Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-31269 |
Entity Registrant Name | Alcon Inc. |
Entity Incorporation, State or Country Code | V8 |
Entity Address, Address Line One | Rue Louis-d'Affry 6 |
Entity Address, Postal Zip Code | 1701 |
Entity Address, City or Town | Fribourg |
Entity Address, Country | CH |
Contact Personnel Fax Number | 41 58 911 32 22 |
Title of 12(b) Security | Ordinary Shares, nominal value CHF 0.04 per share |
Trading Symbol | ALC |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 488,262,870 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Document Period End Date | Dec. 31, 2019 |
Entity Central Index Key | 0001167379 |
Business Contact [member] | |
Document Information [Line Items] | |
Contact Personnel Name | Royce Bedward |
Entity Address, Address Line One | Chemin de Blandonnet 8 |
Entity Address, Postal Zip Code | 1214 |
Entity Address, Address Line Two | Vernier |
Entity Address, City or Town | Geneva |
Entity Address, Country | CH |
City Area Code | 58 |
Local Phone Number | 911 20 00 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Profit or loss [abstract] | ||||
Net sales to third parties | $ 7,362 | $ 7,149 | $ 6,785 | |
Sales to former parent | 0 | 4 | 4 | |
Other revenues | 146 | 0 | 3 | |
Net sales and other revenues | 7,508 | 7,153 | 6,792 | |
Cost of net sales | (3,719) | (3,961) | (3,588) | |
Cost of other revenues | (127) | 0 | 0 | |
Gross profit | 3,662 | 3,192 | 3,204 | |
Selling, general & administration | (2,847) | (2,801) | (2,596) | |
Research & development | (656) | (587) | (584) | |
Other income | 55 | 47 | 47 | |
Other expense | (401) | (99) | (148) | |
Operating (loss) | (187) | (248) | (77) | |
Interest expense | (113) | (24) | (27) | |
Other financial income & expense | (32) | (28) | (23) | |
(Loss) before taxes | (332) | (300) | (127) | |
Taxes | 324 | (73) | (383) | |
Net (loss)/income | [1] | $ (656) | $ (227) | $ 256 |
(Loss)/earnings per share | ||||
Basic earnings per share (in dollars per share) | $ (1.34) | $ (0.46) | $ 0.52 | |
Diluted earnings per share (in dollars per share) | $ (1.34) | $ (0.46) | $ 0.52 | |
Weighted average number of shares outstanding | ||||
Weighted average number of shares outstanding - Basic (in shares) | [2] | 488.2 | 488.2 | |
Weighted average number of shares outstanding - Diluted (in shares) | [2] | 488.2 | 488.2 | 488.2 |
[1] | "Former parent net investment" and "Equity" were previously presented as "Retained earnings" and "Invested capital", respectively, and were renamed upon the execution of the Spin-off. | |||
[2] | For periods prior to the Spin-off, the denominator for basic and diluted earnings per share was calculated using 488.2 million shares of common stock distributed in the Spin-off. |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (parenthetical) - shares shares in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | ||
Profit or loss [abstract] | ||||
Weighted average number of shares outstanding (in shares) | [1] | 488.2 | 488.2 | 488.2 |
[1] | For periods prior to the Spin-off, the denominator for basic and diluted earnings per share was calculated using 488.2 million shares of common stock distributed in the Spin-off. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of comprehensive income [abstract] | ||||
Net (loss)/income | [1] | $ (656) | $ (227) | $ 256 |
Other comprehensive income to be eventually recycled into the consolidated income statement: | ||||
Fair value adjustments on marketable securities, net of taxes | [2] | 0 | 0 | 21 |
Currency translation effects | (4) | (58) | 184 | |
Total of items to eventually recycle | (4) | (58) | 205 | |
Other comprehensive income never to be recycled into the consolidated income statement: | ||||
Actuarial (losses)/gains from defined benefit plans, net of taxes | [3] | (55) | 8 | 36 |
Fair value adjustments on equity securities, net of taxes | [4] | (2) | (23) | 0 |
Total of items never to be recycled | (57) | (15) | 36 | |
Total comprehensive (loss)/income | [1] | $ (717) | $ (300) | $ 497 |
[1] | "Former parent net investment" and "Equity" were previously presented as "Retained earnings" and "Invested capital", respectively, and were renamed upon the execution of the Spin-off. | |||
[2] | No taxes were recorded in 2019, 2018 and 2017. | |||
[3] | Amounts are net of tax benefit of $11 million in 2019 and net of tax expenses of $2 million and $26 million in 2018 and 2017, respectively. | |||
[4] | Amount is net of tax benefit of $5 million in 2019. No taxes were recorded in 2018 and 2017. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Fair value adjustments on marketable securities, tax expense (benefit) | $ 0 | $ 0 | $ 0 |
Actuarial (losses)/gains from defined benefit plans, tax expense (benefit) | (11,000,000) | 2,000,000 | 26,000,000 |
Fair value adjustments on equity securities, tax expense (benefit) | $ (5,000,000) | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS SFr in Millions, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Non-current assets | |||
Property, plant & equipment | [1],[2] | $ 3,113 | $ 2,800 |
Right-of-use assets | [1],[2] | 324 | 79 |
Goodwill | 8,905 | 8,899 | |
Intangible assets other than goodwill | 10,231 | 10,679 | |
Deferred tax assets | 354 | 670 | |
Financial assets | 307 | 388 | |
Other non-current assets | 185 | 148 | |
Total non-current assets | 23,419 | 23,663 | |
Current assets | |||
Inventories | 1,505 | 1,440 | |
Trade receivables | 1,390 | 1,253 | |
Receivables from former parent | 0 | 20 | |
Income tax receivables | 17 | 33 | |
Other financial receivables from former parent | 0 | 39 | |
Cash and cash equivalents | 822 | 227 | |
Other current assets | 502 | 387 | |
Total current assets | 4,236 | 3,399 | |
Total assets | 27,655 | 27,062 | |
Equity | |||
Invested capital | 0 | 22,639 | |
Share capital | 20 | 0 | |
Reserves | 19,283 | 0 | |
Total equity | [3] | 19,303 | 22,639 |
Non-current liabilities | |||
Financial debts | [1],[2] | 3,218 | 0 |
Lease liabilities | [1],[2] | 280 | 89 |
Deferred tax liabilities | 1,386 | 1,528 | |
Provisions and other non-current liabilities | 1,168 | 913 | |
Total non-current liabilities | 6,052 | 2,530 | |
Current liabilities | |||
Trade payables | 833 | 663 | |
Payables to former parent | 0 | 85 | |
Financial debts | 261 | 47 | |
Lease liabilities | 61 | 0 | |
Other financial liabilities to former parent | 0 | 67 | |
Current income tax liabilities | 107 | 151 | |
Provisions and other current liabilities | 1,038 | 880 | |
Total current liabilities | 2,300 | 1,893 | |
Total liabilities | 8,352 | 4,423 | |
Total equity and liabilities | $ 27,655 | $ 27,062 | |
[1] | Alcon adopted IFRS 16, Leases as of January 1, 2019 using the modified retrospective approach as described in Notes 3 and 16 to these Consolidated Financial Statements. Under the modified retrospective approach, comparative information was not restated. | ||
[2] | The December 31, 2018 balances previously reported for a finance lease liability and corresponding asset of $89 million and $79 million , respectively, have been reclassified from "Non-current financial debts" and "Property, Plant, & Equipment" to "Non-current lease liabilities" and "Right-of-use assets", respectively . | ||
[3] | "Former parent net investment" and "Equity" were previously presented as "Retained earnings" and "Invested capital", respectively, and were renamed upon the execution of the Spin-off. |
CONSOLIDATED BALANCE SHEETS (pa
CONSOLIDATED BALANCE SHEETS (parenthetical) $ in Millions | Dec. 31, 2018USD ($) | |
Statement [Line Items] | ||
Financial debts | $ 0 | [1],[2] |
Lease liabilities | 89 | [1],[2] |
Property, plant & equipment | 2,800 | [1],[2] |
Right-of-use assets | 79 | [1],[2] |
Previously stated [member] | ||
Statement [Line Items] | ||
Financial debts | 89 | |
Property, plant & equipment | $ 79 | |
[1] | Alcon adopted IFRS 16, Leases as of January 1, 2019 using the modified retrospective approach as described in Notes 3 and 16 to these Consolidated Financial Statements. Under the modified retrospective approach, comparative information was not restated. | |
[2] | The December 31, 2018 balances previously reported for a finance lease liability and corresponding asset of $89 million and $79 million , respectively, have been reclassified from "Non-current financial debts" and "Property, Plant, & Equipment" to "Non-current lease liabilities" and "Right-of-use assets", respectively . |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Share capital [member] | Other reserves [member] | Former parent net investment [member] | Fair value adjustments on marketable securities [member] | Fair value adjustments on equity securities [member] | Actuarial losses/gain from defined benefit plans [member] | Cumulative currency translation effects [member] | Total value adjustments [member] | [2] | |||
Beginning balance at Dec. 31, 2016 | $ 23,012 | [1] | $ 0 | $ 0 | $ 23,166 | [1] | $ 4 | $ 0 | $ (61) | $ (97) | $ (154) | ||
Net (loss)/income | [1] | 256 | 256 | ||||||||||
Other comprehensive (loss) | 241 | [1] | 21 | 36 | 184 | 241 | |||||||
Total comprehensive (loss)/income | 497 | [1] | 256 | [1] | 21 | 36 | 184 | 241 | |||||
Movements of financing provided to former parent, net | [1] | (424) | (424) | ||||||||||
Other transactions with former parent | [1] | (56) | (56) | ||||||||||
Total Other movements | [1] | (480) | (480) | ||||||||||
Ending balance (Previously stated [member]) at Dec. 31, 2017 | 23,029 | [1] | 0 | 0 | 22,942 | [1] | 25 | 0 | (25) | 87 | 87 | ||
Ending balance (Impact of change in accounting policies [member]) at Dec. 31, 2017 | [3] | 25 | [1] | (25) | (25) | ||||||||
Ending balance at Dec. 31, 2017 | 23,029 | [1] | 0 | 0 | 22,967 | [1] | 0 | 0 | (25) | 87 | 62 | ||
Net (loss)/income | [1] | (227) | (227) | ||||||||||
Other comprehensive (loss) | (73) | [1] | (23) | 8 | (58) | (73) | |||||||
Total comprehensive (loss)/income | (300) | [1] | (227) | [1] | (23) | 8 | (58) | (73) | |||||
Movements of financing provided to former parent, net | [1] | (119) | (119) | ||||||||||
Other transactions with former parent | [1] | 27 | 27 | ||||||||||
Other movements | [1],[4] | 2 | 2 | ||||||||||
Total Other movements | [1] | (90) | (90) | ||||||||||
Ending balance at Dec. 31, 2018 | 22,639 | [1] | 0 | 0 | 22,650 | [1] | 0 | (23) | (17) | 29 | (11) | ||
Net (loss)/income | (656) | [1] | (547) | (109) | [1] | ||||||||
Other comprehensive (loss) | (61) | [1] | (2) | (55) | (4) | (61) | |||||||
Total comprehensive (loss)/income | (717) | [1] | (547) | (109) | [1] | (2) | (55) | (4) | (61) | ||||
Movements of financing provided to former parent, net | [1] | (2,658) | (2,658) | ||||||||||
Other transactions with former parent | [1] | (46) | (46) | ||||||||||
Reclassification of deferred equity-compensation | [1] | (7) | (7) | ||||||||||
Distribution by former parent of share capital | 0 | [1] | 20 | 19,812 | (19,832) | [1] | |||||||
Equity-based compensation | 87 | [1] | 87 | ||||||||||
Other movements | [4] | 5 | [1] | 3 | 2 | [1] | |||||||
Total Other movements | (2,619) | [1] | 20 | 19,902 | (22,541) | [1] | |||||||
Ending balance at Dec. 31, 2019 | $ 19,303 | [1] | $ 20 | $ 19,355 | $ 0 | [1] | $ 0 | $ (25) | $ (72) | $ 25 | $ (72) | ||
[1] | "Former parent net investment" and "Equity" were previously presented as "Retained earnings" and "Invested capital", respectively, and were renamed upon the execution of the Spin-off. | ||||||||||||
[2] | "Total value adjustments" recorded through Comprehensive Income are presented net of the corresponding tax effects. | ||||||||||||
[3] | The impact of change in accounting policies includes $25 million relating to IFRS 9 implementation and nil | ||||||||||||
[4] | Activity relates to hyperinflationary accounting (see Note 3 to the Consolidated Financial Statements). |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (parenthetical) | Dec. 31, 2018USD ($) | |
Equity | $ 22,639,000,000 | [1] |
Increase (decrease) due to application of IFRS 9 [Member] | ||
Equity | 25,000,000 | |
Increase (decrease) due to application of IFRS 15 [member] | ||
Equity | $ 0 | |
[1] | "Former parent net investment" and "Equity" were previously presented as "Retained earnings" and "Invested capital", respectively, and were renamed upon the execution of the Spin-off. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of cash flows [abstract] | ||||
Net (loss)/income | [1] | $ (656) | $ (227) | $ 256 |
Adjustments to reconcile net (loss)/income to net cash flows from operating activities | ||||
Depreciation, amortization, impairments and fair value adjustments | 1,456 | 1,622 | 1,334 | |
Equity-based compensation expense | 83 | 0 | 0 | |
Non-cash change in provisions and other non-current liabilities | (4) | (10) | 75 | |
Losses on disposal and other adjustments on property, plant & equipment and other non-current assets, net | 5 | 4 | 41 | |
Interest expense | 113 | 24 | 27 | |
Other financial income & expense | 32 | 28 | 23 | |
Taxes | 324 | (73) | (383) | |
Interest received | 7 | 1 | 0 | |
Interest paid | (67) | (10) | (13) | |
Other financial payments | (18) | (29) | (22) | |
Taxes paid | (224) | (203) | (84) | |
Net cash flows before working capital changes and net payments out of provisions and other non-current liabilities | 1,051 | 1,127 | 1,254 | |
Net payments out of provisions and other cash movements in non-current liabilities | (83) | (67) | (72) | |
Change in net current assets and other operating cash flow items | (48) | 80 | 36 | |
Net cash flows from operating activities | 920 | 1,140 | 1,218 | |
Purchase of property, plant & equipment | (553) | (524) | (415) | |
Proceeds from sales of property, plant & equipment | 0 | 0 | 1 | |
Purchase of intangible assets | (123) | (188) | (81) | |
Purchase of financial assets | (59) | (57) | (114) | |
Proceeds from sales of financial assets | 8 | 7 | 2 | |
Purchase of other non-current assets | (1) | 0 | (2) | |
Acquisitions of businesses, net | (283) | (239) | (70) | |
Net cash flows used in investing activities | (1,011) | (1,001) | (679) | |
Movements of financing provided to former parent, net | (2,658) | (119) | (424) | |
Proceeds from non-current financial debts, net of issuance costs | 3,724 | 0 | 0 | |
Proceeds from Bridge Facility, net of issuance costs | 1,495 | 0 | 0 | |
Repayment of non-current financial debts | (509) | 0 | 0 | |
Repayment of Bridge Facility | (1,500) | 0 | 0 | |
Change in current financial debts | 202 | (6) | (111) | |
Lease payments | (52) | 0 | 0 | |
Change in other financial receivables from former parent | 39 | 26 | (24) | |
Change in other financial liabilities to former parent | (67) | 21 | 20 | |
Other financing cash flows | (15) | 0 | 0 | |
Net cash flows from/(used in) financing activities | 659 | (78) | (539) | |
Effect of exchange rate changes on cash and cash equivalents | 27 | (6) | 10 | |
Net change in cash and cash equivalents | 595 | 55 | 10 | |
Cash and cash equivalents at January 1 | 227 | 172 | 162 | |
Cash and cash equivalents at December 31 | $ 822 | $ 227 | $ 172 | |
[1] | "Former parent net investment" and "Equity" were previously presented as "Retained earnings" and "Invested capital", respectively, and were renamed upon the execution of the Spin-off. |
Description of business
Description of business | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Description of business | Description of business Alcon Inc. (the "Company") and the subsidiaries it controls (collectively "Alcon") is a leading eye care company globally. Alcon is a multinational company specializing in the research, development, manufacturing and marketing of a broad range of eye care products within two businesses: Surgical and Vision Care. Alcon is a stock corporation organized under the laws of Switzerland, domiciled in Fribourg, Switzerland, with global headquarters located in Geneva, Switzerland. On February 28, 2019, Novartis AG (“Novartis” or “Former Parent”) shareholders at their Annual General Meeting approved the proposed 100% spin-off of Alcon through the distribution of a dividend-in-kind of new Alcon shares to Novartis shareholders and Novartis American Depositary Receipt (“ADR”) holders (the “Spin-off”), subject to completion of certain conditions precedent to the distribution. Amendment No. 6 to the Company's Registration Statement on Form 20-F filed with the Securities and Exchange Commission ("SEC") on March 22, 2019, ("2018 Form 20-F"), was declared effective by the SEC on that same day. On April 9, 2019 (the “Distribution Date”), the Company became an independent, publicly-traded company as a result of the Spin-off and the shares of the Company are listed on the SIX Swiss Stock Exchange ("SIX") and on the New York Stock Exchange ("NYSE") under the symbol “ALC”. Each Novartis shareholder of record as of April 8, 2019 and each holder of Novartis’ ADR of record as of April 1, 2019 received one share of Alcon common stock for every five shares of Novartis common stock or Novartis ADR held. The Consolidated Financial Statements of Alcon are comprised of Consolidated Balance Sheets as of December 31, 2019 and 2018 and the Consolidated Income Statements, Consolidated Statements of Comprehensive (Loss)/Income, Consolidated Statements of Changes in Equity and Consolidated Statements of Cash Flows for the three years ended December 31, 2019 , 2018 and 2017 . The country of operation and percentage ownership of the legal entities with "Total assets" or "Net sales to third parties" in excess of $5 million included in the Consolidated Financial Statements are disclosed in Note 28 |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of preparation | Basis of preparation The accompanying Consolidated Financial Statements present our historical financial position, results of operations, comprehensive income/(loss), and cash flows in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), including the basis of preparation as described in this Note and with the accounting policies as described in Note 3 to these Consolidated Financial Statements. The preparation of Consolidated Financial Statements requires management to make certain estimates and assumptions, either at the balance sheet date or during the year that affect the reported amounts of assets and liabilities as well as revenues and expenses. Actual outcomes and results could differ from those estimates and assumptions. Relationship with Former Parent and affiliates prior to Spin-off The financial statements for periods prior to the Spin-off were prepared on a combined basis because the business of Alcon did not form a separate legal group until the Spin-off occurred. The information in the financial statements for periods prior to the Spin-off was derived from Novartis’ Consolidated Financial Statements and accounting records, which were prepared in accordance with IFRS. Through the date of the Spin-off, all revenues and expenses as well as assets and liabilities directly associated with Alcon have been included in the financial statements. For periods prior to the Spin-off, the financial statements also include allocations of certain expenses for services provided by Novartis to Alcon and allocations of related assets, liabilities, and the Former Parent’s invested capital, as applicable. The allocations were determined on a reasonable basis; however, the amounts are not necessarily representative of the amounts that would have been reflected in the financial statements had Alcon been an entity that operated independently of Novartis during the applicable periods. IFRS does not provide principles for the preparation of combined financial statements for carve-out financial statements, and accordingly in preparing the financial statements for periods prior to the Spin-off certain accounting and allocation conventions commonly used in practice for the preparation of carve-out financial statements were applied. The assets and liabilities included in the balance sheets prior to Spin-off were measured at the carrying amounts recorded in Novartis Group Consolidated Financial Statements. The financial statements for periods prior to the Spin-off include all Alcon subsidiaries and all Alcon business operated within Novartis Group subsidiaries over which Alcon has control, by applying the principles of IFRS 10, Consolidated Financial Statements . Alcon controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements for the periods prior to the Spin-off include the assets and liabilities within Novartis subsidiaries that were attributable to the Alcon business and excluded the assets and liabilities within Alcon subsidiaries not attributable to the Alcon business. In addition, the financial statements include, for the periods prior to the Spin-off, the assets, liabilities and results of operations of the ophthalmic over-the-counter products and a small portfolio of surgical diagnostics products that in connection with a Novartis Group business reorganization, effective as of January 1, 2018, were transferred to Alcon from the Innovative Medicines Division of Novartis. Certain Novartis manufacturing sites performed production services for both the Alcon and Innovative Medicines Divisions of Novartis Group ("multi-divisional manufacturing sites"). The financial statements, for periods prior to the Spin-off include the carrying value of the manufacturing sites where the majority of the production is attributable to Alcon and where such sites were transferred to Alcon in connection with the Spin-off. The inventory, sales and production costs of these multi-divisional manufacturing sites that were attributable to the products of the Alcon and Innovative Medicines Divisions of Novartis Group were accounted for and reported separately by the Alcon and Innovative Medicines Divisions of Novartis Group within Novartis Group accounting systems. The supply chains of the Alcon and Innovative Medicines Divisions of Novartis Group each managed separately the distribution of their respective products produced in these multi-divisional manufacturing sites. As a result, there was no requirement for inter-divisional trading arrangements between the Alcon and Innovative Medicines Divisions of Novartis Group for the products produced in these multi-divisional manufacturing sites. Manufacturing costs attributable to the Alcon business' products produced in these multi-divisional manufacturing sites were recognized in the financial statements for periods prior to the Spin-off at cost of production. For periods prior to the Spin-off, the financial statements include the attribution of certain assets and liabilities that were historically held at the Novartis corporate level that were specifically identifiable or attributable to Alcon on a standalone basis and were recognized on the pre-Spin-off balance sheets through retained earnings in invested capital. The most significant of which were defined benefit plans, current and deferred income taxes, financial debts, financial investments and the Alcon brand name. The Alcon brand name was used to market the products of Alcon and the products within Novartis Innovative Medicines Divisions' ophthalmology pharmaceutical business. The Novartis Group transferred the full rights to the Alcon brand name to Alcon in connection with the Spin-off. As a result, the carrying value of the Alcon brand name was fully attributed to Alcon in the financial statements. The income and expenses related to the hedging transactions prior to the Spin-off were allocated to Alcon based on the estimated currency exposure of Alcon and are recorded to Other financial income & expense in the income statements and recognized directly through retained earnings in Invested capital. The majority of Alcon's subsidiaries were party to Novartis cash pooling arrangements with several financial institutions to maximize the availability of cash for general operating and investing purposes. Under these cash pooling arrangements, cash balances were swept by Novartis regularly from Alcon's bank accounts. The net position with the Novartis cash pooling accounts at the end of each reporting period prior to the Spin-off are reflected in the balance sheet in Other financial receivables from former parent or Other financial liabilities to former parent. Financing transactions between Novartis and Alcon, except for receivables and payables against the Novartis cash pool described above, were excluded from the financial statements in the periods prior to the Spin-off, as none of the financing transactions were specifically related to the operation of Alcon's business. The exclusion of these financing transactions was recognized through retained earnings in Invested capital. Dividend and other equity transactions between Alcon and Novartis were recognized directly to retained earnings in Invested capital. Novartis third-party debt and the related interest expense were not allocated to Alcon when Alcon's subsidiaries were not the legal obligor of the debt and when Novartis borrowings were not directly attributable to Alcon's business. The financial statements for periods prior to the Spin-off include third-party debt and the related interest expense when Alcon's subsidiaries were the legal obligor of the debt and when the borrowings were directly attributable to Alcon's business. Refer to Note 17 to these Consolidated Financial Statements. Both before and after the Spin-off, Alcon's associates participate in defined benefit pension and other postretirement plans sponsored by Novartis; in some countries these are single employer plans dedicated to the Alcon business associates and in other countries these are plans where associates of Alcon and associates of the Novartis Group are participants. The net defined benefit and other postretirement plan liabilities and pension costs attributable to Alcon are included in the Consolidated Financial Statements for periods prior to and after the Spin-off, to the extent that the corresponding pension obligations and plan assets under those plans transferred to Alcon at the time of Spin-off or will subsequently transfer pursuant to the Employee Matters Agreement entered into with Novartis. Refer to Note 23 to these Consolidated Financial Statements for additional disclosure on post-employment benefits for associates. Income taxes attributable to the Alcon business in the financial statements were determined using the separate return approach, under which current and deferred income taxes are calculated as if a separate tax return had been prepared in each tax jurisdiction. In various tax jurisdictions, Alcon and Novartis businesses operated within the same legal entity and certain Alcon subsidiaries were part of a Novartis tax group. This required an assumption that the subsidiaries and operations of Alcon in those tax jurisdictions operated on a standalone basis and constitute separate taxable entities. Actual outcomes and results could differ from these separate tax return estimates, including those estimates and assumptions related to realization of tax benefits within these Novartis tax groups. Refer to Note 7 and Note 11 to these Consolidated Financial Statements for additional disclosures on income taxes. Alcon's Invested capital in the financial statements for the periods prior to Spin-off represents the excess of total assets over total liabilities and, in addition to the items described above, was impacted by the following: • Currency translation adjustments of the Novartis Group multi-divisional subsidiaries were allocated between Alcon and the Novartis retained businesses by applying allocation keys based on net assets of each respective business. • Other transactions with Novartis Group as shown on the Consolidated Statements of Changes in Equity represents the movements in Invested capital resulting from the preparation of the financial statements in accordance with the basis of preparation described in this Note. • Movements of financing provided to Novartis Group as shown on the Consolidated Statements of Changes in Equity and on the Consolidated Statements of Cash Flows primarily represent the net contributions from Alcon to Novartis Group. For the periods prior to the Spin-off, the financial statements include charges and allocation of expenses related to certain Novartis business support functions and Novartis corporate general and administration functions. Alcon considers the charges and allocation methodology and results to be reasonable. However, the charges and allocations may not be indicative of the actual expense that would have been incurred had Alcon operated as an independent, publicly traded company for the periods prior to the Spin-off. The following is a brief description of the nature of these charges and allocations: • Alcon received services from Novartis Business Services (“NBS”), the shared service organization of Novartis Group, across the following service domains: human resources operations, real estate and facility services, including site security and executive protection, procurement, information technology, commercial and medical support services and financial reporting and accounting operations. The financial statements include the appropriate costs related to the services rendered, without profit margin, in accordance with the historical arrangements that existed between Novartis and the Alcon business prior to the Spin-off. Refer to Note 25 to these Consolidated Financial Statements for additional disclosures. • Certain Novartis corporate general and administrative functions costs, in the areas of corporate governance, including board of directors, corporate responsibility and other corporate functions, such as tax, corporate governance and listed company compliance, investor relations, internal audit, treasury, communications functions and the net interest on the net defined benefit liability were not charged or allocated to the Alcon business in the past. The financial statements include a reasonable allocation of these Novartis corporate general and administrative functions costs and net interest on the net defined benefit liability, based on reasonable assumptions and estimates. The corporate general and administrative function costs allocations were based on the direct and indirect costs incurred to provide the respective services. When specific identification was not practicable, a proportional cost allocation method was used, primarily based on sales, or headcount. Management believes that the allocations reasonably approximate the corporate general and administrative functions costs Alcon may have incurred had it operated as a standalone company. However, the allocations may not be indicative of the actual expense that would have been incurred had Alcon operated on a standalone basis prior to the Spin-off. Refer to Note 25 to these Consolidated Financial Statements for additional disclosures. Management believes that all allocations were performed on a reasonable basis and reflect the services received by Alcon, the costs incurred on behalf of Alcon and the assets and liabilities of Alcon. Although the financial statements for the periods prior to the Spin-off reflect management's best estimate of all historical costs related to Alcon, this may not necessarily reflect what the results of operations, financial position, or cash flows would have been had Alcon been a separate entity prior to the Spin-off. Agreements entered into between Alcon and Novartis in connection with the Spin-off govern the relationship between the parties following the Spin-off and provide for the allocation of various assets, liabilities, rights and obligations. These agreements also include arrangements for transition services to be provided on a temporary basis between the parties. Following the Spin-off, the Consolidated Financial Statements include the accounts of Alcon and no longer include any allocations from Novartis. |
Selected accounting policies
Selected accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Selected accounting policies | Selected accounting policies Principles of consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. In the event that the Company has an interest in another entity that is not wholly owned, the assets, liabilities, results of operations and cash flows of such entity are included in the Company's Consolidated Financial Statements, if the Company is exposed or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Consolidated Financial Statements of the Company are prepared in accordance with IFRS as issued by the IASB. They are prepared in accordance with the historical cost convention except for items that are required to be accounted for at fair value. All intercompany transactions and accounts within Alcon were eliminated. The Company's financial year-end is December 31 , which is also the annual closing date of the individual entities' financial statements incorporated into the Consolidated Financial Statements. Foreign currencies The Consolidated Financial Statements are presented in US dollars ("USD"). The functional currency of individual entities incorporated into the Consolidated Financial Statements are generally the local currency of the respective entity. The functional currency used for the reporting of certain Swiss entities is USD instead of their respective local currencies. This reflects the fact that the cash flows and transactions of these entities are primarily denominated in these currencies. For entities not operating in hyperinflationary economies, the entities results, financial position and cash flows that do not have USD as their functional currency are translated into USD using the following exchange rates: • Income, expense and cash flows using for each month the average exchange rate with the USD values for each month being aggregated during the year. • Balance sheets using year-end exchange rates. • Resulting exchange rate differences are recognized in other comprehensive income. The hyperinflationary economies in which Alcon operates are Argentina and Venezuela. Venezuela was hyperinflationary for all years presented, and Argentina became hyperinflationary effective July 1, 2018, requiring retroactive implementation of hyperinflation accounting as of January 1, 2018. The impact of the restatement of the non-monetary assets and liabilities with the general price index at the beginning of the period is recorded in "Other Reserves" in equity. The subsequent gains or losses resulting from the restatement of non-monetary assets are recorded in "Other financial income & expense" in the consolidated income statements. Acquisition of assets Acquired assets are initially recognized on the balance sheet at cost if they meet the criteria for capitalization. The capitalized cost of the asset includes the purchase price and any directly attributable costs for bringing the asset into the condition to operate as intended. Expected costs for obligations to dismantle and remove property, plant and equipment when it is no longer used are included in their cost. Property, plant and equipment Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. Freehold land is not depreciated. The related depreciation expense is included in the costs of the functions using the asset or "Cost of net sales" in the consolidated income statements. Property, plant and equipment are assessed for impairment whenever there is an indication that the balance sheet carrying amount may not be recoverable using cash flow projections for the useful life. The following table shows the respective useful lives for property, plant and equipment: Useful life Buildings 20 to 40 years Machinery and other equipment Machinery and equipment 7 to 20 years Furniture and vehicles 5 to 10 years Computer hardware 3 to 7 years Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary may include: • fair values of the assets transferred; • liabilities incurred to the former owners of the acquired business; • equity interests issued by the Company; • fair value of an asset or liability resulting from a contingent consideration arrangement; and • fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the net identifiable assets acquired is recorded as goodwill, or directly in the income statement if it is a bargain purchase. Alcon primarily uses net present value techniques, utilizing post-tax cash flows and discount rates in calculating the fair value of net identifiable assets acquired when allocating the purchase consideration paid for the acquisition. The estimates in calculating fair values are highly sensitive and depend on assumptions, which includes the amount and timing of projected cash flows, long-term sales forecasts, the timing and probability of regulatory and commercial success, and the appropriate discount rate. Acquisition related costs are expensed as incurred. Goodwill and intangible assets The annual impairment testing date is Alcon's financial year-end, December 31. Goodwill Goodwill arises in a business combination and is the excess of the consideration transferred to acquire a business over the underlying fair value of the net identified assets acquired. It is allocated to groups of cash generating units ("CGUs") which are usually represented by the reported segments. Goodwill is tested for impairment annually at the level of these groups of CGUs, and any impairment charges are recorded under "Other expense" in the consolidated income statements. Intangible assets available for use Alcon has the following classes of available-for-use intangible assets: Currently marketed products, Marketing know-how, Technologies, Other intangible assets (including computer software) and the Alcon brand name. Currently marketed products represent the composite value of acquired intellectual property, patents, and distribution rights and product trade names. Marketing know-how represents the value attributable to the expertise acquired for marketing and distributing Alcon surgical products. Technologies represent identified and separable acquired know-how used in the research, development and production processes. Significant investments in internally developed and acquired software are capitalized and included in the "Other" category and amortized once available for use. The Alcon brand name is shown separately as it is the only Alcon intangible asset that is available for use with an indefinite useful life. Alcon considers it appropriate that the brand name has an indefinite life since the branded products have a history of strong revenue and cash flow performance, and Alcon has the intent and ability to support the brand with spending to maintain its value for the foreseeable future. Except for the Alcon brand name, intangible assets available for use are amortized over their estimated useful lives on a straight-line basis and evaluated for potential impairment whenever facts and circumstances indicate that their carrying value may not be recoverable. The Alcon brand name is not amortized, but evaluated for potential impairment annually. The following table shows the respective useful lives for available-for-use intangible assets and the location in the consolidated income statements in which the respective amortization and any potential impairment charge is recognized: Useful life Income statement location for amortization and impairment charges Currently marketed products 5 to 20 years "Cost of net sales" Marketing know-how 25 years "Cost of net sales" Technologies 10 to 20 years "Cost of net sales" or "Research and Development" Other (including software) 3 to 10 years In the respective functional expense Alcon brand name Not amortized, indefinite useful life "Other expense" From July 1, 2019, the useful life of Alcon's new SAP ERP software was extended from 7 years to 10 years on a prospective basis based on Alcon's multi-year transformation program which centers on one ERP platform across the organization. This change in estimate resulted in a $5 million reduction in amortization expense during the six months ended December 31, 2019 and will reduce amortization expense up to $10 million per year during the remaining useful life of the SAP ERP software assets placed in service at the time of the change. The corresponding "Intangible assets available for use" portion of the accounting policy was updated to reflect that the useful life for Other intangible assets (including software) was extended from 3 to 7 years to 3 to 10 years . Acquired In-Process Research & Development ("IPR&D") Acquired research and development intangible assets, which are still under development and have accordingly not yet obtained marketing approval, are recognized as IPR&D. IPR&D is not amortized, but evaluated for potential impairment on an annual basis or when facts and circumstances warrant. IPR&D is considered impaired when its balance sheet carrying amount exceeds its estimated recoverable amount, which is defined as the higher of its fair value less costs of disposal ("FVLCOD") and its value in use ("VIU"). Usually, Alcon applies the FVLCOD method for its impairment assessments. Under this approach when evaluating IPR&D for potential impairment, FVLCOD is estimated using net present value techniques utilizing post-tax cash flows and discount rates as there are no direct or indirect observable prices in active markets for identical or similar assets. The estimates used in calculating the net present values are highly sensitive and depend on assumptions, including amount and timing of projected future cash flows, long-term sales forecasts, discount rate, and the timing and probability of regulatory and commercial success. In the limited cases where the VIU method would be applied, net present value techniques would be applied using pre-tax cash flows and discount rates. Any impairment charge is recorded in the consolidated income statements under "Research & development". Once a project included in IPR&D has been successfully developed it is transferred to the "Currently marketed products" category. Impairment of goodwill, Alcon brand name and definite lived intangible assets An asset is considered impaired when its balance sheet carrying amount exceeds its estimated recoverable amount, which is defined as the higher of its FVLCOD and its VIU. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset shall be reduced to its recoverable amount. That reduction is an impairment loss. Usually, Alcon applies the FVLCOD method for its impairment assessment. In most cases no direct or indirect observable market prices for identical or similar assets are available to measure the fair value less costs of disposal. Therefore, an estimate of FVLCOD is based on net present value techniques utilizing post-tax cash flows and discount rates. In the limited cases where the VIU method would be applied, net present value techniques would be applied using pre-tax cash flows and discount rates. FVLCOD reflects estimates of assumptions that market participants would be expected to use when pricing the asset or CGUs, and for this purpose management considers the range of economic conditions that are expected to exist over the remaining useful life of the asset. The estimates used in calculating the net present values are highly sensitive and depend on assumptions, which includes the following: • Amount and timing of projected future cash flows; • Long-term sales forecasts for periods of up to 25 years including sales growth rates; • Royalty rate for the Alcon brand name; • Terminal growth rate; and • Discount rate. Other assumptions used in the net present values calculation include: • Future tax rate; • Actions of competitors (launch of competing products, marketing initiatives, etc.); and • Outcome of R&D activities and forecast of related costs (future product developments). Generally, for intangible assets with a definite useful life Alcon uses cash flow projections for the whole useful life of these assets. For goodwill and the Alcon brand name, Alcon generally utilizes cash flow projections for a five -year period based on management forecasts, with a terminal value based on cash flow projections considering the long-term expected inflation rates and impact of demographic trends of the population to which Alcon products are prescribed, for later periods. Probability-weighted scenarios are typically used. Discount rates used consider Alcon estimated weighted average cost of capital adjusted for specific country and currency risks associated with cash flow projections to approximate the weighted average cost of capital of a comparable market participant. Actual cash flows and values could vary significantly from forecasted future cash flows and related values derived using discounting techniques. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, and other short-term and highly liquid investments with original or weighted-average maturities of three months or less which are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are usually presented within current financial debts on the consolidated balance sheets except in cases where a right of offset has been agreed with a bank which then allows for presentation on a net basis. Financial assets Non-current financial assets such as loans and long-term receivables from customers, primarily related to surgical equipment sales arrangements, advances and other deposits, are carried at amortized cost, which reflects the time value of money, less any allowances for uncollectable amounts. Alcon assesses on a forward-looking basis the expected credit losses associated with its non-current financial assets valued at amortized cost. For loans, advances and other deposits valued at amortized costs, impairments, which are based on their expected credit losses, and exchange rate losses are included in "Other expense" in the consolidated income statements and exchange rate gains and interest income, using the effective interest rate method, are included in "Other income" in the consolidated income statements. For long-term receivables from customers, provisions for uncollectable amounts, which are based on their expected credit losses, are recorded as marketing and selling costs recognized in the consolidated income statements within "Selling, general & administration" expenses. Fund investments are valued at fair value through profit and loss ("FVPL"). Unrealized gains and losses, including exchange gains and losses, are recognized in the consolidated income statements in "Other income" for gains and "Other expense" for losses. Equity securities and convertible notes receivable held as strategic investments are generally designated at the date of acquisition as financial assets valued at fair value through other comprehensive income with no subsequent recycling through profit and loss. Unrealized gains and losses, including exchange gains and losses, are recorded as a fair value adjustment in the consolidated statements of comprehensive income. They are reclassified to "Other Reserves" when the equity security is sold. If these equity securities and convertible notes receivable are not designated at the date of acquisition as financial assets valued at fair value through other comprehensive income, they are valued at FVPL, as described above for fund investments. Changes in fair value of options to acquire development stage companies are charged to research and development expense. Derivative financial instruments are initially recognized in the consolidated balance sheets at fair value and are remeasured to their current fair value at the end of each subsequent reporting period. The valuation of forward exchange rate contracts and foreign exchange swaps are based on the discounted cash flow model, using interest curves and spot rates at the reporting date as observable inputs. Unsettled forward contracts and swaps are measured at fair value at quarter-end with changes in fair value recorded to the consolidated income statements as unrealized gains or losses in "Other financial income & expense". Settled forward contracts and swaps are measured at maturity date at fair value with corresponding realized gains or losses recognized in the consolidated income statements in "Other financial income & expense". No hedge accounting is applied for these arrangements. Inventories Inventory is valued at acquisition or production cost determined on a first-in, first-out basis. This value is used for the "Cost of net sales" and "Cost of other revenues" in the consolidated income statements. Unsalable inventory is fully written off in the consolidated income statements under "Cost of net sales" and "Cost of other revenues." Trade receivables Trade receivables are initially recognized at their invoiced amounts, including any related sales taxes less adjustments for estimated revenue deductions such as chargebacks and cash discounts. Provisions for expected credit losses are established using an expected credit loss model ("ECL"). The provisions are based on a forward-looking ECL, which includes possible default events on the trade receivables over the entire holding period of the trade receivable. These provisions represent the difference between the trade receivable's carrying amount in the consolidated balance sheets and the estimated net collectible amount. Charges for doubtful trade receivables are recorded as marketing and selling costs recognized in the consolidated income statements within "Selling, general & administration" expenses. Leases From January 1, 2019, with the implementation of the new standard IFRS 16, Leases , Alcon's accounting policy for leases is as follows: As lessee, Alcon assesses whether a contract contains a lease at inception of a contract based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Alcon recognizes a right-of-use asset and a corresponding lease liability for all arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases for which Alcon has elected the recognition exemptions allowed under IFRS 16. Right-of-use assets Right-of-use assets are initially recognized at cost, which is comprised of the amount of the initial measurement of the corresponding lease liabilities, adjusted for any lease payments made at or prior to the commencement date of the lease, lease incentives received and initial direct costs incurred, as well as any expected costs for obligations to dismantle and remove right-of-use assets when they are no longer used. Right-of-use assets are depreciated on a straight-line basis over the shorter of the useful life of the right-of-use asset or the end of the lease term. Right-of-use assets are assessed for impairment whenever there is an indication that the balance sheet carrying amount may not be recoverable using cash flow projections for the useful life. Lease liabilities Lease liabilities are accounted for at amortized cost and are initially measured at the present value of future lease payments and are classified as current or non-current based on the due dates of the underlying principal payments. In determining the lease term, Alcon evaluates the renewal options and termination options reasonably certain to be exercised. Lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, the incremental borrowing rate Alcon would be expected to pay within the respective markets, on a borrowing with a similar term and security. Interest in the period is recorded within "Interest expense" in Alcon's consolidated income statements. Lease liabilities are remeasured for changes in estimated lease term, future lease payments arising from a change in an index or rate, amounts expected to be payable under a residual value guarantee, or in assessment of whether Alcon will exercise a purchase, extension or termination option. Changes to initial lease contract terms are assessed to determine their impact on the scope of lease, and any modifications increasing the scope of the lease are treated as new contracts under the initial measurement principles, while modifications that do not increase or that decrease the scope of the lease result in an adjustment to the right-of-use asset which is remeasured as of the date of the modification. Principal payments made on lease liabilities and any initial direct costs paid are classified as financing cash outflows, while interest payments are classified as operating cash outflows. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the consolidated income statements and are classified as cash flows from operating activities. Short-term leases are leases with a lease term of twelve months in duration or less. Prior to the adoption of IFRS 16 on January 1, 2019, Alcon's accounting policy for leases was as follows: As lessee, Alcon classified leases of property, plant & equipment where Alcon had substantially all the risks and rewards of ownership as finance leases. Finance leases were capitalized at the lease's inception at the fair value of the leased asset or, if lower, the present value of the minimum lease payments. The corresponding lease liabilities, net of finance charges, were classified as current and non-current based on the due dates of the underlying principal payments. Each lease payment was allocated between the liability and interest expense. The interest expense was charged to Alcon's consolidated income statements over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The asset acquired under the finance lease was depreciated over the shorter of the asset’s useful life and the lease term. Alcon classified leases in which a significant portion of the risks and rewards of ownership were not transferred to Alcon as operating leases. Payments made under operating leases (net of any incentives received from the lessor) were recognized in the consolidated income statements on a straight-line basis over the period of the lease. Refer to the "Impact of adopting significant new IFRS standards in 2019" section in this Note and Note 16 for additional details on the impact of adoption. Legal liabilities Alcon and its subsidiaries are subject to contingencies arising in the ordinary course of business such as patent litigation and other product-related litigation, commercial litigation, and governmental investigations and proceedings. Provisions are recorded where a reliable estimate can be made of the probable outcome of legal or other disputes against the subsidiary. Contingent consideration In a business combination, it is necessary to recognize contingent future payments to previous owners representing contractually defined potential amounts as a liability. Usually for Alcon, these are linked to milestone or royalty payments related to certain assets and are recognized as a financial liability at their fair value, which is then re-measured at each subsequent reporting date. For the determination of the fair value of a contingent consideration various unobservable inputs are used. A change in these inputs might result in a significantly higher or lower fair value measurement. The inputs used are, among others, the timing and probability of regulatory and commercial success, sales forecast and assumptions regarding the discount rate, timing and different scenarios of triggering events. The significance and usage of these inputs to each contingent consideration may vary due to differences in the timing and triggering events for payments or in the nature of the asset related to the contingent consideration. These estimations typically depend on factors such as technical milestones or market performance and are adjusted for the probability of their likelihood of payment, and if material, appropriately discounted to reflect the impact of time. Changes in the fair value of contingent consideration liabilities in subsequent periods are recognized in the consolidated income statements in "Cost of net sales" for currently marketed products and in "Research & development" for IPR&D. The effect of unwinding the discount over time is recognized in "Interest expense" in the consolidated income statements. Defined benefit pension plans and other post-employment benefits The liability or asset recognized in the balance sheet in respect of defined benefit pension plans and other post-employment benefits is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation. In countries where there is no sufficient market for such bonds, the market rates on government bonds are used. The current service cost for such post-employment benefit plans is included in the personnel expenses of the various functions where the associates are employed. The net interest on the net defined benefit liability is recognized as "Other expense" or "Other income". The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income/(loss). Defined contribution plans For defined contribution plans, Alcon contributes to publicly or privately administered plans. Alcon has no further payment obligations once the contributions have been paid. The contributions are included in the personnel expenses of the various functions where the associates are employed. Financial debts Financial debts are initially recognized at fair value, net of transaction costs incurred. Financial debts are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs and discounts) and the redemption amount is recognized in the consolidated income statements over the period of the financial debts using the effective interest method. Fees paid on the establishment of credit facilities are recognized as transaction costs of the financial debt to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates, and is recognized in "Other financial income & expense" in the consolidated income statements. Financial debts are derecognized from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial debt that has been extinguished and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in "Other financial income & expense" in the consolidated income statements. Interest paid on financial debts is classified as operating activities in the consolidated statements of cash flows. Financial debts are classified as current liabilities unless Alcon has an unconditional right and intent to defer the settlement of the liability for at least twelve months after the reporting period. Revenue Net sales to third parties Revenue on the sale of Alcon products and services, which is recorded as "Net sales to third parties" in the consolidated income statements, is recognized when a contractual promise to a customer (performance obligation) has been fulfilled by transferring control over the promised goods and services to the customer, substantially all of which is at the point in time of shipment to or receipt of the products by the customer or when the services are performed. If contracts contain customer acceptance provisions, revenue would be recognized upon the satisfaction of acceptance criteria. The amount of revenue to be recognized is based on the consideration Alcon expects to receive in exchange for its goods and services. If a contract contains more than one performance obligation, the consideration is allocated based on the relative standalone selling price of each performance obligation. Surgical equipment may be sold together with other products and services under a single contract and may be structured as an outright cash sale, an installment sale, or lease. Surgical equipment installment sales and leases have a fixed payment amount which the customer may pay either in fixed intervals or as the customer purchases consumables and/or implantables. Revenues are recognized upon satisfaction of each of the performance obligations in the contract and the consideration is allocated based on the relative standalone selling price of each performance obligation. • Surgical equipment revenue from outright cash sales and installment sales arrangements is recognized at the point in time when control is transferred to the customer. Current portion of long-term receivables from customers and long-term receivables from customers for installment sales arrangements are recorded in "Other current assets" (see "Current portion of long-term receivables from customers" in Note 15 of these Consolidated Financial Statements) and "Financial assets" (see "Long-term receivables from customers" in Note 12 of these Consolidated Financial Statements), respectively. Financing income for installment sales arrangements longer than twelve months is recognized over the term of the arrangement in "Other Income". Alcon applies the practical expedient under IFRS 15 to installment sales arrangements that are twelve months or less in duration. • In addition to cash and installment sales, revenue is recognized under finance and operating lease arrangements. Leases in which Alcon transfers substantially all the risks and rewards incidental to ownership to the customer are treated as finance lease arrangements. Revenue from finance lease arrangements is recognized at amounts equal to the fair value of the equipment, which approximates the present value of the minimum lease payments under the arrangements. As interest rates embedded in lease arrangements are approximately market rates, revenue under finance lease arrangements is comparable to revenue for outright sales. Finance income for arrangements longer than twelve months is deferred and subsequently recognized based on a pattern that approximates the use of the effective interest method and recorded in "Other income". Operating lease revenue for equipment rentals is recognized on a straight-line basis over the lease term in "Net sales to third parties". The consideration Alcon receives in exchange for its goods or services may be fixed or variable. Variable consideration is only recognized when it is highly probable that a significant reversal of cumulative sales will not occur. The most common elements of variable consideration are listed below: • Rebates and discounts granted to government agencies, wholesalers, retail pharmacies and other customers are provisioned and recorded as a deduction from revenue at the time the related revenues are recorded or when the incentives are offered. They are calculated on |
