Cover
Cover $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020$ / shares | Feb. 22, 2021shares | Jun. 26, 2020USD ($) | Dec. 31, 2019€ / shares | |
Cover [Abstract] | ||||
Document Type | 10-K | |||
Document Annual Report | true | |||
Document Period End Date | Dec. 31, 2020 | |||
Document Transition Report | false | |||
Entity File Number | 001-39695 | |||
Entity Registrant Name | VIATRIS INC. | |||
Entity Incorporation, State or Country Code | DE | |||
Entity Tax Identification Number | 83-4364296 | |||
Entity Address, Address Line One | 1000 Mylan Boulevard | |||
Entity Address, City or Town | Canonsburg | |||
Entity Address, Postal Zip Code | 15317 | |||
Entity Address, State or Province | PA | |||
City Area Code | (724) | |||
Local Phone Number | 514-1800 | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |||
Trading Symbol | VTRS | |||
Security Exchange Name | NASDAQ | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Non-accelerated Filer | |||
Entity Small Business | false | |||
Entity Emerging Growth Company | false | |||
ICFR Auditor Attestation Flag | true | |||
Entity Shell Company | false | |||
Entity Public Float | $ | $ 0 | |||
Common Stock, Par or Stated Value Per Share | (per share) | $ 0.01 | € 0.01 | ||
Entity Common Stock, Shares Outstanding | shares | 1,207,082,624 | |||
Documents Incorporated by Reference | Document Part of Form 10-K into Which An amendment to this Form 10-K will be filed no later than 120 days after the close of registrant’s fiscal year. III | |||
Entity Central Index Key | 0001792044 | |||
Amendment Flag | false | |||
Document Fiscal Year Focus | 2020 | |||
Document Fiscal Period Focus | FY | |||
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 844.4 | $ 475.6 |
Accounts receivable, net | 4,843.8 | 3,058.8 |
Inventories | 5,471.9 | 2,670.9 |
Prepaid expenses and other current assets | 1,707.4 | 552 |
Total current assets | 12,867.5 | 6,757.3 |
Property, plant and equipment, net | 3,459.9 | 2,149.6 |
Intangible assets, net | 29,683.2 | 11,649.9 |
Goodwill | 12,347 | 9,590.6 |
Deferred income tax benefit | 2,147.9 | 703.1 |
Other assets | 1,047.5 | 405 |
Total assets | 61,553 | 31,255.5 |
Current liabilities: | ||
Trade accounts payable | 1,904.2 | 1,528.1 |
Short-term borrowings | 1,100.9 | 0 |
Income taxes payable | 288.6 | 213 |
Current portion of long-term debt and other long-term obligations | 2,308.5 | 1,508.1 |
Other current liabilities | 4,960.7 | 2,319.9 |
Total current liabilities | 10,562.9 | 5,569.1 |
Long-term debt | 22,429.2 | 11,214.3 |
Deferred income tax liability | 3,123.7 | 1,627.5 |
Other long-term obligations | 2,483.1 | 960.8 |
Total liabilities | 38,598.9 | 19,371.7 |
Viatris Inc. shareholders’ equity | ||
Ordinary shares — nominal value €0.01 per share as of December 31, 2016 and December 31, 2015 | 12.1 | 6.1 |
Additional paid-in capital | 18,438.8 | 8,643.5 |
Accumulated other comprehensive loss | (858) | (1,797.2) |
Retained earnings | 5,361.2 | 6,031.1 |
Stockholders Equity Parent Before Treasury Stock | 22,954.1 | 12,883.5 |
Less: Treasury stock — at cost | 0 | 999.7 |
Total equity | 22,954.1 | 11,883.8 |
Total liabilities and equity | $ 61,553 | $ 31,255.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Millions | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares |
Ordinary shares, par value, in USD per share | (per share) | $ 0.01 | |
Ordinary shares, number of shares authorized | shares | 3,000,000,000 | 1,200,000,000 |
Total equity | $ | $ 22,954.1 | $ 11,883.8 |
Common Stock | ||
Shares issued | shares | 1,206,895,644 | 540,746,871 |
Total equity | $ | $ 12.1 | $ 6.1 |
Treasury Stock | ||
Shares issued | shares | 0 | 24,598,074 |
Total equity | $ | $ 0 | $ (999.7) |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Net sales | $ 11,819.9 | $ 11,370.3 | $ 11,268.7 |
Total revenues | 11,946 | 11,500.5 | 11,433.9 |
Cost of sales | 8,149.3 | 7,602.9 | 7,432.3 |
Gross profit | 3,796.7 | 3,897.6 | 4,001.6 |
Operating expenses: | |||
Research and development | 555.1 | 639.9 | 704.5 |
Selling, general and administrative | 3,344.6 | 2,563.6 | 2,441 |
Litigation settlements and other contingencies, net | 107.8 | (21.4) | (49.5) |
Total operating expenses | 4,007.5 | 3,182.1 | 3,096 |
Earnings from operations | (210.8) | 715.5 | 905.6 |
Interest expense | 497.8 | 517.3 | 542.3 |
Other expense, net | 12.6 | 43.8 | 64.9 |
Earnings before income taxes and noncontrolling interest | (721.2) | 154.4 | 298.4 |
Income tax provision | (51.3) | 137.6 | (54.1) |
Net earnings | $ (669.9) | $ 16.8 | $ 352.5 |
Earnings (loss) per share attributable to Viatris Inc. shareholders | |||
Basic (in USD per share) | $ (1.11) | $ 0.03 | $ 0.69 |
Diluted (in USD per share) | $ (1.11) | $ 0.03 | $ 0.68 |
Weighted average shares outstanding: | |||
Basic | 601.2 | 515.7 | 514.5 |
Diluted | 601.2 | 516.5 | 516.5 |
Other | |||
Revenues: | |||
Total revenues | $ 126.1 | $ 130.2 | $ 165.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net earnings | $ (669.9) | $ 16.8 | $ 352.5 |
Other comprehensive earnings (loss), before tax: | |||
Foreign currency translation adjustment | 1,213 | (1,125.2) | |
Change in unrecognized loss and prior service cost related to defined benefit plans | (14) | (24.8) | (3.8) |
Net unrealized gain (loss) on marketable securities | 0.6 | 0.5 | (0.1) |
Other comprehensive earnings (loss), before tax | 912.6 | (343.1) | (1,096.7) |
Income tax (benefit) provision | (26.6) | 9.2 | (24.1) |
Other comprehensive earnings (loss), net of tax | 939.2 | (352.3) | (1,072.6) |
Comprehensive earnings | 269.3 | (335.5) | (720.1) |
Cash flow hedging relationships | |||
Other comprehensive earnings (loss), before tax: | |||
Net unrecognized gain (loss) on derivatives in cash flow hedging relationships | 18.2 | 37.1 | (79.2) |
Net Investment Hedging | |||
Other comprehensive earnings (loss), before tax: | |||
Net unrecognized gain (loss) on derivatives in cash flow hedging relationships | (305.2) | 59.6 | 111.6 |
Foreign Currency Translation Adjustment | |||
Other comprehensive earnings (loss), before tax: | |||
Foreign currency translation adjustment | $ 1,213 | $ (415.5) | $ (1,125.2) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interest |
Balance at Dec. 31, 2017 | $ 13,307.6 | $ (6.2) | $ 6 | $ 8,586 | $ 5,644.5 | $ 13.7 | $ (567.7) | $ (361.2) | $ (7.5) | $ 0 |
Balance (in shares) at Dec. 31, 2017 | 537,902,426 | 13,695,251 | ||||||||
Net earnings | 352.5 | 352.5 | ||||||||
Other comprehensive (loss) earnings, net of tax | (1,072.6) | (1,072.6) | ||||||||
Common stock share repurchase | $ (432) | $ (432) | ||||||||
Common stock share repurchase (in shares) | (9,800,000) | (9,795,616) | ||||||||
Stock compensation expense | $ (3.3) | (3.3) | ||||||||
Stock options exercised, net of shares tendered for payment | 17.7 | 17.7 | ||||||||
Stock options exercised, net of shares tendered for payment (in shares) | 1,387,239 | |||||||||
Taxes related to the net share settlement of equity awards | (9) | (9) | ||||||||
Balance at Dec. 31, 2018 | 12,167.1 | $ 0 | $ 6 | 8,591.4 | 6,010.7 | $ 3.6 | $ (999.7) | (1,441.3) | $ (3.6) | 0 |
Balance (in shares) at Dec. 31, 2018 | 539,289,665 | 23,490,867 | ||||||||
Net earnings | 16.8 | 16.8 | 0 | |||||||
Other comprehensive (loss) earnings, net of tax | (352.3) | (352.3) | ||||||||
Common stock share repurchase | 0 | $ 0 | ||||||||
Common stock share repurchase (in shares) | 0 | |||||||||
Stock compensation expense | 56.8 | 56.8 | ||||||||
Stock options exercised, net of shares tendered for payment | 8.2 | $ 0.1 | 8.1 | |||||||
Stock options exercised, net of shares tendered for payment (in shares) | 1,457,206 | |||||||||
Taxes related to the net share settlement of equity awards | (12.8) | (12.8) | ||||||||
Retirement of Mylan N.V. treasury stock, net (in shares) | (1,107,207) | |||||||||
Balance at Dec. 31, 2019 | 11,883.8 | $ 6.1 | 8,643.5 | 6,031.1 | $ (999.7) | 0 | ||||
Balance (in shares) at Dec. 31, 2019 | 540,746,871 | 24,598,074 | ||||||||
Net earnings | (669.9) | (669.9) | ||||||||
Other comprehensive (loss) earnings, net of tax | 939.2 | 939.2 | ||||||||
Stock compensation expense | 79.2 | 79.2 | ||||||||
Stock options exercised, net of shares tendered for payment (in shares) | 872,802 | |||||||||
Taxes related to the net share settlement of equity awards | (6.3) | (6.3) | ||||||||
Exchange of Mylan N.V. ordinary shares for Viatris Inc. common stock | $ (6.1) | 6.1 | ||||||||
Exchange of Mylan N.V. ordinary shares for Viatris Inc. common stock (in shares) | (541,619,673) | |||||||||
Issuance of common stock to Mylan N.V. shareholders (in shares) | 541,619,673 | |||||||||
Issuance of common stock to Mylan N.V. shareholders | $ 5.2 | (5.2) | ||||||||
Issuance of common stock for the Combination | 10,727.5 | $ 6.9 | 10,720.6 | |||||||
Issuance of common stock for the Combination (in shares) | 689,874,045 | |||||||||
Retirement of Mylan N.V. treasury stock, net | (999.7) | $ 999.7 | ||||||||
Retirement of Mylan N.V. treasury stock, net (in shares) | (24,598,074) | (24,598,074) | ||||||||
Issuance of restricted stock, net of shares withheld | 0.6 | $ 0 | 0.6 | |||||||
Balance at Dec. 31, 2020 | $ 22,954.1 | $ 12.1 | $ 18,438.8 | $ 5,361.2 | $ 0 | $ (858) | $ 0 | |||
Balance (in shares) at Dec. 31, 2020 | 1,206,895,644 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net earnings | $ (669.9) | $ 16.8 | $ 352.5 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 2,216.1 | 2,019.3 | 2,109.9 |
Deferred income tax benefit | (213.2) | (192.6) | (264.3) |
Litigation settlements and other contingencies, net | 101.1 | (11.5) | (31.6) |
Loss from equity method investments | 48.4 | 62.1 | 78.7 |
Stock-based compensation expense | 79.2 | 56.8 | (3.3) |
Write off of financing fees | 0 | 0 | 2.7 |
Other non-cash items | 366.4 | 360.6 | 286.1 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 78.7 | (20) | 340.1 |
Inventories | (741.9) | (512.9) | (547.6) |
Trade accounts payable | (82.7) | (96.3) | 220.3 |
Income taxes | 3.6 | 57.9 | (23.9) |
Other operating assets and liabilities, net | 46 | 63.5 | (177.9) |
Net cash provided by operating activities | 1,231.8 | 1,803.7 | 2,341.7 |
Cash flows from investing activities: | |||
Cash paid for acquisitions, net | 415.8 | (148.7) | (65.9) |
Capital expenditures | (243) | (213.2) | (252.1) |
Payments for product rights and other, net | (438.2) | (192.8) | (943.5) |
Proceeds from sale of property, plant and equipment | 2.1 | 0 | 0 |
Proceeds from sale of assets and subsidiaries | 20 | 28 | 29.3 |
Purchase of marketable securities | (104.8) | (25.8) | (63.4) |
Proceeds from sale of marketable securities | 47 | 27.1 | 85.2 |
Net cash used in investing activities | (301.1) | (525.4) | (1,210.4) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 983.3 | 7.4 | 2,577.9 |
Payment of long-term debt | (2,484.2) | (1,108.5) | (3,165.2) |
Payment of financing fees | (2) | (3) | (21.4) |
Change in short-term borrowings, net | 1,099.6 | (1.8) | (44.4) |
Purchase of common stock | 0 | 0 | (432) |
Proceeds from exercise of stock options | 0.6 | 8.1 | 17.8 |
Taxes paid related to net share settlement of equity awards | (7.9) | (8.4) | (10.1) |
Contingent consideration payments | (48.5) | (60.3) | (11.9) |
Acquisition of noncontrolling interest | 0 | 0 | (0.6) |
Non-contingent payments for product rights | (143.3) | 0 | 0 |
Other items, net | (3.3) | (2.5) | (1) |
Net cash used in financing activities | (605.7) | (1,169) | (1,090.9) |
Effect on cash of changes in exchange rates | 33.8 | (7.5) | (21) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 358.8 | 101.8 | 19.4 |
Cash, cash equivalents and restricted cash — beginning of period | 491.1 | 389.3 | 369.9 |
Cash, cash equivalents and restricted cash — end of period | 850 | 491.1 | 389.3 |
Non-cash transactions: | |||
Common stock issued for the Combination | 10,727.5 | 0 | 0 |
Cash paid during the period for: | |||
Income taxes | 324.4 | 278.6 | 228.6 |
Interest | $ 555.4 | $ 470.6 | $ 460.8 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of OperationsViatris is a global healthcare company formed in November 2020 through the combination of Mylan and the Upjohn Business whose mission is to empower people worldwide to live healthier at every stage of life. By integrating the strengths of these two businesses, including our global workforce of approximately 45,000 employees and contractors, Viatris aims to deliver increased access to affordable, quality medicines for patients worldwide regardless of geography or circumstance. Viatris brings together industry leading commercial, R&D, regulatory, manufacturing, legal and medical expertise complemented by a strong commitment to quality and unparalleled geographic footprint to deliver high-quality medicines to patients in more than 165 countries and territories. Viatris’ portfolio comprises more than 1,400 approved molecules across a wide range of key therapeutic areas, including globally recognized iconic and key brands, generic, complex generic, and biosimilar products. Viatris operates approximately 50 manufacturing sites worldwide that produce oral solid doses, injectables, complex dosage forms and APIs. Viatris is headquartered in the U.S., with global centers in Pittsburgh, Pennsylvania Shanghai, China and Hyderabad, India.Viatris reports segment information on the basis of markets and geography. In conjunction with the formation of Viatris, the Company has changed its reportable segments, from North America, Europe, and Rest of World, to Developed Markets, Greater China, JANZ, and Emerging Markets. This approach reflects the Company’s focus on bringing its broad and diversified portfolio of branded, complex generics and biosimilars, and generic products to people in markets everywhere. Our Developed Markets segment comprises our operations primarily in North America and Europe. Our Greater China segment includes our operations in China, Taiwan and Hong Kong. Our JANZ segment reflects our operations in Japan, Australia and New Zealand. Our Emerging Markets segment encompasses our operations in countries with developing markets and emerging economies including countries in Asia, the Middle East, South and Central America, Africa and Eastern Europe, and also includes the Company’s anti-retroviral franchise. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation. The consolidated financial statements include the accounts of Viatris and those of its wholly owned and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Investments in equity method affiliates are recorded at cost and adjusted for the Company’s share of the affiliates’ cumulative results of operations, capital contributions and distributions. Noncontrolling interests in the Company’s subsidiaries are generally recorded net of tax as net earnings attributable to noncontrolling interests. Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of the uncertainty inherent in such estimates, actual results could differ from those estimates. Foreign Currencies. The consolidated financial statements are presented in U.S. Dollars, the reporting currency of Viatris. Statements of Operations and Cash Flows of all of the Company’s subsidiaries that have functional currencies other than U.S. Dollars are translated at a weighted average exchange rate for the period for inclusion in the consolidated statements of operations and cash flows, whereas assets and liabilities are translated at the end of the period exchange rates for inclusion in the consolidated balance sheets. Translation differences are recorded directly in shareholders’ equity as foreign currency translation adjustments. Gains or losses on transactions denominated in a currency other than the subsidiaries’ functional currency, which arise as a result of changes in foreign currency exchange rates, are recorded in the consolidated statements of operations. Cash and Cash Equivalents. Cash and cash equivalents are comprised of highly liquid investments with an original maturity of three months or less at the date of purchase. Debt and Equity Securities. Debt securities classified as available-for-sale on the date of purchase are recorded at fair value, with net unrealized gains and losses, net of income taxes, reflected in accumulated other comprehensive loss as a component of shareholders’ equity. Net realized gains and losses on sales of available-for-sale debt securities are computed on a specific security basis and are included in other expense, net, in the consolidated statements of operations. Debt securities classified as trading securities are valued using the quoted market price from broker or dealer quotations or transparent pricing sources at the reporting date. Fair value is determined based on observable market quotes or valuation models using assessments of counterparty credit worthiness, credit risk or underlying security and overall capital market liquidity. Debt securities are reviewed for impairment by assessing if the decline in market value of the investment below the carrying value is other than temporary. Investments in equity securities with readily determinable fair values are recorded at fair value with changes in fair value recorded in other expense, net in the consolidated statements of operations. Investments in equity securities without readily determinable fair values are recorded at cost minus any impairment, plus or minus changes in their estimated fair value resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Investments in entities are accounted for using the equity method of accounting when the ability to exercise significant influence over the operating and financial decisions of the investee is maintained. The share of net income or losses of equity method investments are included in other expense, net in the consolidated statements of operations. Investments in equity securities without readily determinable fair values and investments in equity accounted for using the equity method are assessed for potential impairment on a quarterly basis based on qualitative factors. Concentrations of Credit Risk. Financial instruments that potentially subject the Company to credit risk consist principally of interest-bearing investments, derivatives and accounts receivable. Viatris invests its excess cash in high-quality, liquid money market instruments, principally overnight deposits and highly rated money market funds. The Company maintains deposit balances at certain financial institutions in excess of federally insured amounts. Periodically, the Company reviews the creditworthiness of its counterparties to derivative transactions, and it does not expect to incur a loss from failure of any counterparties to perform under agreements it has with such counterparties. Inventories. Inventories are stated at the lower of cost and net realizable value, with cost principally determined by the weighted average cost method. Provisions for potentially obsolete or slow-moving inventory, including pre-launch inventory, are made based on our analysis of product dating, inventory levels, historical obsolescence and future sales forecasts. Included as a component of cost of sales is expense related to the net realizable value of inventories. Property, Plant and Equipment. Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed and recorded on a straight-line basis over the assets’ estimated service lives (3 to 18 years for machinery and equipment and other fixed assets and 15 to 39 years for buildings and improvements). Capitalized software is included in property, plant and equipment and is amortized over estimated useful lives ranging from 3 to 7 years. Intangible Assets and Goodwill. Intangible assets are stated at cost less accumulated amortization. Amortization is generally recorded on a straight-line basis over estimated useful lives ranging from 3 to 20 years. The Company periodically reviews the estimated useful lives of intangible assets and makes adjustments when events indicate that a shorter life is appropriate. The Company accounts for acquired businesses using the acquisition method of accounting in accordance with the provisions of the ASC 805, which requires that the assets acquired and liabilities assumed be recorded at the date of acquisition at their respective estimated fair values. The cost to acquire businesses is allocated to the underlying net assets of the acquired business based on estimates of their respective fair values. Amounts allocated to acquired IPR&D are capitalized at the date of acquisition and, at that time, such IPR&D assets have indefinite lives. As products in development are approved for sale, amounts are allocated to product rights and licenses and will be amortized over their estimated useful lives. Finite-lived intangible assets are amortized over the expected life of the asset. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Purchases of developed products and licenses that are accounted for as asset acquisitions are capitalized as intangible assets and amortized over an estimated useful life. IPR&D assets acquired as part of an asset acquisition are expensed immediately if they have no alternative future uses. The Company reviews goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable based on management's assessment of the fair value of the Company's reporting units as compared to their related carrying value. Under the authoritative guidance issued by the FASB, we have the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If we choose to use qualitative factors and determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the goodwill impairment test would be required. The goodwill impairment test requires the Company to estimate the fair value of the reporting unit and to compare the fair value of the reporting unit with its carrying amount. If the carrying amount is less than its fair value, then no impairment is recognized. If the carrying amount recorded exceeds the fair value calculated, an impairment charge is recorded for the difference. The judgments made in determining the projected cash flows used to estimate the fair value can materially impact the Company’s financial condition and results of operations. Indefinite-lived intangibles, principally IPR&D, are tested at least annually for impairment or upon the occurrence of a triggering event. The impairment test for IPR&D consists of a comparison of the asset’s fair value with its carrying value. Impairment is determined to exist when the fair value of IPR&D assets, which is based upon updated forecasts and commercial development plans, is less than the carrying value of the assets being tested. Contingent Consideration. Viatris records contingent consideration resulting from business acquisitions at its estimated fair value on the acquisition date. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as adjustments to litigation settlements and other contingencies, net within the consolidated statements of operations. Changes in the fair value of the contingent consideration obligations can result from adjustments to the discount rates, payment periods and adjustments in the probability of achieving future development steps, regulatory approvals, market launches, sales targets and profitability. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Significant judgment is employed in determining the assumptions utilized as of the acquisition date and for each subsequent measurement period. Accordingly, changes in the assumptions described above could have a material impact on the Company’s consolidated financial condition and results of operations. Impairment of Long-Lived Assets. The carrying values of long-lived assets, which include property, plant and equipment and intangible assets with finite lives, are evaluated periodically in relation to the expected future undiscounted cash flows of the underlying assets and monitored for other potential triggering events. The assessment for impairment is based on our ability to recover the carrying value of the long-lived assets or asset grouping by analyzing the expected future undiscounted pre-tax cash flows specific to the asset or asset grouping. If the carrying amount is greater than the undiscounted cash flows, the Company recognizes an impairment loss for the excess of the carrying amount over the estimated fair value based on discounted cash flows. Significant management judgment is involved in estimating the recoverability of these assets and is dependent upon the accuracy of the assumptions used in making these estimates, as well as how the estimates compare to the eventual future operating performance of the specific asset or asset grouping. Any future long-lived assets impairment charges could have a material impact on the Company’s consolidated financial condition and results of operations. Short-Term Borrowings. The Company’s subsidiaries in India have working capital facilities with several banks which are secured by its current assets. MPI, a wholly owned subsidiary of the Company, also has the CP Notes, Receivables Facility, which will expire in April 2022 and the Note Securitization Facility. Under the terms of each of the Receivables Facility and Note Securitization Facility, certain of our accounts receivable secure the amounts borrowed and cannot be used to pay our other debts or liabilities. As the accounts receivable do not transfer to the banks, any amounts outstanding under the facilities are recorded as borrowings and the underlying receivables continue to be included in accounts receivable, net, in the consolidated balance sheets. Revenue Recognition. The Company recognizes revenues in accordance with ASC 606. Under ASC 606, the Company recognizes net revenue for product sales when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are recorded net of provisions for variable consideration, including discounts, rebates, governmental rebate programs, price adjustments, returns, chargebacks, promotional programs and other sales allowances. Accruals for these provisions are presented in the consolidated financial statements as reductions in determining net sales and as a contra asset in accounts receivable, net (if settled via credit) and other current liabilities (if paid in cash). Amounts recorded for revenue deductions can result from a complex series of judgements about future events and uncertainties and can rely heavily on estimates and assumptions. The following section briefly describes the nature of our provisions for variable consideration and how such provisions are estimated: • Chargebacks : the Company has agreements with certain indirect customers, such as independent pharmacies, retail pharmacy chains, managed care organizations, hospitals, nursing homes, governmental agencies and pharmacy benefit managers, which establish contract prices for certain products. The indirect customers then independently select a wholesaler from which to purchase the products at these contracted prices. Alternatively, certain wholesalers may enter into agreements with indirect customers that establish contract pricing for certain products, which the wholesalers provide. Under either arrangement, Viatris will provide credit to the wholesaler for any difference between the contracted price with the indirect party and the wholesaler’s invoice price. Such credits are called chargebacks. The provision for chargebacks is based on expected sell-through levels by our wholesaler customers to indirect customers, as well as estimated wholesaler inventory levels. • Rebates, promotional programs and other sales allowances : this category includes rebate and other programs to assist in product sales. These programs generally provide that the customer receives credit directly related to the amount of purchases or credits upon the attainment of pre-established volumes. Also included in this category are prompt pay discounts, administrative fees and price adjustments to reflect decreases in the selling prices of products. • Returns : consistent with industry practice, Viatris maintains a return policy that allows customers to return a product, which varies country by country in accordance with local practices, generally within a specified period prior (six months) and subsequent (twelve months) to the expiration date. The Company’s estimate of the provision for returns is generally based upon historical experience with actual returns. Generally, returned products are destroyed and customers are refunded the sales price in the form of a credit. • Governmental rebate programs : government reimbursement programs in the U.S. include Medicare, Medicaid, and State Pharmacy Assistance Programs established according to statute, regulations and policy. Manufacturers of pharmaceutical products that are covered by the Medicaid program are required to pay rebates to each state based on a statutory formula set forth in the Social Security Act. Medicare beneficiaries are eligible to obtain discounted prescription drug coverage from private sector providers. In addition, certain states have also implemented supplemental rebate programs that obligate manufacturers to pay rebates in excess of those required under federal law. Our estimate of these rebates is based on the historical trends of rebates paid as well as on changes in wholesaler inventory levels and increases or decreases in the level of sales. We estimate discounts on branded prescription drug sales to Medicare Part D participants in the Medicare “coverage gap” based on historical experience of prescriptions and utilization expected to result in the discount of the “coverage gap”. Outside the U.S. the majority of our pharmaceutical sales are contractually or legislatively governed. In certain European countries, certain rebates are calculated on the governments total pharmaceutical spending or on specific product sale thresholds. We utilize historical data and obtain third party information to determine the adequacy of these accruals. Also, this provision includes price reductions that are mandated by law outside of the U.S. Our net sales may be impacted by wholesaler and distributor inventory levels of our products, which can fluctuate throughout the year due to the seasonality of certain products, pricing, the timing of product demand, purchasing decisions and other factors. Such fluctuations may impact the comparability of our net sales between periods. Consideration received from licenses of intellectual property is recorded as other revenues. Royalty or profit share amounts, which are based on sales of licensed products or technology, are recorded when the customer’s subsequent sales or usages occur. Such consideration is included in other revenue in the consolidated statements of operations. Research and Development. R&D expenses are charged to operations as incurred. Income Taxes. Income taxes have been provided for using an asset and liability approach in which deferred income taxes reflect the tax consequences on future years of events that the Company has already recognized in the financial statements or tax returns. Changes in enacted tax rates or laws may result in adjustments to the recorded tax assets or liabilities in the period that the new tax law is enacted. Earnings per Share. Basic earnings per share is computed by dividing net earnings attributable to holders of Viatris Inc. common stock by the weighted average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net earnings attributable to holders of Viatris Inc. common stock by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities or instruments, if the impact is dilutive. Mylan was authorized to repurchase up to $1 billion of its ordinary shares under its repurchase program that was previously approved by the Mylan’s board of directors and announced on November 16, 2015, but was not obligated to acquire any particular amount of ordinary shares. In 2018, Mylan repurchased approximately 9.8 million of ordinary shares at a cost of approximately $432.0 million. Basic and diluted earnings per share attributable to Viatris Inc. are calculated as follows: Year Ended December 31, (In millions, except per share amounts) 2020 2019 2018 Basic (loss) earnings attributable to Viatris Inc. common shareholders (numerator): Net (loss) earnings attributable to Viatris Inc. common shareholders $ (669.9) $ 16.8 $ 352.5 Shares (denominator): Weighted average shares outstanding 601.2 515.7 514.5 Basic (loss) earnings per share attributable to Viatris Inc. shareholders $ (1.11) $ 0.03 $ 0.69 Diluted (loss) earnings attributable to Viatris Inc. common shareholders (numerator): Net (loss) earnings attributable to Viatris Inc. common shareholders $ (669.9) $ 16.8 $ 352.5 Shares (denominator): Weighted average shares outstanding 601.2 515.7 514.5 Share-based awards and warrants — 0.8 2.0 Total dilutive shares outstanding 601.2 516.5 516.5 Diluted (loss) earnings per share attributable to Viatris Inc. shareholders $ (1.11) $ 0.03 $ 0.68 The weighted average shares outstanding used in the computation of earnings per share for the year ended December 31, 2020 includes the effect of the 689.9 million shares issued for the closing of the Combination. Additional stock awards and restricted ordinary shares were outstanding during the years ended December 31, 2020, 2019 and 2018 but were not included in the computation of diluted earnings per share for each respective period because the effect would be anti-dilutive. Excluded shares also include certain share-based compensation awards and restricted shares whose performance conditions had not been fully met. Such excluded shares and anti-dilutive awards represented 10.3 million, 9.1 million and 8.9 million shares for the years ended December 31, 2020, 2019 and 2018, respectively. Share-Based Compensation. The fair value of share-based compensation is recognized as expense in the consolidated statements of operations over the vesting period. Derivatives. From time to time the Company may enter into derivative financial instruments (mainly foreign currency exchange forward contracts, interest rate swaps and purchased equity call options) designed to: 1) hedge the cash flows resulting from existing assets and liabilities and transactions expected to be entered into over the next 24 months in currencies other than the functional currency, 2) hedge the variability in interest expense on floating rate debt, 3) hedge the fair value of fixed-rate notes, 4) hedge against changes in interest rates that could impact future debt issuances, 5) hedge cash or share payments required on conversion of issued convertible notes, 6) hedge a net investment in a foreign operation, or 7) economically hedge the foreign currency exposure associated with the purchase price of non-U.S. acquisitions. Derivatives are recognized as assets or liabilities in the consolidated balance sheets at their fair value. When the derivative instrument qualifies as a cash flow hedge, changes in the fair value are deferred through other comprehensive earnings. If a derivative instrument qualifies as a fair value hedge, the changes in the fair value, as well as the offsetting changes in the fair value of the hedged items, are generally included in interest expense. When such instruments do not qualify for hedge accounting the changes in fair value are recorded in the consolidated statements of operations within other expense, net. Financial Instruments. The Company’s financial instruments consist primarily of short-term and long-term debt, interest rate swaps, forward contracts and option contracts. The Company’s financial instruments also include cash and cash equivalents as well as accounts and other receivables and accounts payable, the fair values of which approximate their carrying values. As a policy, the Company does not engage in speculative or leveraged transactions. The Company uses derivative financial instruments for the purpose of hedging foreign currency and interest rate exposures, which exist as part of ongoing business operations, or to hedge cash, and have been used to hedge share payments required on conversion of issued convertible notes. The Company carries derivative instruments in the consolidated balance sheets at fair value, determined by reference to market data such as forward rates for currencies, implied volatilities, and interest rate swap yield curves. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. In addition, the Company has designated certain long-term debt instruments as net investment hedges. Recent Accounting Pronouncements. Adoption of New Accounting Standards and Amended SEC Rules In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses (“ASU 2016-13”) , which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relie f (“ASU 2019-05”). ASU 2019-05 provides transition relief for ASU 2016-13 by providing entities with an alternative to irrevocably elect the fair value option for eligible financial assets measured at amortized cost upon adoption of ASU 2016-13. The Company applied the provisions of ASU 2016-13 and its subsequent revisions as of January 1, 2020 and the adoption did not have a material impact on its consolidated financial statements and disclosures. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-03”), which adds to and modifies certain disclosure requirements for fair value measurements including a requirement to disclose changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and a requirement to disclose the range and weighted average used to develop significant inputs for Level 3 fair value measurements. The Company applied the provisions of ASU 2018-13 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s disclosures. In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). The objective of this update is to clarify and align the accounting and capitalization of implementation costs for hosting arrangements, regardless of whether they convey a license to the hosted software. The updated guidance will require an entity in a hosting arrangement that is a service contract, to follow guidance in ASC Topic 350, Intangibles-Goodwill and Other, to determine which implementation costs to capitalize as an asset and which costs to expense. The Company applied the provisions of ASU 2018-15 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In November 2018, the FASB issued Accounting Standards Update 2018-18, Collaborative Arrangements (Topic 808)—Clarifying the Interaction between Topic 808 and Topic 606 (“ASU 2018-18”). The amendments in ASU 2018-18 make targeted improvements to U.S. GAAP for collaborative arrangements by clarifying that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation, and disclosure requirements. In addition, unit-of-account guidance in Topic 808 was aligned with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606. The Company applied the provisions of ASU 2018-18 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In March 2020, the SEC amended Rule 3-10 of Regulation S-X regarding the financial disclosure requirements for guarantors and issuers of guaranteed securities registered or being registered. Among other things, the amendments narrow the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamline the alternative disclosures required in lieu of those financial statements. The effective date of the amendment is January 4, 2021 with earlier voluntary compliance permitted. We have chosen to voluntarily comply with the amended rules effective during the three months ended March 31, 2020 and have included the required disclosures as a component of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Form 10-K as permitted by the amendments. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) which supersedes FASB Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight- line basis over the term of the lease, respectively. A lessee is also required to record a ROU asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The Company adopted the provisions of Topic 842 as of January 1, 2019 on a modified retrospective basis applying the guidance to leases existing as of this effective date. We elected to apply the available package of transitional practical expedients which permitted us not to reassess under the new standard our prior conclusions regarding lease identification, lease classification and initial direct costs. We have also elected to apply the short-term lease recognition exemption which means we will not recognize ROU assets or lease liabilities for leases that qualify both at transition and on a go-forward basis. In addition, we have elected to apply the practical expedient to not separate lease and non-lease components for our leases except for those related to certain limited supply arrangements. We will continue to report periods prior to January 1, 2019 in our financial statements under prior guidance as outlined in Topic 840. Upon adoption of Topic 842, the Company determined that there was no cumulative-effect adjustment to beginning retained earnings in the consolidated balance sheets. Adoption of the standard did not have a material impact on our consolidated statements of operations or cash flows. Refer to Note 6 Leases for additional information. In June 2018, the FASB issued Accounting Standards Update 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The changes took effect for the Company as of January 1, 2019. The impact of the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In August 2018, the FASB issued Accounting Standards Update 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”) . ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and added additional disclosures. The new standard is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020 with early adoption in any interim period permitted. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. The adoption of this guidance did not have a material impact on the Company’s disclosures. Accounting Standards Issued Not Yet Adopted In January 2020, the FASB issued Accounting Standards Update 2020-01, Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (“ASU 2020-01”) , which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity met |
Acquisitions and Other Transact
