLIDATED INCOME STATEMENT (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Profit or loss [abstract] | ||||
Net sales to third parties | $ 2,200 | $ 2,094 | $ 4,375 | $ 4,004 |
Other revenues | 17 | 16 | 31 | 36 |
Net sales and other revenues | 2,217 | 2,110 | 4,406 | 4,040 |
Cost of net sales | (999) | (875) | (1,966) | (1,755) |
Cost of other revenues | (14) | (15) | (28) | (34) |
Gross profit | 1,204 | 1,220 | 2,412 | 2,251 |
Selling, general & administration | (803) | (785) | (1,544) | (1,484) |
Research & development | (181) | (178) | (347) | (344) |
Other income | 3 | 5 | 12 | 14 |
Other expense | (23) | (33) | (87) | (59) |
Operating income | 200 | 229 | 446 | 378 |
Interest expense | (31) | (30) | (60) | (61) |
Other financial income & expense | (22) | (8) | (39) | (17) |
Income before taxes | 147 | 191 | 347 | 300 |
Taxes | 1 | (40) | (31) | (65) |
Net income | $ 148 | $ 151 | $ 316 | $ 235 |
Earnings per share ($) | ||||
Basic (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.64 | $ 0.48 |
Diluted (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.64 | $ 0.48 |
Weighted average number of shares outstanding | ||||
Basic (in shares) | 491.7 | 490 | 491.3 | 489.9 |
Diluted (in shares) | 494.3 | 493.2 | 494.2 | 492.8 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of comprehensive income [abstract] | |||||
Net income | $ 148 | $ 151 | $ 316 | $ 235 | |
Other comprehensive income to be eventually recycled into the Consolidated Income Statement: | |||||
Currency translation effects, net of taxes | [1] | (67) | 20 | (65) | (18) |
Total of items to eventually recycle | (67) | 20 | (65) | (18) | |
Other comprehensive income never to be recycled into the Consolidated Income Statement: | |||||
Actuarial gains/(losses) from defined benefit plans, net of taxes | [2] | 49 | (7) | 120 | 15 |
Fair value adjustments on equity securities, net of taxes | [3] | 0 | 0 | 1 | 0 |
Total of items never to be recycled | 49 | (7) | 121 | 15 | |
Total comprehensive income | $ 130 | $ 164 | $ 372 | $ 232 | |
[1] Amounts are net of tax expense of $1 million for the three and six months ended June 30, 2022. |
CONSOLIDATED STATEMENT OF COM_2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS) (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of comprehensive income [abstract] | ||||
Currency translation effects, tax expense | $ 1 | $ 1 | ||
Actuarial gains/(losses) from defined benefit plans, tax expense (benefit) | 13 | $ (2) | 29 | $ 7 |
Fair value adjustments on equity securities, tax expense | $ 0.1 | $ 0.3 |
CONSOLIDATED BALANCE SHEET (una
CONSOLIDATED BALANCE SHEET (unaudited) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Non-current assets | ||
Property, plant & equipment | $ 3,742 | $ 3,711 |
Right-of-use assets | 372 | 372 |
Goodwill | 8,905 | 8,905 |
Intangible assets other than goodwill | 8,811 | 8,765 |
Deferred tax assets | 409 | 409 |
Financial assets | 246 | 217 |
Other non-current assets | 225 | 234 |
Total non-current assets | 22,710 | 22,613 |
Current assets | ||
Inventories | 1,988 | 1,899 |
Trade receivables | 1,603 | 1,496 |
Income tax receivables | 12 | 9 |
Cash and cash equivalents | 1,030 | 1,575 |
Other current assets | 384 | 407 |
Total current assets | 5,017 | 5,386 |
Total assets | 27,727 | 27,999 |
Equity | ||
Share capital | 20 | 20 |
Reserves | 19,521 | 19,236 |
Total equity | 19,541 | 19,256 |
Non-current liabilities | ||
Financial debts | 3,883 | 3,966 |
Lease liabilities | 344 | 339 |
Deferred tax liabilities | 896 | 1,026 |
Provisions & other non-current liabilities | 743 | 940 |
Total non-current liabilities | 5,866 | 6,271 |
Current liabilities | ||
Trade payables | 930 | 903 |
Financial debts | 87 | 114 |
Lease liabilities | 66 | 67 |
Current income tax liabilities | 221 | 187 |
Provisions & other current liabilities | 1,016 | 1,201 |
Total current liabilities | 2,320 | 2,472 |
Total liabilities | 8,186 | 8,743 |
Total equity and liabilities | $ 27,727 | $ 27,999 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) $ in Millions | Total | Share capital | Other reserves | Fair value adjustments on equity securities | Actuarial gains/(losses) from defined benefit plans | Cumulative currency translation effects | Total value adjustments | [1] | |
Beginning balance at Dec. 31, 2020 | $ 18,822 | $ 20 | $ 18,899 | $ (32) | $ (109) | $ 44 | $ (97) | ||
Net income | 235 | 235 | |||||||
Other comprehensive income | (3) | 0 | 15 | (18) | (3) | ||||
Total comprehensive income | 232 | 235 | 0 | 15 | (18) | (3) | |||
Dividends | (53) | (53) | |||||||
Equity-based compensation | 47 | 47 | |||||||
Other movements | [2] | 16 | 4 | 12 | 12 | ||||
Total other movements | 10 | (2) | 12 | 12 | |||||
Ending balance at Jun. 30, 2021 | 19,064 | 20 | 19,132 | (32) | (82) | 26 | (88) | ||
Beginning balance at Dec. 31, 2021 | 19,256 | 20 | 19,356 | (32) | (74) | (14) | (120) | ||
Net income | 316 | 316 | |||||||
Other comprehensive income | 56 | 1 | 120 | (65) | 56 | ||||
Total comprehensive income | 372 | 316 | 1 | 120 | (65) | 56 | |||
Dividends | (102) | (102) | |||||||
Equity-based compensation | 4 | 4 | |||||||
Other movements | [2] | 11 | 11 | 0 | |||||
Total other movements | (87) | (87) | 0 | 0 | |||||
Ending balance at Jun. 30, 2022 | $ 19,541 | $ 20 | $ 19,585 | $ (31) | $ 46 | $ (79) | $ (64) | ||
[1]"Total value adjustments" are presented net of the corresponding tax effects.[2]Activity includes hyperinflationary accounting. The prior year period includes an adjustment to actuarial gains to recognize plan assets related to the separation of a pension plan in the spin-off from Novartis but which were not previously recorded. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of cash flows [abstract] | ||
Net income | $ 316 | $ 235 |
Adjustments to reconcile net income to net cash flows from operating activities | ||
Depreciation, amortization, impairments and fair value adjustments | 588 | 530 |
Equity-based compensation expense | 70 | 68 |
Non-cash change in current and non-current provisions and other non-current liabilities | 40 | 25 |
Losses on disposal and other adjustments on property, plant & equipment and other non-current assets, net | 2 | 8 |
Interest expense | 60 | 61 |
Other financial income & expense | 39 | 17 |
Taxes | 31 | 65 |
Interest received | 2 | 2 |
Interest paid | (53) | (57) |
Other financial payments | (4) | (3) |
Taxes paid | (120) | (96) |
Net cash flows before working capital changes and net payments out of provisions and other non-current liabilities | 971 | 855 |
Net payments out of provisions and other cash movements in non-current liabilities | (70) | (37) |
Change in net current assets and other operating cash flow items | (431) | (276) |
Net cash flows from operating activities | 470 | 542 |
Purchase of property, plant & equipment | (237) | (222) |
Purchase of intangible assets | (23) | (411) |
Purchase of financial assets | (21) | (10) |
Proceeds from financial assets | 2 | 0 |
Acquisition of assets, net of cash acquired | (483) | 0 |
Net cash flows used in investing activities | (762) | (643) |
Dividends paid to shareholders of Alcon Inc. | (100) | (54) |
Proceeds from non-current financial debts, net of issuance costs | 531 | 51 |
Repayment of non-current financial debts | (536) | 0 |
Change in current financial debts | (52) | (24) |
Lease payments | (34) | (37) |
Other financing cash flows | (86) | (12) |
Net cash flows used in financing activities | (277) | (76) |
Effect of exchange rate changes on cash and cash equivalents | 24 | (14) |
Net change in cash and cash equivalents | (545) | (191) |
Cash and cash equivalents at January 1 | 1,575 | 1,557 |
Cash and cash equivalents at June 30 | $ 1,030 | $ 1,366 |
Selected accounting policies
Selected accounting policies | 6 Months Ended |
Jun. 30, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Selected accounting policies | Selected accounting policies Basis of preparation These Condensed Consolidated Interim Financial Statements for Alcon Inc. ("the Company") and the subsidiaries it controls (collectively, "Alcon") have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and with the accounting policies as described in Note 3 to the December 31, 2021 Consolidated Financial Statements in the Company’s 2021 Form 20-F ("Form 20-F"). These Condensed Consolidated Interim Financial Statements do not include all of the information required for a complete set of IFRS financial statements. The financial information consolidates the Company and the subsidiaries it controls, and includes selected notes to explain events and transactions that are significant to an understanding of the changes in Alcon's financial position and performance since the prior annual Consolidated Financial Statements. Therefore, the Condensed Consolidated Interim Financial Statements should be read in conjunction with the annual Consolidated Financial Statements for the year ended December 31, 2021, which have been prepared in accordance with IFRS as issued by the IASB. The accompanying Condensed Consolidated Interim Financial Statements present our historical financial position, results of operations, comprehensive income and cash flows in accordance with IFRS. Alcon's principal accounting policies are set out in Note 3 to the Consolidated Financial Statements in the Form 20-F. Use of estimates and assumptions The preparation of financial statements requires management to make subjective and complex estimates and assumptions, either at the balance sheet date or during the period that affect the reported amounts of assets and liabilities as well as revenues and expenses. We have analyzed the impact of the war on Ukraine, economic sanctions and export controls on Russia and the COVID-19 pandemic on our financial statements for the three and six months ended June 30, 2022 and 2021. We have assessed various accounting estimates and other matters, including those that require consideration of forecasted financial information, in the context of the unknown future impacts of these and other events using information reasonably available to us at this time. The accounting estimates and other matters assessed included, but were not limited to, provisions for expected credit losses, goodwill and other