|
☑
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Netherlands
|
|
98-1493528
|
(State or other jurisdiction
of incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
|
|
|
|
|
Ordinary shares, nominal value €0.01
|
|
MYL
|
|
The NASDAQ Stock Market
|
|
|
||
|
|
Page
|
|
PART I — FINANCIAL INFORMATION
|
|
ITEM 1.
|
Condensed Consolidated Financial Statements (unaudited)
|
|
|
||
|
||
|
||
|
||
|
||
|
|
|
|
||
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|
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ITEM 2.
|
||
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ITEM 3.
|
||
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ITEM 4.
|
||
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PART II — OTHER INFORMATION
|
|
ITEM 1.
|
||
|
|
|
ITEM 1A.
|
||
|
|
|
ITEM 6.
|
||
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
2,928.2
|
|
|
$
|
2,827.3
|
|
|
$
|
8,207.0
|
|
|
$
|
8,233.2
|
|
Other revenues
|
33.5
|
|
|
35.1
|
|
|
101.7
|
|
|
122.0
|
|
||||
Total revenues
|
2,961.7
|
|
|
2,862.4
|
|
|
8,308.7
|
|
|
8,355.2
|
|
||||
Cost of sales
|
1,889.3
|
|
|
1,823.2
|
|
|
5,498.5
|
|
|
5,369.2
|
|
||||
Gross profit
|
1,072.4
|
|
|
1,039.2
|
|
|
2,810.2
|
|
|
2,986.0
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Research and development
|
167.9
|
|
|
144.1
|
|
|
488.1
|
|
|
555.7
|
|
||||
Selling, general and administrative
|
632.7
|
|
|
577.3
|
|
|
1,909.2
|
|
|
1,808.1
|
|
||||
Litigation settlements and other contingencies, net
|
(51.9
|
)
|
|
(20.4
|
)
|
|
(30.3
|
)
|
|
(50.6
|
)
|
||||
Total operating expenses
|
748.7
|
|
|
701.0
|
|
|
2,367.0
|
|
|
2,313.2
|
|
||||
Earnings from operations
|
323.7
|
|
|
338.2
|
|
|
443.2
|
|
|
672.8
|
|
||||
Interest expense
|
128.9
|
|
|
136.2
|
|
|
391.3
|
|
|
407.1
|
|
||||
Other expense, net
|
9.0
|
|
|
9.8
|
|
|
32.7
|
|
|
44.3
|
|
||||
Earnings before income taxes
|
185.8
|
|
|
192.2
|
|
|
19.2
|
|
|
221.4
|
|
||||
Income tax (benefit) provision
|
(4.0
|
)
|
|
15.5
|
|
|
22.9
|
|
|
(79.9
|
)
|
||||
Net earnings (loss)
|
$
|
189.8
|
|
|
$
|
176.7
|
|
|
$
|
(3.7
|
)
|
|
$
|
301.3
|
|
Earnings (Loss) per ordinary share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.37
|
|
|
$
|
0.34
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.59
|
|
Diluted
|
$
|
0.37
|
|
|
$
|
0.34
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.58
|
|
Weighted average ordinary shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
516.0
|
|
|
514.5
|
|
|
515.5
|
|
|
514.4
|
|
||||
Diluted
|
516.2
|
|
|
516.5
|
|
|
515.5
|
|
|
516.5
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net earnings (loss)
|
$
|
189.8
|
|
|
$
|
176.7
|
|
|
$
|
(3.7
|
)
|
|
$
|
301.3
|
|
Other comprehensive loss, before tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
(748.9
|
)
|
|
(270.8
|
)
|
|
(890.8
|
)
|
|
(1,097.6
|
)
|
||||
Change in unrecognized loss and prior service cost related to defined benefit plans
|
(0.7
|
)
|
|
(6.8
|
)
|
|
(0.5
|
)
|
|
(8.3
|
)
|
||||
Net unrecognized (loss) gain on derivatives in cash flow hedging relationships
|
(10.6
|
)
|
|
(51.9
|
)
|
|
24.8
|
|
|
(146.1
|
)
|
||||
Net unrecognized gain on derivatives in net investment hedging relationships
|
111.8
|
|
|
18.8
|
|
|
133.6
|
|
|
78.7
|
|
||||
Net unrealized gain (loss) on marketable securities
|
0.1
|
|
|
—
|
|
|
0.7
|
|
|
(0.1
|
)
|
||||
Other comprehensive loss, before tax
|
(648.3
|
)
|
|
(310.7
|
)
|
|
(732.2
|
)
|
|
(1,173.4
|
)
|
||||
Income tax provision (benefit)
|
1.2
|
|
|
(19.1
|
)
|
|
14.1
|
|
|
(51.2
|
)
|
||||
Other comprehensive loss, net of tax
|
(649.5
|
)
|
|
(291.6
|
)
|
|
(746.3
|
)
|
|
(1,122.2
|
)
|
||||
Comprehensive loss
|
$
|
(459.7
|
)
|
|
$
|
(114.9
|
)
|
|
$
|
(750.0
|
)
|
|
$
|
(820.9
|
)
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|||||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
358.9
|
|
|
$
|
388.1
|
|
Accounts receivable, net
|
2,948.0
|
|
|
2,881.0
|
|
||
Inventories
|
2,763.5
|
|
|
2,580.2
|
|
||
Prepaid expenses and other current assets
|
574.7
|
|
|
518.4
|
|
||
Total current assets
|
6,645.1
|
|
|
6,367.7
|
|
||
Property, plant and equipment, net
|
2,123.9
|
|
|
2,170.2
|
|
||
Intangible assets, net
|
11,824.3
|
|
|
13,664.6
|
|
||
Goodwill
|
9,387.1
|
|
|
9,747.8
|
|
||
Deferred income tax benefit
|
628.1
|
|
|
572.2
|
|
||
Other assets
|
445.0
|
|
|
212.4
|
|
||
Total assets
|
$
|
31,053.5
|
|
|
$
|
32,734.9
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|||||||
Liabilities
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,511.3
|
|
|
$
|
1,617.0
|
|
Short-term borrowings
|
—
|
|
|
1.9
|
|
||
Income taxes payable
|
153.2
|
|
|
121.5
|
|
||
Current portion of long-term debt and other long-term obligations
|
605.3
|
|
|
699.8
|
|
||
Other current liabilities
|
2,375.2
|
|
|
2,147.6
|
|
||
Total current liabilities
|
4,645.0
|
|
|
4,587.8
|
|
||
Long-term debt
|
12,460.5
|
|
|
13,161.2
|
|
||
Deferred income tax liability
|
1,557.0
|
|
|
1,722.0
|
|
||
Other long-term obligations
|
927.6
|
|
|
1,096.8
|
|
||
Total liabilities
|
19,590.1
|
|
|
20,567.8
|
|
||
Equity
|
|
|
|
||||
Mylan N.V. shareholders’ equity
|
|
|
|
||||
Ordinary shares — nominal value €0.01 per ordinary share
|
|
|
|
||||
Shares authorized: 1,200,000,000
|
|
|
|
||||
Shares issued: 540,739,501 and 539,289,665 as of September 30, 2019 and December 31, 2018
|
6.1
|
|
|
6.0
|
|
||
Additional paid-in capital
|
8,637.6
|
|
|
8,591.4
|
|
||
Retained earnings
|
6,010.6
|
|
|
6,010.7
|
|
||
Accumulated other comprehensive loss
|
(2,191.2
|
)
|
|
(1,441.3
|
)
|
||
|
12,463.1
|
|
|
13,166.8
|
|
||
Less: Treasury stock — at cost
|
|
|
|
||||
Ordinary shares: 24,598,074 and 23,490,867 as of September 30, 2019 and December 31, 2018
|
999.7
|
|
|
999.7
|
|
||
Total equity
|
11,463.4
|
|
|
12,167.1
|
|
||
Total liabilities and equity
|
$
|
31,053.5
|
|
|
$
|
32,734.9
|
|
|
|
|
|
|
Additional Paid-In Capital
|
|
Retained
Earnings |
|
|
|
|
|
Accumulated Other Comprehensive Loss
|
|
Total
Equity |
||||||||||||||
|
Ordinary Shares
|
|
|
|
Treasury Stock
|
|
|
||||||||||||||||||||||
|
Shares
|
|
Cost
|
|
|
|
Shares
|
|
Cost
|
|
|
||||||||||||||||||
Balance at June 30, 2019
|
540,459,996
|
|
|
$
|
6.1
|
|
|
$
|
8,617.3
|
|
|
$
|
5,820.8
|
|
|
24,598,074
|
|
|
$
|
(999.7
|
)
|
|
$
|
(1,541.7
|
)
|
|
$
|
11,902.8
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
189.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
189.8
|
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(649.5
|
)
|
|
(649.5
|
)
|
||||||
Issuance of restricted stock and stock options exercised, net
|
279,505
|
|
|
—
|
|
|
4.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.2
|
|
||||||
Taxes related to the net share settlement of equity awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
16.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.1
|
|
||||||
Balance at September 30, 2019
|
540,739,501
|
|
|
$
|
6.1
|
|
|
$
|
8,637.6
|
|
|
$
|
6,010.6
|
|
|
24,598,074
|
|
|
$
|
(999.7
|
)
|
|
$
|
(2,191.2
|
)
|
|
$
|
11,463.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
Additional Paid-In Capital
|
|
Retained
Earnings |
|
|
|
|
|
Accumulated Other Comprehensive Loss
|
|
Total
Equity |
||||||||||||||
|
Ordinary Shares
|
|
|
|
Treasury Stock
|
|
|
||||||||||||||||||||||
|
Shares
|
|
Cost
|
|
|
|
Shares
|
|
Cost
|
|
|
||||||||||||||||||
Balance at December 31, 2018
|
539,289,665
|
|
|
$
|
6.0
|
|
|
$
|
8,591.4
|
|
|
$
|
6,010.7
|
|
|
23,490,867
|
|
|
$
|
(999.7
|
)
|
|
$
|
(1,441.3
|
)
|
|
$
|
12,167.1
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.7
|
)
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(746.3
|
)
|
|
(746.3
|
)
|
||||||
Issuance of restricted stock and stock options exercised, net
|
1,449,836
|
|
|
0.1
|
|
|
8.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.2
|
|
||||||
Taxes related to the net share settlement of equity awards
|
—
|
|
|
—
|
|
|
(12.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.8
|
)
|
||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
50.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50.9
|
|
||||||
Cancellation of restricted stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,107,207
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Cumulative effect of the adoption of new accounting standards
|
—
|
|
|
—
|
|
|
—
|
|
|
3.6
|
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
|
—
|
|
||||||
Balance at September 30, 2019
|
540,739,501
|
|
|
$
|
6.1
|
|
|
$
|
8,637.6
|
|
|
$
|
6,010.6
|
|
|
24,598,074
|
|
|
$
|
(999.7
|
)
|
|
$
|
(2,191.2
|
)
|
|
$
|
11,463.4
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net (loss) earnings
|
$
|
(3.7
|
)
|
|
$
|
301.3
|
|
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
1,471.6
|
|
|
1,501.0
|
|
||
Share-based compensation expense (income)
|
50.9
|
|
|
(8.6
|
)
|
||
Deferred income tax benefit
|
(158.0
|
)
|
|
(149.9
|
)
|
||
Loss from equity method investments
|
43.6
|
|
|
58.6
|
|
||
Other non-cash items
|
124.2
|
|
|
238.3
|
|
||
Litigation settlements and other contingencies, net
|
13.5
|
|
|
(40.9
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(20.7
|
)
|
|
262.2
|
|
||
Inventories
|
(477.6
|
)
|
|
(425.5
|
)
|
||
Accounts payable
|
(83.2
|
)
|
|
(14.1
|
)
|
||
Income taxes
|
(60.2
|
)
|
|
(97.4
|
)
|
||
Other operating assets and liabilities, net
|
216.6
|
|
|
80.6
|
|
||
Net cash provided by operating activities
|
1,117.0
|
|
|
1,705.6
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Cash paid for acquisitions, net
|
(148.7
|
)
|
|
(307.1
|
)
|
||
Capital expenditures
|
(139.6
|
)
|
|
(137.4
|
)
|
||
Purchase of available for sale securities and other investments
|
(19.5
|
)
|
|
(49.4
|
)
|
||
Proceeds from the sale of marketable securities
|
19.1
|
|
|
72.1
|
|
||
Payments for product rights and other, net
|
(146.5
|
)
|
|
(613.0
|
)
|
||
Proceeds from the sale of assets
|
24.3
|
|
|
—
|
|
||
Net cash used in investing activities
|
(410.9
|
)
|
|
(1,034.8
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
6.4
|
|
|
2,577.7
|
|
||
Payments of long-term debt
|
(657.1
|
)
|
|
(2,598.6
|
)
|
||
Purchase of ordinary shares
|
—
|
|
|
(432.0
|
)
|
||
Change in short-term borrowings, net
|
(1.9
|
)
|
|
(45.9
|
)
|
||
Taxes paid related to net share settlement of equity awards
|
(8.4
|
)
|
|
(10.1
|
)
|
||
Contingent consideration payments
|
(47.8
|
)
|
|
(0.2
|
)
|
||
Payments of financing fees
|
(2.7
|
)
|
|
(20.8
|
)
|
||
Proceeds from exercise of stock options
|
8.0
|
|
|
15.6
|
|
||
Other items, net
|
(1.1
|
)
|
|
(0.4
|
)
|
||
Net cash used in financing activities
|
(704.6
|
)
|
|
(514.7
|
)
|
||
Effect on cash of changes in exchange rates
|
(16.4
|
)
|
|
(22.9
|
)
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(14.9
|
)
|
|
133.2
|
|
||
Cash, cash equivalents and restricted cash — beginning of period
|
389.3
|
|
|
369.9
|
|
||
Cash, cash equivalents and restricted cash — end of period
|
$
|
374.4
|
|
|
$
|
503.1
|
|
2.
