Cover
Cover | 6 Months Ended |
Jun. 30, 2020 | |
Document Information [Abstract] | |
Document Type | 6-K |
Entity File Number | 001-31269 |
Document Period End Date | Jun. 30, 2020 |
Entity Registrant Name | ALCON INC. |
Entity Address, Address Line One | Chemin de Blandonnet 8 |
Entity Address, Address Line Two | 1214 Vernier |
Entity Address, City or Town | Geneva |
Entity Address, Country | CH |
Entity Central Index Key | 0001167379 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Profit or loss [abstract] | ||||
Net sales to third parties | $ 1,198 | $ 1,863 | $ 3,020 | $ 3,640 |
Other revenues | 16 | 40 | 35 | 87 |
Net sales and other revenues | 1,214 | 1,903 | 3,055 | 3,727 |
Cost of net sales | (854) | (922) | (1,806) | (1,847) |
Cost of other revenues | (15) | (34) | (32) | (81) |
Gross profit | 345 | 947 | 1,217 | 1,799 |
Selling, general & administration | (595) | (760) | (1,272) | (1,416) |
Research & development | (163) | (167) | (302) | (313) |
Other income | 9 | 6 | 18 | 18 |
Other expense | (62) | (79) | (155) | (189) |
Operating (loss) | (466) | (53) | (494) | (101) |
Interest expense | (30) | (35) | (61) | (44) |
Other financial income & expense | (6) | (8) | (16) | (16) |
(Loss) before taxes | (502) | (96) | (571) | (161) |
Taxes | 80 | (294) | 92 | (338) |
Net (loss) | $ (422) | $ (390) | $ (479) | $ (499) |
(Loss) per share | ||||
Basic (in dollars per share) | $ (0.86) | $ (0.80) | $ (0.98) | $ (1.02) |
Diluted (in dollars per share) | $ (0.86) | $ (0.80) | $ (0.98) | $ (1.02) |
Weighted average number of shares outstanding | ||||
Basic (in shares) | 489 | 488.2 | 488.8 | 488.2 |
Diluted (in shares) | 489 | 488.2 | 488.8 | 488.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Statement of comprehensive income [abstract] | |||||
Net (loss) | $ (422) | $ (390) | $ (479) | $ (499) | |
Other comprehensive income to be eventually recycled into the consolidated income statement: | |||||
Currency translation effects | 13 | 5 | (42) | 1 | |
Total of items to eventually recycle | 13 | 5 | (42) | 1 | |
Other comprehensive income never to be recycled into the consolidated income statement: | |||||
Actuarial (losses) from defined benefit plans, net of taxes | [1] | (22) | 0 | (23) | (7) |
Fair value adjustments on equity securities, net of taxes | [2] | 0 | 0 | (7) | (2) |
Total of items never to be recycled | (22) | 0 | (30) | (9) | |
Total comprehensive (loss) | $ (431) | $ (385) | $ (551) | $ (507) | |
[1] | Amounts are net of tax benefit of $5 million for the three months ended June 30, 2020 . Amounts are net of tax benefits of $7 million and $2 million for the six months ended June 30, 2020 and 2019 , respectively. | ||||
[2] | Amounts are net of tax benefits of $3 million and $5 million for the six months ended June 30, 2020 and 2019 , respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (unaudited) (parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of comprehensive income [abstract] | |||
Actuarial (losses)/gains from defined benefit plans, tax benefit | $ 5 | $ 7 | $ 2 |
Fair value adjustments on equity securities, tax benefit | $ 3 | $ 5 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Non-current assets | ||
Property, plant & equipment | $ 3,137 | $ 3,113 |
Right-of-use assets | 340 | 324 |
Goodwill | 8,905 | 8,905 |
Intangible assets other than goodwill | 9,690 | 10,231 |
Deferred tax assets | 355 | 354 |
Financial assets | 233 | 307 |
Other non-current assets | 188 | 185 |
Total non-current assets | 22,848 | 23,419 |
Current assets | ||
Inventories | 1,658 | 1,505 |
Trade receivables | 1,171 | 1,390 |
Income tax receivables | 33 | 17 |
Cash and cash equivalents | 1,324 | 822 |
Other current assets | 447 | 502 |
Total current assets | 4,633 | 4,236 |
Total assets | 27,481 | 27,655 |
Equity | ||
Share capital | 20 | 20 |
Reserves | 18,753 | 19,283 |
Total equity | 18,773 | 19,303 |
Non-current liabilities | ||
Financial debts | 3,909 | 3,218 |
Lease liabilities | 297 | 280 |
Deferred tax liabilities | 1,228 | 1,386 |
Provisions & other non-current liabilities | 1,195 | 1,168 |
Total non-current liabilities | 6,629 | 6,052 |
Current liabilities | ||
Trade payables | 781 | 833 |
Financial debts | 235 | 261 |
Lease liabilities | 64 | 61 |
Current income tax liabilities | 129 | 107 |
Provisions & other current liabilities | 870 | 1,038 |
Total current liabilities | 2,079 | 2,300 |
Total liabilities | 8,708 | 8,352 |
Total equity and liabilities | $ 27,481 | $ 27,655 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) $ in Millions | Total | Share Capital | Other Reserves | Former parent net investment | Fair value adjustments on equity securities | Actuarial (losses)/gains from defined benefit plans | Cumulative currency translation effects | Total value adjustments | |||
Total invested capital, beginning balance at Dec. 31, 2018 | $ 22,639 | $ 0 | $ 0 | $ 22,650 | $ (23) | $ (17) | $ 29 | $ (11) | |||
Net (loss) | (499) | (390) | (109) | ||||||||
Other comprehensive (loss) | (8) | (2) | (7) | 1 | (8) | ||||||
Total comprehensive (loss) | (507) | (390) | (109) | (2) | (7) | 1 | (8) | ||||
Movements of financing provided to former parent, net | (2,658) | (2,658) | |||||||||
Other transactions with former parent | (46) | (46) | |||||||||
Reclassification of deferred equity-compensation | (7) | (7) | |||||||||
Distribution by former parent of share capital | 20 | 19,812 | (19,832) | ||||||||
Equity-based compensation | 28 | 28 | |||||||||
Other movements | 3 | 1 | 2 | ||||||||
Total other movements | (2,680) | 20 | 19,841 | (22,541) | |||||||
Total invested capital, ending balance at Jun. 30, 2019 | 19,452 | 20 | 19,451 | $ 0 | (25) | (24) | 30 | (19) | |||
Total invested capital, beginning balance at Dec. 31, 2019 | 19,303 | 20 | 19,355 | (25) | (72) | 25 | (72) | [1] | |||
Net (loss) | (479) | (479) | |||||||||
Other comprehensive (loss) | (72) | (7) | (23) | (42) | (72) | [1] | |||||
Total comprehensive (loss) | (551) | (479) | (7) | (23) | (42) | (72) | [1] | ||||
Equity-based compensation | 42 | 42 | |||||||||
Other movements | (21) | [2] | 2 | [2] | (23) | (23) | |||||
Total other movements | 21 | 44 | (23) | (23) | |||||||
Total invested capital, ending balance at Jun. 30, 2020 | $ 18,773 | $ 20 | $ 18,920 | $ (32) | $ (118) | $ (17) | $ (167) | [1] | |||
[1] | "Total value adjustments" are presented net of the corresponding tax effects. | ||||||||||
[2] | Activity includes hyperinflationary accounting and an adjustment to actuarial (losses) for other post-employment benefit obligation assumption changes directly related to the Spin-off on April 9, 2019 but which was not recorded at that time. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of cash flows [abstract] | ||
Net (loss) | $ (479) | $ (499) |
Adjustments to reconcile net (loss) to net cash flows from operating activities | ||
Depreciation, amortization, impairments and fair value adjustments | 779 | 709 |
Equity-based compensation expense | 51 | 28 |
Non-cash change in provisions and other non-current liabilities | 13 | 15 |
Losses on disposal and other adjustments on property, plant & equipment and other non-current assets, net | 15 | 4 |
Interest expense | 61 | 44 |
Other financial income & expense | 16 | 16 |
Taxes | (92) | 338 |
Interest received | 4 | 1 |
Interest paid | (50) | (28) |
Other financial payments | (3) | (13) |
Taxes paid | (46) | (64) |
Net cash flows before working capital changes and net payments out of provisions and other non-current liabilities | 269 | 551 |
Net payments out of provisions and other cash movements in non-current liabilities | (58) | (68) |
Change in net current assets and other operating cash flow items | (153) | (182) |
Net cash flows from operating activities | 58 | 301 |
Purchase of property, plant & equipment | (168) | (206) |
Purchase of intangible assets | (32) | (55) |
Purchase of financial assets | (1) | (15) |
Proceeds from sales of financial assets | 0 | 1 |
Acquisition of business, net | 0 | (283) |
Net cash flows used in investing activities | (201) | (558) |
Movements of financing provided by former parent, net | 0 | (2,658) |
Proceeds from non-current financial debts, net of issuance costs | 744 | 1,745 |
Proceeds from Bridge Facility, net of issuance costs | 0 | 1,495 |
Change in current financial debts | (59) | 214 |
Lease payments | (33) | (22) |
Change in other financial receivables from former parent | 0 | 39 |
Change in other financial liabilities to former parent | 0 | (67) |
Other financing cash flows | (17) | 1 |
Net cash flows from financing activities | 635 | 747 |
Effect of exchange rate changes on cash and cash equivalents | 10 | 4 |
Net change in cash and cash equivalents | 502 | 494 |
Cash and cash equivalents at January 1 | 822 | 227 |
Cash and cash equivalents at June 30 | $ 1,324 | $ 721 |
Basis of preparation
Basis of preparation | 6 Months Ended |
Jun. 30, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of preparation | Basis of preparation These Condensed Consolidated Interim Financial Statements for Alcon Inc. ("the Company") and the subsidiaries it controls (collectively, "Alcon") have been prepared in accordance with International Accounting Standards 34, Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and the basis of preparation as described in this Note 1 and with the accounting policies as described in Note 3 to the December 31, 2019 Consolidated Financial Statements in the Company’s 2019 Form 20-F ("Form 20-F"), except for the changes to the accounting policy related to Business Combinations which was updated as of January 1, 2020, due to the adoption of amendments to International Financial Reporting Standard ("IFRS") 3, Business Combinations . The updated accounting policy is disclosed in Note 2 to these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements do not include all of the information required for a complete set of IFRS financial statements. The financial information consolidates the Company and the subsidiaries it controls, and includes selected notes to explain events and transactions that are significant to an understanding of the changes in Alcon's financial position and performance since the last annual Consolidated Financial Statements. Therefore the Condensed Consolidated Interim Financial Statements should be read in conjunction with the annual Consolidated Financial Statements for the year ended December 31, 2019, which have been prepared in accordance with IFRS as issued by the IASB. The accompanying Condensed Consolidated Interim Financial Statements present our historical financial position, results of operations, comprehensive income/(loss), and cash flows in accordance with IFRS. On February 28, 2019, Novartis AG (“Novartis” or “Former Parent”) shareholders at their Annual General Meeting approved the proposed 100% spin-off of Alcon through the distribution of a dividend-in-kind of new Alcon shares to Novartis shareholders and Novartis American Depositary Receipt (“ADR”) holders (the “Spin-off”), subject to completion of certain conditions precedent to the distribution. Amendment No. 6 to the Company's Registration Statement on Form 20-F filed with the Securities and Exchange Commission ("SEC") on March 22, 2019, ("2018 Form 20-F"), was declared effective by the SEC on that same day. On April 9, 2019 (the “Distribution Date”), the Company became an independent, publicly-traded company as a result of the Spin-off and the shares of the Company became listed on the SIX Swiss Stock Exchange ("SIX") and on the New York Stock Exchange ("NYSE") under the symbol “ALC”. Each Novartis shareholder of record as of April 8, 2019 and each holder of Novartis’ ADR of record as of April 1, 2019 received one share of Alcon common stock for every five shares of Novartis common stock or Novartis ADR held. The financial statements for periods prior to the Spin-off were derived from Novartis’ Consolidated Financial Statements and accounting records and prepared in accordance with IFRS for the preparation of carved-out combined financial statements. Through the date of the Spin-off, all revenues and costs as well as assets and liabilities directly associated with Alcon have been included in the financial statements. Prior to the Spin-off, the financial statements also included allocations of certain expenses for services provided by Novartis to Alcon and allocations of related assets, liabilities, and the Former Parent’s invested capital, as applicable. The allocations were determined on a reasonable basis; however, the amounts are not necessarily representative of the amounts that would have been reflected in the financial statements had Alcon been an entity that operated independently of Novartis during the applicable periods. Agreements entered into between Alcon and Novartis in connection with the Spin-off govern the relationship between the parties following the Spin-off and provide for the allocation of various assets, liabilities, rights and obligations. These agreements also include arrangements for transition services to be provided on a temporary basis between the parties. Following the Spin-off, the consolidated financial statements include the accounts of Alcon and no longer include any allocations from Novartis. |