intangible assets, financial instruments, inventory provisions, associate benefits, income taxes and revenue recognition. Based on our assessment performed, the resulting provisions recorded were not material to our Condensed Consolidated Interim Financial Statements for the three or six months ended June 30, 2022 or 2021. However, because of the inherent uncertainties of the continuation of the war on Ukraine, COVID-19 or other items, actual outcomes and results may differ materially from management's current assumptions and estimates. Foreign currencies The hyperinflationary economies in which Alcon operates are Argentina, Turkey and Venezuela. Argentina and Venezuela were hyperinflationary for all periods presented. Turkey became hyperinflationary effective April 1, 2022, requiring retroactive implementation from January 1, 2022 of hyperinflationary accounting. The accounting policy for hyperinflationary economies is described in Note 3 to the Consolidated Financial Statements in the Form 20-F. Impairment of goodwill, Alcon brand name and definite lived intangible assets As discussed in Note 3 to the Consolidated Financial Statements in the Form 20-F, Goodwill, the Alcon brand name and acquired In-process research & development projects are reviewed for impairment at least annually and these, as well as all other investments in intangible assets, are reviewed for impairment whenever events or changes in circumstance indicate that the asset's balance sheet or reportable segment carrying amount may not be recoverable. Goodwill and other intangible assets represent a significant amount of total assets on the Consolidated Balance Sheet. Impairment testing may lead to potentially significant impairment charges in the future, which could have a materially adverse impact on Alcon's results of operations and financial condition. |
Significant transactions
Significant transactions | 6 Months Ended |
Jun. 30, 2022 | |
Significant Transactions [Abstract] | |
Significant transactions | Significant transactions Significant transactions in 2022 Series 2028 notes issuance On May 31, 2022, Alcon, through its wholly owned subsidiary Alcon Finance B.V. (“AFBV”), completed a public offering of $537 million (EUR500 million) of non-current EUR denominated financial debt consisting of 2.375% senior notes due 2028 ("Series 2028 Notes"). The funds borrowed through the issuance of the Series 2028 Notes were used to repay the $376 million (EUR350 million) Facility C term loan in full and partially repay $160 million of the Facility B term loan. Refer to Note 6 to these Condensed Consolidated Interim Financial Statements for additional information. Surgical - Acquisition of Ivantis, Inc. On January 7, 2022, Alcon acquired 100% of the outstanding shares and equity of Ivantis, Inc., a privately-held, US-based company and manufacturer of the Hydrus Microstent, a minimally-invasive glaucoma surgery (“MIGS”) device designed to lower intraocular pressure for open-angle glaucoma patients, for total upfront consideration of $479 million and additional amounts to be potentially paid upon achievement of development and commercial milestones. The acquisition expands Alcon’s surgical portfolio and is expected to help provide a platform for more growth in the glaucoma space. Refer to Note 11 to these Condensed Consolidated Interim Financial Statements for additional information regarding this transaction which was accounted for as an asset acquisition. Significant transactions in 2021 Vision Care - Acquisition of Simbrinza US commercialization rights On April 28, 2021, Alcon executed an Asset Purchase Agreement (“Agreement”) to acquire exclusive US commercialization rights to a pharmaceutical ophthalmic eye drop, Simbrinza (brinzolamide/brimonidine tartrate ophthalmic suspension) 1%/0.2% from Novartis. Under the terms of the Agreement, Alcon paid $355 million at closing on June 8, 2021 and recognized the intangible asset acquisition as currently marketed products within the Vision Care reportable segment. After closing, Alcon and Novartis immediately began a transition period during which Novartis sold Simbrinza on Alcon's behalf. The transition period concluded during the third quarter of 2021 and Alcon began to fully commercialize Simbrinza for the US market. Novartis retains all rights to Simbrinza® outside of the US. |
Segmentation of key figures
Segmentation of key figures | 6 Months Ended |
Jun. 30, 2022 | |
Operating Segments [Abstract] | |
Segmentation of key figures | Segmentation of key figures The segment information disclosed in these Condensed Consolidated Interim Financial Statements reflects historical results consistent with the identifiable reportable segments of Alcon and financial information that the Chief Operating Decision Maker ("CODM") reviews to evaluate segmental performance and allocate resources among the segments. The CODM is the Executive Committee of Alcon. The businesses of Alcon are divided operationally on a worldwide basis into two identified reportable segments, Surgical and Vision Care. Alcon's reportable segments are the same as its operating segments as Alcon does not aggregate any operating segments in arriving at its reportable segments. As indicated below, certain income and expenses are not allocated to segments. Reportable segments are presented in a manner consistent with the internal reporting to the CODM. The reportable segments are managed separately due to their distinct needs and activities for research, development, manufacturing, distribution and commercial execution. The Executive Committee of Alcon is responsible for allocating resources and assessing the performance of the reportable segments. In Surgical, Alcon researches, develops, manufactures, distributes and sells ophthalmic products for cataract surgery, vitreoretinal surgery, refractive laser surgery and glaucoma surgery. The surgical portfolio also includes implantables, consumables and surgical equipment required for these procedures and supports the end-to-end procedure needs of the ophthalmic surgeon. In Vision Care, Alcon researches, develops, manufactures, distributes and sells daily disposable, reusable, and color-enhancing contact lenses and a comprehensive portfolio of ocular health products, including products for dry eye, glaucoma, contact lens care and ocular allergies, as well as ocular vitamins and redness relievers. Alcon also provides services, training, education and technical support for both the Surgical and Vision Care businesses. The basis of preparation and the selected accounting policies mentioned in Note 1 of these Condensed Consolidated Interim Financial Statements are used in the reporting of segment results. The Executive Committee of Alcon evaluates segmental performance and allocates resources among the segments primarily based on net sales and segment contribution. Net identifiable assets are not assigned to the segments in the internal reporting to the CODM, and are not considered in evaluating the performance of the business segments by the Executive Committee of Alcon. Segment contribution excludes amortization and impairment charges for acquired product rights or other intangibles, general and administrative expenses for corporate activities, separation costs, transformation costs, fair value adjustments to contingent consideration liabilities, past service costs primarily for post-employment benefit plan amendments, and certain other income and expense items. General & administration (corporate) includes the costs of the Alcon corporate headquarters, including all related corporate function costs. Other income and expense items excluded from segment contribution include fair value adjustments of financial assets in the form of options to acquire a company carried at fair value through profit and loss ("FVPL"), net gains and losses on fund investments and equity securities valued at FVPL, restructuring costs, legal provisions and settlements, integration related expenses and other income and expense items not attributed to a specific segment. Net sales and other revenues by segment Three months ended June 30 Six months ended June 30 ($ millions) 2022 2021 2022 2021 Surgical Implantables 444 387 899 731 Consumables 644 620 1,245 1,155 Equipment/other 208 199 411 397 Total Surgical net sales to third parties 1,296 1,206 2,555 2,283 Vision Care Contact lenses 547 535 1,104 1,044 Ocular health 357 353 716 677 Total Vision Care net sales to third parties 904 888 1,820 1,721 Total net sales to third parties 2,200 2,094 4,375 4,004 Vision Care other revenues 17 16 31 36 Total net sales and other revenues 2,217 2,110 4,406 4,040 Segment contribution and reconciliation to income before taxes Three months ended June 30 Six months ended June 30 ($ millions) 2022 2021 2022 2021 Segment contribution Surgical 348 327 720 602 Vision Care 147 146 317 292 Total segment contribution 495 473 1,037 894 Not allocated to segments: Amortization of intangible assets (162) (143) (324) (283) Impairment charges on intangible assets (61) — (61) (45) General & administration (corporate) (70) (69) (132) (126) Separation costs — (6) — (16) Transformation costs (9) (15) (24) (26) Fair value adjustments to contingent consideration liabilities 7 — 7 — Past service costs for post-employment benefit plan amendments — — — 2 Other — (11) (57) (22) Operating income 200 229 446 378 Interest expense (31) (30) (60) (61) Other financial income & expense (22) (8) (39) (17) Income before taxes 147 191 347 300 Net sales by region (1) Three months ended June 30 Six months ended June 30 ($ millions unless indicated otherwise) 2022 2021 2022 2021 United States 990 45 % 958 46 % 1,929 44 % 1,793 45 % International 1,210 55 % 1,136 54 % 2,446 56 % 2,211 55 % Net sales to third parties 2,200 100 % 2,094 100 % 4,375 100 % 4,004 100 % (1) Net sales to third parties by location of third-party customer. |
Dividend and earnings_(loss) pe
Dividend and earnings/(loss) per share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings per share [abstract] | |