Acquisitions and Other Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Other Transactions | Acquisitions and Other Transactions Upjohn Business Combination Agreement On July 29, 2019, Mylan, Pfizer, Upjohn Inc., a wholly-owned subsidiary of Pfizer, and certain other affiliated entities entered into a Business Combination Agreement pursuant to which the Company would combine with the Upjohn Business in a Reverse Morris Trust transaction. The Upjohn Business was a global, primarily off-patent branded and generic established medicines business, which includes 20 primarily off-patent solid oral dose legacy brands, such as Lyrica, Lipitor, Celebrex and Viagra. The Combination was completed on November 16, 2020. Prior to the Combination and pursuant to a Separation and Distribution Agreement, Pfizer had, among other things, transferred to Viatris substantially all of the assets and liabilities comprising the Upjohn Business (the Separation) and, thereafter, Pfizer had distributed to Pfizer stockholders all of the issued and outstanding shares of Viatris (the Distribution). When the Distribution and Combination were complete, Pfizer stockholders as of the record date of the Distribution owned 57% of the outstanding shares of Viatris common stock and Mylan shareholders as of immediately before the Combination owned 43% of the outstanding shares of Viatris common stock, in each case on a fully diluted basis. Viatris also made a cash payment to Pfizer equal to $12 billion, which was funded with the proceeds of debt incurred by Upjohn prior to the Combination. The transaction involved multiple legal entity restructuring transactions and a reverse merger acquisition with Viatris representing the legal acquirer and Mylan representing the accounting acquirer of the Upjohn Business. In accordance with ASC 805, Business Combinations , Mylan is considered the accounting acquirer of the Upjohn Business and Viatris applied purchase accounting to the acquired assets and assumed liabilities of the Upjohn Business as of November 16, 2020. The debt incurred by Upjohn prior to the Combination was a liability assumed in purchase accounting. The fair value of the debt as of November 16, 2020 was $13.08 billion. The purchase price consists of the issuance of approximately 689.9 million Viatris shares of common stock at a fair value of approximately $10.73 billion based on the closing price of Mylan’s ordinary shares on November 13, 2020, as reported by the NASDAQ. In accordance with U.S. GAAP, the Company used the acquisition method of accounting to account for this transaction. Under the acquisition method of accounting, the assets acquired and liabilities assumed in the transaction have been recorded at their respective estimated fair values at the acquisition date. Acquisition related costs of approximately $602.9 million were incurred during the twelve months ended December 31, 2020, which were recorded primarily in SG&A in the consolidated statements of operations. The preliminary allocation of the $10.73 billion purchase price to the assets acquired and liabilities assumed under the Combination is as follows: (In millions) Current assets (excluding inventories and net of cash acquired) $ 2,841.9 Inventories 2,588.9 Property, plant and equipment 1,394.1 Identified intangible assets 18,040.0 Goodwill 2,107.5 Deferred income tax benefit 1,481.9 Other assets 792.1 Total assets acquired $ 29,246.4 Current liabilities 2,760.2 Long-term debt, including current portion 13,076.2 Deferred tax liabilities 1,656.9 Other noncurrent liabilities 1,441.5 Net assets acquired (net of $415.8 of cash acquired) $ 10,311.6 The preliminary fair value estimates for the assets acquired and liabilities assumed were based upon preliminary calculations, valuations and assumptions that are subject to change as the Company obtains additional information during the measurement period (up to one year from the acquisition date). The primary areas subject to change relate to the finalization of the working capital components, the valuation of intangible and tangible assets and income taxes. We expect that the new company will transform and accelerate each businesses’ ability to serve patients’ needs and expand their capabilities across more than 165 markets by combining two highly complementary businesses. Mylan brings a diverse portfolio across many geographies and key therapeutic areas, such as central nervous system and anesthesia, infectious disease and cardiovascular, as well as a robust pipeline, high-quality manufacturing and supply chain excellence. The Upjohn Business brings trusted, iconic brands, such as Lipitor® (atorvastatin calcium), Celebrex® (celecoxib) and Viagra® (sildenafil), and proven commercialization capabilities, including leadership positions in China and other emerging markets. The Company recorded a step-up in the fair value of inventory of approximately $1.43 billion. During the twelve months ended December 31, 2020, the Company recorded amortization of the inventory step-up of approximately $238.2 million, which is included in cost of sales in the consolidated statements of operations. In addition, a step-up in the fair value of property, plant and equipment of approximately $390.0 million was recognized. The related depreciation is being expensed over a service life of five The identified intangible assets of $18.04 billion are comprised of product rights and are being amortized over a weighted average useful life of 15 years. Significant assumptions utilized in the valuation of identified intangible assets were based on company specific information and projections which are not observable in the market and are thus considered Level 3 measurements as defined by U.S. GAAP. The goodwill of $2.11 billion arising from the Combination consisted largely of the value of the employee workforce and products to be sold in new markets leveraging the combined entity. The newly acquired operations have been included within each of the Company’s segments for the twelve months ended December 31, 2020. In addition, an allocation of the goodwill was assigned to the respective segments. None of the goodwill recognized in this transaction is expected to be deductible for income tax purposes. The Company recorded a fair value adjustment of approximately $759.4 million related to the long-term debt assumed as part of the acquisition. The fair value of long-term debt as of the Combination date was determined by broker or dealer quotations, which is classified as Level 2 in the fair value hierarchy. The total fair value adjustment is being amortized as a reduction to interest expense over the maturity dates of the related debt instruments. The operating results of the Upjohn Business have been included in the Company’s consolidated statements of operations since the acquisition date. The total revenues of the Upjohn Business for the period from the acquisition date to December 31, 2020, were $866.5 million and net loss, net of tax, was approximately $360.9 million. The net loss for the period includes the effect of the purchase accounting adjustments and acquisition related costs. Unaudited Pro Forma Financial Results The following table presents supplemental unaudited pro forma information for the Combination, as if it had occurred on January 1, 2019. The unaudited pro forma results reflect certain adjustments related to past operating performance and acquisition accounting adjustments, such as increased depreciation and amortization expense based on the fair value of assets acquired, the impact of transaction costs and the related income tax effects. The unaudited pro forma results do not include any anticipated synergies which may be achievable, or have been achieved, subsequent to the closing of the Combination. Accordingly, the unaudited pro forma results are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed on the stated dates above, nor are they indicative of the future operating results of Viatris and its subsidiaries. Year Ended Year Ended (Unaudited, in millions, except per share amounts) December 31, 2020 December 31, 2019 Total revenues $ 18,305.6 $ 21,602.0 Net Earnings $ 1,339.9 $ 2,208.5 Earnings per share: Basic $ 1.11 $ 1.83 Diluted $ 1.11 $ 1.83 Weighted average shares outstanding: Basic 1,206.8 1,205.6 Diluted 1,207.7 1,206.4 TOBI Purchase Agreement On August 31, 2018, the Company completed an agreement (for purposes of this section, the “purchase agreement”) with certain subsidiaries of Novartis to purchase the worldwide rights to their global cystic fibrosis products consisting of the TOBI Podhaler® and TOBI® solution. Under the terms of the purchase agreement, Novartis received fixed consideration of $463.0 million, which consisted of $240.0 million which was paid at closing, $130.0 million which was paid in August 2019 and $93.0 million which was paid in August 2020. The Company also entered into a supply agreement with Novartis to purchase the products for up to three years from the date of closing and initially recorded a liability of approximately $91.8 million related to supply obligations. Additionally, Novartis was also eligible to receive a contingent payment of up to $20.0 million if the Company did not acquire the Facility (as defined in the glossary), which the Company accrued for at closing. The Company originally accounted for this transaction as an asset acquisition since the exercise of the option agreement (described below) was not deemed probable at the time of the closing of the purchase agreement and accordingly recognized an intangible asset for the product rights of $574.8 million on the closing date of the purchase agreement. In conjunction with the purchase agreement, Mylan and Novartis entered into an option agreement pursuant to which Novartis granted Mylan an exclusive option to acquire certain equipment and employees relating to the Novartis TOBI Podhaler® production facility in San Carlos, California. The option also included the transfer of certain agreements to Mylan. On May 28, 2019, Mylan notified Novartis of its election to exercise the purchase option. As a result of the option exercise, Novartis was no longer eligible to receive the contingent payment and during the second quarter of 2019 the Company reversed the accrual for the $20.0 million contingent payment with the offset being a reduction in the value of the intangible asset. This transaction closed in the third quarter of 2019, and the Company paid Novartis $10.0 million for the Facility. In addition, the Company received reimbursement from Novartis for certain restructuring and other costs at the Facility and has purchased the remaining inventory at closing. As a result of the option exercise and the acquisition of the Facility, the Company has accounted for these transactions as a single transaction and revised its accounting to an acquisition of a business under ASC Topic 805 Business Combinations . The allocation of the $481.9 million purchase price to the assets acquired and liabilities assumed for this business is as follows: (In millions) Current assets $ 29.2 Property, plant and equipment 30.0 Intangible and other noncurrent assets 496.7 Total assets acquired 555.9 Current liabilities (54.0) Long-term debt and other noncurrent obligations (20.0) Net assets acquired $ 481.9 The identified intangible assets are comprised of product rights with a weighted average useful life of ten years. The impact of the revised accounting included a reduction of approximately $100.0 million in value of the intangible assets and liabilities related to an unfavorable supply contract and the contingent payment. Significant assumptions utilized in the valuation of identified intangible assets were based on company specific information and projections which are not observable in the market and are thus considered Level 3 measurements as defined by U.S. GAAP. The acquisition did not have a material impact on the Company’s results of operations since the acquisition date or on a pro forma basis for the year ended December 31, 2019. Other Transactions In December 2020, Viatris and Pfizer terminated their strategic collaboration for generic drugs in Japan pursuant to an amendment and termination agreement. Under the prior collaboration agreement, both parties contributed products, which Pfizer distributed to third-parties in the Japan market. Under the terms of the amendment and termination agreement, Viatris purchased all collaboration related inventory held by Pfizer. As a result of the termination, and the repurchase of collaboration inventory, the Company reduced revenue by $86.5 million. In September 2020 the Company entered into an agreement to acquire the related intellectual property and commercialization rights of Aspen’s thrombosis product portfolio in Europe for €641.9 million. The portfolio consists of well-established injectable anticoagulants sold in Europe under the brand names, and variations of the brand names, Arixtra, Fraxiparine, Mono-Embolex and Orgaran. Upon closing of the transaction in November 2020, the Company made a payment of €263.2 million to Aspen with the remaining payment of €378.7 million due on June 25, 2021. The Company accounted for this transaction as an asset acquisition and recognized an intangible asset of €641.9 million for the product rights, which is being amortized over a useful life of 8 years. On February 28, 2018, the Company and Revance entered into the Revance Collaboration Agreement pursuant to which the Company and Revance are collaborat exclusively, on a world-wide basis (excluding Japan), to develop, manufacture and commercialize a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX®. Under the Revance Collaboration Agreement, the Company is primarily responsible for (a) clinical development activities outside of North America (excluding Japan) (the “ex-U.S. Mylan territories”), (b) regulatory activities, and (c) commercialization for any approved product. Revance is primarily responsible for (a) non-clinical development activities, (b) clinical development activities in North America, and (c) manufacturing and supply of clinical drug substance and drug product; Revance is solely responsible for an initial portion of non-clinical development costs. The remaining portion of any non-clinical development costs and clinical development costs for obtaining approval in the U.S. and Europe is shared equally between the parties, and the Company is responsible for all other clinical development costs and commercialization expenses. Upon closing, Revance received a non-refundable upfront payment of $25.0 million. In addition, under the Revance Collaboration Agreement, Revance can receive potential development milestone payments of up to $100.0 million, in the aggregate, upon the achievement of specified clinical and regulatory milestones and potential tiered sales milestones of up to $225.0 million. In addition, Viatris will pay Revance royalties on sales of the biosimilar in the ex-U.S. Viatris territories. The Company accounted for this transaction as an asset acquisition of IPR&D and the total upfront payment was expensed as a component of R&D expense during the year ended December 31, 2018. Under the agreement, the Company had an option to terminate the program. On June 1, 2020, the Company and Revance announced a decision to continue the development program for a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX®. As a result, during the year ended December 31, 2020, the Company recorded $30 million of R&D expense for a milestone payment that was due upon the decision to continue the program. During the year ended December 31, 2018, the Company completed four agreements to acquire certain intellectual property rights and marketing authorizations for products that were in the development stage, including agreements with FKB, Mapi Pharma Ltd., and Lupin Limited. The Company also completed the acquisition of intellectual property rights and marketing authorizations related to a commercialized product in certain rest of world markets for $220.0 million, of which $160.0 million was paid at closing, $20.0 million was paid in the fourth quarter of 2018 and the remaining amount was paid in the second quarter of 2019. The Company is accounting for these transactions as asset acquisitions and a useful life of five years is being used to amortize the asset related to the commercialized product. The Company recorded expense of approximately $53.7 million as a component of R&D expense related to non-refundable upfront payments for agreements for products in development during the year ended December 31, 2018. Certain of the agreements include additional development and commercial milestones. On February 22, 2018, the Company in-licensed European rights to Hulio™, a biosimilar to AbbVie’s Humira® (adalimumab), including a sub-license to certain of AbbVie’s European patents, from FKB. On February 27, 2019, the Company updated its arrangements with FKB for the commercialization of Hulio™. Under the updated arrangements, Mylan has in-licensed exclusive global commercialization rights for Hulio™. The Company accounted for this transaction as an asset acquisition of IPR&D and a net non-contingent amount paid to FKB of approximately $23.3 million was expensed as a component of R&D expense during the year ended December 31, 2019. On December 1, 2018, the Company and certain subsidiaries of Aspen Pharmacare Holdings Limited entered into an agreement for Mylan to distribute a portfolio of prescription and OTC products in Australia and New Zealand. The agreement included an option for Mylan to purchase the rights to the portfolio. In March 2019, the Company exercised the option, and acquired the product rights in the second quarter of 2019 for approximately $130.9 million. The purchase consideration of approximately $130.9 million included a payment made at closing of approximately $64.3 million and a payment made in 2020 totaling approximately $66.6 million. The Company accounted for this transaction as an asset acquisition and recognized an intangible asset for the product rights of approximately $130.9 million. The intangible asset is being amortized over a useful life of five years. The Company has entered into certain agreements to acquire intellectual property rights for products that are in the development stage. These agreements include additional development and commercial milestones. During the year ended December 31, 2019, the Company recorded expense of approximately $56.1 million as a component of R&D expense related to non-refundable upfront and milestone payments during the year. |
Revenue Recognition and Account
Revenue Recognition and Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Accounts Receivable | Revenue from Contracts with Customers The following table presents the Company’s net sales by product category for each of our reportable segments for the years ended December 31, 2020, 2019, and 2018, respectively: (In millions) 2020 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 3,920.7 253.9 617.0 443.3 5,234.9 Complex Gx and Biosimilars 1,202.6 0.7 42.8 49.4 1,295.5 Generics 3,387.6 5.3 535.5 1,361.1 5,289.5 Total Viatris $ 8,510.9 $ 259.9 $ 1,195.3 $ 1,853.8 $ 11,819.9 (In millions) 2019 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 4,199.1 207.6 533.3 422.1 5,362.1 Complex Gx and Biosimilars 1,127.4 0.4 23.8 59.7 1,211.3 Generics 2,913.5 6.6 635.4 1,241.4 4,796.9 Total Viatris $ 8,240.0 $ 214.6 $ 1,192.5 $ 1,723.2 $ 11,370.3 (In millions) 2018 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 4,424.5 164.3 503.4 431.5 5,523.7 Complex Gx and Biosimilars 464.6 — 22.4 35.6 522.6 Generics 3,400.0 3.8 607.0 1,211.6 5,222.4 Total Viatris $ 8,289.1 $ 168.1 $ 1,132.8 $ 1,678.7 $ 11,268.7 Variable Consideration The following table presents a reconciliation of gross sales to net sales by each significant category of variable consideration during the years ended December 31, 2020, 2019 and 2018, respectively: Year Ended December 31, (In millions) 2020 2019 2018 Gross sales $ 19,899.1 $ 19,012.2 $ 19,588.1 Gross to net adjustments: Chargebacks (3,656.2) (3,309.6) (3,352.2) Rebates, promotional programs and other sales allowances (3,765.5) (3,629.3) (4,235.6) Returns (329.7) (237.9) (261.6) Governmental rebate programs (327.8) (465.1) (470.0) Total gross to net adjustments $ (8,079.2) $ (7,641.9) $ (8,319.4) Net sales $ 11,819.9 $ 11,370.3 $ 11,268.7 The following is a rollforward of the categories of variable consideration during 2020: (In millions) Balance at December 31, 2019 Current Provision Related to Sales Made in the Current Period Balances Acquired Through Acquisition Checks/ Credits Issued to Third Parties Effects of Foreign Exchange Balance at December 31, 2020 Chargebacks $ 518.6 $ 3,656.2 $ 92.2 $ (3,685.9) $ 4.1 $ 585.2 Rebates, promotional programs and other sales allowances 1,084.1 3,765.5 627.2 (3,896.5) (4.0) 1,576.3 Returns 393.0 329.7 128.0 (314.8) 4.0 539.9 Governmental rebate programs 312.8 327.8 39.4 (358.8) (7.9) 313.3 Total $ 2,308.5 $ 8,079.2 $ 886.8 $ (8,256.0) $ (3.8) $ 3,014.7 Accruals for these provisions are presented in the consolidated financial statements as reductions in determining net revenues and in accounts receivable and other current liabilities. Accounts receivable are presented net of allowances relating to these provisions, which were comprised of the following at December 31, 2020 and 2019, respectively: (In millions) December 31, December 31, Accounts receivable $ 1,802.9 $ 1,512.0 Other current liabilities 1,211.8 796.5 Total $ 3,014.7 $ 2,308.5 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Selected balance sheet components consist of the following: Cash and restricted cash (In millions) December 31, December 31, December 31, Cash and cash equivalents $ 844.4 $ 475.6 $ 388.1 Restricted cash, included in prepaid expenses and other current assets 5.6 15.5 1.2 Cash, cash equivalents and restricted cash $ 850.0 $ 491.1 $ 389.3 Accounts receivable, net (In millions) December 31, 2020 December 31, 2019 Trade receivables, net $ 3,891.3 $ 2,640.1 Other receivables 952.5 418.7 Accounts receivable, net $ 4,843.8 $ 3,058.8 Total allowances for doubtful accounts were $159.9 million and $72.8 million at December 31, 2020 and 2019, respectively. Viatris performs ongoing credit evaluations of its customers and generally does not require collateral. Approximately 12% and 21% of the accounts receivable balances represent amounts due from three customers at December 31, 2020 and December 31, 2019, respectively. Accounts Receivable Factoring Arrangements We have entered into accounts receivable factoring agreements with financial institutions to sell certain of our non-U.S. accounts receivable. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. Our factoring agreements do not allow for recourse in the event of uncollectibility, and we do not retain any interest in the underlying accounts receivable once sold. We derecognized $153.0 million and $90.1 million of accounts receivable as of December 31, 2020 and 2019 under these factoring arrangements, respectively. Inventories (In millions) December 31, 2020 December 31, 2019 Raw materials $ 958.4 $ 886.8 Work in process 1,438.1 417.2 Finished goods 3,075.4 1,366.9 Inventories $ 5,471.9 $ 2,670.9 Inventory reserves totaled $353.6 million and $268.9 million at December 31, 2020 and 2019, respectively. Included as a component of cost of sales is expense related to the net realizable value of inventories of $206.1 million, $399.2 million and $343.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. Prepaid expenses and other current assets (In millions) December 31, 2020 December 31, 2019 Prepaid expenses $ 267.8 $ 156.7 Available-for-sale fixed income securities 39.1 26.8 Fair value of financial instruments 118.6 43.3 Equity securities 45.8 39.0 Other current assets 1,236.1 286.2 Prepaid expenses and other current assets $ 1,707.4 $ 552.0 Prepaid expenses consist primarily of prepaid rent, insurance and other individually insignificant items. Property, plant and equipment, net (In millions) December 31, 2020 December 31, 2019 Machinery and equipment $ 3,235.0 $ 2,523.7 Buildings and improvements 1,954.8 1,197.3 Construction in progress 376.3 277.3 Land and improvements 155.8 124.6 Gross property, plant and equipment 5,721.9 4,122.9 Accumulated depreciation 2,262.0 1,973.3 Property, plant and equipment, net $ 3,459.9 $ 2,149.6 Capitalized software costs included in our consolidated balance sheets were $70.9 million and $85.8 million, net of accumulated depreciation, at December 31, 2020 and 2019, respectively. The Company periodically reviews the estimated useful lives of assets and makes adjustments when appropriate. Depreciation expense was approximately $289.7 million, $256.1 million and $279.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Other assets (In millions) December 31, 2020 December 31, 2019 Equity method investments, clean energy investments $ 47.9 $ 92.2 Operating lease right-of-use assets 323.6 254.6 Other long-term assets 676.0 58.2 Other assets $ 1,047.5 $ 405.0 Accounts payable (In millions) December 31, 2020 December 31, 2019 Trade accounts payable $ 1,345.7 $ 1,061.9 Other payables 558.5 466.2 Accounts payable $ 1,904.2 $ 1,528.1 Other current liabilities (In millions) December 31, 2020 December 31, 2019 Accrued sales allowances $ 1,211.8 $ 796.5 Payroll and employee benefit liabilities 828.2 467.1 Legal and professional accruals, including litigation accruals 362.9 138.2 Contingent consideration 100.5 120.4 Restructuring 149.2 26.0 Equity method investments, clean energy investments 47.5 47.7 Accrued interest 90.9 59.1 Fair value of financial instruments 103.6 12.9 Operating lease liability 92.9 76.7 Other 1,973.2 575.3 Other current liabilities $ 4,960.7 $ 2,319.9 Other long-term obligations (In millions) December 31, 2020 December 31, 2019 Employee benefit liabilities $ 1,020.4 $ 408.9 Equity method investments, clean energy investments — 57.2 Contingent consideration 123.1 130.3 Tax related items, including contingencies 469.5 109.6 Operating lease liability 229.5 175.7 Accrued Restructuring 134.8 — Other 505.8 79.1 Other long-term obligations $ 2,483.1 $ 960.8 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases of real estate, consisting primarily of administrative offices, manufacturing and distribution facilities, and R&D facilities. We also have operating leases of certain equipment, primarily automobiles, and certain limited supply arrangements. As of December 31, 2020, the Company recognized a ROU asset of $323.6 million and a total lease liability of $322.4 million. The Company’s ROU assets are recorded in other assets. The related lease liability balances are recorded in other current liabilities and other long-term obligations in the consolidated balance sheets. Refer to Note 5 Balance Sheet Components for additional information. ROU assets and liabilities are recognized at the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use an applicable incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Options to extend or terminate the ROU assets are reviewed at lease inception and these options are accounted for when they are reasonably certain of being exercised. Other information related to leases was as follows: As of December 31, 2020 Remaining lease terms 1 year to 25 years Weighted-average remaining lease term 7 years Weighted-average discount rate 3.1 % As of December 31, 2020, maturities of lease liabilities were as follows: (In millions) Year ending December 31, 2021 89.9 2022 68.0 2023 46.6 2024 34.6 2025 27.7 Thereafter 95.1 $ 361.9 As of December 31, 2020, we have additional operating leases, primarily for production and distribution facilities, that have not yet commenced totaling approximately $18.7 million. These leases are expected to commence in 2021 and have lease terms of 4 years to 9 years. For the years ended December 31, 2020, 2019 and 2018, the Company had operating lease expense of approximately $80.7 million, $87.6 million and $78.9 million, respectively. Operating lease costs are classified primarily as selling, general and administrative expenses and cost of sales. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method InvestmentsThe Company currently has three equity method investments in limited liability companies that own refined coal production plants whose activities qualify for income tax credits under Section 45 of the Code. The Company does not consolidate these entities as we have determined that we are not the primary beneficiary of these entities and do not have the power to individually direct the activities of these entities. Accordingly, these investments are accounted for under the equity method of accounting. For each of the clean energy investments, the Company has entered into notes payable with the respective project sponsor, which in part will be paid to the sponsor as certain production levels are met. The Company’s clean energy investments will wind down upon the expiration of the refined coal tax credit at the end of 2021. During the years ended December 31, 2020 and 2019, the Company reduced its long-term obligations for its three investments as a result of lower than anticipated production levels and lower expected future variable debt payments to the respective project sponsor. The Company recognized a net gain of approximately $21.4 million and $7.0 million, respectively, which was recognized as a component of the net loss of the equity method investments in the consolidated statements of operations. The carrying values and respective balance sheet locations of the Company’s clean energy investments were as follows at December 31, 2020 and 2019, respectively: (In millions) December 31, 2020 December 31, 2019 Other assets $ 47.9 $ 92.2 Total liabilities 47.5 104.9 Included in other current liabilities 47.5 47.7 Included in other long-term obligations — 57.2 Summarized financial information, in the aggregate, for the Company’s significant equity method investments on a 100% basis as of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018 are as follows: (In millions) December 31, 2020 December 31, 2019 Current assets $ 38.9 $ 39.3 Noncurrent assets 1.0 1.7 Total assets 39.9 41.0 Current liabilities 33.0 36.1 Noncurrent liabilities 1.8 1.7 Total liabilities 34.8 37.8 Net assets $ 5.1 $ 3.2 Year Ended December 31, (In millions) 2020 2019 2018 Total revenues $ 374.5 $ 385.0 $ 483.3 Gross loss (4.6) (4.4) (21.1) Operating and non-operating expense 19.0 20.0 21.9 Net loss $ (23.6) $ (24.4) $ (43.0) The Company’s net losses from its equity method investments include amortization expense related to the excess of the cost basis of the Company’s investment over the underlying assets of each individual investee. For the years ended December 31, 2020, 2019 and 2018, the Company recognized net losses from equity method investments of $48.4 million, $62.1 million, and $78.7 million, respectively, which were recognized as a component of other expense, net in the consolidated statements of operations. The Company recognizes the income tax credits and benefits from the clean energy investments as part of its provision for income taxes. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows: (In millions) Developed Markets Greater China JANZ Emerging Markets Total Balance at December 31, 2018: Goodwill $ 8,410.9 $ 68.6 $ 584.1 $ 1,069.2 $ 10,132.8 Accumulated impairment losses (385.0) — — — (385.0) 8,025.9 68.6 584.1 1,069.2 9,747.8 Foreign currency translation (152.9) (0.8) 0.7 (4.2) (157.2) 7,873.0 67.8 584.8 1,065.0 9,590.6 Balance at December 31, 2019: Goodwill 8,258.0 67.8 584.8 1,065.0 9,975.6 Accumulated impairment losses (385.0) — — — (385.0) 7,873.0 67.8 584.8 1,065.0 9,590.6 Acquisitions 704.3 652.8 217.4 533.0 2,107.5 Foreign currency translation 607.2 17.7 61.8 (37.8) 648.9 9,184.5 738.3 864.0 1,560.2 12,347.0 Balance at December 31, 2020 Goodwill 9,569.5 738.3 864.0 1,560.2 12,732.0 Accumulated impairment losses (385.0) — — — (385.0) $ 9,184.5 $ 738.3 $ 864.0 $ 1,560.2 $ 12,347.0 As a result of the Combination, the Company revised its reportable segments in the fourth quarter of 2020. The Company has four reportable segments: Developed Markets, Greater China, JANZ and Emerging Markets. Refer to Note 15 Segment Information included in Part II. Item 8 of this Form 10-K for additional information. Intangible assets consist of the following components at December 31, 2020 and 2019: (In millions) Weighted Average Life (Years) Cost Accumulated Amortization Net Book Value December 31, 2020 Product rights, licenses and other (1) 15 $ 40,404.1 $ 10,801.6 $ 29,602.5 In-process research and development 80.7 — 80.7 $ 40,484.8 $ 10,801.6 $ 29,683.2 December 31, 2019 Product rights, licenses and other (1) 15 $ 20,109.1 $ 8,579.5 $ 11,529.6 In-process research and development 120.3 — 120.3 $ 20,229.4 $ 8,579.5 $ 11,649.9 ____________ (1) Represents amortizable intangible assets. Other intangibles consist principally of customer lists and contractual rights. Product rights and licenses are primarily comprised of the products marketed at the time of acquisition. These product rights and licenses relate to numerous individual products, the net book value of which, by product category, is as follows: (In millions) Developed Markets Greater China JANZ Emerging Markets December 31, 2020 Brands $ 10,988.1 $ 4,372.3 $ 2,377.0 $ 4,478.7 $ 22,216.1 Complex Gx and Biosimilars 272.5 — 2.3 — 274.8 Generics 6,253.9 12.7 423.9 417.3 7,107.8 Total Product Rights and Licenses $ 17,514.5 $ 4,385.0 $ 2,803.2 $ 4,896.0 $ 29,598.7 (In millions) Developed Markets Greater China JANZ Emerging Markets December 31, 2019 Brands $ 5,212.3 $ 161.1 $ 165.3 $ 25.3 $ 5,564.0 Complex Gx and Biosimilars 313.2 — 2.7 — 315.9 Generics 5,090.3 12.9 170.4 364.6 5,638.2 Total Product Rights and Licenses $ 10,615.8 $ 174.0 $ 338.4 $ 389.9 $ 11,518.1 Amortization expense and intangible asset impairment charges, which are included as a component of amortization expense, which is classified primarily within cost of sales in the consolidated statements of operations, for the years ended December 31, 2020, 2019 and 2018 was as follows: Year ended December 31, (In millions) 2020 2019 2018 Intangible asset amortization expense $ 1,605.8 $ 1,582.7 $ 1,606.4 IPR&D intangible asset impairment charges 37.4 138.3 117.7 Finite-lived intangible asset impairment charges 45.0 42.3 106.3 Total intangible asset amortization expense (including impairment charges) $ 1,688.2 $ 1,763.3 $ 1,830.4 The assessment for impairment of finite-lived intangibles is based on our ability to recover the carrying value of the long-lived assets or asset grouping by analyzing the expected future undiscounted pre-tax cash flows specific to the asset or asset grouping. If the carrying amount is greater than the undiscounted cash flows, the Company recognizes an impairment loss for the excess of the carrying amount over the estimated fair value based on discounted cash flows. Significant management judgment is involved in estimating the recoverability of these assets and is dependent upon the accuracy of the assumptions used in making these estimates, as well as how the estimates compare to the eventual future operating performance of the specific asset or asset grouping. The fair value of finite-lived intangible assets was calculated as the present value of the estimated future net cash flows using a market rate of return. The assumptions inherent in the estimated future cash flows include, among other things, the impact of the current competitive environment and future market expectations. Discount rates ranging between 9.0% and 11.0% were utilized in the valuations performed during the years ended December 31, 2020, 2019 and 2018. At December 31, 2020 and 2019, the Company’s finite-lived intangible assets totaled $29.60 billion and $11.53 billion, respectively. Any future long-lived assets impairment charges could have a material impact in the Company’s consolidated financial condition and results of operations. The Company’s IPR&D assets are tested at least annually for impairment or upon the occurrence of a triggering event. Impairment is determined to exist when the fair value of IPR&D assets, which is based upon updated forecasts and commercial development plans, is less than the carrying value of the assets being tested. The fair value of IPR&D was calculated as the present value of the estimated future net cash flows using a market rate of return. The assumptions inherent in the estimated future cash flows include, among other things, the impact of changes to the development programs, the projected development and regulatory time frames and the current competitive environment. Discount rates ranging between 9.0% and 11.0%, 9.0% and 11.0%, and 9.5% and 13.0% were utilized in the valuations performed during the years ended December 31, 2020, 2019 and 2018 respectively. The fair value of both IPR&D and finite-lived intangible assets was determined based upon detailed valuations employing the income approach which utilized Level 3 inputs, as defined in Note 9 Financial Instruments and Risk Management. Changes to any of the Company’s assumptions including changes to or abandonment of development programs, regulatory timelines, discount rates or the competitive environment related to the assets could lead to future material impairment charges. The Company reviews goodwill for impairment annually on April 1st or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. As a result of the decline in the Mylan share price during the first quarter of 2020, and the general uncertainty and volatility in the economic environments in which the Company operates, including the impacts of the COVID-19 pandemic, the Company performed an interim goodwill impairment test as of March 31, 2020. The Company performed the annual goodwill impairment test as of April 1, 2020. There were no significant changes from the interim goodwill test performed at March 31, 2020 and the results were consistent with the interim goodwill impairment test. Mylan performed both the interim and annual goodwill impairment tests on a quantitative basis for its four reporting units, North America Generics, North America Brands, Europe and Rest of World. In estimating each reporting unit’s fair value, Mylan performed an extensive valuation analysis, utilizing both income and market-based approaches, except for the North America Brands reporting unit where the fair value was estimated utilizing the income approach. The determination of the fair value of the reporting units requires management to make significant estimates and assumptions that affect the reporting unit’s expected future cash flows. These estimates and assumptions, utilizing Level 3 inputs, primarily include, but are not limited to, market multiples, control premiums, the discount rate, terminal growth rates, operating income before depreciation and amortization, and capital expenditures forecasts. As of March 31, 2020 and April 1, 2020, the allocation of the goodwill among the reporting units was as follows: North America Generics $2.60 billion, North America Brands $0.65 billion, Europe $4.43 billion and Rest of World $1.65 billion. As of March 31, 2020 and April 1, 2020, Mylan determined that the fair value of the North America Generics, North America Brands and Rest of World reporting units was substantially in excess of the respective unit’s carrying value. However, when compared to the April 1, 2019 test, the fair value of the overall business declined because of future forecasts and the decline in share price. For the Europe reporting unit, the estimated fair value exceeded its carrying value by approximately $1.2 billion or 11.0% for both the interim and annual goodwill impairment test. As it relates to the income approach for the Europe reporting unit at March 31, 2020 and April 1, 2020, the Company forecasted cash flows for the next 5 years. During the forecast period, the revenue compound annual growth rate was approximately 7.5%. A terminal year value was calculated with a 2.0% revenue growth rate applied. The discount rate utilized was 11.0% and the estimated tax rate was 25.5%. Under the market-based approach, we utilized an estimated range of market multiples of 8.0 to 9.5 times EBITDA plus a control premium of 15.0%. If all other assumptions are held constant, a reduction in the terminal value growth rate by 3.5% or an increase in discount rate by 3.5% would result in an impairment charge for the Europe reporting unit. Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions, especially as it relates to the key assumptions detailed, could have a significant impact on the fair value of the reporting units. Intangible asset amortization expense for the years ended December 31, 2021 through 2025 is estimated to be as follows: (In millions) 2021 $ 2,652 2022 2,578 2023 2,414 2024 2,296 2025 2,198 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments And Risk Management | Financial Instruments and Risk Management The Company is exposed to certain financial risks relating to its ongoing business operations. The primary financial risks that are managed by using derivative instruments are foreign currency risk and interest rate risk. Foreign Currency Risk Management In order to manage certain foreign currency risks, the Company enters into foreign exchange forward contracts to mitigate risk associated with changes in spot exchange rates of mainly non-functional currency denominated assets or liabilities. The foreign exchange forward contracts are measured at fair value and reported as current assets or current liabilities in the consolidated balance sheets. Any gains or losses on the foreign exchange forward contracts are recognized in earnings in the period incurred in the consolidated statements of operations. The Company has also entered into forward contracts to hedge forecasted foreign currency denominated sales from certain international subsidiaries. These contracts are designated as cash flow hedges to manage foreign currency transaction risk and are measured at fair value and reported as current assets or current liabilities in the consolidated balance sheets. Any changes in the fair value of designated cash flow hedges are deferred in AOCE and are reclassified into earnings when the hedged item impacts earnings. Net Investment Hedges The Company may hedge the foreign currency risk associated with certain net investment positions in foreign subsidiaries by either borrowing directly in foreign currencies and designating all or a portion of the foreign currency debt as a hedge of the applicable net investment position or entering into foreign currency swaps that are designated as hedges of net investments. The Company has designated certain Euro borrowings as a hedge of its investment in certain Euro-functional currency subsidiaries in order to manage foreign currency translation risk. Borrowings designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of AOCE until the sale or substantial liquidation of the underlying net investments. In addition, the Company manages the related foreign exchange risk of the Euro borrowings not designated as net investment hedges through certain Euro denominated financial assets and forward currency swaps. The following table summarizes the principal amounts of the Company’s outstanding Euro borrowings and the notional amounts of the Euro borrowings designated as net investment hedges: Notional Amount Designated as a Net Investment Hedge (in millions) Principal Amount December 31, December 31, 1.250% Euro Senior Notes due 2020 € 750.0 € — € 104.0 0.816% Euro Senior Notes due 2022 750.0 750.0 — 2.250% Euro Senior Notes due 2024 1,000.0 1,000.0 1,000.0 1.023% Euro Senior Notes due 2024 750.0 750.0 — 2.125% Euro Senior Notes due 2025 500.0 500.0 500.0 1.362% Euro Senior Notes due 2027 850.0 850.0 — 3.125% Euro Senior Notes due 2028 750.0 750.0 750.0 1.908% Euro Senior Notes due 2032 1,250.0 1,250.0 — Foreign currency forward contracts 105.6 105.6 — Total € 6,705.6 € 5,955.6 € 2,354.0 Interest Rate Risk Management The Company enters into interest rate swaps from time to time in order to manage interest rate risk associated with the Company’s fixed-rate and floating-rate debt. Interest rate swaps that meet specific accounting criteria are accounted for as fair value or cash flow hedges. All derivative instruments used to manage interest rate risk are measured at fair value and reported as current assets or current liabilities in the consolidated balance sheets. For fair value hedges, the changes in the fair value of both the hedging instrument and the underlying debt obligations are included in interest expense. For cash flow hedges, the change in fair value of the hedging instrument is deferred through AOCE and is reclassified into earnings when the hedged item impacts earnings. Cash Flow Hedging Relationships The Company’s interest rate swaps designated as cash flow hedges fix the interest rate on a portion of the Company’s variable-rate debt or hedge part of the Company’s interest rate exposure associated with the variability in the future cash flows attributable to changes in interest rates. Any changes in fair value are included in earnings or deferred through AOCE, depending on the nature and effectiveness of the offset. Any ineffectiveness in a cash flow hedging relationship is recognized immediately in earnings in the consolidated statements of operations. Fair Value Hedging Relationships The Company's interest rate swaps designated as fair value hedges convert the fixed rate on a portion of the Company's fixed-rate senior notes to a variable rate. Any changes in the fair value of these derivative instruments, as well as the offsetting change in fair value of the portion of the fixed-rate debt being hedged, is included in interest expense. The total notional amount of the Company’s fair value hedge was $750 million as of December 31, 2019 and terminated during 2020. Credit Risk Management The Company regularly reviews the creditworthiness of its financial counterparties and does not expect to incur a significant loss from the failure of any counterparties to perform under any agreements. The Company is not subject to any obligations to post collateral under derivative instrument contracts. Certain derivative instrument contracts entered into by the Company are governed by master agreements, which contain credit-risk-related contingent features that would allow the counterparties to terminate the contracts early and request immediate payment should the Company trigger an event of default on other specified borrowings. The Company records all derivative instruments on a gross basis in the consolidated balance sheets. Accordingly, there are no offsetting amounts that net assets against liabilities. The Effect of Derivative Instruments in the Consolidated Balance Sheets Fair Values of Derivative Instruments Derivatives Designated as Hedging Instruments Asset Derivatives December 31, 2020 December 31, 2019 (In millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swaps Prepaid expenses and other current assets $ — Prepaid expenses and other current assets $ 22.3 Foreign currency forward contracts Prepaid expenses and other current assets 28.3 Prepaid expenses and other current assets 12.5 Total $ 28.3 $ 34.8 Liability Derivatives December 31, 2020 December 31, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign currency forward contracts Other current liabilities $ 0.8 Other current liabilities $ — $ 0.8 $ — The Effect of Derivative Instruments in the Consolidated Balance Sheets Fair Values of Derivative Instruments Derivatives Not Designated as Hedging Instruments Asset Derivatives December 31, 2020 December 31, 2019 (In millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign currency forward contracts Prepaid expenses and other current assets $ 90.3 Prepaid expenses and other current assets $ 8.5 Total $ 90.3 $ 8.5 Liability Derivatives December 31, 2020 December 31, 2019 (In millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign currency forward contracts Other current liabilities $ 102.8 Other current liabilities $ 12.9 Total $ 102.8 $ 12.9 The Effect of Derivative Instruments in the Consolidated Statements of Operations Derivatives in Fair Value Hedging Relationships Location of Gain or (Loss) Recognized in Earnings on Derivatives Amount of Gain or (Loss) Recognized in Earnings on Derivatives Year Ended December 31, (In millions) 2020 2019 2018 Interest rate swaps Interest expense $ 22.1 $ 18.7 $ (12.6) Total $ 22.1 $ 18.7 $ (12.6) Location of Gain or (Loss) Recognized in Earnings on Hedged Items Amount of Gain or (Loss) Recognized in Earnings on Hedging Items Year Ended December 31, (In millions) 2020 2019 2018 2023 Senior Notes (3.125% coupon) Interest expense $ (22.1) $ (18.7) $ 12.6 Total $ (22.1) $ (18.7) $ 12.6 In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The amount included in the above tables represents the fair value adjustment recognized at the date the interest rate swaps were settled. The Effect of Derivative Instruments in the Consolidated Statements of Comprehensive (Loss) Earnings Derivatives in Net Investment Hedging Relationships Amount of Gain or (Loss) Recognized in AOCE (Net of Tax) on Derivatives (Effective Portion) Year Ended December 31, (In millions) 2020 2019 2018 Foreign currency borrowings and forward contracts $ (346.4) $ 56.7 $ 108.9 Total $ (346.4) $ 56.7 $ 108.9 The Effect of Derivative Instruments in the Consolidated Statements of Comprehensive (Loss) Earnings Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in AOCE (Net of Tax) on Derivatives (Effective Portion) Year Ended December 31, (In millions) 2020 2019 2018 Foreign currency forward contracts $ 20.6 $ 16.6 $ (46.6) Interest rate swaps — 3.0 — Total $ 20.6 $ 19.6 $ (46.6) The Effect of Derivative Instruments in the Consolidated Statements of Operations Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) Reclassified from AOCE into Earnings (Effective Portion) Amount of Gain or (Loss) Reclassified from AOCE into Earnings (Effective Portion) Year Ended December 31, (In millions) 2020 2019 2018 Foreign currency forward contracts Net sales $ 4.8 $ (0.7) $ 6.2 Interest rate swaps Interest expense (4.5) (7.1) (7.7) Total $ 0.3 $ (7.8) $ (1.5) Location of Gain Excluded from the Assessment of Hedge Effectiveness Amount of Gaom Excluded from the Assessment of Hedge Effectiveness Year Ended December 31, (In millions) 2020 2019 2018 Foreign currency forward contracts Other expense, net $ 7.1 $ — $ — Total $ 7.1 $ — $ — At December 31, 2020, the Company expects that approximately $9.0 million of pre-tax net losses on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months. The Effect of Derivative Instruments in the Consolidated Statements of Operations Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Earnings on Derivatives Amount of Gain or (Loss) Recognized in Earnings on Derivatives Year Ended December 31, (In millions) 2020 2019 2018 Foreign currency option and forward contracts Other expense, net $ (10.1) $ (17.3) $ 34.8 Total $ (10.1) $ (17.3) $ 34.8 Fair Value Measurement Fair value is based on the price that would be received from the sale of an identical asset or paid to transfer an identical liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy has been established that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable market-based inputs other than quoted prices in active markets for identical assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considers counterparty credit risk in its assessment of fair value. Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above: December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Recurring fair value measurements Financial Assets Cash equivalents: Money market funds $ 0.9 $ — $ — $ 0.9 Total cash equivalents 0.9 — — 0.9 Equity securities: Exchange traded funds 45.1 — — 45.1 Marketable securities 0.7 — — 0.7 Total equity securities 45.8 — — 45.8 Available-for-sale fixed income investments: Corporate bonds — 17.8 — 17.8 U.S. Treasuries — 14.4 — 14.4 Agency mortgage-backed securities — 1.9 — 1.9 Asset backed securities — 4.6 — 4.6 Other — 0.4 — 0.4 Total available-for-sale fixed income investments — 39.1 — 39.1 Foreign exchange derivative assets — 118.6 — 118.6 Interest rate swap derivative assets — — — — Total assets at recurring fair value measurement $ 46.7 $ 157.7 $ — $ 204.4 Financial Liabilities Foreign exchange derivative liabilities $ — $ 103.6 $ — $ 103.6 Contingent consideration — — 223.6 223.6 Total liabilities at recurring fair value measurement $ — $ 103.6 $ 223.6 $ 327.2 December 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Recurring fair value measurements Financial Assets Cash equivalents: Money market funds $ 0.7 $ — $ — $ 0.7 Total cash equivalents 0.7 — — 0.7 Equity securities: Exchange traded funds 38.3 — — 38.3 Marketable securities 0.7 — — 0.7 Total equity securities 39.0 — — 39.0 Available-for-sale fixed income investments: Corporate bonds — 10.8 — 10.8 U.S. Treasuries — 9.5 — 9.5 Agency mortgage-backed securities — 2.3 — 2.3 Asset backed securities — 3.6 — 3.6 Other — 0.6 — 0.6 Total available-for-sale fixed income investments — 26.8 — 26.8 Foreign exchange derivative assets — 21.0 — 21.0 Interest rate swap derivative assets — 22.3 — 22.3 Total assets at recurring fair value measurement $ 39.7 $ 70.1 $ — $ 109.8 Financial Liabilities Foreign exchange derivative liabilities $ — $ 12.9 $ — $ 12.9 Contingent consideration — — 250.7 250.7 Total liabilities at recurring fair value measurement $ — $ 12.9 $ 250.7 $ 263.6 For financial assets and liabilities that utilize Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including the LIBOR yield curve, foreign exchange forward prices, and bank price quotes. For the years ended December 31, 2020 and 2019, there were no transfers between Level 1 and 2 of the fair value hierarchy. Below is a summary of valuation techniques for Level 1 and Level 2 financial assets and liabilities: • Cash equivalents — valued at observable net asset value prices. • Equity securities, exchange traded funds — valued at the active quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in other expense, net, in the consolidated statements of operations. • Equity securities, marketable securities — valued using quoted stock prices from public exchanges at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in other expense, net, in the consolidated statements of operations. • Available-for-sale fixed income investments — valued at the quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value, net of income taxes, are included in accumulated other comprehensive loss as a component of shareholders’ equity. • Interest rate swap derivative assets and liabilities — valued using the LIBOR/EURIBOR yield curves at the reporting date. Counterparties to these contracts are highly rated financial institutions. • Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices and spot rates at the reporting date. Counterparties to these contracts are highly rated financial institutions. Contingent Consideration In December 2011, the Company completed the acquisition of the exclusive worldwide rights to develop, manufacture and commercialize a generic equivalent to GlaxoSmithKline’s Advair® Diskus incorporating Pfizer’s respiratory delivery platform. The Company accounted for this transaction as a purchase of a business and utilized the acquisition method of accounting. On January 30, 2019, the Company received FDA approval of Wixela TM Inhub TM (fluticasone propionate and salmeterol inhalation powder, USP), the first generic of GlaxoSmithKline’s Advair Diskus ® . The commercial launch of the Wixela TM Inhub TM occurred in February 2019. As of December 31, 2020, the Company has a contingent consideration liability of $204.9 million related to the respiratory delivery platform. The fair value measurement of contingent consideration is determined using Level 3 inputs. The Company’s contingent consideration represents a component of the total purchase consideration for Pfizer’s respiratory delivery platform and certain other acquisitions. The measurement is calculated using unobservable inputs based on the Company’s own assumptions primarily related to the probability and timing of future development and commercial milestones and future profit sharing payments which are discounted using a market rate of return. At December 31, 2020 and 2019, discount rates ranging from 2.1% to 10.5% were utilized in the valuations. Significant changes in unobservable inputs could result in material changes to the contingent consideration liability. A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2018 to December 31, 2020 is as follows: (In millions) Current Portion (1) Long-Term Portion (2) Total Contingent Consideration Balance at December 31, 2018 $ 158.3 $ 197.0 $ 355.3 Payments (99.0) — (99.0) Reclassifications 57.6 (57.6) — Accretion — 14.8 14.8 Fair value loss (gain) (3) 3.5 (23.9) (20.4) Balance at December 31, 2019 $ 120.4 $ 130.3 $ 250.7 Payments (111.8) — (111.8) Reclassifications 58.1 (58.1) — Accretion — 11.6 11.6 Fair value loss (3) 33.8 39.3 73.1 Balance at December 31, 2020 $ 100.5 $ 123.1 $ 223.6 ____________ (1) Included in other current liabilities in the consolidated balance sheets. (2) Included in other long-term obligations in the consolidated balance sheets. (3) Included in litigation settlements and other contingencies, net in the consolidated statements of operations. 2019 Changes to Contingent Consideration: During the year ended December 31, 2019, the Company recorded a fair value gain of $20.4 million related to the respiratory delivery platform contingent consideration which was partially offset by the net accretion of approximately $14.8 million. In addition, the Company made payments of approximately $99.0 million related to the respiratory delivery platform contingent consideration. 2020 Changes to Contingent Consideration: During the year ended December 31, 2020, the Company recorded a fair value loss of $73.1 million related to the respiratory delivery platform contingent consideration and accretion of approximately $11.6 million. In addition, the Company made payments of approximately $111.8 million related to the respiratory delivery platform contingent consideration. The Company expects to incur approximately $8 million to $10 million of non-cash accretion expense related to the increase in the net present value of the contingent consideration liabilities in 2021. Although the Company has not elected the fair value option for financial assets and liabilities, any future transacted financial asset or liability will be evaluated for the fair value election. Available-for-Sale Securities The amortized cost and estimated fair value of available-for-sale fixed income securities, included in prepaid expenses and other current assets, were as follows: (In millions) Cost Gross Gross Fair December 31, 2020 Debt securities $ 37.5 $ 1.6 $ — $ 39.1 $ 37.5 $ 1.6 $ — $ 39.1 December 31, 2019 Debt securities $ 26.0 $ 0.8 $ — $ 26.8 $ 26.0 $ 0.8 $ — $ 26.8 Maturities of available-for-sale debt securities at fair value as of December 31, 2020, were as follows: (In millions) Mature within one year $ 1.9 Mature in one to five years 20.9 Mature in five years and later 16.3 $ 39.1 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Borrowings The Company had $1.10 billion of short-term borrowings as of December 31, 2020 and had no short-term borrowings as of December 31, 2019. (In millions) December 31, 2020 December 31, 2019 Commercial paper notes $ 651.3 $ — Receivables Facility 248.4 — Note Securitization Facility 200.0 — Other 1.2 — Short-term borrowings $ 1,100.9 $ — The following provides an overview of the Company’s short-term credit facilities. Commercial Paper Program On November 16, 2020, the Company established the Commercial Paper Program to support its working capital requirements and for general purposes. This program replaced a similar program at Mylan. There was $651.3 million of CP Notes outstanding under this program as of December 31, 2020 and no balance as of December 31, 2019. Amounts available under the Commercial Paper Program may be borrowed, repaid and re-borrowed from time to time, with the aggregate principal amount of CP Notes outstanding at any time not to exceed $1.65 billion. The Revolving Facility will be available to pay the CP Notes, if necessary. The maturities of the CP Notes will vary but will not exceed 364 days from the date of issue. Receivables Facility and Note Securitization Facility The Company has a $400 million Receivables Facility which expires in April 2022. Under the terms of the Receivables Facility, our subsidiary, MPI, sells certain accounts receivable to Mylan Securitization, a wholly-owned special purpose entity which in turn sells a percentage ownership interest in the receivables to financial institutions and commercial paper conduits sponsored by financial institutions. Mylan Securitization’s assets have been pledged to MUFG Bank, Ltd., as agent, in support of its obligations under the Receivables Facility. Any amounts outstanding under the facility are recorded as borrowings and the underlying receivables are included in accounts receivable, net, in the consolidated balance sheets. In August 2020, the Company entered into the Note Securitization Facility for borrowings up to $200 million. Under the terms of each of the Receivables Facility and Note Securitization Facility, certain of our accounts receivable secure the amounts borrowed and cannot be used to pay our other debts or liabilities. The amount that we may borrow at a given point in time is determined based on the amount of qualifying accounts receivable that are present at such point in time. Borrowings outstanding under the Receivables Facility bear interest at a commercial paper rate plus 0.925% and under the Note Securitization Facility at a rate per annum quoted from time to time by MUFG Bank, Ltd. plus 1.00% and are included as a component of short-term borrowings, while the accounts receivable securing these obligations remain as a component of accounts receivable, net, in our consolidated balance sheets. In addition, the agreements governing the Receivables Facility and Note Securitization Facility contain various customary affirmative and negative covenants, and customary default and termination provisions with which the Company was compliant as of December 31, 2020. As of December 31, 2020 and 2019, the Company had $389.4 million and $407.0 million, respectively, of accounts receivable balances sold to Mylan Securitization. Long-Term Debt A summary of long-term debt is as follows: (In millions) Interest Rate as of December 31, 2020 December 31, December 31, Current portion of long-term debt: 2020 Floating Rate Euro Notes (a) ** — 560.6 2020 Euro Senior Notes (b) ** 1.250 % — 840.1 2020 Senior Notes (c) ** 3.750 % — 50.0 2021 Senior Notes ** 3.150 % 2,249.7 — Other 8.0 8.3 Deferred financing fees (1.4) (1.4) Current portion of long-term debt $ 2,256.3 $ 1,457.6 Non-current portion of long-term debt: 2021 Senior Notes ** 3.150 % — 2,249.2 2022 Euro Senior Notes **** 0.816 % 928.8 — 2022 Senior Notes *** 1.125 % 1,008.8 — 2023 Senior Notes (d) * 3.125 % 781.6 771.8 2023 Senior Notes * 4.200 % 499.3 499.1 2024 Euro Senior Notes ** 2.250 % 1,219.9 1,119.3 2024 Euro Senior Notes **** 1.023 % 944.6 — 2025 Euro Senior Notes * 2.125 % 609.9 559.6 2025 Senior Notes *** 1.650 % 767.1 — 2026 Senior Notes ** 3.950 % 2,239.7 2,238.1 2027 Euro Senior Notes **** 1.362 % 1,097.4 — 2027 Senior Notes *** 2.300 % 786.1 — 2028 Euro Senior Notes ** 3.125 % 909.7 834.3 2030 Senior Notes *** 2.700 % 1,528.0 — 2032 Euro Senior Notes **** 1.908 % 1,672.6 — 2040 Senior Notes *** 3.850 % 1,663.3 — 2028 Senior Notes * 4.550 % 748.6 748.4 2043 Senior Notes * 5.400 % 497.3 497.2 2046 Senior Notes ** 5.250 % 999.9 999.8 2048 Senior Notes * 5.200 % 747.7 747.7 2050 Senior Notes *** 4.000 % 2,209.3 — USD Term Loan 600.0 — Other 17.4 8.9 Deferred financing fees (47.8) (59.1) Long-term debt $ 22,429.2 $ 11,214.3 ____________ (a) The 2020 Floating Rate Euro Notes were repaid at maturity in the second quarter of 2020. The instrument bore interest at a rate of three-month EURIBOR plus 0.50% per annum, reset quarterly. (b) The 2020 Euro Senior Notes were repaid at maturity in the fourth quarter of 2020. (c) The 2020 Senior Notes were repaid at maturity in the fourth quarter of 2020. (d) During 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The fair value adjustment will be amortized to interest expense over the remaining term of the notes. * Instrument was issued by Mylan Inc. ** Instrument was originally issued by Mylan N.V. *** Instrument was issued by Viatris Inc. **** Instrument was issued by Upjohn Finance B.V. Senior Notes Upjohn Senior Notes In connection with the Combination, in June 2020, Viatris and Upjohn Finance B.V. completed privately placed debt offerings of $7.45 billion of senior unsecured notes (the “Upjohn U.S. Dollar Notes”) and €3.60 billion aggregate principal amount of senior unsecured notes (the “Upjohn Euro Notes” and, together with the Upjohn U.S. Dollar Notes, the “Upjohn Senior Notes”), respectively, and entered into other financing arrangements described below under “Term Loan and Revolving Facility.” The Upjohn U.S. Dollar Notes were issued pursuant to an indenture dated June 22, 2020. The Upjohn U.S. Dollar Notes were issued in a private offering exempt from the registration requirements of the Securities Act to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to persons outside of the U.S. pursuant to Regulation S under the Securities Act. Viatris has entered into a registration rights agreement, dated as of June 22, 2020 pursuant to which Viatris is required to use commercially reasonable efforts to file a registration statement with respect to an offer to exchange each series of the Upjohn U.S. Dollar Notes for new notes with the same aggregate principal amount and terms substantially identical in all material respects. The Upjohn Euro Notes were issued pursuant to an indenture dated June 23, 2020. The Upjohn Euro Notes were guaranteed upon issuance by Viatris and were issued in a private offering exempt from the registration requirements of the Securities Act, to persons outside of the U.S. pursuant to Regulation S under the Securities Act. Viatris and Upjohn Finance B.V. are U.S. dollar functional entities. The following table provides information about the Upjohn Senior Notes issued in June 2020: (In millions) Notional Value 2022 Senior Notes $ 1,000.0 2025 Senior Notes 750.0 2027 Senior Notes 750.0 2030 Senior Notes 1,450.0 2040 Senior Notes 1,500.0 2050 Senior Notes 2,000.0 2022 Euro Senior Note 916.2 2024 Euro Senior Note 916.2 2027 Euro Senior Note 1,038.4 2032 Euro Senior Note 1,527.0 Total $ 11,847.8 The net proceeds from the offerings of the Upjohn Senior Notes, together with the proceeds from the $600 million Term Loan were utilized to fund the $12 billion cash payment by Viatris to Pfizer as partial consideration for Pfizer’s contribution of the Upjohn Business to Viatris and related transaction fees and expenses. Assumptions and Guarantees of Senior Unsecured Notes In connection with the Combination, on November 16, 2020, Viatris, Upjohn Finance B.V., Utah Acquisition Sub, a Delaware corporation and an indirect wholly owned subsidiary of Viatris, Mylan II, a company incorporated under the laws of the Netherlands and an indirect wholly owned subsidiary of Viatris, and Mylan Inc. entered into the Viatris Supplemental Indentures relating to the Upjohn Senior Notes. The Viatris Supplemental Indentures provide for full and unconditional guarantees of the Upjohn Senior Notes by Utah Acquisition Sub, Mylan II and Mylan Inc. On November 16, 2020, Viatris, Utah Acquisition Sub, Mylan II and Mylan Inc. entered into supplemental indentures (collectively, the “Mylan Supplemental Indentures”) relating to the senior unsecured notes previously issued by Mylan and guaranteed by Mylan Inc. (the “Legacy Mylan N.V. Notes”) and the senior unsecured notes previously issued by Mylan Inc. and guaranteed by Mylan (the “Legacy Mylan Inc. Notes” and, together with the Legacy Mylan N.V. Notes, the “Legacy Mylan Notes”). The Mylan Supplemental Indentures provide for (i) the assumption of Mylan N.V.’s obligations as issuer under the Legacy Mylan N.V. Notes and the indentures governing the Legacy Mylan N.V. Notes by Utah Acquisition Sub, (ii) full and unconditional guarantees of the Legacy Mylan N.V. Notes by Viatris and Mylan II, (iii) the assumption of Mylan N.V.’s obligations as guarantor under the Legacy Mylan Inc. Notes and the indentures governing the Legacy Mylan Inc. Notes by either Mylan II or Utah Acquisition Sub, as applicable, and (iv) full and unconditional guarantees of the Legacy Mylan Inc. Notes by Viatris and either Mylan II or Utah Acquisition Sub, as applicable. Term Loan and Revolving Facility In June 2020, Viatris entered into (i) the $600 million Term Loan Agreement and (ii) the $4.0 billion Revolving Facility with various syndicates of banks. The Term Loan Agreement matures on May 16, 2022 and the Revolving Facility matures on November 16, 2023. Both the Term Loan Agreement and the Revolving Facility contain customary affirmative covenants for facilities of this type, including among others, covenants pertaining to the delivery of financial statements, notices of default and certain material events, maintenance of corporate existence and rights, property, and insurance and compliance with laws, as well as customary negative covenants for facilities of this type, including limitations on the incurrence of subsidiary indebtedness, liens, mergers and certain other fundamental changes, investments and loans, acquisitions, transactions with affiliates, payments of dividends and other restricted payments and changes in our lines of business. The Term Loan Agreement and the Revolving Facility contain a maximum consolidated leverage ratio financial covenant requiring maintenance of a maximum ratio of consolidated total indebtedness as of the end of any quarter to consolidated EBITDA for the trailing four quarters as defined in the related credit agreements. The maximum leverage ratio is 4.25 to 1.00 for the first four full fiscal quarters following the close of the Combination and 3.75 to 1.00 thereafter, except in circumstances as defined in the related credit agreements. Fair Value At December 31, 2020 and 2019, the aggregate fair value of the Company’s outstanding notes was approximately $25.90 billion and $13.42 billion, respectively. The fair values of the outstanding notes were valued at quoted market prices from broker or dealer quotations and were classified as Level 2 in the fair value hierarchy. Mandatory minimum repayments remaining on the notional amount of outstanding long-term debt at December 31, 2020, were as follows for each of the periods ending December 31: (In millions) Total 2021 $ 2,250 2022 2,516 2023 1,250 2024 2,138 2025 1,361 Thereafter 14,432 Total $ 23,947 |
Comprehensive Earnings
Comprehensive Earnings | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Comprehensive Earnings | Comprehensive (Loss) Earnings Accumulated other comprehensive loss, as reflected in the consolidated balance sheets, is comprised of the following: (In millions) December 31, 2020 December 31, 2019 Accumulated other comprehensive loss: Net unrealized gain on marketable securities, net of tax $ 1.2 $ 0.6 Net unrecognized (loss) gain and prior service cost related to defined benefit plans, net of tax (26.1) (17.4) Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax (18.0) (31.6) Net unrecognized loss on derivatives in net investment hedging relationships, net of tax (353.6) (74.3) Foreign currency translation adjustment (461.5) (1,674.5) $ (858.0) $ (1,797.2) Components of accumulated other comprehensive (loss) earnings, before tax, consist of the following: Year Ended December 31, 2020 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2019, net of tax $ (31.6) $ (74.3) $ 0.6 $ (17.4) $ (1,674.5) $ (1,797.2) Other comprehensive (loss) earnings before reclassifications, before tax 18.5 (305.2) 0.6 (12.1) 1,213.0 914.8 Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (4.8) (4.8) (4.8) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 4.5 4.5 4.5 Amortization of prior service costs included in SG&A — — Amortization of actuarial loss included in SG&A (1.9) (1.9) Net other comprehensive (loss) earnings, before tax 18.2 (305.2) 0.6 (14.0) 1,213.0 912.6 Income tax provision (benefit) 4.6 (25.9) — (5.3) — (26.6) Balance at December 31, 2020, net of tax $ (18.0) $ (353.6) $ 1.2 $ (26.1) $ (461.5) $ (858.0) Year Ended December 31, 2019 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2018, net of tax $ (53.1) $ (130.9) $ — $ 1.7 $ (1,259.0) $ (1,441.3) Other comprehensive earnings (loss) before reclassifications, before tax 29.3 59.6 0.5 (21.0) (415.5) (347.1) Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax: Loss on foreign exchange forward contracts classified as cash flow hedges, included in net sales 0.7 0.7 0.7 Loss on interest rate swaps classified as cash flow hedges, included in interest expense 7.1 7.1 7.1 Amortization of prior service costs included in SG&A (0.9) (0.9) Amortization of actuarial loss included in SG&A (2.9) (2.9) Net other comprehensive earnings (loss), before tax 37.1 59.6 0.5 (24.8) (415.5) (343.1) Income tax provision (benefit) 12.2 3.0 (0.1) (5.9) — 9.2 Cumulative effect of the adoption of new accounting standards $ (3.4) $ — $ — $ (0.2) $ — $ (3.6) Balance at December 31, 2019, net of tax $ (31.6) $ (74.3) $ 0.6 $ (17.4) $ (1,674.5) $ (1,797.2) Year Ended December 31, 2018 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2017, net of tax $ (3.7) $ (239.8) $ 10.1 $ 6.0 $ (133.8) $ (361.2) Other comprehensive (loss) earnings before reclassifications, before tax (80.7) 111.6 (0.1) (3.0) (1,125.2) (1,097.4) Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (6.2) (6.2) (6.2) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 7.7 7.7 7.7 Amortization of prior service costs included in SG&A (0.4) (0.4) Amortization of actuarial gain included in SG&A (0.4) (0.4) Net other comprehensive (loss) earnings, before tax (79.2) 111.6 (0.1) (3.8) (1,125.2) (1,096.7) Income tax (benefit) provision (27.3) 2.7 — 0.5 — (24.1) Cumulative effect of the adoption of new accounting standards 2.5 — (10.0) — — (7.5) Balance at December 31, 2018, net of tax $ (53.1) $ (130.9) $ — $ 1.7 $ (1,259.0) $ (1,441.3) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision (benefit) consisted of the following components: Year Ended December 31, (In millions) 2020 2019 2018 U.S. Federal: Current $ (6.4) $ 118.1 $ (68.2) Deferred (277.0) (165.5) (112.9) (283.4) (47.4) (181.1) U.S. State: Current (0.1) 21.1 6.8 Deferred 7.7 (13.6) (12.3) 7.6 7.5 (5.5) Non-U.S.: Current 168.7 191.0 271.6 Deferred 55.8 (13.5) (139.1) 224.5 177.5 132.5 Income tax (benefit) provision $ (51.3) $ 137.6 $ (54.1) Earnings before income taxes: United States (945.5) (1,031.4) (1,000.5) Foreign - Other 224.3 1,185.8 1,298.9 Total earnings before income taxes $ (721.2) $ 154.4 $ 298.4 For all periods presented, the allocation of earnings before income taxes between U.S. and non-U.S. operations includes intercompany interest allocations between certain domestic and foreign subsidiaries. These amounts are eliminated on a consolidated basis. Temporary differences and carry-forwards that result in deferred tax assets and liabilities were as follows: (In millions) December 31, 2020 December 31, 2019 Deferred tax assets: Employee benefits $ 273.0 $ 182.5 Litigation reserves 43.5 14.7 Accounts receivable allowances 393.7 201.9 Inventory 1,187.9 80.1 Tax credit and loss carry-forwards 1,080.4 726.2 Operating lease assets (1) 66.5 62.8 Interest expense 67.9 162.7 Intangible assets 156.3 184.7 Other 396.0 121.6 3,665.2 1,737.2 Less: Valuation allowance (443.6) (603.5) Total deferred tax assets 3,221.6 1,133.7 Deferred tax liabilities: Plant and equipment 50.2 87.4 Operating lease liabilities (1) 66.5 62.8 Intangible assets and goodwill 4,058.6 1,890.8 Other 22.1 17.1 Total deferred tax liabilities 4,197.4 2,058.1 Deferred tax liabilities, net $ (975.8) $ (924.4) ____________ (1) As discussed in Note 6 Leases of the notes to consolidated financial statements, in 2019 we adopted an ASU that resulted in the recognition of operating lease right-of-use assets and lease liabilities. We adopted this standard using a modified retrospective basis that does not require application to periods prior to adoption. For those foreign subsidiaries whose investments are permanent in duration, income and foreign withholding taxes have not been provided on the unremitted earnings of those subsidiaries. This amount may become taxable upon a repatriation of assets from the subsidiary or a sale or liquidation of the subsidiary. The amount of such unremitted earnings is approximately $3.4 billion at December 31, 2020. Determination of the amount of any unrecognized deferred income tax liability on these unremitted earnings is not practicable as such determination involves material uncertainties about the potential extent and timing of any distributions, the availability and complexity of calculating foreign tax credits, and the potential indirect tax consequences of such distributions, including withholding taxes. Prior to the Combination, the applicable income tax rate to Mylan N.V. was the U.K. rate of 19%, and following the Combination, the statutory income tax rate applicable to Viatris Inc., is the U.S. rate of 21% for the year ended December 31, 2020. A reconciliation of the statutory tax rate to the effective tax rate is as follows: Year Ended December 31, 2020 2019 2018 Statutory tax rate 21.0 % 19.0 % 19.0 % United States Operations Clean energy and research credits 12.8 % (43.4) % (33.1) % U.S. rate differential — % (3.1) % (5.4) % Impact of changes in legislation (9.2) % — % (4.9) % State income taxes and credits (1.6) % (4.1) % (9.2) % Valuation allowance 8.6 % (118.5) % 60.2 % Tax settlements and resolution of certain tax positions 0.1 % 199.6 % (22.5) % Global intangible low-taxed income (3.6) % (8.6) % 8.6 % Waived deductions under IRC § 59A (3.3) % 64.5 % — % Impact of the Combination 5.8 % 7.7 % — % Other U.S. items 1.5 % 6.9 % 7.5 % Other Foreign Operations Luxembourg (5.0) % (14.8) % (28.3) % Gibraltar 8.0 % (38.8) % (19.2) % Ireland 8.2 % (13.7) % (3.5) % France (2.8) % 15.2 % 6.2 % Puerto Rico (2.5) % — % — % Switzerland 2.0 % — % — % Other 0.6 % 12.8 % 2.3 % Deferred tax impact of tax law changes (0.1) % 36.7 % (5.2) % Valuation allowance 16.1 % (9.9) % (4.3) % Impact of the Combination (42.2) % — % — % Withholding taxes (1.6) % 7.1 % 4.1 % Tax settlements and resolution of certain tax positions (3.9) % (27.6) % 0.7 % Other foreign items (1.8) % 2.1 % 8.9 % Effective tax rate 7.1 % 89.1 % (18.1) % In all years, our effective tax rate is impacted the jurisdictional location of earnings and the corresponding tax rates in those jurisdictions. Subsequent to the Combination, the Company realizes benefits from lower tax rates in Singapore and Puerto Rico due to manufacturing and other incentives, which are not significant in 2020. Tax Act On December 22, 2017, the U.S. government enacted the Tax Act. The Tax Act makes broad and complex changes to the Code including, but not limited to, reducing the U.S. federal corporate income tax rate and requiring a one-time transition tax on certain unrepatriated earnings of non-U.S. corporate subsidiaries of large U.S. shareholders that may electively be paid over eight years. The Tax Act also puts in place new tax laws that impact our taxable income beginning in 2018, which include, but are not limited to (1) creating a BEAT, which is a new minimum tax, (2) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries, (3) a new provision designed to tax currently GILTI earned by non-U.S. corporate subsidiaries of large U.S. shareholders and a deduction generally equal to 50 percent of GILTI (37.5 percent for tax years beginning after December 31, 2025) to offset the income tax liability, (4) a provision limiting the amount of deductible interest expense in the U.S., (5) limitations on the deductibility of certain executive compensation, and (6) limitations on the utilization of foreign tax credits to reduce the U.S. income tax liability. As of December 31, 2020, no U.S. deferred income taxes or foreign withholding taxes were recorded on earnings in the Company’s non-U.S. subsidiaries where there would be no U.S. or foreign tax upon repatriation or where the Company’s practice and intention was to reinvest the earnings outside of the U.S.. The transition tax noted above resulted in the previously untaxed foreign earnings of U.S. subsidiaries being included in federal and state taxable income. We analyze on an ongoing basis our global working capital requirements and the potential tax liabilities that would be incurred if the non-U.S. subsidiaries repatriate cash, which include potential local country withholding taxes and U.S. state taxation. The Company has elected to not record deferred taxes associated with the GILTI provision of the Tax Act. The Company’s accounting for the impact of the 2017 Tax Act was completed during the year ended December 31, 2018. Valuation Allowance A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. At December 31, 2020, a valuation allowance has been applied to certain deferred tax assets in the amount of $443.6 million. When assessing the realizability of deferred tax assets, management considers all available evidence, including historical information, long-term forecasts of future taxable income and possible tax planning strategies. Amounts recorded for valuation allowances can result from a complex series of estimates, assumptions and judgments about future events. Due to the inherent uncertainty involved in making these estimates, assumptions and judgments, actual results could differ materially. Any future increases to the Company’s valuation allowances could materially impact the Company’s consolidated financial condition and results of operations. Net Operating Losses As of December 31, 2020, the Company had the following carryforwards and attributes: • U.S. federal net operating loss carryforwards of $15.1 million. • U.S. state income tax loss carryforwards of approximately $2.93 billion, which are largely offset by a valuation allowance. • Non-U.S. net operating loss carryforwards of approximately $1.01 billion, of which $933.2 million can be carried forward indefinitely, with the remaining $73.2 million expiring in years 2021 through 2040. • Foreign deductible attributes of $40.8 million that can be carried forward indefinitely, which are offset by a full valuation allowance. • U.S. and foreign credit carryovers of $294.5 million, expiring in various amounts through 2040. • Anticipatory foreign tax credits of $314.9 million which will generate from the reversal of future taxable income in certain non-U.S. jurisdictions which are taxed both in their local jurisdictions and in the U.S. On November 16, 2020, the Company had a change in ownership pursuant to Section 382 of the Code. Under this provision of the Code, the utilization of any NOL or tax credit carryforwards incurred prior to the date of ownership change may be limited. Analyses of the limits for each ownership change indicates the annual limitation would not impair the Company's ability to utilize our U.S. federal credit carryovers. While state loss carryforwards may be limited by Section 382 of the Code, the carryforwards are largely offset by a valuation allowance. CARES Act On March 27, 2020, the CARES Act was enacted and signed into law. The CARES Act includes several provisions, including increasing the amount of deductible interest, allowing companies to carryback certain NOLs, and increasing the amount of NOLs that corporations can use to offset income. As of December 31, 2020, CARES Act reduced our 2020 income tax expense by $22.1 million resulting from additional deductible interest. We will continue to monitor and assess the impact that the CARES Act may have on our business and results of operations. Tax Examinations The Company is subject to income taxes and tax audits in many jurisdictions. A certain degree of estimation is thus required in recording the assets and liabilities related to income taxes. Tax audits and examinations can involve complex issues, interpretations, and judgments and the resolution of matters that may span multiple years, particularly if subject to litigation or negotiation. Although the Company believes that adequate provisions have been made for these uncertain tax positions, the Company’s assessment of uncertain tax positions, including those arising from legal entity restructuring transactions in connection with the Combination, is based on estimates and assumptions that the Company believes are reasonable but the estimates for unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variations from such estimates could materially affect the Company’s financial condition, results of operations or cash flows in the period of resolution, settlement or when the statutes of limitations expire. The Company is subject to ongoing IRS examinations. The years 2015 through 2018 are open years under examination. The years 2012, 2013 and 2014 have one matter open, and a Tax Court petition has been filed regarding the matter and a trial was held in December 2018 and is discussed further below. During the year ended December 31, 2019, Mylan reached an agreement in principle with the IRS to resolve all issues relating to our positions on the February 27, 2015 acquisition by Mylan N.V. of Mylan Inc. and Abbott Laboratories’ non-U.S. developed markets specialty and branded generics business. Under the agreement in principle, which was finalized as part of a closing agreement with the IRS on October 11, 2019, Mylan’s status as a non-U.S. corporation for U.S. Federal income tax purposes was confirmed, and we have adjusted the interest rates used for intercompany loans as necessary. During the year ended December 31, 2019, the Company recorded a reserve of approximately $155.0 million as part of its liability for uncertain tax positions, with a net impact to the income tax provision of approximately $144.9 million related to this matter. Several international audits are currently in progress. In some cases, the tax auditors have proposed adjustments to our tax positions including with respect to intercompany transactions, and we are in ongoing discussions with the auditors regarding the validity of their positions. The Company has recorded a reserve for uncertain tax positions of $134.6 million and $89.2 million, including interest and penalties, in connection with its international audits at December 31, 2020 and December 31, 2019, respectively. In certain cases, these audits can also result in non-tax consequences. For example, under French law, certain tax matters are automatically referred for criminal investigation. The Company’s major state taxing jurisdictions remain open from fiscal year 2013 through 2019, with several state audits currently in progress. The Company’s major international taxing jurisdictions remain open from 2012 through 2019. Tax Court Proceeding The Company's U.S. federal income tax returns for 2012 through 2014 had been subject to proceedings in U.S. Tax Court involving a dispute with the IRS regarding whether certain costs related to ANDAs were eligible to be expensed and deducted immediately or required to be amortized over longer periods. A trial was held in U.S. Tax Court in December 2018. Both parties delivered their final post-trial briefs on June 27, 2019 and are awaiting the court’s final decision. Accounting for Uncertainty in Income Taxes The impact of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority must be recognized at the largest amount that is more likely than not to be sustained. No portion of an uncertain tax position will be recognized if the position has less than a 50% likelihood of being sustained. As of December 31, 2020 and 2019, the Company’s consolidated balance sheets reflect net liabilities for unrecognized tax benefits of $391.1 million and $92.1 million, of which $127.1 million as of December 31, 2020 would affect the Company’s effective tax rate if recognized. Related accrued interest and penalties included in the consolidated balance sheets were $86.7 million and $17.2 million as of December 31, 2020 and 2019, respectively. For the year ended December 31, 2020, 2019 and 2018, the Company recognized $6.0 million, $35.2 million, and $18.3 million of tax benefits, respectively, related to interest and penalties on uncertain tax positions. Interest and penalties related to income taxes are included in the tax provision. A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, (In millions) 2020 2019 2018 Unrecognized tax benefit — beginning of year $ 92.1 $ 96.3 $ 185.7 Additions for current year tax positions 13.4 — — Additions for prior year tax positions 35.7 154.9 20.0 Reductions for prior year tax positions (5.2) (11.7) (5.8) Settlements (8.9) (112.5) (32.9) Reductions due to expirations of statute of limitations — (34.9) (70.7) Addition due to acquisition 264.0 — — Unrecognized tax benefit — end of year $ 391.1 $ 92.1 $ 96.3 The Company believes that it is reasonably possible that the amount of unrecognized tax benefits will decrease in the next twelve months by approximately $80.0 million, involving international and state audits and settlements. The Company does not anticipate significant increases to the reserve within the next twelve months. |
Share-Based Incentive Plan
Share-Based Incentive Plan | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Incentive Plan | Share-Based Incentive Plan Prior to the Distribution, Viatris adopted and Pfizer, in the capacity as Viatris’ sole stockholder at such time approved the Viatris Inc. 2020 Stock Incentive Plan (the “Plan”) which became effective as of the Distribution. In connection with the Combination, as of November 16, 2020, the Company assumed the Mylan N.V. Amended and Restated 2003 Long-Term Incentive Plan , which had previously been approved by Mylan shareholders. The Plan and 2003 LTIP include (i) 72,500,000 shares of Common Stock authorized for grant pursuant to the Plan, which may include dividend payments payable in Common Stock on unvested shares granted under awards, (ii) 6,757,640 shares of Common Stock to be issued pursuant to the exercise of outstanding stock options granted to participants under the 2003 LTIP and assumed by Viatris in connection with the Combination and (iii) 13,535,627 shares of Common Stock subject to outstanding equity-based awards, other than stock options, assumed by Viatris in connection with the Combination, or that otherwise remain available for issuance under the 2003 LTIP. Under the Plan and 2003 LTIP, shares are reserved for issuance to key employees, consultants, independent contractors and non-employee directors of the Company through a variety of incentive awards, including: stock options, SARs, restricted stock and units, PSUs, other stock-based awards and short-term cash awards. Stock option awards are granted with an exercise price equal to the fair market value of the shares underlying the stock options at the date of the grant, generally become exercisable over periods ranging from three The following table summarizes stock option and SAR (together, “stock awards”) activity under the Plan and 2003 LTIP: Number of Shares Weighted Outstanding at December 31, 2017 7,198,684 $ 35.17 Granted 905,265 40.38 Exercised (820,603) 21.75 Forfeited (468,068) 47.86 Outstanding at December 31, 2018 6,815,278 $ 36.61 Granted 829,322 26.18 Exercised (580,950) 14.40 Forfeited (715,941) 39.40 Outstanding at December 31, 2019 6,347,709 $ 36.97 Granted 814,351 17.37 Exercised (27,615) 21.13 Forfeited (422,714) 25.74 Outstanding at December 31, 2020 6,711,731 $ 35.36 Vested and expected to vest at December 31, 2020 6,532,172 $ 35.65 Exercisable at December 31, 2020 5,284,858 $ 38.51 As of December 31, 2020, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had average remaining contractual terms of 5.0 years, 4.9 years and 4.0 years, respectively. Also, at December 31, 2020, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had aggregate intrinsic values of $1.1 million, $1.0 million and $0.0 million, respectively. A summary of the status of the Company’s nonvested restricted stock and restricted stock unit awards, including PSUs (collectively, “restricted stock awards”), as of December 31, 2019 and the changes during the year ended December 31, 2020 are presented below: Number of Restricted Weighted Average Nonvested at December 31, 2019 4,105,689 $ 34.42 Granted 10,134,565 15.23 Released (1,819,982) 33.56 Forfeited (346,482) 38.46 Nonvested at December 31, 2020 12,073,790 $ 18.34 Of the 10,134,565 restricted stock awards granted during the year ended December 31, 2020, 4,724,327 vest ratably in three years or less and are not subject to market or performance conditions. Of the remaining restricted stock awards granted, 3,792,064 are not subject to market conditions and will cliff vest within a three As of December 31, 2020, the Company had $146.7 million of total unrecognized compensation expense, net of estimated forfeitures, related to all of its stock-based awards, which we expect to recognize over the remaining weighted average vesting period of 2.0 years. The total intrinsic value of stock awards exercised and restricted stock units released during the years ended December 31, 2020 and 2019 was $20.9 million and $38.0 million, respectively. With respect to options granted under the Plan and 2003 LTIP, the fair value of each option grant was estimated at the date of grant using the Black-Scholes option pricing model. Black-Scholes utilizes assumptions related to volatility, the risk-free interest rate, the dividend yield and employee exercise behavior. Expected volatilities utilized in the model are based mainly on the implied volatility of the Company’s stock price and other factors. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The model incorporates exercise and post-vesting forfeiture assumptions based on an analysis of historical data. The expected lives of the grants are derived from historical and other factors. The assumptions used for options granted under the Plan and 2003 LTIP are as follows: Year Ended December 31, 2020 2019 2018 Volatility 46.7% 38.1% 35.8% Risk-free interest rate 1.0% 2.5% 2.8% Expected term (years) 6.5 6.5 6.5 Forfeiture rate 5.5% 5.5% 5.5% Weighted average grant date fair value per option $8.07 $11.03 $16.51 five |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefit Plans Defined Benefit Plans The Company sponsors various defined benefit pension plans in several countries. Benefits provided generally depend on length of service, pay grade and remuneration levels. Employees in the U.S., Puerto Rico and certain international locations are also provided retirement benefits through defined contribution plans. The Company also sponsors other postretirement benefit plans including plans that provide for postretirement supplemental medical coverage. Benefits from these plans are provided to employees and their spouses and dependents who meet various minimum age and service requirements. In addition, the Company sponsors other plans that provide for life insurance benefits and postretirement medical coverage for certain officers and management employees. In connection with the Combination, the Company assumed certain post retirement defined benefit pension plans sponsored by Upjohn. The most significant plans include those in Puerto Rico, Ireland and Japan. Upjohn is also the sponsor of one postretirement medical plan in Puerto Rico. As part of the acquisition accounting, the Company has recorded the fair value of these plans using assumptions and accounting policies consistent with those historically utilized by Mylan. Upon completion of the Combination, the excess of projected benefit obligation over the plan assets was recognized as a liability and any existing unrecognized actuarial gains or losses and unrecognized service costs or benefits were eliminated in purchase accounting. Accounting for Defined Benefit Pension and Other Postretirement Plans The Company recognizes on its balance sheet an asset or liability equal to the over- or under-funded benefit obligation of each defined benefit pension and other postretirement plan. Actuarial gains or losses and prior service costs or credits that arise during the period are not recognized as components of net periodic benefit cost, but are recognized, net of tax, as a component of other comprehensive (loss) earnings. Included in accumulated other comprehensive loss as of December 31, 2020 and 2019 are: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2020 2019 2020 2019 Unrecognized actuarial loss $ 33.9 $ 20.6 $ 5.7 $ 4.8 Unrecognized prior service (credit) cost (1.4) (1.3) 0.6 0.7 Total $ 32.5 $ 19.3 $ 6.3 $ 5.5 Of the December 31, 2020 amount, the Company expects to recognize approximately $1.6 million of unrecognized actuarial losses and $0.6 million of unrecognized prior service costs in net periodic benefit credits during 2021. The unrecognized net actuarial losses exceeded 10% of the higher of the market value of plan assets or the projected benefit obligation at the beginning of the year for certain of the plans, therefore, amortization of such excess has been included in net periodic benefit costs for pension and other postretirement benefits in each of the last three years. The amortization period is the average remaining service period that active employees are expected to receive benefits, unless a plan is mostly inactive in which case the amortization period is the average remaining life expectancy of the plan participants. Unrecognized prior service cost is amortized over the future service periods of those employees who are active at the dates of the plan amendments and who are expected to receive benefits. If all or almost all of a plan's participants are inactive, unrecognized prior service cost is amortized over the remaining life expectancy of those participants. The increase in accumulated other comprehensive loss in 2020 relating to pension benefits and other postretirement benefits consists of: (In millions) Pension Benefits Other Postretirement Benefits Unrecognized actuarial loss $ 11.1 $ 1.2 Amortization of actuarial gain/(loss) (1.5) (0.4) Unrecognized prior service costs — — Amortization of prior service costs — — Impact of foreign currency translation 2.3 — Net change $ 11.9 $ 0.8 Components of net periodic benefit cost, change in projected benefit obligation, change in plan assets, funded status, fair value of plan assets, assumptions used to determine net periodic benefit cost, funding policy and estimated future benefit payments are summarized below for the Company’s pension plans and other postretirement plans. Net Periodic Benefit Cost Components of net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018 were as follows: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2020 2019 2018 2020 2019 2018 Service cost $ 23.5 $ 20.7 $ 19.2 $ 1.2 $ 0.6 $ 0.6 Interest cost 13.5 13.6 13.0 1.4 1.5 1.5 Expected return on plan assets (19.9) (12.1) (14.4) — — — Plan curtailment, settlement and termination 1.1 (0.3) (0.1) — 3.2 — Amortization of prior service costs — 0.9 0.3 — — — Recognized net actuarial (gains) losses 0.4 (0.8) (0.1) 0.3 0.2 0.2 Net periodic benefit cost $ 18.6 $ 22.0 $ 17.9 $ 2.9 $ 5.5 $ 2.3 Change in Projected Benefit Obligation, Change in Plan Assets and Funded Status The table below presents components of the change in projected benefit obligation, change in plan assets and funded status at December 31, 2020 and 2019. Pension Benefits Other Postretirement Benefits (In millions) 2020 2019 2020 2019 Change in Projected Benefit Obligation Projected benefit obligation, beginning of year $ 674.7 $ 635.4 $ 33.8 $ 34.0 Service cost 23.5 20.7 1.1 0.6 Interest cost 13.5 13.6 1.4 1.5 Participant contributions 1.8 1.0 0.1 0.2 Acquisitions 1,389.4 0.8 153.1 — Plan settlements and terminations (23.1) (23.8) (0.2) (7.1) Actuarial losses (gains) 37.2 57.3 1.1 7.1 Benefits paid (24.6) (23.9) (1.6) (2.5) Impact of foreign currency translation 53.4 (6.4) — — Projected benefit obligation, end of year $ 2,145.8 $ 674.7 $ 188.8 $ 33.8 Change in Plan Assets Fair value of plan assets, beginning of year $ 315.7 $ 283.5 $ — $ — Actual return on plan assets 46.0 39.2 — — Company contributions 58.2 26.4 1.7 9.4 Participant contributions 1.8 1.0 0.1 0.2 Acquisitions 959.3 — — — Plan settlements (23.1) (8.9) (0.2) (7.1) Benefits paid (24.6) (23.9) (1.6) (2.5) Other — (1.9) — — Impact of foreign currency translation 21.3 0.3 — — Fair value of plan assets, end of year 1,354.6 315.7 — — Funded status of plans $ (791.2) $ (359.0) $ (188.8) $ (33.8) Net accrued benefit costs for pension plans and other postretirement benefits are reported in the following components of the Company’s consolidated balance sheets at December 31, 2020 and 2019: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2020 2019 2020 2019 Noncurrent assets $ 70.7 $ 24.8 $ — $ — Current liabilities (15.1) (11.9) (16.3) (2.0) Noncurrent liabilities (846.8) (371.9) (172.5) (31.8) Net accrued benefit costs $ (791.2) $ (359.0) $ (188.8) $ (33.8) The projected benefit obligation is the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future pay increases. The accumulated benefit obligation is the actuarial present value of benefits attributable to employee service rendered to date, but does not include the effects of estimated future pay increases. The accumulated benefit obligation for the Company’s pension plans was $2.04 billion and $636.3 million at December 31, 2020 and 2019, respectively. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of the fair value of plan assets at December 31, 2020 and 2019 were as follows: December 31, (In millions) 2020 2019 Plans with accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 1,747.2 $ 476.3 Accumulated benefit obligation 1,678.2 454.4 Fair value of plan assets 893.9 94.4 Fair Value of Plan Assets The Company measures the fair value of plan assets based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy described in Note 9 Financial Instruments and Risk Management . The table below presents total plan assets by investment category as of December 31, 2020 and 2019 and the classification of each investment category within the fair value hierarchy with respect to the inputs used to measure fair value: December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 51.2 $ 0.6 $ — $ 51.8 Equity securities 145.3 468.1 — 613.4 Fixed income securities 292.6 299.4 — 592.0 Assets held by insurance companies and other 4.0 20.0 73.4 97.4 Total $ 493.1 $ 788.1 $ 73.4 $ 1,354.6 December 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 3.4 $ 0.5 $ — $ 3.9 Equity securities 33.8 55.5 — 89.3 Fixed income securities 138.0 41.9 — 179.9 Assets held by insurance companies and other 1.3 13.8 27.5 42.6 Total $ 176.5 $ 111.7 $ 27.5 $ 315.7 Risk tolerance on invested pension plan assets is established through careful consideration of plan liabilities, plan funded status and corporate financial condition. Investment risk is measured and monitored on an ongoing basis through annual liability measures, periodic asset/liability studies and investment portfolio reviews. The Company’s investment strategy is to maintain, where possible, a diversified investment portfolio across several asset classes that, when combined with the Company’s contributions to the plans, will ensure that required benefit obligations are met. Assumptions The following weighted average assumptions were used to determine the benefit obligations for the Company’s defined benefit pension and other postretirement plans as of December 31, 2020 and 2019: Pension Benefits Other Postretirement Benefits 2020 2019 2020 2019 Discount rate 1.9 % 1.6 % 1.9 % 3.3 % Expected return on plan assets 4.3 % 4.3 % — % — % Rate of compensation increase 2.9 % 2.9 % — % — % The following weighted average assumptions were used to determine the net periodic benefit cost for the Company’s defined benefit pension and other postretirement benefit plans for the three years in the period ended December 31, 2020: Pension Benefits Other Postretirement Benefits 2020 2019 2018 2020 2019 2018 Discount rate 1.6 % 2.3 % 2.0 % 3.3 % 4.3 % 3.7 % Expected return on plan assets 4.3 % 4.3 % 4.9 % — % — % — % Rate of compensation increase 2.7 % 2.9 % 2.9 % — % — % — % The assumptions for each plan are reviewed on an annual basis. The discount rate reflects the current rate at which the pension and other benefit liabilities could be effectively settled at the measurement date. In setting the discount rates, we utilize comparable corporate bond indices as an indication of interest rate movements and levels. Corporate bond indices were selected based on individual plan census data and duration. The expected return on plan assets was determined using historical market returns and long-term historical relationships between equities and fixed income securities. The Company compares the expected return on plan assets assumption to actual historic returns to ensure reasonableness. Current market factors such as inflation and interest rates are also evaluated. The weighted-average healthcare cost trend rate used for 2020 was 6.7% declining to a projected 4.5% in the year 2037. For 2021, the assumed weighted-average healthcare cost trend rate used will be 5.7% declining to a projected 4.5% in the year 2037. In selecting rates for current and long-term healthcare cost assumptions, the Company takes into consideration a number of factors including the Company’s actual healthcare cost increases, the design of the Company’s benefit programs, the demographics of the Company’s active and retiree populations and external expectations of future medical cost inflation rates. Estimated Future Benefit Payments The Company’s funding policy for its funded pension plans is based upon local statutory requirements. The Company’s funding policy is subject to certain statutory regulations with respect to annual minimum and maximum company contributions. Plan benefits for the non-qualified plans are paid as they come due. Estimated benefit payments over the next ten years for the Company’s pension plans and retiree health plan are as follows: (In millions) Pension Benefits Other Postretirement Benefits 2020 $ 104.5 $ 16.4 2021 102.3 16.6 2022 104.9 16.5 2023 108.6 16.6 2024 106.9 16.3 Thereafter 526.2 71.4 Total $ 1,053.4 $ 153.8 Defined Contribution Plans The Company sponsors defined contribution plans covering its employees in the U.S. and Puerto Rico, as well as certain employees in a number of countries outside the U.S. The Company’s domestic defined contribution plans consist primarily of a 401(k) retirement plan with a profit sharing component for non-union represented employees (the “Profit Sharing 401(k) Plan”) and a 401(k) retirement plan for union-represented employees. Profit sharing contributions are made at the discretion of the Board of Directors. The Company’s non-domestic plans vary in form depending on local legal requirements. The Company’s contributions are based upon employee contributions, service hours, or pre-determined amounts depending upon the plan. Obligations for contributions to defined contribution plans are recognized as expense in the consolidated statements of operations when they are earned. The Company maintains a 401(k) Restoration Plan (the “Restoration Plan”), which permits employees who earn compensation in excess of the limits imposed by Section 401(a)(17) of the Code to (i) defer a portion of base salary and bonus compensation, (ii) be credited with a Company matching contribution in respect of deferrals under the Restoration Plan, and (iii) be credited with Company non-elective contributions (to the extent so made by the Company), in each case, to the extent that participants otherwise would be able to defer or be credited with such amounts, as applicable, under the Profit Sharing 401(k) Plan if not for the limits on contributions and deferrals imposed by the Code. The Company maintains an Income Deferral Plan, which permits certain management or highly compensated employees who are designated by the plan administrator to participate in the Income Deferral Plan to elect to defer up to 50% of base salary and up to 100% of bonus compensation, in each case, in addition to any amounts that may be deferred by such participants under the Profit Sharing 401(k) Plan and the Restoration Plan. In addition, under the Income Deferral Plan, eligible participants may be granted employee deferral awards, which awards will be subject to the terms and conditions (including vesting) as determined by the plan administrator at the time such awards are granted. Total employer contributions to defined contribution plans were approximately $115.5 million, $95.6 million and $85.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. Other Benefit Arrangements The Company participated in a multi-employer pension plan under previous collective bargaining agreements. The PACE Industry Union-Management Pension Fund (the “PACE Plan”) provides defined benefits to certain retirees and certain production and maintenance employees at the Company’s manufacturing plant in Morgantown, West Virginia who were covered by the previous collective bargaining agreements. Pursuant to a collective bargaining agreement entered into on April 16, 2012, the Company withdrew from the PACE Plan effective May 10, 2012. In 2013, the PACE Plan trustee notified the Company that its withdrawal liability was approximately $27.3 million, which was accrued by the Company in 2013. The withdrawal liability is being paid over a period of approximately nine years; payments began in March 2014. The withdrawal liability was approximately $8.9 million and $12.1 million at December 31, 2020 and 2019, respectively. The Employee Identification Number for the PACE Plan is 11-6166763. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | ment Information Viatris reports segment information on the basis of markets and geography. In conjunction with the formation of Viatris, the Company has changed its reportable segments, from North America, Europe, and Rest of World, to Developed Markets, Greater China, JANZ, and Emerging Markets. Prior year amounts have been recasted to reflect this segment structure. We have also revised our measure of segment profitability. This approach reflects the Company’s focus on bringing its broad and diversified portfolio of branded, complex generics and biosimilars, and generic products to people in markets everywhere. Our Developed Markets segment comprises our operations primarily in North America and Europe. Our Greater China segment includes our operations in China, Taiwan and Hong Kong. Our JANZ segment reflects our operations in Japan, Australia and New Zealand. Our Emerging Markets segment encompasses our operations in countries with developing markets and emerging economies including countries in Asia, the Middle East, South and Central America, Africa and Eastern Europe, and also includes the Company’s anti-retroviral franchise. The Company’s chief operating decision maker is the Chief Executive Officer, who evaluates the performance of its segments based on total revenues and segment profitability. Certain costs are not included in the measurement of segment profitability, such as costs, if any, associated with the following: ◦ Intangible asset amortization expense and impairments of intangible assets; ◦ R&D expense; ◦ Net charges or net gains for litigation settlements and other contingencies; ◦ Certain costs related to transactions and events such as (i) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory and property, plant and equipment; (ii) acquisition-related costs, where we incur costs for executing the transaction, integrating the acquired operations and restructuring the combined company; and (iii) other significant items, which are substantive and/or unusual, and in some cases recurring, items (such as restructuring) that are evaluated on an individual basis by management and that either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such special items can include, but are not limited to, non-acquisition-related restructuring costs, as well as costs incurred for asset impairments and disposals of assets or businesses, including, as applicable, any associated transition activities. ◦ Corporate and other unallocated costs associated with platform functions (such as digital, facilities, legal, finance, human resources, insurance, public affairs and procurement), patient advocacy activities and certain compensation and other corporate costs (such as interest income and expense, and gains and losses on investments, as well as overhead expenses associated with our manufacturing, which include manufacturing variances associated with production) and operations that are not directly assessed to an operating segment as business unit (segment) management does not manage these costs. The company does not report depreciation expense, total assets and capital expenditures by segment, as such information is not used by the chief operating decision maker. The accounting policies of the segments are the same as those described in Note 2 Summary of Significant Accounting Policies. Presented in the table below is segment information for the periods identified and a reconciliation of segment information to total consolidated information. Net Sales Segment profitability Years Ended December 31, Years Ended December 31, (in millions) 2020 2019 2018 2020 2019 2018 Reportable Segments: Developed Markets $ 8,510.9 $ 8,240.0 $ 8,289.1 $ 4,243.9 $ 4,137.3 $ 4,270.1 Greater China 259.9 214.6 168.1 52.7 89.9 71.9 JANZ 1,195.3 1,192.5 1,132.8 364.6 323.2 363.1 Emerging Markets 1,853.8 1,723.2 1,678.7 610.4 561.9 647.4 Total reportable segments $ 11,819.9 $ 11,370.3 $ 11,268.7 $ 5,271.6 $ 5,112.3 $ 5,352.5 Reconciling items: Intangible asset amortization expense (1,605.8) (1,582.7) (1,606.4) Intangible asset impairment charges (82.4) (180.6) (224.0) Globally managed research and development costs (555.1) (639.9) (704.5) Litigation settlements & other contingencies (107.8) 21.4 49.5 Transaction related and other special items (1,739.7) (682.2) (515.5) Corporate and other unallocated (1,391.6) (1,332.8) (1,446.0) (Loss) earnings from operations $ (210.8) $ 715.5 $ 905.6 The following table represents the percentage of consolidated net sales to Viatris’ major customers during the years ended December 31, 2020, 2019, and 2018: Percentage of Consolidated Net Sales 2020 2019 2018 McKesson Corporation 13 % 15 % 12 % AmerisourceBergen Corporation 10 % 9 % 8 % Cardinal Health, Inc. 8 % 8 % 8 % Sales by Country Information Net sales by country are presented on the basis of geographic location of our subsidiaries: Year Ended December 31, (In millions) 2020 2019 2018 United States $ 3,746.1 $ 3,965.9 $ 3,865.2 India 1,155.4 1,171.1 1,164.8 France 1,070.8 1,047.6 1,092.7 ____________ |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments The Company has entered into employment and other agreements with certain executives and other employees that provide for compensation, retirement and certain other benefits. These agreements provide for severance payments under certain circumstances. Additionally, the Company has split-dollar life insurance agreements with certain retired executives. In conjunction with the Combination, Viatris entered into a TSA with Pfizer pursuant to which each party will provide certain limited transition services to the other party generally for an initial period of 24 months from closing date. In addition to the monthly service fees under the TSA, Viatris has agreed to reimburse Pfizer for fifty percent of the costs, up to the first $380 million incurred, to establish and wind down the TSA services. Viatris will be required to fully reimburse Pfizer for total costs in excess of $380 million. Through the year ended December 31, 2020, the Company has incurred $53.1 million related to this provision of the TSA. In conjunction with the Combination, during the year ended December 31, 2020, the Company has accrued approximately $26.9 million due to change in control clauses in employment arrangements for certain former Mylan employees. It is anticipated that these amounts will be paid during 2021. In addition, the Company entered into retention agreements with certain key employees, whereby they agree to continue to provide service to the Company for a period of time after the Combination. The Company will record the expense for these agreement over the applicable service periods. In the normal course of business, Viatris periodically enters into employment, legal settlement and other agreements which incorporate indemnification provisions. While the maximum amount to which Viatris may be exposed under such agreements cannot be reasonably estimated, the Company maintains insurance coverage, which management believes will effectively mitigate the Company’s obligations under these indemnification provisions. No amounts have been recorded in the consolidated financial statements with respect to the Company’s obligations under such agreements. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring 2020 Restructuring Program During the fourth quarter of 2020, Viatris announced a significant global restructuring program in order to achieve synergies of $1 billion and ensure that the organization is optimally structured and efficiently resourced to deliver sustainable value to patients, shareholders, customers, and other stakeholders. Viatris’ restructuring initiative incorporates and expands on the restructuring program announced by Mylan N.V. earlier in 2020 as part of its business transformation efforts. The company expects to optimize its commercial capabilities and enabling functions, and close, downsize or divest up to 15 manufacturing facilities globally that are deemed to be no longer viable either due to surplus capacity, challenging market dynamics or a shift in its product portfolio toward more complex products. As a result, Viatris expects that up to 20% of its global workforce of approximately 45,000 may be impacted upon completion of the restructuring initiative. For the committed restructuring actions, the Company expects to incur total pre-tax charges ranging between $1.1 billion and $1.4 billion. Such charges are expected to include between $350 million and $450 million of non-cash charges mainly related to accelerated depreciation and asset impairment charges, including inventory write-offs. The remaining estimated cash costs of between $750 million and $950 million are expected to be primarily related to severance and employee benefits expense, as well as other costs, including those related to contract terminations and decommissioning costs. The following table summarizes the restructuring charges and the reserve activity for the 2020 restructuring program: (In millions) Employee Related Costs Other Exit Costs Total Charges (1) $ 195.6 $ 75.7 $ 271.3 Acquired in the Combination 91.7 0.3 92.0 Cash payment (25.1) (0.4) (25.5) Utilization — (70.8) (70.8) Foreign currency translation 0.4 — 0.4 Balance at December 31, 2020 $ 262.6 $ 4.8 $ 267.4 As part of the Combination, the Company acquired reserve balances related to restructuring activities initiated by the Upjohn Business prior to the Combination, primarily related to accrued severance. 2016 Restructuring Program Mylan previously announced a restructuring program representing a series of actions in certain locations that are anticipated to further streamline its operations globally. We have incurred total restructuring related costs of approximately $733.0 million through December 31, 2020. The 2016 Restructuring Program is substantially complete at December 31, 2020. In April 2018, the FDA completed an inspection at Mylan’s plant in Morgantown, West Virginia and made observations through a Form 483. In the fourth quarter of 2018, Mylan received a warning letter related to the previously disclosed observations at the plant. The issues raised in the warning letter were addressed within the context of the Mylan’s comprehensive restructuring and remediation activities. On May 11, 2020 Mylan received the close-out of the warning letter. On December 11, 2020, the Company announced that it expects the Morgantown plant to be closed or divested as part of the 2020 Restructuring Program. The following table summarizes the restructuring charges and the reserve activity for the 2016 restructuring program from December 31, 2018 to December 31, 2020: (In millions) Employee Related Costs Other Exit Costs Total Balance at December 31, 2018: $ 60.8 $ 11.8 $ 72.6 Charges 16.6 88.0 104.6 Cash payment (48.9) (10.5) (59.4) Reclassifications — (8.1) (8.1) Utilization — (78.3) (78.3) Foreign currency translation $ (2.1) $ (0.1) $ (2.2) Balance at December 31, 2019: $ 26.4 $ 2.8 $ 29.2 Charges (1) 9.9 40.6 50.5 Cash payment (18.1) (7.6) (25.7) Utilization — (32.9) (32.9) Foreign currency translation 1.8 (0.1) 1.7 Balance at December 31, 2020 $ 20.0 $ 2.8 $ 22.8 (1) For the year ended December 31, 2020, total restructuring charges, for both programs, in Developed Markets, Greater China, JANZ, and Emerging Markets were approximately $292.1 million, $18.4 million, $2.9 million and $8.4 million, respectively. For the year ended December 31, 2019, total restructuring charges in Developed Markets and JANZ were approximately $100.4 million and $4.2 million respectively. At December 31, 2020 and 2019, accrued liabilities for restructuring and other cost reduction programs were primarily included in other current liabilities in the consolidated balance sheets. |
Collaboration and Licensing Agr
Collaboration and Licensing Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborative and Licensing Agreements | Collaboration and Licensing Agreements We periodically enter into collaboration and licensing agreements with other pharmaceutical companies for the development, manufacture, marketing and/or sale of pharmaceutical products. Our significant collaboration agreements are primarily focused on the development, manufacturing, supply and commercialization of multiple, high-value generic biologic compounds, insulin analog products and respiratory products, among other complex products. Under these agreements, we have future potential milestone payments and co-development expenses payable to third parties as part of our licensing, development and co-development programs. Payments under these agreements generally become due and are payable upon the satisfaction or achievement of certain developmental, regulatory or commercial milestones or as development expenses are incurred on defined projects. Milestone payment obligations are uncertain, including the prediction of timing and the occurrence of events triggering a future obligation and are not reflected as liabilities in the consolidated balance sheets, except for obligations reflected as acquisition related contingent consideration. Refer to Note 9 Financial Instruments and Risk Management for further discussion of contingent consideration. Our potential maximum development milestones not accrued for at December 31, 2020 totaled approximately $380 million. We estimate that the amounts that may be paid during the next twelve months to be approximately $40 million. These agreements may also include potential sales-based milestones and call for us to pay a percentage of amounts earned from the sale of the product as a royalty or a profit share. The amounts disclosed do not include sales-based milestones or royalty or profit share obligations on future sales of product as the timing and amount of future sales levels and costs to produce products subject to these obligations is not reasonably estimable. These sales-based milestones or royalty or profit share obligations may be significant depending upon the level of commercial sales for each product. Revance Collaboration Agreement On February 28, 2018, the Company and Revance entered into the Revance Collaboration Agreement pursuant to which the Company and Revance is collaborating exclusively, on a world-wide basis (excluding Japan), to develop, manufacture and commercialize a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX®. On August 22, 2019, the Company and Revance entered into an amendment (the “Amendment”) to the Revance Collaboration Agreement, pursuant to which Revance had agreed to extend the period of time for the Company to decide whether to continue the development and commercialization of a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX® beyond the initial development plan to prepare for and conduct the BIAM with the FDA. In accordance with the Amendment, the Company was required to notify Revance of its decision on or before the later of (i) April 30, 2020 or (ii) thirty calendar days from the date that Revance provides Mylan with certain deliverables. On June 1, 2020, the Company and Revance announced a decision to continue the development program for a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX®. As a result, during the year ended December 31, 2020, the Company recorded $30 million of R&D expense for a milestone payment that was due upon the decision to continue the program. Momenta On January 8, 2016, the Company entered into an agreement with Momenta to develop, manufacture and commercialize up to six of Momenta’s current biosimilar candidates, including Momenta’s biosimilar candidate, ORENCIA® (abatacept) (“ORENCIA®”). Mylan paid an up-front cash payment of $45 million to Momenta. Under the terms of the agreement, the Company and Momenta are jointly responsible for product development and equally share in the costs and profits of the products with Mylan leading the worldwide commercialization efforts. Under the terms of the agreement, Momenta was eligible to receive additional contingent milestone payments for the development of biosimilar candidates. In January 2019, the parties agreed to the termination of all collaboration activities, except for the continued development of M710, a proposed biosimilar to EYLEA®. The Company remains committed to invest strategically in biosimilar programs through the evaluation of regulatory data and market dynamics. The Company does not anticipate making any additional continuation payments to Momenta. In accordance with ASC 730 , Research and Development and based upon the cost sharing provisions of the agreement, the Company accounted for the contingent milestone payments related to the Momenta collaboration as non-refundable advance payments for services to be used in future R&D activities, which were required to be capitalized until the related services have been performed. More specifically, as costs were incurred within the scope of the collaboration, the Company recorded its share of the costs as R&D expense. In addition to the upfront cash payment, during the years ended December 31, 2020, 2019, and 2018, the Company incurred R&D expense related to this collaboration of approximately $18.2 million, $14.1 million, and $13.4 million, respectively. To the extent the contingent milestone payments made by the Company exceeded the liability incurred, a prepaid asset was reflected in the Company’s consolidated balance sheets. To the extent the contingent milestone payments made by the Company were less than the expense incurred, the difference between the payment and the expense was recorded as a liability in the Company’s consolidated balance sheets. At December 31, 2020, there was no significant recorded prepaid asset or accrued liability in the consolidated balance sheet. Theravance On January 30, 2015, the Company entered into a development and commercialization collaboration with Theravance Biopharma, for the development and, subject to FDA approval, commercialization of Revefenacin (“TD-4208”). Under the terms of the agreement, Mylan and Theravance Biopharma are co-developing nebulized TD-4208 for COPD and other respiratory diseases. Theravance Biopharma led the U.S. registrational development program and Mylan was responsible for the reimbursement of Theravance Biopharma’s development costs for that program up until the approval of the first NDA. On November 9, 2018, Mylan announced that the FDA approved the NDA for YUPELRI TM (revefenacin) inhalation solution for the maintenance treatment of patients with COPD. YUPELRI, a LAMA, is the first and only once-daily, nebulized bronchodilator approved for the treatment of COPD in the U.S. The commercial launch of YUPELRI occurred in the fourth quarter of 2018. Mylan is responsible for commercial manufacturing and commercialization. Theravance Biopharma is co-promoting the product in the hospital channel under a profit-sharing arrangement. On June 14, 2019, the Company and Theravance Biopharma entered into an amended development and commercialization agreement. Under terms of the amended agreement, Theravance Biopharma has granted Mylan exclusive development and commercialization rights to nebulized revefenacin in China and adjacent territories, which include Hong Kong SAR, the Macau SAR and Taiwan. Theravance Biopharma received an upfront payment of $18.5 million and will be eligible to receive additional potential development and sales milestones together with tiered royalties on net sales of nebulized revefenacin, if approved. Mylan will be responsible for all aspects of development and commercialization in the partnered regions, including pre- and post-launch activities and product registration and all associated costs. The upfront payment was expensed during the year ended December 31, 2019. Under the terms of the agreements, Theravance Biopharma is eligible to receive potential development and sales milestone payments totaling approximately $293 million in the aggregate. As of December 31, 2020, Mylan has paid a total of $50.0 million in milestone payments to Theravance Biopharma. Biocon The Company has entered into exclusive collaborations with Biocon on the development, manufacturing, supply and commercialization of multiple, high value biosimilar compounds and three insulin analog products for the global marketplace. Under the agreements with Biocon, Mylan has exclusive commercialization rights for the products under the collaborations in the U.S., Canada, Japan, Australia, New Zealand and in the EU and European Free Trade Association countries. In December 2017, the FDA approved Mylan's Ogivri™ (trastuzumab-dkst), a biosimilar to Herceptin® (trastuzumab). Ogivri has been approved for all indications included in the label of the reference product, Herceptin, including for the treatment of HER2-overexpressing breast cancer and metastatic stomach cancer (gastric or gastroesophageal junction adenocarcinoma). Ogivri was the first FDA-approved biosimilar to Herceptin and was the first biosimilar from Mylan and Biocon's joint portfolio approved in the U.S. In December 2018, the Company received final approval from the Commission to market Ogivri in all 28 EU member states and the European Economic Area. On December 2, 2019, Mylan and Biocon announced the U.S. launch of Ogivri™ (trastuzumab-dkst), a biosimilar to Herceptin ® (trastuzumab). On June 4, 2018, Mylan and Biocon announced that the FDA approved Mylan's Fulphila™ (pegfilgrastim-jmdb), a biosimilar to Neulasta ® (pegfilgrastim). Fulphila has been approved to reduce the duration of febrile neutropenia (fever or other signs of infection with a low count of neutrophils, a type of white blood cells) in patients treated with chemotherapy in certain types of cancer. The commercial launch of Fulphila occurred in 2018. On August 31, 2020, Mylan and Biocon announced the U.S. launch of Semglee™ (insulin glargine injection) in vial and pre-filled pen presentations, approved to help control high blood sugar in adult and pediatric patients with type 1 diabetes and adults with type 2 diabetes. In addition to profit sharing payments to Biocon for the commercialized products, the Company continues to provide development funding related to this collaboration. As the timing of cash expenditures is dependent upon a number of factors, many of which are out of the Company’s control, it is difficult to forecast the amount of payments to be made over the next few years, which could be significant. FKB On February 22, 2018, the Company entered into a collaboration license and distribution agreement with FKB for the distribution of Hulio™, a biosimilar to AbbVie's Humira® (adalimumab). Under the agreement, Mylan has exclusive commercialization rights for the product in the EU and the European Economic Area countries and FKB is responsible for development, manufacturing and supply of the product. On September 20, 2018, the Company received final approval from the Commission to market Hulio for all adalimumab indications in all 28 EU member states and the European Economic Area. Under the agreement, FKB received an upfront payment of $25.0 million, an approval milestone of $10.0 million and is eligible for a royalty based upon net sales. On February 27, 2019, the Company amended its agreements with FKB for the commercialization of Hulio™. Under the amended agreements, Mylan received the exclusive global commercialization rights for Hulio™ and FKB received an additional upfront payment of $33.0 million, of which $23.3 million was recorded as a component of R&D expense during the year ended December 31, 2019. In addition, FKB is eligible to receive additional commercial milestones and royalty payments under the amended agreements. On July 9, 2020, the Company announced that the FDA approved Hulio® (adalimumab-fkjp), a biosimilar to AbbVie's Humira® (adalimumab), for the treatment of rheumatoid arthritis, juvenile idiopathic arthritis (4 years and older), psoriatic arthritis, ankylosing spondylitis, adult Crohn's disease, ulcerative colitis and plaque psoriasis, in both prefilled syringe and auto-injector presentations. In accordance with its patent license agreement with AbbVie, the Company will be able to launch Hulio in the U.S. in July 2023. Other Development Agreements On December 20, 2019, the Company entered into a Master Development Agreement with a privately owned research company to grant the Company rights with respect to acquiring certain pharmaceutical products. The Company expects to provide funding for select programs through upfront payments and development milestones and the Company will have the right and obligation to acquire the products at fair market value upon regulatory approval or other regulatory trigger dates. The Company made an initial upfront payment of $10.0 million which has been accounted for as a R&D expense during the year ended December 31, 2019. Additionally, under the terms of the agreement, the Company acquired $25.0 million worth of equity shares in the privately owned research company during the year ended December 31, 2020. The investment is accounted for in accordance with ASC 321, Investments - Equity Securities . We are actively pursuing, and are currently involved in, joint projects related to the development, distribution and marketing of both generic and branded products. Many of these arrangements provide for payments by us upon the attainment of specified milestones. While these arrangements help to reduce the financial risk for unsuccessful projects, fulfillment of specified milestones or the occurrence of other obligations may result in fluctuations in cash flows and R&D expense. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Litigation The Company is involved in various disputes, governmental and/or regulatory inquiries, investigations and proceedings, tax proceedings and litigation matters, both in the U.S. and abroad, that arise from time to time, some of which could result in losses, including damages, fines and/or civil penalties, and/or criminal charges against the Company. These matters are often complex and have outcomes that are difficult to predict. In addition, in connection with the Combination, the Company has generally assumed liability for, and control of, pending and threatened legal matters relating to the Upjohn Business – including certain matters initiated against Pfizer described below – and has agreed to indemnify Pfizer for liabilities arising out of such assumed legal matters. Pfizer, however, has agreed to retain various matters – including certain specified competition law matters – to the extent they arise from conduct during the pre-Distribution period and has agreed to indemnify the Company for liabilities arising out of such matters. While the Company believes that it has meritorious defenses with respect to the claims asserted against it and the assumed legal matters referenced above, and intends to vigorously defend its position, the process of resolving these matters is inherently uncertain and may develop over a long period of time, and so it is not possible to predict the ultimate resolution of any such matter. It is possible that an unfavorable resolution of any of the ongoing matters could have a material effect on the Company’s business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price. Some of these governmental inquiries, investigations, proceedings and litigation matters with which the Company is involved are described below, and unless otherwise disclosed, the Company is unable to predict the outcome of the matter or to provide an estimate of the range of reasonably possible material losses. The Company records accruals for loss contingencies to the extent we conclude it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company is also involved in other pending proceedings for which, in the opinion of the Company based upon facts and circumstances known at the time, either the likelihood of loss is remote or any reasonably possible loss associated with the resolution of such proceedings is not expected to be material to the Company’s business, financial position, results of operations, cash flows, ability to pay dividends and/or stock price. If and when any reasonably possible losses associated with the resolution of such other pending proceedings, in the opinion of the Company, become material, the Company will disclose such matters. Legal costs are recorded as incurred and are classified in SG&A in the Company’s consolidated statements of operations. EpiPen® Auto-Injector Litigation The Company has been named as a defendant in putative indirect purchaser class actions relating to the pricing and/or marketing of the EpiPen® Auto-Injector. The plaintiffs in these cases assert violations of various federal and state antitrust and consumer protection laws, RICO as well as common law claims. Plaintiffs’ claims include purported challenges to the prices charged for the EpiPen® Auto-Injector and/or the marketing of the product in packages containing two auto-injectors, as well as allegedly anti-competitive conduct. A former Mylan N.V. officer and other non-Viatris affiliated companies are also defendants in some of the class actions. Plaintiffs’ seek monetary damages, attorneys’ fees and costs. These lawsuits were filed in the various federal and state courts and have either been dismissed or transferred into a MDL in the U.S. District Court for the District of Kansas and have been consolidated. The District Court certified an antitrust class that applies to 17 states and a RICO class. Defendants’ motion for summary judgment as to the remaining claims asserted by plaintiffs is pending. On February 14, 2020, the Company, together with other non-Viatris affiliated companies, were named as defendants in a putative direct purchaser class action filed in the U.S. District Court for the District of Kansas relating to the pricing and/or marketing of the EpiPen® Auto-Injector. The plaintiff in this case asserts federal antitrust claims which are based on allegations that are similar to those in the putative indirect purchaser class actions discussed above. On November 3, 2020, the plaintiff filed a second amended complaint that is substantially similar to the allegations in the amended complaint. Plaintiffs’ seek monetary damages, declaratory relief, attorneys’ fees and costs. Beginning in March 2020, the Company, together with other non-Viatris affiliated companies, were named as defendants in putative direct purchaser class actions filed in the U.S. District Court for the District of Minnesota relating to contracts with certain pharmacy benefit managers concerning EpiPen® Auto-Injector. The plaintiffs claim that the alleged conduct resulted in the exclusion or restriction of competing products and the elimination of pricing constraints in violation of RICO and federal antitrust law. These actions have been consolidated. Plaintiffs’ seek monetary damages, attorneys’ fees and costs. On April 24, 2017, Sanofi-Aventis U.S., LLC (“Sanofi”) filed a lawsuit against the Company in the U.S. District Court for the District of New Jersey. This lawsuit has been transferred into the aforementioned MDL and alleges exclusive dealing and anti-competitive marketing practices in violation of the antitrust laws in connection with the sale and marketing of the EpiPen® Auto-Injector. Sanofi seeks monetary damages, declaratory relief, attorneys’ fees and costs. The Court granted the Company’s motion for summary judgment and dismissed Sanofi’s claims. Sanofi’s appeal is pending. The Company has a total accrual of approximately $10.0 million related to this matter at December 31, 2020 which is included in other current liabilities in the condensed consolidated balance sheets. Although it is reasonably possible that the Company may incur additional losses from these matters, any amount cannot be reasonably estimated at this time. In addition, the Company expects to incur additional legal and other professional service expenses associated with such matters in future periods and will recognize these expenses as services are received. The Company believes that the ultimate amount paid for these services and claims could have a material effect on the Company's business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price in future periods. Drug Pricing Matters Department of Justice On December 3, 2015, the Company received a subpoena from the Antitrust Division of the DOJ seeking information relating to the marketing, pricing, and sale of certain of our generic products and any communications with competitors about such products. On September 8, 2016, the Company, as well as certain employees and a member of senior management, received subpoenas from the DOJ seeking similar information. Related search warrants also were executed. On May 10, 2018, the Company received a civil investigative demand from the Civil Division of the DOJ seeking information relating to the pricing and sale of its generic drug products. We are fully cooperating with these investigations, which we believe are related to a broader industry-wide investigation of the generic pharmaceutical industry. Civil Litigation Beginning in 2016, the Company, along with other manufacturers, has been named as a defendant in lawsuits generally alleging anticompetitive conduct with respect to generic drugs. The lawsuits have been filed by plaintiffs, including putative classes of direct purchasers, indirect purchasers, and indirect resellers, as well as individual direct and indirect purchasers and certain cities and counties. They allege harm under federal and state laws, including federal and state antitrust laws, state consumer protection laws and unjust enrichment claims. Some of the lawsuits also name as defendants the Company’s President, including allegations against him with respect to a single drug product, and one of the Company’s sales employees, including allegations against him with respect to certain generic drugs. The lawsuits have been consolidated in an MDL proceeding in the Eastern District of Pennsylvania (“EDPA”). Plaintiffs generally seek monetary damages, restitution, declaratory and injunctive relief, attorneys’ fees and costs. Attorneys General Litigation On December 21, 2015, the Company received a subpoena and interrogatories from the Connecticut Office of the Attorney General seeking information relating to the marketing, pricing and sale of certain of the Company’s generic products and communications with competitors about such products. On December 14, 2016, attorneys general of certain states originally filed a complaint in the United States District Court for the District of Connecticut against several generic pharmaceutical drug manufacturers, including the Company, alleging anticompetitive conduct with respect to, among other things, a single drug product. The complaint has subsequently been amended, including on June 18, 2018, to add attorneys general alleging violations of federal and state antitrust laws, as well as violations of various states’ consumer protection laws. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA. The operative complaint includes attorneys general of forty-seven states, the District of Columbia and the Commonwealth of Puerto Rico. The Company is alleged to have engaged in anticompetitive conduct with respect to four generic drug products. The amended complaint also includes claims asserted by attorneys general of thirty-seven states and the Commonwealth of Puerto Rico against certain individuals, including the Company’s President, with respect to a single drug product. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, and restitution. On May 10, 2019, certain attorneys general filed a new complaint in the United States District Court for the District of Connecticut against various drug manufacturers and individuals, including the Company and one of its sales employees, alleging anticompetitive conduct with respect to additional generic drugs. On November 1, 2019, the complaint was amended, adding additional states as plaintiffs. The operative complaint is brought by attorneys general of forty-eight states, certain territories and the District of Columbia. The amended complaint also includes claims asserted by attorneys general of forty-three states and certain territories against several individuals, including a Company sales employee. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, and restitution. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA. On June 10, 2020, attorneys general of forty-six states, certain territories and the District of Columbia filed a new complaint in the United States District Court for the District of Connecticut against drug manufacturers, including the Company, and individual defendants (none from the Company), alleging anticompetitive conduct with respect to additional generic drugs. The complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, and restitution. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA. Securities Related Litigation Purported class action complaints were filed in October 2016 against Mylan N.V. and Mylan Inc. (collectively “Mylan”), certain of Mylan’s former directors and officers, and certain of the Company’s current directors and officers (collectively, for purposes of this paragraph, the “defendants”) in the SDNY on behalf of certain purchasers of securities of Mylan on the NASDAQ. The complaints alleged that defendants made false or misleading statements and omissions of purportedly material fact, in violation of federal securities laws, in connection with disclosures relating to the classification of their EpiPen® Auto-Injector as a non-innovator drug for purposes of the Medicaid Drug Rebate Program. On March 20, 2017, a consolidated amended complaint was filed alleging substantially similar claims, but adding allegations that defendants made false or misleading statements and omissions of purportedly material fact in connection with allegedly anticompetitive conduct with respect to EpiPen Auto-Injector® and certain generic drugs. The operative complaint is the third amended consolidated complaint, which was filed on June 17, 2019, and contains the allegations as described above against Mylan, certain of Mylan’s former directors and officers, and certain of the Company’s current directors, officers, and employees (collectively, for purposes of this paragraph, the “defendants”. A class has been certified covering all persons or entities that purchased Mylan common stock between February 21, 2012 and May 24, 2019 excluding defendants, certain of the Company’s current directors and officers, former directors and officers of Mylan, members of their immediate families and their legal representatives, heirs, successors or assigns, and any entity in which defendants have or had a controlling interest. Plaintiffs seek damages and costs and expenses, including attorneys’ fees and expert costs. On April 30, 2017, a similar lawsuit was filed in the Tel Aviv District Court (Economic Division) in Israel, which has been stayed pending a decision in the SDNY class action litigation. On February 26, 2019, MYL Litigation Recovery I LLC (“MYL Plaintiff”) (an assignee of entities that purportedly purchased stock of Mylan N.V.) filed an additional complaint in the SDNY against Mylan, certain of Mylan’s former officers and directors, and an officer of the Company asserting allegations pertaining to EpiPen® Auto-Injector under the federal securities laws that overlap in part with those asserted in the third amended complaint identified above. MYL Plaintiff’s complaint seeks monetary damages as well as the plaintiff’s costs. On May 6, 2020, MYL Plaintiff filed an amended complaint including additional allegations in connection with purportedly anticompetitive conduct with respect to EpiPen® Auto-Injector. MYL Plaintiff subsequently filed a summons on October 30, 2020, naming Mylan, certain of Mylan’s former officers and directors, and certain of the Company’s current officers, directors, and employees in New York State Court, County of New York, claiming investment losses suffered as a result of purportedly false and misleading statements in connection with allegedly anticompetitive conduct concerning generic pharmaceuticals. Plaintiff is seeking monetary and punitive damages, attorneys’ fees and costs. On February 14, 2020, the Abu Dhabi Investment Authority filed a complaint against Mylan in the SDNY asserting allegations pertaining to EpiPen® Auto-Injector and certain generic drugs under the federal securities laws that overlap with those asserted in the third amended complaint identified above. The Abu Dhabi Investment Authority’s complaint seeks monetary damages as well as the plaintiff’s fees and costs. On June 26, 2020, a putative class action complaint was filed by the Public Employees Retirement System of Mississippi, which was subsequently amended on November 13, 2020, against Mylan N.V., certain of Mylan N.V.’s former directors and officers, and an officer and director of the Company (collectively for the purposes of this paragraph, the “defendants”) in the U.S. District Court for the Western District of Pennsylvania on behalf of certain purchasers of securities of Mylan N.V. The amended complaint alleges that defendants made false or misleading statements and omissions of purportedly material fact, in violation of federal securities laws, in connection with disclosures relating to the Morgantown manufacturing plant and inspections at the plant by the FDA. Plaintiff seeks certification of a class of purchasers of Mylan N.V. securities between February 16, 2016 and May 7, 2019. The complaint seeks monetary damages, as well as the plaintiff’s fees and costs. On February 15, 2021, a complaint was filed by Skandia Mutual Life Ins. Co., Lansforsakringar AB, KBC Asset Management N.V., and GIC Private Limited, against the Company, certain of Mylan N.V.’s former directors and officers, a current director and officer of the Company, and current employees of the Company. The Complaint asserts claims which are based on allegations that are similar to those in the SDNY and the Western District of Pennsylvania complaints identified above. Plaintiffs seek compensatory damages, costs and expenses and attorneys’ fees. Opioids The Company, along with other manufacturers, distributors, pharmacies, pharmacy benefit managers, and individual healthcare providers is a defendant in more than 1,000 cases in the United States and Canada filed by various plaintiffs, including counties, cities and other local governmental entities, asserting civil claims related to sales, marketing and/or distribution practices with respect to prescription opioid products. In addition, lawsuits have been filed as putative class actions including on behalf of children with Neonatal Abstinence Syndrome due to alleged exposure to opioids. The lawsuits generally seek equitable relief and monetary damages (including punitive and/or exemplary damages) based on a variety of legal theories, including various statutory and/or common law claims, such as negligence, public nuisance and unjust enrichment. The vast majority of these lawsuits have been consolidated in an MDL in the U.S. District Court for the Northern District Court of Ohio. In November 2019, the Company received a subpoena from the New York Department of Financial Services as part of an industry-wide inquiry into the effect of opioid prescriptions on New York health insurance premiums. The Company is fully cooperating with this subpoena request. European Commission Proceedings Perindopril On July 9, 2014, the Commission issued a decision finding that the Company as well as several other companies, had violated EU competition rules relating to the product Perindopril and fined the Company approximately €17.2 million. The Company paid approximately $21.7 million related to this matter during the fourth quarter of 2014. The decision was affirmed on appeal by the General Court of the EU and is now on appeal to the CJEU. The Company has received a notice from an organization representing health insurers in the Netherlands stating an intention to commence follow-on litigation and asserting monetary damages. Citalopram On June 19, 2013, the Commission issued a decision finding that the Company as well as several other companies, had violated EU competition rules relating to the product Citalopram and fined the Company approximately €7.8 million, jointly and severally with Merck KGaA. The decision was affirmed on appeal by the General Court of the EU and is now on appeal to the CJEU. The U.K. applied and was granted permission to intervene in this proceeding. The Company has received notices from European NHS and health insurers stating an intention to commence follow-on litigation and asserting monetary damages. The NHS England and Wales has instituted litigation against all parties to the Commission’s decision, including the Company. This litigation has been stayed pending the CJEU’s decision. The Company has also sought indemnification from Merck KGaA with respect to the €7.8 million portion of the fine for which Merck KGaA and the Company were held jointly and severally liable. Merck KGaA has counterclaimed against the Company seeking the same indemnification. In June 2018, the Frankfurt Regional Court issued a judgment ordering the Company to indemnify Merck KGaA with respect to the amount for which the parties were held jointly and severally liable. The Company has appealed this decision. The proceedings have been stayed pending the CJEU appeal decision. The Company has accrued approximately €7.4 million as of December 31, 2020 related to this matter. It is reasonably possible that we will incur additional losses above the amount accrued but we cannot estimate a range of such reasonably possible losses at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued. U.K. Competition and Markets Authority Paroxetine On August 12, 2011, the Company received notice that the Office of Fair Trading (now the “CMA”) opened an investigation regarding possible infringement of the Competition Act 1998 and Articles 101 and 102 of the Treaty on the Functioning of the EU, with respect to alleged agreements related to Paroxetine. The CMA issued a decision on February 12, 2016, finding that the Company, Merck KGaA, and other companies were liable for infringing EU and U.K. competition rules. With respect to Merck KGaA and the Company, the CMA issued a penalty of approximately £5.8 million, for which Merck KGaA is liable for the entire amount; and of that amount the Company is jointly and severally liable for approximately $2.7 million. The matter is currently on appeal to the CAT. In connection with the appeal, the CJEU ruled on certain questions of law referred to it by the CAT. The Company has also received a notice from the NHS England and Wales stating an intention to commence follow-on litigation and asserting monetary damages. The Company has accrued approximately £2.7 million and £10.1 million as of December 31, 2019 and December 31, 2020, respectively, related to this matter. It is reasonably possible that we will incur additional losses above the amount accrued but we cannot estimate a range of such reasonably possible losses at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued. Product Liability Like other pharmaceutical companies, the Company is involved in a number of product liability lawsuits related to alleged personal injuries arising out of certain products manufactured/or distributed by the Company, including but not limited to those discussed below. Plaintiffs in these cases generally seek damages and other relief on various grounds for alleged personal injury and economic loss. The Company has accrued approximately $90.5 million as of December 31, 2020 for its product liability matters. It is reasonably possible that we will incur additional losses and fees above the amount accrued but we cannot estimate a range of such reasonably possible losses or legal fees related to these claims at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued. Nitrosamines The Company, along with numerous other manufacturers, retailers, and others, are parties to litigation relating to alleged trace amounts of nitrosamine impurities in certain products, including valsartan and ranitidine. The vast majority of these lawsuits in the United States are pending in two MDLs, namely an MDL pending in the United States District Court for the District of New Jersey concerning valsartan and an MDL pending in the United States District Court for the Southern District of Florida concerning raniditine. The lawsuits against the Company in the MDLs include putative class actions seeking the refund of the purchase price and other economic and punitive damages allegedly sustained by consumers and end payors as well as individuals seeking compensatory and punitive damages for personal injuries allegedly caused by ingestion of the medications. Similar lawsuits pertaining to valsartan have been filed in Canada and other countries. The Company has also received claims and inquiries related to these products, as well as requests to indemnify purchasers of the Company’s API and/or finished dose forms of these products. The original master complaints concerning ranitidine were dismissed on December 31, 2020. The Company has not been named as a defendant in the amended master complaints, though it is still named in certain short form personal injury complaints. The end-payor plaintiffs in the ranitidine matter have filed an appeal to the U.S. Court of Appeals for the Eleventh Circuit. Lipitor A number of individual and multi-plaintiff lawsuits have been filed against Pfizer in various federal and state courts alleging that the plaintiffs developed type 2 diabetes purportedly as a result of the ingestion of Lipitor. Plaintiffs seek compensatory and punitive damages. In February 2014, the federal actions were transferred for consolidated pre-trial proceedings to an MDL in the U.S. District Court for the District of South Carolina. Since 2016, certain cases in the MDL were remanded to certain state courts. In 2017, the District Court granted Pfizer’s motion for summary judgment, dismissing all of the cases pending in the MDL. In June 2018, this dismissal was affirmed by the U.S. Court of Appeals for the Fourth Circuit. The state court proceedings remain pending in various jurisdictions, including in California, Missouri, and New York. On January 27, 2021, the California Court granted Pfizer’s motion to exclude the opinions of plaintiffs’ only general causation expert in connection with his opinions involving the three lowest doses of Lipitor (10, 20 and 40 mg). Viagra Since April 2016, an MDL has been pending in the U.S. District Court for the Northern District of California , in which plaintiffs allege that they developed melanoma and/or the exacerbation of melanoma purportedly as a result of the ingestion of Viagra. Additional cases filed against Eli Lilly and Company (“Lilly”) with respect to Cialis have also been consolidated in the MDL. Plaintiffs seek compensatory and punitive damages. In January 2020, the District Court granted Pfizer’s and Lilly’s motion to exclude all of plaintiffs’ general causation opinions. As a result, in April 2020, the District Court entered summary judgment in favor of defendants and dismissed all of plaintiffs’ claims. In April 2020, plaintiffs filed a notice of appeal in the U.S. Court of Appeals for the Ninth Circuit. The parties have reached a settlement in principle. Dilantin Since 2018, a number of individual and multi-plaintiff lawsuits have been filed against Pfizer and related entities in various federal and state courts, alleging that the plaintiffs developed cerebellar atrophy as a result of the ingestion of Dilantin. Plaintiffs seek compensatory and punitive damages. The cases are in various stages, from the initial pleading stage to discovery, and some at the bellwether case selection phase. Intellectual Property The Company is involved in a number of patent litigation lawsuits involving the validity and/or infringement of patents held by branded pharmaceutical manufacturers including but not limited to the matters described below. The Company uses its business judgment to decide to market and sell certain products, in each case based on its belief that the applicable patents are invalid and/or that its products do not infringe, notwithstanding the fact that allegations of patent infringement(s) or other potential third party rights have not been finally resolved by the courts. The risk involved in doing so can be substantial because the remedies available to the owner of a patent for infringement may include, a reasonable royalty on sales or damages measured by the profits lost by the patent owner. If there is a finding of willful infringement, damages may be increased up to three times. Moreover, because of the discount pricing typically involved with bioequivalent products, patented branded products generally realize a substantially higher profit margin than generic and biosimilar products. The Company also faces challenges to its patents, including suits in various jurisdictions pursuant to which generic drug manufacturers, payers, governments, or other parties are seeking damages for allegedly causing delay of generic entry. An adverse decision in any of these matters could have an adverse effect that is material to our business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price. The Company has accrued approximately $204.3 million as of December 31, 2020 for its intellectual property matters. It is reasonably possible that we will incur additional losses and fees above the amount accrued but we cannot estimate a range of such reasonably possible losses or legal fees related to these claims at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued. Insulin Glargine On October 24, 2017, Sanofi and affiliated entities (collectively for the purposes of this section, “Sanofi”), sued Mylan GmbH and other Mylan entities in the U.S. District Court for the District of New Jersey asserting that Mylan GmbH’s new drug application for insulin glargine injection 100 Units/mL vials and prefilled injection pens (SEMGLEE ® vial and pens) infringed 18 U.S. patents. 2 of the 18 patents covered the insulin glargine formulation. Both of these patents have been held invalid and all appeals have concluded. These two patents were the only patents asserted against the SEMGLEE ® vial product. The 16 other asserted patents relate to a pen injection device (“device patents”) and were asserted only against the SEMGLEE ® pen injection device. Prior to trial, Sanofi dismissed 12 of those device patents from the case and granted the Company a covenant not to sue with respect to them. On June 17, 2019, following the District Court’s claim construction order, the District Court entered judgment of non-infringement with respect to the asserted claims of three of the four remaining device patents (U.S. Patent Numbers 8,603,044, 8,679,069, 8,992,486). Only one device patent remained for trial (U.S. Patent Number 9,526,844). On March 9, 2020, the District Court issued an opinion after trial finding all asserted claims of the ‘844 patent not infringed and invalid for lack of written description. Sanofi’s appeal is pending. On September 10, 2018, Mylan Pharmaceuticals Inc. (“MPI”) filed IPR petitions challenging five device patents (the ‘844, ‘044, ‘069, ‘486, and ‘008 patents). On April 2, 2020 and May 29, 2020, the PTAB issued final written decisions in the IPR proceedings finding all challenged claims unpatentable except for two claims of the ‘008 patent for which Sanofi granted the Company a covenant not to sue as described above. Sanofi’s appeal of all IPR decisions is pending. On June 11, 2020, the FDA approved the SEMGLEE ® vial and pen products, which MPI began selling on August 31, 2020. Dimethyl Fumarate On June 30, 2017, Biogen MA Inc. and Biogen International GmbH (collectively, “Biogen”) sued MPI in the U.S. District Court for the Northern District of West Virginia asserting that MPI’s abbreviated new drug application for dimethyl fumarate delayed-release capsules containing 120 mg and 240 mg of dimethyl fumarate (generic for Tecfidera ® ) infringed six U.S. patents that Biogen had listed in the Orange Book: 6,509,376, 7,320,999, 7,619,001, 7,803,840, 8,759,393, and 8,399,514. All patents except for the ‘514 expired during the litigation and were dismissed from the case. After a trial involving only the ’514 patent on June 18, 2020, the District Court issued a judgment finding all claims of the ’514 patent invalid for lack of adequate written description. Biogen’s appeal is pending. On July 13, 2018, MPI filed an IPR petition challenging the ’514 patent based only on obviousness. On February 5, 2020, the PTAB issued a final written decision finding the claims not obvious. MPI’s appeal is pending. On August 17, 2020, the FDA approved MPI’s dimethyl fumarate delayed-release capsules, which MPI began selling on August 18, 2020. Lyrica - United Kingdom Beginning in 2014, Pfizer was involved in patent litigation in the English courts concerning the validity of its Lyrica pain use patent. In 2015, the High Court of Justice in London |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | VIATRIS INC. AND SUBSIDIARIES SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (In millions) Description Beginning Additions Charged to Costs and Expenses Additions (1) Deductions Ending Allowance for doubtful accounts: Year ended December 31, 2020 $ 72.8 16.9 77.3 (7.1) $ 159.9 Year ended December 31, 2019 $ 98.2 14.2 — (39.6) $ 72.8 Year ended December 31, 2018 $ 75.3 32.3 0.2 (9.6) $ 98.2 Valuation allowance for deferred tax assets: Year ended December 31, 2020 $ 603.5 39.0 — (198.9) $ 443.6 Year ended December 31, 2019 $ 806.0 36.8 — (239.3) $ 603.5 Year ended December 31, 2018 $ 662.8 203.8 — (60.6) $ 806.0 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation Policy | Principles of Consolidation. The consolidated financial statements include the accounts of Viatris and those of its wholly owned and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Investments in equity method affiliates are recorded at cost and adjusted for the Company’s share of the affiliates’ cumulative results of operations, capital contributions and distributions. Noncontrolling interests in the Company’s subsidiaries are generally recorded net of tax as net earnings attributable to noncontrolling interests. |
Use of Estimates in the Preparation of Financial Statements Policy | Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of the uncertainty inherent in such estimates, actual results could differ from those estimates. |
Foreign Currencies Policy | Foreign Currencies. The consolidated financial statements are presented in U.S. Dollars, the reporting currency of Viatris. Statements of Operations and Cash Flows of all of the Company’s subsidiaries that have functional currencies other than U.S. Dollars are translated at a weighted average exchange rate for the period for inclusion in the consolidated statements of operations and cash flows, whereas assets and liabilities are translated at the end of the period exchange rates for inclusion in the consolidated balance sheets. Translation differences are recorded directly in shareholders’ equity as foreign currency translation adjustments. Gains or losses on transactions denominated in a currency other than the subsidiaries’ functional currency, which arise as a result of changes in foreign currency exchange rates, are recorded in the consolidated statements of operations. |
Cash and Cash Equivalents Policy | Cash and Cash Equivalents. Cash and cash equivalents are comprised of highly liquid investments with an original maturity of three months or less at the date of purchase. |
Marketable Securities Policy | Debt and Equity Securities. Debt securities classified as available-for-sale on the date of purchase are recorded at fair value, with net unrealized gains and losses, net of income taxes, reflected in accumulated other comprehensive loss as a component of shareholders’ equity. Net realized gains and losses on sales of available-for-sale debt securities are computed on a specific security basis and are included in other expense, net, in the consolidated statements of operations. Debt securities classified as trading securities are valued using the quoted market price from broker or dealer quotations or transparent pricing sources at the reporting date. Fair value is determined based on observable market quotes or valuation models using assessments of counterparty credit worthiness, credit risk or underlying security and overall capital market liquidity. Debt securities are reviewed for impairment by assessing if the decline in market value of the investment below the carrying value is other than temporary. Investments in equity securities with readily determinable fair values are recorded at fair value with changes in fair value recorded in other expense, net in the consolidated statements of operations. Investments in equity securities without readily determinable fair values are recorded at cost minus any impairment, plus or minus changes in their estimated fair value resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Investments in entities are accounted for using the equity method of accounting when the ability to exercise significant influence over the operating and financial decisions of the investee is maintained. The share of net income or losses of equity method investments are included in other expense, net in the consolidated statements of operations. Investments in equity securities without readily determinable fair values and investments in equity accounted for using the equity method are assessed for potential impairment on a quarterly basis based on qualitative factors. |
Concentrations of Credit Risk Policy | Concentrations of Credit Risk. Financial instruments that potentially subject the Company to credit risk consist principally of interest-bearing investments, derivatives and accounts receivable. Viatris invests its excess cash in high-quality, liquid money market instruments, principally overnight deposits and highly rated money market funds. The Company maintains deposit balances at certain financial institutions in excess of federally insured amounts. Periodically, the Company reviews the creditworthiness of its counterparties to derivative transactions, and it does not expect to incur a loss from failure of any counterparties to perform under agreements it has with such counterparties. |
Inventories Policy | Inventories. Inventories are stated at the lower of cost and net realizable value, with cost principally determined by the weighted average cost method. Provisions for potentially obsolete or slow-moving inventory, including pre-launch inventory, are made based on our analysis of product dating, inventory levels, historical obsolescence and future sales forecasts. Included as a component of cost of sales is expense related to the net realizable value of inventories. |
Property, Plant and Equipment Policy | Property, Plant and Equipment. Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed and recorded on a straight-line basis over the assets’ estimated service lives (3 to 18 years for machinery and equipment and other fixed assets and 15 to 39 years for buildings and improvements). Capitalized software is included in property, plant and equipment and is amortized over estimated useful lives ranging from 3 to 7 years. |
Intangible Assets and Goodwill Policy | Intangible Assets and Goodwill. Intangible assets are stated at cost less accumulated amortization. Amortization is generally recorded on a straight-line basis over estimated useful lives ranging from 3 to 20 years. The Company periodically reviews the estimated useful lives of intangible assets and makes adjustments when events indicate that a shorter life is appropriate. The Company accounts for acquired businesses using the acquisition method of accounting in accordance with the provisions of the ASC 805, which requires that the assets acquired and liabilities assumed be recorded at the date of acquisition at their respective estimated fair values. The cost to acquire businesses is allocated to the underlying net assets of the acquired business based on estimates of their respective fair values. Amounts allocated to acquired IPR&D are capitalized at the date of acquisition and, at that time, such IPR&D assets have indefinite lives. As products in development are approved for sale, amounts are allocated to product rights and licenses and will be amortized over their estimated useful lives. Finite-lived intangible assets are amortized over the expected life of the asset. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Purchases of developed products and licenses that are accounted for as asset acquisitions are capitalized as intangible assets and amortized over an estimated useful life. IPR&D assets acquired as part of an asset acquisition are expensed immediately if they have no alternative future uses. The Company reviews goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable based on management's assessment of the fair value of the Company's reporting units as compared to their related carrying value. Under the authoritative guidance issued by the FASB, we have the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If we choose to use qualitative factors and determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the goodwill impairment test would be required. The goodwill impairment test requires the Company to estimate the fair value of the reporting unit and to compare the fair value of the reporting unit with its carrying amount. If the carrying amount is less than its fair value, then no impairment is recognized. If the carrying amount recorded exceeds the fair value calculated, an impairment charge is recorded for the difference. The judgments made in determining the projected cash flows used to estimate the fair value can materially impact the Company’s financial condition and results of operations. Indefinite-lived intangibles, principally IPR&D, are tested at least annually for impairment or upon the occurrence of a triggering event. The impairment test for IPR&D consists of a comparison of the asset’s fair value with its carrying value. Impairment is determined to exist when the fair value of IPR&D assets, which is based upon updated forecasts and commercial development plans, is less than the carrying value of the assets being tested. |
Contingent Consideration Policy | Contingent Consideration. Viatris records contingent consideration resulting from business acquisitions at its estimated fair value on the acquisition date. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as adjustments to litigation settlements and other contingencies, net within the consolidated statements of operations. Changes in the fair value of the contingent consideration obligations can result from adjustments to the discount rates, payment periods and adjustments in the probability of achieving future development steps, regulatory approvals, market launches, sales targets and profitability. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Significant judgment is employed in determining the assumptions utilized as of the acquisition date and for each subsequent measurement period. Accordingly, changes in the assumptions described above could have a material impact on the Company’s consolidated financial condition and results of operations. |
Impairment of Long-Lived Assets Policy | Impairment of Long-Lived Assets. The carrying values of long-lived assets, which include property, plant and equipment and intangible assets with finite lives, are evaluated periodically in relation to the expected future undiscounted cash flows of the underlying assets and monitored for other potential triggering events. The assessment for impairment is based on our ability to recover the carrying value of the long-lived assets or asset grouping by analyzing the expected future undiscounted pre-tax cash flows specific to the asset or asset grouping. If the carrying amount is greater than the undiscounted cash flows, the Company recognizes an impairment loss for the excess of the carrying amount over the estimated fair value based on discounted cash flows. Significant management judgment is involved in estimating the recoverability of these assets and is dependent upon the accuracy of the assumptions used in making these estimates, as well as how the estimates compare to the eventual future operating performance of the specific asset or asset grouping. Any future long-lived assets impairment charges could have a material impact on the Company’s consolidated financial condition and results of operations. |
Research and Development Policy | Research and Development. R&D expenses are charged to operations as incurred. |
Short-Term Borrowings | Short-Term Borrowings. The Company’s subsidiaries in India have working capital facilities with several banks which are secured by its current assets. MPI, a wholly owned subsidiary of the Company, also has the CP Notes, Receivables Facility, which will expire in April 2022 and the Note Securitization Facility. Under the terms of each of the Receivables Facility and Note Securitization Facility, certain of our accounts receivable secure the amounts borrowed and cannot be used to pay our other debts or liabilities. As the accounts receivable do not transfer to the banks, any amounts outstanding under the facilities are recorded as borrowings and the underlying receivables continue to be included in accounts receivable, net, in the consolidated balance sheets. |
Revenue Recognition Policy | Revenue Recognition. The Company recognizes revenues in accordance with ASC 606. Under ASC 606, the Company recognizes net revenue for product sales when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are recorded net of provisions for variable consideration, including discounts, rebates, governmental rebate programs, price adjustments, returns, chargebacks, promotional programs and other sales allowances. Accruals for these provisions are presented in the consolidated financial statements as reductions in determining net sales and as a contra asset in accounts receivable, net (if settled via credit) and other current liabilities (if paid in cash). Amounts recorded for revenue deductions can result from a complex series of judgements about future events and uncertainties and can rely heavily on estimates and assumptions. The following section briefly describes the nature of our provisions for variable consideration and how such provisions are estimated: • Chargebacks : the Company has agreements with certain indirect customers, such as independent pharmacies, retail pharmacy chains, managed care organizations, hospitals, nursing homes, governmental agencies and pharmacy benefit managers, which establish contract prices for certain products. The indirect customers then independently select a wholesaler from which to purchase the products at these contracted prices. Alternatively, certain wholesalers may enter into agreements with indirect customers that establish contract pricing for certain products, which the wholesalers provide. Under either arrangement, Viatris will provide credit to the wholesaler for any difference between the contracted price with the indirect party and the wholesaler’s invoice price. Such credits are called chargebacks. The provision for chargebacks is based on expected sell-through levels by our wholesaler customers to indirect customers, as well as estimated wholesaler inventory levels. • Rebates, promotional programs and other sales allowances : this category includes rebate and other programs to assist in product sales. These programs generally provide that the customer receives credit directly related to the amount of purchases or credits upon the attainment of pre-established volumes. Also included in this category are prompt pay discounts, administrative fees and price adjustments to reflect decreases in the selling prices of products. • Returns : consistent with industry practice, Viatris maintains a return policy that allows customers to return a product, which varies country by country in accordance with local practices, generally within a specified period prior (six months) and subsequent (twelve months) to the expiration date. The Company’s estimate of the provision for returns is generally based upon historical experience with actual returns. Generally, returned products are destroyed and customers are refunded the sales price in the form of a credit. • Governmental rebate programs : government reimbursement programs in the U.S. include Medicare, Medicaid, and State Pharmacy Assistance Programs established according to statute, regulations and policy. Manufacturers of pharmaceutical products that are covered by the Medicaid program are required to pay rebates to each state based on a statutory formula set forth in the Social Security Act. Medicare beneficiaries are eligible to obtain discounted prescription drug coverage from private sector providers. In addition, certain states have also implemented supplemental rebate programs that obligate manufacturers to pay rebates in excess of those required under federal law. Our estimate of these rebates is based on the historical trends of rebates paid as well as on changes in wholesaler inventory levels and increases or decreases in the level of sales. We estimate discounts on branded prescription drug sales to Medicare Part D participants in the Medicare “coverage gap” based on historical experience of prescriptions and utilization expected to result in the discount of the “coverage gap”. Outside the U.S. the majority of our pharmaceutical sales are contractually or legislatively governed. In certain European countries, certain rebates are calculated on the governments total pharmaceutical spending or on specific product sale thresholds. We utilize historical data and obtain third party information to determine the adequacy of these accruals. Also, this provision includes price reductions that are mandated by law outside of the U.S. Our net sales may be impacted by wholesaler and distributor inventory levels of our products, which can fluctuate throughout the year due to the seasonality of certain products, pricing, the timing of product demand, purchasing decisions and other factors. Such fluctuations may impact the comparability of our net sales between periods. |
Income Taxes Policy | Income Taxes. Income taxes have been provided for using an asset and liability approach in which deferred income taxes reflect the tax consequences on future years of events that the Company has already recognized in the financial statements or tax returns. Changes in enacted tax rates or laws may result in adjustments to the recorded tax assets or liabilities in the period that the new tax law is enacted. |
Earnings Per Common Share Policy | Earnings per Share. Basic earnings per share is computed by dividing net earnings attributable to holders of Viatris Inc. common stock by the weighted average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net earnings attributable to holders of Viatris Inc. common stock by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities or instruments, if the impact is dilutive. Mylan was authorized to repurchase up to $1 billion of its ordinary shares under its repurchase program that was previously approved by the Mylan’s board of directors and announced on November 16, 2015, but was not obligated to acquire any particular amount of ordinary shares. In 2018, Mylan repurchased approximately 9.8 million of ordinary shares at a cost of approximately $432.0 million. Basic and diluted earnings per share attributable to Viatris Inc. are calculated as follows: Year Ended December 31, (In millions, except per share amounts) 2020 2019 2018 Basic (loss) earnings attributable to Viatris Inc. common shareholders (numerator): Net (loss) earnings attributable to Viatris Inc. common shareholders $ (669.9) $ 16.8 $ 352.5 Shares (denominator): Weighted average shares outstanding 601.2 515.7 514.5 Basic (loss) earnings per share attributable to Viatris Inc. shareholders $ (1.11) $ 0.03 $ 0.69 Diluted (loss) earnings attributable to Viatris Inc. common shareholders (numerator): Net (loss) earnings attributable to Viatris Inc. common shareholders $ (669.9) $ 16.8 $ 352.5 Shares (denominator): Weighted average shares outstanding 601.2 515.7 514.5 Share-based awards and warrants — 0.8 2.0 Total dilutive shares outstanding 601.2 516.5 516.5 Diluted (loss) earnings per share attributable to Viatris Inc. shareholders $ (1.11) $ 0.03 $ 0.68 The weighted average shares outstanding used in the computation of earnings per share for the year ended December 31, 2020 includes the effect of the 689.9 million shares issued for the closing of the Combination. |
Stock-Based Compensation Policy | Share-Based Compensation. The fair value of share-based compensation is recognized as expense in the consolidated statements of operations over the vesting period. |
Derivatives Policy | Derivatives. From time to time the Company may enter into derivative financial instruments (mainly foreign currency exchange forward contracts, interest rate swaps and purchased equity call options) designed to: 1) hedge the cash flows resulting from existing assets and liabilities and transactions expected to be entered into over the next 24 months in currencies other than the functional currency, 2) hedge the variability in interest expense on floating rate debt, 3) hedge the fair value of fixed-rate notes, 4) hedge against changes in interest rates that could impact future debt issuances, 5) hedge cash or share payments required on conversion of issued convertible notes, 6) hedge a net investment in a foreign operation, or 7) economically hedge the foreign currency exposure associated with the purchase price of non-U.S. acquisitions. Derivatives are recognized as assets or liabilities in the consolidated balance sheets at their fair value. When the derivative instrument qualifies as a cash flow hedge, changes in the fair value are deferred through other comprehensive earnings. If a derivative instrument qualifies as a fair value hedge, the changes in the fair value, as well as the offsetting changes in the fair value of the hedged items, are generally included in interest expense. When such instruments do not qualify for hedge accounting the changes in fair value are recorded in the consolidated statements of operations within other expense, net |
Financial Instruments Policy | Financial Instruments. The Company’s financial instruments consist primarily of short-term and long-term debt, interest rate swaps, forward contracts and option contracts. The Company’s financial instruments also include cash and cash equivalents as well as accounts and other receivables and accounts payable, the fair values of which approximate their carrying values. As a policy, the Company does not engage in speculative or leveraged transactions. The Company uses derivative financial instruments for the purpose of hedging foreign currency and interest rate exposures, which exist as part of ongoing business operations, or to hedge cash, and have been used to hedge share payments required on conversion of issued convertible notes. The Company carries derivative instruments in the consolidated balance sheets at fair value, determined by reference to market data such as forward rates for currencies, implied volatilities, and interest Fair value is based on the price that would be received from the sale of an identical asset or paid to transfer an identical liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy has been established that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable market-based inputs other than quoted prices in active markets for identical assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. Adoption of New Accounting Standards and Amended SEC Rules In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses (“ASU 2016-13”) , which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relie f (“ASU 2019-05”). ASU 2019-05 provides transition relief for ASU 2016-13 by providing entities with an alternative to irrevocably elect the fair value option for eligible financial assets measured at amortized cost upon adoption of ASU 2016-13. The Company applied the provisions of ASU 2016-13 and its subsequent revisions as of January 1, 2020 and the adoption did not have a material impact on its consolidated financial statements and disclosures. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-03”), which adds to and modifies certain disclosure requirements for fair value measurements including a requirement to disclose changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and a requirement to disclose the range and weighted average used to develop significant inputs for Level 3 fair value measurements. The Company applied the provisions of ASU 2018-13 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s disclosures. In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). The objective of this update is to clarify and align the accounting and capitalization of implementation costs for hosting arrangements, regardless of whether they convey a license to the hosted software. The updated guidance will require an entity in a hosting arrangement that is a service contract, to follow guidance in ASC Topic 350, Intangibles-Goodwill and Other, to determine which implementation costs to capitalize as an asset and which costs to expense. The Company applied the provisions of ASU 2018-15 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In November 2018, the FASB issued Accounting Standards Update 2018-18, Collaborative Arrangements (Topic 808)—Clarifying the Interaction between Topic 808 and Topic 606 (“ASU 2018-18”). The amendments in ASU 2018-18 make targeted improvements to U.S. GAAP for collaborative arrangements by clarifying that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation, and disclosure requirements. In addition, unit-of-account guidance in Topic 808 was aligned with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606. The Company applied the provisions of ASU 2018-18 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In March 2020, the SEC amended Rule 3-10 of Regulation S-X regarding the financial disclosure requirements for guarantors and issuers of guaranteed securities registered or being registered. Among other things, the amendments narrow the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamline the alternative disclosures required in lieu of those financial statements. The effective date of the amendment is January 4, 2021 with earlier voluntary compliance permitted. We have chosen to voluntarily comply with the amended rules effective during the three months ended March 31, 2020 and have included the required disclosures as a component of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Form 10-K as permitted by the amendments. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) which supersedes FASB Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight- line basis over the term of the lease, respectively. A lessee is also required to record a ROU asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The Company adopted the provisions of Topic 842 as of January 1, 2019 on a modified retrospective basis applying the guidance to leases existing as of this effective date. We elected to apply the available package of transitional practical expedients which permitted us not to reassess under the new standard our prior conclusions regarding lease identification, lease classification and initial direct costs. We have also elected to apply the short-term lease recognition exemption which means we will not recognize ROU assets or lease liabilities for leases that qualify both at transition and on a go-forward basis. In addition, we have elected to apply the practical expedient to not separate lease and non-lease components for our leases except for those related to certain limited supply arrangements. We will continue to report periods prior to January 1, 2019 in our financial statements under prior guidance as outlined in Topic 840. Upon adoption of Topic 842, the Company determined that there was no cumulative-effect adjustment to beginning retained earnings in the consolidated balance sheets. Adoption of the standard did not have a material impact on our consolidated statements of operations or cash flows. Refer to Note 6 Leases for additional information. In June 2018, the FASB issued Accounting Standards Update 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The changes took effect for the Company as of January 1, 2019. The impact of the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In August 2018, the FASB issued Accounting Standards Update 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”) . ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and added additional disclosures. The new standard is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020 with early adoption in any interim period permitted. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. The adoption of this guidance did not have a material impact on the Company’s disclosures. Accounting Standards Issued Not Yet Adopted In January 2020, the FASB issued Accounting Standards Update 2020-01, Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (“ASU 2020-01”) , which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. In addition, ASU 2020-01 states that for the purpose of applying paragraph 815-10-15-141(a) an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. ASU 2020-01 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 with early adoption in any interim period permitted. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements and disclosures. In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Entities can apply the provisions of ASU 2020-04 immediately, as applicable, and generally the provisions of the guidance are available through December 31, 2022 as entities transition away from reference rates that are expected to be discontinued. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements and disclosures. In December 2019, the FASB issued Accounting Standards Update 2019-12, Income Taxes (Topic 740) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Earnings Per Common Share Attributable To Mylan | Basic and diluted earnings per share attributable to Viatris Inc. are calculated as follows: Year Ended December 31, (In millions, except per share amounts) 2020 2019 2018 Basic (loss) earnings attributable to Viatris Inc. common shareholders (numerator): Net (loss) earnings attributable to Viatris Inc. common shareholders $ (669.9) $ 16.8 $ 352.5 Shares (denominator): Weighted average shares outstanding 601.2 515.7 514.5 Basic (loss) earnings per share attributable to Viatris Inc. shareholders $ (1.11) $ 0.03 $ 0.69 Diluted (loss) earnings attributable to Viatris Inc. common shareholders (numerator): Net (loss) earnings attributable to Viatris Inc. common shareholders $ (669.9) $ 16.8 $ 352.5 Shares (denominator): Weighted average shares outstanding 601.2 515.7 514.5 Share-based awards and warrants — 0.8 2.0 Total dilutive shares outstanding 601.2 516.5 516.5 Diluted (loss) earnings per share attributable to Viatris Inc. shareholders $ (1.11) $ 0.03 $ 0.68 |