Selected accounting policies
Selected accounting policies | 6 Months Ended |
Jun. 30, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Selected accounting policies | Selected accounting policies Alcon's principal accounting policies are set out in Note 3 to the Consolidated Financial Statements in the Form 20-F. The preparation of financial statements requires management to make subjective and complex judgments that affect the reported amounts. Because of the inherent uncertainties, actual outcomes and results may differ from management's assumptions and estimates. As discussed in Note 3 to the Consolidated Financial Statements in the Form 20-F, Goodwill, the Alcon brand name and acquired In-process research & development projects are reviewed for impairment at least annually and these, as well as all other investments in intangible assets, are reviewed for impairment whenever events or changes in circumstance indicate that the asset's balance sheet carrying amount may not be recoverable. Goodwill and other intangible assets represent a significant amount of total assets on the consolidated balance sheets. Impairment testing may lead to potentially significant impairment charges in the future, which could have a materially adverse impact on Alcon's results of operations and financial condition. Impact of the coronavirus (“COVID-19”) pandemic An outbreak of COVID-19 has spread globally and created significant disruption to the macro-economy. In March 2020, the World Health Organization declared COVID-19 a pandemic. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and created significant volatility and disruption of financial markets. Most major markets implemented shelter-in-place orders, business shut-downs and the deferral of non-urgent surgeries. This has had, and we believe will continue to have, an adverse effect on our net sales, operating results and cash flow. The extent to which the COVID-19 pandemic and the related economic impact may continue to affect our financial condition or results of operations is uncertain. We have analyzed the impact of the COVID-19 pandemic on our financial statements for the three and six months ended June 30, 2020 . We have assessed various accounting estimates and other matters, including those that require consideration of forecasted financial information, in context of the unknown future impacts of COVID-19 using information reasonably available to us at this time. The accounting estimates and other matters assessed include, but were not limited to, provisions for expected credit losses, goodwill and other intangible assets, financial instruments, inventory provisions, associate benefits, income taxes and revenue recognition. Based on our assessment performed, the resulting provisions recorded were not material to our Condensed Consolidated Interim Financial Statements for the three or six months ended June 30, 2020 . However, the inherent uncertainties of COVID-19 including the duration, scope, and severity of the pandemic may result in actual outcomes that differ materially from our current assumptions and estimates. Amendments to IFRS 3, Business Combinations , effective as of January 1, 2020 Effective January 1, 2020, Alcon adopted the IASB’s amendments to IFRS 3, Business Combinations . The amendments to IFRS 3 clarify the definition of a business, with the objective of assisting entities to determine whether a transaction should be accounted for as a business combination or an asset acquisition. The amendments define a business as an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or generating other income from ordinary activities. One of the key changes is the introduction of an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The introduction of the optional concentration test is a fundamental change in the determination of a business combination, applied on a transaction-by-transaction basis. Specifically, when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar assets, the set is not a business. If the initial concentration test is not met, or Alcon elects not to apply the concentration test, an assessment focusing on the existence of inputs and processes that have the ability to create outputs is required. Alcon’s adoption of the amendments to IFRS 3 applies to transactions for which the acquisition date is on or after January 1, 2020. The adoption of this amended standard on January 1, 2020 did not have a significant impact on these Condensed Consolidated Interim Financial Statements. Any future impact will depend on the facts and circumstances of future transactions and if Alcon decides to apply the optional concentration test in the assessment of whether an acquired set of activities and assets is or is not a business. Alcon has updated the following accounting policy, effective January 1, 2020, as a result of the adoption of the amendments to IFRS 3: Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary may include: • fair values of the assets transferred; • liabilities incurred to the former owners of the acquired business; • equity interests issued by Alcon Inc.; • fair value of an asset or liability resulting from a contingent consideration arrangement; and • fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the net identifiable assets acquired is recorded as goodwill, or directly in the income statement if it is a bargain purchase. Alcon primarily uses net present value techniques, utilizing post-tax cash flows and discount rates in calculating the fair value of net identifiable assets acquired when allocating the purchase consideration paid for the acquisition. The estimates in calculating fair values are highly sensitive and depend on assumptions, which include the amount and timing of projected cash flows, long-term sales forecasts, the timing and probability of regulatory and commercial success, and discount rate. Acquisition related costs are expensed as incurred. Alcon may elect on a transaction-by-transaction basis to apply the optional concentration test to assess whether a transaction qualifies as a business. Under the test, when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, Alcon will account for the transaction as an asset purchase and not a business combination. If the concentration test is not met, or Alcon elects not to apply this optional test, Alcon will perform an assessment focusing on the existence of inputs and processes that have the ability to create outputs to determine whether the transaction is an asset purchase or a business combination. There are no other IFRS standards or interpretations not yet effective that would be expected to have a material impact on Alcon. |
Significant transactions
Significant transactions | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations1 [Abstract] | |
Significant transactions | Significant transactions Significant transactions in the six months ended June 30, 2020 Series 2030 notes issuance On May 27, 2020, Alcon, through its wholly-owned subsidiary Alcon Finance Corporation (“AFC”), completed an offering of $750 million of non-current financial debt consisting of 2.600% senior notes due 2030. The senior notes are described in Note 7 of these Condensed Consolidated Interim Financial Statements. Significant transactions in 2019 Refinancing of Bridge Facility and Facility A financial debts On September 23, 2019, Alcon, through its wholly-owned subsidiary AFC, refinanced $2 billion of the bridge and term loans, which had been issued in April 2019, with $500 million of 2.750% senior notes due 2026, $1 billion of 3.000% senior notes due 2029, and $500 million of 3.800% senior notes due 2049. Completion of Spin-off from Novartis through a dividend in kind distribution to Novartis shareholders The Spin-off was executed on April 9, 2019 as described in Note 1 of these Condensed Consolidated Interim Financial Statements. The below transactions occurred in April 2019, immediately preceding the Spin-off. On April 2, 2019, Alcon borrowed $3.2 billion against the bridge and other term loans which were executed on March 6, 2019 and are described in the Form 20-F. These borrowings increased Alcon's third party financial debts to $3.5 billion at the date of the Spin-off. Through a series of intercompany transactions, Alcon then paid approximately $3.1 billion in cash to Novartis and its affiliates prior to the Spin-off, decreasing Alcon's net assets to approximately $20.0 billion at the date of the Spin-off. Surgical-Acquisition of PowerVision, Inc. On March 13, 2019, Alcon acquired 100% of the outstanding shares and equity of PowerVision, Inc. ("PowerVision"), a privately-held, US-based company focused on developing accommodative, implantable intraocular lenses. This technology allows the intraocular lens to respond to natural muscular movements in the eye to alter shape and focus. The PowerVision acquisition was executed as part of Alcon's commitment to innovation in advanced technology intraocular lenses ("AT-IOLs"). The fair value of the total purchase consideration was $424 million . This amount consisted of an initial cash payment of $289 million and the fair value of the probability-weighted contingent consideration of $135 million due to PowerVision shareholders, which they are eligible to receive upon the achievement of specified regulatory and commercialization milestones. The purchase price allocation resulted in net identifiable assets of $418 million , which consisted of in-process research & development intangible assets of $505 million , a net deferred tax liability of $93 million , and other net assets of $6 million . Goodwill of $6 million was also recognized which is attributable to the assembled workforce. Cash paid for the acquisition, net of cash acquired, was $283 million . The 2019 results of operations since the date of acquisition and transaction costs for the acquisition were not material. |
Segmentation of key figures
Segmentation of key figures | 6 Months Ended |
Jun. 30, 2020 | |
Operating Segments [Abstract] | |
Segmentation of key figures | Segmentation of key figures The segment information disclosed in these Condensed Consolidated Interim Financial Statements reflects historical results consistent with the identifiable reportable segments of Alcon and financial information that the Chief Operating Decision Maker ("CODM") reviews to evaluate segmental performance and allocate resources among the segments. The CODM is the Executive Committee of Alcon. The businesses of Alcon are divided operationally on a worldwide basis into two identified reportable segments, Surgical and Vision Care. As indicated below, certain income and expenses are not allocated to segments. Reportable segments are presented in a manner consistent with the internal reporting to the CODM. The reportable segments are managed separately due to their distinct needs and activities for research, development, manufacturing, distribution and commercial execution. The Executive Committee of Alcon is responsible for allocating resources and assessing the performance of the reportable segments. In Surgical, Alcon researches, develops, manufactures, distributes and sells ophthalmic products for cataract surgery, vitreoretinal surgery, refractive laser surgery and glaucoma surgery. The surgical portfolio also includes implantables, consumables and surgical equipment required for these procedures and supports the end-to-end procedure needs of the ophthalmic surgeon. In Vision Care, Alcon researches, develops, manufactures, distributes and sells daily disposable, reusable, and color-enhancing contact lenses and a comprehensive portfolio of ocular health products, including products for dry eye, contact lens care and ocular allergies, as well as ocular vitamins and redness relievers. Alcon also provides services, training, education and technical support for both the Surgical and Vision Care businesses. The basis of preparation described in Note 1 , and the selected accounting policies mentioned in Note 2 of these Condensed Consolidated Interim Financial Statements, are used in the reporting of segment results. The Executive Committee of Alcon evaluates segmental performance and allocates resources among the segments primarily based on net sales and segment contribution. Net identifiable assets are not assigned to the segments in the internal reporting to the CODM, and are not considered in