Significant transactions
Significant transactions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations1 [Abstract] | |
Significant transactions | Significant transactions Significant transactions in 2019 Refinancing of Bridge Facility and Facility A financial debts On September 23, 2019, Alcon through its wholly-owned subsidiary, Alcon Finance Corporation ("AFC"), refinanced $2 billion of the bridge and term loans, which had been issued in April 2019, with $500 million of 2.750% senior notes due 2026, $1 billion of 3.000% senior notes due 2029, and $500 million of 3.800% senior notes due 2049. The bridge and term loans, notes, and refinancing are described in Note 17 of these Consolidated Financial Statements. Completion of Spin-off from Novartis through a dividend in kind distribution to Novartis shareholders The Spin-off was executed on April 9, 2019 as described in Note 1 . The below transactions occurred in April 2019, immediately preceding the Spin-off. On April 2, 2019, Alcon borrowed $3.2 billion against the bridge and other term loans which were executed on March 6, 2019 and are described in Note 17 of these Consolidated Financial Statements. These borrowings increased the Company's third party financial debts to $3.5 billion at the date of Spin-off. Through a series of intercompany transactions, Alcon then paid approximately $3.1 billion in cash to Novartis and its affiliates prior to the Spin-off, decreasing Alcon's net assets to approximately $20.0 billion at the date of Spin-off. Surgical-Acquisition of PowerVision, Inc. On March 13, 2019, Alcon acquired 100% of the outstanding shares and equity of PowerVision, Inc. ("PowerVision"), a privately-held, US-based company focused on developing accommodative, implantable intraocular lenses. This technology allows the intraocular lens to respond to natural muscular movements in the eye to alter shape and focus. The PowerVision acquisition was executed as part of Alcon's commitment to innovation in advanced technology intraocular lenses ("AT-IOLs"). The fair value of the total purchase consideration was $424 million . This amount consisted of an initial cash payment of $289 million and the fair value of the probability weighted contingent consideration of $135 million due to PowerVision shareholders, which they are eligible to receive upon the achievement of specified regulatory and commercialization milestones. The purchase price allocation resulted in net identifiable assets of $418 million , which consisted of in-process research & development intangible assets of $505 million , a net deferred tax liability of $93 million , and other net assets of $6 million . Goodwill of $6 million was also recognized which is attributable to the assembled workforce. Cash paid for the acquisition, net of cash acquired, was $283 million . The 2019 results of operations since the date of acquisition and transaction costs for the acquisition were not material. Significant transactions in 2018 Surgical-Acquisition of TrueVision Systems, Inc. On December 19, 2018, Alcon acquired 100% of the outstanding shares and equity of TrueVision Systems, Inc. ("TrueVision"), a privately held US-based company. TrueVision developed the 3D scope technology currently used in the commercially marketed Alcon product NGENUITY . This technology allows retina surgery specialists to have a 3D visualization of the back of the eye with greater depth and detail than traditional microscopes. The fair value of the total purchase consideration was $146 million . This amount consists of an initial cash payment of $110 million and the fair value of the probability weighted contingent consideration of $36 million due to TrueVision shareholders, which they are eligible to receive upon the achievement of specified development and commercialization milestones. The purchase price allocation resulted in net identifiable assets of $144 million , which consisted of intangible assets of $172 million , net deferred tax liability of $29 million and other net assets of $1 million . Goodwill of $2 million was also recognized which is attributable to the assembled workforce. The 2018 results of operations following the date of acquisition were not material. Vision Care-Acquisition of Tear Film Innovations, Inc. On December 17, 2018, Alcon acquired 100% of the outstanding shares and equity of Tear Film Innovations, Inc. ("Tear Film"), a privately held US-based company. Tear Film is the manufacturer of the iLux device, an innovative therapeutic device used to treat Meibomian Gland Dysfunction, a leading cause of dry eye. The fair value of the total purchase consideration was $145 million . This amount consists of an initial cash payment of $79 million and the fair value of the probability weighted contingent consideration of $66 million due to Tear Film previous owners, which they are eligible to receive upon the achievement of specified development and commercialization milestones. The purchase price allocation resulted in net identifiable assets of $143 million , which consisted of intangible assets of $174 million , net deferred tax liability of $37 million , cash of $5 million and other net assets of $1 million . Goodwill of $2 million was also recognized which is attributable to the assembled workforce. The 2018 results of operations following the date of acquisition were not material. Significant transactions in 2017 Surgical-Acquisition of ClarVista Medical, Inc. On September 20, 2017, Alcon acquired 100% of the outstanding shares and equity of ClarVista Medical, Inc., a privately held California, US-based company focused on developing the HARMONI Modular IOL System, a novel intraocular lens ("IOL") used to restore vision after cataract surgery. The fair value of the total purchase consideration was $125 million . This amount consists of an initial cash payment of $71 million and the net present value of the contingent consideration of $54 million due to ClarVista shareholders, which they are eligible to receive upon the achievement of specified development and commercialization milestones. The purchase price allocation resulted in net identifiable assets of $123 million , which consisted of intangible assets of $178 million , deferred tax assets of $8 million , cash and cash equivalents of $1 million and deferred tax liabilities of $64 million . Goodwill of $2 million was also recognized which is attributable to the assembled workforce. The 2017 results of operations since the date of acquisition were not material. Acquisitions of businesses Fair value of assets and liabilities arising from acquisitions ($ millions) 2019 2018 2017 Property, plant & equipment 1 1 — Currently marketed products — 346 — Acquired research & development 505 — 178 Deferred tax assets 28 12 8 Inventories — 3 — Trade receivables and other current assets — 2 — Cash and cash equivalents 6 5 1 Deferred tax liabilities (121 ) (78 ) (64 ) Trade payables and other liabilities (1 ) (4 ) — Net identifiable assets acquired 418 287 123 Acquired liquidity (6 ) (5 ) (1 ) Goodwill 6 4 2 Net assets recognized as a result of business combinations 418 286 124 Note 4 of these Consolidated Financial Statements details significant acquisitions of businesses, which were PowerVision in 2019 , TrueVision and Tear Film in 2018 and ClarVista in 2017 . No goodwill from 2019 , 2018 or 2017 is tax-deductible. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
Segment information | Segment information The segment information disclosed in these Consolidated Financial Statements reflects historical results consistent with the identifiable reporting 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 reporting segments, Surgical and Vision Care. As indicated below, certain income and expenses are not allocated to segments. Reporting segments are presented in a manner consistent with the internal reporting to the CODM. The reporting 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 reporting 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, 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 described in Note 2 , and the selected accounting policies mentioned in Note 3 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 costs for acquired product rights or other intangibles, general and administrative expenses for corporate activities, and certain other income and expense items. General & administration (corporate) includes the costs of the Alcon corporate headquarters, including all related corporate function costs. For the historical comparative period only, the related corporate function costs were allocated to Alcon from its Former Parent. Other expense, net of other income, includes other items of income and expense such as spin readiness and separation costs, transformation program costs, restructuring costs and legal settlements that are not attributable to a specific segment. Segmentation - Consolidated income statements Surgical Vision Care Company ($ millions) 2019 2018 2019 2018 2019 2018 Net sales to third parties 4,174 3,999 3,188 3,150 7,362 7,149 Sales to former parent — 2 — 2 — 4 Other revenues — — 146 — 146 — Net sales and other revenues 4,174 4,001 3,334 3,152 7,508 7,153 Segment contribution (1) 923 813 563 594 1,486 1,407 Amortization of intangible assets (1,084 ) (1,019 ) Impairment charges on intangible assets — (378 ) General & administration (corporate) (243 ) (206 ) Other (expense)/income, net (346 ) (52 ) Operating (loss) (187 ) (248 ) Interest expense (113 ) (24 ) Other financial income & expense (32 ) (28 ) (Loss) before taxes (332 ) (300 ) Included in segment contribution are : Surgical Vision Care Not allocated Total ($ millions) 2019 2018 2019 2018 2019 2018 2019 2018 Depreciation of property, plant & equipment (112 ) (114 ) (155 ) (125 ) — — (267 ) (239 ) Depreciation of right-of-use assets (42 ) — (24 ) — — — (66 ) — Impairment charges on property, plant & equipment, net (3 ) (1 ) (5 ) (1 ) — — (8 ) (2 ) Equity-based compensation (2) (55 ) (45 ) (44 ) (36 ) (15 ) (12 ) (114 ) (93 ) (1) The segment contribution corresponds to Net sales and Other revenues less Cost of net sales, Cost of other revenues, Selling, general & administration and Research & development attributable to segments, excluding amortization and impairments on intangible assets. (2) Equity-based compensation not allocated to segments in 2018 reflects an estimate of the allocation for corporate functions in the historical period based on 2019 actual percentages. Surgical Vision Care Company ($ millions) 2018 2017 2018 2017 2018 2017 Net sales to third parties 3,999 3,733 3,150 3,052 7,149 6,785 Sales to former parent 2 3 2 1 4 4 Other revenues — — — 3 — 3 Net sales and other revenues 4,001 3,736 3,152 3,056 7,153 6,792 Segment contribution (1) 813 691 594 625 1,407 1,316 Amortization of intangible assets (1,019 ) (1,033 ) Impairment charges on intangible assets (378 ) (57 ) General & administration (corporate) (206 ) (202 ) Other (expense)/income, net (52 ) (101 ) Operating (loss) (248 ) (77 ) Interest expense (24 ) (27 ) Other financial income and expense (28 ) (23 ) (Loss) before taxes (300 ) (127 ) Included in segment contribution are: Surgical Vision Care Not allocated Company ($ millions) 2018 2017 2018 2017 2018 2017 2018 2017 Depreciation of property, plant & equipment (114 ) (106 ) (125 ) (109 ) — — (239 ) (215 ) Impairment charges on property, plant & equipment, net (1 ) — (1 ) — — — (2 ) — Equity-based compensation (2) (45 ) (34 ) (36 ) (27 ) (12 ) (10 ) (93 ) (71 ) (1) The segment contribution corresponds to Net sales and Other revenues less Cost of net sales, Cost of other revenues, Selling, general & administration and Research & development attributable to segments, excluding amortization and impairments on intangible assets. (2) Equity-based compensation not allocated to segments in 2018 and 2017 reflects an estimate of the allocation for corporate functions in the historical periods based on 2019 actual percentages. Segmentation - Additional balance sheet disclosure Surgical Vision Care Not allocated (1) Total ($ millions) 2019 2018 2019 2018 2019 2018 2019 2018 Goodwill 4,544 4,538 4,361 4,361 — — 8,905 8,899 Intangible assets other than goodwill 5,770 6,053 1,481 1,646 2,980 2,980 10,231 10,679 (1) Alcon brand name. Net sales by segment ($ millions) 2019 2018 2017 Surgical Implantables 1,210 1,136 1,045 Consumables 2,304 2,227 2,104 Equipment/other 660 636 584 Total Surgical 4,174 3,999 3,733 Vision Care Contact lenses 1,969 1,928 1,836 Ocular health 1,219 1,222 1,216 Total Vision Care 3,188 3,150 3,052 Net sales to third parties 7,362 7,149 6,785 Geographical information The following table shows the United States, International and countries that accounted for more than 5% of at least one of the respective Alcon totals, for net sales for the years ended December 31, 2019 , 2018 and 2017 , and for selected non-current assets at December 31, 2019 , and 2018 : Net sales (1) Total of selected non-current assets (2) ($ millions unless indicated otherwise) 2019 2018 Country United States 3,055 41 % 2,942 41 % 2,800 41 % 10,559 47 % 10,056 45 % International 4,307 59 % 4,207 59 % 3,985 59 % 12,014 53 % 12,401 55 % thereof: Switzerland (country of domicile) 56 1 % 57 1 % 57 1 % 10,486 46 % 11,166 50 % Japan 656 9 % 593 8 % 561 8 % 66 — % 12 — % China 377 5 % 341 5 % 279 4 % 18 — % 2 — % Other 3,218 44 % 3,216 45 % 3,088 46 % 1,444 6 % 1,221 5 % Company total 7,362 100 % 7,149 100 % 6,785 100 % 22,573 100 % 22,457 100 % (1) Net sales from operations by location of third-party customer. (2) Includes property, plant & equipment, right-of-use assets, goodwill and other intangible assets. No customer accounted for 10% or more of Alcon's net sales. |
Interest expense and other fina
Interest expense and other financial income & expense | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Interest expense and other financial income & expense | Interest expense and other financial income & expense For the years ended December 31, 2019 , 2018 and 2017 , "Interest expense" and "Other financial income & expense" are: Interest expense ($ millions) 2019 2018 2017 Interest expense on financial debts (81 ) (10 ) (12 ) Interest expense from discounting long-term liabilities (21 ) (9 ) (10 ) Interest expense on lease liabilities (1) (11 ) (5 ) (5 ) Total interest expense (113 ) (24 ) (27 ) (1) For the years ended December 31, 2018 and 2017 , interest expense on finance leases was included in "Interest expense on lease liabilities". Other financial income & expense ($ millions) 2019 2018 2017 Interest income 8 2 — Loss on extinguishment of financial debt (4 ) — — Other financial expense (18 ) (3 ) (3 ) Monetary loss from hyperinflation accounting (2 ) (1 ) — Currency result, net (16 ) (26 ) (20 ) Total other financial income & expense (32 ) (28 ) (23 ) |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Taxes | Taxes (Loss) before taxes ($ millions) 2019 2018 2017 Switzerland (274 ) (227 ) (104 ) Foreign (58 ) (73 ) (23 ) Total (loss) before taxes (332 ) (300 ) (127 ) Current and deferred income tax (expense)/income ($ millions) 2019 2018 2017 Switzerland (34 ) (77 ) (8 ) Foreign (168 ) (157 ) (95 ) Current income tax expense (202 ) (234 ) (103 ) Switzerland (246 ) 78 7 Foreign 124 229 479 Deferred tax (expense)/income (122 ) 307 486 Total income tax (expense)/income (324 ) 73 383 Analysis of tax rate Alcon's overall applicable tax rate can change each year since it is calculated as the weighted average tax rate based on pre-tax (loss)/income of each subsidiary. The main elements contributing to the difference between Alcon's overall applicable tax rate and the effective tax rate are summarized in the below table. 2019 2018 2017 $ m % $ m % $ m % Applicable tax rate 39 11.7 % 82 27.3 % 37 29.1 % Effect of disallowed expenditures (23 ) (6.9 )% (26 ) (8.7 )% (12 ) (9.4 )% Effect of share based compensation (1 ) (0.3 )% (2 ) (0.7 )% (4 ) (3.1 )% Effect of income taxed at reduced rates 2 0.6 % 2 0.7 % — — Effect of tax credits and allowances 7 2.1 % 13 4.3 % 5 3.9 % Effect of adjustments to contingent consideration liabilities 11 3.3 % 11 3.7 % (8 ) (6.3 )% Effect of option payments (12 ) (3.6 )% (17 ) (5.7 )% (12 ) (9.4 )% Effect of liquidation of a subsidiary — — — — (10 ) (7.9 )% Effect of tax benefits expiring in 2017 (1) — — — — (12 ) (9.4 )% Effect of tax rate changes (2) (342 ) (103.0 )% (14 ) (4.7 )% — — Effect of changes in uncertain tax positions 10 3.0 % (33 ) (11.0 )% (10 ) (7.9 )% Effect of other items (2 ) (0.6 )% (4 ) (1.2 )% (4 ) (3.2 )% Effect of prior year items (3) (13 ) (3.9 )% 61 20.3 % — — % Effect of tax rate change on current and deferred tax assets and liabilities from US tax reform (4) — — % — — % 413 325.2 % Effective tax rate (324 ) (97.6 )% 73 24.3 % 383 301.6 % (1) Effect of tax benefits expiring in 2017 relates to a Swiss subsidiary that was not subject to income tax through the end of calendar year 2017. (2) Effect of tax rate changes in 2019 relates primarily to (i) the adoption of the Swiss Tax Reform which has resulted in a non-cash tax increase in the tax expense of $304 million relating to the re-measurement of the Swiss deferred tax balances and (ii) a $31 million re-measurement of US deferred tax balances as a result of rate changes in the US following legal entity reorganizations executed related to the Spin-off. (3) In 2019, the prior year items relate to changes in certain estimates which resulted in a $13 million tax expense. In 2018, the prior year items relate to out of period income tax benefit of $61 million , which Alcon concluded was not material to the current period or the prior periods to which they relate. (4) Effect of tax rate change on US current and deferred tax assets and liabilities in 2017 relate to the enactment of the Tax Cuts and Jobs Act by the US, which reduced the corporate tax rate from 35% to 21% effective January 1, 2018. This required a re-measurement of the deferred tax balances and a portion of the current tax payables. Alcon has a substantial business presence in many countries and is therefore subject to different income and expense items that are non-taxable (permanent differences) or are taxed at different rates in those tax jurisdictions. This results in a difference between Alcon's applicable tax rate and effective tax rate as shown in the table above. The applicable tax rate in 2019 , 2018 and 2017 was impacted by pre-tax losses in certain tax jurisdictions. The fluctuation in the taxes and the effective tax rates, excluding Swiss and US tax reform, is primarily due to the geographical pre-tax income and loss mix across certain tax jurisdictions relative to Alcon's consolidated (loss)/income before taxes, changes in uncertain tax positions and certain non-recurring items. |
Share capital and earnings_(los
Share capital and earnings/(loss) per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Share capital and earnings/(loss) per share | Share capital and earnings/(loss) per share 8.1 Share capital The share capital of the Company as of December 31, 2019 is CHF 20 million , which is comprised of 491.7 million common shares, nominal value of CHF 0.04 per share. On April 9, 2019, the date of the Spin-off, 488.2 million shares of the Company's common stock were distributed to Novartis shareholders and Novartis ADR holders. The shares were distributed from the Company's existing share capital of 488.7 million shares. On November 19, 2019, the Board of Directors approved an increase of CHF 120,000 out of the Company’s authorized share capital through the issuance of 3.0 million additional shares, nominal value CHF 0.04 per share, to fulfill the future vesting of existing and future equity-based awards. These additional shares were issued as Treasury shares in December 2019 as part of the Company’s authorized share capital according to the authority granted by the shareholders at the Company’s last Annual General Meeting held on January 29, 2019 and reflected in the Company’s Articles of Incorporation. While the transaction increases the number of shares available for delivery under the Company’s equity-based compensation plans, there is no immediate impact on the number of shares outstanding or earnings per share calculations until shares are delivered to plan participants under the plans. During the period, 0.1 million shares were delivered for awards vesting under the Company's equity incentive programs. At December 31, 2019 , the Company had 488.3 million outstanding common shares and 3.4 million shares held in the Company's treasury share accounts. Of the Company's 3.4 million shares held in treasury, 3.0 million may only be used to fulfill the future vesting of existing and future equity-based awards. No dividends were declared or paid from April 9, 2019 through December 31, 2019 . 8.2 Earnings/(loss) per share Basic earnings/(loss) per share is computed by dividing net (loss)/income for the period by the weighted average number of common shares outstanding during the period. For the year ended December 31, 2019 , the weighted average number of shares outstanding was 488.2 million shares. For periods prior to the Spin-off, the denominator for basic earnings/(loss) per share uses the number of shares distributed on the date of the Spin-off. The only potentially dilutive securities are the outstanding unvested equity-based awards under the Company's equity-based incentive plans, as described in Note 24 to these Consolidated Financial Statements. Except when the effect would be anti-dilutive, the calculation of diluted earnings/(loss) per common share includes the weighted average net impact of unvested equity-based awards. For the year ended December 31, 2019 , 1.9 million shares related to unvested equity-based awards have been excluded from the calculation of diluted net loss per share as their effect would be anti-dilutive. For periods prior to the Spin-off, the denominator for diluted earnings per share uses the number of shares distributed on the date of the Spin-off. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | Property, plant & equipment The following table summarizes the movements of property, plant & equipment during 2019 : ($ millions) Land Buildings Construction Machinery & Total Cost January 1, 2019 60 1,527 657 2,646 4,890 Additions (1) 11 514 82 607 Impact of business combinations 1 1 Disposals and derecognitions (2) (17 ) (1 ) (161 ) (179 ) Transfers with former parent 4 2 29 35 Reclassifications for assets placed in service 104 (417 ) 313 — Other reclassifications (27 ) (27 ) Currency translation effects (1 ) (4 ) (5 ) December 31, 2019 33 1,628 755 2,906 5,322 Accumulated depreciation January 1, 2019 (7 ) (558 ) (7 ) (1,518 ) (2,090 ) Depreciation charge (73 ) (194 ) (267 ) Impairment charge (1 ) (7 ) (8 ) Disposals and derecognitions (2) 14 151 165 Transfers with former parent (2 ) (15 ) (17 ) Other reclassifications 7 7 Currency translation effects 1 1 December 31, 2019 — (618 ) (8 ) (1,583 ) (2,209 ) Net book value at December 31, 2019 33 1,010 747 1,323 3,113 (1) Includes $56 million in non-cash additions. (2) Derecognition of assets that are no longer used and are not considered to have a significant disposal value or other alternative use. As of December 31, 2019, commitments for purchases of property, plant & equipment were $212 million . There were no capitalized borrowing costs. The following table summarizes the movements of property, plant and equipment during 2018 : ($ millions) Land Buildings Construction Machinery & Total Cost January 1, 2018 53 1,386 503 2,506 4,448 Additions 4 468 52 524 Impact of business combinations 1 1 Disposals and derecognitions (1) (16 ) (71 ) (87 ) Reclassifications and transfers with former parent 10 252 (302 ) 203 163 Reclassification to right-of-use assets (2) (86 ) (86 ) Currency translation effects (3 ) (13 ) (12 ) (45 ) (73 ) December 31, 2018 60 1,527 657 2,646 4,890 Accumulated depreciation January 1, 2018 (3 ) (447 ) (1,438 ) (1,888 ) Depreciation charge (70 ) (169 ) (239 ) Impairment charge (1 ) (1 ) (2 ) Disposals and derecognitions (1) 15 72 87 Transfers with former parent (4 ) (69 ) (6 ) (12 ) (91 ) Reclassification to right-of-use assets (2) 7 7 Currency translation effects 6 30 36 December 31, 2018 (7 ) (558 ) (7 ) (1,518 ) (2,090 ) Net book value at December 31, 2018 53 969 650 1,128 2,800 (1) Derecognition of assets that are no longer used and are not considered to have a significant disposal value or other alternative use. (2) The December 31, 2018 balance previously reported for a finance lease asset of $79 million has been reclassified from "Property, Plant, & Equipment" to "Right-of-use assets" . As of December 31, 2018, commitments for purchases of property, plant & equipment were $93 million and capitalized borrowing costs were $1 million . |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets The following table summarizes the movements of goodwill and other intangible assets in 2019 : Intangible assets other than goodwill ($ millions) Goodwill Alcon Acquired Technologies Currently Marketing Other Total Cost January 1, 2019 8,899 2,980 249 5,369 4,440 5,960 494 19,492 Impact of business combinations 6 505 505 Additions 7 125 132 Reclassifications — — (33 ) — — — 33 — Disposals and derecognitions (1) (41 ) (41 ) December 31, 2019 8,905 2,980 728 5,369 4,440 5,960 611 20,088 Accumulated amortization January 1, 2019 (3 ) (4,184 ) (2,592 ) (1,906 ) (128 ) (8,813 ) Amortization charge (508 ) (250 ) (240 ) (86 ) (1,084 ) Accumulated amortization on disposals and derecognitions (1) 40 40 December 31, 2019 (3 ) (4,692 ) (2,842 ) (2,146 ) (174 ) (9,857 ) Net book value at December 31, 2019 8,905 2,980 725 677 1,598 3,814 437 10,231 (1) Derecognitions of assets that are no longer used or being developed and are not considered to have a significant disposal value or other alternative use. The following table summarizes the allocation of the net book values of goodwill and other intangible assets by reporting segment at December 31, 2019 : Intangible assets other than goodwill ($ millions) Goodwill Alcon Acquired Technologies Currently Marketing Other Total Surgical 4,544 721 677 374 3,814 184 5,770 Vision Care 4,361 4 1,224 253 1,481 Not allocated to segment (1) 2,980 2,980 Net book value at December 31, 2019 8,905 2,980 725 677 1,598 3,814 437 10,231 (1) Alcon brand name The Surgical and Vision Care segments' cash generating units, to which goodwill is allocated are comprised of a group of smaller cash generating units. The valuation method of the recoverable amount of the cash generating units, to which goodwill is allocated, is based on the fair value less costs of disposal. The Alcon brand name is an intangible asset with an indefinite life. The intangible asset is not allocated to the segments as it is used to market the Alcon-branded products of both the Surgical and Vision Care businesses. Net sales of these products together are the grouping of cash generating units, which is used to determine the recoverable amount. The valuation method is based on the fair value less costs of disposal. The following assumptions are used in the calculations for the recoverable amounts of goodwill and the Alcon brand name: (As a percentage) Surgical Vision Care Terminal growth rate 3.0 3.0 Discount rate (post-tax) 7.5 7.0 The Surgical and Vision Care segments' terminal growth rate assumption of 3% takes into consideration how the industry is expected to grow, analysis of industry expert reports, and expected relevant changes in demographics for various markets. The discount rates for both Surgical and Vision Care segments consider Alcon's weighted average cost of capital, adjusted to approximate the weighted average cost of capital of comparable market participants. Both the terminal growth rate and the discount rate are consistent with external sources of information. The fair value less costs of disposal, for all groupings of cash generating units containing goodwill or indefinite life intangible assets, is reviewed for the impact of reasonably possible changes in key assumptions. In particular Alcon considered an increase in the discount rate, a decrease in the terminal growth rate and certain negative impacts on the forecasted cash flows. These reasonably possible changes in key assumptions did not indicate an impairment. Refer to "Impairment of goodwill, Alcon brand name and definite lived intangible assets" in Note 3 in these Consolidated Financial Statements for additional disclosures on how Alcon performs goodwill and intangible asset impairment testing. The following table summarizes the movements of goodwill and other intangible assets in 2018 : Intangible assets other than goodwill ($ millions) Goodwill Alcon Acquired Technologies Currently Marketing Other Total Cost January 1, 2018 8,895 2,980 242 5,368 4,094 5,960 370 19,014 Impact of business combinations 4 346 346 Additions 71 1 125 197 Disposals and derecognitions (1) (64 ) (1 ) (65 ) December 31, 2018 8,899 2,980 249 5,369 4,440 5,960 494 19,492 Accumulated amortization January 1, 2018 (58 ) (3,635 ) (2,008 ) (1,668 ) (104 ) (7,473 ) Amortization charge (510 ) (247 ) (238 ) (24 ) (1,019 ) Accumulated amortization on disposals and derecognitions (1) 57 57 Impairment charge (2 ) (39 ) (337 ) (378 ) December 31, 2018 (3 ) (4,184 ) (2,592 ) (1,906 ) (128 ) (8,813 ) Net book value at December 31, 2018 8,899 2,980 246 1,185 1,848 4,054 366 10,679 (1) Derecognitions of assets that are no longer used or being developed and are not considered to have a significant disposal value or other alternative use. The following table summarizes the allocation of the net book values of goodwill and other intangible assets by reporting segment at December 31, 2018 : Intangible assets other than goodwill ($ millions) Goodwill Alcon Acquired Technologies Currently Marketing Other Total Surgical 4,538 216 1,185 438 4,054 160 6,053 Vision Care 4,361 30 1,410 206 1,646 Not allocated to segment 2,980 2,980 December 31, 2018 8,899 2,980 246 1,185 1,848 4,054 366 10,679 Intangible asset impairment charges The following table shows the intangible asset impairment charges for 2019 and 2018 : ($ millions) 2019 2018 Surgical — (378 ) Vision Care — — Total — (378 ) There were no intangible asset impairment charges in 2019. For the year 2018 , there was a full impairment of $337 million related to the write-down of CyPass within the Surgical segment due to a voluntary market withdrawal, and an impairment of $39 million related to the write-down of the Optonol technologies also within the Surgical segment. |
Deferred tax assets and liabili
Deferred tax assets and liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Deferred tax assets and liabilities | Deferred tax assets and liabilities ($ millions) Property, Intangible Pensions and Inventories Tax loss Other Total Gross deferred tax assets at December 31, 2018 12 125 262 39 235 673 Gross deferred tax liabilities at December 31, 2018 (94 ) (1,403 ) (2 ) (14 ) (18 ) (1,531 ) Net deferred tax balance at December 31, 2018 (82 ) (1,403 ) 123 248 39 217 (858 ) At December 31, 2018 (82 ) (1,403 ) 123 248 39 217 (858 ) (Charged)/credited to income (71 ) (194 ) 18 111 50 (36 ) (122 ) Credited to equity 25 25 Credited to other comprehensive income 11 5 16 Impact of business combinations (121 ) 28 (93 ) Other movements (6 ) 11 (11 ) (11 ) (7 ) 24 — Net deferred tax balance at December 31, 2019 (159 ) (1,707 ) 141 348 110 235 (1,032 ) Gross deferred tax assets at December 31, 2019 13 6 151 371 110 281 932 Gross deferred tax liabilities at December 31, 2019 (172 ) (1,713 ) (10 ) (23 ) — (46 ) (1,964 ) Net deferred tax balance at December 31, 2019 (159 ) (1,707 ) 141 348 110 235 (1,032 ) The below table presents the Net deferred tax balance as of December 31, 2019 after offsetting $578 million of deferred tax assets and liabilities within the same tax jurisdiction. ($ millions) At December 31, 2019 Deferred tax assets 354 Deferred tax liabilities (1,386 ) Net deferred tax balance (1,032 ) ($ millions) Property, plant & equipment Intangible assets Pensions and other benefit obligations of associates Inventories Tax loss carry- forwards Other assets, provisions and accruals Total Gross deferred tax assets at January 1, 2018 10 121 169 18 232 550 Gross deferred tax liabilities at January 1, 2018 (69 ) (1,531 ) (7 ) (32 ) (25 ) (1,664 ) Net deferred tax balance at January 1, 2018 (59 ) (1,531 ) 114 137 18 207 (1,114 ) At January 1, 2018 (59 ) (1,531 ) 114 137 18 207 (1,114 ) Credited/(charged) to income (23 ) 212 13 82 9 14 307 Charged to equity (2 ) (2 ) Charged to other comprehensive income (2 ) (2 ) Impact of business combinations (78 ) 12 (66 ) Other movements (6 ) (2 ) 29 (2 ) 19 Net deferred tax balance at December 31, 2018 (82 ) (1,403 ) 123 248 39 217 (858 ) Gross deferred tax assets at December 31, 2018 12 125 262 39 235 673 Gross deferred tax liabilities at December 31, 2018 (94 ) (1,403 ) (2 ) (14 ) (18 ) (1,531 ) Net deferred tax balance at December 31, 2018 (82 ) (1,403 ) 123 248 39 217 (858 ) The below table presents the Net deferred tax balance as of December 31, 2018 after offsetting $3 million of deferred tax assets and liabilities within the same tax jurisdiction. ($ millions) At December 31, 2018 Deferred tax assets 670 Deferred tax liabilities (1,528 ) Net deferred tax balance (858 ) The below table presents deferred tax assets and deferred tax liabilities expected to have an impact on current taxes payable after more than twelve months. ($ billions) At December 31, 2019 At December 31, 2018 Deferred tax assets 0.6 0.3 Deferred tax liabilities 1.8 1.5 For foreign unremitted earnings retained by consolidated entities for reinvestment, which amounted to $7 billion as of December 31, 2019, no provision is made for income taxes that would be payable upon the distribution of these earnings. If these earnings were remitted, an income tax charge could result based on the tax statutes currently in effect. Temporary differences on which no deferred tax has been provided as they are permanent in nature relate to goodwill from acquisitions and amounted to $9 billion as of December 31, 2019 and 2018. The gross value of tax loss carry forwards capitalized as deferred tax assets amount to $521 million (2018: $146 million ), of which $33 million expire in five years and $488 million expire in more than five years . All tax loss carry forwards have been capitalized as deferred tax assets in 2019 as it is probable that sufficient taxable income will be available for the foreseeable future. No tax losses carried forward have expired in 2019, 2018 or 2017 . Swiss tax reform On June 30, 2019, Swiss voters approved the Swiss Tax Reform and Old Age Insurance financing bill ("Swiss tax reform"). As a result, the corporate income tax rate applicable to Alcon’s Swiss profits as of January 1, 2020 will increase from approximately 9.4% in 2019 to approximately 14.2% beginning in 2020. This change resulted in a non-cash increase in tax expense of $304 million related to the re-measurement of Swiss deferred tax assets and liabilities in 2019. US tax reform On December 22, 2017, the US enacted tax reform legislation (Tax Cuts and Jobs Act), which among other provisions, reduced the US corporate tax rate from 35% to 21%, effective January 1, 2018. This required a revaluation of the deferred tax assets and liabilities and a portion of current tax payables to the newly enacted tax rates at the date of enactment. This resulted in the recognition of a $413 million credit to income and an $18 million charge to equity in 2017. |
Financial and other non-current
Financial and other non-current assets | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Financial and other non-current assets | Financial and other non-current assets The below tables provide details related to Financial assets and Other non-current assets as of December 31, 2019 and 2018. Financial assets ($ millions) 2019 2018 Long-term financial investments measured at FVOCI 31 19 Long-term financial investments measured at FVPL 28 67 Long-term receivables from customers 136 164 Minimum lease payments from finance lease agreements 78 91 Long-term loans, advances, and security deposits 34 47 Total financial assets 307 388 Minimum lease payments from finance lease agreements The following table shows the receivables of the gross investments in finance leases and the net present value of the minimum lease payments, as well as unearned finance income, related to surgical equipment lease arrangements. The finance income is recorded in "Other income". 2019 2018 ($ millions) Total Unearned Present Provision Net Total Unearned Present Provision Net Not later than one year (1) 51 (4 ) 47 (1 ) 46 64 (5 ) 59 (2 ) 57 Between one and five years 94 (5 ) 89 (23 ) 66 117 (9 ) 108 (28 ) 80 Later than five years 46 (1 ) 45 (33 ) 12 48 (2 ) 46 (35 ) 11 Total 191 (10 ) 181 (57 ) 124 229 (16 ) 213 (65 ) 148 (1) The current portion of the minimum lease payments is recorded in trade receivables or other current assets (to the extent not yet invoiced). Other non-current assets ($ millions) 2019 2018 Deferred compensation plans 122 95 Prepaid post-employment benefit plans 13 12 Other non-current assets 50 41 Total other non-current assets 185 148 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Inventories | Inventories The amount of inventory recognized as an expense in "Cost of net sales" in the consolidated income statements during 2019 amounted to $2.2 billion ( 2018 : $2.2 billion , 2017 : $2.1 billion ). The amount of inventory recognized as an expense in "Cost of other revenues" in the consolidated income statements during 2019 amounted to $127 million ( 2018 : $0 million , 2017 : $0 million ). ($ millions) 2019 2018 Raw material, consumables 286 334 Work in progress 101 127 Finished products 1,118 979 Total inventories 1,505 1,440 Alcon recognized inventory provisions amounting to $140 million in 2019 ( 2018 : $148 million , 2017 : $73 million ) and reversed inventory provisions amounting to $65 million ( 2018 : $56 million , 2017 : $15 million ). Inventory provisions mainly relate to the adjustment of inventory balances to their net realizable value based on the forecasted sales. Reversals are made when the products become saleable. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade receivables | Trade receivables The following table provides details related to Trade receivables as of December 31, 2019 and 2018: ($ millions) 2019 2018 Total gross trade receivables 1,438 1,307 Provisions for doubtful trade receivables (48 ) (54 ) Total trade receivables, net 1,390 1,253 The following table summarizes the movement in the provision for doubtful trade receivables: ($ millions) 2019 2018 2017 January 1 (54 ) (77 ) (55 ) Transfers with former parent — 4 — Provisions for doubtful trade receivables charged to the consolidated income statement (17 ) (17 ) (28 ) Utilization of provisions for doubtful trade receivables 7 16 2 Reversal of provisions for doubtful trade receivables 15 16 6 Currency translation effects 1 4 (2 ) December 31 (48 ) (54 ) (77 ) The following sets forth the trade receivables that are not overdue as specified in the payment terms and conditions established with Alcon's customers, as well as an analysis of overdue amounts and related provisions for doubtful trade receivables: ($ millions) 2019 2018 Not overdue 1,135 1,018 Past due for not more than one month 118 118 Past due for more than one month but less than three months 81 70 Past due for more than three months but less than six months 47 34 Past due for more than six months but less than one year 21 20 Past due for more than one year 36 47 Provisions for doubtful trade receivables (48 ) (54 ) Total trade receivables, net 1,390 1,253 Trade receivable balances include sales to wholesalers, retailers, doctor groups, private health systems, government agencies, pharmacy benefit managers and government-supported healthcare systems. We consider our doubtful debt provisions to be adequate. The majority of the outstanding trade receivables from Greece, Italy, Portugal, Spain, Brazil, Russia, Turkey, Saudi Arabia, and Argentina (the closely monitored countries) are due directly from local governments or from government-funded entities except for Russia, Brazil, and Turkey. We evaluate trade receivables in these countries for potential collection risk. Should there be a substantial deterioration in our economic exposure with respect to those countries, we may increase our level of provisions by updating our expected loss provision or may change the terms of trade on which we operate. The following table shows the gross trade receivables balance from these closely monitored countries as of December 31, 2019 and 2018 , the amounts that are past due for more than one year and the related amount of the provisions for doubtful trade receivables that have been recorded: ($ millions) 2019 2018 Total balance of gross trade receivables from closely monitored countries 209 216 Past due for more than one year 10 14 Provisions for doubtful trade receivables (13 ) (16 ) Trade receivables include amounts denominated in the following major currencies: ($ millions) 2019 2018 US dollar (USD) 463 449 Euro (EUR) 243 215 Japanese yen (JPY) 168 152 Chinese yuan (CNY) 102 74 Indian rupee (INR) 33 34 Canadian dollar (CAD) 30 30 Australian dollar (AUD) 29 27 British pound (GBP) 24 25 Russian ruble (RUB) 34 24 South Korean won (KRW) 29 23 Other currencies 235 200 Total trade receivables, net 1,390 1,253 |
Other current assets
Other current assets | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other current assets | Other current assets The following table provides details related to Other current assets as of December 31, 2019 and 2018: ($ millions) 2019 2018 Current portion of long-term financial investments measured at FVPL 33 31 Current portion of long-term receivables from customers 122 133 Current portion of minimum lease payments from finance lease agreements 46 57 Prepaid expenses 89 46 Other receivables, security deposits and current assets 147 52 Derivative financial instruments 1 — VAT receivable 64 68 Total other current assets 502 387 |
Right-of-use assets and Lease l
Right-of-use assets and Lease liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Right-of-use assets and Lease liabilities | Right-of-use assets and Lease liabilities Alcon adopted IFRS 16, Leases effective January 1, 2019, as described in Note 3 to these Consolidated Financial Statements. Alcon has applied the modified retrospective method, with right-of-use assets measured at an amount equal to the lease liability, adjusted by the amount of the prepaid or accrued lease payments relating to those leases recognized in the balance sheet immediately before the date of initial application. In applying IFRS 16 for the first time, Alcon has used the following practical expedients on a lease by lease basis as permitted by the standard: • contracts previously identified as leases by applying IAS 17, Leases and IFRIC 4, Determining whether an Arrangement contains a Lease , have not been re-assessed under IFRS 16, • leases with a remaining lease term less than twelve months from the date of adoption and leases of low-value assets have not been recognized as right-of-use assets and lease liabilities, • measurement of right-of-use assets at the date of adoption excluded the initial direct costs, and • use of hindsight in determining the lease term for contracts containing options to extend or terminate the lease. Right-of-use assets Right-of-use assets as of December 31, 2019 and January 1, 2019 were comprised of the following: ($ millions) December 31, 2019 January 1, 2019 Land 20 20 Buildings 277 226 Machinery & equipment and other assets 27 33 Total right-of-use assets (1) 324 279 (1) Right-of-use assets, related to operating leases at the date of implementation of IFRS 16, were higher than the lease liabilities at the date of implementation of IFRS 16 by $3 million , due to the net impact of prepayments and accrued lease payments recognized at December 31, 2018 . This impact was offset by the lease liability related to the finance lease exceeding the corresponding capital asset by $10 million . Depreciation charges of $66 million for the year ended December 31, 2019 are shown in the table below by underlying class of asset: ($ millions) 2019 Land 1 Buildings 47 Machinery & equipment and other assets 18 Total 66 Additions to right-of-use assets amounted to $116 million for the year ended December 31, 2019 . Lease liabilities Lease liabilities of $286 million were recorded on January 1, 2019. The reconciliation of lease commitments disclosed as of December 31, 2018 and lease liabilities recorded on January 1, 2019 is as follows: ($ millions) Operating lease commitments as of December 31, 2018 222 Effect of discounting (21 ) Operating leases discounted using the incremental borrowing rate (1) 201 Finance lease liabilities recognized as at December 31, 2018 89 Recognition exemption for short term and low-value leases (4 ) Lease liabilities as of January 1, 2019 286 (1) Weighted average incremental borrowing rate of 2.9% was applied at January 1, 2019, the date of implementation of IFRS 16, Leases . Lease liabilities totaled $341 million as of December 31, 2019 , including $61 million in current lease liabilities and $280 million in non-current lease liabilities. The contractual maturities of the undiscounted lease liabilities as of December 31, 2019 , are as follows: ($ millions) Lease liabilities undiscounted Not later than one year 73 Between one and five years 176 Later than five years 200 Total lease liabilities undiscounted 449 ($ millions) Lease liabilities Not later than one year 61 Between one and five years 140 Later than five years 140 Total lease liabilities 341 Additional disclosures The following table provides additional disclosures related to right-of-use assets and lease liabilities: ($ millions) 2019 Interest expense on lease liabilities 11 Expense on short-term and low value leases 3 Total cash outflows for leases 59 Thereof: Lease liability payments (1) 52 Interest payments (2) 5 Short-term and low value lease payments (2) 2 (1) Reported as cash outflows from financing activities net of lease incentives received (2) Included within total net cash flows from operating activities Prior to the adoption of IFRS 16, Alcon prepared the required disclosures for operating lease commitments and finance lease future minimum lease payments. Operational lease commitments as of December 31, 2018, were as follows: ($ millions) 2018 Not later than one year 50 Between one and five years 135 Later than five years 37 Total operational lease commitments 222 Future minimum lease payments under finance leases, together with the present value of the minimum lease payments as of December 31, 2018, were as follows: ($ millions) 2018 Not later than one year — Between one and five years 27 Later than five years 153 Total minimum lease liabilities 180 Less future finance charges (91 ) Present value of minimum lease payments 89 |
Non-current and current financi
Non-current and current financial debts | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Non-current and current financial debts | Non-current and current financial debts The below table summarizes current and non-current Financial debts outstanding as of December 31, 2019 and 2018 . ($ millions) 2019 2018 Non-current financial debts Facility B 793 — Facility C 391 — Local facilities (Japan) 55 — Series 2026 notes 495 — Series 2029 notes 991 — Series 2049 notes 493 — Revolving facility — — Total non-current financial debts 3,218 — Current financial debts Local facilities: Japan 115 — All others 101 32 Other short-term financial debts 29 15 Derivatives 16 — Total current financial debts 261 47 Total financial debts 3,479 47 Alcon entered into the below borrowing arrangements in connection with the Spin-off, as described in Note 4 to these Consolidated Financial Statements, and refinanced a portion of those borrowing arrangements, as further described below. Interest expense recognized for Financial debts, excluding lease liabilities, was $81 million , $10 million and $12 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The weighted average interest rate on Financial debts was 2.9% in 2019 and 17.4% in 2018 . Bridge Loan, Term Loan, and Revolving Credit Facilities On March 6, 2019, Alcon entered into a $1.5 billion unsecured 364-day bridge loan facility with two extension options, each for a period of 180 days (the "Bridge Facility"), a $0.5 billion unsecured three-year term loan facility ("Facility A"), a $0.8 billion unsecured five-year term loan facility ("Facility B"), a $0.4 billion (or the equivalent in EUR) unsecured five-year term loan facility ("Facility C") and a $1.0 billion unsecured five-year committed multicurrency revolving credit facility (the "Revolving Facility" and, together with the Bridge Facility, Facility A, Facility B and Facility C, the "Facilities"). On April 2, 2019, Alcon borrowed $3.2 billion against the bridge and other term loans. The Revolving Facility was undrawn as of December 31, 2019 . The Facilities bear interest rates equal to the interest rate benchmark (prevailing Euro Interbank Offered Rate (“EURIBOR”) in the case of loans denominated in EUR, USD prevailing London Interbank Offered Rate (“LIBOR”) in the case of loans denominated in USD and CHF LIBOR in the case of loans denominated in CHF), plus an applicable margin. Alcon and certain of its subsidiaries are the borrowers under the Facilities and Alcon guarantees the borrowings of such subsidiaries under the Facilities. In addition, the Revolving Facility includes a mechanism through which certain subsidiaries, as approved by the lenders, can accede as a borrower. Alcon is permitted to voluntarily prepay loans under the Facilities, in whole or in part, without penalty or premium subject to certain minimum prepayment amounts and the payment of accrued interest on the amount prepaid and customary breakage costs. The Bridge Facility had a mandatory prepayment provision, pursuant to which Alcon would have to apply proceeds from relevant debt capital markets transactions in prepayment under the Bridge Facility. The terms of the Facilities include certain events of default and covenants customary for investment grade credit facilities, including restrictive covenants that will limit, among other things, the grant or incurrence of security interests over any of Alcon's assets, the incurrence of certain indebtedness and entry into certain fundamental change transactions. The Facilities do not contain any financial covenants. Refinancing of Bridge Facility and Facility A On September 23, 2019 , AFC issued Senior Notes ("Notes") with maturity dates in 2026 , 2029 , and 2049 , which are guaranteed by the Company. The Notes are unsecured senior obligations of AFC issued in a private placement. The total notional amount of the Notes is $2.0 billion . The Notes were issued at a discount totaling $7.0 million , which was recorded as a reduction to the carrying value of the Notes and will be amortized to Interest expense over the term of the Notes. AFC incurred $15 million of debt issuance costs, which were recorded as a reduction to the carrying value of the Notes and will be amortized to Other financial income & expense over the term of the Notes. The Notes consist of the following: • Series 2026 Notes - $0.5 billion due in 2026 issued at 99.5% , 2.750% interest is payable twice per year in March and September, beginning in March 2020. • Series 2029 Notes - $1.0 billion due in 2029 issued at 99.6% , 3.000% interest is payable twice per year in March and September, beginning March 2020. • Series 2049 Notes - $0.5 billion due in 2049 issued at 99.8% , 3.800% interest is payable twice per year in March and September, beginning March 2020. The funds borrowed through the issuance of the Notes were used to repay the $1.5 billion Bridge Facility and $0.5 billion Facility A. The transaction was accounted for as an extinguishment of a liability. Alcon recognized a loss of $4 million associated with the write-off of unamortized deferred financing costs due to extinguishment of the original financing. This loss on extinguishment was recognized in Other financial income & expense. The following table provides details on the maturity of the contractual undiscounted cash flows for Alcon's borrowings as of December 31, 2019 : ($ millions) Nominal amount - Current and non-current financial debt Derivatives Total Not later than one year 245 16 261 Between one and five years 1,247 — 1,247 Later than five years 2,000 — 2,000 Total cash flows 3,492 16 3,508 Unamortized debt discount and issuance costs (29 ) — (29 ) Total carrying value 3,463 16 3,479 The following table provides details on the maturity of the future contractual interest payments commitments: ($ millions) Interest Not later than one year 94 Between one and five years 336 Later than five years 653 Total cash flows 1,083 As of December 31, 2018 , the contractual undiscounted cash flows for borrowings was $47 million for the current financial debts reflected in Financial debts on the Consolidated Balance Sheets. Local Bilateral Facilities In February 2019, Alcon entered into a number of local bilateral facilities in different countries, with the largest share of borrowings in Japan. A total of $0.3 billion was drawn including $0.2 billion in two lines for Japan. All local bilateral lines are classified as current with a maturity date in one year or less, with the exception of one line in Japan with a maturity date in 2021 which is classified as non-current. As of December 31, 2019 , there was $35 million undrawn on the facility in Japan. Derivatives As of December 31, 2019 , the net value of unsettled positions for derivative forward contracts and swaps was $15 million , including $1 million of unrealized gains in Other current assets and $16 million of unrealized losses in Current financial debts. Master agreements were executed with several banking counterparties for derivatives financial instruments, however, there were no derivative financial instruments meeting the offsetting criteria under IFRS as of December 31, 2019 . Alcon did not hold derivative financial instruments as of December 31, 2018 . |
