Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 21, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-39695 | ||
Entity Registrant Name | VIATRIS INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-4364296 | ||
Entity Address, Address Line One | 1000 Mylan Boulevard | ||
Entity Address, City or Town | Canonsburg | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15317 | ||
City Area Code | (724) | ||
Local Phone Number | 514-1800 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | VTRS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||
Entity Public Float | $ 11,936,712,582 | ||
Entity Common Stock, Shares Outstanding | 1,187,569,149 | ||
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 | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Pittsburgh, Pennsylvania |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 991.9 | $ 1,259.9 |
Accounts receivable, net | 3,700.4 | 3,814.5 |
Inventories | 3,469.7 | 3,519.5 |
Prepaid expenses and other current assets | 2,028.1 | 1,811.2 |
Assets held for sale | 2,786 | 230.3 |
Total current assets | 12,976.1 | 10,635.4 |
Property, plant and equipment, net | 2,759.6 | 3,024.5 |
Intangible assets, net | 19,181.1 | 22,607.1 |
Goodwill | 9,867.1 | 10,425.8 |
Deferred income tax benefit | 692.9 | 925.9 |
Other assets | 2,208.7 | 2,403.5 |
Total assets | 47,685.5 | 50,022.2 |
Current liabilities: | ||
Accounts payable | 1,938.2 | 1,766.6 |
Income taxes payable | 226.8 | 279.6 |
Current portion of long-term debt and other long-term obligations | 1,943.4 | 1,259.1 |
Liabilities held for sale | 275.1 | 0 |
Other current liabilities | 3,393.9 | 3,440.9 |
Total current liabilities | 7,777.4 | 6,746.2 |
Long-term debt | 16,188.1 | 18,015.2 |
Deferred income tax liability | 1,735.7 | 2,432 |
Other long-term obligations | 1,516.9 | 1,756.5 |
Total liabilities | 27,218.1 | 28,949.9 |
Viatris Inc. shareholders’ equity | ||
Common stock: $0.01 par value, 3,000,000,000 shares authorized; shares issued: 1,221,994,491 and 1,213,793,231, respectively | 12.2 | 12.1 |
Additional paid-in capital | 18,814.7 | 18,645.8 |
Retained earnings | 4,639.7 | 5,175.6 |
Accumulated other comprehensive loss | (2,747.4) | |
Stockholders Equity Parent Before Treasury Stock | 20,719.2 | 21,072.3 |
Less: Treasury stock - at cost | 251.8 | 0 |
Total equity | 20,467.4 | 21,072.3 |
Total liabilities and equity | $ 47,685.5 | $ 50,022.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2023 $ / shares shares |
Ordinary shares, par value (in USD per share) | $ / shares | $ 0.01 |
Ordinary shares, number of shares authorized (in shares) | 3,000,000,000 |
Common Stock | |
Shares issued (in shares) | 1,221,994,491 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Net sales | $ 15,388.4 | $ 16,218.1 | $ 17,813.6 |
Total revenues | 15,426.9 | 16,262.7 | 17,886.3 |
Cost of sales | 8,988.3 | 9,765.7 | 12,310.8 |
Gross profit | 6,438.6 | 6,497 | 5,575.5 |
Operating expenses: | |||
Research and development | 805.2 | 662.2 | 681 |
Acquired IPR&D | 105.5 | 36.4 | 70.1 |
Selling, general and administrative | 4,650.1 | 4,179.1 | 4,529.2 |
Litigation settlements and other contingencies, net | 111.6 | 4.4 | 329.2 |
Total operating expenses | 5,672.4 | 4,882.1 | 5,609.5 |
Earnings (loss) from operations | 766.2 | 1,614.9 | (34) |
Interest expense | 573.1 | 592.4 | 636.2 |
Other income, net | (9.8) | (1,790.7) | (5.8) |
Earnings (loss) before income taxes | 202.9 | 2,813.2 | (664.4) |
Income tax provision | 148.2 | 734.6 | 604.7 |
Net earnings (loss) | $ 54.7 | $ 2,078.6 | $ (1,269.1) |
Earnings (loss) per share attributable to Viatris Inc. shareholders | |||
Basic (in USD per share) | $ 0.05 | $ 1.71 | $ (1.05) |
Diluted (in USD per share) | $ 0.05 | $ 1.71 | $ (1.05) |
Weighted average shares outstanding: | |||
Basic (in shares) | 1,208.8 | ||
Diluted (in shares) | 1,208.8 | ||
Net sales | |||
Revenues: | |||
Net sales | $ 15,388.4 | $ 16,218.1 | $ 17,813.6 |
Other revenues | |||
Revenues: | |||
Other revenues | $ 38.5 | $ 44.6 | $ 72.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net loss | $ 54.7 | $ 2,078.6 | $ (1,269.1) |
Other comprehensive (loss), before tax: | |||
Foreign currency translation adjustment | 139.2 | (1,583.5) | (1,340.9) |
Change in unrecognized (loss) gain and prior service cost related to defined benefit plans | (18.7) | 279.1 | 73.9 |
Net unrealized gain (loss) on available-for-sale fixed income securities | 1.5 | (2.8) | (1.1) |
Other comprehensive loss, before tax | (42.6) | (884) | (775.2) |
Income tax (benefit) provision | (56.4) | 132.9 | 111.1 |
Other comprehensive earnings (loss), net of tax | 13.8 | (1,016.9) | (886.3) |
Comprehensive earnings (loss) | 68.5 | 1,061.7 | (2,155.4) |
Cash flow hedging relationships | |||
Other comprehensive (loss), before tax: | |||
Net unrecognized gain (loss) on derivatives in hedging relationships | 13.9 | (36.9) | 36.1 |
Net Investment Hedging | |||
Other comprehensive (loss), before tax: | |||
Net unrecognized gain (loss) on derivatives in hedging relationships | $ (178.5) | $ 460.1 | $ 456.8 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2020 | $ 22,954,100 | $ 12,100 | $ 18,438,800 | $ 5,361,200 | $ (858,000) | |
Balance (in shares) at Dec. 31, 2020 | 1,206,895,644 | |||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2020 | 0 | |||||
Treasury stock, beginning balance at Dec. 31, 2020 | $ 0 | |||||
Net earnings (loss) | (1,269,100) | (1,269,100) | ||||
Other comprehensive loss, net of tax | (886,300) | (886,300) | ||||
Share-based compensation expense | 111,200 | 111,200 | ||||
Issuance of restricted stock, net (in shares) | 2,611,819 | |||||
Taxes related to the net share settlement of equity awards | (13,900) | (13,900) | ||||
Cash dividends declared | (403,300) | (403,300) | ||||
Balance at Dec. 31, 2021 | 20,492,700 | $ 12,100 | 18,536,100 | 3,688,800 | (1,744,300) | |
Balance (in shares) at Dec. 31, 2021 | 1,209,507,463 | |||||
Treasury stock, ending balance (in shares) at Dec. 31, 2021 | 0 | |||||
Treasury stock, ending balance at Dec. 31, 2021 | $ 0 | |||||
Net earnings (loss) | 2,078,600 | 2,078,600 | ||||
Other comprehensive loss, net of tax | (1,016,900) | (1,016,900) | ||||
Share-based compensation expense | 116,400 | 116,400 | ||||
Issuance of restricted stock, net (in shares) | 3,972,427 | |||||
Issuance of restricted stock and stock options exercised, net | 1,600 | 1,600 | ||||
Taxes related to the net share settlement of equity awards | (11,600) | (11,600) | ||||
Issuance of common stock | 3,300 | 3,300 | ||||
Issuance of common stock (in shares) | 313,341 | |||||
Cash dividends declared | (591,800) | (591,800) | ||||
Balance at Dec. 31, 2022 | 21,072,300 | $ 12,100 | 18,645,800 | 5,175,600 | ||
Balance (in shares) at Dec. 31, 2022 | 1,213,793,231 | |||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | 0 | |||||
Treasury stock, ending balance at Dec. 31, 2022 | 0 | $ 0 | ||||
Net earnings (loss) | 54,700 | 54,700 | ||||
Other comprehensive loss, net of tax | 13,800 | 13,800 | ||||
Share-based compensation expense | 180,700 | 180,700 | ||||
Issuance of restricted stock, net (in shares) | 7,892,041 | |||||
Issuance of restricted stock and stock options exercised, net | 5,200 | $ 100 | 5,100 | |||
Common stock repurchase | (251,800) | $ (251,800) | ||||
Common stock repurchase (in shares) | 21,239,521 | |||||
Taxes related to the net share settlement of equity awards | (26,100) | (26,100) | ||||
Issuance of common stock | 3,100 | 3,100 | ||||
Issuance of common stock (in shares) | 309,219 | |||||
Cash dividends declared | (590,600) | (590,600) | ||||
Other | 6,100 | |||||
Balance at Dec. 31, 2023 | 20,467,400 | $ 12,200 | $ 18,814,700 | $ 4,639,700 | $ (2,747,400) | |
Balance (in shares) at Dec. 31, 2023 | 1,221,994,491 | |||||
Treasury stock, ending balance (in shares) at Dec. 31, 2023 | 21,239,521 | |||||
Treasury stock, ending balance at Dec. 31, 2023 | $ (251,800) | $ (251,800) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net earnings (loss) | $ 54.7 | $ 2,078.6 | $ (1,269.1) |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 2,740.5 | 3,027.6 | 4,506.5 |
Deferred income tax expense (benefit) | (387.1) | (25.9) | 675.7 |
Litigation settlements and other contingencies, net | 86.8 | (1.7) | 323.7 |
Loss from equity method investments | 0 | 0 | 61.9 |
Loss (gain) on disposal of business | 239.9 | (1,754.1) | 0 |
Share-based compensation expense | 180.7 | 116.4 | 111.2 |
Other non-cash items | 595.4 | 434.3 | 411.8 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 78.6 | (240.3) | 59.3 |
Inventories | (613.3) | (259.5) | (427.6) |
Trade accounts payable | 314.7 | 170.2 | (70.4) |
Income taxes | (76.7) | 25.3 | (699.6) |
Other operating assets and liabilities, net | (414.6) | (618.3) | (666.5) |
Net cash provided by operating activities | 2,799.6 | 2,952.6 | 3,016.9 |
Cash flows from investing activities: | |||
Cash (paid) received for acquisitions, net of cash acquired | (667.7) | 0 | 277 |
Capital expenditures | (377) | (406) | (457.2) |
Payments for product rights and other, net | (97.5) | (37) | (52.2) |
Proceeds from sale of property, plant and equipment | 14 | 13.8 | 18.3 |
Proceeds from sale of assets and subsidiaries | 364.1 | 1,950 | 96.7 |
Purchase of marketable securities | (26.3) | (30.2) | (30.2) |
Proceeds from the sale of marketable securities | 26.3 | 29.9 | 29.8 |
Net cash (used in) provided by investing activities | (764.1) | 1,520.5 | (117.8) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 0.3 | 1,875.6 | 1,710.1 |
Payments of long-term debt | (1,250.2) | (3,662.5) | (4,201.3) |
Payments of financing fees | (0.5) | (1.9) | (7) |
Change in short-term borrowings, net | 0.3 | (1,493.2) | 392.1 |
Purchase of ordinary shares | (250) | 0 | 0 |
Taxes paid related to net share settlement of equity awards | (38.2) | (17.3) | (17.4) |
Contingent consideration payments | (8.4) | (18.9) | (28.6) |
Cash dividends paid | (575.6) | (581.6) | (399) |
Non-contingent payments for product rights | (9.7) | 0 | (456) |
Issuance of common stock | 3.1 | 3.3 | 0 |
Other items, net | (173) | 18.6 | (4.9) |
Net cash used in financing activities | (2,301.9) | (3,877.9) | (3,012) |
Effect on cash of changes in exchange rates | (2.5) | (38.9) | (30.9) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (268.9) | 556.3 | (143.8) |
Cash, cash equivalents and restricted cash — beginning of period | 1,262.5 | 706.2 | 850 |
Cash, cash equivalents and restricted cash — end of period | 993.6 | 1,262.5 | 706.2 |
Cash paid during the period for: | |||
Income taxes | 570.9 | 735.2 | 641.7 |
Interest | $ 611.6 | $ 642.5 | $ 684.8 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | |||||||||||||
Dec. 15, 2023 | Sep. 15, 2023 | Jun. 16, 2023 | Mar. 17, 2023 | Dec. 16, 2022 | Sep. 16, 2022 | Jun. 16, 2022 | Mar. 16, 2022 | Dec. 16, 2021 | Sep. 16, 2021 | Jun. 16, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||||||
Dividends paid per share (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.48 | $ 0.48 | $ 0.33 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Viatris is a global healthcare company which we believe is uniquely positioned to bridge the traditional divide between generics and brands, combining the best of both to more holistically address healthcare needs globally. With a mission to empower people worldwide to live healthier at every stage of life, Viatris provides access at scale, supplying high-quality medicines to patients around the world and touching all of life’s moments, from birth to the end of life, acute conditions to chronic diseases. With our exceptionally extensive and diverse portfolio of medicines, a one-of-a-kind global supply chain designed to reach more people when and where they need them, and the scientific expertise to address some of the world's most enduring health challenges, access takes on deep meaning at Viatris. As of December 31, 2023, Viatris’ portfolio comprised more than 1,400 approved molecules across a wide range of key therapeutic areas, including globally recognized iconic and key brands and generics, including complex products, and the Company operated approximately 40 manufacturing sites worldwide that produce oral solid doses, injectables, complex dosage forms and APIs. We conduct our business through four segments: Developed Markets, Greater China, JANZ, and Emerging Markets. Viatris is headquartered in the U.S., with global centers in Pittsburgh, Pennsylvania, Shanghai, China and Hyderabad, India. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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. 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. Under ASC 830, Foreign Currency Matters (“ASC 830”), a highly inflationary economy is one that has cumulative inflation of approximately 100% or more over a three-year period. Effective April 1, 2022, we classified Turkey as highly inflationary and began to utilize the U.S. dollar as our functional currency in Turkey, which historically utilized the Turkish lira as the functional currency. Application of the guidance in ASC 830 did not have a material impact on our consolidated financial statements for the years ended December 31, 2023 and 2022. 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 income, 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, with gains and losses included in Other income, net in the consolidated statements of operations. 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. Changes in the fair value of equity securities are recorded in Other income, net in the consolidated statements of operations . Investments in equity securities with readily determinable fair values are recorded at fair value. Investments in equity securities without readily determinable fair values for which the Company has elected to utilize the measurement alternative under ASC 321, Investments - Equity Securities 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 income, 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 ASC 805, Business Combinations , 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, including milestone payments related to development compounds due upon receipt of regulatory approvals, 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 intangible assets, principally IPR&D acquired as part of business combinations, 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 liabilities resulting from business acquisitions or divestitures at its estimated fair value on the acquisition or divestiture 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, operating results, 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 or divestiture 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. Viatris records contingent consideration assets resulting from divestitures when the contingent consideration is resolved. 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. Divestitures. For businesses that are divested, including divestitures of products that qualify as a business, the Company records the net gain or loss on the sale within Other income, net , and allocates the relative fair value of goodwill associated with the businesses in the determining the gain or loss on sale. Any resulting goodwill impairment is recorded within SG&A. The Company records amounts received as part of TSAs within Other income, net For divestitures of products that qualify as assets, the Company records the gain or loss on sale within SG&A. Short-Term Borrowings. The Company’s subsidiaries in India have working capital facilities with several banks which are secured by its current assets. The Company also has the CP Notes, Receivables Facility 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, Revenue from Contracts with Customers . Under ASC 606, the Company recognizes net revenue for product sales when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are recorded net of provisions for variable consideration, including discounts, rebates, governmental rebate programs, price adjustments, returns, chargebacks, promotional programs and other sales allowances. Accruals for these provisions are presented in the 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 revenues in the consolidated statements of operations. Receivables, including deferred consideration, with terms in excess of one year are initially recorded at their net present value using discount rates reflecting the relative credit risk. Research and Development. R&D expenses are charged to operations as incurred. R&D expense consists of costs incurred in performing research and development activities, including but not limited to, compensation and benefits, facilities and overhead expense, clinical trial expense and fees paid to contract research organizations. Acquired IPR&D. Acquired IPR&D expense includes the initial cost of externally developed IPR&D projects, acquired directly in a transaction other than a business combination, that do not have an alternative future use. Additionally, the related milestone payment obligations that are incurred prior to regulatory approval of the compound are recorded as acquired IPR&D expense when the event triggering the obligation to pay the milestone occurs. 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. Basic and diluted earnings per share attributable to Viatris Inc. are calculated as follows: Year Ended December 31, (In millions, except per share amounts) 2023 2022 2021 Basic earnings (loss) attributable to Viatris Inc. common shareholders (numerator): Net earnings (loss) attributable to Viatris Inc. common shareholders $ 54.7 $ 2,078.6 $ (1,269.1) Shares (denominator): Weighted average shares outstanding 1,200.3 1,212.1 1,208.8 Basic earnings (loss) per share attributable to Viatris Inc. shareholders $ 0.05 $ 1.71 $ (1.05) Diluted earnings (loss) attributable to Viatris Inc. common shareholders (numerator): Net earnings (loss) attributable to Viatris Inc. common shareholders $ 54.7 $ 2,078.6 $ (1,269.1) Shares (denominator): Weighted average shares outstanding 1,200.3 1,212.1 1,208.8 Share-based awards 6.6 5.3 — Total dilutive shares outstanding 1,206.9 1,217.4 1,208.8 Diluted earnings (loss) per share attributable to Viatris Inc. shareholders $ 0.05 $ 1.71 $ (1.05) Additional stock awards and Restricted Stock Awards were outstanding during the years ended December 31, 2023, 2022 and 2021 but were not included in the computation of diluted earnings per share for each respective period because the effect would be anti-dilutive. Excluded shares 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 16.4 million, 11.8 million and 12.7 million shares for the years ended December 31, 2023, 2022 and 2021, respectively. The Company paid quarterly cash dividends of $0.12 per share on the Company’s issued and outstanding common stock on March 17, 2023, June 16, 2023, September 15, 2023 and December 15, 2023. On February 26, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share on the Company’s issued and outstanding common stock, which will be payable on March 18, 2024 to shareholders of record as of the close of business on March 11, 2024. The declaration and payment of future dividends to holders of the Company’s common stock will be at the discretion of the Board of Directors, and will depend upon factors, including but not limited to, the Company’s financial condition, earnings, capital requirements of its businesses, legal requirements, regulatory constraints, industry practice, and other factors that the Board of Directors deems relevant. The Company paid quarterly cash dividends of $0.12 per share on the Company’s issued and outstanding common stock on March 16, 2022, June 16, 2022, September 16, 2022 and December 16, 2022. The Company paid quarterly cash dividends of $0.11 per share on the Company’s issued and outstanding common stock on June 16, 2021, September 16, 2021, and December 16, 2021. On May 6, 2022, the Company announced that its Board of Directors had authorized a DRIP. The DRIP allows shareholders to automatically reinvest all or a portion of the cash dividends paid on their shares of the Company’s common stock and to make certain additional optional cash investments in the Company’s common stock. On February 28, 2022, the Company announced that its Board of Directors had authorized a share repurchase program for the repurchase of up to $1.0 billion of the Company’s shares of common stock. Such repurchases may be made from time-to-time at the Company’s discretion and effected by any means, including but not limited to, open market repurchases, pursuant to plans in accordance with Rules 10b5-1 or 10b-18 under the Exchange Act, privately negotiated transactions (including accelerated stock repurchase programs) or any combination of such methods as the Company deems appropriate. The program does not have an expiration date. During the year ended December 31, 2023, the Company repurchased approximately 21.2 million shares of common stock at a cost of approximately $250 million. In February 2024, the Company repurchased approximately 19.2 million shares of common stock at a cost of approximately $250 million. The Company did not repurchase any shares of common stock under the share repurchase program in 2022. The share repurchase program does not obligate the Company to acquire any particular amount of common stock. The Company announced that on February 26, 2024, its Board of Directors authorized a $1.0 billion increase to the Company’s previously announced $1.0 billion share repurchase program. As a result, the Company’s share repurchase program now authorizes the repurchase of up to $2.0 billion of the Company’s shares of common stock. The Company had repurchased a total of $500 million in shares through February 28, 2024 under the program. 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 or divestitures. 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 within the same line item in the consolidated statements of operations as the hedged item. When such instruments do not qualify for hedge accounting the changes in fair value are recorded in the consolidated statements of operations within Other income, 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 carries derivative instruments in the consolidated balance sheets at fair value, determined by reference to market data such as forward rates for currencies, implied volatility, 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 In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50), which requires entities to provide qualitative and quantitative disclosures about their supplier finance programs, including a rollforward of related obligations. We adopted this ASU effective January 1, 2023, with the exception of the amendment on rollforward information, which will be adopted in our fiscal year beginning on January 1, 2024 as set forth in ASU 2022-04. Refer to Note 6 Balance Sheet Components for additional information. The adoption of ASU 2022-04 did not affect the Company’s financial condition, results of operations or cash flows as the guidance only requires additional disclosures. In October 2021, the FASB issued Accounting Standards Update 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires entities (acquirers) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606. We adopted this ASU effective January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. Accounting Standards Issued Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which for a limited period of time adds ASC 848 to provide 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. On December 21, 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 until December 31, 2024. ASU 2022-06 became effective upon issuance. Entities can apply the provisions of ASU 2020-04 immediately, as applicable, and generally the provisions of the guidance are available through December 31, 2024 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 November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which includes amendments to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption is permitted. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires expanded income tax disclosures, including greater disaggregation of information in the effective tax rate reconciliation and of income taxes paid. The amendments in ASU 2023-09 are effective for all public entities for fiscal years beginning after December 15, 2024, with early adoption is permitted. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements |
Revenue Recognition and Account
Revenue Recognition and Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Accounts Receivable | Revenue Recognition and Accounts Receivable The following table presents the Company’s net sales by product category for each of our reportable segments for the years ended December 31, 2023, 2022, and 2021, respectively: (In millions) 2023 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 5,239.0 2,152.1 782.9 1,626.5 9,800.5 Generics 4,012.9 8.3 641.6 925.1 5,587.9 Total Viatris $ 9,251.9 $ 2,160.4 $ 1,424.5 $ 2,551.6 $ 15,388.4 (In millions) 2022 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 5,160.4 2,190.7 922.6 1,615.9 9,889.6 Generics 4,608.5 10.5 709.8 999.7 6,328.5 Total Viatris $ 9,768.9 $ 2,201.2 $ 1,632.4 $ 2,615.6 $ 16,218.1 (In millions) 2021 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 5,759.2 2,207.8 1,197.1 1,677.2 10,841.3 Generics 4,669.5 5.0 830.3 1,467.5 6,972.3 Total Viatris $ 10,428.7 $ 2,212.8 $ 2,027.4 $ 3,144.7 $ 17,813.6 ____________ (a) Amounts include the impact of foreign currency translations compared to the prior year period. (b) Amounts for the years ended December 31, 2022 and 2021 include approximately $601.1 million and $607.3 million, respectively, related to the biosimilars business which was contributed to Biocon Biologics in November 2022. The Company has not recognized the results of the biosimilars business in its consolidated financial statements subsequent to November 29, 2022. (c) As a result of the contribution of the biosimilars business to Biocon Biologics in November 2022, Complex Gx and Biosimilars , which were previously presented as a separate line item, are now included within Generics. Reclassifications were made to prior periods to conform to the current period presentation. The following table presents net sales on a consolidated basis for select key products for the years ended December 31, 2023, 2022, and 2021, respectively: Year Ended December 31, (In millions) 2023 2022 2021 Select Key Global Products Lipitor ® $ 1,559.3 $ 1,635.2 $ 1,663.2 Norvasc ® 732.4 775.1 824.7 Lyrica ® 556.5 623.8 728.5 EpiPen® Auto-Injectors 442.2 378.0 391.7 Viagra ® 428.8 458.9 533.8 Celebrex ® 330.6 338.1 344.4 Creon ® 304.9 304.0 309.8 Effexor ® 262.9 279.6 316.8 Zoloft ® 235.7 246.2 284.3 Xalabrands 193.2 195.1 226.0 Select Key Segment Products Yupelri ® $ 220.8 $ 202.1 $ 161.9 Dymista ® 200.0 179.8 168.0 Influvac ® 192.4 225.5 299.3 Amitiza ® 157.0 167.9 201.5 Xanax ® 154.8 156.5 185.9 ____________ (a) The Company does not disclose net sales for any products considered competitively sensitive. (b) Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches. (c) Amounts include the impact of foreign currency translations compared to the prior year period. (d) Refer to intellectual property matters included in Note 19 Litigation for additional information regarding Yupelri® and Amitiza®. Variable Consideration and Accounts Receivable The following table presents a reconciliation of gross sales to net sales by each significant category of variable consideration during the years ended December 31, 2023, 2022 and 2021, respectively: Year Ended December 31, (In millions) 2023 2022 2021 Gross sales $ 25,693.1 $ 27,662.1 $ 30,553.4 Gross to net adjustments: Chargebacks (5,457.9) (6,192.2) (5,530.1) Rebates, promotional programs and other sales allowances (3,857.6) (4,346.2) (6,135.6) Returns (223.2) (296.7) (384.6) Governmental rebate programs (766.0) (608.9) (689.5) Total gross to net adjustments $ (10,304.7) $ (11,444.0) $ (12,739.8) Net sales $ 15,388.4 $ 16,218.1 $ 17,813.6 ____________ (a) Amounts for the years ended December 31, 2022 and 2021 include the biosimilars business which was contributed to Biocon Biologics in November 2022. The Company has not recognized the results of the biosimilars business in its consolidated financial statements subsequent to November 29, 2022. The following is a rollforward of the categories of variable consideration during 2023: (In millions) Balance at December 31, 2022 Current Provision Related to Sales Made in the Current Period Acquisitions, Divestitures, and Other Checks/ Credits Issued to Third Parties Effects of Foreign Exchange Balance at December 31, 2023 Chargebacks $ 523.4 $ 5,457.9 $ (8.1) $ (5,443.6) $ 0.7 $ 530.3 Rebates, promotional programs and other sales allowances 1,284.2 3,857.6 20.6 (4,071.3) 11.8 1,102.9 Returns 513.4 223.2 (26.2) (286.8) 1.8 425.4 Governmental rebate programs 366.5 766.0 8.7 (726.3) 6.4 421.3 Total $ 2,687.5 $ 10,304.7 $ (5.0) $ (10,528.0) $ 20.7 $ 2,479.9 Accruals for these provisions are presented in the consolidated financial statements as reductions in determining net revenues and as a contra asset in accounts receivable, net (if settled via credit) and other current liabilities (if paid in cash). Accounts receivable are presented net of allowances relating to these provisions, which were comprised of the following at December 31, 2023 and 2022, respectively: (In millions) December 31, December 31, Accounts receivable, net $ 1,483.6 $ 1,798.7 Other current liabilities 996.3 888.8 Total $ 2,479.9 $ 2,687.5 We have not made and do not anticipate making any significant changes to the methodologies that we use to measure provisions for variable consideration; however, the balances within these reserves can fluctuate significantly through the consistent application of our methodologies. Historically, we have not recorded in any current period any material amounts related to adjustments made to prior period reserves. Accounts receivable, net was comprised of the following at December 31, 2023 and 2022, respectively: (In millions) December 31, 2023 December 31, 2022 Trade receivables, net $ 2,823.8 $ 3,243.8 Other receivables 876.6 570.7 Accounts receivable, net $ 3,700.4 $ 3,814.5 Total allowances for doubtful accounts were $118.8 million and $114.7 million at December 31, 2023 and 2022, respectively. Viatris performs ongoing credit evaluations of its customers and generally does not require collateral. Approximately 28% and 23% of the accounts receivable balances represent amounts due from three customers at December 31, 2023 and 2022, 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 $30.8 million and $34.7 million of accounts receivable as of December 31, 2023 and 2022, respectively, under these factoring arrangements. Additionally, in 2023, we entered into a similar arrangement for certain European countries. As of December 31, 2023, we have assigned and derecognized approximately $415.7 million of Trade Receivables, Net which are now included in Other Receivables . |
Acquisitions and Other Transact
Acquisitions and Other Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Other Transactions | Acquisitions and Other Transactions Oyster Point Acquisition During the first quarter of 2023, the Company completed the acquisition of Oyster Point for approximately $427.4 million in cash, which included $11 per share paid to Oyster Point stockholders through a tender offer, payment for vested share-based awards, and the repayment of the Oyster Point debt. Vested share-based awards to acquire Oyster Point common stock that were outstanding immediately prior to the closing of the acquisition were cancelled in exchange for the right to receive an amount in cash based upon a formula contained within the merger agreement. The unvested share-based awards were converted into Viatris share-based awards based upon a formula contained within the merger agreement. 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 were recorded at their respective estimated fair values at the acquisition date. During the year ended December 31, 2023, the Company incurred acquisition related costs of approximately $22.8 million, which were recorded primarily in SG&A in the consolidated statement of operations. During the year ended December 31, 2023, adjustments were made to the preliminary purchase price recorded at January 3, 2023, and are reflected as “Measurement Period Adjustments” in the table below. The U.S. GAAP purchase price was $392.7 million, net of cash acquired. The allocation of the purchase price to the assets acquired and liabilities assumed for Oyster Point is as follows: (In millions) Preliminary Purchase Price Allocation as of January 3, 2023 (a) Measurement Period Adjustments (b) Purchase Price Allocation as of December 31, 2023 (as adjusted) Current assets (excluding inventories and net of cash acquired) $ 26.9 $ — $ 26.9 Inventories 37.8 — 37.8 Property, plant and equipment 1.4 — 1.4 Identified intangible assets 334.0 — 334.0 Goodwill 5.9 0.8 6.7 Deferred income tax benefit 17.7 (0.8) 16.9 Other assets 7.7 — 7.7 Total assets acquired $ 431.4 $ — $ 431.4 Current liabilities 37.0 — 37.0 Other noncurrent liabilities 1.7 — 1.7 Net assets acquired (net of $34.7 of cash acquired) $ 392.7 $ — $ 392.7 __________ (a) As previously reported in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2023. (b) The measurement period adjustments were recorded in the fourth quarter of 2023 and are related to income taxes. The Company recorded a step-up in the fair value of inventory of approximately $29.3 million, which was fully amortized during the year ended December 31, 2023 and is included in Cost of sales in the consolidated statement of operations. The identified intangible assets of $334.0 million are comprised of product rights and licenses related to a commercial asset, Tyrvaya®, for the treatment of dry eye disease, that have an estimated useful life of 10 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 $6.7 million arising from the acquisition consisted largely of the value of the employee workforce and the expected value of products to be developed in the future. All of the goodwill was assigned to the Developed Markets segment. None of the goodwill recognized in this transaction is currently expected to be deductible for income tax purposes. The operating results of Oyster Point have been included in the Company’s consolidated statements of operations since the acquisition date. The total revenues of Oyster Point for the period from the acquisition date to December 31, 2023 were $41.7 million and net loss, net of tax, was approximately $163.1 million. The net loss for the period includes the effect of the purchase accounting adjustments and acquisition related costs. The following table presents supplemental unaudited pro forma information for the acquisition, as if it had occurred on January 1, 2022. The unaudited pro forma results reflect certain adjustments related to past operating performance and acquisition accounting adjustments, such as increased 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 acquisition. 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 date above, nor are they indicative of the future operating results of Viatris and its subsidiaries. Year Ended (Unaudited, in millions, except per share amounts) December 31, 2023 December 31, 2022 Total revenues $ 15,426.9 $ 16,283.4 Net earnings $ 93.8 $ 1,905.7 Earnings per share: Basic $ 0.08 $ 1.57 Diluted $ 0.08 $ 1.57 Weighted average shares outstanding: Basic 1,200.3 1,212.1 Diluted 1,206.9 1,217.4 Famy Life Sciences Acquisition On November 7, 2022, the Company entered into a definitive agreement to acquire the remaining equity shares of Famy Life Sciences, a privately-owned research company with a complementary portfolio of ophthalmology therapies under development, for consideration of $281 million. The Company had previously entered into a Master Development Agreement with Famy Life Sciences on December 20, 2019 under which the Company obtained rights with respect to acquiring certain pharmaceutical products and a 13.5% equity interest in Famy Life Sciences for $25.0 million. The investment was accounted for in accordance with ASC 321, Investments - Equity Securities . The transaction to acquire the remaining equity shares of Famy Life Sciences closed during the first quarter of 2023. The Company recognized a gain of $18.9 million during the first quarter of 2023 as a result of remeasuring its pre-existing 13.5% equity interest in Famy Life Sciences to fair value, which was recognized as a component of Other income, net in the consolidated statements of operations. 