Dividend and earnings/(loss) per share | Dividends and earnings per share Dividends On February 15, 2022, the Alcon Board of Directors ("Board") proposed a dividend of CHF 0.20 per share, which was subsequently approved by the shareholders at the Annual General Meeting on April 27, 2022 and paid in May 2022 for an amount of $100 million. On February 23, 2021, the Board proposed a dividend of CHF 0.10 per share, which was subsequently approved by the shareholders at the Annual General Meeting on April 28, 2021 and paid in May 2021 for an amount of $54 million. Earnings per share As of June 30, 2022, there were 491.6 million outstanding common shares, after the delivery of 1.5 million net shares vesting under the equity incentive programs during the six months ended June 30, 2022. Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. For the three and six months ended June 30, 2022, the weighted average number of shares outstanding was 491.7 million and 491.3 million, respectively. For the three and six months ended June 30, 2021, the weighted average number of shares outstanding was 490.0 million and 489.9 million, respectively. |
Intangible assets other than go
Intangible assets other than goodwill | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible assets other than goodwill | Intangible assets other than goodwill Intangible asset impairment charges Impairments during the three and six months ended June 30, 2022 amounted to $61 million. An impairment charge of $59 million was recognized in Cost of net sales in the Condensed Consolidated Income Statement for a currently marketed product cash generating unit ("CGU") in the Surgical reportable segment, due to higher forecasted research and development costs associated with product redesign and delayed launch date of the next generation product. The CGU was reduced to its recoverable amount of $15 million estimated using the value in use ("VIU") method at the time of impairment. The recoverable value was estimated using net present value techniques utilizing pre-tax cash flows and a discount rate of 7.8%. The remaining impairment charge of $2 million was recognized in Research & development in the Condensed Consolidated Income Statement to fully impair an acquired research & development intangible asset in the Vision Care reportable segment which will no longer be used. Impairments during the six months ended June 30, 2021 amounted to $45 million due to an impairment recognized in the first quarter in Cost of net sales in the Condensed Consolidated Income Statement for a currently marketed product CGU in the Vision Care reportable segment due to lower expected sales. The CGU was reduced to its recoverable amount of $48 million estimated using the fair value less cost of disposal ("FVLCOD") method at the time of impairment. The recoverable value was estimated using net present value techniques utilizing post-tax cash flows and a discount rate as there are no direct or indirect observable prices in active markets for identical or similar assets. There were no impairment charges during the three months ended June 30, 2021. The estimates used in calculating net present value involve significant judgement by management and include assumptions with measurement uncertainty. The estimates include cash flow projections for a five-year period based on management forecasts, sales forecasts beyond the five-year period extrapolated using long-term expected growth rates, discount rates, and future tax rates. Actual cash flows and values could vary significantly from forecasted future cash flows and related values derived using net present value techniques. |
Non-current and current financi
Non-current and current financial debts | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Borrowings [Abstract] | |
Non-current and current financial debts | Non-current and current financial debts The below table summarizes non-current and current Financial debts outstanding as of June 30, 2022 and December 31, 2021. ($ millions) June 30, 2022 December 31, 2021 Non-current financial debts Facility B 637 796 Facility C — 395 Local facilities (Japan) — 47 Series 2026 notes 497 496 Series 2028 notes 517 — Series 2029 notes 993 993 Series 2030 notes 745 745 Series 2049 notes 494 494 Revolving facility — — Total non-current financial debts 3,883 3,966 Current financial debts Local facilities: Japan 70 84 All others 9 17 Other short-term financial debts 7 6 Derivatives 1 7 Total current financial debts 87 114 Total financial debts 3,970 4,080 Interest expense recognized for Financial debts, excluding lease liabilities, was $25 million and $49 million for the three and six months ended June 30, 2022, respectively, and $24 million and $48 million for the three and six months ended June 30, 2021, respectively. Series 2028 notes issuance On May 31, 2022, AFBV issued EUR denominated senior notes due in 2028, which are guaranteed by the Company. The Series 2028 Notes are unsecured senior obligations of AFBV issued and closed in a public offering and rank equally in right of payment with the Series 2026, Series 2029, Series 2030 and Series 2049 notes. The total principal of the Series 2028 Notes is $522 million (EUR500 million) as of June 30, 2022. The Series 2028 Notes were issued at 99.476% with 2.375% interest payable annually in May, beginning in May 2023. The Series 2028 Notes were issued at a discount totaling $3 million, which was recorded as a reduction to the carrying value of the Series 2028 Notes and will be amortized to Interest expense over the term of the Series 2028 Notes. AFBV incurred $3 million of debt issuance costs, which were recorded as a reduction to the carrying value of the Series 2028 Notes and will be amortized to Other financial income & expense over the term of the Series 2028 Notes. On May 31, 2022, the funds borrowed through the issuance of the Series 2028 Notes were used to fully repay the $376 million (EUR350 million) Facility C term loan maturing in 2024 and repay $160 million of the $800 million Facility B term loan maturing in 2024. The transactions were accounted for as an extinguishment and partial extinguishment of a liability, respectively. The remaining principal balance of the Facility B term loan is $640 million as of June 30, 2022. Alcon recognized losses on extinguishment of $1 million associated with the write-off of unamortized deferred financing costs in Other financial income & expense for three and six months ended June 30, 2022. Revolving facility The Revolving facility remained undrawn as of June 30, 2022. |
Financial instruments
Financial instruments | 6 Months Ended |
Jun. 30, 2022 | |
Financial Instruments [Abstract] | |
Financial instruments | Financial instruments Fair value by hierarchy As required by IFRS, financial assets and liabilities recorded at fair value in the Condensed Consolidated Interim Financial Statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. There are three hierarchical levels, based on an increasing amount of judgment associated with the inputs to derive fair value for these financial assets and liabilities, which are as follows: Financial assets and liabilities carried at Level 1 fair value hierarchy are listed in active markets. Financial assets and liabilities carried at Level 2 fair value hierarchy are valued using corroborated market data. Level 1 financial assets include money market funds, equity securities of public companies and deferred compensation assets. There were no financial liabilities carried at Level 1 fair value, and Level 2 financial assets and liabilities include derivative financial instruments. Investments in money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The investments are classified as Cash & cash equivalents within the Condensed Consolidated Balance Sheet. Investments in equity securities of public companies are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Deferred compensation investments for certain employee benefit plans are held in a rabbi trust and dedicated to pay the benefits under the associated plans but are not considered plan assets as the assets remain available to creditors of Alcon in certain events, including bankruptcy. Rabbi trust assets primarily consist of investments in mutual funds. These assets are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Level 3 inputs are unobservable for the financial asset or liability. The financial assets and liabilities generally included in the Level 3 fair value hierarchy are equity securities and convertible notes receivable of private companies measured at fair value through other comprehensive income ("FVOCI"), fund investments, options to acquire private companies, and contingent consideration liabilities measured at fair value through profit and loss ("FVPL"). The below tables summarize financial assets and liabilities measured at fair value on a recurring basis or at amortized cost or cost as of June 30, 2022 and December 31, 2021. June 30, 2022 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 65 — 65 Long-term financial investments measured at FVPL — — 5 — 5 Long-term receivables from customers — — — 117 117 Deferred compensation assets (1) 135 — — — 135 Non-current minimum lease payments from finance lease agreements — — — 38 38 Long-term loans, advances and security deposits — — — 21 21 Non-current financial assets 135 — 70 176 381 Current financial assets Money market funds 241 — — — 241 Current portion of long-term receivables from customers (2) — — — 102 102 Current portion of minimum lease payments from finance lease agreements (2) — — — 26 26 Other receivables, security deposits and current assets (2) — — — 70 70 VAT receivables (2) — — — 75 75 Derivative financial instruments (2) — 7 — — 7 Current financial assets 241 7 — 273 521 Financial assets at fair value and amortized cost or cost 376 7 70 449 902 Financial liabilities Contingent consideration liabilities — — (109) — (109) Non-current financial debt — — — (3,883) (3,883) Current financial debt — — — (86) (86) Derivative financial instruments — (1) — — (1) Financial liabilities at fair value and amortized cost — (1) (109) (3,969) (4,079) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) The carrying amount is a reasonable approximation of fair value, with the exception of the Series 2026, 2028, 2029, 2030 and 2049 notes recorded in Non-current financial debt with