Acquisitions and Other Transa_2
Acquisitions and Other Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The allocation of the $481.9 million purchase price to the assets acquired and liabilities assumed for this business is as follows: (In millions) Current assets $ 29.2 Property, plant and equipment 30.0 Intangible and other noncurrent assets 496.7 Total assets acquired 555.9 Current liabilities (54.0) Long-term debt and other noncurrent obligations (20.0) Net assets acquired $ 481.9 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary allocation of the $10.73 billion purchase price to the assets acquired and liabilities assumed under the Combination is as follows: (In millions) Current assets (excluding inventories and net of cash acquired) $ 2,841.9 Inventories 2,588.9 Property, plant and equipment 1,394.1 Identified intangible assets 18,040.0 Goodwill 2,107.5 Deferred income tax benefit 1,481.9 Other assets 792.1 Total assets acquired $ 29,246.4 Current liabilities 2,760.2 Long-term debt, including current portion 13,076.2 Deferred tax liabilities 1,656.9 Other noncurrent liabilities 1,441.5 Net assets acquired (net of $415.8 of cash acquired) $ 10,311.6 |
Business Acquisition, Pro Forma Information | Accordingly, the unaudited pro forma results are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed on the stated dates above, nor are they indicative of the future operating results of Viatris and its subsidiaries. Year Ended Year Ended (Unaudited, in millions, except per share amounts) December 31, 2020 December 31, 2019 Total revenues $ 18,305.6 $ 21,602.0 Net Earnings $ 1,339.9 $ 2,208.5 Earnings per share: Basic $ 1.11 $ 1.83 Diluted $ 1.11 $ 1.83 Weighted average shares outstanding: Basic 1,206.8 1,205.6 Diluted 1,207.7 1,206.4 |
Revenue Recognition and Accou_2
Revenue Recognition and Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s net sales by product category for each of our reportable segments for the years ended December 31, 2020, 2019, and 2018, respectively: (In millions) 2020 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 3,920.7 253.9 617.0 443.3 5,234.9 Complex Gx and Biosimilars 1,202.6 0.7 42.8 49.4 1,295.5 Generics 3,387.6 5.3 535.5 1,361.1 5,289.5 Total Viatris $ 8,510.9 $ 259.9 $ 1,195.3 $ 1,853.8 $ 11,819.9 (In millions) 2019 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 4,199.1 207.6 533.3 422.1 5,362.1 Complex Gx and Biosimilars 1,127.4 0.4 23.8 59.7 1,211.3 Generics 2,913.5 6.6 635.4 1,241.4 4,796.9 Total Viatris $ 8,240.0 $ 214.6 $ 1,192.5 $ 1,723.2 $ 11,370.3 (In millions) 2018 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 4,424.5 164.3 503.4 431.5 5,523.7 Complex Gx and Biosimilars 464.6 — 22.4 35.6 522.6 Generics 3,400.0 3.8 607.0 1,211.6 5,222.4 Total Viatris $ 8,289.1 $ 168.1 $ 1,132.8 $ 1,678.7 $ 11,268.7 The following is a rollforward of the categories of variable consideration during 2020: (In millions) Balance at December 31, 2019 Current Provision Related to Sales Made in the Current Period Balances Acquired Through Acquisition Checks/ Credits Issued to Third Parties Effects of Foreign Exchange Balance at December 31, 2020 Chargebacks $ 518.6 $ 3,656.2 $ 92.2 $ (3,685.9) $ 4.1 $ 585.2 Rebates, promotional programs and other sales allowances 1,084.1 3,765.5 627.2 (3,896.5) (4.0) 1,576.3 Returns 393.0 329.7 128.0 (314.8) 4.0 539.9 Governmental rebate programs 312.8 327.8 39.4 (358.8) (7.9) 313.3 Total $ 2,308.5 $ 8,079.2 $ 886.8 $ (8,256.0) $ (3.8) $ 3,014.7 |
Schedule of Accounts Receivable, Net | Accounts receivable are presented net of allowances relating to these provisions, which were comprised of the following at December 31, 2020 and 2019, respectively: (In millions) December 31, December 31, Accounts receivable $ 1,802.9 $ 1,512.0 Other current liabilities 1,211.8 796.5 Total $ 3,014.7 $ 2,308.5 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Components [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | Cash and restricted cash (In millions) December 31, December 31, December 31, Cash and cash equivalents $ 844.4 $ 475.6 $ 388.1 Restricted cash, included in prepaid expenses and other current assets 5.6 15.5 1.2 Cash, cash equivalents and restricted cash $ 850.0 $ 491.1 $ 389.3 |
Accounts receivable, net | (In millions) December 31, 2020 December 31, 2019 Trade receivables, net $ 3,891.3 $ 2,640.1 Other receivables 952.5 418.7 Accounts receivable, net $ 4,843.8 $ 3,058.8 |
Inventories | (In millions) December 31, 2020 December 31, 2019 Raw materials $ 958.4 $ 886.8 Work in process 1,438.1 417.2 Finished goods 3,075.4 1,366.9 Inventories $ 5,471.9 $ 2,670.9 |
Other current assets | (In millions) December 31, 2020 December 31, 2019 Prepaid expenses $ 267.8 $ 156.7 Available-for-sale fixed income securities 39.1 26.8 Fair value of financial instruments 118.6 43.3 Equity securities 45.8 39.0 Other current assets 1,236.1 286.2 Prepaid expenses and other current assets $ 1,707.4 $ 552.0 |
Property, plant and equipment | Property, plant and equipment, net (In millions) December 31, 2020 December 31, 2019 Machinery and equipment $ 3,235.0 $ 2,523.7 Buildings and improvements 1,954.8 1,197.3 Construction in progress 376.3 277.3 Land and improvements 155.8 124.6 Gross property, plant and equipment 5,721.9 4,122.9 Accumulated depreciation 2,262.0 1,973.3 Property, plant and equipment, net $ 3,459.9 $ 2,149.6 |
Other assets | Other assets (In millions) December 31, 2020 December 31, 2019 Equity method investments, clean energy investments $ 47.9 $ 92.2 Operating lease right-of-use assets 323.6 254.6 Other long-term assets 676.0 58.2 Other assets $ 1,047.5 $ 405.0 |
Trade accounts payable | Accounts payable (In millions) December 31, 2020 December 31, 2019 Trade accounts payable $ 1,345.7 $ 1,061.9 Other payables 558.5 466.2 Accounts payable $ 1,904.2 $ 1,528.1 |
Other current liabilities | Other current liabilities (In millions) December 31, 2020 December 31, 2019 Accrued sales allowances $ 1,211.8 $ 796.5 Payroll and employee benefit liabilities 828.2 467.1 Legal and professional accruals, including litigation accruals 362.9 138.2 Contingent consideration 100.5 120.4 Restructuring 149.2 26.0 Equity method investments, clean energy investments 47.5 47.7 Accrued interest 90.9 59.1 Fair value of financial instruments 103.6 12.9 Operating lease liability 92.9 76.7 Other 1,973.2 575.3 Other current liabilities $ 4,960.7 $ 2,319.9 |
Other noncurrent liabilities | (In millions) December 31, 2020 December 31, 2019 Employee benefit liabilities $ 1,020.4 $ 408.9 Equity method investments, clean energy investments — 57.2 Contingent consideration 123.1 130.3 Tax related items, including contingencies 469.5 109.6 Operating lease liability 229.5 175.7 Accrued Restructuring 134.8 — Other 505.8 79.1 Other long-term obligations $ 2,483.1 $ 960.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | Other information related to leases was as follows: As of December 31, 2020 Remaining lease terms 1 year to 25 years Weighted-average remaining lease term 7 years Weighted-average discount rate 3.1 % |
Lessee, Operating Lease, Liability, Maturity | As of December 31, 2020, maturities of lease liabilities were as follows: (In millions) Year ending December 31, 2021 89.9 2022 68.0 2023 46.6 2024 34.6 2025 27.7 Thereafter 95.1 $ 361.9 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The carrying values and respective balance sheet locations of the Company’s clean energy investments were as follows at December 31, 2020 and 2019, respectively: (In millions) December 31, 2020 December 31, 2019 Other assets $ 47.9 $ 92.2 Total liabilities 47.5 104.9 Included in other current liabilities 47.5 47.7 Included in other long-term obligations — 57.2 Summarized financial information, in the aggregate, for the Company’s significant equity method investments on a 100% basis as of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018 are as follows: (In millions) December 31, 2020 December 31, 2019 Current assets $ 38.9 $ 39.3 Noncurrent assets 1.0 1.7 Total assets 39.9 41.0 Current liabilities 33.0 36.1 Noncurrent liabilities 1.8 1.7 Total liabilities 34.8 37.8 Net assets $ 5.1 $ 3.2 Year Ended December 31, (In millions) 2020 2019 2018 Total revenues $ 374.5 $ 385.0 $ 483.3 Gross loss (4.6) (4.4) (21.1) Operating and non-operating expense 19.0 20.0 21.9 Net loss $ (23.6) $ (24.4) $ (43.0) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows: (In millions) Developed Markets Greater China JANZ Emerging Markets Total Balance at December 31, 2018: Goodwill $ 8,410.9 $ 68.6 $ 584.1 $ 1,069.2 $ 10,132.8 Accumulated impairment losses (385.0) — — — (385.0) 8,025.9 68.6 584.1 1,069.2 9,747.8 Foreign currency translation (152.9) (0.8) 0.7 (4.2) (157.2) 7,873.0 67.8 584.8 1,065.0 9,590.6 Balance at December 31, 2019: Goodwill 8,258.0 67.8 584.8 1,065.0 9,975.6 Accumulated impairment losses (385.0) — — — (385.0) 7,873.0 67.8 584.8 1,065.0 9,590.6 Acquisitions 704.3 652.8 217.4 533.0 2,107.5 Foreign currency translation 607.2 17.7 61.8 (37.8) 648.9 9,184.5 738.3 864.0 1,560.2 12,347.0 Balance at December 31, 2020 Goodwill 9,569.5 738.3 864.0 1,560.2 12,732.0 Accumulated impairment losses (385.0) — — — (385.0) $ 9,184.5 $ 738.3 $ 864.0 $ 1,560.2 $ 12,347.0 As a result of the Combination, the Company revised its reportable segments in the fourth quarter of 2020. The Company has four reportable segments: Developed Markets, Greater China, JANZ and Emerging Markets. Refer to Note 15 Segment Information included in Part II. Item 8 of this Form 10-K for additional information. |
Components of intangible assets | Intangible assets consist of the following components at December 31, 2020 and 2019: (In millions) Weighted Average Life (Years) Cost Accumulated Amortization Net Book Value December 31, 2020 Product rights, licenses and other (1) 15 $ 40,404.1 $ 10,801.6 $ 29,602.5 In-process research and development 80.7 — 80.7 $ 40,484.8 $ 10,801.6 $ 29,683.2 December 31, 2019 Product rights, licenses and other (1) 15 $ 20,109.1 $ 8,579.5 $ 11,529.6 In-process research and development 120.3 — 120.3 $ 20,229.4 $ 8,579.5 $ 11,649.9 ____________ (1) Represents amortizable intangible assets. Other intangibles consist principally of customer lists and contractual rights. |
Product rights and licenses by therapeutic category | Product rights and licenses are primarily comprised of the products marketed at the time of acquisition. These product rights and licenses relate to numerous individual products, the net book value of which, by product category, is as follows: (In millions) Developed Markets Greater China JANZ Emerging Markets December 31, 2020 Brands $ 10,988.1 $ 4,372.3 $ 2,377.0 $ 4,478.7 $ 22,216.1 Complex Gx and Biosimilars 272.5 — 2.3 — 274.8 Generics 6,253.9 12.7 423.9 417.3 7,107.8 Total Product Rights and Licenses $ 17,514.5 $ 4,385.0 $ 2,803.2 $ 4,896.0 $ 29,598.7 (In millions) Developed Markets Greater China JANZ Emerging Markets December 31, 2019 Brands $ 5,212.3 $ 161.1 $ 165.3 $ 25.3 $ 5,564.0 Complex Gx and Biosimilars 313.2 — 2.7 — 315.9 Generics 5,090.3 12.9 170.4 364.6 5,638.2 Total Product Rights and Licenses $ 10,615.8 $ 174.0 $ 338.4 $ 389.9 $ 11,518.1 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Amortization expense and intangible asset impairment charges, which are included as a component of amortization expense, which is classified primarily within cost of sales in the consolidated statements of operations, for the years ended December 31, 2020, 2019 and 2018 was as follows: Year ended December 31, (In millions) 2020 2019 2018 Intangible asset amortization expense $ 1,605.8 $ 1,582.7 $ 1,606.4 IPR&D intangible asset impairment charges 37.4 138.3 117.7 Finite-lived intangible asset impairment charges 45.0 42.3 106.3 Total intangible asset amortization expense (including impairment charges) $ 1,688.2 $ 1,763.3 $ 1,830.4 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Intangible asset amortization expense for the years ended December 31, 2021 through 2025 is estimated to be as follows: (In millions) 2021 $ 2,652 2022 2,578 2023 2,414 2024 2,296 2025 2,198 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative [Line Items] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2018 to December 31, 2020 is as follows: (In millions) Current Portion (1) Long-Term Portion (2) Total Contingent Consideration Balance at December 31, 2018 $ 158.3 $ 197.0 $ 355.3 Payments (99.0) — (99.0) Reclassifications 57.6 (57.6) — Accretion — 14.8 14.8 Fair value loss (gain) (3) 3.5 (23.9) (20.4) Balance at December 31, 2019 $ 120.4 $ 130.3 $ 250.7 Payments (111.8) — (111.8) Reclassifications 58.1 (58.1) — Accretion — 11.6 11.6 Fair value loss (3) 33.8 39.3 73.1 Balance at December 31, 2020 $ 100.5 $ 123.1 $ 223.6 ____________ (1) Included in other current liabilities in the consolidated balance sheets. (2) Included in other long-term obligations in the consolidated balance sheets. (3) Included in litigation settlements and other contingencies, net in the consolidated statements of operations. |
Financial Assets and Liabilities Carried at Fair Value | Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above: December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Recurring fair value measurements Financial Assets Cash equivalents: Money market funds $ 0.9 $ — $ — $ 0.9 Total cash equivalents 0.9 — — 0.9 Equity securities: Exchange traded funds 45.1 — — 45.1 Marketable securities 0.7 — — 0.7 Total equity securities 45.8 — — 45.8 Available-for-sale fixed income investments: Corporate bonds — 17.8 — 17.8 U.S. Treasuries — 14.4 — 14.4 Agency mortgage-backed securities — 1.9 — 1.9 Asset backed securities — 4.6 — 4.6 Other — 0.4 — 0.4 Total available-for-sale fixed income investments — 39.1 — 39.1 Foreign exchange derivative assets — 118.6 — 118.6 Interest rate swap derivative assets — — — — Total assets at recurring fair value measurement $ 46.7 $ 157.7 $ — $ 204.4 Financial Liabilities Foreign exchange derivative liabilities $ — $ 103.6 $ — $ 103.6 Contingent consideration — — 223.6 223.6 Total liabilities at recurring fair value measurement $ — $ 103.6 $ 223.6 $ 327.2 December 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Recurring fair value measurements Financial Assets Cash equivalents: Money market funds $ 0.7 $ — $ — $ 0.7 Total cash equivalents 0.7 — — 0.7 Equity securities: Exchange traded funds 38.3 — — 38.3 Marketable securities 0.7 — — 0.7 Total equity securities 39.0 — — 39.0 Available-for-sale fixed income investments: Corporate bonds — 10.8 — 10.8 U.S. Treasuries — 9.5 — 9.5 Agency mortgage-backed securities — 2.3 — 2.3 Asset backed securities — 3.6 — 3.6 Other — 0.6 — 0.6 Total available-for-sale fixed income investments — 26.8 — 26.8 Foreign exchange derivative assets — 21.0 — 21.0 Interest rate swap derivative assets — 22.3 — 22.3 Total assets at recurring fair value measurement $ 39.7 $ 70.1 $ — $ 109.8 Financial Liabilities Foreign exchange derivative liabilities $ — $ 12.9 $ — $ 12.9 Contingent consideration — — 250.7 250.7 Total liabilities at recurring fair value measurement $ — $ 12.9 $ 250.7 $ 263.6 |
Schedule of Available-for-Sale Securities Reconciliation | The amortized cost and estimated fair value of available-for-sale fixed income securities, included in prepaid expenses and other current assets, were as follows: (In millions) Cost Gross Gross Fair December 31, 2020 Debt securities $ 37.5 $ 1.6 $ — $ 39.1 $ 37.5 $ 1.6 $ — $ 39.1 December 31, 2019 Debt securities $ 26.0 $ 0.8 $ — $ 26.8 $ 26.0 $ 0.8 $ — $ 26.8 |
Maturities Of Available-for-Sale Debt Securities At Fair Value | Maturities of available-for-sale debt securities at fair value as of December 31, 2020, were as follows: (In millions) Mature within one year $ 1.9 Mature in one to five years 20.9 Mature in five years and later 16.3 $ 39.1 |
Fair value hedging relationships | |
Derivative [Line Items] | |
Effect of Derivative Instruments on the Consolidated Statements of Operations | Location of Gain or (Loss) Recognized in Earnings on Derivatives Amount of Gain or (Loss) Recognized in Earnings on Derivatives Year Ended December 31, (In millions) 2020 2019 2018 Interest rate swaps Interest expense $ 22.1 $ 18.7 $ (12.6) Total $ 22.1 $ 18.7 $ (12.6) Location of Gain or (Loss) Recognized in Earnings on Hedged Items Amount of Gain or (Loss) Recognized in Earnings on Hedging Items Year Ended December 31, (In millions) 2020 2019 2018 2023 Senior Notes (3.125% coupon) Interest expense $ (22.1) $ (18.7) $ 12.6 Total $ (22.1) $ (18.7) $ 12.6 |
Net Investment Hedging | |
Derivative [Line Items] | |
Effect of Derivative Instruments on the Consolidated Statements of Operations | Derivatives in Net Investment Hedging Relationships Amount of Gain or (Loss) Recognized in AOCE (Net of Tax) on Derivatives (Effective Portion) Year Ended December 31, (In millions) 2020 2019 2018 Foreign currency borrowings and forward contracts $ (346.4) $ 56.7 $ 108.9 Total $ (346.4) $ 56.7 $ 108.9 |
Cash flow hedging relationships | |
Derivative [Line Items] | |
Effect of Derivative Instruments on the Consolidated Statements of Operations | Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in AOCE (Net of Tax) on Derivatives (Effective Portion) Year Ended December 31, (In millions) 2020 2019 2018 Foreign currency forward contracts $ 20.6 $ 16.6 $ (46.6) Interest rate swaps — 3.0 — Total $ 20.6 $ 19.6 $ (46.6) The Effect of Derivative Instruments in the Consolidated Statements of Operations Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) Reclassified from AOCE into Earnings (Effective Portion) Amount of Gain or (Loss) Reclassified from AOCE into Earnings (Effective Portion) Year Ended December 31, (In millions) 2020 2019 2018 Foreign currency forward contracts Net sales $ 4.8 $ (0.7) $ 6.2 Interest rate swaps Interest expense (4.5) (7.1) (7.7) Total $ 0.3 $ (7.8) $ (1.5) Location of Gain Excluded from the Assessment of Hedge Effectiveness Amount of Gaom Excluded from the Assessment of Hedge Effectiveness Year Ended December 31, (In millions) 2020 2019 2018 Foreign currency forward contracts Other expense, net $ 7.1 $ — $ — Total $ 7.1 $ — $ — |
Designated as hedging instrument | |
Derivative [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Asset Derivatives December 31, 2020 December 31, 2019 (In millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swaps Prepaid expenses and other current assets $ — Prepaid expenses and other current assets $ 22.3 Foreign currency forward contracts Prepaid expenses and other current assets 28.3 Prepaid expenses and other current assets 12.5 Total $ 28.3 $ 34.8 Liability Derivatives December 31, 2020 December 31, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign currency forward contracts Other current liabilities $ 0.8 Other current liabilities $ — $ 0.8 $ — |
Not designated as hedging instrument | |
Derivative [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Asset Derivatives December 31, 2020 December 31, 2019 (In millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign currency forward contracts Prepaid expenses and other current assets $ 90.3 Prepaid expenses and other current assets $ 8.5 Total $ 90.3 $ 8.5 Liability Derivatives December 31, 2020 December 31, 2019 (In millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign currency forward contracts Other current liabilities $ 102.8 Other current liabilities $ 12.9 Total $ 102.8 $ 12.9 |
Effect of Derivative Instruments on the Consolidated Statements of Operations | Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Earnings on Derivatives Amount of Gain or (Loss) Recognized in Earnings on Derivatives Year Ended December 31, (In millions) 2020 2019 2018 Foreign currency option and forward contracts Other expense, net $ (10.1) $ (17.3) $ 34.8 Total $ (10.1) $ (17.3) $ 34.8 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument [Line Items] | |
Schedule of Short-term Debt | Short-Term Borrowings The Company had $1.10 billion of short-term borrowings as of December 31, 2020 and had no short-term borrowings as of December 31, 2019. (In millions) December 31, 2020 December 31, 2019 Commercial paper notes $ 651.3 $ — Receivables Facility 248.4 — Note Securitization Facility 200.0 — Other 1.2 — Short-term borrowings $ 1,100.9 $ — |
Summary of Long-Term Debt | A summary of long-term debt is as follows: (In millions) Interest Rate as of December 31, 2020 December 31, December 31, Current portion of long-term debt: 2020 Floating Rate Euro Notes (a) ** — 560.6 2020 Euro Senior Notes (b) ** 1.250 % — 840.1 2020 Senior Notes (c) ** 3.750 % — 50.0 2021 Senior Notes ** 3.150 % 2,249.7 — Other 8.0 8.3 Deferred financing fees (1.4) (1.4) Current portion of long-term debt $ 2,256.3 $ 1,457.6 Non-current portion of long-term debt: 2021 Senior Notes ** 3.150 % — 2,249.2 2022 Euro Senior Notes **** 0.816 % 928.8 — 2022 Senior Notes *** 1.125 % 1,008.8 — 2023 Senior Notes (d) * 3.125 % 781.6 771.8 2023 Senior Notes * 4.200 % 499.3 499.1 2024 Euro Senior Notes ** 2.250 % 1,219.9 1,119.3 2024 Euro Senior Notes **** 1.023 % 944.6 — 2025 Euro Senior Notes * 2.125 % 609.9 559.6 2025 Senior Notes *** 1.650 % 767.1 — 2026 Senior Notes ** 3.950 % 2,239.7 2,238.1 2027 Euro Senior Notes **** 1.362 % 1,097.4 — 2027 Senior Notes *** 2.300 % 786.1 — 2028 Euro Senior Notes ** 3.125 % 909.7 834.3 2030 Senior Notes *** 2.700 % 1,528.0 — 2032 Euro Senior Notes **** 1.908 % 1,672.6 — 2040 Senior Notes *** 3.850 % 1,663.3 — 2028 Senior Notes * 4.550 % 748.6 748.4 2043 Senior Notes * 5.400 % 497.3 497.2 2046 Senior Notes ** 5.250 % 999.9 999.8 2048 Senior Notes * 5.200 % 747.7 747.7 2050 Senior Notes *** 4.000 % 2,209.3 — USD Term Loan 600.0 — Other 17.4 8.9 Deferred financing fees (47.8) (59.1) Long-term debt $ 22,429.2 $ 11,214.3 ____________ (a) The 2020 Floating Rate Euro Notes were repaid at maturity in the second quarter of 2020. The instrument bore interest at a rate of three-month EURIBOR plus 0.50% per annum, reset quarterly. (b) The 2020 Euro Senior Notes were repaid at maturity in the fourth quarter of 2020. (c) The 2020 Senior Notes were repaid at maturity in the fourth quarter of 2020. (d) During 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The fair value adjustment will be amortized to interest expense over the remaining term of the notes. * Instrument was issued by Mylan Inc. ** Instrument was originally issued by Mylan N.V. *** Instrument was issued by Viatris Inc. **** Instrument was issued by Upjohn Finance B.V. |
Minimum Repayments on Outstanding Borrowings | Mandatory minimum repayments remaining on the notional amount of outstanding long-term debt at December 31, 2020, were as follows for each of the periods ending December 31: (In millions) Total 2021 $ 2,250 2022 2,516 2023 1,250 2024 2,138 2025 1,361 Thereafter 14,432 Total $ 23,947 |
Upjohn Inc. | |
Debt Instrument [Line Items] | |
Summary of Long-Term Debt | The following table provides information about the Upjohn Senior Notes issued in June 2020: (In millions) Notional Value 2022 Senior Notes $ 1,000.0 2025 Senior Notes 750.0 2027 Senior Notes 750.0 2030 Senior Notes 1,450.0 2040 Senior Notes 1,500.0 2050 Senior Notes 2,000.0 2022 Euro Senior Note 916.2 2024 Euro Senior Note 916.2 2027 Euro Senior Note 1,038.4 2032 Euro Senior Note 1,527.0 Total $ 11,847.8 |
Comprehensive Earnings (Tables)
Comprehensive Earnings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss, as reflected in the consolidated balance sheets, is comprised of the following: (In millions) December 31, 2020 December 31, 2019 Accumulated other comprehensive loss: Net unrealized gain on marketable securities, net of tax $ 1.2 $ 0.6 Net unrecognized (loss) gain and prior service cost related to defined benefit plans, net of tax (26.1) (17.4) Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax (18.0) (31.6) Net unrecognized loss on derivatives in net investment hedging relationships, net of tax (353.6) (74.3) Foreign currency translation adjustment (461.5) (1,674.5) $ (858.0) $ (1,797.2) |
Components of Other Comprehensive Loss | Components of accumulated other comprehensive (loss) earnings, before tax, consist of the following: Year Ended December 31, 2020 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2019, net of tax $ (31.6) $ (74.3) $ 0.6 $ (17.4) $ (1,674.5) $ (1,797.2) Other comprehensive (loss) earnings before reclassifications, before tax 18.5 (305.2) 0.6 (12.1) 1,213.0 914.8 Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (4.8) (4.8) (4.8) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 4.5 4.5 4.5 Amortization of prior service costs included in SG&A — — Amortization of actuarial loss included in SG&A (1.9) (1.9) Net other comprehensive (loss) earnings, before tax 18.2 (305.2) 0.6 (14.0) 1,213.0 912.6 Income tax provision (benefit) 4.6 (25.9) — (5.3) — (26.6) Balance at December 31, 2020, net of tax $ (18.0) $ (353.6) $ 1.2 $ (26.1) $ (461.5) $ (858.0) Year Ended December 31, 2019 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2018, net of tax $ (53.1) $ (130.9) $ — $ 1.7 $ (1,259.0) $ (1,441.3) Other comprehensive earnings (loss) before reclassifications, before tax 29.3 59.6 0.5 (21.0) (415.5) (347.1) Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax: Loss on foreign exchange forward contracts classified as cash flow hedges, included in net sales 0.7 0.7 0.7 Loss on interest rate swaps classified as cash flow hedges, included in interest expense 7.1 7.1 7.1 Amortization of prior service costs included in SG&A (0.9) (0.9) Amortization of actuarial loss included in SG&A (2.9) (2.9) Net other comprehensive earnings (loss), before tax 37.1 59.6 0.5 (24.8) (415.5) (343.1) Income tax provision (benefit) 12.2 3.0 (0.1) (5.9) — 9.2 Cumulative effect of the adoption of new accounting standards $ (3.4) $ — $ — $ (0.2) $ — $ (3.6) Balance at December 31, 2019, net of tax $ (31.6) $ (74.3) $ 0.6 $ (17.4) $ (1,674.5) $ (1,797.2) Year Ended December 31, 2018 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Marketable Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2017, net of tax $ (3.7) $ (239.8) $ 10.1 $ 6.0 $ (133.8) $ (361.2) Other comprehensive (loss) earnings before reclassifications, before tax (80.7) 111.6 (0.1) (3.0) (1,125.2) (1,097.4) Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (6.2) (6.2) (6.2) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 7.7 7.7 7.7 Amortization of prior service costs included in SG&A (0.4) (0.4) Amortization of actuarial gain included in SG&A (0.4) (0.4) Net other comprehensive (loss) earnings, before tax (79.2) 111.6 (0.1) (3.8) (1,125.2) (1,096.7) Income tax (benefit) provision (27.3) 2.7 — 0.5 — (24.1) Cumulative effect of the adoption of new accounting standards 2.5 — (10.0) — — (7.5) Balance at December 31, 2018, net of tax $ (53.1) $ (130.9) $ — $ 1.7 $ (1,259.0) $ (1,441.3) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The income tax provision (benefit) consisted of the following components: Year Ended December 31, (In millions) 2020 2019 2018 U.S. Federal: Current $ (6.4) $ 118.1 $ (68.2) Deferred (277.0) (165.5) (112.9) (283.4) (47.4) (181.1) U.S. State: Current (0.1) 21.1 6.8 Deferred 7.7 (13.6) (12.3) 7.6 7.5 (5.5) Non-U.S.: Current 168.7 191.0 271.6 Deferred 55.8 (13.5) (139.1) 224.5 177.5 132.5 Income tax (benefit) provision $ (51.3) $ 137.6 $ (54.1) Earnings before income taxes: United States (945.5) (1,031.4) (1,000.5) Foreign - Other 224.3 1,185.8 1,298.9 Total earnings before income taxes $ (721.2) $ 154.4 $ 298.4 |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carry-forwards that result in deferred tax assets and liabilities were as follows: (In millions) December 31, 2020 December 31, 2019 Deferred tax assets: Employee benefits $ 273.0 $ 182.5 Litigation reserves 43.5 14.7 Accounts receivable allowances 393.7 201.9 Inventory 1,187.9 80.1 Tax credit and loss carry-forwards 1,080.4 726.2 Operating lease assets (1) 66.5 62.8 Interest expense 67.9 162.7 Intangible assets 156.3 184.7 Other 396.0 121.6 3,665.2 1,737.2 Less: Valuation allowance (443.6) (603.5) Total deferred tax assets 3,221.6 1,133.7 Deferred tax liabilities: Plant and equipment 50.2 87.4 Operating lease liabilities (1) 66.5 62.8 Intangible assets and goodwill 4,058.6 1,890.8 Other 22.1 17.1 Total deferred tax liabilities 4,197.4 2,058.1 Deferred tax liabilities, net $ (975.8) $ (924.4) |
Statutory Tax Rate to Effective Tax Rate Reconciliation | Prior to the Combination, the applicable income tax rate to Mylan N.V. was the U.K. rate of 19%, and following the Combination, the statutory income tax rate applicable to Viatris Inc., is the U.S. rate of 21% for the year ended December 31, 2020. A reconciliation of the statutory tax rate to the effective tax rate is as follows: Year Ended December 31, 2020 2019 2018 Statutory tax rate 21.0 % 19.0 % 19.0 % United States Operations Clean energy and research credits 12.8 % (43.4) % (33.1) % U.S. rate differential — % (3.1) % (5.4) % Impact of changes in legislation (9.2) % — % (4.9) % State income taxes and credits (1.6) % (4.1) % (9.2) % Valuation allowance 8.6 % (118.5) % 60.2 % Tax settlements and resolution of certain tax positions 0.1 % 199.6 % (22.5) % Global intangible low-taxed income (3.6) % (8.6) % 8.6 % Waived deductions under IRC § 59A (3.3) % 64.5 % — % Impact of the Combination 5.8 % 7.7 % — % Other U.S. items 1.5 % 6.9 % 7.5 % Other Foreign Operations Luxembourg (5.0) % (14.8) % (28.3) % Gibraltar 8.0 % (38.8) % (19.2) % Ireland 8.2 % (13.7) % (3.5) % France (2.8) % 15.2 % 6.2 % Puerto Rico (2.5) % — % — % Switzerland 2.0 % — % — % Other 0.6 % 12.8 % 2.3 % Deferred tax impact of tax law changes (0.1) % 36.7 % (5.2) % Valuation allowance 16.1 % (9.9) % (4.3) % Impact of the Combination (42.2) % — % — % Withholding taxes (1.6) % 7.1 % 4.1 % Tax settlements and resolution of certain tax positions (3.9) % (27.6) % 0.7 % Other foreign items (1.8) % 2.1 % 8.9 % Effective tax rate 7.1 % 89.1 % (18.1) % |
Schedule of Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, (In millions) 2020 2019 2018 Unrecognized tax benefit — beginning of year $ 92.1 $ 96.3 $ 185.7 Additions for current year tax positions 13.4 — — Additions for prior year tax positions 35.7 154.9 20.0 Reductions for prior year tax positions (5.2) (11.7) (5.8) Settlements (8.9) (112.5) (32.9) Reductions due to expirations of statute of limitations — (34.9) (70.7) Addition due to acquisition 264.0 — — Unrecognized tax benefit — end of year $ 391.1 $ 92.1 $ 96.3 |
Share-Based Incentive Plan (Tab
Share-Based Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards Activity | The following table summarizes stock option and SAR (together, “stock awards”) activity under the Plan and 2003 LTIP: Number of Shares Weighted Outstanding at December 31, 2017 7,198,684 $ 35.17 Granted 905,265 40.38 Exercised (820,603) 21.75 Forfeited (468,068) 47.86 Outstanding at December 31, 2018 6,815,278 $ 36.61 Granted 829,322 26.18 Exercised (580,950) 14.40 Forfeited (715,941) 39.40 Outstanding at December 31, 2019 6,347,709 $ 36.97 Granted 814,351 17.37 Exercised (27,615) 21.13 Forfeited (422,714) 25.74 Outstanding at December 31, 2020 6,711,731 $ 35.36 Vested and expected to vest at December 31, 2020 6,532,172 $ 35.65 Exercisable at December 31, 2020 5,284,858 $ 38.51 |
Nonvested Restricted Stock and Restricted Stock Unit, Including Performance Units, Activity | A summary of the status of the Company’s nonvested restricted stock and restricted stock unit awards, including PSUs (collectively, “restricted stock awards”), as of December 31, 2019 and the changes during the year ended December 31, 2020 are presented below: Number of Restricted Weighted Average Nonvested at December 31, 2019 4,105,689 $ 34.42 Granted 10,134,565 15.23 Released (1,819,982) 33.56 Forfeited (346,482) 38.46 Nonvested at December 31, 2020 12,073,790 $ 18.34 |
Long Term Incentive Plan 2003 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-Based Compensation Plans, Valuation Assumptions | The assumptions used for options granted under the Plan and 2003 LTIP are as follows: Year Ended December 31, 2020 2019 2018 Volatility 46.7% 38.1% 35.8% Risk-free interest rate 1.0% 2.5% 2.8% Expected term (years) 6.5 6.5 6.5 Forfeiture rate 5.5% 5.5% 5.5% Weighted average grant date fair value per option $8.07 $11.03 $16.51 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Accumulated Other Comprehensive Income (Loss) Pretax Amounts Not Yet Reclassified in Net Periodic Benefit Cost | Included in accumulated other comprehensive loss as of December 31, 2020 and 2019 are: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2020 2019 2020 2019 Unrecognized actuarial loss $ 33.9 $ 20.6 $ 5.7 $ 4.8 Unrecognized prior service (credit) cost (1.4) (1.3) 0.6 0.7 Total $ 32.5 $ 19.3 $ 6.3 $ 5.5 |
Change in Accumulated Income (Loss) Relating to Defined Benefit Pension and Other Postretirement Benefits | The increase in accumulated other comprehensive loss in 2020 relating to pension benefits and other postretirement benefits consists of: (In millions) Pension Benefits Other Postretirement Benefits Unrecognized actuarial loss $ 11.1 $ 1.2 Amortization of actuarial gain/(loss) (1.5) (0.4) Unrecognized prior service costs — — Amortization of prior service costs — — Impact of foreign currency translation 2.3 — Net change $ 11.9 $ 0.8 |
Net Periodic Benefit Cost | Components of net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018 were as follows: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2020 2019 2018 2020 2019 2018 Service cost $ 23.5 $ 20.7 $ 19.2 $ 1.2 $ 0.6 $ 0.6 Interest cost 13.5 13.6 13.0 1.4 1.5 1.5 Expected return on plan assets (19.9) (12.1) (14.4) — — — Plan curtailment, settlement and termination 1.1 (0.3) (0.1) — 3.2 — Amortization of prior service costs — 0.9 0.3 — — — Recognized net actuarial (gains) losses 0.4 (0.8) (0.1) 0.3 0.2 0.2 Net periodic benefit cost $ 18.6 $ 22.0 $ 17.9 $ 2.9 $ 5.5 $ 2.3 |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The table below presents components of the change in projected benefit obligation, change in plan assets and funded status at December 31, 2020 and 2019. Pension Benefits Other Postretirement Benefits (In millions) 2020 2019 2020 2019 Change in Projected Benefit Obligation Projected benefit obligation, beginning of year $ 674.7 $ 635.4 $ 33.8 $ 34.0 Service cost 23.5 20.7 1.1 0.6 Interest cost 13.5 13.6 1.4 1.5 Participant contributions 1.8 1.0 0.1 0.2 Acquisitions 1,389.4 0.8 153.1 — Plan settlements and terminations (23.1) (23.8) (0.2) (7.1) Actuarial losses (gains) 37.2 57.3 1.1 7.1 Benefits paid (24.6) (23.9) (1.6) (2.5) Impact of foreign currency translation 53.4 (6.4) — — Projected benefit obligation, end of year $ 2,145.8 $ 674.7 $ 188.8 $ 33.8 Change in Plan Assets Fair value of plan assets, beginning of year $ 315.7 $ 283.5 $ — $ — Actual return on plan assets 46.0 39.2 — — Company contributions 58.2 26.4 1.7 9.4 Participant contributions 1.8 1.0 0.1 0.2 Acquisitions 959.3 — — — Plan settlements (23.1) (8.9) (0.2) (7.1) Benefits paid (24.6) (23.9) (1.6) (2.5) Other — (1.9) — — Impact of foreign currency translation 21.3 0.3 — — Fair value of plan assets, end of year 1,354.6 315.7 — — Funded status of plans $ (791.2) $ (359.0) $ (188.8) $ (33.8) |
Net Accrued Benefit Costs Classification on Balance Sheet | Net accrued benefit costs for pension plans and other postretirement benefits are reported in the following components of the Company’s consolidated balance sheets at December 31, 2020 and 2019: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2020 2019 2020 2019 Noncurrent assets $ 70.7 $ 24.8 $ — $ — Current liabilities (15.1) (11.9) (16.3) (2.0) Noncurrent liabilities (846.8) (371.9) (172.5) (31.8) Net accrued benefit costs $ (791.2) $ (359.0) $ (188.8) $ (33.8) |
Plans with Accumulated Benefit Obligation in Excess of Plan Assets | The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of the fair value of plan assets at December 31, 2020 and 2019 were as follows: December 31, (In millions) 2020 2019 Plans with accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 1,747.2 $ 476.3 Accumulated benefit obligation 1,678.2 454.4 Fair value of plan assets 893.9 94.4 |
Schedule of Allocation of Plan Assets | The table below presents total plan assets by investment category as of December 31, 2020 and 2019 and the classification of each investment category within the fair value hierarchy with respect to the inputs used to measure fair value: December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 51.2 $ 0.6 $ — $ 51.8 Equity securities 145.3 468.1 — 613.4 Fixed income securities 292.6 299.4 — 592.0 Assets held by insurance companies and other 4.0 20.0 73.4 97.4 Total $ 493.1 $ 788.1 $ 73.4 $ 1,354.6 December 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 3.4 $ 0.5 $ — $ 3.9 Equity securities 33.8 55.5 — 89.3 Fixed income securities 138.0 41.9 — 179.9 Assets held by insurance companies and other 1.3 13.8 27.5 42.6 Total $ 176.5 $ 111.7 $ 27.5 $ 315.7 |
Schedule of Assumptions Used | The following weighted average assumptions were used to determine the benefit obligations for the Company’s defined benefit pension and other postretirement plans as of December 31, 2020 and 2019: Pension Benefits Other Postretirement Benefits 2020 2019 2020 2019 Discount rate 1.9 % 1.6 % 1.9 % 3.3 % Expected return on plan assets 4.3 % 4.3 % — % — % Rate of compensation increase 2.9 % 2.9 % — % — % The following weighted average assumptions were used to determine the net periodic benefit cost for the Company’s defined benefit pension and other postretirement benefit plans for the three years in the period ended December 31, 2020: Pension Benefits Other Postretirement Benefits 2020 2019 2018 2020 2019 2018 Discount rate 1.6 % 2.3 % 2.0 % 3.3 % 4.3 % 3.7 % Expected return on plan assets 4.3 % 4.3 % 4.9 % — % — % — % Rate of compensation increase 2.7 % 2.9 % 2.9 % — % — % — % |
Schedule of Expected Benefit Payments | Estimated benefit payments over the next ten years for the Company’s pension plans and retiree health plan are as follows: (In millions) Pension Benefits Other Postretirement Benefits 2020 $ 104.5 $ 16.4 2021 102.3 16.6 2022 104.9 16.5 2023 108.6 16.6 2024 106.9 16.3 Thereafter 526.2 71.4 Total $ 1,053.4 $ 153.8 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Information to Total Consolidated Information | Presented in the table below is segment information for the periods identified and a reconciliation of segment information to total consolidated information. Net Sales Segment profitability Years Ended December 31, Years Ended December 31, (in millions) 2020 2019 2018 2020 2019 2018 Reportable Segments: Developed Markets $ 8,510.9 $ 8,240.0 $ 8,289.1 $ 4,243.9 $ 4,137.3 $ 4,270.1 Greater China 259.9 214.6 168.1 52.7 89.9 71.9 JANZ 1,195.3 1,192.5 1,132.8 364.6 323.2 363.1 Emerging Markets 1,853.8 1,723.2 1,678.7 610.4 561.9 647.4 Total reportable segments $ 11,819.9 $ 11,370.3 $ 11,268.7 $ 5,271.6 $ 5,112.3 $ 5,352.5 Reconciling items: Intangible asset amortization expense (1,605.8) (1,582.7) (1,606.4) Intangible asset impairment charges (82.4) (180.6) (224.0) Globally managed research and development costs (555.1) (639.9) (704.5) Litigation settlements & other contingencies (107.8) 21.4 49.5 Transaction related and other special items (1,739.7) (682.2) (515.5) Corporate and other unallocated (1,391.6) (1,332.8) (1,446.0) (Loss) earnings from operations $ (210.8) $ 715.5 $ 905.6 |
Schedule of Revenue by Major Customers by Reporting Segments | The following table represents the percentage of consolidated net sales to Viatris’ major customers during the years ended December 31, 2020, 2019, and 2018: Percentage of Consolidated Net Sales 2020 2019 2018 McKesson Corporation 13 % 15 % 12 % AmerisourceBergen Corporation 10 % 9 % 8 % Cardinal Health, Inc. 8 % 8 % 8 % |
Net Third Party Sales Classified Based on Geographic Location of Subsidiaries | Net sales by country are presented on the basis of geographic location of our subsidiaries: Year Ended December 31, (In millions) 2020 2019 2018 United States $ 3,746.1 $ 3,965.9 $ 3,865.2 India 1,155.4 1,171.1 1,164.8 France 1,070.8 1,047.6 1,092.7 ____________ |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | (In millions) Employee Related Costs Other Exit Costs Total Balance at December 31, 2018: $ 60.8 $ 11.8 $ 72.6 Charges 16.6 88.0 104.6 Cash payment (48.9) (10.5) (59.4) Reclassifications — (8.1) (8.1) Utilization — (78.3) (78.3) Foreign currency translation $ (2.1) $ (0.1) $ (2.2) Balance at December 31, 2019: $ 26.4 $ 2.8 $ 29.2 Charges (1) 9.9 40.6 50.5 Cash payment (18.1) (7.6) (25.7) Utilization — (32.9) (32.9) Foreign currency translation 1.8 (0.1) 1.7 Balance at December 31, 2020 $ 20.0 $ 2.8 $ 22.8 (1) For the year ended December 31, 2020, total restructuring charges, for both programs, in Developed Markets, Greater China, JANZ, and Emerging Markets were approximately $292.1 million, $18.4 million, $2.9 million and $8.4 million, respectively. For the year ended December 31, 2019, total restructuring charges in Developed Markets and JANZ were approximately $100.4 million and $4.2 million respectively. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Line Items] | |||
Finite-lived intangible asset, estimated useful life, in years | 15 years | 15 years | |
Share repurchased during period, shares | 9.8 | ||
Share repurchased during period, value | $ 0 | $ 432 | |
Anti-dilutive securities excluded from computation of earnings per share | 10.3 | 9.1 | 8.9 |
Minimum | |||
Accounting Policies [Line Items] | |||
Finite-lived intangible asset, estimated useful life, in years | 3 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Finite-lived intangible asset, estimated useful life, in years | 20 years | ||
Repurchase authorization, value | up to $1 billion | ||
Machinery and equipment | Minimum | |||
Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated service life (years) | 3 years | ||
Machinery and equipment | Maximum | |||
Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated service life (years) | 18 years | ||
Buildings and improvements | Minimum | |||
Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated service life (years) | 15 years | ||
Buildings and improvements | Maximum | |||
Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated service life (years) | 39 years | ||
Capitalized software | Minimum | |||
Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated service life (years) | 3 years | ||
Capitalized software | Maximum | |||
Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated service life (years) | 7 years | ||
Receivables Facility [Member] | |||
Accounting Policies [Line Items] | |||
Accounts receivable securitization facility maximum borrowing capacity | $ 400 | ||
Note Securitization Facility [Member] | |||
Accounting Policies [Line Items] | |||
Accounts receivable securitization facility maximum borrowing capacity | $ 200 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Basic And Diluted Earnings Per Ordinary Share Attributable To Mylan N.V.) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net earnings | $ (669.9) | $ 16.8 | $ 352.5 |
Weighted average common shares outstanding | 601.2 | 515.7 | 514.5 |
Basic (loss) earnings per share attributable to Viatris Inc. shareholders | $ (1.11) | $ 0.03 | $ 0.69 |
Weighted average number diluted shares outstanding adjustment, stock-based awards and warrants | 0 | 0.8 | 2 |
Total dilutive shares outstanding | 601.2 | 516.5 | 516.5 |
Diluted (loss) earnings per share attributable to Viatris Inc. shareholders | $ (1.11) | $ 0.03 | $ 0.68 |
Retained Earnings | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net earnings | $ (669.9) | $ 16.8 | $ 352.5 |
Acquisitions and Other Transa_3
Acquisitions and Other Transactions (Other Transactions) (Narrative) (Details) € in Millions, shares in Millions, $ in Millions | Nov. 13, 2020USD ($)shares | Jul. 29, 2019USD ($) | Mar. 31, 2019USD ($) | Feb. 27, 2019USD ($) | Sep. 20, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020EUR (€) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)agreement | Jun. 25, 2021EUR (€) | May 28, 2019USD ($) | Aug. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||
Research and development | $ 555.1 | $ 639.9 | $ 704.5 | |||||||||||||||
Payment for Contingent Consideration Liability, Financing Activities | 20 | |||||||||||||||||
Contingent consideration liability | $ 223.6 | $ 223.6 | $ 250.7 | 223.6 | 250.7 | 355.3 | ||||||||||||
Goodwill | 12,347 | 12,347 | 9,590.6 | 12,347 | 9,590.6 | $ 9,747.8 | ||||||||||||
Machinery and equipment | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired intangible assets, weighted average useful life, in years | 5 years | |||||||||||||||||
Finite-Lived Intangible Assets | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired intangible assets, weighted average useful life, in years | 15 years | |||||||||||||||||
Maximum | Building | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired intangible assets, weighted average useful life, in years | 20 years | |||||||||||||||||
Minimum | Building | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired intangible assets, weighted average useful life, in years | 10 years | |||||||||||||||||
Upjohn Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid to acquire asset | $ 12,000 | |||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 43.00% | |||||||||||||||||
Property, plant and equipment | 1,394.1 | |||||||||||||||||
Business Combination, Acquisition Related Costs | 602.9 | |||||||||||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 10,730 | |||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 689.9 | |||||||||||||||||
Net Earnings | 360.9 | 1,339.9 | 2,208.5 | |||||||||||||||
Total revenues | 866.5 | 18,305.6 | 21,602 | |||||||||||||||
Goodwill | $ 2,107.5 | |||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | 1,430 | |||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | 390 | |||||||||||||||||
Identified intangible assets | 18,040 | |||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Long-Term Debt | $ 759.4 | |||||||||||||||||
Series of Individually Immaterial Business Acquisitions | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquisition purchase price | 10 | |||||||||||||||||
Other companies | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired intangible assets, weighted average useful life, in years | 5 years | |||||||||||||||||
Other companies | Product rights and licenses | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquisition purchase price | $ 220 | 10 | ||||||||||||||||
Upfront payments | $ 20 | $ 160 | ||||||||||||||||
Aspen Global Incorporated | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquisition purchase price | € | € 641.9 | |||||||||||||||||
Cash paid to acquire asset | € | € 263.2 | |||||||||||||||||
Aspen Global Incorporated | Contractual Rights | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired intangible assets, weighted average useful life, in years | 8 years | |||||||||||||||||