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 were recorded at their respective estimated fair values at the acquisition date. The U.S. GAAP purchase price allocated to the transaction was $325.0 million, which consisted of $281 million of cash consideration paid for the remaining equity shares and $43.9 million for the fair value of the pre-existing 13.5% equity interest. During the year ended December 31, 2023, an adjustment was made to the preliminary purchase price recorded at January 3, 2023, and is reflected as “Measurement Period Adjustments” in the table below. The allocation of the purchase price to the assets acquired and liabilities assumed for Famy Life Sciences is as follows: (In millions) Preliminary Purchase Price Allocation as of January 3, 2023 (a) Measurement Period Adjustments (b) Purchase Price Allocation as of December 31, 2023 (as adjusted) IPR&D $ 290.0 $ — $ 290.0 Goodwill 89.3 (0.1) 89.2 Total assets acquired $ 379.3 $ (0.1) $ 379.2 Current liabilities 2.2 — 2.2 Deferred tax liabilities 52.1 (0.1) 52.0 Net assets acquired (net of $0.2 of cash acquired) $ 325.0 $ — $ 325.0 __________ (a) As previously reported in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2023. (b) The measurement period adjustment was recorded in the fourth quarter of 2023 and is related to income taxes. The amount allocated to IPR&D represents an estimate of the fair value of purchased in-process technology for research projects that, as of the closing date of the acquisition, had not reached technological feasibility and had no alternative future use. The fair value of IPR&D of $290.0 million was based on the excess earnings method, which utilizes forecasts of expected cash inflows (including estimates for ongoing costs) and other contributory charges. A discount rate of 23.9% was utilized to discount net cash inflows to present values. IPR&D is accounted for as an indefinite-lived intangible asset and will be subject to impairment testing until completion or abandonment of the projects. Upon successful completion and launch of each product, the Company will make a determination of the estimated useful life of the individual asset. The acquired IPR&D projects are in various stages of completion and the estimated costs to complete these projects total approximately $120 million, which are expected to be incurred through 2024. There are risks and uncertainties associated with the timely and successful completion of the projects included in IPR&D, and no assurances can be given that the underlying assumptions used to estimate the fair value of IPR&D will not change or the timely completion of each project to commercial success will occur. The goodwill of $89.2 million arising from the acquisition consisted largely of the value of the employee workforce and the expected value of products to be developed in the future. All of the goodwill was assigned to the Developed Markets segment. None of the goodwill recognized in this transaction is currently expected to be deductible for income tax purposes. 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 years ended December 31, 2023 and 2022. Ophthalmology is one of the key therapeutic areas of focus that the Company announced in February 2022 when it announced plans for certain strategic actions. With the combination of Viatris' global commercial footprint, R&D and regulatory capabilities and supply chain, along with Oyster Point's deep knowledge of the ophthalmology space from a clinical, medical, regulatory and commercial perspective—including Tyrvaya®—and Famy Life Sciences' Phase III-ready pipeline, the Company believes it has the foundation to create a leading global ophthalmology franchise, accelerating efforts to address the unmet needs of patients with ophthalmic disease and the eye care professionals who treat them. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On October 1, 2023, the Company announced it received an offer for the divestiture of its OTC Business, and entered into definitive agreements to divest its women’s healthcare business and, separately, in another transaction, its rights to two women’s healthcare products in certain countries, its API business in India and commercialization rights in the Upjohn Distributor Markets. The divestiture of the women’s healthcare business is primarily related to our oral and injectable contraceptives and does not include all of our women’s healthcare related products; as an example, our Xulane® product in the U.S. is excluded. The transaction to divest the Company’s rights to two women’s healthcare products in certain countries (other than in the U.K., which remains subject to regulatory approval) closed in December 2023. The divestitures of the commercialization rights in certain of the Upjohn Distributor Markets closed during 2023. Additionally, we expect to consummate the divestiture of our women’s healthcare business and our API business in India by the end of the first quarter of 2024, and in January 2024, we exercised our option to accept the offer in the OTC Transaction and entered into a definitive transaction agreement with respect to such OTC Transaction. We currently expect the OTC Transaction to close by mid-year 2024. The transactions that have not yet closed remain subject to regulatory approvals, receipt of required consents and other closing conditions, including, in the case of the API business divestiture, a financing condition. Under the terms of the agreements, Viatris expects to receive gross proceeds of up to approximately $2.17 billion for the OTC Business and up to approximately $1.4 billion for the remaining divestitures. Upon closing of the divestitures of the women’s healthcare and API businesses, the Company expects to record gains for the differences between the expected consideration to be received and the carrying values of the businesses to be divested. The OTC, API and women’s healthcare businesses are deemed businesses for U.S. GAAP accounting purposes. As such, the assets and liabilities include an allocation of goodwill. The sale of the rights to two women’s healthcare products in certain countries was accounted for as an asset sale. In conjunction with these transactions, Viatris and the respective buyers have entered or will enter into various agreements to provide a framework for our relationship with the respective buyers after the closing of the divestitures, including TSAs, manufacturing and supply agreements, and distribution agreements, as necessary. Women’s Healthcare In the third quarter of 2023, Viatris executed an agreement to divest its women’s healthcare business, primarily related to oral and injectable contraceptives, to Insud Pharma, S. L., a leading Spanish multinational pharmaceutical company. The transaction includes two manufacturing facilities in India. Viatris expects to consummate the divestiture of its women’s healthcare business by the end of the first quarter of 2024, subject to the satisfaction of certain closing conditions. Assets and liabilities associated with the women’s healthcare business to be divested were classified as held for sale in the consolidated balance sheet as of December 31, 2023. In the third quarter of 2023, Viatris also entered into a separate agreement to divest its rights to women’s healthcare products Duphaston® and Femoston® in certain countries to Theramex HQ UK Limited, a leading global specialty pharmaceutical company dedicated to women’s health. The transaction (other than in the U.K., which remains subject to regulatory approval) closed in December 2023, and upon closing, the Company recognized a pre-tax gain on sale of approximately $156.2 million for the difference between the consideration received and the carrying value of the assets transferred. The gain was recorded as a component of SG&A expense in the consolidated statement of operations during the year ended December 31, 2023. OTC On October 1, 2023, Viatris received an offer from Cooper Consumer Health SAS, a leading European OTC drug manufacturer and distributor, for Viatris to divest its OTC Business, including two manufacturing sites located in Merignac, France, and Confienza, Italy, and an R&D site in Monza, Italy. In January 2024, Viatris exercised its option to accept the offer in the OTC Transaction and entered into a definitive transaction agreement with respect to such OTC Transaction. The Company will retain rights for Viagra®, Dymista® (which, in certain limited markets, are sold as OTC products) and select OTC products in certain markets. The OTC Business to be divested met the criteria to be classified as held for sale on October 1, 2023. As such, the related assets and liabilities were classified as held for sale in the consolidated balance sheet as of December 31, 2023. Upon classification as held for sale, we recognized a total charge of approximately $734.7 million, which was comprised of a goodwill impairment charge of approximately $580.1 million (recorded as a component of SG&A expense), and a charge of approximately $154.7 million to write down the disposal group to fair value, less cost to sell (recorded as a component of Other income, net in the consolidated statement of operations, during the year ended December 31, 2023. API On October 1, 2023, Viatris executed an agreement to divest its API business in India to an affiliate of IQuest Enterprises Private Limited, a privately held pharmaceutical company based in India. The transaction includes three manufacturing sites and a R&D lab in Hyderabad, three manufacturing sites in Vizag and third-party API sales. Viatris expects to consummate the divestiture of its API business in India by the end of the first quarter of 2024, subject to the satisfaction of certain closing conditions. Viatris will retain some selective R&D capabilities in API. The API business in India met the criteria to be classified as held for sale on October 1, 2023 and the related assets and liabilities were reclassified as held for sale in the consolidated balance sheet as of December 31, 2023. Upjohn Distributor Markets In the fourth quarter of 2022, the commercialization rights in the Upjohn Distributor Markets met the criteria to be classified as held for sale. Upon classification as held for sale, the Company recognized a total charge of $374.2 million in 2022, which was comprised of a goodwill impairment charge of $117.0 million, other charges, principally inventory write-offs, of $84.3 million and a charge of approximately $172.9 million to write down the disposal group to fair value, less cost to sell. During the year ended December 31, 2023, the Company recorded additional charges totaling $136.4 million, primarily consisting of losses on the disposals of $85.2 million, which were recorded as a component of Other Income, Net . The majority of the divestitures of the commercialization rights in the Upjohn Distributor Markets closed during 2023 and the remaining transactions are expected to be completed during 2024. If the remaining transactions are not completed, the distribution arrangements will expire in accordance with our agreement with Pfizer and the Company will wind down operations in these markets, which may result in additional asset write-offs and other costs being incurred. Biocon Biologics Transaction On November 29, 2022, Viatris completed a transaction to contribute its biosimilars portfolio to Biocon Biologics. Under the terms of the Biocon Agreement, Viatris received $3 billion in consideration in the form of a $2 billion cash payment, adjusted as set forth in the Biocon Agreement, and approximately $1 billion of CCPS representing a stake of approximately 12.9% (on a fully diluted basis) in Biocon Biologics. During the year ended December 31, 2023, the Company recorded a loss of $21.1 million as a component of Other Income, Net , as a result of remeasuring the CCPS in Biocon Biologics to fair value. The Company’s CCPS in Biocon Biologics are classified as equity securities and are included in Other Assets in the consolidated balance sheets. The fair value is reassessed quarterly. Refer to Note 9 Financial Instruments and Risk Management for further discussion. Viatris also is entitled to $335 million of additional cash payments in 2024. In addition, Viatris and Biocon Biologics have agreed to a closing working capital target of $250 million, of which $220 million was paid during 2023. The remaining amount may become payable to Biocon Biologics in connection with certain events in the future, depending on the valuations attributable to such events. Refer to Note 6 Balance Sheet Components for additional information on assets and liabilities related to Biocon Biologics. At the time of closing of the Biocon Biologics Transaction, Viatris and Biocon Biologics also entered an agreement pursuant to which Viatris was providing commercialization and certain other transition services on behalf of Biocon Biologics, including billings, collections and the remittance of rebates, to ensure business continuity for patients, customers and colleagues. Biocon Biologics had substantially exited all transition services with Viatris as of December 31, 2023. During the years ended December 31, 2023 and 2022, the Company recognized TSA income of approximately $168.0 million and $17.7 million, respectively, as a component of Other Income, Net . Upon closing of the Biocon Biologics Transaction, the Company recognized a gain on sale of approximately $1.75 billion for the difference between the consideration received, including the fair value of the CCPS, and the carrying value of the biosimilars portfolio (including an allocation of goodwill). The gain was recognized as a component of Other Income, Net in the consolidated statement of operations during the year ended December 31, 2022. The Company has not recognized the results of the business in its consolidated financial statements subsequent to November 29, 2022. The Company had previously entered into an exclusive collaboration with Biocon on the development, manufacturing, supply and commercialization of multiple, high value biosimilar compounds and three insulin analog products for the global marketplace. The collaboration was terminated upon closing of the Biocon Biologics Transaction. Assets and Liabilities Held for Sale Assets and liabilities held for sale consisted of the following: (In millions) December 31, 2023 December 31, 2022 Assets held for sale Accounts receivable, net $ 112.1 $ — Inventories 422.4 — Prepaid expenses and other current assets 7.5 — Property, plant and equipment, net 262.2 — Intangible assets, net 1,946.0 230.3 Goodwill 188.0 — Other assets 5.1 — Valuation allowance on assets held for sale (157.3) — Total assets held for sale $ 2,786.0 $ 230.3 Liabilities held for sale Accounts payable $ 137.4 $ — Other current liabilities 35.3 — Deferred income tax liability 77.2 — Other long-term obligations 25.2 — Total liabilities held for sale $ 275.1 $ — Other On April 30, 2021, the Company completed an agreement to divest a group of OTC products in the U.S. As a result of this transaction, the Company recognized an intangible asset impairment charge of approximately $83.4 million during the year ended December 31, 2021. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2023 | |
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 $ 991.9 $ 1,259.9 $ 701.2 Restricted cash, included in prepaid and other current assets 1.7 2.6 5.0 Cash, cash equivalents and restricted cash $ 993.6 $ 1,262.5 $ 706.2 Inventories (In millions) December 31, 2023 December 31, 2022 Raw materials $ 731.7 $ 571.5 Work in process 602.1 755.4 Finished goods 2,135.9 2,192.6 Inventories $ 3,469.7 $ 3,519.5 Inventory reserves totaled $479.3 million and $484.8 million at December 31, 2023 and 2022, respectively. Included as a component of cost of sales is expense related to the net realizable value of inventories of $226.9 million, $326.1 million and $474.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. Prepaid expenses and other current assets (In millions) December 31, 2023 December 31, 2022 Prepaid expenses $ 155.9 $ 194.6 Deferred consideration due from Biocon Biologics 321.2 — Available-for-sale fixed income securities 37.0 35.3 Fair value of financial instruments 106.2 134.7 Equity securities 49.3 42.6 Deferred charge for taxes on intercompany profit 747.3 747.2 Income tax receivable 340.2 328.4 Other current assets 271.0 328.4 Prepaid expenses and other current assets $ 2,028.1 $ 1,811.2 Prepaid expenses consist primarily of prepaid rent, insurance and other individually insignificant items. Property, plant and equipment, net (In millions) December 31, 2023 December 31, 2022 Machinery and equipment $ 2,774.5 $ 2,936.7 Buildings and improvements 1,444.4 1,539.7 Construction in progress 431.2 474.0 Land and improvements 120.2 133.4 Gross property, plant and equipment 4,770.3 5,083.8 Accumulated depreciation 2,010.7 2,059.3 Property, plant and equipment, net $ 2,759.6 $ 3,024.5 Capitalized software costs included in our consolidated balance sheets were $167.2 million and $121.5 million, net of accumulated depreciation, at December 31, 2023 and 2022, respectively. The Company periodically reviews the estimated useful lives of assets and makes adjustments when appropriate. Depreciation expense was approximately $362.1 million, $349.5 million and $509.5 million for the years ended December 31, 2023, 2022 and 2021, respectively. Other assets (In millions) December 31, 2023 December 31, 2022 CCPS in Biocon Biologics $ 976.3 $ 997.4 Operating lease right-of-use assets 245.6 259.3 Non-marketable equity investments 165.7 94.0 Deferred consideration due from Biocon Biologics — 299.5 Other long-term assets 821.1 753.3 Other assets $ 2,208.7 $ 2,403.5 Accounts payable (In millions) December 31, 2023 December 31, 2022 Trade accounts payable $ 1,381.4 $ 1,158.0 Other payables 556.8 608.6 Accounts payable $ 1,938.2 $ 1,766.6 The Company has certain voluntary supply chain finance programs with financial intermediaries which provide participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. The Company’s responsibility is limited to making payments on the terms originally negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The range of payment terms the Company negotiates with suppliers are consistent, regardless of whether a supplier participates in a supply chain finance program. The total amounts due to financial intermediaries to settle supplier invoices under supply chain finance programs as of December 31, 2023 and 2022 were $65.1 million and $33.4 million, respectively. These amounts are included within Accounts payable in the consolidated balance sheets. Other current liabilities (In millions) December 31, 2023 December 31, 2022 Accrued sales allowances $ 996.3 $ 888.8 Payroll and employee benefit liabilities 844.5 746.8 Legal and professional accruals, including litigation accruals 244.0 297.2 Contingent consideration 76.1 64.4 Accrued restructuring 36.4 95.3 Accrued interest 66.8 80.2 Fair value of financial instruments 124.6 187.0 Operating lease liability 83.0 80.6 Due to Biocon Biologics 23.8 22.5 Other 898.4 978.1 Other current liabilities $ 3,393.9 $ 3,440.9 Other long-term obligations (In millions) December 31, 2023 December 31, 2022 Employee benefit liabilities $ 504.3 $ 544.6 Contingent consideration (1) 139.0 310.6 Tax related items, including contingencies 399.3 414.6 Operating lease liability 165.4 181.4 Accrued restructuring 59.2 60.4 Other 249.7 244.9 Other long-term obligations $ 1,516.9 $ 1,756.5 (1) Balances as of December 31, 2023 and 2022 include a total of $15.8 million and $221.2 million, respectively, due to Biocon Biologics. Refer to Note 9 Financial Instruments and Risk Management for additional information. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
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. We 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 have also elected to apply the short-term lease recognition exemption which means we will not recognize ROU assets or lease liabilities for leases with an initial term of 12 months of less. As of December 31, 2023, the Company recognized ROU assets of $245.6 million and total lease liabilities of $248.4 million. The Company’s ROU assets are recorded in other assets. The related lease liability balances are recorded in other current liabilities other long-term obligations 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, 2023 Remaining lease terms 1 year to 21 years Weighted-average remaining lease term 5 years Weighted-average discount rate 3.3 % As of December 31, 2023, maturities of lease liabilities were as follows for each of the years ending December 31: (In millions) 2024 $ 79.3 2025 62.7 2026 41.5 2027 30.4 2028 17.3 Thereafter 39.5 Total lease payments $ 270.7 Less imputed interest 22.3 Total lease liability $ 248.4 As of December 31, 2023, the Company had additional leases, primarily for administrative offices, that have not yet commenced totaling approximately $6.1 million. For the years ended December 31, 2023, 2022 and 2021, the Company had operating lease expense of approximately $87.6 million, $90.9 million and $97.6 million, respectively. Operating lease costs are classified primarily as SG&A and cost of sales in the consolidated statements of operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 are as follows: (In millions) Developed Markets (1) Greater China JANZ (2) Emerging Markets (3) Total Balance at December 31, 2021 $ 8,723.4 $ 969.5 $ 776.3 $ 1,644.5 $ 12,113.7 Disposition (4) (743.9) (2.7) (32.6) (140.5) (919.7) Impairment — — — (117.0) (117.0) Foreign currency translation (518.0) (26.2) (54.7) (52.3) (651.2) Balance at December 31, 2022 $ 7,461.5 $ 940.6 $ 689.0 $ 1,334.7 $ 10,425.8 Acquisitions 95.9 — — — 95.9 Impairment (4) (544.0) — (30.0) (7.0) (581.0) Reclassification to assets held for sale (52.0) — — (137.0) (189.0) Foreign currency translation 146.0 (7.8) (13.3) (9.5) 115.4 Balance at December 31, 2023 $ 7,107.4 $ 932.8 $ 645.7 $ 1,181.2 $ 9,867.1 ____________ (1) Balance as of December 31, 2023 includes an accumulated impairment loss of $929.0 million. Balances as of December 31, 2022 and 2021 include an accumulated impairment loss of $385.0 million. (2) Balance as of December 31, 2023 includes an accumulated impairment loss of $30.0 million. (3) Balance as of December 31, 2023 includes an accumulated impairment loss of $124.0 million. Balance as of December 31, 2022 includes an accumulated impairment loss of $117.0 million. (4) Reflects goodwill relating to the divestitures. Refer to Note 5 Divestitures for additional information. 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. The Company performed the annual goodwill impairment test as of April 1, 2023. The Company performed its annual goodwill impairment test on a quantitative basis for its five reporting units, North America, Europe, Emerging Markets, JANZ, and Greater China. In estimating each reporting unit’s fair value, the Company performed an extensive valuation analysis, utilizing a discounted cash flow approach. The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions that affect the reporting unit’s expected future cash flows. These estimates and assumptions, utilizing Level 3 inputs, primarily include, but are not limited to, the discount rate, terminal growth rates, operating income before depreciation and amortization, capital expenditures forecasts and control premiums. When compared to the prior year’s annual goodwill impairment test completed on April 1, 2022, the Company has experienced significant fluctuations in foreign exchange rates in certain international markets, combined with a significant increase in market interest rates. These market factors have caused the discount rate utilized in all our reporting units to increase between 1.0% to 4.5%, resulting in a significant reduction in the calculated fair values at April 1, 2023 for all our reporting units. Also, in conjunction with the Company’s annual strategic planning process which included determining long-term growth rate targets for our business, operational results during the forecast period were reduced and long-term growth rates were increased. As a result of these changes, the calculated fair values of the North America, Greater China and Europe reporting units declined in excess of 10% and the JANZ and Emerging Markets reporting units declined in excess of 15% when compared to the prior year fair values. As of April 1, 2023, the allocation of the Company’s total goodwill was as follows: North America $3.15 billion, Europe $4.47 billion, Emerging Markets $1.34 billion, JANZ $0.68 billion and Greater China $0.94 billion. As of April 1, 2023, the Company determined that the fair value of the North America and Greater China reporting units was substantially in excess of the respective unit’s carrying value. For the Europe reporting unit, the estimated fair value exceeded its carrying value by approximately $535 million or 3.9% for the annual goodwill impairment test. As it relates to the discounted cash flow approach for the Europe reporting unit at April 1, 2023, the Company forecasted cash flows for the next 10 years. During the forecast period, the revenue compound annual growth rate was approximately 2.4%. 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 14.9%. If all other assumptions are held constant, a reduction in the terminal value growth rate by 1.0% or an increase in discount rate by 0.5% would result in an impairment charge for the Europe reporting unit. For the JANZ reporting unit, the estimated fair value exceeded its carrying value by approximately $145 million or 5.5% for the annual goodwill impairment test. As it relates to the discounted cash flow approach for the JANZ reporting unit at April 1, 2023, the Company forecasted cash flows for the next 10 years. During the forecast period, the revenue compound annual growth rate was approximately negative 2.0%. A terminal year value was calculated with a 1.5% revenue growth rate applied. The discount rate utilized was 7.0% and the estimated tax rate was 30.6%. If all other assumptions are held constant, a reduction in the terminal value growth rate by 0.5% or an increase in discount rate by 0.5% would result in an impairment charge for the JANZ reporting unit. For the Emerging Markets reporting unit, the estimated fair value exceeded its carrying value by approximately $513 million or 7.7% for the annual goodwill impairment test. As it relates to the discounted cash flow approach for the Emerging Markets reporting unit at April 1, 2023, the Company forecasted cash flows for the next 10 years. During the forecast period, the revenue compound annual growth rate was approximately 1.8%. A terminal year value was calculated with a 2.0% revenue growth rate applied. The discount rate utilized was 11.5% and the estimated tax rate was 17.4%. If all other assumptions are held constant, a reduction in the terminal value growth rate by 2.5% or an increase in discount rate by 1.0% would result in an impairment charge for the Emerging Markets reporting unit. In the third quarter of 2023, the Company allocated goodwill of $69 million to its women’s healthcare business using a relative fair value approach and reclassified the amount to Assets Held for Sale . In the fourth quarter of 2023, the Company allocated goodwill of $120 million to its API business in India using a relative fair value approach and reclassified the amount to Assets Held for Sale . In the fourth quarter of 2023, the OTC Business met the criteria to be classified as held for sale. The Company allocated goodwill to its OTC Business using a relative fair value approach and recorded a goodwill impairment charge of $580.1 million in that quarter within the Europe (majority of the charge), JANZ and Emerging Markets reporting units, which was recorded within SG&A in the consolidated statement of operations. The goodwill impairment charge was the result of the estimated proceeds less selling costs from the planned divestiture of the OTC Business being below the carrying value of the net assets of the disposal group. In conjunction with the Biocon Biologics Transaction, the Company allocated goodwill to its biosimilars portfolio using a relative fair value approach and reclassified the amount to assets held for sale. Upon closing of the Biocon Biologics Transaction on November 29, 2022, we derecognized goodwill of $919.7 million allocated to the biosimilars portfolio. In the fourth quarter of 2022, the commercialization rights in the Upjohn Distributor Markets met the criteria to be classified as held for sale. The Company allocated goodwill to its commercialization rights in the Upjohn Distributor Markets using a relative fair value approach and recorded a goodwill impairment charge of $117.0 million in that quarter within the Emerging Markets reporting unit, which was recorded within SG&A in the consolidated statement of operations. The goodwill impairment charge was the result of the estimated proceeds less selling costs from the disposal of the commercialization rights in the Upjohn Distributor Markets being below the carrying value of the net assets of the disposal group. Refer to Note 5 Divestitures for additional information on these divestitures. Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions, especially as they relate to the key assumptions detailed, could have a significant impact on the fair value of the reporting units. Intangible Assets, Net Intangible assets consist of the following components at December 31, 2023 and 2022: (In millions) Weighted Average Life (Years) Cost Accumulated Amortization Net Book Value December 31, 2023 Product rights, licenses and other (1) 13 $ 34,178.1 $ 15,316.4 $ 18,861.7 In-process research and development 319.4 — 319.4 $ 34,497.5 $ 15,316.4 $ 19,181.1 December 31, 2022 Product rights, licenses and other (1) 15 $ 37,490.5 $ 14,923.6 $ 22,566.9 In-process research and development 40.2 — 40.2 $ 37,530.7 $ 14,923.6 $ 22,607.1 ____________ (1) Represents amortizable intangible assets. Other intangible assets consist principally of customer lists and contractual rights. During the year ended December 31, 2023, the Company reclassified intangible assets of approximately $1.93 billion relating to the remaining announced divestitures that have not been consummated as of December 31, 2023 to Assets Held for Sale. Refer to Note 5 Divestitures for additional information. During the year ended December 31, 2023, the Company recorded intangible assets of approximately $334.0 million as part of the Oyster Point acquisition, and IPR&D of approximately $290.0 million as part of the Famy Life Sciences acquisition. Refer to Note 4 Acquisitions and Other Transactions for additional information. 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, 2023 Brands $ 7,723.4 $ 5,206.8 $ 961.0 $ 2,855.9 $ 16,747.1 Generics 1,708.2 9.7 216.2 179.8 2,113.9 Total Product Rights and Licenses $ 9,431.6 $ 5,216.5 $ 1,177.2 $ 3,035.7 $ 18,861.0 (In millions) Developed Markets Greater China JANZ Emerging Markets December 31, 2022 Brands $ 8,762.2 $ 5,632.3 $ 1,061.3 $ 3,122.5 $ 18,578.3 Generics 3,448.9 10.6 264.2 263.9 3,987.6 Total Product Rights and Licenses $ 12,211.1 $ 5,642.9 $ 1,325.5 $ 3,386.4 $ 22,565.9 ____________ (a) As a result of the contribution of the biosimilars business to Biocon Biologics in November 2022, Complex Gx and Biosimilars , which were previously presented as a separate line item, are now included within Generics . Reclassifications were made to prior periods to conform to the current period presentation. Amortization expense and intangible asset disposal & impairment charges (which are included as a component of amortization expense) are classified primarily within Cost of Sales in the consolidated statements of operations, and were as follows for the years ended December 31, 2023, 2022 and 2021: Year ended December 31, (In millions) 2023 2022 2021 Intangible asset amortization expense $ 2,317.1 $ 2,504.6 $ 2,702.2 IPR&D intangible asset impairment charges — 0.6 19.4 Finite-lived intangible asset disposal & impairment charges 32.0 172.9 83.4 Total intangible asset amortization expense (including disposal & impairment charges) $ 2,349.1 $ 2,678.1 $ 2,805.0 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. Any future long-lived assets impairment charges could have a material impact on the Company’s consolidated financial condition and results of operations. During the years ended December 31, 2023, and 2022, the Company recognized intangible asset charges of approximately $32.0 million and $172.9 million, respectively, recorded within Cost of Sales in the consolidated statements of operations, to write down the disposal group to fair value, less cost to sell, related to our commercialization rights in the Upjohn Distributor Markets, which was classified as held for sal e. Refer to Note 5 Divestitures for additional information. On April 30, 2021, the Company completed an agreement to divest a group of OTC products in the U.S. As a result of this transaction, the Company recognized an intangible asset impairment charge of approximately $83.4 million during the year ended December 31, 2021. 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 10.0% and 24.0% were utilized in the valuations performed during the year ended December 31, 2023. A discount rate of 10.5% was utilized in the valuations performed during the year ended December 31, 2022. Discount rates ranging between 7.0% and 9.0% were utilized in the valuations performed during the year ended December 31, 2021. 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. Intangible asset amortization expense for the years ending December 31, 2024 through 2028 is estimated to be as follows: (In millions) 2024 $ 2,314 2025 2,235 2026 2,183 2027 2,102 2028 1,859 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2023 | |