evaluating the performance of the business segments by the Executive Committee of Alcon. Segment contribution excludes amortization and impairment charges for acquired product rights or other intangibles, general and administrative expenses for corporate activities, spin readiness and separation costs, transformation costs, fair value adjustments of contingent consideration liabilities and certain other income and expense items. General & administration (corporate) includes the costs of the Alcon corporate headquarters, including all related corporate function costs. For a portion of the historical comparative period only, the related corporate function costs were allocated to Alcon from its Former Parent. Other income and expense items excluded from segment contribution include fair value adjustments of financial assets in the form of options to acquire a company carried at fair value through profit and loss ("FVPL"), net gains and losses on fund investments and equity securities valued at FVPL, restructuring costs, legal settlements, integration related expenses and other income and expense items not attributed to a specific segment. Certain income and expense items, primarily related to fair value adjustments of contingent consideration liabilities and option rights and integration related expenses, previously included in segment contribution in the prior year period have been reclassified to conform with reporting of segment contribution to the CODM in the current period. The reclassifications resulted in an increase in Surgical and Vision Care segment contribution of $18 million and $8 million , respectively, in the three months ended June 30, 2019 and an increase in Surgical and Vision Care segment contribution of $23 million and $19 million , respectively, during the six months ended June 30, 2019. Segmentation - Consolidated income statements Three months ended June 30 , 2020 and 2019 Surgical Vision Care Company Three months ended June 30 Three months ended June 30 Three months ended June 30 ($ millions) 2020 2019 2020 2019 2020 2019 Net sales to third parties 602 1,051 596 812 1,198 1,863 Other revenues — — 16 40 16 40 Net sales and other revenue 602 1,051 612 852 1,214 1,903 Segment contribution (28 ) 235 22 143 (6 ) 378 Amortization of intangible assets (273 ) (270 ) Impairment charges on intangible assets (41 ) — General & administration (corporate) (62 ) (54 ) Separation costs (62 ) (78 ) Transformation costs (13 ) (5 ) Fair value adjustments of contingent consideration liabilities (4 ) 3 Other (5 ) (27 ) Operating (loss) (466 ) (53 ) Interest expense (30 ) (35 ) Other financial income & expense (6 ) (8 ) (Loss) before taxes (502 ) (96 ) Six months ended June 30 , 2020 and 2019 Surgical Vision Care Company Six months ended June 30 Six months ended June 30 Six months ended June 30 ($ millions) 2020 2019 2020 2019 2020 2019 Net sales to third parties 1,586 2,051 1,434 1,589 3,020 3,640 Other revenues — — 35 87 35 87 Net sales and other revenues 1,586 2,051 1,469 1,676 3,055 3,727 Segment contribution 180 463 188 301 368 764 Amortization of intangible assets (545 ) (536 ) Impairment charges on intangible assets (57 ) — General & administration (corporate) (115 ) (102 ) Separation costs (133 ) (78 ) Spin readiness costs — (72 ) Transformation costs (20 ) (5 ) Fair value adjustments of contingent consideration liabilities 40 13 Other (32 ) (85 ) Operating (loss) (494 ) (101 ) Interest expense (61 ) (44 ) Other financial income & expense (16 ) (16 ) (Loss) before taxes (571 ) (161 ) Net sales by segment Three months ended June 30 Six months ended June 30 ($ millions) 2020 2019 2020 2019 Surgical Implantables 176 300 486 585 Consumables 320 588 839 1,139 Equipment/other 106 163 261 327 Total Surgical 602 1,051 1,586 2,051 Vision Care Contact lenses 329 493 831 991 Ocular health 267 319 603 598 Total Vision Care 596 812 1,434 1,589 Net sales to third parties 1,198 1,863 3,020 3,640 Net sales by region (1) Three months ended June 30 Six months ended June 30 ($ millions unless indicated otherwise) 2020 2019 2020 2019 United States 493 41 % 779 42 % 1,285 43 % 1,516 42 % International 705 59 % 1,084 58 % 1,735 57 % 2,124 58 % Net sales to third parties 1,198 100 % 1,863 100 % 3,020 100 % 3,640 100 % (1) Net sales to third parties by location of third-party customer. |
Earnings_(Loss) per share
Earnings/(Loss) per share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings per share [abstract] | |
Earnings/(Loss) per share | Earnings/(Loss) per share As of June 30, 2020 , there were 489.1 million outstanding common shares, after the delivery of 0.8 million shares vesting under the equity incentive programs during the six months ended June 30, 2020 . No dividends have been paid through June 30, 2020 . Basic earnings/(loss) per share is computed by dividing net income/(loss) for the period by the weighted average number of common shares outstanding during the period. For the three and six months ended June 30, 2020 , the weighted average number of shares outstanding was 489.0 million and 488.8 million shares, respectively. For the three and six months ended June 30, 2019 , the weighted average number of shares outstanding was 488.2 million . The only potentially dilutive securities are the outstanding unvested equity-based awards, as described in Note 10 to these Condensed Consolidated Interim Financial Statements. Except when the effect would be anti-dilutive, the calculation of diluted earnings per common share includes the weighted average net impact of unvested equity-based awards. For the three and six months ended June 30, 2020 , 2.5 million and 2.6 million unvested equity-based awards, respectively, have been excluded from the calculation of diluted loss per share as their effect would be anti-dilutive. For the three and six months ended June 30, 2019 , 1.8 million and 0.9 million unvested equity-based awards, respectively, have been excluded from the calculation of diluted loss per share as their effect would be anti-dilutive. |
Intangible assets other than go
Intangible assets other than goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible assets other than goodwill | Intangible assets other than goodwill Intangible asset impairment charges During the three months ended June 30, 2020 , an impairment charge of $41 million was recorded for a currently marketed product cash generating unit ("CGU") within the Vision Care reportable segment due to lower expected sales. The CGU was reduced to its recoverable amount of $88 million as of June 30, 2020 . Impairments during the six months ended June 30, 2020 amounted to $57 million due to an additional $16 million impairment of a currently marketed product in the Surgical reportable segment in the first quarter of 2020. The recoverable amount of each CGU was determined based on the fair value less cost of disposal ("FVLCOD") method. FVLCOD was estimated using net present value techniques utilizing post-tax cash flows and discount rates as there are no direct or indirect observable prices in active markets for identical or similar assets. The estimates used in calculating the net present value are highly sensitive and are market participant assumptions, including cash flow projections for a five-year period based on management forecasts, sales forecasts beyond the five-year period extrapolated using long-term expected inflation rates , discount rate, and future tax rate. Since the cash flow projections are a significant unobservable input, the fair value of the CGU was classified as Level 3 in the fair value hierarchy. Actual cash flows and values could vary significantly from forecasted future cash flows and related values derived using net present value techniques. The impairments were recorded in Cost of net sales in the Condensed Consolidated Income Statements. There were no intangible asset impairments in the three or six months ended June 30, 2019 |
Non-current and current financi
Non-current and current financial debts | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Borrowings [Abstract] | |
Non-current and current financial debts | Non-current and current financial debts The below table summarizes non-current and current Financial debts outstanding as of June 30, 2020 and December 31, 2019 . ($ millions) June 30, 2020 December 31, 2019 Non-current financial debts Facility B 794 793 Facility C 391 391 Local facilities (Japan) — 55 Series 2026 notes 495 495 Series 2029 notes 991 991 Series 2030 notes 744 — Series 2049 notes 494 493 Revolving facility — — Total non-current financial debts 3,909 3,218 Current financial debts Local facilities: Japan 137 115 All others 71 101 Other short-term financial debts 26 29 Derivatives 1 16 Total current financial debts 235 261 Total financial debts 4,144 3,479 In January 2020, the $1.0 billion Revolving Facility was extended to March 2025. The Revolving Facility remained undrawn as of June 30, 2020 . Interest expense recognized for Financial debts, excluding lease liabilities, was $23 million and $46 million for the three and six months ended June 30, 2020 , respectively, and $27 million and $31 million for the three and six months ended June 30, 2019 , respectively. Series 2030 notes On May 27, 2020, AFC issued senior notes due in 2030 (“Series 2030 Notes”), which are guaranteed by the Company. The Series 2030 Notes are unsecured senior obligations of AFC issued in a private placement and rank equally in right of payment with the Series 2026, Series 2029, and Series 2049 notes. The total notional amount of the Senior 2030 Notes is $750 million . The Senior 2030 Notes were issued at 99.843% with 2.600% interest payable twice per year in May and November, beginning in November 2020. The Series 2030 Notes were issued at a discount totaling $1 million , which was recorded as a reduction to the carrying value of the Series 2030 notes and will be amortized to Interest expense over the term of the Series 2030 Notes. AFC incurred $5 million of debt issuance costs, which were recorded as a reduction to the carrying value of the Series 2030 Notes and will be amortized to Other financial income & expense over the term of the Series 2030 Notes. The Series 2030 Notes are classified as non-current and are measured at amortized cost and are reported in Financial debts in these Condensed Consolidated Interim Financial Statements. |
Financial instruments
Financial instruments | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments [Abstract] | |
Financial instruments | Financial instruments Fair value by hierarchy As required by IFRS, financial assets and liabilities recorded at fair value in the Condensed Consolidated Interim Financial Statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. There are three hierarchical levels, based on an increasing amount of judgment associated with the inputs to derive fair value for these financial assets and liabilities, which are as follows: Financial assets and liabilities carried at Level 1 fair value hierarchy are listed in active markets. Financial assets and liabilities carried at Level 2 fair value hierarchy are valued using corroborated market data. Level 1 financial assets include money market funds and deferred compensation assets. There were no financial liabilities carried at Level 1 fair value, and Level 2 financial assets and liabilities include derivative financial instruments. Investments in money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The investments are classified as Cash & cash equivalents within our Condensed Consolidated Balance Sheets. Deferred compensation investments for certain employee benefit plans are held in a rabbi trust and dedicated to pay the benefits under the associated plans but are not considered plan assets as the assets remain available to creditors of Alcon in certain events, including bankruptcy. Rabbi trust assets primarily consist of investments in mutual funds. These assets are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Level 3 inputs are unobservable for the financial asset or liability. The financial assets and liabilities generally included in Level 3 fair value hierarchy are equity securities and convertible notes receivable measured at fair value through other comprehensive income ("FVOCI"), and fund investments, options to acquire private companies, and contingent consideration liabilities measured at fair value through profit and loss ("FVPL"). The below tables summarize financial assets and liabilities measured at fair value on a recurring basis or at amortized cost or cost as of June 30, 2020 and December 31, 2019 . June 30, 2020 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 21 — 21 Long-term financial investments measured at FVPL — — 27 — 27 Long-term receivables from customers — — — 107 107 Deferred