|
Revenue Recognition and Accounts Receivable
|
(In millions)
|
North America
|
|
Europe
|
|
Rest of World
|
|
Total
|
||||||||
Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Central Nervous System & Anesthesia
|
$
|
155.5
|
|
|
$
|
214.3
|
|
|
$
|
87.0
|
|
|
$
|
456.8
|
|
Infectious Disease
|
28.7
|
|
|
179.0
|
|
|
270.3
|
|
|
478.0
|
|
||||
Respiratory & Allergy
|
308.5
|
|
|
98.2
|
|
|
66.6
|
|
|
473.3
|
|
||||
Cardiovascular
|
63.3
|
|
|
126.2
|
|
|
41.3
|
|
|
230.8
|
|
||||
Gastroenterology
|
30.0
|
|
|
147.9
|
|
|
95.9
|
|
|
273.8
|
|
||||
Diabetes & Metabolism
|
91.3
|
|
|
68.9
|
|
|
34.2
|
|
|
194.4
|
|
||||
Dermatology
|
38.2
|
|
|
75.8
|
|
|
29.3
|
|
|
143.3
|
|
||||
Women’s Healthcare
|
100.4
|
|
|
60.5
|
|
|
26.1
|
|
|
187.0
|
|
||||
Oncology
|
196.1
|
|
|
22.0
|
|
|
42.8
|
|
|
260.9
|
|
||||
Immunology
|
12.3
|
|
|
20.3
|
|
|
10.3
|
|
|
42.9
|
|
||||
Other (1)
|
64.3
|
|
|
32.8
|
|
|
89.9
|
|
|
187.0
|
|
||||
Total
|
$
|
1,088.6
|
|
|
$
|
1,045.9
|
|
|
$
|
793.7
|
|
|
$
|
2,928.2
|
|
|
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Central Nervous System & Anesthesia
|
$
|
426.4
|
|
|
$
|
619.3
|
|
|
$
|
243.9
|
|
|
$
|
1,289.6
|
|
Infectious Disease
|
77.3
|
|
|
299.7
|
|
|
783.0
|
|
|
1,160.0
|
|
||||
Respiratory & Allergy
|
805.3
|
|
|
327.9
|
|
|
166.5
|
|
|
1,299.7
|
|
||||
Cardiovascular
|
159.1
|
|
|
358.6
|
|
|
116.1
|
|
|
633.8
|
|
||||
Gastroenterology
|
94.9
|
|
|
434.9
|
|
|
276.3
|
|
|
806.1
|
|
||||
Diabetes & Metabolism
|
326.1
|
|
|
208.0
|
|
|
110.4
|
|
|
644.5
|
|
||||
Dermatology
|
77.6
|
|
|
217.7
|
|
|
70.7
|
|
|
366.0
|
|
||||
Women’s Healthcare
|
269.5
|
|
|
165.3
|
|
|
65.4
|
|
|
500.2
|
|
||||
Oncology
|
567.8
|
|
|
59.9
|
|
|
107.0
|
|
|
734.7
|
|
||||
Immunology
|
31.4
|
|
|
41.3
|
|
|
27.6
|
|
|
100.3
|
|
||||
Other (1)
|
199.6
|
|
|
198.1
|
|
|
274.4
|
|
|
672.1
|
|
||||
Total
|
$
|
3,035.0
|
|
|
$
|
2,930.7
|
|
|
$
|
2,241.3
|
|
|
$
|
8,207.0
|
|
(In millions)
|
North America
|
|
Europe
|
|
Rest of World
|
|
Total
|
||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
||||||||
Central Nervous System & Anesthesia
|
$
|
154.7
|
|
|
$
|
219.6
|
|
|
$
|
92.4
|
|
|
$
|
466.7
|
|
Infectious Disease
|
63.1
|
|
|
157.8
|
|
|
223.2
|
|
|
444.1
|
|
||||
Respiratory & Allergy
|
161.8
|
|
|
94.8
|
|
|
47.4
|
|
|
304.0
|
|
||||
Cardiovascular
|
95.9
|
|
|
147.3
|
|
|
40.9
|
|
|
284.1
|
|
||||
Gastroenterology
|
24.5
|
|
|
150.0
|
|
|
91.1
|
|
|
265.6
|
|
||||
Diabetes & Metabolism
|
94.9
|
|
|
73.9
|
|
|
43.8
|
|
|
212.6
|
|
||||
Dermatology
|
86.7
|
|
|
62.8
|
|
|
18.0
|
|
|
167.5
|
|
||||
Women’s Healthcare
|
83.1
|
|
|
61.3
|
|
|
28.1
|
|
|
172.5
|
|
||||
Oncology
|
171.0
|
|
|
18.2
|
|
|
31.9
|
|
|
221.1
|
|
||||
Immunology
|
8.0
|
|
|
2.3
|
|
|
10.0
|
|
|
20.3
|
|
||||
Other (1)
|
68.6
|
|
|
53.3
|
|
|
146.9
|
|
|
268.8
|
|
||||
Total
|
$
|
1,012.3
|
|
|
$
|
1,041.3
|
|
|
$
|
773.7
|
|
|
$
|
2,827.3
|
|
|
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
||||||||
Central Nervous System & Anesthesia
|
$
|
554.2
|
|
|
$
|
665.7
|
|
|
$
|
251.7
|
|
|
$
|
1,471.6
|
|
Infectious Disease
|
172.1
|
|
|
280.5
|
|
|
643.8
|
|
|
1,096.4
|
|
||||
Respiratory & Allergy
|
457.3
|
|
|
351.8
|
|
|
147.7
|
|
|
956.8
|
|
||||
Cardiovascular
|
262.4
|
|
|
443.2
|
|
|
126.6
|
|
|
832.2
|
|
||||
Gastroenterology
|
102.5
|
|
|
448.3
|
|
|
249.3
|
|
|
800.1
|
|
||||
Diabetes & Metabolism
|
318.6
|
|
|
227.9
|
|
|
102.1
|
|
|
648.6
|
|
||||
Dermatology
|
265.7
|
|
|
217.4
|
|
|
70.1
|
|
|
553.2
|
|
||||
Women’s Healthcare
|
261.4
|
|
|
198.1
|
|
|
69.5
|
|
|
529.0
|
|
||||
Oncology
|
382.5
|
|
|
55.4
|
|
|
95.6
|
|
|
533.5
|
|
||||
Immunology
|
36.1
|
|
|
7.3
|
|
|
29.1
|
|
|
72.5
|
|
||||
Other (1)
|
185.6
|
|
|
174.7
|
|
|
379.0
|
|
|
739.3
|
|
||||
Total
|
$
|
2,998.4
|
|
|
$
|
3,070.3
|
|
|
$
|
2,164.5
|
|
|
$
|
8,233.2
|
|
(1)
|
Other consists of numerous therapeutic franchises, none of which individually exceeds 5% of consolidated net sales.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross sales
|
$
|
5,051.5
|
|
|
$
|
4,861.4
|
|
|
$
|
13,841.0
|
|
|
$
|
14,419.0
|
|
Gross to net adjustments:
|
|
|
|
|
|
|
|
||||||||
Chargebacks
|
(913.5
|
)
|
|
(835.7
|
)
|
|
(2,368.8
|
)
|
|
(2,524.2
|
)
|
||||
Rebates, promotional programs and other sales allowances
|
(979.2
|
)
|
|
(1,025.6
|
)
|
|
(2,709.9
|
)
|
|
(3,144.2
|
)
|
||||
Returns
|
(82.3
|
)
|
|
(59.4
|
)
|
|
(203.3
|
)
|
|
(160.5
|
)
|
||||
Governmental rebate programs
|
(148.3
|
)
|
|
(113.4
|
)
|
|
(352.0
|
)
|
|
(356.9
|
)
|
||||
Total gross to net adjustments
|
$
|
(2,123.3
|
)
|
|
$
|
(2,034.1
|
)
|
|
$
|
(5,634.0
|
)
|
|
$
|
(6,185.8
|
)
|
Net sales
|
$
|
2,928.2
|
|
|
$
|
2,827.3
|
|
|
$
|
8,207.0
|
|
|
$
|
8,233.2
|
|
(In millions)
|
September 30,
2019 |
|
December 31,
2018 |
||||
Accounts receivable, net
|
$
|
1,539.4
|
|
|
$
|
1,715.6
|
|
Other current liabilities
|
720.3
|
|
|
626.7
|
|
||
Total
|
$
|
2,259.7
|
|
|
$
|
2,342.3
|
|
(In millions)
|
September 30,
2019 |
|
December 31,
2018 |
||||
Trade receivables, net
|
$
|
2,546.6
|
|
|
$
|
2,416.5
|
|
Other receivables
|
401.4
|
|
|
464.5
|
|
||
Accounts receivable, net
|
$
|
2,948.0
|
|
|
$
|
2,881.0
|
|
3.
|
Recent Accounting Pronouncements
|
Accounting Standard Update
|
Effective Date
|
ASU 2018-18: Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606
|
January 1, 2020
|
ASU 2018-14: Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20) Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans
|
January 1, 2021
|
ASU 2018-13: Fair Value Measurement (Topic 820) Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
|
January 1, 2020
|
4.
|
Acquisitions and Other Transactions
|
5.
|
Share-Based Incentive Plan
|
|
Number of Shares Under Stock Awards
|
|
Weighted Average Exercise Price per Share
|
|||
Outstanding at December 31, 2018
|
6,815,278
|
|
|
$
|
36.61
|
|
Granted
|
764,964
|
|
|
26.72
|
|
|
Exercised
|
(575,950
|
)
|
|
14.37
|
|
|
Forfeited
|
(595,612
|
)
|
|
39.88
|
|
|
Outstanding at September 30, 2019
|
6,408,680
|
|
|
$
|
37.13
|
|
Vested and expected to vest at September 30, 2019
|
6,207,680
|
|
|
$
|
37.18
|
|
Exercisable at September 30, 2019
|
4,826,416
|
|
|
$
|
38.07
|
|
|
Number of Restricted Stock Awards
|
|
Weighted Average Grant-Date Fair Value per Share
|
|||
Nonvested at December 31, 2018
|
6,393,081
|
|
|
$
|
40.75
|
|
Granted
|
2,293,200
|
|
|
27.41
|
|
|
Released
|
(1,432,837
|
)
|
|
43.60
|
|
|
Forfeited
|
(3,102,811
|
)
|
|
38.07
|
|
|
Nonvested at September 30, 2019
|
4,150,633
|
|
|
$
|
34.43
|
|
6.
|
Pensions and Other Postretirement Benefits
|
|
Pension and Other Postretirement Benefits
|
||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service cost
|
$
|
5.3
|
|
|
$
|
5.0
|
|
|
$
|
15.9
|
|
|
$
|
15.1
|
|
Interest cost
|
3.8
|
|
|
3.6
|
|
|
11.5
|
|
|
10.9
|
|
||||
Expected return on plan assets
|
(3.0
|
)
|
|
(3.6
|
)
|
|
(9.1
|
)
|
|
(10.9
|
)
|
||||
Amortization of prior service costs
|
0.3
|
|
|
0.1
|
|
|
0.8
|
|
|
0.3
|
|
||||
Recognized net actuarial (gains) losses
|
(0.2
|
)
|
|
0.1
|
|
|
(0.6
|
)
|
|
0.1
|
|
||||
Net periodic benefit cost
|
$
|
6.2
|
|
|
$
|
5.2
|
|
|
$
|
18.5
|
|
|
$
|
15.5
|
|
7.