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 and a portion of forecasted intercompany inventory sales denominated in Euro, Japanese Yen, Chinese Renminbi and Indian Rupee for up to twenty-four months. These contracts are designated as cash flow hedges to manage foreign currency transaction risk and are measured at fair value and reported as current assets or current liabilities in the consolidated balance sheets. Any changes in the fair value of designated cash flow hedges are deferred in AOCE and are reclassified into earnings when the hedged item impacts earnings. Net Investment Hedges The Company may hedge the foreign currency risk associated with certain net investment positions in foreign subsidiaries by either borrowing directly in foreign currencies and designating all or a portion of the foreign currency debt as a hedge of the applicable net investment position or entering into foreign currency swaps that are designated as hedges of net investments. The Company has designated certain Euro and Yen borrowings as a hedge of its investment in certain Euro-functional and Yen-functional currency subsidiaries in order to manage foreign currency translation risk. Borrowings designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of AOCE until the sale or substantial liquidation of the underlying net investments. In addition, the Company manages the related foreign exchange risk of the Euro and Yen borrowings not designated as net investment hedges through certain Euro and Yen denominated financial assets and forward currency swaps. The following table summarizes the principal amounts of the Company’s outstanding Euro and Yen borrowings and the notional amounts of the Euro and Yen borrowings designated as net investment hedges: Notional Amount Designated as a Net Investment Hedge (In millions) Principal Amount December 31, December 31, Euro 2.250% Euro Senior Notes due 2024 € 1,000.0 € 1,000.0 € 1,000.0 1.023% Euro Senior Notes due 2024 750.0 750.0 750.0 2.125% Euro Senior Notes due 2025 500.0 500.0 500.0 1.362% Euro Senior Notes due 2027 850.0 850.0 850.0 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 1,250.0 Foreign currency forward contracts 500.0 500.0 — Euro Total € 5,600.0 € 5,600.0 € 5,100.0 Yen YEN Term Loan ¥ 40,000.0 ¥ 40,000.0 ¥ 40,000.0 Yen Total ¥ 40,000.0 ¥ 40,000.0 ¥ 40,000.0 At December 31, 2023, the principal amount of the Company’s outstanding Yen borrowings and the notional amount of the Yen borrowings designated as net investment hedges was $283.6 million. During the third quarter of 2023, the Company executed fixed-rate cross-currency interest rate swaps with notional amounts totaling Japanese Yen 14.6 billion with settlement dates through 2026. The transactions hedge a portion of the Company’s net investment in certain Yen-functional currency subsidiaries. All changes in the fair value of this derivative instrument, which is designated as a net investment hedge, are marked-to-market using the current spot exchange rate as of the end of the period. The portion of this change related to the excluded component will be amortized in interest expense over the life of the derivative while the remainder will be recorded in AOCE until the sale or substantial liquidation of the underlying net investments. The semiannual net interest payment received related to the fixed-rate component of the cross-currency interest rate swaps will be reflected in operating cash flows. During the fourth quarter of 2023, the Company executed foreign currency forward contracts with notional amounts totaling Euro 500 million with settlement dates in 2024. The transactions hedge a portion of the Company’s net investment in certain Euro functional currency subsidiaries. The contracts have been designated as a net investment hedge. 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. 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 following table summarizes the classification and fair values of derivative instruments in our consolidated balance sheets: Asset Derivatives Liability Derivatives (In millions) Balance Sheet Location December 31, 2023 Fair Value December 31, 2022 Fair Value Balance Sheet Location December 31, 2023 Fair Value December 31, 2022 Fair Value Derivatives designated as hedges: Foreign currency forward contracts Prepaid expenses & other current assets $ 17.5 $ 30.4 Other current liabilities $ 35.8 $ 26.4 Total derivatives designated as hedges 17.5 30.4 35.8 26.4 Derivatives not designated as hedges: Foreign currency forward contracts Prepaid expenses & other current assets 88.7 104.3 Other current liabilities 88.8 160.6 Total derivatives not designated as hedges 88.7 104.3 88.8 160.6 Total derivatives $ 106.2 $ 134.7 $ 124.6 $ 187.0 The following tables summarize information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: Amount of Gains/(Losses) Recognized in Earnings Year Ended December 31, (In millions) Location of Gain/(Loss) 2023 2022 2021 Derivative Financial Instruments in Net Investment Hedging Relationships: Cross-currency interest rate swaps Interest expense (2) $ 1.8 $ — $ — Derivative Financial Instruments Not Designated as Hedging Instruments: Foreign currency option and forward contracts Other income, net (2) $ 56.3 $ (82.1) $ 39.3 Total $ 58.1 $ (82.1) $ 39.3 Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives Amount of Gains/(Losses) Reclassified from AOCE into Earnings Year Ended December 31, Year Ended December 31, (In millions) Location of Gain/(Loss) 2023 2022 2021 2023 2022 2021 Derivative Financial Instruments in Cash Flow Hedging Relationships (1) : Foreign currency forward contracts Net sales (3) $ 44.3 $ 34.2 $ 45.8 $ 45.3 $ 89.2 $ 30.9 Interest rate swaps Interest expense (3) (3.8) (3.5) (3.4) (4.8) (4.5) (4.3) Derivative Financial Instruments in Net Investment Hedging Relationships: Cross-currency interest rate swaps (1.7) — — — — — Foreign currency forward contracts (18.3) — — — — — Non-derivative Financial Instruments in Net Investment Hedging Relationships: Foreign currency borrowings (120.1) 360.1 436.6 — — — Total $ (99.6) $ 390.8 $ 479.0 $ 40.5 $ 84.7 $ 26.6 ____________ (1) At December 31, 2023, the Company expects that approximately $21.0 million of pre-tax net losses on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months. (2) Represents the location of the gain/(loss) recognized in earnings on derivatives. (3) Represents the location of the gain/(loss) reclassified from AOCE into earnings. 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, 2023 December 31, 2022 (In millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Recurring fair value measurements Financial Assets Cash equivalents: Money market funds $ 651.4 $ — $ — $ 688.8 $ — $ — Total cash equivalents 651.4 — — 688.8 — — Equity securities: Exchange traded funds 49.1 — — 42.4 — — Marketable securities 0.2 — — 0.2 — — Total equity securities 49.3 — — 42.6 — — CCPS in Biocon Biologics — — 976.3 — — 997.4 Available-for-sale fixed income investments: Corporate bonds — 15.9 — — 13.2 — U.S. Treasuries — 11.2 — — 11.7 — Agency mortgage-backed securities — 4.6 — — 4.7 — Asset backed securities — 5.1 — — 5.1 — Other — 0.2 — — 0.6 — Total available-for-sale fixed income investments — 37.0 — — 35.3 — Foreign exchange derivative assets — 106.2 — — 134.7 — Total assets at recurring fair value measurement $ 700.7 $ 143.2 $ 976.3 $ 731.4 $ 170.0 $ 997.4 Financial Liabilities Foreign exchange derivative liabilities $ — $ 124.6 $ — $ — $ 187.0 $ — Contingent consideration — — 215.1 — — 375.0 Total liabilities at recurring fair value measurement $ — $ 124.6 $ 215.1 $ — $ 187.0 $ 375.0 For financial assets and liabilities that utilize Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including interest rate yield curves, foreign exchange forward prices and bank price quotes. For the years ended December 31, 2023 and 2022, there were no transfers between Level 1 and 2 of the fair value hierarchy. Below is a summary of valuation techniques for the Company’s financial assets and liabilities: • Cash equivalents — valued at observable net asset value prices. • Equity securities, exchange traded funds — valued at the active quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in Other income, 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 income, net , in the consolidated statements of operations. • CCPS in Biocon Biologics — valued using a Monte Carlo simulation model using Level 3 inputs. The fair value of the CCPS is sensitive to changes in the forecasts of operating metrics, changes in volatility and discount rates, and share dilution. The Company elected the fair value option for the CCPS under ASC 825. The fair value is reassessed quarterly and any change in the fair value estimate is recorded in Other income, net in the consolidated statements of operations for that period. • Available-for-sale fixed income investments — valued at the quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value, net of income taxes, are included in accumulated other comprehensive loss as a component of shareholders’ equity. • Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices and spot rates at the reporting date. Counterparties to these contracts are highly rated financial institutions. Contingent Consideration 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 Inhub® (fluticasone propionate and salmeterol inhalation powder, USP), the first generic of GlaxoSmithKline’s Advair Diskus®. The commercial launch of the Wixela Inhub® occurred in February 2019. As of December 31, 2023 and 2022, the Company had a contingent consideration liability of $177.6 million and $132.0 million, respectively, related to the Respiratory Delivery Platform, and $15.8 million and $221.2 million, respectively, related to the Biocon Biologics Transaction. The measurement of these contingent consideration liabilities is calculated using unobservable Level 3 inputs based on the Company’s own assumptions primarily related to the probability and timing of future events and payments which are discounted using a market rate of return. At December 31, 2023 and 2022, discount rates ranging from 6.4% to 8.0%, and 6.4% to 9.0%, respectively, were utilized in the valuations. Significant changes in unobservable inputs could result in material changes to the contingent consideration liabilities. A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2021 to December 31, 2023 is as follows: (In millions) Current Portion (1) Long-Term Portion (2) Total Contingent Consideration Balance at December 31, 2021 $ 66.7 $ 133.0 $ 199.7 Biocon Biologics Transaction — 220.0 220.0 Payments (64.1) — (64.1) Reclassifications 61.8 (61.8) — Accretion — 8.2 8.2 Fair value loss (3) — 11.2 11.2 Balance at December 31, 2022 $ 64.4 $ 310.6 $ 375.0 Payments (43.0) (220.0) (263.0) Reclassifications 54.7 (54.7) — Accretion — 22.7 22.7 Fair value loss (3) — 80.4 80.4 Balance at December 31, 2023 $ 76.1 $ 139.0 $ 215.1 ____________ (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. Although the Company has not elected the fair value option for financial assets and liabilities other than the CCPS, 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 securities were as follows: (In millions) Balance Sheet Location Cost Gross Gross Fair December 31, 2023 Available-for-sale fixed income investments Prepaid expenses and other current assets $ 37.8 $ — $ (0.8) $ 37.0 $ 37.8 $ — $ (0.8) $ 37.0 December 31, 2022 Available-for-sale fixed income investments Prepaid expenses and other current assets $ 38.0 $ — $ (2.7) $ 35.3 $ 38.0 $ — $ (2.7) $ 35.3 Maturities of available-for-sale fixed income investments at fair value as of December 31, 2023, were as follows: (In millions) Mature within one year $ 1.0 Mature in one to five years 19.6 Mature in five years and later 16.4 $ 37.0 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following provides an overview of the Company’s short-term credit facilities. Receivables Facility and Note Securitization Facility The Company has a $400 million Receivables Facility which expires in April 2025 and a $200 million Note Securitization Facility which expires in August 2024. 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 the applicable base rate plus 0.775% and under the Note Securitization Facility at the relevant base rate 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, 2023. As of December 31, 2023 and 2022, the Company had $564.5 million and $474.9 million, respectively, of accounts receivable balances sold to its subsidiary Mylan Securitization LLC under the Receivables Facility. Long-Term Debt A summary of long-term debt is as follows: ($ in millions) Interest Rate as of December 31, 2023 December 31, December 31, Current portion of long-term debt: 2023 Senior Notes (a) * 3.125 % — 750.6 2023 Senior Notes (b) * 4.200 % — 499.8 2024 Euro Senior Notes **** 1.023 % 831.5 — 2024 Euro Senior Notes ** 2.250 % 1,103.5 — Other 0.4 0.7 Deferred financing fees (0.7) (0.6) Current portion of long-term debt $ 1,934.7 $ 1,250.5 Non-current portion of long-term debt: 2024 Euro Senior Notes ** 2.250 % — 1,069.8 2024 Euro Senior Notes **** 1.023 % — 813.5 2025 Euro Senior Notes * 2.125 % 551.7 534.8 2025 Senior Notes *** 1.650 % 755.7 759.6 2026 Senior Notes ** 3.950 % 2,245.1 2,243.2 2027 Euro Senior Notes **** 1.362 % 967.2 945.9 2027 Senior Notes *** 2.300 % 769.8 775.3 2028 Euro Senior Notes ** 3.125 % 824.1 798.5 2028 Senior Notes * 4.550 % 749.1 748.9 2030 Senior Notes *** 2.700 % 1,505.0 1,512.8 2032 Euro Senior Notes **** 1.908 % 1,478.4 1,444.4 2040 Senior Notes *** 3.850 % 1,644.0 1,650.6 2043 Senior Notes * 5.400 % 497.5 497.4 2046 Senior Notes ** 5.250 % 999.9 999.9 2048 Senior Notes * 5.200 % 747.8 747.8 2050 Senior Notes *** 4.000 % 2,196.3 2,200.8 YEN Term Loan Facility Variable 283.6 305.1 Other 2.4 2.0 Deferred financing fees (29.5) (35.1) Long-term debt $ 16,188.1 $ 18,015.2 ____________ (a) In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The fair value adjustment was amortized to interest expense over the remaining term of the notes, which were repaid at maturity in the first quarter of 2023. (b) The 2023 Senior Notes were repaid at maturity in the fourth quarter of 2023. * Instrument was issued by Mylan Inc. ** Instrument was originally issued by Mylan N.V.; now held by Utah Acquisition Sub Inc. *** Instrument was issued by Viatris Inc. **** Instrument was issued by Upjohn Finance B.V. Senior Notes Assumptions and Guarantees of Senior Unsecured Notes Viatris Inc. is the issuer of the Upjohn U.S. Dollar Notes, which are fully and unconditionally guaranteed on a senior unsecured basis by Mylan Inc., Mylan II B.V. and Utah Acquisition Sub Inc. Upjohn Finance B.V. is the issuer of the Upjohn Euro Notes, which are fully and unconditionally guaranteed on a senior unsecured basis by Viatris Inc., Mylan Inc., Mylan II B.V. and Utah Acquisition Sub Inc. Following the Combination, Utah Acquisition Sub Inc. is the issuer of the Utah U.S. Dollar Notes and the Utah Euro Notes, which are each fully and unconditionally guaranteed on a senior unsecured basis by Mylan Inc., Viatris Inc. and Mylan II B.V. Mylan Inc. is the issuer of the Mylan Inc. U.S. Dollar Notes and the Mylan Inc. Euro Notes, which are each fully and unconditionally guaranteed on a senior unsecured basis by Mylan II B.V., Viatris Inc. and Utah Acquisition Sub Inc. YEN Term Loan Facility and Revolving Facility In July 2021, Viatris entered into (i) the ¥40 billion YEN Term Loan Facility and (ii) the $4.0 billion Revolving Facility with various syndicates of banks. The YEN Term Loan Facility and the Revolving Facility will mature in July 2026 and contain customary affirmative covenants for facilities of this type, including 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 a financial covenant, which set the Maximum Leverage Ratio as of the end of any quarter at 3.75 to 1.00 for the quarter ended March 31, 2023 and each quarter ending thereafter, except in circumstances as defined in the related credit agreement, and other 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. Up to $1.65 billion of the Revolving Facility may be used to support borrowings under our Commercial Paper Program. Effective April 28, 2023, we executed an amendment to the Revolving Facility to convert the benchmark interest rate from LIBOR to an adjusted SOFR, with no change in the applicable interest rate margins. Fair Value At December 31, 2023 and 2022, the aggregate fair value of the Company’s outstanding notes was approximately $15.25 billion and $15.36 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, 2023 were as follows for each of the years ending December 31: (In millions) Total 2024 $ 1,932 2025 1,302 2026 2,534 2027 1,688 2028 1,578 Thereafter 8,580 Total $ 17,614 |
Comprehensive Earnings
Comprehensive Earnings | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 Accumulated other comprehensive loss: Net unrealized loss on available-for-sale fixed income securities, net of tax $ (1.2) $ (2.3) Net unrecognized gain and prior service cost related to defined benefit plans, net of tax 271.4 268.5 Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax (8.0) (18.5) Net unrecognized gain on derivatives in net investment hedging relationships, net of tax 237.1 377.0 Foreign currency translation adjustment (3,246.7) (3,385.9) $ (2,747.4) $ (2,761.2) Components of accumulated other comprehensive (loss) earnings, before tax, consist of the following: Year Ended December 31, 2023 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Available-For-Sale Fixed Income Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2022, net of tax $ (18.5) $ 377.0 $ (2.3) $ 268.5 $ (3,385.9) $ (2,761.2) Other comprehensive earnings (loss) before reclassifications, before tax 54.4 (178.5) 1.5 (37.3) 139.2 (20.7) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (45.3) (45.3) (45.3) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 4.8 4.8 4.8 Gain on divestiture of defined pension plan, included in SG&A (3.0) (3.0) Amortization of prior service costs included in SG&A (0.3) (0.3) Amortization of actuarial loss included in SG&A 21.9 21.9 Net other comprehensive earnings (loss), before tax 13.9 (178.5) 1.5 (18.7) 139.2 (42.6) Income tax provision (benefit) 3.4 (38.6) 0.4 (21.6) — (56.4) Balance at December 31, 2023, net of tax $ (8.0) $ 237.1 $ (1.2) $ 271.4 $ (3,246.7) $ (2,747.4) Year Ended December 31, 2022 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Available-For-Sale Fixed Income Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2021, net of tax $ 9.2 $ 16.7 $ — $ 32.2 $ (1,802.4) $ (1,744.3) Other comprehensive earnings (loss) before reclassifications, before tax 47.8 460.1 (2.8) 276.3 (1,583.5) (802.1) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (89.2) (89.2) (89.2) 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 (0.4) (0.4) Amortization of actuarial loss included in SG&A 3.2 3.2 Net other comprehensive earnings (loss), before tax (36.9) 460.1 (2.8) 279.1 (1,583.5) (884.0) Income tax (benefit) provision (9.2) 99.8 (0.5) 42.8 — 132.9 Balance at December 31, 2022, net of tax $ (18.5) $ 377.0 $ (2.3) $ 268.5 $ (3,385.9) $ (2,761.2) Year Ended December 31, 2021 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Available-For-Sale Fixed Income Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2020, net of tax $ (18.0) $ (353.6) $ 1.2 $ (26.1) $ (461.5) $ (858.0) Other comprehensive earnings (loss) before reclassifications, before tax 62.7 456.8 (1.1) 67.0 (1,340.9) (755.5) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (30.9) (30.9) (30.9) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 4.3 4.3 4.3 Amortization of prior service costs included in SG&A (0.5) (0.5) Amortization of actuarial loss included in SG&A 7.4 7.4 Net other comprehensive earnings (loss), before tax 36.1 456.8 (1.1) 73.9 (1,340.9) (775.2) Income tax provision 8.9 86.5 0.1 15.6 — 111.1 Balance at December 31, 2021, net of tax $ 9.2 $ 16.7 $ — $ 32.2 $ (1,802.4) $ (1,744.3) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision (benefit) consisted of the following components: Year Ended December 31, (In millions) 2023 2022 2021 U.S. Federal: Current $ 2.6 $ 115.3 $ 12.6 Deferred 293.4 263.7 (182.7) 296.0 379.0 (170.1) U.S. State: Current 1.9 26.5 7.7 Deferred 2.6 20.3 (10.8) 4.5 46.8 (3.1) Non-U.S.: Current 530.8 618.7 (91.3) Deferred (683.1) (309.9) 869.2 (152.3) 308.8 777.9 Income tax provision $ 148.2 $ 734.6 $ 604.7 Earnings (loss) before income taxes: United States (951.5) 794.8 (1,982.5) Foreign - Other 1,154.4 2,018.4 1,318.1 Total earnings (loss) before income taxes $ 202.9 $ 2,813.2 $ (664.4) 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, 2023 December 31, 2022 Deferred tax assets: Employee benefits $ 148.7 $ 129.6 Litigation reserves 32.2 20.5 Accounts receivable allowances 413.7 446.2 Inventory 143.8 159.3 Tax credit and loss carry-forwards 758.2 760.3 Operating lease assets 51.3 56.2 Interest expense 114.8 94.8 Intangible assets 167.7 149.3 Other 326.1 209.3 2,156.5 2,025.5 Less: Valuation allowance (421.4) (387.0) Total deferred tax assets 1,735.1 1,638.5 Deferred tax liabilities: Plant and equipment 54.0 56.6 Operating lease liabilities 51.3 56.2 Intangible assets and goodwill 2,506.2 2,880.3 Other 166.4 151.5 Total deferred tax liabilities 2,777.9 3,144.6 Deferred tax liabilities, net $ (1,042.8) $ (1,506.1) 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 $1.18 billion at December 31, 2023. 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. Our effective tax rate from continuing operations differs from the applicable United States statutory federal income tax rate of 21.0%, due to the following: Year Ended December 31, 2023 2022 2021 Statutory tax rate 21.0 % 21.0 % 21.0 % Clean energy and research credits (5.2) % — % 9.8 % Foreign rate differential (58.8) % (3.6) % 31.4 % Expiration of attributes 1.5 % 9.8 % — % Goodwill impairment 60.8 % 6.5 % — % State income taxes and credits (3.9) % 1.3 % (0.6) % Tax settlements and resolution of certain tax positions 14.2 % 1.0 % 0.9 % Impact of the Combination and divestitures 11.2 % (6.7) % (109.7) % Incremental U.S. tax on foreign earnings 69.4 % 2.0 % (36.9) % Valuation allowance 10.9 % (13.6) % (8.4) % Deferred tax impact of tax law changes (1.0) % 5.4 % 7.0 % Withholding taxes 7.4 % 1.5 % (1.3) % Deferred tax impact of internal restructuring (74.0) % — % — % Other items 19.5 % 1.5 % (4.2) % Effective tax rate 73.0 % 26.1 % (91.0) % In all years, our effective tax rate is impacted by the jurisdictional location of earnings and the corresponding tax rates in those jurisdictions. The Company realizes benefits from lower tax rates in Singapore and Puerto Rico due to manufacturing and other incentives. During the year ended December 31, 2022, a Puerto Rico net operating loss, which was recorded in conjunction with the Combination, expired unutilized resulting in a $274.4 million write-off of deferred tax asset and corresponding valuation allowance. The expiration and valuation allowance impacts are reflected in the above table. 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, 2023, a valuation allowance has been applied to certain deferred tax assets in the amount of $421.4 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, 2023, the Company had the following carryforwards and attributes: • U.S. federal net operating loss carryforwards of $281.9 million, which were recorded in connection with the Oyster Point acquisition. While the utilization of these carryforwards is subject to Section 382 of the Code, the Company does not anticipate that this limitation will impair our ability to utilize the carryovers. • U.S. state income tax loss carryforwards of approximately $3.40 billion, which are largely offset by a valuation allowance. • Non-U.S. net operating loss carryforwards of approximately $879.4 million, of which $718.1 million can be carried forward indefinitely, with the remaining $161.3 million expiring in years 2024 through 2043. • U.S. and foreign credit carryovers of $208.5 million, expiring in various amounts through 2043. • Anticipatory foreign tax credits of $150.8 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. Legislative Updates On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”) into law, which includes a new corporate alternative minimum tax (“CAMT”) and an excise tax of 1% on the fair market value of net stock repurchases. Both provisions are effective for years after December 31, 2022. The Company reflected the applicable estimated excise tax in treasury stock as part of the cost basis of the stock repurchased and recorded a corresponding liability in Other current liabilities on our consolidated balance sheet as of December 31, 2023. The share repurchase and authorization amounts disclosed in this Form 10-K exclude the excise tax. The Company does not anticipate being subject to the 15% CAMT tax in 2023 based on enacted law and regulatory guidance; however, our CAMT status for 2023 could change in the future, depending on new regulations or regulatory guidance issued by the U.S. Department of the Treasury. In addition, many countries are actively considering or have proposed or enacted changes to their tax laws based on the Pillar Two Global Anti-Base Erosion Rules (“Pillar Two Rules”) proposed by the OECD. The Pillar Two Rules impose a global minimum tax of 15%, and under these rules, we may be required to pay a “top-up” tax to the extent our effective tax rate in any given country is below 15%. We will continue to monitor the implementation of the Pillar Two Rules in the countries in which we operate. The earliest effective date of the Pillar Two Rules in any adopting country is January 1, 2024, with many countries postponing implementation to January 1, 2025 or later, if at all. We are currently evaluating the potential impact on our consolidated financial statements and related disclosures. 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 2021 are open years under examination. The years 2012, 2013 and 2014 had one matter open, and a Tax Court petition was filed regarding the matter and a trial was held in December 2018 and is discussed further below. Several international audits are currently in progress. In some cases, the tax auditors have proposed adjustments or issued assessments to our tax positions, including with respect to intercompany transactions, and we are in ongoing discussions with some of the auditors regarding the validity of their tax positions. In instances where assessments have been issued, we disagree with these assessments and believe they are without merit and incorrect as a matter of law. As a result, we anticipate that certain of these matters may become the subject of litigation before tax courts where we intend to vigorously defend our position. In Australia, the tax authorities have issued notices of assessments to the Company for the years ended December 2009 to December 2020, subject to additional interest and penalties, concerning our tax position with respect to certain intercompany transactions. The tax authorities denied our objections to the assessments for the years ended December 2009 to December 2020 and we have commenced litigation in the Australian Federal Court challenging those decisions. A trial took place in October 2023 and a decision is awaited. The Company made a partial payment of $56.0 million in 2021 and $5.2 million in 2022 in order to stay potential interest and penalties resulting from this litigation. In France, the tax authorities have issued notices of assessments to the Company for the years ended December 2013 to December 2015 concerning our tax position with respect to whether income earned by a Company entity not domiciled in France should be subject to French tax. We have commenced litigation before the French tax courts where the tax authorities will seek unpaid taxes, penalties, and interest. In India, the tax authorities have issued notices of assessments to the Company seeking unpaid taxes and interest for the financial years covering 2013 to 2018 concerning our tax position with respect to certain corporate tax deductions and certain intercompany transactions. Some of these issues were resolved through the Company entering into an agreement with the tax authorities in March 2023 in respect of the pricing of its international transactions. The Company recorded tax expense of approximately $22.3 million during the year ended December 31, 2023, due to the terms of this agreement. The remaining issues are in the audit phase or are being challenged in the Indian tax courts. The Company has recorded a net reserve for uncertain tax positions of $287.1 million and $298.1 million, including interest and penalties, in connection with its international audits at December 31, 2023 and 2022, respectively. In connection with our international tax audits, it is possible that we will incur material losses above the amounts reserved. The Company’s major U.S. state taxing jurisdictions remain open from fiscal year 2013 through 2022, with several state audits currently in progress. The Company’s major international taxing jurisdictions remain open from 2012 through 2022. Tax Court Proceedings The Company's U.S. federal income tax returns for 2012 through 2014 had been subject to proceedings in U.S. Tax Court involving a dispute with the IRS regarding whether certain costs related to ANDAs were eligible to be expensed and deducted immediately or required to be amortized over longer periods. A trial was held in U.S. Tax Court in December 2018 and on April 27, 2021, the Court affirmed Mylan’s position and held that patent litigation expenses related to ANDAs are immediately deductible. The IRS’ appeal was denied by the U.S. Court of Appeals for the Third Circuit and this matter is now closed. 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, 2023 and 2022, the Company’s consolidated balance sheets reflect net liabilities for unrecognized tax benefits of $272.8 million and $296.7 million, respectively, of which $191.4 million as of December 31, 2023 would affect the Company’s effective tax rate if recognized, with the remainder being offset by potential correlative adjustments. Related accrued interest and penalties included in the consolidated balance sheets were $115.7 million and $106.4 million as of December 31, 2023 and 2022, respectively. For the years ended December 31, 2023, 2022 and 2021, the Company recognized $15.4 million, $21.1 million, and $18.5 million of tax expense, 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) 2023 2022 2021 Unrecognized tax benefit — beginning of year $ 296.7 $ 322.9 $ 391.1 Additions for current year tax positions — 8.2 — Additions for prior year tax positions 3.0 1.0 — Reductions for prior year tax positions (4.6) (5.8) (9.1) Settlements (2.1) (0.4) (47.3) Reductions due to expirations of statute of limitations (13.0) (1.9) (7.0) Reduction due to acquisition — (27.3) (4.8) Impact of foreign currency translation (7.2) — — Unrecognized tax benefit — end of year $ 272.8 $ 296.7 $ 322.9 |
Share-Based Incentive Plan
Share-Based Incentive Plan | 12 Months Ended |
Dec. 31, 2023 | |
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 2020 Incentive Plan (the Viatris Inc. 2020 Stock Incentive Plan ) which became effective as of the Distribution. In connection with the Combination, as of November 16, 2020, the Company assumed the 2003 LTIP ( Mylan N.V. Amended and Restated 2003 Long-Term Incentive Plan) , which had previously been approved by Mylan shareholders. The 2020 Incentive Plan and 2003 LTIP include (i) 72,500,000 shares of Viatris’ common stock authorized for grant pursuant to the 2020 Incentive 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 2020 Incentive Plan and 2003 LTIP, shares are reserved for issuance to key employees, consultants, independent contractors and non-employee directors of the Company through a variety of incentive awards, including: stock options, SARs, restricted stock and units, PSUs, other stock-based awards and short-term cash awards. Stock option awards are granted with an exercise price equal to the fair market value of the shares underlying the stock options at the date of the grant, generally become exercisable over periods ranging from three The following table summarizes stock awards (stock options and SARs) activity under the 2020 Incentive Plan and 2003 LTIP: Number of Shares Weighted Average Outstanding at December 31, 2020 6,711,731 $ 35.36 Forfeited (1,135,241) 26.39 Outstanding at December 31, 2021 5,576,490 $ 37.19 Forfeited (1,126,848) 31.91 Outstanding at December 31, 2022 4,449,642 $ 38.53 Granted 283,361 7.68 Exercised (26,457) 5.65 Forfeited (547,213) 32.63 Outstanding at December 31, 2023 4,159,333 $ 37.41 Vested and expected to vest at December 31, 2023 4,141,672 $ 37.53 Exercisable at December 31, 2023 4,014,981 $ 38.42 As of December 31, 2023, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had average remaining contractual terms of 3.7 years, 3.7 years and 3.5 years, respectively. Also, at December 31, 2023, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had aggregate intrinsic values of $0.6 million, $0.6 million, and $0.3 million, respectively. A rollforward of the changes in the Company’s nonvested Restricted Stock Awards (restricted stock and restricted stock unit awards, including PSUs) from December 31, 2022 to December 31, 2023 is presented below: Number of Restricted Weighted Average Nonvested at December 31, 2022 27,271,926 $ 11.81 Granted 20,402,621 11.16 Released (13,758,000) 12.30 Forfeited (2,819,764) 11.54 Nonvested at December 31, 2023 31,096,783 $ 11.20 Of the 20,402,621 Restricted Stock Awards granted during the year ended December 31, 2023, 14,104,207 vest ratably in three years or less and are not subject to market or performance conditions. Of the remaining Restricted Stock Awards granted, 299,207 are not subject to market conditions and will cliff vest within a three-year period, and 5,999,207 are subject to market or performance conditions and will cliff vest in three years or less. As of December 31, 2023, the Company had $181.0 million of total unrecognized compensation expense, net of estimated forfeitures, related to all of its stock-based awards, which we expect to recognize over the remaining weighted average vesting period of 1.5 years. The total intrinsic value of Restricted Stock Awards released and stock options exercised during the years ended December 31, 2023 and 2022 was $169.2 million and $51.8 million, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
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. 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, 2023 and 2022 are: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2023 2022 2023 2022 Unrecognized actuarial net gain $ (268.1) $ (293.6) $ (43.4) $ (22.0) Unrecognized prior service cost (credit) 19.7 4.0 (3.0) (3.7) Total $ (248.4) $ (289.6) $ (46.4) $ (25.7) The unrecognized net actuarial gains 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 (credit) 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 change in accumulated other comprehensive loss in 2023 relating to pension benefits and other postretirement benefits consists of: (In millions) Pension Benefits Other Postretirement Benefits Unrecognized actuarial loss (gain) $ 8.3 $ (22.8) Amortization of actuarial gain 20.5 1.4 Unrecognized prior service cost 16.3 — Amortization of prior service (credit) cost (1.0) 0.7 Impact of foreign currency translation (2.9) — Net change $ 41.2 $ (20.7) 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, 2023, 2022 and 2021 were as follows: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2023 2022 2021 2023 2022 2021 Service cost $ 26.6 $ 32.6 $ 38.6 $ 2.1 $ 3.4 $ 3.4 Interest cost 63.6 36.8 31.6 6.9 3.7 2.6 Expected return on plan assets (62.6) (64.6) (66.1) — — — Plan curtailment, settlement and termination (3.8) 2.3 (16.5) — (3.9) — Amortization of prior service cost (credit) 2.1 0.9 0.9 (0.7) (0.6) — Recognized net actuarial (gains) losses (18.3) (0.2) 1.3 (1.4) 0.3 0.2 Net periodic benefit cost $ 7.6 $ 7.8 $ (10.2) $ 6.9 $ 2.9 $ 6.2 During the year ended December 31, 2021, the Company recognized a settlement gain as a result of cash payments from lump sum elections related to the U.S. and Puerto Rico pension plans. 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, 2023 and 2022. Pension Benefits Other Postretirement Benefits (In millions) 2023 2022 2023 2022 Change in Projected Benefit Obligation Projected benefit obligation, beginning of year $ 1,379.0 $ 1,946.6 $ 137.5 $ 188.4 Service cost 26.6 32.6 2.1 3.4 Interest cost 63.6 36.8 6.9 3.7 Participant contributions 0.5 3.3 4.1 4.5 (Divestitures) acquisitions (8.8) 2.8 — — Plan settlements and terminations 8.6 (82.0) — (4.5) Actuarial losses (gains) 40.8 (439.4) (22.8) (43.3) Benefits paid (74.0) (54.1) (15.2) (14.7) Impact of foreign currency translation 7.3 (67.6) — — Projected benefit obligation, end of year $ 1,443.6 $ 1,379.0 $ 112.6 $ 137.5 Change in Plan Assets Fair value of plan assets, beginning of year $ 1,067.1 $ 1,366.4 $ — $ — Actual return on plan assets 95.2 (138.1) — — Company contributions 41.7 25.6 11.1 10.2 Participant contributions 0.5 3.3 4.1 4.5 Divestitures (12.1) — — — Plan settlements (7.1) (85.9) — — Benefits paid (74.0) (54.1) (15.2) (14.7) Impact of foreign currency translation (1.9) (50.1) — — Fair value of plan assets, end of year 1,109.4 1,067.1 — — Funded status of plans $ (334.2) $ (311.9) $ (112.6) $ (137.5) 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, 2023 and 2022: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2023 2022 2023 2022 Noncurrent assets $ 89.3 $ 118.3 $ — $ — Current liabilities (20.0) (14.6) (13.8) (15.4) Noncurrent liabilities (403.5) (415.6) (98.8) (122.1) Net accrued benefit costs $ (334.2) $ (311.9) $ (112.6) $ (137.5) 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 $1.36 billion and $1.31 billion at December 31, 2023 and 2022, 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, 2023 and 2022 were as follows: December 31, (In millions) 2023 2022 Plans with accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 1,058.1 $ 1,026.5 Accumulated benefit obligation 1,023.5 999.3 Fair value of plan assets 642.4 604.9 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, 2023 and 2022 and the classification of each investment category within the fair value hierarchy with respect to the inputs used to measure fair value: December 31, 2023 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 17.4 $ — $ — $ 17.4 Equity securities 401.6 30.3 — 431.9 Fixed income securities 175.9 281.6 — 457.5 Assets held by insurance companies and other 181.4 17.2 4.0 202.6 Total $ 776.3 $ 329.1 $ 4.0 $ 1,109.4 December 31, 2022 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 34.2 $ 0.9 $ — $ 35.1 Equity securities 42.9 353.4 — 396.3 Fixed income securities 181.6 271.5 — 453.1 Assets held by insurance companies and other 76.9 97.9 7.8 182.6 Total $ 335.6 $ 723.7 $ 7.8 $ 1,067.1 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, 2023 and 2022: Pension Benefits Other Postretirement Benefits 2023 2022 2023 2022 Discount rate 4.5 % 4.8 % 5.0 % 5.4 % Expected return on plan assets 6.1 % 5.0 % — % — % Rate of compensation increase 3.7 % 3.7 % — % — % 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, 2023: Pension Benefits Other Postretirement Benefits 2023 2022 2021 2023 2022 2021 Discount rate 4.8 % 2.3 % 1.9 % 5.4 % 2.5 % 1.9 % Expected return on plan assets 6.1 % 5.0 % 5.1 % — % — % — % Rate of compensation increase 3.7 % 3.1 % 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 2023 was 6.9% declining to a projected 4.0% in the year 2046. For 2024, the assumed weighted-average healthcare cost trend rate used will be 8.6% declining to a projected 4.0% in the year 2048. 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 2024 $ 100.6 $ 13.8 2025 99.1 13.8 2026 97.5 13.7 2027 105.2 13.1 2028 100.8 12.4 Thereafter 521.4 50.5 Total $ 1,024.6 $ 117.3 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 Profit Sharing 401(k) Plan and other 401(k) retirement plans. Profit sharing contributions are made at the discretion of the Company. 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, 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 401(k) 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 401(k) 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 $129.3 million, $111.5 million and $107.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Viatris has four reportable segments: Developed Markets, Greater China, JANZ, and Emerging Markets. The Company reports segment information on the basis of markets and geography, which reflects its focus on bringing its broad and diversified portfolio of branded and generic products, including complex products, to people in markets everywhere. Our Developed Markets segment comprises our operations primarily in North America and Europe. Our Greater China segment includes our operations in China, Taiwan and Hong Kong. Our JANZ segment reflects our operations in Japan, Australia and New Zealand. Our Emerging Markets segment encompasses our presence in more than 125 countries with developing markets and emerging economies including in Asia, Africa, Eastern Europe, Latin America and the Middle East as well as the Company’s ARV franchise. The Company’s chief operating decision maker is the Chief Executive Officer, who evaluates the performance of its segments based on total revenues and segment profitability. Certain costs are not included in the measurement of segment profitability, such as costs, if any, associated with the following: ◦ Intangible asset amortization expense and impairments of goodwill and long-lived assets; ◦ R&D and Acquired IPR&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 costs related to the Announced Divestitures and the Biocon Biologics Transaction, and, 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) 2023 2022 2021 2023 2022 2021 Reportable Segments: Developed Markets $ 9,251.9 $ 9,768.9 $ 10,428.7 $ 4,086.5 $ 4,878.1 $ 5,143.1 Greater China 2,160.4 2,201.2 2,212.8 1,426.8 1,512.5 1,397.1 JANZ 1,424.5 1,632.4 2,027.4 522.9 665.5 762.4 Emerging Markets 2,551.6 2,615.6 3,144.7 1,091.9 1,207.1 1,402.4 Total reportable segments $ 15,388.4 $ 16,218.1 $ 17,813.6 $ 7,128.1 $ 8,263.2 $ 8,705.0 Reconciling items: Intangible asset amortization expense (2,317.1) (2,504.6) (2,702.2) Intangible asset disposal & impairment charges (32.0) (173.5) (102.8) Impairment of goodwill (580.1) (117.0) — Globally managed research and development costs (805.2) (662.2) (681.0) Acquired IPR&D (105.5) (36.4) (70.1) Litigation settlements & other contingencies (111.6) (4.4) (329.2) Transaction related and other special items (774.4) (1,026.9) (2,832.2) Corporate and other unallocated (1,636.0) (2,123.3) (2,021.5) Earnings (loss) from operations $ 766.2 $ 1,614.9 $ (34.0) The following table represents the percentage of consolidated net sales to Viatris’ major customers during the years ended December 31, 2023, 2022, and 2021: Percentage of Consolidated Net Sales 2023 2022 2021 McKesson Corporation 10 % 11 % 9 % AmerisourceBergen Corporation 10 % 10 % 9 % Cardinal Health, Inc. 5 % 5 % 5 % 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) 2023 2022 2021 United States $ 3,551.8 $ 3,946.6 $ 4,176.4 China 1,889.0 1,951.3 1,981.5 ____________ |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