compensation assets (1) 118 — — — 118 Non-current minimum lease payments from finance lease agreements — — — 59 59 Long-term loans, advances, and security deposits — — — 19 19 Total non-current financial assets 118 — 48 185 351 Current financial assets Money market funds 795 — — — 795 Current portion of long-term financial investments measured at FVPL (2) — — 14 — 14 Current portion of long-term receivables from customers (2) — — — 116 116 Current portion of minimum lease payments from finance lease agreements (2) — — — 41 41 Other receivables, security deposits and current assets (2) — — — 127 127 VAT receivables (2) — — — 48 48 Derivative financial instruments (2) — 2 — — 2 Total current financial assets 795 2 14 332 1,143 Total financial assets at fair value and amortized cost or cost 913 2 62 517 1,494 Financial liabilities Contingent consideration liabilities — — (192 ) — (192 ) Non-current financial debt — — — (3,909 ) (3,909 ) Current financial debt — — — (234 ) (234 ) Derivative financial instruments — (1 ) — — (1 ) Total financial liabilities at fair value and amortized cost — (1 ) (192 ) (4,143 ) (4,336 ) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) Carrying amount is a reasonable approximation of fair value, with the exception of Series 2026, 2029, 2030, and 2049 notes recorded in Non-current financial debt with a fair value of $2,921 million and a carrying value of $2,724 million as of June 30, 2020 . The fair value of notes was determined using level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. December 31, 2019 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 31 — 31 Long-term financial investments measured at FVPL — — 28 — 28 Long-term receivables from customers — — — 136 136 Deferred compensation assets (1) 122 — — — 122 Non-current minimum lease payments from finance lease agreements — — — 78 78 Long-term loans, advances, and security deposits — — — 34 34 Total non-current financial assets 122 — 59 248 429 Current financial assets Money market funds 120 — — — 120 Current portion of long-term financial investments measured at FVPL (2) — — 33 — 33 Current portion of long-term receivables from customers (2) — — — 122 122 Current portion of minimum lease payments from finance lease agreements (2) — — — 46 46 Other receivables, security deposits and current assets (2) — — — 147 147 VAT receivables (2) — — — 64 64 Derivative financial instruments (2) — 1 — — 1 Total current financial assets 120 1 33 379 533 Total financial assets at fair value and amortized cost or cost 242 1 92 627 962 Financial liabilities Contingent consideration liabilities — — (243 ) — (243 ) Non-current financial debt — — — (3,218 ) (3,218 ) Current financial debt — — — (245 ) (245 ) Derivative financial instruments — (16 ) — — (16 ) Total financial liabilities at fair value and amortized cost — (16 ) (243 ) (3,463 ) (3,722 ) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) Carrying amount is a reasonable approximation of fair value, with the exception of Series 2026, 2029, and 2049 notes recorded in Non-current financial debt with a fair value of $2,049 million and a carrying value of $1,979 million as of December 31, 2019 . The fair value of notes was determined using level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. The carrying amount is a reasonable approximation of fair value for all other financial assets and liabilities as of June 30, 2020 , including Cash & cash equivalents, Trade receivables, Income tax receivables, and Trade payables. There were no transfers of financial instruments between levels in the fair value hierarchy during the six months ended June 30, 2020 . Level 3 financial instruments measured at fair value on a recurring basis Financial assets Long-term financial investments measured Financial investments ($ millions) 2020 2019 2020 2019 Balance as of January 1 31 19 61 98 Additions — 8 — 1 Cash receipts and payments — — — — (Losses) recognized in consolidated statements of comprehensive (loss)/income (10 ) (7 ) — — Gain/(losses) in consolidated income statements — — 3 3 Amortization — — (23 ) (29 ) Reclassification — 2 — — Balance as of June 30 21 22 41 73 Financial liabilities Contingent consideration liabilities ($ millions) 2020 2019 Balance as of January 1 (243 ) (162 ) Additions — (135 ) Accretion for passage of time (9 ) (9 ) Adjustments for changes in assumptions 40 13 Payments 20 — Balance as of June 30 (192 ) (293 ) Changes in contingent consideration liabilities in the current year period include adjustments for changes in assumptions of $40 million primarily related to revised expectations for achievement of commercial milestones and timing of settlement for development milestones, and a payment of $20 million related to achievement of a development milestone. As of June 30, 2020 , the maximum remaining potential payments related to contingent consideration from business combinations is $490 million plus other amounts calculated as a percentage of commercial sales in cases where there is not a specified maximum contractual payment amount. Changes in contingent consideration liabilities in the prior year period included additions of $135 million related to the acquisition of PowerVision in March 2019 as described in Note 3 of these Condensed Consolidated Interim Financial Statements. The prior year period also included changes in assumptions of $13 million primarily related to the expected timing of settlement for development milestones. Contingent consideration liabilities are reported in “Provisions & other non-current liabilities" and "Provisions & other current liabilities” based on the projected timing of settlement which is estimated to range from 2020 through 2033 for contingent consideration obligations as of June 30, 2020 . Derivatives As of June 30, 2020 , the net value of unsettled positions for derivative forward contracts and swaps was $1 million , including $2 million of unrealized gains in Other current assets and $1 million of unrealized losses in Current financial debts. As of December 31, 2019 , the net value of unsettled positions for derivative forward contracts and swaps was $15 million , including $1 million of unrealized gains in Other current assets and $16 million of unrealized losses in Current financial debts. There are master agreements with several banking counterparties for derivatives financial instruments, however, there were no derivative financial instruments meeting the offsetting criteria under IFRS as of June 30, 2020 or December 31, 2019 . Nature and extent of risks arising from financial instruments Note 18 to the Consolidated Financial Statements in the Form 20-F contains a summary of the nature and extent of risks arising from financial instruments. Since the date of the Form 20-F, COVID-19 has resulted in updates to our assessment of the nature and extent of certain risks arising from financial instruments, as outlined below. There have been no other significant changes in the nature and extent of risks arising from financial instruments or corresponding risk management policies since the date of the Form 20-F. Credit risk Credit risks arise from the possibility that customers may not be able to settle their obligations as agreed. To manage this risk, Alcon periodically assesses credit risk, assigns individual credit limits, and takes actions to mitigate credit risk where appropriate. With the continued adverse economic conditions in relation to the COVID-19 pandemic, there is an increased credit risk due to an increase in expected credit losses. Provisions for expected credit losses have been reflected in the financial statements as of June 30, 2020 . Alcon will continue to assess forward-looking estimates of potential increased default rates and potential increase in lifetime expected credit losses. Liquidity risk Liquidity risk is defined as the risk that Alcon could not be able to settle or meet its obligations on time or at a reasonable price. Alcon Treasury is responsible for liquidity, funding and settlement management. In addition, liquidity and funding risks, and related processes and policies, are overseen by management. Alcon manages its liquidity risk on a consolidated basis according to business needs, tax, capital or regulatory considerations, if applicable, through numerous sources of financing in order to maintain flexibility. Management monitors Alcon's net debt or liquidity position through rolling forecasts on the basis of expected cash flows. Since March 2020, Alcon has experienced delayed collections from customers. With the continued adverse economic conditions in relation to the COVID-19 pandemic, there is an increased liquidity risk due to further potential delays or reductions in collections from our customers or increased difficulties in accessing the capital or debt markets. In response to the increased liquidity risk, on May 27, 2020, AFC completed an offering of $750 million of 2.600% senior notes due in 2030, increasing Alcon's overall liquidity. In addition, Alcon’s revolving credit facility with total availability of $1.0 billion remained undrawn as of June 30, 2020 with no current limitations on borrowing, and management has not identified any changes in Alcon's ability to access the capital or debt markets. |
Condensed consolidated statemen
Condensed consolidated statements of cash flows - additional details | 6 Months Ended |
Jun. 30, 2020 | |
Cash Flow Statement [Abstract] | |
Condensed consolidated statements of cash flows - additional details | Condensed consolidated statements of cash flows - additional details The below tables provide additional detail supporting select line items in the Condensed Consolidated Statements of Cash Flows. 9.1 Depreciation, amortization, impairments and fair value adjustments Six months ended June 30 ($ millions) 2020 2019 Property, plant & equipment 142 129 Right-of-use assets 38 29 Intangible assets 602 536 Financial assets (3 ) 15 Total 779 709 9.2 Change in net current assets and other operating cash flow items Six months ended June 30 ($ millions) 2020 2019 (Increase) in inventories (192 ) (57 ) Decrease/(increase) in trade receivables 185 (122 ) Increase/(decrease) in trade payables (71 ) 134 Net change in other current assets 77 (73 ) Net change in other current liabilities (152 ) (64 ) Total (153 ) (182 ) |
Equity-based compensation
Equity-based compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-Based Payment Arrangements [Abstract] | |
Equity-based compensation | Equity-based compensation As described in Note 24 to the Consolidated Financial Statements in the Form 20-F, Alcon has various equity incentive plans, under which Alcon may grant awards in the form of restricted stock units ("RSUs"), performance-based restricted stock units ("PSUs"), restricted stock awards ("RSAs"), or any other form of award at the discretion of the Board. Certain associates in select countries may also participate in share ownership savings plans. Prior to the Spin-off, Alcon associates participated in Novartis’ equity-based participation plans, which included stock options, RSUs, PSUs, RSAs and certain share ownership savings plans. Such awards were settled in shares or options of the Former Parent. For the period prior to Spin-off, the Condensed Consolidated Income Statements reflect the compensation expense for the Novartis’ equity-based incentive plans in which Alcon associates participated. The below table summarizes unvested share movements for all Alcon equity-based incentive plans for the six months ended June 30, 2020 and from the date of the Spin-off through June 30, 2019 for the prior year: Six months ended June 30 (shares in millions) 2020 2019 Unvested at January 1 4.7 — Replacement awards issued at Spin-off (1) — 4.2 Granted 2.0 0.6 Vested (1.0 ) — Forfeited (0.2 ) — Unvested at June 30 5.5 4.8 (1) Alcon issued 4.2 million unvested equity-based awards to replace forfeited unvested Novartis awards at the time of the Spin-off. |
Related parties transactions
Related parties transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party [Abstract] | |