Financial instruments - additio
Financial instruments - additional disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Financial instruments - additional disclosures | Financial instruments - additional disclosures The below table provides detail related to financial instruments as of December 31, 2019 and 2018 . ($ millions) Note 2019 2018 Cash and cash equivalents Cash in current accounts 392 227 Cash held in time deposits and money market funds 430 — Total Cash and cash equivalents 822 227 Financial assets - measured at fair value through other comprehensive income ("FVOCI") Long-term financial investments 12 31 19 Total financial assets - measured at FVOCI 31 19 Financial assets - measured at amortized costs (1) Trade receivables 14 1,390 1,253 Receivables from former parent 25 — 20 Income tax receivables 17 33 Other financial receivables from former parent 25 — 39 Other current assets (excluding prepaid expenses and other current assets measured at FVPL) 15 379 310 Long-term receivables from customers 12 136 164 Non-current minimum lease payments from finance lease agreements 12 78 91 Long-term loans, advances, and security deposits 12 34 47 Total financial assets - measured at amortized costs 2,034 1,957 Financial assets - measured at fair value through profit and loss ("FVPL") Current portion of long-term financial investments 15 33 31 Derivative fInancial instruments 15 1 — Long-term financial investments 12 28 67 Total financial assets - measured at FVPL 62 98 Total financial assets 2,949 2,301 Financial liabilities - measured at amortized cost or cost (1) Current financial liabilities Financial debts 17 245 47 Lease liabilities 16 61 — Trade payables 833 663 Payables to former parent 25 — 85 Other financial liabilities to former parent 25 — 67 Total current financial liabilities - measured at amortized cost or cost 1,139 862 Non-current financial liabilities Financial debts 17 3,218 — Lease liabilities 16 280 89 Total non-current financial liabilities - measured at amortized cost or cost 3,498 89 Total financial liabilities - measured at amortized cost or cost 4,637 951 Financial liabilities - measured at FVPL Contingent consideration liabilities 19/20 243 162 Derivative financial instruments 17 16 — Total financial liabilities - measured at FVPL 259 162 Total financial liabilities 4,896 1,113 Net financial assets and financial liabilities (1,947 ) 1,188 (1) The carrying amount is a reasonable approximation of fair value, with the exception of the Series 2026, 2029 and 2049 notes recorded in Non-current financial debts with a fair value of $2,049 million and carrying value of $1,979 million as of December 31, 2019 . The notes were valued using a quoted market price for such notes, which have low trading volumes. Fair value by hierarchy As required by IFRS, financial assets and liabilities recorded at fair value in the Consolidated Financial Statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. There are three hierarchical levels, based on an increasing amount of judgment associated with the inputs to derive fair value for these financial assets and liabilities, which are as follows: Financial assets and liabilities carried at Level 1 fair value hierarchy are listed in active markets. Financial assets and liabilities carried at Level 2 fair value hierarchy are valued using corroborated market data. As of December 31, 2019 , Level 1 financial assets include money market funds . There were no financial liabilities carried at Level 1 fair value, and Level 2 financial assets and liabilities include derivative financial instruments. As of December 31, 2018 , there were no financial assets or liabilities carried at Level 1 fair value or Level 2 fair value. Investments in money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The investments are classified as Cash & cash equivalents within our Consolidated Balance Sheets. Level 3 inputs are unobservable for the financial asset or liability. The financial assets and liabilities generally included in Level 3 fair value hierarchy are equity securities and convertible notes receivable measured at FVOCI, and fund investments, options to acquire private companies, and contingent consideration liabilities measured at FVPL. The following tables summarize financial assets and liabilities measured at fair value on a recurring basis or at amortized cost or cost as of December 31, 2019 and 2018. December 31, 2019 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost Total Non-current financial assets Long-term financial investments measured at FVOCI — — 31 — 31 Long-term financial investments measured at FVPL — — 28 — 28 Long-term receivables from customers — — — 136 136 Non-current minimum lease payments from finance lease agreements — — — 78 78 Long-term loans, advances, and security deposits — — — 34 34 Total non-current financial assets — — 59 248 307 Current financial assets Money market funds 120 — — — 120 Current portion of long-term financial investments measured at FVPL (1) — — 33 — 33 Current portion of long-term receivables from customers (1) — — — 122 122 Current portion of minimum lease payments from finance lease agreements (1) — — — 46 46 Other receivables, security deposits and current assets (1) — — — 147 147 VAT receivables (1) — — — 64 64 Derivative financial instruments (1) — 1 — — 1 Total current financial assets 120 1 33 379 533 Total financial assets at fair value and amortized cost or cost 120 1 92 627 840 Financial liabilities Contingent consideration liabilities — — (243 ) — (243 ) Non-current financial debt — — — (3,218 ) (3,218 ) Current financial debt — — — (245 ) (245 ) Derivative financial instruments — (16 ) — — (16 ) Total financial liabilities at fair value and amortized cost — (16 ) (243 ) (3,463 ) (3,722 ) (1) Recorded in Other current assets. December 31, 2018 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost Total Non-current financial assets Long-term financial investments measured at FVOCI — — 19 — 19 Long-term financial investments measured at FVPL — — 67 — 67 Long-term receivables from customers — — — 164 164 Non-current minimum lease payments from finance lease agreements — — — 91 91 Long-term loans, advances, and security deposits — — — 47 47 Total non-current financial assets — — 86 302 388 Current financial assets (1) Current portion of long-term financial investments measured at FVPL — — 31 — 31 Current portion of long-term receivables from customers — — — 133 133 Current portion of minimum lease payments from finance lease agreements — — — 57 57 Other receivables, security deposits and current assets — — — 52 52 VAT receivables — — — 68 68 Derivative financial instruments — — — — — Total current financial assets — — 31 310 341 Total financial assets at fair value and amortized cost or cost — — 117 612 729 Financial liabilities Contingent consideration liabilities — — (162 ) — (162 ) Non-current financial debt — — — — — Current financial debt — — — (47 ) (47 ) Derivative financial instruments — — — — — Total financial liabilities at fair value and amortized cost — — (162 ) (47 ) (209 ) (1) Current financial assets referenced in the above table are recorded in Other current assets. There were no transfers of financial instruments between levels in the fair value hierarchy during the year ended December 31, 2019 and 2018 . Certain prior period amounts have been reclassified to reflect the inclusion of options to acquire private companies measured at FVPL in Level 3 of the fair value hierarchy to conform with current period presentation. Level 3 financial instruments measured at fair value on a recurring basis Financial assets Long-term financial investments measured Financial investments ($ millions) 2019 2018 2019 2018 Balance as of January 1 (1) 19 26 98 78 Additions 17 11 34 92 Cash receipts and payments — — (7 ) (5 ) Gains/(losses) recognized in consolidated statements of comprehensive (loss)/income (7 ) (23 ) — — Unrealized gains/(losses) in consolidated income statements — — (3 ) 7 Amortization — — (61 ) (74 ) Reclassification 2 5 — — Balance as of December 31 31 19 61 98 (1) January 1, 2018 balances reflected in this table are as adjusted for adoption of IFRS 9, Financial Instruments . If the pricing parameters for the Level 3 input were to change for Long-term financial investments measured at FVOCI and Financial investments measured at FVPL by 10% positively or negatively, this would change the amount recorded in the 2019 Consolidated Statements of Comprehensive Loss by $3 million . Financial liabilities Contingent consideration liabilities ($ millions) 2019 2018 Balance as of January 1 (162 ) (113 ) Additions (135 ) (102 ) Accretion for passage of time (21 ) (9 ) Adjustments for changes in assumptions 75 62 Payments — — Balance as of December 31 (243 ) (162 ) Contingent consideration additions of $135 million relate to the acquisition of PowerVision, Inc. in March 2019 as described in Note 4 of these Consolidated Financial Statements. Adjustments for changes in assumptions of $75 million are primarily related to revised expectations for achievement of commercial milestones and changes in assumptions related to the expected timing of settlement for development milestones. As of December 31, 2019 , the maximum remaining potential payments related to contingent consideration from business combinations is $510 million plus other amounts calculated as a percentage of commercial sales in cases where there is not a specified maximum contractual payment amount. Changes in the contingent consideration liability balance for the same period in prior year included additions of $102 million related to the acquisitions as described in Note 4 to these Consolidated Financial Statements. Adjustments for changes in assumptions of $62 million are primarily related to revised expectations for achievement of milestones due to a product's voluntary market withdrawal. Contingent consideration liabilities are reported in “Provisions & other non-current liabilities" and "Provisions & other current liabilities” based on the projected timing of settlement which is estimated to range from 2020 through 2029 for contingent consideration obligations as of December 31, 2019 . For the determination of the fair value of a contingent consideration various unobservable inputs are used. A change in these inputs might result in a significantly higher or lower fair value measurement. The inputs used are, among others, the probability of success, sales forecast and assumptions regarding the discount rate, timing and different scenarios of triggering events. The significance and usage of these inputs to each contingent consideration may vary due to differences in the timing and triggering events for payments or in the nature of the asset related to the contingent consideration. If the most significant parameters for the Level 3 input were to change by 10% positively or negatively, or where the probability of success is the most significant input parameter 10% were added or deducted from the applied probability of success, for contingent consideration payables, this would change the amounts recorded in the 2019 Consolidated Income Statements by $34 million and $32 million respectively. Nature and extent of risks arising from financial instruments Market risk Alcon is exposed to market risk, primarily related to foreign currency exchange rates, interest rates and the market value of the investments of liquid funds. Alcon actively monitors and seeks to reduce, where it deems it appropriate to do so, fluctuations in these exposures. It is Alcon policy and practice to enter into a variety of derivative financial instruments to manage the volatility of these exposures and to enhance the yield on the investment of liquid funds. Alcon does not enter into any financial transactions containing a risk that cannot be quantified at the time the transaction is concluded. In addition, Alcon does not sell short assets it does not have, or does not know it will have, in the future. Alcon only sells existing assets or enters into transactions and future transactions (in the case of anticipatory hedges) that it confidently expects it will have in the future, based on past experience. In the case of liquid funds, Alcon writes call options on assets it has, or writes put options on positions it wants to acquire and has the liquidity to acquire. Alcon expects that any loss in value for these instruments generally would be offset by increases in the value of the underlying transactions. Foreign currency exchange rate risk Alcon uses the US Dollar as its reporting currency and is therefore exposed to foreign currency exchange movements, primarily in Euros, Japanese Yen, Chinese Renminbi, Swiss Francs, and emerging market currencies. Fluctuations in the exchange rate between the US Dollar and other currencies can have a significant effect on both the Alcon’s results of operations, including reported sales and earnings, as well as on the reported value of our assets, liabilities and cash flows. This, in turn, may significantly affect the comparability of period-to-period results of operations. Alcon manages its global currency exposure by engaging in hedging transactions where management deems appropriate (forward contracts and swaps). Specifically, Alcon enters into various contracts that reflect the changes in the value of foreign currency exchange rates to preserve the value of assets. Interest rate risk Alcon's exposure to cash flow interest rate risks arises mainly from non-current financial debts at variable rates. Alcon may enter into interest rate swap agreements, in which it exchanges periodic payments based on a notional amount and agreed-upon fixed and variable rate interests. If the interest rates had been higher / lower by 1% , the loss before taxes would have been higher / lower by $12 million from the impacts of interest expense and interest income based on the change in the interest rate. Commodity price risk Alcon has only a very limited exposure to price risk related to anticipated purchases of certain commodities used as raw materials by Alcon's businesses. A change in those prices may alter the gross margin of a specific business, but generally by not more than 10% of the margin and thus below Alcon's risk management tolerance levels. Accordingly, Alcon does not enter into significant forward and option contracts to manage fluctuations in prices of anticipated purchases. Credit risk Credit risks arise from the possibility that customers may not be able to settle their obligations as agreed. To manage this risk, Alcon periodically assesses credit risk, assigns individual credit limits, and takes actions to mitigate credit risk where appropriate. For further information, refer to Note 14 of these Consolidated Financial Statements. No customer accounted for 10% or more of Alcon's net sales in 2019 , 2018 , or 2017 . Liquidity risk Liquidity risk is defined as the risk that Alcon could not be able to settle or meet its obligations on time or at a reasonable price. Alcon Treasury is responsible for liquidity, funding and settlement management. In addition, liquidity and funding risks, and related processes and policies, are overseen by management. Alcon manages its liquidity risk on a consolidated basis according to business needs, tax, capital or regulatory considerations, if applicable, through numerous sources of financing in order to maintain flexibility. Management monitors Alcon's net debt or liquidity position through rolling forecasts on the basis of expected cash flows. For further information on maturity of the contractual undiscounted cash flows for Alcon's borrowings and interest on borrowing, refer to Note 17 of these Consolidated Financial Statements. |
Provisions and other non-curren
Provisions and other non-current liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Provisions and other non-current liabilities | Provisions and other non-current liabilities The below table provides details related to Provisions and other non-current liabilities as of December 31, 2019 , and 2018 . ($ millions) 2019 2018 Accrued liability for employee benefits: Defined benefit pension plans (1) 291 254 Other long-term employee benefits and deferred compensation 140 104 Other post-employment benefits (1) 423 345 Provisions for product liabilities, governmental investigations and other legal matters — — Contingent consideration (2) 208 143 Other non-current liabilities 106 67 Total provisions and other non-current liabilities 1,168 913 (1) Note 23 to these Consolidated Financial Statements provides additional disclosures related to post-employment benefits. (2) Note 18 to these Consolidated Financial Statements provides additional disclosures related to contingent consideration. Alcon believes that its total provisions are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities in this area, Alcon may incur additional costs beyond the amounts provided. Management believes that such additional amounts, if any, would not be material to Alcon's financial condition but could be material to the results of operations or cash flows in a given period. Provisions for product liabilities, governmental investigations and other legal matters Alcon has established provisions for certain product liabilities, governmental investigations and other legal matters, where a potential cash outflow is probable and a reliable estimate can be made of the amount of the outflow. These provisions represent the current best estimate of the total financial effect for the matters described below and for other less significant matters. Potential cash outflows reflected in a provision may be fully or partially off-set by insurance in certain circumstances. Alcon has not established provisions for potential damage awards for certain additional legal claims if Alcon currently believes that a payment is either not probable or cannot be reliably estimated. A number of other legal matters are in such early stages or the issues presented are such that Alcon has not made any provisions since it cannot currently estimate either a potential outcome or the amount of any potential losses. For these reasons, among others, Alcon generally is unable to make a reliable estimate of possible loss with respect to such cases. It is therefore not practicable to provide information about the potential financial impact of those cases. There might also be cases for which Alcon was able to make a reliable estimate of the possible loss or the range of possible loss, but Alcon believes that publication of such information on a case-by-case basis would seriously prejudice Alcon's position in ongoing legal proceedings or in any related settlement discussions. Accordingly, in such cases, information has been disclosed with respect to the nature of the contingency, but no disclosure is provided as to an estimate of the possible loss or range of possible loss. Note 26 contains additional information on contingencies. Summary of significant legal proceedings Under the Separation and Distribution Agreement Alcon entered into with Novartis in connection with the separation and the Spin-off, Alcon and Novartis agreed, subject to certain conditions and except to the extent otherwise described below with respect to any matter, to indemnify the other party and its directors, officers, associates and other representatives against any pending or future liabilities or claims that constitute either a Novartis Group liability, in the case of Novartis, or an Alcon liability, in the case of Alcon, under the terms of the Separation and Distribution Agreement, based on whether such claim or liability relates to the Novartis business and products or Alcon's respective business and products. A number of Alcon companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time, including proceedings regarding product liability, sales and marketing practices, commercial disputes, employment, and wrongful discharge, antitrust, securities, health and safety, environmental, tax, international trade, privacy, and intellectual property matters. As a result, Alcon may become subject to substantial liabilities that may not be covered by insurance and could affect our business, financial position and reputation. While Alcon does not believe that any of these legal proceedings will have a material adverse effect on its financial position, litigation is inherently unpredictable and large judgments sometimes occur. As a consequence, Alcon may in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations or cash flow. The following is a summary as of February 25, 2020 of significant legal proceedings of the Alcon business to which Alcon or its subsidiaries are a party. Southern District of New York / Western District of New York healthcare fraud investigation In 2011, Alcon received a subpoena from the United States Department of Health & Human Services relating to an investigation into allegations of healthcare fraud and potential off-label promotion of certain products. The subpoena requests the production of documents relating to marketing practices and the remuneration of healthcare providers in connection with surgical equipment and certain Novartis products (Vigamox®, Nevanac®, Omnipred®, Econopred®). Alcon is cooperating with this investigation. Asia / Russia investigation In 2017 and 2018 , Alcon and Novartis, as well as certain present and former executives and associates of Alcon and Novartis, received document requests and subpoenas from the US Department of Justice ("DoJ") and the US SEC requesting information concerning Alcon accounting, internal controls and business practices in Asia and Russia, including revenue recognition for surgical equipment and related products and services and relationships with third party distributors, both before and after Alcon was acquired by Novartis. Alcon is cooperating with this investigation. Under the Separation and Distribution Agreement, Novartis must indemnify Alcon in respect of defined direct monetary liabilities relating to the current scope of the ongoing investigation by the DoJ and the SEC relating to certain business practices in Asia and Russia and related accounting treatment. Contact lenses class actions Since the first quarter of 2015, more than 50 class action complaints have been filed in several courts across the US naming as defendants contact lens manufacturers, including Alcon, and alleging violations of federal antitrust law, as well as the antitrust, consumer protection and unfair competition laws of various states, in connection with the implementation of unilateral price policies by the defendants in the sale of contact lenses. The cases have been consolidated in the Middle District of Florida by the Judicial Panel on Multidistrict Litigation and the claims are being vigorously contested. MIVS platform patent infringement investigation In June 2015, Johns Hopkins University ("JHU") filed a patent infringement lawsuit against certain Alcon entities alleging that the use of certain Alcon surgical products, principally by third parties, infringes a patent directed to certain methods of ocular surgery. In March 2019, Alcon and JHU entered into a settlement agreement in full settlement of all claims relating to this proceeding. LenSx laser system and WaveLight FS200 laser patent infringement litigations Two consolidated cases were filed against Alcon claiming that the LenSx laser system and WaveLight FS200 femtosecond laser infringe two US patents expiring in 2018 and 2030. The district court entered summary judgment for Alcon, and the plaintiff appealed to the US Court of Appeals for the Federal Circuit. The Court of Appeals affirmed the district court’s judgment for Alcon on August 8, 2019. TCPA matter In April 2016, a putative class action lawsuit was filed in Illinois federal court alleging that the defendants, Alcon and Novartis Pharmaceuticals Corporation ("NPC"), sent unsolicited facsimiles in violation of the Telephone Consumer Protection Act, and seeking to certify a representative putative nationwide class of affected consumers. The claims are being vigorously contested. Product liability, governmental investigations and other legal matters provision movements ($ millions) 2019 2018 2017 January 1 42 49 9 Additions to provisions — 1 55 Cash payments (40 ) (1 ) (6 ) Releases of provisions (2 ) (7 ) (9 ) December 31 — 42 49 Less current portion — (42 ) (43 ) Non-current provisions for product liabilities, governmental investigations and other legal matters at December 31 — — 6 Alcon believes that its total provisions for investigations, product liability, arbitration and other legal matters are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities, there can be no assurance that additional liabilities and costs will not be incurred beyond the amounts provided. Provisions and other current liabilities The following table provides details related to Provisions and other current liabilities as of December 31, 2019 and 2018: ($ millions) 2019 2018 Taxes other than income taxes 81 57 Restructuring provisions 28 8 Accrued expenses for goods and services received but not invoiced 79 71 Accruals for royalties 10 6 Accruals for deductions from revenue 212 194 Accruals for compensation and benefits including social security 382 363 Deferred income 97 94 Provisions for product liabilities, governmental investigations and other legal matters (1) — 42 Accrued share-based payments 10 6 Accrued interest on financial debts 19 — Contingent considerations (2) 35 19 Other payables 85 20 Total provisions and other current liabilities 1,038 880 (1) Note 19 to these Consolidated Financial Statements provides additional disclosures related to legal provisions. (2) Note 18 to these Consolidated Financial Statements provides additional disclosures related to contingent consideration. Provisions and accruals are based upon management's best estimate and adjusted for actual experience. Such adjustments to the historic estimates have not been material. Accruals for deductions from revenue The following table shows the movement of the accruals for deductions from revenue: ($ millions) 2019 2018 2017 January 1 194 213 182 Additions 662 603 619 Payments/utilizations (646 ) (613 ) (601 ) Changes in offset against gross trade receivables 1 2 7 Currency translation effects 1 (11 ) 6 December 31 212 194 213 Restructuring provisions The following table shows the movement of the restructuring provisions: ($ millions) 2019 2018 2017 January 1 8 3 13 Additions 32 13 — Cash payments (10 ) (7 ) (6 ) Releases (2 ) (2 ) (4 ) Currency translation effects — 1 — December 31 28 8 3 In 2019, additions to restructuring provisions of $32 million were related to the multi-year transformation program announced by Alcon on November 19, 2019. The additions to restructuring provisions in 2019 were related to accrued severance for the associates whose positions will be eliminated. In 2018 , additions to restructuring provisions of $13 million were related to initiatives aimed at improving the efficiency and agility of Alcon's operating model. In 2017, no additions to restructuring provisions were recorded. Alcon continued initiatives to realign its operations to focus on the surgical and vision care business after the opthamology pharmaceutical business transfer to the Novartis Innovative Medicines Division. |
Provisions and other current li
Provisions and other current liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Provisions and other current liabilities | Provisions and other non-current liabilities The below table provides details related to Provisions and other non-current liabilities as of December 31, 2019 , and 2018 . ($ millions) 2019 2018 Accrued liability for employee benefits: Defined benefit pension plans (1) 291 254 Other long-term employee benefits and deferred compensation 140 104 Other post-employment benefits (1) 423 345 Provisions for product liabilities, governmental investigations and other legal matters — — Contingent consideration (2) 208 143 Other non-current liabilities 106 67 Total provisions and other non-current liabilities 1,168 913 (1) Note 23 to these Consolidated Financial Statements provides additional disclosures related to post-employment benefits. (2) Note 18 to these Consolidated Financial Statements provides additional disclosures related to contingent consideration. Alcon believes that its total provisions are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities in this area, Alcon may incur additional costs beyond the amounts provided. Management believes that such additional amounts, if any, would not be material to Alcon's financial condition but could be material to the results of operations or cash flows in a given period. Provisions for product liabilities, governmental investigations and other legal matters Alcon has established provisions for certain product liabilities, governmental investigations and other legal matters, where a potential cash outflow is probable and a reliable estimate can be made of the amount of the outflow. These provisions represent the current best estimate of the total financial effect for the matters described below and for other less significant matters. Potential cash outflows reflected in a provision may be fully or partially off-set by insurance in certain circumstances. Alcon has not established provisions for potential damage awards for certain additional legal claims if Alcon currently believes that a payment is either not probable or cannot be reliably estimated. A number of other legal matters are in such early stages or the issues presented are such that Alcon has not made any provisions since it cannot currently estimate either a potential outcome or the amount of any potential losses. For these reasons, among others, Alcon generally is unable to make a reliable estimate of possible loss with respect to such cases. It is therefore not practicable to provide information about the potential financial impact of those cases. There might also be cases for which Alcon was able to make a reliable estimate of the possible loss or the range of possible loss, but Alcon believes that publication of such information on a case-by-case basis would seriously prejudice Alcon's position in ongoing legal proceedings or in any related settlement discussions. Accordingly, in such cases, information has been disclosed with respect to the nature of the contingency, but no disclosure is provided as to an estimate of the possible loss or range of possible loss. Note 26 contains additional information on contingencies. Summary of significant legal proceedings Under the Separation and Distribution Agreement Alcon entered into with Novartis in connection with the separation and the Spin-off, Alcon and Novartis agreed, subject to certain conditions and except to the extent otherwise described below with respect to any matter, to indemnify the other party and its directors, officers, associates and other representatives against any pending or future liabilities or claims that constitute either a Novartis Group liability, in the case of Novartis, or an Alcon liability, in the case of Alcon, under the terms of the Separation and Distribution Agreement, based on whether such claim or liability relates to the Novartis business and products or Alcon's respective business and products. A number of Alcon companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time, including proceedings regarding product liability, sales and marketing practices, commercial disputes, employment, and wrongful discharge, antitrust, securities, health and safety, environmental, tax, international trade, privacy, and intellectual property matters. As a result, Alcon may become subject to substantial liabilities that may not be covered by insurance and could affect our business, financial position and reputation. While Alcon does not believe that any of these legal proceedings will have a material adverse effect on its financial position, litigation is inherently unpredictable and large judgments sometimes occur. As a consequence, Alcon may in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations or cash flow. The following is a summary as of February 25, 2020 of significant legal proceedings of the Alcon business to which Alcon or its subsidiaries are a party. Southern District of New York / Western District of New York healthcare fraud investigation In 2011, Alcon received a subpoena from the United States Department of Health & Human Services relating to an investigation into allegations of healthcare fraud and potential off-label promotion of certain products. The subpoena requests the production of documents relating to marketing practices and the remuneration of healthcare providers in connection with surgical equipment and certain Novartis products (Vigamox®, Nevanac®, Omnipred®, Econopred®). Alcon is cooperating with this investigation. Asia / Russia investigation In 2017 and 2018 , Alcon and Novartis, as well as certain present and former executives and associates of Alcon and Novartis, received document requests and subpoenas from the US Department of Justice ("DoJ") and the US SEC requesting information concerning Alcon accounting, internal controls and business practices in Asia and Russia, including revenue recognition for surgical equipment and related products and services and relationships with third party distributors, both before and after Alcon was acquired by Novartis. Alcon is cooperating with this investigation. Under the Separation and Distribution Agreement, Novartis must indemnify Alcon in respect of defined direct monetary liabilities relating to the current scope of the ongoing investigation by the DoJ and the SEC relating to certain business practices in Asia and Russia and related accounting treatment. Contact lenses class actions Since the first quarter of 2015, more than 50 class action complaints have been filed in several courts across the US naming as defendants contact lens manufacturers, including Alcon, and alleging violations of federal antitrust law, as well as the antitrust, consumer protection and unfair competition laws of various states, in connection with the implementation of unilateral price policies by the defendants in the sale of contact lenses. The cases have been consolidated in the Middle District of Florida by the Judicial Panel on Multidistrict Litigation and the claims are being vigorously contested. MIVS platform patent infringement investigation In June 2015, Johns Hopkins University ("JHU") filed a patent infringement lawsuit against certain Alcon entities alleging that the use of certain Alcon surgical products, principally by third parties, infringes a patent directed to certain methods of ocular surgery. In March 2019, Alcon and JHU entered into a settlement agreement in full settlement of all claims relating to this proceeding. LenSx laser system and WaveLight FS200 laser patent infringement litigations Two consolidated cases were filed against Alcon claiming that the LenSx laser system and WaveLight FS200 femtosecond laser infringe two US patents expiring in 2018 and 2030. The district court entered summary judgment for Alcon, and the plaintiff appealed to the US Court of Appeals for the Federal Circuit. The Court of Appeals affirmed the district court’s judgment for Alcon on August 8, 2019. TCPA matter In April 2016, a putative class action lawsuit was filed in Illinois federal court alleging that the defendants, Alcon and Novartis Pharmaceuticals Corporation ("NPC"), sent unsolicited facsimiles in violation of the Telephone Consumer Protection Act, and seeking to certify a representative putative nationwide class of affected consumers. The claims are being vigorously contested. Product liability, governmental investigations and other legal matters provision movements ($ millions) 2019 2018 2017 January 1 42 49 9 Additions to provisions — 1 55 Cash payments (40 ) (1 ) (6 ) Releases of provisions (2 ) (7 ) (9 ) December 31 — 42 49 Less current portion — (42 ) (43 ) Non-current provisions for product liabilities, governmental investigations and other legal matters at December 31 — — 6 Alcon believes that its total provisions for investigations, product liability, arbitration and other legal matters are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities, there can be no assurance that additional liabilities and costs will not be incurred beyond the amounts provided. Provisions and other current liabilities The following table provides details related to Provisions and other current liabilities as of December 31, 2019 and 2018: ($ millions) 2019 2018 Taxes other than income taxes 81 57 Restructuring provisions 28 8 Accrued expenses for goods and services received but not invoiced 79 71 Accruals for royalties 10 6 Accruals for deductions from revenue 212 194 Accruals for compensation and benefits including social security 382 363 Deferred income 97 94 Provisions for product liabilities, governmental investigations and other legal matters (1) — 42 Accrued share-based payments 10 6 Accrued interest on financial debts 19 — Contingent considerations (2) 35 19 Other payables 85 20 Total provisions and other current liabilities 1,038 880 (1) Note 19 to these Consolidated Financial Statements provides additional disclosures related to legal provisions. (2) Note 18 to these Consolidated Financial Statements provides additional disclosures related to contingent consideration. Provisions and accruals are based upon management's best estimate and adjusted for actual experience. Such adjustments to the historic estimates have not been material. Accruals for deductions from revenue The following table shows the movement of the accruals for deductions from revenue: ($ millions) 2019 2018 2017 January 1 194 213 182 Additions 662 603 619 Payments/utilizations (646 ) (613 ) (601 ) Changes in offset against gross trade receivables 1 2 7 Currency translation effects 1 (11 ) 6 December 31 212 194 213 Restructuring provisions The following table shows the movement of the restructuring provisions: ($ millions) 2019 2018 2017 January 1 8 3 13 Additions 32 13 — Cash payments (10 ) (7 ) (6 ) Releases (2 ) (2 ) (4 ) Currency translation effects — 1 — December 31 28 8 3 In 2019, additions to restructuring provisions of $32 million were related to the multi-year transformation program announced by Alcon on November 19, 2019. The additions to restructuring provisions in 2019 were related to accrued severance for the associates whose positions will be eliminated. In 2018 , additions to restructuring provisions of $13 million were related to initiatives aimed at improving the efficiency and agility of Alcon's operating model. In 2017, no additions to restructuring provisions were recorded. Alcon continued initiatives to realign its operations to focus on the surgical and vision care business after the opthamology pharmaceutical business transfer to the Novartis Innovative Medicines Division. |
Consolidated statement of cash
Consolidated statement of cash flows - additional details | 12 Months Ended |
Dec. 31, 2019 | |
Cash Flow Statement [Abstract] | |
Consolidated statements of cash flows - additional details | Consolidated statements of cash flows - additional details The Consolidated Statements of Cash Flows were prepared in accordance with IAS 7, Statement of Cash Flows. The below tables provide additional detail supporting select line items in the Consolidated Statements of Cash Flows. 21.1 Depreciation, amortization, impairments and fair value adjustments ($ millions) 2019 2018 2017 Property, plant & equipment 275 241 215 Right-of-use assets 66 — — Intangible assets 1,084 1,397 1,090 Financial assets 31 (16 ) 29 Total 1,456 1,622 1,334 21.2 Change in net current assets and other operating cash flow items ($ millions) 2019 2018 2017 (Increase) in inventories (108 ) (150 ) (87 ) (Increase)/decrease in trade receivables (115 ) 53 (54 ) Increase in trade payables 84 44 48 Net change in other current assets (26 ) 83 87 Net change in other current liabilities 117 50 42 Total (48 ) 80 36 21.3 Acquisitions of businesses, net ($ millions) 2019 2018 2017 Net assets recognized as a result of business combinations (418 ) (286 ) (124 ) Payables contingent consideration 135 102 54 Other payments — (55 ) Cash flows (283 ) (239 ) (70 ) Notes 4 and 22 to these Consolidated Financial Statements provide further information regarding acquisitions of businesses. All acquisitions were for cash. 21.4 Reconciliation of assets and liabilities arising from financing activities Financial Assets Financial Liabilities ($ millions) Other financial receivables from former parent Non-current financial debts Current financial debts Other financial liabilities to former parent Total January 1, 2019 (39 ) — 47 67 114 Proceeds from non-current financial debts, net of issuance costs 3,724 3,724 Repayment of non-current financial debts (509 ) (509 ) Proceeds from Bridge Facility, net of issuance costs 1,495 1,495 Repayment of Bridge Facility (1,500 ) (1,500 ) Change in current financial debts 202 202 Non-cash changes in derivatives and other fair value adjustments 2 20 22 Change in other financial receivables from former parent 39 Change in other financial liabilities to former parent (67 ) (67 ) Currency translation effects 1 (3 ) (2 ) December 31, 2019 — 3,218 261 — 3,479 Financial Assets Financial Liabilities ($ millions) Other financial receivables from former parent Non-current financial debts Current financial debts Other financial liabilities to former parent Total January 1, 2018 (65 ) 84 65 46 195 Change in current financial debts (6 ) (6 ) Change in other financial receivables from former parent 26 Change in other financial liabilities to former parent 21 21 Non-cash change in finance lease obligation 5 5 Currency translation effects (12 ) (12 ) Reclassification from non-current financial debts to lease liabilities (89 ) (89 ) December 31, 2018 (39 ) — 47 67 114 |
Acquisitions of businesses
Acquisitions of businesses | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations1 [Abstract] | |
Acquisitions of businesses | Significant transactions Significant transactions in 2019 Refinancing of Bridge Facility and Facility A financial debts On September 23, 2019, Alcon through its wholly-owned subsidiary, Alcon Finance Corporation ("AFC"), refinanced $2 billion of the bridge and term loans, which had been issued in April 2019, with $500 million of 2.750% senior notes due 2026, $1 billion of 3.000% senior notes due 2029, and $500 million of 3.800% senior notes due 2049. The bridge and term loans, notes, and refinancing are described in Note 17 of these Consolidated Financial Statements. Completion of Spin-off from Novartis through a dividend in kind distribution to Novartis shareholders The Spin-off was executed on April 9, 2019 as described in Note 1 . The below transactions occurred in April 2019, immediately preceding the Spin-off. On April 2, 2019, Alcon borrowed $3.2 billion against the bridge and other term loans which were executed on March 6, 2019 and are described in Note 17 of these Consolidated Financial Statements. These borrowings increased the Company's third party financial debts to $3.5 billion at the date of Spin-off. Through a series of intercompany transactions, Alcon then paid approximately $3.1 billion in cash to Novartis and its affiliates prior to the Spin-off, decreasing Alcon's net assets to approximately $20.0 billion at the date of Spin-off. Surgical-Acquisition of PowerVision, Inc. On March 13, 2019, Alcon acquired 100% of the outstanding shares and equity of PowerVision, Inc. ("PowerVision"), a privately-held, US-based company focused on developing accommodative, implantable intraocular lenses. This technology allows the intraocular lens to respond to natural muscular movements in the eye to alter shape and focus. The PowerVision acquisition was executed as part of Alcon's commitment to innovation in advanced technology intraocular lenses ("AT-IOLs"). The fair value of the total purchase consideration was $424 million . This amount consisted of an initial cash payment of $289 million and the fair value of the probability weighted contingent consideration of $135 million due to PowerVision shareholders, which they are eligible to receive upon the achievement of specified regulatory and commercialization milestones. The purchase price allocation resulted in net identifiable assets of $418 million , which consisted of in-process research & development intangible assets of $505 million , a net deferred tax liability of $93 million , and other net assets of $6 million . Goodwill of $6 million was also recognized which is attributable to the assembled workforce. Cash paid for the acquisition, net of cash acquired, was $283 million . The 2019 results of operations since the date of acquisition and transaction costs for the acquisition were not material. Significant transactions in 2018 Surgical-Acquisition of TrueVision Systems, Inc. On December 19, 2018, Alcon acquired 100% of the outstanding shares and equity of TrueVision Systems, Inc. ("TrueVision"), a privately held US-based company. TrueVision developed the 3D scope technology currently used in the commercially marketed Alcon product NGENUITY . This technology allows retina surgery specialists to have a 3D visualization of the back of the eye with greater depth and detail than traditional microscopes. The fair value of the total purchase consideration was $146 million . This amount consists of an initial cash payment of $110 million and the fair value of the probability weighted contingent consideration of $36 million due to TrueVision shareholders, which they are eligible to receive upon the achievement of specified development and commercialization milestones. The purchase price allocation resulted in net identifiable assets of $144 million , which consisted of intangible assets of $172 million , net deferred tax liability of $29 million and other net assets of $1 million . Goodwill of $2 million was also recognized which is attributable to the assembled workforce. The 2018 results of operations following the date of acquisition were not material. Vision Care-Acquisition of Tear Film Innovations, Inc. On December 17, 2018, Alcon acquired 100% of the outstanding shares and equity of Tear Film Innovations, Inc. ("Tear Film"), a privately held US-based company. Tear Film is the manufacturer of the iLux device, an innovative therapeutic device used to treat Meibomian Gland Dysfunction, a leading cause of dry eye. The fair value of the total purchase consideration was $145 million . This amount consists of an initial cash payment of $79 million and the fair value of the probability weighted contingent consideration of $66 million due to Tear Film previous owners, which they are eligible to receive upon the achievement of specified development and commercialization milestones. The purchase price allocation resulted in net identifiable assets of $143 million , which consisted of intangible assets of $174 million , net deferred tax liability of $37 million , cash of $5 million and other net assets of $1 million . Goodwill of $2 million was also recognized which is attributable to the assembled workforce. The 2018 results of operations following the date of acquisition were not material. Significant transactions in 2017 Surgical-Acquisition of ClarVista Medical, Inc. On September 20, 2017, Alcon acquired 100% of the outstanding shares and equity of ClarVista Medical, Inc., a privately held California, US-based company focused on developing the HARMONI Modular IOL System, a novel intraocular lens ("IOL") used to restore vision after cataract surgery. The fair value of the total purchase consideration was $125 million . This amount consists of an initial cash payment of $71 million and the net present value of the contingent consideration of $54 million due to ClarVista shareholders, which they are eligible to receive upon the achievement of specified development and commercialization milestones. The purchase price allocation resulted in net identifiable assets of $123 million , which consisted of intangible assets of $178 million , deferred tax assets of $8 million , cash and cash equivalents of $1 million and deferred tax liabilities of $64 million . Goodwill of $2 million was also recognized which is attributable to the assembled workforce. The 2017 results of operations since the date of acquisition were not material. Acquisitions of businesses Fair value of assets and liabilities arising from acquisitions ($ millions) 2019 2018 2017 Property, plant & equipment 1 1 — Currently marketed products — 346 — Acquired research & development 505 — 178 Deferred tax assets 28 12 8 Inventories — 3 — Trade receivables and other current assets — 2 — Cash and cash equivalents 6 5 1 Deferred tax liabilities (121 ) (78 ) (64 ) Trade payables and other liabilities (1 ) (4 ) — Net identifiable assets acquired 418 287 123 Acquired liquidity (6 ) (5 ) (1 ) Goodwill 6 4 2 Net assets recognized as a result of business combinations 418 286 124 Note 4 of these Consolidated Financial Statements details significant acquisitions of businesses, which were PowerVision in 2019 , TrueVision and Tear Film in 2018 and ClarVista in 2017 . No goodwill from 2019 , 2018 or 2017 is tax-deductible. |
Post-employment benefits for as