|
Balance Sheet Components
|
(In millions)
|
September 30,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
||||||
Cash and cash equivalents
|
$
|
358.9
|
|
|
$
|
388.1
|
|
|
$
|
449.2
|
|
Restricted cash, included in prepaid expenses and other current assets
|
15.5
|
|
|
1.2
|
|
|
53.9
|
|
|||
Cash, cash equivalents and restricted cash
|
$
|
374.4
|
|
|
$
|
389.3
|
|
|
$
|
503.1
|
|
(In millions)
|
September 30,
2019 |
|
December 31,
2018 |
||||
Raw materials
|
$
|
983.3
|
|
|
$
|
955.7
|
|
Work in process
|
430.5
|
|
|
369.9
|
|
||
Finished goods
|
1,349.7
|
|
|
1,254.6
|
|
||
Inventories
|
$
|
2,763.5
|
|
|
$
|
2,580.2
|
|
(In millions)
|
September 30,
2019 |
|
December 31, 2018
|
||||
Prepaid expenses
|
$
|
153.7
|
|
|
$
|
130.6
|
|
Restricted cash
|
15.5
|
|
|
1.2
|
|
||
Available-for-sale fixed income securities
|
26.8
|
|
|
25.0
|
|
||
Fair value of financial instruments
|
58.2
|
|
|
33.8
|
|
||
Equity securities
|
36.7
|
|
|
32.5
|
|
||
Other current assets
|
283.8
|
|
|
295.3
|
|
||
Prepaid expenses and other current assets
|
$
|
574.7
|
|
|
$
|
518.4
|
|
(In millions)
|
September 30,
2019 |
|
December 31, 2018
|
||||
Machinery and equipment
|
$
|
2,465.1
|
|
|
$
|
2,421.2
|
|
Buildings and improvements
|
1,185.1
|
|
|
1,182.3
|
|
||
Construction in progress
|
277.0
|
|
|
239.7
|
|
||
Land and improvements
|
124.1
|
|
|
131.3
|
|
||
Gross property, plant and equipment
|
4,051.3
|
|
|
3,974.5
|
|
||
Accumulated depreciation
|
1,927.4
|
|
|
1,804.3
|
|
||
Property, plant and equipment, net
|
$
|
2,123.9
|
|
|
$
|
2,170.2
|
|
(In millions)
|
September 30,
2019 |
|
December 31, 2018
|
||||
Equity method investments, clean energy investments
|
$
|
106.6
|
|
|
$
|
138.7
|
|
Operating lease right-of-use assets
|
258.9
|
|
|
—
|
|
||
Other long-term assets
|
79.5
|
|
|
73.7
|
|
||
Other assets
|
$
|
445.0
|
|
|
$
|
212.4
|
|
(In millions)
|
September 30,
2019 |
|
December 31,
2018 |
||||
Trade accounts payable
|
$
|
1,083.2
|
|
|
$
|
1,123.2
|
|
Other payables
|
428.1
|
|
|
493.8
|
|
||
Accounts payable
|
$
|
1,511.3
|
|
|
$
|
1,617.0
|
|
(In millions)
|
September 30,
2019 |
|
December 31, 2018
|
||||
Accrued sales allowances
|
$
|
720.3
|
|
|
$
|
626.7
|
|
Legal and professional accruals, including litigation accruals
|
164.6
|
|
|
128.1
|
|
||
Payroll and employee benefit liabilities
|
418.7
|
|
|
399.7
|
|
||
Contingent consideration
|
121.5
|
|
|
158.3
|
|
||
Accrued interest
|
184.6
|
|
|
62.4
|
|
||
Restructuring
|
33.6
|
|
|
62.3
|
|
||
Equity method investments, clean energy investments
|
47.2
|
|
|
45.1
|
|
||
Fair value of financial instruments
|
25.3
|
|
|
29.4
|
|
||
Operating lease liability
|
76.4
|
|
|
—
|
|
||
Other
|
583.0
|
|
|
635.6
|
|
||
Other current liabilities
|
$
|
2,375.2
|
|
|
$
|
2,147.6
|
|
(In millions)
|
September 30,
2019 |
|
December 31, 2018
|
||||
Employee benefit liabilities
|
$
|
383.4
|
|
|
$
|
397.7
|
|
Contingent consideration
|
137.3
|
|
|
197.0
|
|
||
Equity method investments, clean energy investments
|
66.6
|
|
|
100.3
|
|
||
Tax related items, including contingencies
|
75.2
|
|
|
162.1
|
|
||
Operating lease liability
|
181.3
|
|
|
—
|
|
||
Other
|
83.8
|
|
|
239.7
|
|
||
Other long-term obligations
|
$
|
927.6
|
|
|
$
|
1,096.8
|
|
8.
|
Leases
|
|
As of September 30, 2019
|
|
Remaining lease terms
|
1 year to 25 years
|
|
Weighted-average remaining lease term
|
6 years
|
|
Weighted-average discount rate
|
4.0
|
%
|
(In millions)
|
|
||
Year ending December 31,
|
|
||
2019 (excluding the nine months ended September 30, 2019)
|
$
|
18.3
|
|
2020
|
69.6
|
|
|
2021
|
55.4
|
|
|
2022
|
37.5
|
|
|
2023
|
25.6
|
|
|
2024
|
21.7
|
|
|
Thereafter
|
65.0
|
|
|
|
$
|
293.1
|
|
(In millions)
|
|
||
Year ending December 31,
|
|
||
2019
|
$
|
73.7
|
|
2020
|
54.7
|
|
|
2021
|
40.2
|
|
|
2022
|
28.5
|
|
|
2023
|
18.3
|
|
|
Thereafter
|
54.2
|
|
|
|
$
|
269.6
|
|
9.
|
Equity Method Investments
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Total revenues
|
$
|
101.6
|
|
|
$
|
128.6
|
|
|
$
|
274.1
|
|
|
$
|
376.8
|
|
Gross loss
|
(1.1
|
)
|
|
(1.3
|
)
|
|
(3.1
|
)
|
|
(20.0
|
)
|
||||
Operating and non-operating expense
|
5.2
|
|
|
5.9
|
|
|
14.3
|
|
|
16.5
|
|
||||
Net loss
|
$
|
(6.3
|
)
|
|
$
|
(7.2
|
)
|
|
$
|
(17.4
|
)
|
|
$
|
(36.5
|
)
|
10.
|
Earnings (Loss) per Ordinary Share
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
(In millions, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Basic earnings (loss) (numerator):
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss)
|
$
|
189.8
|
|
|
$
|
176.7
|
|
|
$
|
(3.7
|
)
|
|
$
|
301.3
|
|
Shares (denominator):
|
|
|
|
|
|
|
|
||||||||
Weighted average ordinary shares outstanding
|
516.0
|
|
|
514.5
|
|
|
515.5
|
|
|
514.4
|
|
||||
Basic earnings (loss) per ordinary share
|
$
|
0.37
|
|
|
$
|
0.34
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.59
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) (numerator):
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss)
|
$
|
189.8
|
|
|
$
|
176.7
|
|
|
$
|
(3.7
|
)
|
|
$
|
301.3
|
|
Shares (denominator):
|
|
|
|
|
|
|
|
||||||||
Weighted average ordinary shares outstanding
|
516.0
|
|
|
514.5
|
|
|
515.5
|
|
|
514.4
|
|
||||
Share-based awards
|
0.2
|
|
|
2.0
|
|
|
—
|
|
|
2.1
|
|
||||
Total dilutive shares outstanding
|
516.2
|
|
|
516.5
|
|
|
515.5
|
|
|
516.5
|
|
||||
Net earnings (loss) per diluted ordinary share
|
$
|
0.37
|
|
|
$
|
0.34
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.58
|
|
11.
|
Goodwill and Intangible Assets
|
(In millions)
|
North America Segment
|
|
Europe Segment
|
|
Rest of World Segment
|
|
Total
|
||||||||
Balance at December 31, 2018:
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
3,892.9
|
|
|
$
|
4,657.4
|
|
|
$
|
1,582.5
|
|
|
$
|
10,132.8
|
|
Accumulated impairment losses
|
(385.0
|
)
|
|
—
|
|
|
—
|
|
|
(385.0
|
)
|
||||
|
3,507.9
|
|
|
4,657.4
|
|
|
1,582.5
|
|
|
9,747.8
|
|
||||
Reclassifications (1)
|
(165.7
|
)
|
|
25.2
|
|
|
140.5
|
|
|
—
|
|
||||
Foreign currency translation
|
(59.6
|
)
|
|
(283.9
|
)
|
|
(17.2
|
)
|
|
(360.7
|
)
|
||||
|
$
|
3,282.6
|
|
|
$
|
4,398.7
|
|
|
$
|
1,705.8
|
|
|
$
|
9,387.1
|
|
Balance at September 30, 2019:
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
3,667.6
|
|
|
$
|
4,398.7
|
|
|
$
|
1,705.8
|
|
|
$
|
9,772.1
|
|
Accumulated impairment losses
|
(385.0
|
)
|
|
—
|
|
|
—
|
|
|
(385.0
|
)
|
||||
|
$
|
3,282.6
|
|
|
$
|
4,398.7
|
|
|
$
|
1,705.8
|
|
|
$
|
9,387.1
|
|
(1)
|
The reclassification between segments realigns certain prior period foreign currency translation amounts to conform to current year presentation.
|
(In millions)
|
Weighted Average Life (Years)
|
|
Original Cost
|
|
Accumulated Amortization
|
|
Net Book Value
|
||||||
September 30, 2019
|
|
|
|
|
|
|
|
||||||
Product rights, licenses and other (1)
|
15
|
|
$
|
19,726.8
|
|
|
$
|
8,141.4
|
|
|
$
|
11,585.4
|
|
In-process research and development
|
|
|
238.9
|
|
|
—
|
|
|
238.9
|
|
|||
|
|
|
$
|
19,965.7
|
|
|
$
|
8,141.4
|
|
|
$
|
11,824.3
|
|
December 31, 2018
|
|
|
|
|
|
|
|
||||||
Product rights, licenses and other (1)
|
15
|
|
$
|
20,264.1
|
|
|
$
|
7,225.1
|
|
|
$
|
13,039.0
|
|
In-process research and development
|
|
|
625.6
|
|
|
—
|
|
|
625.6
|
|
|||
|
|
|
$
|
20,889.7
|
|
|
$
|
7,225.1
|
|
|
$
|
13,664.6
|
|
(1)
|
Represents amortizable intangible assets. Other intangible assets consists principally of customer lists and contractual rights.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Intangible asset amortization expense
|
$
|
405.6
|
|
|
$
|
412.2
|
|
|
$
|
1,210.3
|
|
|
$
|
1,191.9
|
|
IPR&D intangible asset impairment charges
|
—
|
|
|
15.5
|
|
|
29.5
|
|
|
87.5
|
|
||||
Finite-lived intangible asset impairment charges
|
1.9
|
|
|
—
|
|
|
42.3
|
|
|
—
|
|
||||
Total intangible asset amortization expense (including impairment charges)
|
$
|
407.5
|
|
|
$
|
427.7
|
|
|
$
|
1,282.1
|
|
|
$
|
1,279.4
|
|
12.
|
Financial Instruments and Risk Management
|
|
|
|
|
Notional Amount Designated as a Net Investment Hedge
|
||||||||
(in millions)
|
|
Principal Amount
|
|
September 30,
2019 |
|
December 31,
2018 |
||||||
2.250% Euro Senior Notes due 2024
|
|
€
|
1,000.0
|
|
|
€
|
1,000.0
|
|
|
€
|
1,000.0
|
|
3.125% Euro Senior Notes due 2028
|
|
750.0
|
|
|
750.0
|
|
|
750.0
|
|
|||
1.250% Euro Senior Notes due 2020
|
|
750.0
|
|
|
104.0
|
|
|
104.0
|
|
|||
2.125% Euro Senior Notes due 2025
|
|
500.0
|
|
|
500.0
|
|
|
500.0
|
|
|||
Floating Rate Euro Notes due 2020
|
|
500.0
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
€
|
3,500.0
|
|
|
€
|
2,354.0
|
|
|
€
|
2,354.0
|
|
|
Asset Derivatives
|
||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
(In millions)
|
Balance Sheet Location
|
|
Fair Value
|
|
Balance Sheet Location
|
|
Fair Value
|
||||
Interest rate swaps
|
Prepaid expenses and other current assets
|
|
$
|
27.9
|
|
|
Prepaid expenses and other current assets
|
|
$
|
3.6
|
|
Foreign currency forward contracts
|
Prepaid expenses and other current assets
|
|
4.0
|
|
|
Prepaid expenses and other current assets
|
|
—
|
|
||
Total
|
|
|
$
|
31.9
|
|
|
|
|
$
|
3.6
|
|
|
Liability Derivatives
|
||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
(In millions)
|
Balance Sheet Location
|
|
Fair Value
|
|
Balance Sheet Location
|
|
Fair Value
|
||||
Foreign currency forward contracts
|
Other current liabilities
|
|
—
|
|
|
Other current liabilities
|
|
12.1
|
|
||
Total
|
|
|
$
|
—
|
|
|
|
|
$
|
12.1
|
|
|
Asset Derivatives
|
||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
(In millions)
|
Balance Sheet Location
|
|
Fair Value
|
|
Balance Sheet Location
|
|
Fair Value
|
||||
Foreign currency forward contracts
|
Prepaid expenses and other current assets
|
|
$
|
26.3
|
|
|
Prepaid expenses and other current assets
|
|
$
|
30.2
|
|
Total
|
|
|
$
|
26.3
|
|
|
|
|
$
|
30.2
|
|
|
Liability Derivatives
|
||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
(In millions)
|
Balance Sheet Location
|
|
Fair Value
|
|
Balance Sheet Location
|
|
Fair Value
|
||||
Foreign currency forward contracts
|
Other current liabilities
|
|
$
|
25.3
|
|
|
Other current liabilities
|
|
$
|
17.3
|
|
Total
|
|
|
$
|
25.3
|
|
|
|
|
$
|
17.3
|
|
|
Location of Gain (Loss)
Recognized in Earnings
on Derivatives
|
|
Amount of Gain (Loss) Recognized in Earnings on Derivatives
|
||||||||||||||
(In millions)
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
Interest rate swaps
|
Interest expense
|
|
$
|
3.3
|
|
|
$
|
(5.0
|
)
|
|
$
|
24.3
|
|
|
$
|
(27.3
|
)
|
Total
|
|
|
$
|
3.3
|
|
|
$
|
(5.0
|
)
|
|
$
|
24.3
|
|
|
$
|
(27.3
|
)
|
|
Location of Gain (Loss)
Recognized in Earnings
on Hedged Items
|
|
Amount of Gain (Loss) Recognized in Earnings on Hedged Items
|
||||||||||||||
(In millions)
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
2023 Senior Notes (3.125% coupon)
|
Interest expense
|
|
$
|
(3.3
|
)
|
|
$
|
5.0
|
|
|
$
|
(24.3
|
)
|
|
$
|
27.3
|
|
Total
|
|
|
$
|
(3.3
|
)
|
|
$
|
5.0
|
|
|
$
|
(24.3
|
)
|
|
$
|
27.3
|
|
|
|
Amount of Gain (Loss) Recognized in AOCE (Net of Tax) on Derivative
|
||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Foreign currency forward contracts
|
|
$
|
(8.4
|
)
|
|
$
|
(33.9
|
)
|
|
$
|
10.9
|
|
|
$
|
(87.7
|
)
|
Total
|
|
$
|
(8.4
|
)
|
|
$
|
(33.9
|
)
|
|
$
|
10.9
|
|
|
$
|
(87.7
|
)
|
|
|
Amount of Gain (Loss) Recognized in AOCE
(Net of Tax) on Derivative |
||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Foreign currency borrowings and forward contracts
|
|
$
|
106.2
|
|
|
$
|
17.9
|
|
|
$
|
126.9
|
|
|
$
|
77.7
|
|
Total
|
|
$
|
106.2
|
|
|
$
|
17.9
|
|
|
$
|
126.9
|
|
|
$
|
77.7
|
|
|
Location of Gain (Loss) Reclassified from AOCE into Earnings (Effective Portion)
|
|
Amount of Gain (Loss) Reclassified from AOCE into Earnings
|
||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
|
September 30,
|
|
September 30,
|
|||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Foreign currency forward contracts
|
Net sales
|
|
$
|
0.4
|
|
|
$
|
0.9
|
|
|
$
|
(1.2
|
)
|
|
$
|
8.1
|
|
Interest rate swaps
|
Interest expense
|
|
(1.8
|
)
|
|
(1.9
|
)
|
|
(5.4
|
)
|
|
(5.7
|
)
|
||||
Total
|
|
|
$
|
(1.4
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
(6.6
|
)
|
|
$
|
2.4
|
|
•
|
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.
