Cover Page
Cover Page - € / shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39695 | |
Entity Registrant Name | VIATRIS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-4364296 | |
Entity Address, Address Line One | 1000 Mylan Boulevard | |
Entity Address, City or Town | Canonsburg | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15317 | |
City Area Code | 724 | |
Local Phone Number | 514-1800 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | VTRS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Stock, Par or Stated Value Per Share | € 0.01 | |
Entity Ordinary Shares, Shares Outstanding | 1,212,684,598 | |
Entity Central Index Key | 0001792044 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues [Abstract] | ||||
Net sales | $ 4,067.4 | $ 4,520.5 | $ 12,351 | $ 13,482.3 |
Total revenues | 4,078.2 | 4,536.6 | 12,386.7 | 13,544.7 |
Cost of sales | 2,329.8 | 2,962.5 | 7,163.8 | 9,515.6 |
Gross profit | 1,748.4 | 1,574.1 | 5,222.9 | 4,029.1 |
Operating expenses: | ||||
Research and development | 174.9 | 152.1 | 479.8 | 483.9 |
Selling, general and administrative | 1,017.3 | 1,055 | 2,913.7 | 3,446.3 |
Litigation settlements and other contingencies, net | (3.9) | 9.4 | 13.2 | 55.3 |
Total operating expenses | 1,188.3 | 1,216.5 | 3,406.7 | 3,985.5 |
Earnings from operations | 560.1 | 357.6 | 1,816.2 | 43.6 |
Interest expense | 153.2 | 151.9 | 445.3 | 488 |
Other (income) expense, net | (20.6) | 5.8 | 26.6 | 16.1 |
Earnings before income taxes | 427.5 | 199.9 | 1,344.3 | (460.5) |
Income tax provision (benefit) | 73.2 | (111.6) | 276.9 | 544.8 |
Net earnings (loss) | $ 354.3 | $ 311.5 | $ 1,067.4 | $ (1,005.3) |
Earnings (loss) per share attributable to Viatris Inc. shareholders | ||||
Basic (in USD per share) | $ 0.29 | $ 0.26 | $ 0.88 | $ (0.83) |
Diluted (in USD per share) | $ 0.29 | $ 0.26 | $ 0.88 | $ (0.83) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 1,212.5 | 1,209.3 | 1,211.8 | 1,208.6 |
Diluted (in shares) | 1,218.1 | 1,212.6 | 1,216.1 | 1,208.6 |
Other Revenues | ||||
Revenues [Abstract] | ||||
Other revenues | $ 10.8 | $ 16.1 | $ 35.7 | $ 62.4 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net earnings (loss) attributable to Viatris Inc. common shareholders | $ 354.3 | $ 311.5 | $ 1,067.4 | $ (1,005.3) |
Other comprehensive loss, before tax: | ||||
Foreign currency translation adjustment | (1,163) | (407.4) | (2,782.1) | (967.9) |
Change in unrecognized (loss) gain and prior service cost related to defined benefit plans | (1.2) | 0.8 | (3.3) | 74.1 |
Net unrealized loss on marketable securities | (0.8) | (0.1) | (3.5) | (0.8) |
Other comprehensive loss, before tax | (772.6) | (226.5) | (1,793) | (548.7) |
Income tax provision | 87.3 | 40.4 | 221.8 | 65.2 |
Other comprehensive loss, net of tax | (859.9) | (266.9) | (2,014.8) | (613.9) |
Comprehensive (loss) earnings | (505.6) | 44.6 | (947.4) | (1,619.2) |
Cash Flow Hedging | ||||
Other comprehensive loss, before tax: | ||||
Net unrecognized gain on derivatives in cash flow hedging relationships | 15.7 | 11.8 | 33.5 | 27.5 |
Net unrecognized gain on derivatives in net investment hedging relationships | 15.7 | 33.5 | ||
Net Investment Hedging | Mylan | ||||
Other comprehensive loss, before tax: | ||||
Net unrecognized gain on derivatives in net investment hedging relationships | $ 376.7 | $ 168.4 | $ 962.4 | $ 318.4 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 646.7 | $ 701.2 |
Accounts receivable, net | 3,333.9 | 4,266.4 |
Inventories | 3,380.4 | 3,977.7 |
Prepaid expenses and other current assets | 1,700.4 | 1,957.6 |
Assets held for sale | 1,426.4 | 0 |
Total current assets | 10,487.8 | 10,902.9 |
Property, plant and equipment, net | 3,039 | 3,188.6 |
Intangible assets, net | 23,013.3 | 26,134.2 |
Goodwill | 10,054.6 | 12,113.7 |
Deferred income tax benefit | 1,104 | 1,332.7 |
Other assets | 963.9 | 1,170.7 |
Total assets | 48,662.6 | 54,842.8 |
Current liabilities: | ||
Accounts payable | 1,310.5 | 1,657.4 |
Short-term borrowings | 500.4 | 1,493 |
Income taxes payable | 106.7 | 236.9 |
Current portion of long-term debt and other long-term obligations | 763.8 | 1,877.5 |
Liabilities held for sale | 335.3 | 0 |
Other current liabilities | 3,504.7 | 4,619.6 |
Total current liabilities | 6,521.4 | 9,884.4 |
Long-term debt | 18,724.5 | 19,717.1 |
Deferred income tax liability | 2,489.3 | 2,815 |
Other long-term obligations | 1,745.1 | 1,933.6 |
Total liabilities | 29,480.3 | 34,350.1 |
Viatris Inc. shareholders’ equity | ||
Common stock: $0.01 par value, 3,000,000,000 shares authorized; shares issued and outstanding: 1,212,653,465 and 1,209,507,463, respectively | 12.1 | 12.1 |
Additional paid-in capital | 18,616.8 | 18,536.1 |
Retained earnings | 4,312.5 | 3,688.8 |
Accumulated other comprehensive loss | (3,759.1) | (1,744.3) |
Total equity | 19,182.3 | 20,492.7 |
Total liabilities and equity | $ 48,662.6 | $ 54,842.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2021 shares |
Ordinary shares, shares authorized | 3,000,000,000 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2020 | $ 22,954.1 | $ 12.1 | $ 18,438.8 | $ 5,361.2 | $ 0 | $ (858) |
Balance (in shares) at Dec. 31, 2020 | 1,206,895,644 | |||||
Balance (in shares) at Dec. 31, 2020 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (1,005.3) | |||||
Other comprehensive loss, net of tax | (613.9) | (613.9) | ||||
Issuance of restricted stock, net of shares withheld (in shares) | 2,483,318 | |||||
Issuance of restricted stock and stock options exercised, net | 0 | 0 | ||||
Taxes related to the net share settlement of equity awards | (13.4) | (13.4) | ||||
Share-based compensation expense | 88.7 | 88.7 | ||||
Cash dividends declared | (268.9) | |||||
Balance at Sep. 30, 2021 | 21,141.3 | $ 12.1 | 18,514.1 | 4,087 | $ 0 | (1,471.9) |
Balance (in shares) at Sep. 30, 2021 | 1,209,378,962 | |||||
Balance (in shares) at Sep. 30, 2021 | 0 | |||||
Balance at Jun. 30, 2021 | 21,206.9 | $ 12.1 | 18,489.9 | 3,909.9 | $ 0 | (1,205) |
Balance (in shares) at Jun. 30, 2021 | 1,209,212,338 | |||||
Balance (in shares) at Jun. 30, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 311.5 | |||||
Other comprehensive loss, net of tax | (266.9) | (266.9) | ||||
Issuance of restricted stock, net of shares withheld (in shares) | 166,624 | |||||
Issuance of restricted stock and stock options exercised, net | 0 | 0 | ||||
Taxes related to the net share settlement of equity awards | (0.8) | (0.8) | ||||
Share-based compensation expense | 25 | 25 | ||||
Cash dividends declared | (134.4) | |||||
Balance at Sep. 30, 2021 | 21,141.3 | $ 12.1 | 18,514.1 | 4,087 | $ 0 | (1,471.9) |
Balance (in shares) at Sep. 30, 2021 | 1,209,378,962 | |||||
Balance (in shares) at Sep. 30, 2021 | 0 | |||||
Balance at Dec. 31, 2021 | 20,492.7 | $ 12.1 | 18,536.1 | 3,688.8 | $ 0 | (1,744.3) |
Balance (in shares) at Dec. 31, 2021 | 1,209,507,463 | |||||
Balance (in shares) at Dec. 31, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 1,067.4 | 1,067.4 | ||||
Other comprehensive loss, net of tax | (2,014.8) | (2,014.8) | ||||
Issuance of restricted stock, net of shares withheld (in shares) | 2,911,515 | |||||
Issuance of restricted stock and stock options exercised, net | 0 | $ 0 | 0 | |||
Taxes related to the net share settlement of equity awards | (8.6) | (8.6) | ||||
Share-based compensation expense | $ 86.8 | 86.8 | ||||
Issuance of common stock (in shares) | 234,487 | |||||
Issuance of common stock | $ 2.5 | 2.5 | ||||
Cash dividends declared | (443.7) | |||||
Balance at Sep. 30, 2022 | 19,182.3 | $ 12.1 | 18,616.8 | 4,312.5 | $ 0 | (3,759.1) |
Balance (in shares) at Sep. 30, 2022 | 1,212,653,465 | |||||
Balance (in shares) at Sep. 30, 2022 | 0 | |||||
Balance at Jun. 30, 2022 | 19,805.4 | $ 12.1 | 18,585.7 | 4,106.8 | $ 0 | (2,899.2) |
Balance (in shares) at Jun. 30, 2022 | 1,212,447,457 | |||||
Balance (in shares) at Jun. 30, 2022 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 354.3 | 354.3 | ||||
Other comprehensive loss, net of tax | (859.9) | (859.9) | ||||
Issuance of restricted stock, net of shares withheld (in shares) | 31,203 | |||||
Issuance of restricted stock and stock options exercised, net | 0 | $ 0 | 0 | |||
Taxes related to the net share settlement of equity awards | (0.2) | (0.2) | ||||
Share-based compensation expense | $ 29.1 | 29.1 | ||||
Issuance of common stock (in shares) | 174,805 | |||||
Issuance of common stock | $ 1.8 | |||||
Cash dividends declared | (148.6) | |||||
Balance at Sep. 30, 2022 | $ 19,182.3 | $ 12.1 | $ 18,616.8 | $ 4,312.5 | $ 0 | $ (3,759.1) |
Balance (in shares) at Sep. 30, 2022 | 1,212,653,465 | |||||
Balance (in shares) at Sep. 30, 2022 | 0 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.36 | $ 0.22 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net earnings (loss) attributable to Viatris Inc. common shareholders | $ 1,067.4 | $ (1,005.3) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 2,157.8 | 3,756.7 |
Share-based compensation expense | 86.8 | 88.7 |
Deferred income tax (benefit) expense | (179.5) | 728.6 |
Loss from equity method investments | 0 | 52.2 |
Other non-cash items | 193 | 288.2 |
Litigation settlements and other contingencies, net | 5.9 | 50 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 98.9 | 69.1 |
Inventories | (439.6) | (351.1) |
Accounts payable | (75.4) | (108.4) |
Income taxes | 29.5 | (675.3) |
Other operating assets and liabilities, net | (134.8) | (399.6) |
Net cash provided by operating activities | 2,810 | 2,493.8 |
Cash flows from investing activities: | ||
Cash flows from investing activities: | 0 | 277 |
Capital expenditures | (252.3) | (259.8) |
Purchase of marketable securities | (23.3) | (26.3) |
Proceeds from the sale of marketable securities | 23 | 26 |
Payments for product rights and other, net | (24.8) | (28.2) |
Proceeds from sale of assets and subsidiaries | 0 | 96.5 |
Proceeds from sale of property, plant and equipment | 13.4 | 16.1 |
Net cash (used in) provided by investing activities | (264) | 101.3 |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 1,875.5 | 1,710.1 |
Payments of long-term debt | (2,961.9) | (4,200.7) |
Change in short-term borrowings, net | (992.8) | 606.1 |
Taxes paid related to net share settlement of equity awards | (13.4) | (17.1) |
Non-contingent payments for product rights | 0 | 456 |
Contingent consideration payments | (18.9) | (28.6) |
Payments of financing fees | (1.6) | (6.5) |
Cash dividends paid | (436.1) | (266) |
Issuance of common stock | 2.5 | 0 |
Other items, net | (0.6) | (4.1) |
Net cash used in financing activities | (2,547.3) | (2,662.8) |
Effect on cash of changes in exchange rates | (54.5) | (20.6) |
Net decrease in cash, cash equivalents and restricted cash | (55.8) | (88.3) |
Cash, cash equivalents and restricted cash — beginning of period | 706.2 | 850 |
Cash, cash equivalents and restricted cash — end of period | $ 650.4 | $ 761.7 |
Collaboration and Licensing Agr
Collaboration and Licensing Agreements | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaboration and Licensing Agreements | Licensing and Other Partner Agreements We periodically enter into licensing and other partner agreements with other pharmaceutical companies for the development, manufacture, marketing and/or sale of pharmaceutical products. Our significant licensing and other partner agreements are primarily focused on the development, manufacturing, supply and commercialization of multiple, high-value generic biologic compounds, insulin analog products and respiratory products, among other complex products. Under these agreements, we have future potential milestone payments and co-development expenses payable to third parties as part of our licensing, development and co-development programs. Payments under these agreements generally become due and are payable upon the satisfaction or achievement of certain developmental, regulatory or commercial milestones or as development expenses are incurred on defined projects. Milestone payment obligations are uncertain, including the prediction of timing and the occurrence of events triggering a future obligation and are not reflected as liabilities in the condensed consolidated balance sheets, except for obligations reflected as acquisition related contingent consideration. Refer to Note 10 Financial Instruments and Risk Management for further discussion of contingent consideration. Our potential maximum development milestones not accrued for at September 30, 2022 totaled approximately $338 million . We estimate that the amounts that may be paid through the end of 2022 to be approximately $10 million. These agreements may also include potential sales-based milestones and call for us to pay a percentage of amounts earned from the sale of the product as a royalty or a profit share. The amounts disclosed do not include sales-based milestones or royalty or profit share obligations on future sales of product as the timing and amount of future sales levels and costs to produce products subject to these obligations is not reasonably estimable. These sales-based milestones or royalty or profit share obligations may be significant depending upon the level of commercial sales for each product. There have been no significant changes to our licensing and other partner agreements as disclosed in Note 18 of our 2021 Form 10-K. |
General
General | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The accompanying unaudited condensed consolidated financial statements (“interim financial statements”) of Viatris Inc. and subsidiaries were prepared in accordance with U.S. GAAP and the rules and regulations of the SEC for reporting on Form 10-Q; therefore, as permitted under these rules, certain footnotes and other financial information included in audited financial statements were condensed or omitted. The interim financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the interim results of operations, comprehensive earnings, financial position, equity and cash flows for the periods presented. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto in Viatris’ 2021 Form 10-K. The December 31, 2021 condensed consolidated balance sheet was derived from audited financial statements. Turkey Highly Inflationary - Under ASC 830, Foreign Currency Matters (“ASC 830”), a highly inflationary economy is one that has cumulative inflation of approximately 100% or more over a three-year period. Effective April 1, 2022, we classified Turkey as highly inflationary. In accordance with ASC 830, starting with the second quarter of 2022, we began to utilize the U.S. dollar as our functional currency in Turkey, which historically utilized the Turkish lira as the functional currency. Application of the guidance in ASC 830 did not have a material impact on our condensed consolidated financial statements for the three and nine months ended September 30, 2022. The impacted net sales for the three and nine months ended September 30, 2022 and total assets at September 30, 2022 represented less than 1% of our consolidated net sales and total assets, respectively. The interim results of operations and comprehensive earnings for the three and nine months ended September 30, 2022, and cash flows for the nine months ended September 30, 2022, are not necessarily indicative of the results to be expected for the full fiscal year or any other future period. |
Revenue Recognition and Account
Revenue Recognition and Accounts Receivable | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Accounts Receivable | Revenue Recognition and Accounts Receivable The Company recognizes revenues in accordance with ASC 606, Revenue from Contracts with Customers . Under ASC 606, the Company recognizes net revenue for product sales when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are recorded net of provisions for variable consideration, including discounts, rebates, governmental rebate programs, price adjustments, returns, chargebacks, promotional programs and other sales allowances. Accruals for these provisions are presented in the condensed consolidated financial statements as reductions in determining net sales and as a contra asset in accounts receivable, net (if settled via credit) and other current liabilities (if paid in cash). Our net sales may be impacted by wholesaler and distributor inventory levels of our products, which can fluctuate throughout the year due to the seasonality of certain products, pricing, the timing of product demand, purchasing decisions and other factors. Such fluctuations may impact the comparability of our net sales between periods. Consideration received from licenses of intellectual property is recorded as other revenues. Royalty or profit share amounts, which are based on sales of licensed products or technology, are recorded when the customer’s subsequent sales or usages occur. Such consideration is included in other revenues in the condensed consolidated statements of operations. The following table presents the Company’s net sales by product category for each of our reportable segments for the three and nine months ended September 30, 2022 and 2021, respectively: (In millions) Three Months Ended September 30, 2022 Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands $ 1,327.7 $ 571.9 $ 211.6 $ 429.1 $ 2,540.3 Complex Gx and Biosimilars 295.0 0.2 10.9 14.1 320.2 Generics 808.8 1.9 160.5 235.7 1,206.9 Total $ 2,431.5 $ 574.0 $ 383.0 $ 678.9 $ 4,067.4 (In millions) Nine Months Ended September 30, 2022 Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands $ 3,931.8 $ 1,687.9 $ 703.7 $ 1,254.1 $ 7,577.5 Complex Gx and Biosimilars 986.1 0.5 33.3 45.9 1,065.8 Generics 2,468.8 7.0 496.9 735.0 3,707.7 Total $ 7,386.7 $ 1,695.4 $ 1,233.9 $ 2,035.0 $ 12,351.0 (In millions) Three Months Ended September 30, 2021 Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands $ 1,522.7 $ 566.8 $ 299.1 $ 414.5 $ 2,803.1 Complex Gx and Biosimilars 305.1 — 13.2 13.7 332.0 Generics 828.1 — 193.0 364.3 1,385.4 Total $ 2,655.9 $ 566.8 $ 505.3 $ 792.5 $ 4,520.5 (In millions) Nine Months Ended September 30, 2021 Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands $ 4,350.5 $ 1,706.9 $ 878.5 $ 1,293.5 $ 8,229.4 Complex Gx and Biosimilars 926.4 — 31.9 35.4 993.7 Generics 2,591.0 2.1 577.8 1,088.3 4,259.2 Total $ 7,867.9 $ 1,709.0 $ 1,488.2 $ 2,417.2 $ 13,482.3 ____________ (a) Amounts for the three and nine months ended September 30, 2022 include the unfavorable impact of foreign currency translations compared to the prior year period. The following table presents net sales on a consolidated basis for select key products for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, Nine months ended September 30, (In millions) 2022 2021 2022 2021 Select Key Global Products Lipitor ® $ 420.4 $ 410.0 $ 1,266.1 $ 1,272.9 Norvasc ® 189.3 198.4 600.1 635.9 Lyrica ® 156.5 175.6 483.9 555.9 Viagra ® 117.0 138.0 361.9 412.4 EpiPen® Auto-Injectors 114.4 129.5 309.7 337.3 Celebrex ® 82.2 86.0 253.4 257.3 Creon ® 76.4 81.1 226.5 231.7 Effexor ® 64.2 79.5 215.4 239.6 Zoloft ® 53.1 61.3 188.7 208.8 Xalabrands 51.0 55.8 146.7 172.0 Select Key Segment Products Influvac ® $ 159.3 $ 161.2 $ 178.3 $ 165.3 Yupelri ® 53.4 39.4 146.1 118.1 Amitiza ® 39.4 49.5 125.3 147.5 Dymista ® 38.6 35.0 138.0 129.9 Xanax ® 38.3 47.6 115.5 141.5 ____________ (a) The Company does not disclose net sales for any products considered competitively sensitive. (b) Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches. (c) Amounts for the three and nine months ended September 30, 2022 include the unfavorable impact of foreign currency translations compared to the prior year period. Variable Consideration and Accounts Receivable The following table presents a reconciliation of gross sales to net sales by each significant category of variable consideration during the three and nine months ended September 30, 2022 and 2021, respectively: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2022 2021 2022 2021 Gross sales $ 6,862.9 $ 7,739.5 $ 21,069.9 $ 23,058.8 Gross to net adjustments: Chargebacks (1,553.1) (1,439.3) (4,731.5) (4,112.1) Rebates, promotional programs and other sales allowances (1,021.8) (1,521.6) (3,303.0) (4,656.7) Returns (73.4) (87.9) (238.7) (289.2) Governmental rebate programs (147.2) (170.2) (445.7) (518.5) Total gross to net adjustments $ (2,795.5) $ (3,219.0) $ (8,718.9) $ (9,576.5) Net sales $ 4,067.4 $ 4,520.5 $ 12,351.0 $ 13,482.3 No significant revisions were made to the methodology used in determining these provisions or the nature of the provisions during the three and nine months ended September 30, 2022. Such allowances were comprised of the following at September 30, 2022 and December 31, 2021, respectively: (In millions) September 30, December 31, Accounts receivable, net $ 1,788.4 $ 1,688.6 Other current liabilities 837.2 1,362.1 Total $ 2,625.6 $ 3,050.7 Accounts receivable, net was comprised of the following at September 30, 2022 and December 31, 2021, respectively: (In millions) September 30, December 31, Trade receivables, net $ 2,829.8 $ 3,774.4 Other receivables 504.1 492.0 Accounts receivable, net $ 3,333.9 $ 4,266.4 Accounts Receivable Factoring Arrangements We have entered into accounts receivable factoring agreements with financial institutions to sell certain of our non-U.S. accounts receivable. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. Our factoring agreements do not allow for recourse in the event of uncollectibility, and we do not retain any interest in the underlying accounts receivable once sold. We derecognized $42.1 million and $29.6 million of accounts receivable as of September 30, 2022 and December 31, 2021, respectively, under these factoring arrangements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standard In November 2021, the FASB issued Accounting Standards Update 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance (“ASU 2021-10”), which requires entities to provide annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. We adopted the ASU prospectively on January 1, 2022. The additional annual disclosures required are not expected to have a material impact on our consolidated financial statements. Accounting Standards Issued Not Yet Adopted In September 2022, the FASB issued Accounting Standards Update 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50), which requires entities to provide qualitative and quantitative disclosures about their supplier finance programs, including a rollforward of related obligations. The ASU will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the rollforward requirement, which becomes effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently assessing the impact of the adoption of this guidance on its condensed consolidated financial statements and disclosures. There were no other significant changes in new accounting standards from those disclosed in Viatris’ 2021 Form 10-K. Refer to Viatris’ 2021 Form 10-K for additional information. |
Share-Based Incentive Plan