TOBI | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquisition purchase price | 463 | |||||||||||||||||
Cash paid to acquire asset | $ 240 | |||||||||||||||||
Acquired intangible assets, weighted average useful life, in years | 10 years | |||||||||||||||||
Finite-Lived Intangible Assets, Period Increase (Decrease) | $ 100 | |||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 91.8 | |||||||||||||||||
Business Acquisition, expected future payments, next twelve months | $ 130 | |||||||||||||||||
Business Acquisition, expected future payment, year two | $ 93 | |||||||||||||||||
Property, plant and equipment | $ 30 | |||||||||||||||||
Aspen Pharmacare Holdings Limited | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquisition purchase price | $ 64.3 | 66.6 | ||||||||||||||||
Revance [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Upfront payments | $ 25 | |||||||||||||||||
Research and development | 30 | |||||||||||||||||
Revance [Member] | Maximum | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Development Milestone Payments | 100 | 100 | 100 | |||||||||||||||
Sales Milestone Payments | 225 | $ 225 | 225 | |||||||||||||||
Other companies | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Upfront payments | $ 56.1 | $ 53.7 | ||||||||||||||||
Business Combinations, Number of Agreements | agreement | 4 | |||||||||||||||||
FKB | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Upfront payments | $ 33 | $ 25 | ||||||||||||||||
Research and development | $ 23.3 | |||||||||||||||||
Product [Member] | Upjohn Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number Of Products | 20 | |||||||||||||||||
Pfizer, Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Inventory, Firm Purchase Commitment, Loss | $ 86.5 | |||||||||||||||||
Pfizer, Inc. | Upjohn Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 57.00% | |||||||||||||||||
Upjohn Inc. | Pfizer, Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Payments for Business Separation | $ 12,000 | |||||||||||||||||
Scenario, Plan | Aspen Global Incorporated | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Contingent consideration liability | € | € 378.7 |
Acquisitions and Other Transa_4
Acquisitions and Other Transactions (Purchase Price Allocations) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Nov. 16, 2020 | Nov. 13, 2020 | Dec. 31, 2019 | May 28, 2019 | Dec. 31, 2018 | Dec. 01, 2018 | Aug. 31, 2018 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 12,347 | $ 9,590.6 | $ 9,747.8 | |||||
Upjohn Inc. | Pfizer, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Long-term debt, including current portion | $ 13,080 | |||||||
Upjohn Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets (excluding inventories and net of cash acquired) | $ 2,841.9 | |||||||
Inventories | 2,588.9 | |||||||
Property, plant and equipment | 1,394.1 | |||||||
Identified intangible assets | 18,040 | |||||||
Goodwill | 2,107.5 | |||||||
Deferred income tax benefit | 1,481.9 | |||||||
Other assets | 792.1 | |||||||
Total assets acquired | 29,246.4 | |||||||
Current liabilities | (2,760.2) | |||||||
Long-term debt, including current portion | 13,076.2 | |||||||
Deferred tax liabilities | 1,656.9 | |||||||
Long-term debt and other noncurrent obligations | (1,441.5) | |||||||
Net assets acquired | $ 10,311.6 | $ 10,730 | ||||||
TOBI | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets (excluding inventories and net of cash acquired) | 29.2 | |||||||
Property, plant and equipment | 30 | |||||||
Intangible and other noncurrent assets | 496.7 | |||||||
Total assets acquired | 555.9 | |||||||
Current liabilities | (54) | |||||||
Long-term debt and other noncurrent obligations | (20) | |||||||
Net assets acquired | $ 481.9 | $ 574.8 | ||||||
Aspen Pharmacare Holdings Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Net assets acquired | $ 130.9 |
Acquisitions and Other Transa_5
Acquisitions and Other Transactions (Unaudited Pro Forma Financial Results) (Details) - Upjohn Inc. - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 2 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||
Total revenues | $ 866.5 | $ 18,305.6 | $ 21,602 |
Net Earnings | $ 360.9 | $ 1,339.9 | $ 2,208.5 |
Basic (in usd per share) | $ 1.11 | $ 1.83 | |
Diluted (in usd per share) | $ 1.11 | $ 1.83 | |
Basic (in shares) | 1,206.8 | 1,205.6 | |
Diluted (in shares) | 1,207.7 | 1,206.4 |
Revenue Recognition and Accou_3
Revenue Recognition and Accounts Receivable Revenue Disaggregation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 11,819.9 | $ 11,370.3 | $ 11,268.7 |
Brands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5,234.9 | 5,362.1 | 5,523.7 |
Complex Gx and Biosimilars | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,295.5 | 1,211.3 | 522.6 |
Generics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5,289.5 | 4,796.9 | 5,222.4 |
Developed Markets | Brands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,920.7 | 4,199.1 | 4,424.5 |
Developed Markets | Complex Gx and Biosimilars | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,202.6 | 1,127.4 | 464.6 |
Developed Markets | Generics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,387.6 | 2,913.5 | 3,400 |
Greater China | Brands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 253.9 | 207.6 | 164.3 |
Greater China | Complex Gx and Biosimilars | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0.7 | 0.4 | 0 |
Greater China | Generics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5.3 | 6.6 | 3.8 |
JANZ | Brands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 617 | 533.3 | 503.4 |
JANZ | Complex Gx and Biosimilars | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 42.8 | 23.8 | 22.4 |
JANZ | Generics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 535.5 | 635.4 | 607 |
Emerging Markets | Brands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 443.3 | 422.1 | 431.5 |
Emerging Markets | Complex Gx and Biosimilars | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 49.4 | 59.7 | 35.6 |
Emerging Markets | Generics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,361.1 | 1,241.4 | 1,211.6 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 11,819.9 | 11,370.3 | |
Operating Segments | Developed Markets | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 8,510.9 | 8,240 | 8,289.1 |
Operating Segments | Greater China | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 259.9 | 214.6 | 168.1 |
Operating Segments | JANZ | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,195.3 | 1,192.5 | 1,132.8 |
Operating Segments | Emerging Markets | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,853.8 | $ 1,723.2 | $ 1,678.7 |
Revenue Recognition and Accou_4
Revenue Recognition and Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue Recognition And Accounts Receivable [Line Items] | ||
Securitized accounts receivable | $ 389.4 | $ 407 |
Receivables Facility [Member] | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Accounts receivable securitization facility maximum borrowing capacity | $ 400 |
Revenue Recognition and Accou_5
Revenue Recognition and Accounts Receivable Variable Consideration (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Gross sales | $ 19,899.1 | $ 19,012.2 | $ 19,588.1 |
Chargebacks | (3,656.2) | (3,309.6) | (3,352.2) |
Rebates, promotional programs and other sales allowances | (3,765.5) | (3,629.3) | (4,235.6) |
Returns | (329.7) | (237.9) | (261.6) |
Medicaid and other governmental rebates | (327.8) | (465.1) | (470) |
Sales Revenue, Gross to net adjustments | 8,079.2 | 7,641.9 | 8,319.4 |
Net sales | 11,819.9 | 11,370.3 | $ 11,268.7 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 11,819.9 | $ 11,370.3 |
Revenue Recognition and Accou_6
Revenue Recognition and Accounts Receivable (Accounts Receivable, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 3,891.3 | $ 2,640.1 |
Other receivables | 952.5 | 418.7 |
Accounts receivable, net | 4,843.8 | 3,058.8 |
Variable Consideration [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 1,802.9 | 1,512 |
Other receivables | 1,211.8 | 796.5 |
Accounts receivable, net | $ 3,014.7 | $ 2,308.5 |
Revenue Recognition and Accou_7
Revenue Recognition and Accounts Receivable Variable Consideration Rollforward (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | $ 3,058.8 |
End of period | 4,843.8 |
Variable Consideration [Member] | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | 2,308.5 |
Current Provision Related to Sales Made in the Current Period | 8,079.2 |
Balances Acquired Through Acquisition | 886.8 |
Checks/ Credits Issued to Third Parties | (8,256) |
Effects of Foreign Exchange | (3.8) |
End of period | 3,014.7 |
Variable Consideration [Member] | Chargebacks [Member] | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | 518.6 |
Current Provision Related to Sales Made in the Current Period | 3,656.2 |
Balances Acquired Through Acquisition | 92.2 |
Checks/ Credits Issued to Third Parties | (3,685.9) |
Effects of Foreign Exchange | 4.1 |
End of period | 585.2 |
Variable Consideration [Member] | Rebates, Promotional Programs and Other Sales Allowances [Member] | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | 1,084.1 |
Current Provision Related to Sales Made in the Current Period | 3,765.5 |
Balances Acquired Through Acquisition | 627.2 |
Checks/ Credits Issued to Third Parties | (3,896.5) |
Effects of Foreign Exchange | (4) |
End of period | 1,576.3 |
Variable Consideration [Member] | Variable Consideration Returns [Member] | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | 393 |
Current Provision Related to Sales Made in the Current Period | 329.7 |
Balances Acquired Through Acquisition | 128 |
Checks/ Credits Issued to Third Parties | (314.8) |
Effects of Foreign Exchange | 4 |
End of period | 539.9 |
Variable Consideration [Member] | Governmental Rebate Programs [Member] | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | 312.8 |
Current Provision Related to Sales Made in the Current Period | 327.8 |
Balances Acquired Through Acquisition | 39.4 |
Checks/ Credits Issued to Third Parties | (358.8) |
Effects of Foreign Exchange | (7.9) |
End of period | $ 313.3 |
Balance Sheet Components (Narra
Balance Sheet Components (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($)customer | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Concentration risk, number of major customers | customer | 3 | 3 | ||
Capitalized Computer Software, Net | $ 70.9 | $ 85.8 | ||
Net realizable value of inventory recognized as expense | 206.1 | 399.2 | $ 343.1 | |
Depreciation | 289.7 | 256.1 | 279.5 | |
Other Liabilities, Current | $ 4,960.7 | $ 2,319.9 | ||
Accounts Receivable | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Concentration risk, percentage | 12.00% | 21.00% | ||
Allowance for doubtful accounts | ||||
Schedule of Equity Method Investments [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 159.9 | $ 72.8 | $ 98.2 | $ 75.3 |
Balance Sheet Components Balanc
Balance Sheet Components Balance Sheet Components (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 844.4 | $ 475.6 | $ 388.1 | |
Restricted cash, included in prepaid expenses and other current assets | 5.6 | 15.5 | 1.2 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 850 | $ 491.1 | $ 389.3 | $ 369.9 |
Balance Sheet Components (Accou
Balance Sheet Components (Accounts receivable, net) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($)customer | |
Receivables, Net, Current [Abstract] | ||
Trade receivables, net | $ 3,891.3 | $ 2,640.1 |
Other receivables | 952.5 | 418.7 |
Accounts receivable, net | $ 4,843.8 | $ 3,058.8 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, number of major customers | customer | 3 | 3 |
Proceeds from Sale and Collection of Receivables | $ 153 | $ 90.1 |
Balance Sheet Components (Inven
Balance Sheet Components (Inventories) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory, Net [Abstract] | |||
Raw materials | $ 958.4 | $ 886.8 | |
Work in process | 1,438.1 | 417.2 | |
Finished goods | 3,075.4 | 1,366.9 | |
Inventories | 5,471.9 | 2,670.9 | |
Inventory reserves | 353.6 | 268.9 | |
Net realizable value of inventory recognized as expense | $ 206.1 | $ 399.2 | $ 343.1 |
Balance Sheet Components (Prepa
Balance Sheet Components (Prepaids and other current assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Prepaid expenses | $ 267.8 | $ 156.7 | |
Restricted cash | 5.6 | 15.5 | $ 1.2 |
Available-for-sale fixed income securities | 39.1 | 26.8 | |
Fair value of financial instruments | 118.6 | 43.3 | |
Equity securities | 45.8 | 39 | |
Other current assets | 1,236.1 | 286.2 | |
Prepaid expenses and other current assets | $ 1,707.4 | $ 552 |
Balance Sheet Components (Prope
Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,721.9 | $ 4,122.9 |
Accumulated depreciation | 2,262 | 1,973.3 |
Property, plant and equipment, net | 3,459.9 | 2,149.6 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 155.8 | 124.6 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,954.8 | 1,197.3 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,235 | 2,523.7 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 376.3 | $ 277.3 |
Balance Sheet Components (Other
Balance Sheet Components (Other Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Other Assets [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 323.6 | $ 254.6 |
Other long-term assets | 676 | 58.2 |
Other assets | 1,047.5 | 405 |
Clean energy investments | Other assets | ||
Schedule of Other Assets [Line Items] | ||
Investments in subsidiaries | $ 47.9 | $ 92.2 |
Balance Sheet Components (Trade
Balance Sheet Components (Trade Accounts Payable) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable, Current [Abstract] | ||
Trade accounts payable | $ 1,345.7 | $ 1,061.9 |
Other payables | 558.5 | 466.2 |
Accounts payable | $ 1,904.2 | $ 1,528.1 |
Balance Sheet Components (Oth_2
Balance Sheet Components (Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of other current liabilities [Line Items] | |||
Other receivables | $ 952.5 | $ 418.7 | |
Employee-related Liabilities, Current | 828.2 | 467.1 | |
Estimated Litigation Liability, Current | 362.9 | 138.2 | |
Contingent consideration liability | 223.6 | 250.7 | $ 355.3 |
Restructuring Reserve, Current | 149.2 | 26 | |
Accrued interest | 90.9 | 59.1 | |
Liability derivatives, fair value | 103.6 | 12.9 | |
Operating Lease, Liability, Current | 92.9 | 76.7 | |
Other Accrued Liabilities, Current | 1,973.2 | 575.3 | |
Other current liabilities | 4,960.7 | 2,319.9 | |
Clean energy investments | |||
Schedule of other current liabilities [Line Items] | |||
Other current liabilities | 47.5 | 47.7 | |
Other current liabilities | |||
Schedule of other current liabilities [Line Items] | |||
Contingent consideration liability | $ 100.5 | $ 120.4 | $ 158.3 |
Balance Sheet Components (Oth_3
Balance Sheet Components (Other noncurrent liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Other Noncurrent Liabilities [Line Items] | |||
Liability, Defined Benefit Pension Plan, Noncurrent | $ 1,020.4 | $ 408.9 | |
Contingent consideration liability | 223.6 | 250.7 | $ 355.3 |
Liability for Uncertainty in Income Taxes, Noncurrent | 469.5 | 109.6 | |
Operating Lease, Liability, Noncurrent | 229.5 | 175.7 | |
Restructuring Reserve, Noncurrent | 134.8 | 0 | |
Liabilities, Other than Long-term Debt, Noncurrent | 505.8 | 79.1 | |
Other Liabilities, Noncurrent | 2,483.1 | 960.8 | |
Other Noncurrent Liabilities | |||
Schedule of Other Noncurrent Liabilities [Line Items] | |||
Contingent consideration liability | 123.1 | 130.3 | $ 197 |
Clean energy investments | |||
Schedule of Other Noncurrent Liabilities [Line Items] | |||
Other Liabilities, Noncurrent | $ 0 | $ 57.2 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Right-of-use asset | $ 323.6 | $ 254.6 | ||
Operating lease liability | 322.4 | |||
Amount of operating leases not yet commenced | 18.7 | |||
Operating leases expense | $ 80.7 | $ 87.6 | $ 78.9 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of operating leases not yet commenced | 4 years | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of operating leases not yet commenced | 9 years |
Leases (Lease Information) (Det
Leases (Lease Information) (Details) | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term | 7 years |
Weighted-average discount rate | 3.10% |
Leases (Lease Maturities) (Deta
Leases (Lease Maturities) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 89.9 |
2021 | 68 |
2022 | 46.6 |
2023 | 34.6 |
2024 | 27.7 |
Thereafter | 95.1 |
Total | $ 361.9 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 25 years |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments Net Gain (Loss) From Impairment and Reduction In Obligations | $ 21.4 | $ 7 | |
Loss from equity method investments | $ 48.4 | $ 62.1 | $ 78.7 |
Clean energy investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of equity method investments | 3 |
Equity Method Investments (Bala
Equity Method Investments (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Other current liabilities | $ 4,960.7 | $ 2,319.9 |
Other Liabilities, Noncurrent | 2,483.1 | 960.8 |
Clean energy investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Other liabilities | 47.5 | 104.9 |
Other current liabilities | 47.5 | 47.7 |
Other Liabilities, Noncurrent | 0 | 57.2 |
Other assets | Clean energy investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in subsidiaries | $ 47.9 | $ 92.2 |
Equity Method Investments (Net
Equity Method Investments (Net Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Assets, Current | $ 12,867.5 | $ 6,757.3 |
Total assets | 61,553 | 31,255.5 |
Current liabilities | 10,562.9 | 5,569.1 |
Total liabilities | 38,598.9 | 19,371.7 |
Consolidated Entity | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets, Current | 38.9 | 39.3 |
Noncurrent assets | 1 | 1.7 |
Total assets | 39.9 | 41 |
Current liabilities | 33 | 36.1 |
Noncurrent liabilities | 1.8 | 1.7 |
Total liabilities | 34.8 | 37.8 |
Net assets | $ 5.1 | $ 3.2 |
Equity Method Investments (Inco
Equity Method Investments (Income Statement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | $ 11,946 | $ 11,500.5 | $ 11,433.9 |
Gross loss | 3,796.7 | 3,897.6 | 4,001.6 |
Operating and non-operating expense | (721.2) | 154.4 | 298.4 |
Net loss | (669.9) | 16.8 | 352.5 |
Consolidated Entity | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | 374.5 | 385 | 483.3 |
Gross loss | (4.6) | (4.4) | (21.1) |
Operating and non-operating expense | 19 | 20 | 21.9 |
Net loss | $ (23.6) | $ (24.4) | $ (43) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 01, 2018USD ($) | |
Intangible Assets Excluding Goodwill [Line Items] | ||||
Finite-lived intangible assets, net | $ 29,602,500,000 | $ 11,529,600,000 | ||
Contingent consideration liability | 223,600,000 | 250,700,000 | $ 355,300,000 | |
Contingent consideration payments | (111,800,000) | (99,000,000) | ||
In-process research and development | 80,700,000 | 120,300,000 | ||
Goodwill, Impaired, Accumulated Impairment Loss | 385,000,000 | 385,000,000 | 385,000,000 | |
In-process research and development | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
IPR&D intangible asset impairment charges | 37,400,000 | 138,300,000 | 117,700,000 | |
Product rights and licenses | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Finite-lived intangible assets, net | 29,598,700,000 | 11,518,100,000 | ||
Impairment of products rights and licenses intangible assets | $ 45,000,000 | $ 42,300,000 | $ 106,300,000 | |
North America Generics [Member] | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 2,600,000,000 | |||
North America Specialty [Member] | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | 650,000,000 | |||
Europe Segment | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | 4,430,000,000 | |||
Rest of World Segment | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 1,650,000,000 | |||
Measurement Input, Discount Rate [Member] | In-process research and development | Minimum | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Rate used to discount net cash inflows to present values | 0.090 | 0.090 | 0.095 | |
Measurement Input, Discount Rate [Member] | In-process research and development | Maximum | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Rate used to discount net cash inflows to present values | 0.110 | 0.110 | 0.130 | |
Measurement Input, Discount Rate [Member] | Product rights and licenses | Minimum | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 0.090 | |||
Measurement Input, Discount Rate [Member] | Product rights and licenses | Maximum | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 0.110 | |||
Respiratory delivery platform [Member] | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Contingent consideration liability | 204,900,000 | |||
Contingent consideration payments | 111,800,000 | $ 99,000,000 | ||
Other current liabilities | ||||
Intangible Assets Excluding Goodwill [Line Items] | ||||
Contingent consideration liability | 100,500,000 | 120,400,000 | $ 158,300,000 | |
Contingent consideration payments | $ (111,800,000) | $ (99,000,000) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Changes in Carrying Amount Of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill, gross, beginning balance | $ 9,975.6 | $ 10,132.8 | |
Accumulated impairment losses, beginning balance | (385) | (385) | |
Goodwill | 12,347 | 9,590.6 | $ 9,747.8 |
Foreign currency translation | 648.9 | (157.2) | |
Goodwill, gross, ending balance | 12,732 | 9,975.6 | |
Accumulated impairment losses, ending balance | (385) | (385) | |
Goodwill, net, ending balance | 12,347 | 9,590.6 | |
Developed Markets | |||
Goodwill [Line Items] | |||
Goodwill, gross, beginning balance | 8,258 | 8,410.9 | |
Accumulated impairment losses, beginning balance | (385) | (385) | |
Goodwill | 9,184.5 | 7,873 | 8,025.9 |
Foreign currency translation | 607.2 | (152.9) | |
Goodwill, gross, ending balance | 9,569.5 | 8,258 | |
Accumulated impairment losses, ending balance | (385) | (385) | |
Goodwill, net, ending balance | 9,184.5 | 7,873 | |
Greater China | |||
Goodwill [Line Items] | |||
Goodwill, gross, beginning balance | 67.8 | 68.6 | |
Accumulated impairment losses, beginning balance | 0 | 0 | |
Goodwill | 738.3 | 67.8 | 68.6 |
Foreign currency translation | 17.7 | (0.8) | |
Goodwill, gross, ending balance | 738.3 | 67.8 | |
Accumulated impairment losses, ending balance | 0 | 0 | |
Goodwill, net, ending balance | 738.3 | 67.8 | |
JANZ | |||
Goodwill [Line Items] | |||
Goodwill, gross, beginning balance | 584.8 | 584.1 | |
Accumulated impairment losses, beginning balance | 0 | 0 | |
Goodwill | 864 | 584.8 | 584.1 |
Foreign currency translation | 61.8 | 0.7 | |
Goodwill, gross, ending balance | 864 | 584.8 | |
Accumulated impairment losses, ending balance | 0 | 0 | |
Goodwill, net, ending balance | 864 | 584.8 | |
Emerging Markets | |||
Goodwill [Line Items] | |||
Goodwill, gross, beginning balance | 1,065 | 1,069.2 | |
Accumulated impairment losses, beginning balance | 0 | 0 | |
Goodwill | 1,560.2 | 1,065 | $ 1,069.2 |
Foreign currency translation | (37.8) | (4.2) | |
Goodwill, gross, ending balance | 1,560.2 | 1,065 | |
Accumulated impairment losses, ending balance | 0 | 0 | |
Goodwill, net, ending balance | $ 1,560.2 | $ 1,065 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Components of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-lived intangible asset, estimated useful life, in years | 15 years | 15 years |
Finite-lived intangible assets, original cost | $ 40,404.1 | $ 20,109.1 |
Finite-lived intangible assets, accumulated amortization | 10,801.6 | 8,579.5 |
Finite-lived intangible assets, net book value | 29,602.5 | 11,529.6 |
In-process research and development | 80.7 | 120.3 |
Intangible assets, gross, excluding goodwill | 40,484.8 | 20,229.4 |
Intangible assets, net book value, excluding goodwill | $ 29,683.2 | $ 11,649.9 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Product Rights and License by Therapeutic Category) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | $ 29,602.5 | $ 11,529.6 |
Product rights and licenses | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 29,598.7 | 11,518.1 |
Product rights and licenses | Developed Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 17,514.5 | 10,615.8 |
Product rights and licenses | Greater China | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 4,385 | 174 |
Product rights and licenses | JANZ | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 2,803.2 | 338.4 |
Product rights and licenses | Emerging Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 4,896 | 389.9 |
Product rights and licenses | Brands | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 22,216.1 | 5,564 |
Product rights and licenses | Brands | Developed Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 10,988.1 | 5,212.3 |
Product rights and licenses | Brands | Greater China | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 4,372.3 | 161.1 |
Product rights and licenses | Brands | JANZ | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 2,377 | 165.3 |
Product rights and licenses | Brands | Emerging Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 4,478.7 | 25.3 |
Product rights and licenses | Complex Gx and Biosimilars | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 274.8 | 315.9 |
Product rights and licenses | Complex Gx and Biosimilars | Developed Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 272.5 | 313.2 |
Product rights and licenses | Complex Gx and Biosimilars | Greater China | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 0 | 0 |
Product rights and licenses | Complex Gx and Biosimilars | JANZ | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 2.3 | 2.7 |
Product rights and licenses | Complex Gx and Biosimilars | Emerging Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 0 | 0 |
Product rights and licenses | Generics | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 7,107.8 | 5,638.2 |
Product rights and licenses | Generics | Developed Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 6,253.9 | 5,090.3 |
Product rights and licenses | Generics | Greater China | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 12.7 | 12.9 |
Product rights and licenses | Generics | JANZ | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 423.9 | 170.4 |
Product rights and licenses | Generics | Emerging Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | $ 417.3 | $ 364.6 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets Excluding Goodwill [Line Items] | |||
Intangible asset amortization expense | $ 1,605.8 | $ 1,582.7 | $ 1,606.4 |
Total intangible asset amortization expense (including impairment charges) | 1,688.2 | 1,763.3 | 1,830.4 |
In-process research and development | |||
Intangible Assets Excluding Goodwill [Line Items] | |||
IPR&D intangible asset impairment charges | $ 37.4 | $ 138.3 | $ 117.7 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Future amortization expense) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 2,652 |
2022 | 2,578 |
2023 | 2,414 |
2024 | 2,296 |
2025 | $ 2,198 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | |
Derivative [Line Items] | |||||
Notional amount of derivative | $ 750 | ||||
Pre-tax net losses on cash flow hedges to be reclassified from AOCE into earnings in next twelve months | $ (9) | ||||
Purchase consideration, contingent consideration | 223.6 | 250.7 | $ 355.3 | ||
Reclassifications | 0 | 0 | |||
Accretion | 11.6 | 14.8 | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (10.1) | (17.3) | 34.8 | ||
Contingent consideration payments | (111.8) | (99) | |||
Fair value loss (gain) | 20.4 | ||||
Minimum | |||||
Derivative [Line Items] | |||||
Accretion expense expected within 12 months | 8 | ||||
Maximum | |||||
Derivative [Line Items] | |||||
Accretion expense expected within 12 months | 10 | ||||
Respiratory delivery platform [Member] | |||||
Derivative [Line Items] | |||||
Purchase consideration, contingent consideration | 204.9 | ||||
Accretion | 11.6 | 14.8 | |||
Contingent consideration payments | 111.8 | 99 | |||
Fair value loss (gain) | $ (73.1) | ||||
2020 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 1.25% | 1.25% | |||
2022 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Long-term debt | $ 928.8 | 0 | |||
Debt instrument, interest rate, stated percentage | 0.816% | 0.816% | |||
2.125% Euro Senior Notes due 2025 | |||||
Derivative [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 1.023% | 1.023% | |||
2027 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 1.362% | 1.362% | |||
Senior Notes | 2.250% Euro Senior Notes due 2024 | |||||
Derivative [Line Items] | |||||
Long-term debt | $ 1,219.9 | 1,119.3 | |||
Debt instrument, interest rate, stated percentage | 2.25% | 2.25% | |||
Senior Notes | 2.125% Euro Senior Notes due 2025 | |||||
Derivative [Line Items] | |||||
Long-term debt | $ 944.6 | 0 | |||
Senior Notes | 2025 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Long-term debt | $ 609.9 | 559.6 | |||
Debt instrument, interest rate, stated percentage | 2.125% | 2.125% | |||
Senior Notes | 2028 Senior Notes | |||||
Derivative [Line Items] | |||||
Long-term debt | $ 748.6 | 748.4 | |||
Debt instrument, interest rate, stated percentage | 4.55% | 4.55% | |||
Senior Notes | 2027 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Long-term debt | $ 1,097.4 | 0 | |||
Senior Notes | 2032 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Long-term debt | $ 1,672.6 | 0 | |||
Debt instrument, interest rate, stated percentage | 1.908% | 1.908% | |||
Senior Notes | 2028 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Long-term debt | $ 909.7 | 834.3 | |||
Debt instrument, interest rate, stated percentage | 3.125% | 3.125% | |||
Senior Notes | Senior Notes 2023 3.125% | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | $ 750 | ||||
Long-term debt | $ 781.6 | 771.8 | |||
Debt instrument, interest rate, stated percentage | 3.125% | 3.125% | |||
Net Investment Hedging | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | € 5,955.6 | € 2,354 | |||
Long-term debt | € | 6,705.6 | ||||
Net Investment Hedging | 2020 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | 0 | 104 | |||
Long-term debt | € | 750 | ||||
Net Investment Hedging | 2022 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | 750 | 0 | |||
Long-term debt | € | 750 | ||||
Net Investment Hedging | 2.250% Euro Senior Notes due 2024 | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | 1,000 | 1,000 | |||
Long-term debt | € | 1,000 | ||||
Net Investment Hedging | 2.125% Euro Senior Notes due 2025 | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | 750 | 0 | |||
Long-term debt | € | 750 | ||||
Net Investment Hedging | 2025 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | 500 | 500 | |||
Long-term debt | € | 500 | ||||
Net Investment Hedging | 2028 Senior Notes | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | 750 | 750 | |||
Long-term debt | € | 750 | ||||
Net Investment Hedging | 2027 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | 850 | 0 | |||
Long-term debt | € | 850 | ||||
Net Investment Hedging | 2032 Euro Senior Notes | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | 1,250 | 0 | |||
Long-term debt | € | 1,250 | ||||
Net Investment Hedging | 2020 Floating Rate Euro Notes | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | 105.6 | € 0 | |||
Long-term debt | € | € 105.6 | ||||
Other Noncurrent Liabilities | |||||
Derivative [Line Items] | |||||
Purchase consideration, contingent consideration | $ 123.1 | 130.3 | 197 | ||
Reclassifications | (58.1) | (57.6) | |||
Accretion | 11.6 | 14.8 | |||
Contingent consideration payments | 0 | 0 | |||
Other current liabilities | |||||
Derivative [Line Items] | |||||
Purchase consideration, contingent consideration | 100.5 | 120.4 | $ 158.3 | ||
Reclassifications | 58.1 | 57.6 | |||
Accretion | 0 | 0 | |||
Contingent consideration payments | $ (111.8) | $ (99) | |||
Measurement Input, Discount Rate [Member] | Minimum | |||||
Derivative [Line Items] | |||||
Derivative Asset (Liability) Net, Measurement Input | 0.021 | 0.021 | |||
Measurement Input, Discount Rate [Member] | Maximum | |||||
Derivative [Line Items] | |||||
Derivative Asset (Liability) Net, Measurement Input | 0.115 | 0.115 | |||
Measurement Input, Discount Rate [Member] | Contingent consideration | Minimum | |||||
Derivative [Line Items] | |||||
Rate used to discount net cash inflows to present values | 0.021 | 0.021 | |||
Measurement Input, Discount Rate [Member] | Contingent consideration | Maximum | |||||
Derivative [Line Items] | |||||
Rate used to discount net cash inflows to present values | 0.105 | 0.105 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Derivatives Designated as Hedging Instruments Fair Values of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | $ 118.6 | $ 43.3 |
Liability derivatives, fair value | 103.6 | 12.9 |
Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 28.3 | 34.8 |
Liability derivatives, fair value | 0.8 | 0 |
Designated as hedging instrument | Prepaid expenses and other current assets | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 0 | 22.3 |
Designated as hedging instrument | Prepaid expenses and other current assets | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 28.3 | 12.5 |
Designated as hedging instrument | Other current liabilities | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | $ 0.8 | $ 0 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Derivatives Not Designated as Hedging Instruments Fair Values of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | $ 118.6 | $ 43.3 |
Liability derivatives, fair value | 103.6 | 12.9 |
Not designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 90.3 | 8.5 |
Liability derivatives, fair value | 102.8 | 12.9 |
Not designated as hedging instrument | Prepaid expenses and other current assets | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of financial instruments | 90.3 | 8.5 |
Not designated as hedging instrument | Other current liabilities | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | $ 102.8 | $ 12.9 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Effect of Derivative Instruments on the Consolidated Statements of Operations Derivatives in Fair Value Hedging Relationships) (Details) - Fair value hedging relationships - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | $ 22.1 | $ 18.7 | $ (12.6) |
Amount of Gain or (Loss) Recognized in Earnings on Hedging Items | (22.1) | (18.7) | 12.6 |
Interest expense | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | 22.1 | 18.7 | (12.6) |
Interest expense | Senior Notes 2023 3.125% | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in Earnings on Hedging Items | $ (22.1) | $ (18.7) | $ 12.6 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management (Effect of Derivative Instruments on the Condensed Consolidated Statements of Comprehensive Earnings Derivatives in Net Investment Hedging Relationship) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Foreign currency borrowings and forward contracts | Net Investment Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (346.4) | $ 56.7 | $ 108.9 |
Financial Instruments and Ris_8
Financial Instruments and Risk Management (Effect of Derivative Instruments on the Consolidated Statements of Comprehensive Earnings Derivatives in Cash Flow Hedging Relationships) (Details) - Cash flow hedging relationships - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 20.6 | $ 19.6 | $ (46.6) |
Foreign currency forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 20.6 | 16.6 | (46.6) |
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 0 | $ 3 | $ 0 |
Financial Instruments and Ris_9
Financial Instruments and Risk Management (Effect of Derivative Instruments on the Consolidated Statements of Operations Derivatives in Cash Flow Hedging Relationships) (Details) - Cash flow hedging relationships - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCE into Earnings (Effective Portion) | $ 0.3 | $ (7.8) | $ (1.5) | |
Amount of Gaom Excluded from the Assessment of Hedge Effectiveness | 7.1 | 0 | $ 0 | |
Foreign currency forward contracts | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCE into Earnings (Effective Portion) | 4.8 | (0.7) | 6.2 | |
Foreign currency forward contracts | Other income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gaom Excluded from the Assessment of Hedge Effectiveness | 7.1 | 0 | $ 0 | |
Interest rate swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCE into Earnings (Effective Portion) | $ (4.5) | $ (7.1) | $ (7.7) |
Financial Instruments and Ri_10
Financial Instruments and Risk Management (Effect of Derivative Instruments on the Consolidated Statements of Operations Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | $ (10.1) | $ (17.3) | $ 34.8 |
Foreign currency forward contracts | Other expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | $ (10.1) | $ (17.3) | $ 34.8 |
Financial Instruments and Ri_11
Financial Instruments and Risk Management (Financial Assets and Liabilities Carried at Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0.9 | $ 0.7 |
Equity securities | 45.8 | 39 |
Available-for-sale securities | 39.1 | 26.8 |
Total assets at recurring fair value measurement | 204.4 | 109.8 |
Total liabilities at recurring fair value measurement | 327.2 | 263.6 |
Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivative assets | 118.6 | 21 |
Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivative liabilities | 103.6 | 12.9 |
Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 223.6 | 250.7 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0.9 | 0.7 |
Equity securities — exchange traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 45.1 | 38.3 |
Available-for-sale fixed income investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 39.1 | 26.8 |
U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 14.4 | 9.5 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 17.8 | 10.8 |
Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1.9 | 2.3 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 4.6 | 3.6 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0.4 | 0.6 |
Total equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 39 | |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0.7 | 0.7 |
Interest rate swap derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap derivative assets | 0 | 22.3 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0.9 | 0.7 |
Equity securities | 45.8 | |
Total assets at recurring fair value measurement | 46.7 | 39.7 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0.9 | 0.7 |
Level 1 | Equity securities — exchange traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 45.1 | 38.3 |
Level 1 | Total equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 39 | |
Level 1 | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0.7 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at recurring fair value measurement | 157.7 | 70.1 |
Total liabilities at recurring fair value measurement | 103.6 | 12.9 |
Level 2 | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivative assets | 118.6 | 21 |
Level 2 | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivative liabilities | 103.6 | 12.9 |
Level 2 | Available-for-sale fixed income investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 39.1 | 26.8 |
Level 2 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 14.4 | 9.5 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 17.8 | 10.8 |
Level 2 | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1.9 | 2.3 |
Level 2 | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 4.6 | 3.6 |
Level 2 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0.4 | 0.6 |
Level 2 | Interest rate swap derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap derivative assets | 0 | 22.3 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at recurring fair value measurement | 223.6 | 250.7 |
Level 3 | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 223.6 | $ 250.7 |
Financial Instruments and Ri_12
Financial Instruments and Risk Management (Rollforward of Contingent Consideration) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Activity in Contingent Consideration [Roll Forward] | ||
Balance at beginning of period | $ 250.7 | $ 355.3 |
Payments | 111.8 | 99 |
Accretion | 11.6 | 14.8 |
Reclassifications | 0 | 0 |
Fair value loss (gain) | 73.1 | (20.4) |
Balance at end of period | 223.6 | 250.7 |
Other current liabilities | ||
Schedule of Activity in Contingent Consideration [Roll Forward] | ||
Balance at beginning of period | 120.4 | 158.3 |
Payments | 111.8 | 99 |
Accretion | 0 | 0 |
Reclassifications | 58.1 | 57.6 |
Fair value loss (gain) | 33.8 | 3.5 |
Balance at end of period | 100.5 | 120.4 |
Other Noncurrent Liabilities | ||
Schedule of Activity in Contingent Consideration [Roll Forward] | ||
Balance at beginning of period | 130.3 | 197 |
Payments | 0 | 0 |
Accretion | 11.6 | 14.8 |
Reclassifications | (58.1) | (57.6) |
Fair value loss (gain) | 39.3 | (23.9) |
Balance at end of period | $ 123.1 | $ 130.3 |
Financial Instruments and Ri_13
Financial Instruments and Risk Management (Schedule of Available-for-sale Securities Reconciliation) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 37.5 | $ 26 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1.6 | 0.8 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fair Value | 39.1 | 26.8 |
Debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 37.5 | 26 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1.6 | 0.8 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fair Value | $ 39.1 | 26.8 |
Equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 0.7 |
Financial Instruments and Ri_14
Financial Instruments and Risk Management (Maturities of Available-for-sale Debt Securities at Fair Value) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Mature within one year | $ 1.9 |
Mature in one to five years | 20.9 |
Mature in five years and later | 16.3 |
Available-for-sale securities, debt securities | $ 39.1 |
Debt (Short-term borrowings) (D
Debt (Short-term borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 1,100.9 | $ 0 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 651.3 | 0 |
Receivables Facility [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 248.4 | 0 |
Note Securitization Facility [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 200 | 0 |
Other Current Portion of Long-term Debt | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 1.2 | $ 0 |
Debt Debt (Receivables Facility
Debt Debt (Receivables Facility and Commercial Paper Program) (Details) - USD ($) $ in Millions | Jun. 06, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Short-term borrowings | $ 1,100.9 | $ 0 | |
Securitized accounts receivable | 389.4 | 407 | |
Commercial Paper Program [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,650 | ||
Debt Instrument, Term | 364 days | ||
Receivables Facility [Member] | |||
Debt Instrument [Line Items] | |||
Short-term borrowings | 248.4 | 0 | |
Accounts receivable securitization facility maximum borrowing capacity | 400 | ||
Note Securitization Facility [Member] | |||
Debt Instrument [Line Items] | |||
Short-term borrowings | 200 | $ 0 | |
Accounts receivable securitization facility maximum borrowing capacity | $ 200 | ||
London Interbank Offered Rate (LIBOR) [Member] | Receivables Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.925% | ||
London Interbank Offered Rate (LIBOR) [Member] | Note Securitization Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Debt (Summary of Long-term Debt
Debt (Summary of Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt, Current | $ 2,256.3 | $ 1,457.6 |
Unamortized Debt Issuance Expense | (47.8) | (59.1) |
Long-term debt | 22,429.2 | 11,214.3 |
Other Current Portion of Long-term Debt | ||
Debt Instrument [Line Items] | ||
Debt, Current | 8 | 8.3 |
2020 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, Current | $ 0 | 840.1 |
Debt instrument, interest rate, stated percentage | 1.25% | |
2020 Senior Notes (3.750% coupon) | ||
Debt Instrument [Line Items] | ||
Debt, Current | $ 0 | 50 |
Debt instrument, interest rate, stated percentage | 3.75% | |
Other Long Term Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 17.4 | 8.9 |
2020 Floating Rate Euro Notes | ||
Debt Instrument [Line Items] | ||
Debt, Current | 0 | 560.6 |
Senior Notes 2021 | ||
Debt Instrument [Line Items] | ||
Debt, Current | $ 2,249.7 | 0 |
Debt instrument, interest rate, stated percentage | 3.15% | |
2022 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.816% | |
Long-term debt | $ 928.8 | 0 |
Senior Notes 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.125% | |
Long-term debt | $ 1,008.8 | 0 |
2.125% Euro Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.023% | |
2027 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.362% | |
2027 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.30% | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 600 | |
Senior Notes | 2021 Senior Notes (3.150%) | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.15% | |
Long-term debt | $ 0 | 2,249.2 |
Senior Notes | Senior Notes 2023 3.125% | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.125% | |
Long-term debt | $ 781.6 | 771.8 |
Senior Notes | 2023 Senior Notes (4.200%) | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.20% | |
Long-term debt | $ 499.3 | 499.1 |
Senior Notes | 2.250% Euro Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.25% | |
Long-term debt | $ 1,219.9 | 1,119.3 |
Senior Notes | 2025 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.125% | |
Long-term debt | $ 609.9 | 559.6 |
Senior Notes | 2026 Senior Notes (3.950%) | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.95% | |
Long-term debt | $ 2,239.7 | 2,238.1 |
Senior Notes | 2028 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.125% | |
Long-term debt | $ 909.7 | 834.3 |
Senior Notes | 2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.55% | |
Long-term debt | $ 748.6 | 748.4 |
Senior Notes | 2043 Senior Notes (5.400%) | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.40% | |
Long-term debt | $ 497.3 | 497.2 |
Senior Notes | 2046 Senior Notes (5.250%) | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.25% | |
Long-term debt | $ 999.9 | 999.8 |
Senior Notes | 2048 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.20% | |
Long-term debt | $ 747.7 | 747.7 |
Senior Notes | 2.125% Euro Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 944.6 | 0 |
Senior Notes | 2027 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,097.4 | 0 |
Senior Notes | 2027 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 786.1 | 0 |
Senior Notes | 2030 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.70% | |
Long-term debt | $ 1,528 | 0 |
Senior Notes | 2032 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.908% | |
Long-term debt | $ 1,672.6 | 0 |
Senior Notes | 2040 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.85% | |
Long-term debt | $ 1,663.3 | 0 |
Senior Notes | 2050 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.00% | |
Long-term debt | $ 2,209.3 | 0 |
Senior Notes | 2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.65% | |
Long-term debt | $ 767.1 | 0 |
Current portion of long-term debt | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ (1.4) | $ (1.4) |
Debt (Revolving Facilities and
Debt (Revolving Facilities and Term Facilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||
Debt, Current | $ 2,256.3 | $ 1,457.6 |
Debt (Issuance of 2018 Senior N
Debt (Issuance of 2018 Senior Notes) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 22,429.2 | $ 11,214.3 |
Senior Notes | 2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.55% | |