|
|
September 30, 2019
|
||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Recurring fair value measurements
|
|
|
|
|
|
|
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
37.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37.4
|
|
Total cash equivalents
|
37.4
|
|
|
—
|
|
|
—
|
|
|
37.4
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Exchange traded funds
|
36.0
|
|
|
—
|
|
|
—
|
|
|
36.0
|
|
||||
Marketable securities
|
0.7
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
||||
Total equity securities
|
36.7
|
|
|
—
|
|
|
—
|
|
|
36.7
|
|
||||
Available-for-sale fixed income investments:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
—
|
|
|
11.3
|
|
|
—
|
|
|
11.3
|
|
||||
U.S. Treasuries
|
—
|
|
|
10.0
|
|
|
—
|
|
|
10.0
|
|
||||
Agency mortgage-backed securities
|
—
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
||||
Asset backed securities
|
—
|
|
|
2.4
|
|
|
—
|
|
|
2.4
|
|
||||
Other
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
||||
Total available-for-sale fixed income investments
|
—
|
|
|
26.8
|
|
|
—
|
|
|
26.8
|
|
||||
Foreign exchange derivative assets
|
—
|
|
|
30.3
|
|
|
—
|
|
|
30.3
|
|
||||
Interest rate swap derivative assets
|
—
|
|
|
27.9
|
|
|
—
|
|
|
27.9
|
|
||||
Total assets at recurring fair value measurement
|
$
|
74.1
|
|
|
$
|
85.0
|
|
|
$
|
—
|
|
|
$
|
159.1
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Foreign exchange derivative liabilities
|
—
|
|
|
25.3
|
|
|
—
|
|
|
25.3
|
|
||||
Contingent consideration
|
—
|
|
|
—
|
|
|
258.8
|
|
|
258.8
|
|
||||
Total liabilities at recurring fair value measurement
|
$
|
—
|
|
|
$
|
25.3
|
|
|
$
|
258.8
|
|
|
$
|
284.1
|
|
|
December 31, 2018
|
||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Recurring fair value measurements
|
|
|
|
|
|
|
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
71.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
71.0
|
|
Total cash equivalents
|
71.0
|
|
|
—
|
|
|
—
|
|
|
71.0
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Exchange traded funds
|
31.7
|
|
|
—
|
|
|
—
|
|
|
31.7
|
|
||||
Marketable securities
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
||||
Total equity securities
|
32.5
|
|
|
—
|
|
|
—
|
|
|
32.5
|
|
||||
Available-for-sale fixed income investments:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
—
|
|
|
9.9
|
|
|
—
|
|
|
9.9
|
|
||||
U.S. Treasuries
|
—
|
|
|
9.4
|
|
|
—
|
|
|
9.4
|
|
||||
Agency mortgage-backed securities
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
||||
Asset backed securities
|
—
|
|
|
3.2
|
|
|
—
|
|
|
3.2
|
|
||||
Other
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
||||
Total available-for-sale fixed income investments
|
—
|
|
|
25.0
|
|
|
—
|
|
|
25.0
|
|
||||
Foreign exchange derivative assets
|
—
|
|
|
30.2
|
|
|
—
|
|
|
30.2
|
|
||||
Interest rate swap derivative assets
|
—
|
|
|
3.6
|
|
|
—
|
|
|
3.6
|
|
||||
Total assets at recurring fair value measurement
|
$
|
103.5
|
|
|
$
|
58.8
|
|
|
$
|
—
|
|
|
$
|
162.3
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Foreign exchange derivative liabilities
|
$
|
—
|
|
|
$
|
29.4
|
|
|
$
|
—
|
|
|
$
|
29.4
|
|
Contingent consideration
|
—
|
|
|
—
|
|
|
355.3
|
|
|
355.3
|
|
||||
Total liabilities at recurring fair value measurement
|
$
|
—
|
|
|
$
|
29.4
|
|
|
$
|
355.3
|
|
|
$
|
384.7
|
|
•
|
Cash equivalents — valued at observable net asset value prices.
|
•
|
Equity securities, exchange traded funds — valued at the active quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in other expense, net, in the condensed consolidated statements of operations.
|
•
|
Equity securities, marketable securities — valued using quoted stock prices from public exchanges at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in other expense, net, in the condensed consolidated statements of operations.
|
•
|
Available-for-sale fixed income investments — valued at the quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value, net of income taxes, are included in accumulated other comprehensive loss as a component of shareholders’ equity.
|
•
|
Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices and spot rates at the reporting date. Counterparties to these contracts are highly rated financial institutions.
|
•
|
Interest rate swap derivative assets and liabilities — valued using the LIBOR/EURIBOR yield curves at the reporting date. Counterparties to these contracts are highly rated financial institutions.
|
(In millions)
|
Current Portion (1)
|
|
Long-Term Portion (2)
|
|
Total Contingent Consideration
|
||||||
Balance at December 31, 2018
|
$
|
158.3
|
|
|
$
|
197.0
|
|
|
$
|
355.3
|
|
Payments
|
(79.0
|
)
|
|
—
|
|
|
(79.0
|
)
|
|||
Reclassifications
|
38.7
|
|
|
(38.7
|
)
|
|
—
|
|
|||
Accretion
|
—
|
|
|
11.4
|
|
|
11.4
|
|
|||
Fair value loss (gain) (3)
|
3.5
|
|
|
(32.4
|
)
|
|
(28.9
|
)
|
|||
Balance at September 30, 2019
|
$
|
121.5
|
|
|
$
|
137.3
|
|
|
$
|
258.8
|
|
(1)
|
Included in other current liabilities in the condensed consolidated balance sheets.
|
(2)
|
Included in other long-term obligations in the condensed consolidated balance sheets.
|
(3)
|
Included in litigation settlements and other contingencies, net in the condensed consolidated statements of operations.
|
13.
|
Debt
|
(In millions)
|
September 30,
2019 |
|
December 31,
2018 |
||||
Commercial paper notes
|
$
|
—
|
|
|
$
|
—
|
|
Other
|
—
|
|
|
1.9
|
|
||
Short-term borrowings
|
$
|
—
|
|
|
$
|
1.9
|
|
(In millions)
|
Interest Rate as of September 30, 2019
|
|
September 30,
2019 |
|
December 31,
2018 |
|||||
Current portion of long-term debt:
|
|
|
|
|
|
|||||
2016 Term Facility (a) **
|
3.705
|
%
|
|
$
|
—
|
|
|
$
|
100.0
|
|
2019 Senior Notes **
|
2.500
|
%
|
|
—
|
|
|
549.9
|
|
||
2020 Floating Rate Euro Notes (b) **
|
|
|
544.9
|
|
|
—
|
|
|||
Other
|
|
|
10.1
|
|
|
6.2
|
|
|||
Deferred financing fees
|
|
|
(0.5
|
)
|
|
(0.9
|
)
|
|||
Current portion of long-term debt
|
|
|
$
|
554.5
|
|
|
$
|
655.2
|
|
|
|
|
|
|
|
|
|||||
Non-current portion of long-term debt:
|
|
|
|
|
|
|||||
2020 Floating Rate Euro Notes (b) **
|
|
|
$
|
—
|
|
|
$
|
573.3
|
|
|
2020 Euro Senior Notes **
|
1.250
|
%
|
|
816.3
|
|
|
858.1
|
|
||
2020 Senior Notes **
|
3.750
|
%
|
|
500.0
|
|
|
499.9
|
|
||
2021 Senior Notes **
|
3.150
|
%
|
|
2,249.1
|
|
|
2,248.7
|
|
||
2023 Senior Notes *
|
3.125
|
%
|
|
777.4
|
|
|
752.9
|
|
||
2023 Senior Notes *
|
4.200
|
%
|
|
499.1
|
|
|
498.9
|
|
||
2024 Euro Senior Notes **
|
2.250
|
%
|
|
1,087.9
|
|
|
1,144.2
|
|
||
2025 Euro Senior Notes *
|
2.125
|
%
|
|
543.8
|
|
|
572.0
|
|
||
2026 Senior Notes **
|
3.950
|
%
|
|
2,237.7
|
|
|
2,236.5
|
|
||
2028 Euro Senior Notes **
|
3.125
|
%
|
|
810.8
|
|
|
852.5
|
|
||
2028 Senior Notes *
|
4.550
|
%
|
|
748.4
|
|
|
748.2
|
|
||
2043 Senior Notes *
|
5.400
|
%
|
|
497.2
|
|
|
497.2
|
|
||
2046 Senior Notes **
|
5.250
|
%
|
|
999.8
|
|
|
999.8
|
|
||
2048 Senior Notes *
|
5.200
|
%
|
|
747.7
|
|
|
747.6
|
|
||
Other
|
|
|
9.1
|
|
|
5.1
|
|
|||
Deferred financing fees
|
|
|
(63.8
|
)
|
|
(73.7
|
)
|
|||
Long-term debt
|
|
|
$
|
12,460.5
|
|
|
$
|
13,161.2
|
|
(a)
|
The 2016 Term Facility bears interest at LIBOR plus a base rate, which margins can fluctuate based on the Company’s credit ratings.
|
(b)
|
Instrument bears interest at a rate of three-month EURIBOR plus 0.50% per annum, reset quarterly.
|
*
|
Instrument was issued by Mylan Inc.
|
**
|
Instrument was issued by Mylan N.V.
|
(In millions)
|
Total
|
||
2019
|
$
|
—
|
|
2020
|
1,862
|
|
|
2021
|
2,250
|
|
|
2022
|
—
|
|
|
2023
|
1,250
|
|
|
Thereafter
|
7,702
|
|
|
Total
|
$
|
13,064
|
|
14.