a fair value of $2,912 million and a carrying value of $3,246 million as of June 30, 2022. The fair value of notes was determined using Level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. December 31, 2021 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 46 — 46 Long-term financial investments measured at FVPL — — 6 — 6 Long-term receivables from customers — — — 110 110 Deferred compensation assets (1) 155 — — — 155 Non-current minimum lease payments from finance lease agreements — — — 35 35 Long-term loans, advances and security deposits — — — 20 20 Non-current financial assets 155 — 52 165 372 Current financial assets Money market funds 624 — — — 624 Equity securities of public companies (2) 3 — — — 3 Current portion of long-term receivables from customers (2) — — — 97 97 Current portion of minimum lease payments from finance lease agreements (2) — — — 28 28 Other receivables, security deposits and current assets (2) — — — 79 79 VAT receivables (2) — — — 105 105 Derivative financial instruments (2) — 3 — — 3 Current financial assets 627 3 — 309 939 Financial assets at fair value and amortized cost or cost 782 3 52 474 1,311 Financial liabilities Contingent consideration liabilities — — (112) — (112) Non-current financial debt — — — (3,966) (3,966) Current financial debt — — — (107) (107) Derivative financial instruments — (7) — — (7) Financial liabilities at fair value and amortized cost — (7) (112) (4,073) (4,192) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) The carrying amount is a reasonable approximation of fair value, with the exception of the Series 2026, 2029, 2030 and 2049 notes recorded in Non-current financial debt with a fair value of $2,891 million and a carrying value of $2,728 million as of December 31, 2021 . The fair value of notes was determined using Level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. The carrying amount is a reasonable approximation of fair value for all other financial assets and liabilities as of June 30, 2022, including Cash & cash equivalents, Trade receivables, Income tax receivables and Trade payables. There were no transfers of financial instruments between levels in the fair value hierarchy during the six months ended June 30, 2022. Level 3 financial instruments measured at fair value on a recurring basis Financial assets Long-term financial investments measured Financial investments ($ millions) 2022 2021 2022 2021 Balance as of January 1 46 28 6 24 Additions 19 9 — — Gain recognized in Consolidated Statement of Comprehensive Income 1 — — — Unrealized (losses) in Consolidated Income Statement — — (1) (1) Amortization — — — (8) Settlement (1) — — — Balance as of June 30 65 37 5 15 Financial liabilities Contingent consideration liabilities ($ millions) 2022 2021 Balance as of January 1 (112) (157) Accretion for passage of time (4) (7) Adjustments for changes in assumptions 7 — Payments — 15 Balance as of June 30 (109) (149) Changes in contingent consideration liabilities in the current period include fair value adjustments for changes in assumptions of $7 million, primarily due to revised expectations for achievement and timing of settlement for development milestones. As of June 30, 2022, the probability of success for various development and commercial milestones ranges from 55% to 57% and the maximum remaining potential payments related to contingent consideration from business combinations is $395 million, plus other amounts calculated as a percentage of commercial sales in cases where there is not a specified maximum contractual payment amount. The estimation of probability typically depends on factors such as technical milestones or market performance and is adjusted for the probability of payment. If material, probable payments are appropriately discounted to reflect the impact of time. Changes in contingent consideration liabilities in the prior year period included a payment of $15 million related to achievement of a development milestone. Contingent consideration liabilities are reported in “Provisions & other non-current liabilities" based on the projected timing of settlement which is estimated to range from 2028 through 2033 for contingent consideration obligations as of June 30, 2022. Derivatives As of June 30, 2022, the net value of unsettled positions for derivative forward contracts and swaps was $6 million, including $7 million of unrealized gains in Other current assets and $1 million of unrealized losses in Current financial debts. As of December 31, 2021, the net value of unsettled positions for derivative forward contracts and swaps was $4 million, including $3 million of unrealized gains in Other current assets and $7 million of unrealized losses in Current financial debts. There are master agreements with several banking counterparties for derivative financial instruments, however, there were no derivative financial instruments meeting the offsetting criteria under IFRS as of June 30, 2022 or December 31, 2021. Nature and extent of risks arising from financial instruments Note 18 to the Consolidated Financial Statements in the Form 20-F contains a summary of the nature and extent of risks arising from financial instruments. There have been no significant updates to our assessment of the nature and extent of risks arising from financial instruments during the period. |
Condensed consolidated statemen
Condensed consolidated statements of cash flows - additional details | 6 Months Ended |
Jun. 30, 2022 | |
Cash Flow Statement [Abstract] | |
Condensed consolidated statements of cash flows - additional details | Condensed Consolidated Statement of Cash Flows - additional details The below tables provide additional detail supporting select line items in the Condensed Consolidated Statement of Cash Flows. 8.1 Depreciation, amortization, impairments and fair value adjustments Six months ended June 30 ($ millions) 2022 2021 Property, plant & equipment 161 160 Right-of-use assets 38 42 Intangible assets 385 328 Financial assets 1 1 Other non-current assets 3 (1) Total 588 530 8.2 Change in net current assets and other operating cash flow items Six months ended June 30 ($ millions) 2022 2021 (Increase) in inventories (118) (184) (Increase) in trade receivables (151) (117) Increase in trade payables 8 23 Net change in other operating assets (16) 20 Net change in other operating liabilities (154) (18) Total (431) (276) |
Equity-based compensation
Equity-based compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangements [Abstract] | |
Equity-based compensation | Equity-based compensation As described in Note 24 to the Consolidated Financial Statements in the Form 20-F, Alcon has various equity incentive plans, under which Alcon may grant awards in the form of restricted stock units ("RSUs"), performance-based restricted stock units ("PSUs"), restricted stock awards ("RSAs"), or any other form of award at the discretion of the Board. Certain associates in select countries may also participate in share ownership savings plans. The below table summarizes unvested share movements for all Alcon equity-based incentive plans for the six months ended June 30, 2022 and 2021: Six months ended June 30 (shares in millions) 2022 2021 Unvested at January 1 5.6 5.4 Granted 1.8 1.8 Vested (2.1) (1.1) Forfeited (0.1) (0.2) Unvested at June 30 5.2 5.9 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Asset Acquisitions [Abstract] | |
Acquisitions | Acquisitions The below table summarizes the purchase price allocation for asset acquisitions in the six months ended June 30, 2022 and 2021, including initial direct costs: Six months ended June 30 ($ millions) 2022 2021 Currently marketed products 385 — Acquired in-process research & development 10 — Other intangible assets (including software) 12 — Deferred tax assets 57 — Trade receivables 10 — Inventory 16 — Cash and cash equivalents 4 — Other assets 6 — Trade payables and other liabilities (11) — Net identifiable assets acquired 489 — Acquired liquidity (4) — Net assets recognized as a result of asset acquisitions 485 — During the six months ended June 30, 2022, cash paid for acquisitions, net of cash acquired, was $483 million, the most significant of which was $475 million paid for Ivantis, Inc., described below. Surgical - Acquisition of Ivantis, Inc. On January 7, 2022, Alcon acquired 100% of the outstanding shares and equity of Ivantis, Inc., a privately-held, US-based company and manufacturer of the Hydrus Microstent, a minimally-invasive glaucoma surgery (“MIGS”) device designed to lower intraocular pressure for open-angle glaucoma patients. The acquisition expands Alcon’s surgical portfolio and is expected to help provide a platform for more growth in the glaucoma space. Pursuant to the terms and subject to the conditions of the Option Agreement and Plan of Merger, as amended, Alcon agreed to pay total upfront consideration of $479 million and additional amounts to be potentially paid upon achievement of a development milestone and commercial milestones calculated as a percentage of sales in excess of defined targets that expire in calendar year 2024. The acquisition was accounted for as an asset acquisition rather than a business combination as substantially all of the fair value of the gross assets acquired is concentrated in the value of the Hydrus Microstent commercially marketed product intangible assets, being a group of identifiable assets. Consequently, a relative fair value approach was taken for allocating the consideration to the acquired assets and liabilities with no goodwill recognized. During the six months ended June 30, 2022, cash paid for the acquisition, net of cash acquired, was $475 million. An additional $2 million is expected to be paid in the third quarter of 2022. |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2022 | |
Events After Reporting Period [Abstract] | |