Related parties transactions | Related parties transactions Prior to the Spin-off, the Alcon business was a segment of Novartis such that transactions with Novartis were considered related party transactions. In connection with the Spin-off, Alcon entered into a separation and distribution agreement as well as various other agreements governing relationships with Novartis going forward, including manufacturing and supply, transitional services, tax matters, employee matters, and patent and know-how license and brand license agreements. Information included in this Note 11 with respect to Novartis is strictly limited to related party transactions with Novartis during 2019 and prior to the Spin-off on April 9, 2019. Transactions with Novartis (up to April 9, 2019) Transactions from trading activities related to products and services invoiced between other Novartis Group companies and Alcon's business, have been retained in the historical condensed consolidated financial statements. The ultimate controlling parent of both, the other Novartis Group companies and Alcon's business, was Novartis AG until the Spin-off. ($ millions) Six months ended June 30, 2019 (1) Contract manufacturing revenues from former parent 47 Purchases of Alcon from former parent 19 (1) Activity presented strictly relates to the period during which Novartis was a related party (prior to the Spin-off on April 9, 2019). Sales to and purchases from former parent Beginning in 2019, product sales to Novartis are recorded in "Other revenues" in line with Alcon's contract manufacturing arrangement executed with Novartis. Other revenues in 2019 prior to the Spin-off were $47 million . Purchases of products from Novartis under the contract manufacturing arrangement totaled $19 million in 2019 prior to the Spin-off. Corporate Overhead and Other Allocations from Novartis Services provided by Novartis Group to Alcon in 2019 prior to the Spin-off totaled $40 million and primarily related to human resources operations, real estate and facility services, and information technology. Management believes that the net charges and methods used for allocations to Alcon were performed on a reasonable basis and reflect the services received by Alcon and the cost incurred on behalf of Alcon. Although the Condensed Consolidated Interim Financial Statements reflect management's best estimate of all historical costs related to Alcon, this may however not necessarily reflect what the results of operations, financial position, or cash flows would have been had Alcon been a separate entity, nor the future results of Alcon as it exists following completion of the separation on April 9, 2019. |
Legal proceedings update
Legal proceedings update | 6 Months Ended |
Jun. 30, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Legal proceedings update | Legal proceedings update A number of Alcon companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time, including proceedings regarding product liability, sales and marketing practices, commercial disputes, employment, wrongful discharge, antitrust, securities, health and safety, environmental, tax, international trade, privacy, and intellectual property matters. As a result, Alcon may become subject to substantial liabilities that may not be covered by insurance and could affect our business, financial position and reputation. While Alcon does not believe that any of these legal proceedings will have a material adverse effect on its financial position, litigation is inherently unpredictable and large judgments sometimes occur. As a consequence, Alcon may in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations or cash flow. Note 19 to the Consolidated Financial Statements in the Form 20-F contains a summary of significant legal proceedings to which the Company or its subsidiaries were a party as of the date of the Form 20-F. The following is a summary as of August 18, 2020 of significant developments in those proceedings as well as any new significant proceedings commenced since the date of the Form 20-F. Asia / Russia investigation In 2017 and 2018, Alcon and Novartis Group companies, as well as certain present and former executives and associates of Alcon and Novartis, received document requests and subpoenas from the US Department of Justice (“DoJ”) and the SEC requesting information concerning Alcon accounting, internal controls and business practices in Asia and Russia, including revenue recognition for surgical equipment and related products and services and relationships with third party distributors, both before and after Alcon became part of the Novartis Group. The Investigations by the DoJ and the SEC have concluded. On June 25, 2020, Alcon entered into a three -year Deferred Prosecution Agreement with the DoJ regarding a charge that Alcon Pte Ltd. conspired to falsify financial books and records in violation of the US Foreign Corrupt Practices Act. The charge relates to payments made by a former distributor to health care providers in Vietnam between 2007 and 2014. Alcon agreed to pay the DoJ a penalty of $8.925 million , for which Novartis has indemnified Alcon under the Separation and Distribution Agreement. JJSVI patent dispute On June 23, 2020, Johnson & Johnson Surgical Vision, Inc. ("JJSVI"), acting through its subsidiaries, filed a patent infringement action in the US District Court in Delaware alleging that the manufacture, use, sale, offer for sale, and/or importation of Alcon’s LenSx Laser System willfully infringes, directly and/or indirectly, one or more claims of 12 US patents. Also on June 23, 2020, JJSVI filed a claim in Mannheim, Germany, alleging that Alcon directly infringes one European patent through its manufacture and sale of LenSx. In these cases, JJVI seeks monetary and injunctive relief. Alcon intends to defend the cases vigorously. TCPA matter In April 2016, a putative class action lawsuit was filed in Illinois federal court alleging that the defendants, Alcon and Novartis Pharmaceuticals Corporation ("NPC"), sent unsolicited facsimiles in violation of the Telephone Consumer Protection Act, and seeking to certify a representative putative nationwide class of affected consumers. The parties have settled the matter on terms that will dispose of all claims and will require no payments by Alcon. In addition to the matters described above, there have been other developments in the other legal matters described in Note 19 to the Consolidated Financial Statements in the Form 20-F. However, the developments during the first six months of 2020 did not significantly affect the assessment of management concerning the adequacy of the total provisions recorded for legal proceedings. |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2020 | |
Events After Reporting Period [Abstract] | |
Subsequent events | Subsequent events These unaudited Condensed Consolidated Interim Financial Statements were authorized for issue by the Audit & Risk Committee on August 18, 2020 . |
Selected accounting policies (P
Selected accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Statement of IFRS compliance | Alcon's principal accounting policies are set out in Note 3 to the Consolidated Financial Statements in the Form 20-F. The preparation of financial statements requires management to make subjective and complex judgments that affect the reported amounts. Because of the inherent uncertainties, actual outcomes and results may differ from management's assumptions and estimates. As discussed in Note 3 to the Consolidated Financial Statements in the Form 20-F, Goodwill, the Alcon brand name and acquired In-process research & development projects are reviewed for impairment at least annually and these, as well as all other investments in intangible assets, are reviewed for impairment whenever events or changes in circumstance indicate that the asset's balance sheet carrying amount may not be recoverable. Goodwill and other intangible assets represent a significant amount of total assets on the consolidated balance sheets. Impairment testing may lead to potentially significant impairment charges in the future, which could have a materially adverse impact on Alcon's results of operations and financial condition. |
Amendments to IFRS 3, Business Combinations, effective as of January 1, 2020 | Amendments to IFRS 3, Business Combinations , effective as of January 1, 2020 Effective January 1, 2020, Alcon adopted the IASB’s amendments to IFRS 3, Business Combinations . The amendments to IFRS 3 clarify the definition of a business, with the objective of assisting entities to determine whether a transaction should be accounted for as a business combination or an asset acquisition. The amendments define a business as an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or generating other income from ordinary activities. One of the key changes is the introduction of an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The introduction of the optional concentration test is a fundamental change in the determination of a business combination, applied on a transaction-by-transaction basis. Specifically, when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar assets, the set is not a business. If the initial concentration test is not met, or Alcon elects not to apply the concentration test, an assessment focusing on the existence of inputs and processes that have the ability to create outputs is required. Alcon’s adoption of the amendments to IFRS 3 applies to transactions for which the acquisition date is on or after January 1, 2020. The adoption of this amended standard on January 1, 2020 did not have a significant impact on these Condensed Consolidated Interim Financial Statements. Any future impact will depend on the facts and circumstances of future transactions and if Alcon decides to apply the optional concentration test in the assessment of whether an acquired set of activities and assets is or is not a business. |
Business combinations | Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary may include: • fair values of the assets transferred; • liabilities incurred to the former owners of the acquired business; • equity interests issued by Alcon Inc.; • fair value of an asset or liability resulting from a contingent consideration arrangement; and • fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the net identifiable assets acquired is recorded as goodwill, or directly in the income statement if it is a bargain purchase. Alcon primarily uses net present value techniques, utilizing post-tax cash flows and discount rates in calculating the fair value of net identifiable assets acquired when allocating the purchase consideration paid for the acquisition. The estimates in calculating fair values are highly sensitive and depend on assumptions, which include the amount and timing of projected cash flows, long-term sales forecasts, the timing and probability of regulatory and commercial success, and discount rate. Acquisition related costs are expensed as incurred. Alcon may elect on a transaction-by-transaction basis to apply the optional concentration test to assess whether a transaction qualifies as a business. Under the test, when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, Alcon will account for the transaction as an asset purchase and not a business combination. If the concentration test is not met, or Alcon elects not to apply this optional test, Alcon will perform an assessment focusing on the existence of inputs and processes that have the ability to create outputs to determine whether the transaction is an asset purchase or a business combination. There are no other IFRS standards or interpretations not yet effective that would be expected to have a material impact on Alcon. |
Segmentation of key figures (Ta
Segmentation of key figures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | Segmentation - Consolidated income statements Three months ended June 30 , 2020 and 2019 Surgical Vision Care Company Three months ended June 30 Three months ended June 30 Three months ended June 30 ($ millions) 2020 2019 2020 2019 2020 2019 Net sales to third parties 602 1,051 596 812 1,198 1,863 Other revenues — — 16 40 16 40 Net sales and other revenue 602 1,051 612 852 1,214 1,903 Segment contribution (28 ) 235 22 143 (6 ) 378 Amortization of intangible assets (273 ) (270 ) Impairment charges on intangible assets (41 ) — General & administration (corporate) (62 ) (54 ) Separation costs (62 ) (78 ) Transformation costs (13 ) (5 ) Fair value adjustments of contingent consideration liabilities (4 ) 3 Other (5 ) (27 ) Operating (loss) (466 ) (53 ) Interest expense (30 ) (35 ) Other financial income & expense (6 ) (8 ) (Loss) before taxes (502 ) (96 ) Six months ended June 30 , 2020 and 2019 Surgical Vision Care Company Six months ended June 30 Six months ended June 30 Six months ended June 30 ($ millions) 2020 2019 2020 2019 2020 2019 Net sales to third parties 1,586 2,051 1,434 1,589 3,020 3,640 Other revenues — — 35 87 35 87 Net sales and other revenues 1,586 2,051 1,469 1,676 3,055 3,727 Segment contribution 180 463 188 301 368 764 Amortization of intangible assets (545 ) (536 ) Impairment charges on intangible assets (57 ) — General & administration (corporate) (115 ) (102 ) Separation costs (133 ) (78 ) Spin readiness costs — (72 ) Transformation costs (20 ) (5 ) Fair value adjustments of contingent consideration liabilities 40 13 Other (32 ) (85 ) Operating (loss) (494 ) (101 ) Interest expense (61 ) (44 ) Other financial income & expense (16 ) (16 ) (Loss) before taxes (571 ) (161 ) |