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 provided certain limited transition services to the other party. 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. During the years ended December 31, 2023, 2022 and 2021, the Company incurred $5.5 million, $54.5 million, and $30.4 million, respectively, related to this provision of the TSA, and approximately $143.5 million during the period beginning on the closing date of the Combination and ended December 31, 2023. As of December 31, 2022, the Company had exited substantially all transition services with Pfizer. In addition, the Company entered into retention agreements with certain key employees, whereby they agreed to continue to provide service to the Company for a period of time after the Combination. The Company is recording the expense for these agreements over the applicable service periods. At the time of closing of the Biocon Biologics Transaction, Viatris and Biocon Biologics also entered an agreement pursuant to which Viatris was providing commercialization and certain other transition services on behalf of Biocon Biologics, including billings, collections and the remittance of rebates, to ensure business continuity for patients, customers and colleagues. Biocon Biologics had substantially exited all transition services with Viatris as of December 31, 2023. In connection with the Announced Divestitures, Viatris has agreed, at the closing of the respective transactions, to enter into transition services and manufacturing and supply agreements pursuant to which the Company will provide services to the respective purchasers, substantially the same as we currently provide to the related businesses, generally for a period of up to 12 months, subject to potential extensions in certain circumstances. In addition, in connection with the OTC Transaction and the divestiture of our women’s healthcare business, we have agreed, at the closing of the respective transactions, to enter into distribution agreements for certain markets for a limited period of time. In connection with our API business divestiture, we have agreed to enter into a manufacturing and supply agreement pursuant to which we will purchase a significant amount of API from the purchaser in that transaction. 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, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring 2020 Restructuring Program During 2020, Viatris announced a significant global restructuring program in order to achieve synergies and ensure that the organization was optimally structured and efficiently resourced to deliver sustainable value to patients, shareholders, customers, and other stakeholders. As part of the restructuring, the Company optimized its commercial capabilities and enabling functions, and closed, downsized or divested certain manufacturing facilities globally that were 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. The actions under the 2020 restructuring program were substantially completed during 2023. Since the initiation of the 2020 restructuring program, the Company has incurred total pre-tax charges of approximately $1.4 billion through December 31, 2023. Such charges included approximately $450 million of non-cash charges mainly related to accelerated depreciation and asset impairment charges, including inventory write-offs, and cash costs of approximately $950 million, primarily related to severance and employee benefits expense, as well as other costs, including those related to contract terminations and other plant disposal costs. The following table summarizes the restructuring charges and the reserve activity for the restructuring program: (In millions) Employee Related Costs Other Exit Costs Total Balance at December 31, 2020 $ 262.6 $ 4.8 $ 267.4 Charges (3) 396.1 496.1 892.2 Reimbursable restructuring charges 26.4 — 26.4 Cash payment (385.5) (151.7) (537.2) Utilization — (345.0) (345.0) Foreign currency translation (7.0) (0.1) (7.1) Balance at December 31, 2021 $ 292.6 $ 4.1 $ 296.7 Charges (2) 38.2 48.3 86.5 Cash payment (170.1) (15.3) (185.4) Utilization — (34.9) (34.9) Foreign currency translation (5.1) (0.3) (5.4) Balance at December 31, 2022 $ 155.6 $ 1.9 $ 157.5 Charges (1) 17.6 107.6 125.2 Cash payment (77.8) (10.3) (88.1) Utilization (4) (4.0) (99.2) (103.2) Foreign currency translation 0.8 — 0.8 Balance at December 31, 2023 $ 92.2 $ — $ 92.2 ____________ (1) For the year ended December 31, 2023, total restructuring charges in Developed Markets, Greater China, JANZ, Emerging Markets, and Corporate/Other were approximately $80.3 million, $0.4 million, $29.5 million, $13.9 million, and $1.1 million, respectively. (2) For the year ended December 31, 2022, total restructuring charges in Developed Markets, Greater China, JANZ, Emerging Markets, and Corporate/Other were approximately $74.6 million, $2.5 million, $0.9 million, $8.2 million, and $0.3 million, respectively. (3) For the year ended December 31, 2021, total restructuring charges in Developed Markets, Greater China, JANZ, Emerging Markets, and Corporate/Other were approximately $623.8 million, $5.8 million, $138.1 million, and $94.1 million and $30.4 million, respectively. (4) For the year ended December 31, 2023, other exit costs included expense of $71.6 million relating to plant divestitures. At December 31, 2023 and 2022, accrued liabilities for restructuring and other cost reduction programs were primarily included in other current liabilities and other long-term obligations in the consolidated balance sheets. |
Collaboration and Licensing Agr
Collaboration and Licensing Agreements | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborative and Licensing Agreements | Licensing and Other Partner Agreements We periodically enter into licensing and other partner agreements with other pharmaceutical companies for the development, manufacture, marketing and/or sale of pharmaceutical products. Our significant licensing and other partner agreements are primarily focused on the development, manufacturing, supply and commercialization of multiple 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, 2023 totaled approximately $415 million. We estimate that the amounts that may be paid during the next twelve months to be approximately $89 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. Mapi In 2018, the Company entered into an exclusive license and commercialization agreement with Mapi for the development and commercialization on a world-wide basis of GA Depot. Under the terms of the license and commercialization agreement, as of December 31, 2023, Mapi is eligible to receive regulatory approval and commercial launch milestone payments of up to $90.0 million. Additionally, upon commercial launch of GA Depot, Mapi is eligible to receive royalties and sales-based milestones. In December 2023, the Company entered into a letter agreement, as amended, with Mapi for the development and commercialization of certain additional products, which is subject to finalization pending the execution of a definitive agreement, which is expected in the first half of 2024. The Company made an initial upfront payment of $75.0 million which was accounted for as Acquired IPR&D expense in the consolidated statements of operations during the year ended December 31, 2023. The Company holds investments in preferred shares of Mapi that are accounted for at cost, less impairment, if any, adjusted for observable price changes, in accordance with ASC 321, Investments – Equity Securities . During the year ended December 31, 2023, the Company made an additional investment of $30.0 million in preferred shares of Mapi. The preferred shares are convertible on a one-to-one basis into Mapi ordinary shares at Viatris’ option. The Company recognized a gain of $45.6 million during the year ended December 31, 2023 as a result of remeasuring our pre-existing equity interest in Mapi, which was recorded as a component of Other Income, Net in the consolidated statements of operations. The Company has determined that Mapi represents a variable interest entity (“VIE”), but has concluded that Viatris is not the primary beneficiary of Mapi as we do not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Accordingly, we have not consolidated Mapi’s results of operations and financial position into our consolidated financial statements. As of December 31, 2023 and 2022, our consolidated balance sheets included, within Other Assets , $132.1 million and $56.4 million, respectively, related to our equity investments in Mapi, which included cumulative unrealized gains of $62.1 million and $16.5 million, respectively, and within Prepaid Expenses and Other Current Assets , $52.5 million and $42.5 million, respectively, related to advances, including for initial orders of commercial launch supply of GA Depot under our supply agreement with Mapi. Our maximum exposure to loss as a result of our involvement with Mapi is limited to the carrying value of the investments and advances. Revance The Company and Revance have entered into an agreement pursuant to which the Company and Revance are 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®. Under the agreement, the Company is primarily responsible for (a) clinical development activities outside of North America (excluding Japan) (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 being shared equally between the parties, and the Company is responsible for all other clinical development costs and commercialization expenses. Theravance Biopharma The Company has a development and commercialization collaboration with Theravance Biopharma, for revefenacin. On November 9, 2018, the Company announced that the FDA approved the NDA for YUPELRI® (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. Viatris is responsible for commercial manufacturing and commercialization. Theravance Biopharma is co-promoting the product in the hospital channel under a profit-sharing arrangement. The Company has also acquired exclusive development and commercialization rights to nebulized revefenacin in China and adjacent territories, which include Hong Kong SAR, the Macau SAR and Taiwan, for an upfront payment of $18.5 million and additional potential development and sales milestones together with tiered royalties on net sales of nebulized revefenacin, if approved. Viatris is 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. 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, 2023, the Company has paid a total of $50.0 million in milestone payments to Theravance Biopharma. Other Development Agreements 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 Acquired IPR&D expense. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation The Company is involved in various disputes, governmental and/or regulatory inquiries, investigations and proceedings, tax proceedings and litigation matters, both in the U.S. and abroad, that arise from time to time, some of which could result in losses, including damages, fines and/or civil penalties, and/or criminal charges against the Company. These matters are often complex and have outcomes that are difficult to predict. In addition, in connection with the Combination, the Company has generally assumed liability for, and control of, pending and threatened legal matters relating to the Upjohn Business – including certain matters initiated against Pfizer described below – and has agreed to indemnify Pfizer for liabilities arising out of such assumed legal matters. Pfizer, however, has agreed to retain various matters – including certain specified competition law matters – to the extent they arise from conduct during the pre-Distribution period and has agreed to indemnify the Company for liabilities arising out of such matters. While the Company believes that it has meritorious defenses with respect to the claims asserted against it and the assumed legal matters referenced above, and intends to vigorously defend its position, the process of resolving these matters is inherently uncertain and may develop over a long period of time, and so it is not possible to predict the ultimate resolution of any such matter. It is possible that an unfavorable resolution of any of the ongoing matters could have a material effect on the Company’s business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price. Some of these governmental inquiries, investigations, proceedings and litigation matters with which the Company is involved are described below, and unless otherwise disclosed, the Company is unable to predict the outcome of the matter or to provide an estimate of the range of reasonably possible material losses. The Company records accruals for loss contingencies to the extent we conclude it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company is also involved in other pending proceedings for which, in the opinion of the Company based upon facts and circumstances known at the time, either the likelihood of loss is remote or any reasonably possible loss associated with the resolution of such proceedings is not expected to be material to the Company’s business, financial position, results of operations, cash flows, ability to pay dividends and/or stock price. If and when any reasonably possible losses associated with the resolution of such other pending proceedings, in the opinion of the Company, become material, the Company will disclose such matters. Legal costs are recorded as incurred and are classified in SG&A in the Company’s consolidated statements of operations. EpiPen® Auto-Injector Litigation On February 14, 2020, the Company, together with other non-Viatris affiliated companies, were named as defendants in a putative direct purchaser class action filed in the U.S. District Court for the District of Kansas relating to the pricing and/or marketing of the EpiPen® Auto-Injector. On September 21, 2021, after Plaintiffs’ then operative complaint was dismissed with an option to file a limited amended complaint, Plaintiffs filed an amended complaint asserting federal antitrust claims which are based on allegations concerning a patent settlement between Pfizer and Teva and other alleged actions regarding the launch of Teva’s generic epinephrine auto-injector. Plaintiffs’ seek monetary damages, declaratory relief, attorneys’ fees and costs. A trial is currently scheduled to begin in March 2026. 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. A class certification motion is pending. 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 was transferred into a MDL in the U.S. District Court for the District of Kansas and alleged 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 sought monetary damages, declaratory relief, attorneys’ fees and costs. The Court granted the Company’s motion for summary judgment and dismissed Sanofi’s claims. Sanofi’s appeal was denied. Sanofi’s petition seeking review by the U.S. Supreme Court was also denied and concludes this matter. The Company has a total accrual of approximately $5.5 million related to these matters at December 31, 2023, which is included in other current liabilities in the 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 have fully cooperated with these investigations, which we believe are related to a broader industry-wide investigation of the generic pharmaceutical industry. We have not had contact from DOJ concerning the above-described subpoenas or civil investigative demand in several years. Civil Litigation Beginning in 2016, the Company, along with other manufacturers, has been named as a defendant in lawsuits filed in the United States and Canada generally alleging anticompetitive conduct with respect to generic drugs. The lawsuits have been filed by plaintiffs, including putative classes of direct purchasers, indirect purchasers, and indirect resellers, as well as individual direct and indirect purchasers and certain cities and counties. The lawsuits allege harm under federal laws and the United States lawsuits also allege harm under state laws, including antitrust laws, state consumer protection laws and unjust enrichment claims. Some of the United States lawsuits also name as defendants the Company’s President, including allegations against him with respect to a single drug product, and one of the Company’s sales employees, including allegations against him with respect to certain generic drugs. The vast majority of the lawsuits have been consolidated in an MDL proceeding in the Eastern District of Pennsylvania (“EDPA”). Plaintiffs generally seek monetary damages, restitution, declaratory and injunctive relief, attorneys’ fees and costs. The EDPA Court has ordered certain plaintiffs’ complaints regarding two single-drug product cases to proceed as bellwethers. The Company is named in those plaintiffs’ complaints that regard one of the two individual drug products and class certification motions are pending in that matter. Attorneys General Litigation On December 21, 2015, the Company received a subpoena and interrogatories from the Connecticut Office of the Attorney General seeking information relating to the marketing, pricing and sale of certain of the Company’s generic products and communications with competitors about such products. On December 14, 2016, attorneys general of certain states filed a complaint in the United States District Court for the District of Connecticut against several generic pharmaceutical drug manufacturers, including the Company, alleging anticompetitive conduct with respect to, among other things, a single drug product. The complaint has subsequently been amended, including on June 18, 2018, to add attorneys general alleging violations of federal and state antitrust laws, as well as violations of various states’ consumer protection laws. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA. The operative complaint includes attorneys general of forty-four 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-four states and the Commonwealth of Puerto Rico against certain individuals, including the Company’s President, with respect to a single drug product. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, restitution, and other equitable monetary relief. The states’ claim for disgorgement and restitution under federal law in this case has been dismissed. On May 10, 2019, certain attorneys general filed a new complaint in the United States District Court for the District of Connecticut against various drug manufacturers and individuals, including the Company and one of its sales employees, alleging anticompetitive conduct with respect to additional generic drugs. On November 1, 2019, the complaint was amended, adding additional states as plaintiffs. The operative complaint is brought by attorneys general of forty-five states, certain territories and the District of Columbia. The amended complaint also includes claims asserted by attorneys general of forty states and certain territories against several individuals, including a Company sales employee. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, restitution, and other equitable monetary relief. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA. On June 10, 2020, certain attorneys general filed a new complaint in the United States District Court for the District of Connecticut against drug manufacturers, including the Company, and individual defendants (none from the Company), alleging anticompetitive conduct with respect to additional generic drugs. On September 9, 2021, the complaint was amended, adding an additional state as a plaintiff. The operative complaint is brought by attorneys general of forty-four states, certain territories and the District of Columbia. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, restitution, and other equitable monetary relief. The states’ claim for disgorgement and restitution under federal law in this case has been dismissed. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA and has been ordered to proceed as a bellwether. On January 31, 2024, the United States Judicial Panel on Multidistrict Litigation (“JPML”) granted the Attorneys Generals’ motion to remand the aforementioned complaints to the U.S. District Court for the District of Connecticut. The order is currently stayed while Defendants challenge remand. Securities Related Litigation Purported class action complaints were filed in October 2016 against Mylan N.V. and Mylan Inc. (collectively, for the purposes of this paragraph, “Mylan”), certain of Mylan’s former directors and officers, and certain of the Company’s current directors and officers (collectively, for purposes of this paragraph, the “defendants”) in the United States District Court for the Southern District of New York (“SDNY”) on behalf of certain purchasers of securities of Mylan on the NASDAQ (“SDNY Class Action Litigation”). 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 March 30, 2023, the Court dismissed all of Plaintiffs’ claims by granting Defendants’ motion for summary judgment and denying Plaintiffs’ cross-motion for partial summary judgment. Plaintiffs’ appeal to the U.S. Court of Appeals for the Second Circuit is pending. On April 30, 2017, a similar lawsuit was filed in the Tel Aviv District Court (Economic Division) in Israel (“Israel Litigation”), which had been stayed pending a decision in the SDNY Class Action Litigation. The Israel Litigation was dismissed by the Court due to lack of activity and may be refiled. 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 (“ADIA Litigation”) that overlap with those asserted in the SDNY Class Action Litigation. The complaint filed in the ADIA Litigation 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 (“WDPA”) on behalf of certain purchasers of securities of Mylan N.V. (“WDPA Mylan N.V. Class Action Litigation”). 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 Nashik and Morgantown manufacturing plants and inspections at the plants by the FDA. Plaintiff seeks certification of a class of purchasers of Mylan N.V. securities between February 16, 2016 and May 7, 2019. On May 18, 2023, the Court dismissed 45 of the 46 challenged statements. The complaint seeks monetary damages, as well as the plaintiff’s fees and costs. On February 15, 2021, a complaint was filed in the SDNY 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 certain current employees of the Company (“Skandia Litigation”). The Complaint filed in the Skandia Litigation asserts claims which are based on allegations that are similar to those in the SDNY Class Action Litigation and WDPA Mylan N.V. Class Action Litigation. Plaintiffs seek compensatory damages, costs and expenses and attorneys’ fees. On October 28, 2021, the Company and certain of its then officers and directors were named as defendants in a putative class action lawsuit filed in the Court of Common Pleas of Allegheny County, Pennsylvania on behalf of former Mylan shareholders who received Company common stock in connection with the Combination. A non-Viatris affiliated company and persons were also named as defendants. The complaint alleges violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 for purportedly failing to disclose or misrepresenting material information in the registration statement and related prospectus issued in connection with the Combination. On January 3, 2023, an amended complaint was filed naming the same defendants and alleging the same violations as the original complaint. Plaintiffs seek monetary damages, reasonable costs and expenses, and certain other equitable and injunctive relief. A settlement has been reached to fully resolve this matter, subject to court approval. Beginning in May 2023, putative class action complaints were filed against the Company and certain of the Company’s current and former officers, directors, and employees in the WDPA on behalf of certain purchasers of securities of the Company. These actions have been consolidated and, on October 23, 2023, a consolidated amended putative class action complaint was filed in the WDPA against the Company, a current officer and director, and a former officer and director (“WDPA Viatris Class Action Litigation”). The operative complaint alleges that defendants made false or misleading statements and omissions of material fact, in violation of federal securities laws, in connection with disclosures relating to the Company’s projected financial performance and biosimilars business. Plaintiffs seek certification of a class of purchasers of Company securities between March 1, 2021 and February 25, 2022. Plaintiffs seek monetary damages, reasonable costs and expenses, and certain other relief. Beginning in August 2023, stockholder derivative actions purportedly on behalf of Viatris were filed in the WDPA against certain of the Company’s current and former officers, directors, and employees alleging that defendants failed to ensure that the Company was making truthful and accurate statements in connection with the disclosures alleged in the WDPA Viatris Class Action Litigation. Viatris is named as a nominal defendant in these derivative actions. Certain of the complaints also assert claims for corporate waste and unjust enrichment. Plaintiffs seek various forms of relief, including damages, disgorgement, restitution, costs and 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. On January 13, 2023, the Company received a civil subpoena from the Attorney General of the State of New York seeking information relating to opioids manufactured, marketed, or sold by the Company and related subject matter. A similar subpoena was received in January 2024 from the Attorney General of the State of Alaska. The Company is fully cooperating with these subpoena requests. The Company has accrued $77.5 million in connection with the possible resolution of certain of these matters at December 31, 2023, which is included in other current liabilities in the 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. Meda Sweden Commercial Dispute On August 30, 2021, Ocular AS and other related entities (“Claimants”) initiated an arbitration in Sweden against Meda OTC AB and Meda AB (collectively, “Meda”) alleging breach of a 2013 sale and purchase agreement between Claimants and Meda concerning commercialization of a dental hygiene product. Claimants sought approximately $155 million in purported damages, plus interest and costs. In May 2023, the arbitration panel ruled in Claimants’ favor and Meda resolved the matter for approximately $21.8 million, which was expensed and paid in 2023. Citalopram In 2013, the European Commission issued a decision finding that Lundbeck and several generic companies, including Generics [U.K.] Limited (“GUK”), had violated EU competition rules relating to various settlement agreements entered into in 2002 for citalopram. After various appeals, the European Commission’s decision was upheld in March 2021. On March 28, 2023, bodies of the national health authorities in England & Wales served a claim in the U.K. Competition Appeals Tribunal against parties to the citalopram investigation, including GUK, seeking monetary damages, plus interest, purportedly arising from the settlement agreements. GUK, beginning in approximately 2018, has received notices from other health service authorities and insurers asserting an intention to file similar claims. Pursuant to an indemnification agreement, Merck KGaA and GUK have agreed to equally share any damages claimed against Merck KGaA and/or GUK alleged to have been caused by the conduct which is the subject of the European Commission decision. The Company has accrued approximately €11.5 million as of December 31, 2023 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 $64.9 million as of December 31, 2023 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 naming the Company in the United States are pending in two MDLs, namely an MDL pending in the United States District Court for the District of New Jersey concerning valsartan and an MDL pending in the United States District Court for the Southern District of Florida concerning ranitidine. The lawsuits against the Company in the MDLs include putative and certified classes seeking the refund of the purchase price and other economic and punitive damages allegedly sustained by consumers and end payors as well as individuals seeking compensatory and punitive damages for personal injuries allegedly caused by ingestion of the medications. Similar lawsuits pertaining to valsartan have been filed in other countries. Third party payor, consumer and medical monitoring classes were certified in the valsartan MDL and a Rule 23(f) petition to appeal the certification decision was denied. 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 end-payor plaintiff immediately appealed to the U.S. Court of Appeals for the Eleventh Circuit, which affirmed the dismissal. The personal injury and consumer putative class plaintiffs filed amended master complaints. The Company was not named as a defendant in the amended master complaints, though it was still named in certain short form complaints filed by personal injury plaintiffs. The trial court has dismissed all remaining claims against the generic defendants. Certain of the personal injury plaintiffs appealed this dismissal, which remains pending. 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 Missouri and New York. Prior state court proceedings in California have now been terminated after the California Court previously granted motions (i) 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); (ii) for summary judgment in connection with the 10, 20, and 40 mg plaintiffs; and (iii) seeking the dismissal of the remaining cases involving the highest dose of Lipitor (80 mg). 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 approximately $5.1 million accrued related to its intellectual property matters at December 31, 2023. It is reasonably possible that we may incur additional losses and fees but we cannot estimate a range of such reasonably possible losses or legal fees related to these claims at this time. Lyrica - United Kingdom Beginning in 2014, Pfizer was involved in patent litigation in the English courts concerning the validity of its Lyrica pain use patent. In 2015, the High Court of Justice in London ordered that the NHS England issue guidance for prescribers and pharmacists directing the prescription and dispensing of Lyrica by brand when pregabalin was prescribed for the treatment of neuropathic pain and entered a preliminary injunction against certain Sandoz group companies preventing the sale of Sandoz’s full label pregabalin product. Pfizer undertook to compensate certain generic companies and NHS entities for losses caused by these orders, which remained in effect until patent expiration in July 2017. In November 2018, the U.K. Supreme Court ruled that all the relevant claims directed to neuropathic pain were invalid. Dr. Reddy’s Laboratories filed a claim for monetary damages, interest, and costs in May 2020, followed by the Scottish Ministers and fourteen Scottish Health Boards (together, NHS Scotland) in July 2020. In September 2020, Teva, Sandoz, Ranbaxy, Actavis, and the Secretary of State for Health and Social Care, together with 32 other NHS entities (together, NHS England, Wales, and Northern Ireland) filed their claims. All of the claims have been resolved. Yupelri Beginning in January 2023, certain generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of Yupelri® with associated Paragraph IV certifications. The companies assert the invalidity and/or non-infringement of polymorph patents expiring in 2030 and 2031, and a method of use patent expiring in 2039. The companies have not filed Paragraph IV certifications to our compound patents, which currently expire in December 2025, with one compound patent subject to a patent term extension to October 2028. In February 2023, we brought patent infringement actions against the generic filers in federal district courts, including the U.S. District Court for the District of New Jersey, the U.S. District Court for the District of Delaware, and the U.S. District Court for the Middle District of North Carolina, asserting infringement of the patents by the generic companies. The actions filed in Delaware and North Carolina have been dismissed and the actions will proceed in New Jersey. The Company has entered into settlement agreements with Teva, Accord, Orbicular, and Lupin granting licenses to commercialize their generic versions of Yupelri® in April 2039 or earlier depending on certain circumstances. Three ANDA file |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