Share-Based Incentive Plan | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Incentive Plan | Share-Based Incentive Plan Prior to the Distribution, Viatris adopted and Pfizer, in the capacity as Viatris’ sole stockholder at such time, approved the Plan which became effective as of the Distribution. In connection with the Combination, as of November 16, 2020, the Company assumed the 2003 LTIP, which had previously been approved by Mylan shareholders. The Plan and 2003 LTIP include (i) 72,500,000 shares of common stock authorized for grant pursuant to the Plan, which may include dividend payments payable in common stock on unvested shares granted under awards, (ii) 6,757,640 shares of common stock to be issued pursuant to the exercise of outstanding stock options granted to participants under the 2003 LTIP and assumed by Viatris in connection with the Combination and (iii) 13,535,627 shares of common stock subject to outstanding equity-based awards, other than stock options, assumed by Viatris in connection with the Combination, or that otherwise remain available for issuance under the 2003 LTIP. Under the Plan and 2003 LTIP, shares are reserved for issuance to key employees, consultants, independent contractors and non-employee directors of the Company through a variety of incentive awards, including: stock options, SARs, restricted stock and units, PSUs, other stock-based awards and short-term cash awards. Stock option awards are granted with an exercise price equal to the fair market value of the shares underlying the stock options at the date of the grant, generally become exercisable over periods ranging from three The following table summarizes stock awards (stock options and SARs) activity under the Plan and 2003 LTIP: Number of Shares Under Stock Awards Weighted Average Exercise Price per Share Outstanding at December 31, 2021 5,576,490 $ 37.19 Forfeited (987,134) 31.37 Outstanding at September 30, 2022 4,589,356 $ 38.44 Vested and expected to vest at September 30, 2022 4,547,686 $ 38.62 Exercisable at September 30, 2022 4,340,604 $ 39.57 As of September 30, 2022, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had average remaining contractual terms of 4.3 years, 4.3 years and 4.1 years, respectively. Also, as of September 30, 2022, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had no aggregate intrinsic value. A summary of the status of the Company’s nonvested restricted stock awards (restricted stock and restricted stock unit awards, including PSUs) as of September 30, 2022 and the changes during the nine months ended September 30, 2022 are presented below: Number of Restricted Stock Awards Weighted Average Grant-Date Fair Value Per Share Nonvested at December 31, 2021 16,858,128 $ 15.12 Granted 16,868,245 10.20 Released (3,607,011) 17.90 Forfeited (1,045,664) 12.64 Nonvested at September 30, 2022 29,073,698 $ 11.99 As of September 30, 2022, the Company had $206.7 million of total unrecognized compensation expense, net of estimated forfeitures, related to all of its stock-based awards, which we expect to recognize over the remaining weighted average vesting period of 1.6 years. The total intrinsic value of restricted stock awards released during the nine months ended September 30, 2022 and 2021 was $39.6 million and $75.6 million, respectively. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | Pensions and Other Postretirement Benefits Defined Benefit Plans The Company sponsors various defined benefit pension plans in several countries. Benefits provided generally depend on length of service, pay grade and remuneration levels. Employees in the U.S., Puerto Rico and certain international locations are also provided retirement benefits through defined contribution plans. The Company also sponsors other postretirement benefit plans including plans that provide for postretirement supplemental medical coverage. Benefits from these plans are provided to employees and their spouses and dependents who meet various minimum age and service requirements. In addition, the Company sponsors other plans that provide for life insurance benefits and postretirement medical coverage for certain officers and management employees. Net Periodic Benefit Cost Components of net periodic benefit cost for the three and nine months ended September 30, 2022 and 2021 were as follows: Pension and Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2022 2021 2022 2021 Service cost $ 9.5 $ 10.8 $ 28.5 $ 32.5 Interest cost 10.3 8.5 31.1 25.7 Expected return on plan assets (16.5) (16.6) (49.7) (49.8) Amortization of prior service costs 0.1 (0.1) 0.2 (0.4) Recognized net actuarial losses — 0.4 0.1 1.2 Settlement gain — — — (3.1) Net periodic benefit cost $ 3.4 $ 3.0 $ 10.2 $ 6.1 During the nine months ended September 30, 2021, the Company recognized a settlement gain as a result of cash payments from lump sum elections related to the U.S. and Puerto Rico pension plans. The Company is making the minimum mandatory contributions to its defined benefit pension plans in the U.S. and Puerto Rico for the 2022 plan year. The Company expects to make total benefit payments of approximately $118.0 million from pension and other postretirement benefit plans in 2022. The Company anticipates making contributions to pension and other postretirement benefit plans of approximately $52.0 million in 2022. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2022 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Selected balance sheet components consist of the following: Cash and restricted cash (In millions) September 30, December 31, September 30, 2021 Cash and cash equivalents $ 646.7 $ 701.2 $ 756.6 Restricted cash, included in prepaid expenses and other current assets 3.7 5.0 5.1 Cash, cash equivalents and restricted cash $ 650.4 $ 706.2 $ 761.7 Inventories (In millions) September 30, December 31, Raw materials $ 781.8 $ 922.4 Work in process 824.6 993.3 Finished goods 1,774.0 2,062.0 Inventories $ 3,380.4 $ 3,977.7 Prepaid expenses and other current assets (In millions) September 30, December 31, 2021 Prepaid expenses $ 237.1 $ 256.7 Available-for-sale fixed income securities 34.5 38.2 Fair value of financial instruments 256.8 144.6 Equity securities 39.8 51.0 Other current assets 1,132.2 1,467.1 Prepaid expenses and other current assets $ 1,700.4 $ 1,957.6 Prepaid expenses consist primarily of prepaid rent, insurance and other individually insignificant items. Property, plant and equipment, net (In millions) September 30, December 31, 2021 Machinery and equipment $ 2,840.9 $ 3,054.0 Buildings and improvements 1,500.5 1,808.5 Construction in progress 545.2 588.7 Land and improvements 132.0 137.9 Gross property, plant and equipment 5,018.6 5,589.1 Accumulated depreciation 1,979.6 2,400.5 Property, plant and equipment, net $ 3,039.0 $ 3,188.6 Other assets (In millions) September 30, December 31, 2021 Operating lease right-of-use assets $ 264.2 $ 290.8 Other long-term assets 699.7 879.9 Other assets $ 963.9 $ 1,170.7 Accounts payable (In millions) September 30, December 31, 2021 Trade accounts payable $ 791.2 $ 1,056.1 Other payables 519.3 601.3 Accounts payable $ 1,310.5 $ 1,657.4 Other current liabilities (In millions) September 30, December 31, 2021 Accrued sales allowances $ 837.2 $ 1,362.1 Legal and professional accruals, including litigation accruals 397.4 715.6 Payroll and employee benefit liabilities 631.9 741.9 Contingent consideration 70.7 66.7 Accrued restructuring 109.1 233.5 Accrued interest 210.2 86.6 Equity method investments, clean energy investments 4.3 10.9 Fair value of financial instruments 157.3 61.0 Operating lease liability 85.2 86.7 Other 1,001.4 1,254.6 Other current liabilities $ 3,504.7 $ 4,619.6 Other long-term obligations (In millions) September 30, December 31, 2021 Employee benefit liabilities $ 805.8 $ 876.4 Contingent consideration 92.6 133.0 Tax related items, including contingencies 396.1 426.1 Operating lease liability 179.3 200.9 Accrued restructuring 51.0 64.3 Other 220.3 232.9 Other long-term obligations $ 1,745.1 $ 1,933.6 |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The law that provides for IRC Section 45 tax credits expired during the year ended December 31, 2021 for all three clean energy investments and all of the clean energy investments have wound down operations. Summarized financial information, in the aggregate, for the Company’s three equity method, clean energy investments on a 100% basis for the three and nine months ended September 30, 2021 are as follows: Three Months Ended Nine Months Ended (In millions) September 30, 2021 September 30, 2021 Total revenues $ 94.0 $ 293.5 Gross loss (1.3) (3.9) Operating and non-operating expense 4.8 13.7 Net loss $ (6.1) $ (17.6) The Company’s net losses from its equity method investments included amortization expense related to the excess of the cost basis of the Company’s investment over the underlying assets of each individual investee. For the three and nine months ended September 30, 2021, the Company recognized net losses from equity method investments of $17.6 million and $52.2 million, respectively, which were recognized as a component of other (income) expense, net in the condensed consolidated statements of operations. The Company recognized the income tax credits and benefits from the clean energy investments as part of its provision for income taxes. |
Earnings (Loss) per Ordinary Sh
Earnings (Loss) per Ordinary Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Ordinary Share | Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing net earnings (loss) by the weighted average number of shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net earnings (loss) by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities or instruments, if the impact is dilutive. Basic and diluted earnings (loss) per share attributable to Viatris Inc. are calculated as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions, except per share amounts) 2022 2021 2022 2021 Basic earnings (loss) attributable to Viatris Inc. common shareholders Net earnings (loss) attributable to Viatris Inc. common shareholders $ 354.3 $ 311.5 $ 1,067.4 $ (1,005.3) Shares (denominator): Weighted average shares outstanding 1,212.5 1,209.3 1,211.8 1,208.6 Basic earnings (loss) per share attributable to Viatris Inc. shareholders $ 0.29 $ 0.26 $ 0.88 $ (0.83) Diluted earnings (loss) attributable to Viatris Inc. common shareholders Net earnings (loss) attributable to Viatris Inc. common shareholders $ 354.3 $ 311.5 $ 1,067.4 $ (1,005.3) Shares (denominator): Weighted average shares outstanding 1,212.5 1,209.3 1,211.8 1,208.6 Share-based awards 5.6 3.3 4.3 — Total dilutive shares outstanding 1,218.1 1,212.6 1,216.1 1,208.6 Diluted earnings (loss) per share attributable to Viatris Inc. shareholders $ 0.29 $ 0.26 $ 0.88 $ (0.83) Additional stock awards and restricted stock awards were outstanding during the three and nine months ended September 30, 2022 and 2021, but were not included in the computation of diluted earnings per share for each respective period because the effect would be anti-dilutive. Excluded shares at September 30, 2022 include certain share-based compensation awards whose performance conditions had not been fully met. Such excluded shares and anti-dilutive awards represented 14.7 million shares and 13.3 million shares for the three and nine months ended September 30, 2022, respectively, and 11.4 million shares and 10.8 million shares for the three and nine months ended September 30, 2021, respectively. The Company paid quarterly dividends of $0.12 per share on the Company’s issued and outstanding common stock on March 16, 2022, June 16, 2022 and September 16, 2022. On November 3, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share on the Company’s issued and outstanding common stock, which will be payable on December 16, 2022 to shareholders of record as of the close of business on November 23, 2022. The declaration and payment of future dividends to holders of the Company’s common stock will be at the discretion of the Board of Directors, and will depend upon factors, including but not limited to, the Company’s financial condition, earnings, capital requirements of its businesses, legal requirements, regulatory constraints, industry practice, and other factors that the Board of Directors deems relevant. On May 6, 2022, the Company announced that its Board of Directors had authorized a DRIP. The DRIP allows shareholders to automatically reinvest all or a portion of the cash dividends paid on their shares of the Company’s common stock and to make certain additional optional cash investments in the Company’s common stock. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill for the nine months ended September 30, 2022 are as follows: (In millions) Developed Markets Greater China JANZ Emerging Markets Total Balance at December 31, 2021: Goodwill $ 9,108.4 $ 969.5 $ 776.3 $ 1,644.5 $ 12,498.7 Accumulated impairment losses (385.0) — — — (385.0) 8,723.4 969.5 776.3 1,644.5 12,113.7 Reclassification to assets held for sale (1) (727.3) (2.7) (31.1) (150.7) (911.8) Foreign currency translation (956.0) (31.2) (94.5) (65.6) (1,147.3) $ 7,040.1 $ 935.6 $ 650.7 $ 1,428.2 $ 10,054.6 Balance at September 30, 2022: Goodwill $ 7,425.1 $ 935.6 $ 650.7 $ 1,428.2 $ 10,439.6 Accumulated impairment losses (385.0) — — — (385.0) $ 7,040.1 $ 935.6 $ 650.7 $ 1,428.2 $ 10,054.6 ____________ (1) Primarily reflects goodwill relating to the biosimilars portfolio. The Company reviews goodwill for impairment annually on April 1st or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. As a result of the Biocon Biologics Transaction (refer to Note 6 Balance Sheet Components for additional information) and the decline in the Company’s share price during the first quarter of 2022, the Company performed an interim goodwill impairment test as of March 31, 2022. The Company performed the annual goodwill impairment test as of April 1, 2022. There were no significant changes from the interim goodwill test performed at March 31, 2022 and the results were consistent with the interim goodwill impairment test. The Company performed both its interim and annual goodwill impairment tests on a quantitative basis for its five reporting units, North America, Europe, Emerging Markets, JANZ, and Greater China. In estimating each reporting unit’s fair value, the Company performed an extensive valuation analysis, utilizing both income and market-based approaches. The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions that affect the reporting unit’s expected future cash flows. These estimates and assumptions, utilizing Level 3 inputs, primarily include, but are not limited to, market multiples, control premiums, the discount rate, terminal growth rates, operating income before depreciation and amortization, and capital expenditures forecasts. As of March 31, 2022 and April 1, 2022, the allocation of the Company’s total goodwill (prior to the reclassification of goodwill to assets held for sale) was as follows: North America $3.61 billion, Europe $4.95 billion, Emerging Markets $1.64 billion, JANZ $0.78 billion and Greater China $0.97 billion. As of March 31, 2022 and April 1, 2022, the Company determined that the fair value of the North America and Greater China reporting units was substantially in excess of the respective unit’s carrying value. For the Europe reporting unit, the estimated fair value exceeded its carrying value by approximately $797 million or 5.3% for both the interim and annual goodwill impairment tests. As it relates to the income approach for the Europe reporting unit at March 31, 2022 and April 1, 2022, the Company forecasted cash flows for the next 10 years. During the forecast period, the revenue compound annual growth rate was approximately 0.5%. A terminal year value was calculated with a negative 1.0% revenue growth rate applied. The discount rate utilized was 9.5% and the estimated tax rate was 15.3%. Under the market-based approach, we utilized an estimated range of market multiples of 7.5 to 8.0 times EBITDA plus a control premium of 15.0%. If all other assumptions are held constant, a reduction in the terminal value growth rate by 3.0% or an increase in discount rate by 1.5% would result in an impairment charge for the Europe reporting unit. For the JANZ reporting unit, the estimated fair value exceeded its carrying value by approximately $231 million or 7.4% for both the interim and annual goodwill impairment tests. As it relates to the income approach for the JANZ reporting unit at March 31, 2022 and April 1, 2022, the Company forecasted cash flows for the next 10 years. During the forecast period, the revenue compound annual growth rate was approximately negative 4.8%. A terminal year value was calculated assuming no revenue growth. The discount rate utilized was 6.0% and the estimated tax rate was 30.4%. Under the market-based approach, we utilized an estimated market multiple of 6.0 times EBITDA plus a control premium of 15.0%. If all other assumptions are held constant, a reduction in the terminal value growth rate by 3.5% or an increase in discount rate by 2.0% would result in an impairment charge for the JANZ reporting unit. For the Emerging Markets reporting unit, the estimated fair value exceeded its carrying value by approximately $816 million or 10.3% for both the interim and annual goodwill impairment tests. As it relates to the income approach for the Emerging Markets reporting unit at March 31, 2022 and April 1, 2022, the Company forecasted cash flows for the next 10 years. During the forecast period, the revenue compound annual growth rate was approximately 1.6%. A terminal year value was calculated with a 0.8% revenue growth rate applied. The discount rate utilized was 10.5% and the estimated tax rate was 18.4%. Under the market-based approach, we utilized an estimated market multiple of 7.5 times EBITDA plus a control premium of 15.0%. If all other assumptions are held constant, a reduction in the terminal value growth rate by approximately 8.5% or an increase in discount rate by 3.0% would result in an impairment charge for the Emerging Markets reporting unit. Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions, especially as they relate to the key assumptions detailed, could have a significant impact on the fair value of the reporting units. Subsequent to the completion of the interim goodwill impairment test, the Company allocated goodwill to its biosimilars portfolio, which totals $901.8 million as of September 30, 2022, using a relative fair value approach and then reclassified the amount to assets held for sale in conjunction with the Biocon Biologics Transaction. Intangible Assets, Net Intangible assets consist of the following components at September 30, 2022 and December 31, 2021: (In millions) Weighted Average Life (Years) Original Cost Accumulated Amortization Net Book Value September 30, 2022 Product rights, licenses and other (1) 15 $ 36,450.6 $ 13,479.8 $ 22,970.8 In-process research and development 42.5 — 42.5 $ 36,493.1 $ 13,479.8 $ 23,013.3 December 31, 2021 Product rights, licenses and other (1) 15 $ 39,006.2 $ 12,918.5 $ 26,087.7 In-process research and development 46.5 — 46.5 $ 39,052.7 $ 12,918.5 $ 26,134.2 ____________ (1) Represents amortizable intangible assets. Other intangible assets consists principally of customer lists and contractual rights. Amortization expense, which is classified primarily within cost of sales in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 totaled: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2022 2021 2022 2021 Intangible asset amortization expense $ 615.9 $ 671.5 $ 1,898.1 $ 2,037.5 Intangible asset impairment charges — — — 83.4 Total intangible asset amortization expense (including impairment charges) $ 615.9 $ 671.5 $ 1,898.1 $ 2,120.9 On April 30, 2021, the Company completed an agreement to divest a group of OTC products in the U.S. As a result of this transaction, the Company recognized an intangible asset impairment charge of approximately $83.4 million during the nine months ended September 30, 2021. Intangible asset amortization expense over the remainder of 2022 and for the years ending December 31, 2023 through 2026 is estimated to be as follows: (In millions) 2022 $ 609 2023 2,280 2024 2,190 2025 2,097 2026 2,049 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management The Company is exposed to certain financial risks relating to its ongoing business operations. The primary financial risks that are managed by using derivative instruments are foreign currency risk and interest rate risk. Foreign Currency Risk Management In order to manage certain foreign currency risks, the Company enters into foreign exchange forward contracts to mitigate risk associated with changes in spot exchange rates of mainly non-functional currency denominated assets or liabilities. The foreign exchange forward contracts are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. Any gains or losses on the foreign exchange forward contracts are recognized in earnings in the period incurred in the condensed consolidated statements of operations. The Company has also entered into forward contracts to hedge forecasted foreign currency denominated sales from certain international subsidiaries and a portion of forecasted intercompany inventory sales denominated in Euro, Japanese Yen, Chinese Renminbi and Indian Rupee for up to eighteen months. These contracts are designated as cash flow hedges to manage foreign currency transaction risk and are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. Any changes in the fair value of designated cash flow hedges are deferred in AOCE and are reclassified into earnings when the hedged item impacts earnings. Net Investment Hedges The Company may hedge the foreign currency risk associated with certain net investment positions in foreign subsidiaries by either borrowing directly in foreign currencies and designating all or a portion of the foreign currency debt as a hedge of the applicable net investment position or entering into foreign currency swaps that are designated as hedges of net investments. The Company has designated certain Euro and Yen borrowings as a hedge of its investment in certain Euro-functional and Yen-functional currency subsidiaries in order to manage foreign currency translation risk. Borrowings designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of AOCE until the sale or substantial liquidation of the underlying net investments. In addition, the Company manages the related foreign exchange risk of the Euro and Yen borrowings not designated as net investment hedges through certain Euro and Yen denominated financial assets and forward currency swaps. The following table summarizes the principal amounts of the Company’s outstanding Euro and Yen borrowings and the notional amounts of the Euro and Yen borrowings designated as net investment hedges: Notional Amount Designated as a Net Investment Hedge (In millions) Principal Amount September 30, December 31, 2.250% Euro Senior Notes due 2024 € 1,000.0 € 1,000.0 € 1,000.0 3.125% Euro Senior Notes due 2028 750.0 750.0 750.0 2.125% Euro Senior Notes due 2025 500.0 500.0 500.0 0.816% Euro Senior Notes due 2022 (1) 750.0 — 750.0 1.023% Euro Senior Notes due 2024 750.0 750.0 750.0 1.362% Euro Senior Notes due 2027 850.0 850.0 850.0 1.908% Euro Senior Notes due 2032 1,250.0 1,250.0 1,250.0 Total € 5,850.0 € 5,100.0 € 5,850.0 Yen YEN Term Loan ¥ 40,000.0 ¥ 40,000.0 ¥ 40,000.0 Yen Total ¥ 40,000.0 ¥ 40,000.0 ¥ 40,000.0 ____________ (1) The Senior Notes were repaid at maturity during the second quarter of 2022. At September 30, 2022, the principal amount of the Company’s outstanding Yen borrowings and the notional amount of the Yen borrowings designated as net investment hedge was $276.4 million. Interest Rate Risk Management The Company enters into interest rate swaps from time to time in order to manage interest rate risk associated with the Company’s fixed-rate and floating-rate debt. Interest rate swaps that meet specific accounting criteria are accounted for as fair value or cash flow hedges. All derivative instruments used to manage interest rate risk are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. For fair value hedges, the changes in the fair value of both the hedging instrument and the underlying debt obligations are included in interest expense. For cash flow hedges, the change in fair value of the hedging instrument is deferred through AOCE and is reclassified into earnings when the hedged item impacts earnings. Credit Risk Management The Company regularly reviews the creditworthiness of its financial counterparties and does not expect to incur a significant loss from the failure of any counterparties to perform under any agreements. The Company is not subject to any obligations to post collateral under derivative instrument contracts. Certain derivative instrument contracts entered into by the Company are governed by master agreements, which contain credit-risk-related contingent features that would allow the counterparties to terminate the contracts early and request immediate payment should the Company trigger an event of default on other specified borrowings. The Company records all derivative instruments on a gross basis in the condensed consolidated balance sheets. Accordingly, there are no offsetting amounts that net assets against liabilities. The following table summarizes the classification and fair values of derivative instruments in our condensed consolidated balance sheets: Asset Derivatives Liability Derivatives (In millions) Balance Sheet Location September 30, 2022 Fair Value December 31, 2021 Fair Value Balance Sheet Location September 30, 2022 Fair Value December 31, 2021 Fair Value Derivatives designated as hedges: Foreign currency forward contracts Prepaid expenses & other current assets $ 99.9 $ 62.0 Other current liabilities $ 18.4 $ 4.3 Total derivatives designated as hedges 99.9 62.0 18.4 4.3 Derivatives not designated as hedges: Foreign currency forward contracts Prepaid expenses & other current assets 156.9 82.6 Other current liabilities 138.9 56.7 Total derivatives not designated as hedges 156.9 82.6 138.9 56.7 Total derivatives $ 256.8 $ 144.6 $ 157.3 $ 61.0 The following table summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: Amount of Gains/(Losses) Recognized in Earnings Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives Amount of Gains/(Losses) Reclassified from AOCE into Earnings Three months ended September 30, Three months ended September 30, Three months ended September 30, (In millions) Location of Gain/(Loss) 2022 2021 2022 2021 2022 2021 Derivative Financial Instruments in Cash Flow Hedging Relationships (1) : Foreign currency forward contracts Net sales (2) $ — $ — $ 35.3 $ 15.5 $ 32.2 $ 10.2 Interest rate swaps Interest expense (2) — — (0.9) (0.8) (1.2) (1.1) Non-derivative Financial Instruments in Net Investment Hedging Relationships: Foreign currency borrowings — — 292.9 130.4 — — Derivative Financial Instruments Not Designated as Hedging Instruments: Foreign currency option and forward contracts Other (income) expense, net (3) (82.7) 37.6 — — — — Total $ (82.7) $ 37.6 $ 327.3 $ 145.1 $ 31.0 $ 9.1 Amount of Gains/(Losses) Recognized in Earnings Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives Amount of Gains/(Losses) Reclassified from AOCE into Earnings Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, (In millions) Location of Gain/(Loss) 2022 2021 2022 2021 2022 2021 Derivative Financial Instruments in Cash Flow Hedging Relationships (1) : Foreign currency forward contracts Net sales (2) $ — $ — $ 78.1 $ 32.4 $ 74.5 $ 19.9 Interest rate swaps Interest expense (2) — — (2.6) (2.5) (3.4) (3.2) Non-derivative Financial Instruments in Net Investment Hedging Relationships: Foreign currency borrowings — — 747.8 329.4 — — Derivative Financial Instruments Not Designated as Hedging Instruments: Foreign currency option and forward contracts Other (income) expense, net (3) (7.9) 58.3 — — — — Total $ (7.9) $ 58.3 $ 823.3 $ 359.3 $ 71.1 $ 16.7 ____________ (1) At September 30, 2022, the Company expects that approximately $53.0 million of pre-tax net gains on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months. (2) Represents the location of the gain/(loss) reclassified from AOCE into earnings. (3) Represents the location of the gain/(loss) recognized in earnings on derivatives. Fair Value Measurement Fair value is based on the price that would be received from the sale of an identical asset or paid to transfer an identical liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy has been established that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: • Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. • Level 2: Observable market-based inputs other than quoted prices in active markets for identical assets or liabilities. • Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considers counterparty credit risk in its assessment of fair value. Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above: September 30, 2022 December 31, 2021 (In millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Recurring fair value measurements Financial Assets Cash equivalents: Money market funds $ 140.0 $ — $ — $ 50.9 $ — $ — Total cash equivalents 140.0 — — 50.9 — — Equity securities: Exchange traded funds 39.6 — — 50.3 — — Marketable securities 0.2 — — 0.7 — — Total equity securities 39.8 — — 51.0 — — Available-for-sale fixed income investments: Corporate bonds — 15.1 — — 16.6 — U.S. Treasuries — 11.9 — — 14.6 — Agency mortgage-backed securities — 3.7 — — 2.0 — Asset backed securities — 3.4 — — 4.6 — Other — 0.4 — — 0.4 — Total available-for-sale fixed income investments — 34.5 — — 38.2 — Foreign exchange derivative assets — 256.8 — — 144.6 — Total assets at recurring fair value measurement $ 179.8 $ 291.3 $ — $ 101.9 $ 182.8 $ — Financial Liabilities Foreign exchange derivative liabilities — 157.3 — — 61.0 — Contingent consideration — — 163.3 — — 199.7 Total liabilities at recurring fair value measurement $ — $ 157.3 $ 163.3 $ — $ 61.0 $ 199.7 For financial assets and liabilities that utilize Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including the LIBOR yield curve, foreign exchange forward prices and bank price quotes. Below is a summary of valuation techniques for Level 1 and Level 2 financial assets and liabilities: • Cash equivalents — valued at observable net asset value prices. • Equity securities, exchange traded funds — valued at the active quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in other (income) expense, net, in the condensed consolidated statements of operations. • Equity securities, marketable securities — valued using quoted stock prices from public exchanges at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in other (income) expense, net, in the condensed consolidated statements of operations. • Available-for-sale fixed income investments — valued at the quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value, net of income taxes, are included in accumulated other comprehensive loss as a component of shareholders’ equity. • Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices and spot rates at the reporting date. Counterparties to these contracts are highly rated financial institutions. Contingent Consideration The fair value measurement of contingent consideration is determined using Level 3 inputs. The Company’s contingent consideration represents a component of the total purchase consideration for Pfizer’s respiratory delivery platform and certain other acquisitions. The measurement is calculated using unobservable inputs based on the Company’s own assumptions primarily related to the probability and timing of future development and commercial milestones and future profit sharing payments which are discounted using a market rate of return. At September 30, 2022 and December 31, 2021, discount rates ranging from 8.0% to 9.0% were utilized in the valuations. Significant changes in unobservable inputs could result in material changes to the contingent consideration liability. A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2021 to September 30, 2022 is as follows: (In millions) Current Portion (1) Long-Term Portion (2) Total Contingent Consideration Balance at December 31, 2021 $ 66.7 $ 133.0 $ 199.7 Payments (50.9) — (50.9) Reclassifications 54.9 (54.9) — Accretion — 5.4 5.4 Fair value loss (3) — 9.1 9.1 Balance at September 30, 2022 $ 70.7 $ 92.6 $ 163.3 ____________ (1) Included in other current liabilities in the condensed consolidated balance sheets. (2) Included in other long-term obligations in the condensed consolidated balance sheets. (3) Included in litigation settlements and other contingencies, net in the condensed consolidated statements of operations. Although the Company has not elected the fair value option for other financial assets and liabilities, any future transacted financial asset or liability will be evaluated for the fair value election. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt For additional information, see Note 10 Debt in Viatris’ 2021 Form 10-K. Short-Term Borrowings The Company had $500.4 million and $1.49 billion of short-term borrowings as of September 30, 2022 and December 31, 2021, respectively. (In millions) September 30, December 31, Commercial paper notes $ 300.4 $ 1,173.4 Receivables Facility — 318.5 Note Securitization Facility 200.0 — Other — 1.1 Short-term borrowings $ 500.4 $ 1,493.0 Receivables Facility In August 2022, the Note Securitization Facility was amended to extend its maturity to August 2023. The Company has a $400 million Receivables Facility, which originally was to expire on April 22, 2022. On April 22, 2022, the Company entered into an agreement to extend the expiration date of the Receivables Facility to April 22, 2025. Under the terms of the Receivables Facility, our subsidiary, MPI, sells certain accounts receivable to Mylan Securitization LLC (“Mylan Securitization”), a wholly-owned special purpose entity which in turn sells a percentage ownership interest in the receivables to financial institutions and commercial paper conduits sponsored by financial institutions. Mylan Securitization’s assets have been pledged to MUFG Bank, Ltd., as agent, in support of its obligations under the Receivables Facility. Any amounts outstanding under the facility are recorded as borrowings and the underlying receivables are included in accounts receivable, net, in the condensed consolidated balance sheets. Long-Term Debt A summary of long-term debt is as follows: ($ in millions) Interest Rate as of September 30, 2022 September 30, December 31, Current portion of long-term debt: 2022 Euro Senior Notes (a) **** 0.816 % $ — $ 856.6 2022 Senior Notes (b) *** 1.125 % — 1,002.9 2023 Senior Notes (c) * 3.125 % 754.5 — Other 0.8 0.9 Deferred financing fees (0.3) (0.1) Current portion of long-term debt $ 755.0 $ 1,860.3 Non-current portion of long-term debt: 2023 Senior Notes (c) * 3.125 % — 766.1 2023 Senior Notes * 4.200 % 499.7 499.6 2024 Euro Senior Notes ** 2.250 % 979.4 1,135.8 2024 Euro Senior Notes **** 1.023 % 746.5 871.6 2025 Euro Senior Notes * 2.125 % 489.6 567.8 2025 Senior Notes *** 1.650 % 760.5 763.4 2026 Senior Notes ** 3.950 % 2,242.8 2,241.4 2027 Euro Senior Notes **** 1.362 % 867.9 1,013.0 2027 Senior Notes *** 2.300 % 776.7 780.8 2028 Euro Senior Notes ** 3.125 % 731.0 847.4 2028 Senior Notes * 4.550 % 748.9 748.7 2030 Senior Notes *** 2.700 % 1,514.7 1,520.5 2032 Euro Senior Notes **** 1.908 % 1,326.6 1,546.6 2040 Senior Notes *** 3.850 % 1,652.2 1,657.1 2043 Senior Notes * 5.400 % 497.4 497.3 2046 Senior Notes ** 5.250 % 999.9 999.9 2048 Senior Notes * 5.200 % 747.8 747.8 2050 Senior Notes *** 4.000 % 2,201.9 2,205.1 YEN Term Loan Facility Variable 276.4 347.6 Revolving Facility Variable 700.0 — Other 1.7 1.9 Deferred financing fees (37.1) (42.3) Long-term debt $ 18,724.5 $ 19,717.1 ____________ (a) The 2022 Euro Senior Notes were repaid at maturity in the second quarter of 2022. (b) The 2022 Senior Notes were repaid at maturity in the second quarter of 2022. (c) In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The fair value adjustment is being amortized to interest expense over the remaining term of the notes. * Instrument was issued by Mylan Inc. ** Instrument was originally issued by Mylan N.V.; now held by Utah Acquisition Sub Inc. *** Instrument was issued by Viatris Inc. **** Instrument was issued by Upjohn Finance B.V. At September 30, 2022 and December 31, 2021, the aggregate fair value of the Company’s outstanding notes was approximately $14.36 billion and $22.01 billion, respectively. The fair values of the outstanding notes were valued at quoted market prices from broker or dealer quotations and were classified as Level 2 in the fair value hierarchy. Mandatory minimum repayments remaining on the notional amount of outstanding long-term debt at September 30, 2022 were as follows for each of the periods ending December 31: (In millions) Total 2022 $ — 2023 1,250 2024 1,715 2025 1,240 2026 3,226 Thereafter 11,493 Total $ 18,924 |
Comprehensive Earnings
Comprehensive Earnings | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Comprehensive Earnings | Comprehensive Loss Accumulated other comprehensive loss, as reflected on the condensed consolidated balance sheets, is comprised of the following: (In millions) September 30, December 31, Accumulated other comprehensive loss: Net unrealized loss on marketable securities, net of tax $ (2.7) $ — Net unrecognized gain and prior service cost related to defined benefit plans, net of tax 29.2 32.2 Net unrecognized gain on derivatives in cash flow hedging relationships, net of tax 34.5 9.2 Net unrecognized gain on derivatives in net investment hedging relationships, net of tax 764.4 16.7 Foreign currency translation adjustment (4,584.5) (1,802.4) $ (3,759.1) $ (1,744.3) Components of accumulated other comprehensive loss, before tax, consist of the following, for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at June 30, 2022, net of tax $ 22.7 $ 471.6 $ (2.1) $ 30.1 $ (3,421.5) $ (2,899.2) Other comprehensive earnings (loss) before reclassifications, before tax 46.7 376.7 (0.8) (1.3) (1,163.0) (741.7) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (32.2) (32.2) (32.2) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 1.2 1.2 1.2 Amortization of prior service costs included in SG&A 0.1 0.1 Net other comprehensive earnings (loss), before tax 15.7 376.7 (0.8) (1.2) (1,163.0) (772.6) Income tax provision (benefit) 3.9 83.9 (0.2) (0.3) — 87.3 Balance at September 30, 2022, net of tax $ 34.5 $ 764.4 $ (2.7) $ 29.2 $ (4,584.5) $ (3,759.1) Nine Months Ended September 30, 2022 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2021, net of tax $ 9.2 $ 16.7 $ — $ 32.2 $ (1,802.4) $ (1,744.3) Other comprehensive earnings (loss) before reclassifications, before tax 104.6 962.4 (3.5) (3.6) (2,782.1) (1,722.2) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (74.5) (74.5) (74.5) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 3.4 3.4 3.4 Amortization of prior service costs included in SG&A 0.2 0.2 Amortization of actuarial loss included in SG&A 0.1 0.1 Net other comprehensive earnings (loss), before tax 33.5 962.4 (3.5) (3.3) (2,782.1) (1,793.0) Income tax provision (benefit) 8.2 214.7 (0.8) (0.3) — 221.8 Balance at September 30, 2022, net of tax $ 34.5 $ 764.4 $ (2.7) $ 29.2 $ (4,584.5) $ (3,759.1) Three Months Ended September 30, 2021 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at June 30, 2021, net of tax $ (6.2) $ (220.8) $ 0.4 $ 43.6 $ (1,022.0) $ (1,205.0) Other comprehensive earnings (loss) before reclassifications, before tax 20.9 168.4 (0.1) 0.5 (407.4) (217.7) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (10.2) (10.2) (10.2) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 1.1 1.1 1.1 Amortization of prior service costs included in SG&A (0.1) (0.1) Amortization of actuarial loss included in SG&A 0.4 0.4 Net other comprehensive earnings (loss), before tax 11.8 168.4 (0.1) 0.8 (407.4) (226.5) Income tax provision (benefit) 2.9 38.0 — (0.5) — 40.4 Balance at September 30, 2021, net of tax $ 2.7 $ (90.4) $ 0.3 $ 44.9 $ (1,429.4) $ (1,471.9) Nine Months Ended September 30, 2021 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2020, net of tax $ (18.0) $ (353.6) $ 1.2 $ (26.1) $ (461.5) $ (858.0) Other comprehensive earnings (loss) before reclassifications, before tax 44.2 318.4 (0.8) 73.3 (967.9) (532.8) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (19.9) (19.9) (19.9) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 3.2 3.2 3.2 Amortization of prior service costs included in SG&A (0.4) (0.4) Amortization of actuarial loss included in SG&A 1.2 1.2 Net other comprehensive earnings (loss), before tax 27.5 318.4 (0.8) 74.1 (967.9) (548.7) Income tax provision 6.8 55.2 0.1 3.1 — 65.2 Balance at September 30, 2021, net of tax $ 2.7 $ (90.4) $ 0.3 $ 44.9 $ (1,429.4) $ (1,471.9) |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Viatris has four reportable segments: Developed Markets, Greater China, JANZ, and Emerging Markets. The Company reports segment information on the basis of markets and geography, which reflects its focus on bringing its broad and diversified portfolio of branded, complex generics and biosimilars, and generic products to people in markets everywhere. Our Developed Markets segment comprises our operations primarily in North America and Europe. Our Greater China segment includes our operations in China, Taiwan and Hong Kong. Our JANZ segment reflects our operations in Japan, Australia and New Zealand. Our Emerging Markets segment encompasses our presence in more than 125 countries with developing markets and emerging economies including in Asia, Africa, Eastern Europe, Latin America and the Middle East as well as the Company’s ARV franchise. The Company’s chief operating decision maker is the Chief Executive Officer, who evaluates the performance of its segments based on total revenues and segment profitability. Certain costs are not included in the measurement of segment profitability, such as costs, if any, associated with the following: ◦ Intangible asset amortization expense and impairments of intangible assets; ◦ R&D expense; ◦ Net charges or net gains for litigation settlements and other contingencies; ◦ Certain costs related to transactions and events such as (i) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory and property, plant and equipment; (ii) acquisition-related costs, where we incur costs for executing the transaction, integrating the acquired operations and restructuring the combined company; and (iii) other significant items, which are substantive and/or unusual, and in some cases recurring, items (such as restructuring) that are evaluated on an individual basis by management and that either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such special items can include, but are not limited to, non-acquisition-related restructuring costs, as well as costs incurred for asset impairments and disposals of assets or businesses, including, as applicable, any associated transition activities. ◦ Corporate and other unallocated costs associated with platform functions (such as digital, facilities, legal, finance, human resources, insurance, public affairs and procurement), patient advocacy activities and certain compensation and other corporate costs (such as interest income and expense, and gains and losses on investments, as well as overhead expenses associated with our manufacturing, which include manufacturing variances associated with production) and operations that are not directly assessed to an operating segment as business unit (segment) management does not manage these costs. The Company does not report depreciation expense, total assets and capital expenditures by segment, as such information is not used by the chief operating decision maker. The accounting policies of the segments are the same as those described in Note 2 Summary of Significant Accounting Policies included in the 2021 Form 10-K. Presented in the table below is segment information for the periods identified and a reconciliation of segment information to total consolidated information. Net Sales Segment Profitability Three Months Ended September 30, Three Months Ended September 30, (In millions) 2022 2021 2022 2021 Reportable Segments: Developed Markets $ 2,431.5 $ 2,655.9 $ 1,236.3 $ 1,302.7 Greater China 574.0 566.8 403.5 352.5 JANZ 383.0 505.3 163.6 216.7 Emerging Markets 678.9 792.5 330.5 362.5 Total reportable segments $ 4,067.4 $ 4,520.5 $ 2,133.9 $ 2,234.4 Reconciling items: Intangible asset amortization expense (615.9) (671.5) Globally managed research and development costs (174.9) (152.1) Litigation settlements & other contingencies 3.9 (9.4) Transaction related and other special items (239.1) (569.8) Corporate and other unallocated (547.8) (474.0) Earnings from operations $ 560.1 $ 357.6 Net Sales Segment Profitability Nine Months Ended September 30, Nine Months Ended September 30, (In millions) 2022 2021 2022 2021 Reportable Segments: Developed Markets $ 7,386.7 $ 7,867.9 $ 3,703.1 $ 3,908.0 Greater China 1,695.4 1,709.0 1,214.0 1,123.9 JANZ 1,233.9 1,488.2 496.0 586.3 Emerging Markets 2,035.0 2,417.2 976.8 1,084.5 Total reportable segments $ 12,351.0 $ 13,482.3 $ 6,389.9 $ 6,702.7 Reconciling items: Intangible asset amortization expense (1,898.1) (2,037.5) Intangible asset impairment charges — (83.4) Globally managed research and development costs (479.8) (483.9) Litigation settlements & other contingencies (13.2) (55.3) Transaction related and other special items (651.8) (2,483.9) Corporate and other unallocated (1,530.8) (1,515.1) Earnings from operations $ 1,816.2 $ 43.6 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring 2020 Restructuring Program During the fourth quarter of 2020, Viatris announced a significant global restructuring program in order to achieve synergies and ensure that the organization is optimally structured and efficiently resourced to deliver sustainable value to patients, shareholders, customers, and other stakeholders. As part of the restructuring, the Company is optimizing its commercial capabilities and enabling functions, and closing, downsizing or divesting certain manufacturing facilities globally that are deemed to be no longer viable either due to surplus capacity, challenging market dynamics or a shift in its product portfolio toward more complex products. For the committed restructuring actions, the Company expects to incur total pre-tax charges of up to approximately $1.4 billion. Such charges are expected to include up to approximately $450 million of non-cash charges mainly related to accelerated depreciation and asset impairment charges, including inventory write-offs. The remaining estimated cash costs of up to approximately $950 million are expected to be primarily related to severance and employee benefits expense, as well as other costs, including those related to contract terminations and other plant disposal costs. Charges for restructuring and ongoing cost reduction initiatives are recorded in the period the Company commits to a restructuring or cost reduction plan, or executes specific actions contemplated by the plan and all criteria for liability recognition have been met. The following table summarizes the restructuring charges and the reserve activity for the 2020 restructuring program from December 31, 2021 to September 30, 2022: (In millions) Employee Related Costs Other Exit Costs Total Balance at December 31, 2021: $ 292.6 $ 4.1 $ 296.7 Charges (1) 7.3 9.5 16.8 Cash payment (77.6) (6.2) (83.8) Utilization — (4.2) (4.2) Foreign currency translation (2.1) (0.1) (2.2) Balance at March 31, 2022: $ 220.2 $ 3.1 $ 223.3 Charges (1) 4.0 5.8 9.8 Cash payment (36.9) (2.3) (39.2) Utilization — (3.9) (3.9) Foreign currency translation (3.6) (0.1) (3.7) Balance at June 30, 2022: $ 183.7 $ 2.6 $ 186.3 Charges (1) 0.9 14.0 14.9 Cash payment (24.6) (3.1) (27.7) Utilization — (11.1) (11.1) Foreign currency translation (3.2) (0.1) (3.3) Balance at September 30, 2022: $ 156.8 $ 2.3 $ 159.1 ____________ (1) For the three months ended September 30, 2022, total restructuring charges in Developed Markets, Emerging Markets, Greater China, JANZ and Corporate/Other were approximately $14.2 million, $0.1 million, $0.4 million, $0.1 million, and $0.1 million, respectively. For the nine months ended September 30, 2022, total restructuring charges in Developed Markets, Emerging Markets, Greater China, JANZ, and Corporate/Other were approximately $34.5 million, $3.8 million, $2.5 million, $0.4 million, and $0.3 million, respectively. At September 30, 2022 and December 31, 2021, accrued liabilities for restructuring and other cost reduction programs were primarily included in other current liabilities and other long-term obligations in the condensed consolidated balance sheets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Tax Examinations The Company is subject to income taxes and tax audits in many jurisdictions. A certain degree of estimation is thus required in recording the assets and liabilities related to income taxes. Tax audits and examinations can involve complex issues, interpretations, and judgments and the resolution of matters that may span multiple years, particularly if subject to litigation or negotiation. Although the Company believes that adequate provisions have been made for these uncertain tax positions, the Company’s assessment of uncertain tax positions, including those arising from legal entity restructuring transactions in connection with the Combination, is based on estimates and assumptions that the Company believes are reasonable but the estimates for unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variations from such estimates could materially affect the Company’s financial condition, results of operations or cash flows in the period of resolution, settlement or when the statutes of limitations expire. The Company is subject to ongoing IRS examinations. The years 2015 through 2019 are open years under examination. The years 2012, 2013 and 2014 have one matter open, and a Tax Court petition was filed regarding the matter and a trial was held in December 2018 and is discussed further below. Several international audits are currently in progress. In some cases, the tax auditors have proposed adjustments or issued assessments to our tax positions, including with respect to intercompany transactions, and we are in ongoing discussions with some of the auditors regarding the validity of their positions. In instances where assessments have been issued, we disagree with these assessments and believe they are without merit and incorrect as a matter of law. As a result, we anticipate that certain of these matters may become the subject of litigation before tax courts where we intend to vigorously defend our position. In Australia, the tax authorities have issued notices of assessments to the Company for the years ended December 2009 to December 2020, subject to additional interest and penalties, concerning our tax position with respect to certain intercompany transactions. The tax authorities denied our objections to the assessments for the years ended December 2009 to December 2020 and we have commenced litigation in the Australian Federal Court challenging those decisions. The Company made a partial payment of $56.0 million in 2021 and $5.2 million in 2022 in order to stay potential interest and penalties resulting from this litigation. In France, the tax authorities have issued notices of assessments to the Company for the years ended December 2013 to December 2015 concerning our tax position with respect to whether income earned by a Company entity not domiciled in France should be subject to French tax. We have commenced litigation before the French tax courts where the tax authorities will seek unpaid taxes, penalties, and interest. In India, the tax authorities have issued notices of assessments to the Company seeking unpaid taxes and interest for the financial years covering 2013 to 2018 concerning our tax position with respect to certain corporate tax deductions and certain intercompany transactions. Some of these assessments remain in the audit phase where we are challenging them before the tax authorities while we are challenging some of the other assessments in the Indian tax courts. The Company has recorded a net reserve for uncertain tax positions of $288.2 million and $315.6 million, including interest and penalties, in connection with its international audits at September 30, 2022 and December 31, 2021, respectively. In connection with our international tax audits, it is possible that we will incur material losses above the amounts reserved. The Company’s major U.S. state taxing jurisdictions remain open from fiscal year 2013 through 2021, with several state audits currently in progress. The Company’s major international taxing jurisdictions remain open from 2012 through 2021. Tax Court Proceedings The Company's U.S. federal income tax returns for 2012 through 2014 had been subject to proceedings in U.S. Tax Court involving a dispute with the IRS regarding whether certain costs related to ANDAs were eligible to be expensed and deducted immediately or required to be amortized over longer periods. A trial was held in U.S. Tax Court in December 2018 and on April 27, 2021, the Court affirmed Mylan’s position and held that patent litigation expenses related to ANDAs are immediately deductible. The IRS has appealed this decision. Accounting for Uncertainty in Income Taxes The impact of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority must be recognized at the largest amount that is more likely than not to be sustained. No portion of an uncertain tax position will be recognized if the position has less than a 50% likelihood of being sustained. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation The Company is involved in various disputes, governmental and/or regulatory inquiries, investigations and proceedings, tax proceedings and litigation matters, both in the U.S. and abroad, that arise from time to time, some of which could result in losses, including damages, fines and/or civil penalties, and/or criminal charges against the Company. These matters are often complex and have outcomes that are difficult to predict. In addition, in connection with the Combination, the Company has generally assumed liability for, and control of, pending and threatened legal matters relating to the Upjohn Business – including certain matters initiated against Pfizer described below – and has agreed to indemnify Pfizer for liabilities arising out of such assumed legal matters. Pfizer, however, has agreed to retain various matters – including certain specified competition law matters – to the extent they arise from conduct during the pre-Distribution period and has agreed to indemnify the Company for liabilities arising out of such matters. While the Company believes that it has meritorious defenses with respect to the claims asserted against it and the assumed legal matters referenced above, and intends to vigorously defend its position, the process of resolving these matters is inherently uncertain and may develop over a long period of time, and so it is not possible to predict the ultimate resolution of any such matter. It is possible that an unfavorable resolution of any of the ongoing matters could have a material effect on the Company’s business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price. Some of these governmental inquiries, investigations, proceedings and litigation matters with which the Company is involved are described below, and unless otherwise disclosed, the Company is unable to predict the outcome of the matter or to provide an estimate of the range of reasonably possible material losses. The Company records accruals for loss contingencies to the extent we conclude it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company is also involved in other pending proceedings for which, in the opinion of the Company based upon facts and circumstances known at the time, either the likelihood of loss is remote or any reasonably possible loss associated with the resolution of such proceedings is not expected to be material to the Company’s business, financial position, results of operations, cash flows, ability to pay dividends and/or stock price. If and when any reasonably possible losses associated with the resolution of such other pending proceedings, in the opinion of the Company, become material, the Company will disclose such matters. Legal costs are recorded as incurred and are classified in SG&A in the Company’s condensed consolidated statements of operations. EpiPen® Auto-Injector Litigation The Company and a former Mylan N.V. officer (collectively the “Mylan Defendants”) were named as defendants in indirect purchaser class actions relating to the pricing and/or marketing of the EpiPen® Auto-Injector. The plaintiffs in these cases asserted violations of various federal and state antitrust and consumer protection laws, RICO as well as common law claims. Plaintiffs’ sought monetary damages, attorneys’ fees and costs. These lawsuits were filed in various federal and state courts and were either dismissed or transferred into a MDL in the U.S. District Court for the District of Kansas and were consolidated or centralized. An antitrust class consisting of certain states was ultimately certified. On June 23, 2021, the Court granted – in substantial part – the Mylan Defendants’ motion for summary judgment by dismissing certain antitrust claims and the RICO claims, which included RICO claims asserted against the former Mylan N.V. officer. In February 2022, the parties reached an agreement to fully resolve this matter for $264 million, which was accrued for during the year ended December 31, 2021. During the first quarter of 2022, $5.0 million of the settlement was paid and the remaining amount of the settlement was paid in July 2022. The settlement was approved by the Court on July 11, 2022 and contains an express provision disclaiming and denying any wrongdoing or liability by the Mylan Defendants. This matter is resolved. On February 14, 2020, the Company, together with other non-Viatris affiliated companies, were named as defendants in a putative direct purchaser class action filed in the U.S. District Court for the District of Kansas relating to the pricing and/or marketing of the EpiPen® Auto-Injector. On September 21, 2021, after Plaintiffs’ then operative complaint was dismissed with an option to file a limited amended complaint, Plaintiffs filed an amended complaint asserting federal antitrust claims which are based on allegations concerning a patent settlement between Pfizer and Teva and other alleged actions regarding the launch of Teva’s generic epinephrine auto-injector. Plaintiffs’ seek monetary damages, declaratory relief, attorneys’ fees and costs. Beginning in March 2020, the Company, together with other non-Viatris affiliated companies, were named as defendants in putative direct purchaser class actions filed in the U.S. District Court for the District of Minnesota relating to contracts with certain pharmacy benefit managers concerning EpiPen® Auto-Injector. The plaintiffs claim that the alleged conduct resulted in the exclusion or restriction of competing products and the elimination of pricing constraints in violation of RICO and federal antitrust law. These actions have been consolidated. Plaintiffs’ seek monetary damages, attorneys’ fees and costs. On April 24, 2017, Sanofi Aventis U.S., LLC (“Sanofi”) filed a lawsuit against the Company in the U.S. District Court for the District of New Jersey. This lawsuit has been transferred into the aforementioned MDL and alleges exclusive dealing and anti-competitive marketing practices in violation of the antitrust laws in connection with the sale and marketing of the EpiPen® Auto-Injector. Sanofi seeks monetary damages, declaratory relief, attorneys’ fees and costs. The Court granted the Company’s motion for summary judgment and dismissed Sanofi’s claims. Sanofi’s appeal was denied. The Company has a total accrual of approximately $10.0 million related to these matters at September 30, 2022, which is included in other current liabilities in the condensed consolidated balance sheets. Although it is reasonably possible that the Company may incur additional losses from these matters, any amount cannot be reasonably estimated at this time. In addition, the Company expects to incur additional legal and other professional service expenses associated with such matters in future periods and will recognize these expenses as services are received. The Company believes that the ultimate amount paid for these services and claims could have a material effect on the Company's business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price in future periods. Drug Pricing Matters Department of Justice On December 3, 2015, the Company received a subpoena from the Antitrust Division of the DOJ seeking information relating to the marketing, pricing, and sale of certain of our generic products and any communications with competitors about such products. On September 8, 2016, the Company, as well as certain employees and a member of senior management, received subpoenas from the DOJ seeking similar information. Related search warrants also were executed. On May 10, 2018, the Company received a civil investigative demand from the Civil Division of the DOJ seeking information relating to the pricing and sale of its generic drug products. We are fully cooperating with these investigations, which we believe are related to a broader industry-wide investigation of the generic pharmaceutical industry. Civil Litigation Beginning in 2016, the Company, along with other manufacturers, has been named as a defendant in lawsuits filed in the United States and Canada generally alleging anticompetitive conduct with respect to generic drugs. The lawsuits have been filed by plaintiffs, including putative classes of direct purchasers, indirect purchasers, and indirect resellers, as well as individual direct and indirect purchasers and certain cities and counties. The lawsuits allege harm under federal laws and the United States lawsuits also allege harm under state laws, including antitrust laws, state consumer protection laws and unjust enrichment claims. Some of the United States lawsuits also name as defendants the Company’s President, including allegations against him with respect to a single drug product, and one of the Company’s sales employees, including allegations against him with respect to certain generic drugs. The vast majority of the lawsuits have been consolidated in an MDL proceeding in the Eastern District of Pennsylvania (“EDPA”). Plaintiffs generally seek monetary damages, restitution, declaratory and injunctive relief, attorneys’ fees and costs. The EDPA court has ordered certain plaintiffs’ complaints regarding two single-drug product cases to proceed as bellwethers. The Company is named in those plaintiffs’ complaints that regard one of the two individual drug products. Attorneys General Litigation On December 21, 2015, the Company received a subpoena and interrogatories from the Connecticut Office of the Attorney General seeking information relating to the marketing, pricing and sale of certain of the Company’s generic products and communications with competitors about such products. On December 14, 2016, attorneys general of certain states filed a complaint in the United States District Court for the District of Connecticut against several generic pharmaceutical drug manufacturers, including the Company, alleging anticompetitive conduct with respect to, among other things, a single drug product. The complaint has subsequently been amended, including on June 18, 2018, to add attorneys general alleging violations of federal and state antitrust laws, as well as violations of various states’ consumer protection laws. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA. The operative complaint includes attorneys general of forty-six states, the District of Columbia and the Commonwealth of Puerto Rico. The Company is alleged to have engaged in anticompetitive conduct with respect to four generic drug products. The amended complaint also includes claims asserted by attorneys general of thirty-six states and the Commonwealth of Puerto Rico against certain individuals, including the Company’s President, with respect to a single drug product. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, restitution, and other equitable monetary relief. The States’ claim for disgorgement and restitution under federal law in this case has been dismissed. On May 10, 2019, certain attorneys general filed a new complaint in the United States District Court for the District of Connecticut against various drug manufacturers and individuals, including the Company and one of its sales employees, alleging anticompetitive conduct with respect to additional generic drugs. On November 1, 2019, the complaint was amended, adding additional states as plaintiffs. The operative complaint is brought by attorneys general of forty-seven states, certain territories and the District of Columbia. The amended complaint also includes claims asserted by attorneys general of forty-two states and certain territories against several individuals, including a Company sales employee. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, restitution, and other equitable monetary relief. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA. On June 10, 2020, certain attorneys general filed a new complaint in the United States District Court for the District of Connecticut against drug manufacturers, including the Company, and individual defendants (none from the Company), alleging anticompetitive conduct with respect to additional generic drugs. On September 9, 2021, the complaint was amended, adding an additional state as a plaintiff. The operative complaint is brought by attorneys general of forty-six states, certain territories and the District of Columbia. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, restitution, and other equitable monetary relief. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA and has been ordered to proceed as a bellwether. Securities Related Litigation Purported class action complaints were filed in October 2016 against Mylan N.V. and Mylan Inc. (collectively “Mylan”), certain of Mylan’s former directors and officers, and certain of the Company’s current directors and officers (collectively, for purposes of this paragraph, the “defendants”) in the United States District Court for the Southern District of New York (“SDNY”) on behalf of certain purchasers of securities of Mylan on the NASDAQ. The complaints alleged that defendants made false or misleading statements and omissions of purportedly material fact, in violation of federal securities laws, in connection with disclosures relating to the classification of their EpiPen® Auto-Injector as a non-innovator drug for purposes of the Medicaid Drug Rebate Program. On March 20, 2017, a consolidated amended complaint was filed alleging substantially similar claims, but adding allegations that defendants made false or misleading statements and omissions of purportedly material fact in connection with allegedly anticompetitive conduct with respect to EpiPen® Auto-Injector and certain generic drugs. The operative complaint is the third amended consolidated complaint, which was filed on June 17, 2019, and contains the allegations as described above against Mylan, certain of Mylan’s former directors and officers, and certain of the Company’s current directors, officers, and employees (collectively, for purposes of this paragraph, the “defendants”). A class has been certified covering all persons or entities that purchased Mylan common stock between February 21, 2012 and May 24, 2019 excluding defendants, certain of the Company’s current directors and officers, former directors and officers of Mylan, members of their immediate families and their legal representatives, heirs, successors or assigns, and any entity in which defendants have or had a controlling interest. Plaintiffs seek damages and costs and expenses, including attorneys’ fees and expert costs. A decision on Defendants’ motion for summary judgment seeking to dismiss the case in its entirety and Plaintiffs’ cross-motion for partial summary judgment as to portions of certain claims is pending. On April 30, 2017, a similar lawsuit was filed in the Tel Aviv District Court (Economic Division) in Israel, which has been stayed pending a decision in the SDNY class action litigation. On February 14, 2020, the Abu Dhabi Investment Authority filed a complaint against Mylan in the SDNY asserting allegations pertaining to EpiPen® Auto-Injector and certain generic drugs under the federal securities laws that overlap with those asserted in the third amended complaint identified above. The Abu Dhabi Investment Authority’s complaint seeks monetary damages as well as the plaintiff’s fees and costs. On June 26, 2020, a putative class action complaint was filed by the Public Employees Retirement System of Mississippi, which was subsequently amended on November 13, 2020, against Mylan N.V., certain of Mylan N.V.’s former directors and officers, and an officer and director of the Company (collectively for the purposes of this paragraph, the “defendants”) in the U.S. District Court for the Western District of Pennsylvania on behalf of certain purchasers of securities of Mylan N.V. The amended complaint alleges that defendants made false or misleading statements and omissions of purportedly material fact, in violation of federal securities laws, in connection with disclosures relating to the Morgantown manufacturing plant and inspections at the plant by the FDA. Plaintiff seeks certification of a class of purchasers of Mylan N.V. securities between February 16, 2016 and May 7, 2019. The complaint seeks monetary damages, as well as the plaintiff’s fees and costs. On February 15, 2021, a complaint was filed by Skandia Mutual Life Ins. Co., Lansforsakringar AB, KBC Asset Management N.V., and GIC Private Limited, against the Company, certain of Mylan N.V.’s former directors and officers, a current director and officer of the Company, and current employees of the Company. The Complaint asserts claims which are based on allegations that are similar to those in the SDNY and the Western District of Pennsylvania complaints identified above. Plaintiffs seek compensatory damages, costs and expenses and attorneys’ fees. On October 28, 2021, the Company and certain of its officers and directors were named as defendants in a putative class action lawsuit filed in the Court of Common Pleas of Allegheny County, Pennsylvania on behalf of former Mylan shareholders who received Company common stock in connection with the Combination. A non-Viatris affiliated company and persons were also named as defendants. The complaint alleges violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 for purportedly failing to disclose or misrepresenting material information in the registration statement and related prospectus issued in connection with the Combination. Plaintiffs seek monetary damages, reasonable costs and expenses, and certain other equitable and injunctive relief. Opioids The Company, along with other manufacturers, distributors, pharmacies, pharmacy benefit managers, and individual healthcare providers is a defendant in more than 1,000 cases in the United States and Canada filed by various plaintiffs, including counties, cities and other local governmental entities, asserting civil claims related to sales, marketing and/or distribution practices with respect to prescription opioid products. In addition, lawsuits have been filed as putative class actions including on behalf of children with Neonatal Abstinence Syndrome due to alleged exposure to opioids. The lawsuits generally seek equitable relief and monetary damages (including punitive and/or exemplary damages) based on a variety of legal theories, including various statutory and/or common law claims, such as negligence, public nuisance and unjust enrichment. The vast majority of these lawsuits have been consolidated in an MDL in the U.S. District Court for the Northern District Court of Ohio. A liability-only trial has been ordered to take place by April 2023 in a coordinated proceeding in West Virginia state court involving the Company and other defendants. Product Liability Like other pharmaceutical companies, the Company is involved in a number of product liability lawsuits related to alleged personal injuries arising out of certain products manufactured/or distributed by the Company, including but not limited to those discussed below. Plaintiffs in these cases generally seek damages and other relief on various grounds for alleged personal injury and economic loss. The Company has accrued approximately $64.9 million as of September 30, 2022 for its product liability matters. It is reasonably possible that we will incur additional losses and fees above the amount accrued but we cannot estimate a range of such reasonably possible losses or legal fees related to these claims at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued. Nitrosamines The Company, along with numerous other manufacturers, retailers, and others, are parties to litigation relating to alleged trace amounts of nitrosamine impurities in certain products, including valsartan and ranitidine. The vast majority of these lawsuits in the United States are pending in two MDLs, namely an MDL pending in the United States District Court for the District of New Jersey concerning valsartan and an MDL pending in the United States District Court for the Southern District of Florida concerning ranitidine. The lawsuits against the Company in the MDLs include putative class actions seeking the refund of the purchase price and other economic and punitive damages allegedly sustained by consumers and end payors as well as individuals seeking compensatory and punitive damages for personal injuries allegedly caused by ingestion of the medications. Similar lawsuits pertaining to valsartan have been filed in other countries. Class certification motions are pending in the valsartan MDL. The Company has also received claims and inquiries related to these products, as well as requests to indemnify purchasers of the Company’s API and/ or finished dose forms of these products. The original master complaints concerning ranitidine were dismissed on December 31, 2020. The Company was not named as a defendant in the amended master complaints, though it was still named in certain short form personal injury complaints. The end-payor plaintiffs and certain of the plaintiffs named in the short form personal injury complaints in the ranitidine matter have filed appeals to the U.S. Court of Appeals for the Eleventh Circuit. Lipitor A number of individual and multi-plaintiff lawsuits have been filed against Pfizer in various federal and state courts alleging that the plaintiffs developed type 2 diabetes purportedly as a result of the ingestion of Lipitor. Plaintiffs