Disclosure of products and services | Net sales by segment Three months ended June 30 Six months ended June 30 ($ millions) 2020 2019 2020 2019 Surgical Implantables 176 300 486 585 Consumables 320 588 839 1,139 Equipment/other 106 163 261 327 Total Surgical 602 1,051 1,586 2,051 Vision Care Contact lenses 329 493 831 991 Ocular health 267 319 603 598 Total Vision Care 596 812 1,434 1,589 Net sales to third parties 1,198 1,863 3,020 3,640 |
Disclosure of geographical areas | Net sales by region (1) Three months ended June 30 Six months ended June 30 ($ millions unless indicated otherwise) 2020 2019 2020 2019 United States 493 41 % 779 42 % 1,285 43 % 1,516 42 % International 705 59 % 1,084 58 % 1,735 57 % 2,124 58 % Net sales to third parties 1,198 100 % 1,863 100 % 3,020 100 % 3,640 100 % (1) Net sales to third parties by location of third-party customer. |
Non-current and current finan_2
Non-current and current financial debts (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Borrowings [Abstract] | |
Schedule of financial debts | The below table summarizes non-current and current Financial debts outstanding as of June 30, 2020 and December 31, 2019 . ($ millions) June 30, 2020 December 31, 2019 Non-current financial debts Facility B 794 793 Facility C 391 391 Local facilities (Japan) — 55 Series 2026 notes 495 495 Series 2029 notes 991 991 Series 2030 notes 744 — Series 2049 notes 494 493 Revolving facility — — Total non-current financial debts 3,909 3,218 Current financial debts Local facilities: Japan 137 115 All others 71 101 Other short-term financial debts 26 29 Derivatives 1 16 Total current financial debts 235 261 Total financial debts 4,144 3,479 |
Financial instruments (Tables)
Financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments [Abstract] | |
Disclosure of fair value measurement of assets | Financial assets Long-term financial investments measured Financial investments ($ millions) 2020 2019 2020 2019 Balance as of January 1 31 19 61 98 Additions — 8 — 1 Cash receipts and payments — — — — (Losses) recognized in consolidated statements of comprehensive (loss)/income (10 ) (7 ) — — Gain/(losses) in consolidated income statements — — 3 3 Amortization — — (23 ) (29 ) Reclassification — 2 — — Balance as of June 30 21 22 41 73 The below tables summarize financial assets and liabilities measured at fair value on a recurring basis or at amortized cost or cost as of June 30, 2020 and December 31, 2019 . June 30, 2020 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 21 — 21 Long-term financial investments measured at FVPL — — 27 — 27 Long-term receivables from customers — — — 107 107 Deferred compensation assets (1) 118 — — — 118 Non-current minimum lease payments from finance lease agreements — — — 59 59 Long-term loans, advances, and security deposits — — — 19 19 Total non-current financial assets 118 — 48 185 351 Current financial assets Money market funds 795 — — — 795 Current portion of long-term financial investments measured at FVPL (2) — — 14 — 14 Current portion of long-term receivables from customers (2) — — — 116 116 Current portion of minimum lease payments from finance lease agreements (2) — — — 41 41 Other receivables, security deposits and current assets (2) — — — 127 127 VAT receivables (2) — — — 48 48 Derivative financial instruments (2) — 2 — — 2 Total current financial assets 795 2 14 332 1,143 Total financial assets at fair value and amortized cost or cost 913 2 62 517 1,494 Financial liabilities Contingent consideration liabilities — — (192 ) — (192 ) Non-current financial debt — — — (3,909 ) (3,909 ) Current financial debt — — — (234 ) (234 ) Derivative financial instruments — (1 ) — — (1 ) Total financial liabilities at fair value and amortized cost — (1 ) (192 ) (4,143 ) (4,336 ) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) Carrying amount is a reasonable approximation of fair value, with the exception of Series 2026, 2029, 2030, and 2049 notes recorded in Non-current financial debt with a fair value of $2,921 million and a carrying value of $2,724 million as of June 30, 2020 . The fair value of notes was determined using level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. December 31, 2019 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 31 — 31 Long-term financial investments measured at FVPL — — 28 — 28 Long-term receivables from customers — — — 136 136 Deferred compensation assets (1) 122 — — — 122 Non-current minimum lease payments from finance lease agreements — — — 78 78 Long-term loans, advances, and security deposits — — — 34 34 Total non-current financial assets 122 — 59 248 429 Current financial assets Money market funds 120 — — — 120 Current portion of long-term financial investments measured at FVPL (2) — — 33 — 33 Current portion of long-term receivables from customers (2) — — — 122 122 Current portion of minimum lease payments from finance lease agreements (2) — — — 46 46 Other receivables, security deposits and current assets (2) — — — 147 147 VAT receivables (2) — — — 64 64 Derivative financial instruments (2) — 1 — — 1 Total current financial assets 120 1 33 379 533 Total financial assets at fair value and amortized cost or cost 242 1 92 627 962 Financial liabilities Contingent consideration liabilities — — (243 ) — (243 ) Non-current financial debt — — — (3,218 ) (3,218 ) Current financial debt — — — (245 ) (245 ) Derivative financial instruments — (16 ) — — (16 ) Total financial liabilities at fair value and amortized cost — (16 ) (243 ) (3,463 ) (3,722 ) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) Carrying amount is a reasonable approximation of fair value, with the exception of Series 2026, 2029, and 2049 notes recorded in Non-current financial debt with a fair value of $2,049 million and a carrying value of $1,979 million as of December 31, 2019 . The fair value of notes was determined using level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. |
Disclosure of fair value measurement of liabilities | The below tables summarize financial assets and liabilities measured at fair value on a recurring basis or at amortized cost or cost as of June 30, 2020 and December 31, 2019 . June 30, 2020 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 21 — 21 Long-term financial investments measured at FVPL — — 27 — 27 Long-term receivables from customers — — — 107 107 Deferred compensation assets (1) 118 — — — 118 Non-current minimum lease payments from finance lease agreements — — — 59 59 Long-term loans, advances, and security deposits — — — 19 19 Total non-current financial assets 118 — 48 185 351 Current financial assets Money market funds 795 — — — 795 Current portion of long-term financial investments measured at FVPL (2) — — 14 — 14 Current portion of long-term receivables from customers (2) — — — 116 116 Current portion of minimum lease payments from finance lease agreements (2) — — — 41 41 Other receivables, security deposits and current assets (2) — — — 127 127 VAT receivables (2) — — — 48 48 Derivative financial instruments (2) — 2 — — 2 Total current financial assets 795 2 14 332 1,143 Total financial assets at fair value and amortized cost or cost 913 2 62 517 1,494 Financial liabilities Contingent consideration liabilities — — (192 ) — (192 ) Non-current financial debt — — — (3,909 ) (3,909 ) Current financial debt — — — (234 ) (234 ) Derivative financial instruments — (1 ) — — (1 ) Total financial liabilities at fair value and amortized cost — (1 ) (192 ) (4,143 ) (4,336 ) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) Carrying amount is a reasonable approximation of fair value, with the exception of Series 2026, 2029, 2030, and 2049 notes recorded in Non-current financial debt with a fair value of $2,921 million and a carrying value of $2,724 million as of June 30, 2020 . The fair value of notes was determined using level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. December 31, 2019 ($ millions) Level 1 Level 2 Level 3 Valued at amortized cost or cost (3) Total Non-current financial assets Long-term financial investments measured at FVOCI — — 31 — 31 Long-term financial investments measured at FVPL — — 28 — 28 Long-term receivables from customers — — — 136 136 Deferred compensation assets (1) 122 — — — 122 Non-current minimum lease payments from finance lease agreements — — — 78 78 Long-term loans, advances, and security deposits — — — 34 34 Total non-current financial assets 122 — 59 248 429 Current financial assets Money market funds 120 — — — 120 Current portion of long-term financial investments measured at FVPL (2) — — 33 — 33 Current portion of long-term receivables from customers (2) — — — 122 122 Current portion of minimum lease payments from finance lease agreements (2) — — — 46 46 Other receivables, security deposits and current assets (2) — — — 147 147 VAT receivables (2) — — — 64 64 Derivative financial instruments (2) — 1 — — 1 Total current financial assets 120 1 33 379 533 Total financial assets at fair value and amortized cost or cost 242 1 92 627 962 Financial liabilities Contingent consideration liabilities — — (243 ) — (243 ) Non-current financial debt — — — (3,218 ) (3,218 ) Current financial debt — — — (245 ) (245 ) Derivative financial instruments — (16 ) — — (16 ) Total financial liabilities at fair value and amortized cost — (16 ) (243 ) (3,463 ) (3,722 ) (1) Recorded in Other non-current assets. (2) Recorded in Other current assets. (3) Carrying amount is a reasonable approximation of fair value, with the exception of Series 2026, 2029, and 2049 notes recorded in Non-current financial debt with a fair value of $2,049 million and a carrying value of $1,979 million as of December 31, 2019 . The fair value of notes was determined using level 2 inputs. The notes were valued using the quoted market price for such notes, which have low trading volumes. Financial liabilities Contingent consideration liabilities ($ millions) 2020 2019 Balance as of January 1 (243 ) (162 ) Additions — (135 ) Accretion for passage of time (9 ) (9 ) Adjustments for changes in assumptions 40 13 Payments 20 — Balance as of June 30 (192 ) (293 ) |
Condensed consolidated statem_2
Condensed consolidated statements of cash flows - additional details (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Cash Flow Statement [Abstract] | |
Depreciation, amortization, impairments and fair value adjustments | Depreciation, amortization, impairments and fair value adjustments Six months ended June 30 ($ millions) 2020 2019 Property, plant & equipment 142 129 Right-of-use assets 38 29 Intangible assets 602 536 Financial assets (3 ) 15 Total 779 709 |
Change in net current assets and other operating cash flow items | Change in net current assets and other operating cash flow items Six months ended June 30 ($ millions) 2020 2019 (Increase) in inventories (192 ) (57 ) Decrease/(increase) in trade receivables 185 (122 ) Increase/(decrease) in trade payables (71 ) 134 Net change in other current assets 77 (73 ) Net change in other current liabilities (152 ) (64 ) Total (153 ) (182 ) |
Equity-based compensation (Tabl
Equity-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-Based Payment Arrangements [Abstract] | |
Summary of unvested share movements | The below table summarizes unvested share movements for all Alcon equity-based incentive plans for the six months ended June 30, 2020 and from the date of the Spin-off through June 30, 2019 for the prior year: Six months ended June 30 (shares in millions) 2020 2019 Unvested at January 1 4.7 — Replacement awards issued at Spin-off (1) — 4.2 Granted 2.0 0.6 Vested (1.0 ) — Forfeited (0.2 ) — Unvested at June 30 5.5 4.8 (1) Alcon issued 4.2 million unvested equity-based awards to replace forfeited unvested Novartis awards at the time of the Spin-off. |
Related parties transactions (T
Related parties transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | ($ millions) Six months ended June 30, 2019 (1) Contract manufacturing revenues from former parent 47 Purchases of Alcon from former parent 19 (1) Activity presented strictly relates to the period during which Novartis was a related party (prior to the Spin-off on April 9, 2019). |
Basis of preparation (Details)
Basis of preparation (Details) | Apr. 09, 2019 |
Novartis AG | |
Disclosure of initial application of standards or interpretations [line items] | |
Shares received in spin-off | 0.2 |
Significant transactions (Detai
Significant transactions (Details) - USD ($) | May 27, 2020 | Apr. 02, 2019 | Mar. 13, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Sep. 23, 2019 | Apr. 09, 2019 |
Disclosure of detailed information about business combination [line items] | ||||||||
Proceeds from borrowings | $ 3,200,000,000 | |||||||