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 Charged to Other (1) Deductions (2) Ending Allowance for doubtful accounts: Year ended December 31, 2023 $ 114.7 26.6 — (22.5) $ 118.8 Year ended December 31, 2022 $ 154.5 21.5 — (61.3) $ 114.7 Year ended December 31, 2021 $ 159.9 16.0 — (21.4) $ 154.5 Valuation allowance for deferred tax assets: Year ended December 31, 2023 $ 387.0 41.0 16.1 (22.7) $ 421.4 Year ended December 31, 2022 $ 780.4 42.7 — (436.1) $ 387.0 Year ended December 31, 2021 $ 443.6 82.2 260.8 (6.2) $ 780.4 |
Insider Trading Arrangements
Insider Trading Arrangements - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2023 | Nov. 28, 2023 | |
Trading Arrangements, by Individual | |||
Non-Rule 10b5-1 Arrangement Adopted | false | ||
Rule 10b5-1 Arrangement Terminated | false | ||
Non-Rule 10b5-1 Arrangement Terminated | false | ||
JoEllen Lyons Dillon [Member] | |||
Trading Arrangements, by Individual | |||
Material Terms of Trading Arrangement | On November 28, 2023, JoEllen Lyons Dillon, a director of the Company, adopted a written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act. The plan provides for the sale of up to 20,000 shares of the Company’s common stock until all such shares are sold or March 4, 2025, whichever comes first. | ||
Name | JoEllen Lyons Dillon | ||
Title | director of the Company | ||
Rule 10b5-1 Arrangement Adopted | true | ||
Adoption Date | November 28, 2023 | ||
Termination Date | March 4, 2025 | ||
Arrangement Duration | 462 days | ||
Aggregate Available | 20 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. |
Use of Estimates in the Preparation of Financial Statements | 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 | 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. Under ASC 830, Foreign Currency Matters |
Cash and Cash Equivalents | 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 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 income, 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, with gains and losses included in Other income, net in the consolidated statements of operations. 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. Changes in the fair value of equity securities are recorded in Other income, net in the consolidated statements of operations . Investments in equity securities with readily determinable fair values are recorded at fair value. Investments in equity securities without readily determinable fair values for which the Company has elected to utilize the measurement alternative under ASC 321, Investments - Equity Securities 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 income, 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 | 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. |
Property, Plant and Equipment | Property, Plant and Equipment. |
Intangible Assets and Goodwill | 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 ASC 805, Business Combinations , 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, including milestone payments related to development compounds due upon receipt of regulatory approvals, 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 intangible assets, principally IPR&D acquired as part of business combinations, 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 | Contingent Consideration. Viatris records contingent consideration liabilities resulting from business acquisitions or divestitures at its estimated fair value on the acquisition or divestiture 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, operating results, 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 or divestiture 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. Viatris records contingent consideration assets resulting from divestitures when the contingent consideration is resolved. |
Impairment of Long-Lived Assets | 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. |
Divestitures | Divestitures. For businesses that are divested, including divestitures of products that qualify as a business, the Company records the net gain or loss on the sale within Other income, net , and allocates the relative fair value of goodwill associated with the businesses in the determining the gain or loss on sale. Any resulting goodwill impairment is recorded within SG&A. The Company records amounts received as part of TSAs within Other income, net For divestitures of products that qualify as assets, the Company records the gain or loss on sale within SG&A. |
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. The Company also has the CP Notes, Receivables Facility 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 | Revenue Recognition. The Company recognizes revenues in accordance with ASC 606, Revenue from Contracts with Customers . Under ASC 606, the Company recognizes net revenue for product sales when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are recorded net of provisions for variable consideration, including discounts, rebates, governmental rebate programs, price adjustments, returns, chargebacks, promotional programs and other sales allowances. Accruals for these provisions are presented in the 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 revenues in the consolidated statements of operations. Receivables, including deferred consideration, with terms in excess of one year are initially recorded at their net present value using discount rates reflecting the relative credit risk. |
Research and Development and Acquired IPR&D | Research and Development. R&D expenses are charged to operations as incurred. R&D expense consists of costs incurred in performing research and development activities, including but not limited to, compensation and benefits, facilities and overhead expense, clinical trial expense and fees paid to contract research organizations. Acquired IPR&D. Acquired IPR&D expense includes the initial cost of externally developed IPR&D projects, acquired directly in a transaction other than a business combination, that do not have an alternative future use. Additionally, the related milestone payment obligations that are incurred prior to regulatory approval of the compound are recorded as acquired IPR&D expense when the event triggering the obligation to pay the milestone occurs. |
Income Taxes | 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 | 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. Basic and diluted earnings per share attributable to Viatris Inc. are calculated as follows: Year Ended December 31, (In millions, except per share amounts) 2023 2022 2021 Basic earnings (loss) attributable to Viatris Inc. common shareholders (numerator): Net earnings (loss) attributable to Viatris Inc. common shareholders $ 54.7 $ 2,078.6 $ (1,269.1) Shares (denominator): Weighted average shares outstanding 1,200.3 1,212.1 1,208.8 Basic earnings (loss) per share attributable to Viatris Inc. shareholders $ 0.05 $ 1.71 $ (1.05) Diluted earnings (loss) attributable to Viatris Inc. common shareholders (numerator): Net earnings (loss) attributable to Viatris Inc. common shareholders $ 54.7 $ 2,078.6 $ (1,269.1) Shares (denominator): Weighted average shares outstanding 1,200.3 1,212.1 1,208.8 Share-based awards 6.6 5.3 — Total dilutive shares outstanding 1,206.9 1,217.4 1,208.8 Diluted earnings (loss) per share attributable to Viatris Inc. shareholders $ 0.05 $ 1.71 $ (1.05) |
Share-Based Compensation | 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 | 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 or divestitures. 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 within the same line item in the consolidated statements of operations as the hedged item. When such instruments do not qualify for hedge accounting the changes in fair value are recorded in the consolidated statements of operations within Other income, net |
Financial Instruments | 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 carries derivative instruments in the consolidated balance sheets at fair value, determined by reference to market data such as forward rates for currencies, implied volatility, 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. 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 In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50), which requires entities to provide qualitative and quantitative disclosures about their supplier finance programs, including a rollforward of related obligations. We adopted this ASU effective January 1, 2023, with the exception of the amendment on rollforward information, which will be adopted in our fiscal year beginning on January 1, 2024 as set forth in ASU 2022-04. Refer to Note 6 Balance Sheet Components for additional information. The adoption of ASU 2022-04 did not affect the Company’s financial condition, results of operations or cash flows as the guidance only requires additional disclosures. In October 2021, the FASB issued Accounting Standards Update 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires entities (acquirers) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606. We adopted this ASU effective January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. Accounting Standards Issued Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which for a limited period of time adds ASC 848 to provide 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. On December 21, 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 until December 31, 2024. ASU 2022-06 became effective upon issuance. Entities can apply the provisions of ASU 2020-04 immediately, as applicable, and generally the provisions of the guidance are available through December 31, 2024 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 November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which includes amendments to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption is permitted. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires expanded income tax disclosures, including greater disaggregation of information in the effective tax rate reconciliation and of income taxes paid. The amendments in ASU 2023-09 are effective for all public entities for fiscal years beginning after December 15, 2024, with early adoption is permitted. The Company is currently assessing the impact of the adoption of this guidance on its consolidated financial statements and disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 2021 Basic earnings (loss) attributable to Viatris Inc. common shareholders (numerator): Net earnings (loss) attributable to Viatris Inc. common shareholders $ 54.7 $ 2,078.6 $ (1,269.1) Shares (denominator): Weighted average shares outstanding 1,200.3 1,212.1 1,208.8 Basic earnings (loss) per share attributable to Viatris Inc. shareholders $ 0.05 $ 1.71 $ (1.05) Diluted earnings (loss) attributable to Viatris Inc. common shareholders (numerator): Net earnings (loss) attributable to Viatris Inc. common shareholders $ 54.7 $ 2,078.6 $ (1,269.1) Shares (denominator): Weighted average shares outstanding 1,200.3 1,212.1 1,208.8 Share-based awards 6.6 5.3 — Total dilutive shares outstanding 1,206.9 1,217.4 1,208.8 Diluted earnings (loss) per share attributable to Viatris Inc. shareholders $ 0.05 $ 1.71 $ (1.05) |
Revenue Recognition and Accou_2
Revenue Recognition and Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022, and 2021, respectively: (In millions) 2023 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 5,239.0 2,152.1 782.9 1,626.5 9,800.5 Generics 4,012.9 8.3 641.6 925.1 5,587.9 Total Viatris $ 9,251.9 $ 2,160.4 $ 1,424.5 $ 2,551.6 $ 15,388.4 (In millions) 2022 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 5,160.4 2,190.7 922.6 1,615.9 9,889.6 Generics 4,608.5 10.5 709.8 999.7 6,328.5 Total Viatris $ 9,768.9 $ 2,201.2 $ 1,632.4 $ 2,615.6 $ 16,218.1 (In millions) 2021 Net Sales Product Category Developed Markets Greater China JANZ Emerging Markets Total Brands 5,759.2 2,207.8 1,197.1 1,677.2 10,841.3 Generics 4,669.5 5.0 830.3 1,467.5 6,972.3 Total Viatris $ 10,428.7 $ 2,212.8 $ 2,027.4 $ 3,144.7 $ 17,813.6 ____________ (a) Amounts include the impact of foreign currency translations compared to the prior year period. (b) Amounts for the years ended December 31, 2022 and 2021 include approximately $601.1 million and $607.3 million, respectively, related to the biosimilars business which was contributed to Biocon Biologics in November 2022. The Company has not recognized the results of the biosimilars business in its consolidated financial statements subsequent to November 29, 2022. (c) As a result of the contribution of the biosimilars business to Biocon Biologics in November 2022, Complex Gx and Biosimilars , which were previously presented as a separate line item, are now included within Generics. Reclassifications were made to prior periods to conform to the current period presentation. The following table presents net sales on a consolidated basis for select key products for the years ended December 31, 2023, 2022, and 2021, respectively: Year Ended December 31, (In millions) 2023 2022 2021 Select Key Global Products Lipitor ® $ 1,559.3 $ 1,635.2 $ 1,663.2 Norvasc ® 732.4 775.1 824.7 Lyrica ® 556.5 623.8 728.5 EpiPen® Auto-Injectors 442.2 378.0 391.7 Viagra ® 428.8 458.9 533.8 Celebrex ® 330.6 338.1 344.4 Creon ® 304.9 304.0 309.8 Effexor ® 262.9 279.6 316.8 Zoloft ® 235.7 246.2 284.3 Xalabrands 193.2 195.1 226.0 Select Key Segment Products Yupelri ® $ 220.8 $ 202.1 $ 161.9 Dymista ® 200.0 179.8 168.0 Influvac ® 192.4 225.5 299.3 Amitiza ® 157.0 167.9 201.5 Xanax ® 154.8 156.5 185.9 ____________ (a) The Company does not disclose net sales for any products considered competitively sensitive. (b) Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches. (c) Amounts include the impact of foreign currency translations compared to the prior year period. (d) Refer to intellectual property matters included in Note 19 Litigation for additional information regarding Yupelri® and Amitiza®. The following is a rollforward of the categories of variable consideration during 2023: (In millions) Balance at December 31, 2022 Current Provision Related to Sales Made in the Current Period Acquisitions, Divestitures, and Other Checks/ Credits Issued to Third Parties Effects of Foreign Exchange Balance at December 31, 2023 Chargebacks $ 523.4 $ 5,457.9 $ (8.1) $ (5,443.6) $ 0.7 $ 530.3 Rebates, promotional programs and other sales allowances 1,284.2 3,857.6 20.6 (4,071.3) 11.8 1,102.9 Returns 513.4 223.2 (26.2) (286.8) 1.8 425.4 Governmental rebate programs 366.5 766.0 8.7 (726.3) 6.4 421.3 Total $ 2,687.5 $ 10,304.7 $ (5.0) $ (10,528.0) $ 20.7 $ 2,479.9 |
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, 2023 and 2022, respectively: (In millions) December 31, December 31, Accounts receivable, net $ 1,483.6 $ 1,798.7 Other current liabilities 996.3 888.8 Total $ 2,479.9 $ 2,687.5 Accounts receivable, net was comprised of the following at December 31, 2023 and 2022, respectively: (In millions) December 31, 2023 December 31, 2022 Trade receivables, net $ 2,823.8 $ 3,243.8 Other receivables 876.6 570.7 Accounts receivable, net $ 3,700.4 $ 3,814.5 |
Disaggregation of Revenue, 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, 2023, 2022 and 2021, respectively: Year Ended December 31, (In millions) 2023 2022 2021 Gross sales $ 25,693.1 $ 27,662.1 $ 30,553.4 Gross to net adjustments: Chargebacks (5,457.9) (6,192.2) (5,530.1) Rebates, promotional programs and other sales allowances (3,857.6) (4,346.2) (6,135.6) Returns (223.2) (296.7) (384.6) Governmental rebate programs (766.0) (608.9) (689.5) Total gross to net adjustments $ (10,304.7) $ (11,444.0) $ (12,739.8) Net sales $ 15,388.4 $ 16,218.1 $ 17,813.6 ____________ (a) Amounts for the years ended December 31, 2022 and 2021 include the biosimilars business which was contributed to Biocon Biologics in November 2022. The Company has not recognized the results of the biosimilars business in its consolidated financial statements subsequent to November 29, 2022. |
Acquisitions and Other Transa_2
Acquisitions and Other Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The allocation of the purchase price to the assets acquired and liabilities assumed for Oyster Point is as follows: (In millions) Preliminary Purchase Price Allocation as of January 3, 2023 (a) Measurement Period Adjustments (b) Purchase Price Allocation as of December 31, 2023 (as adjusted) Current assets (excluding inventories and net of cash acquired) $ 26.9 $ — $ 26.9 Inventories 37.8 — 37.8 Property, plant and equipment 1.4 — 1.4 Identified intangible assets 334.0 — 334.0 Goodwill 5.9 0.8 6.7 Deferred income tax benefit 17.7 (0.8) 16.9 Other assets 7.7 — 7.7 Total assets acquired $ 431.4 $ — $ 431.4 Current liabilities 37.0 — 37.0 Other noncurrent liabilities 1.7 — 1.7 Net assets acquired (net of $34.7 of cash acquired) $ 392.7 $ — $ 392.7 __________ (a) As previously reported in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2023. (b) The measurement period adjustments were recorded in the fourth quarter of 2023 and are related to income taxes. (In millions) Preliminary Purchase Price Allocation as of January 3, 2023 (a) Measurement Period Adjustments (b) Purchase Price Allocation as of December 31, 2023 (as adjusted) IPR&D $ 290.0 $ — $ 290.0 Goodwill 89.3 (0.1) 89.2 Total assets acquired $ 379.3 $ (0.1) $ 379.2 Current liabilities 2.2 — 2.2 Deferred tax liabilities 52.1 (0.1) 52.0 Net assets acquired (net of $0.2 of cash acquired) $ 325.0 $ — $ 325.0 __________ (a) As previously reported in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2023. (b) The measurement period adjustment was recorded in the fourth quarter of 2023 and is related to income taxes. |
Business Acquisition, Pro Forma Information | The following table presents supplemental unaudited pro forma information for the acquisition, as if it had occurred on January 1, 2022. The unaudited pro forma results reflect certain adjustments related to past operating performance and acquisition accounting adjustments, such as increased 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 acquisition. 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 date above, nor are they indicative of the future operating results of Viatris and its subsidiaries. Year Ended (Unaudited, in millions, except per share amounts) December 31, 2023 December 31, 2022 Total revenues $ 15,426.9 $ 16,283.4 Net earnings $ 93.8 $ 1,905.7 Earnings per share: Basic $ 0.08 $ 1.57 Diluted $ 0.08 $ 1.57 Weighted average shares outstanding: Basic 1,200.3 1,212.1 Diluted 1,206.9 1,217.4 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Balance Sheet Components [Abstract] | |
Cash and Restricted Cash | Cash and restricted cash (In millions) December 31, December 31, December 31, Cash and cash equivalents $ 991.9 $ 1,259.9 $ 701.2 Restricted cash, included in prepaid and other current assets 1.7 2.6 5.0 Cash, cash equivalents and restricted cash $ 993.6 $ 1,262.5 $ 706.2 |
Inventories | Inventories (In millions) December 31, 2023 December 31, 2022 Raw materials $ 731.7 $ 571.5 Work in process 602.1 755.4 Finished goods 2,135.9 2,192.6 Inventories $ 3,469.7 $ 3,519.5 |
Prepaid expenses and other current assets | Prepaid expenses and other current assets (In millions) December 31, 2023 December 31, 2022 Prepaid expenses $ 155.9 $ 194.6 Deferred consideration due from Biocon Biologics 321.2 — Available-for-sale fixed income securities 37.0 35.3 Fair value of financial instruments 106.2 134.7 Equity securities 49.3 42.6 Deferred charge for taxes on intercompany profit 747.3 747.2 Income tax receivable 340.2 328.4 Other current assets 271.0 328.4 Prepaid expenses and other current assets $ 2,028.1 $ 1,811.2 |
Property, plant and equipment, net | Property, plant and equipment, net (In millions) December 31, 2023 December 31, 2022 Machinery and equipment $ 2,774.5 $ 2,936.7 Buildings and improvements 1,444.4 1,539.7 Construction in progress 431.2 474.0 Land and improvements 120.2 133.4 Gross property, plant and equipment 4,770.3 5,083.8 Accumulated depreciation 2,010.7 2,059.3 Property, plant and equipment, net $ 2,759.6 $ 3,024.5 |
Other assets | Other assets (In millions) December 31, 2023 December 31, 2022 CCPS in Biocon Biologics $ 976.3 $ 997.4 Operating lease right-of-use assets 245.6 259.3 Non-marketable equity investments 165.7 94.0 Deferred consideration due from Biocon Biologics — 299.5 Other long-term assets 821.1 753.3 Other assets $ 2,208.7 $ 2,403.5 |
Accounts payable | Accounts payable (In millions) December 31, 2023 December 31, 2022 Trade accounts payable $ 1,381.4 $ 1,158.0 Other payables 556.8 608.6 Accounts payable $ 1,938.2 $ 1,766.6 |
Other current liabilities | Other current liabilities (In millions) December 31, 2023 December 31, 2022 Accrued sales allowances $ 996.3 $ 888.8 Payroll and employee benefit liabilities 844.5 746.8 Legal and professional accruals, including litigation accruals 244.0 297.2 Contingent consideration 76.1 64.4 Accrued restructuring 36.4 95.3 Accrued interest 66.8 80.2 Fair value of financial instruments 124.6 187.0 Operating lease liability 83.0 80.6 Due to Biocon Biologics 23.8 22.5 Other 898.4 978.1 Other current liabilities $ 3,393.9 $ 3,440.9 |
Other long-term obligations | (In millions) December 31, 2023 December 31, 2022 Employee benefit liabilities $ 504.3 $ 544.6 Contingent consideration (1) 139.0 310.6 Tax related items, including contingencies 399.3 414.6 Operating lease liability 165.4 181.4 Accrued restructuring 59.2 60.4 Other 249.7 244.9 Other long-term obligations $ 1,516.9 $ 1,756.5 (1) Balances as of December 31, 2023 and 2022 include a total of $15.8 million and $221.2 million, respectively, due to Biocon Biologics. Refer to Note 9 Financial Instruments and Risk Management for additional information. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost | Other information related to leases was as follows: As of December 31, 2023 Remaining lease terms 1 year to 21 years Weighted-average remaining lease term 5 years Weighted-average discount rate 3.3 % |
Lessee, Operating Lease, Liability, Maturity | As of December 31, 2023, maturities of lease liabilities were as follows for each of the years ending December 31: (In millions) 2024 $ 79.3 2025 62.7 2026 41.5 2027 30.4 2028 17.3 Thereafter 39.5 Total lease payments $ 270.7 Less imputed interest 22.3 Total lease liability $ 248.4 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 are as follows: (In millions) Developed Markets (1) Greater China JANZ (2) Emerging Markets (3) Total Balance at December 31, 2021 $ 8,723.4 $ 969.5 $ 776.3 $ 1,644.5 $ 12,113.7 Disposition (4) (743.9) (2.7) (32.6) (140.5) (919.7) Impairment — — — (117.0) (117.0) Foreign currency translation (518.0) (26.2) (54.7) (52.3) (651.2) Balance at December 31, 2022 $ 7,461.5 $ 940.6 $ 689.0 $ 1,334.7 $ 10,425.8 Acquisitions 95.9 — — — 95.9 Impairment (4) (544.0) — (30.0) (7.0) (581.0) Reclassification to assets held for sale (52.0) — — (137.0) (189.0) Foreign currency translation 146.0 (7.8) (13.3) (9.5) 115.4 Balance at December 31, 2023 $ 7,107.4 $ 932.8 $ 645.7 $ 1,181.2 $ 9,867.1 ____________ (1) Balance as of December 31, 2023 includes an accumulated impairment loss of $929.0 million. Balances as of December 31, 2022 and 2021 include an accumulated impairment loss of $385.0 million. (2) Balance as of December 31, 2023 includes an accumulated impairment loss of $30.0 million. (3) Balance as of December 31, 2023 includes an accumulated impairment loss of $124.0 million. Balance as of December 31, 2022 includes an accumulated impairment loss of $117.0 million. (4) Reflects goodwill relating to the divestitures. Refer to Note 5 Divestitures for additional information. |
Components of intangible assets | Intangible assets consist of the following components at December 31, 2023 and 2022: (In millions) Weighted Average Life (Years) Cost Accumulated Amortization Net Book Value December 31, 2023 Product rights, licenses and other (1) 13 $ 34,178.1 $ 15,316.4 $ 18,861.7 In-process research and development 319.4 — 319.4 $ 34,497.5 $ 15,316.4 $ 19,181.1 December 31, 2022 Product rights, licenses and other (1) 15 $ 37,490.5 $ 14,923.6 $ 22,566.9 In-process research and development 40.2 — 40.2 $ 37,530.7 $ 14,923.6 $ 22,607.1 ____________ (1) Represents amortizable intangible assets. Other intangible assets consist principally of customer lists and contractual rights. |
Product rights and licenses by therapeutic category | 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, 2023 Brands $ 7,723.4 $ 5,206.8 $ 961.0 $ 2,855.9 $ 16,747.1 Generics 1,708.2 9.7 216.2 179.8 2,113.9 Total Product Rights and Licenses $ 9,431.6 $ 5,216.5 $ 1,177.2 $ 3,035.7 $ 18,861.0 (In millions) Developed Markets Greater China JANZ Emerging Markets December 31, 2022 Brands $ 8,762.2 $ 5,632.3 $ 1,061.3 $ 3,122.5 $ 18,578.3 Generics 3,448.9 10.6 264.2 263.9 3,987.6 Total Product Rights and Licenses $ 12,211.1 $ 5,642.9 $ 1,325.5 $ 3,386.4 $ 22,565.9 |
Finite-lived Intangible Assets Amortization Expense | Amortization expense and intangible asset disposal & impairment charges (which are included as a component of amortization expense) are classified primarily within Cost of Sales in the consolidated statements of operations, and were as follows for the years ended December 31, 2023, 2022 and 2021: Year ended December 31, (In millions) 2023 2022 2021 Intangible asset amortization expense $ 2,317.1 $ 2,504.6 $ 2,702.2 IPR&D intangible asset impairment charges — 0.6 19.4 Finite-lived intangible asset disposal & impairment charges 32.0 172.9 83.4 Total intangible asset amortization expense (including disposal & impairment charges) $ 2,349.1 $ 2,678.1 $ 2,805.0 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Intangible asset amortization expense for the years ending December 31, 2024 through 2028 is estimated to be as follows: (In millions) 2024 $ 2,314 2025 2,235 2026 2,183 2027 2,102 2028 1,859 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of notional amounts of net investment hedges | The following table summarizes the principal amounts of the Company’s outstanding Euro and Yen borrowings and the notional amounts of the Euro and Yen borrowings designated as net investment hedges: Notional Amount Designated as a Net Investment Hedge (In millions) Principal Amount December 31, December 31, Euro 2.250% Euro Senior Notes due 2024 € 1,000.0 € 1,000.0 € 1,000.0 1.023% Euro Senior Notes due 2024 750.0 750.0 750.0 2.125% Euro Senior Notes due 2025 500.0 500.0 500.0 1.362% Euro Senior Notes due 2027 850.0 850.0 850.0 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 1,250.0 Foreign currency forward contracts 500.0 500.0 — Euro Total € 5,600.0 € 5,600.0 € 5,100.0 Yen YEN Term Loan ¥ 40,000.0 ¥ 40,000.0 ¥ 40,000.0 Yen Total ¥ 40,000.0 ¥ 40,000.0 ¥ 40,000.0 |
Summary of classification and fair values of derivative instruments in consolidated balance sheets | The following table summarizes the classification and fair values of derivative instruments in our consolidated balance sheets: Asset Derivatives Liability Derivatives (In millions) Balance Sheet Location December 31, 2023 Fair Value December 31, 2022 Fair Value Balance Sheet Location December 31, 2023 Fair Value December 31, 2022 Fair Value Derivatives designated as hedges: Foreign currency forward contracts Prepaid expenses & other current assets $ 17.5 $ 30.4 Other current liabilities $ 35.8 $ 26.4 Total derivatives designated as hedges 17.5 30.4 35.8 26.4 Derivatives not designated as hedges: Foreign currency forward contracts Prepaid expenses & other current assets 88.7 104.3 Other current liabilities 88.8 160.6 Total derivatives not designated as hedges 88.7 104.3 88.8 160.6 Total derivatives $ 106.2 $ 134.7 $ 124.6 $ 187.0 |
Effect of Derivative Instruments on the Consolidated Statements of Operations | The following tables summarize information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: Amount of Gains/(Losses) Recognized in Earnings Year Ended December 31, (In millions) Location of Gain/(Loss) 2023 2022 2021 Derivative Financial Instruments in Net Investment Hedging Relationships: Cross-currency interest rate swaps Interest expense (2) $ 1.8 $ — $ — Derivative Financial Instruments Not Designated as Hedging Instruments: Foreign currency option and forward contracts Other income, net (2) $ 56.3 $ (82.1) $ 39.3 Total $ 58.1 $ (82.1) $ 39.3 Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives Amount of Gains/(Losses) Reclassified from AOCE into Earnings Year Ended December 31, Year Ended December 31, (In millions) Location of Gain/(Loss) 2023 2022 2021 2023 2022 2021 Derivative Financial Instruments in Cash Flow Hedging Relationships (1) : Foreign currency forward contracts Net sales (3) $ 44.3 $ 34.2 $ 45.8 $ 45.3 $ 89.2 $ 30.9 Interest rate swaps Interest expense (3) (3.8) (3.5) (3.4) (4.8) (4.5) (4.3) Derivative Financial Instruments in Net Investment Hedging Relationships: Cross-currency interest rate swaps (1.7) — — — — — Foreign currency forward contracts (18.3) — — — — — Non-derivative Financial Instruments in Net Investment Hedging Relationships: Foreign currency borrowings (120.1) 360.1 436.6 — — — Total $ (99.6) $ 390.8 $ 479.0 $ 40.5 $ 84.7 $ 26.6 ____________ (1) At December 31, 2023, the Company expects that approximately $21.0 million of pre-tax net losses on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months. (2) Represents the location of the gain/(loss) recognized in earnings on derivatives. (3) Represents the location of the gain/(loss) reclassified from AOCE into earnings. |
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, 2023 December 31, 2022 (In millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Recurring fair value measurements Financial Assets Cash equivalents: Money market funds $ 651.4 $ — $ — $ 688.8 $ — $ — Total cash equivalents 651.4 — — 688.8 — — Equity securities: Exchange traded funds 49.1 — — 42.4 — — Marketable securities 0.2 — — 0.2 — — Total equity securities 49.3 — — 42.6 — — CCPS in Biocon Biologics — — 976.3 — — 997.4 Available-for-sale fixed income investments: Corporate bonds — 15.9 — — 13.2 — U.S. Treasuries — 11.2 — — 11.7 — Agency mortgage-backed securities — 4.6 — — 4.7 — Asset backed securities — 5.1 — — 5.1 — Other — 0.2 — — 0.6 — Total available-for-sale fixed income investments — 37.0 — — 35.3 — Foreign exchange derivative assets — 106.2 — — 134.7 — Total assets at recurring fair value measurement $ 700.7 $ 143.2 $ 976.3 $ 731.4 $ 170.0 $ 997.4 Financial Liabilities Foreign exchange derivative liabilities $ — $ 124.6 $ — $ — $ 187.0 $ — Contingent consideration — — 215.1 — — 375.0 Total liabilities at recurring fair value measurement $ — $ 124.6 $ 215.1 $ — $ 187.0 $ 375.0 |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2021 to December 31, 2023 is as follows: (In millions) Current Portion (1) Long-Term Portion (2) Total Contingent Consideration Balance at December 31, 2021 $ 66.7 $ 133.0 $ 199.7 Biocon Biologics Transaction — 220.0 220.0 Payments (64.1) — (64.1) Reclassifications 61.8 (61.8) — Accretion — 8.2 8.2 Fair value loss (3) — 11.2 11.2 Balance at December 31, 2022 $ 64.4 $ 310.6 $ 375.0 Payments (43.0) (220.0) (263.0) Reclassifications 54.7 (54.7) — Accretion — 22.7 22.7 Fair value loss (3) — 80.4 80.4 Balance at December 31, 2023 $ 76.1 $ 139.0 $ 215.1 ____________ (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. |
Schedule of Available-for-Sale Securities Reconciliation | The amortized cost and estimated fair value of available-for-sale securities were as follows: (In millions) Balance Sheet Location Cost Gross Gross Fair December 31, 2023 Available-for-sale fixed income investments Prepaid expenses and other current assets $ 37.8 $ — $ (0.8) $ 37.0 $ 37.8 $ — $ (0.8) $ 37.0 December 31, 2022 Available-for-sale fixed income investments Prepaid expenses and other current assets $ 38.0 $ — $ (2.7) $ 35.3 $ 38.0 $ — $ (2.7) $ 35.3 |
Maturities Of Available-for-Sale Debt Securities At Fair Value | Maturities of available-for-sale fixed income investments at fair value as of December 31, 2023, were as follows: (In millions) Mature within one year $ 1.0 Mature in one to five years 19.6 Mature in five years and later 16.4 $ 37.0 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | A summary of long-term debt is as follows: ($ in millions) Interest Rate as of December 31, 2023 December 31, December 31, Current portion of long-term debt: 2023 Senior Notes (a) * 3.125 % — 750.6 2023 Senior Notes (b) * 4.200 % — 499.8 2024 Euro Senior Notes **** 1.023 % 831.5 — 2024 Euro Senior Notes ** 2.250 % 1,103.5 — Other 0.4 0.7 Deferred financing fees (0.7) (0.6) Current portion of long-term debt $ 1,934.7 $ 1,250.5 Non-current portion of long-term debt: 2024 Euro Senior Notes ** 2.250 % — 1,069.8 2024 Euro Senior Notes **** 1.023 % — 813.5 2025 Euro Senior Notes * 2.125 % 551.7 534.8 2025 Senior Notes *** 1.650 % 755.7 759.6 2026 Senior Notes ** 3.950 % 2,245.1 2,243.2 2027 Euro Senior Notes **** 1.362 % 967.2 945.9 2027 Senior Notes *** 2.300 % 769.8 775.3 2028 Euro Senior Notes ** 3.125 % 824.1 798.5 2028 Senior Notes * 4.550 % 749.1 748.9 2030 Senior Notes *** 2.700 % 1,505.0 1,512.8 2032 Euro Senior Notes **** 1.908 % 1,478.4 1,444.4 2040 Senior Notes *** 3.850 % 1,644.0 1,650.6 2043 Senior Notes * 5.400 % 497.5 497.4 2046 Senior Notes ** 5.250 % 999.9 999.9 2048 Senior Notes * 5.200 % 747.8 747.8 2050 Senior Notes *** 4.000 % 2,196.3 2,200.8 YEN Term Loan Facility Variable 283.6 305.1 Other 2.4 2.0 Deferred financing fees (29.5) (35.1) Long-term debt $ 16,188.1 $ 18,015.2 ____________ (a) In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The fair value adjustment was amortized to interest expense over the remaining term of the notes, which were repaid at maturity in the first quarter of 2023. (b) The 2023 Senior Notes were repaid at maturity in the fourth quarter of 2023. * Instrument was issued by Mylan Inc. ** Instrument was originally issued by Mylan N.V.; now held by Utah Acquisition Sub Inc. *** Instrument was issued by Viatris Inc. **** Instrument was issued by Upjohn Finance B.V. |
Minimum Repayments on Outstanding Borrowings | Mandatory minimum repayments remaining on the notional amount of outstanding long-term debt at December 31, 2023 were as follows for each of the years ending December 31: (In millions) Total 2024 $ 1,932 2025 1,302 2026 2,534 2027 1,688 2028 1,578 Thereafter 8,580 Total $ 17,614 |
Comprehensive Earnings (Tables)
Comprehensive Earnings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 Accumulated other comprehensive loss: Net unrealized loss on available-for-sale fixed income securities, net of tax $ (1.2) $ (2.3) Net unrecognized gain and prior service cost related to defined benefit plans, net of tax 271.4 268.5 Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax (8.0) (18.5) Net unrecognized gain on derivatives in net investment hedging relationships, net of tax 237.1 377.0 Foreign currency translation adjustment (3,246.7) (3,385.9) $ (2,747.4) $ (2,761.2) |