seek compensatory and punitive damages. In February 2014, the federal actions were transferred for consolidated pre-trial proceedings to an MDL in the U.S. District Court for the District of South Carolina. Since 2016, certain cases in the MDL were remanded to certain state courts. In 2017, the District Court granted Pfizer’s motion for summary judgment, dismissing all of the cases pending in the MDL. In June 2018, this dismissal was affirmed by the U.S. Court of Appeals for the Fourth Circuit. The state court proceedings remain pending in various jurisdictions, including in California, Missouri, and New York. On January 27, 2021, the California Court granted Pfizer’s motion to exclude the opinions of plaintiffs’ only general causation expert in connection with his opinions involving the three lowest doses of Lipitor (10, 20 and 40 mg). The Company’s motion for summary judgment in connection with the 10, 20, and 40 mg plaintiffs was granted, resulting in their dismissal. On November 3, 2021, the Court granted the Company’s motion seeking the dismissal of the remaining cases involving the highest dose of Lipitor (80 mg). Viagra Since April 2016, an MDL has been pending in the U.S. District Court for the Northern District of California, in which plaintiffs allege that they developed melanoma and/or the exacerbation of melanoma purportedly as a result of the ingestion of Viagra. Additional cases filed against Eli Lilly and Company (“Lilly”) with respect to Cialis have also been consolidated in the MDL. Plaintiffs seek compensatory and punitive damages. In January 2020, the District Court granted Pfizer’s and Lilly’s motion to exclude all of plaintiffs’ general causation opinions. As a result, in April 2020, the District Court entered summary judgment in favor of defendants and dismissed all of plaintiffs’ claims. The parties have settled this matter. Intellectual Property The Company is involved in a number of patent litigation lawsuits involving the validity and/or infringement of patents held by branded pharmaceutical manufacturers including but not limited to the matters described below. The Company uses its business judgment to decide to market and sell certain products, in each case based on its belief that the applicable patents are invalid and/or that its products do not infringe, notwithstanding the fact that allegations of patent infringement(s) or other potential third party rights have not been finally resolved by the courts. The risk involved in doing so can be substantial because the remedies available to the owner of a patent for infringement may include, a reasonable royalty on sales or damages measured by the profits lost by the patent owner. If there is a finding of willful infringement, damages may be increased up to three times. Moreover, because of the discount pricing typically involved with bioequivalent products, patented branded products generally realize a substantially higher profit margin than generic and biosimilar products. The Company also faces challenges to its patents, including suits in various jurisdictions pursuant to which generic drug manufacturers, payers, governments, or other parties are seeking damages for allegedly causing delay of generic entry. An adverse decision in any of these matters could have an adverse effect that is material to our business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price. The Company has accrued approximately $183.0 million as of September 30, 2022 for its intellectual property matters. It is reasonably possible that we will incur additional losses and fees above the amount accrued but we cannot estimate a range of such reasonably possible losses or legal fees related to these claims at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued. Dimethyl Fumarate On June 30, 2017, Biogen MA Inc. and Biogen International GmbH (collectively, “Biogen”) sued MPI in the U.S. District Court for the Northern District of West Virginia asserting that MPI’s abbreviated new drug application for dimethyl fumarate delayed-release capsules containing 120 mg and 240 mg of dimethyl fumarate (generic for Tecfidera®) infringed six U.S. patents that Biogen had listed in the Orange Book: 6,509,376, 7,320,999, 7,619,001, 7,803,840, 8,759,393, and 8,399,514. All patents except for the ‘514 expired during the litigation and were dismissed from the case. After a trial involving only the ’514 patent on June 18, 2020, the District Court issued a judgment finding all claims of the ’514 patent invalid for lack of adequate written description. On appeal, the Federal Circuit affirmed the District Court’s judgment. Biogen’s petition for rehearing was denied. Biogen’s petition seeking review by the U.S. Supreme Court was also denied. On July 13, 2018, MPI filed an IPR petition challenging the ’514 patent based only on obviousness. On February 5, 2020, the PTAB issued a final written decision finding the claims not obvious. MPI’s appeal of the PTAB decision is moot in light of the U.S. Supreme Court denying review of the Federal Circuit’s affirmance of the District Court’s invalidity judgment. These matters are resolved. On August 17, 2020, the FDA approved MPI’s dimethyl fumarate delayed-release capsules, which MPI began selling on August 18, 2020. Lyrica - United Kingdom Beginning in 2014, Pfizer was involved in patent litigation in the English courts concerning the validity of its Lyrica pain use patent. In 2015, the High Court of Justice in London ordered that the NHS England issue guidance for prescribers and pharmacists directing the prescription and dispensing of Lyrica by brand when pregabalin was prescribed for the treatment of neuropathic pain and entered a preliminary injunction against certain Sandoz group companies preventing the sale of Sandoz’s full label pregabalin product. Pfizer undertook to compensate certain generic companies and NHS entities for losses caused by these orders, which remained in effect until patent expiration in July 2017. In November 2018, the U.K. Supreme Court ruled that all the relevant claims directed to neuropathic pain were invalid. Dr. Reddy’s Laboratories filed a claim for monetary damages, interest, and costs in May 2020, followed by the Scottish Ministers and fourteen Scottish Health Boards (together, NHS Scotland) in July 2020. In September 2020, Teva, Sandoz, Ranbaxy, Actavis, and the Secretary of State for Health and Social Care, together with 32 other NHS entities (together, NHS England, Wales, and Northern Ireland) filed their claims. T he claims filed by Sandoz, Teva, Actavis, and Ranbaxy have been resolved and we have reached a settlement in principle to resolve all claims filed by NHS England, Wales, and Northern Ireland. A trial on the remaining claims has been set for November 2023. Other Litigation The Company is involved in various other legal proceedings including commercial, contractual, employment, or other similar matters that are considered normal to its business. The Company has approximately $32.1 million accrued related to these various other legal proceedings at September 30, 2022. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 7, 2022, the Company entered into a definitive agreement to acquire Oyster Point Pharma, Inc. (“Oyster Point”) for $11 per share in cash through a tender offer. In addition to the upfront cash consideration, each Oyster Point stockholder will receive one non-tradeable Contingent Value Right representing up to an additional $2 per share contingent upon Oyster Point achieving certain metrics based upon full year 2022 performance. Oyster Point is a commercial-stage biopharmaceutical company focused on the discovery, development, and commercialization of first-in-class pharmaceutical therapies to treat ophthalmic diseases. The transaction is subject to customary closing conditions, including receipt of regulatory approval and tender acceptance of more than 50% of the common shares of Oyster Point. Also on November 7, 2022, the Company entered into a definitive agreement to acquire Famy Life Sciences Private Limited (“Famy Life Sciences”), which has a complementary portfolio of ophthalmology therapies under development. The transaction is subject to customary closing conditions, including receipt of regulatory approval. Together, the two acquisitions have an aggregate purchase price of approximately $700-$750 million which Viatris expects to fund with cash on hand and expects to close both transactions in the first quarter of 2023. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting Policy | The accompanying unaudited condensed consolidated financial statements (“interim financial statements”) of Viatris Inc. and subsidiaries were prepared in accordance with U.S. GAAP and the rules and regulations of the SEC for reporting on Form 10-Q; therefore, as permitted under these rules, certain footnotes and other financial information included in audited financial statements were condensed or omitted. The interim financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the interim results of operations, comprehensive earnings, financial position, equity and cash flows for the periods presented. |
Earnings per Share Policy | Basic earnings (loss) per share is computed by dividing net earnings (loss) by the weighted average number of shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net earnings (loss) by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities or instruments, if the impact is dilutive |
Fair Value of Financial Instruments Policy | Fair value is based on the price that would be received from the sale of an identical asset or paid to transfer an identical liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy has been established that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: • Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. • Level 2: Observable market-based inputs other than quoted prices in active markets for identical assets or liabilities. • Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considers counterparty credit risk in its assessment of fair value. |
Segment Information (Policies)
Segment Information (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Policy | Viatris has four reportable segments: Developed Markets, Greater China, JANZ, and Emerging Markets. The Company reports segment information on the basis of markets and geography, which reflects its focus on bringing its broad and diversified portfolio of branded, complex generics and biosimilars, and generic products to people in markets everywhere. Our Developed Markets segment comprises our operations primarily in North America and Europe. Our Greater China segment includes our operations in China, Taiwan and Hong Kong. Our JANZ segment reflects our operations in Japan, Australia and New Zealand. Our Emerging Markets segment encompasses our presence in more than 125 countries with developing markets and emerging economies including in Asia, Africa, Eastern Europe, Latin America and the Middle East as well as the Company’s ARV franchise. The Company’s chief operating decision maker is the Chief Executive Officer, who evaluates the performance of its segments based on total revenues and segment profitability. Certain costs are not included in the measurement of segment profitability, such as costs, if any, associated with the following: ◦ Intangible asset amortization expense and impairments of intangible assets; ◦ R&D expense; ◦ Net charges or net gains for litigation settlements and other contingencies; ◦ Certain costs related to transactions and events such as (i) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory and property, plant and equipment; (ii) acquisition-related costs, where we incur costs for executing the transaction, integrating the acquired operations and restructuring the combined company; and (iii) other significant items, which are substantive and/or unusual, and in some cases recurring, items (such as restructuring) that are evaluated on an individual basis by management and that either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such special items can include, but are not limited to, non-acquisition-related restructuring costs, as well as costs incurred for asset impairments and disposals of assets or businesses, including, as applicable, any associated transition activities. ◦ Corporate and other unallocated costs associated with platform functions (such as digital, facilities, legal, finance, human resources, insurance, public affairs and procurement), patient advocacy activities and certain compensation and other corporate costs (such as interest income and expense, and gains and losses on investments, as well as overhead expenses associated with our manufacturing, which include manufacturing variances associated with production) and operations that are not directly assessed to an operating segment as business unit (segment) management does not manage these costs. The Company does not report depreciation expense, total assets and capital expenditures by segment, as such information is not used by the chief operating decision maker. The accounting policies of the segments are the same as those described in Note 2 Summary of Significant Accounting Policies included in the 2021 Form 10-K. |
Revenue Recognition and Accou_2
Revenue Recognition and Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s net sales by product category for each of our reportable segments for the three and nine months ended September 30, 2022 and 2021, respectively: (In millions) Three Months Ended September 30, 2022 Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands $ 1,327.7 $ 571.9 $ 211.6 $ 429.1 $ 2,540.3 Complex Gx and Biosimilars 295.0 0.2 10.9 14.1 320.2 Generics 808.8 1.9 160.5 235.7 1,206.9 Total $ 2,431.5 $ 574.0 $ 383.0 $ 678.9 $ 4,067.4 (In millions) Nine Months Ended September 30, 2022 Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands $ 3,931.8 $ 1,687.9 $ 703.7 $ 1,254.1 $ 7,577.5 Complex Gx and Biosimilars 986.1 0.5 33.3 45.9 1,065.8 Generics 2,468.8 7.0 496.9 735.0 3,707.7 Total $ 7,386.7 $ 1,695.4 $ 1,233.9 $ 2,035.0 $ 12,351.0 (In millions) Three Months Ended September 30, 2021 Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands $ 1,522.7 $ 566.8 $ 299.1 $ 414.5 $ 2,803.1 Complex Gx and Biosimilars 305.1 — 13.2 13.7 332.0 Generics 828.1 — 193.0 364.3 1,385.4 Total $ 2,655.9 $ 566.8 $ 505.3 $ 792.5 $ 4,520.5 (In millions) Nine Months Ended September 30, 2021 Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands $ 4,350.5 $ 1,706.9 $ 878.5 $ 1,293.5 $ 8,229.4 Complex Gx and Biosimilars 926.4 — 31.9 35.4 993.7 Generics 2,591.0 2.1 577.8 1,088.3 4,259.2 Total $ 7,867.9 $ 1,709.0 $ 1,488.2 $ 2,417.2 $ 13,482.3 ____________ (a) Amounts for the three and nine months ended September 30, 2022 include the unfavorable impact of foreign currency translations compared to the prior year period. The following table presents net sales on a consolidated basis for select key products for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, Nine months ended September 30, (In millions) 2022 2021 2022 2021 Select Key Global Products Lipitor ® $ 420.4 $ 410.0 $ 1,266.1 $ 1,272.9 Norvasc ® 189.3 198.4 600.1 635.9 Lyrica ® 156.5 175.6 483.9 555.9 Viagra ® 117.0 138.0 361.9 412.4 EpiPen® Auto-Injectors 114.4 129.5 309.7 337.3 Celebrex ® 82.2 86.0 253.4 257.3 Creon ® 76.4 81.1 226.5 231.7 Effexor ® 64.2 79.5 215.4 239.6 Zoloft ® 53.1 61.3 188.7 208.8 Xalabrands 51.0 55.8 146.7 172.0 Select Key Segment Products Influvac ® $ 159.3 $ 161.2 $ 178.3 $ 165.3 Yupelri ® 53.4 39.4 146.1 118.1 Amitiza ® 39.4 49.5 125.3 147.5 Dymista ® 38.6 35.0 138.0 129.9 Xanax ® 38.3 47.6 115.5 141.5 ____________ (a) The Company does not disclose net sales for any products considered competitively sensitive. (b) Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches. (c) Amounts for the three and nine months ended September 30, 2022 include the unfavorable impact of foreign currency translations compared to the prior year period. Variable Consideration and Accounts Receivable The following table presents a reconciliation of gross sales to net sales by each significant category of variable consideration during the three and nine months ended September 30, 2022 and 2021, respectively: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2022 2021 2022 2021 Gross sales $ 6,862.9 $ 7,739.5 $ 21,069.9 $ 23,058.8 Gross to net adjustments: Chargebacks (1,553.1) (1,439.3) (4,731.5) (4,112.1) Rebates, promotional programs and other sales allowances (1,021.8) (1,521.6) (3,303.0) (4,656.7) Returns (73.4) (87.9) (238.7) (289.2) Governmental rebate programs (147.2) (170.2) (445.7) (518.5) Total gross to net adjustments $ (2,795.5) $ (3,219.0) $ (8,718.9) $ (9,576.5) Net sales $ 4,067.4 $ 4,520.5 $ 12,351.0 $ 13,482.3 |
Schedule of Accounts Receivable, Net | Such allowances were comprised of the following at September 30, 2022 and December 31, 2021, respectively: (In millions) September 30, December 31, Accounts receivable, net $ 1,788.4 $ 1,688.6 Other current liabilities 837.2 1,362.1 Total $ 2,625.6 $ 3,050.7 Accounts receivable, net was comprised of the following at September 30, 2022 and December 31, 2021, respectively: (In millions) September 30, December 31, Trade receivables, net $ 2,829.8 $ 3,774.4 Other receivables 504.1 492.0 Accounts receivable, net $ 3,333.9 $ 4,266.4 |
Share-Based Incentive Plan (Tab
Share-Based Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Awards Activity | The following table summarizes stock awards (stock options and SARs) activity under the Plan and 2003 LTIP: Number of Shares Under Stock Awards Weighted Average Exercise Price per Share Outstanding at December 31, 2021 5,576,490 $ 37.19 Forfeited (987,134) 31.37 Outstanding at September 30, 2022 4,589,356 $ 38.44 Vested and expected to vest at September 30, 2022 4,547,686 $ 38.62 Exercisable at September 30, 2022 4,340,604 $ 39.57 |
Nonvested Restricted Stock and Restricted Stock Unit Awards Activity | A summary of the status of the Company’s nonvested restricted stock awards (restricted stock and restricted stock unit awards, including PSUs) as of September 30, 2022 and the changes during the nine months ended September 30, 2022 are presented below: Number of Restricted Stock Awards Weighted Average Grant-Date Fair Value Per Share Nonvested at December 31, 2021 16,858,128 $ 15.12 Granted 16,868,245 10.20 Released (3,607,011) 17.90 Forfeited (1,045,664) 12.64 Nonvested at September 30, 2022 29,073,698 $ 11.99 |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost | Components of net periodic benefit cost for the three and nine months ended September 30, 2022 and 2021 were as follows: Pension and Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2022 2021 2022 2021 Service cost $ 9.5 $ 10.8 $ 28.5 $ 32.5 Interest cost 10.3 8.5 31.1 25.7 Expected return on plan assets (16.5) (16.6) (49.7) (49.8) Amortization of prior service costs 0.1 (0.1) 0.2 (0.4) Recognized net actuarial losses — 0.4 0.1 1.2 Settlement gain — — — (3.1) Net periodic benefit cost $ 3.4 $ 3.0 $ 10.2 $ 6.1 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Balance Sheet Components [Abstract] | |
Schedule of Cash, cash equivalents, and restricted cash | Cash and restricted cash (In millions) September 30, December 31, September 30, 2021 Cash and cash equivalents $ 646.7 $ 701.2 $ 756.6 Restricted cash, included in prepaid expenses and other current assets 3.7 5.0 5.1 Cash, cash equivalents and restricted cash $ 650.4 $ 706.2 $ 761.7 |
Inventories | Inventories (In millions) September 30, December 31, Raw materials $ 781.8 $ 922.4 Work in process 824.6 993.3 Finished goods 1,774.0 2,062.0 Inventories $ 3,380.4 $ 3,977.7 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets (In millions) September 30, December 31, 2021 Prepaid expenses $ 237.1 $ 256.7 Available-for-sale fixed income securities 34.5 38.2 Fair value of financial instruments 256.8 144.6 Equity securities 39.8 51.0 Other current assets 1,132.2 1,467.1 Prepaid expenses and other current assets $ 1,700.4 $ 1,957.6 |
Property, Plant and Equipment | Property, plant and equipment, net (In millions) September 30, December 31, 2021 Machinery and equipment $ 2,840.9 $ 3,054.0 Buildings and improvements 1,500.5 1,808.5 Construction in progress 545.2 588.7 Land and improvements 132.0 137.9 Gross property, plant and equipment 5,018.6 5,589.1 Accumulated depreciation 1,979.6 2,400.5 Property, plant and equipment, net $ 3,039.0 $ 3,188.6 |
Other Assets | Other assets (In millions) September 30, December 31, 2021 Operating lease right-of-use assets $ 264.2 $ 290.8 Other long-term assets 699.7 879.9 Other assets $ 963.9 $ 1,170.7 |
Accounts payable | Accounts payable (In millions) September 30, December 31, 2021 Trade accounts payable $ 791.2 $ 1,056.1 Other payables 519.3 601.3 Accounts payable $ 1,310.5 $ 1,657.4 |
Other Current Liabilities | Other current liabilities (In millions) September 30, December 31, 2021 Accrued sales allowances $ 837.2 $ 1,362.1 Legal and professional accruals, including litigation accruals 397.4 715.6 Payroll and employee benefit liabilities 631.9 741.9 Contingent consideration 70.7 66.7 Accrued restructuring 109.1 233.5 Accrued interest 210.2 86.6 Equity method investments, clean energy investments 4.3 10.9 Fair value of financial instruments 157.3 61.0 Operating lease liability 85.2 86.7 Other 1,001.4 1,254.6 Other current liabilities $ 3,504.7 $ 4,619.6 |
Other Noncurrent Liabilities | Other long-term obligations (In millions) September 30, December 31, 2021 Employee benefit liabilities $ 805.8 $ 876.4 Contingent consideration 92.6 133.0 Tax related items, including contingencies 396.1 426.1 Operating lease liability 179.3 200.9 Accrued restructuring 51.0 64.3 Other 220.3 232.9 Other long-term obligations $ 1,745.1 $ 1,933.6 |
Disposal Groups, Including Discontinued Operations | The amounts associated with the biosimilars portfolio, as well as other assets classified as held for sale, consisted of the following: As of (In millions) September 30, 2022 Assets held for sale Accounts receivable, net $ 159.5 Inventories 163.2 Prepaid expenses and other current assets 27.0 Intangible assets, net 59.8 Goodwill 911.8 Other assets 105.1 Total assets held for sale $ 1,426.4 Liabilities held for sale Accounts payable $ 131.2 Other current liabilities 202.1 Other long-term obligations 2.0 Total liabilities held for sale $ 335.3 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Summarized financial information, in the aggregate, for the Company’s three equity method, clean energy investments on a 100% basis for the three and nine months ended September 30, 2021 are as follows: Three Months Ended Nine Months Ended (In millions) September 30, 2021 September 30, 2021 Total revenues $ 94.0 $ 293.5 Gross loss (1.3) (3.9) Operating and non-operating expense 4.8 13.7 Net loss $ (6.1) $ (17.6) |
Earnings (Loss) per Ordinary _2
Earnings (Loss) per Ordinary Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Ordinary Share Attributable to Mylan N.V. | Basic and diluted earnings (loss) per share attributable to Viatris Inc. are calculated as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions, except per share amounts) 2022 2021 2022 2021 Basic earnings (loss) attributable to Viatris Inc. common shareholders Net earnings (loss) attributable to Viatris Inc. common shareholders $ 354.3 $ 311.5 $ 1,067.4 $ (1,005.3) Shares (denominator): Weighted average shares outstanding 1,212.5 1,209.3 1,211.8 1,208.6 Basic earnings (loss) per share attributable to Viatris Inc. shareholders $ 0.29 $ 0.26 $ 0.88 $ (0.83) Diluted earnings (loss) attributable to Viatris Inc. common shareholders Net earnings (loss) attributable to Viatris Inc. common shareholders $ 354.3 $ 311.5 $ 1,067.4 $ (1,005.3) Shares (denominator): Weighted average shares outstanding 1,212.5 1,209.3 1,211.8 1,208.6 Share-based awards 5.6 3.3 4.3 — Total dilutive shares outstanding 1,218.1 1,212.6 1,216.1 1,208.6 Diluted earnings (loss) per share attributable to Viatris Inc. shareholders $ 0.29 $ 0.26 $ 0.88 $ (0.83) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2022 are as follows: (In millions) Developed Markets Greater China JANZ Emerging Markets Total Balance at December 31, 2021: Goodwill $ 9,108.4 $ 969.5 $ 776.3 $ 1,644.5 $ 12,498.7 Accumulated impairment losses (385.0) — — — (385.0) 8,723.4 969.5 776.3 1,644.5 12,113.7 Reclassification to assets held for sale (1) (727.3) (2.7) (31.1) (150.7) (911.8) Foreign currency translation (956.0) (31.2) (94.5) (65.6) (1,147.3) $ 7,040.1 $ 935.6 $ 650.7 $ 1,428.2 $ 10,054.6 Balance at September 30, 2022: Goodwill $ 7,425.1 $ 935.6 $ 650.7 $ 1,428.2 $ 10,439.6 Accumulated impairment losses (385.0) — — — (385.0) $ 7,040.1 $ 935.6 $ 650.7 $ 1,428.2 $ 10,054.6 |