Subsequent events | Subsequent events On July 8, 2022, Alcon acquired two pharmaceutical ophthalmic eye drops, Eysuvis and Inveltys from Kala Pharmaceuticals, Inc. The acquisition complements Alcon’s existing portfolio in the large and fast-growing dry eye category. Pursuant to the terms of the Asset Purchase Agreement, Alcon agreed to pay total up front consideration of $60 million for Eysuvis and Inveltys , and an additional amount to purchase certain related inventory, as well as amounts to be potentially paid upon achievement of certain commercial milestones if annual sales exceed defined targets that expire after 2029. These unaudited Condensed Consolidated Interim Financial Statements were authorized for issue by the Audit & Risk Committee on August 9, 2022. |
Selected accounting policies (P
Selected accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Statement of IFRS compliance | The accompanying Condensed Consolidated Interim Financial Statements present our historical financial position, results of operations, comprehensive income and cash flows in accordance with IFRS. |
Use of estimates and assumptions | The preparation of financial statements requires management to make subjective and complex estimates and assumptions, either at the balance sheet date or during the period that affect the reported amounts of assets and liabilities as well as revenues and expenses. We have analyzed the impact of the war on |
Foreign currencies | The hyperinflationary economies in which Alcon operates are Argentina, Turkey and Venezuela. Argentina and Venezuela were hyperinflationary for all periods presented. Turkey became hyperinflationary effective April 1, 2022, requiring retroactive implementation from January 1, 2022 of hyperinflationary accounting. The accounting policy for hyperinflationary economies is described in Note 3 to the Consolidated Financial Statements in the Form 20-F. |
Impairment of goodwill, Alcon brand name and definite lived intangible assets | As discussed in Note 3 to the Consolidated Financial Statements in the Form 20-F, Goodwill, the Alcon brand name and acquired In-process research & development projects are reviewed for impairment at least annually and these, as well as all other investments in intangible assets, are reviewed for impairment whenever events or changes in circumstance indicate that the asset's balance sheet or reportable segment carrying amount may not be recoverable. Goodwill and other intangible assets represent a significant amount of total assets on the Consolidated Balance Sheet. Impairment testing may lead to potentially significant impairment charges in the future, which could have a materially adverse impact on Alcon's results of operations and financial condition. |
Segmentation of key figures (Ta
Segmentation of key figures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | Net sales and other revenues by segment Three months ended June 30 Six months ended June 30 ($ millions) 2022 2021 2022 2021 Surgical Implantables 444 387 899 731 Consumables 644 620 1,245 1,155 Equipment/other 208 199 411 397 Total Surgical net sales to third parties 1,296 1,206 2,555 2,283 Vision Care Contact lenses 547 535 1,104 1,044 Ocular health 357 353 716 677 Total Vision Care net sales to third parties 904 888 1,820 1,721 Total net sales to third parties 2,200 2,094 4,375 4,004 Vision Care other revenues 17 16 31 36 Total net sales and other revenues 2,217 2,110 4,406 4,040 Segment contribution and reconciliation to income before taxes Three months ended June 30 Six months ended June 30 ($ millions) 2022 2021 2022 2021 Segment contribution Surgical 348 327 720 602 Vision Care 147 146 317 292 Total segment contribution 495 473 1,037 894 Not allocated to segments: Amortization of intangible assets (162) (143) (324) (283) Impairment charges on intangible assets (61) — (61) (45) General & administration (corporate) (70) (69) (132) (126) Separation costs — (6) — (16) Transformation costs (9) (15) (24) (26) Fair value adjustments to contingent consideration liabilities 7 — 7 — Past service costs for post-employment benefit plan amendments — — — 2 Other — (11) (57) (22) Operating income 200 229 446 378 Interest expense (31) (30) (60) (61) Other financial income & expense (22) (8) (39) (17) Income before taxes 147 191 347 300 |
Disclosure of geographical areas | Net sales by region (1) Three months ended June 30 Six months ended June 30 ($ millions unless indicated otherwise) 2022 2021 2022 2021 United States 990 45 % 958 46 % 1,929 44 % 1,793 45 % International 1,210 55 % 1,136 54 % 2,446 56 % 2,211 55 % Net sales to third parties 2,200 100 % 2,094 100 % 4,375 100 % 4,004 100 % (1) Net sales to third parties by location of third-party customer. |
Non-current and current finan_2
Non-current and current financial debts (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Borrowings [Abstract] | |
Schedule of financial debts | The below table summarizes non-current and current Financial debts outstanding as of June 30, 2022 and December 31, 2021. ($ millions) June 30, 2022 December 31, 2021 Non-current financial debts Facility B 637 796 Facility C — 395 Local facilities (Japan) — 47 Series 2026 notes 497 496 Series 2028 notes 517 — Series 2029 notes 993 993 Series 2030 notes 745 745 Series 2049 notes 494 494 Revolving facility — — Total non-current financial debts 3,883 3,966 Current financial debts Local facilities: Japan 70 84 All others 9 17 Other short-term financial debts 7 6 Derivatives 1 7 Total current financial debts 87 114 Total financial debts 3,970 4,080 |
Financial instruments (Tables)
Financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Financial Instruments [Abstract] | |
Disclosure of fair value measurement of assets | The below tables summarize financial assets and liabilities measured at fair value on a recurring basis or at amortized cost or cost as of June 30, 2022 and December 31, 2021. June 30, 2022 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 65 — 65 Long-term financial investments measured at FVPL — — 5 — 5 Long-term receivables from customers — — — 117 117 Deferred compensation assets (1) 135 — — — 135 Non-current minimum lease payments from finance lease agreements — — — 38 38 Long-term loans, advances and security deposits — — — 21 21 Non-current financial assets 135 — 70 176 381 Current financial assets Money market funds 241 — — — 241 Current portion of long-term receivables from customers (2) — — — 102 102 Current portion of minimum lease payments from finance lease agreements (2) — — — 26 26 Other receivables, security deposits and current assets (2) — — — 70 70 VAT receivables (2) — — — 75 75 Derivative financial instruments (2) — 7 — — 7 Current financial assets 241 7 — 273 521 Financial assets at fair value and amortized cost or cost 376 7 70 449 902 Financial liabilities Contingent consideration liabilities — — (109) — (109) Non-current financial debt — — — (3,883) (3,883) Current financial debt — — — (86) (86) Derivative financial instruments — (1) — — (1) Financial liabilities at fair value and amortized cost — (1) (109) (3,969) (4,079) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) The carrying amount is a reasonable approximation of fair value, with the exception of the Series 2026, 2028, 2029, 2030 and 2049 notes recorded in Non-current financial debt with a fair value of $2,912 million and a carrying value of $3,246 million as of June 30, 2022. The fair value of notes was determined using Level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. December 31, 2021 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 46 — 46 Long-term financial investments measured at FVPL — — 6 — 6 Long-term receivables from customers — — — 110 110 Deferred compensation assets (1) 155 — — — 155 Non-current minimum lease payments from finance lease agreements — — — 35 35 Long-term loans, advances and security deposits — — — 20 20 Non-current financial assets 155 — 52 165 372 Current financial assets Money market funds 624 — — — 624 Equity securities of public companies (2) 3 — — — 3 Current portion of long-term receivables from customers (2) — — — 97 97 Current portion of minimum lease payments from finance lease agreements (2) — — — 28 28 Other receivables, security deposits and current assets (2) — — — 79 79 VAT receivables (2) — — — 105 105 Derivative financial instruments (2) — 3 — — 3 Current financial assets 627 3 — 309 939 Financial assets at fair value and amortized cost or cost 782 3 52 474 1,311 Financial liabilities Contingent consideration liabilities — — (112) — (112) Non-current financial debt — — — (3,966) (3,966) Current financial debt — — — (107) (107) Derivative financial instruments — (7) — — (7) Financial liabilities at fair value and amortized cost — (7) (112) (4,073) (4,192) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) The carrying amount is a reasonable approximation of fair value, with the exception of the Series 2026, 2029, 2030 and 2049 notes recorded in Non-current financial debt with a fair value of $2,891 million and a carrying value of $2,728 million as of December 31, 2021 . The fair value of notes was determined using Level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. Financial assets Long-term financial investments measured Financial investments ($ millions) 2022 2021 2022 2021 Balance as of January 1 46 28 6 24 Additions 19 9 — — Gain recognized in Consolidated Statement of Comprehensive Income 1 — — — Unrealized (losses) in Consolidated Income Statement — — (1) (1) Amortization — — — (8) Settlement (1) — — — Balance as of June 30 65 37 5 15 |