Senior Notes | 2048 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.20% |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 22,429.2 | $ 11,214.3 |
Long-term Debt, Gross | $ 23,947 | |
2020 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.25% | |
Senior Notes | 2.250% Euro Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.25% | |
Long-term debt | $ 1,219.9 | 1,119.3 |
Senior Notes | 2028 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.125% | |
Long-term debt | $ 909.7 | 834.3 |
Senior Notes | 2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.55% | |
Long-term debt | $ 748.6 | 748.4 |
Senior Notes | 2048 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.20% | |
Long-term debt | $ 747.7 | 747.7 |
Senior Notes | 2025 Euro Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.125% | |
Long-term debt | $ 609.9 | $ 559.6 |
EURIBOR [Member] | Senior Notes | 2020 Floating Rate Euro Notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Debt (Fair Value) (Narrative) (
Debt (Fair Value) (Narrative) (Details) - USD ($) $ in Millions | Nov. 13, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Upjohn Inc. | |||
Debt Instrument [Line Items] | |||
Cash paid to acquire asset | $ 12,000 | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Fair value of long-term debt | $ 25,900 | $ 13,420 |
Debt (Upjohn Senior Notes) (Det
Debt (Upjohn Senior Notes) (Details) - Upjohn Inc. $ in Millions | Jun. 30, 2020USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 11,847.8 |
Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 7,450 |
Senior Notes | 2022 Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 1,000 |
Senior Notes | 2025 Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 750 |
Senior Notes | 2027 Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 750 |
Senior Notes | 2030 Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 1,450 |
Senior Notes | 2040 Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 1,500 |
Senior Notes | 2050 Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 2,000 |
Senior Notes | 2022 Euro Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 916.2 |
Senior Notes | 2027 Euro Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 1,038.4 |
Senior Notes | 2.250% Euro Senior Notes due 2024 | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 916.2 |
Senior Notes | 2032 Euro Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 1,527 |
Debt (Minimum Repayments on Out
Debt (Minimum Repayments on Outstanding Borrowings) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 2,250 |
2022 | 2,516 |
2023 | 1,250 |
2024 | 2,138 |
2025 | 1,361 |
Thereafter | 14,432 |
Total | $ 23,947 |
Comprehensive Earnings (Accumul
Comprehensive Earnings (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Total equity | $ 22,954.1 | $ 11,883.8 | $ 12,167.1 | $ 13,307.6 |
Net unrealized gain on marketable securities, net of tax | 1.2 | 0.6 | ||
Net unrecognized (loss) gain and prior service cost related to defined benefit plans, net of tax | (26.1) | (17.4) | ||
Foreign currency translation adjustment | (461.5) | (1,674.5) | ||
Accumulated other comprehensive loss | (858) | (1,797.2) | ||
AOCI Attributable to Parent [Member] | ||||
Total equity | (858) | (1,441.3) | (361.2) | |
Accumulated other comprehensive loss | (1,441.3) | (361.2) | ||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | ||||
Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax | (53.1) | (3.7) | ||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | ||||
Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax | (18) | (31.6) | ||
Net Investment Hedging | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | $ (353.6) | $ (74.3) | $ (130.9) | $ (239.8) |
Comprehensive Earnings (Compone
Comprehensive Earnings (Components of Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total equity | $ 22,954.1 | $ 11,883.8 | $ 12,167.1 | $ 13,307.6 |
Net unrealized gains on marketable securities, net of tax, beginning of period | 0.6 | |||
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax, beginning of period | (17.4) | |||
Foreign currency translation adjustment, beginning of period | (1,674.5) | |||
Accumulated other comprehensive loss, net of tax, beginning of period | (1,797.2) | |||
Other comprehensive (loss) earnings before reclassifications, before tax | 0.6 | |||
Net sales | 11,819.9 | 11,370.3 | 11,268.7 | |
Interest expense | (497.8) | (517.3) | (542.3) | |
Amortization of prior service costs included in SG&A | 0 | |||
Other comprehensive (loss) earnings, before tax | 912.6 | (343.1) | (1,096.7) | |
Income tax related to items of other comprehensive (loss) earnings, derivatives | 51.3 | (137.6) | 54.1 | |
Net unrealized gains on marketable securities, net of tax, end of period | 1.2 | 0.6 | ||
Net unrealized gains on marketable securities, net of tax, end of period | (26.1) | (17.4) | ||
Foreign currency translation adjustment, end of period | (461.5) | (1,674.5) | ||
Accumulated other comprehensive loss, net of tax, end of period | (858) | (1,797.2) | ||
Net unrealized gain (loss) on marketable securities | 0.6 | 0.5 | (0.1) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | 14 | 24.8 | 3.8 | |
Foreign currency translation adjustment | 1,213 | (1,125.2) | ||
Income tax (benefit) provision | (26.6) | 9.2 | (24.1) | |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total equity | 0 | (6.2) | ||
Net unrealized gains on marketable securities, net of tax, beginning of period | 0 | |||
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax, beginning of period | (0.2) | |||
Foreign currency translation adjustment, beginning of period | 0 | |||
Accumulated other comprehensive loss, net of tax, beginning of period | (3.6) | |||
Net unrealized gains on marketable securities, net of tax, end of period | 0 | |||
Net unrealized gains on marketable securities, net of tax, end of period | (0.2) | |||
Foreign currency translation adjustment, end of period | 0 | |||
Accumulated other comprehensive loss, net of tax, end of period | (3.6) | |||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax related to items of other comprehensive (loss) earnings, derivatives | 0 | |||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net unrecognized gains (losses) on derivatives, net of tax, beginning of period | (53.1) | (3.7) | ||
Other comprehensive (loss) earnings before reclassifications, before tax | (80.7) | |||
Income tax related to items of other comprehensive (loss) earnings, derivatives | (12.2) | |||
Net unrecognized gains (losses) on derivatives, net of tax, end of period | (53.1) | |||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | (6.2) | |||
Interest expense | 7.7 | |||
Income tax related to items of other comprehensive (loss) earnings, derivatives | (27.3) | |||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | (4.8) | 0.7 | (6.2) | |
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest expense | (4.5) | (7.1) | 7.7 | |
Gains and Losses on Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net unrealized gains on marketable securities, net of tax, beginning of period | 0 | 10.1 | ||
Other comprehensive (loss) earnings before reclassifications, before tax | 0.5 | (0.1) | ||
Net unrealized gains on marketable securities, net of tax, end of period | 0 | |||
Net unrealized gain (loss) on marketable securities | (0.1) | |||
Gains and Losses on Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax related to items of other comprehensive (loss) earnings, derivatives | 0.1 | 0 | ||
Defined Pension Plan Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax, beginning of period | 1.7 | 6 | ||
Other comprehensive (loss) earnings before reclassifications, before tax | (12.1) | (21) | (3) | |
Net unrealized gains on marketable securities, net of tax, end of period | 1.7 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | (3.8) | |||
Defined Pension Plan Items | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of prior service costs included in SG&A | 0 | (0.9) | (0.4) | |
Amortization of actuarial loss included in SG&A | (1.9) | (2.9) | (0.4) | |
Income tax related to items of other comprehensive (loss) earnings, derivatives | 5.3 | (5.9) | 0.5 | |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation adjustment, beginning of period | (1,259) | (133.8) | ||
Other comprehensive (loss) earnings before reclassifications, before tax | 1,213 | (415.5) | (1,125.2) | |
Income tax related to items of other comprehensive (loss) earnings, derivatives | 0 | |||
Foreign currency translation adjustment, end of period | (1,259) | |||
Foreign currency translation adjustment | 1,213 | (415.5) | (1,125.2) | |
Foreign Currency Translation Adjustment | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax related to items of other comprehensive (loss) earnings, derivatives | 0 | 0 | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total equity | (858) | (1,441.3) | (361.2) | |
Accumulated other comprehensive loss, net of tax, beginning of period | (1,441.3) | (361.2) | ||
Other comprehensive (loss) earnings before reclassifications, before tax | 914.8 | (347.1) | (1,097.4) | |
Other comprehensive (loss) earnings, before tax | (343.1) | (1,096.7) | ||
Accumulated other comprehensive loss, net of tax, end of period | (1,441.3) | |||
Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total equity | (3.6) | (7.5) | ||
Accumulated Other Comprehensive Loss | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of prior service costs included in SG&A | 0 | (0.9) | (0.4) | |
Amortization of actuarial loss included in SG&A | (1.9) | (2.9) | (0.4) | |
Income tax (benefit) provision | (26.6) | 9.2 | (24.1) | |
Accumulated Other Comprehensive Loss | Foreign currency forward contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | (4.8) | 0.7 | (6.2) | |
Accumulated Other Comprehensive Loss | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest expense | (4.5) | (7.1) | 7.7 | |
Cash flow hedging relationships | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 18.2 | 37.1 | (79.2) | |
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net unrecognized gains (losses) on derivatives, net of tax, beginning of period | (31.6) | |||
Other comprehensive (loss) earnings before reclassifications, before tax | 18.5 | 29.3 | ||
Income tax related to items of other comprehensive (loss) earnings, derivatives | (4.6) | |||
Net unrecognized gains (losses) on derivatives, net of tax, end of period | (18) | (31.6) | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 18.2 | (79.2) | ||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net unrecognized gains (losses) on derivatives, net of tax, beginning of period | (3.4) | |||
Net unrecognized gains (losses) on derivatives, net of tax, end of period | (3.4) | |||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | (4.8) | |||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | 0.7 | |||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest expense | (4.5) | |||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest expense | (7.1) | |||
Net Investment Hedging | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | (353.6) | (74.3) | (130.9) | $ (239.8) |
Other comprehensive (loss) earnings before reclassifications, before tax | (305.2) | 59.6 | 111.6 | |
Income tax related to items of other comprehensive (loss) earnings, derivatives | 25.9 | (3) | (2.7) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | $ (305.2) | 59.6 | $ 111.6 | |
Net Investment Hedging | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2025 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | ||||||
Deferred tax liability not recognized, amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | $ 3,400 | |||||
Statutory tax rate | 21.00% | 19.00% | 19.00% | |||
Valuation allowance, amount | $ 443.6 | $ 603.5 | ||||
Unrecognized tax benefit | 391.1 | 92.1 | $ 96.3 | $ 185.7 | ||
Unrecognized tax benefits that impact effective tax rate | 127.1 | |||||
Accrued interest and penalties | 86.7 | 17.2 | ||||
Interest expense (income) related to uncertain tax positions | 6 | (35.2) | $ (18.3) | |||
Amount of unrecognized deferred tax liability | $ 80 | |||||
Deduction limit of GILTI tax | 50.00% | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Unrecognized tax benefit — beginning of year | $ 391.1 | $ 92.1 | $ 96.3 | $ 185.7 | ||
Unrecognized tax benefits that impact effective tax rate | 127.1 | |||||
U.S. Federal Tax Authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Net operating loss carryforwards | 15.1 | |||||
U.S. State Tax Authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Net operating loss carryforwards | 2,930 | |||||
Foreign | ||||||
Income Tax Contingency [Line Items] | ||||||
Net operating loss carryforwards | 1,010 | |||||
Credit carryforward | 294.5 | |||||
Indefinite | Foreign | ||||||
Income Tax Contingency [Line Items] | ||||||
Net operating loss carryforwards | 933.2 | |||||
2016 through 2035 | Foreign | ||||||
Income Tax Contingency [Line Items] | ||||||
Net operating loss carryforwards | $ 73.2 | |||||
Scenario, Forecast | ||||||
Income Tax Contingency [Line Items] | ||||||
Deduction limit of GILTI tax | 37.50% |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Income tax provision | $ (51.3) | $ 137.6 | $ (54.1) |
Earnings (loss) before income taxes and noncontrolling interest: | |||
Operating and non-operating expense | (721.2) | 154.4 | 298.4 |
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
U.S. Federal Current | (6.4) | 118.1 | (68.2) |
U.S. Federal Deferred | (277) | (165.5) | (112.9) |
Income tax provision (benefit), U.S. Federal | (283.4) | (47.4) | (181.1) |
Earnings (loss) before income taxes and noncontrolling interest: | |||
Earnings before income taxes and noncontrolling interest, United States | (945.5) | (1,031.4) | (1,000.5) |
U.S. State Tax Authority | |||
Income Tax Contingency [Line Items] | |||
U.S. State Current | (0.1) | 21.1 | 6.8 |
U.S. State Deferred | 7.7 | (13.6) | (12.3) |
Income tax provision (benefit), U.S. State | 7.6 | 7.5 | (5.5) |
Non-U.S. state tax authority | |||
Income Tax Contingency [Line Items] | |||
Non-U.S. Current | 168.7 | 191 | 271.6 |
Non-U.S. Deferred | 55.8 | (13.5) | (139.1) |
Income tax provision (benefit), Non-U.S. | 224.5 | 177.5 | 132.5 |
Other Foreign Operations | |||
Earnings (loss) before income taxes and noncontrolling interest: | |||
Earnings before income taxes and noncontrolling interest, foreign | $ 224.3 | $ 1,185.8 | $ 1,298.9 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Employee benefits | $ 273 | $ 182.5 |
Litigation reserves | 43.5 | 14.7 |
Accounts receivable allowances | 393.7 | 201.9 |
Deferred Tax Assets, Inventory | 1,187.9 | 80.1 |
Tax credit and loss carry-forwards | 1,080.4 | 726.2 |
Operating lease assets | 66.5 | 62.8 |
Interest expense | 67.9 | 162.7 |
Intangible assets | 156.3 | 184.7 |
Other | 396 | 121.6 |
Total deferred tax assets, gross | 3,665.2 | 1,737.2 |
Less: Valuation allowance | (443.6) | (603.5) |
Total deferred tax assets | 3,221.6 | 1,133.7 |
Deferred tax liabilities: | ||
Plant and equipment | 50.2 | 87.4 |
Operating lease liabilities | 66.5 | 62.8 |
Intangible assets and goodwill | 4,058.6 | 1,890.8 |
Other | 22.1 | 17.1 |
Total deferred tax liabilities | 4,197.4 | 2,058.1 |
Deferred tax liabilities, net | $ (975.8) | $ (924.4) |
Income Taxes (Statutory Tax Rat
Income Taxes (Statutory Tax Rate to Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Statutory tax rate | 21.00% | 19.00% | 19.00% |
Valuation allowance | (42.20%) | 0.00% | 0.00% |
Global intangible low-taxed income | (3.60%) | (8.60%) | 8.60% |
Waived deductions under IRC § 59A | (3.30%) | 64.50% | 0.00% |
Impact of the Combination | 5.80% | 7.70% | 0.00% |
Effective tax rate | 7.10% | 89.10% | (18.10%) |
United States | |||
Income Tax Contingency [Line Items] | |||
Clean energy and research credits | 12.80% | (43.40%) | (33.10%) |
U.S. rate differential | 0.00% | (3.10%) | (5.40%) |
Impact of changes in legislation | (9.20%) | 0.00% | (4.90%) |
State income taxes and credits | (1.60%) | (4.10%) | (9.20%) |
Valuation allowance | 8.60% | (118.50%) | 60.20% |
Tax settlements and resolution of certain tax positions | 0.10% | 199.60% | (22.50%) |
Other | 1.50% | 6.90% | 7.50% |
LUXEMBOURG | |||
Income Tax Contingency [Line Items] | |||
Other Foreign Operations | (5.00%) | (14.80%) | (28.30%) |
GIBRALTAR | |||
Income Tax Contingency [Line Items] | |||
Other Foreign Operations | 8.00% | (38.80%) | (19.20%) |
IRELAND | |||
Income Tax Contingency [Line Items] | |||
Other Foreign Operations | 8.20% | (13.70%) | (3.50%) |
France | |||
Income Tax Contingency [Line Items] | |||
Other Foreign Operations | (2.80%) | 15.20% | 6.20% |
Other foreign | |||
Income Tax Contingency [Line Items] | |||
Other Foreign Operations | 0.60% | 12.80% | 2.30% |
Other Foreign Operations | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance | 16.10% | (9.90%) | (4.30%) |
Other | (1.80%) | 2.10% | 8.90% |
Uncertain tax positions | (0.10%) | 36.70% | (5.20%) |
Withholding taxes | (1.60%) | 7.10% | 4.10% |
Tax settlements and resolution of certain tax positions | (3.90%) | (27.60%) | 0.70% |
PUERTO RICO | |||
Income Tax Contingency [Line Items] | |||
Other Foreign Operations | (2.50%) | 0.00% | 0.00% |
SWITZERLAND | |||
Income Tax Contingency [Line Items] | |||
Other Foreign Operations | 2.00% | 0.00% | 0.00% |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized tax benefit — beginning of year | $ 391.1 | $ 92.1 | $ 96.3 | $ 185.7 | |
Additions for current year tax positions | 13.4 | 0 | $ 0 | ||
Additions for prior year tax positions | 35.7 | 154.9 | 20 | ||
Reductions for prior year tax positions | (5.2) | (11.7) | (5.8) | ||
Settlements | (8.9) | (112.5) | (32.9) | ||
Reductions due to expirations of statute of limitations | 0 | (34.9) | $ (70.7) | ||
Addition due to acquisition | 264 | 0 | 0 | ||
Unrecognized tax benefit — end of year | $ 391.1 | $ 92.1 | $ 96.3 |
Share-Based Incentive Plan (Nar
Share-Based Incentive Plan (Narrative) (Details) - USD ($) $ in Millions | Nov. 16, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares exercised | 27,615 | 580,950 | 820,603 | |||
Reduction in Share-based Compensation Expense | $ 70.6 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 6,711,731 | 6,347,709 | 6,815,278 | 2,600,000 | 7,198,684 | |
Restricted stock | Vest ratably in five years or less [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option award vesting period, in years | 3 years | |||||
Number of restricted stock awards, granted | 4,724,327 | |||||
Restricted Stock Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted stock awards, granted | 10,134,565 | |||||
Performance Shares | Vest after three years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option award vesting period, in years | 3 years | |||||
Number of restricted stock awards, granted | 3,792,064 | |||||
Long Term Incentive Plan 2003 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares exercised | 6,757,640 | |||||
Common stock shares reserved for issuance to employees | 13,535,627 | |||||
Total unrecognized compensation expense, net of estimated forfeitures | $ 146.7 | |||||
Weighted-average period over which total unrecognized compensation expense expected to be recognized (years) | 2 years | |||||
Intrinsic value of stock-based awards exercised and restricted stock units converted | $ 20.9 | $ 38 | ||||
Long Term Incentive Plan 2003 | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option award expiration period, in years | 10 years | |||||
Average remaining contractual term for options outstanding, in years | 5 years | |||||
Average remaining contractual term for options vested and expected to vest, in years | 4 years 10 months 24 days | |||||
Average remaining contractual term for options exercisable, in years | 4 years | |||||
Aggregate intrinsic value for options outstanding | $ 1.1 | $ 1 | $ 0 | |||
Long Term Incentive Plan 2003 | Minimum | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option award vesting period, in years | 3 years | |||||
Long Term Incentive Plan 2003 | Maximum | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option award vesting period, in years | 4 years | |||||
One-Time Special Performance-Based Five-Year Realizable Value Incentive Program | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,100,000 | |||||
2020 Stock Incentive Plan and 2003 Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount of common stock shares authorized | 72,500,000 | |||||
2014 Program | Stock appreciation rights and performance shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option award vesting period, in years | 5 years | |||||
Not Subject to Market Conditions [Member] | Performance Shares | Vest after three years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option award vesting period, in years | 5 years | |||||
Number of restricted stock awards, granted | 1,600,000 |
Share-Based Incentive Plan (Sto
Share-Based Incentive Plan (Stock Awards) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of shares under stock awards, outstanding at beginning of period | 6,347,709 | 6,815,278 | 7,198,684 |
Weightedaverage exercise price per share, outstanding at beginning of period | $ 36.97 | $ 36.61 | $ 35.17 |
Number of shares under stock awards, granted | 814,351 | 829,322 | 905,265 |
Weighted average exercise price per share, granted | $ 17.37 | $ 26.18 | $ 40.38 |
Number of shares under stock awards, exercised | (27,615) | (580,950) | (820,603) |
Weighted average exercise price per share, exercised | $ 21.13 | $ 14.40 | $ 21.75 |
Number of shares under stock awards, forfeited | (422,714) | (715,941) | (468,068) |
Weighted average exercise price per share, forfeited | $ 25.74 | $ 39.40 | $ 47.86 |
Number of shares under stock awards, outstanding at end of period | 6,711,731 | 6,347,709 | 6,815,278 |
Weighted average exercise price per share, outstanding at end of period | $ 35.36 | $ 36.97 | $ 36.61 |
Number of shares under stock awards, vested and expected to vest at period end | 6,532,172 | ||
Weighted average exercise price per share, vested and expected to vest at period end | $ 35.65 | ||
Number of shares under stock awards, exercisable at period end | 5,284,858 | ||
Weighted average exercise price per share, exercisable at period end | $ 38.51 |
Share-Based Incentive Plan (Non
Share-Based Incentive Plan (Nonvested Restricted Stock, Restricted Stock Units and PSUs Activity) (Details) - Restricted Stock Awards | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of restricted stock awards, nonvested beginning balance | shares | 4,105,689 |
Weighted average grant-date fair value per share, nonvested beginning balance | $ / shares | $ 34.42 |
Number of restricted stock awards, granted | shares | 10,134,565 |
Weighted average grant-date fair value per share, granted | $ / shares | $ 15.23 |
Number of restricted stock awards, released | shares | (1,819,982) |
Weighted average grant-date fair value per share, released | $ / shares | $ 33.56 |
Number of restricted stock awards, forfeited | shares | (346,482) |
Weighted average grant-date fair value per share, forfeited | $ / shares | $ 38.46 |
Number of restricted stock awards, nonvested ending balance | shares | 12,073,790 |
Weighted average grant-date fair value per share, nonvested ending balance | $ / shares | $ 18.34 |
Share-Based Incentive Plan (Val
Share-Based Incentive Plan (Valuation Assumptions) (Details) - Long Term Incentive Plan 2003 - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 46.70% | 38.10% | 35.80% |
Risk-free interest rate | 1.00% | 2.50% | 2.80% |
Expected term (years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Forfeiture rate | 5.50% | 5.50% | 5.50% |
Weighted average grant date fair value per option | $ 8.07 | $ 11.03 | $ 16.51 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Accumulated other comprehensive income expected to be recognized as net periodic benefit costs | $ 1.6 | |||
Unrecognized net actuarial losses exceed higher of market value of plan assets or the projected benefit obligation at the beginning of the year | 10.00% | |||
Accumulated benefit obligation | $ 2,040 | $ 636.3 | ||
Defined benefit plan, ultimate health care cost trend rate | 6.70% | |||
Defined benefit plan, ultimate health care cost trend rate, projected | 4.50% | |||
Total employer contributions | $ 115.5 | 95.6 | $ 85.2 | |
Multiemployer plans, withdrawal obligation | $ 8.9 | $ 12.1 | $ 27.3 | |
Fiscal Year 2017 | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, ultimate health care cost trend rate | 5.70% | |||
Defined benefit plan, ultimate health care cost trend rate, projected | 4.50% | |||
Deferred Base Salary | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan, maximum annual contribution per employee, percent | 50.00% | |||
Deferred Bonus | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan, maximum annual contribution per employee, percent | 100.00% |
Employee Benefit Plans (Accumul
Employee Benefit Plans (Accumulated Other Comprehensive Income (Loss) Pretax Amounts Not Yet Reclassified in Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized actuarial loss | $ 33.9 | $ 20.6 |
Unrecognized prior service (credit) cost | (1.4) | (1.3) |
Total | 32.5 | 19.3 |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized actuarial loss | 5.7 | 4.8 |
Unrecognized prior service (credit) cost | 0.6 | 0.7 |
Total | $ 6.3 | $ 5.5 |
Employee Benefit Plans (Change
Employee Benefit Plans (Change in Accumulated Income (Loss) Relating to Defined Benefit Pension and Other Postretirement Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net change | $ (14) | $ (24.8) | $ (3.8) |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Unrecognized actuarial loss | 11.1 | ||
Amortization of actuarial gain/(loss) | (1.5) | ||
Unrecognized prior service costs | 0 | ||
Amortization of prior service costs | 0 | ||
Impact of foreign currency translation | 2.3 | ||
Net change | 11.9 | ||
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Unrecognized actuarial loss | 1.2 | ||
Amortization of actuarial gain/(loss) | (0.4) | ||
Unrecognized prior service costs | 0 | ||
Amortization of prior service costs | 0 | ||
Impact of foreign currency translation | 0 | ||
Net change | $ 0.8 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.6 | ||
Interest cost | 1.5 | ||
Expected return on plan assets | 0 | ||
Plan curtailment, settlement and termination | 0 | ||
Amortization of prior service costs included in SG&A | 0 | ||
Recognized net actuarial losses | 0.2 | ||
Net periodic benefit cost | 2.3 | ||
Other Pension, Postretirement and Supplemental Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1.2 | $ 0.6 | |
Interest cost | 1.4 | 1.5 | |
Expected return on plan assets | 0 | 0 | |
Plan curtailment, settlement and termination | 0 | 3.2 | |
Amortization of prior service costs included in SG&A | 0 | 0 | |
Recognized net actuarial losses | 0.3 | 0.2 | |
Net periodic benefit cost | 2.9 | 5.5 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 23.5 | 20.7 | 19.2 |
Interest cost | 13.5 | 13.6 | 13 |
Expected return on plan assets | (19.9) | (12.1) | (14.4) |
Plan curtailment, settlement and termination | 1.1 | (0.3) | (0.1) |
Amortization of prior service costs included in SG&A | 0 | 0.9 | 0.3 |
Recognized net actuarial losses | 0.4 | (0.8) | (0.1) |
Net periodic benefit cost | 18.6 | 22 | $ 17.9 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1.1 | 0.6 | |
Interest cost | $ 1.4 | $ 1.5 |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes in Projected Benefit Obligations, Plan Assets and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Projected benefit obligation, beginning of year | |||
Service cost | $ 0.6 | ||
Interest cost | 1.5 | ||
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | $ 315.7 | ||
Fair value of plan assets, end of year | 1,354.6 | $ 315.7 | |
Pension Benefits | |||
Projected benefit obligation, beginning of year | |||
Projected benefit obligation, beginning of year | 674.7 | 635.4 | |
Service cost | 23.5 | 20.7 | 19.2 |
Interest cost | 13.5 | 13.6 | 13 |
Participant contributions | 1.8 | 1 | |
Acquisitions | 1,389.4 | 0.8 | |
Plan settlements and terminations | (23.1) | (23.8) | |
Actuarial losses (gains) | 37.2 | 57.3 | |
Benefits paid | (24.6) | (23.9) | |
Impact of foreign currency translation | 53.4 | (6.4) | |
Projected benefit obligation, end of year | 2,145.8 | 674.7 | 635.4 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 315.7 | 283.5 | |
Actual return on plan assets | 46 | 39.2 | |
Company contributions | 58.2 | 26.4 | |
Participant contributions | 1.8 | 1 | |
Defined Benefit Plan, Plan Assets, Business Combination | 959.3 | 0 | |
Plan settlements | (23.1) | (8.9) | |
Other | 0 | (1.9) | |
Impact of foreign currency translation | 21.3 | 0.3 | |
Fair value of plan assets, end of year | 1,354.6 | 315.7 | 283.5 |
Funded status of plans | (791.2) | (359) | |
Other Postretirement Benefits | |||
Projected benefit obligation, beginning of year | |||
Projected benefit obligation, beginning of year | 33.8 | 34 | |
Service cost | 1.1 | 0.6 | |
Interest cost | 1.4 | 1.5 | |
Participant contributions | 0.1 | 0.2 | |
Acquisitions | 153.1 | 0 | |
Plan settlements and terminations | (0.2) | (7.1) | |
Actuarial losses (gains) | 1.1 | 7.1 | |
Benefits paid | (1.6) | (2.5) | |
Impact of foreign currency translation | 0 | 0 | |
Projected benefit obligation, end of year | 188.8 | 33.8 | 34 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 1.7 | 9.4 | |
Participant contributions | 0.1 | 0.2 | |
Defined Benefit Plan, Plan Assets, Business Combination | 0 | 0 | |
Plan settlements | (0.2) | (7.1) | |
Other | 0 | 0 | |
Impact of foreign currency translation | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | $ 0 |
Funded status of plans | $ (188.8) | $ (33.8) |
Employee Benefit Plans (Net Acc
Employee Benefit Plans (Net Accrued Benefit Costs Classification on Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Noncurrent assets | $ 70.7 | $ 24.8 |
Current liabilities | (15.1) | (11.9) |
Noncurrent liabilities | (846.8) | (371.9) |
Net accrued benefit costs | (791.2) | (359) |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (16.3) | (2) |
Noncurrent liabilities | (172.5) | (31.8) |
Net accrued benefit costs | $ (188.8) | $ (33.8) |
Employee Benefit Plans (Plans w
Employee Benefit Plans (Plans with PBO in Excess of Plan Assets) (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 1,747.2 | $ 476.3 |
Accumulated benefit obligation | 1,678.2 | 454.4 |
Fair value of plan assets | $ 893.9 | $ 94.4 |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Values of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 1,354.6 | $ 315.7 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 51.8 | 3.9 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 613.4 | 89.3 |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 592 | 179.9 |
Assets held by insurance companies and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 97.4 | 42.6 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 493.1 | 176.5 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 51.2 | 3.4 |
Level 1 | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 145.3 | 33.8 |
Level 1 | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 292.6 | 138 |
Level 1 | Assets held by insurance companies and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4 | 1.3 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 788.1 | 111.7 |
Level 2 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.6 | 0.5 |
Level 2 | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 468.1 | 55.5 |
Level 2 | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 299.4 | 41.9 |
Level 2 | Assets held by insurance companies and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 20 | 13.8 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 73.4 | 27.5 |
Level 3 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Assets held by insurance companies and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 73.4 | $ 27.5 |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted Average Assumptions) (Details) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2019 | |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 1.90% | 1.60% | ||
Expected return on plan assets | 4.30% | 4.30% | ||
Rate of compensation increase | 2.90% | 2.90% | ||
Discount rate | 1.60% | 2.30% | 2.00% | |
Expected return on plan assets | 4.30% | 4.30% | 4.90% | |
Rate of compensation increase | 2.70% | 2.90% | 2.90% | |
Other Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 1.90% | 3.30% | ||
Expected return on plan assets | 0.00% | 0.00% | ||
Rate of compensation increase | 0.00% | 0.00% | ||
Discount rate | 3.30% | 4.30% | 3.70% | |
Expected return on plan assets | 0.00% | 0.00% | 0.00% | |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Employee Benefit Plans (Estimat
Employee Benefit Plans (Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2019 | $ 104.5 |
2020 | 102.3 |
2021 | 104.9 |
2022 | 108.6 |
2023 | 106.9 |
Thereafter | 526.2 |
Total | 1,053.4 |
Other Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2019 | 16.4 |
2020 | 16.6 |
2021 | 16.5 |
2022 | 16.6 |
2023 | 16.3 |
Thereafter | 71.4 |
Total | $ 153.8 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Information to Total Consolidated Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 11,819.9 | $ 11,370.3 | $ 11,268.7 |
Segment profitability | (210.8) | 715.5 | 905.6 |
Intangible asset amortization expense | (1,605.8) | (1,582.7) | (1,606.4) |
Globally managed research and development costs | (555.1) | (639.9) | (704.5) |
Litigation settlements & other contingencies | (107.8) | 21.4 | 49.5 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 11,819.9 | 11,370.3 | |
Segment profitability | 5,271.6 | 5,112.3 | 5,352.5 |
Segment Reconciling | |||
Segment Reporting Information [Line Items] | |||
Intangible asset amortization expense | (1,605.8) | (1,582.7) | (1,606.4) |
Intangible asset impairment charges | (82.4) | (180.6) | (224) |
Globally managed research and development costs | (555.1) | (639.9) | (704.5) |
Litigation settlements & other contingencies | (107.8) | 21.4 | 49.5 |
Transaction related and other special items | (1,739.7) | (682.2) | (515.5) |
Corporate (Other) | |||
Segment Reporting Information [Line Items] | |||
Corporate costs | (1,391.6) | (1,332.8) | (1,446) |
Developed Markets | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 8,510.9 | 8,240 | 8,289.1 |
Segment profitability | 4,243.9 | 4,137.3 | 4,270.1 |
Greater China | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 259.9 | 214.6 | 168.1 |
Segment profitability | 52.7 | 89.9 | 71.9 |
JANZ | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,195.3 | 1,192.5 | 1,132.8 |
Segment profitability | 364.6 | 323.2 | 363.1 |
Emerging Markets | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,853.8 | 1,723.2 | 1,678.7 |
Segment profitability | $ 610.4 | $ 561.9 | $ 647.4 |
Segment Information (Third Part
Segment Information (Third Party Net Sales by Major Customers) (Details) - Third party net sales | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
McKesson Corporation | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 13.00% | 15.00% | 12.00% |
AmeriSourceBergen Corporation | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 10.00% | 9.00% | 8.00% |
Cardinal Health Inc | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 8.00% | 8.00% | 8.00% |
Segment Information (Net Third
Segment Information (Net Third Party Sales Classified Based on Geographic Location of Entity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 11,819.9 | $ 11,370.3 | $ 11,268.7 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3,746.1 | 3,965.9 | 3,865.2 |
India | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,155.4 | 1,171.1 | 1,164.8 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,070.8 | $ 1,047.6 | $ 1,092.7 |
Commitments (Details)
Commitments (Details) - Pfizer, Inc. $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Other Commitments [Line Items] | |
Reimbursement amount, tranche one | $ 380 |
Amounts incurred | 53.1 |
Amounts accrued | $ 26.9 |
Transition Service Agreements | |
Other Commitments [Line Items] | |
Limited transition services period | 24 months |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | 60 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Payments for Restructuring | $ (25.7) | $ (59.4) | |||
Restructuring Reserve, Period Increase (Decrease) | (8.1) | ||||
Restructuring and Related Cost, Incurred Cost | (32.9) | (78.3) | |||
Restructuring Reserve, Translation and Other Adjustment | 1.7 | (2.2) | |||
Restructuring and Related Cost, Cost Incurred to Date | 50.5 | 104.6 | [1] | ||
Restructuring Reserve | 22.8 | 29.2 | $ 22.8 | $ 72.6 | |
2016 Restructuring Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 733 | ||||
Employee Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments for Restructuring | (18.1) | (48.9) | |||
Restructuring Reserve, Period Increase (Decrease) | 0 | ||||
Restructuring and Related Cost, Incurred Cost | 0 | 0 | |||
Restructuring Reserve, Translation and Other Adjustment | 1.8 | (2.1) | |||
Restructuring and Related Cost, Cost Incurred to Date | 9.9 | 16.6 | [1] | ||
Restructuring Reserve | 20 | 26.4 | 20 | 60.8 | |
Other Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments for Restructuring | (7.6) | (10.5) | |||
Restructuring Reserve, Period Increase (Decrease) | (8.1) | ||||
Restructuring and Related Cost, Incurred Cost | (32.9) | (78.3) | |||
Restructuring Reserve, Translation and Other Adjustment | (0.1) | (0.1) | |||
Restructuring and Related Cost, Cost Incurred to Date | 40.6 | 88 | [1] | ||
Restructuring Reserve | 2.8 | 2.8 | $ 2.8 | $ 11.8 | |
Developed Markets | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 292.1 | 100.4 | |||
JANZ | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 2.9 | $ 4.2 | |||
Greater China | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | $ 18.4 | ||||
[1] | For the year ended December 31, 2020, total restructuring charges, for both programs, in Developed Markets, Greater China, JANZ, and Emerging Markets were approximately $292.1 million, $18.4 million, $2.9 million and $8.4 million, respectively. For the year ended December 31, 2019, total restructuring charges in Developed Markets and JANZ were approximately $100.4 million and $4.2 million respectively. |
Restructuring (2020 Restructuri
Restructuring (2020 Restructuring Plan) (Details) agreement in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020USD ($)facilityagreement | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 22.8 | $ 22.8 | $ 29.2 | $ 72.6 | |
Payments for Restructuring | (25.7) | (59.4) | |||
Restructuring and Related Cost, Incurred Cost | (32.9) | (78.3) | |||
Restructuring Reserve, Translation and Other Adjustment | 1.7 | (2.2) | |||
Restructuring and Related Cost, Cost Incurred to Date | 50.5 | 104.6 | [1] | ||
Restructuring and Related Cost, Expected Number of Positions Eliminated | agreement | 45 | ||||
Employee Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 20 | 20 | 26.4 | 60.8 | |
Payments for Restructuring | (18.1) | (48.9) | |||
Restructuring and Related Cost, Incurred Cost | 0 | 0 | |||
Restructuring Reserve, Translation and Other Adjustment | 1.8 | (2.1) | |||
Restructuring and Related Cost, Cost Incurred to Date | 9.9 | 16.6 | [1] | ||
Other Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 2.8 | 2.8 | 2.8 | $ 11.8 | |
Payments for Restructuring | (7.6) | (10.5) | |||
Restructuring and Related Cost, Incurred Cost | (32.9) | (78.3) | |||
Restructuring Reserve, Translation and Other Adjustment | (0.1) | (0.1) | |||
Restructuring and Related Cost, Cost Incurred to Date | 40.6 | $ 88 | [1] | ||
2020 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 267.4 | 267.4 | |||
Payments for Restructuring | (25.5) | ||||
Restructuring and Related Cost, Incurred Cost | (70.8) | ||||
Restructuring Reserve, Translation and Other Adjustment | 0.4 | ||||
Restructuring and Related Cost, Cost Incurred to Date | $ 1,000 | 271.3 | |||
Restructuring Reserve, Acquired During Period | 92 | ||||
Restructuring and Related Cost, Expected Number of Facilities to be Eliminated | facility | 15 | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated, Percent | 20.00% | ||||
2020 Restructuring Plan | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | $ 1,100 | ||||
Restructuring Reserve, Settled without Cash | 350 | ||||
Restructuring and Related Cost, Expected Cost Remaining | 750 | 750 | |||
2020 Restructuring Plan | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 1,400 | ||||
Restructuring Reserve, Settled without Cash | 450 | ||||
Restructuring and Related Cost, Expected Cost Remaining | 950 | 950 | |||
2020 Restructuring Plan | Employee Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 262.6 | 262.6 | |||
Payments for Restructuring | (25.1) | ||||
Restructuring and Related Cost, Incurred Cost | 0 | ||||
Restructuring Reserve, Translation and Other Adjustment | 0.4 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 195.6 | ||||
Restructuring Reserve, Acquired During Period | 91.7 | ||||
2020 Restructuring Plan | Other Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 4.8 | 4.8 | |||
Payments for Restructuring | (0.4) | ||||
Restructuring and Related Cost, Incurred Cost | (70.8) | ||||
Restructuring Reserve, Translation and Other Adjustment | 0 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 75.7 | ||||
Restructuring Reserve, Acquired During Period | $ 0.3 | ||||
[1] | For the year ended December 31, 2020, total restructuring charges, for both programs, in Developed Markets, Greater China, JANZ, and Emerging Markets were approximately $292.1 million, $18.4 million, $2.9 million and $8.4 million, respectively. For the year ended December 31, 2019, total restructuring charges in Developed Markets and JANZ were approximately $100.4 million and $4.2 million respectively. |
Collaboration and Licensing A_2
Collaboration and Licensing Agreements (Narrative) (Details) $ in Millions | Feb. 27, 2019USD ($) | Sep. 20, 2018USD ($) | Jan. 08, 2016USD ($)drugs | Jan. 30, 2015USD ($) | Feb. 12, 2013Product | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Contingent consideration liability | $ 250.7 | $ 223.6 | $ 250.7 | $ 355.3 | ||||||
Research and development | 555.1 | 639.9 | 704.5 | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | 25 | |||||||||
Momenta | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Number of drugs | drugs | 6 | |||||||||
Upfront payments | $ 45 | |||||||||
Research and development | 18.2 | $ 14.1 | $ 13.4 | |||||||
Theravance | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront payments | 18.5 | |||||||||
FKB | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Development and sales milestone payments | $ 10 | |||||||||
Upfront payments | $ 33 | $ 25 | ||||||||
Research and development | $ 23.3 | |||||||||
Maximum | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Development and sales milestone payments | 380 | |||||||||
Maximum | Theravance | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Development and sales milestone payments | $ 293 | |||||||||
Fiscal Year 2017 | Maximum | Collaborative Arrangement | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Development and sales milestone payments | 40 | |||||||||
Generic Biologic Compounds Collaboration [Member] | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Insulin Analog Products | Product | 3 | |||||||||
Respiratory delivery platform [Member] | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Contingent consideration liability | 204.9 | |||||||||
Product rights and licenses | Other companies | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront payments | $ 20 | $ 160 | ||||||||
Acquisition purchase price | $ 220 | $ 10 |
Litigation (Narrative) (Details
Litigation (Narrative) (Details) case in Thousands, € in Millions, £ in Millions, $ in Millions | Jun. 17, 2019patentagreement | Jun. 17, 2019patent | Sep. 10, 2018patent | Oct. 24, 2017patent | Jun. 30, 2017patent | Feb. 12, 2016GBP (£) | Jul. 09, 2014EUR (€) | Jun. 19, 2013EUR (€) | Sep. 30, 2015USD ($) | Dec. 31, 2020USD ($)casestateincreaseagreement | Dec. 31, 2020GBP (£)statecase | Jun. 10, 2020state | Apr. 02, 2020patent | Dec. 31, 2019GBP (£) | Jun. 30, 2018USD ($) |
Loss Contingencies [Line Items] | |||||||||||||||
Number of cases | case | 1 | 1 | |||||||||||||
Product Liability | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss contingency accrual | $ 90.5 | ||||||||||||||
Intellectual Property | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss contingency accrual | $ 204.3 | ||||||||||||||
Number of times damages may be increased in cases of willful infringement | increase | 3 | ||||||||||||||
Other Foreign Operations | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss contingency accrual | $ 14.8 | ||||||||||||||
MDL | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of states | state | 47 | 47 | |||||||||||||
Anticompetitive Conduct with Doxycycline Hyclate Delayed Release, Doxycycline Monohydrate, Glipizide-Metformin and Verapamil | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of states | state | 37 | 37 | |||||||||||||
Anticompetitive Conduct with Generic Drugs | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of states | state | 48 | 48 | |||||||||||||
Amended Anticompetitive Conduct with Generic Drugs | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of states | state | 43 | 43 | |||||||||||||
Anticompetitive conduct with respect to additional generic drugs | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of states | state | 46 | ||||||||||||||
EU Commission Proceedings Perindorpril | Antitrust Proceedings | Mylan Laboratories Limited | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss contingency accrual | € | € 17.2 | ||||||||||||||
EU Commission Proceedings Perindorpril | Antitrust Proceedings | Mylan | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss contingency accrual | $ 21.7 | ||||||||||||||
U.K. Competition and Markets Authority Proceedings Paroxetine | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damages awarded | £ | £ 5.8 | ||||||||||||||
U.K. Competition and Markets Authority Proceedings Paroxetine | Mylan | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss contingency accrual | £ | £ 10.1 | £ 2.7 | |||||||||||||
Damages awarded | £ | £ 2.7 | ||||||||||||||
EU Commission Proceedings Citalopram | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss contingency accrual | $ 7.4 | ||||||||||||||
Damages awarded | € | € 7.8 | ||||||||||||||
Dimethyl Fumarate | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 6 | ||||||||||||||
Insulin Glargine | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 5 | 18 | |||||||||||||
Loss Contingency, Patents Found Not Infringed, Number | 12 | 3 | |||||||||||||
Loss Contingency, Remaining Claims, Number | patent | 4 | 4 | 2 | 2 | |||||||||||
Loss Contingency, Other Asserted Patents, Number | patent | 16 | 16 | |||||||||||||
EpiPen Auto-Injector Litigation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss Contingency, Number of States | agreement | 17 | ||||||||||||||
EpiPen Auto-Injector Litigation | Other current liabilities | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Estimated Litigation Liability | $ 10 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 72.8 | $ 98.2 | $ 75.3 |
Additions Charged to Costs and Expenses | 16.9 | 14.2 | 32.3 |
Additions Charged to Other Accounts | 77.3 | 0 | 0.2 |
Deductions | (7.1) | (39.6) | (9.6) |
Ending balance | 159.9 | 72.8 | 98.2 |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 603.5 | 806 | 662.8 |
Additions Charged to Costs and Expenses | 39 | 36.8 | 203.8 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (198.9) | (239.3) | (60.6) |
Ending balance | $ 443.6 | $ 603.5 | $ 806 |