Financial debts | 3,500,000,000 | $ 4,144,000,000 | $ 3,479,000,000 | |||||
Cash paid for intercompany transactions related to spin-off | $ 3,100,000,000 | |||||||
Net assets | $ 20,000,000,000 | |||||||
Consideration paid (received) | $ 0 | $ 283,000,000 | ||||||
PowerVision, Inc. | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Percentage of voting equity interests acquired | 100.00% | |||||||
Consideration transferred, acquisition-date fair value | $ 424,000,000 | |||||||
Cash transferred | 289,000,000 | |||||||
Contingent liabilities recognised as of acquisition date | 135,000,000 | |||||||
Identifiable assets acquired (liabilities assumed) | 418,000,000 | |||||||
Identifiable intangible assets recognised as of acquisition date | 505,000,000 | |||||||
Deferred tax liabilities recognised as of acquisition date | 93,000,000 | |||||||
Other net assets recognised as of acquisition date | 6,000,000 | |||||||
Goodwill recognised as of acquisition date | 6,000,000 | |||||||
Consideration paid (received) | $ 283,000,000 | |||||||
Series 2030 notes | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Proceeds from borrowings | $ 750,000,000 | |||||||
Borrowings, interest rate | 2.60% | |||||||
Notional amount | $ 750,000,000 | |||||||
Senior notes | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Notional amount | $ 2,000,000,000 | |||||||
Series 2026 notes | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Borrowings, interest rate | 2.75% | |||||||
Notional amount | $ 500,000,000 | |||||||
Series 2029 notes | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Borrowings, interest rate | 3.00% | |||||||
Notional amount | $ 1,000,000,000 | |||||||
Series 2049 notes | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Borrowings, interest rate | 3.80% | |||||||
Notional amount | $ 500,000,000 |
Segmentation of key figures - N
Segmentation of key figures - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Operating Segments [Abstract] | ||||
Number of reporting segments | segment | 2 | 2 | ||
Disclosure of operating segments [line items] | ||||
Segment contribution | $ (6) | $ 378 | $ 368 | $ 764 |
Surgical | ||||
Disclosure of operating segments [line items] | ||||
Segment contribution | (28) | 235 | 180 | 463 |
Vision Care | ||||
Disclosure of operating segments [line items] | ||||
Segment contribution | $ 22 | 143 | $ 188 | 301 |
Reclassification of Fair Value Adjustments of Contingent Consideration Liability | Surgical | ||||
Disclosure of operating segments [line items] | ||||
Segment contribution | 18 | 23 | ||
Reclassification of Fair Value Adjustments of Contingent Consideration Liability | Vision Care | ||||
Disclosure of operating segments [line items] | ||||
Segment contribution | $ 8 | $ 19 |
Segmentation of key figures - C
Segmentation of key figures - Consolidated income statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of operating segments [line items] | |||||
Net sales to third parties | $ 1,198 | $ 1,863 | $ 3,020 | $ 3,640 | |
Other revenues | 16 | 40 | 35 | 87 | |
Net sales and other revenues | 1,214 | 1,903 | 3,055 | 3,727 | |
Segment contribution | (6) | 378 | 368 | 764 | |
Amortization of intangible assets | (273) | (270) | (545) | (536) | |
Impairment charges on intangible assets | (41) | 0 | (57) | 0 | |
General & administration (corporate) | (62) | (54) | (115) | (102) | |
Separation costs | (62) | (78) | (133) | (78) | |
Spin readiness costs | 0 | (72) | |||
Transformation costs | (13) | (5) | (20) | (5) | |
Fair value adjustments of contingent consideration liabilities | (4) | 3 | 40 | 13 | |
Other | (5) | (27) | (32) | (85) | |
Operating (loss) | (466) | (53) | (494) | (101) | |
Interest expense | (30) | (35) | (61) | (44) | |
Other financial income & expense | (6) | (8) | (16) | (16) | |
(Loss) before taxes | (502) | (96) | (571) | (161) | |
Surgical | |||||
Disclosure of operating segments [line items] | |||||
Net sales to third parties | 602 | 1,051 | 1,586 | 2,051 | |
Other revenues | 0 | 0 | 0 | 0 | |
Net sales and other revenues | 602 | 1,051 | 1,586 | 2,051 | |
Segment contribution | (28) | 235 | 180 | 463 | |
Impairment charges on intangible assets | $ (16) | ||||
Vision Care | |||||
Disclosure of operating segments [line items] | |||||
Net sales to third parties | 596 | 812 | 1,434 | 1,589 | |
Other revenues | 16 | 40 | 35 | 87 | |
Net sales and other revenues | 612 | 852 | 1,469 | 1,676 | |
Segment contribution | $ 22 | $ 143 | $ 188 | $ 301 |
Segmentation of key figures -_2
Segmentation of key figures - Net sales by segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of products and services [line items] | ||||
Net sales to third parties | $ 1,198 | $ 1,863 | $ 3,020 | $ 3,640 |
Surgical | ||||
Disclosure of products and services [line items] | ||||
Net sales to third parties | 602 | 1,051 | 1,586 | 2,051 |
Surgical | Implantables | ||||
Disclosure of products and services [line items] | ||||
Net sales to third parties | 176 | 300 | 486 | 585 |
Surgical | Consumables | ||||
Disclosure of products and services [line items] | ||||
Net sales to third parties | 320 | 588 | 839 | 1,139 |
Surgical | Equipment/other | ||||
Disclosure of products and services [line items] | ||||
Net sales to third parties | 106 | 163 | 261 | 327 |
Vision Care | ||||
Disclosure of products and services [line items] | ||||
Net sales to third parties | 596 | 812 | 1,434 | 1,589 |
Vision Care | Contact lenses | ||||
Disclosure of products and services [line items] | ||||
Net sales to third parties | 329 | 493 | 831 | 991 |
Vision Care | Ocular health | ||||
Disclosure of products and services [line items] | ||||
Net sales to third parties | $ 267 | $ 319 | $ 603 | $ 598 |
Segmentation of key figures -_3
Segmentation of key figures - Net sales by region (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of geographical areas [line items] | ||||
Net sales to third parties | $ 1,198 | $ 1,863 | $ 3,020 | $ 3,640 |
Percentage of entity's revenue | 100.00% | 100.00% | 100.00% | 100.00% |
United States | ||||
Disclosure of geographical areas [line items] | ||||
Net sales to third parties | $ 493 | $ 779 | $ 1,285 | $ 1,516 |
Percentage of entity's revenue | 41.00% | 42.00% | 43.00% | 42.00% |
International | ||||
Disclosure of geographical areas [line items] | ||||
Net sales to third parties | $ 705 | $ 1,084 | $ 1,735 | $ 2,124 |
Percentage of entity's revenue | 59.00% | 58.00% | 57.00% | 58.00% |
Earnings_(Loss) per share (Deta
Earnings/(Loss) per share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings per share [abstract] | ||||
Number of shares outstanding | 489.1 | 489.1 | ||
Number of shares vested | 0.8 | |||
Weighted average number of shares outstanding | 489 | 488.2 | 488.8 | 488.2 |
Number of anti-dilutive shares | 2.5 | 1.8 | 2.6 | 0.9 |
Intangible assets other than _2
Intangible assets other than goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of detailed information about intangible assets [line items] | |||||
Impairment of intangibles | $ 41 | $ 0 | $ 57 | $ 0 | |
Vision Care | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Recoverable amount of CGU | $ 88 | $ 88 | |||
Surgical | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Impairment of intangibles | $ 16 |
Non-current and current finan_3
Non-current and current financial debts - Schedule of financial debts (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Apr. 02, 2019 |
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | $ 3,909 | $ 3,218 | |
Current financial debts | 235 | 261 | |
Borrowings | 4,144 | 3,479 | $ 3,500 |
Facility B | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 794 | 793 | |
Facility C | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 391 | 391 | |
Local facilities (Japan) | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 0 | 55 | |
Current financial debts | 137 | 115 | |
Series 2026 notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 495 | 495 | |
Series 2029 notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 991 | 991 | |
Series 2030 notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 744 | 0 | |
Series 2049 notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 494 | 493 | |
Revolving facility | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current financial debts | 0 | 0 | |
Local facilities, all others | |||
Disclosure of detailed information about borrowings [line items] | |||
Current financial debts | 71 | 101 | |
Other short-term financial debts | |||
Disclosure of detailed information about borrowings [line items] | |||
Current financial debts | 26 | 29 | |
Derivatives | |||
Disclosure of detailed information about borrowings [line items] | |||
Current financial debts | $ 1 | $ 16 |
Non-current and current finan_4
Non-current and current financial debts - Additional information (Details) - USD ($) | May 27, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Apr. 02, 2019 |
Disclosure of detailed information about borrowings [line items] | |||||||
Interest expense | $ 23,000,000 | $ 27,000,000 | $ 46,000,000 | $ 31,000,000 | |||
Borrowings | 4,144,000,000 | 4,144,000,000 | $ 3,479,000,000 | $ 3,500,000,000 | |||
Revolving facility | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Series 2030 notes | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | $ 750,000,000 | ||||||
Borrowings, issuance percentage | 99.843% | ||||||
Borrowings, interest rate | 2.60% | ||||||
Borrowing costs incurred | $ 5,000,000 | ||||||
Series 2030 notes | Discount | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | $ 1,000,000 |
Financial instruments - Schedul
Financial instruments - Schedule of fair value of assets and liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | $ 233 | $ 307 | ||
Non-current financial debt | Senior Notes Due 2026, 2029, and 2049 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | (2,724) | (1,979) | ||
Financial liabilities, at fair value | 2,921 | 2,049 | ||
Level 3 | Contingent consideration liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | (192) | (243) | $ (293) | $ (162) |
Level 3 | Long-term financial investments measured at FVOCI | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Total financial assets at fair value and amortized cost or cost | 21 | 31 | 22 | 19 |
Level 3 | Financial investments measured at FVPL | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Total financial assets at fair value and amortized cost or cost | 41 | 61 | $ 73 | $ 98 |
Recurring fair value measurement | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 351 | 429 | ||
Current financial assets | 1,143 | 533 | ||
Total financial assets at fair value and amortized cost or cost | 1,494 | 962 | ||
Financial liabilities | (4,336) | (3,722) | ||
Recurring fair value measurement | Measured at FVPL | Contingent consideration liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | (192) | (243) | ||
Recurring fair value measurement | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | (1) | (16) | ||
Recurring fair value measurement | Valued at amortized cost or cost | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | (4,143) | (3,463) | ||
Recurring fair value measurement | Valued at amortized cost or cost | Non-current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | (3,909) | (3,218) | ||
Recurring fair value measurement | Valued at amortized cost or cost | Current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | (234) | (245) | ||
Recurring fair value measurement | Long-term financial investments measured at FVOCI | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 21 | 31 | ||
Recurring fair value measurement | Financial investments measured at FVPL | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 27 | 28 | ||
Recurring fair value measurement | Financial investments measured at FVPL | Deferred compensation assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 118 | 122 | ||
Recurring fair value measurement | Financial investments measured at FVPL | Money market funds | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 795 | 120 | ||
Recurring fair value measurement | Financial investments measured at FVPL | Current portion of long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 14 | 33 | ||
Recurring fair value measurement | Financial investments measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 2 | 1 | ||
Recurring fair value measurement | Valued at amortized cost or cost | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 185 | 248 | ||
Current financial assets | 332 | 379 | ||
Total financial assets at fair value and amortized cost or cost | 517 | 627 | ||
Recurring fair value measurement | Valued at amortized cost or cost | Long-term receivables from customers | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 107 | 136 | ||
Current financial assets | 116 | 122 | ||