Post-employment benefits for associates | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Post-employment benefits for associates | Post-employment benefits for associates Defined benefit plans In addition to the legally required social security schemes, Alcon has sponsored numerous independent pension and other post-employment benefit plans and participates in plans of Novartis. In most cases, these plans are externally funded in entities that are legally separate from Alcon. For certain subsidiaries, however, no independent plan assets exist for the pension and other post-employment benefit obligations of associates. In these cases the related unfunded liability is included in the consolidated balance sheet. The value of the post-employment benefits promised under the pension and other post-employment benefit plans is represented by the defined benefit obligation ("DBO"), which is measured based on the projected unit credit method ("PUC"). Independent actuaries reappraise the DBOs of all major pension and other post-employment benefit plans annually. Plan assets are recognized at fair value. The major plans are based in Switzerland, the United States, Germany, and the United Kingdom. They represent 87% of Alcon's total DBO. Details of the plans in those significant countries are provided below. The pension plans in Switzerland represent the most significant portion of Alcon's total DBO and the largest component of Alcon's total plan assets. The principal plans in Switzerland are funded. Following the Spin-off, all Alcon Swiss associates are continuing to participate in the Novartis pension funds in which they were previously participating for a temporary period. It is expected that Alcon's employee benefit obligation will be transferred to an Alcon sponsored pension arrangement in early 2021. For the principal plans, active insured members born on or after January 1, 1956, or having joined the plans after December 31, 2010, their benefits are partially linked to the contributions paid into the plan. Certain features of Swiss pension plans required by law preclude the plans from being categorized as defined contribution plans. These factors include a minimum interest guarantee on retirement savings accounts, a pre-determined factor for converting the accumulated savings account balance into a pension and embedded death and disability benefits. All benefits granted under Swiss-based principal pension plans are vested, and Swiss legislation prescribes that the employer has to contribute a fixed percentage of an associate's pay to an external pension fund. Additional employer contributions may be required whenever the plan's statutory funding ratio falls below a certain level. The associate also contributes to the plan. The pension plans are run by separate legal entities, each governed by a board of trustees, that, for the principal plans, consists of representatives nominated by Alcon's Former Parent and the active insured associates. The boards of trustees are responsible for the plan design and asset investment strategy. The United States pension plans represent the second largest component of Alcon's total pension DBO and the third largest component of Alcon's total plan assets. The principal plans (Qualified Plans) are funded, whereas the plan providing additional benefits for executives (Defined Benefit Restoration Plan) is unfunded. Employer contributions are required for Qualified Plans whenever the statutory funding ratio falls below a certain level. Furthermore, associates in the United States are covered under other post-employment benefit plans which represent 99% of the total DBO for other post-employment benefit plans. These benefits in the US primarily consist of post-employment healthcare which has been closed to new members since 2015. Part of the costs of these plans is reimbursable under the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. There is no statutory funding requirement for these plans. The major pension arrangements in Germany are governed by the Occupational Pensions Act ("BetrAVG") and represent the third largest component of Alcon's total pensions DBO. The plans are partly funded by a Contractual Trust arrangement or direct insurances. The employer is responsible for contributing the premiums to the insurances and paying certain benefits when they fall due. All plans are closed for new entrants and the benefits are fully vested for all participants. For some participants the benefits are based on final salary and length of employment, and for others the benefit is earned each year based on the current salary in the year of service. Associates do not contribute towards the cost of the benefits. The pension plans in the United Kingdom represent the fourth largest component of Alcon's total DBO and the second largest component of Alcon's total plan assets. The Alcon United Kingdom Pension Scheme is governed and administered by a board of trustees in accordance with its Trust Deed. United Kingdom legislation requires that pension schemes are funded prudently (i.e., to a level in excess of the "best estimate" expected cost of providing benefits). Funding is assessed on a triennial basis using (prudent) assumptions agreed by the board of trustee(s) and Alcon. The board of trustees are responsible for jointly agreeing with Alcon the level of contributions needed to eliminate any shortfall over a reasonable period of time, typically not exceeding 10 years . Under the governing documentation, if a surplus remains once liabilities have been settled it would be refunded to Alcon. One of Alcon's pension plans has a surplus that is not recognized, on the basis that future economic benefits are not available to the entity in the form of a reduction in future contributions or a cash refund. The following tables summarize the funded and unfunded DBO for pension and other post-employment benefit plans of Alcon associates at December 31, 2019 and 2018 : Pension plans Other post-employment benefit plans ($ millions) 2019 2018 2019 2018 Benefit obligation at January 1 662 671 385 382 Current service cost 22 28 8 11 Interest cost 13 15 15 13 Past service costs and settlements 2 — — — Administrative expenses 1 1 — — Remeasurement losses/(gains) arising from changes in financial assumptions 71 (17 ) 52 (3 ) Remeasurement losses/(gains) arising from changes in demographic assumptions 6 1 (1 ) 6 Experience-related remeasurement (gains)/losses (5 ) 2 (20 ) (11 ) Currency translation effects 1 (15 ) — — Benefit payments (15 ) (29 ) (16 ) (13 ) Contributions of associates 5 4 — — Effect of acquisitions, divestments or transfers (40 ) 1 — — Benefit obligation at December 31 723 662 423 385 Fair value of plan assets at January 1 424 445 40 65 Interest income 8 9 1 2 Return on plan assets excluding interest income 36 (13 ) 3 (3 ) Currency translation effects 7 (9 ) — — Employer contributions 21 19 (28 ) (11 ) Contributions of associates 5 4 — — Settlements — (1 ) — — Benefit payments (15 ) (29 ) (16 ) (13 ) Effect of acquisitions, divestments or transfers (35 ) (1 ) — — Fair value of plan assets at December 31 451 424 — 40 Funded status (272 ) (238 ) (423 ) (345 ) Limitation on recognition of fund surplus at January 1 (4 ) (6 ) Change in limitation on recognition of fund surplus (including exchange rate differences) (2 ) 2 Limitation on recognition of fund surplus at December 31 (6 ) (4 ) Net liability in the balance sheet at December 31 (278 ) (242 ) (423 ) (345 ) The reconciliation of the net liability from January 1 to December 31 is as follows: Pension plans Other post-employment benefit plans ($ millions) 2019 2018 2019 2018 Net liability at January 1 (242 ) (232 ) (345 ) (317 ) Current service cost (22 ) (28 ) (8 ) (11 ) Net interest expense (5 ) (6 ) (14 ) (11 ) Administrative expenses (1 ) (1 ) — — Past service costs and settlements (2 ) (1 ) — — Remeasurements (36 ) 1 (28 ) 5 Currency translation effects 6 6 — — Employer contributions 21 19 (28 ) (11 ) Effect of acquisitions, divestments or transfers 5 (2 ) — — Change in limitation on recognition of fund surplus (2 ) 2 — — Net liability at December 31 (278 ) (242 ) (423 ) (345 ) Amounts recognized in the balance sheet Prepaid benefit cost 13 12 — — Accrued benefit liability (291 ) (254 ) (423 ) (345 ) The following tables show a breakdown of the DBO for pension plans by geography and type of member and the breakdown of plan assets into the geographical locations in which they are held: 2019 ($ millions) Switzerland United Germany United Rest of Total Benefit obligation at December 31 244 127 109 98 145 723 Thereof: unfunded plans 47 29 — — 23 99 Thereof: unfunded portion of funded plans (1) 65 18 92 — 17 192 By type of member Active 216 40 61 — 123 440 Deferred pensioners 12 46 27 54 12 151 Pensioners 16 41 21 44 10 132 Fair value of plan assets at December 31 132 80 17 109 113 451 Funded status (112 ) (47 ) (92 ) 11 (32 ) (272 ) (1) Excludes $8 million of Prepaid benefit costs and the limitation on recognition of fund surplus. 2018 ($ millions) Switzerland United Germany United Rest of Total Benefit obligation at December 31 201 111 94 86 170 662 Thereof: unfunded plans 49 21 — — 18 88 Thereof: unfunded portion of funded plans (1) 46 23 78 — 19 166 By type of member Active 166 36 56 — 148 406 Deferred pensioners 18 32 22 69 9 150 Pensioners 17 43 16 17 13 106 Fair value of plan assets at December 31 106 67 16 98 137 424 Funded status (95 ) (44 ) (78 ) 12 (33 ) (238 ) (1) Excludes $4 million of Prepaid benefit cost and the limitation on recognition of fund surplus. The following table shows the principal weighted average actuarial assumptions used for calculating defined benefit plans and other post-employment benefits of Alcon associates: Pension plans Other post-employment 2019 2018 2019 2018 Discount rate 1.7 % 2.2 % 3.3 % 4.3 % Expected rate of pension increase 1.2 % 1.1 % Expected rate of salary increase 3.3 % 2.8 % Interest on savings account 1.0 % 0.8 % Current average life expectancy for a 65-year-old male (in years) 21 21 21 21 Current average life expectancy for a 65-year-old female (in years) 24 23 23 23 Changes in the aforementioned actuarial assumptions can result in significant volatility in the accounting for the pension plans in the Consolidated Financial Statements. This can result in substantial changes in Alcon's other comprehensive income, non-current liabilities and prepaid pension assets. The DBO is significantly impacted by assumptions related to the rate used to discount the actuarially determined post-employment benefit liability. This rate is based on yields of high-quality corporate bonds in the country of the plan. Decreasing corporate bond yields decrease the discount rate, so that the DBO increases and the funded status decreases. In Switzerland, an increase in the DBO due to lower discount rates is slightly offset by lower future benefits expected to be paid on the associate's savings account where the assumption on interest accrued changes in line with the discount rate. The impact of decreasing interest rates on a plan's assets is more difficult to predict. A significant part of the plan assets is invested in bonds. Bond values usually rise when interest rates decrease and may therefore partially compensate for the decrease in the funded status. Furthermore, pension assets also include significant holdings of equity instruments. Share prices tend to rise when interest rates decrease and therefore often counteract the negative impact of the rising DBO on the funded status (although the correlation of interest rates with equities is not as strong as with bonds, especially in the short term). The expected rate for pension increases significantly affects the DBO of most plans in Switzerland, Germany and the United Kingdom. Such pension increases also decrease the funded status, although there is no strong correlation between the value of the plan assets and pension/inflation increases. Assumptions regarding life expectancy significantly impact the DBO. An increase in longevity increases the DBO. There is no offsetting impact from the plan assets, as no longevity bonds or swaps are held by the pension funds. Generational mortality tables are used where this data is available. The following table shows the sensitivity of the defined benefit pension and other post-employment benefit obligations to the principal actuarial assumptions as of December 31, 2019 : ($ millions) Change in 2019 year-end 25 basis point increase in discount rate (43 ) 25 basis point decrease in discount rate 46 1 year increase in life expectancy 32 25 basis point increase in rate of pension increase 15 25 basis point decrease in rate of pension increase (27 ) 25 basis point increase of interest on savings account 2 25 basis point decrease of interest on savings account (2 ) 25 basis point increase in rate of salary increase 6 25 basis point decrease in rate of salary increase (6 ) The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes of the assumptions may be correlated. When calculating the sensitivity of the DBO to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the PUC method at the end of the reporting period) has been applied as when calculating the net liability recognized in the Consolidated Balance Sheets. The healthcare cost trend rate assumptions used for other post-employment benefits are as follows: 2019 2018 2017 Healthcare cost trend rate assumed for next year 6.5 % 7.0 % 6.5 % Rate to which the cost trend rate is assumed to decline 4.5 % 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2028 2028 2025 The following table shows the weighted average plan asset allocation of funded defined benefit pension plans at December 31, 2019 , and 2018 : Pension plans (as a percentage) Long-term Long-term 2019 2018 Equity securities 15 40 32 28 Debt securities 20 60 42 43 Real estate 5 20 7 9 Alternative investments 0 20 15 17 Cash and other investments 0 15 4 3 Total 100 100 Cash and most of the equity and debt securities have a quoted market price in an active market. Real estate and alternative investments, which include hedge fund and private equity investments, usually do not have a quoted market price. The strategic allocation of assets of the different pension plans is determined with the objective of achieving an investment return that, together with employer contributions and contributions of associates, is sufficient to maintain reasonable control over the various funding risks of the plans. Based upon the market and economic environments, actual asset allocations may temporarily be permitted to deviate from policy targets. The weighted average duration of the DBO is 15.6 years (2018: 16.9 years ). Alcon's ordinary contribution to the various pension plans is based on the rules of each plan. Additional contributions are made whenever required by statute or law (i.e., usually when statutory funding levels fall below pre-determined thresholds). The following table summarizes expected future cash flows for pension and other post-employment benefit plans as of December 31, 2019 : ($ millions) Pension plans Other Employer contributions 2020 (estimated) 14 — Expected future benefit payments 2020 41 21 2021 26 22 2022 27 24 2023 27 25 2024 32 26 2025-2029 169 133 Defined contribution plans In many subsidiaries, associates are covered by defined contribution plans. Contributions charged to the 2019 Consolidated Income Statement for the defined contribution plans were $128 million ( 2018 : $105 million ; 2017 : $97 million ). |
Equity-based compensation
Equity-based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
Equity-based compensation | Equity-based compensation For the year ended December 31, 2019 , Alcon recorded equity-based compensation expense of $114 million ( 2018 : $93 million , 2017 : $71 million ). Liabilities from cash-settled equity-based compensation plans were $10 million as of December 31, 2019 ( 2018 : $6 million ). On April 9, 2019, Alcon adopted various equity-based 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. Prior to the Spin-off, Alcon associates participated in Novartis equity-based participation plans, which included stock options, RSUs, PSUs, RSAs and certain share savings ownership plans. Such awards were settled in shares or options of the Former Parent. For periods prior to the Spin-off, the Consolidated Income Statements reflect the compensation expense for the Novartis’s equity-based incentive plans in which Alcon associates participated. Replacement awards Concurrent with the Spin-off, certain outstanding Novartis awards granted to Alcon associates under Novartis’ equity-based incentive plans vested in Novartis equity on a pro rata basis, in proportion to the amount of the vesting period completed. The remaining unvested Novartis awards were replaced and restored with Alcon awards as governed by the Alcon equity restoration plan with terms and vesting schedules substantially similar to the replaced Novartis awards. The pro rata vesting of Novartis awards and replacement of forfeited unvested Novartis awards with Alcon awards represents a modification under IFRS 2, Share-based Payment . Alcon measured the fair value of the awards immediately prior to and subsequent to the modification and concluded that no incremental fair value was provided to associates. Accordingly, Alcon continues to recognize as an expense the amount of unrecognized compensation cost of the original awards over the remaining vesting periods. Alcon issued 4.2 million unvested equity-based awards in connection with the modification at the time of the the Spin-off. The replacement awards consist primarily of RSUs and PSUs, and vest over a period consistent with the original vesting schedule of the awards which they replaced. In addition to the replacement awards, Alcon has granted additional equity-based awards under the newly-established Alcon incentive plans which were also granted in the form of RSUs and PSUs that will settle in Alcon Inc. shares upon vesting. Summary of unvested share movements Alcon granted 0.7 million unvested equity-based awards subsequent to the Spin-off. There were 4.7 million unvested equity-based Alcon awards outstanding as of December 31, 2019 after giving effect to 0.1 million equity-based awards vested and 0.1 million awards forfeited during the period. The below table summarizes unvested share movements for all Alcon equity-based incentive plans from the Spin-off through December 31, 2019: 2019 Number of Weighted average Fair value in Replacement awards issued at Spin-off (1) 4,222 n/a 212,367 Granted Restricted awards 625 56.1 35,037 Performance awards 117 58.0 6,782 Vested (1) (108 ) n/a (5,432 ) Forfeited (1) (114 ) n/a (5,734 ) Unvested shares at December 31 4,742 51.2 243,020 (1) Based on estimated fair value per share at the time of Spin-off. The remaining weighted-average vesting period of unvested equity-based awards as of December 31, 2019 was 1.5 years . Alcon equity-based incentive plans The table below discloses the number of shares authorized under the plans as of December 31, 2019: (thousands) 2019 Long-term Incentive Plan 20,000 Deferred Bonus Stock Plan 1,500 Swiss Employee Share Ownership Plan 475 Other share savings plans 275 Authorized as of December 31, 2019 22,250 Long-Term Incentive Plan ("LTIP") - Restricted Stock Units and Restricted Stock Awards Under Alcon's LTIP, certain eligible executives and management personnel may receive grants of RSUs and RSAs (together "Restricted awards"). The awards generally vest on the third anniversary of the award and are generally forfeited if the employment relationship with Alcon terminates prior to vesting. Recipients of RSU awards do not have any shareholder rights, such as voting or dividend rights, until the shares are delivered. Alcon associates receiving grants of RSAs are entitled to the dividend equivalents that may be declared and paid over the vesting period only if the associates vest in such award. For the periods prior to the Spin-off, Alcon associates participated in the Former Parent's "Select" plan. The Company's LTIP plan is substantially similar to and replaced the Former Parent plan. LTIP - Performance Stock Units The Alcon CEO and Alcon Top Leaders ("ATLs") participate in Alcon's long-term performance program. PSUs granted under the LTIP each convert to one unrestricted Alcon Inc. share at vesting, subject to the achievement of performance measures. PSUs awarded to plan participants are granted at target incentive ranges from 30% to 280% of base compensation and vest over a three -year period. The payout between 0% and 200% of target is dependent upon four equally weighted performance metrics which are determined at the onset of the performance period by the Alcon Inc. Board of Directors. The metrics include cumulative annual growth rate of Net sales, Core EPS, market share, and innovation. The Alcon Inc. Board of Directors and the Compensation, Governance and Nomination Committee assess the performance against the defined measures and approve the final payout. PSUs granted under the performance plan do not carry voting rights, but do carry dividend equivalents that are paid in Alcon Inc. shares at vesting, provided participants remain associates of Alcon. For the periods prior to the Spin-off, Alcon associates participated in the Former Parent's Long-Term Performance Plan ("LTPP") and Long-Term Relative Performance Plan ("LTRPP"), which were substantially similar to Alcon's LTIP performance program. Deferred Bonus Stock Plan ("DBSP") The Alcon CEO's annual incentive is paid 50% in cash in the year following the performance period, and 50% in Alcon Inc. RSUs or RSAs. ATLs receive 70% of their annual incentive in cash and 30% in Alcon Inc. RSUs or RSAs. The RSUs and RSAs are granted in first quarter of the year following the performance period, which are deferred and restricted for three years . Each RSU is converted into one Alcon Inc. share at the vesting date. RSUs granted under the DBSP do not carry any dividend, dividend equivalent or voting rights. Executives in certain countries may elect to also receive some or all of their cash incentive in shares or share units that are not subject to vesting conditions. The Alcon DBSP is substantially similar to and replaces the Annual Incentive plan, which existed in the periods prior to the Spin-off. Swiss Employee Share Ownership Plan and other share savings plans Alcon associates in certain countries are encouraged to invest their annual incentive in a share savings plans. Under the share savings plans, participants may elect to receive some or all of their annual incentive in Alcon Inc. shares in lieu of cash. Subject to plan rules and limitations, as a reward for their participation in the share savings plans, at no additional cost to the participant, Alcon may fully or partially match their investments in shares after a holding period of three or five years . Prior to the Spin-off, Alcon associates participated in the Former Parent's share savings plans, which were substantially similar to and replaced by Alcon's share savings plans. Equity-based incentive plans under Former Parent The below table summarizes unvested share movements for all plans under the Former Parent for the year ended December 31, 2018 (Novartis AG RSAs, RSUs, and PSUs): 2018 Number of Weighted average fair value at grant date in $ Fair value in Unvested shares at January 1 2,800 74.4 208,300 Granted Annual incentive 168 83.7 14,062 Share savings plans 109 85.5 9,320 Select North America 689 77.9 53,673 Select outside North America 141 79.8 11,252 Long-Term Performance Plan 316 88.4 27,934 Long-Term Relative Performance Plan 37 51.2 1,894 Other share awards 205 83.1 17,036 Vested (814 ) 93.0 (75,702 ) Forfeited (208 ) 80.4 (16,723 ) Unvested shares at December 31 3,443 72.9 251,046 Until 2013, participants in the Former Parent's "Select" plan could also elect to receive part or all of their grant in the form of Novartis AG tradable share options. Novartis AG tradable share options expire on their tenth anniversary from the grant date. Each Novartis AG tradable share option entitles the holder to purchase after vesting (and before the tenth anniversary from the grant date) one Novartis AG share at a stated exercise price that equals the closing market price of the underlying Novartis AG share at the grant date. Options under Novartis equity plan "Select" outside North America The following table shows the activity associated with the Novartis AG share options during the year ended December 31, 2018. The weighted average prices in the table below are translated from Swiss francs into USD at historical rates. 2018 Options Weighted average Weighted average Options outstanding at January 1 0.5 61.1 24.7 Sold or exercised (0.1 ) 59.7 29.1 Outstanding at December 31 0.4 61.4 26.5 Exercisable at December 31 0.4 61.4 26.5 All Novartis AG share options were granted at an exercise price that was equal to the closing market price of the Novartis AG shares at the grant date. The weighted average Novartis AG share price at the dates of sale or exercise was $86.2 . The following table summarizes information about Novartis AG share options outstanding at December 31, 2018 : Options outstanding Range of exercise prices($) Number Average remaining Weighted average 45 - 55 32 0.7 52.4 56 - 66 394 3.5 62.1 Total 426 3.3 61.4 Options under Novartis equity plan "Select" for North America The following table shows the activity associated with the Novartis AG American Depositary Receipts ("ADR") options during the period: 2018 ADR options Weighted average Weighted average Options outstanding at January 1 1.8 62.5 21.4 Sold or exercised (0.5 ) 62.4 25.8 Outstanding at December 31 1.3 62.6 23.2 Excercisable at December 31 1.3 62.6 23.2 All ADR options were granted at an exercise price that was equal to the closing market price of the ADRs at the grant date. The weighted average ADR price at the dates of sale or exercise was $81.4 . The following table summarizes information about ADR options outstanding at December 31, 2018 : ADR options outstanding Range of exercise prices ($) Number Average remaining Weighted average ($) 45 - 55 30 0.6 50.7 56 - 66 1,258 3.6 62.9 Total 1,288 3.5 62.6 |
Related parties transactions
Related parties transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Related parties transactions | Related parties transactions Prior to the Spin-off, the Alcon business was a segment of Novartis such that transactions with Novartis were considered related party transactions. In connection with the Spin-off, Alcon entered into a separation and distribution agreement as well as various other agreements governing relationships with Novartis going forward, including manufacturing and supply, transitional services, tax matters, employee matters, and patent and know-how license and brand license agreements. Information included in this Note with respect to Novartis is strictly limited to related party transactions with Novartis prior to the Spin-off on April 9, 2019. Transactions with Novartis (up to April 9, 2019) Transactions from trading activities related to products and services invoiced between other Novartis Group companies and Alcon's business, have been retained in the historical Consolidated Financial Statements. The ultimate controlling parent of both, the other Novartis Group companies and Alcon's business, was Novartis AG until the Spin-off. The following table summarizes amounts for the years ended December 31, 2019 , 2018 , and 2017 : ($ millions) 2019 (1) 2018 2017 Sales to former parent — 4 4 Contract manufacturing revenues from former parent 47 — — Purchases from former parent 19 4 3 ($ millions) December 31, 2018 (1) Trade and other receivables from former parent 20 Trade and other payables to former parent 85 Other financial receivables from former parent 39 Other financial liabilities to former parent 67 (1) Activity presented strictly relates to the period during which Novartis was a related party (up to April 9, 2019). Sales to and purchases from former parent Beginning in 2019, product sales to Novartis are recorded in Other revenues in line with Alcon's contract manufacturing arrangement executed with Novartis. Other revenues in 2019 prior to the Spin-off were $47 million . Purchases of products from Novartis under the contract manufacturing arrangement totaled $19 million in 2019 prior to the Spin-off. Other financial receivables and payables related to former parent Prior to the Spin-off, the majority of Alcon's subsidiaries were party to Novartis cash pooling arrangements with several financial institutions to maximize the availability of cash for general operating and investing purposes. Under these cash pooling arrangements, cash balances were swept by Novartis regularly from Alcon's bank accounts, and the net position with the Novartis cash pooling accounts at the end of each reporting period was reflected in the consolidated balance sheet in Other financial receivables from former parent or Other financial liabilities to former parent. These cash pooling arrangements were eliminated during the three months ended March 31, 2019 in anticipation of the Spin-off and replaced with third party financing arrangements as needed. Novartis Business Services ("NBS") Charges, Corporate Overhead and Other Allocations from Novartis Prior to January 1, 2019, Novartis Group provided Alcon certain services from NBS, the shared service organization of Novartis Group, across the following service domains: human resources operations, real estate and facility services, including site security and executive protection, procurement, information technology, commercial and medical support services and financial reporting and accounting operations. The Consolidated Financial Statements include the appropriate costs related to the services rendered, without profit margin, in accordance with the historical arrangements that existed between the Alcon business and NBS. Further, certain general and administrative costs of Novartis Group were not charged or allocated to the Alcon business in the past. For the purpose of the 2017 and 2018 financial statements, such costs were allocated based on reasonable assumptions and estimates, based on the direct and indirect costs incurred to provide the respective service. When specific identification was not practicable, a proportional cost method was used, primarily based on sales or headcount. These NBS charges, corporate overhead and other allocations amounted to $553 million in 2018 and $535 million in 2017. During 2018, Alcon formed its own business and corporate support functions, including its own service organization, such that certain activities and associates were transferred from Novartis to Alcon, operationally effective January 1, 2019. Services provided by Novartis Group to Alcon in 2019 prior to the Spin-off totaled $40 million and primarily related to human resources operations, real estate and facility services, and information technology. Management believes that the net charges and methods used for allocations to Alcon were performed on a reasonable basis and reflect the services received by Alcon and the cost incurred on behalf of Alcon. Although the Consolidated Financial Statements reflect management's best estimate of all historical costs related to Alcon, this may however not necessarily reflect what the results of operations, financial position, or cash flows would have been had Alcon been a separate entity, nor the future results of Alcon as it exists following completion of the separation on April 9, 2019. Transactions with members of the Board of Directors Dr. Arthur Cummings, an Alcon Board of Director, in his capacity as an ophthalmologist, provides certain consulting services, including assistance with various clinical trials to Alcon. In 2019, Alcon paid to Dr. Cummings (or his related entities) approximately $84,844 . Executive officers The following table summarizes compensation information for key management personnel ( 7 members for all years presented): ($ millions) 2019 2018 2017 Cash and other compensation 12.5 10.3 9.3 Post-employment benefits 0.9 0.8 0.8 Equity-based compensation 10.7 11.3 6.8 Total 24.1 22.4 16.9 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Commitments and contingencies | Commitments and contingencies Commitments Research & development Alcon has entered into long-term research agreements with various institutions which provide for potential milestone payments and other payments by Alcon that may be capitalized. As of December 31, 2019 , the commitments to make payments under those agreements, and their estimated timing, were as follows: ($ millions) 2019 2020 28 2021 41 2022 4 2023 4 2024 33 Thereafter 71 Total 181 Other Alcon entered into various purchase commitments for services and materials as well as for equipment in the ordinary course of business. These commitments are generally entered into at current market prices and reflect normal business operations. For disclosure of Property, plant and equipment purchase commitments, see Note 9 . Contingencies The Alcon companies have to observe the laws, government orders and regulations of the country in which they operate. A number of Alcon companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time, including proceedings regarding product liability, sales and marketing practices, commercial disputes, employment, and wrongful discharge, antitrust, securities, health and safety, environmental, tax, international trade, privacy, and intellectual property matters. As a result, Alcon may become subject to substantial liabilities that may not be covered by insurance and could affect our business, financial position and reputation. While Alcon does not believe that any of these legal proceedings will have a material adverse effect on its financial position, litigation is inherently unpredictable and large judgments sometimes occur. As a consequence, Alcon may in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations or cash flow. Governments and regulatory authorities around the world have been stepping up their compliance and law enforcement activities in recent years in key areas, including marketing practices, pricing, corruption, trade restrictions, embargo legislation, insider trading, antitrust, cyber security and data privacy. Further, when one government or regulatory authority undertakes an investigation, it is not uncommon for other governments or regulators to undertake investigations regarding the same or similar matters. Responding to such investigations is costly and requires an increasing amount of management's time and attention. In addition, such investigations may affect Alcon's reputation, create a risk of potential exclusion from government reimbursement programs in the United States and other countries, and may lead to (or arise from) litigation. These factors have contributed to decisions by Alcon and other companies in the medical device and healthcare industry, when deemed in their interest, to enter into settlement agreements with governmental authorities around the world prior to any formal decision by the authorities or a court. Those government settlements have involved and may continue to involve, in current government investigations and proceedings, large cash payments, sometimes in the hundreds of millions of dollars or more, including the potential repayment of amounts allegedly obtained improperly and other penalties, including treble damages. In addition, settlements of government healthcare fraud cases often require companies to enter into corporate integrity agreements, which are intended to regulate company behavior for a period of years. Also, matters underlying governmental investigations and settlements may be the subject of separate private litigation. While provisions have been made for probable losses, which management deems to be reasonable or appropriate, there are uncertainties connected with these estimates. Note 19 contains additional information on these matters. Alcon is involved in legal proceedings concerning intellectual property rights. The inherent unpredictability of such proceedings means that there can be no assurances as to their ultimate outcome. A negative result in any such proceeding could potentially adversely affect the ability of certain Alcon companies to sell their products, or require the payment of substantial damages or royalties. Alcon's potential for environmental remediation liability is assessed based on a risk assessment and investigation of the various sites identified by Alcon as at risk for environmental remediation exposure. Alcon's future remediation expenses are affected by a number of uncertainties. These uncertainties include, but are not limited to, the method and extent of remediation, the percentage of material attributable to Alcon at the remediation sites relative to that attributable to other parties, and the financial capabilities of the other potentially responsible parties. Alcon has no significant environmental liabilities as at December 31, 2019 and 2018 and has incurred no significant remediation costs for the years ended December 31, 2019 , 2018 and 2017 . |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Events After Reporting Period [Abstract] | |
Subsequent events | Subsequent events Subsequent to December 31, 2019, the Revolving Facility was extended to March 2025. The Revolving Facility remained undrawn as of February 25, 2020. On February 25, 2020, the Alcon Board of Directors approved the proposal to submit the 2019 financial statements of Alcon Inc. and these Consolidated Financial Statements for approval at the Annual General Meeting on May 6, 2020. Additionally on February 25, 2020, the Board proposed a dividend of CHF 0.19 per share to be approved at the same Annual General Meeting. If approved, the total dividend payments would amount to approximately $95 million using the CHF/USD exchange rate as of February 21,2020. The Board of Directors has evaluated subsequent events as they relate to Alcon for potential recognition or disclosures from January 1, 2020 to the date of the approval of these Consolidated Financial Statements and has determined there are no additional subsequent events to be reported in these Consolidated Financial Statements. |
Alcon subsidiaries
Alcon subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Separate Financial Statements [Abstract] | |
Alcon subsidiaries | Alcon subsidiaries The following table lists the Alcon legal entities with Total assets or Net sales to third parties in excess of $5 million included in the Consolidated Financial Statements at and for the year ended December 31, 2019, respectively. The equity interest percentage shown in the table represents Alcon's share in voting rights in those entities. Unless otherwise stated, each entity has share capital consisting of equity held directly by the Company or another of its consolidated subsidiaries. Country of organization/Entity name Place of business Equity Argentina Alcon Laboratorios Argentina S.A. Buenos Aires 100 % Australia Alcon Laboratories (Australia) Pty Ltd Frenchs Forest, NSW 100 % Austria Alcon Ophthalmika GmbH Wein 100 % Belgium Alcon Laboratories Belgium BVBA Puurs 100 % N.V. Alcon S.A. Vilvoorde 100 % Canada Alcon Canada Inc. Mississauga, Ontario 100 % Chile Alcon Laboratorios Chile Ltd. Santiago de Chile 100 % China Alcon (China) Ophthalmic Product Co., Ltd. Beijing 100 % Alcon Hong Kong Limited Hong Kong 100 % Colombia Laboratorios Alcon de Colombia S.A. Santafé de Bogotá 100 % Czech Republic Alcon Pharmaceuticals (Czech Republic) s.r.o. Prague 100 % Denmark Alcon Nordic A/S Copenhagen 100 % Dominican Republic Alcon Dominicana, SRL Santo Domingo 100 % Ecuador AlconLab Ecuador S.A. Quito 100 % France Laboratoires Alcon S.A.S. Rueil-Malmaison 100 % Germany Alcon Pharma GmbH Freiburg im Breisgau 100 % CIBA Vision GmbH Grosswallstadt 100 % WaveLight GmbH Erlangen 100 % Greece Alcon Laboratories Hellas- Single Member Commercial and Industrial S.A.C.I. Maroussi, Athens 100 % Hungary Alcon Hungary Pharmaceuticals Trading Limited Liability Company Budapest 100 % India Alcon Laboratories (India) Private Limited Bangalore 100 % Indonesia PT. CIBA Vision Batam Batam 100 % Ireland Alcon Laboratories Ireland Limited Cork City 100 % Israel Optonol Ltd. Neve-Ilan 100 % Country of organization/Entity name Place of business Equity Italy Alcon Italia S.p.A. Milano 100 % Japan Alcon Japan Ltd. Tokyo 100 % Malaysia Alcon Laboratories (Malaysia) Sdn. Bhd. Petaling Jaya 100 % CIBA Vision Johor Sdn. Bhd. Kuala Lumpur 100 % Mexico Alcon Laboratorios, S.A. de C.V. Ciudad de Mexico 100 % Morocco Alcon Maroc SARL D´Associé Unique Casablanca 100 % Netherlands Alcon Nederland B.V. Arnhem 100 % New Zealand Alcon Laboratories (New Zealand) Ltd. Auckland 100 % Panama Alcon Centroamerica S.A. Panama City 100 % Peru Alcon Pharmaceutical del Peru S.A. Lima 100 % Philippines Alcon Laboratories (Philippines), Inc. Manila 100 % Poland Alcon Polska Sp. z o.o. Warszawa 100 % Portugal Alcon Portugal-Produtos e Equipamentos Oftalmológicos Lda. Porto Salvo 100 % Puerto Rico Alcon (Puerto Rico), Inc. Cataño, PR 100 % Romania Alcon Romania S.R.L. Bucharest 100 % Russian Federation Alcon Farmacevtika LLC Moscow 100 % Singapore Alcon Pte Ltd Singapore 100 % Alcon Singapore Manufacturing Pte Ltd Singapore 100 % CIBA Vision Asian Manufacturing and Logistics Pte Ltd. Singapore 100 % South Africa Alcon Laboratories (South Africa) (Pty) Ltd. Midrand 100 % South Korea Alcon Korea Ltd. Seoul 100 % Spain Alcon Healthcare S.A. Barcelona 100 % Switzerland Alcon Inc. Fribourg 100 % Alcon Grieshaber AG Schaffhausen 100 % Alcon Management SA Vernier 100 % Alcon Pharmaceuticals Ltd. Fribourg 100 % Alcon Services AG Fribourg 100 % Alcon Switzerland SA Risch 100 % Thailand Alcon Laboratories (Thailand) Limited Bangkok 100 % Turkey Alcon Laboratuvarlari Ticaret A.S. Istanbul 100 % Country of organization/Entity name Place of business Equity Ukraine Alcon Ukraine LLC Kiev 100 % United Kingdom Alcon Eye Care UK Limited Frimley/Camberley 100 % United States of America Alcon Finance Corporation Wilminton, DE 100 % Alcon Laboratories, Inc. Wilminton, DE 100 % Alcon RefractiveHorizons, LLC Fort Worth, TX 100 % Alcon Research, LLC Fort Worth, TX 100 % Alcon Vision, LLC Fort Worth, TX 100 % CIBA Vision, LLC Duluth, GA 100 % WaveLight, Inc. Sterling, VA 100 % ClarVista Medical, Inc. Aliso Viejo, CA 100 % PowerVision, Inc. Fort Worth, TX 100 % Tear Film Innovations, Inc. Fort Worth, TX 100 % TrueVision Systems, Inc. Fort Worth, TX 100 % Alcon Lensx, Inc. Fort Worth, TX 100 % The list below shows the principal Novartis legal entities containing assets, liabilities and results of operations attributable to the Alcon business with Total assets or Net sales to third parties in excess of $5 million included in the Consolidated Financial Statements. Brazil (1) Novartis Biociências S.A. Mexico Novartis Farmacéutica, S.A. de C.V. |
Selected accounting policies (P
Selected accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Principles of consolidation | Principles of consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. In the event that the Company has an interest in another entity that is not wholly owned, the assets, liabilities, results of operations and cash flows of such entity are included in the Company's Consolidated Financial Statements, if the Company is exposed or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Consolidated Financial Statements of the Company are prepared in accordance with IFRS as issued by the IASB. They are prepared in accordance with the historical cost convention except for items that are required to be accounted for at fair value. All intercompany transactions and accounts within Alcon were eliminated. The Company's financial year-end is December 31 , which is also the annual closing date of the individual entities' financial statements incorporated into the Consolidated Financial Statements. |
Foreign currencies | Foreign currencies The Consolidated Financial Statements are presented in US dollars ("USD"). The functional currency of individual entities incorporated into the Consolidated Financial Statements are generally the local currency of the respective entity. The functional currency used for the reporting of certain Swiss entities is USD instead of their respective local currencies. This reflects the fact that the cash flows and transactions of these entities are primarily denominated in these currencies. For entities not operating in hyperinflationary economies, the entities results, financial position and cash flows that do not have USD as their functional currency are translated into USD using the following exchange rates: • Income, expense and cash flows using for each month the average exchange rate with the USD values for each month being aggregated during the year. • Balance sheets using year-end exchange rates. • Resulting exchange rate differences are recognized in other comprehensive income. The hyperinflationary economies in which Alcon operates are Argentina and Venezuela. Venezuela was hyperinflationary for all years presented, and Argentina became hyperinflationary effective July 1, 2018, requiring retroactive implementation of hyperinflation accounting as of January 1, 2018. The impact of the restatement of the non-monetary assets and liabilities with the general price index at the beginning of the period is recorded in "Other Reserves" in equity. The subsequent gains or losses resulting from the restatement of non-monetary assets are recorded in "Other financial income & expense" in the consolidated income statements. |
Acquisition of assets | Acquisition of assets Acquired assets are initially recognized on the balance sheet at cost if they meet the criteria for capitalization. The capitalized cost of the asset includes the purchase price and any directly attributable costs for bringing the asset into the condition to operate as intended. Expected costs for obligations to dismantle and remove property, plant and equipment when it is no longer used are included in their cost. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. Freehold land is not depreciated. The related depreciation expense is included in the costs of the functions using the asset or "Cost of net sales" in the consolidated income statements. Property, plant and equipment are assessed for impairment whenever there is an indication that the balance sheet carrying amount may not be recoverable using cash flow projections for the useful life. The following table shows the respective useful lives for property, plant and equipment: Useful life Buildings 20 to 40 years Machinery and other equipment Machinery and equipment 7 to 20 years Furniture and vehicles 5 to 10 years Computer hardware 3 to 7 years |
Business combinations | Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary may include: • fair values of the assets transferred; • liabilities incurred to the former owners of the acquired business; • equity interests issued by the Company; • fair value of an asset or liability resulting from a contingent consideration arrangement; and • fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the net identifiable assets acquired is recorded as goodwill, or directly in the income statement if it is a bargain purchase. Alcon primarily uses net present value techniques, utilizing post-tax cash flows and discount rates in calculating the fair value of net identifiable assets acquired when allocating the purchase consideration paid for the acquisition. The estimates in calculating fair values are highly sensitive and depend on assumptions, which includes the amount and timing of projected cash flows, long-term sales forecasts, the timing and probability of regulatory and commercial success, and the appropriate discount rate. Acquisition related costs are expensed as incurred. |
Goodwill | annual impairment testing date is Alcon's financial year-end, December 31. Goodwill Goodwill arises in a business combination and is the excess of the consideration transferred to acquire a business over the underlying fair value of the net identified assets acquired. It is allocated to groups of cash generating units ("CGUs") which are usually represented by the reported segments. Goodwill is tested for impairment annually at the level of these groups of CGUs, and any impairment charges are recorded under "Other expense" in the consolidated income statements. |
Intangible assets available for use and Acquired In-Process Research & Development | Intangible assets available for use Alcon has the following classes of available-for-use intangible assets: Currently marketed products, Marketing know-how, Technologies, Other intangible assets (including computer software) and the Alcon brand name. Currently marketed products represent the composite value of acquired intellectual property, patents, and distribution rights and product trade names. Marketing know-how represents the value attributable to the expertise acquired for marketing and distributing Alcon surgical products. Technologies represent identified and separable acquired know-how used in the research, development and production processes. Significant investments in internally developed and acquired software are capitalized and included in the "Other" category and amortized once available for use. The Alcon brand name is shown separately as it is the only Alcon intangible asset that is available for use with an indefinite useful life. Alcon considers it appropriate that the brand name has an indefinite life since the branded products have a history of strong revenue and cash flow performance, and Alcon has the intent and ability to support the brand with spending to maintain its value for the foreseeable future. Except for the Alcon brand name, intangible assets available for use are amortized over their estimated useful lives on a straight-line basis and evaluated for potential impairment whenever facts and circumstances indicate that their carrying value may not be recoverable. The Alcon brand name is not amortized, but evaluated for potential impairment annually. The following table shows the respective useful lives for available-for-use intangible assets and the location in the consolidated income statements in which the respective amortization and any potential impairment charge is recognized: Useful life Income statement location for amortization and impairment charges Currently marketed products 5 to 20 years "Cost of net sales" Marketing know-how 25 years "Cost of net sales" Technologies 10 to 20 years "Cost of net sales" or "Research and Development" Other (including software) 3 to 10 years In the respective functional expense Alcon brand name Not amortized, indefinite useful life "Other expense" From July 1, 2019, the useful life of Alcon's new SAP ERP software was extended from 7 years to 10 years on a prospective basis based on Alcon's multi-year transformation program which centers on one ERP platform across the organization. This change in estimate resulted in a $5 million reduction in amortization expense during the six months ended December 31, 2019 and will reduce amortization expense up to $10 million per year during the remaining useful life of the SAP ERP software assets placed in service at the time of the change. The corresponding "Intangible assets available for use" portion of the accounting policy was updated to reflect that the useful life for Other intangible assets (including software) was extended from 3 to 7 years to 3 to 10 years . Acquired In-Process Research & Development ("IPR&D") Acquired research and development intangible assets, which are still under development and have accordingly not yet obtained marketing approval, are recognized as IPR&D. IPR&D is not amortized, but evaluated for potential impairment on an annual basis or when facts and circumstances warrant. IPR&D is considered impaired when its balance sheet carrying amount exceeds its estimated recoverable amount, which is defined as the higher of its fair value less costs of disposal ("FVLCOD") and its value in use ("VIU"). Usually, Alcon applies the FVLCOD method for its impairment assessments. Under this approach when evaluating IPR&D for potential impairment, FVLCOD is estimated using net present value techniques utilizing post-tax cash flows and discount rates as there are no direct or indirect observable prices in active markets for identical or similar assets. The estimates used in calculating the net present values are highly sensitive and depend on assumptions, including amount and timing of projected future cash flows, long-term sales forecasts, discount rate, and the timing and probability of regulatory and commercial success. In the limited cases where the VIU method would be applied, net present value techniques would be applied using pre-tax cash flows and discount rates. Any impairment charge is recorded in the consolidated income statements under "Research & development". Once a project included in IPR&D has been successfully developed it is transferred to the "Currently marketed products" category. |
Impairment of goodwill, Alcon brand name and definite lived intangible assets | Impairment of goodwill, Alcon brand name and definite lived intangible assets An asset is considered impaired when its balance sheet carrying amount exceeds its estimated recoverable amount, which is defined as the higher of its FVLCOD and its VIU. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset shall be reduced to its recoverable amount. That reduction is an impairment loss. Usually, Alcon applies the FVLCOD method for its impairment assessment. In most cases no direct or indirect observable market prices for identical or similar assets are available to measure the fair value less costs of disposal. Therefore, an estimate of FVLCOD is based on net present value techniques utilizing post-tax cash flows and discount rates. In the limited cases where the VIU method would be applied, net present value techniques would be applied using pre-tax cash flows and discount rates. FVLCOD reflects estimates of assumptions that market participants would be expected to use when pricing the asset or CGUs, and for this purpose management considers the range of economic conditions that are expected to exist over the remaining useful life of the asset. The estimates used in calculating the net present values are highly sensitive and depend on assumptions, which includes the following: • Amount and timing of projected future cash flows; • Long-term sales forecasts for periods of up to 25 years including sales growth rates; • Royalty rate for the Alcon brand name; • Terminal growth rate; and • Discount rate. Other assumptions used in the net present values calculation include: • Future tax rate; • Actions of competitors (launch of competing products, marketing initiatives, etc.); and • Outcome of R&D activities and forecast of related costs (future product developments). Generally, for intangible assets with a definite useful life Alcon uses cash flow projections for the whole useful life of these assets. For goodwill and the Alcon brand name, Alcon generally utilizes cash flow projections for a five -year period based on management forecasts, with a terminal value based on cash flow projections considering the long-term expected inflation rates and impact of demographic trends of the population to which Alcon products are prescribed, for later periods. Probability-weighted scenarios are typically used. Discount rates used consider Alcon estimated weighted average cost of capital adjusted for specific country and currency risks associated with cash flow projections to approximate the weighted average cost of capital of a comparable market participant. Actual cash flows and values could vary significantly from forecasted future cash flows and related values derived using discounting techniques. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, and other short-term and highly liquid investments with original or weighted-average maturities of three months or less which are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are usually presented within current financial debts on the consolidated balance sheets except in cases where a right of offset has been agreed with a bank which then allows for presentation on a net basis. |
Financial assets | Financial assets Non-current financial assets such as loans and long-term receivables from customers, primarily related to surgical equipment sales arrangements, advances and other deposits, are carried at amortized cost, which reflects the time value of money, less any allowances for uncollectable amounts. Alcon assesses on a forward-looking basis the expected credit losses associated with its non-current financial assets valued at amortized cost. For loans, advances and other deposits valued at amortized costs, impairments, which are based on their expected credit losses, and exchange rate losses are included in "Other expense" in the consolidated income statements and exchange rate gains and interest income, using the effective interest rate method, are included in "Other income" in the consolidated income statements. For long-term receivables from customers, provisions for uncollectable amounts, which are based on their expected credit losses, are recorded as marketing and selling costs recognized in the consolidated income statements within "Selling, general & administration" expenses. Fund investments are valued at fair value through profit and loss ("FVPL"). Unrealized gains and losses, including exchange gains and losses, are recognized in the consolidated income statements in "Other income" for gains and "Other expense" for losses. Equity securities and convertible notes receivable held as strategic investments are generally designated at the date of acquisition as financial assets valued at fair value through other comprehensive income with no subsequent recycling through profit and loss. Unrealized gains and losses, including exchange gains and losses, are recorded as a fair value adjustment in the consolidated statements of comprehensive income. They are reclassified to "Other Reserves" when the equity security is sold. If these equity securities and convertible notes receivable are not designated at the date of acquisition as financial assets valued at fair value through other comprehensive income, they are valued at FVPL, as described above for fund investments. Changes in fair value of options to acquire development stage companies are charged to research and development expense. Derivative financial instruments are initially recognized in the consolidated balance sheets at fair value and are remeasured to their current fair value at the end of each subsequent reporting period. The valuation of forward exchange rate contracts and foreign exchange swaps are based on the discounted cash flow model, using interest curves and spot rates at the reporting date as observable inputs. Unsettled forward contracts and swaps are measured at fair value at quarter-end with changes in fair value recorded to the consolidated income statements as unrealized gains or losses in "Other financial income & expense". Settled forward contracts and swaps are measured at maturity date at fair value with corresponding realized gains or losses recognized in the consolidated income statements in "Other financial income & expense". No hedge accounting is applied for these arrangements. |
Inventories | Inventories Inventory is valued at acquisition or production cost determined on a first-in, first-out basis. This value is used for the "Cost of net sales" and "Cost of other revenues" in the consolidated income statements. Unsalable inventory is fully written off in the consolidated income statements under "Cost of net sales" and "Cost of other revenues." |
Trade receivables | Trade receivables Trade receivables are initially recognized at their invoiced amounts, including any related sales taxes less adjustments for estimated revenue deductions such as chargebacks and cash discounts. Provisions for expected credit losses are established using an expected credit loss model ("ECL"). The provisions are based on a forward-looking ECL, which includes possible default events on the trade receivables over the entire holding period of the trade receivable. These provisions represent the difference between the trade receivable's carrying amount in the consolidated balance sheets and the estimated net collectible amount. Charges for doubtful trade receivables are recorded as marketing and selling costs recognized in the consolidated income statements within "Selling, general & administration" expenses. |
Leases | Leases From January 1, 2019, with the implementation of the new standard IFRS 16, Leases , Alcon's accounting policy for leases is as follows: As lessee, Alcon assesses whether a contract contains a lease at inception of a contract based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Alcon recognizes a right-of-use asset and a corresponding lease liability for all arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases for which Alcon has elected the recognition exemptions allowed under IFRS 16. Right-of-use assets Right-of-use assets are initially recognized at cost, which is comprised of the amount of the initial measurement of the corresponding lease liabilities, adjusted for any lease payments made at or prior to the commencement date of the lease, lease incentives received and initial direct costs incurred, as well as any expected costs for obligations to dismantle and remove right-of-use assets when they are no longer used. Right-of-use assets are depreciated on a straight-line basis over the shorter of the useful life of the right-of-use asset or the end of the lease term. Right-of-use assets are assessed for impairment whenever there is an indication that the balance sheet carrying amount may not be recoverable using cash flow projections for the useful life. Lease liabilities Lease liabilities are accounted for at amortized cost and are initially measured at the present value of future lease payments and are classified as current or non-current based on the due dates of the underlying principal payments. In determining the lease term, Alcon evaluates the renewal options and termination options reasonably certain to be exercised. Lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, the incremental borrowing rate Alcon would be expected to pay within the respective markets, on a borrowing with a similar term and security. Interest in the period is recorded within "Interest expense" in Alcon's consolidated income statements. Lease liabilities are remeasured for changes in estimated lease term, future lease payments arising from a change in an index or rate, amounts expected to be payable under a residual value guarantee, or in assessment of whether Alcon will exercise a purchase, extension or termination option. Changes to initial lease contract terms are assessed to determine their impact on the scope of lease, and any modifications increasing the scope of the lease are treated as new contracts under the initial measurement principles, while modifications that do not increase or that decrease the scope of the lease result in an adjustment to the right-of-use asset which is remeasured as of the date of the modification. Principal payments made on lease liabilities and any initial direct costs paid are classified as financing cash outflows, while interest payments are classified as operating cash outflows. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the consolidated income statements and are classified as cash flows from operating activities. Short-term leases are leases with a lease term of twelve months in duration or less. Prior to the adoption of IFRS 16 on January 1, 2019, Alcon's accounting policy for leases was as follows: As lessee, Alcon classified leases of property, plant & equipment where Alcon had substantially all the risks and rewards of ownership as finance leases. Finance leases were capitalized at the lease's inception at the fair value of the leased asset or, if lower, the present value of the minimum lease payments. The corresponding lease liabilities, net of finance charges, were classified as current and non-current based on the due dates of the underlying principal payments. Each lease payment was allocated between the liability and interest expense. The interest expense was charged to Alcon's consolidated income statements over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The asset acquired under the finance lease was depreciated over the shorter of the asset’s useful life and the lease term. Alcon classified leases in which a significant portion of the risks and rewards of ownership were not transferred to Alcon as operating leases. Payments made under operating leases (net of any incentives received from the lessor) were recognized in the consolidated income statements on a straight-line basis over the period of the lease. Refer to the "Impact of adopting significant new IFRS standards in 2019" section in this Note and Note 16 for additional details on the impact of adoption. |