Components of Other Comprehensive Loss | Components of accumulated other comprehensive (loss) earnings, before tax, consist of the following: Year Ended December 31, 2023 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Available-For-Sale Fixed Income Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2022, net of tax $ (18.5) $ 377.0 $ (2.3) $ 268.5 $ (3,385.9) $ (2,761.2) Other comprehensive earnings (loss) before reclassifications, before tax 54.4 (178.5) 1.5 (37.3) 139.2 (20.7) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (45.3) (45.3) (45.3) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 4.8 4.8 4.8 Gain on divestiture of defined pension plan, included in SG&A (3.0) (3.0) Amortization of prior service costs included in SG&A (0.3) (0.3) Amortization of actuarial loss included in SG&A 21.9 21.9 Net other comprehensive earnings (loss), before tax 13.9 (178.5) 1.5 (18.7) 139.2 (42.6) Income tax provision (benefit) 3.4 (38.6) 0.4 (21.6) — (56.4) Balance at December 31, 2023, net of tax $ (8.0) $ 237.1 $ (1.2) $ 271.4 $ (3,246.7) $ (2,747.4) Year Ended December 31, 2022 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Available-For-Sale Fixed Income Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2021, net of tax $ 9.2 $ 16.7 $ — $ 32.2 $ (1,802.4) $ (1,744.3) Other comprehensive earnings (loss) before reclassifications, before tax 47.8 460.1 (2.8) 276.3 (1,583.5) (802.1) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (89.2) (89.2) (89.2) 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 (0.4) (0.4) Amortization of actuarial loss included in SG&A 3.2 3.2 Net other comprehensive earnings (loss), before tax (36.9) 460.1 (2.8) 279.1 (1,583.5) (884.0) Income tax (benefit) provision (9.2) 99.8 (0.5) 42.8 — 132.9 Balance at December 31, 2022, net of tax $ (18.5) $ 377.0 $ (2.3) $ 268.5 $ (3,385.9) $ (2,761.2) Year Ended December 31, 2021 Gains and Losses on Derivatives in Cash Flow Hedging Relationships Gains and Losses on Net Investment Hedges Gains and Losses on Available-For-Sale Fixed Income Securities Defined Pension Plan Items Foreign Currency Translation Adjustment Totals (In millions) Foreign Currency Forward Contracts Interest Rate Swaps Total Balance at December 31, 2020, net of tax $ (18.0) $ (353.6) $ 1.2 $ (26.1) $ (461.5) $ (858.0) Other comprehensive earnings (loss) before reclassifications, before tax 62.7 456.8 (1.1) 67.0 (1,340.9) (755.5) Amounts reclassified from accumulated other comprehensive earnings (loss), before tax: Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales (30.9) (30.9) (30.9) Loss on interest rate swaps classified as cash flow hedges, included in interest expense 4.3 4.3 4.3 Amortization of prior service costs included in SG&A (0.5) (0.5) Amortization of actuarial loss included in SG&A 7.4 7.4 Net other comprehensive earnings (loss), before tax 36.1 456.8 (1.1) 73.9 (1,340.9) (775.2) Income tax provision 8.9 86.5 0.1 15.6 — 111.1 Balance at December 31, 2021, net of tax $ 9.2 $ 16.7 $ — $ 32.2 $ (1,802.4) $ (1,744.3) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 2021 U.S. Federal: Current $ 2.6 $ 115.3 $ 12.6 Deferred 293.4 263.7 (182.7) 296.0 379.0 (170.1) U.S. State: Current 1.9 26.5 7.7 Deferred 2.6 20.3 (10.8) 4.5 46.8 (3.1) Non-U.S.: Current 530.8 618.7 (91.3) Deferred (683.1) (309.9) 869.2 (152.3) 308.8 777.9 Income tax provision $ 148.2 $ 734.6 $ 604.7 Earnings (loss) before income taxes: United States (951.5) 794.8 (1,982.5) Foreign - Other 1,154.4 2,018.4 1,318.1 Total earnings (loss) before income taxes $ 202.9 $ 2,813.2 $ (664.4) |
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, 2023 December 31, 2022 Deferred tax assets: Employee benefits $ 148.7 $ 129.6 Litigation reserves 32.2 20.5 Accounts receivable allowances 413.7 446.2 Inventory 143.8 159.3 Tax credit and loss carry-forwards 758.2 760.3 Operating lease assets 51.3 56.2 Interest expense 114.8 94.8 Intangible assets 167.7 149.3 Other 326.1 209.3 2,156.5 2,025.5 Less: Valuation allowance (421.4) (387.0) Total deferred tax assets 1,735.1 1,638.5 Deferred tax liabilities: Plant and equipment 54.0 56.6 Operating lease liabilities 51.3 56.2 Intangible assets and goodwill 2,506.2 2,880.3 Other 166.4 151.5 Total deferred tax liabilities 2,777.9 3,144.6 Deferred tax liabilities, net $ (1,042.8) $ (1,506.1) |
Statutory Tax Rate to Effective Tax Rate Reconciliation | Our effective tax rate from continuing operations differs from the applicable United States statutory federal income tax rate of 21.0%, due to the following: Year Ended December 31, 2023 2022 2021 Statutory tax rate 21.0 % 21.0 % 21.0 % Clean energy and research credits (5.2) % — % 9.8 % Foreign rate differential (58.8) % (3.6) % 31.4 % Expiration of attributes 1.5 % 9.8 % — % Goodwill impairment 60.8 % 6.5 % — % State income taxes and credits (3.9) % 1.3 % (0.6) % Tax settlements and resolution of certain tax positions 14.2 % 1.0 % 0.9 % Impact of the Combination and divestitures 11.2 % (6.7) % (109.7) % Incremental U.S. tax on foreign earnings 69.4 % 2.0 % (36.9) % Valuation allowance 10.9 % (13.6) % (8.4) % Deferred tax impact of tax law changes (1.0) % 5.4 % 7.0 % Withholding taxes 7.4 % 1.5 % (1.3) % Deferred tax impact of internal restructuring (74.0) % — % — % Other items 19.5 % 1.5 % (4.2) % Effective tax rate 73.0 % 26.1 % (91.0) % |
Schedule of Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, (In millions) 2023 2022 2021 Unrecognized tax benefit — beginning of year $ 296.7 $ 322.9 $ 391.1 Additions for current year tax positions — 8.2 — Additions for prior year tax positions 3.0 1.0 — Reductions for prior year tax positions (4.6) (5.8) (9.1) Settlements (2.1) (0.4) (47.3) Reductions due to expirations of statute of limitations (13.0) (1.9) (7.0) Reduction due to acquisition — (27.3) (4.8) Impact of foreign currency translation (7.2) — — Unrecognized tax benefit — end of year $ 272.8 $ 296.7 $ 322.9 |
Share-Based Incentive Plan (Tab
Share-Based Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards Activity | The following table summarizes stock awards (stock options and SARs) activity under the 2020 Incentive Plan and 2003 LTIP: Number of Shares Weighted Average Outstanding at December 31, 2020 6,711,731 $ 35.36 Forfeited (1,135,241) 26.39 Outstanding at December 31, 2021 5,576,490 $ 37.19 Forfeited (1,126,848) 31.91 Outstanding at December 31, 2022 4,449,642 $ 38.53 Granted 283,361 7.68 Exercised (26,457) 5.65 Forfeited (547,213) 32.63 Outstanding at December 31, 2023 4,159,333 $ 37.41 Vested and expected to vest at December 31, 2023 4,141,672 $ 37.53 Exercisable at December 31, 2023 4,014,981 $ 38.42 |
Nonvested Restricted Stock and Restricted Stock Unit, Including Performance Units, Activity | A rollforward of the changes in the Company’s nonvested Restricted Stock Awards (restricted stock and restricted stock unit awards, including PSUs) from December 31, 2022 to December 31, 2023 is presented below: Number of Restricted Weighted Average Nonvested at December 31, 2022 27,271,926 $ 11.81 Granted 20,402,621 11.16 Released (13,758,000) 12.30 Forfeited (2,819,764) 11.54 Nonvested at December 31, 2023 31,096,783 $ 11.20 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 are: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2023 2022 2023 2022 Unrecognized actuarial net gain $ (268.1) $ (293.6) $ (43.4) $ (22.0) Unrecognized prior service cost (credit) 19.7 4.0 (3.0) (3.7) Total $ (248.4) $ (289.6) $ (46.4) $ (25.7) |
Change in Accumulated Income (Loss) Relating to Defined Benefit Pension and Other Postretirement Benefits | The change in accumulated other comprehensive loss in 2023 relating to pension benefits and other postretirement benefits consists of: (In millions) Pension Benefits Other Postretirement Benefits Unrecognized actuarial loss (gain) $ 8.3 $ (22.8) Amortization of actuarial gain 20.5 1.4 Unrecognized prior service cost 16.3 — Amortization of prior service (credit) cost (1.0) 0.7 Impact of foreign currency translation (2.9) — Net change $ 41.2 $ (20.7) |
Net Periodic Benefit Cost | Components of net periodic benefit cost for the years ended December 31, 2023, 2022 and 2021 were as follows: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2023 2022 2021 2023 2022 2021 Service cost $ 26.6 $ 32.6 $ 38.6 $ 2.1 $ 3.4 $ 3.4 Interest cost 63.6 36.8 31.6 6.9 3.7 2.6 Expected return on plan assets (62.6) (64.6) (66.1) — — — Plan curtailment, settlement and termination (3.8) 2.3 (16.5) — (3.9) — Amortization of prior service cost (credit) 2.1 0.9 0.9 (0.7) (0.6) — Recognized net actuarial (gains) losses (18.3) (0.2) 1.3 (1.4) 0.3 0.2 Net periodic benefit cost $ 7.6 $ 7.8 $ (10.2) $ 6.9 $ 2.9 $ 6.2 During the year ended December 31, 2021, the Company recognized a settlement gain as a result of cash payments from lump sum elections related to the U.S. and Puerto Rico pension plans. |
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, 2023 and 2022. Pension Benefits Other Postretirement Benefits (In millions) 2023 2022 2023 2022 Change in Projected Benefit Obligation Projected benefit obligation, beginning of year $ 1,379.0 $ 1,946.6 $ 137.5 $ 188.4 Service cost 26.6 32.6 2.1 3.4 Interest cost 63.6 36.8 6.9 3.7 Participant contributions 0.5 3.3 4.1 4.5 (Divestitures) acquisitions (8.8) 2.8 — — Plan settlements and terminations 8.6 (82.0) — (4.5) Actuarial losses (gains) 40.8 (439.4) (22.8) (43.3) Benefits paid (74.0) (54.1) (15.2) (14.7) Impact of foreign currency translation 7.3 (67.6) — — Projected benefit obligation, end of year $ 1,443.6 $ 1,379.0 $ 112.6 $ 137.5 Change in Plan Assets Fair value of plan assets, beginning of year $ 1,067.1 $ 1,366.4 $ — $ — Actual return on plan assets 95.2 (138.1) — — Company contributions 41.7 25.6 11.1 10.2 Participant contributions 0.5 3.3 4.1 4.5 Divestitures (12.1) — — — Plan settlements (7.1) (85.9) — — Benefits paid (74.0) (54.1) (15.2) (14.7) Impact of foreign currency translation (1.9) (50.1) — — Fair value of plan assets, end of year 1,109.4 1,067.1 — — Funded status of plans $ (334.2) $ (311.9) $ (112.6) $ (137.5) |
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, 2023 and 2022: Pension Benefits Other Postretirement Benefits December 31, December 31, (In millions) 2023 2022 2023 2022 Noncurrent assets $ 89.3 $ 118.3 $ — $ — Current liabilities (20.0) (14.6) (13.8) (15.4) Noncurrent liabilities (403.5) (415.6) (98.8) (122.1) Net accrued benefit costs $ (334.2) $ (311.9) $ (112.6) $ (137.5) |
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, 2023 and 2022 were as follows: December 31, (In millions) 2023 2022 Plans with accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 1,058.1 $ 1,026.5 Accumulated benefit obligation 1,023.5 999.3 Fair value of plan assets 642.4 604.9 |
Schedule of Allocation of Plan Assets | The table below presents total plan assets by investment category as of December 31, 2023 and 2022 and the classification of each investment category within the fair value hierarchy with respect to the inputs used to measure fair value: December 31, 2023 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 17.4 $ — $ — $ 17.4 Equity securities 401.6 30.3 — 431.9 Fixed income securities 175.9 281.6 — 457.5 Assets held by insurance companies and other 181.4 17.2 4.0 202.6 Total $ 776.3 $ 329.1 $ 4.0 $ 1,109.4 December 31, 2022 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 34.2 $ 0.9 $ — $ 35.1 Equity securities 42.9 353.4 — 396.3 Fixed income securities 181.6 271.5 — 453.1 Assets held by insurance companies and other 76.9 97.9 7.8 182.6 Total $ 335.6 $ 723.7 $ 7.8 $ 1,067.1 |
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, 2023 and 2022: Pension Benefits Other Postretirement Benefits 2023 2022 2023 2022 Discount rate 4.5 % 4.8 % 5.0 % 5.4 % Expected return on plan assets 6.1 % 5.0 % — % — % Rate of compensation increase 3.7 % 3.7 % — % — % 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, 2023: Pension Benefits Other Postretirement Benefits 2023 2022 2021 2023 2022 2021 Discount rate 4.8 % 2.3 % 1.9 % 5.4 % 2.5 % 1.9 % Expected return on plan assets 6.1 % 5.0 % 5.1 % — % — % — % Rate of compensation increase 3.7 % 3.1 % 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 2024 $ 100.6 $ 13.8 2025 99.1 13.8 2026 97.5 13.7 2027 105.2 13.1 2028 100.8 12.4 Thereafter 521.4 50.5 Total $ 1,024.6 $ 117.3 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 2021 2023 2022 2021 Reportable Segments: Developed Markets $ 9,251.9 $ 9,768.9 $ 10,428.7 $ 4,086.5 $ 4,878.1 $ 5,143.1 Greater China 2,160.4 2,201.2 2,212.8 1,426.8 1,512.5 1,397.1 JANZ 1,424.5 1,632.4 2,027.4 522.9 665.5 762.4 Emerging Markets 2,551.6 2,615.6 3,144.7 1,091.9 1,207.1 1,402.4 Total reportable segments $ 15,388.4 $ 16,218.1 $ 17,813.6 $ 7,128.1 $ 8,263.2 $ 8,705.0 Reconciling items: Intangible asset amortization expense (2,317.1) (2,504.6) (2,702.2) Intangible asset disposal & impairment charges (32.0) (173.5) (102.8) Impairment of goodwill (580.1) (117.0) — Globally managed research and development costs (805.2) (662.2) (681.0) Acquired IPR&D (105.5) (36.4) (70.1) Litigation settlements & other contingencies (111.6) (4.4) (329.2) Transaction related and other special items (774.4) (1,026.9) (2,832.2) Corporate and other unallocated (1,636.0) (2,123.3) (2,021.5) Earnings (loss) from operations $ 766.2 $ 1,614.9 $ (34.0) |
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, 2023, 2022, and 2021: Percentage of Consolidated Net Sales 2023 2022 2021 McKesson Corporation 10 % 11 % 9 % AmerisourceBergen Corporation 10 % 10 % 9 % Cardinal Health, Inc. 5 % 5 % 5 % |
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) 2023 2022 2021 United States $ 3,551.8 $ 3,946.6 $ 4,176.4 China 1,889.0 1,951.3 1,981.5 ____________ |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The following table summarizes the restructuring charges and the reserve activity for the restructuring program: (In millions) Employee Related Costs Other Exit Costs Total Balance at December 31, 2020 $ 262.6 $ 4.8 $ 267.4 Charges (3) 396.1 496.1 892.2 Reimbursable restructuring charges 26.4 — 26.4 Cash payment (385.5) (151.7) (537.2) Utilization — (345.0) (345.0) Foreign currency translation (7.0) (0.1) (7.1) Balance at December 31, 2021 $ 292.6 $ 4.1 $ 296.7 Charges (2) 38.2 48.3 86.5 Cash payment (170.1) (15.3) (185.4) Utilization — (34.9) (34.9) Foreign currency translation (5.1) (0.3) (5.4) Balance at December 31, 2022 $ 155.6 $ 1.9 $ 157.5 Charges (1) 17.6 107.6 125.2 Cash payment (77.8) (10.3) (88.1) Utilization (4) (4.0) (99.2) (103.2) Foreign currency translation 0.8 — 0.8 Balance at December 31, 2023 $ 92.2 $ — $ 92.2 ____________ (1) For the year ended December 31, 2023, total restructuring charges in Developed Markets, Greater China, JANZ, Emerging Markets, and Corporate/Other were approximately $80.3 million, $0.4 million, $29.5 million, $13.9 million, and $1.1 million, respectively. (2) For the year ended December 31, 2022, total restructuring charges in Developed Markets, Greater China, JANZ, Emerging Markets, and Corporate/Other were approximately $74.6 million, $2.5 million, $0.9 million, $8.2 million, and $0.3 million, respectively. (3) For the year ended December 31, 2021, total restructuring charges in Developed Markets, Greater China, JANZ, Emerging Markets, and Corporate/Other were approximately $623.8 million, $5.8 million, $138.1 million, and $94.1 million and $30.4 million, respectively. (4) |
Nature of Operations (Narrative
Nature of Operations (Narrative) (Details) | Dec. 31, 2023 site molecule |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of molecules | molecule | 1,400 |
Number of manufacturing sites | site | 40 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 2 Months Ended | 12 Months Ended | 14 Months Ended | ||||||||||||||||
Dec. 15, 2023 | Sep. 15, 2023 | Jun. 16, 2023 | Mar. 17, 2023 | Feb. 24, 2023 | Dec. 16, 2022 | Sep. 16, 2022 | Jun. 16, 2022 | Mar. 16, 2022 | Dec. 16, 2021 | Sep. 16, 2021 | Jun. 16, 2021 | Feb. 28, 2024 | Feb. 27, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 28, 2024 | Feb. 28, 2022 | |
Accounting Policies [Line Items] | |||||||||||||||||||
Anti-dilutive securities excluded from computation of earnings per share | 16.4 | 11.8 | 12.7 | ||||||||||||||||
Dividends paid per share (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.48 | $ 0.48 | $ 0.33 | |||||
Dividends declared (in dollars per share) | $ 0.12 | ||||||||||||||||||
Dividends payable (in dollars per share) | $ 0.12 | ||||||||||||||||||
Share repurchase program, authorized amount (in shares) | $ 1,000 | ||||||||||||||||||
Shares repurchased during the period (in shares) | 21.2 | ||||||||||||||||||
Shares repurchased during the period | $ 250 | ||||||||||||||||||
Subsequent Event | |||||||||||||||||||
Accounting Policies [Line Items] | |||||||||||||||||||
Share repurchase program, authorized amount (in shares) | $ 2,000 | $ 2,000 | |||||||||||||||||
Shares repurchased during the period (in shares) | 19.2 | ||||||||||||||||||
Shares repurchased during the period | $ 250 | $ 500 | |||||||||||||||||
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 | ||||||||||||||||||
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 |
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 | 2 Months Ended | 12 Months Ended | ||
Feb. 27, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net earnings (loss) attributable to Viatris Inc. common shareholders | $ 54.7 | $ 2,078.6 | $ (1,269.1) | |
Weighted average shares outstanding (in shares) | 1,208.8 | |||
Basic earnings (loss) per share attributable to Viatris Inc. shareholders (in dollars per share) | $ 0.05 | $ 1.71 | $ (1.05) | |
Weighted average number diluted shares outstanding adjustment, stock-based awards and warrants (in shares) | 6.6 | 5.3 | 0 | |
Total dilutive shares outstanding | 1,208.8 | |||
Diluted earnings (loss) per share attributable to Viatris Inc. shareholders (in dollars per share) | $ 0.05 | $ 1.71 | $ (1.05) | |
Shares repurchased during the period (in shares) | 21.2 | |||
Retained Earnings | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net earnings (loss) attributable to Viatris Inc. common shareholders | $ 54.7 | $ 2,078.6 | $ (1,269.1) |
Revenue Recognition and Accou_3
Revenue Recognition and Accounts Receivable Revenue Disaggregation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 15,388.4 | $ 16,218.1 | $ 17,813.6 |
Biocon Biologics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 601.1 | 607.3 | |
Brands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 9,800.5 | 9,889.6 | 10,841.3 |
Generics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5,587.9 | 6,328.5 | 6,972.3 |
Net sales | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 15,388.4 | 16,218.1 | 17,813.6 |
Developed Markets | Brands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5,239 | 5,160.4 | 5,759.2 |
Developed Markets | Generics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,012.9 | 4,608.5 | 4,669.5 |
Greater China | Brands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,152.1 | 2,190.7 | 2,207.8 |
Greater China | Generics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 8.3 | 10.5 | 5 |
JANZ | Brands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 782.9 | 922.6 | 1,197.1 |
JANZ | Generics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 641.6 | 709.8 | 830.3 |
Emerging Markets | Brands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,626.5 | 1,615.9 | 1,677.2 |
Emerging Markets | Generics | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 925.1 | 999.7 | 1,467.5 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 15,388.4 | 16,218.1 | |
Operating Segments | Developed Markets | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 9,251.9 | 9,768.9 | 10,428.7 |
Operating Segments | Greater China | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,160.4 | 2,201.2 | 2,212.8 |
Operating Segments | JANZ | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,424.5 | 1,632.4 | 2,027.4 |
Operating Segments | Emerging Markets | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,551.6 | $ 2,615.6 | $ 3,144.7 |
Revenue Recognition and Accou_4
Revenue Recognition and Accounts Receivable - Disaggregation of Revenue by Key Products (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 15,388.4 | $ 16,218.1 | $ 17,813.6 |
Lipitor ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,559.3 | 1,635.2 | 1,663.2 |
Norvasc ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 732.4 | 775.1 | 824.7 |
Lyrica ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 556.5 | 623.8 | 728.5 |
EpiPen® Auto-Injectors | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 442.2 | 378 | 391.7 |
Viagra ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 428.8 | 458.9 | 533.8 |
Celebrex ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 330.6 | 338.1 | 344.4 |
Creon ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 304.9 | 304 | 309.8 |
Effexor ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 262.9 | 279.6 | 316.8 |
Zoloft ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 235.7 | 246.2 | 284.3 |
Xalabrands | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 193.2 | 195.1 | 226 |
Yupelri ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 220.8 | 202.1 | 161.9 |
Dymista ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 200 | 179.8 | 168 |
Influvac ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 192.4 | 225.5 | 299.3 |
Amitiza ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 157 | 167.9 | 201.5 |
Xanax ® | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 154.8 | $ 156.5 | $ 185.9 |
Revenue Recognition and Accou_5
Revenue Recognition and Accounts Receivable Variable Consideration (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Gross sales | $ 25,693.1 | $ 27,662.1 | $ 30,553.4 |
Gross to net adjustments: | |||
Chargebacks | (5,457.9) | (6,192.2) | (5,530.1) |
Rebates, promotional programs and other sales allowances | (3,857.6) | (4,346.2) | (6,135.6) |
Returns | (223.2) | (296.7) | (384.6) |
Governmental rebate programs | (766) | (608.9) | (689.5) |
Total gross to net adjustments | 10,304.7 | 11,444 | 12,739.8 |
Net sales | 15,388.4 | 16,218.1 | 17,813.6 |
Net sales | |||
Gross to net adjustments: | |||
Net sales | $ 15,388.4 | $ 16,218.1 | $ 17,813.6 |
Revenue Recognition and Accou_6
Revenue Recognition and Accounts Receivable Variable Consideration Rollforward (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | $ 3,814.5 |
End of period | 3,700.4 |
Variable Consideration | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | 2,687.5 |
Current Provision Related to Sales Made in the Current Period | 10,304.7 |
Acquisitions, Divestitures, and Other | (5) |
Checks/ Credits Issued to Third Parties | (10,528) |
Effects of Foreign Exchange | 20.7 |
End of period | 2,479.9 |
Variable Consideration | Chargebacks | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | 523.4 |
Current Provision Related to Sales Made in the Current Period | 5,457.9 |
Acquisitions, Divestitures, and Other | (8.1) |
Checks/ Credits Issued to Third Parties | (5,443.6) |
Effects of Foreign Exchange | 0.7 |
End of period | 530.3 |
Variable Consideration | Rebates, promotional programs and other sales allowances | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | 1,284.2 |
Current Provision Related to Sales Made in the Current Period | 3,857.6 |
Acquisitions, Divestitures, and Other | 20.6 |
Checks/ Credits Issued to Third Parties | (4,071.3) |
Effects of Foreign Exchange | 11.8 |
End of period | 1,102.9 |
Variable Consideration | Returns | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | 513.4 |
Current Provision Related to Sales Made in the Current Period | 223.2 |
Acquisitions, Divestitures, and Other | (26.2) |
Checks/ Credits Issued to Third Parties | (286.8) |
Effects of Foreign Exchange | 1.8 |
End of period | 425.4 |
Variable Consideration | Governmental rebate programs | |
Accounts Receivable, Variable Consideration [Roll Forward] | |
Beginning of period | 366.5 |
Current Provision Related to Sales Made in the Current Period | 766 |
Acquisitions, Divestitures, and Other | 8.7 |
Checks/ Credits Issued to Third Parties | (726.3) |
Effects of Foreign Exchange | 6.4 |
End of period | $ 421.3 |
Revenue Recognition and Accou_7
Revenue Recognition and Accounts Receivable (Accounts Receivable, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 2,823.8 | $ 3,243.8 |
Other current liabilities | 876.6 | 570.7 |
Total | 3,700.4 | 3,814.5 |
Variable Consideration | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 1,483.6 | 1,798.7 |
Other current liabilities | 996.3 | 888.8 |
Total | $ 2,479.9 | $ 2,687.5 |
Revenue Recognition and Accou_8
Revenue Recognition and Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Derecognized accounts receivables | $ 30.8 | $ 34.7 | ||
Net sales | 15,388.4 | 16,218.1 | $ 17,813.6 | |
Accounts receivable in factoring arrangement | $ 415.7 | |||
Biocon Biologics | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net sales | $ 601.1 | 607.3 | ||
Three Customers | Accounts Receivable | Credit Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Concentration risk, percentage | 28% | 23% | ||
Allowance for doubtful accounts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowances for doubtful accounts | $ 118.8 | $ 114.7 | $ 154.5 | $ 159.9 |
Acquisitions and Other Transa_3
Acquisitions and Other Transactions (Other Transactions) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Feb. 28, 2024 | Nov. 07, 2022 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2024 | Jan. 03, 2023 | Dec. 31, 2020 | Dec. 20, 2019 | |
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration liability | $ 215.1 | $ 215.1 | $ 375 | $ 199.7 | ||||||||
Equity securities | 49.3 | 49.3 | 42.6 | |||||||||
Goodwill | 9,867.1 | 9,867.1 | 10,425.8 | 12,113.7 | ||||||||
Business Acquisition, Pro Forma Revenue | 16,283.4 | |||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | 93.8 | 1,905.7 | ||||||||||
Prepaid Expense and Other Assets, Current | 2,028.1 | $ 2,028.1 | 1,811.2 | |||||||||
Revenues | $ 15,426.9 | 16,262.7 | 17,886.3 | |||||||||
In Process Research And Development, Fair value Measurement Input, Discount Rate | 23.90% | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | $ (919.7) | |||||||||||
Product Rights And Licenses | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | ||||||||||
Famy Life Sciences | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Equity securities | $ 25 | |||||||||||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | $ 18.9 | |||||||||||
Mapi Pharma Ltd. | Variable Interest Entity, Not Primary Beneficiary | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Variable Interest Entity, Maximum Milestone Payments | 90 | $ 90 | ||||||||||
Variable Interest Entity, Financial or Other Support, Amount | $ 30 | |||||||||||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 45.6 | |||||||||||
Other Assets | 132.1 | 132.1 | 56.4 | |||||||||
Gain (Loss) on Investments | $ 16.5 | 62.1 | ||||||||||
Prepaid Expense and Other Assets, Current | $ 52.5 | $ 52.5 | $ 42.5 | |||||||||
Viatris Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 13.50% | |||||||||||
Viatris Inc. | Famy Life Sciences | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 13.50% | 13.50% | ||||||||||
Maximum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years | ||||||||||
Minimum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | 3 years | ||||||||||
Oyster Point Pharma, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition purchase price | $ 427.4 | |||||||||||
Business Acquisition, Share Price | $ 11 | |||||||||||
Business Combination, Acquisition Related Costs | $ 22.8 | |||||||||||
Famy Life Sciences | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition purchase price | $ 281 | |||||||||||
Oyster Point Pharma Acquisition | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | 29.3 | |||||||||||
Goodwill | 6.7 | $ 6.7 | $ 5.9 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 26.9 | 26.9 | 26.9 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 37.8 | 37.8 | 37.8 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1.4 | 1.4 | 1.4 | |||||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 16.9 | 16.9 | 17.7 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 7.7 | 7.7 | 7.7 | |||||||||
Current liabilities | 431.4 | 431.4 | 431.4 | |||||||||
Current liabilities | 37 | 37 | 37 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 1.7 | 1.7 | 1.7 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 392.7 | 392.7 | 392.7 | |||||||||
Revenues | 41.7 | |||||||||||
Net earnings attributable to Mylan N.V. ordinary shareholders | 163.1 | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | 0.8 | |||||||||||
Oyster Point Pharma Acquisition | Product Rights And Licenses | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Identified intangible assets | 334 | 334 | 334 | |||||||||
Famy Life Sciences Acquisition | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | 89.2 | 89.2 | 89.3 | |||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Tax Liabilities | (0.1) | |||||||||||
Current liabilities | 379.2 | 379.2 | 379.3 | |||||||||
Current liabilities | 2.2 | 2.2 | 2.2 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 325 | 325 | 325 | 325 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 52 | 52 | 52.1 | |||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | 43.9 | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | (0.1) | |||||||||||
Famy Life Sciences Acquisition | In Process Research and Development [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Identified intangible assets | $ 290 | $ 290 | $ 290 | $ 290 | ||||||||
Famy Life Sciences Acquisition | Scenario, Forecast | In Process Research and Development [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Identified intangible assets | $ 120 | |||||||||||
Idorsia Pharmaceuticals Ltd. | Scenario, Forecast | Subsequent Event | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Price of Acquisition, Expected | $ 350 |
Acquisitions and Other Transa_4
Acquisitions and Other Transactions (Purchase Price Allocations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2021 | Jan. 03, 2023 | Dec. 31, 2022 | |
Business Acquisition, Date of Acquisition [Abstract] | |||||
Goodwill | $ 9,867.1 | $ 9,867.1 | $ 12,113.7 | $ 10,425.8 | |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | $ (919.7) | ||||
Oyster Point Pharma Acquisition | |||||
Business Acquisition, Date of Acquisition [Abstract] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 26.9 | 26.9 | $ 26.9 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 37.8 | 37.8 | 37.8 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1.4 | 1.4 | 1.4 | ||
Goodwill | 6.7 | 6.7 | 5.9 | ||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 16.9 | 16.9 | 17.7 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 7.7 | 7.7 | 7.7 | ||
Current liabilities | 431.4 | 431.4 | 431.4 | ||
Current liabilities | 37 | 37 | $ 37 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | $ 29.3 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | 0.8 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Tax Assets | $ (0.8) |
Acquisitions and Other Transa_5
Acquisitions and Other Transactions (Unaudited Pro Forma Financial Results) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Business Combinations [Abstract] | ||
Business Acquisition, Pro Forma Revenue | $ 16,283.4 | |
Business Acquisition, Pro Forma Net Income (Loss) | $ 93.8 | $ 1,905.7 |
Basic (in usd per share) | $ 0.08 | $ 1.57 |
Diluted (in usd per share) | $ 0.08 | $ 1.57 |
Basic (in shares) | 1,200,300 | 1,212,100 |
Diluted (in shares) | 1,206,900 | 1,217,400 |
Divestitures (Details)
Divestitures (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Oct. 01, 2023 USD ($) product | Nov. 29, 2022 USD ($) | Dec. 31, 2023 USD ($) product | Dec. 31, 2022 USD ($) | Dec. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) product | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of assets and subsidiaries | $ 364.1 | $ 1,950 | $ 96.7 | |||||
Impairment of goodwill | $ 581 | 117 | 0 | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | |||||||
Number of insulin analog products | product | 3 | 3 | ||||||
Other Nonoperating Income (Expense) | $ 9.8 | 1,790.7 | 5.8 | |||||
Loss (gain) on disposal of business | (239.9) | 1,754.1 | 0 | |||||
Biocon Biologics | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity Securities, FV-NI, Gain (Loss) | (21.1) | |||||||
Product rights and licenses | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Impairment of intangible assets | $ 172.9 | 32 | 172.9 | $ 83.4 | ||||
Biocon Biologics | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Other Nonoperating Income (Expense) | 168 | 17.7 | ||||||
Biocon Biologics | Scenario, Forecast | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Deferred cash consideration | $ 335 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of assets and subsidiaries | $ 1,400 | |||||||
Number Of Women's Healthcare Products Sold | product | 2 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Biocon Biologics | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Consideration received on divestiture | $ 3,000 | |||||||
Proceeds from sale of assets and subsidiaries | 2,000 | |||||||
Equity consideration | $ 1,000 | |||||||
Ownership percentage | 12.90% | |||||||
Contingent liability (up to) | $ 250 | |||||||
Gain on divestiture of business | $ 1,750 | |||||||
Disposal Group, Including Discontinued Operations, Contingent Consideration Paid | 220 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | OTC Business | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of assets and subsidiaries | $ 2,170 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Women's Health Products | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Loss (gain) on disposal of business | 156.2 | |||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Property, plant and equipment, net | $ 262.2 | 0 | 262.2 | $ 0 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Upjohn Distributor Markets | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain on divestiture of business | 85.2 | |||||||
Total impairment charge | 136.4 | 374.2 | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Upjohn Distributor Markets | Inventories | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Total impairment charge | 84.3 | |||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Upjohn Distributor Markets | Emerging Markets | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Impairment of goodwill | 117 | 7 | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | OTC Business | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Total impairment charge | 734.7 | |||||||
Impairment of goodwill | $ 580.1 | $ 580.1 | ||||||
Write down-to fair value, less costs to sell | $ 154.7 |
Divestitures (Details)_2
Divestitures (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets held for sale | ||
Valuation allowance on assets held for sale | $ (157.3) | $ 0 |
Total assets held for sale | 2,786 | 230.3 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Deferred income tax liability | 77.2 | 0 |
Total liabilities held for sale | 275.1 | 0 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Assets held for sale | ||
Accounts receivable, net | 112.1 | 0 |
Inventories | 422.4 | 0 |
Prepaid expenses and other current assets | 7.5 | 0 |
Property, plant and equipment, net | 262.2 | 0 |
Intangible assets, net | 1,946 | 230.3 |
Goodwill | 188 | 0 |
Other assets | 5.1 | 0 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Accounts payable | 137.4 | 0 |
Other current liabilities | 35.3 | 0 |
Other long-term obligations | $ 25.2 | $ 0 |
Balance Sheet Components (Narra
Balance Sheet Components (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Balance Sheet Components [Abstract] | |||
Net realizable value of inventory recognized as expense | $ 226.9 | $ 326.1 | $ 474.9 |
Inventory reserves | 479.3 | 484.8 | |
Capitalized software costs | 167.2 | 121.5 | |
Depreciation | $ 362.1 | $ 349.5 | $ 509.5 |
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts Payable, Trade, Current |
Balance Sheet Components Balanc
Balance Sheet Components Balance Sheet Components (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 991.9 | $ 1,259.9 | $ 701.2 | |
Restricted cash, included in prepaid and other current assets | 1.7 | 2.6 | 5 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 993.6 | $ 1,262.5 | $ 706.2 | $ 850 |
Balance Sheet Components (Inven
Balance Sheet Components (Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Raw materials | $ 731.7 | $ 571.5 |
Work in process | 602.1 | 755.4 |
Finished goods | 2,135.9 | 2,192.6 |
Inventories | $ 3,469.7 | $ 3,519.5 |
Balance Sheet Components (Prepa
Balance Sheet Components (Prepaids and other current assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Other Assets [Line Items] | ||
Prepaid expenses | $ 155.9 | $ 194.6 |
Available-for-sale fixed income securities | 37 | 35.3 |
Fair value of financial instruments | 106.2 | 134.7 |
Equity securities | 49.3 | 42.6 |
Deferred charge for taxes on intercompany profit | 747.3 | 747.2 |
Income tax receivable | 340.2 | 328.4 |
Other current assets | 271 | 328.4 |
Prepaid expenses and other current assets | 2,028.1 | 1,811.2 |
Biocon Biologics | ||
Schedule of Other Assets [Line Items] | ||
Deferred consideration due from Biocon Biologics | 0 | 299.5 |
Other Current Assets | Biocon Biologics | ||
Schedule of Other Assets [Line Items] | ||
Deferred consideration due from Biocon Biologics | $ 321.2 | $ 0 |
Balance Sheet Components (Prope
Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 4,770.3 | $ 5,083.8 |
Accumulated depreciation | 2,010.7 | 2,059.3 |
Property, plant and equipment, net | 2,759.6 | 3,024.5 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,774.5 | 2,936.7 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,444.4 | 1,539.7 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 431.2 | 474 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 120.2 | $ 133.4 |