Recurring fair value measurement | Valued at amortized cost or cost | Minimum lease payments from finance lease agreements | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 59 | 78 | ||
Current financial assets | 41 | 46 | ||
Recurring fair value measurement | Valued at amortized cost or cost | Long-term loans, advances, and security deposits | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 19 | 34 | ||
Recurring fair value measurement | Valued at amortized cost or cost | Other receivables, security deposits and current assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 127 | 147 | ||
Recurring fair value measurement | Valued at amortized cost or cost | VAT receivables | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 48 | 64 | ||
Recurring fair value measurement | Level 1 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 118 | 122 | ||
Current financial assets | 795 | 120 | ||
Total financial assets at fair value and amortized cost or cost | 913 | 242 | ||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at FVPL | Contingent consideration liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Valued at amortized cost or cost | Non-current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Valued at amortized cost or cost | Current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Long-term financial investments measured at FVOCI | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Financial investments measured at FVPL | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Financial investments measured at FVPL | Deferred compensation assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 118 | 122 | ||
Recurring fair value measurement | Level 1 | Financial investments measured at FVPL | Money market funds | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 795 | 120 | ||
Recurring fair value measurement | Level 1 | Financial investments measured at FVPL | Current portion of long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Financial investments measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Valued at amortized cost or cost | Long-term receivables from customers | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Valued at amortized cost or cost | Minimum lease payments from finance lease agreements | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Valued at amortized cost or cost | Long-term loans, advances, and security deposits | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Valued at amortized cost or cost | Other receivables, security deposits and current assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 1 | Valued at amortized cost or cost | VAT receivables | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 2 | 1 | ||
Total financial assets at fair value and amortized cost or cost | 2 | 1 | ||
Financial liabilities | (1) | (16) | ||
Recurring fair value measurement | Level 2 | Measured at FVPL | Contingent consideration liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | (1) | (16) | ||
Recurring fair value measurement | Level 2 | Valued at amortized cost or cost | Non-current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Valued at amortized cost or cost | Current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Long-term financial investments measured at FVOCI | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Financial investments measured at FVPL | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Financial investments measured at FVPL | Deferred compensation assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Financial investments measured at FVPL | Money market funds | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Financial investments measured at FVPL | Current portion of long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Financial investments measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 2 | 1 | ||
Recurring fair value measurement | Level 2 | Valued at amortized cost or cost | Long-term receivables from customers | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Valued at amortized cost or cost | Minimum lease payments from finance lease agreements | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Valued at amortized cost or cost | Long-term loans, advances, and security deposits | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Valued at amortized cost or cost | Other receivables, security deposits and current assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 2 | Valued at amortized cost or cost | VAT receivables | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 48 | 59 | ||
Current financial assets | 14 | 33 | ||
Total financial assets at fair value and amortized cost or cost | 62 | 92 | ||
Financial liabilities | (192) | (243) | ||
Recurring fair value measurement | Level 3 | Measured at FVPL | Contingent consideration liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | (192) | (243) | ||
Recurring fair value measurement | Level 3 | Measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Valued at amortized cost or cost | Non-current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Valued at amortized cost or cost | Current financial debt | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Long-term financial investments measured at FVOCI | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 21 | 31 | ||
Recurring fair value measurement | Level 3 | Financial investments measured at FVPL | Long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 27 | 28 | ||
Recurring fair value measurement | Level 3 | Financial investments measured at FVPL | Deferred compensation assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Financial investments measured at FVPL | Money market funds | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Financial investments measured at FVPL | Current portion of long-term financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 14 | 33 | ||
Recurring fair value measurement | Level 3 | Financial investments measured at FVPL | Derivative financial instruments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Valued at amortized cost or cost | Long-term receivables from customers | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Valued at amortized cost or cost | Minimum lease payments from finance lease agreements | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Valued at amortized cost or cost | Long-term loans, advances, and security deposits | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Non-current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Valued at amortized cost or cost | Other receivables, security deposits and current assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Valued at amortized cost or cost | VAT receivables | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Current financial assets | $ 0 | $ 0 |
Financial instruments - Activit
Financial instruments - Activity in level 3 financial assets (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Financial investments measured at FVPL | ||
Changes in fair value measurement, assets [abstract] | ||
Amortization | $ (23) | $ (29) |
Level 3 | Financial investments | Long-term financial investments measured at FVOCI | ||
Changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | 31 | 19 |
Additions | 0 | 8 |
Cash receipts and payments | 0 | 0 |
(Losses) recognized in consolidated statements of comprehensive (loss)/income | (10) | (7) |
Gain/(losses) in consolidated income statements | 0 | 0 |
Amortization | 0 | 0 |
Reclassification | 0 | 2 |
Balance as of June 30 | 21 | 22 |
Level 3 | Financial investments | Financial investments measured at FVPL | ||
Changes in fair value measurement, assets [abstract] | ||
Balance as of January 1 | 61 | 98 |
Additions | 0 | 1 |
Cash receipts and payments | 0 | 0 |
(Losses) recognized in consolidated statements of comprehensive (loss)/income | 0 | 0 |
Gain/(losses) in consolidated income statements | 3 | 3 |
Reclassification | 0 | 0 |
Balance as of June 30 | $ 41 | $ 73 |
Financial instruments - Activ_2
Financial instruments - Activity in level 3 financial liabilities (Details) - Contingent consideration liabilities - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Changes in fair value measurement, liabilities [abstract] | ||
Additions | $ (135) | |
Level 3 | ||
Changes in fair value measurement, liabilities [abstract] | ||
Balance as of January 1 | $ (243) | (162) |
Additions | 0 | (135) |
Accretion for passage of time | (9) | (9) |
Adjustments for changes in assumptions | 40 | 13 |
Payments | 20 | 0 |
Balance as of June 30 | $ (192) | $ (293) |
Financial instruments - Additio
Financial instruments - Additional information (Details) - USD ($) | May 27, 2020 | Apr. 02, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | |||||
Contingent liabilities recognised in business combination | $ 490,000,000 | ||||
Derivative liabilities, net | 1,000,000 | $ (15,000,000) | |||
Gains on change in fair value of derivatives | 2,000,000 | 1,000,000 | |||
Losses on change in fair value of derivatives | (1,000,000) | $ (16,000,000) | |||
Proceeds from borrowings | $ 3,200,000,000 | ||||
Series 2030 notes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ 750,000,000 | ||||
Proceeds from borrowings | $ 750,000,000 | ||||
Borrowings, interest rate | 2.60% | ||||
Revolving facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | 1,000,000,000 | ||||
Contingent consideration liabilities | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Purchases, fair value measurement, liabilities | $ 135,000,000 | ||||
Level 3 | Contingent consideration liabilities | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Adjustments for changes in assumptions | 40,000,000 | 13,000,000 | |||
Payments | 20,000,000 | 0 | |||
Purchases, fair value measurement, liabilities | $ 0 | $ 135,000,000 |
Condensed consolidated statem_3
Condensed consolidated statements of cash flows - additional details - Depreciation, amortization, impairments and fair value adjustments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, amortization, impairments and fair value adjustments | $ 779 | $ 709 |
Property, plant & equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, amortization, impairments and fair value adjustments | 142 | 129 |
Right-of-use assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, amortization, impairments and fair value adjustments | 38 | 29 |
Intangible assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, amortization, impairments and fair value adjustments | 602 | 536 |
Financial assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, amortization, impairments and fair value adjustments | $ (3) | $ 15 |
Condensed consolidated statem_4
Condensed consolidated statements of cash flows - additional details - Change in net current assets and other operating cash flow items (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flow Statement [Abstract] | ||
(Increase) in inventories | $ (192) | $ (57) |
Decrease/(increase) in trade receivables | 185 | (122) |
Increase/(decrease) in trade payables | (71) | 134 |
Net change in other current assets | 77 | (73) |
Net change in other current liabilities | (152) | (64) |
Total | $ (153) | $ (182) |
Equity-based compensation (Deta
Equity-based compensation (Details) - shares shares in Millions | Apr. 08, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Share-Based Payment Arrangements [Abstract] | |||
Unvested at January 1 | 4.7 | 0 | |
Granted | 4.2 | 2 | 0.6 |
Vested | (1) | 0 | |
Forfeited | (0.2) | 0 | |
June 30 | 5.5 | 4.8 |
Related parties transactions -
Related parties transactions - Schedule of related parties transactions (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Related Party [Abstract] | |
Contract manufacturing revenues from former parent | $ 47 |
Purchases of Alcon from former parent | $ 19 |
Related parties transactions _2
Related parties transactions - Additional information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Apr. 08, 2019 | Jun. 30, 2019 | |
Related Party [Abstract] | ||
Contract manufacturing revenues from former parent | $ 47 | |
Purchases of Alcon from former parent | $ 19 | |
Services received, related party transactions | $ 40 |
Legal proceedings update (Detai
Legal proceedings update (Details) $ in Thousands | Jun. 25, 2020USD ($) | Jun. 23, 2020patent |
Penalty to be paid to DOJ | ||
Disclosure of contingent liabilities [line items] | ||
Deferred Prosecution Agreement, period | 3 years | |
Litigation Settlement, Amount Awarded To Other Party | $ | $ 8,925 | |
US Patent Infringement | ||
Disclosure of contingent liabilities [line items] | ||
Number of patents allegedly infringed | 12 | |
European Patent Infringement | ||
Disclosure of contingent liabilities [line items] | ||
Number of patents allegedly infringed | 1 |