Disclosure of fair value measurement of liabilities | The below tables summarize financial assets and liabilities measured at fair value on a recurring basis or at amortized cost or cost as of June 30, 2022 and December 31, 2021. June 30, 2022 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 65 — 65 Long-term financial investments measured at FVPL — — 5 — 5 Long-term receivables from customers — — — 117 117 Deferred compensation assets (1) 135 — — — 135 Non-current minimum lease payments from finance lease agreements — — — 38 38 Long-term loans, advances and security deposits — — — 21 21 Non-current financial assets 135 — 70 176 381 Current financial assets Money market funds 241 — — — 241 Current portion of long-term receivables from customers (2) — — — 102 102 Current portion of minimum lease payments from finance lease agreements (2) — — — 26 26 Other receivables, security deposits and current assets (2) — — — 70 70 VAT receivables (2) — — — 75 75 Derivative financial instruments (2) — 7 — — 7 Current financial assets 241 7 — 273 521 Financial assets at fair value and amortized cost or cost 376 7 70 449 902 Financial liabilities Contingent consideration liabilities — — (109) — (109) Non-current financial debt — — — (3,883) (3,883) Current financial debt — — — (86) (86) Derivative financial instruments — (1) — — (1) Financial liabilities at fair value and amortized cost — (1) (109) (3,969) (4,079) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) The carrying amount is a reasonable approximation of fair value, with the exception of the Series 2026, 2028, 2029, 2030 and 2049 notes recorded in Non-current financial debt with a fair value of $2,912 million and a carrying value of $3,246 million as of June 30, 2022. The fair value of notes was determined using Level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. December 31, 2021 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 46 — 46 Long-term financial investments measured at FVPL — — 6 — 6 Long-term receivables from customers — — — 110 110 Deferred compensation assets (1) 155 — — — 155 Non-current minimum lease payments from finance lease agreements — — — 35 35 Long-term loans, advances and security deposits — — — 20 20 Non-current financial assets 155 — 52 165 372 Current financial assets Money market funds 624 — — — 624 Equity securities of public companies (2) 3 — — — 3 Current portion of long-term receivables from customers (2) — — — 97 97 Current portion of minimum lease payments from finance lease agreements (2) — — — 28 28 Other receivables, security deposits and current assets (2) — — — 79 79 VAT receivables (2) — — — 105 105 Derivative financial instruments (2) — 3 — — 3 Current financial assets 627 3 — 309 939 Financial assets at fair value and amortized cost or cost 782 3 52 474 1,311 Financial liabilities Contingent consideration liabilities — — (112) — (112) Non-current financial debt — — — (3,966) (3,966) Current financial debt — — — (107) (107) Derivative financial instruments — (7) — — (7) Financial liabilities at fair value and amortized cost — (7) (112) (4,073) (4,192) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) The carrying amount is a reasonable approximation of fair value, with the exception of the Series 2026, 2029, 2030 and 2049 notes recorded in Non-current financial debt with a fair value of $2,891 million and a carrying value of $2,728 million as of December 31, 2021 . The fair value of notes was determined using Level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. Financial liabilities Contingent consideration liabilities ($ millions) 2022 2021 Balance as of January 1 (112) (157) Accretion for passage of time (4) (7) Adjustments for changes in assumptions 7 — Payments — 15 Balance as of June 30 (109) (149) |
Condensed consolidated statem_2
Condensed consolidated statements of cash flows - additional details (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Cash Flow Statement [Abstract] | |
Depreciation, amortization, impairments and fair value adjustments | Six months ended June 30 ($ millions) 2022 2021 Property, plant & equipment 161 160 Right-of-use assets 38 42 Intangible assets 385 328 Financial assets 1 1 Other non-current assets 3 (1) Total 588 530 |
Change in net current assets and other operating cash flow items | Six months ended June 30 ($ millions) 2022 2021 (Increase) in inventories (118) (184) (Increase) in trade receivables (151) (117) Increase in trade payables 8 23 Net change in other operating assets (16) 20 Net change in other operating liabilities (154) (18) Total (431) (276) |
Equity-based compensation (Tabl
Equity-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangements [Abstract] | |
Summary of unvested share movements | The below table summarizes unvested share movements for all Alcon equity-based incentive plans for the six months ended June 30, 2022 and 2021: Six months ended June 30 (shares in millions) 2022 2021 Unvested at January 1 5.6 5.4 Granted 1.8 1.8 Vested (2.1) (1.1) Forfeited (0.1) (0.2) Unvested at June 30 5.2 5.9 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Asset Acquisitions [Abstract] | |
Summary of purchase price allocation | The below table summarizes the purchase price allocation for asset acquisitions in the six months ended June 30, 2022 and 2021, including initial direct costs: Six months ended June 30 ($ millions) 2022 2021 Currently marketed products 385 — Acquired in-process research & development 10 — Other intangible assets (including software) 12 — Deferred tax assets 57 — Trade receivables 10 — Inventory 16 — Cash and cash equivalents 4 — Other assets 6 — Trade payables and other liabilities (11) — Net identifiable assets acquired 489 — Acquired liquidity (4) — Net assets recognized as a result of asset acquisitions 485 — |
Significant transactions (Detai
Significant transactions (Details) € in Millions, $ in Millions | 6 Months Ended | ||||||||
May 31, 2022 USD ($) | May 31, 2022 EUR (€) | Jan. 07, 2022 USD ($) | Jun. 08, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 EUR (€) | May 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Significant Transactions [Line Items] | |||||||||
Borrowings | $ 3,970 | $ 4,080 | |||||||
Repayments of non-current borrowings | 536 | $ 0 | |||||||
Cash paid for the acquisition | $ 479 | 483 | 0 | ||||||
Purchase of intangible assets | 23 | $ 411 | |||||||
Series 2028 notes | |||||||||
Significant Transactions [Line Items] | |||||||||
Borrowings | $ 537 | $ 522 | € 500 | ||||||
Borrowings, interest rate | 2.375% | 2.375% | 2.375% | ||||||
Facility C Term Loan | |||||||||
Significant Transactions [Line Items] | |||||||||
Repayments of non-current borrowings | $ 376 | € 350 | |||||||
Facility B Term Loan | |||||||||
Significant Transactions [Line Items] | |||||||||
Borrowings | $ 640 | $ 800 | |||||||
Repayments of non-current borrowings | € | € 160 | ||||||||
Simbrinza | |||||||||
Significant Transactions [Line Items] | |||||||||
Purchase of intangible assets | $ 355 |
Segmentation of key figures - N
Segmentation of key figures - Narrative (Details) | Jun. 30, 2022 segment |
Operating Segments [Abstract] | |
Number of reportable segments | 2 |
Segmentation of key figures -_2
Segmentation of key figures - Net sales by segment and Consolidated income statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of operating segments [line items] | ||||
Net sales to third parties | $ 2,200 | $ 2,094 | $ 4,375 | $ 4,004 |
Other revenues | 17 | 16 | 31 | 36 |
Net sales and other revenues | 2,217 | 2,110 | 4,406 | 4,040 |
Total segment contribution | 495 | 473 | 1,037 | 894 |
Amortization of intangible assets | (162) | (143) | (324) | (283) |
Impairment charges on intangible assets | (61) | 0 | (61) | (45) |
General & administration (corporate) | (70) | (69) | (132) | (126) |
Separation costs | 0 | (6) | 0 | (16) |
Transformation costs | (9) | (15) | (24) | (26) |
Fair value adjustments to contingent consideration liabilities | 7 | 0 | 7 | 0 |
Past service costs for post-employment benefit plan amendments | 0 | 0 | 0 | 2 |
Other | 0 | (11) | (57) | (22) |
Operating income | 200 | 229 | 446 | 378 |
Interest expense | (31) | (30) | (60) | (61) |
Other financial income & expense | (22) | (8) | (39) | (17) |
Income before taxes | 147 | 191 | 347 | 300 |
Surgical | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties | 1,296 | 1,206 | 2,555 | 2,283 |
Total segment contribution | 348 | 327 | 720 | 602 |
Surgical | Implantables | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties | 444 | 387 | 899 | 731 |
Surgical | Consumables | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties | 644 | 620 | 1,245 | 1,155 |
Surgical | Equipment/other | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties | 208 | 199 | 411 | 397 |
Vision Care | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties | 904 | 888 | 1,820 | 1,721 |
Total segment contribution | 147 | 146 | 317 | 292 |
Vision Care | Contact lenses | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties | 547 | 535 | 1,104 | 1,044 |
Vision Care | Ocular health | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties | $ 357 | $ 353 | $ 716 | $ 677 |
Segmentation of key figures -_3
Segmentation of key figures - Net sales by region (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of geographical areas [line items] | ||||
Net sales to third parties | $ 2,200 | $ 2,094 | $ 4,375 | $ 4,004 |
Percentage of entity's revenue | 100% | 100% | 100% | 100% |
United States | ||||
Disclosure of geographical areas [line items] | ||||
Net sales to third parties | $ 990 | $ 958 | $ 1,929 | $ 1,793 |
Percentage of entity's revenue | 45% | 46% | 44% | 45% |
International | ||||
Disclosure of geographical areas [line items] | ||||
Net sales to third parties | $ 1,210 | $ 1,136 | $ 2,446 | $ 2,211 |
Percentage of entity's revenue | 55% | 54% | 56% | 55% |
Dividend and earnings_(loss) _2
Dividend and earnings/(loss) per share (Details) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
May 31, 2022 SFr / shares | May 31, 2022 USD ($) | May 31, 2021 SFr / shares | May 31, 2021 USD ($) | Jun. 30, 2022 shares | Jun. 30, 2021 shares | Jun. 30, 2022 shares | Jun. 30, 2021 shares | |
Earnings per share [abstract] | ||||||||
Dividends (in CHF per share) | SFr / shares | SFr 0.20 | SFr 0.10 | ||||||
Dividends | $ | $ 100 | $ 54 | ||||||
Number of shares outstanding | 491.6 | 491.6 | ||||||
Number of shares vested | 1.5 | |||||||
Weighted average number of shares outstanding - basic (in shares) | 491.7 | 490 | 491.3 | 489.9 | ||||
Weighted average number of shares outstanding - diluted (in shares) | 494.3 | 493.2 | 494.2 | 492.8 | ||||
Potentially dilutive shares | 2.6 | 3.2 | 2.9 | 2.9 |
Intangible assets other than _2
Intangible assets other than goodwill (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment of intangibles | $ 61 | $ 0 | $ 61 | $ 45 |
Discount rate, measurement input | Intangible assets | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Significant unobservable input, assets | 0.078 | 0.078 | ||
Surgical | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Recoverable amount of CGU | $ 15 | $ 15 | ||