|
Comprehensive Loss
|
(In millions)
|
September 30,
2019 |
|
December 31,
2018 |
||||
Accumulated other comprehensive loss:
|
|
|
|
||||
Net unrealized gain on marketable securities, net of tax
|
$
|
0.8
|
|
|
$
|
—
|
|
Net unrecognized gains and prior service cost related to defined benefit plans, net of tax
|
1.3
|
|
|
1.7
|
|
||
Net unrecognized losses on derivatives in cash flow hedging relationships, net of tax
|
(39.6
|
)
|
|
(53.1
|
)
|
||
Net unrecognized losses on derivatives in net investment hedging relationships, net of tax
|
(3.9
|
)
|
|
(130.9
|
)
|
||
Foreign currency translation adjustment
|
(2,149.8
|
)
|
|
(1,259.0
|
)
|
||
|
$
|
(2,191.2
|
)
|
|
$
|
(1,441.3
|
)
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||||||||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships
|
|
Gains and Losses on Net Investment Hedges
|
|
Gains and Losses on Marketable Securities
|
|
Defined Pension Plan Items
|
|
Foreign Currency Translation Adjustment
|
|
Totals
|
|||||||||||||||||||
(In millions)
|
Foreign Currency Forward Contracts
|
|
Interest Rate Swaps
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at June 30, 2019, net of tax
|
|
|
|
|
$
|
(33.0
|
)
|
|
$
|
(110.2
|
)
|
|
$
|
0.7
|
|
|
$
|
1.7
|
|
|
$
|
(1,400.9
|
)
|
|
$
|
(1,541.7
|
)
|
||
Other comprehensive (loss) earnings before reclassifications, before tax
|
|
|
|
|
(12.0
|
)
|
|
111.8
|
|
|
0.1
|
|
|
(0.8
|
)
|
|
(748.9
|
)
|
|
(649.8
|
)
|
||||||||
Amounts reclassified from accumulated other comprehensive loss, before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales
|
(0.4
|
)
|
|
|
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
(0.4
|
)
|
|||||||||||
Loss on interest rate swaps classified as cash flow hedges, included in interest expense
|
|
|
1.8
|
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
1.8
|
|
|||||||||||
Amortization of prior service costs included in selling, general and administrative expense (“SG&A”)
|
|
|
|
|
|
|
|
|
|
|
0.3
|
|
|
|
|
0.3
|
|
||||||||||||
Amortization of actuarial gain included in SG&A
|
|
|
|
|
|
|
|
|
|
|
(0.2
|
)
|
|
|
|
(0.2
|
)
|
||||||||||||
Net other comprehensive (loss) earnings, before tax
|
|
|
|
|
(10.6
|
)
|
|
111.8
|
|
|
0.1
|
|
|
(0.7
|
)
|
|
(748.9
|
)
|
|
(648.3
|
)
|
||||||||
Income tax (benefit) provision
|
|
|
|
|
(4.0
|
)
|
|
5.5
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
1.2
|
|
||||||||
Balance at September 30, 2019, net of tax
|
|
|
|
|
$
|
(39.6
|
)
|
|
$
|
(3.9
|
)
|
|
$
|
0.8
|
|
|
$
|
1.3
|
|
|
$
|
(2,149.8
|
)
|
|
$
|
(2,191.2
|
)
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships
|
|
Gains and Losses on Net Investment Hedges
|
|
Gains and Losses on Marketable Securities
|
|
Defined Pension Plan Items
|
|
Foreign Currency Translation Adjustment
|
|
Totals
|
|||||||||||||||||||
(In millions)
|
Foreign Currency Forward Contracts
|
|
Interest Rate Swaps
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at December 31, 2018, net of tax
|
|
|
|
|
$
|
(53.1
|
)
|
|
$
|
(130.9
|
)
|
|
$
|
—
|
|
|
$
|
1.7
|
|
|
$
|
(1,259.0
|
)
|
|
$
|
(1,441.3
|
)
|
||
Other comprehensive earnings (loss) before reclassifications, before tax
|
|
|
|
|
18.2
|
|
|
133.6
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
(890.8
|
)
|
|
(739.0
|
)
|
||||||||
Amounts reclassified from accumulated other comprehensive loss, before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loss on foreign exchange forward contracts classified as cash flow hedges, included in net sales
|
1.2
|
|
|
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
1.2
|
|
|||||||||||
Loss on interest rate swaps classified as cash flow hedges, included in interest expense
|
|
|
5.4
|
|
|
5.4
|
|
|
|
|
|
|
|
|
|
|
5.4
|
|
|||||||||||
Amortization of prior service costs included in SG&A
|
|
|
|
|
|
|
|
|
|
|
0.8
|
|
|
|
|
0.8
|
|
||||||||||||
Amortization of actuarial gain included in SG&A
|
|
|
|
|
|
|
|
|
|
|
(0.6
|
)
|
|
|
|
(0.6
|
)
|
||||||||||||
Net other comprehensive earnings (loss), before tax
|
|
|
|
|
24.8
|
|
|
133.6
|
|
|
0.7
|
|
|
(0.5
|
)
|
|
(890.8
|
)
|
|
(732.2
|
)
|
||||||||
Income tax provision (benefit)
|
|
|
|
|
7.9
|
|
|
6.6
|
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
14.1
|
|
||||||||
Cumulative effect of the adoption of new accounting standards
|
|
|
|
|
(3.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(3.6
|
)
|
||||||||
Balance at September 30, 2019, net of tax
|
|
|
|
|
$
|
(39.6
|
)
|
|
$
|
(3.9
|
)
|
|
$
|
0.8
|
|
|
$
|
1.3
|
|
|
$
|
(2,149.8
|
)
|
|
$
|
(2,191.2
|
)
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships
|
|
Gains and Losses on Net Investment Hedges
|
|
Gains and Losses on Marketable Securities
|
|
Defined Pension Plan Items
|
|
Foreign Currency Translation Adjustment
|
|
Totals
|
|||||||||||||||||||
(In millions)
|
Foreign Currency Forward Contracts
|
|
Interest Rate Swaps
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at June 30, 2018, net of tax
|
|
|
|
|
$
|
(63.0
|
)
|
|
$
|
(180.0
|
)
|
|
$
|
—
|
|
|
$
|
4.3
|
|
|
$
|
(960.6
|
)
|
|
$
|
(1,199.3
|
)
|
||
Other comprehensive (loss) earnings before reclassifications, before tax
|
|
|
|
|
(52.9
|
)
|
|
18.8
|
|
|
—
|
|
|
(7.0
|
)
|
|
(270.8
|
)
|
|
(311.9
|
)
|
||||||||
Amounts reclassified from accumulated other comprehensive loss, before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales
|
(0.9
|
)
|
|
|
|
(0.9
|
)
|
|
|
|
|
|
|
|
|
|
(0.9
|
)
|
|||||||||||
Loss on interest rate swaps classified as cash flow hedges, included in interest expense
|
|
|
1.9
|
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
1.9
|
|
|||||||||||
Amortization of prior service costs included in SG&A
|
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
|
|
0.1
|
|
||||||||||||
Amortization of actuarial loss included in SG&A
|
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
|
|
0.1
|
|
||||||||||||
Net other comprehensive (loss) earnings, before tax
|
|
|
|
|
(51.9
|
)
|
|
18.8
|
|
|
—
|
|
|
(6.8
|
)
|
|
(270.8
|
)
|
|
(310.7
|
)
|
||||||||
Income tax (benefit) provision
|
|
|
|
|
(18.0
|
)
|
|
0.9
|
|
|
—
|
|
|
(2.0
|
)
|
|
—
|
|
|
(19.1
|
)
|
||||||||
Balance at September 30, 2018, net of tax
|
|
|
|
|
$
|
(96.9
|
)
|
|
$
|
(162.1
|
)
|
|
$
|
—
|
|
|
$
|
(0.5
|
)
|
|
$
|
(1,231.4
|
)
|
|
$
|
(1,490.9
|
)
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
Gains and Losses on Derivatives in Cash Flow Hedging Relationships
|
|
Gains and Losses on Net Investment Hedges
|
|
Gains and Losses on Marketable Securities
|
|
Defined Pension Plan Items
|
|
Foreign Currency Translation Adjustment
|
|
Totals
|
|||||||||||||||||||
(In millions)
|
Foreign Currency Forward Contracts
|
|
Interest Rate Swaps
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at December 31, 2017, net of tax
|
|
|
|
|
$
|
(3.7
|
)
|
|
$
|
(239.8
|
)
|
|
$
|
10.1
|
|
|
$
|
6.0
|
|
|
$
|
(133.8
|
)
|
|
$
|
(361.2
|
)
|
||
Other comprehensive (loss) earnings before reclassifications, before tax
|
|
|
|
|
(143.7
|
)
|
|
78.7
|
|
|
(0.1
|
)
|
|
(8.7
|
)
|
|
(1,097.6
|
)
|
|
(1,171.4
|
)
|
||||||||
Amounts reclassified from accumulated other comprehensive loss, before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales
|
(8.1
|
)
|
|
|
|
(8.1
|
)
|
|
|
|
|
|
|
|
|
|
(8.1
|
)
|
|||||||||||
Loss on interest rate swaps classified as cash flow hedges, included in interest expense
|
|
|
5.7
|
|
|
5.7
|
|
|
|
|
|
|
|
|
|
|
5.7
|
|
|||||||||||
Amortization of prior service costs included in SG&A
|
|
|
|
|
|
|
|
|
|
|
0.3
|
|
|
|
|
0.3
|
|
||||||||||||
Amortization of actuarial loss included in SG&A
|
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
|
|
0.1
|
|
||||||||||||
Net other comprehensive (loss) earnings, before tax
|
|
|
|
|
(146.1
|
)
|
|
78.7
|
|
|
(0.1
|
)
|
|
(8.3
|
)
|
|
(1,097.6
|
)
|
|
(1,173.4
|
)
|
||||||||
Income tax (benefit) provision
|
|
|
|
|
(50.4
|
)
|
|
1.0
|
|
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
|
(51.2
|
)
|
||||||||
Cumulative effect of the adoption of new accounting standards
|
|
|
|
|
2.5
|
|
|
—
|
|
|
(10.0
|
)
|
|
—
|
|
|
—
|
|
|
(7.5
|
)
|
||||||||
Balance at September 30, 2018, net of tax
|
|
|
|
|
$
|
(96.9
|
)
|
|
$
|
(162.1
|
)
|
|
$
|
—
|
|
|
$
|
(0.5
|
)
|
|
$
|
(1,231.4
|
)
|
|
$
|
(1,490.9
|
)
|
15.
|
Segment Information
|
(In millions)
|
North America
|
|
Europe
|
|
Rest of World
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
1,088.6
|
|
|
$
|
1,045.9
|
|
|
$
|
793.7
|
|
|
$
|
—
|
|
|
$
|
2,928.2
|
|
Other revenue
|
17.6
|
|
|
3.8
|
|
|
12.1
|
|
|
—
|
|
|
33.5
|
|
|||||
Intersegment revenue
|
13.9
|
|
|
23.2
|
|
|
134.0
|
|
|
(171.1
|
)
|
|
—
|
|
|||||
Total
|
$
|
1,120.1
|
|
|
$
|
1,072.9
|
|
|
$
|
939.8
|
|
|
$
|
(171.1
|
)
|
|
$
|
2,961.7
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment profitability
|
$
|
489.9
|
|
|
$
|
325.1
|
|
|
$
|
170.3
|
|
|
$
|
—
|
|
|
$
|
985.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible asset amortization expense
|
|
|
|
|
|
|
|
|
(405.6
|
)
|
|||||||||
Intangible asset impairment charges
|
|
|
|
|
|
|
|
|
(1.9
|
)
|
|||||||||
Globally managed research and development costs
|
|
|
|
|
|
|
|
|
(47.3
|
)
|
|||||||||
Corporate costs and special items
|
|
|
|
|
|
|
|
|
(258.7
|
)
|
|||||||||
Litigation settlements & other contingencies
|
|
|
|
|
|
|
|
|
51.9
|
|
|||||||||
Earnings from operations
|
|
|
|
|
|
|
|
|
$
|
323.7
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
3,035.0
|
|
|
$
|
2,930.7
|
|
|
$
|
2,241.3
|
|
|
$
|
—
|
|
|
$
|
8,207.0
|
|
Other revenue
|
58.8
|
|
|
12.3
|
|
|
30.6
|
|
|
—
|
|
|
101.7
|
|
|||||
Intersegment revenue
|
64.6
|
|
|
66.3
|
|
|
382.1
|
|
|
(513.0
|
)
|
|
—
|
|
|||||
Total
|
$
|
3,158.4
|
|
|
$
|
3,009.3
|
|
|
$
|
2,654.0
|
|
|
$
|
(513.0
|
)
|
|
$
|
8,308.7
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment profitability
|
$
|
1,342.3
|
|
|
$
|
723.7
|
|
|
$
|
435.2
|
|
|
$
|
—
|
|
|
$
|
2,501.2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible asset amortization expense
|
|
|
|
|
|
|
|
|
(1,210.3
|
)
|
|||||||||
Intangible asset impairment charges
|
|
|
|
|
|
|
|
|
(71.8
|
)
|
|||||||||
Globally managed research and development costs
|
|
|
|
|
|
|
|
|
(167.8
|
)
|
|||||||||
Corporate costs and special items
|
|
|
|
|
|
|
|
|
(638.4
|
)
|
|||||||||
Litigation settlements & other contingencies
|
|
|
|
|
|
|
|
|
30.3
|
|
|||||||||
Earnings from operations
|
|
|
|
|
|
|
|
|
$
|
443.2
|
|
(In millions)
|
North America
|
|
Europe
|
|
Rest of World
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
1,012.3
|
|
|
$
|
1,041.3
|
|
|
$
|
773.7
|
|
|
$
|
—
|
|
|
$
|
2,827.3
|
|
Other revenue
|
20.9
|
|
|
7.4
|
|
|
6.8
|
|
|
—
|
|
|
35.1
|
|
|||||
Intersegment revenue
|
19.5
|
|
|
23.2
|
|
|
97.3
|
|
|
(140.0
|
)
|
|
—
|
|
|||||
Total
|
$
|
1,052.7
|
|
|
$
|
1,071.9
|
|
|
$
|
877.8
|
|
|
$
|
(140.0
|
)
|
|
$
|
2,862.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment profitability
|
$
|
446.0
|
|
|
$
|
310.5
|
|
|
$
|
194.6
|
|
|
$
|
—
|
|
|
$
|
951.1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible asset amortization expense
|
|
|
|
|
|
|
|
|
(412.2
|
)
|
|||||||||
Intangible asset impairment charges
|
|
|
|
|
|
|
|
|
(15.5
|
)
|
|||||||||
Globally managed research and development costs
|
|
|
|
|
|
|
|
|
(61.9
|
)
|
|||||||||
Corporate costs and special items
|
|
|
|
|
|
|
|
|
(143.7
|
)
|
|||||||||
Litigation settlements & other contingencies
|
|
|
|
|
|
|
|
|
20.4
|
|
|||||||||
Earnings from operations
|
|
|
|
|
|
|
|
|
$
|
338.2
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
2,998.4
|
|
|
$
|
3,070.3
|
|
|
$
|
2,164.5
|
|
|
$
|
—
|
|
|
$
|
8,233.2
|
|
Other revenue
|
84.5
|
|
|
19.8
|
|
|
17.7
|
|
|
—
|
|
|
122.0
|
|
|||||
Intersegment revenue
|
55.5
|
|
|
74.2
|
|
|
287.1
|
|
|
(416.8
|
)
|
|
—
|
|
|||||
Total
|
$
|
3,138.4
|
|
|
$
|
3,164.3
|
|
|
$
|
2,469.3
|
|
|
$
|
(416.8
|
)
|
|
$
|
8,355.2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment profitability
|
$
|
1,281.3
|
|
|
$
|
806.8
|
|
|
$
|
475.2
|
|
|
$
|
—
|
|
|
$
|
2,563.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible asset amortization expense
|
|
|
|
|
|
|
|
|
(1,191.9
|
)
|
|||||||||
Intangible asset impairment charges
|
|
|
|
|
|
|
|
|
(87.5
|
)
|
|||||||||
Globally managed research and development costs
|
|
|
|
|
|
|
|
|
(213.6
|
)
|
|||||||||
Corporate costs and special items
|
|
|
|
|
|
|
|
|
(448.1
|
)
|
|||||||||
Litigation settlements & other contingencies
|
|
|
|
|
|
|
|
|
50.6
|
|
|||||||||
Earnings from operations
|
|
|
|
|
|
|
|
|
$
|
672.8
|
|
16.