Legal liabilities | Legal liabilities Alcon and its subsidiaries are subject to contingencies arising in the ordinary course of business such as patent litigation and other product-related litigation, commercial litigation, and governmental investigations and proceedings. Provisions are recorded where a reliable estimate can be made of the probable outcome of legal or other disputes against the subsidiary. |
Contingent consideration | Contingent consideration In a business combination, it is necessary to recognize contingent future payments to previous owners representing contractually defined potential amounts as a liability. Usually for Alcon, these are linked to milestone or royalty payments related to certain assets and are recognized as a financial liability at their fair value, which is then re-measured at each subsequent reporting date. For the determination of the fair value of a contingent consideration various unobservable inputs are used. A change in these inputs might result in a significantly higher or lower fair value measurement. The inputs used are, among others, the timing and probability of regulatory and commercial success, sales forecast and assumptions regarding the discount rate, timing and different scenarios of triggering events. The significance and usage of these inputs to each contingent consideration may vary due to differences in the timing and triggering events for payments or in the nature of the asset related to the contingent consideration. These estimations typically depend on factors such as technical milestones or market performance and are adjusted for the probability of their likelihood of payment, and if material, appropriately discounted to reflect the impact of time. Changes in the fair value of contingent consideration liabilities in subsequent periods are recognized in the consolidated income statements in "Cost of net sales" for currently marketed products and in "Research & development" for IPR&D. The effect of unwinding the discount over time is recognized in "Interest expense" in the consolidated income statements. |
Defined benefit pension plans and other post-employment benefits and defined contribution plans | Defined benefit pension plans and other post-employment benefits The liability or asset recognized in the balance sheet in respect of defined benefit pension plans and other post-employment benefits is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation. In countries where there is no sufficient market for such bonds, the market rates on government bonds are used. The current service cost for such post-employment benefit plans is included in the personnel expenses of the various functions where the associates are employed. The net interest on the net defined benefit liability is recognized as "Other expense" or "Other income". The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income/(loss). Defined contribution plans For defined contribution plans, Alcon contributes to publicly or privately administered plans. Alcon has no further payment obligations once the contributions have been paid. The contributions are included in the personnel expenses of the various functions where the associates are employed. |
Financial debts | Financial debts Financial debts are initially recognized at fair value, net of transaction costs incurred. Financial debts are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs and discounts) and the redemption amount is recognized in the consolidated income statements over the period of the financial debts using the effective interest method. Fees paid on the establishment of credit facilities are recognized as transaction costs of the financial debt to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates, and is recognized in "Other financial income & expense" in the consolidated income statements. Financial debts are derecognized from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial debt that has been extinguished and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in "Other financial income & expense" in the consolidated income statements. |
Revenue | Revenue Net sales to third parties Revenue on the sale of Alcon products and services, which is recorded as "Net sales to third parties" in the consolidated income statements, is recognized when a contractual promise to a customer (performance obligation) has been fulfilled by transferring control over the promised goods and services to the customer, substantially all of which is at the point in time of shipment to or receipt of the products by the customer or when the services are performed. If contracts contain customer acceptance provisions, revenue would be recognized upon the satisfaction of acceptance criteria. The amount of revenue to be recognized is based on the consideration Alcon expects to receive in exchange for its goods and services. If a contract contains more than one performance obligation, the consideration is allocated based on the relative standalone selling price of each performance obligation. Surgical equipment may be sold together with other products and services under a single contract and may be structured as an outright cash sale, an installment sale, or lease. Surgical equipment installment sales and leases have a fixed payment amount which the customer may pay either in fixed intervals or as the customer purchases consumables and/or implantables. Revenues are recognized upon satisfaction of each of the performance obligations in the contract and the consideration is allocated based on the relative standalone selling price of each performance obligation. • Surgical equipment revenue from outright cash sales and installment sales arrangements is recognized at the point in time when control is transferred to the customer. Current portion of long-term receivables from customers and long-term receivables from customers for installment sales arrangements are recorded in "Other current assets" (see "Current portion of long-term receivables from customers" in Note 15 of these Consolidated Financial Statements) and "Financial assets" (see "Long-term receivables from customers" in Note 12 of these Consolidated Financial Statements), respectively. Financing income for installment sales arrangements longer than twelve months is recognized over the term of the arrangement in "Other Income". Alcon applies the practical expedient under IFRS 15 to installment sales arrangements that are twelve months or less in duration. • In addition to cash and installment sales, revenue is recognized under finance and operating lease arrangements. Leases in which Alcon transfers substantially all the risks and rewards incidental to ownership to the customer are treated as finance lease arrangements. Revenue from finance lease arrangements is recognized at amounts equal to the fair value of the equipment, which approximates the present value of the minimum lease payments under the arrangements. As interest rates embedded in lease arrangements are approximately market rates, revenue under finance lease arrangements is comparable to revenue for outright sales. Finance income for arrangements longer than twelve months is deferred and subsequently recognized based on a pattern that approximates the use of the effective interest method and recorded in "Other income". Operating lease revenue for equipment rentals is recognized on a straight-line basis over the lease term in "Net sales to third parties". The consideration Alcon receives in exchange for its goods or services may be fixed or variable. Variable consideration is only recognized when it is highly probable that a significant reversal of cumulative sales will not occur. The most common elements of variable consideration are listed below: • Rebates and discounts granted to government agencies, wholesalers, retail pharmacies and other customers are provisioned and recorded as a deduction from revenue at the time the related revenues are recorded or when the incentives are offered. They are calculated on the basis of historical experience and the specific terms in the individual agreements. • Cash discounts are offered to customers to encourage prompt payment and are provisioned and recorded as revenue deductions at the time the related sales are recorded. • Sales returns provisions are recognized and recorded as revenue deductions when there is historical experience of Alcon agreeing to customer returns and Alcon can reasonably estimate expected future returns. In doing so, the estimated rate of return is applied, determined based on historical experience of customer returns and considering any other relevant factors. This is applied to the amounts invoiced, also considering the amount of returned products to be destroyed versus products that can be placed back in inventory for resale. Where shipments are made on a re-sale or return basis, without sufficient historical experience for estimating sales returns, revenue is only recorded when there is evidence of consumption or when the right of return has expired. Provisions for revenue deductions are adjusted to actual amounts as rebates, discounts and returns are processed. The provision represents estimates of the related obligations, requiring the use of judgment when estimating the effect of these sales deductions. Prior to Alcon's adoption of IFRS 15 on January 1, 2018, Alcon's accounting policy for revenue recognition was substantially consistent with the revenue recognition principles under IFRS 15. Other revenues "Other revenues" include revenue from contract manufacturing services provided to the Former Parent which are recognized over time as the service obligations are completed and third party royalty income. Associated costs for contract manufacturing services are recognized in "Cost of other revenues". |
Research & development | Research & development Internal research & development ("R&D") costs are fully charged to "Research & development" in the consolidated income statements in the period in which they are incurred. Alcon considers that regulatory and other uncertainties inherent in the development of new products preclude the capitalization of internal development expenses as an intangible asset until marketing approval from a regulatory authority is obtained in a major market such as the United States, the European Union, Switzerland or Japan. Payments made to third parties to in-license or acquire intellectual property rights and products, including initial upfront and subsequent milestone payments, are capitalized as intangible assets. If additional payments are made to the originator company to continue to perform R&D activities, an evaluation is made as to the nature of the payments. Such additional payments will be expensed if they are deemed to be compensation for subcontracted R&D services not resulting in an additional transfer of intellectual property rights to Alcon. Such additional payments will be capitalized if they are deemed to be compensation for the transfer to Alcon of additional intellectual property developed at the risk of the originator company. Subsequent internal R&D costs in relation to IPR&D and other assets are expensed until such time that technical feasibility can be proven, as demonstrated by the receipt of marketing approval for the related product from a regulatory authority in a major market. |
Equity-based compensation | Equity-based compensation Each of the periods presented include expense related to incentive compensation provided to eligible Alcon associates in the form of equity-settled or equity-based awards including restricted stock units ("RSUs") and performance stock units ("PSUs"). Alcon expenses the fair values of RSUs and PSUs granted to associates as compensation over the related vesting periods within the various functions where the associates are employed. The fair values of the awards are determined on their grant dates and are adjusted to account for the specific provisions of each of the corresponding grant agreements. Alcon RSUs do not entitle the recipients to dividends. As such, the fair value upon grant is therefore based on the Alcon share price at the grant date adjusted for potential future dividends to be paid within the holding period. The fair value of these grants, after making adjustments for assumptions related to their forfeiture during the vesting period, is expensed on a straight-line basis over the respective vesting period. PSUs are subject to certain performance criteria being achieved during the vesting period and require plan participants to provide services during the vesting period. PSUs granted under Alcon's plans are subject to performance criteria based on internal performance metrics. The expense is determined taking into account assumptions concerning performance during the period relative to targets and expected forfeitures due to plan participants not meeting their service conditions. These assumptions are periodically adjusted. Any change in estimates for past services is recorded immediately as an expense or income in the consolidated income statements and amounts for future periods are expensed over the remaining vesting period. As a result, at the end of the vesting period, the total charge during the whole vesting period represents the amount that will finally vest. The number of equity instruments that finally vest is determined at the vesting date. If a plan participant leaves Alcon for reasons other than retirement, disability or death, then unvested restricted shares, RSUs and PSUs are forfeited, unless determined otherwise by the provision of the plan rules or by the Compensation, Governance and Nomination Committee of the Alcon Board of Directors, for example, in connection with a reorganization. |
Restructuring charges | Restructuring charges Restructuring provisions are recognized for the direct expenditures arising from the restructuring, where the plans are sufficiently detailed and where appropriate communication to those affected has been made. Charges to increase restructuring provisions are included in "Other expense" in the consolidated income statements. Corresponding releases are recorded in "Other income" in the consolidated income statements. |
Taxes | Taxes Taxes on income are expensed in the same periods as the revenues and expenses to which they relate and include any interest and penalties incurred during the period. Deferred taxes are determined using the comprehensive liability method and are calculated on the temporary differences that arise between the tax base of an asset or liability and its carrying value in the balance sheet prepared for purposes of these Consolidated Financial Statements, except for those temporary differences related to investments in subsidiaries where the timing of their reversal can be controlled and it is probable that the difference will not reverse in the foreseeable future. Since the retained earnings are reinvested, withholding or other taxes on eventual distribution of a subsidiary's retained earnings are only taken into account when a dividend has been planned. The estimated amounts for current and deferred tax assets or liabilities, including any amounts related to any uncertain tax positions, are based on currently known facts and circumstances. Tax returns are based on an interpretation of tax laws and regulations and reflect estimates based on these judgments and interpretations. The tax returns are subject to examination by the competent taxing authorities which may result in an assessment being made requiring payments of additional tax, interest or penalties. Inherent uncertainties exist in the estimates of the tax positions. |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per share is based on the weighted average number of common shares outstanding. Diluted earnings (loss) per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. |
Impact of adopting significant new IFRS standards | Impact of adopting significant new IFRS standards in 2019 Effective January 1, 2019, Alcon implemented IFRS 16, Leases , which provides a new model for lessee accounting in which substantially all leases are now recognized on the balance sheet as Right-of-use assets with corresponding Lease liabilities. The standard replaces IAS 17, Leases . Upon adoption of IFRS 16, right-of-use assets are recognized based on the amount of the lease liability adjusted for payments made before the lease commencement date, lease incentives and other items related to the lease agreements. Lease liabilities are recognized based on the net present value of remaining lease payments and are classified as current or non-current based on the due dates of the underling principal payments. Upon adoption of the new standard, a portion of the annual operating lease costs previously fully recognized as a functional expense is recorded as interest expense. In addition, the portion of the lease payments representing a reduction of the lease liability is recognized in the cash flow statement as an outflow from financing activities, which was previously fully recognized as an outflow from operating activities for operating leases. IFRS 16 substantially carries forward the lessor accounting requirements under IAS 17 such that adoption of the standard did not have a significant impact upon Alcon's accounting for surgical equipment leases where Alcon is the lessor and for which Alcon's accounting policy is included in the Revenue accounting policy in this Note to the Consolidated Financial Statements. Alcon applied the modified retrospective method, with right-of-use assets measured at an amount equal to the lease liability, adjusted by the amount of the prepaid or accrued lease payments relating to those leases recognized in the balance sheet immediately before the date of initial application. In applying IFRS 16 for the first time, Alcon has used the practical expedients discussed in Note 16 of these Consolidated Financial Statements. The adoption of the standard did not have an impact on "Other Reserves" in the period of adoption and prior years were not restated. Refer to Note 16 to these Consolidated Financial Statements for further information on the impact of adoption of IFRS 16, Leases. New standards and interpretations not yet adopted Amendments to IFRS 3, Business Combinations , are effective for transactions occurring after January 1, 2020. The amendments change the definition of a business in evaluating business combinations and asset acquisitions, and also provide Alcon an option to apply a concentration test to determine if the fair value of gross assets acquired is concentrated in a single asset or a group of similar assets. Under the concentration test, where substantially all of the fair value of gross assets acquired is concentrated in a single asset (or a group of similar assets), the assets acquired would not represent a business. The changes to the definition of a business will likely result in Alcon accounting for more acquisitions as asset acquisitions. There are no other IFRS standards or interpretations not yet effective that would be expected to have a material impact on Alcon. |
Selected accounting policies (T
Selected accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of notes and other explanatory information [Abstract] | |
Disclosure of useful lives for property, plant and equipment | The following table shows the respective useful lives for property, plant and equipment: Useful life Buildings 20 to 40 years Machinery and other equipment Machinery and equipment 7 to 20 years Furniture and vehicles 5 to 10 years Computer hardware 3 to 7 years The following table summarizes the movements of property, plant & equipment during 2019 : ($ millions) Land Buildings Construction Machinery & Total Cost January 1, 2019 60 1,527 657 2,646 4,890 Additions (1) 11 514 82 607 Impact of business combinations 1 1 Disposals and derecognitions (2) (17 ) (1 ) (161 ) (179 ) Transfers with former parent 4 2 29 35 Reclassifications for assets placed in service 104 (417 ) 313 — Other reclassifications (27 ) (27 ) Currency translation effects (1 ) (4 ) (5 ) December 31, 2019 33 1,628 755 2,906 5,322 Accumulated depreciation January 1, 2019 (7 ) (558 ) (7 ) (1,518 ) (2,090 ) Depreciation charge (73 ) (194 ) (267 ) Impairment charge (1 ) (7 ) (8 ) Disposals and derecognitions (2) 14 151 165 Transfers with former parent (2 ) (15 ) (17 ) Other reclassifications 7 7 Currency translation effects 1 1 December 31, 2019 — (618 ) (8 ) (1,583 ) (2,209 ) Net book value at December 31, 2019 33 1,010 747 1,323 3,113 (1) Includes $56 million in non-cash additions. (2) Derecognition of assets that are no longer used and are not considered to have a significant disposal value or other alternative use. As of December 31, 2019, commitments for purchases of property, plant & equipment were $212 million . There were no capitalized borrowing costs. The following table summarizes the movements of property, plant and equipment during 2018 : ($ millions) Land Buildings Construction Machinery & Total Cost January 1, 2018 53 1,386 503 2,506 4,448 Additions 4 468 52 524 Impact of business combinations 1 1 Disposals and derecognitions (1) (16 ) (71 ) (87 ) Reclassifications and transfers with former parent 10 252 (302 ) 203 163 Reclassification to right-of-use assets (2) (86 ) (86 ) Currency translation effects (3 ) (13 ) (12 ) (45 ) (73 ) December 31, 2018 60 1,527 657 2,646 4,890 Accumulated depreciation January 1, 2018 (3 ) (447 ) (1,438 ) (1,888 ) Depreciation charge (70 ) (169 ) (239 ) Impairment charge (1 ) (1 ) (2 ) Disposals and derecognitions (1) 15 72 87 Transfers with former parent (4 ) (69 ) (6 ) (12 ) (91 ) Reclassification to right-of-use assets (2) 7 7 Currency translation effects 6 30 36 December 31, 2018 (7 ) (558 ) (7 ) (1,518 ) (2,090 ) Net book value at December 31, 2018 53 969 650 1,128 2,800 (1) Derecognition of assets that are no longer used and are not considered to have a significant disposal value or other alternative use. (2) The December 31, 2018 balance previously reported for a finance lease asset of $79 million has been reclassified from "Property, Plant, & Equipment" to "Right-of-use assets" . |
Disclosure of useful lives for intangible assets and location in combined income statement | The following table shows the respective useful lives for available-for-use intangible assets and the location in the consolidated income statements in which the respective amortization and any potential impairment charge is recognized: Useful life Income statement location for amortization and impairment charges Currently marketed products 5 to 20 years "Cost of net sales" Marketing know-how 25 years "Cost of net sales" Technologies 10 to 20 years "Cost of net sales" or "Research and Development" Other (including software) 3 to 10 years In the respective functional expense Alcon brand name Not amortized, indefinite useful life "Other expense" |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | Segmentation - Consolidated income statements Surgical Vision Care Company ($ millions) 2019 2018 2019 2018 2019 2018 Net sales to third parties 4,174 3,999 3,188 3,150 7,362 7,149 Sales to former parent — 2 — 2 — 4 Other revenues — — 146 — 146 — Net sales and other revenues 4,174 4,001 3,334 3,152 7,508 7,153 Segment contribution (1) 923 813 563 594 1,486 1,407 Amortization of intangible assets (1,084 ) (1,019 ) Impairment charges on intangible assets — (378 ) General & administration (corporate) (243 ) (206 ) Other (expense)/income, net (346 ) (52 ) Operating (loss) (187 ) (248 ) Interest expense (113 ) (24 ) Other financial income & expense (32 ) (28 ) (Loss) before taxes (332 ) (300 ) Included in segment contribution are : Surgical Vision Care Not allocated Total ($ millions) 2019 2018 2019 2018 2019 2018 2019 2018 Depreciation of property, plant & equipment (112 ) (114 ) (155 ) (125 ) — — (267 ) (239 ) Depreciation of right-of-use assets (42 ) — (24 ) — — — (66 ) — Impairment charges on property, plant & equipment, net (3 ) (1 ) (5 ) (1 ) — — (8 ) (2 ) Equity-based compensation (2) (55 ) (45 ) (44 ) (36 ) (15 ) (12 ) (114 ) (93 ) (1) The segment contribution corresponds to Net sales and Other revenues less Cost of net sales, Cost of other revenues, Selling, general & administration and Research & development attributable to segments, excluding amortization and impairments on intangible assets. (2) Equity-based compensation not allocated to segments in 2018 reflects an estimate of the allocation for corporate functions in the historical period based on 2019 actual percentages. Surgical Vision Care Company ($ millions) 2018 2017 2018 2017 2018 2017 Net sales to third parties 3,999 3,733 3,150 3,052 7,149 6,785 Sales to former parent 2 3 2 1 4 4 Other revenues — — — 3 — 3 Net sales and other revenues 4,001 3,736 3,152 3,056 7,153 6,792 Segment contribution (1) 813 691 594 625 1,407 1,316 Amortization of intangible assets (1,019 ) (1,033 ) Impairment charges on intangible assets (378 ) (57 ) General & administration (corporate) (206 ) (202 ) Other (expense)/income, net (52 ) (101 ) Operating (loss) (248 ) (77 ) Interest expense (24 ) (27 ) Other financial income and expense (28 ) (23 ) (Loss) before taxes (300 ) (127 ) Included in segment contribution are: Surgical Vision Care Not allocated Company ($ millions) 2018 2017 2018 2017 2018 2017 2018 2017 Depreciation of property, plant & equipment (114 ) (106 ) (125 ) (109 ) — — (239 ) (215 ) Impairment charges on property, plant & equipment, net (1 ) — (1 ) — — — (2 ) — Equity-based compensation (2) (45 ) (34 ) (36 ) (27 ) (12 ) (10 ) (93 ) (71 ) (1) The segment contribution corresponds to Net sales and Other revenues less Cost of net sales, Cost of other revenues, Selling, general & administration and Research & development attributable to segments, excluding amortization and impairments on intangible assets. (2) Equity-based compensation not allocated to segments in 2018 and 2017 reflects an estimate of the allocation for corporate functions in the historical periods based on 2019 actual percentages. Segmentation - Additional balance sheet disclosure Surgical Vision Care Not allocated (1) Total ($ millions) 2019 2018 2019 2018 2019 2018 2019 2018 Goodwill 4,544 4,538 4,361 4,361 — — 8,905 8,899 Intangible assets other than goodwill 5,770 6,053 1,481 1,646 2,980 2,980 10,231 10,679 (1) Alcon brand name. |
Disclosure of geographical areas | The following table shows the United States, International and countries that accounted for more than 5% of at least one of the respective Alcon totals, for net sales for the years ended December 31, 2019 , 2018 and 2017 , and for selected non-current assets at December 31, 2019 , and 2018 : Net sales (1) Total of selected non-current assets (2) ($ millions unless indicated otherwise) 2019 2018 Country United States 3,055 41 % 2,942 41 % 2,800 41 % 10,559 47 % 10,056 45 % International 4,307 59 % 4,207 59 % 3,985 59 % 12,014 53 % 12,401 55 % thereof: Switzerland (country of domicile) 56 1 % 57 1 % 57 1 % 10,486 46 % 11,166 50 % Japan 656 9 % 593 8 % 561 8 % 66 — % 12 — % China 377 5 % 341 5 % 279 4 % 18 — % 2 — % Other 3,218 44 % 3,216 45 % 3,088 46 % 1,444 6 % 1,221 5 % Company total 7,362 100 % 7,149 100 % 6,785 100 % 22,573 100 % 22,457 100 % (1) Net sales from operations by location of third-party customer. (2) Includes property, plant & equipment, right-of-use assets, goodwill and other intangible assets. |
Disclosure of products and services | Net sales by segment ($ millions) 2019 2018 2017 Surgical Implantables 1,210 1,136 1,045 Consumables 2,304 2,227 2,104 Equipment/other 660 636 584 Total Surgical 4,174 3,999 3,733 Vision Care Contact lenses 1,969 1,928 1,836 Ocular health 1,219 1,222 1,216 Total Vision Care 3,188 3,150 3,052 Net sales to third parties 7,362 7,149 6,785 |
Interest expense and other fi_2
Interest expense and other financial income & expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of components of interest expense | Interest expense ($ millions) 2019 2018 2017 Interest expense on financial debts (81 ) (10 ) (12 ) Interest expense from discounting long-term liabilities (21 ) (9 ) (10 ) Interest expense on lease liabilities (1) (11 ) (5 ) (5 ) Total interest expense (113 ) (24 ) (27 ) (1) For the years ended December 31, 2018 and 2017 , interest expense on finance leases was included in "Interest expense on lease liabilities". |
Disclosure of components of other financial income & expense | Other financial income & expense |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Disclosure of components of income (loss) before taxes | (Loss) before taxes ($ millions) 2019 2018 2017 Switzerland (274 ) (227 ) (104 ) Foreign (58 ) (73 ) (23 ) Total (loss) before taxes (332 ) (300 ) (127 ) |
Disclosure of components of current and deferred income tax expense | Current and deferred income tax (expense)/income ($ millions) 2019 2018 2017 Switzerland (34 ) (77 ) (8 ) Foreign (168 ) (157 ) (95 ) Current income tax expense (202 ) (234 ) (103 ) Switzerland (246 ) 78 7 Foreign 124 229 479 Deferred tax (expense)/income (122 ) 307 486 Total income tax (expense)/income (324 ) 73 383 |
Disclosure of reconciliation of tax rate | The main elements contributing to the difference between Alcon's overall applicable tax rate and the effective tax rate are summarized in the below table. 2019 2018 2017 $ m % $ m % $ m % Applicable tax rate 39 11.7 % 82 27.3 % 37 29.1 % Effect of disallowed expenditures (23 ) (6.9 )% (26 ) (8.7 )% (12 ) (9.4 )% Effect of share based compensation (1 ) (0.3 )% (2 ) (0.7 )% (4 ) (3.1 )% Effect of income taxed at reduced rates 2 0.6 % 2 0.7 % — — Effect of tax credits and allowances 7 2.1 % 13 4.3 % 5 3.9 % Effect of adjustments to contingent consideration liabilities 11 3.3 % 11 3.7 % (8 ) (6.3 )% Effect of option payments (12 ) (3.6 )% (17 ) (5.7 )% (12 ) (9.4 )% Effect of liquidation of a subsidiary — — — — (10 ) (7.9 )% Effect of tax benefits expiring in 2017 (1) — — — — (12 ) (9.4 )% Effect of tax rate changes (2) (342 ) (103.0 )% (14 ) (4.7 )% — — Effect of changes in uncertain tax positions 10 3.0 % (33 ) (11.0 )% (10 ) (7.9 )% Effect of other items (2 ) (0.6 )% (4 ) (1.2 )% (4 ) (3.2 )% Effect of prior year items (3) (13 ) (3.9 )% 61 20.3 % — — % Effect of tax rate change on current and deferred tax assets and liabilities from US tax reform (4) — — % — — % 413 325.2 % Effective tax rate (324 ) (97.6 )% 73 24.3 % 383 301.6 % (1) Effect of tax benefits expiring in 2017 relates to a Swiss subsidiary that was not subject to income tax through the end of calendar year 2017. (2) Effect of tax rate changes in 2019 relates primarily to (i) the adoption of the Swiss Tax Reform which has resulted in a non-cash tax increase in the tax expense of $304 million relating to the re-measurement of the Swiss deferred tax balances and (ii) a $31 million re-measurement of US deferred tax balances as a result of rate changes in the US following legal entity reorganizations executed related to the Spin-off. (3) In 2019, the prior year items relate to changes in certain estimates which resulted in a $13 million tax expense. In 2018, the prior year items relate to out of period income tax benefit of $61 million , which Alcon concluded was not material to the current period or the prior periods to which they relate. (4) Effect of tax rate change on US current and deferred tax assets and liabilities in 2017 relate to the enactment of the Tax Cuts and Jobs Act by the US, which reduced the corporate tax rate from 35% to 21% effective January 1, 2018. This required a re-measurement of the deferred tax balances and a portion of the current tax payables. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | The following table shows the respective useful lives for property, plant and equipment: Useful life Buildings 20 to 40 years Machinery and other equipment Machinery and equipment 7 to 20 years Furniture and vehicles 5 to 10 years Computer hardware 3 to 7 years The following table summarizes the movements of property, plant & equipment during 2019 : ($ millions) Land Buildings Construction Machinery & Total Cost January 1, 2019 60 1,527 657 2,646 4,890 Additions (1) 11 514 82 607 Impact of business combinations 1 1 Disposals and derecognitions (2) (17 ) (1 ) (161 ) (179 ) Transfers with former parent 4 2 29 35 Reclassifications for assets placed in service 104 (417 ) 313 — Other reclassifications (27 ) (27 ) Currency translation effects (1 ) (4 ) (5 ) December 31, 2019 33 1,628 755 2,906 5,322 Accumulated depreciation January 1, 2019 (7 ) (558 ) (7 ) (1,518 ) (2,090 ) Depreciation charge (73 ) (194 ) (267 ) Impairment charge (1 ) (7 ) (8 ) Disposals and derecognitions (2) 14 151 165 Transfers with former parent (2 ) (15 ) (17 ) Other reclassifications 7 7 Currency translation effects 1 1 December 31, 2019 — (618 ) (8 ) (1,583 ) (2,209 ) Net book value at December 31, 2019 33 1,010 747 1,323 3,113 (1) Includes $56 million in non-cash additions. (2) Derecognition of assets that are no longer used and are not considered to have a significant disposal value or other alternative use. As of December 31, 2019, commitments for purchases of property, plant & equipment were $212 million . There were no capitalized borrowing costs. The following table summarizes the movements of property, plant and equipment during 2018 : ($ millions) Land Buildings Construction Machinery & Total Cost January 1, 2018 53 1,386 503 2,506 4,448 Additions 4 468 52 524 Impact of business combinations 1 1 Disposals and derecognitions (1) (16 ) (71 ) (87 ) Reclassifications and transfers with former parent 10 252 (302 ) 203 163 Reclassification to right-of-use assets (2) (86 ) (86 ) Currency translation effects (3 ) (13 ) (12 ) (45 ) (73 ) December 31, 2018 60 1,527 657 2,646 4,890 Accumulated depreciation January 1, 2018 (3 ) (447 ) (1,438 ) (1,888 ) Depreciation charge (70 ) (169 ) (239 ) Impairment charge (1 ) (1 ) (2 ) Disposals and derecognitions (1) 15 72 87 Transfers with former parent (4 ) (69 ) (6 ) (12 ) (91 ) Reclassification to right-of-use assets (2) 7 7 Currency translation effects 6 30 36 December 31, 2018 (7 ) (558 ) (7 ) (1,518 ) (2,090 ) Net book value at December 31, 2018 53 969 650 1,128 2,800 (1) Derecognition of assets that are no longer used and are not considered to have a significant disposal value or other alternative use. (2) The December 31, 2018 balance previously reported for a finance lease asset of $79 million has been reclassified from "Property, Plant, & Equipment" to "Right-of-use assets" . |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Summary of movements of goodwill and intangible assets | The following table summarizes the movements of goodwill and other intangible assets in 2019 : Intangible assets other than goodwill ($ millions) Goodwill Alcon Acquired Technologies Currently Marketing Other Total Cost January 1, 2019 8,899 2,980 249 5,369 4,440 5,960 494 19,492 Impact of business combinations 6 505 505 Additions 7 125 132 Reclassifications — — (33 ) — — — 33 — Disposals and derecognitions (1) (41 ) (41 ) December 31, 2019 8,905 2,980 728 5,369 4,440 5,960 611 20,088 Accumulated amortization January 1, 2019 (3 ) (4,184 ) (2,592 ) (1,906 ) (128 ) (8,813 ) Amortization charge (508 ) (250 ) (240 ) (86 ) (1,084 ) Accumulated amortization on disposals and derecognitions (1) 40 40 December 31, 2019 (3 ) (4,692 ) (2,842 ) (2,146 ) (174 ) (9,857 ) Net book value at December 31, 2019 8,905 2,980 725 677 1,598 3,814 437 10,231 (1) Derecognitions of assets that are no longer used or being developed and are not considered to have a significant disposal value or other alternative use. The following table summarizes the allocation of the net book values of goodwill and other intangible assets by reporting segment at December 31, 2019 : Intangible assets other than goodwill ($ millions) Goodwill Alcon Acquired Technologies Currently Marketing Other Total Surgical 4,544 721 677 374 3,814 184 5,770 Vision Care 4,361 4 1,224 253 1,481 Not allocated to segment (1) 2,980 2,980 Net book value at December 31, 2019 8,905 2,980 725 677 1,598 3,814 437 10,231 (1) Alcon brand name The following table summarizes the movements of goodwill and other intangible assets in 2018 : Intangible assets other than goodwill ($ millions) Goodwill Alcon Acquired Technologies Currently Marketing Other Total Cost January 1, 2018 8,895 2,980 242 5,368 4,094 5,960 370 19,014 Impact of business combinations 4 346 346 Additions 71 1 125 197 Disposals and derecognitions (1) (64 ) (1 ) (65 ) December 31, 2018 8,899 2,980 249 5,369 4,440 5,960 494 19,492 Accumulated amortization January 1, 2018 (58 ) (3,635 ) (2,008 ) (1,668 ) (104 ) (7,473 ) Amortization charge (510 ) (247 ) (238 ) (24 ) (1,019 ) Accumulated amortization on disposals and derecognitions (1) 57 57 Impairment charge (2 ) (39 ) (337 ) (378 ) December 31, 2018 (3 ) (4,184 ) (2,592 ) (1,906 ) (128 ) (8,813 ) Net book value at December 31, 2018 8,899 2,980 246 1,185 1,848 4,054 366 10,679 (1) Derecognitions of assets that are no longer used or being developed and are not considered to have a significant disposal value or other alternative use. The following table summarizes the allocation of the net book values of goodwill and other intangible assets by reporting segment at December 31, 2018 : Intangible assets other than goodwill ($ millions) Goodwill Alcon Acquired Technologies Currently Marketing Other Total Surgical 4,538 216 1,185 438 4,054 160 6,053 Vision Care 4,361 30 1,410 206 1,646 Not allocated to segment 2,980 2,980 December 31, 2018 8,899 2,980 246 1,185 1,848 4,054 366 10,679 |
Assumptions used in calculations for the recoverable amounts of goodwill and intangible assets | The following assumptions are used in the calculations for the recoverable amounts of goodwill and the Alcon brand name: (As a percentage) Surgical Vision Care Terminal growth rate 3.0 3.0 Discount rate (post-tax) 7.5 7.0 |
Intangible asset impairment charges | The following table shows the intangible asset impairment charges for 2019 and 2018 : ($ millions) 2019 2018 Surgical — (378 ) Vision Care — — Total — (378 ) |
Deferred tax assets and liabi_2
Deferred tax assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Disclosure of temporary difference, unused tax losses and unused tax credits | ($ millions) Property, Intangible Pensions and Inventories Tax loss Other Total Gross deferred tax assets at December 31, 2018 12 125 262 39 235 673 Gross deferred tax liabilities at December 31, 2018 (94 ) (1,403 ) (2 ) (14 ) (18 ) (1,531 ) Net deferred tax balance at December 31, 2018 (82 ) (1,403 ) 123 248 39 217 (858 ) At December 31, 2018 (82 ) (1,403 ) 123 248 39 217 (858 ) (Charged)/credited to income (71 ) (194 ) 18 111 50 (36 ) (122 ) Credited to equity 25 25 Credited to other comprehensive income 11 5 16 Impact of business combinations (121 ) 28 (93 ) Other movements (6 ) 11 (11 ) (11 ) (7 ) 24 — Net deferred tax balance at December 31, 2019 (159 ) (1,707 ) 141 348 110 235 (1,032 ) Gross deferred tax assets at December 31, 2019 13 6 151 371 110 281 932 Gross deferred tax liabilities at December 31, 2019 (172 ) (1,713 ) (10 ) (23 ) — (46 ) (1,964 ) Net deferred tax balance at December 31, 2019 (159 ) (1,707 ) 141 348 110 235 (1,032 ) ($ millions) Property, plant & equipment Intangible assets Pensions and other benefit obligations of associates Inventories Tax loss carry- forwards Other assets, provisions and accruals Total Gross deferred tax assets at January 1, 2018 10 121 169 18 232 550 Gross deferred tax liabilities at January 1, 2018 (69 ) (1,531 ) (7 ) (32 ) (25 ) (1,664 ) Net deferred tax balance at January 1, 2018 (59 ) (1,531 ) 114 137 18 207 (1,114 ) At January 1, 2018 (59 ) (1,531 ) 114 137 18 207 (1,114 ) Credited/(charged) to income (23 ) 212 13 82 9 14 307 Charged to equity (2 ) (2 ) Charged to other comprehensive income (2 ) (2 ) Impact of business combinations (78 ) 12 (66 ) Other movements (6 ) (2 ) 29 (2 ) 19 Net deferred tax balance at December 31, 2018 (82 ) (1,403 ) 123 248 39 217 (858 ) Gross deferred tax assets at December 31, 2018 12 125 262 39 235 673 Gross deferred tax liabilities at December 31, 2018 (94 ) (1,403 ) (2 ) (14 ) (18 ) (1,531 ) Net deferred tax balance at December 31, 2018 (82 ) (1,403 ) 123 248 39 217 (858 ) |
Disclosure of components in deferred taxes | The below table presents the Net deferred tax balance as of December 31, 2019 after offsetting $578 million of deferred tax assets and liabilities within the same tax jurisdiction. ($ millions) At December 31, 2019 Deferred tax assets 354 Deferred tax liabilities (1,386 ) Net deferred tax balance (1,032 ) The below table presents the Net deferred tax balance as of December 31, 2018 after offsetting $3 million of deferred tax assets and liabilities within the same tax jurisdiction. ($ millions) At December 31, 2018 Deferred tax assets 670 Deferred tax liabilities (1,528 ) Net deferred tax balance (858 ) |
Disclosure of impact of deferred taxes on current taxes payable | The below table presents deferred tax assets and deferred tax liabilities expected to have an impact on current taxes payable after more than twelve months. ($ billions) At December 31, 2019 At December 31, 2018 Deferred tax assets 0.6 0.3 Deferred tax liabilities 1.8 1.5 |
Financial and other non-curre_2
Financial and other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of financial assets | Financial assets ($ millions) 2019 2018 Long-term financial investments measured at FVOCI 31 19 Long-term financial investments measured at FVPL 28 67 Long-term receivables from customers 136 164 Minimum lease payments from finance lease agreements 78 91 Long-term loans, advances, and security deposits 34 47 Total financial assets 307 388 The below table provides detail related to financial instruments as of December 31, 2019 and 2018 . ($ millions) Note 2019 2018 Cash and cash equivalents Cash in current accounts 392 227 Cash held in time deposits and money market funds 430 — Total Cash and cash equivalents 822 227 Financial assets - measured at fair value through other comprehensive income ("FVOCI") Long-term financial investments 12 31 19 Total financial assets - measured at FVOCI 31 19 Financial assets - measured at amortized costs (1) Trade receivables 14 1,390 1,253 Receivables from former parent 25 — 20 Income tax receivables 17 33 Other financial receivables from former parent 25 — 39 Other current assets (excluding prepaid expenses and other current assets measured at FVPL) 15 379 310 Long-term receivables from customers 12 136 164 Non-current minimum lease payments from finance lease agreements 12 78 91 Long-term loans, advances, and security deposits 12 34 47 Total financial assets - measured at amortized costs 2,034 1,957 Financial assets - measured at fair value through profit and loss ("FVPL") Current portion of long-term financial investments 15 33 31 Derivative fInancial instruments 15 1 — Long-term financial investments 12 28 67 Total financial assets - measured at FVPL 62 98 Total financial assets 2,949 2,301 Financial liabilities - measured at amortized cost or cost (1) Current financial liabilities Financial debts 17 245 47 Lease liabilities 16 61 — Trade payables 833 663 Payables to former parent 25 — 85 Other financial liabilities to former parent 25 — 67 Total current financial liabilities - measured at amortized cost or cost 1,139 862 Non-current financial liabilities Financial debts 17 3,218 — Lease liabilities 16 280 89 Total non-current financial liabilities - measured at amortized cost or cost 3,498 89 Total financial liabilities - measured at amortized cost or cost 4,637 951 Financial liabilities - measured at FVPL Contingent consideration liabilities 19/20 243 162 Derivative financial instruments 17 16 — Total financial liabilities - measured at FVPL 259 162 Total financial liabilities 4,896 1,113 Net financial assets and financial liabilities (1,947 ) 1,188 (1) The carrying amount is a reasonable approximation of fair value, with the exception of the Series 2026, 2029 and 2049 notes recorded in Non-current financial debts with a fair value of $2,049 million and carrying value of $1,979 million as of December 31, 2019 . The notes were valued using a quoted market price for such notes, which have low trading volumes. |
Disclosure of maturity analysis of finance lease payments receivable | The following table shows the receivables of the gross investments in finance leases and the net present value of the minimum lease payments, as well as unearned finance income, related to surgical equipment lease arrangements. The finance income is recorded in "Other income". 2019 2018 ($ millions) Total Unearned Present Provision Net Total Unearned Present Provision Net Not later than one year (1) 51 (4 ) 47 (1 ) 46 64 (5 ) 59 (2 ) 57 Between one and five years 94 (5 ) 89 (23 ) 66 117 (9 ) 108 (28 ) 80 Later than five years 46 (1 ) 45 (33 ) 12 48 (2 ) 46 (35 ) 11 Total 191 (10 ) 181 (57 ) 124 229 (16 ) 213 (65 ) 148 (1) The current portion of the minimum lease payments is recorded in trade receivables or other current assets (to the extent not yet invoiced). |
Disclosure of details of non-current assets | ($ millions) 2019 2018 Deferred compensation plans 122 95 Prepaid post-employment benefit plans 13 12 Other non-current assets 50 41 Total other non-current assets 185 148 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Disclosure of details of inventories | ($ millions) 2019 2018 Raw material, consumables 286 334 Work in progress 101 127 Finished products 1,118 979 Total inventories 1,505 1,440 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of trade receivables | The following table provides details related to Trade receivables as of December 31, 2019 and 2018: ($ millions) 2019 2018 Total gross trade receivables 1,438 1,307 Provisions for doubtful trade receivables (48 ) (54 ) Total trade receivables, net 1,390 1,253 |
Movement in the provision for doubtful trade receivables | The following table summarizes the movement in the provision for doubtful trade receivables: ($ millions) 2019 2018 2017 January 1 (54 ) (77 ) (55 ) Transfers with former parent — 4 — Provisions for doubtful trade receivables charged to the consolidated income statement (17 ) (17 ) (28 ) Utilization of provisions for doubtful trade receivables 7 16 2 Reversal of provisions for doubtful trade receivables 15 16 6 Currency translation effects 1 4 (2 ) December 31 (48 ) (54 ) (77 ) |
Summary of trade receivables overdue status | The following sets forth the trade receivables that are not overdue as specified in the payment terms and conditions established with Alcon's customers, as well as an analysis of overdue amounts and related provisions for doubtful trade receivables: ($ millions) 2019 2018 Not overdue 1,135 1,018 Past due for not more than one month 118 118 Past due for more than one month but less than three months 81 70 Past due for more than three months but less than six months 47 34 Past due for more than six months but less than one year 21 20 Past due for more than one year 36 47 Provisions for doubtful trade receivables (48 ) (54 ) Total trade receivables, net 1,390 1,253 |
Summary of trade receivables from closely monitored countries | The following table shows the gross trade receivables balance from these closely monitored countries as of December 31, 2019 and 2018 , the amounts that are past due for more than one year and the related amount of the provisions for doubtful trade receivables that have been recorded: ($ millions) 2019 2018 Total balance of gross trade receivables from closely monitored countries 209 216 Past due for more than one year 10 14 Provisions for doubtful trade receivables (13 ) (16 ) |
Summary of trade receivables by major currencies | Trade receivables include amounts denominated in the following major currencies: ($ millions) 2019 2018 US dollar (USD) 463 449 Euro (EUR) 243 215 Japanese yen (JPY) 168 152 Chinese yuan (CNY) 102 74 Indian rupee (INR) 33 34 Canadian dollar (CAD) 30 30 Australian dollar (AUD) 29 27 British pound (GBP) 24 25 Russian ruble (RUB) 34 24 South Korean won (KRW) 29 23 Other currencies 235 200 Total trade receivables, net 1,390 1,253 |
Other current assets (Tables)
Other current assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of other current assets | The following table provides details related to Other current assets as of December 31, 2019 and 2018: ($ millions) 2019 2018 Current portion of long-term financial investments measured at FVPL 33 31 Current portion of long-term receivables from customers 122 133 Current portion of minimum lease payments from finance lease agreements 46 57 Prepaid expenses 89 46 Other receivables, security deposits and current assets 147 52 Derivative financial instruments 1 — VAT receivable 64 68 Total other current assets 502 387 |
Right-of-use assets and Lease_2
Right-of-use assets and Lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of right-of-use assets | Right-of-use assets as of December 31, 2019 and January 1, 2019 were comprised of the following: ($ millions) December 31, 2019 January 1, 2019 Land 20 20 Buildings 277 226 Machinery & equipment and other assets 27 33 Total right-of-use assets (1) 324 279 (1) Right-of-use assets, related to operating leases at the date of implementation of IFRS 16, were higher than the lease liabilities at the date of implementation of IFRS 16 by $3 million , due to the net impact of prepayments and accrued lease payments recognized at December 31, 2018 . This impact was offset by the lease liability related to the finance lease exceeding the corresponding capital asset by $10 million . Depreciation charges of $66 million for the year ended December 31, 2019 are shown in the table below by underlying class of asset: ($ millions) 2019 Land 1 Buildings 47 Machinery & equipment and other assets 18 Total 66 |
Reconciliation of lease commitments and lease liability recorded | The reconciliation of lease commitments disclosed as of December 31, 2018 and lease liabilities recorded on January 1, 2019 is as follows: ($ millions) Operating lease commitments as of December 31, 2018 222 Effect of discounting (21 ) Operating leases discounted using the incremental borrowing rate (1) 201 Finance lease liabilities recognized as at December 31, 2018 89 Recognition exemption for short term and low-value leases (4 ) Lease liabilities as of January 1, 2019 286 (1) Weighted average incremental borrowing rate of 2.9% was applied at January 1, 2019, the date of implementation of IFRS 16, Leases |
Disclosure of maturity analysis for non-derivative financial liabilities [text block] | The contractual maturities of the undiscounted lease liabilities as of December 31, 2019 , are as follows: ($ millions) Lease liabilities undiscounted Not later than one year 73 Between one and five years 176 Later than five years 200 Total lease liabilities undiscounted 449 ($ millions) Lease liabilities Not later than one year 61 Between one and five years 140 Later than five years 140 Total lease liabilities 341 The following table provides details on the maturity of the contractual undiscounted cash flows for Alcon's borrowings as of December 31, 2019 : ($ millions) Nominal amount - Current and non-current financial debt Derivatives Total Not later than one year 245 16 261 Between one and five years 1,247 — 1,247 Later than five years 2,000 — 2,000 Total cash flows 3,492 16 3,508 Unamortized debt discount and issuance costs (29 ) — (29 ) Total carrying value 3,463 16 3,479 The following table provides details on the maturity of the future contractual interest payments commitments: ($ millions) Interest Not later than one year 94 Between one and five years 336 Later than five years 653 Total cash flows 1,083 |
Schedule of additional disclosures related to leases | The following table provides additional disclosures related to right-of-use assets and lease liabilities: ($ millions) 2019 Interest expense on lease liabilities 11 Expense on short-term and low value leases 3 Total cash outflows for leases 59 Thereof: Lease liability payments (1) 52 Interest payments (2) 5 Short-term and low value lease payments (2) 2 (1) Reported as cash outflows from financing activities net of lease incentives received (2) Included within total net cash flows from operating activities |
Disclosure of finance lease and operating lease by lessee | Operational lease commitments as of December 31, 2018, were as follows: ($ millions) 2018 Not later than one year 50 Between one and five years 135 Later than five years 37 Total operational lease commitments 222 Future minimum lease payments under finance leases, together with the present value of the minimum lease payments as of December 31, 2018, were as follows: ($ millions) 2018 Not later than one year — Between one and five years 27 Later than five years 153 Total minimum lease liabilities 180 Less future finance charges (91 ) Present value of minimum lease payments 89 |
Non-current and current finan_2
Non-current and current financial debts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Schedule of financial debts | The below table summarizes current and non-current Financial debts outstanding as of December 31, 2019 and 2018 . ($ millions) 2019 2018 Non-current financial debts Facility B 793 — Facility C 391 — Local facilities (Japan) 55 — Series 2026 notes 495 — Series 2029 notes 991 — Series 2049 notes 493 — Revolving facility — — Total non-current financial debts 3,218 — Current financial debts Local facilities: Japan 115 — All others 101 32 Other short-term financial debts 29 15 Derivatives 16 — Total current financial debts 261 47 Total financial debts 3,479 47 |
Disclosure of maturity analysis for non-derivative financial liabilities [text block] | The contractual maturities of the undiscounted lease liabilities as of December 31, 2019 , are as follows: ($ millions) Lease liabilities undiscounted Not later than one year 73 Between one and five years 176 Later than five years 200 Total lease liabilities undiscounted 449 ($ millions) Lease liabilities Not later than one year 61 Between one and five years 140 Later than five years 140 Total lease liabilities 341 The following table provides details on the maturity of the contractual undiscounted cash flows for Alcon's borrowings as of December 31, 2019 : ($ millions) Nominal amount - Current and non-current financial debt Derivatives Total Not later than one year 245 16 261 Between one and five years 1,247 — 1,247 Later than five years 2,000 — 2,000 Total cash flows 3,492 16 3,508 Unamortized debt discount and issuance costs (29 ) — (29 ) Total carrying value 3,463 16 3,479 The following table provides details on the maturity of the future contractual interest payments commitments: ($ millions) Interest Not later than one year 94 Between one and five years 336 Later than five years 653 Total cash flows 1,083 |
Financial instruments - addit_2