Surgical | Cost of net sales | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment of intangibles | 59 | 59 | ||
Vision Care | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Recoverable amount of CGU | $ 48 | 48 | ||
Vision Care | Cost of net sales | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment of intangibles | $ 45 | |||
Vision Care | Research and development | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment of intangibles | $ 2 | $ 2 |
Non-current and current finan_3
Non-current and current financial debts - Schedule of financial debts (Details) € in Millions, $ in Millions | Jun. 30, 2022 USD ($) | Jun. 30, 2022 EUR (€) | May 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financial debts | $ 3,883 | $ 3,966 | |||
Total current financial debts | 87 | 114 | |||
Total financial debts | 3,970 | 4,080 | |||
Facility B | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financial debts | 637 | 796 | |||
Facility C | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financial debts | 0 | 395 | |||
Local facilities (Japan) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financial debts | 0 | 47 | |||
Total current financial debts | 70 | 84 | |||
Total financial debts | $ 62 | ||||
Series 2026 notes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financial debts | 497 | 496 | |||
Series 2028 notes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financial debts | 517 | 0 | |||
Total financial debts | 522 | € 500 | $ 537 | ||
Series 2029 notes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financial debts | 993 | 993 | |||
Series 2030 notes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financial debts | 745 | 745 | |||
Series 2049 notes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financial debts | 494 | 494 | |||
Revolving facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financial debts | 0 | 0 | |||
Local facilities, all others | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total current financial debts | 9 | 17 | |||
Other short-term financial debts | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total current financial debts | 7 | 6 | |||
Derivatives | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total current financial debts | $ 1 | $ 7 |
Non-current and current finan_4
Non-current and current financial debts - Additional information (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
May 31, 2022 USD ($) | May 31, 2022 EUR (€) | Feb. 28, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 EUR (€) | May 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Interest expense | $ 25 | $ 24 | $ 49 | $ 48 | ||||||
Borrowings | 3,970 | 3,970 | $ 4,080 | |||||||
Repayments of non-current borrowings | 536 | $ 0 | ||||||||
Write-off of unamortized deferred financing costs | 1 | 1 | ||||||||
Series 2028 notes | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings | $ 537 | $ 522 | $ 522 | € 500 | ||||||
Borrowings, percentage of principal amount | 99.476% | |||||||||
Borrowings, interest rate | 2.375% | 2.375% | 2.375% | 2.375% | ||||||
Borrowings discount | $ 3 | $ 3 | ||||||||
Debt issuance costs | 3 | |||||||||
Facility C Term Loan | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Repayments of non-current borrowings | $ 376 | € 350 | ||||||||
Facility B Term Loan | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings | $ 640 | $ 640 | $ 800 | |||||||
Repayments of non-current borrowings | € | € 160 | |||||||||
Local facilities (Japan) | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings | $ 62 | |||||||||
Borrowings term | 1 year |
Financial instruments - Schedul
Financial instruments - Schedule of fair value of assets and liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | $ 246 | $ 217 | ||
Senior Notes Due 2026, 2028, 2029, 2030 and 2049 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value | 2,912 | |||
Series Notes Due 2026, 2029, 2030 and 2049 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value | 2,891 | |||
Measured at amortized cost or cost | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (3,969) | (4,073) | ||
Measured at amortized cost or cost | Senior Notes Due 2026, 2028, 2029, 2030 and 2049 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (3,246) | |||
Measured at amortized cost or cost | Series Notes Due 2026, 2029, 2030 and 2049 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (2,728) | |||
Measured at amortized cost or cost | Non-current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (3,883) | (3,966) | ||
Measured at amortized cost or cost | Current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (86) | (107) | ||
Measured at amortized cost or cost | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 176 | 165 | ||
Current financial assets | 273 | 309 | ||
Financial assets at fair value and amortized cost or cost | 449 | 474 | ||
Measured at amortized cost or cost | Long-term receivables from customers | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 117 | 110 | ||
Current financial assets | 102 | 97 | ||
Measured at amortized cost or cost | Minimum lease payments from finance lease agreements | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 38 | 35 | ||
Current financial assets | 26 | 28 | ||
Measured at amortized cost or cost | Long-term loans, advances and security deposits | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 21 | 20 | ||
Measured at amortized cost or cost | Other receivables, security deposits and current assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 70 | 79 | ||
Measured at amortized cost or cost | VAT receivables | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 75 | 105 | ||
Level 3 | Contingent consideration liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (109) | (112) | $ (149) | $ (157) |
Level 3 | Measured at FVOCI | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets at fair value and amortized cost or cost | 65 | 46 | 37 | 28 |
Level 3 | Measured at FVPL | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets at fair value and amortized cost or cost | 5 | 6 | $ 15 | $ 24 |
Recurring fair value measurement | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 381 | 372 | ||
Current financial assets | 521 | 939 | ||
Financial assets at fair value and amortized cost or cost | 902 | 1,311 | ||
Financial liabilities, at fair value and amortized cost | (4,079) | (4,192) | ||
Recurring fair value measurement | Measured at FVPL | Contingent consideration liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (112) | |||
Recurring fair value measurement | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (1) | (7) | ||
Recurring fair value measurement | Measured at FVPL | Contingent consideration [member] | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (109) | |||
Recurring fair value measurement | Measured at amortized cost or cost | Non-current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (3,883) | (3,966) | ||
Recurring fair value measurement | Measured at amortized cost or cost | Current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (86) | (107) | ||
Recurring fair value measurement | Money market funds | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 241 | 624 | ||
Recurring fair value measurement | Measured at FVOCI | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 65 | 46 | ||
Recurring fair value measurement | Measured at FVPL | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 5 | 6 | ||
Recurring fair value measurement | Measured at FVPL | Deferred compensation assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 135 | 155 | ||
Recurring fair value measurement | Measured at FVPL | Equity securities of public companies | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 3 | |||
Recurring fair value measurement | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 7 | 3 | ||
Recurring fair value measurement | Measured at amortized cost or cost | Long-term receivables from customers | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 117 | 110 | ||
Current financial assets | 102 | 97 | ||
Recurring fair value measurement | Measured at amortized cost or cost | Minimum lease payments from finance lease agreements | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 38 | 35 | ||
Current financial assets | 26 | 28 | ||
Recurring fair value measurement | Measured at amortized cost or cost | Long-term loans, advances and security deposits | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 21 | 20 | ||
Recurring fair value measurement | Measured at amortized cost or cost | Other receivables, security deposits and current assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 70 | 79 | ||
Recurring fair value measurement | Measured at amortized cost or cost | VAT receivables | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 75 | 105 | ||
Recurring fair value measurement | Level 1 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 135 | 155 | ||
Current financial assets | 241 | 627 | ||
Financial assets at fair value and amortized cost or cost | 376 | 782 | ||
Financial liabilities, at fair value and amortized cost | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at FVPL | Contingent consideration liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | |||
Recurring fair value measurement | Level 1 | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at FVPL | Contingent consideration [member] | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | |||
Recurring fair value measurement | Level 1 | Measured at amortized cost or cost | Non-current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at amortized cost or cost | Current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Money market funds | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 241 | 624 | ||
Recurring fair value measurement | Level 1 | Measured at FVOCI | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at FVPL | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at FVPL | Deferred compensation assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 135 | 155 | ||
Recurring fair value measurement | Level 1 | Measured at FVPL | Equity securities of public companies | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 3 | |||