|
Subsidiary Guarantors
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,928.2
|
|
|
$
|
—
|
|
|
$
|
2,928.2
|
|
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
33.5
|
|
|
—
|
|
|
33.5
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
2,961.7
|
|
|
—
|
|
|
2,961.7
|
|
||||||
Cost of sales
|
—
|
|
|
—
|
|
|
—
|
|
|
1,889.3
|
|
|
—
|
|
|
1,889.3
|
|
||||||
Gross profit
|
—
|
|
|
—
|
|
|
—
|
|
|
1,072.4
|
|
|
—
|
|
|
1,072.4
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Research and development
|
—
|
|
|
—
|
|
|
—
|
|
|
167.9
|
|
|
—
|
|
|
167.9
|
|
||||||
Selling, general and administrative
|
61.8
|
|
|
154.6
|
|
|
—
|
|
|
416.3
|
|
|
—
|
|
|
632.7
|
|
||||||
Litigation settlements and other contingencies, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(51.9
|
)
|
|
—
|
|
|
(51.9
|
)
|
||||||
Total operating expenses
|
61.8
|
|
|
154.6
|
|
|
—
|
|
|
532.3
|
|
|
—
|
|
|
748.7
|
|
||||||
(Loss) Earnings from operations
|
(61.8
|
)
|
|
(154.6
|
)
|
|
—
|
|
|
540.1
|
|
|
—
|
|
|
323.7
|
|
||||||
Interest expense
|
78.1
|
|
|
43.8
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
|
128.9
|
|
||||||
Other (income) expense, net
|
(72.9
|
)
|
|
(77.9
|
)
|
|
—
|
|
|
159.8
|
|
|
—
|
|
|
9.0
|
|
||||||
(Loss) Earnings before income taxes
|
(67.0
|
)
|
|
(120.5
|
)
|
|
—
|
|
|
373.3
|
|
|
—
|
|
|
185.8
|
|
||||||
Income tax (benefit) provision
|
(8.0
|
)
|
|
(27.7
|
)
|
|
—
|
|
|
31.7
|
|
|
—
|
|
|
(4.0
|
)
|
||||||
Earnings of equity interest subsidiaries
|
248.8
|
|
|
279.9
|
|
|
—
|
|
|
—
|
|
|
(528.7
|
)
|
|
—
|
|
||||||
Net earnings
|
$
|
189.8
|
|
|
$
|
187.1
|
|
|
$
|
—
|
|
|
$
|
341.6
|
|
|
$
|
(528.7
|
)
|
|
$
|
189.8
|
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,207.0
|
|
|
$
|
—
|
|
|
$
|
8,207.0
|
|
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
101.7
|
|
|
—
|
|
|
101.7
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
8,308.7
|
|
|
—
|
|
|
8,308.7
|
|
||||||
Cost of sales
|
—
|
|
|
—
|
|
|
—
|
|
|
5,498.5
|
|
|
—
|
|
|
5,498.5
|
|
||||||
Gross profit
|
—
|
|
|
—
|
|
|
—
|
|
|
2,810.2
|
|
|
—
|
|
|
2,810.2
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Research and development
|
—
|
|
|
—
|
|
|
—
|
|
|
488.1
|
|
|
—
|
|
|
488.1
|
|
||||||
Selling, general and administrative
|
85.1
|
|
|
466.2
|
|
|
—
|
|
|
1,357.9
|
|
|
—
|
|
|
1,909.2
|
|
||||||
Litigation settlements and other contingencies, net
|
30.0
|
|
|
18.0
|
|
|
—
|
|
|
(78.3
|
)
|
|
—
|
|
|
(30.3
|
)
|
||||||
Total operating expenses
|
115.1
|
|
|
484.2
|
|
|
—
|
|
|
1,767.7
|
|
|
—
|
|
|
2,367.0
|
|
||||||
(Loss) Earnings from operations
|
(115.1
|
)
|
|
(484.2
|
)
|
|
—
|
|
|
1,042.5
|
|
|
—
|
|
|
443.2
|
|
||||||
Interest expense
|
240.6
|
|
|
131.0
|
|
|
—
|
|
|
19.7
|
|
|
—
|
|
|
391.3
|
|
||||||
Other (income) expense, net
|
(218.2
|
)
|
|
(198.4
|
)
|
|
—
|
|
|
449.3
|
|
|
—
|
|
|
32.7
|
|
||||||
(Loss) Earnings before income taxes
|
(137.5
|
)
|
|
(416.8
|
)
|
|
—
|
|
|
573.5
|
|
|
—
|
|
|
19.2
|
|
||||||
Income tax (benefit) provision
|
(21.8
|
)
|
|
(24.1
|
)
|
|
—
|
|
|
68.8
|
|
|
—
|
|
|
22.9
|
|
||||||
Earnings of equity interest subsidiaries
|
112.0
|
|
|
394.3
|
|
|
—
|
|
|
—
|
|
|
(506.3
|
)
|
|
—
|
|
||||||
Net (loss) earnings
|
$
|
(3.7
|
)
|
|
$
|
1.6
|
|
|
$
|
—
|
|
|
$
|
504.7
|
|
|
$
|
(506.3
|
)
|
|
$
|
(3.7
|
)
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,827.3
|
|
|
$
|
—
|
|
|
$
|
2,827.3
|
|
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
35.1
|
|
|
—
|
|
|
35.1
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
2,862.4
|
|
|
—
|
|
|
2,862.4
|
|
||||||
Cost of sales
|
—
|
|
|
—
|
|
|
—
|
|
|
1,823.2
|
|
|
—
|
|
|
1,823.2
|
|
||||||
Gross profit
|
—
|
|
|
—
|
|
|
—
|
|
|
1,039.2
|
|
|
—
|
|
|
1,039.2
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Research and development
|
—
|
|
|
—
|
|
|
—
|
|
|
144.1
|
|
|
—
|
|
|
144.1
|
|
||||||
Selling, general and administrative
|
11.5
|
|
|
117.6
|
|
|
—
|
|
|
448.2
|
|
|
—
|
|
|
577.3
|
|
||||||
Litigation settlements and other contingencies, net
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(20.5
|
)
|
|
—
|
|
|
(20.4
|
)
|
||||||
Total operating expenses
|
11.5
|
|
|
117.7
|
|
|
—
|
|
|
571.8
|
|
|
—
|
|
|
701.0
|
|
||||||
(Loss) Earnings from operations
|
(11.5
|
)
|
|
(117.7
|
)
|
|
—
|
|
|
467.4
|
|
|
—
|
|
|
338.2
|
|
||||||
Interest expense
|
84.0
|
|
|
42.9
|
|
|
—
|
|
|
9.3
|
|
|
—
|
|
|
136.2
|
|
||||||
Other (income) expense, net
|
(47.9
|
)
|
|
(79.0
|
)
|
|
—
|
|
|
136.7
|
|
|
—
|
|
|
9.8
|
|
||||||
(Loss) Earnings before income taxes
|
(47.6
|
)
|
|
(81.6
|
)
|
|
—
|
|
|
321.4
|
|
|
—
|
|
|
192.2
|
|
||||||
Income tax (benefit) provision
|
(8.0
|
)
|
|
18.1
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
|
15.5
|
|
||||||
Earnings of equity interest subsidiaries
|
216.3
|
|
|
143.3
|
|
|
—
|
|
|
—
|
|
|
(359.6
|
)
|
|
—
|
|
||||||
Net earnings
|
$
|
176.7
|
|
|
$
|
43.6
|
|
|
$
|
—
|
|
|
$
|
316.0
|
|
|
$
|
(359.6
|
)
|
|
$
|
176.7
|
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,233.2
|
|
|
$
|
—
|
|
|
$
|
8,233.2
|
|
Other revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
122.0
|
|
|
—
|
|
|
122.0
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
8,355.2
|
|
|
—
|
|
|
8,355.2
|
|
||||||
Cost of sales
|
—
|
|
|
—
|
|
|
—
|
|
|
5,369.2
|
|
|
—
|
|
|
5,369.2
|
|
||||||
Gross profit
|
—
|
|
|
—
|
|
|
—
|
|
|
2,986.0
|
|
|
—
|
|
|
2,986.0
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Research and development
|
—
|
|
|
—
|
|
|
—
|
|
|
555.7
|
|
|
—
|
|
|
555.7
|
|
||||||
Selling, general and administrative
|
31.0
|
|
|
367.7
|
|
|
—
|
|
|
1,409.4
|
|
|
—
|
|
|
1,808.1
|
|
||||||
Litigation settlements and other contingencies, net
|
—
|
|
|
7.1
|
|
|
—
|
|
|
(57.7
|
)
|
|
—
|
|
|
(50.6
|
)
|
||||||
Total operating expenses
|
31.0
|
|
|
374.8
|
|
|
—
|
|
|
1,907.4
|
|
|
—
|
|
|
2,313.2
|
|
||||||
(Loss) Earnings from operations
|
(31.0
|
)
|
|
(374.8
|
)
|
|
—
|
|
|
1,078.6
|
|
|
—
|
|
|
672.8
|
|
||||||
Interest expense
|
266.1
|
|
|
110.9
|
|
|
—
|
|
|
30.1
|
|
|
—
|
|
|
407.1
|
|
||||||
Other (income) expense, net
|
(211.5
|
)
|
|
(205.0
|
)
|
|
—
|
|
|
460.8
|
|
|
—
|
|
|
44.3
|
|
||||||
(Loss) Earnings before income taxes
|
(85.6
|
)
|
|
(280.7
|
)
|
|
—
|
|
|
587.7
|
|
|
—
|
|
|
221.4
|
|
||||||
Income tax (benefit) provision
|
(23.3
|
)
|
|
13.5
|
|
|
—
|
|
|
(70.1
|
)
|
|
—
|
|
|
(79.9
|
)
|
||||||
Earnings of equity interest subsidiaries
|
363.6
|
|
|
217.2
|
|
|
—
|
|
|
—
|
|
|
(580.8
|
)
|
|
—
|
|
||||||
Net earnings (loss)
|
$
|
301.3
|
|
|
$
|
(77.0
|
)
|
|
$
|
—
|
|
|
$
|
657.8
|
|
|
$
|
(580.8
|
)
|
|
$
|
301.3
|
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net earnings
|
$
|
189.8
|
|
|
$
|
187.1
|
|
|
$
|
—
|
|
|
$
|
341.6
|
|
|
$
|
(528.7
|
)
|
|
$
|
189.8
|
|
Other comprehensive (loss) earnings, before tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
(748.9
|
)
|
|
—
|
|
|
—
|
|
|
(748.9
|
)
|
|
748.9
|
|
|
(748.9
|
)
|
||||||
Change in unrecognized loss and prior service cost related to defined benefit plans
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
0.7
|
|
|
(0.7
|
)
|
||||||
Net unrecognized (loss) gain on derivatives in cash flow hedging relationships
|
(10.6
|
)
|
|
1.8
|
|
|
—
|
|
|
(12.4
|
)
|
|
10.6
|
|
|
(10.6
|
)
|
||||||
Net unrecognized gain on derivatives in net investment hedging relationships
|
111.8
|
|
|
23.8
|
|
|
—
|
|
|
—
|
|
|
(23.8
|
)
|
|
111.8
|
|
||||||
Net unrealized gain on marketable securities
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
0.1
|
|
||||||
Other comprehensive (loss) earnings, before tax
|
(648.3
|
)
|
|
25.6
|
|
|
—
|
|
|
(761.9
|
)
|
|
736.3
|
|
|
(648.3
|
)
|
||||||
Income tax provision (benefit)
|
1.2
|
|
|
(5.9
|
)
|
|
—
|
|
|
7.1
|
|
|
(1.2
|
)
|
|
1.2
|
|
||||||
Other comprehensive (loss) earnings, net of tax
|
(649.5
|
)
|
|
31.5
|
|
|
—
|
|
|
(769.0
|
)
|
|
737.5
|
|
|
(649.5
|
)
|
||||||
Comprehensive (loss) earnings
|
$
|
(459.7
|
)
|
|
$
|
218.6
|
|
|
$
|
—
|
|
|
$
|
(427.4
|
)
|
|
$
|
208.8
|
|
|
$
|
(459.7
|
)
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net (loss) earnings
|
$
|
(3.7
|
)
|
|
$
|
1.6
|
|
|
$
|
—
|
|
|
$
|
504.7
|
|
|
$
|
(506.3
|
)
|
|
$
|
(3.7
|
)
|
Other comprehensive (loss) earnings, before tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
(890.8
|
)
|
|
—
|
|
|
—
|
|
|
(890.8
|
)
|
|
890.8
|
|
|
(890.8
|
)
|
||||||
Change in unrecognized (loss) gain and prior service cost related to defined benefit plans
|
(0.5
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.6
|
)
|
|
0.5
|
|
|
(0.5
|
)
|
||||||
Net unrecognized gain on derivatives in cash flow hedging relationships
|
24.8
|
|
|
5.4
|
|
|
—
|
|
|
19.4
|
|
|
(24.8
|
)
|
|
24.8
|
|
||||||
Net unrecognized gain on derivatives in net investment hedging relationships
|
133.6
|
|
|
28.4
|
|
|
—
|
|
|
—
|
|
|
(28.4
|
)
|
|
133.6
|
|
||||||
Net unrealized gain on marketable securities
|
0.7
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
0.7
|
|
||||||
Other comprehensive (loss) earnings, before tax
|
(732.2
|
)
|
|
33.9
|
|
|
—
|
|
|
(871.3
|
)
|
|
837.4
|
|
|
(732.2
|
)
|
||||||
Income tax provision (benefit)
|
14.1
|
|
|
(7.9
|
)
|
|
—
|
|
|
22.0
|
|
|
(14.1
|
)
|
|
14.1
|
|
||||||
Other comprehensive (loss) earnings, net of tax
|
(746.3
|
)
|
|
41.8
|
|
|
—
|
|
|
(893.3
|
)
|
|
851.5
|
|
|
(746.3
|
)
|
||||||
Comprehensive (loss) earnings
|
$
|
(750.0
|
)
|
|
$
|
43.4
|
|
|
$
|
—
|
|
|
$
|
(388.6
|
)
|
|
$
|
345.2
|
|
|
$
|
(750.0
|
)
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net earnings