Financial instruments - additional disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Details related to financial instruments | Financial assets ($ millions) 2019 2018 Long-term financial investments measured at FVOCI 31 19 Long-term financial investments measured at FVPL 28 67 Long-term receivables from customers 136 164 Minimum lease payments from finance lease agreements 78 91 Long-term loans, advances, and security deposits 34 47 Total financial assets 307 388 The below table provides detail related to financial instruments as of December 31, 2019 and 2018 . ($ millions) Note 2019 2018 Cash and cash equivalents Cash in current accounts 392 227 Cash held in time deposits and money market funds 430 — Total Cash and cash equivalents 822 227 Financial assets - measured at fair value through other comprehensive income ("FVOCI") Long-term financial investments 12 31 19 Total financial assets - measured at FVOCI 31 19 Financial assets - measured at amortized costs (1) Trade receivables 14 1,390 1,253 Receivables from former parent 25 — 20 Income tax receivables 17 33 Other financial receivables from former parent 25 — 39 Other current assets (excluding prepaid expenses and other current assets measured at FVPL) 15 379 310 Long-term receivables from customers 12 136 164 Non-current minimum lease payments from finance lease agreements 12 78 91 Long-term loans, advances, and security deposits 12 34 47 Total financial assets - measured at amortized costs 2,034 1,957 Financial assets - measured at fair value through profit and loss ("FVPL") Current portion of long-term financial investments 15 33 31 Derivative fInancial instruments 15 1 — Long-term financial investments 12 28 67 Total financial assets - measured at FVPL 62 98 Total financial assets 2,949 2,301 Financial liabilities - measured at amortized cost or cost (1) Current financial liabilities Financial debts 17 245 47 Lease liabilities 16 61 — Trade payables 833 663 Payables to former parent 25 — 85 Other financial liabilities to former parent 25 — 67 Total current financial liabilities - measured at amortized cost or cost 1,139 862 Non-current financial liabilities Financial debts 17 3,218 — Lease liabilities 16 280 89 Total non-current financial liabilities - measured at amortized cost or cost 3,498 89 Total financial liabilities - measured at amortized cost or cost 4,637 951 Financial liabilities - measured at FVPL Contingent consideration liabilities 19/20 243 162 Derivative financial instruments 17 16 — Total financial liabilities - measured at FVPL 259 162 Total financial liabilities 4,896 1,113 Net financial assets and financial liabilities (1,947 ) 1,188 (1) The carrying amount is a reasonable approximation of fair value, with the exception of the Series 2026, 2029 and 2049 notes recorded in Non-current financial debts with a fair value of $2,049 million and carrying value of $1,979 million as of December 31, 2019 . The notes were valued using a quoted market price for such notes, which have low trading volumes. |
Details related to financial instruments | The below table provides detail related to financial instruments as of December 31, 2019 and 2018 . ($ millions) Note 2019 2018 Cash and cash equivalents Cash in current accounts 392 227 Cash held in time deposits and money market funds 430 — Total Cash and cash equivalents 822 227 Financial assets - measured at fair value through other comprehensive income ("FVOCI") Long-term financial investments 12 31 19 Total financial assets - measured at FVOCI 31 19 Financial assets - measured at amortized costs (1) Trade receivables 14 1,390 1,253 Receivables from former parent 25 — 20 Income tax receivables 17 33 Other financial receivables from former parent 25 — 39 Other current assets (excluding prepaid expenses and other current assets measured at FVPL) 15 379 310 Long-term receivables from customers 12 136 164 Non-current minimum lease payments from finance lease agreements 12 78 91 Long-term loans, advances, and security deposits 12 34 47 Total financial assets - measured at amortized costs 2,034 1,957 Financial assets - measured at fair value through profit and loss ("FVPL") Current portion of long-term financial investments 15 33 31 Derivative fInancial instruments 15 1 — Long-term financial investments 12 28 67 Total financial assets - measured at FVPL 62 98 Total financial assets 2,949 2,301 Financial liabilities - measured at amortized cost or cost (1) Current financial liabilities Financial debts 17 245 47 Lease liabilities 16 61 — Trade payables 833 663 Payables to former parent 25 — 85 Other financial liabilities to former parent 25 — 67 Total current financial liabilities - measured at amortized cost or cost 1,139 862 Non-current financial liabilities Financial debts 17 3,218 — Lease liabilities 16 280 89 Total non-current financial liabilities - measured at amortized cost or cost 3,498 89 Total financial liabilities - measured at amortized cost or cost 4,637 951 Financial liabilities - measured at FVPL Contingent consideration liabilities 19/20 243 162 Derivative financial instruments 17 16 — Total financial liabilities - measured at FVPL 259 162 Total financial liabilities 4,896 1,113 Net financial assets and financial liabilities (1,947 ) 1,188 (1) The carrying amount is a reasonable approximation of fair value, with the exception of the Series 2026, 2029 and 2049 notes recorded in Non-current financial debts with a fair value of $2,049 million and carrying value of $1,979 million as of December 31, 2019 . The notes were valued using a quoted market price for such notes, which have low trading volumes. |
Disclosure of fair value measurement of assets | The following tables summarize financial assets and liabilities measured at fair value on a recurring basis or at amortized cost or cost as of December 31, 2019 and 2018. December 31, 2019 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost Total Non-current financial assets Long-term financial investments measured at FVOCI — — 31 — 31 Long-term financial investments measured at FVPL — — 28 — 28 Long-term receivables from customers — — — 136 136 Non-current minimum lease payments from finance lease agreements — — — 78 78 Long-term loans, advances, and security deposits — — — 34 34 Total non-current financial assets — — 59 248 307 Current financial assets Money market funds 120 — — — 120 Current portion of long-term financial investments measured at FVPL (1) — — 33 — 33 Current portion of long-term receivables from customers (1) — — — 122 122 Current portion of minimum lease payments from finance lease agreements (1) — — — 46 46 Other receivables, security deposits and current assets (1) — — — 147 147 VAT receivables (1) — — — 64 64 Derivative financial instruments (1) — 1 — — 1 Total current financial assets 120 1 33 379 533 Total financial assets at fair value and amortized cost or cost 120 1 92 627 840 Financial liabilities Contingent consideration liabilities — — (243 ) — (243 ) Non-current financial debt — — — (3,218 ) (3,218 ) Current financial debt — — — (245 ) (245 ) Derivative financial instruments — (16 ) — — (16 ) Total financial liabilities at fair value and amortized cost — (16 ) (243 ) (3,463 ) (3,722 ) (1) Recorded in Other current assets. December 31, 2018 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost Total Non-current financial assets Long-term financial investments measured at FVOCI — — 19 — 19 Long-term financial investments measured at FVPL — — 67 — 67 Long-term receivables from customers — — — 164 164 Non-current minimum lease payments from finance lease agreements — — — 91 91 Long-term loans, advances, and security deposits — — — 47 47 Total non-current financial assets — — 86 302 388 Current financial assets (1) Current portion of long-term financial investments measured at FVPL — — 31 — 31 Current portion of long-term receivables from customers — — — 133 133 Current portion of minimum lease payments from finance lease agreements — — — 57 57 Other receivables, security deposits and current assets — — — 52 52 VAT receivables — — — 68 68 Derivative financial instruments — — — — — Total current financial assets — — 31 310 341 Total financial assets at fair value and amortized cost or cost — — 117 612 729 Financial liabilities Contingent consideration liabilities — — (162 ) — (162 ) Non-current financial debt — — — — — Current financial debt — — — (47 ) (47 ) Derivative financial instruments — — — — — Total financial liabilities at fair value and amortized cost — — (162 ) (47 ) (209 ) (1) Current financial assets referenced in the above table are recorded in Other current assets. Long-term financial investments measured Financial investments ($ millions) 2019 2018 2019 2018 Balance as of January 1 (1) 19 26 98 78 Additions 17 11 34 92 Cash receipts and payments — — (7 ) (5 ) Gains/(losses) recognized in consolidated statements of comprehensive (loss)/income (7 ) (23 ) — — Unrealized gains/(losses) in consolidated income statements — — (3 ) 7 Amortization — — (61 ) (74 ) Reclassification 2 5 — — Balance as of December 31 31 19 61 98 (1) January 1, 2018 balances reflected in this table are as adjusted for adoption of IFRS 9, Financial Instruments . |
Disclosure of fair value measurement of liabilities | Contingent consideration liabilities ($ millions) 2019 2018 Balance as of January 1 (162 ) (113 ) Additions (135 ) (102 ) Accretion for passage of time (21 ) (9 ) Adjustments for changes in assumptions 75 62 Payments — — Balance as of December 31 (243 ) (162 ) The following tables summarize financial assets and liabilities measured at fair value on a recurring basis or at amortized cost or cost as of December 31, 2019 and 2018. December 31, 2019 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost Total Non-current financial assets Long-term financial investments measured at FVOCI — — 31 — 31 Long-term financial investments measured at FVPL — — 28 — 28 Long-term receivables from customers — — — 136 136 Non-current minimum lease payments from finance lease agreements — — — 78 78 Long-term loans, advances, and security deposits — — — 34 34 Total non-current financial assets — — 59 248 307 Current financial assets Money market funds 120 — — — 120 Current portion of long-term financial investments measured at FVPL (1) — — 33 — 33 Current portion of long-term receivables from customers (1) — — — 122 122 Current portion of minimum lease payments from finance lease agreements (1) — — — 46 46 Other receivables, security deposits and current assets (1) — — — 147 147 VAT receivables (1) — — — 64 64 Derivative financial instruments (1) — 1 — — 1 Total current financial assets 120 1 33 379 533 Total financial assets at fair value and amortized cost or cost 120 1 92 627 840 Financial liabilities Contingent consideration liabilities — — (243 ) — (243 ) Non-current financial debt — — — (3,218 ) (3,218 ) Current financial debt — — — (245 ) (245 ) Derivative financial instruments — (16 ) — — (16 ) Total financial liabilities at fair value and amortized cost — (16 ) (243 ) (3,463 ) (3,722 ) (1) Recorded in Other current assets. December 31, 2018 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost Total Non-current financial assets Long-term financial investments measured at FVOCI — — 19 — 19 Long-term financial investments measured at FVPL — — 67 — 67 Long-term receivables from customers — — — 164 164 Non-current minimum lease payments from finance lease agreements — — — 91 91 Long-term loans, advances, and security deposits — — — 47 47 Total non-current financial assets — — 86 302 388 Current financial assets (1) Current portion of long-term financial investments measured at FVPL — — 31 — 31 Current portion of long-term receivables from customers — — — 133 133 Current portion of minimum lease payments from finance lease agreements — — — 57 57 Other receivables, security deposits and current assets — — — 52 52 VAT receivables — — — 68 68 Derivative financial instruments — — — — — Total current financial assets — — 31 310 341 Total financial assets at fair value and amortized cost or cost — — 117 612 729 Financial liabilities Contingent consideration liabilities — — (162 ) — (162 ) Non-current financial debt — — — — — Current financial debt — — — (47 ) (47 ) Derivative financial instruments — — — — — Total financial liabilities at fair value and amortized cost — — (162 ) (47 ) (209 ) (1) Current financial assets referenced in the above table are recorded in Other current assets. |
Provisions and other non-curr_2
Provisions and other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of provisions and other non-current liabilities | The below table provides details related to Provisions and other non-current liabilities as of December 31, 2019 , and 2018 . ($ millions) 2019 2018 Accrued liability for employee benefits: Defined benefit pension plans (1) 291 254 Other long-term employee benefits and deferred compensation 140 104 Other post-employment benefits (1) 423 345 Provisions for product liabilities, governmental investigations and other legal matters — — Contingent consideration (2) 208 143 Other non-current liabilities 106 67 Total provisions and other non-current liabilities 1,168 913 (1) Note 23 to these Consolidated Financial Statements provides additional disclosures related to post-employment benefits. (2) Note 18 to these Consolidated Financial Statements provides additional disclosures related to contingent consideration. |
Disclosure of details of non-current product liabilities and other legal matter provisions | Product liability, governmental investigations and other legal matters provision movements ($ millions) 2019 2018 2017 January 1 42 49 9 Additions to provisions — 1 55 Cash payments (40 ) (1 ) (6 ) Releases of provisions (2 ) (7 ) (9 ) December 31 — 42 49 Less current portion — (42 ) (43 ) Non-current provisions for product liabilities, governmental investigations and other legal matters at December 31 — — 6 |
Provisions and other current _2
Provisions and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of provisions and other current liabilities | The following table provides details related to Provisions and other current liabilities as of December 31, 2019 and 2018: ($ millions) 2019 2018 Taxes other than income taxes 81 57 Restructuring provisions 28 8 Accrued expenses for goods and services received but not invoiced 79 71 Accruals for royalties 10 6 Accruals for deductions from revenue 212 194 Accruals for compensation and benefits including social security 382 363 Deferred income 97 94 Provisions for product liabilities, governmental investigations and other legal matters (1) — 42 Accrued share-based payments 10 6 Accrued interest on financial debts 19 — Contingent considerations (2) 35 19 Other payables 85 20 Total provisions and other current liabilities 1,038 880 (1) Note 19 to these Consolidated Financial Statements provides additional disclosures related to legal provisions. (2) Note 18 to these Consolidated Financial Statements provides additional disclosures related to contingent consideration. |
Disclosure of movement of accruals for deductions from revenue | The following table shows the movement of the accruals for deductions from revenue: ($ millions) 2019 2018 2017 January 1 194 213 182 Additions 662 603 619 Payments/utilizations (646 ) (613 ) (601 ) Changes in offset against gross trade receivables 1 2 7 Currency translation effects 1 (11 ) 6 December 31 212 194 213 |
Disclosure of movement of restructuring provisions | The following table shows the movement of the restructuring provisions: ($ millions) 2019 2018 2017 January 1 8 3 13 Additions 32 13 — Cash payments (10 ) (7 ) (6 ) Releases (2 ) (2 ) (4 ) Currency translation effects — 1 — December 31 28 8 3 |
Consolidated statement of cas_2
Consolidated statement of cash flows - additional details (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash Flow Statement [Abstract] | |
Disclosure of detailed information about cash flow statement line items | ($ millions) 2019 2018 2017 Property, plant & equipment 275 241 215 Right-of-use assets 66 — — Intangible assets 1,084 1,397 1,090 Financial assets 31 (16 ) 29 Total 1,456 1,622 1,334 |
Disclosure of detailed information of change in net current assets and other operating cash flow items | ($ millions) 2019 2018 2017 (Increase) in inventories (108 ) (150 ) (87 ) (Increase)/decrease in trade receivables (115 ) 53 (54 ) Increase in trade payables 84 44 48 Net change in other current assets (26 ) 83 87 Net change in other current liabilities 117 50 42 Total (48 ) 80 36 |
Disclosure of detailed information of cash flows arising from acquisitions | ($ millions) 2019 2018 2017 Net assets recognized as a result of business combinations (418 ) (286 ) (124 ) Payables contingent consideration 135 102 54 Other payments — (55 ) Cash flows (283 ) (239 ) (70 ) |
Disclosure of reconciliation of liabilities arising from financing activities | Financial Assets Financial Liabilities ($ millions) Other financial receivables from former parent Non-current financial debts Current financial debts Other financial liabilities to former parent Total January 1, 2019 (39 ) — 47 67 114 Proceeds from non-current financial debts, net of issuance costs 3,724 3,724 Repayment of non-current financial debts (509 ) (509 ) Proceeds from Bridge Facility, net of issuance costs 1,495 1,495 Repayment of Bridge Facility (1,500 ) (1,500 ) Change in current financial debts 202 202 Non-cash changes in derivatives and other fair value adjustments 2 20 22 Change in other financial receivables from former parent 39 Change in other financial liabilities to former parent (67 ) (67 ) Currency translation effects 1 (3 ) (2 ) December 31, 2019 — 3,218 261 — 3,479 Financial Assets Financial Liabilities ($ millions) Other financial receivables from former parent Non-current financial debts Current financial debts Other financial liabilities to former parent Total January 1, 2018 (65 ) 84 65 46 195 Change in current financial debts (6 ) (6 ) Change in other financial receivables from former parent 26 Change in other financial liabilities to former parent 21 21 Non-cash change in finance lease obligation 5 5 Currency translation effects (12 ) (12 ) Reclassification from non-current financial debts to lease liabilities (89 ) (89 ) December 31, 2018 (39 ) — 47 67 114 |
Acquisitions of businesses (Tab
Acquisitions of businesses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations1 [Abstract] | |
Disclosure of fair value of assets and liabilities arising from acquisitions | ($ millions) 2019 2018 2017 Property, plant & equipment 1 1 — Currently marketed products — 346 — Acquired research & development 505 — 178 Deferred tax assets 28 12 8 Inventories — 3 — Trade receivables and other current assets — 2 — Cash and cash equivalents 6 5 1 Deferred tax liabilities (121 ) (78 ) (64 ) Trade payables and other liabilities (1 ) (4 ) — Net identifiable assets acquired 418 287 123 Acquired liquidity (6 ) (5 ) (1 ) Goodwill 6 4 2 Net assets recognized as a result of business combinations 418 286 124 |
Post-employment benefits for _2
Post-employment benefits for associates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Summary of funded and unfunded Defined Benefit Obligations and Reconciliation of net liability | The reconciliation of the net liability from January 1 to December 31 is as follows: Pension plans Other post-employment benefit plans ($ millions) 2019 2018 2019 2018 Net liability at January 1 (242 ) (232 ) (345 ) (317 ) Current service cost (22 ) (28 ) (8 ) (11 ) Net interest expense (5 ) (6 ) (14 ) (11 ) Administrative expenses (1 ) (1 ) — — Past service costs and settlements (2 ) (1 ) — — Remeasurements (36 ) 1 (28 ) 5 Currency translation effects 6 6 — — Employer contributions 21 19 (28 ) (11 ) Effect of acquisitions, divestments or transfers 5 (2 ) — — Change in limitation on recognition of fund surplus (2 ) 2 — — Net liability at December 31 (278 ) (242 ) (423 ) (345 ) Amounts recognized in the balance sheet Prepaid benefit cost 13 12 — — Accrued benefit liability (291 ) (254 ) (423 ) (345 ) The following tables summarize the funded and unfunded DBO for pension and other post-employment benefit plans of Alcon associates at December 31, 2019 and 2018 : Pension plans Other post-employment benefit plans ($ millions) 2019 2018 2019 2018 Benefit obligation at January 1 662 671 385 382 Current service cost 22 28 8 11 Interest cost 13 15 15 13 Past service costs and settlements 2 — — — Administrative expenses 1 1 — — Remeasurement losses/(gains) arising from changes in financial assumptions 71 (17 ) 52 (3 ) Remeasurement losses/(gains) arising from changes in demographic assumptions 6 1 (1 ) 6 Experience-related remeasurement (gains)/losses (5 ) 2 (20 ) (11 ) Currency translation effects 1 (15 ) — — Benefit payments (15 ) (29 ) (16 ) (13 ) Contributions of associates 5 4 — — Effect of acquisitions, divestments or transfers (40 ) 1 — — Benefit obligation at December 31 723 662 423 385 Fair value of plan assets at January 1 424 445 40 65 Interest income 8 9 1 2 Return on plan assets excluding interest income 36 (13 ) 3 (3 ) Currency translation effects 7 (9 ) — — Employer contributions 21 19 (28 ) (11 ) Contributions of associates 5 4 — — Settlements — (1 ) — — Benefit payments (15 ) (29 ) (16 ) (13 ) Effect of acquisitions, divestments or transfers (35 ) (1 ) — — Fair value of plan assets at December 31 451 424 — 40 Funded status (272 ) (238 ) (423 ) (345 ) Limitation on recognition of fund surplus at January 1 (4 ) (6 ) Change in limitation on recognition of fund surplus (including exchange rate differences) (2 ) 2 Limitation on recognition of fund surplus at December 31 (6 ) (4 ) Net liability in the balance sheet at December 31 (278 ) (242 ) (423 ) (345 ) |
Breakdown of DBO for pension plans by geography and type of member | The following tables show a breakdown of the DBO for pension plans by geography and type of member and the breakdown of plan assets into the geographical locations in which they are held: 2019 ($ millions) Switzerland United Germany United Rest of Total Benefit obligation at December 31 244 127 109 98 145 723 Thereof: unfunded plans 47 29 — — 23 99 Thereof: unfunded portion of funded plans (1) 65 18 92 — 17 192 By type of member Active 216 40 61 — 123 440 Deferred pensioners 12 46 27 54 12 151 Pensioners 16 41 21 44 10 132 Fair value of plan assets at December 31 132 80 17 109 113 451 Funded status (112 ) (47 ) (92 ) 11 (32 ) (272 ) (1) Excludes $8 million of Prepaid benefit costs and the limitation on recognition of fund surplus. 2018 ($ millions) Switzerland United Germany United Rest of Total Benefit obligation at December 31 201 111 94 86 170 662 Thereof: unfunded plans 49 21 — — 18 88 Thereof: unfunded portion of funded plans (1) 46 23 78 — 19 166 By type of member Active 166 36 56 — 148 406 Deferred pensioners 18 32 22 69 9 150 Pensioners 17 43 16 17 13 106 Fair value of plan assets at December 31 106 67 16 98 137 424 Funded status (95 ) (44 ) (78 ) 12 (33 ) (238 ) (1) Excludes $4 million of Prepaid benefit cost and the limitation on recognition of fund surplus. |
Defined benefit plans assumptions | The healthcare cost trend rate assumptions used for other post-employment benefits are as follows: 2019 2018 2017 Healthcare cost trend rate assumed for next year 6.5 % 7.0 % 6.5 % Rate to which the cost trend rate is assumed to decline 4.5 % 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2028 2028 2025 The following table shows the principal weighted average actuarial assumptions used for calculating defined benefit plans and other post-employment benefits of Alcon associates: Pension plans Other post-employment 2019 2018 2019 2018 Discount rate 1.7 % 2.2 % 3.3 % 4.3 % Expected rate of pension increase 1.2 % 1.1 % Expected rate of salary increase 3.3 % 2.8 % Interest on savings account 1.0 % 0.8 % Current average life expectancy for a 65-year-old male (in years) 21 21 21 21 Current average life expectancy for a 65-year-old female (in years) 24 23 23 23 |
Disclosure of sensitivity analysis for actuarial assumptions | The following table shows the sensitivity of the defined benefit pension and other post-employment benefit obligations to the principal actuarial assumptions as of December 31, 2019 : ($ millions) Change in 2019 year-end 25 basis point increase in discount rate (43 ) 25 basis point decrease in discount rate 46 1 year increase in life expectancy 32 25 basis point increase in rate of pension increase 15 25 basis point decrease in rate of pension increase (27 ) 25 basis point increase of interest on savings account 2 25 basis point decrease of interest on savings account (2 ) 25 basis point increase in rate of salary increase 6 25 basis point decrease in rate of salary increase (6 ) |
Fair value of plan assets and asset allocation | The following table shows the weighted average plan asset allocation of funded defined benefit pension plans at December 31, 2019 , and 2018 : Pension plans (as a percentage) Long-term Long-term 2019 2018 Equity securities 15 40 32 28 Debt securities 20 60 42 43 Real estate 5 20 7 9 Alternative investments 0 20 15 17 Cash and other investments 0 15 4 3 Total 100 100 |
Schedule of expected future cash flows for benefit plans | The following table summarizes expected future cash flows for pension and other post-employment benefit plans as of December 31, 2019 : ($ millions) Pension plans Other Employer contributions 2020 (estimated) 14 — Expected future benefit payments 2020 41 21 2021 26 22 2022 27 24 2023 27 25 2024 32 26 2025-2029 169 133 |
Equity-based compensation (Tabl
Equity-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
Disclosure of number and weighted average exercise prices of other equity instruments | The below table summarizes unvested share movements for all Alcon equity-based incentive plans from the Spin-off through December 31, 2019: 2019 Number of Weighted average Fair value in Replacement awards issued at Spin-off (1) 4,222 n/a 212,367 Granted Restricted awards 625 56.1 35,037 Performance awards 117 58.0 6,782 Vested (1) (108 ) n/a (5,432 ) Forfeited (1) (114 ) n/a (5,734 ) Unvested shares at December 31 4,742 51.2 243,020 (1) Based on estimated fair value per share at the time of Spin-off. The below table summarizes unvested share movements for all plans under the Former Parent for the year ended December 31, 2018 (Novartis AG RSAs, RSUs, and PSUs): 2018 Number of Weighted average fair value at grant date in $ Fair value in Unvested shares at January 1 2,800 74.4 208,300 Granted Annual incentive 168 83.7 14,062 Share savings plans 109 85.5 9,320 Select North America 689 77.9 53,673 Select outside North America 141 79.8 11,252 Long-Term Performance Plan 316 88.4 27,934 Long-Term Relative Performance Plan 37 51.2 1,894 Other share awards 205 83.1 17,036 Vested (814 ) 93.0 (75,702 ) Forfeited (208 ) 80.4 (16,723 ) Unvested shares at December 31 3,443 72.9 251,046 |
Summary of shares authorized | The table below discloses the number of shares authorized under the plans as of December 31, 2019: (thousands) 2019 Long-term Incentive Plan 20,000 Deferred Bonus Stock Plan 1,500 Swiss Employee Share Ownership Plan 475 Other share savings plans 275 Authorized as of December 31, 2019 22,250 |
Disclosure of number and weighted average exercise prices of share options | The following table shows the activity associated with the Novartis AG share options during the year ended December 31, 2018. The weighted average prices in the table below are translated from Swiss francs into USD at historical rates. 2018 Options Weighted average Weighted average Options outstanding at January 1 0.5 61.1 24.7 Sold or exercised (0.1 ) 59.7 29.1 Outstanding at December 31 0.4 61.4 26.5 Exercisable at December 31 0.4 61.4 26.5 All Novartis AG share options were granted at an exercise price that was equal to the closing market price of the Novartis AG shares at the grant date. The weighted average Novartis AG share price at the dates of sale or exercise was $86.2 . The following table summarizes information about Novartis AG share options outstanding at December 31, 2018 : Options outstanding Range of exercise prices($) Number Average remaining Weighted average 45 - 55 32 0.7 52.4 56 - 66 394 3.5 62.1 Total 426 3.3 61.4 Options under Novartis equity plan "Select" for North America The following table shows the activity associated with the Novartis AG American Depositary Receipts ("ADR") options during the period: 2018 ADR options Weighted average Weighted average Options outstanding at January 1 1.8 62.5 21.4 Sold or exercised (0.5 ) 62.4 25.8 Outstanding at December 31 1.3 62.6 23.2 Excercisable at December 31 1.3 62.6 23.2 All ADR options were granted at an exercise price that was equal to the closing market price of the ADRs at the grant date. The weighted average ADR price at the dates of sale or exercise was $81.4 . The following table summarizes information about ADR options outstanding at December 31, 2018 : ADR options outstanding Range of exercise prices ($) Number Average remaining Weighted average ($) 45 - 55 30 0.6 50.7 56 - 66 1,258 3.6 62.9 Total 1,288 3.5 62.6 |
Related parties transactions (T
Related parties transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | The following table summarizes compensation information for key management personnel ( 7 members for all years presented): ($ millions) 2019 2018 2017 Cash and other compensation 12.5 10.3 9.3 Post-employment benefits 0.9 0.8 0.8 Equity-based compensation 10.7 11.3 6.8 Total 24.1 22.4 16.9 The following table summarizes amounts for the years ended December 31, 2019 , 2018 , and 2017 : ($ millions) 2019 (1) 2018 2017 Sales to former parent — 4 4 Contract manufacturing revenues from former parent 47 — — Purchases from former parent 19 4 3 ($ millions) December 31, 2018 (1) Trade and other receivables from former parent 20 Trade and other payables to former parent 85 Other financial receivables from former parent 39 Other financial liabilities to former parent 67 (1) Activity presented strictly relates to the period during which Novartis was a related party (up to April 9, 2019). |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Summary of commitments to make payments under long-term research agreements | As of December 31, 2019 , the commitments to make payments under those agreements, and their estimated timing, were as follows: ($ millions) 2019 2020 28 2021 41 2022 4 2023 4 2024 33 Thereafter 71 Total 181 |
Alcon subsidiaries (Tables)
Alcon subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Separate Financial Statements [Abstract] | |
Disclosure of details of subsidiaries | The following table lists the Alcon legal entities with Total assets or Net sales to third parties in excess of $5 million included in the Consolidated Financial Statements at and for the year ended December 31, 2019, respectively. The equity interest percentage shown in the table represents Alcon's share in voting rights in those entities. Unless otherwise stated, each entity has share capital consisting of equity held directly by the Company or another of its consolidated subsidiaries. Country of organization/Entity name Place of business Equity Argentina Alcon Laboratorios Argentina S.A. Buenos Aires 100 % Australia Alcon Laboratories (Australia) Pty Ltd Frenchs Forest, NSW 100 % Austria Alcon Ophthalmika GmbH Wein 100 % Belgium Alcon Laboratories Belgium BVBA Puurs 100 % N.V. Alcon S.A. Vilvoorde 100 % Canada Alcon Canada Inc. Mississauga, Ontario 100 % Chile Alcon Laboratorios Chile Ltd. Santiago de Chile 100 % China Alcon (China) Ophthalmic Product Co., Ltd. Beijing 100 % Alcon Hong Kong Limited Hong Kong 100 % Colombia Laboratorios Alcon de Colombia S.A. Santafé de Bogotá 100 % Czech Republic Alcon Pharmaceuticals (Czech Republic) s.r.o. Prague 100 % Denmark Alcon Nordic A/S Copenhagen 100 % Dominican Republic Alcon Dominicana, SRL Santo Domingo 100 % Ecuador AlconLab Ecuador S.A. Quito 100 % France Laboratoires Alcon S.A.S. Rueil-Malmaison 100 % Germany Alcon Pharma GmbH Freiburg im Breisgau 100 % CIBA Vision GmbH Grosswallstadt 100 % WaveLight GmbH Erlangen 100 % Greece Alcon Laboratories Hellas- Single Member Commercial and Industrial S.A.C.I. Maroussi, Athens 100 % Hungary Alcon Hungary Pharmaceuticals Trading Limited Liability Company Budapest 100 % India Alcon Laboratories (India) Private Limited Bangalore 100 % Indonesia PT. CIBA Vision Batam Batam 100 % Ireland Alcon Laboratories Ireland Limited Cork City 100 % Israel Optonol Ltd. Neve-Ilan 100 % Country of organization/Entity name Place of business Equity Italy Alcon Italia S.p.A. Milano 100 % Japan Alcon Japan Ltd. Tokyo 100 % Malaysia Alcon Laboratories (Malaysia) Sdn. Bhd. Petaling Jaya 100 % CIBA Vision Johor Sdn. Bhd. Kuala Lumpur 100 % Mexico Alcon Laboratorios, S.A. de C.V. Ciudad de Mexico 100 % Morocco Alcon Maroc SARL D´Associé Unique Casablanca 100 % Netherlands Alcon Nederland B.V. Arnhem 100 % New Zealand Alcon Laboratories (New Zealand) Ltd. Auckland 100 % Panama Alcon Centroamerica S.A. Panama City 100 % Peru Alcon Pharmaceutical del Peru S.A. Lima 100 % Philippines Alcon Laboratories (Philippines), Inc. Manila 100 % Poland Alcon Polska Sp. z o.o. Warszawa 100 % Portugal Alcon Portugal-Produtos e Equipamentos Oftalmológicos Lda. Porto Salvo 100 % Puerto Rico Alcon (Puerto Rico), Inc. Cataño, PR 100 % Romania Alcon Romania S.R.L. Bucharest 100 % Russian Federation Alcon Farmacevtika LLC Moscow 100 % Singapore Alcon Pte Ltd Singapore 100 % Alcon Singapore Manufacturing Pte Ltd Singapore 100 % CIBA Vision Asian Manufacturing and Logistics Pte Ltd. Singapore 100 % South Africa Alcon Laboratories (South Africa) (Pty) Ltd. Midrand 100 % South Korea Alcon Korea Ltd. Seoul 100 % Spain Alcon Healthcare S.A. Barcelona 100 % Switzerland Alcon Inc. Fribourg 100 % Alcon Grieshaber AG Schaffhausen 100 % Alcon Management SA Vernier 100 % Alcon Pharmaceuticals Ltd. Fribourg 100 % Alcon Services AG Fribourg 100 % Alcon Switzerland SA Risch 100 % Thailand Alcon Laboratories (Thailand) Limited Bangkok 100 % Turkey Alcon Laboratuvarlari Ticaret A.S. Istanbul 100 % Country of organization/Entity name Place of business Equity Ukraine Alcon Ukraine LLC Kiev 100 % United Kingdom Alcon Eye Care UK Limited Frimley/Camberley 100 % United States of America Alcon Finance Corporation Wilminton, DE 100 % Alcon Laboratories, Inc. Wilminton, DE 100 % Alcon RefractiveHorizons, LLC Fort Worth, TX 100 % Alcon Research, LLC Fort Worth, TX 100 % Alcon Vision, LLC Fort Worth, TX 100 % CIBA Vision, LLC Duluth, GA 100 % WaveLight, Inc. Sterling, VA 100 % ClarVista Medical, Inc. Aliso Viejo, CA 100 % PowerVision, Inc. Fort Worth, TX 100 % Tear Film Innovations, Inc. Fort Worth, TX 100 % TrueVision Systems, Inc. Fort Worth, TX 100 % Alcon Lensx, Inc. Fort Worth, TX 100 % The list below shows the principal Novartis legal entities containing assets, liabilities and results of operations attributable to the Alcon business with Total assets or Net sales to third parties in excess of $5 million included in the Consolidated Financial Statements. Brazil (1) Novartis Biociências S.A. Mexico Novartis Farmacéutica, S.A. de C.V. |
Description of business (Detail
Description of business (Details) $ in Millions | Dec. 31, 2019USD ($)segment | Apr. 09, 2019 |
Corporate Information And Statement Of IFRS Compliance [Abstract] | ||
Number of reporting segments | segment | 2 | |
Shares received in spin-off | 0.2 | |
Total asset and net sales threshold | $ | $ 5 |
Selected accounting policies -
Selected accounting policies - Schedule of useful lives for property, plant, and equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 20 years |
Bottom of range [member] | Machinery and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 7 years |
Bottom of range [member] | Furniture and vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Bottom of range [member] | Computer equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
Top of range [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 40 years |
Top of range [member] | Machinery and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 20 years |
Top of range [member] | Furniture and vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 10 years |
Top of range [member] | Computer equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 7 years |
Selected accounting policies _2
Selected accounting policies - Schedule of useful lives of intangible assets (Details) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | |
Currently marketed products [member] | Bottom of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Finite-lived intangible asset, useful life | 5 years | ||
Currently marketed products [member] | Top of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Finite-lived intangible asset, useful life | 20 years | ||
Marketing know-how [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Finite-lived intangible asset, useful life | 25 years | ||
Technologies [member] | Bottom of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Finite-lived intangible asset, useful life | 10 years | ||
Technologies [member] | Top of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Finite-lived intangible asset, useful life | 20 years | ||
Other intangible assets (including software) [member] | Bottom of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Finite-lived intangible asset, useful life | 3 years | 3 years | 3 years |
Other intangible assets (including software) [member] | Top of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Finite-lived intangible asset, useful life | 10 years | 7 years | 10 years |
Selected accounting policies _3
Selected accounting policies - Additional information (Details) - USD ($) $ in Millions | Jul. 01, 2019 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||||||
Cash flow projection period | 5 years | |||||||||
Right-of-use assets | $ 324 | [1],[2] | $ 324 | [1],[2] | $ 279 | $ 79 | [1],[2] | |||
Lease liabilities | [1],[2] | 280 | 280 | 89 | ||||||
Financial debts | (261) | (261) | (47) | |||||||
Property, plant & equipment | [1],[2] | (3,113) | (3,113) | $ (2,800) | ||||||
Technology-based intangible asset, SAP ERP [member] | ||||||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||||||
Amortisation decrease due to change in useful life | 5 | |||||||||
Amortisation decrease due to change in useful life, annual amount | $ 10 | $ 10 | ||||||||
Finite-lived intangible asset, useful life | 10 years | 7 years | ||||||||
Bottom of range [member] | Other intangible assets (including software) [member] | ||||||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||||||
Finite-lived intangible asset, useful life | 3 years | 3 years | 3 years | |||||||
Top of range [member] | Other intangible assets (including software) [member] | ||||||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||||||
Finite-lived intangible asset, useful life | 10 years | 7 years | 10 years | |||||||
[1] | Alcon adopted IFRS 16, Leases as of January 1, 2019 using the modified retrospective approach as described in Notes 3 and 16 to these Consolidated Financial Statements. Under the modified retrospective approach, comparative information was not restated. | |||||||||
[2] | The December 31, 2018 balances previously reported for a finance lease liability and corresponding asset of $89 million and $79 million , respectively, have been reclassified from "Non-current financial debts" and "Property, Plant, & Equipment" to "Non-current lease liabilities" and "Right-of-use assets", respectively . |
Significant transactions (Detai
Significant transactions (Details) - USD ($) | Apr. 02, 2019 | Mar. 13, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 23, 2019 | Apr. 09, 2019 | Dec. 19, 2018 | Dec. 17, 2018 | Sep. 20, 2017 |
Disclosure of detailed information about business combination [line items] | ||||||||||
Financial debts | $ 3,479,000,000 | $ 47,000,000 | ||||||||
Cash paid for intercompany transactions related to spin-off | $ 3,100,000,000 | |||||||||
Net assets | $ 20,000,000,000 | |||||||||
Net identifiable assets acquired | 418,000,000 | 287,000,000 | $ 123,000,000 | |||||||
Deferred tax assets | 28,000,000 | 12,000,000 | 8,000,000 | |||||||
Cash and cash equivalents | 6,000,000 | 5,000,000 | 1,000,000 | |||||||
Deferred tax liabilities recognised as of acquisition date | 121,000,000 | 78,000,000 | 64,000,000 | |||||||
Goodwill | 6,000,000 | 4,000,000 | 2,000,000 | |||||||
Consideration paid (received) | $ 283,000,000 | $ 239,000,000 | $ 70,000,000 | |||||||
PowerVision, Inc. [Member] | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Percentage of voting equity interests acquired | 100.00% | |||||||||
Consideration transferred, acquisition-date fair value | $ 424,000,000 | |||||||||
Cash transferred | 289,000,000 | |||||||||
Contingent liabilities recognised as of acquisition date | 135,000,000 | |||||||||
Net identifiable assets acquired | 418,000,000 | |||||||||
Identifiable intangible assets recognised as of acquisition date | 505,000,000 | |||||||||
Deferred tax liabilities recognised as of acquisition date | 93,000,000 | |||||||||
Other net assets recognised as of acquisition date | 6,000,000 | |||||||||
Goodwill | 6,000,000 | |||||||||
Consideration paid (received) | $ 283,000,000 | |||||||||
TrueVision Systems, Inc. [Member] | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Percentage of voting equity interests acquired | 100.00% | |||||||||
Consideration transferred, acquisition-date fair value | $ 146,000,000 | |||||||||
Cash transferred | 110,000,000 | |||||||||
Contingent liabilities recognised as of acquisition date | 36,000,000 | |||||||||
Net identifiable assets acquired | 144,000,000 | |||||||||
Identifiable intangible assets recognised as of acquisition date | 172,000,000 | |||||||||
Deferred tax liabilities recognised as of acquisition date | 29,000,000 | |||||||||
Other net assets recognised as of acquisition date | 1,000,000 | |||||||||
Goodwill | $ 2,000,000 | |||||||||
Tear Film Innovations, Inc. [Member] | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Percentage of voting equity interests acquired | 100.00% | |||||||||
Consideration transferred, acquisition-date fair value | $ 145,000,000 | |||||||||
Cash transferred | 79,000,000 | |||||||||
Contingent liabilities recognised as of acquisition date | 66,000,000 | |||||||||
Net identifiable assets acquired | 143,000,000 | |||||||||
Identifiable intangible assets recognised as of acquisition date | 174,000,000 | |||||||||
Cash and cash equivalents | 5,000,000 | |||||||||
Deferred tax liabilities recognised as of acquisition date | 37,000,000 | |||||||||
Other net assets recognised as of acquisition date | 1,000,000 | |||||||||
Goodwill | $ 2,000,000 | |||||||||
ClarVista Medical, Inc. [Member] | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Percentage of voting equity interests acquired | 100.00% | |||||||||
Consideration transferred, acquisition-date fair value | $ 125,000,000 | |||||||||
Cash transferred | 71,000,000 | |||||||||
Contingent liabilities recognised as of acquisition date | 54,000,000 | |||||||||
Net identifiable assets acquired | 123,000,000 | |||||||||
Identifiable intangible assets recognised as of acquisition date | 178,000,000 | |||||||||
Deferred tax assets | 8,000,000 | |||||||||
Cash and cash equivalents | 1,000,000 | |||||||||
Deferred tax liabilities recognised as of acquisition date | 64,000,000 | |||||||||
Goodwill | $ 2,000,000 | |||||||||
Senior Notes [Member] | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Notional amount | $ 2,000,000,000 | |||||||||
Senior notes due 2026 [member] | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Notional amount | $ 500,000,000 | |||||||||
Borrowings, interest rate | 2.75% | |||||||||
Senior notes due 2029 [member] | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Notional amount | $ 1,000,000,000 | |||||||||
Borrowings, interest rate | 3.00% | |||||||||
Senior notes due 2049 [member] | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Notional amount | $ 500,000,000 | |||||||||
Borrowings, interest rate | 3.80% | |||||||||
Bridge and other term loans [member] | ||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||
Proceeds from borrowings | $ 3,200,000,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) | Dec. 31, 2019segment |
Operating Segments [Abstract] | |
Number of reporting segments | 2 |
Segment Information - Combined
Segment Information - Combined income statements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Net sales to third parties | $ 7,362,000,000 | $ 7,149,000,000 | $ 6,785,000,000 |
Sales to former parent | 0 | 4,000,000 | 4,000,000 |
Other revenues | 146,000,000 | 0 | 3,000,000 |
Net sales and other revenues | 7,508,000,000 | 7,153,000,000 | 6,792,000,000 |
Segment contribution | 1,486,000,000 | 1,407,000,000 | 1,316,000,000 |
Amortization of intangible assets | (1,084,000,000) | (1,019,000,000) | (1,033,000,000) |
Impairment charges on intangible assets | 0 | (378,000,000) | (57,000,000) |
General & administration (corporate) | (243,000,000) | (206,000,000) | (202,000,000) |
Other (expense)/income, net | (346,000,000) | (52,000,000) | (101,000,000) |
Operating (loss) | (187,000,000) | (248,000,000) | (77,000,000) |
Interest expense | (113,000,000) | (24,000,000) | (27,000,000) |
Other financial income & expense | (32,000,000) | (28,000,000) | (23,000,000) |
(Loss) before taxes | (332,000,000) | (300,000,000) | (127,000,000) |
Depreciation of property, plant & equipment | (267,000,000) | (239,000,000) | (215,000,000) |
Depreciation of right-of-use assets | (66,000,000) | 0 | |
Impairment charges on property, plant & equipment, net | (8,000,000) | (2,000,000) | 0 |
Equity-based compensation | (114,000,000) | (93,000,000) | (71,000,000) |
Unallocated amounts [member] | |||
Disclosure of operating segments [line items] | |||
Depreciation of property, plant & equipment | 0 | 0 | 0 |
Depreciation of right-of-use assets | 0 | 0 | |
Impairment charges on property, plant & equipment, net | 0 | 0 | 0 |
Equity-based compensation | (15,000,000) | (12,000,000) | (10,000,000) |
Surgical [member] | |||
Disclosure of operating segments [line items] | |||
Net sales to third parties | 4,174,000,000 | 3,999,000,000 | 3,733,000,000 |
Sales to former parent | 0 | 2,000,000 | 3,000,000 |
Other revenues | 0 | 0 | 0 |
Net sales and other revenues | 4,174,000,000 | 4,001,000,000 | 3,736,000,000 |
Segment contribution | 923,000,000 | 813,000,000 | 691,000,000 |
Impairment charges on intangible assets | 0 | (378,000,000) | |
Surgical [member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Depreciation of property, plant & equipment | (112,000,000) | (114,000,000) | (106,000,000) |
Depreciation of right-of-use assets | (42,000,000) | 0 | |
Impairment charges on property, plant & equipment, net | (3,000,000) | (1,000,000) | 0 |
Equity-based compensation | (55,000,000) | (45,000,000) | (34,000,000) |
Vision Care [member] | |||
Disclosure of operating segments [line items] | |||
Net sales to third parties | 3,188,000,000 | 3,150,000,000 | 3,052,000,000 |
Sales to former parent | 0 | 2,000,000 | 1,000,000 |
Other revenues | 146,000,000 | 0 | 3,000,000 |
Net sales and other revenues | 3,334,000,000 | 3,152,000,000 | 3,056,000,000 |
Segment contribution | 563,000,000 | 594,000,000 | 625,000,000 |
Impairment charges on intangible assets | 0 | 0 | |
Vision Care [member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Depreciation of property, plant & equipment | (155,000,000) | (125,000,000) | (109,000,000) |
Depreciation of right-of-use assets | (24,000,000) | 0 | |
Impairment charges on property, plant & equipment, net | (5,000,000) | (1,000,000) | 0 |
Equity-based compensation | $ (44,000,000) | $ (36,000,000) | $ (27,000,000) |
Segment Information - Additiona
Segment Information - Additional balance sheet disclosure (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of operating segments [line items] | ||
Goodwill | $ 8,905 | $ 8,899 |
Intangible assets other than goodwill | 10,231 | 10,679 |
Operating segments [member] | Surgical [member] | ||
Disclosure of operating segments [line items] | ||
Goodwill | 4,544 | 4,538 |
Intangible assets other than goodwill | 5,770 | 6,053 |
Operating segments [member] | Vision Care [member] | ||
Disclosure of operating segments [line items] | ||
Goodwill | 4,361 | 4,361 |
Intangible assets other than goodwill | 1,481 | 1,646 |
Unallocated amounts [member] | ||
Disclosure of operating segments [line items] | ||
Goodwill | 0 | 0 |
Intangible assets other than goodwill | $ 2,980 | $ 2,980 |
Segment Information - Net sales
Segment Information - Net sales by business franchise (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of products and services [line items] | |||
Net sales | $ 7,362 | $ 7,149 | $ 6,785 |
Surgical [member] | |||
Disclosure of products and services [line items] | |||
Net sales | 4,174 | 3,999 | 3,733 |
Surgical [member] | Implantables [Member] | |||
Disclosure of products and services [line items] | |||
Net sales | 1,210 | 1,136 | 1,045 |
Surgical [member] | Consumables [Member] | |||
Disclosure of products and services [line items] | |||
Net sales | 2,304 | 2,227 | 2,104 |
Surgical [member] | Equipment & other [Member] | |||
Disclosure of products and services [line items] | |||
Net sales | 660 | 636 | 584 |
Vision Care [member] | |||
Disclosure of products and services [line items] | |||
Net sales | 3,188 | 3,150 | 3,052 |
Vision Care [member] | Contact lenses [Member] | |||
Disclosure of products and services [line items] | |||
Net sales | 1,969 | 1,928 | 1,836 |
Vision Care [member] | Ocular health [Member] | |||
Disclosure of products and services [line items] | |||
Net sales | $ 1,219 | $ 1,222 | $ 1,216 |
Segment Information - Net sal_2
Segment Information - Net sales by region (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of geographical areas [line items] | |||
Net sales to third parties | $ 7,362 | $ 7,149 | $ 6,785 |
Percentage of entity's revenue | 100.00% | 100.00% | 100.00% |
Total of selected non-current asset | $ 22,573 | $ 22,457 | |
Percentage of entity's non-current asset | 100.00% | 100.00% | |
Foreign countries [member] | United States [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales to third parties | $ 3,055 | $ 2,942 | $ 2,800 |
Percentage of entity's revenue | 41.00% | 41.00% | 41.00% |
Total of selected non-current asset | $ 10,559 | $ 10,056 | |
Percentage of entity's non-current asset | 47.00% | 45.00% | |
Foreign countries [member] | Japan [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales to third parties | $ 656 | $ 593 | $ 561 |
Percentage of entity's revenue | 9.00% | 8.00% | 8.00% |
Total of selected non-current asset | $ 66 | $ 12 | |
Percentage of entity's non-current asset | 0.00% | 0.00% | |
Foreign countries [member] | China [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales to third parties | $ 377 | $ 341 | $ 279 |
Percentage of entity's revenue | 5.00% | 5.00% | 4.00% |
Total of selected non-current asset | $ 18 | $ 2 | |
Percentage of entity's non-current asset | 0.00% | 0.00% | |
Foreign countries [member] | Other [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales to third parties | $ 3,218 | $ 3,216 | $ 3,088 |
Percentage of entity's revenue | 44.00% | 45.00% | 46.00% |
Total of selected non-current asset | $ 1,444 | $ 1,221 | |
Percentage of entity's non-current asset | 6.00% | 5.00% | |
International [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales to third parties | $ 4,307 | $ 4,207 | $ 3,985 |
Percentage of entity's revenue | 59.00% | 59.00% | 59.00% |
Total of selected non-current asset | $ 12,014 | $ 12,401 | |
Percentage of entity's non-current asset | 53.00% | 55.00% | |
Country of domicile [member] | Switzerland [member] | |||
Disclosure of geographical areas [line items] | |||
Net sales to third parties | $ 56 | $ 57 | $ 57 |
Percentage of entity's revenue | 1.00% | 1.00% | 1.00% |
Total of selected non-current asset | $ 10,486 | $ 11,166 | |
Percentage of entity's non-current asset | 46.00% | 50.00% |
Interest expense and other fi_3
Interest expense and other financial income & expense - Interest expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Interest expense on financial debts | $ (81) | $ (10) | $ (12) |
Interest expense from discounting long-term liabilities | (21) | (9) | (10) |
Interest expense on lease liabilities | (11) | (5) | (5) |
Total interest expense | $ (113) | $ (24) | $ (27) |
Interest expense and other fi_4
Interest expense and other financial income & expense - Other financial income & expense (Details) - USD ($) $ in Millions | Sep. 23, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Analysis of income and expense [abstract] | ||||
Interest income | $ 8 | $ 2 | $ 0 | |
Loss on extinguishment of financial debt | $ (4) | (4) | 0 | 0 |
Other financial expense | (18) | (3) | (3) | |
Monetary loss from hyperinflation accounting | (2) | (1) | 0 | |
Currency result, net | (16) | (26) | (20) | |
Total other financial income & expense | $ (32) | $ (28) | $ (23) |
Taxes - (Loss) before taxes (De
Taxes - (Loss) before taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
(Loss) before taxes | $ (332) | $ (300) | $ (127) |
Country of domicile [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
(Loss) before taxes | (274) | (227) | (104) |
Foreign countries [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
(Loss) before taxes | $ (58) | $ (73) | $ (23) |
Taxes - Current and deferred in
Taxes - Current and deferred income tax expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Current income tax expense | $ (202) | $ (234) | $ (103) |
Deferred tax (expense)/income | (122) | 307 | 486 |
Total income tax (expense)/income | (324) | 73 | 383 |
Country of domicile [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Current income tax expense | (34) | (77) | (8) |
Deferred tax (expense)/income | (246) | 78 | 7 |
Foreign countries [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Current income tax expense | (168) | (157) | (95) |
Deferred tax (expense)/income | $ 124 | $ 229 | $ 479 |
Taxes - Analysis of tax rate (D
Taxes - Analysis of tax rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Applicable tax rate | $ 39 | $ 82 | $ 37 |
Effect of disallowed expenditures | (23) | (26) | (12) |
Effect of share based compensation | (1) | (2) | (4) |
Effect of income taxed at reduced rates | 2 | 2 | 0 |
Effect of tax credits and allowances | 7 | 13 | 5 |
Effect of adjustments to contingent consideration liabilities | 11 | 11 | (8) |
Effect of option payments | (12) | (17) | (12) |
Effect of liquidation of a subsidiary | 0 | 0 | (10) |
Effect of tax benefits expiring in 2017 | 0 | 0 | (12) |
Effect of tax rate changes | (342) | (14) | 0 |
Effect of changes in uncertain tax positions | 10 | (33) | (10) |
Effect of other items | (2) | (4) | (4) |
Effect of prior year items | (13) | 61 | 0 |
Effect of tax rate change on current and deferred tax assets and liabilities from US tax reform | 0 | 0 | 413 |
Total income tax (expense)/income | $ (324) | $ 73 | $ 383 |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||
Applicable tax rate | 11.70% | 27.30% | 29.10% |
Effect of disallowed expenditures | (6.90%) | (8.70%) | (9.40%) |
Effect of share based compensation | (0.30%) | (0.70%) | (3.10%) |
Effect of income taxed at reduced rates | 0.60% | 0.70% | 0.00% |
Effect of tax credits and allowances | 2.10% | 4.30% | 3.90% |
Effect of adjustments to contingent consideration liabilities | 3.30% | 3.70% | (6.30%) |
Effect of option payments | (3.60%) | (5.70%) | (9.40%) |
Effect of liquidation of a subsidiary | 0.00% | 0.00% | (7.90%) |
Effect of tax benefits expiring in 2017 | 0.00% | 0.00% | (9.40%) |
Effect of tax rate changes | (103.00%) | (4.70%) | 0.00% |
Effect of changes in uncertain tax positions | 3.00% | (11.00%) | (7.90%) |
Effect of other items | (0.60%) | (1.20%) | (3.20%) |
Effect of prior year items | (3.90%) | 20.30% | 0.00% |
Effect of tax rate change on current and deferred tax assets and liabilities from US tax reform | 0.00% | 0.00% | 325.20% |
Effective tax rate | (97.60%) | 24.30% | 301.60% |
Adjustments for current tax of prior periods | $ 13 | $ (61) | |
Switzerland [member] | |||
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Effect of tax rate change on current and deferred tax assets and liabilities from US tax reform | (304) | ||
United States [member] | |||
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Effect of tax rate change on current and deferred tax assets and liabilities from US tax reform | $ (31) |
Share capital and earnings_(l_2
Share capital and earnings/(loss) per share (Details) SFr / shares in Units, SFr in Thousands | Nov. 19, 2019CHF (SFr)SFr / sharesshares | Apr. 09, 2019shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017shares | Dec. 31, 2019CHF (SFr)SFr / sharesshares | |
Earnings per share [abstract] | ||||||||
Share capital | $ 20,000,000 | $ 20,000,000 | $ 0 | SFr 20,000 | ||||
Number of shares issued | 488,700,000 | 491,700,000 | 491,700,000 | 491,700,000 | ||||
Nominal value (in CHF per share) | SFr / shares | SFr 0.04 | SFr 0.04 | ||||||
Number of shares distributed in spin-off (in shares) | 488,200,000 | |||||||
Increase (decrease) in share capital authorised (in shares) | SFr | SFr 120 | |||||||
Number of additional shares authorized (in shares) | 3,000,000 | |||||||
Increase (decrease) in number of shares outstanding (in shares) | 100,000 | |||||||
Number of shares outstanding (in shares) | 488,300,000 | 488,300,000 | 488,300,000 | |||||
Number of shares held in treasury (in shares) | 3,400,000 | 3,400,000 | 3,400,000 | |||||
Number of shares allowed to be used to fulfill future vesting (in shares) | 3,000,000 | 3,000,000 | 3,000,000 | |||||
Dividends | $ | $ 0 | |||||||
Adjusted weighted average number of ordinary shares outstanding (in shares) | [1] | 488,200,000 | 488,200,000 | 488,200,000 | ||||
Antidilutive securities excluded from computation (in shares) | 1,900,000 | |||||||