Recurring fair value measurement | Level 1 | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at amortized cost or cost | Long-term receivables from customers | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at amortized cost or cost | Minimum lease payments from finance lease agreements | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at amortized cost or cost | Long-term loans, advances and security deposits | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at amortized cost or cost | Other receivables, security deposits and current assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at amortized cost or cost | VAT receivables | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 7 | 3 | ||
Financial assets at fair value and amortized cost or cost | 7 | 3 | ||
Financial liabilities, at fair value and amortized cost | (1) | (7) | ||
Recurring fair value measurement | Level 2 | Measured at FVPL | Contingent consideration liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | |||
Recurring fair value measurement | Level 2 | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (1) | (7) | ||
Recurring fair value measurement | Level 2 | Measured at FVPL | Contingent consideration [member] | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | |||
Recurring fair value measurement | Level 2 | Measured at amortized cost or cost | Non-current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Measured at amortized cost or cost | Current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Money market funds | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Measured at FVOCI | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Measured at FVPL | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Measured at FVPL | Deferred compensation assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Measured at FVPL | Equity securities of public companies | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | |||
Recurring fair value measurement | Level 2 | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 7 | 3 | ||
Recurring fair value measurement | Level 2 | Measured at amortized cost or cost | Long-term receivables from customers | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Measured at amortized cost or cost | Minimum lease payments from finance lease agreements | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Measured at amortized cost or cost | Long-term loans, advances and security deposits | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Measured at amortized cost or cost | Other receivables, security deposits and current assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Measured at amortized cost or cost | VAT receivables | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 70 | 52 | ||
Current financial assets | 0 | 0 | ||
Financial assets at fair value and amortized cost or cost | 70 | 52 | ||
Financial liabilities, at fair value and amortized cost | (109) | (112) | ||
Recurring fair value measurement | Level 3 | Measured at FVPL | Contingent consideration liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (112) | |||
Recurring fair value measurement | Level 3 | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Measured at FVPL | Contingent consideration [member] | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | (109) | |||
Recurring fair value measurement | Level 3 | Measured at amortized cost or cost | Non-current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Measured at amortized cost or cost | Current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities, at fair value and amortized cost | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Money market funds | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Measured at FVOCI | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 65 | 46 | ||
Recurring fair value measurement | Level 3 | Measured at FVPL | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 5 | 6 | ||
Recurring fair value measurement | Level 3 | Measured at FVPL | Deferred compensation assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Measured at FVPL | Equity securities of public companies | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | |||
Recurring fair value measurement | Level 3 | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Measured at amortized cost or cost | Long-term receivables from customers | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Measured at amortized cost or cost | Minimum lease payments from finance lease agreements | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Measured at amortized cost or cost | Long-term loans, advances and security deposits | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Measured at amortized cost or cost | Other receivables, security deposits and current assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Measured at amortized cost or cost | VAT receivables | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | $ 0 | $ 0 |
Financial instruments - Activit
Financial instruments - Activity in level 3 financial assets (Details) - Level 3 - Financial investments - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Measured at FVOCI | ||
Changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | $ 46 | $ 28 |
Additions | 19 | 9 |
Gain recognized in Consolidated Statement of Comprehensive Income | 1 | 0 |
Unrealized (losses) in Consolidated Income Statement | 0 | 0 |
Amortization | 0 | 0 |
Settlement | (1) | 0 |
Balance as of June 30 | 65 | 37 |
Measured at FVPL | ||
Changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | 6 | 24 |
Additions | 0 | 0 |
Gain recognized in Consolidated Statement of Comprehensive Income | 0 | 0 |
Unrealized (losses) in Consolidated Income Statement | (1) | (1) |
Amortization | 0 | (8) |
Settlement | 0 | 0 |
Balance as of June 30 | $ 5 | $ 15 |
Financial instruments - Activ_2
Financial instruments - Activity in level 3 financial liabilities (Details) - Level 3 - Contingent consideration liabilities - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Changes in fair value measurement, liabilities [abstract] | ||
Balance as of January 1 | $ (112) | $ (157) |
Accretion for passage of time | (4) | (7) |
Adjustments for changes in assumptions | 7 | 0 |
Payments | 0 | 15 |
Balance as of June 30 | $ (109) | $ (149) |
Financial instruments - Additio
Financial instruments - Additional information (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||
Contingent amount | $ 395 | ||
Unsettled derivative positions - assets (liabilities), net | 6 | $ (4) | |
Gains on change in fair value of derivatives | 7 | 3 | |
Losses on change in fair value of derivatives | $ 1 | $ 7 | |
Minimum | |||
Disclosure of detailed information about borrowings [line items] | |||
Probability of success, contingent consideration | 0.55 | ||
Maximum | |||
Disclosure of detailed information about borrowings [line items] | |||
Probability of success, contingent consideration | 0.57 | ||
Level 3 | Contingent consideration liabilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustments for changes in assumptions | $ 7 | $ 0 | |
Payments | $ 0 | $ 15 |
Condensed consolidated statem_3
Condensed consolidated statements of cash flows - additional details - Depreciation, amortization, impairments and fair value adjustments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | $ 588 | $ 530 |
Property, plant & equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 161 | 160 |
Right-of-use assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 38 | 42 |
Intangible assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 385 | 328 |
Financial assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 1 | 1 |
Other non-current assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | $ 3 | $ (1) |
Condensed consolidated statem_4
Condensed consolidated statements of cash flows - additional details - Change in net current assets and other operating cash flow items (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flow Statement [Abstract] | ||
(Increase) in inventories | $ (118) | $ (184) |
(Increase) in trade receivables | (151) | (117) |
Increase in trade payables | 8 | 23 |
Net change in other operating assets | (16) | 20 |
Net change in other operating liabilities | (154) | (18) |
Total | $ (431) | $ (276) |
Equity-based compensation (Deta
Equity-based compensation (Details) - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangements [Abstract] | ||
Unvested (in shares) | 5.6 | 5.4 |
Granted (in shares) | 1.8 | 1.8 |
Vested (in shares) | (2.1) | (1.1) |
Forfeited (in shares) | (0.1) | (0.2) |
Unvested (in shares) | 5.2 | 5.9 |
Legal proceedings update (Detai
Legal proceedings update (Details) $ in Millions | 90 Months Ended | |
Mar. 23, 2022 USD ($) | Jun. 30, 2022 complaint | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | ||
Number of complaints | complaint | 50 | |
Settlement loss | $ | $ 20 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 07, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Asset Acquisitions [Abstract] | ||||
Currently marketed products | $ 385 | $ 0 | ||
Acquired in-process research & development | 10 | 0 | ||
Other intangible assets (including software) | 12 | 0 | ||
Deferred tax assets | 57 | 0 | ||
Trade receivables | 10 | 0 | ||
Inventory | 16 | 0 | ||
Cash and cash equivalents | 4 | 0 | ||
Other assets | 6 | 0 | ||
Trade payables and other liabilities | (11) | 0 | ||
Net identifiable assets acquired | 489 | 0 | ||
Acquired liquidity | (4) | 0 | ||
Net assets recognized as a result of asset acquisitions | 485 | 0 | ||
Significant Transactions [Line Items] | ||||
Cash paid for the acquisition | $ 479 | 483 | $ 0 | |
Ivantis | ||||
Significant Transactions [Line Items] | ||||
Cash paid for the acquisition | $ 479 | $ 475 | ||
Percentage of outstanding shares acquired | 100% | |||
Forecast | Ivantis | ||||
Significant Transactions [Line Items] | ||||
Cash paid for the acquisition | $ 2 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jul. 08, 2022 | Jan. 07, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Cash paid for the acquisition | $ 479 | $ 483 | $ 0 | |
Major purchases of assets | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Cash paid for the acquisition | $ 60 |