|
$
|
176.7
|
|
|
$
|
43.6
|
|
|
$
|
—
|
|
|
$
|
316.0
|
|
|
$
|
(359.6
|
)
|
|
$
|
176.7
|
|
Other comprehensive (loss) earnings, before tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
(270.8
|
)
|
|
—
|
|
|
—
|
|
|
(270.8
|
)
|
|
270.8
|
|
|
(270.8
|
)
|
||||||
Change in unrecognized (loss) gain and prior service cost related to defined benefit plans
|
(6.8
|
)
|
|
0.1
|
|
|
—
|
|
|
(6.9
|
)
|
|
6.8
|
|
|
(6.8
|
)
|
||||||
Net unrecognized (loss) gain on derivatives in cash flow hedging relationships
|
(51.9
|
)
|
|
1.9
|
|
|
—
|
|
|
(53.8
|
)
|
|
51.9
|
|
|
(51.9
|
)
|
||||||
Net unrecognized gain on derivatives in net investment hedging relationships
|
18.8
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
(4.0
|
)
|
|
18.8
|
|
||||||
Other comprehensive (loss) earnings, before tax
|
(310.7
|
)
|
|
6.0
|
|
|
—
|
|
|
(331.5
|
)
|
|
325.5
|
|
|
(310.7
|
)
|
||||||
Income tax benefit
|
(19.1
|
)
|
|
(1.6
|
)
|
|
—
|
|
|
(17.5
|
)
|
|
19.1
|
|
|
(19.1
|
)
|
||||||
Other comprehensive (loss) earnings, net of tax
|
(291.6
|
)
|
|
7.6
|
|
|
—
|
|
|
(314.0
|
)
|
|
306.4
|
|
|
(291.6
|
)
|
||||||
Comprehensive (loss) earnings
|
$
|
(114.9
|
)
|
|
$
|
51.2
|
|
|
$
|
—
|
|
|
$
|
2.0
|
|
|
$
|
(53.2
|
)
|
|
$
|
(114.9
|
)
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net earnings (loss)
|
$
|
301.3
|
|
|
$
|
(77.0
|
)
|
|
$
|
—
|
|
|
$
|
657.8
|
|
|
$
|
(580.8
|
)
|
|
$
|
301.3
|
|
Other comprehensive (loss) earnings, before tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
(1,097.6
|
)
|
|
—
|
|
|
—
|
|
|
(1,097.6
|
)
|
|
1,097.6
|
|
|
(1,097.6
|
)
|
||||||
Change in unrecognized (loss) gain and prior service cost related to defined benefit plans
|
(8.3
|
)
|
|
0.2
|
|
|
—
|
|
|
(8.5
|
)
|
|
8.3
|
|
|
(8.3
|
)
|
||||||
Net unrecognized (loss) gain on derivatives in cash flow hedging relationships
|
(146.1
|
)
|
|
5.7
|
|
|
—
|
|
|
(151.8
|
)
|
|
146.1
|
|
|
(146.1
|
)
|
||||||
Net unrecognized gain on derivatives in net investment hedging relationships
|
78.7
|
|
|
4.6
|
|
|
—
|
|
|
—
|
|
|
(4.6
|
)
|
|
78.7
|
|
||||||
Net unrealized loss on marketable securities
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
(0.1
|
)
|
||||||
Other comprehensive (loss) earnings, before tax
|
(1,173.4
|
)
|
|
10.5
|
|
|
—
|
|
|
(1,258.0
|
)
|
|
1,247.5
|
|
|
(1,173.4
|
)
|
||||||
Income tax benefit
|
(51.2
|
)
|
|
(2.4
|
)
|
|
—
|
|
|
(48.8
|
)
|
|
51.2
|
|
|
(51.2
|
)
|
||||||
Other comprehensive (loss) earnings, net of tax
|
(1,122.2
|
)
|
|
12.9
|
|
|
—
|
|
|
(1,209.2
|
)
|
|
1,196.3
|
|
|
(1,122.2
|
)
|
||||||
Comprehensive loss
|
$
|
(820.9
|
)
|
|
$
|
(64.1
|
)
|
|
$
|
—
|
|
|
$
|
(551.4
|
)
|
|
$
|
615.5
|
|
|
$
|
(820.9
|
)
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
4.4
|
|
|
$
|
—
|
|
|
$
|
354.5
|
|
|
$
|
—
|
|
|
$
|
358.9
|
|
Accounts receivable, net
|
—
|
|
|
17.4
|
|
|
—
|
|
|
2,930.6
|
|
|
—
|
|
|
2,948.0
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
—
|
|
|
2,763.5
|
|
|
—
|
|
|
2,763.5
|
|
||||||
Intercompany receivables
|
375.6
|
|
|
592.8
|
|
|
—
|
|
|
12,822.5
|
|
|
(13,790.9
|
)
|
|
—
|
|
||||||
Prepaid expenses and other current assets
|
9.7
|
|
|
109.2
|
|
|
—
|
|
|
455.8
|
|
|
—
|
|
|
574.7
|
|
||||||
Total current assets
|
385.3
|
|
|
723.8
|
|
|
—
|
|
|
19,326.9
|
|
|
(13,790.9
|
)
|
|
6,645.1
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
242.5
|
|
|
—
|
|
|
1,881.4
|
|
|
—
|
|
|
2,123.9
|
|
||||||
Investments in subsidiaries
|
18,278.3
|
|
|
12,844.7
|
|
|
—
|
|
|
—
|
|
|
(31,123.0
|
)
|
|
—
|
|
||||||
Intercompany notes and interest receivable
|
5,255.4
|
|
|
11,083.2
|
|
|
—
|
|
|
3,098.3
|
|
|
(19,436.9
|
)
|
|
—
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
11,824.3
|
|
|
—
|
|
|
11,824.3
|
|
||||||
Goodwill
|
—
|
|
|
17.1
|
|
|
—
|
|
|
9,370.0
|
|
|
—
|
|
|
9,387.1
|
|
||||||
Other assets
|
0.3
|
|
|
104.3
|
|
|
—
|
|
|
968.5
|
|
|
—
|
|
|
1,073.1
|
|
||||||
Total assets
|
$
|
23,919.3
|
|
|
$
|
25,015.6
|
|
|
$
|
—
|
|
|
$
|
46,469.4
|
|
|
$
|
(64,350.8
|
)
|
|
$
|
31,053.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
76.1
|
|
|
$
|
—
|
|
|
$
|
1,435.2
|
|
|
$
|
—
|
|
|
$
|
1,511.3
|
|
Short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Income taxes payable
|
—
|
|
|
9.5
|
|
|
—
|
|
|
143.7
|
|
|
—
|
|
|
153.2
|
|
||||||
Current portion of long-term debt and other long-term obligations
|
544.4
|
|
|
0.2
|
|
|
—
|
|
|
60.7
|
|
|
—
|
|
|
605.3
|
|
||||||
Intercompany payables
|
1,569.3
|
|
|
12,201.6
|
|
|
—
|
|
|
20.0
|
|
|
(13,790.9
|
)
|
|
—
|
|
||||||
Other current liabilities
|
152.2
|
|
|
296.7
|
|
|
—
|
|
|
1,926.3
|
|
|
—
|
|
|
2,375.2
|
|
||||||
Total current liabilities
|
2,265.9
|
|
|
12,584.1
|
|
|
—
|
|
|
3,585.9
|
|
|
(13,790.9
|
)
|
|
4,645.0
|
|
||||||
Long-term debt
|
8,665.9
|
|
|
3,785.4
|
|
|
—
|
|
|
9.2
|
|
|
—
|
|
|
12,460.5
|
|
||||||
Intercompany notes payable
|
1,524.1
|
|
|
3,369.3
|
|
|
—
|
|
|
14,543.5
|
|
|
(19,436.9
|
)
|
|
—
|
|
||||||
Other long-term obligations
|
—
|
|
|
64.5
|
|
|
—
|
|
|
2,420.1
|
|
|
—
|
|
|
2,484.6
|
|
||||||
Total liabilities
|
12,455.9
|
|
|
19,803.3
|
|
|
—
|
|
|
20,558.7
|
|
|
(33,227.8
|
)
|
|
19,590.1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total equity
|
11,463.4
|
|
|
5,212.3
|
|
|
—
|
|
|
25,910.7
|
|
|
(31,123.0
|
)
|
|
11,463.4
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
$
|
23,919.3
|
|
|
$
|
25,015.6
|
|
|
$
|
—
|
|
|
$
|
46,469.4
|
|
|
$
|
(64,350.8
|
)
|
|
$
|
31,053.5
|
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
18.2
|
|
|
$
|
—
|
|
|
$
|
369.9
|
|
|
$
|
—
|
|
|
$
|
388.1
|
|
Accounts receivable, net
|
—
|
|
|
24.3
|
|
|
—
|
|
|
2,856.7
|
|
|
—
|
|
|
2,881.0
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
—
|
|
|
2,580.2
|
|
|
—
|
|
|
2,580.2
|
|
||||||
Intercompany receivables
|
342.9
|
|
|
518.7
|
|
|
—
|
|
|
13,107.1
|
|
|
(13,968.7
|
)
|
|
—
|
|
||||||
Prepaid expenses and other current assets
|
5.6
|
|
|
71.3
|
|
|
—
|
|
|
441.5
|
|
|
—
|
|
|
518.4
|
|
||||||
Total current assets
|
348.5
|
|
|
632.5
|
|
|
—
|
|
|
19,355.4
|
|
|
(13,968.7
|
)
|
|
6,367.7
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
259.7
|
|
|
—
|
|
|
1,910.5
|
|
|
—
|
|
|
2,170.2
|
|
||||||
Investments in subsidiaries
|
18,995.9
|
|
|
13,129.5
|
|
|
—
|
|
|
—
|
|
|
(32,125.4
|
)
|
|
—
|
|
||||||
Intercompany notes and interest receivable
|
6,287.4
|
|
|
10,732.6
|
|
|
—
|
|
|
2,519.8
|
|
|
(19,539.8
|
)
|
|
—
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
13,664.6
|
|
|
—
|
|
|
13,664.6
|
|
||||||
Goodwill
|
—
|
|
|
17.1
|
|
|
—
|
|
|
9,730.7
|
|
|
—
|
|
|
9,747.8
|
|
||||||
Other assets
|
0.3
|
|
|
68.9
|
|
|
—
|
|
|
715.4
|
|
|
—
|
|
|
784.6
|
|
||||||
Total assets
|
$
|
25,632.1
|
|
|
$
|
24,840.3
|
|
|
$
|
—
|
|
|
$
|
47,896.4
|
|
|
$
|
(65,633.9
|
)
|
|
$
|
32,734.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
70.6
|
|
|
$
|
—
|
|
|
$
|
1,546.4
|
|
|
$
|
—
|
|
|
$
|
1,617.0
|
|
Short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
||||||
Income taxes payable
|
—
|
|
|
—
|
|
|
—
|
|
|
121.5
|
|
|
—
|
|
|
121.5
|
|
||||||
Current portion of long-term debt and other long-term obligations
|
649.0
|
|
|
0.2
|
|
|
—
|
|
|
50.6
|
|
|
—
|
|
|
699.8
|
|
||||||
Intercompany payables
|
1,618.8
|
|
|
12,326.4
|
|
|
—
|
|
|
23.5
|
|
|
(13,968.7
|
)
|
|
—
|
|
||||||
Other current liabilities
|
21.0
|
|
|
216.0
|
|
|
—
|
|
|
1,910.6
|
|
|
—
|
|
|
2,147.6
|
|
||||||
Total current liabilities
|
2,288.8
|
|
|
12,613.2
|
|
|
—
|
|
|
3,654.5
|
|
|
(13,968.7
|
)
|
|
4,587.8
|
|
||||||
Long-term debt
|
9,370.1
|
|
|
3,786.2
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
|
13,161.2
|
|
||||||
Intercompany notes payable
|
1,806.1
|
|
|
3,094.2
|
|
|
—
|
|
|
14,639.5
|
|
|
(19,539.8
|
)
|
|
—
|
|
||||||
Other long-term obligations
|
—
|
|
|
48.6
|
|
|
—
|
|
|
2,770.2
|
|
|
—
|
|
|
2,818.8
|
|
||||||
Total liabilities
|
13,465.0
|
|
|
19,542.2
|
|
|
—
|
|
|
21,069.1
|
|
|
(33,508.5
|
)
|
|
20,567.8
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total equity
|
12,167.1
|
|
|
5,298.1
|
|
|
—
|
|
|
26,827.3
|
|
|
(32,125.4
|
)
|
|
12,167.1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
$
|
25,632.1
|
|
|
$
|
24,840.3
|
|
|
$
|
—
|
|
|
$
|
47,896.4
|
|
|
$
|
(65,633.9
|
)
|
|
$
|
32,734.9
|
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash (used in) provided by operating activities
|
$
|
(233.8
|
)
|
|
$
|
(451.7
|
)
|
|
$
|
—
|
|
|
$
|
1,802.5
|
|
|
$
|
—
|
|
|
$
|
1,117.0
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
(25.4
|
)
|
|
—
|
|
|
(114.2
|
)
|
|
—
|
|
|
(139.6
|
)
|
||||||
Purchase of available for sale securities and other investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(19.5
|
)
|
|
—
|
|
|
(19.5
|
)
|
||||||
Proceeds from the sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
24.3
|
|
|
—
|
|
|
24.3
|
|
||||||
Proceeds from the sale of marketable securities
|
—
|
|
|
—
|
|
|
—
|
|
|
19.1
|
|
|
—
|
|
|
19.1
|
|
||||||
Cash paid for acquisitions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(148.7
|
)
|
|
—
|
|
|
(148.7
|
)
|
||||||
Investments in affiliates
|
—
|
|
|
(18.6
|
)
|
|
—
|
|
|
—
|
|
|
18.6
|
|
|
—
|
|
||||||
Dividends from affiliates
|
76.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76.7
|
)
|
|
—
|
|
||||||
Loans to affiliates
|
(185.7
|
)
|
|
—
|
|
|
—
|
|
|
(3,569.1
|
)
|
|
3,754.8
|
|
|
—
|
|
||||||
Repayments of loans from affiliates
|
1,288.4
|
|
|
—
|
|
|
—
|
|
|
2,669.7
|
|
|
(3,958.1
|
)
|
|
—
|
|
||||||