[1] | For periods prior to the Spin-off, the denominator for basic and diluted earnings per share was calculated using 488.2 million shares of common stock distributed in the Spin-off. |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | ||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | [1],[2] | $ 2,800 | |||||
Depreciation charge | (267) | $ (239) | $ (215) | ||||
Impairment charge | (8) | (2) | 0 | ||||
Property, plant and equipment, ending balance | [1],[2] | 3,113 | 2,800 | ||||
Commitments for purchases of property, plant & equipment | 212 | 93 | |||||
Right-of-use assets | 324 | [1],[2] | 79 | [1],[2] | $ 279 | ||
Capitalized borrowing costs | 1 | ||||||
Gross carrying amount [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | 4,890 | 4,448 | |||||
Additions | 607 | 524 | |||||
Impact of business combinations | 1 | 1 | |||||
Disposals and derecognitions | (179) | (87) | |||||
Transfers with former parent | 35 | 163 | |||||
Reclassification to right-of-use assets | (86) | ||||||
Reclassifications for assets placed in service | 0 | ||||||
Other reclassifications | (27) | ||||||
Currency translation effects | (5) | (73) | |||||
Property, plant and equipment, ending balance | 5,322 | 4,890 | 4,448 | ||||
Gross carrying amount [member] | Changes in net current assets and other operating cash flow items [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Additions | 56 | ||||||
Accumulated depreciation and amortisation [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | (2,090) | (1,888) | |||||
Depreciation charge | (267) | (239) | |||||
Impairment charge | (8) | (2) | |||||
Disposals and derecognitions | 165 | 87 | |||||
Transfers with former parent | 17 | 91 | |||||
Reclassification to right-of-use assets | 7 | ||||||
Other reclassifications | 7 | ||||||
Currency translation effects | 1 | 36 | |||||
Property, plant and equipment, ending balance | (2,209) | (2,090) | (1,888) | ||||
Land [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | 53 | ||||||
Property, plant and equipment, ending balance | 33 | 53 | |||||
Land [member] | Gross carrying amount [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | 60 | 53 | |||||
Transfers with former parent | 10 | ||||||
Other reclassifications | (27) | ||||||
Currency translation effects | (3) | ||||||
Property, plant and equipment, ending balance | 33 | 60 | 53 | ||||
Land [member] | Accumulated depreciation and amortisation [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | (7) | (3) | |||||
Transfers with former parent | 4 | ||||||
Other reclassifications | 7 | ||||||
Property, plant and equipment, ending balance | 0 | (7) | (3) | ||||
Buildings [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | 969 | ||||||
Property, plant and equipment, ending balance | 1,010 | 969 | |||||
Buildings [member] | Gross carrying amount [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | 1,527 | 1,386 | |||||
Additions | 11 | 4 | |||||
Disposals and derecognitions | (17) | (16) | |||||
Transfers with former parent | 4 | 252 | |||||
Reclassification to right-of-use assets | (86) | ||||||
Reclassifications for assets placed in service | 104 | ||||||
Currency translation effects | (1) | (13) | |||||
Property, plant and equipment, ending balance | 1,628 | 1,527 | 1,386 | ||||
Buildings [member] | Accumulated depreciation and amortisation [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | (558) | (447) | |||||
Depreciation charge | (73) | (70) | |||||
Disposals and derecognitions | 14 | 15 | |||||
Transfers with former parent | 2 | 69 | |||||
Reclassification to right-of-use assets | 7 | ||||||
Currency translation effects | 1 | 6 | |||||
Property, plant and equipment, ending balance | (618) | (558) | (447) | ||||
Construction in progress [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | 650 | ||||||
Property, plant and equipment, ending balance | 747 | 650 | |||||
Construction in progress [member] | Gross carrying amount [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | 657 | 503 | |||||
Additions | 514 | 468 | |||||
Disposals and derecognitions | (1) | ||||||
Transfers with former parent | 2 | (302) | |||||
Reclassifications for assets placed in service | (417) | ||||||
Currency translation effects | (12) | ||||||
Property, plant and equipment, ending balance | 755 | 657 | 503 | ||||
Construction in progress [member] | Accumulated depreciation and amortisation [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | (7) | ||||||
Impairment charge | (1) | (1) | |||||
Transfers with former parent | 6 | ||||||
Property, plant and equipment, ending balance | (8) | (7) | |||||
Machinery and other equipment [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | 1,128 | ||||||
Property, plant and equipment, ending balance | 1,323 | 1,128 | |||||
Machinery and other equipment [member] | Gross carrying amount [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | 2,646 | 2,506 | |||||
Additions | 82 | 52 | |||||
Impact of business combinations | 1 | 1 | |||||
Disposals and derecognitions | (161) | (71) | |||||
Transfers with former parent | 29 | 203 | |||||
Reclassifications for assets placed in service | 313 | ||||||
Currency translation effects | (4) | (45) | |||||
Property, plant and equipment, ending balance | 2,906 | 2,646 | 2,506 | ||||
Machinery and other equipment [member] | Accumulated depreciation and amortisation [member] | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Property, plant and equipment, beginning balance | (1,518) | (1,438) | |||||
Depreciation charge | (194) | (169) | |||||
Impairment charge | (7) | (1) | |||||
Disposals and derecognitions | 151 | 72 | |||||
Transfers with former parent | 15 | 12 | |||||
Currency translation effects | 30 | ||||||
Property, plant and equipment, ending balance | $ (1,583) | $ (1,518) | $ (1,438) | ||||
[1] | Alcon adopted IFRS 16, Leases as of January 1, 2019 using the modified retrospective approach as described in Notes 3 and 16 to these Consolidated Financial Statements. Under the modified retrospective approach, comparative information was not restated. | ||||||
[2] | The December 31, 2018 balances previously reported for a finance lease liability and corresponding asset of $89 million and $79 million , respectively, have been reclassified from "Non-current financial debts" and "Property, Plant, & Equipment" to "Non-current lease liabilities" and "Right-of-use assets", respectively . |
Goodwill and intangible asset_2
Goodwill and intangible assets - Summary of movements of goodwill and intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | $ 10,679 | ||
Amortization charge | (1,084) | $ (1,019) | $ (1,033) |
Intangible assets and goodwill, ending balance | 10,231 | 10,679 | |
Gross carrying amount [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 19,492 | 19,014 | |
Impact of business combinations | 505 | 346 | |
Additions | 132 | 197 | |
Reclassifications | 0 | ||
Disposals, derecognitions, and transfers | (41) | (65) | |
Intangible assets and goodwill, ending balance | 20,088 | 19,492 | 19,014 |
Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | (8,813) | (7,473) | |
Amortization charge | (1,084) | (1,019) | |
Disposals, derecognitions, and transfers | 40 | 57 | |
Impairment charge | (378) | ||
Intangible assets and goodwill, ending balance | (9,857) | (8,813) | (7,473) |
Goodwill [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 8,899 | ||
Intangible assets and goodwill, ending balance | 8,905 | 8,899 | |
Goodwill [member] | Gross carrying amount [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 8,899 | 8,895 | |
Impact of business combinations | 6 | 4 | |
Intangible assets and goodwill, ending balance | 8,905 | 8,899 | 8,895 |
Alcon brand name [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 2,980 | ||
Intangible assets and goodwill, ending balance | 2,980 | 2,980 | |
Alcon brand name [member] | Gross carrying amount [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 2,980 | 2,980 | |
Intangible assets and goodwill, ending balance | 2,980 | 2,980 | 2,980 |
Acquired research & development [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 246 | ||
Intangible assets and goodwill, ending balance | 725 | 246 | |
Acquired research & development [member] | Gross carrying amount [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 249 | 242 | |
Impact of business combinations | 505 | ||
Additions | 7 | 71 | |
Reclassifications | (33) | ||
Disposals, derecognitions, and transfers | (64) | ||
Intangible assets and goodwill, ending balance | 728 | 249 | 242 |
Acquired research & development [member] | Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | (3) | (58) | |
Disposals, derecognitions, and transfers | 57 | ||
Impairment charge | (2) | ||
Intangible assets and goodwill, ending balance | (3) | (3) | (58) |
Technologies [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 1,185 | ||
Intangible assets and goodwill, ending balance | 677 | 1,185 | |
Technologies [member] | Gross carrying amount [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 5,369 | 5,368 | |
Additions | 1 | ||
Intangible assets and goodwill, ending balance | 5,369 | 5,369 | 5,368 |
Technologies [member] | Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | (4,184) | (3,635) | |
Amortization charge | (508) | (510) | |
Impairment charge | (39) | ||
Intangible assets and goodwill, ending balance | (4,692) | (4,184) | (3,635) |
Currently marketed products [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 1,848 | ||
Intangible assets and goodwill, ending balance | 1,598 | 1,848 | |
Currently marketed products [member] | Gross carrying amount [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 4,440 | 4,094 | |
Impact of business combinations | 346 | ||
Intangible assets and goodwill, ending balance | 4,440 | 4,440 | 4,094 |
Currently marketed products [member] | Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | (2,592) | (2,008) | |
Amortization charge | (250) | (247) | |
Impairment charge | (337) | ||
Intangible assets and goodwill, ending balance | (2,842) | (2,592) | (2,008) |
Marketing know-how [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 4,054 | ||
Intangible assets and goodwill, ending balance | 3,814 | 4,054 | |
Marketing know-how [member] | Gross carrying amount [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 5,960 | 5,960 | |
Intangible assets and goodwill, ending balance | 5,960 | 5,960 | 5,960 |
Marketing know-how [member] | Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | (1,906) | (1,668) | |
Amortization charge | (240) | (238) | |
Intangible assets and goodwill, ending balance | (2,146) | (1,906) | (1,668) |
Other intangible assets (including software) [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 366 | ||
Intangible assets and goodwill, ending balance | 437 | 366 | |
Other intangible assets (including software) [member] | Gross carrying amount [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 494 | 370 | |
Additions | 125 | 125 | |
Reclassifications | 33 | ||
Disposals, derecognitions, and transfers | (41) | (1) | |
Intangible assets and goodwill, ending balance | 611 | 494 | 370 |
Other intangible assets (including software) [member] | Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | (128) | (104) | |
Amortization charge | (86) | (24) | |
Disposals, derecognitions, and transfers | 40 | ||
Intangible assets and goodwill, ending balance | $ (174) | $ (128) | $ (104) |
Goodwill and intangible asset_3
Goodwill and intangible assets - Goodwill and intangible asset by segment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | $ 10,231 | $ 10,679 |
Goodwill [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 8,905 | 8,899 |
Alcon brand name [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 2,980 | 2,980 |
Acquired research & development [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 725 | 246 |
Technologies [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 677 | 1,185 |
Currently marketed products [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 1,598 | 1,848 |
Marketing know-how [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 3,814 | 4,054 |
Other intangible assets (including software) [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 437 | 366 |
Operating segments [member] | Surgical [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 5,770 | 6,053 |
Operating segments [member] | Surgical [member] | Goodwill [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 4,544 | 4,538 |
Operating segments [member] | Surgical [member] | Acquired research & development [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 721 | 216 |
Operating segments [member] | Surgical [member] | Technologies [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 677 | 1,185 |
Operating segments [member] | Surgical [member] | Currently marketed products [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 374 | 438 |
Operating segments [member] | Surgical [member] | Marketing know-how [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 3,814 | 4,054 |
Operating segments [member] | Surgical [member] | Other intangible assets (including software) [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 184 | 160 |
Operating segments [member] | Vision Care [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 1,481 | 1,646 |
Operating segments [member] | Vision Care [member] | Goodwill [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 4,361 | 4,361 |
Operating segments [member] | Vision Care [member] | Acquired research & development [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 4 | 30 |
Operating segments [member] | Vision Care [member] | Currently marketed products [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 1,224 | 1,410 |
Operating segments [member] | Vision Care [member] | Other intangible assets (including software) [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 253 | 206 |
Unallocated amounts [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | 2,980 | 2,980 |
Unallocated amounts [member] | Alcon brand name [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets and goodwill | $ 2,980 | $ 2,980 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Intangible asset assumptions (Details) | Dec. 31, 2019 |
Surgical [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Growth rate used to extrapolate cash flow projections | 3.00% |
Discount rate (post-tax) | 7.50% |
Vision Care [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Growth rate used to extrapolate cash flow projections | 3.00% |
Discount rate (post-tax) | 7.00% |
Goodwill and intangible asset_5
Goodwill and intangible assets - Intangible asset impairment charges (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible asset impairment charges | $ 0 | $ (378,000,000) | $ (57,000,000) |
CyPass [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible asset impairment charges | (337,000,000) | ||
Optonol Ltd. [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible asset impairment charges | 39,000,000 | ||
Surgical [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible asset impairment charges | 0 | (378,000,000) | |
Vision Care [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible asset impairment charges | $ 0 | $ 0 |
Deferred tax assets and liabi_3
Deferred tax assets and liabilities - Activity in deferred tax asset (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Gross deferred tax assets, beginning balance | $ 673 | $ 550 |
Gross, deferred tax liabilities, beginning balance | (1,531) | (1,664) |
Net, deferred tax liability (asset), beginning balance | (858) | (1,114) |
Credited/(charged) to income | (122) | 307 |
Credited (charged) to equity | 25 | (2) |
Charged to other comprehensive income | 16 | (2) |
Impact of business combinations | (93) | (66) |
Other movements | 0 | 19 |
Gross deferred tax assets, ending balance | 932 | 673 |
Gross, deferred tax liabilities, ending balance | (1,964) | (1,531) |
Net, deferred tax liability (asset), ending balance | (1,032) | (858) |
Property, plant & equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Gross deferred tax assets, beginning balance | 12 | 10 |
Gross, deferred tax liabilities, beginning balance | (94) | (69) |
Net, deferred tax liability (asset), beginning balance | (82) | (59) |
Credited/(charged) to income | (71) | (23) |
Other movements | (6) | |
Gross deferred tax assets, ending balance | 13 | 12 |
Gross, deferred tax liabilities, ending balance | (172) | (94) |
Net, deferred tax liability (asset), ending balance | (159) | (82) |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Gross deferred tax assets, beginning balance | ||
Gross, deferred tax liabilities, beginning balance | (1,403) | (1,531) |
Net, deferred tax liability (asset), beginning balance | (1,403) | (1,531) |
Credited/(charged) to income | (194) | 212 |
Impact of business combinations | (121) | (78) |
Other movements | 11 | (6) |
Gross deferred tax assets, ending balance | 6 | |
Gross, deferred tax liabilities, ending balance | (1,713) | (1,403) |
Net, deferred tax liability (asset), ending balance | (1,707) | (1,403) |
Pensions and other benefit obligations of associates | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Gross deferred tax assets, beginning balance | 125 | 121 |
Gross, deferred tax liabilities, beginning balance | (2) | (7) |
Net, deferred tax liability (asset), beginning balance | 123 | 114 |
Credited/(charged) to income | 18 | 13 |
Charged to other comprehensive income | 11 | (2) |
Other movements | (11) | (2) |
Gross deferred tax assets, ending balance | 151 | 125 |
Gross, deferred tax liabilities, ending balance | (10) | (2) |
Net, deferred tax liability (asset), ending balance | 141 | 123 |
Inventories | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Gross deferred tax assets, beginning balance | 262 | 169 |
Gross, deferred tax liabilities, beginning balance | (14) | (32) |
Net, deferred tax liability (asset), beginning balance | 248 | 137 |
Credited/(charged) to income | 111 | 82 |
Other movements | (11) | 29 |
Gross deferred tax assets, ending balance | 371 | 262 |
Gross, deferred tax liabilities, ending balance | (23) | (14) |
Net, deferred tax liability (asset), ending balance | 348 | 248 |
Tax loss carry- forwards | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Gross deferred tax assets, beginning balance | 39 | 18 |
Gross, deferred tax liabilities, beginning balance | ||
Net, deferred tax liability (asset), beginning balance | 39 | 18 |
Credited/(charged) to income | 50 | 9 |
Impact of business combinations | 28 | 12 |
Other movements | (7) | |
Gross deferred tax assets, ending balance | 110 | 39 |
Gross, deferred tax liabilities, ending balance | 0 | |
Net, deferred tax liability (asset), ending balance | 110 | 39 |
Other assets, provisions and accruals | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Gross deferred tax assets, beginning balance | 235 | 232 |
Gross, deferred tax liabilities, beginning balance | (18) | (25) |
Net, deferred tax liability (asset), beginning balance | 217 | 207 |
Credited/(charged) to income | (36) | 14 |
Credited (charged) to equity | 25 | (2) |
Charged to other comprehensive income | 5 | |
Other movements | 24 | (2) |
Gross deferred tax assets, ending balance | 281 | 235 |
Gross, deferred tax liabilities, ending balance | (46) | (18) |
Net, deferred tax liability (asset), ending balance | $ 235 | $ 217 |
Deferred tax assets and liabi_4
Deferred tax assets and liabilities - Net deferred tax balance (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Abstract] | |||
Offsetting amounts | $ 578 | $ 3 | |
Deferred tax assets | 354 | 670 | |
Deferred tax liabilities | (1,386) | (1,528) | |
Net deferred tax balance | $ (1,032) | $ (858) | $ (1,114) |
Deferred tax assets and liabi_5
Deferred tax assets and liabilities - Impact on current taxes payable (Details) - USD ($) $ in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Deferred tax assets | $ 0.6 | $ 0.3 |
Deferred tax liabilities | $ 1.8 | $ 1.5 |
Deferred tax assets and liabi_6
Deferred tax assets and liabilities - Additional information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unremitted earnings retained for reinvestment | $ 7,000,000,000 | ||
Temporary differences and unused tax losses for which no deferred tax assets were recognized | 9,000,000,000 | $ 9,000,000,000 | |
Tax loss carryforwards capitalized | 521,000,000 | 146,000,000 | |
Tax loss carryforwards expiring in five years | 33,000,000 | ||
Tax loss carryforwards expiring in more than five years | 488,000,000 | ||
Tax loss carryforwards expired in period | 0 | 0 | $ 0 |
Deferred tax expense (income) relating to tax rate changes or imposition of new taxes | 0 | $ 0 | (413,000,000) |
Income statement [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Revaluation of deferred tax assets and liabilities and current income tax liabilities | 413,000,000 | ||
Equity statement [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Revaluation of deferred tax assets and liabilities and current income tax liabilities | $ 18,000,000 | ||
Switzerland [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax expense (income) relating to tax rate changes or imposition of new taxes | $ 304,000,000 |
Financial and other non-curre_3
Financial and other non-current assets - Financial Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Long-term financial investments measured at FVOCI | $ 31 | $ 19 |
Long-term financial investments measured at FVPL | 28 | 67 |
Long-term receivables from customers | 136 | 164 |
Minimum lease payments from finance lease agreements | 78 | 91 |
Long-term loans, advances, and security deposits | 34 | 47 |
Total financial assets | $ 307 | $ 388 |
Financial and other non-curre_4
Financial and other non-current assets - Minimum finance lease payments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total future payments | $ 191 | $ 229 |
Unearned interest income | (10) | (16) |
Present value | 181 | 213 |
Provision | (57) | (65) |
Net book value | 124 | 148 |
Not later than one year [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total future payments | 51 | 64 |
Unearned interest income | (4) | (5) |
Present value | 47 | 59 |
Provision | (1) | (2) |
Net book value | 46 | 57 |
Between one and five years [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total future payments | 94 | 117 |
Unearned interest income | (5) | (9) |
Present value | 89 | 108 |
Provision | (23) | (28) |
Net book value | 66 | 80 |
Later than five years [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total future payments | 46 | 48 |
Unearned interest income | (1) | (2) |
Present value | 45 | 46 |
Provision | (33) | (35) |
Net book value | $ 12 | $ 11 |
Financial and other non-curre_5
Financial and other non-current assets - Other Non-current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Deferred compensation plans | $ 122 | $ 95 |
Prepaid post-employment benefit plans | 13 | 12 |
Other non-current assets | 50 | 41 |
Total other non-current assets | $ 185 | $ 148 |
Inventories - Additional inform
Inventories - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Inventories [Line Items] | |||
Inventory write-down | $ 140 | $ 148 | $ 73 |
Reversal of inventory write-down | 65 | 56 | 15 |
Cost of net sales [member] | |||
Disclosure Of Inventories [Line Items] | |||
Cost of inventories recognised as expense during period | 2,200 | 2,200 | 2,100 |
Cost of other revenue [member] | |||
Disclosure Of Inventories [Line Items] | |||
Cost of inventories recognised as expense during period | $ 127 | $ 0 | $ 0 |
Inventories - Schedule of inven
Inventories - Schedule of inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Raw material, consumables | $ 286 | $ 334 |
Work in progress | 101 | 127 |
Finished products | 1,118 | 979 |
Total inventories | $ 1,505 | $ 1,440 |
Trade receivables - Components
Trade receivables - Components of trade receivables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||||
Total gross trade receivables | $ 1,438 | $ 1,307 | ||
Provisions for doubtful trade receivables | (48) | (54) | $ (77) | $ (55) |
Total trade receivables, net | $ 1,390 | $ 1,253 |
Trade receivables - Movement in
Trade receivables - Movement in provision for trade receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |||
Beginning balance | $ (54) | $ (77) | $ (55) |
Transfers with former parent | 0 | 4 | 0 |
Provisions for doubtful trade receivables charged to the consolidated income statement | (17) | (17) | (28) |
Utilization of provisions for doubtful trade receivables | 7 | 16 | 2 |
Reversal of provisions for doubtful trade receivables | 15 | 16 | 6 |
Currency translation effects | 1 | 4 | (2) |
Ending balance | $ (48) | $ (54) | $ (77) |
Trade receivables - Analysis of
Trade receivables - Analysis of past due receivables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of provision matrix [line items] | ||||
Trade receivables, gross | $ 1,438 | $ 1,307 | ||
Provisions for doubtful trade receivables | (48) | (54) | $ (77) | $ (55) |
Total trade receivables, net | 1,390 | 1,253 | ||
Not overdue [member] | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables, gross | 1,135 | 1,018 | ||
Past due for not more than one month [member] | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables, gross | 118 | 118 | ||
Past due for more than one month but less than three months [member] | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables, gross | 81 | 70 | ||
Past due for more than three months but less than six months [member] | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables, gross | 47 | 34 | ||
Past due for more than six months but less than one year [member] | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables, gross | 21 | 20 | ||
Past due for more than one year [member] | ||||
Disclosure of provision matrix [line items] | ||||
Trade receivables, gross | $ 36 | $ 47 |
Trade receivables - Trade recei
Trade receivables - Trade receivables from closely monitored countries (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of geographical areas [line items] | ||||
Total gross trade receivables | $ 1,438 | $ 1,307 | ||
Provisions for doubtful trade receivables | (48) | (54) | $ (77) | $ (55) |
Russia, Brazil, And Turkey [member] | ||||
Disclosure of geographical areas [line items] | ||||
Provisions for doubtful trade receivables | (13) | (16) | ||
Not overdue [member] | ||||
Disclosure of geographical areas [line items] | ||||
Total gross trade receivables | 1,135 | 1,018 | ||
Not overdue [member] | Russia, Brazil, And Turkey [member] | ||||
Disclosure of geographical areas [line items] | ||||
Total gross trade receivables | 209 | 216 | ||
Past due for more than one year [member] | ||||
Disclosure of geographical areas [line items] | ||||
Total gross trade receivables | 36 | 47 | ||
Past due for more than one year [member] | Russia, Brazil, And Turkey [member] | ||||
Disclosure of geographical areas [line items] | ||||
Total gross trade receivables | $ 10 | $ 14 |
Trade receivables - Trade rec_2
Trade receivables - Trade receivables by currency (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | $ 1,390 | $ 1,253 |
US dollar (USD) | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | 463 | 449 |
Euro (EUR) | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | 243 | 215 |
Japanese yen (JPY) | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | 168 | 152 |
Chinese yuan (CNY) | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | 102 | 74 |
Indian rupee (INR) | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | 33 | 34 |
Canadian dollar (CAD) | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | 30 | 30 |
Australian dollar (AUD) | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | 29 | 27 |
British pound (GBP) | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | 24 | 25 |
Russian ruble (RUB) | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | 34 | 24 |
South Korean won (KRW) | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | 29 | 23 |
Other currencies | ||
Disclosure of geographical areas [line items] | ||
Total trade receivables, net | $ 235 | $ 200 |
Other current assets (Details)
Other current assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Current portion of long-term financial investments measured at FVPL | $ 33 | $ 31 |
Current portion of long-term receivables from customers | 122 | 133 |
Current portion of minimum lease payments from finance lease agreements | 46 | 57 |
Prepaid expenses | 89 | 46 |
Other receivables, security deposits and current assets | 147 | 52 |
Derivative financial instruments | 1 | 0 |
VAT receivable | 64 | 68 |
Total other current assets | $ 502 | $ 387 |
Right-of-use assets and Lease_3
Right-of-use assets and Lease liabilities - Components of Right-of-Use Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1],[2] | |
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Right-of-use assets | $ 324 | [1],[2] | $ 279 | $ 79 | |
Right-of-use assets, revaluation surplus | 3 | ||||
Lease liability in excess of capital | 10 | ||||
Land [member] | |||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Right-of-use assets | 20 | 20 | |||
Buildings [member] | |||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Right-of-use assets | 277 | 226 | |||
Machinery & equipment and other assets [member] | |||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Right-of-use assets | $ 27 | $ 33 | |||
[1] | Alcon adopted IFRS 16, Leases as of January 1, 2019 using the modified retrospective approach as described in Notes 3 and 16 to these Consolidated Financial Statements. Under the modified retrospective approach, comparative information was not restated. | ||||
[2] | The December 31, 2018 balances previously reported for a finance lease liability and corresponding asset of $89 million and $79 million , respectively, have been reclassified from "Non-current financial debts" and "Property, Plant, & Equipment" to "Non-current lease liabilities" and "Right-of-use assets", respectively . |
Right-of-use assets and Lease_4
Right-of-use assets and Lease liabilities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Depreciation of right-of-use assets | $ 66 | $ 0 | ||
Additions to right-of-use assets | 116 | |||
Lease liabilities | 341 | $ 286 | ||
Financial debts | 3,479 | 47 | ||
Current lease liabilities | 61 | 0 | ||
Non-current lease liabilities | [1],[2] | $ 280 | $ 89 | |
[1] | Alcon adopted IFRS 16, Leases as of January 1, 2019 using the modified retrospective approach as described in Notes 3 and 16 to these Consolidated Financial Statements. Under the modified retrospective approach, comparative information was not restated. | |||
[2] | The December 31, 2018 balances previously reported for a finance lease liability and corresponding asset of $89 million and $79 million , respectively, have been reclassified from "Non-current financial debts" and "Property, Plant, & Equipment" to "Non-current lease liabilities" and "Right-of-use assets", respectively . |
Right-of-use assets and Lease_5
Right-of-use assets and Lease liabilities - Components of Right-of-Use Assets Depreciation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Depreciation of right-of-use assets | $ 66 | $ 0 |
Land [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Depreciation of right-of-use assets | 1 | |
Buildings [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Depreciation of right-of-use assets | 47 | |
Machinery & equipment and other assets [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Depreciation of right-of-use assets | $ 18 |
Right-of-use assets and Lease_6
Right-of-use assets and Lease liabilities - Reconciliation of Lease Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating lease commitments | $ (222) | ||
Effect of discounting | (21) | ||
Operating leases discounted using the incremental borrowing rate | 201 | ||
Finance lease liabilities | $ 89 | ||
Recognition exemption for short term and low-value leases | $ (4) | ||
Lease liabilities | $ 341 | $ 286 | |
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 2.90% |
Right-of-use assets and Lease_7
Right-of-use assets and Lease liabilities - Maturity of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of maturity analysis of lease payments [Line Items] | ||
Total lease liabilities undiscounted | $ 449 | |
Total lease liabilities | 341 | $ 286 |
Not later than one year [member] | ||
Disclosure of maturity analysis of lease payments [Line Items] | ||
Total lease liabilities undiscounted | 73 | |
Total lease liabilities | 61 | |
Between one and five years [member] | ||
Disclosure of maturity analysis of lease payments [Line Items] | ||
Total lease liabilities undiscounted | 176 | |
Total lease liabilities | 140 | |
Thereafter [member] | ||
Disclosure of maturity analysis of lease payments [Line Items] | ||
Total lease liabilities undiscounted | 200 | |
Total lease liabilities | $ 140 |
Right-of-use assets and Lease_8
Right-of-use assets and Lease liabilities - Additional Disclosures Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Interest expense on lease liabilities | $ 11 | $ 5 | $ 5 |
Expense on short-term and low value leases | 3 | ||
Total cash outflows for leases | 59 | ||
Lease liability payments | 52 | $ 0 | $ 0 |
Interest payments | 5 | ||
Short-term and low value lease payments | $ 2 |
Right-of-use assets and Lease_9
Right-of-use assets and Lease liabilities - Future Minimum Operating Lease Payable (Details) $ in Millions | Dec. 31, 2018USD ($) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total operational lease commitments | $ 222 |
Not later than one year [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total operational lease commitments | 50 |
Between one and five years [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total operational lease commitments | 135 |
Later than five years [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total operational lease commitments | $ 37 |
Right-of-use assets and Leas_10
Right-of-use assets and Lease liabilities - Future Minimum Finance Lease Payable (Details) $ in Millions | Dec. 31, 2018USD ($) |
Disclosure of maturity analysis of lease payments [Line Items] | |
Total minimum lease liabilities | $ 180 |
Less future finance charges | (91) |
Present value of minimum lease payments | 89 |
Not later than one year [member] | |
Disclosure of maturity analysis of lease payments [Line Items] | |
Total minimum lease liabilities | 0 |
Between one and five years [member] | |
Disclosure of maturity analysis of lease payments [Line Items] | |
Total minimum lease liabilities | 27 |
Later than five years [member] | |
Disclosure of maturity analysis of lease payments [Line Items] | |
Total minimum lease liabilities | $ 153 |
Non-current and current finan_3
Non-current and current financial debts - Schedule of financial debts (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | [1],[2] | $ 3,218 | $ 0 |
Current financial debts | 261 | 47 | |
Total financial debts | 3,479 | 47 | |
Facility B [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 793 | 0 | |
Facility C [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 391 | 0 | |
Local facilities, Japan [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 55 | 0 | |
Current financial debts | 115 | 0 | |
Senior notes due 2026 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 495 | 0 | |
Senior notes due 2029 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 991 | 0 | |
Senior notes due 2049 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 493 | 0 | |
Revolving facility [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 0 | 0 | |
Local facilities, other [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Current financial debts | 101 | 32 | |
Other short-term financial debts [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Current financial debts | 29 | 15 | |
Derivatives [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Current financial debts | 16 | $ 0 | |
Total financial debts | $ 16 | ||
[1] | Alcon adopted IFRS 16, Leases as of January 1, 2019 using the modified retrospective approach as described in Notes 3 and 16 to these Consolidated Financial Statements. Under the modified retrospective approach, comparative information was not restated. | ||
[2] | The December 31, 2018 balances previously reported for a finance lease liability and corresponding asset of $89 million and $79 million , respectively, have been reclassified from "Non-current financial debts" and "Property, Plant, & Equipment" to "Non-current lease liabilities" and "Right-of-use assets", respectively . |
Non-current and current finan_4
Non-current and current financial debts - Additional information (Details) | Sep. 23, 2019USD ($) | Apr. 02, 2019USD ($) | Mar. 06, 2019USD ($)extension | Feb. 28, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||
Interest expense | $ 81,000,000 | $ 10,000,000 | $ 12,000,000 | ||||
Financial debts | 3,479,000,000 | 47,000,000 | |||||
Write-off of deferred debt issuance cost | $ 4,000,000 | 4,000,000 | 0 | $ 0 | |||
Derivative liabilities, net | (15,000,000) | ||||||
Gains on change in fair value of derivatives | 1,000,000 | 0 | |||||
Losses on change in fair value of derivatives | 16,000,000 | ||||||
Current financial debts | $ 261,000,000 | $ 47,000,000 | |||||
Weighted average [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings, interest rate | 2.90% | 17.40% | |||||
Bridge facility [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 1,500,000,000 | ||||||
Borrowings, number of extension options | extension | 2 | ||||||
Borrowings, extension term | 180 days | ||||||
Borrowings, term | 364 days | ||||||
Facility A [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 500,000,000 | ||||||
Borrowings, term | 3 years | ||||||
Facility B [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 800,000,000 | ||||||
Borrowings, term | 5 years | ||||||
Facility C [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 400,000,000 | ||||||
Borrowings, term | 5 years | ||||||
Revolving facility [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 1,000,000,000 | ||||||
Borrowings, term | 5 years | ||||||
Senior Notes [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | 2,000,000,000 | ||||||
Bridge and other term loans [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Proceeds from borrowings | $ 3,200,000,000 | ||||||
Senior notes due 2026 [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 500,000,000 | ||||||
Borrowings, issuance percentage | 99.50% | ||||||
Borrowings, interest rate | 2.75% | ||||||
Senior notes due 2029 [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 1,000,000,000 | ||||||
Borrowings, issuance percentage | 99.60% | ||||||
Borrowings, interest rate | 3.00% | ||||||
Senior notes due 2049 [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 500,000,000 | ||||||
Borrowings, issuance percentage | 99.80% | ||||||
Borrowings, interest rate | 3.80% | ||||||
Local bilateral facilities [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings, term | 1 year | ||||||
Financial debts | $ 300,000,000 | ||||||
Local bilateral facilities, japan [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Undrawn borrowing facilities | $ 35,000,000 | ||||||
Financial debts | $ 200,000,000 | ||||||
Other short-term financial debts [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current financial debts | $ 29,000,000 | $ 15,000,000 | |||||
Borrowings discount [Member] | Senior Notes [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Financial debts | $ 7,000,000 | ||||||
Debt issuance costs [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Financial debts | $ (15,000,000) |
Non-current and current finan_5
Non-current and current financial debts - Maturity of borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | $ 3,479 | $ 47 |
Nominal amount - Current and non-current financial debt [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 3,463 | |
Derivatives [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 16 | |
Gross carrying amount [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 3,508 | |
Gross carrying amount [member] | Not later than one year [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 261 | |
Gross carrying amount [member] | Between one and five years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 1,247 | |
Gross carrying amount [member] | Later than five years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 2,000 | |
Gross carrying amount [member] | Nominal amount - Current and non-current financial debt [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 3,492 | |
Gross carrying amount [member] | Nominal amount - Current and non-current financial debt [member] | Not later than one year [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 245 | |
Gross carrying amount [member] | Nominal amount - Current and non-current financial debt [member] | Between one and five years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 1,247 | |
Gross carrying amount [member] | Nominal amount - Current and non-current financial debt [member] | Later than five years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 2,000 | |
Gross carrying amount [member] | Derivatives [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 16 | |
Gross carrying amount [member] | Derivatives [member] | Not later than one year [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 16 | |
Gross carrying amount [member] | Derivatives [member] | Between one and five years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 0 | |
Gross carrying amount [member] | Derivatives [member] | Later than five years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 0 | |
Unamortized debt discount and issuance costs [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 29 | |
Unamortized debt discount and issuance costs [member] | Nominal amount - Current and non-current financial debt [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | 29 | |
Unamortized debt discount and issuance costs [member] | Derivatives [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Financial debts | $ 0 |
Non-current and current finan_6
Non-current and current financial debts - Maturity of interest expense (Details) $ in Millions | Dec. 31, 2019USD ($) |
Disclosure of detailed information about borrowings [line items] | |
Interest payable | $ 1,083 |
Not later than one year [member] | |
Disclosure of detailed information about borrowings [line items] | |
Interest payable | 94 |
Between one and five years [member] | |
Disclosure of detailed information about borrowings [line items] | |
Interest payable | 336 |
Later than five years [member] | |
Disclosure of detailed information about borrowings [line items] | |
Interest payable | $ 653 |
Financial instruments - addit_3
Financial instruments - additional disclosures - Details of net financial assets and financial liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | $ 2,949 | $ 2,301 |
Total financial liabilities | 4,896 | 1,113 |
Net financial assets and financial liabilities | (1,947) | 1,188 |
Financial liabilities - measured at amortized cost or cost [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 4,637 | 951 |
Financial liabilities - measured at amortized cost or cost [member] | Financial debts [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 245 | 47 |
Financial liabilities - measured at amortized cost or cost [member] | Lease liabilities [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 61 | 0 |
Financial liabilities - measured at amortized cost or cost [member] | Trade payables [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 833 | 663 |
Financial liabilities - measured at amortized cost or cost [member] | Payables to former parent [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 0 | 85 |
Financial liabilities - measured at amortized cost or cost [member] | Other financial liabilities to former parent [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 0 | 67 |
Financial liabilities - measured at amortized cost or cost [member] | Current financial liabilities [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 1,139 | 862 |
Financial liabilities - measured at amortized cost or cost [member] | Financial debts [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 3,218 | 0 |
Financial liabilities - measured at amortized cost or cost [member] | Lease liabilities [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 280 | 89 |
Financial liabilities - measured at amortized cost or cost [member] | Non-current financial liabilities [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 3,498 | 89 |
Financial liabilities - measured at FVPL [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 259 | 162 |
Financial liabilities - measured at FVPL [member] | Contingent consideration liabilities [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 243 | 162 |
Financial liabilities - measured at FVPL [member] | Derivative financial instruments [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 16 | 0 |
Cash in current accounts [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 392 | 227 |
Cash held in time deposits and money market funds [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 430 | 0 |
Cash and cash equivalents [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 822 | 227 |
Financial assets - measured at fair value through other comprehensive income (FVOCI) [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 31 | 19 |
Financial assets - measured at fair value through other comprehensive income (FVOCI) [member] | Long-term financial investments [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 31 | 19 |
Financial assets - measured at amortized costs [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 2,034 | 1,957 |
Financial assets - measured at amortized costs [member] | Trade receivables [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 1,390 | 1,253 |
Financial assets - measured at amortized costs [member] | Receivables from former parent [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 0 | 20 |
Financial assets - measured at amortized costs [member] | Income tax receivables [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 17 | 33 |
Financial assets - measured at amortized costs [member] | Other financial receivables from former parent [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 0 | 39 |
Financial assets - measured at amortized costs [member] | Other current assets (excluding prepaid expenses and other current assets measured at FVPL) [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 379 | 310 |
Financial assets - measured at amortized costs [member] | Long-term receivables from customers [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 136 | 164 |
Financial assets - measured at amortized costs [member] | Non-current minimum lease payments from finance leases [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 78 | 91 |
Financial assets - measured at amortized costs [member] | Long-term loans, advances, security deposits and warrant options [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 34 | 47 |
Financial assets - measured at fair value through profit and loss (FVPL) [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 62 | 98 |
Financial assets - measured at fair value through profit and loss (FVPL) [member] | Long-term financial investments [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 28 | 67 |
Financial assets - measured at fair value through profit and loss (FVPL) [member] | Current portion of long-term financial investments [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 33 | 31 |
Financial assets - measured at fair value through profit and loss (FVPL) [member] | Derivative fInancial instruments [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial assets | 1 | $ 0 |
Senior notes due 2026, 2029, and 2049 [member] | Financial debts [member] | ||
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Total financial liabilities | 1,979 | |
Financial liabilities, at fair value | $ 2,049 |
Financial instruments - addit_4
Financial instruments - additional disclosures - Schedule of fair value of assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | $ 307 | $ 388 | |
Total financial assets at fair value and amortized cost or cost | 2,949 | 2,301 | |
Total financial liabilities at fair value and amortized cost | (4,896) | (1,113) | |
Measured at FVPL [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (259) | (162) | |
Measured at FVPL [member] | Contingent consideration liabilities [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (243) | (162) | |
Measured at FVPL [member] | Derivative financial instruments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (16) | 0 | |
Valued at amortized cost or cost [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (4,637) | (951) | |
Valued at amortized cost or cost [member] | Non-current financial debt [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (3,218) | 0 | |
Valued at amortized cost or cost [member] | Current financial debt [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (245) | (47) | |
Measured at FVOCI [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 31 | 19 | |
Measured at FVOCI [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 31 | 19 | |
Measured at FVPL [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 62 | 98 | |
Measured at FVPL [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 28 | 67 | |
Measured at FVPL [member] | Current portion of long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 33 | 31 | |
Measured at FVPL [member] | Derivative fInancial instruments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 1 | 0 | |
Valued at amortized cost or cost [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 2,034 | 1,957 | |
Valued at amortized cost or cost [member] | Long-term receivables from customers [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 136 | 164 | |
Valued at amortized cost or cost [member] | Minimum lease payments from finance leases [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 78 | 91 | |
Level 3 [member] | Contingent consideration liabilities [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (243) | (162) | $ (113) |
Level 3 [member] | Measured at FVOCI [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 31 | 19 | 26 |
Level 3 [member] | Measured at FVPL [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial assets at fair value and amortized cost or cost | 61 | 98 | $ 78 |
Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 307 | 388 | |
Current financial assets | 533 | 341 | |
Total financial assets at fair value and amortized cost or cost | 840 | 729 | |
Total financial liabilities at fair value and amortized cost | (3,722) | (209) | |
Recurring fair value measurement [member] | Measured at FVPL [member] | Contingent consideration liabilities [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (243) | (162) | |
Recurring fair value measurement [member] | Measured at FVPL [member] | Derivative financial instruments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (16) | 0 | |
Recurring fair value measurement [member] | Valued at amortized cost or cost [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (3,463) | (47) | |
Recurring fair value measurement [member] | Valued at amortized cost or cost [member] | Non-current financial debt [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (3,218) | 0 | |
Recurring fair value measurement [member] | Valued at amortized cost or cost [member] | Current financial debt [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (245) | (47) | |
Recurring fair value measurement [member] | Measured at FVOCI [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 31 | 19 | |
Recurring fair value measurement [member] | Measured at FVPL [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 28 | 67 | |
Recurring fair value measurement [member] | Measured at FVPL [member] | Money market funds [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 120 | ||
Recurring fair value measurement [member] | Measured at FVPL [member] | Current portion of long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 33 | 31 | |
Recurring fair value measurement [member] | Measured at FVPL [member] | Derivative fInancial instruments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 1 | 0 | |
Recurring fair value measurement [member] | Valued at amortized cost or cost [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 248 | 302 | |
Current financial assets | 379 | 310 | |
Total financial assets at fair value and amortized cost or cost | 627 | 612 | |
Recurring fair value measurement [member] | Valued at amortized cost or cost [member] | Long-term receivables from customers [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 136 | 164 | |
Current financial assets | 122 | 133 | |
Recurring fair value measurement [member] | Valued at amortized cost or cost [member] | Minimum lease payments from finance leases [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 78 | 91 | |
Current financial assets | 46 | 57 | |
Recurring fair value measurement [member] | Valued at amortized cost or cost [member] | Long-term loans, advances, and security deposits [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 34 | 47 | |
Recurring fair value measurement [member] | Valued at amortized cost or cost [member] | Other receivables, security deposits and current assets [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 147 | 52 | |
Recurring fair value measurement [member] | Valued at amortized cost or cost [member] | VAT receivables [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 64 | 68 | |
Recurring fair value measurement [member] | Level 1 [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 0 | 0 | |
Current financial assets | 120 | 0 | |
Total financial assets at fair value and amortized cost or cost | 120 | 0 | |
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Measured at FVPL [member] | Contingent consideration liabilities [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Measured at FVPL [member] | Derivative financial instruments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Valued at amortized cost or cost [member] | Non-current financial debt [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Valued at amortized cost or cost [member] | Current financial debt [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Measured at FVOCI [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Measured at FVPL [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Measured at FVPL [member] | Money market funds [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 120 | ||
Recurring fair value measurement [member] | Level 1 [member] | Measured at FVPL [member] | Current portion of long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Measured at FVPL [member] | Derivative fInancial instruments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Valued at amortized cost or cost [member] | Long-term receivables from customers [member] | |||
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 [member] | Level 1 [member] | Valued at amortized cost or cost [member] | Minimum lease payments from finance leases [member] | |||
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 [member] | Level 1 [member] | Valued at amortized cost or cost [member] | Long-term loans, advances, and security deposits [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Valued at amortized cost or cost [member] | Other receivables, security deposits and current assets [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 1 [member] | Valued at amortized cost or cost [member] | VAT receivables [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 0 | 0 | |
Current financial assets | 1 | 0 | |
Total financial assets at fair value and amortized cost or cost | 1 | 0 | |
Total financial liabilities at fair value and amortized cost | (16) | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Measured at FVPL [member] | Contingent consideration liabilities [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Measured at FVPL [member] | Derivative financial instruments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (16) | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Valued at amortized cost or cost [member] | Non-current financial debt [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Valued at amortized cost or cost [member] | Current financial debt [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Measured at FVOCI [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Measured at FVPL [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Measured at FVPL [member] | Money market funds [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | ||
Recurring fair value measurement [member] | Level 2 [member] | Measured at FVPL [member] | Current portion of long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Measured at FVPL [member] | Derivative fInancial instruments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 1 | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Valued at amortized cost or cost [member] | Long-term receivables from customers [member] | |||
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 [member] | Level 2 [member] | Valued at amortized cost or cost [member] | Minimum lease payments from finance leases [member] | |||