Components of Intangible Assets | Intangible assets consist of the following components at September 30, 2022 and December 31, 2021: (In millions) Weighted Average Life (Years) Original Cost Accumulated Amortization Net Book Value September 30, 2022 Product rights, licenses and other (1) 15 $ 36,450.6 $ 13,479.8 $ 22,970.8 In-process research and development 42.5 — 42.5 $ 36,493.1 $ 13,479.8 $ 23,013.3 December 31, 2021 Product rights, licenses and other (1) 15 $ 39,006.2 $ 12,918.5 $ 26,087.7 In-process research and development 46.5 — 46.5 $ 39,052.7 $ 12,918.5 $ 26,134.2 ____________ |
Finite-lived Intangible Assets Amortization Expense | Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2022 2021 2022 2021 Intangible asset amortization expense $ 615.9 $ 671.5 $ 1,898.1 $ 2,037.5 Intangible asset impairment charges — — — 83.4 Total intangible asset amortization expense (including impairment charges) $ 615.9 $ 671.5 $ 1,898.1 $ 2,120.9 |
Expected Amortization Expense | Intangible asset amortization expense over the remainder of 2022 and for the years ending December 31, 2023 through 2026 is estimated to be as follows: (In millions) 2022 $ 609 2023 2,280 2024 2,190 2025 2,097 2026 2,049 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivatives, Fair Value [Line Items] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2021 to September 30, 2022 is as follows: (In millions) Current Portion (1) Long-Term Portion (2) Total Contingent Consideration Balance at December 31, 2021 $ 66.7 $ 133.0 $ 199.7 Payments (50.9) — (50.9) Reclassifications 54.9 (54.9) — Accretion — 5.4 5.4 Fair value loss (3) — 9.1 9.1 Balance at September 30, 2022 $ 70.7 $ 92.6 $ 163.3 ____________ (1) Included in other current liabilities in the condensed consolidated balance sheets. (2) Included in other long-term obligations in the condensed consolidated balance sheets. (3) Included in litigation settlements and other contingencies, net in the condensed consolidated statements of operations. |
Financial Assets and Liabilities Carried at Fair Value | Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above: September 30, 2022 December 31, 2021 (In millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Recurring fair value measurements Financial Assets Cash equivalents: Money market funds $ 140.0 $ — $ — $ 50.9 $ — $ — Total cash equivalents 140.0 — — 50.9 — — Equity securities: Exchange traded funds 39.6 — — 50.3 — — Marketable securities 0.2 — — 0.7 — — Total equity securities 39.8 — — 51.0 — — Available-for-sale fixed income investments: Corporate bonds — 15.1 — — 16.6 — U.S. Treasuries — 11.9 — — 14.6 — Agency mortgage-backed securities — 3.7 — — 2.0 — Asset backed securities — 3.4 — — 4.6 — Other — 0.4 — — 0.4 — Total available-for-sale fixed income investments — 34.5 — — 38.2 — Foreign exchange derivative assets — 256.8 — — 144.6 — Total assets at recurring fair value measurement $ 179.8 $ 291.3 $ — $ 101.9 $ 182.8 $ — Financial Liabilities Foreign exchange derivative liabilities — 157.3 — — 61.0 — Contingent consideration — — 163.3 — — 199.7 Total liabilities at recurring fair value measurement $ — $ 157.3 $ 163.3 $ — $ 61.0 $ 199.7 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: Amount of Gains/(Losses) Recognized in Earnings Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives Amount of Gains/(Losses) Reclassified from AOCE into Earnings Three months ended September 30, Three months ended September 30, Three months ended September 30, (In millions) Location of Gain/(Loss) 2022 2021 2022 2021 2022 2021 Derivative Financial Instruments in Cash Flow Hedging Relationships (1) : Foreign currency forward contracts Net sales (2) $ — $ — $ 35.3 $ 15.5 $ 32.2 $ 10.2 Interest rate swaps Interest expense (2) — — (0.9) (0.8) (1.2) (1.1) Non-derivative Financial Instruments in Net Investment Hedging Relationships: Foreign currency borrowings — — 292.9 130.4 — — Derivative Financial Instruments Not Designated as Hedging Instruments: Foreign currency option and forward contracts Other (income) expense, net (3) (82.7) 37.6 — — — — Total $ (82.7) $ 37.6 $ 327.3 $ 145.1 $ 31.0 $ 9.1 Amount of Gains/(Losses) Recognized in Earnings Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives Amount of Gains/(Losses) Reclassified from AOCE into Earnings Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, (In millions) Location of Gain/(Loss) 2022 2021 2022 2021 2022 2021 Derivative Financial Instruments in Cash Flow Hedging Relationships (1) : Foreign currency forward contracts Net sales (2) $ — $ — $ 78.1 $ 32.4 $ 74.5 $ 19.9 Interest rate swaps Interest expense (2) — — (2.6) (2.5) (3.4) (3.2) Non-derivative Financial Instruments in Net Investment Hedging Relationships: Foreign currency borrowings — — 747.8 329.4 — — Derivative Financial Instruments Not Designated as Hedging Instruments: Foreign currency option and forward contracts Other (income) expense, net (3) (7.9) 58.3 — — — — Total $ (7.9) $ 58.3 $ 823.3 $ 359.3 $ 71.1 $ 16.7 ____________ (1) At September 30, 2022, the Company expects that approximately $53.0 million of pre-tax net gains on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months. (2) Represents the location of the gain/(loss) reclassified from AOCE into earnings. (3) Represents the location of the gain/(loss) recognized in earnings on derivatives. |
Designated as Hedging Instrument | |
Derivatives, Fair Value [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the classification and fair values of derivative instruments in our condensed consolidated balance sheets: Asset Derivatives Liability Derivatives (In millions) Balance Sheet Location September 30, 2022 Fair Value December 31, 2021 Fair Value Balance Sheet Location September 30, 2022 Fair Value December 31, 2021 Fair Value Derivatives designated as hedges: Foreign currency forward contracts Prepaid expenses & other current assets $ 99.9 $ 62.0 Other current liabilities $ 18.4 $ 4.3 Total derivatives designated as hedges 99.9 62.0 18.4 4.3 Derivatives not designated as hedges: Foreign currency forward contracts Prepaid expenses & other current assets 156.9 82.6 Other current liabilities 138.9 56.7 Total derivatives not designated as hedges 156.9 82.6 138.9 56.7 Total derivatives $ 256.8 $ 144.6 $ 157.3 $ 61.0 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | A summary of long-term debt is as follows: ($ in millions) Interest Rate as of September 30, 2022 September 30, December 31, Current portion of long-term debt: 2022 Euro Senior Notes (a) **** 0.816 % $ — $ 856.6 2022 Senior Notes (b) *** 1.125 % — 1,002.9 2023 Senior Notes (c) * 3.125 % 754.5 — Other 0.8 0.9 Deferred financing fees (0.3) (0.1) Current portion of long-term debt $ 755.0 $ 1,860.3 Non-current portion of long-term debt: 2023 Senior Notes (c) * 3.125 % — 766.1 2023 Senior Notes * 4.200 % 499.7 499.6 2024 Euro Senior Notes ** 2.250 % 979.4 1,135.8 2024 Euro Senior Notes **** 1.023 % 746.5 871.6 2025 Euro Senior Notes * 2.125 % 489.6 567.8 2025 Senior Notes *** 1.650 % 760.5 763.4 2026 Senior Notes ** 3.950 % 2,242.8 2,241.4 2027 Euro Senior Notes **** 1.362 % 867.9 1,013.0 2027 Senior Notes *** 2.300 % 776.7 780.8 2028 Euro Senior Notes ** 3.125 % 731.0 847.4 2028 Senior Notes * 4.550 % 748.9 748.7 2030 Senior Notes *** 2.700 % 1,514.7 1,520.5 2032 Euro Senior Notes **** 1.908 % 1,326.6 1,546.6 2040 Senior Notes *** 3.850 % 1,652.2 1,657.1 2043 Senior Notes * 5.400 % 497.4 497.3 2046 Senior Notes ** 5.250 % 999.9 999.9 2048 Senior Notes * 5.200 % 747.8 747.8 2050 Senior Notes *** 4.000 % 2,201.9 2,205.1 YEN Term Loan Facility Variable 276.4 347.6 Revolving Facility Variable 700.0 — Other 1.7 1.9 Deferred financing fees (37.1) (42.3) Long-term debt $ 18,724.5 $ 19,717.1 ____________ (a) The 2022 Euro Senior Notes were repaid at maturity in the second quarter of 2022. (b) The 2022 Senior Notes were repaid at maturity in the second quarter of 2022. (c) In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The fair value adjustment is being amortized to interest expense over the remaining term of the notes. * Instrument was issued by Mylan Inc. ** Instrument was originally issued by Mylan N.V.; now held by Utah Acquisition Sub Inc. *** Instrument was issued by Viatris Inc. **** Instrument was issued by Upjohn Finance B.V. |
Minimum Repayments on Outstanding Borrowings | Mandatory minimum repayments remaining on the notional amount of outstanding long-term debt at September 30, 2022 were as follows for each of the periods ending December 31: (In millions) Total 2022 $ — 2023 1,250 2024 1,715 2025 1,240 2026 3,226 Thereafter 11,493 Total $ 18,924 |
Comprehensive Earnings (Tables)
Comprehensive Earnings (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss, as reflected on the condensed consolidated balance sheets, is comprised of the following: (In millions) September 30, December 31, Accumulated other comprehensive loss: Net unrealized loss on marketable securities, net of tax $ (2.7) $ — Net unrecognized gain and prior service cost related to defined benefit plans, net of tax 29.2 32.2 Net unrecognized gain on derivatives in cash flow hedging relationships, net of tax 34.5 9.2 Net unrecognized gain on derivatives in net investment hedging relationships, net of tax 764.4 16.7 Foreign currency translation adjustment (4,584.5) (1,802.4) $ (3,759.1) $ (1,744.3) |
Components of Other Comprehensive Loss | Components of accumulated other comprehensive loss, before tax, consist of the following, for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at June 30, 2022, net of tax $ 22.7 $ 471.6 $ (2.1) $ 30.1 $ (3,421.5) $ (2,899.2) Other comprehensive earnings (loss) before reclassifications, before tax 46.7 376.7 (0.8) (1.3) (1,163.0) (741.7) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (32.2) (32.2) (32.2) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 1.2 1.2 1.2 Amortization of prior service costs included in SG&A 0.1 0.1 Net other comprehensive earnings (loss), before tax 15.7 376.7 (0.8) (1.2) (1,163.0) (772.6) Income tax provision (benefit) 3.9 83.9 (0.2) (0.3) — 87.3 Balance at September 30, 2022, net of tax $ 34.5 $ 764.4 $ (2.7) $ 29.2 $ (4,584.5) $ (3,759.1) Nine Months Ended September 30, 2022 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2021, net of tax $ 9.2 $ 16.7 $ — $ 32.2 $ (1,802.4) $ (1,744.3) Other comprehensive earnings (loss) before reclassifications, before tax 104.6 962.4 (3.5) (3.6) (2,782.1) (1,722.2) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (74.5) (74.5) (74.5) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 3.4 3.4 3.4 Amortization of prior service costs included in SG&A 0.2 0.2 Amortization of actuarial loss included in SG&A 0.1 0.1 Net other comprehensive earnings (loss), before tax 33.5 962.4 (3.5) (3.3) (2,782.1) (1,793.0) Income tax provision (benefit) 8.2 214.7 (0.8) (0.3) — 221.8 Balance at September 30, 2022, net of tax $ 34.5 $ 764.4 $ (2.7) $ 29.2 $ (4,584.5) $ (3,759.1) Three Months Ended September 30, 2021 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at June 30, 2021, net of tax $ (6.2) $ (220.8) $ 0.4 $ 43.6 $ (1,022.0) $ (1,205.0) Other comprehensive earnings (loss) before reclassifications, before tax 20.9 168.4 (0.1) 0.5 (407.4) (217.7) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (10.2) (10.2) (10.2) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 1.1 1.1 1.1 Amortization of prior service costs included in SG&A (0.1) (0.1) Amortization of actuarial loss included in SG&A 0.4 0.4 Net other comprehensive earnings (loss), before tax 11.8 168.4 (0.1) 0.8 (407.4) (226.5) Income tax provision (benefit) 2.9 38.0 — (0.5) — 40.4 Balance at September 30, 2021, net of tax $ 2.7 $ (90.4) $ 0.3 $ 44.9 $ (1,429.4) $ (1,471.9) Nine Months Ended September 30, 2021 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2020, net of tax $ (18.0) $ (353.6) $ 1.2 $ (26.1) $ (461.5) $ (858.0) Other comprehensive earnings (loss) before reclassifications, before tax 44.2 318.4 (0.8) 73.3 (967.9) (532.8) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (19.9) (19.9) (19.9) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 3.2 3.2 3.2 Amortization of prior service costs included in SG&A (0.4) (0.4) Amortization of actuarial loss included in SG&A 1.2 1.2 Net other comprehensive earnings (loss), before tax 27.5 318.4 (0.8) 74.1 (967.9) (548.7) Income tax provision 6.8 55.2 0.1 3.1 — 65.2 Balance at September 30, 2021, net of tax $ 2.7 $ (90.4) $ 0.3 $ 44.9 $ (1,429.4) $ (1,471.9) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Information to Total Consolidated Information | Presented in the table below is segment information for the periods identified and a reconciliation of segment information to total consolidated information. Net Sales Segment Profitability Three Months Ended September 30, Three Months Ended September 30, (In millions) 2022 2021 2022 2021 Reportable Segments: Developed Markets $ 2,431.5 $ 2,655.9 $ 1,236.3 $ 1,302.7 Greater China 574.0 566.8 403.5 352.5 JANZ 383.0 505.3 163.6 216.7 Emerging Markets 678.9 792.5 330.5 362.5 Total reportable segments $ 4,067.4 $ 4,520.5 $ 2,133.9 $ 2,234.4 Reconciling items: Intangible asset amortization expense (615.9) (671.5) Globally managed research and development costs (174.9) (152.1) Litigation settlements & other contingencies 3.9 (9.4) Transaction related and other special items (239.1) (569.8) Corporate and other unallocated (547.8) (474.0) Earnings from operations $ 560.1 $ 357.6 Net Sales Segment Profitability Nine Months Ended September 30, Nine Months Ended September 30, (In millions) 2022 2021 2022 2021 Reportable Segments: Developed Markets $ 7,386.7 $ 7,867.9 $ 3,703.1 $ 3,908.0 Greater China 1,695.4 1,709.0 1,214.0 1,123.9 JANZ 1,233.9 1,488.2 496.0 586.3 Emerging Markets 2,035.0 2,417.2 976.8 1,084.5 Total reportable segments $ 12,351.0 $ 13,482.3 $ 6,389.9 $ 6,702.7 Reconciling items: Intangible asset amortization expense (1,898.1) (2,037.5) Intangible asset impairment charges — (83.4) Globally managed research and development costs (479.8) (483.9) Litigation settlements & other contingencies (13.2) (55.3) Transaction related and other special items (651.8) (2,483.9) Corporate and other unallocated (1,530.8) (1,515.1) Earnings from operations $ 1,816.2 $ 43.6 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring - employee related | The following table summarizes the restructuring charges and the reserve activity for the 2020 restructuring program from December 31, 2021 to September 30, 2022: (In millions) Employee Related Costs Other Exit Costs Total Balance at December 31, 2021: $ 292.6 $ 4.1 $ 296.7 Charges (1) 7.3 9.5 16.8 Cash payment (77.6) (6.2) (83.8) Utilization — (4.2) (4.2) Foreign currency translation (2.1) (0.1) (2.2) Balance at March 31, 2022: $ 220.2 $ 3.1 $ 223.3 Charges (1) 4.0 5.8 9.8 Cash payment (36.9) (2.3) (39.2) Utilization — (3.9) (3.9) Foreign currency translation (3.6) (0.1) (3.7) Balance at June 30, 2022: $ 183.7 $ 2.6 $ 186.3 Charges (1) 0.9 14.0 14.9 Cash payment (24.6) (3.1) (27.7) Utilization — (11.1) (11.1) Foreign currency translation (3.2) (0.1) (3.3) Balance at September 30, 2022: $ 156.8 $ 2.3 $ 159.1 ____________ (1) For the three months ended September 30, 2022, total restructuring charges in Developed Markets, Emerging Markets, Greater China, JANZ and Corporate/Other were approximately $14.2 million, $0.1 million, $0.4 million, $0.1 million, and $0.1 million, respectively. For the nine months ended September 30, 2022, total restructuring charges in Developed Markets, Emerging Markets, Greater China, JANZ, and Corporate/Other were approximately $34.5 million, $3.8 million, $2.5 million, $0.4 million, and $0.3 million, respectively. |
General (Details)
General (Details) - TURKEY - Unusual or Infrequent Item, or Both | 9 Months Ended |
Sep. 30, 2022 | |
Unusual Risk or Uncertainty [Line Items] | |
Percent Of Net Sales Impacted, High Inflationary Economy | 1% |
Percent Of Total Assets Impacted, High Inflationary Economy | 1% |
Revenue Recognition and Accou_3
Revenue Recognition and Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended |
Jun. 30, 2022 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Proceeds from sale and collection of receivables | $ 29.6 | $ 42.1 |
Revenue Recognition and Accou_4
Revenue Recognition and Accounts Receivable Revenue Disaggregation (Table) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,067.4 | $ 4,520.5 | $ 12,351 | $ 13,482.3 |
Brands | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,540.3 | 2,803.1 | 7,577.5 | 8,229.4 |
Complex GX and Biosimilars | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 320.2 | 332 | 1,065.8 | 993.7 |
Generics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,206.9 | 1,385.4 | 3,707.7 | 4,259.2 |
Lipitor | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 420.4 | 410 | 1,266.1 | 1,272.9 |
Norvasc | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 189.3 | 198.4 | 600.1 | 635.9 |
Lyrica ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 156.5 | 175.6 | 483.9 | 555.9 |
Viagra ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 117 | 138 | 361.9 | 412.4 |
EpiPen® Auto-Injectors | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 114.4 | 129.5 | 309.7 | 337.3 |
Celebrex ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 82.2 | 86 | 253.4 | 257.3 |
Effexor ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 64.2 | 79.5 | 215.4 | 239.6 |
Zoloft ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 53.1 | 61.3 | 188.7 | 208.8 |
Creon ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 76.4 | 81.1 | 226.5 | 231.7 |
Xalabrands | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 51 | 55.8 | 146.7 | 172 |
Amitiza ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 39.4 | 49.5 | 125.3 | 147.5 |
Xanax ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 38.3 | 47.6 | 115.5 | 141.5 |
Dymista ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 38.6 | 35 | 138 | 129.9 |
Yupelri ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 53.4 | 39.4 | 146.1 | 118.1 |
Influvac ® | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 159.3 | 161.2 | 178.3 | 165.3 |
Developed Markets | Brands | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,327.7 | 1,522.7 | 3,931.8 | 4,350.5 |
Developed Markets | Complex GX and Biosimilars | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 295 | 305.1 | 986.1 | 926.4 |
Developed Markets | Generics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 808.8 | 828.1 | 2,468.8 | 2,591 |
Greater China | Brands | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 571.9 | 566.8 | 1,687.9 | 1,706.9 |
Greater China | Complex GX and Biosimilars | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0.2 | 0 | 0.5 | 0 |
Greater China | Generics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1.9 | 0 | 2.1 | |
JANZ | Brands | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 211.6 | 299.1 | 703.7 | 878.5 |
JANZ | Complex GX and Biosimilars | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 10.9 | 13.2 | 33.3 | 31.9 |
JANZ | Generics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 160.5 | 193 | 496.9 | 577.8 |
Emerging Markets | Brands | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 429.1 | 414.5 | 1,254.1 | 1,293.5 |
Emerging Markets | Complex GX and Biosimilars | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14.1 | 13.7 | 45.9 | 35.4 |
Emerging Markets | Generics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 235.7 | 364.3 | 735 | 1,088.3 |
Operating Segment | Developed Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,431.5 | 2,655.9 | 7,386.7 | 7,867.9 |
Operating Segment | Greater China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 574 | 566.8 | 1,695.4 | 1,709 |
Operating Segment | JANZ | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 383 | 505.3 | 1,233.9 | 1,488.2 |
Operating Segment | Emerging Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 678.9 | $ 792.5 | $ 2,035 | $ 2,417.2 |
Revenue Recognition and Accou_5
Revenue Recognition and Accounts Receivable Variable Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Gross sales | $ 6,862.9 | $ 7,739.5 | $ 21,069.9 | $ 23,058.8 |
Chargebacks | (1,553.1) | (1,439.3) | (4,731.5) | (4,112.1) |
Rebates, promotional programs and other sales allowances | (1,021.8) | (1,521.6) | (3,303) | (4,656.7) |
Returns | (73.4) | (87.9) | (238.7) | (289.2) |
Medicaid and other governmental rebates | (147.2) | (170.2) | (445.7) | (518.5) |
Sales Revenue, Gross to net adjustments | (2,795.5) | (3,219) | (8,718.9) | (9,576.5) |
Net sales | $ 4,067.4 | $ 4,520.5 | $ 12,351 | $ 13,482.3 |
Revenue Recognition and Accou_6
Revenue Recognition and Accounts Receivable (Accounts Receivable, Net) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Revenue Recognition And Accounts Receivable [Line Items] | ||
Trade receivables, net | $ 2,829.8 | $ 3,774.4 |
Other receivables | 504.1 | 492 |
Accounts receivable, net | 3,333.9 | 4,266.4 |
Variable Consideration | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Trade receivables, net | 1,788.4 | 1,688.6 |
Other receivables | 837.2 | 1,362.1 |
Accounts receivable, net | $ 2,625.6 | $ 3,050.7 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements Recent Accounting Pronouncements (Impact of Adoption - ASU 2014-09) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cost of sales | $ 2,329.8 | $ 2,962.5 | $ 7,163.8 | $ 9,515.6 | ||
Income tax provision (benefit) | 73.2 | (111.6) | 276.9 | 544.8 | ||
Net earnings (loss) attributable to Viatris Inc. common shareholders | 354.3 | 311.5 | 1,067.4 | (1,005.3) | ||
Revenues | 4,078.2 | $ 4,536.6 | 12,386.7 | $ 13,544.7 | ||
Prepaid expenses and other current assets | 1,700.4 | 1,700.4 | $ 1,957.6 | |||
Income taxes payable | 106.7 | 106.7 | 236.9 | |||
Retained earnings | 4,312.5 | 4,312.5 | 3,688.8 | |||
Accumulated other comprehensive loss | (3,759.1) | (3,759.1) | $ (2,899.2) | $ (1,744.3) | ||
Retained Earnings [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net earnings (loss) attributable to Viatris Inc. common shareholders | $ 354.3 | $ 1,067.4 |
Share-Based Incentive Plan (Nar
Share-Based Incentive Plan (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Nov. 16, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option award expiration period, in years | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,589,356 | 5,576,490 | ||
Long-Term Incentive Plan 2003 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 6,757,640 | |||
Total unrecognized compensation expense, net of estimated forfeitures | $ 206.7 | |||
Weighted-average period over which total unrecognized compensation expense expected to be recognized, in years | 1 year 7 months 6 days | |||
Intrinsic value of stock-based awards exercised and restricted stock units converted | $ 39.6 | $ 75.6 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 13,535,627 | |||
Long-Term Incentive Plan 2003 | Stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Average remaining contractual term for stock awards outstanding, in years | 4 years 3 months 18 days | |||
Average remaining contractual term for stock awards vested and expected to vest, in years | 4 years 3 months 18 days | |||
Average remaining contractual term for stock awards exercisable, in years | 4 years 1 month 6 days | |||
Long-Term Incentive Plan 2003 | Stock awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option award vesting period, in years | 3 years | |||
Long-Term Incentive Plan 2003 | Stock awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option award vesting period, in years | 4 years | |||
2020 Stock Incentive Plan and 2003 Long-Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Ordinary shares reserved for issuance | 72,500,000 |
Share-Based Incentive Plan (Sto
Share-Based Incentive Plan (Stock Awards) (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Number of Shares Under Stock Awards | |
Outstanding at December 31, 2021 | shares | 5,576,490 |
Forfeited | shares | (987,134) |
Outstanding at September 30, 2022 | shares | 4,589,356 |
Vested and expected to vest at September 30, 2022 | shares | 4,547,686 |
Exercisable at September 30, 2022 | shares | 4,340,604 |
Weighted Average Exercise Price per Share | |
Outstanding at December 31, 2021 | $ / shares | $ 37.19 |
Forfeited | $ / shares | 31.37 |
Outstanding at September 30, 2022 | $ / shares | 38.44 |
Vested and expected to vest at September 30, 2022 | $ / shares | 38.62 |