Balance Sheet Components (Other
Balance Sheet Components (Other Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Other Assets [Line Items] | ||
Operating lease right-of-use assets | $ 245.6 | $ 259.3 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Other long-term assets | $ 821.1 | $ 753.3 |
Other assets | 2,208.7 | 2,403.5 |
Biocon Biologics | ||
Schedule of Other Assets [Line Items] | ||
Deferred consideration due from Biocon Biologics | 0 | 299.5 |
Convertible Preferred Stock | ||
Schedule of Other Assets [Line Items] | ||
Equity Securities, FV-NI, Cost | 976.3 | 997.4 |
Private Equity Securities | ||
Schedule of Other Assets [Line Items] | ||
Equity Securities, FV-NI, Cost | $ 165.7 | $ 94 |
Balance Sheet Components (Trade
Balance Sheet Components (Trade Accounts Payable) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts Payable, Current [Abstract] | ||
Trade accounts payable | $ 1,381.4 | $ 1,158 |
Other payables | 556.8 | 608.6 |
Accounts payable | $ 1,938.2 | $ 1,766.6 |
Balance Sheet Components (Oth_2
Balance Sheet Components (Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of other current liabilities [Line Items] | |||
Accrued sales allowances | $ 876.6 | $ 570.7 | |
Payroll and employee benefit liabilities | 844.5 | 746.8 | |
Legal and professional accruals, including litigation accruals | 244 | 297.2 | |
Contingent consideration | 215.1 | 375 | $ 199.7 |
Accrued restructuring | 36.4 | 95.3 | |
Accrued interest | 66.8 | 80.2 | |
Fair value of financial instruments | 124.6 | 187 | |
Operating lease liability | 83 | 80.6 | |
Due to Biocon Biologics | 275.1 | 0 | |
Other | 898.4 | 978.1 | |
Other current liabilities | 3,393.9 | 3,440.9 | |
Biocon Biologics | |||
Schedule of other current liabilities [Line Items] | |||
Due to Biocon Biologics | 23.8 | 22.5 | |
Variable Consideration | |||
Schedule of other current liabilities [Line Items] | |||
Accrued sales allowances | 996.3 | 888.8 | |
Other current liabilities | |||
Schedule of other current liabilities [Line Items] | |||
Contingent consideration | $ 76.1 | $ 64.4 | $ 66.7 |
Balance Sheet Components (Oth_3
Balance Sheet Components (Other noncurrent liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Other Noncurrent Liabilities [Line Items] | |||
Employee benefit liabilities | $ 504.3 | $ 544.6 | |
Contingent consideration | 215.1 | 375 | $ 199.7 |
Tax related items, including contingencies | 399.3 | 414.6 | |
Operating lease liability | 165.4 | 181.4 | |
Accrued restructuring | 59.2 | 60.4 | |
Other | 249.7 | 244.9 | |
Other Liabilities, Noncurrent | 1,516.9 | 1,756.5 | |
Biocon Biologics | |||
Schedule of Other Noncurrent Liabilities [Line Items] | |||
Contingent consideration | 15.8 | 221.2 | |
Other Noncurrent Liabilities | |||
Schedule of Other Noncurrent Liabilities [Line Items] | |||
Contingent consideration | $ 139 | $ 310.6 | $ 133 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2022 | |
Leases [Abstract] | ||||
Right-of-use asset | $ 245,600 | $ 259,300 | ||
Total lease liability | $ 248,400 | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | Other Liabilities, Current | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | ||
Amount of operating leases not yet commenced | $ 6,100 | |||
Payments for rent | 87,600 | $ 90,900 | $ 97,600 | |
Supplier Finance Program, Obligation | $ 65,100 | $ 33,400 |
Leases (Lease Information) (Det
Leases (Lease Information) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term | 5 years |
Weighted-average discount rate | 3.30% |
Amount of operating leases not yet commenced | $ 6.1 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 21 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Leases (Lease Maturities) (Deta
Leases (Lease Maturities) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 79,300 |
2025 | 62,700 |
2026 | 41,500 |
2027 | 30,400 |
2028 | 17,300 |
Thereafter | 39,500 |
Total lease payments | 270,700 |
Less imputed interest | 22,300 |
Total lease liability | $ 248,400 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Apr. 01, 2023 USD ($) | |
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Finite-lived intangible assets, net | $ 18,861.7 | $ 22,566.9 | $ 18,861.7 | $ 22,566.9 | |||
In-process research and development | 319.4 | 40.2 | 319.4 | 40.2 | |||
Goodwill | 9,867.1 | 10,425.8 | 9,867.1 | 10,425.8 | $ 12,113.7 | ||
Goodwill, Derecognized | 919.7 | ||||||
Impairment of goodwill | (581) | (117) | 0 | ||||
Goodwill, Transfers | (189) | ||||||
Intangible assets, net | 19,181.1 | 22,607.1 | $ 19,181.1 | 22,607.1 | |||
Europe Segment | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Decrease In Fair Value During Period, Percentage | 10% | ||||||
North America Segment | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Decrease In Fair Value During Period, Percentage | 10% | ||||||
Greater China | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Decrease In Fair Value During Period, Percentage | 10% | ||||||
JANZ | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Decrease In Fair Value During Period, Percentage | 15% | ||||||
Emerging Markets | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Decrease In Fair Value During Period, Percentage | 15% | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Property, plant and equipment, net | 262.2 | 0 | $ 262.2 | 0 | |||
Disposal Group, Held-for-Sale or Disposed of by Sale, Not Discontinued Operations | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Intangible assets, net | 1,930 | 1,930 | |||||
Disposal Group, Held-for-Sale or Disposed of by Sale, Not Discontinued Operations | API | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill, Transfers | 120 | ||||||
Disposal Group, Held-for-Sale or Disposed of by Sale, Not Discontinued Operations | Women's Healthcare Business | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill, Transfers | 69 | ||||||
In-process research and development | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
IPR&D intangible asset impairment charges | 0 | 0.6 | 19.4 | ||||
Product rights and licenses | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Finite-lived intangible assets, net | $ 18,861 | 22,565.9 | 18,861 | 22,565.9 | |||
Finite-lived intangible asset disposal & impairment charges | 172.9 | $ 32 | 172.9 | 83.4 | |||
Europe Segment | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 535 | ||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 3.90% | 3.90% | |||||
Good will, After Amortization Expense, Before Reclassification | $ 4,470 | $ 4,470 | |||||
North America Segment | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Good will, After Amortization Expense, Before Reclassification | 3,150 | 3,150 | |||||
JANZ | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 145 | $ 145 | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 5.50% | 5.50% | |||||
Goodwill | $ 645.7 | 689 | $ 645.7 | 689 | 776.3 | ||
Impairment of goodwill | (30) | ||||||
Goodwill, Transfers | 0 | ||||||
Good will, After Amortization Expense, Before Reclassification | 680 | 680 | |||||
JANZ | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input, Term | 10 years | ||||||
JANZ | Product rights and licenses | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Finite-lived intangible assets, net | 1,177.2 | 1,325.5 | 1,177.2 | 1,325.5 | |||
Greater China | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill | 932.8 | 940.6 | 932.8 | 940.6 | 969.5 | ||
Impairment of goodwill | 0 | ||||||
Goodwill, Transfers | 0 | ||||||
Good will, After Amortization Expense, Before Reclassification | 940 | 940 | |||||
Greater China | Product rights and licenses | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Finite-lived intangible assets, net | 5,216.5 | 5,642.9 | 5,216.5 | 5,642.9 | |||
Emerging Markets | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 513 | $ 513 | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 7.70% | 7.70% | |||||
Goodwill | $ 1,181.2 | 1,334.7 | $ 1,181.2 | 1,334.7 | $ 1,644.5 | ||
Goodwill, Transfers | (137) | ||||||
Good will, After Amortization Expense, Before Reclassification | 1,340 | 1,340 | |||||
Emerging Markets | Disposal Group, Held-for-sale, Not Discontinued Operations | Upjohn Distributor Markets | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Impairment of goodwill | (117) | (7) | |||||
Emerging Markets | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input, Term | 10 years | ||||||
Emerging Markets | Product rights and licenses | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Finite-lived intangible assets, net | $ 3,035.7 | $ 3,386.4 | $ 3,035.7 | $ 3,386.4 | |||
Measurement Input, Discount Rate | In-process research and development | Minimum | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Rate used to discount net cash inflows to present values | 0.100 | 0.100 | 0.070 | ||||
Measurement Input, Discount Rate | In-process research and development | Maximum | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Rate used to discount net cash inflows to present values | 0.240 | 0.105 | 0.240 | 0.105 | 0.090 | ||
Measurement Input, Discount Rate | Europe Segment | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.110 | 0.110 | |||||
Measurement Input, Discount Rate | Europe Segment | Minimum | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input Increase | 1% | 1% | |||||
Measurement Input, Discount Rate | Europe Segment | Maximum | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input Increase | 4.50% | 4.50% | |||||
Measurement Input, Discount Rate | JANZ | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.070 | 0.070 | |||||
Measurement Input, Discount Rate | Emerging Markets | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.115 | 0.115 | |||||
Measurement Input, Long-term Revenue Growth Rate | Europe Segment | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.024 | 0.024 | |||||
Measurement Input, Long-term Revenue Growth Rate | JANZ | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.020 | 0.020 | |||||
Measurement Input, Long-term Revenue Growth Rate | Emerging Markets | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.018 | 0.018 | |||||
Measurement Input, Estimated Tax Rate | Europe Segment | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.149 | 0.149 | |||||
Measurement Input, Estimated Tax Rate | JANZ | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.306 | 0.306 | |||||
Measurement Input, Estimated Tax Rate | Emerging Markets | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.174 | 0.174 | |||||
Measurement Input, Terminal Year Revenue Growth Rate | Europe Segment | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.020 | 0.020 | |||||
Measurement Input, Terminal Year Revenue Growth Rate | JANZ | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.015 | 0.015 | |||||
Measurement Input, Terminal Year Revenue Growth Rate | Emerging Markets | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.020 | 0.020 | |||||
Measurement Input, Reduction in Terminal Year Revenue Growth Rate | Europe Segment | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.010 | 0.010 | |||||
Measurement Input, Reduction in Terminal Year Revenue Growth Rate | JANZ | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.005 | 0.005 | |||||
Measurement Input, Reduction in Terminal Year Revenue Growth Rate | Emerging Markets | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.025 | 0.025 | |||||
Measurement Input, Increase in Discount Rate | Europe Segment | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.005 | 0.005 | |||||
Measurement Input, Increase in Discount Rate | JANZ | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.005 | 0.005 | |||||
Measurement Input, Increase in Discount Rate | Emerging Markets | Valuation Technique, Discounted Cash Flow | |||||||
Intangible Assets Excluding Goodwill [Line Items] | |||||||
Goodwill Impairment, Measurement Input | 0.010 | 0.010 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Changes in Carrying Amount Of Goodwill) (Details) € in Millions, ¥ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 JPY (¥) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 JPY (¥) | |
Goodwill [Line Items] | ||||||||
Goodwill | $ 10,425.8 | $ 9,867.1 | $ 10,425.8 | $ 12,113.7 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | (919.7) | |||||||
Foreign currency translation | 115.4 | (651.2) | ||||||
Goodwill, Transfers | (189) | |||||||
Impairment of goodwill | (581) | (117) | 0 | |||||
Goodwill, net, ending balance | 10,425.8 | 9,867.1 | 10,425.8 | 12,113.7 | ||||
Goodwill, Acquired During Period | 95.9 | |||||||
Net Investment Hedging | ||||||||
Goodwill [Line Items] | ||||||||
Notional amount of derivative | € 5,600 | ¥ 40,000 | € 5,100 | ¥ 40,000 | ||||
2020 Floating Rate Euro Notes | Net Investment Hedging | ||||||||
Goodwill [Line Items] | ||||||||
Notional amount of derivative | € | € 500 | € 0 | ||||||
Developed Markets | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 7,461.5 | 7,107.4 | 7,461.5 | 8,723.4 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | (743.9) | |||||||
Foreign currency translation | 146 | (518) | ||||||
Goodwill, Transfers | (52) | |||||||
Impairment of goodwill | (544) | |||||||
Goodwill, net, ending balance | 7,461.5 | 7,107.4 | 7,461.5 | 8,723.4 | ||||
Goodwill, Acquired During Period | 95.9 | |||||||
Goodwill, Impaired, Accumulated Impairment Loss | 385 | 929 | 385 | 385 | ||||
Greater China | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 940.6 | 932.8 | 940.6 | 969.5 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | (2.7) | |||||||
Foreign currency translation | (7.8) | (26.2) | ||||||
Goodwill, Transfers | 0 | |||||||
Impairment of goodwill | 0 | |||||||
Goodwill, net, ending balance | 940.6 | 932.8 | 940.6 | 969.5 | ||||
Goodwill, Acquired During Period | 0 | |||||||
JANZ | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 689 | 645.7 | 689 | 776.3 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | (32.6) | |||||||
Foreign currency translation | (13.3) | (54.7) | ||||||
Goodwill, Transfers | 0 | |||||||
Impairment of goodwill | (30) | |||||||
Goodwill, net, ending balance | 689 | 645.7 | 689 | 776.3 | ||||
Goodwill, Acquired During Period | 0 | |||||||
Goodwill, Impaired, Accumulated Impairment Loss | 30 | |||||||
Emerging Markets | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 1,334.7 | 1,181.2 | 1,334.7 | 1,644.5 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | (140.5) | |||||||
Foreign currency translation | (9.5) | (52.3) | ||||||
Goodwill, Transfers | (137) | |||||||
Goodwill, net, ending balance | 1,334.7 | 1,181.2 | 1,334.7 | $ 1,644.5 | ||||
Goodwill, Acquired During Period | 0 | |||||||
Emerging Markets | Disposal Group, Held-for-sale, Not Discontinued Operations | Upjohn Distributor Markets | ||||||||
Goodwill [Line Items] | ||||||||
Impairment of goodwill | (117) | (7) | ||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 117 | $ (124) | $ 117 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Components of Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-lived intangible assets, original cost | $ 34,178.1 | $ 37,490.5 |
Finite-lived intangible assets, accumulated amortization | 15,316.4 | 14,923.6 |
Finite-lived intangible assets, net book value | 18,861.7 | 22,566.9 |
In-process research and development | 319.4 | 40.2 |
Intangible assets, gross, excluding goodwill | 34,497.5 | 37,530.7 |
Intangible assets, net book value, excluding goodwill | $ 19,181.1 | $ 22,607.1 |
Patents | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-lived intangible asset, estimated useful life, in years | 13 years | 15 years |
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 13 years | 15 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Product Rights and License by Therapeutic Category) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | $ 18,861.7 | $ 22,566.9 |
Product rights and licenses | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 18,861 | 22,565.9 |
Product rights and licenses | Developed Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 9,431.6 | 12,211.1 |
Product rights and licenses | Greater China | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 5,216.5 | 5,642.9 |
Product rights and licenses | JANZ | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 1,177.2 | 1,325.5 |
Product rights and licenses | Emerging Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 3,035.7 | 3,386.4 |
Product rights and licenses | Brands | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 16,747.1 | 18,578.3 |
Product rights and licenses | Brands | Developed Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 7,723.4 | 8,762.2 |
Product rights and licenses | Brands | Greater China | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 5,206.8 | 5,632.3 |
Product rights and licenses | Brands | JANZ | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 961 | 1,061.3 |
Product rights and licenses | Brands | Emerging Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 2,855.9 | 3,122.5 |
Product rights and licenses | Generics | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 2,113.9 | 3,987.6 |
Product rights and licenses | Generics | Developed Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 1,708.2 | 3,448.9 |
Product rights and licenses | Generics | Greater China | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 9.7 | 10.6 |
Product rights and licenses | Generics | JANZ | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | 216.2 | 264.2 |
Product rights and licenses | Generics | Emerging Markets | ||
Schedule of Product Rights and Licenses by Therapeutic Class [Line Items] | ||
Finite-lived intangible assets, net | $ 179.8 | $ 263.9 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets Excluding Goodwill [Line Items] | |||
Intangible asset amortization expense | $ 2,317.1 | $ 2,504.6 | $ 2,702.2 |
Total intangible asset amortization expense (including disposal & impairment charges) | $ 2,349.1 | 2,678.1 | 2,805 |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | ||
In-process research and development | |||
Intangible Assets Excluding Goodwill [Line Items] | |||
IPR&D intangible asset impairment charges | $ 0 | $ 0.6 | $ 19.4 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Future amortization expense) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 2,314 |
2025 | 2,235 |
2026 | 2,183 |
2027 | 2,102 |
2028 | 1,859 |
Goodwill, Transfers | $ (189) |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) € in Millions, $ in Millions, ¥ in Billions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 JPY (¥) | Oct. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Derivative [Line Items] | |||||
Purchase consideration, contingent consideration | $ 215.1 | $ 375 | $ 199.7 | ||
Net Investment Hedging | Cross-currency interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | ¥ | ¥ 14.6 | ||||
Net Investment Hedging | Currency Swap | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | € | € 500 | ||||
Respiratory delivery platform | |||||
Derivative [Line Items] | |||||
Purchase consideration, contingent consideration | 177.6 | 132 | |||
Biocon Biologics | |||||
Derivative [Line Items] | |||||
Purchase consideration, contingent consideration | 15.8 | $ 221.2 | |||
YEN Term Loan | |||||
Derivative [Line Items] | |||||
Long-term debt | $ 283.6 | ||||
Measurement Input, Discount Rate | Contingent consideration | Minimum | |||||
Derivative [Line Items] | |||||
Rate used to discount net cash inflows to present values | 0.064 | 0.064 | 0.064 | ||
Measurement Input, Discount Rate | Contingent consideration | Maximum | |||||
Derivative [Line Items] | |||||
Rate used to discount net cash inflows to present values | 0.080 | 0.080 | 0.090 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Derivatives Designated as Hedging Instruments Fair Values of Derivative Instruments) (Details) € in Millions, ¥ in Millions, $ in Millions | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 JPY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 JPY (¥) | Dec. 31, 2022 USD ($) |
2.250% Euro Senior Notes due 2024 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 2.25% | 2.25% | 2.25% | |||
2.250% Euro Senior Notes due 2024 | Senior Notes [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 2.25% | 2.25% | 2.25% | |||
Long-term debt | $ | $ 0 | $ 1,069.8 | ||||
2.125% Euro Senior Notes due 2025 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 1.023% | 1.023% | 1.023% | |||
2.125% Euro Senior Notes due 2025 | Senior Notes [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | $ | $ 0 | 813.5 | ||||
2025 Euro Senior Notes | Senior Notes [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 2.125% | 2.125% | 2.125% | |||
Long-term debt | $ | $ 551.7 | 534.8 | ||||
2027 Euro Senior Notes | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 1.362% | 1.362% | 1.362% | |||
2027 Euro Senior Notes | Senior Notes [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | $ | $ 967.2 | 945.9 | ||||
2028 Euro Senior Notes | Senior Notes [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 3.125% | 3.125% | 3.125% | |||
Long-term debt | $ | $ 824.1 | 798.5 | ||||
2028 Senior Notes | Senior Notes [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 4.55% | 4.55% | 4.55% | |||
Long-term debt | $ | $ 749.1 | 748.9 | ||||
2032 Euro Senior Notes | Senior Notes [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 1.908% | 1.908% | 1.908% | |||
Long-term debt | $ | $ 1,478.4 | $ 1,444.4 | ||||
YEN Term Loan | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | $ | $ 283.6 | |||||
Net Investment Hedging | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | € 5,600 | ¥ 40,000 | ||||
Notional amount of derivative | 5,600 | 40,000 | € 5,100 | ¥ 40,000 | ||
Net Investment Hedging | 2020 Floating Rate Euro Notes | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | 500 | |||||
Notional amount of derivative | 500 | 0 | ||||
Net Investment Hedging | 2.250% Euro Senior Notes due 2024 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | 1,000 | |||||
Notional amount of derivative | 1,000 | 1,000 | ||||
Net Investment Hedging | 2.125% Euro Senior Notes due 2025 | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | 750 | |||||
Notional amount of derivative | 750 | 750 | ||||
Net Investment Hedging | 2025 Euro Senior Notes | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | 500 | |||||
Notional amount of derivative | 500 | 500 | ||||
Net Investment Hedging | 2027 Euro Senior Notes | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | 850 | |||||
Notional amount of derivative | 850 | 850 | ||||
Net Investment Hedging | 2028 Senior Notes | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | 750 | |||||
Notional amount of derivative | 750 | 750 | ||||
Net Investment Hedging | 2032 Euro Senior Notes | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | 1,250 | |||||
Notional amount of derivative | € 1,250 | € 1,250 | ||||
Net Investment Hedging | YEN Term Loan | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Long-term debt | ¥ | 40,000 | |||||
Notional amount of derivative | ¥ | ¥ 40,000 | ¥ 40,000 |
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, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 106.2 | $ 134.7 |
Liability Derivatives | 124.6 | 187 |
Not designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 88.7 | 104.3 |
Liability Derivatives | 88.8 | 160.6 |
Not designated as hedging instrument | Prepaid expenses & other current assets | Foreign currency option and forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 88.7 | 104.3 |
Not designated as hedging instrument | Other current liabilities | Foreign currency option and forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 88.8 | 160.6 |
Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 17.5 | 30.4 |
Liability Derivatives | 35.8 | 26.4 |
Designated as hedging instrument | Prepaid expenses & other current assets | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 17.5 | 30.4 |
Designated as hedging instrument | Other current liabilities | Foreign currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 35.8 | $ 26.4 |
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) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative financial instruments not designated as hedging instruments | $ 58.1 | $ (82.1) | $ 39.3 |
Other (income) expense, net | Foreign currency option and forward contracts | Not designated as hedging instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative financial instruments not designated as hedging instruments | 56.3 | (82.1) | 39.3 |
Net Investment Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative financial instruments in cash flow hedging relationships | (178.5) | 460.1 | 456.8 |
Net Investment Hedging | Interest expense | Cross-currency interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative financial instruments in cash flow hedging relationships | $ 1.8 | $ 0 | $ 0 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management (Effect of Derivative Instruments on the Consolidated Statements of Operations Derivatives in Cash Flow Hedging Relationships) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax net losses on cash flow hedges to be reclassified from AOCE into earnings in next twelve months | $ (21) | ||
Other comprehensive loss, net of tax | 13.8 | $ (1,016.9) | $ (886.3) |
Foreign currency option and forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (99.6) | 390.8 | 479 |
Other comprehensive loss, net of tax | 40.5 | 84.7 | 26.6 |
Cash flow hedging relationships | Foreign currency option and forward contracts | Net sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 44.3 | 34.2 | 45.8 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 45.3 | 89.2 | 30.9 |
Cash flow hedging relationships | Cross-currency interest rate swaps | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (3.8) | (3.5) | (3.4) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (4.8) | (4.5) | (4.3) |
Net Investment Hedging | Foreign currency option and forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (18.3) | 0 | 0 |
Net Investment Hedging | Foreign currency option and forward contracts | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (120.1) | 360.1 | 436.6 |
Net Investment Hedging | Cross-currency interest rate swaps | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | $ (1.7) | $ 0 | $ 0 |
Financial Instruments and Ris_8
Financial Instruments and Risk Management (Financial Assets and Liabilities Carried at Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 49.3 | $ 42.6 |
Fair Value | 37 | 35.3 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 651.4 | 688.8 |
Total assets at recurring fair value measurement | 700.7 | 731.4 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 651.4 | 688.8 |
Level 1 | Equity securities — exchange traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 49.1 | 42.4 |
Level 1 | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 49.3 | 42.6 |
Level 1 | Marketable Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0.2 | 0.2 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at recurring fair value measurement | 143.2 | 170 |
Total liabilities at recurring fair value measurement | 124.6 | 187 |
Level 2 | Foreign currency option and forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivative assets | 106.2 | 134.7 |
Level 2 | Foreign currency option and forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange derivative liabilities | 124.6 | 187 |
Level 2 | Available-for-sale fixed income investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 37 | 35.3 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 15.9 | 13.2 |
Level 2 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11.2 | 11.7 |
Level 2 | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4.6 | 4.7 |
Level 2 | Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5.1 | 5.1 |
Level 2 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0.2 | 0.6 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at recurring fair value measurement | 976.3 | 997.4 |
Total liabilities at recurring fair value measurement | 215.1 | 375 |
Level 3 | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 215.1 | 375 |
Level 3 | Convertible Preferred Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 976.3 | $ 997.4 |
Financial Instruments and Ris_9
Financial Instruments and Risk Management (Rollforward of Contingent Consideration) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Activity in Contingent Consideration [Roll Forward] | ||
Balance at beginning of period | $ 375 | $ 199.7 |
Biocon Biologics Transaction | 220 | |
Payments | 263 | 64.1 |
Reclassifications | 0 | 0 |
Accretion | 22.7 | 8.2 |
Fair value loss (gain) | 80.4 | 11.2 |
Balance at end of period | 215.1 | 375 |
Other current liabilities | ||
Schedule of Activity in Contingent Consideration [Roll Forward] | ||
Balance at beginning of period | 64.4 | 66.7 |
Biocon Biologics Transaction | 0 | |
Payments | 43 | 64.1 |
Reclassifications | 54.7 | 61.8 |
Accretion | 0 | 0 |
Fair value loss (gain) | 0 | 0 |
Balance at end of period | 76.1 | 64.4 |
Other Noncurrent Liabilities | ||
Schedule of Activity in Contingent Consideration [Roll Forward] | ||
Balance at beginning of period | 310.6 | 133 |
Biocon Biologics Transaction | 220 | |
Payments | 220 | 0 |
Reclassifications | (54.7) | (61.8) |
Accretion | 22.7 | 8.2 |
Fair value loss (gain) | 80.4 | 11.2 |
Balance at end of period | $ 139 | $ 310.6 |
Financial Instruments and Ri_10
Financial Instruments and Risk Management (Schedule of Available-for-sale Securities Reconciliation) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 37.8 | $ 38 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.8) | (2.7) |
Fair Value | 37 | 35.3 |
Available-for-sale fixed income investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 37.8 | 38 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.8) | (2.7) |
Fair Value | $ 37 | $ 35.3 |
Financial Instruments and Ri_11
Financial Instruments and Risk Management (Maturities of Available-for-sale Debt Securities at Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Mature within one year | $ 1 | |
Mature in one to five years | 19.6 | |
Mature in five years and later | 16.4 | |
Fair Value | $ 37 | $ 35.3 |
Debt Debt (Receivables Facility
Debt Debt (Receivables Facility and Commercial Paper Program) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 06, 2017 | |
Debt Instrument [Line Items] | |||
Securitized accounts receivable | $ 564.5 | $ 474.9 | |
Commercial Paper Program [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,650 | ||
Receivables Facility | |||
Debt Instrument [Line Items] | |||
Accounts receivable securitization facility maximum borrowing capacity | $ 400 | ||
Debt Instrument, Basis Spread on Variable Rate | 0.775% | ||
Note Securitization Facility [Member] | |||
Debt Instrument [Line Items] | |||
Accounts receivable securitization facility maximum borrowing capacity | $ 200 | ||
Debt Instrument, Basis Spread on Variable Rate | 1% |
Debt (Summary of Long-term Debt
Debt (Summary of Long-term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Debt, Current | $ 1,934.7 | $ 1,250.5 | |
Unamortized Debt Issuance Expense | (29.5) | (35.1) | |
Long-term debt | 16,188.1 | 18,015.2 | |
Proceeds from Sale of Securities, Operating Activities | $ 45 | ||
Other Current Portion of Long-term Debt | |||
Debt Instrument [Line Items] | |||
Debt, Current | 0.4 | 0.7 | |
2020 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 283.6 | 305.1 | |
Senior Notes 2023 3.125% | |||
Debt Instrument [Line Items] | |||
Debt, Current | $ 0 | 750.6 | |
Debt instrument, interest rate, stated percentage | 3.125% | ||
2023 Senior Notes (4.200%) | |||
Debt Instrument [Line Items] | |||
Debt, Current | $ 0 | 499.8 | |
Debt instrument, interest rate, stated percentage | 4.20% | ||
2.250% Euro Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 2.25% | ||
Other Long Term Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 2.4 | 2 | |
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% | ||
Senior Notes | 2.250% Euro Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Debt, Current | $ 1,103.5 | 0 | |
Debt instrument, interest rate, stated percentage | 2.25% | ||
Long-term debt | $ 0 | 1,069.8 | |
Senior Notes | 2025 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 2.125% | ||
Long-term debt | $ 551.7 | 534.8 | |
Senior Notes | 2026 Senior Notes (3.950%) | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 3.95% | ||
Long-term debt | $ 2,245.1 | 2,243.2 | |
Senior Notes | 2028 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 3.125% | ||
Long-term debt | $ 824.1 | 798.5 | |
Senior Notes | 2028 Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 4.55% | ||
Long-term debt | $ 749.1 | 748.9 | |
Senior Notes | 2043 Senior Notes (5.400%) | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 5.40% | ||
Long-term debt | $ 497.5 | 497.4 | |
Senior Notes | 2046 Senior Notes (5.250%) | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 5.25% | ||
Long-term debt | $ 999.9 | 999.9 | |
Senior Notes | 2048 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 5.20% | ||
Long-term debt | $ 747.8 | 747.8 | |
Senior Notes | 2.125% Euro Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Debt, Current | 831.5 | 0 | |
Long-term debt | 0 | 813.5 | |
Senior Notes | 2027 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 967.2 | 945.9 | |
Senior Notes | 2027 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 769.8 | 775.3 | |
Senior Notes | 2030 Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 2.70% | ||
Long-term debt | $ 1,505 | 1,512.8 | |
Senior Notes | 2032 Euro Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 1.908% | ||
Long-term debt | $ 1,478.4 | 1,444.4 | |
Senior Notes | 2040 Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 3.85% | ||
Long-term debt | $ 1,644 | 1,650.6 | |
Senior Notes | 2050 Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 4% | ||
Long-term debt | $ 2,196.3 | 2,200.8 | |
Senior Notes | 2025 Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 1.65% | ||
Long-term debt | $ 755.7 | 759.6 | |
Current portion of long-term debt | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | $ (0.7) | $ (0.6) |
Debt (Revolving Facilities and
Debt (Revolving Facilities and Term Facilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Debt, Current | $ 1,934.7 | $ 1,250.5 |
Debt (Issuance of 2018 Senior N
Debt (Issuance of 2018 Senior Notes) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 16,188.1 | $ 18,015.2 |
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) $ in Millions, ¥ in Billions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 31, 2021 JPY (¥) Rate | Jun. 30, 2021 USD ($) |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 16,188.1 | $ 18,015.2 | ||
Long-term Debt, Gross | 17,614 | |||
2020 Euro Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 283.6 | 305.1 | ||
2.250% Euro Senior Notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.25% | |||
YEN Term Loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 283.6 | |||
Senior Notes | 2.250% Euro Senior Notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.25% | |||
Long-term debt | $ 0 | 1,069.8 | ||
Senior Notes | 2028 Euro Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.125% | |||
Long-term debt | $ 824.1 | 798.5 | ||
Senior Notes | 2028 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 4.55% | |||
Long-term debt | $ 749.1 | 748.9 | ||
Senior Notes | 2048 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 5.20% | |||
Long-term debt | $ 747.8 | 747.8 | ||
Senior Notes | 2025 Euro Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.125% | |||
Long-term debt | $ 551.7 | $ 534.8 | ||
Revolving Credit Facility | Twenty Twenty One Revolving Facility | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000 | |||
Medium-term Notes | YEN Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | ¥ | ¥ 40 | |||
Medium-term Notes | Twenty Twenty One Loan Facilities | ||||
Debt Instrument [Line Items] | ||||
Maximum Leverage Ratio, Period Three | Rate | 375% |
Debt (Fair Value) (Narrative) (
Debt (Fair Value) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Proceeds from Sale of Securities, Operating Activities | $ 45 | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Fair value of long-term debt | $ 15,250 | $ 15,360 |
Debt (Minimum Repayments on Out