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 [member] | Level 2 [member] | Valued at amortized cost or cost [member] | Long-term loans, advances, and security deposits [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Valued at amortized cost or cost [member] | Other receivables, security deposits and current assets [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 2 [member] | Valued at amortized cost or cost [member] | VAT receivables [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 3 [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 59 | 86 | |
Current financial assets | 33 | 31 | |
Total financial assets at fair value and amortized cost or cost | 92 | 117 | |
Total financial liabilities at fair value and amortized cost | (243) | (162) | |
Recurring fair value measurement [member] | Level 3 [member] | Measured at FVPL [member] | Contingent consideration liabilities [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | (243) | (162) | |
Recurring fair value measurement [member] | Level 3 [member] | Measured at FVPL [member] | Derivative financial instruments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 3 [member] | Valued at amortized cost or cost [member] | Non-current financial debt [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 3 [member] | Valued at amortized cost or cost [member] | Current financial debt [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Total financial liabilities at fair value and amortized cost | 0 | 0 | |
Recurring fair value measurement [member] | Level 3 [member] | Measured at FVOCI [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 31 | 19 | |
Recurring fair value measurement [member] | Level 3 [member] | Measured at FVPL [member] | Long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 28 | 67 | |
Recurring fair value measurement [member] | Level 3 [member] | Measured at FVPL [member] | Money market funds [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | ||
Recurring fair value measurement [member] | Level 3 [member] | Measured at FVPL [member] | Current portion of long-term financial investments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 33 | 31 | |
Recurring fair value measurement [member] | Level 3 [member] | Measured at FVPL [member] | Derivative fInancial instruments [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 3 [member] | Valued at amortized cost or cost [member] | Long-term receivables from customers [member] | |||
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 [member] | Level 3 [member] | Valued at amortized cost or cost [member] | Minimum lease payments from finance leases [member] | |||
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 [member] | Level 3 [member] | Valued at amortized cost or cost [member] | Long-term loans, advances, and security deposits [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Non-current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 3 [member] | Valued at amortized cost or cost [member] | Other receivables, security deposits and current assets [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | 0 | 0 | |
Recurring fair value measurement [member] | Level 3 [member] | Valued at amortized cost or cost [member] | VAT receivables [member] | |||
Disclosure of fair value measurement of assets and liabilities [Line Items] | |||
Current financial assets | $ 0 | $ 0 |
Financial instruments - addit_5
Financial instruments - additional disclosures - Activity in level 3 financial assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | $ 2,301 | |
Balance as of December 31 | 2,949 | $ 2,301 |
Measured at FVPL [member] | ||
Reconciliation of changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | 98 | |
Amortization | (61) | (74) |
Balance as of December 31 | 62 | 98 |
Measured at FVOCI [member] | ||
Reconciliation of changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | 19 | |
Balance as of December 31 | 31 | 19 |
Financial investments [member] | Measured at FVPL [member] | ||
Reconciliation of changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | 67 | |
Balance as of December 31 | 28 | 67 |
Financial investments [member] | Measured at FVOCI [member] | ||
Reconciliation of changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | 19 | |
Balance as of December 31 | 31 | 19 |
Financial investments [member] | Level 3 [member] | Measured at FVPL [member] | ||
Reconciliation of changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | 98 | 78 |
Additions | 34 | 92 |
Cash receipts and payments | (7) | (5) |
Gains/(losses) recognized in consolidated statements of comprehensive (loss)/income | 0 | 0 |
Unrealized gains/(losses) in consolidated income statements | (3) | 7 |
Reclassification | 0 | 0 |
Balance as of December 31 | 61 | 98 |
Financial investments [member] | Level 3 [member] | Measured at FVOCI [member] | ||
Reconciliation of changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | 19 | 26 |
Additions | 17 | 11 |
Cash receipts and payments | 0 | 0 |
Gains/(losses) recognized in consolidated statements of comprehensive (loss)/income | (7) | (23) |
Unrealized gains/(losses) in consolidated income statements | 0 | 0 |
Amortization | 0 | 0 |
Reclassification | 2 | 5 |
Balance as of December 31 | $ 31 | $ 19 |
Financial instruments - addit_6
Financial instruments - additional disclosures - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Maximum remaining potential payments related to contingent consideration from business combinations | $ 510 | |
Contingent consideration liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Purchases, fair value measurement, liabilities | $ 135 | $ 102 |
Adjustments for changes in assumptions | 62 | |
Interest rate risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in risk variable, percent | 1.00% | |
Reasonably possible change in risk variable, impact on loss before taxes | $ 12 | |
Commodity price risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in risk variable, percent | 10.00% | |
Level 3 [member] | Contingent consideration liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Purchases, fair value measurement, liabilities | $ 135 | 102 |
Adjustments for changes in assumptions | $ 75 | $ 62 |
Pricing, measurement input [Member] | Long-term financial investments [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of possible increase in unobservable input, assets | 10.00% | |
Increase (decrease) in fair value due to increase in unobservable input, assets | $ 3 | |
Percentage of reasonably possible decrease in unobservable input, assets | 10.00% | |
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, recognised in other comprehensive income, before tax, assets | $ 3 | |
Significant parameters, measurement input [Member] | Contingent consideration liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of possible increase in unobservable input, liabilities | 10.00% | |
Increase (decrease) in fair value due to possible increase in unobservable input, recognised in profit or loss, before tax, liabilities | $ 34 | |
Percentage of reasonably possible decrease in unobservable input, liabilities | 10.00% | |
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, recognised in profit or loss, before tax, liabilities | $ 34 | |
Probability of success, measurement input [Member] | Contingent consideration liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of possible increase in unobservable input, liabilities | 10.00% | |
Increase (decrease) in fair value due to possible increase in unobservable input, recognised in profit or loss, before tax, liabilities | $ 32 | |
Percentage of reasonably possible decrease in unobservable input, liabilities | 10.00% | |
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, recognised in profit or loss, before tax, liabilities | $ 32 |
Financial instruments - addit_7
Financial instruments - additional disclosures - Activity in level 3 financial liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
Balance as of January 1 | $ (1,113) | |
Balance as of December 31 | (4,896) | $ (1,113) |
Contingent consideration liabilities [member] | ||
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
Additions | (135) | (102) |
Adjustments for changes in assumptions | 62 | |
Level 3 [member] | Contingent consideration liabilities [member] | ||
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
Balance as of January 1 | (162) | (113) |
Additions | (135) | (102) |
Accretion for passage of time | (21) | (9) |
Adjustments for changes in assumptions | 75 | 62 |
Payments | 0 | 0 |
Balance as of December 31 | $ (243) | $ (162) |
Provisions and other non-curr_3
Provisions and other non-current liabilities - Provisions and other non-current liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued liability for employee benefits: | ||
Defined benefit pension plans | $ 291 | $ 254 |
Other long-term employee benefits and deferred compensation | 140 | 104 |
Other post-employment benefits | 423 | 345 |
Provisions for product liabilities, governmental investigations and other legal matters | 0 | 0 |
Contingent consideration | 208 | 143 |
Other non-current liabilities | 106 | 67 |
Total provisions and other non-current liabilities | $ 1,168 | $ 913 |
Provisions and other non-curr_4
Provisions and other non-current liabilities - Additional information (Details) | 12 Months Ended | 60 Months Ended |
Dec. 31, 2019patentcomplaint | Dec. 31, 2019complaint | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Number of legal cases filed against company | complaint | 2 | 50 |
Number of patents allegedly infringed | patent | 2 |
Provisions and other non-curr_5
Provisions and other non-current liabilities - Product liability, governmental investigations and other legal matters provision movements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in other provisions [abstract] | |||
Less current portion | $ 0 | $ (42) | |
Non-current provisions for product liabilities, governmental investigations and other legal matters at December 31 | 0 | 0 | |
Warranty, governmental investigations and other legal proceedings provisions [member] | |||
Reconciliation of changes in other provisions [abstract] | |||
January 1 | 42 | 49 | $ 9 |
Additions to provisions | 0 | 1 | 55 |
Cash payments | (40) | (1) | (6) |
Releases | (2) | (7) | (9) |
December 31 | 0 | 42 | 49 |
Less current portion | 0 | (42) | (43) |
Non-current provisions for product liabilities, governmental investigations and other legal matters at December 31 | $ 0 | $ 0 | $ 6 |
Provisions and other current _3
Provisions and other current liabilities - Provisions and other current liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||||
Taxes other than income taxes | $ 81 | $ 57 | ||
Restructuring provisions | 28 | 8 | ||
Accrued expenses for goods and services received but not invoiced | 79 | 71 | ||
Accruals for royalties | 10 | 6 | ||
Accruals for deductions from revenue | 212 | 194 | $ 213 | $ 182 |
Accruals for compensation and benefits including social security | 382 | 363 | ||
Deferred income | 97 | 94 | ||
Provisions for product liabilities, governmental investigations and other legal matters | 0 | 42 | ||
Accrued share-based payments | 10 | 6 | ||
Accrued interest on financial debts | 19 | 0 | ||
Contingent considerations | 35 | 19 | ||
Other payables | 85 | 20 | ||
Total provisions and other current liabilities | $ 1,038 | $ 880 |
Provisions and other current _4
Provisions and other current liabilities - Accruals for deductions from revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
January 1 | $ 194 | $ 213 | $ 182 |
Additions | 662 | 603 | 619 |
Payments/utilizations | (646) | (613) | (601) |
Changes in offset against gross trade receivables | 1 | 2 | 7 |
Currency translation effects | 1 | (11) | 6 |
December 31 | $ 212 | $ 194 | $ 213 |
Provisions and other current _5
Provisions and other current liabilities - Restructuring provisions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in other provisions [abstract] | |||
January 1 | $ 42,000,000 | ||
December 31 | 0 | $ 42,000,000 | |
Restructuring provisions [member] | |||
Reconciliation of changes in other provisions [abstract] | |||
January 1 | 8,000,000 | 3,000,000 | $ 13,000,000 |
Additions | 32,000,000 | 13,000,000 | 0 |
Cash payments | (10,000,000) | (7,000,000) | (6,000,000) |
Releases | (2,000,000) | (2,000,000) | (4,000,000) |
Currency translation effects | 0 | 1,000,000 | 0 |
December 31 | $ 28,000,000 | $ 8,000,000 | $ 3,000,000 |
Consolidated statement of cas_3
Consolidated statement of cash flows - additional details - Depreciation, amortization, impairments and fair value adjustments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation, amortization, impairments and fair value adjustments | $ 1,456 | $ 1,622 | $ 1,334 |
Property, plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation, amortization, impairments and fair value adjustments | 275 | 241 | 215 |
Right-of-use assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation, amortization, impairments and fair value adjustments | 66 | 0 | 0 |
Intangible assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation, amortization, impairments and fair value adjustments | 1,084 | 1,397 | 1,090 |
Financial asset [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation, amortization, impairments and fair value adjustments | $ 31 | $ (16) | $ 29 |
Consolidated statement of cas_4
Consolidated statement of cash flows - additional details - Change in net current assets and other operating cash flow items (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow Statement [Abstract] | |||
(Increase) in inventories | $ (108) | $ (150) | $ (87) |
(Increase)/decrease in trade receivables | (115) | 53 | (54) |
Increase in trade payables | 84 | 44 | 48 |
Net change in other current assets | (26) | 83 | 87 |
Net change in other current liabilities | 117 | 50 | 42 |
Total | $ (48) | $ 80 | $ 36 |
Consolidated statement of cas_5
Consolidated statement of cash flows - additional details - Cash flows arising from acquisitions of businesses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow Statement [Abstract] | |||
Net assets recognized as a result of business combinations | $ (418) | $ (286) | $ (124) |
Payables contingent consideration | 135 | 102 | 54 |
Other payments | 0 | (55) | |
Cash flows | $ (283) | $ (239) | $ (70) |
Consolidated statement of cas_6
Consolidated statement of cash flows - additional details - Reconciliation of assets and liabilities arising from financing activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Proceeds from non-current financial debts, net of issuance costs | $ 3,724 | $ 0 | $ 0 |
Repayment of non-current financial debts | (509) | 0 | 0 |
Proceeds from Bridge Facility, net of issuance costs | 1,495 | 0 | 0 |
Repayment of Bridge Facility | (1,500) | 0 | 0 |
Change in current financial debts | 202 | (6) | (111) |
Change in other financial receivables from former parent | 39 | 26 | (24) |
Change in other financial liabilities to former parent | (67) | 21 | 20 |
Non-current financial debt [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Financial liabilities, beginning balance | 0 | 84 | |
Proceeds from non-current financial debts, net of issuance costs | 3,724 | ||
Repayment of non-current financial debts | (509) | ||
Non-cash changes in derivatives and other fair value adjustments | 2 | ||
Non-cash change in finance lease obligation | 5 | ||
Currency translation effects | 1 | ||
Reclassification from non-current financial debts to lease liabilities | (89) | ||
Financial liabilities, ending balance | 3,218 | 0 | 84 |
Current financial debt [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Financial liabilities, beginning balance | 47 | 65 | |
Proceeds from Bridge Facility, net of issuance costs | 1,495 | ||
Repayment of Bridge Facility | (1,500) | ||
Change in current financial debts | 202 | (6) | |
Non-cash changes in derivatives and other fair value adjustments | 20 | ||
Currency translation effects | (3) | (12) | |
Financial liabilities, ending balance | 261 | 47 | 65 |
Other financial liabilities to former parent [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Financial liabilities, beginning balance | 67 | 46 | |
Change in other financial liabilities to former parent | (67) | 21 | |
Financial liabilities, ending balance | 0 | 67 | 46 |
Total liabilities arising from financing activities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Total, beginning balance | 114 | 195 | |
Proceeds from non-current financial debts, net of issuance costs | 3,724 | ||
Repayment of non-current financial debts | (509) | ||
Proceeds from Bridge Facility, net of issuance costs | 1,495 | ||
Repayment of Bridge Facility | (1,500) | ||
Change in current financial debts | 202 | (6) | |
Non-cash changes in derivatives and other fair value adjustments | 22 | ||
Change in other financial receivables from former parent | |||
Change in other financial liabilities to former parent | (67) | 21 | |
Non-cash change in finance lease obligation | 5 | ||
Currency translation effects | (2) | (12) | |
Reclassification from non-current financial debts to lease liabilities | (89) | ||
Total, ending balance | 3,479 | 114 | 195 |
Other financial receivables from former parent [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Financial assets, beginning balance | (39) | (65) | |
Change in other financial receivables from former parent | 39 | 26 | |
Financial assets, ending balance | $ 0 | $ (39) | $ (65) |
Acquisitions of businesses (Det
Acquisitions of businesses (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Combinations1 [Abstract] | |||
Property, plant & equipment | $ 1,000,000 | $ 1,000,000 | $ 0 |
Currently marketed products | 0 | 346,000,000 | 0 |
Acquired research & development | 505,000,000 | 0 | 178,000,000 |
Deferred tax assets | 28,000,000 | 12,000,000 | 8,000,000 |
Inventories | 0 | 3,000,000 | 0 |
Trade receivables and other current assets | 0 | 2,000,000 | 0 |
Cash and cash equivalents | 6,000,000 | 5,000,000 | 1,000,000 |
Deferred tax liabilities | (121,000,000) | (78,000,000) | (64,000,000) |
Trade payables and other liabilities | (1,000,000) | (4,000,000) | 0 |
Net identifiable assets acquired | 418,000,000 | 287,000,000 | 123,000,000 |
Acquired liquidity | (6,000,000) | (5,000,000) | (1,000,000) |
Goodwill | 6,000,000 | 4,000,000 | 2,000,000 |
Net assets recognized as a result of business combinations | 418,000,000 | 286,000,000 | 124,000,000 |
Goodwill expected to be deductible for tax purposes | $ 0 | $ 0 | $ 0 |
Post-employment benefits for _3
Post-employment benefits for associates - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | |||
Weighted average duration of defined benefit obligation | 15 years 7 months 6 days | 16 years 10 months 24 days | |
Defined contribution plans charges | $ 128 | $ 105 | $ 97 |
Benefit obligation [member] | |||
Disclosure of defined benefit plans [line items] | |||
Top four countries, percentage | 87.00% | ||
Pension plans [member] | Germany | Foreign countries [member] | |||
Disclosure of defined benefit plans [line items] | |||
Maximum number of years to eliminate shortfall | 10 years | ||
Other post-employment benefit plans [member] | Benefit obligation [member] | |||
Disclosure of defined benefit plans [line items] | |||
Associates covered, percentage | 99.00% |
Post-employment benefits for _4
Post-employment benefits for associates - Summary of funded and unfunded DBO and net liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset) - January 1 | $ 242 | $ 232 |
Current service cost | 22 | 28 |
Interest cost (income) | 5 | 6 |
Past service costs and settlements | 2 | 1 |
Administrative expenses | 1 | 1 |
Currency translation effects | (6) | (6) |
Employer contributions | 21 | 19 |
Effect of acquisitions, divestments or transfers | (5) | 2 |
Net defined benefit liability (asset) - December 31 | 278 | 242 |
Funded status | (272) | (238) |
Limitation on recognition of fund surplus at January 1 | (4) | (6) |
Change in limitation on recognition of fund surplus (including exchange rate differences) | (2) | 2 |
Limitation on recognition of fund surplus at December 31 | (6) | (4) |
Pension plans [member] | Benefit obligation [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset) - January 1 | 662 | 671 |
Current service cost | 22 | 28 |
Interest cost (income) | 13 | 15 |
Past service costs and settlements | 2 | 0 |
Administrative expenses | 1 | 1 |
Remeasurement losses/(gains) arising from changes in financial assumptions | 71 | (17) |
Remeasurement losses/(gains) arising from changes in demographic assumptions | 6 | 1 |
Experience-related remeasurement (gains)/losses | (5) | 2 |
Currency translation effects | 1 | (15) |
Benefit payments | 15 | 29 |
Contributions of associates | (5) | (4) |
Effect of acquisitions, divestments or transfers | (40) | 1 |
Net defined benefit liability (asset) - December 31 | 723 | 662 |
Pension plans [member] | Plan assets [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset) - January 1 | (424) | (445) |
Interest cost (income) | (8) | (9) |
Return on plan assets excluding interest income | 36 | (13) |
Currency translation effects | (7) | 9 |
Benefit payments | (15) | (29) |
Employer contributions | 21 | 19 |
Contributions of associates | 5 | 4 |
Settlements | 0 | (1) |
Effect of acquisitions, divestments or transfers | 35 | 1 |
Net defined benefit liability (asset) - December 31 | (451) | (424) |
Other post-employment benefit plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset) - January 1 | 345 | 317 |
Current service cost | 8 | 11 |
Interest cost (income) | 14 | 11 |
Past service costs and settlements | 0 | 0 |
Administrative expenses | 0 | 0 |
Currency translation effects | 0 | 0 |
Employer contributions | (28) | (11) |
Effect of acquisitions, divestments or transfers | 0 | 0 |
Net defined benefit liability (asset) - December 31 | 423 | 345 |
Funded status | (423) | (345) |
Change in limitation on recognition of fund surplus (including exchange rate differences) | 0 | 0 |
Other post-employment benefit plans [member] | Benefit obligation [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset) - January 1 | 385 | 382 |
Current service cost | 8 | 11 |
Interest cost (income) | 15 | 13 |
Past service costs and settlements | 0 | 0 |
Administrative expenses | 0 | 0 |
Remeasurement losses/(gains) arising from changes in financial assumptions | 52 | (3) |
Remeasurement losses/(gains) arising from changes in demographic assumptions | (1) | 6 |
Experience-related remeasurement (gains)/losses | (20) | (11) |
Currency translation effects | 0 | 0 |
Benefit payments | 16 | 13 |
Contributions of associates | 0 | 0 |
Effect of acquisitions, divestments or transfers | 0 | 0 |
Net defined benefit liability (asset) - December 31 | 423 | 385 |
Other post-employment benefit plans [member] | Plan assets [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset) - January 1 | (40) | (65) |
Interest cost (income) | (1) | (2) |
Return on plan assets excluding interest income | 3 | (3) |
Currency translation effects | 0 | 0 |
Benefit payments | (16) | (13) |
Employer contributions | (28) | (11) |
Contributions of associates | 0 | 0 |
Settlements | 0 | 0 |
Effect of acquisitions, divestments or transfers | 0 | 0 |
Net defined benefit liability (asset) - December 31 | $ 0 | $ (40) |
Post-employment benefits for _5
Post-employment benefits for associates - Reconciliation of net liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability | $ (242) | $ (232) |
Current service cost | (22) | (28) |
Net interest expense | (5) | (6) |
Administrative expenses | (1) | (1) |
Past service costs and settlements | (2) | (1) |
Remeasurements | (36) | 1 |
Currency translation effects | 6 | 6 |
Employer contributions | 21 | 19 |
Effect of acquisitions, divestments or transfers | 5 | (2) |
Change in limitation on recognition of fund surplus | (2) | 2 |
Net defined benefit liability | (278) | (242) |
Other post-employment benefit plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability | (345) | (317) |
Current service cost | (8) | (11) |
Net interest expense | (14) | (11) |
Administrative expenses | 0 | 0 |
Past service costs and settlements | 0 | 0 |
Remeasurements | (28) | 5 |
Currency translation effects | 0 | 0 |
Employer contributions | (28) | (11) |
Effect of acquisitions, divestments or transfers | 0 | 0 |
Change in limitation on recognition of fund surplus | 0 | 0 |
Net defined benefit liability | (423) | (345) |
Prepaid benefit cost [member] | Pension plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability | 12 | |
Net defined benefit liability | 13 | 12 |
Prepaid benefit cost [member] | Other post-employment benefit plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability | 0 | |
Net defined benefit liability | 0 | 0 |
Accrued benefit liability [member] | Pension plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability | (254) | |
Net defined benefit liability | (291) | (254) |
Accrued benefit liability [member] | Other post-employment benefit plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability | (345) | |
Net defined benefit liability | $ (423) | $ (345) |
Post-employment benefits for _6
Post-employment benefits for associates - Breakdown of DBO for pension plans by geography and type of member (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of net defined benefit liability (asset) [line items] | ||
Prepaid benefit costs | $ 8 | $ 4 |
Pension plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 723 | 662 |
Fair value of plan assets | 451 | 424 |
Funded status | (272) | (238) |
Pension plans [member] | Active [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 440 | 406 |
Pension plans [member] | Deferred pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 151 | 150 |
Pension plans [member] | Pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 132 | 106 |
Pension plans [member] | Unfunded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 99 | 88 |
Pension plans [member] | Unfunded portion of funded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 192 | 166 |
Country of domicile [member] | Switzerland | Pension plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 244 | 201 |
Fair value of plan assets | 132 | 106 |
Funded status | (112) | (95) |
Country of domicile [member] | Switzerland | Pension plans [member] | Active [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 216 | 166 |
Country of domicile [member] | Switzerland | Pension plans [member] | Deferred pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 12 | 18 |
Country of domicile [member] | Switzerland | Pension plans [member] | Pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 16 | 17 |
Country of domicile [member] | Switzerland | Pension plans [member] | Unfunded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 47 | 49 |
Country of domicile [member] | Switzerland | Pension plans [member] | Unfunded portion of funded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 65 | 46 |
Foreign countries [member] | United States | Pension plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 127 | 111 |
Fair value of plan assets | 80 | 67 |
Funded status | (47) | (44) |
Foreign countries [member] | United States | Pension plans [member] | Active [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 40 | 36 |
Foreign countries [member] | United States | Pension plans [member] | Deferred pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 46 | 32 |
Foreign countries [member] | United States | Pension plans [member] | Pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 41 | 43 |
Foreign countries [member] | United States | Pension plans [member] | Unfunded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 29 | 21 |
Foreign countries [member] | United States | Pension plans [member] | Unfunded portion of funded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 18 | 23 |
Foreign countries [member] | United Kingdom | Pension plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 109 | 94 |
Fair value of plan assets | 17 | 16 |
Funded status | (92) | (78) |
Foreign countries [member] | United Kingdom | Pension plans [member] | Active [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 61 | 56 |
Foreign countries [member] | United Kingdom | Pension plans [member] | Deferred pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 27 | 22 |
Foreign countries [member] | United Kingdom | Pension plans [member] | Pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 21 | 16 |
Foreign countries [member] | United Kingdom | Pension plans [member] | Unfunded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 0 | 0 |
Foreign countries [member] | United Kingdom | Pension plans [member] | Unfunded portion of funded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 92 | 78 |
Foreign countries [member] | Germany | Pension plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 98 | 86 |
Fair value of plan assets | 109 | 98 |
Funded status | 11 | 12 |
Foreign countries [member] | Germany | Pension plans [member] | Active [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 0 | 0 |
Foreign countries [member] | Germany | Pension plans [member] | Deferred pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 54 | 69 |
Foreign countries [member] | Germany | Pension plans [member] | Pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 44 | 17 |
Foreign countries [member] | Germany | Pension plans [member] | Unfunded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 0 | 0 |
Foreign countries [member] | Germany | Pension plans [member] | Unfunded portion of funded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 0 | 0 |
Foreign countries [member] | Rest of the world | Pension plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 145 | 170 |
Fair value of plan assets | 113 | 137 |
Funded status | (32) | (33) |
Foreign countries [member] | Rest of the world | Pension plans [member] | Active [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 123 | 148 |
Foreign countries [member] | Rest of the world | Pension plans [member] | Deferred pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 12 | 9 |
Foreign countries [member] | Rest of the world | Pension plans [member] | Pensioners [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 10 | 13 |
Foreign countries [member] | Rest of the world | Pension plans [member] | Unfunded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | 23 | 18 |
Foreign countries [member] | Rest of the world | Pension plans [member] | Unfunded portion of funded plans [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Benefit obligation | $ 17 | $ 19 |
Post-employment benefits for _7
Post-employment benefits for associates - Weighted average actuarial assumptions (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension plans [member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 1.70% | 2.20% |
Expected rate of pension increase | 1.20% | 1.10% |
Expected rate of salary increase | 3.30% | 2.80% |
Interest on savings account | 1.00% | 0.80% |
Current average life expectancy for a 65-year-old male (in years) | 21 years | 21 years |
Current average life expectancy for a 65-year-old female (in years) | 24 years | 23 years |
Other post-employment benefit plans [member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.30% | 4.30% |
Expected rate of pension increase | ||
Expected rate of salary increase | ||
Interest on savings account | ||
Current average life expectancy for a 65-year-old male (in years) | 21 years | 21 years |
Current average life expectancy for a 65-year-old female (in years) | 23 years | 23 years |
Post-employment benefits for _8
Post-employment benefits for associates - Sensitivity analysis (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Discount rate [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 0.25% |
Percentage of reasonably possible decrease in actuarial assumption | 0.25% |
Increase (decrease) in defined benefit obligation due to increase in actuarial assumption | $ (43) |
Increase (decrease) in defined benefit obligation due to decrease in actuarial assumption | $ 46 |
Life expectancy [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Duration of reasonably possible increase in actuarial assumption | 1 year |
Increase (decrease) in defined benefit obligation due to increase in actuarial assumption | $ 32 |
Rate of pension increase [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 0.25% |
Percentage of reasonably possible decrease in actuarial assumption | 0.25% |
Increase (decrease) in defined benefit obligation due to increase in actuarial assumption | $ 15 |
Increase (decrease) in defined benefit obligation due to decrease in actuarial assumption | $ (27) |
Interest on savings account [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 0.25% |
Percentage of reasonably possible decrease in actuarial assumption | 0.25% |
Increase (decrease) in defined benefit obligation due to increase in actuarial assumption | $ 2 |
Increase (decrease) in defined benefit obligation due to decrease in actuarial assumption | $ (2) |
Rate of salary increase [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 0.25% |
Percentage of reasonably possible decrease in actuarial assumption | 0.25% |
Increase (decrease) in defined benefit obligation due to increase in actuarial assumption | $ 6 |
Increase (decrease) in defined benefit obligation due to decrease in actuarial assumption | $ (6) |
Post-employment benefits for _9
Post-employment benefits for associates - Healthcare cost trend rate assumptions used for other post-employment benefits (Details) - Other post-employment benefit plans [member] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of defined benefit plans [line items] | |||
Healthcare cost trend rate assumed for next year | 6.50% | 7.00% | 6.50% |
Rate to which the cost trend rate is assumed to decline | 4.50% | 4.50% | 4.50% |
Post-employment benefits for_10
Post-employment benefits for associates - Weighted average plan asset allocation (Details) - Pension plans [member] | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value of plan assets [line items] | ||
Equity securities | 32.00% | 28.00% |
Debt securities | 42.00% | 43.00% |
Real estate | 7.00% | 9.00% |
Alternative investments | 15.00% | 17.00% |
Cash and other investments | 4.00% | 3.00% |
Total | 100.00% | 100.00% |
Minimum [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities, target | 15.00% | |
Debt securities, target | 20.00% | |
Real estate, target | 5.00% | |
Alternative investments, target | 0.00% | |
Cash and other investments, target | 0.00% | |
Maximum [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities, target | 40.00% | |
Debt securities, target | 60.00% | |
Real estate, target | 20.00% | |
Alternative investments, target | 20.00% | |
Cash and other investments, target | 15.00% |
Post-employment benefits for_11
Post-employment benefits for associates - Schedule of expected future cash flows (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Pension plans [member] | |
Employer contributions | |
2020 (estimated) | $ 14 |
Other post-employment benefit plans [member] | |
Employer contributions | |
2020 (estimated) | 0 |
2020 [member] | Pension plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 41 |
2020 [member] | Other post-employment benefit plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 21 |
2021 [member] | Pension plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 26 |
2021 [member] | Other post-employment benefit plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 22 |
2022 [member] | Pension plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 27 |
2022 [member] | Other post-employment benefit plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 24 |
2023 [member] | Pension plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 27 |
2023 [member] | Other post-employment benefit plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 25 |
2024 [member] | Pension plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 32 |
2024 [member] | Other post-employment benefit plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 26 |
2025-2029 [member] | Pension plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | 169 |
2025-2029 [member] | Other post-employment benefit plans [member] | |
Expected future benefit payments | |
Expected future benefit payments | $ 133 |
Equity-based compensation - Add
Equity-based compensation - Additional information (Details) $ / shares in Units, shares in Thousands, $ in Millions | Apr. 08, 2019shares | Mar. 31, 2020metric | Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares$ / shares | Dec. 31, 2017USD ($)shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Equity-based compensation expense | $ | $ 114 | $ 93 | $ 71 | |||
Accrued share-based payments | $ | $ 10 | $ 10 | $ 6 | |||
Number of awards issued/granted (in shares) | 4,200 | 700 | ||||
Number of awards outstanding (in shares) | 4,222 | 4,742 | 4,742 | 3,443 | 2,800 | |
Number of awards vested (in shares) | 108 | 814 | ||||
Number of awards forfeited (in shares) | 114 | 208 | ||||
Remaining weighted-average vesting period | 1 year 6 months | |||||
Chief executive officer [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Percent paid in cash | 50.00% | 50.00% | ||||
Percent paid in equity shares | 50.00% | 50.00% | ||||
Top leaders [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Percent paid in cash | 70.00% | 70.00% | ||||
Percent paid in equity shares | 30.00% | 30.00% | ||||
Long-term Incentive Plan [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Vesting period | 3 years | |||||
Number of metrics | metric | 4 | |||||
Restricted awards [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of awards issued/granted (in shares) | 625 | |||||
Vesting period | 3 years | |||||
Novartis equity plan select, outside North America [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of awards issued/granted (in shares) | 141 | |||||
Weighted average share price (in dollars per share) | $ / shares | $ 86.2 | |||||
Novartis equity plan select, North America [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of awards issued/granted (in shares) | 689 | |||||
Weighted average share price (in dollars per share) | $ / shares | $ 81.4 | |||||
Minimum [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share savings plan holding period | 3 years | |||||
Minimum [member] | Long-term Incentive Plan [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Target incentive percent of base salary | 30.00% | |||||
Payout percent | 0.00% | |||||
Maximum [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share savings plan holding period | 5 years | |||||
Maximum [member] | Long-term Incentive Plan [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Target incentive percent of base salary | 280.00% | |||||
Payout percent | 200.00% |
Equity-based compensation - Sum
Equity-based compensation - Summary of non-vested share movements (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Apr. 08, 2019USD ($)shares | Dec. 31, 2019USD ($)shares$ / shares | Dec. 31, 2018USD ($)shares$ / shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Non-vested shares at January 1 (in shares) | 4,222 | 2,800 | |
Granted (in shares) | 4,200 | 700 | |
Vested (in shares) | (108) | (814) | |
Forfeited (in shares) | (114) | (208) | |
Non-invested shares at December 31 (in shares) | 4,222 | 4,742 | 3,443 |
Outstanding, beginning balance, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 74.4 | ||
Vested, weighted average fair value at grant date (in dollars per share) | $ / shares | 93 | ||
Forfeited, weighted average fair value at grant date (in dollars per share) | $ / shares | 80.4 | ||
Outstanding, ending balance, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 51.2 | $ 72.9 | |
Fair value, beginning balance, non-vested | $ | $ 212,367 | $ 208,300 | |
Fair value, vested | $ | (5,432) | (75,702) | |
Fair value, forfeited | $ | (5,734) | (16,723) | |
Fair value, ending balance, non-vested | $ | $ 212,367 | $ 243,020 | $ 251,046 |
Restricted awards [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted (in shares) | 625 | ||
Granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 56.1 | ||
Fair value, granted | $ | $ 35,037 | ||
Performance awards [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted (in shares) | 117 | ||
Granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 58 | ||
Fair value, granted | $ | $ 6,782 | ||
Annual incentive [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted (in shares) | 168 | ||
Granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 83.7 | ||
Fair value, granted | $ | $ 14,062 | ||
Share savings plans [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted (in shares) | 109 | ||
Granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 85.5 | ||
Fair value, granted | $ | $ 9,320 | ||
Novartis equity plan select, North America [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted (in shares) | 689 | ||
Granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 77.9 | ||
Fair value, granted | $ | $ 53,673 | ||
Novartis equity plan select, outside North America [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted (in shares) | 141 | ||
Granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 79.8 | ||
Fair value, granted | $ | $ 11,252 | ||
Long-term performance plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted (in shares) | 316 | ||
Granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 88.4 | ||
Fair value, granted | $ | $ 27,934 | ||
Long-term relative performance plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted (in shares) | 37 | ||
Granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 51.2 | ||
Fair value, granted | $ | $ 1,894 | ||
Other share awards [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted (in shares) | 205 | ||
Granted, weighted average fair value at grant date (in dollars per share) | $ / shares | $ 83.1 | ||
Fair value, granted | $ | $ 17,036 |
Equity-based compensation - S_2
Equity-based compensation - Summary of shares authorized (Details) shares in Thousands | Dec. 31, 2019shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of shares authorized (in shares) | 22,250 |
Long-term Incentive Plan [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of shares authorized (in shares) | 20,000 |
Deferred Bonus Stock Plan [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of shares authorized (in shares) | 1,500 |
Swiss Employee Share Ownership Plan [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of shares authorized (in shares) | 475 |
Other share savings plans [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of shares authorized (in shares) | 275 |
Equity-based compensation - Equ
Equity-based compensation - Equity-based compensation activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2018shares$ / shares | |
Novartis equity plan select, outside North America [member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Options outstanding at January 1 (in shares) | shares | 500 |
Sold or exercised (in shares) | shares | (100) |
Options outstanding at December 31 (in shares) | shares | 426 |
Exercisable (in shares) | shares | 400 |
Options outstanding at January 1, weighted average exercise price (in dollars per share) | $ 61.4 |
Sold or exercised, weighted average exercise price (in dollars per share) | 59.7 |
Options outstanding at December 31, weighted average exercise price (in dollars per share) | 61.1 |
Exercisable, weighted average exercise price (in dollars per share) | 61.4 |
Options outstanding at January 1, weighted average exercise price | 24.7 |
Sold or exercised, weighted average exercise price | 29.1 |
Exercisable, weighted average exercise price | 26.5 |
Options outstanding at December 31, weighted average exercise price | $ 26.5 |
Novartis equity plan select, North America [member] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |
Options outstanding at January 1 (in shares) | shares | 1,800 |
Sold or exercised (in shares) | shares | (500) |
Options outstanding at December 31 (in shares) | shares | 1,288 |
Exercisable (in shares) | shares | 1,300 |
Options outstanding at January 1, weighted average exercise price (in dollars per share) | $ 62.6 |
Sold or exercised, weighted average exercise price (in dollars per share) | 62.4 |
Options outstanding at December 31, weighted average exercise price (in dollars per share) | 62.5 |
Exercisable, weighted average exercise price (in dollars per share) | 62.6 |
Options outstanding at January 1, weighted average exercise price | 21.4 |
Sold or exercised, weighted average exercise price | 25.8 |
Exercisable, weighted average exercise price | 23.2 |
Options outstanding at December 31, weighted average exercise price | $ 23.2 |
Equity-based compensation - S_3
Equity-based compensation - Summary of information of options outstanding (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019$ / shares | Dec. 31, 2018shares$ / shares | Dec. 31, 2017shares$ / shares | |
Novartis equity plan select, outside North America [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding in share-based payment arrangement (in shares) | shares | 426 | 500 | |
Weighted average remaining contractual life of outstanding share options | 3 years 3 months 18 days | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 61.4 | $ 61.1 | |
Novartis equity plan select, outside North America [member] | Exercise Price Range, 45-55 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding in share-based payment arrangement (in shares) | shares | 32 | ||
Weighted average remaining contractual life of outstanding share options | 21 days | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 52.4 | ||
Novartis equity plan select, outside North America [member] | Exercise Price Range, 45-55 [member] | Minimum [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price, share options granted (in dollars per share) | $ 45 | ||
Novartis equity plan select, outside North America [member] | Exercise Price Range, 45-55 [member] | Maximum [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price, share options granted (in dollars per share) | 55 | ||
Novartis equity plan select, outside North America [member] | Exercise Price Range, 56-66 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding in share-based payment arrangement (in shares) | shares | 394 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 6 months | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 62.1 | ||
Novartis equity plan select, outside North America [member] | Exercise Price Range, 56-66 [member] | Minimum [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price, share options granted (in dollars per share) | 56 | ||
Novartis equity plan select, outside North America [member] | Exercise Price Range, 56-66 [member] | Maximum [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price, share options granted (in dollars per share) | 66 | ||
Novartis equity plan select, North America [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding in share-based payment arrangement (in shares) | shares | 1,288 | 1,800 | |
Weighted average remaining contractual life of outstanding share options | 3 years 6 months | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 62.6 | $ 62.5 | |
Novartis equity plan select, North America [member] | Exercise Price Range, 45-55 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding in share-based payment arrangement (in shares) | shares | 30 | ||
Weighted average remaining contractual life of outstanding share options | 18 days | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 50.7 | ||
Novartis equity plan select, North America [member] | Exercise Price Range, 45-55 [member] | Minimum [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price, share options granted (in dollars per share) | 45 | ||
Novartis equity plan select, North America [member] | Exercise Price Range, 45-55 [member] | Maximum [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price, share options granted (in dollars per share) | 55 | ||
Novartis equity plan select, North America [member] | Exercise Price Range, 56-66 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding in share-based payment arrangement (in shares) | shares | 1,258 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 7 months 6 days | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 62.9 | ||
Novartis equity plan select, North America [member] | Exercise Price Range, 56-66 [member] | Minimum [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price, share options granted (in dollars per share) | 56 | ||
Novartis equity plan select, North America [member] | Exercise Price Range, 56-66 [member] | Maximum [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price, share options granted (in dollars per share) | $ 66 |
Related parties transactions -
Related parties transactions - Schedule of related parties transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Apr. 08, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party [Abstract] | ||||
Sales to former parent | $ 0 | $ 4 | $ 4 | |
Contract manufacturing revenues from former parent | $ 47 | 47 | 0 | 0 |
Purchases from former parent | $ 19 | 19 | 4 | $ 3 |
Receivables from former parent | 0 | 20 | ||
Payables to former parent | 0 | 85 | ||
Other financial receivables from former parent | 0 | 39 | ||
Other financial liabilities to former parent | $ 0 | $ 67 |
Related parties transactions _2
Related parties transactions - Additional information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 08, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | ||||
Contract manufacturing revenues from former parent | $ 47,000,000 | $ 47,000,000 | $ 0 | $ 0 |
Purchases from former parent | 19,000,000 | 19,000,000 | 4,000,000 | 3,000,000 |
Services received, related party transactions | $ 40,000,000 | 553,000,000 | 535,000,000 | |
Personnel compensation | 24,100,000 | $ 22,400,000 | $ 16,900,000 | |
Key management personnel of entity or parent [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Personnel compensation | $ 84,844 |
Related parties transactions _3
Related parties transactions - Key management compensation (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)manager | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Related Party [Abstract] | |||
Number of key management personnel | manager | 7 | ||
Cash and other compensation | $ 12.5 | $ 10.3 | $ 9.3 |
Post-employment benefits | 0.9 | 0.8 | 0.8 |
Equity-based compensation | 10.7 | 11.3 | 6.8 |
Total | $ 24.1 | $ 22.4 | $ 16.9 |
Commitments and contingencies -
Commitments and contingencies - Research and development payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Disclosure of contingent liabilities [line items] | |
Commitments to make payments under R&D arrangements | $ 181 |
2020 [member] | |
Disclosure of contingent liabilities [line items] | |
Commitments to make payments under R&D arrangements | 28 |
2021 [member] | |
Disclosure of contingent liabilities [line items] | |
Commitments to make payments under R&D arrangements | 41 |
2022 [member] | |
Disclosure of contingent liabilities [line items] | |
Commitments to make payments under R&D arrangements | 4 |
2023 [member] | |
Disclosure of contingent liabilities [line items] | |
Commitments to make payments under R&D arrangements | 4 |
2024 [member] | |
Disclosure of contingent liabilities [line items] | |
Commitments to make payments under R&D arrangements | 33 |
Thereafter [member] | |
Disclosure of contingent liabilities [line items] | |
Commitments to make payments under R&D arrangements | $ 71 |
Subsequent events (Details)
Subsequent events (Details) - Feb. 25, 2020 - Potential ordinary share transactions [member] $ in Millions | USD ($) | SFr / shares |
Disclosure of non-adjusting events after reporting period [line items] | ||
Dividends declared (per share) | SFr / shares | SFr 0.19 | |
Dividends declared, amount | $ | $ 95 |
Alcon subsidiaries - Equity int
Alcon subsidiaries - Equity interests (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of subsidiaries [line items] | |
Total asset and net sales threshold | $ 5 |
Alcon Laboratorios Argentina S.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories (Australia) Pty Ltd [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Ophthalmika GmbH [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories Belgium BVBA [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
N.V. Alcon S.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Canada Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratorios Chile Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon (China) Ophthalmic Product Co., Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Hong Kong Limited [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Laboratorios Alcon de Colombia S.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Pharmaceuticals (Czech Republic) s.r.o. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Nordic A/S [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Dominicana, SRL [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
AlconLab Ecuador S.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Laboratoires Alcon S.A.S. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Pharma GmbH [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
CIBA Vision GmbH [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
WaveLight GmbH [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories Hellas- Commercial and Industrial S.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Hungary Pharmaceuticals Trading Limited Liability Company [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories (India) Private Limited [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
PT. CIBA Vision Batam [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories Ireland Limited [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Optonol Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Italia S.p.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Japan Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories (Malaysia) Sdn. Bhd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
CIBA Vision Johor Sdn. Bhd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratorios, S.A. de C.V. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Maroc SARL D´Associé Unique [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Nederland B.V. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories (New Zealand) Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories (Philippines), Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Pharmaceutical del Peru S.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories (Philippines), Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Polska Sp. z o.o. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Portugal-Produtos e Equipamentos Oftalmológicos Lda. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon (Puerto Rico), Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Romania S.R.L. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Farmacevtika LLC [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Pte Ltd [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Singapore Manufacturing Pte Ltd [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
CIBA Vision Asian Manufacturing and Logistics Pte Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories (South Africa) (Pty) Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Korea Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Healthcare S.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Grieshaber AG [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Management SA [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Pharmaceuticals Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Services AG [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Switzerland SA [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories (Thailand) Limited [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratuvarlari Ticaret A.S. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Ukraine LLC [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Eye Care UK Limited [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Finance Corporation [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Laboratories, Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon RefractiveHorizons, LLC [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Research, LLC [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Vision, LLC[Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
CIBA Vision, LLC [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
WaveLight, Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
ClarVista Medical, Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
PowerVision, Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Tear Film Innovations, Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
TrueVision Systems, Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |
Alcon Lensx, Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of voting rights held in subsidiary | 100.00% |