Exercisable at September 30, 2022 | $ / shares | $ 39.57 |
Share-Based Incentive Plan (Non
Share-Based Incentive Plan (Nonvested Restricted Stock, Restricted Stock Units and PSUs Activity) (Details) - Restricted stock awards | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of restricted stock awards, nonvested beginning of period | shares | 16,858,128 |
Weighted average grant-date fair value per share, nonvested beginning of period | $ / shares | $ 15.12 |
Number of restricted stock awards, granted | shares | 16,868,245 |
Weighted average grant-date fair value per share, granted | $ / shares | $ 10.20 |
Number of restricted stock awards, released | shares | (3,607,011) |
Weighted average grant-date fair value per share, released | $ / shares | $ 17.90 |
Number of restricted stock awards, forfeited | shares | (1,045,664) |
Weighted average grant-date fair value per share, forfeited | $ / shares | $ 12.64 |
Number of restricted stock awards, nonvested end of period | shares | 29,073,698 |
Weighted average grant-date fair value per share, nonvested end of period | $ / shares | $ 11.99 |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Net Periodic Benefit Costs) (Details) - Pension and other postretirement benefits - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 9.5 | $ 10.8 | $ 28.5 | $ 32.5 |
Interest cost | 10.3 | 8.5 | 31.1 | 25.7 |
Expected return on plan assets | (16.5) | (16.6) | (49.7) | (49.8) |
Amortization of prior service costs | 0.1 | (0.1) | 0.2 | (0.4) |
Recognized net actuarial losses | 0 | (0.4) | (0.1) | (1.2) |
Recognized net actuarial losses | 0 | 0 | 0 | (3.1) |
Net periodic benefit cost | $ 3.4 | $ 3 | $ 10.2 | $ 6.1 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plans, estimated benefit payments, in current fiscal year | $ 118 |
Estimated employer contributions in current year | $ 52 |
Balance Sheet Components (Cash,
Balance Sheet Components (Cash, cash equivalents, and restricted cash) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 646.7 | $ 701.2 | $ 756.6 | |
Restricted cash | 3.7 | 5 | 5.1 | |
Cash, cash equivalents and restricted cash | $ 650.4 | $ 706.2 | $ 761.7 | $ 850 |
Balance Sheet Components (Inven
Balance Sheet Components (Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Balance Sheet Components [Abstract] | ||
Raw materials | $ 781.8 | $ 922.4 |
Work in process | 824.6 | 993.3 |
Finished goods | 1,774 | 2,062 |
Inventories | $ 3,380.4 | $ 3,977.7 |
Balance Sheet Components (Prepa
Balance Sheet Components (Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Prepaid expenses | $ 237.1 | $ 256.7 |
Fair value of financial instruments | 256.8 | 144.6 |
Equity securities | 39.8 | 51 |
Other current assets | 1,132.2 | 1,467.1 |
Prepaid expenses and other current assets | 1,700.4 | 1,957.6 |
Available-for-sale fixed income investments | ||
Property, Plant and Equipment [Line Items] | ||
Available-for-sale securities | $ 34.5 | $ 38.2 |
Balance Sheet Components (Prope
Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,018.6 | $ 5,589.1 |
Accumulated depreciation | 1,979.6 | 2,400.5 |
Property, plant and equipment, net | 3,039 | 3,188.6 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,840.9 | 3,054 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,500.5 | 1,808.5 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 545.2 | 588.7 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 132 | $ 137.9 |
Balance Sheet Components (Other
Balance Sheet Components (Other Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other Assets, Noncurrent [Abstract] | ||
Operating lease right-of-use assets | $ 264.2 | $ 290.8 |
Other long-term assets | 699.7 | 879.9 |
Other assets | $ 963.9 | $ 1,170.7 |
Balance Sheet Components (Trade
Balance Sheet Components (Trade Accounts Payable) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Payable, Current [Abstract] | ||
Trade accounts payable | $ 791.2 | $ 1,056.1 |
Other payables | 519.3 | 601.3 |
Accounts payable | $ 1,310.5 | $ 1,657.4 |
Balance Sheet Components (Oth_2
Balance Sheet Components (Other Current Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of other current liabilities [Line Items] | ||
Other receivables | $ 504.1 | $ 492 |
Legal and professional accruals, including litigation accruals | 397.4 | 715.6 |
Payroll and employee benefit liabilities | 631.9 | 741.9 |
Contingent consideration | 163.3 | 199.7 |
Restructuring | 109.1 | 233.5 |
Accrued interest | 210.2 | 86.6 |
Equity method investments, clean energy investments | 3,504.7 | 4,619.6 |
Fair value of financial instruments | 157.3 | 61 |
Operating lease liability | 85.2 | 86.7 |
Other | 1,001.4 | 1,254.6 |
Clean energy investments | ||
Schedule of other current liabilities [Line Items] | ||
Equity method investments, clean energy investments | 4.3 | 10.9 |
Other Current Liabilities | ||
Schedule of other current liabilities [Line Items] | ||
Contingent consideration | 70.7 | 66.7 |
Variable Consideration | ||
Schedule of other current liabilities [Line Items] | ||
Other receivables | $ 837.2 | $ 1,362.1 |
Balance Sheet Components (Oth_3
Balance Sheet Components (Other Long-term Obligations) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Other Noncurrent Liabilities [Line Items] | ||
Employee benefit liabilities | $ 805.8 | $ 876.4 |
Contingent consideration | 163.3 | 199.7 |
Tax related items, including contingencies | 396.1 | 426.1 |
Operating Lease, Liability, Noncurrent | 179.3 | 200.9 |
Restructuring Reserve, Noncurrent | 51 | 64.3 |
Other | 220.3 | 232.9 |
Other long-term obligations | 1,745.1 | 1,933.6 |
Other long-term obligations | ||
Schedule of Other Noncurrent Liabilities [Line Items] | ||
Contingent consideration | $ 92.6 | $ 133 |
Balance Sheet Components - Asse
Balance Sheet Components - Assets and Liabilities Held For Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue of biosimilars portfolio | $ 185.3 | $ 521.3 | ||
Liabilities held for sale | 335.3 | 335.3 | $ 0 | |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Biocon Biologics | Biosimilars Portfolio | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Accounts receivable, net | 159.5 | 159.5 | ||
Inventories | 163.2 | 163.2 | ||
Prepaid expenses and other current assets | 27 | 27 | ||
Intangible assets, net | 59.8 | 59.8 | ||
Goodwill | 911.8 | 911.8 | ||
Other assets | 105.1 | 105.1 | ||
Accounts payable | 131.2 | 131.2 | ||
Accounts payable | 202.1 | 202.1 | ||
Disposal Group, Including Discontinued Operation, Other Liabilities, Noncurrent | $ 2 | $ 2 | ||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Scenario, Forecast | Biocon Biologics | Biosimilars Portfolio | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Upfront payment subject to certain adjustments | $ 2,000 | |||
Percent ownership after transaction | 12.90% | |||
Additional cash payments to be received | $ 335 | |||
Term of transition services agreement | 2 years |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments summarized financial data basis | 100% | ||
Loss from equity method investments | $ 17.6 | $ 0 | $ 52.2 |
Clean energy investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of equity method investments | 3 |
Equity Method Investments (Inco
Equity Method Investments (Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 4,078.2 | $ 4,536.6 | $ 12,386.7 | $ 13,544.7 |
Gross loss | 1,748.4 | 1,574.1 | 5,222.9 | 4,029.1 |
Operating and non-operating expense | $ 427.5 | 199.9 | $ 1,344.3 | (460.5) |
Consolidated Entity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 94 | 293.5 | ||
Gross loss | (1.3) | (3.9) | ||
Operating and non-operating expense | 4.8 | 13.7 | ||
Net loss | $ (6.1) | $ (17.6) |
Earnings (Loss) per Ordinary _3
Earnings (Loss) per Ordinary Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Nov. 04, 2022 | Mar. 16, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Feb. 28, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Diluted (in USD per share) | $ 0.29 | $ 0.26 | $ 0.88 | $ (0.83) | |||
Anti-dilutive stock options or restricted stock awards excluded from computation of earnings per share | 14.7 | 11.4 | 13.3 | 10.8 | |||
Dividends paid (in dollars per share) | $ 0.12 | ||||||
Dividends declared (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.36 | $ 0.22 | |||
Share repurchase program, authorized amount | $ 1,000 | ||||||
Subsequent Event | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Dividends declared (in dollars per share) | $ 0.12 | ||||||
Dividends payable (in dollars per share) | $ 0.12 |
Earnings (Loss) per Ordinary _4
Earnings (Loss) per Ordinary Share (Basic and Diluted Earnings Per Ordinary Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net earnings (loss) attributable to Viatris Inc. common shareholders | $ 354.3 | $ 311.5 | $ 1,067.4 | $ (1,005.3) |
Weighted average shares outstanding | 1,212.5 | 1,209.3 | 1,211.8 | 1,208.6 |
Weighted average number diluted shares outstanding adjustment, stock-based awards and warrants | 5.6 | 3.3 | 4.3 | 0 |
Total dilutive shares outstanding | 1,218.1 | 1,212.6 | 1,216.1 | 1,208.6 |
Basic earnings (loss) per share attributable to Viatris Inc. shareholders | $ 0.29 | $ 0.26 | $ 0.88 | $ (0.83) |
Diluted earnings (loss) per ordinary share | $ 0.29 | $ 0.26 | $ 0.88 | $ (0.83) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
In-process research and development | $ 42.5 | $ 42.5 | $ 46.5 | |||
Contingent consideration | 163.3 | 163.3 | 199.7 | |||
Business Combination Contingent Consideration Liability Payments | (50.9) | |||||
Intangible asset impairment charges | 0 | $ 0 | 0 | $ 83.4 | ||
Goodwill | 10,054.6 | 10,054.6 | 12,113.7 | |||
Greater China | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 797 | $ 797 | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 5.30% | 5.30% | ||||
Good will, After Amortization Expense, Before Reclassification | $ 4,950 | $ 4,950 | ||||
Greater China | Measurement Input, Long-term Revenue Growth Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.005) | (0.005) | ||||
Greater China | Valuation Technique, Discounted Cash Flow | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input, Term | 10 years | |||||
Greater China | Valuation Technique, Discounted Cash Flow | Measurement Input, Long-term Revenue Growth Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.095) | (0.095) | ||||
Greater China | Valuation Technique, Discounted Cash Flow | Measurement Input, Terminal Year Revenue Growth Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.010) | (0.010) | ||||
Greater China | Valuation Technique, Discounted Cash Flow | Measurement Input, Estimated Tax Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.153) | (0.153) | ||||
Greater China | Valuation Technique, Discounted Cash Flow | Measurement Input, Control Premium | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.150) | (0.150) | ||||
Greater China | Valuation Technique, Discounted Cash Flow | Measurement Input, Reduction in Terminal Year Revenue Growth Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | 0.030 | 0.030 | ||||
Greater China | Valuation Technique, Discounted Cash Flow | Measurement Input, Increase in Discount Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.015) | (0.015) | ||||
North America Segment | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Good will, After Amortization Expense, Before Reclassification | $ 3,610 | $ 3,610 | ||||
Emerging Markets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | 1,428.2 | 1,428.2 | 1,644.5 | |||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 816 | $ 816 | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 10.30% | 10.30% | ||||
Good will, After Amortization Expense, Before Reclassification | $ 1,640 | $ 1,640 | ||||
Emerging Markets | Valuation Technique, Discounted Cash Flow | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input, Term | 10 years | |||||
Emerging Markets | Valuation Technique, Discounted Cash Flow | Measurement Input, Long-term Revenue Growth Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.016) | (0.016) | ||||
Emerging Markets | Valuation Technique, Discounted Cash Flow | Measurement Input, Terminal Year Revenue Growth Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.008) | (0.008) | ||||
Emerging Markets | Valuation Technique, Discounted Cash Flow | Measurement Input, Estimated Tax Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.184) | (0.184) | ||||
Emerging Markets | Valuation Technique, Discounted Cash Flow | Measurement Input, EBITDA Multiple | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (7.5) | (7.5) | ||||
Emerging Markets | Valuation Technique, Discounted Cash Flow | Measurement Input, Reduction in Terminal Year Revenue Growth Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | 0.085 | 0.085 | ||||
Emerging Markets | Valuation Technique, Discounted Cash Flow | Measurement Input, Increase in Discount Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.030) | (0.030) | ||||
Emerging Markets | Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.105) | (0.105) | ||||
JANZ | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 650.7 | $ 650.7 | 776.3 | |||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 231 | $ 231 | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 7.40% | 7.40% | ||||
Good will, After Amortization Expense, Before Reclassification | $ 780 | $ 780 | ||||
JANZ | Valuation Technique, Discounted Cash Flow | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input, Term | 10 years | |||||
JANZ | Valuation Technique, Discounted Cash Flow | Measurement Input, Long-term Revenue Growth Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.048) | (0.048) | ||||
JANZ | Valuation Technique, Discounted Cash Flow | Measurement Input, Terminal Year Revenue Growth Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | 0 | 0 | ||||
JANZ | Valuation Technique, Discounted Cash Flow | Measurement Input, Estimated Tax Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.304) | (0.304) | ||||
JANZ | Valuation Technique, Discounted Cash Flow | Measurement Input, EBITDA Multiple | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (6) | (6) | ||||
JANZ | Valuation Technique, Discounted Cash Flow | Measurement Input, Control Premium | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.150) | (0.150) | ||||
JANZ | Valuation Technique, Discounted Cash Flow | Measurement Input, Reduction in Terminal Year Revenue Growth Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | 0.035 | 0.035 | ||||
JANZ | Valuation Technique, Discounted Cash Flow | Measurement Input, Increase in Discount Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.020) | (0.020) | ||||
JANZ | Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Rate | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (0.060) | (0.060) | ||||
Greater China | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 935.6 | $ 935.6 | 969.5 | |||
Good will, After Amortization Expense, Before Reclassification | $ 970 | $ 970 | ||||
Minimum | Greater China | Valuation Technique, Discounted Cash Flow | Measurement Input, EBITDA Multiple | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (7.5) | (7.5) | ||||
Maximum | Greater China | Valuation Technique, Discounted Cash Flow | Measurement Input, EBITDA Multiple | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill Impairment, Measurement Input | (8) | (8) | ||||
Other Current Liabilities | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Contingent consideration | $ 70.7 | $ 70.7 | $ 66.7 | |||
Business Combination Contingent Consideration Liability Payments | $ (50.9) | |||||
Reconciling items: | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset impairment charges | $ 83.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | $ 12,498.7 |
Accumulated impairment losses, beginning balance | (385) |
Foreign currency translation | (1,147.3) |
Goodwill, net, beginning balance | 12,113.7 |
Accumulated impairment losses, ending balance | (385) |
Goodwill, gross, ending balance | 10,439.6 |
Goodwill, net, ending balance | 10,054.6 |
Goodwill, Transfers | (911.8) |
Biocon Biologics | |
Goodwill [Roll Forward] | |
Goodwill, Transfers | 901.8 |
Developed Markets | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 9,108.4 |
Accumulated impairment losses, beginning balance | (385) |
Foreign currency translation | (956) |
Goodwill, net, beginning balance | 8,723.4 |
Accumulated impairment losses, ending balance | (385) |
Goodwill, gross, ending balance | 7,425.1 |
Goodwill, net, ending balance | 7,040.1 |
Goodwill, Transfers | (727.3) |
Greater China | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 969.5 |
Accumulated impairment losses, beginning balance | 0 |
Foreign currency translation | (31.2) |
Goodwill, net, beginning balance | 969.5 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, gross, ending balance | 935.6 |
Goodwill, net, ending balance | 935.6 |
Goodwill, Transfers | (2.7) |
JANZ | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 776.3 |
Accumulated impairment losses, beginning balance | 0 |
Foreign currency translation | (94.5) |
Goodwill, net, beginning balance | 776.3 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, gross, ending balance | 650.7 |
Goodwill, net, ending balance | 650.7 |
Goodwill, Transfers | (31.1) |
Emerging Markets | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 1,644.5 |
Accumulated impairment losses, beginning balance | 0 |
Foreign currency translation | (65.6) |
Goodwill, net, beginning balance | 1,644.5 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, gross, ending balance | 1,428.2 |
Goodwill, net, ending balance | 1,428.2 |
Goodwill, Transfers | $ (150.7) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Components of Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Intangible Assets by Major Class [Line Items] | ||||||
Intangible asset impairment charges | $ 0 | $ 0 | $ 0 | $ 83.4 | ||
Finite-lived intangible assets, original cost | 36,450.6 | 36,450.6 | $ 39,006.2 | |||
Finite-lived intangible assets, accumulated amortization | 13,479.8 | 13,479.8 | 12,918.5 | |||
Finite-lived intangible assets, net book value | 22,970.8 | 22,970.8 | 26,087.7 | |||
In-process research and development | 42.5 | 42.5 | 46.5 | |||
Intangible assets, gross, excluding goodwill | 36,493.1 | 36,493.1 | 39,052.7 | |||
Intangible assets, net book value, excluding goodwill | $ 23,013.3 | $ 23,013.3 | $ 26,134.2 | |||
Patents and technologies | ||||||
Intangible Assets by Major Class [Line Items] | ||||||
Finite-lived intangible assets, estimated useful life, in years | 15 years | 15 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible asset amortization expense | $ 615.9 | $ 671.5 | $ 1,898.1 | $ 2,037.5 |
Intangible asset impairment charges | 0 | 0 | 0 | 83.4 |
Total intangible asset amortization expense (including impairment charges) | $ 615.9 | $ 671.5 | $ 1,898.1 | $ 2,120.9 |
Goodwill and Intangibles Assets
Goodwill and Intangibles Assets (Expected Amortization Expense) (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 609 |
2023 | 2,280 |
2024 | 2,190 |
2025 | 2,097 |
2026 | $ 2,049 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) € in Millions, ¥ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Sep. 30, 2022 JPY (¥) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 JPY (¥) | Dec. 31, 2021 USD ($) | |
Derivative [Line Items] | ||||||||
Proceeds from sale of terminated interest rate swaps | $ | $ 45 | |||||||
Pre-tax net losses on cash flow hedges to be reclassified from AOCE into earnings in next twelve months | $ | $ 53 | |||||||
2020 Euro Senior Notes | ||||||||
Derivative [Line Items] | ||||||||
Long-term debt | $ | $ 276.4 | $ 347.6 | ||||||
YEN Term Loan | ||||||||
Derivative [Line Items] | ||||||||
Long-term debt | $ | $ 276.4 | |||||||
Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | € 5,100 | ¥ 40,000 | € 5,850 | ¥ 40,000 | ||||
Long-term debt | 5,850 | 40,000 | ||||||
Net Investment Hedging | 2024 Euro Senior Notes | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | 1,000 | 1,000 | ||||||
Long-term debt | 1,000 | |||||||
Net Investment Hedging | 2028 Euro Senior Notes | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | 750 | 750 | ||||||
Long-term debt | 750 | |||||||
Net Investment Hedging | 2.125% Euro Senior Notes due 2025 | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | 500 | 500 | ||||||
Long-term debt | 500 | |||||||
Net Investment Hedging | 2022 Euro Senior Notes | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | 0 | 750 | ||||||
Long-term debt | 750 | |||||||
Net Investment Hedging | 2024 Euro Senior Notes, 1.023% | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | 750 | 750 | ||||||
Long-term debt | 750 | |||||||
Net Investment Hedging | 2027 Euro Senior Notes | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | 850 | 850 | ||||||
Long-term debt | 850 | |||||||
Net Investment Hedging | 2032 Euro Senior Notes | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | 1,250 | € 1,250 | ||||||
Long-term debt | € 1,250 | |||||||
Net Investment Hedging | YEN Term Loan | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | ¥ | 40,000 | ¥ 40,000 | ||||||
Long-term debt | ¥ | ¥ 40,000 | |||||||
Measurement Input, Discount Rate | Contingent consideration | Minimum | ||||||||
Derivative [Line Items] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.080 | 0.080 | 0.080 | |||||
Measurement Input, Discount Rate | Contingent consideration | Maximum | ||||||||
Derivative [Line Items] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.090 | 0.090 | 0.090 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Effect of Derivative Instruments on the Condensed Consolidated Balance Sheets Fair Value of Derivative Instruments Derivatives Designated As Hedging Instruments) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | $ 256.8 | $ 144.6 |
Fair value of financial instruments | $ 157.3 | 61 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the classification and fair values of derivative instruments in our condensed consolidated balance sheets: Asset Derivatives Liability Derivatives (In millions) Balance Sheet Location September 30, 2022 Fair Value December 31, 2021 Fair Value Balance Sheet Location September 30, 2022 Fair Value December 31, 2021 Fair Value Derivatives designated as hedges: Foreign currency forward contracts Prepaid expenses & other current assets $ 99.9 $ 62.0 Other current liabilities $ 18.4 $ 4.3 Total derivatives designated as hedges 99.9 62.0 18.4 4.3 Derivatives not designated as hedges: Foreign currency forward contracts Prepaid expenses & other current assets 156.9 82.6 Other current liabilities 138.9 56.7 Total derivatives not designated as hedges 156.9 82.6 138.9 56.7 Total derivatives $ 256.8 $ 144.6 $ 157.3 $ 61.0 | |
Fair value of financial instruments | $ 99.9 | 62 |
Fair value of financial instruments | 18.4 | 4.3 |
Designated as Hedging Instrument | Prepaid expenses and other current assets | Foreign exchange forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 99.9 | 62 |
Designated as Hedging Instrument | Other Current Liabilities | Foreign exchange forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 18.4 | 4.3 |
Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 156.9 | 82.6 |
Fair value of financial instruments | 138.9 | 56.7 |
Not Designated as Hedging Instruments | Prepaid expenses and other current assets | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 156.9 | 82.6 |
Not Designated as Hedging Instruments | Other Current Liabilities | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | $ 138.9 | $ 56.7 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Effect of Derivative Instruments on the Condensed Consolidated Balance Sheets Fair Values of Derivative Instruments Derivatives Not Designated As Hedging Instrument) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | $ 256.8 | $ 144.6 |
Fair value of financial instruments | 157.3 | 61 |
Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 156.9 | 82.6 |
Fair value of financial instruments | 138.9 | 56.7 |
Not Designated as Hedging Instruments | Prepaid expenses and other current assets | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 156.9 | 82.6 |
Not Designated as Hedging Instruments | Other current liabilities | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | $ 138.9 | $ 56.7 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Effect Of Derivative Instruments on the Condensed Consolidated Statements of Operations Derivatives in Fair Value Hedging Relationships) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | $ (82.7) | $ 37.6 | $ (7.9) | $ 58.3 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management (Effect Of Derivative Instruments on the Condensed Consolidated Statements of Operations Derivatives in Cash Flow Hedging Relationships) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 31 | $ 9.1 | $ 71.1 | $ 16.7 |