Debt (Minimum Repayments on Outstanding Borrowings) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 1,932 |
2022 | 1,302 |
2023 | 2,534 |
2024 | 1,688 |
2025 | 1,578 |
Thereafter | 8,580 |
Total | $ 17,614 |
Comprehensive Earnings (Accumul
Comprehensive Earnings (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total equity | $ 20,467.4 | $ 21,072.3 | $ 20,492.7 | $ 22,954.1 |
Net unrealized loss on available-for-sale fixed income securities, net of tax | (1.2) | (2.3) | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (271.4) | (268.5) | ||
Foreign currency translation adjustment | (3,246.7) | (3,385.9) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,747.4) | |||
Net unrealized loss on available-for-sale fixed income securities, net of tax | (1.2) | (2.3) | ||
Net unrecognized gain and prior service cost related to defined benefit plans, net of tax | 271.4 | 268.5 | ||
Foreign currency translation adjustment | (3,246.7) | (3,385.9) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,747.4) | |||
AOCI Attributable to Parent [Member] | ||||
Total equity | (2,747.4) | (1,744.3) | (858) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,761.2) | (1,744.3) | (858) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,761.2) | (1,744.3) | (858) | |
Foreign Currency Translation Adjustment | ||||
Foreign currency translation adjustment | (1,802.4) | (461.5) | ||
Foreign currency translation adjustment | 139.2 | (1,583.5) | (1,340.9) | |
Foreign currency translation adjustment | (1,802.4) | (461.5) | ||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | ||||
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | (8) | (18.5) | ||
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | (8) | (18.5) | ||
Net Investment Hedging | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 237.1 | 377 | 16.7 | (353.6) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | $ 237.1 | $ 377 | $ 16.7 | $ (353.6) |
Comprehensive Earnings (Compone
Comprehensive Earnings (Components of Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total equity | $ 20,467.4 | $ 21,072.3 | $ 20,492.7 | $ 22,954.1 |
Net unrealized gains on marketable securities, net of tax, beginning of period | (2.3) | |||
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax, beginning of period | 268.5 | |||
Foreign currency translation adjustment, beginning of period | (3,385.9) | |||
Other comprehensive earnings (loss) before reclassifications, before tax | 1.5 | |||
Net sales | 15,388.4 | 16,218.1 | 17,813.6 | |
Interest expense | (573.1) | (592.4) | (636.2) | |
Amortization of prior service costs included in SG&A | 0 | |||
Other comprehensive (loss) earnings, before tax | (42.6) | (884) | (775.2) | |
Income tax related to items of other comprehensive (loss) earnings, derivatives | (148.2) | (734.6) | (604.7) | |
Net unrealized gains on marketable securities, net of tax, end of period | (1.2) | (2.3) | ||
Net unrealized gains on marketable securities, net of tax, end of period | 271.4 | 268.5 | ||
Foreign currency translation adjustment, end of period | (3,246.7) | (3,385.9) | ||
Accumulated other comprehensive loss, net of tax, end of period | (2,747.4) | |||
Net unrealized gain (loss) on available-for-sale fixed income securities | 1.5 | (2.8) | (1.1) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | 18.7 | (279.1) | (73.9) | |
Income tax (benefit) provision | (56.4) | 132.9 | 111.1 | |
Other Comprehensive Income, Gain (Loss), Defined Benefit Plan, Divestiture Of Plan | (3) | |||
Other Pension, Postretirement and Supplemental Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of prior service costs included in SG&A | (0.7) | (0.6) | ||
Other Comprehensive Income, Gain (Loss), Defined Benefit Plan, Divestiture Of Plan | (3) | |||
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 | (0.4) | |||
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 | 9.2 | (18) | ||
Other comprehensive earnings (loss) before reclassifications, before tax | 62.7 | |||
Income tax related to items of other comprehensive (loss) earnings, derivatives | 9.2 | |||
Net unrecognized gains (losses) on derivatives, net of tax, end of period | 9.2 | |||
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 | (30.9) | |||
Interest expense | 4.3 | |||
Income tax related to items of other comprehensive (loss) earnings, derivatives | 8.9 | |||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Foreign currency option and forward contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | (45.3) | (89.2) | (30.9) | |
Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Cross-currency interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest expense | (4.8) | (4.5) | 4.3 | |
Gains and Losses on Available-For-Sale Fixed Income Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net unrealized gains on marketable securities, net of tax, beginning of period | 0 | 1.2 | ||
Other comprehensive earnings (loss) before reclassifications, before tax | (2.8) | (1.1) | ||
Net unrealized gains on marketable securities, net of tax, end of period | 0 | |||
Net unrealized gain (loss) on available-for-sale fixed income securities | (1.1) | |||
Gains and Losses on Available-For-Sale Fixed Income 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 | 0.5 | 0.1 | ||
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 | 32.2 | (26.1) | ||
Other comprehensive earnings (loss) before reclassifications, before tax | (37.3) | 276.3 | 67 | |
Net unrealized gains on marketable securities, net of tax, end of period | 32.2 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | 73.9 | |||
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 | (0.3) | (0.4) | (0.5) | |
Amortization of actuarial loss included in SG&A | 21.9 | 3.2 | 7.4 | |
Income tax related to items of other comprehensive (loss) earnings, derivatives | 21.6 | 42.8 | 15.6 | |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation adjustment, beginning of period | (1,802.4) | (461.5) | ||
Other comprehensive earnings (loss) before reclassifications, before tax | 139.2 | (1,583.5) | (1,340.9) | |
Income tax related to items of other comprehensive (loss) earnings, derivatives | 0 | |||
Foreign currency translation adjustment, end of period | (1,802.4) | |||
Foreign currency translation adjustment | 139.2 | (1,583.5) | (1,340.9) | |
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 | (2,747.4) | (1,744.3) | (858) | |
Accumulated other comprehensive loss, net of tax, beginning of period | (2,761.2) | (1,744.3) | (858) | |
Other comprehensive earnings (loss) before reclassifications, before tax | (20.7) | (802.1) | (755.5) | |
Other comprehensive (loss) earnings, before tax | (884) | (775.2) | ||
Accumulated other comprehensive loss, net of tax, end of period | (2,761.2) | (1,744.3) | ||
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 | (0.3) | (0.4) | (0.5) | |
Amortization of actuarial loss included in SG&A | 21.9 | 3.2 | 7.4 | |
Income tax (benefit) provision | (56.4) | 132.9 | 111.1 | |
Accumulated Other Comprehensive Loss | Foreign currency option and forward contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | (45.3) | (89.2) | (30.9) | |
Accumulated Other Comprehensive Loss | Cross-currency interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest expense | (4.8) | (4.5) | 4.3 | |
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive earnings (loss) before reclassifications, before tax | 54.4 | 47.8 | ||
Other comprehensive (loss) earnings, before tax | 13.9 | |||
Income tax related to items of other comprehensive (loss) earnings, derivatives | (3.4) | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 36.1 | |||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Foreign currency option and forward contracts | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | (45.3) | |||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Foreign currency option and forward contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | (89.2) | |||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Cross-currency interest rate swaps | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest expense | (4.8) | |||
Cash flow hedging relationships | Gains and Losses on Derivatives in Cash Flow Hedging Relationships | Cross-currency interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest expense | (4.5) | |||
Net Investment Hedging | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 237.1 | 377 | 16.7 | $ (353.6) |
Other comprehensive earnings (loss) before reclassifications, before tax | (178.5) | 460.1 | 456.8 | |
Income tax related to items of other comprehensive (loss) earnings, derivatives | $ 38.6 | $ (99.8) | $ (86.5) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||||
Effective tax rate | 73% | 26.10% | (91.00%) | ||
Income tax (benefit) provision | $ 148.2 | $ 734.6 | $ 604.7 | ||
Deferred tax liability not recognized, amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | $ 1,180 | ||||
Statutory tax rate | 21% | 21% | 21% | ||
Valuation allowance, amount | $ 421.4 | $ 387 | |||
Expected foreign tax credits | 150.8 | ||||
Unrecognized tax benefit | 272.8 | 296.7 | $ 322.9 | $ 391.1 | |
Unrecognized tax benefits that impact effective tax rate | 191.4 | ||||
Accrued interest and penalties | 115.7 | 106.4 | |||
Interest expense (income) related to uncertain tax positions | 15.4 | 21.1 | $ 18.5 | ||
Amount of unrecognized deferred tax liability | 40 | ||||
Unrecognized tax benefit — beginning of year | 272.8 | 296.7 | $ 322.9 | $ 391.1 | |
Reserve for Uncertain Tax Positions, Including Interest And Penalties | 287.1 | 298.1 | |||
PUERTO RICO | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards expired in period | 274.4 | ||||
U.S. Federal Tax Authority | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | 281.9 | ||||
U.S. State Tax Authority | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | 3,400 | ||||
Foreign | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | 879.4 | ||||
Credit carryforward | 208.5 | ||||
Foreign | Australian Taxation Office | |||||
Income Tax Contingency [Line Items] | |||||
Partial payment of anticipated tax expense | 5.2 | $ 56 | |||
Foreign | Ministry of Finance, India | |||||
Income Tax Contingency [Line Items] | |||||
Income tax (benefit) provision | 22.3 | ||||
Indefinite | Foreign | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | 718.1 | ||||
2016 through 2035 | Foreign | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | $ 161.3 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Income tax provision | $ 148.2 | $ 734.6 | $ 604.7 |
Earnings (loss) before income taxes and noncontrolling interest: | |||
Operating and non-operating expense | 202.9 | 2,813.2 | (664.4) |
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
U.S. Federal Current | 2.6 | 115.3 | 12.6 |
U.S. Federal Deferred | 293.4 | 263.7 | (182.7) |
Income tax provision (benefit), U.S. Federal | 296 | 379 | (170.1) |
Earnings (loss) before income taxes and noncontrolling interest: | |||
Earnings before income taxes and noncontrolling interest, United States | (951.5) | 794.8 | (1,982.5) |
U.S. State Tax Authority | |||
Income Tax Contingency [Line Items] | |||
U.S. State Current | 1.9 | 26.5 | 7.7 |
U.S. State Deferred | 2.6 | 20.3 | (10.8) |
Income tax provision (benefit), U.S. State | 4.5 | 46.8 | (3.1) |
Non-U.S. state tax authority | |||
Income Tax Contingency [Line Items] | |||
Non-U.S. Current | 530.8 | 618.7 | (91.3) |
Non-U.S. Deferred | (683.1) | (309.9) | 869.2 |
Income tax provision (benefit), Non-U.S. | (152.3) | 308.8 | 777.9 |
Other Foreign Operations | |||
Earnings (loss) before income taxes and noncontrolling interest: | |||
Earnings before income taxes and noncontrolling interest, foreign | $ 1,154.4 | $ 2,018.4 | $ 1,318.1 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Employee benefits | $ 148.7 | $ 129.6 |
Litigation reserves | 32.2 | 20.5 |
Accounts receivable allowances | 413.7 | 446.2 |
Inventory | 143.8 | 159.3 |
Tax credit and loss carry-forwards | 758.2 | 760.3 |
Operating lease assets | 51.3 | 56.2 |
Interest expense | 114.8 | 94.8 |
Intangible assets | 167.7 | 149.3 |
Other | 326.1 | 209.3 |
Total deferred tax assets, gross | 2,156.5 | 2,025.5 |
Less: Valuation allowance | (421.4) | (387) |
Total deferred tax assets | 1,735.1 | 1,638.5 |
Deferred tax liabilities: | ||
Plant and equipment | 54 | 56.6 |
Operating lease liabilities | 51.3 | 56.2 |
Intangible assets and goodwill | 2,506.2 | 2,880.3 |
Other | 166.4 | 151.5 |
Total deferred tax liabilities | 2,777.9 | 3,144.6 |
Deferred tax liabilities, net | $ (1,042.8) | $ (1,506.1) |
Income Taxes (Statutory Tax Rat
Income Taxes (Statutory Tax Rate to Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Statutory tax rate | 21% | 21% | 21% |
Expiration of attributes | 1.50% | 9.80% | 0% |
Goodwill impairment | 60.80% | 6.50% | 0% |
Deferred tax impact of internal restructuring | (74.00%) | 0% | 0% |
Incremental U.S. tax on foreign earnings | 69.40% | 2% | 36.90% |
Impact of the Combination and divestitures | 11.20% | (6.70%) | (109.70%) |
Effective tax rate | 73% | 26.10% | (91.00%) |
United States | |||
Income Tax Contingency [Line Items] | |||
Clean energy and research credits | (5.20%) | 0% | 9.80% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (58.80%) | (3.60%) | 31.40% |
State income taxes and credits | (3.90%) | 1.30% | (0.60%) |
Valuation allowance | 10.90% | (13.60%) | (8.40%) |
Tax settlements and resolution of certain tax positions | 14.20% | 1% | 0.90% |
Other Foreign Operations | |||
Income Tax Contingency [Line Items] | |||
Other U.S. items | 19.50% | 1.50% | (4.20%) |
Deferred tax impact of tax law changes | (1.00%) | 5.40% | 7% |
Withholding taxes | 7.40% | 1.50% | (1.30%) |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit — beginning of year | $ 296.7 | $ 322.9 | $ 391.1 |
Additions for current year tax positions | 0 | 8.2 | 0 |
Additions for prior year tax positions | 3 | 1 | 0 |
Reductions for prior year tax positions | (4.6) | (5.8) | (9.1) |
Settlements | (2.1) | (0.4) | (47.3) |
Reductions due to expirations of statute of limitations | (13) | (1.9) | (7) |
Reduction due to acquisition | 0 | (27.3) | (4.8) |
Impact of foreign currency translation | (7.2) | 0 | 0 |
Unrecognized tax benefit — end of year | $ 272.8 | $ 296.7 | $ 322.9 |
Share-Based Incentive Plan (Nar
Share-Based Incentive Plan (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Nov. 16, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares exercised | 26,457 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,159,333 | 4,449,642 | 5,576,490 | 6,711,731 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value | $ 0.3 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | 0.6 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 0.6 | ||||
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 | 14,104,207 | ||||
Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of restricted stock awards, granted | 20,402,621 | ||||
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 | $ 181 | ||||
Weighted-average period over which total unrecognized compensation expense expected to be recognized (years) | 1 year 6 months | ||||
Intrinsic value of stock-based awards exercised and restricted stock units converted | $ 169.2 | $ 51.8 | |||
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 | 3 years 8 months 12 days | ||||
Average remaining contractual term for options vested and expected to vest, in years | 3 years 8 months 12 days | ||||
Average remaining contractual term for options exercisable, in years | 3 years 6 months | ||||
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 | ||||
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 | ||||
Not subject to market conditions | Performance Shares | Vest after three years | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of restricted stock awards, granted | 299,207 | ||||
Subject to Market Conditions | 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 | 5,999,207 |
Share-Based Incentive Plan (Sto
Share-Based Incentive Plan (Stock Awards) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of shares under stock awards, outstanding at beginning of period | 4,449,642 | 5,576,490 | 6,711,731 |
Weightedaverage exercise price per share, outstanding at beginning of period | $ 38.53 | $ 37.19 | $ 35.36 |
Number of shares under stock awards, granted | 283,361 | ||
Weighted average exercise price per share, granted | $ 7.68 | ||
Number of shares under stock awards, exercised | (26,457) | ||
Weighted average exercise price per share, exercised | $ 5.65 | ||
Number of shares under stock awards, forfeited | (547,213) | (1,126,848) | (1,135,241) |
Weighted average exercise price per share, forfeited | $ 32.63 | $ 31.91 | $ 26.39 |
Number of shares under stock awards, outstanding at end of period | 4,159,333 | 4,449,642 | 5,576,490 |
Weighted average exercise price per share, outstanding at end of period | $ 37.41 | $ 38.53 | $ 37.19 |
Number of shares under stock awards, vested and expected to vest at period end | 4,141,672 | ||
Weighted average exercise price per share, vested and expected to vest at period end | $ 37.53 | ||
Number of shares under stock awards, exercisable at period end | 4,014,981 | ||
Weighted average exercise price per share, exercisable at period end | $ 38.42 |
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, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of restricted stock awards, nonvested beginning balance | shares | 27,271,926 |
Weighted average grant-date fair value per share, nonvested beginning balance | $ / shares | $ 11.81 |
Number of restricted stock awards, granted | shares | 20,402,621 |
Weighted average grant-date fair value per share, granted | $ / shares | $ 11.16 |
Number of restricted stock awards, released | shares | (13,758,000) |
Weighted average grant-date fair value per share, released | $ / shares | $ 12.30 |
Number of restricted stock awards, forfeited | shares | (2,819,764) |
Weighted average grant-date fair value per share, forfeited | $ / shares | $ 11.54 |
Number of restricted stock awards, nonvested ending balance | shares | 31,096,783 |
Weighted average grant-date fair value per share, nonvested ending balance | $ / shares | $ 11.20 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Unrecognized net actuarial losses exceed higher of market value of plan assets or the projected benefit obligation at the beginning of the year | 10% | ||
Accumulated benefit obligation | $ 1,360 | $ 1,310 | |
Defined benefit plan, ultimate health care cost trend rate | 6.90% | ||
Defined benefit plan, ultimate health care cost trend rate, projected | 4% | ||
Total employer contributions | $ 129.3 | $ 111.5 | $ 107.4 |
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 | 8.60% | ||
Defined benefit plan, ultimate health care cost trend rate, projected | 4% | ||
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% | ||
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% |
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, 2023 | Dec. 31, 2022 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized actuarial net gain | $ (268.1) | $ (293.6) |
Unrecognized prior service cost (credit) | 19.7 | 4 |
Total | (248.4) | (289.6) |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized actuarial net gain | (43.4) | (22) |
Unrecognized prior service cost (credit) | (3) | (3.7) |
Total | $ (46.4) | $ (25.7) |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net change | $ (18.7) | $ 279.1 | $ 73.9 |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Unrecognized actuarial loss (gain) | 8.3 | ||
Amortization of actuarial gain | 20.5 | ||
Unrecognized prior service cost | (16.3) | ||
Amortization of prior service (credit) cost | (1) | ||
Impact of foreign currency translation | (2.9) | ||
Net change | 41.2 | ||
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Unrecognized actuarial loss (gain) | (22.8) | ||
Amortization of actuarial gain | 1.4 | ||
Unrecognized prior service cost | 0 | ||
Amortization of prior service (credit) cost | 0.7 | ||
Impact of foreign currency translation | 0 | ||
Net change | $ (20.7) |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 3.4 | ||
Interest cost | 2.6 | ||
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 | 6.2 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement Of Income Or Comprehensive Income, Extensible List Not Disclosed, Flag | Interest cost | Interest cost | |
Other Pension, Postretirement and Supplemental Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 2.1 | $ 3.4 | |
Interest cost | 6.9 | 3.7 | |
Expected return on plan assets | 0 | 0 | |
Plan curtailment, settlement and termination | 0 | (3.9) | |
Amortization of prior service costs included in SG&A | (0.7) | (0.6) | |
Recognized net actuarial losses | (1.4) | 0.3 | |
Net periodic benefit cost | 6.9 | 2.9 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 26.6 | 32.6 | 38.6 |
Interest cost | 63.6 | 36.8 | 31.6 |
Expected return on plan assets | (62.6) | (64.6) | (66.1) |
Plan curtailment, settlement and termination | (3.8) | 2.3 | (16.5) |
Amortization of prior service costs included in SG&A | 2.1 | 0.9 | 0.9 |
Recognized net actuarial losses | (18.3) | (0.2) | 1.3 |
Net periodic benefit cost | 7.6 | 7.8 | $ (10.2) |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2.1 | 3.4 | |
Interest cost | $ 6.9 | $ 3.7 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Projected benefit obligation, beginning of year | |||
Service cost | $ 3.4 | ||
Interest cost | 2.6 | ||
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | $ 1,067.1 | ||
Fair value of plan assets, end of year | 1,109.4 | $ 1,067.1 | |
Pension Benefits | |||
Projected benefit obligation, beginning of year | |||
Projected benefit obligation, beginning of year | 1,379 | 1,946.6 | |
Service cost | 26.6 | 32.6 | 38.6 |
Interest cost | 63.6 | 36.8 | 31.6 |
Participant contributions | 0.5 | 3.3 | |
(Divestitures) acquisitions | (8.8) | 2.8 | |
Plan settlements and terminations | 8.6 | (82) | |
Actuarial losses (gains) | 40.8 | (439.4) | |
Benefits paid | (74) | (54.1) | |
Impact of foreign currency translation | 7.3 | (67.6) | |
Projected benefit obligation, end of year | 1,443.6 | 1,379 | 1,946.6 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 1,067.1 | 1,366.4 | |
Actual return on plan assets | 95.2 | (138.1) | |
Company contributions | 41.7 | 25.6 | |
Participant contributions | 0.5 | 3.3 | |
Divestitures | (12.1) | 0 | |
Plan settlements | (7.1) | (85.9) | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 74 | 54.1 | |
Impact of foreign currency translation | (1.9) | (50.1) | |
Fair value of plan assets, end of year | 1,109.4 | 1,067.1 | 1,366.4 |
Funded status of plans | (334.2) | (311.9) | |
Other Postretirement Benefits | |||
Projected benefit obligation, beginning of year | |||
Projected benefit obligation, beginning of year | 137.5 | 188.4 | |
Service cost | 2.1 | 3.4 | |
Interest cost | 6.9 | 3.7 | |
Participant contributions | 4.1 | 4.5 | |
(Divestitures) acquisitions | 0 | 0 | |
Plan settlements and terminations | 0 | (4.5) | |
Actuarial losses (gains) | (22.8) | (43.3) | |
Benefits paid | (15.2) | (14.7) | |
Impact of foreign currency translation | 0 | 0 | |
Projected benefit obligation, end of year | 112.6 | 137.5 | 188.4 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 11.1 | 10.2 | |
Participant contributions | 4.1 | 4.5 | |
Divestitures | 0 | 0 | |
Plan settlements | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 15.2 | 14.7 | |
Impact of foreign currency translation | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | $ 0 |
Funded status of plans | $ (112.6) | $ (137.5) |
Employee Benefit Plans (Net Acc
Employee Benefit Plans (Net Accrued Benefit Costs Classification on Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Noncurrent assets | $ 89.3 | $ 118.3 |
Current liabilities | (20) | (14.6) |
Noncurrent liabilities | (403.5) | (415.6) |
Net accrued benefit costs | (334.2) | (311.9) |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (13.8) | (15.4) |
Noncurrent liabilities | (98.8) | (122.1) |
Net accrued benefit costs | $ (112.6) | $ (137.5) |
Employee Benefit Plans (Plans w
Employee Benefit Plans (Plans with PBO in Excess of Plan Assets) (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 1,058.1 | $ 1,026.5 |
Accumulated benefit obligation | 1,023.5 | 999.3 |
Fair value of plan assets | $ 642.4 | $ 604.9 |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Values of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 1,109.4 | $ 1,067.1 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 17.4 | 35.1 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 431.9 | 396.3 |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 457.5 | 453.1 |
Assets held by insurance companies and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 202.6 | 182.6 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 776.3 | 335.6 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 17.4 | 34.2 |
Level 1 | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 401.6 | 42.9 |
Level 1 | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 175.9 | 181.6 |
Level 1 | Assets held by insurance companies and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 181.4 | 76.9 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 329.1 | 723.7 |
Level 2 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0.9 |
Level 2 | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 30.3 | 353.4 |
Level 2 | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 281.6 | 271.5 |
Level 2 | Assets held by insurance companies and other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 17.2 | 97.9 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4 | 7.8 |
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 | $ 4 | $ 7.8 |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted Average Assumptions) (Details) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2022 | |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 4.50% | 4.80% | ||
Expected return on plan assets | 6.10% | 5% | ||
Rate of compensation increase | 3.70% | 3.70% | ||
Discount rate | 4.80% | 2.30% | 1.90% | |
Expected return on plan assets | 6.10% | 5% | 5.10% | |
Rate of compensation increase | 3.70% | 3.10% | 2.90% | |
Other Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 5% | 5.40% | ||
Expected return on plan assets | 0% | 0% | ||
Rate of compensation increase | 0% | 0% | ||
Discount rate | 5.40% | 2.50% | 1.90% | |
Expected return on plan assets | 0% | 0% | 0% | |
Rate of compensation increase | 0% | 0% | 0% |
Employee Benefit Plans (Estimat
Employee Benefit Plans (Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2019 | $ 100.6 |
2020 | 99.1 |
2021 | 97.5 |
2022 | 105.2 |
2023 | 100.8 |
Thereafter | 521.4 |
Total | 1,024.6 |
Other Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2019 | 13.8 |
2020 | 13.8 |
2021 | 13.7 |
2022 | 13.1 |
2023 | 12.4 |
Thereafter | 50.5 |
Total | $ 117.3 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Information to Total Consolidated Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 15,388.4 | $ 16,218.1 | $ 17,813.6 | |
Segment Profitability | 766.2 | 1,614.9 | (34) | |
Intangible asset amortization expense | (2,317.1) | (2,504.6) | (2,702.2) | |
Impairment of goodwill | (581) | (117) | 0 | |
Acquired IPR&D | (105.5) | (36.4) | (70.1) | |
Litigation settlements & other contingencies | $ (111.6) | (4.4) | (329.2) | |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | OTC Business | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of goodwill | $ (580.1) | $ (580.1) | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 15,388.4 | 16,218.1 | ||
Segment Profitability | 7,128.1 | 8,263.2 | 8,705 | |
Segment Reconciling | ||||
Segment Reporting Information [Line Items] | ||||
Intangible asset amortization expense | (2,317.1) | (2,504.6) | (2,702.2) | |
Intangible asset disposal & impairment charges | (32) | (173.5) | (102.8) | |
Globally managed research and development costs | (805.2) | (662.2) | (681) | |
Litigation settlements & other contingencies | (111.6) | (4.4) | (329.2) | |
Transaction related and other special items | (774.4) | (1,026.9) | (2,832.2) | |
Corporate (Other) | ||||
Segment Reporting Information [Line Items] | ||||
Corporate and other unallocated | (1,636) | (2,123.3) | (2,021.5) | |
Developed Markets | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of goodwill | (544) | |||
Developed Markets | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 9,251.9 | 9,768.9 | 10,428.7 | |
Segment Profitability | 4,086.5 | 4,878.1 | 5,143.1 | |
Greater China | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of goodwill | 0 | |||
Greater China | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,160.4 | 2,201.2 | 2,212.8 | |
Segment Profitability | 1,426.8 | 1,512.5 | 1,397.1 | |
JANZ | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of goodwill | (30) | |||
JANZ | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,424.5 | 1,632.4 | 2,027.4 | |
Segment Profitability | 522.9 | 665.5 | 762.4 | |
Emerging Markets | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,551.6 | 2,615.6 | 3,144.7 | |
Segment Profitability | $ 1,091.9 | $ 1,207.1 | $ 1,402.4 |
Segment Information (Third Part
Segment Information (Third Party Net Sales by Major Customers) (Details) - Third party net sales - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
McKesson Corporation | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 10% | 11% | 9% |
AmeriSourceBergen Corporation | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 10% | 10% | 9% |
Cardinal Health Inc | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 5% | 5% | 5% |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 15,388.4 | $ 16,218.1 | $ 17,813.6 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3,551.8 | 3,946.6 | 4,176.4 |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,889 | $ 1,951.3 | $ 1,981.5 |
Commitments (Details)
Commitments (Details) - Pfizer, Inc. - USD ($) $ in Millions | 12 Months Ended | 14 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | |
Other Commitments [Line Items] | ||||
Reimbursement amount, tranche one | $ 380 | |||
Amounts incurred | $ 5.5 | $ 54.5 | $ 30.4 | $ 143.5 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
2020 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected total pre-tax charges for restructuring | $ 125.2 | $ 86.5 | $ 892.2 | |
2020 Restructuring Plan | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected total pre-tax charges for restructuring | $ 1,400 | |||
Non-cash charges mainly related to accelerated depreciation and asset impairment charges | 450 | |||
Approximate expected severance and employee benefit expense | $ 950 | 950 | ||
Employee Severance | 2020 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected total pre-tax charges for restructuring | 17.6 | 38.2 | 396.1 | |
Other Restructuring | 2020 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected total pre-tax charges for restructuring | 107.6 | 48.3 | 496.1 | |
Developed Markets | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected total pre-tax charges for restructuring | 80.3 | 74.6 | 623.8 | |
JANZ | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected total pre-tax charges for restructuring | 29.5 | 0.9 | 138.1 | |
Greater China | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected total pre-tax charges for restructuring | $ 0.4 | $ 2.5 | $ 5.8 |
Restructuring (2020 Restructuri
Restructuring (2020 Restructuring Plan) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Incurred Cost Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | true | |||
Corporate (Other) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 1.1 | $ 0.3 | $ 30.4 | |
Emerging Markets | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 13.9 | 8.2 | 94.1 | |
Greater China | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 0.4 | 2.5 | 5.8 | |
JANZ | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 29.5 | 0.9 | 138.1 | |
Developed Markets | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 80.3 | 74.6 | 623.8 | |
2020 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning Balance | 157.5 | 296.7 | 267.4 | |
Charges | 125.2 | 86.5 | 892.2 | |
Reimbursable restructuring charges | 26.4 | |||
Cash payment | (88.1) | (185.4) | (537.2) | |
Utilization | (103.2) | (34.9) | (345) | |
Foreign currency translation | 0.8 | (5.4) | (7.1) | |
Restructuring Reserve, Ending Balance | $ 92.2 | 92.2 | 157.5 | 296.7 |
2020 Restructuring Plan | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 1,400 | |||
2020 Restructuring Plan | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning Balance | 155.6 | 292.6 | 262.6 | |
Charges | 17.6 | 38.2 | 396.1 | |
Reimbursable restructuring charges | 26.4 | |||
Cash payment | (77.8) | (170.1) | (385.5) | |
Utilization | (4) | 0 | 0 | |
Foreign currency translation | 0.8 | (5.1) | (7) | |
Restructuring Reserve, Ending Balance | 92.2 | 92.2 | 155.6 | 292.6 |
2020 Restructuring Plan | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning Balance | 1.9 | 4.1 | 4.8 | |
Charges | 107.6 | 48.3 | 496.1 | |
Reimbursable restructuring charges | 0 | |||
Cash payment | (10.3) | (15.3) | (151.7) | |
Utilization | (99.2) | (34.9) | (345) | |
Foreign currency translation | 0 | (0.3) | (0.1) | |
Restructuring Reserve, Ending Balance | $ 0 | 0 | $ 1.9 | $ 4.1 |
2020 Restructuring Plan | Plant Divestitures | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Utilization | $ 71.6 |
Collaboration and Licensing A_2
Collaboration and Licensing Agreements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Contingent consideration liability | $ 215.1 | $ 375 | $ 199.7 | |
Proceeds from sale of assets and subsidiaries | 364.1 | 1,950 | $ 96.7 | |
Collaborative Arrangement | Mapi Pharma Ltd. | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Acquired IPR&D | 75 | |||
Theravance | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Upfront payments | 18.5 | |||
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Theravance | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Research and development | 50 | |||
Maximum | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Development and sales milestone payments | 415 | |||
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 | 89 | |||
Respiratory delivery platform | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Contingent consideration liability | $ 177.6 | $ 132 |
Litigation (Narrative) (Details
Litigation (Narrative) (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Aug. 30, 2021 | May 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 | Dec. 31, 2023 state | Dec. 31, 2023 EUR (€) | Sep. 30, 2021 entity healthBoard | |
Loss Contingencies [Line Items] | |||||||
Number of cases | 1,000 | ||||||
Scottish Health Boards | healthBoard | 14 | ||||||
NHS Entities | entity | 32 | ||||||
Ocular AS | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought in lawsuit | 155 million | ||||||
Amount awarded to other party | $ 21.8 | ||||||
Product Liability | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency accrual | $ 64.9 | ||||||
Other Foreign Operations | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency accrual | 6.6 | ||||||
Intellectual Property | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency accrual | 5.1 | ||||||
MDL | |||||||
Loss Contingencies [Line Items] | |||||||
Number of states | 44 | 44 | |||||
Anticompetitive Conduct with Generic Drugs | |||||||
Loss Contingencies [Line Items] | |||||||
Number of states | 45 | ||||||
Amended Anticompetitive Conduct with Generic Drugs | |||||||
Loss Contingencies [Line Items] | |||||||
Number of states | 40 | ||||||
EpiPen Auto-Injector Litigation | Other current liabilities | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation accrual | 5.5 | ||||||
Amended Multi District Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of states | 34 | ||||||
Citalopram Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation accrual | € | € 11.5 | ||||||
Opiod Civil Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency accrual | $ 77.5 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 114.7 | $ 154.5 | $ 159.9 |
Additions Charged to Costs and Expenses | 26.6 | 21.5 | 16 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (22.5) | (61.3) | (21.4) |
Ending balance | 118.8 | 114.7 | 154.5 |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 387 | 780.4 | 443.6 |
Additions Charged to Costs and Expenses | 41 | 42.7 | 82.2 |
Additions Charged to Other Accounts | 16.1 | 0 | 260.8 |
Deductions | (22.7) | (436.1) | (6.2) |
Ending balance | $ 421.4 | $ 387 | $ 780.4 |