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (82.7) | 37.6 | (7.9) | 58.3 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 327.3 | 145.1 | 823.3 | 359.3 |
Foreign currency forward contracts | Other expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (82.7) | 37.6 | $ (7.9) | $ 58.3 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | ||
Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues | ||
Cash Flow Hedging | Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 32.2 | 10.2 | $ 74.5 | $ 19.9 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | $ 35.3 | $ 15.5 | 78.1 | 32.4 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues | ||
Cash Flow Hedging | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (1.2) | $ (1.1) | (3.4) | (3.2) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | $ (0.9) | $ (0.8) | (2.6) | (2.5) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | ||
Net Investment Hedging | Foreign currency forward contracts | Gains and Losses on Derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ 292.9 | $ 130.4 | $ 747.8 | $ 329.4 |
Financial Instruments and Ris_8
Financial Instruments and Risk Management (Effect Of Derivative Instruments on the Condensed Consolidated Statements of Operations, Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Foreign currency forward contracts | Other expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (82.7) | $ 37.6 | $ (7.9) | $ 58.3 |
Financial Instruments and Ris_9
Financial Instruments and Risk Management (Financial Assets and Liabilities Carried at Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 39.8 | $ 51 |
Fair value of financial instruments | 256.8 | 144.6 |
Available-for-sale fixed income investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 34.5 | 38.2 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 140 | 50.9 |
Equity securities | 39.8 | 51 |
Total assets at recurring fair value measurement | 179.8 | 101.9 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 140 | 50.9 |
Level 1 | Exchange traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 39.6 | 50.3 |
Level 1 | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0.2 | 0.7 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at recurring fair value measurement | 291.3 | 182.8 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 157.3 | 61 |
Level 2 | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivative assets | 256.8 | 144.6 |
Foreign exchange derivative liabilities | 157.3 | 61 |
Level 2 | Available-for-sale fixed income investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 34.5 | 38.2 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 15.1 | 16.6 |
Level 2 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 11.9 | 14.6 |
Level 2 | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3.7 | 2 |
Level 2 | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3.4 | 4.6 |
Level 2 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0.4 | 0.4 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 163.3 | 199.7 |
Level 3 | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Liabilities, Fair Value Disclosure | 163.3 | |
Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial instruments | $ 99.9 | $ 62 |
Financial Instruments and Ri_10
Financial Instruments and Risk Management (Rollforward of Contingent Consideration) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Schedule of Activity in Contingent Consideration [Roll Forward] | |
Balance at beginning of period | $ 199.7 |
Payments | 50.9 |
Reclassifications | 0 |
Accretion expense | 5.4 |
Fair value loss | 9.1 |
Balance at end of period | 163.3 |
Other Current Liabilities | |
Schedule of Activity in Contingent Consideration [Roll Forward] | |
Balance at beginning of period | 66.7 |
Payments | 50.9 |
Reclassifications | 54.9 |
Accretion expense | 0 |
Fair value loss | 0 |
Balance at end of period | 70.7 |
Other long-term obligations | |
Schedule of Activity in Contingent Consideration [Roll Forward] | |
Balance at beginning of period | 133 |
Payments | 0 |
Reclassifications | (54.9) |
Accretion expense | 5.4 |
Fair value loss | 9.1 |
Balance at end of period | $ 92.6 |
Debt (Receivables, Securitizati
Debt (Receivables, Securitization Facility and Commercial Paper) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 500.4 | $ 1,493 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 300.4 | 1,173.4 |
Receivables Facility | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 0 | 318.5 |
Note Securitization Facility | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 200 | 0 |
Other Current Portion of Long-term Debt | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 0 | $ 1.1 |
Receivables Facility | Revolving Credit Facility | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400 |
Debt (Summary of Long-Term Debt
Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | |||
Unamortized debt issuance expense | $ (37.1) | $ (42.3) | |
Current portion of long-term debt | 755 | 1,860.3 | |
Long-term Debt, Excluding Current Maturities | 18,724.5 | 19,717.1 | |
Proceeds from sale of terminated interest rate swaps | 45 | ||
Other Current Portion of Long-term Debt | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | $ 0.8 | 0.9 | |
2020 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 0.816% | ||
Current portion of long-term debt | $ 0 | 856.6 | |
Long-term debt | $ 276.4 | 347.6 | |
2020 Senior Notes (3.750% coupon) | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 1.125% | ||
Current portion of long-term debt | $ 0 | 1,002.9 | |
2023 Senior Notes (3.125% coupon) | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 3.125% | ||
Current portion of long-term debt | $ 754.5 | 0 | |
Other | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 1.7 | 1.9 | |
2024 Euro Senior Notes, 1.023% | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 1.023% | ||
2027 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 1.362% | ||
2027 Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 2.30% | ||
Senior Notes | 2023 Senior Notes (3.125% coupon) | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 3.125% | ||
Long-term Debt, Excluding Current Maturities | $ 0 | 766.1 | |
Senior Notes | 2023 Senior Notes (4.200% coupon) | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 4.20% | ||
Long-term Debt, Excluding Current Maturities | $ 499.7 | 499.6 | |
Senior Notes | 2024 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 2.25% | ||
Long-term Debt, Excluding Current Maturities | $ 979.4 | 1,135.8 | |
Senior Notes | 2.125% Euro Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 2.125% | ||
Long-term Debt, Excluding Current Maturities | $ 489.6 | 567.8 | |
Senior Notes | 2026 Senior Notes (3.950% coupon) | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 3.95% | ||
Long-term Debt, Excluding Current Maturities | $ 2,242.8 | 2,241.4 | |
Senior Notes | 2028 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 3.125% | ||
Long-term Debt, Excluding Current Maturities | $ 731 | 847.4 | |
Senior Notes | SeniorNotesTwoThousandTwentyEight [Member] | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 4.55% | ||
Senior Notes | 2028 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 748.9 | 748.7 | |
Senior Notes | 2043 Senior Notes (5.400% coupon) | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 5.40% | ||
Long-term Debt, Excluding Current Maturities | $ 497.4 | 497.3 | |
Senior Notes | 2046 Senior Notes (5.250% coupon) | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 5.25% | ||
Long-term Debt, Excluding Current Maturities | $ 999.9 | 999.9 | |
Senior Notes | 2048 Senior Notes (5.200%) | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 5.20% | ||
Senior Notes | 2048 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 747.8 | 747.8 | |
Senior Notes | 2024 Euro Senior Notes, 1.023% | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 746.5 | 871.6 | |
Senior Notes | 2025 Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 1.65% | ||
Long-term debt | $ 760.5 | 763.4 | |
Senior Notes | 2027 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 867.9 | 1,013 | |
Senior Notes | 2027 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 776.7 | 780.8 | |
Senior Notes | 2030 Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 2.70% | ||
Long-term debt | $ 1,514.7 | 1,520.5 | |
Senior Notes | 2032 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 1.908% | ||
Long-term debt | $ 1,326.6 | 1,546.6 | |
Senior Notes | 2040 Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 3.85% | ||
Long-term debt | $ 1,652.2 | 1,657.1 | |
Senior Notes | 2050 Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage rate | 4% | ||
Long-term debt | $ 2,201.9 | 2,205.1 | |
Current Portion of Long-Term Debt | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance expense | (0.3) | $ (0.1) | |
Line of Credit [Member] | Revolving Facility | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 700 | $ 0 |
Debt (2016 and 2018 Revolving F
Debt (2016 and 2018 Revolving Facility and 2016 Term Facility) (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 755 | $ 1,860.3 |
Debt (Fair Value) (Narrative) (
Debt (Fair Value) (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value of long-term debt | $ 14,360 | $ 22,010 |
Debt (Minimum Repayments on Out
Debt (Minimum Repayments on Outstanding Borrowings) (Details) $ in Millions | Dec. 31, 2021 USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 0 |
2023 | 1,250 |
2024 | 1,715 |
2025 | 1,240 |
2026 | 3,226 |
Thereafter | 11,493 |
Total | $ 18,924 |
Comprehensive Earnings (Accumul
Comprehensive Earnings (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net unrealized loss on marketable securities, net of tax | $ (2.7) | $ (2.1) | $ 0 |
Net unrecognized gain and prior service cost related to defined benefit plans, net of tax | 29.2 | (30.1) | 32.2 |
Foreign currency translation adjustment | (4,584.5) | (3,421.5) | (1,802.4) |
Accumulated other comprehensive loss: | (3,759.1) | (2,899.2) | (1,744.3) |
Cash Flow Hedging | Gains and Losses on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net unrecognized gain on derivatives in cash flow hedging relationships, net of tax | 34.5 | 9.2 | |
Net Investment Hedging | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net unrecognized gain on derivatives in net investment hedging relationships, net of tax | $ 764.4 | $ 471.6 | $ 16.7 |
Comprehensive Earnings (Compone
Comprehensive Earnings (Components of Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net unrealized loss on marketable securities, net of tax | $ (2.7) | $ (2.7) | $ (2.1) | $ 0 | ||||
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax | (29.2) | (29.2) | 30.1 | (32.2) | ||||
Foreign currency translation adjustment | (4,584.5) | (4,584.5) | (3,421.5) | (1,802.4) | ||||
Accumulated other comprehensive loss | (3,759.1) | (3,759.1) | (2,899.2) | (1,744.3) | ||||
Net unrealized loss on marketable securities | (0.8) | $ (0.1) | (3.5) | $ (0.8) | ||||
Sales Revenue, Goods, Net | 4,067.4 | 4,520.5 | 12,351 | 13,482.3 | ||||
Interest expense | 153.2 | 151.9 | 445.3 | 488 | ||||
Other comprehensive loss, before tax | (772.6) | (226.5) | (1,793) | (548.7) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | 1.2 | (0.8) | 3.3 | (74.1) | ||||
Income tax provision (benefit) | 73.2 | (111.6) | 276.9 | 544.8 | ||||
Cash Flow Hedging | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net unrecognized gain (loss) on derivatives | 15.7 | 33.5 | ||||||
Net Investment Hedging | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net unrecognized gain on derivatives in net investment hedging relationships, net of tax | 764.4 | 764.4 | 471.6 | 16.7 | ||||
AOCI Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | (1,471.9) | (1,471.9) | $ (1,205) | $ (858) | ||||
Other comprehensive earnings (loss) before reclassifications, before tax | (741.7) | (217.7) | (1,722.2) | (532.8) | ||||
Income tax provision (benefit) | 40.4 | 65.2 | ||||||
Gains and Losses on Derivatives | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net unrecognized gain on derivatives in cash flow hedging relationships, net of tax | 2.7 | 2.7 | (6.2) | (18) | ||||
Other comprehensive earnings (loss) before reclassifications, before tax | 20.9 | 44.2 | ||||||
Income tax provision (benefit) | 2.9 | 6.8 | ||||||
Gains and Losses on Derivatives | Cash Flow Hedging | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net unrecognized gain on derivatives in cash flow hedging relationships, net of tax | $ 22.7 | |||||||
Other comprehensive earnings (loss) before reclassifications, before tax | 46.7 | 104.6 | ||||||
Income tax provision (benefit) | 3.9 | 8.2 | ||||||
Net unrecognized gain on derivatives in cash flow hedging relationships, net of tax | 34.5 | 34.5 | $ 9.2 | |||||
Gains and Losses on Derivatives | Net Investment Hedging | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net unrecognized gain on derivatives in cash flow hedging relationships, net of tax | (90.4) | (90.4) | (220.8) | (353.6) | ||||
Other comprehensive earnings (loss) before reclassifications, before tax | 168.4 | 318.4 | ||||||
Income tax provision (benefit) | 83.9 | 38 | 214.7 | 55.2 | ||||
Gains and Losses on Marketable Securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net unrealized loss on marketable securities, net of tax | 0.3 | 0.3 | 0.4 | 1.2 | ||||
Other comprehensive earnings (loss) before reclassifications, before tax | (0.1) | (0.8) | ||||||
Income tax provision (benefit) | 0 | 0.1 | ||||||
Defined Benefit Plan Items | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax | 44.9 | 44.9 | 43.6 | (26.1) | ||||
Other comprehensive earnings (loss) before reclassifications, before tax | (1.3) | 0.5 | (3.6) | 73.3 | ||||
Income tax provision (benefit) | 0.5 | (3.1) | ||||||
Foreign Currency Translation Adjustment | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Foreign currency translation adjustment | (1,429.4) | (1,429.4) | $ (1,022) | $ (461.5) | ||||
Other comprehensive earnings (loss) before reclassifications, before tax | (1,163) | (2,782.1) | ||||||
Income tax provision (benefit) | 0 | 0 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amortization of prior service costs | 0.1 | (0.1) | 0.2 | (0.4) | ||||
Amortization of actuarial loss included in SG&A | 0.4 | 0.1 | 1.2 | |||||
Income tax provision (benefit) | 87.3 | 221.8 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Derivatives | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net unrecognized gain (loss) on derivatives | 11.8 | 27.5 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Marketable Securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Income tax provision (benefit) | (0.2) | (0.8) | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amortization of prior service costs | 0.1 | 0.4 | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | (0.8) | (74.1) | ||||||
Income tax provision (benefit) | (0.3) | (0.3) | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation Adjustment | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other comprehensive loss, before tax | (407.4) | (967.9) | ||||||
Income tax provision (benefit) | 0 | 0 | ||||||
Mylan N.V. | Net Investment Hedging | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net unrecognized gain (loss) on derivatives | 376.7 | 168.4 | 962.4 | 318.4 | ||||
Foreign currency forward contracts | Gains and Losses on Derivatives | Cash Flow Hedging | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Sales Revenue, Goods, Net | (32.2) | (74.5) | ||||||
Foreign currency forward contracts | Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Sales Revenue, Goods, Net | (32.2) | (10.2) | (74.5) | (19.9) | ||||
Foreign currency forward contracts | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Derivatives | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Sales Revenue, Goods, Net | (32.2) | (10.2) | (74.5) | (19.9) | ||||
Interest rate swaps | Gains and Losses on Derivatives | Cash Flow Hedging | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Interest expense | 1.2 | 3.4 | ||||||
Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Interest expense | 1.2 | 1.1 | 3.4 | 3.2 | ||||
Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Derivatives | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Interest expense | 1.2 | 1.1 | 3.4 | 3.2 | ||||
Pension and other postretirement benefits | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amortization of prior service costs | 0.1 | (0.1) | 0.2 | (0.4) | ||||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 0 | $ 0.4 | 0.1 | $ 1.2 | ||||
Pension and other postretirement benefits | Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Amortization of prior service costs | $ 0.1 | $ 0.2 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Segment Information To Total Consolidated Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Sales Revenue, Goods, Net | $ 4,067.4 | $ 4,520.5 | $ 12,351 | $ 13,482.3 |
Revenues | 4,078.2 | 4,536.6 | 12,386.7 | 13,544.7 |
Amortization of Intangible Assets | (615.9) | (671.5) | (1,898.1) | (2,037.5) |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | 0 | (83.4) |
Research and development | (174.9) | (152.1) | (479.8) | (483.9) |
Litigation settlements and other contingencies, net | 3.9 | (9.4) | (13.2) | (55.3) |
Earnings from operations | 560.1 | 357.6 | 1,816.2 | 43.6 |
Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Earnings from operations | 2,133.9 | 2,234.4 | 6,389.9 | 6,702.7 |
Reconciling items: | ||||
Segment Reporting Information [Line Items] | ||||
Amortization of Intangible Assets | (615.9) | (671.5) | (1,898.1) | (2,037.5) |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | (83.4) | |||
Research and development | (174.9) | (152.1) | (479.8) | (483.9) |
Litigation settlements and other contingencies, net | 3.9 | (9.4) | (13.2) | (55.3) |
Other One-Time Nonoperating Expense | (239.1) | (569.8) | (651.8) | (2,483.9) |
Corporate / Other | ||||
Segment Reporting Information [Line Items] | ||||
Corporate costs | 547.8 | 474 | 1,530.8 | 1,515.1 |
Developed Markets | Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Sales Revenue, Goods, Net | 2,431.5 | 2,655.9 | 7,386.7 | 7,867.9 |
Earnings from operations | 1,236.3 | 1,302.7 | 3,703.1 | 3,908 |
Greater China | Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Sales Revenue, Goods, Net | 574 | 566.8 | 1,695.4 | 1,709 |
Earnings from operations | 403.5 | 352.5 | 1,214 | 1,123.9 |
JANZ | Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Sales Revenue, Goods, Net | 383 | 505.3 | 1,233.9 | 1,488.2 |
Earnings from operations | 163.6 | 216.7 | 496 | 586.3 |
Emerging Markets | Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Sales Revenue, Goods, Net | 678.9 | 792.5 | 2,035 | 2,417.2 |
Earnings from operations | $ 330.5 | $ 362.5 | $ 976.8 | $ 1,084.5 |
Restructuring (Restructuring Ch
Restructuring (Restructuring Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | $ 186.3 | $ 223.3 | $ 296.7 | $ 296.7 | |
Charges | 14.9 | 9.8 | 16.8 | ||
Cash payment | (27.7) | (39.2) | (83.8) | ||
Utilization | (11.1) | (3.9) | (4.2) | ||
Foreign currency translation | (3.3) | (3.7) | (2.2) | ||
Ending Balance | 159.1 | 186.3 | 223.3 | 159.1 | |
Maximum | 2020 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Settled without Cash | 450 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges | 1,400 | ||||
Maximum | 2020 Restructuring Plan | Scenario, Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost Remaining | $ 950 | ||||
Developed Markets | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges | 14.2 | 34.5 | |||
Greater China | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges | 0.4 | 2.5 | |||
JANZ | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges | 0.1 | 0.4 | |||
Emerging Markets | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges | 0.1 | 3.8 | |||
Corporate and Other | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges | 0.1 | 0.3 | |||
Employee Related Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 183.7 | 220.2 | 292.6 | 292.6 | |
Charges | 0.9 | 4 | 7.3 | ||
Cash payment | (24.6) | (36.9) | (77.6) | ||
Utilization | 0 | 0 | 0 | ||
Foreign currency translation | (3.2) | (3.6) | (2.1) | ||
Ending Balance | 156.8 | 183.7 | 220.2 | 156.8 | |
Other Exit Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 2.6 | 3.1 | 4.1 | 4.1 | |
Charges | 14 | 5.8 | 9.5 | ||
Cash payment | (3.1) | (2.3) | (6.2) | ||
Utilization | (11.1) | (3.9) | (4.2) | ||
Foreign currency translation | (0.1) | (0.1) | (0.1) | ||
Ending Balance | $ 2.3 | $ 2.6 | $ 3.1 | $ 2.3 |
Collaboration and Licensing A_2
Collaboration and Licensing Agreements (Details) - Maximum $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Development and sales milestone payments | $ 338 |
Collaborative Arrangement | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Development and sales milestone payments | $ 10 |
Income Taxes Income Taxes Discl
Income Taxes Income Taxes Disclosure (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Reserve for Uncertain Tax Positions, Including Interest And Penalties | $ 288.2 | $ 315.6 | |
Foreign Tax Authority | Australian Taxation Office | |||
Income Tax Contingency [Line Items] | |||
Income Tax Examination, Partial Payment Of Income Tax Expense | $ 56 | $ 5.2 |
Litigation (Pricing and Medicai
Litigation (Pricing and Medicaid Litigation) (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Other current liabilities | $ 3,504.7 | $ 4,619.6 |
Litigation (MDRP Classification
Litigation (MDRP Classification of EpiPen Auto-Injector and EpiPen Jr Auto-Injector) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Other Current Liabilities | |||
Loss Contingencies [Line Items] | |||
Estimated litigation liability | $ (10) | ||
EpiPen Auto-Injector Litigation | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual | $ 264 | ||
Payments for Legal Settlements | $ 5 |
Litigation (Drug Pricing Matter
Litigation (Drug Pricing Matters) (Details) - Sep. 30, 2022 | Total | state |
Multi District Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Number of states | 46 | 46 |
Anticompetitive Conduct with Doxycycline Hyclate Delayed Release, Doxycycline Monohydrate, Glipizide-Metformin and Verapamil [Member] | ||
Loss Contingencies [Line Items] | ||
Number of states | 36 | |
Anticompetitive Conduct with Generic Drugs [Member] | ||
Loss Contingencies [Line Items] | ||
Number of states | 47 | |
Amended Anticompetitive Conduct with Generic Drugs [Member] | ||
Loss Contingencies [Line Items] | ||
Number of states | 42 |
Litigation (Product Liability)
Litigation (Product Liability) (Narrative) (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Product Liability | |
Loss Contingencies [Line Items] | |
Loss Contingency Accrual | $ 64.9 |
Litigation (Intellectual Proper
Litigation (Intellectual Property) (Narrative) (Details) - Intellectual Property $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) increase | |
Loss Contingencies [Line Items] | |
Number of times damages may be increased in cases of willful infringement | increase | 3 |
Damages to be paid | $ | $ 183 |
Litigation (Other Litigation) (
Litigation (Other Litigation) (Narrative) (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Loss Contingencies [Line Items] | |
Number of cases | 1,000 |
Other Litigation | |
Loss Contingencies [Line Items] | |
Loss Contingency Accrual | $ 32.1 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions | Nov. 07, 2022 USD ($) right $ / shares |
Oyster Point Pharma, Inc. | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Business Acquisition, Non-Transferable Contingent Value Right, Number Of Rights Per Share | right | 1 |
Business Acquisition, Percentage of Voting Interests Acquired | 50% |
Business Acquisition, Share Price | $ / shares | $ 11 |
Business Acquisition, Contingent Consideration Per Share | $ / shares | $ 2 |
Oyster Point Pharma, Inc. and Famy Life Sciences Private Limited | Minimum | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Business Combination, Price of Acquisition, Expected | $ | $ 700 |
Oyster Point Pharma, Inc. and Famy Life Sciences Private Limited | Maximum | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Business Combination, Price of Acquisition, Expected | $ | $ 750 |