Payments for product rights and other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(146.5
|
)
|
|
—
|
|
|
(146.5
|
)
|
||||||
Net cash provided by (used in) investing activities
|
1,179.4
|
|
|
(44.0
|
)
|
|
—
|
|
|
(1,284.9
|
)
|
|
(261.4
|
)
|
|
(410.9
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payments of financing fees
|
(0.5
|
)
|
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
||||||
Change in short-term borrowings, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|
—
|
|
|
(1.9
|
)
|
||||||
Proceeds from issuance of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
6.4
|
|
|
—
|
|
|
6.4
|
|
||||||
Payments of long-term debt
|
(650.0
|
)
|
|
—
|
|
|
—
|
|
|
(7.1
|
)
|
|
—
|
|
|
(657.1
|
)
|
||||||
Proceeds from exercise of stock options
|
8.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.0
|
|
||||||
Taxes paid related to net share settlement of equity awards
|
(8.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.4
|
)
|
||||||
Contingent consideration payments
|
—
|
|
|
—
|
|
|
—
|
|
|
(47.8
|
)
|
|
—
|
|
|
(47.8
|
)
|
||||||
Capital contribution from affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
18.6
|
|
|
(18.6
|
)
|
|
—
|
|
||||||
Capital payments to affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(76.7
|
)
|
|
76.7
|
|
|
—
|
|
||||||
Payments on borrowings from affiliates
|
(1,052.6
|
)
|
|
(2,399.1
|
)
|
|
—
|
|
|
(506.4
|
)
|
|
3,958.1
|
|
|
—
|
|
||||||
Proceeds from borrowings from affiliates
|
757.9
|
|
|
2,883.2
|
|
|
—
|
|
|
113.7
|
|
|
(3,754.8
|
)
|
|
—
|
|
||||||
Other items, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
||||||
Net cash (used in) provided by financing activities
|
(945.6
|
)
|
|
481.9
|
|
|
—
|
|
|
(502.3
|
)
|
|
261.4
|
|
|
(704.6
|
)
|
||||||
Effect on cash of changes in exchange rates
|
—
|
|
|
—
|
|
|
—
|
|
|
(16.4
|
)
|
|
—
|
|
|
(16.4
|
)
|
||||||
Net decrease in cash, cash equivalents and restricted cash
|
—
|
|
|
(13.8
|
)
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
(14.9
|
)
|
||||||
Cash, cash equivalents and restricted cash — beginning of period
|
—
|
|
|
18.2
|
|
|
—
|
|
|
371.1
|
|
|
—
|
|
|
389.3
|
|
||||||
Cash, cash equivalents and restricted cash — end of period
|
$
|
—
|
|
|
$
|
4.4
|
|
|
$
|
—
|
|
|
$
|
370.0
|
|
|
$
|
—
|
|
|
$
|
374.4
|
|
(In millions)
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash (used in) provided by operating activities
|
$
|
(68.6
|
)
|
|
$
|
(1,201.6
|
)
|
|
$
|
—
|
|
|
$
|
2,975.8
|
|
|
$
|
—
|
|
|
$
|
1,705.6
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
(17.8
|
)
|
|
—
|
|
|
(119.6
|
)
|
|
—
|
|
|
(137.4
|
)
|
||||||
Purchase of available for sale securities and other investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(49.4
|
)
|
|
—
|
|
|
(49.4
|
)
|
||||||
Proceeds from the sale of marketable securities
|
—
|
|
|
36.3
|
|
|
—
|
|
|
35.8
|
|
|
—
|
|
|
72.1
|
|
||||||
Cash paid for acquisitions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(307.1
|
)
|
|
—
|
|
|
(307.1
|
)
|
||||||
Investments in affiliates
|
—
|
|
|
(22.0
|
)
|
|
—
|
|
|
—
|
|
|
22.0
|
|
|
—
|
|
||||||
Dividends from affiliates
|
65.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65.3
|
)
|
|
—
|
|
||||||
Loans to affiliates
|
(470.6
|
)
|
|
—
|
|
|
—
|
|
|
(4,577.1
|
)
|
|
5,047.7
|
|
|
—
|
|
||||||
Repayments of loans from affiliates
|
1,810.8
|
|
|
—
|
|
|
—
|
|
|
3,205.0
|
|
|
(5,015.8
|
)
|
|
—
|
|
||||||
Payments for product rights and other, net
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(612.6
|
)
|
|
—
|
|
|
(613.0
|
)
|
||||||
Net cash provided by (used in) investing activities
|
1,405.5
|
|
|
(3.9
|
)
|
|
—
|
|
|
(2,425.0
|
)
|
|
(11.4
|
)
|
|
(1,034.8
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payments of financing fees
|
(0.5
|
)
|
|
(20.2
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(20.8
|
)
|
||||||
Purchase of ordinary shares
|
(432.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(432.0
|
)
|
||||||
Change in short-term borrowings, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(45.9
|
)
|
|
—
|
|
|
(45.9
|
)
|
||||||
Proceeds from issuance of long-term debt
|
496.5
|
|
|
2,079.2
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
2,577.7
|
|
||||||
Payments of long-term debt
|
(1,446.5
|
)
|
|
(1,150.0
|
)
|
|
—
|
|
|
(2.1
|
)
|
|
—
|
|
|
(2,598.6
|
)
|
||||||
Proceeds from exercise of stock options
|
15.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.6
|
|
||||||
Taxes paid related to net share settlement of equity awards
|
(10.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.1
|
)
|
||||||
Contingent consideration payments
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
||||||
Capital contribution from affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
22.0
|
|
|
(22.0
|
)
|
|
—
|
|
||||||
Capital payments to affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(65.3
|
)
|
|
65.3
|
|
|
—
|
|
||||||
Payments on borrowings from affiliates
|
(1,273.9
|
)
|
|
(3,010.1
|
)
|
|
—
|
|
|
(731.8
|
)
|
|
5,015.8
|
|
|
—
|
|
||||||
Proceeds from borrowings from affiliates
|
1,314.0
|
|
|
3,309.9
|
|
|
—
|
|
|
423.8
|
|
|
(5,047.7
|
)
|
|
—
|
|
||||||
Other items, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
||||||
Net cash (used in) provided by financing activities
|
(1,336.9
|
)
|
|
1,208.8
|
|
|
—
|
|
|
(398.0
|
)
|
|
11.4
|
|
|
(514.7
|
)
|
||||||
Effect on cash of changes in exchange rates
|
—
|
|
|
—
|
|
|
—
|
|
|
(22.9
|
)
|
|
—
|
|
|
(22.9
|
)
|
||||||
Net increase in cash, cash equivalents and restricted cash
|
—
|
|
|
3.3
|
|
|
—
|
|
|
129.9
|
|
|
—
|
|
|
133.2
|
|
||||||
Cash, cash equivalents and restricted cash — beginning of period
|
—
|
|
|
23.8
|
|
|
—
|
|
|
346.1
|
|
|
—
|
|
|
369.9
|
|
||||||
Cash, cash equivalents and restricted cash — end of period
|
$
|
—
|
|
|
$
|
27.1
|
|
|
$
|
—
|
|
|
$
|
476.0
|
|
|
$
|
—
|
|
|
$
|
503.1
|
|
|
September 30, 2019
|
||||||||||||||||||||||
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
4.4
|
|
|
$
|
—
|
|
|
$
|
354.5
|
|
|
$
|
—
|
|
|
$
|
358.9
|
|
Restricted cash, included in prepaid expenses and other current assets
|
—
|
|
|
—
|
|
|
—
|
|
|
15.5
|
|
|
—
|
|
|
15.5
|
|
||||||
Cash, cash equivalents and restricted cash
|
$
|
—
|
|
|
$
|
4.4
|
|
|
$
|
—
|
|
|
$
|
370.0
|
|
|
$
|
—
|
|
|
$
|
374.4
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
18.2
|
|
|
$
|
—
|
|
|
$
|
369.9
|
|
|
$
|
—
|
|
|
$
|
388.1
|
|
Restricted cash, included in prepaid expenses and other current assets
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
||||||
Cash, cash equivalents and restricted cash
|
$
|
—
|
|
|
$
|
18.2
|
|
|
$
|
—
|
|
|
$
|
371.1
|
|
|
$
|
—
|
|
|
$
|
389.3
|
|
|
September 30, 2018
|
||||||||||||||||||||||
|
Mylan N.V.
|
|
Mylan Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
27.1
|
|
|
$
|
—
|
|
|
$
|
422.1
|
|
|
$
|
—
|
|
|
$
|
449.2
|
|
Restricted cash, included in prepaid expenses and other current assets
|
—
|
|
|
—
|
|
|
—
|
|
|
53.9
|
|
|
—
|
|
|
53.9
|
|
||||||
Cash, cash equivalents and restricted cash
|
$
|
—
|
|
|
$
|
27.1
|
|
|
$
|
—
|
|
|
$
|
476.0
|
|
|
$
|
—
|
|
|
$
|
503.1
|
|
17.
|
Restructuring
|
(In millions)
|
Employee Related Costs
|
|
Other Exit Costs
|
|
Total
|
||||||
Balance at December 31, 2018:
|
$
|
60.8
|
|
|
$
|
11.8
|
|
|
$
|
72.6
|
|
Charges (1)
|
1.8
|
|
|
18.1
|
|
|
19.9
|
|
|||
Reclassification due to new leasing standard
|
—
|
|
|
(8.1
|
)
|
|
(8.1
|
)
|
|||
Cash payment
|
(26.4
|
)
|
|
(1.4
|
)
|
|
(27.8
|
)
|
|||
Utilization
|
—
|
|
|
(16.7
|
)
|
|
(16.7
|
)
|
|||
Foreign currency translation
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
|||
Balance at March 31, 2019:
|
$
|
35.1
|
|
|
$
|
3.7
|
|
|
$
|
38.8
|
|
Charges (1)
|
10.0
|
|
|
47.6
|
|
|
57.6
|
|
|||
Cash payment
|
(8.4
|
)
|
|
(3.2
|
)
|
|
(11.6
|
)
|
|||
Utilization
|
—
|
|
|
(44.5
|
)
|
|
(44.5
|
)
|
|||
Foreign currency translation
|
0.6
|
|
|
(0.1
|
)
|
|
0.5
|
|
|||
Balance at June 30, 2019:
|
$
|
37.3
|
|
|
$
|
3.5
|
|
|
$
|
40.8
|
|
Charges (1)
|
4.1
|
|
|
(3.3
|
)
|
|
0.8
|
|
|||
Cash payment
|
(8.0
|
)
|
|
(4.0
|
)
|
|
(12.0
|
)
|
|||
Utilization
|
—
|
|
|
7.0
|
|
|
7.0
|
|
|||
Foreign currency translation
|
(1.9
|
)
|
|
—
|
|
|
(1.9
|
)
|
|||
Balance at September 30, 2019:
|
$
|
31.5
|
|
|
$
|
3.2
|
|
|
$
|
34.7
|
|
(1)
|
For the three months ended September 30, 2019, total restructuring charges/(gains) in North America, Europe and Rest of World were approximately $9.3 million, $(9.2) million and $0.7 million, respectively. For the nine months ended September 30, 2019, total restructuring charges in North America, Europe and Rest of World were approximately $66.0 million, $9.3 million and $3.0 million, respectively.
|
18.
|
Collaboration and Licensing Agreements
|
19.
|
Income Taxes
|
20.
|
Litigation
|
|
Three Months Ended
|
|||||||||||||
|
September 30,
|
|||||||||||||
(In millions, except per share amounts)
|
2019
|
|
2018
|
|
Change
|
|
% Change
|
|||||||
Total revenues
|
$
|
2,961.7
|
|
|
$
|
2,862.4
|
|
|
$
|
99.3
|
|
|
3
|
%
|
Gross profit
|
1,072.4
|
|
|
1,039.2
|
|
|
33.2
|
|
|
3
|
%
|
|||
Earnings from operations
|
323.7
|
|
|
338.2
|
|
|
(14.5
|
)
|
|
(4
|
)%
|
|||
Net earnings
|
189.8
|
|
|
176.7
|
|
|
13.1
|
|
|
7
|
%
|
|||
Net earnings per diluted ordinary share
|
$
|
0.37
|
|
|
$
|
0.34
|
|
|
$
|
0.03
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|||||||
|
Nine Months Ended
|
|||||||||||||
|
September 30,
|
|||||||||||||
(In millions, except per share amounts)
|
2019
|
|
2018
|
|
Change
|
|
% Change
|
|||||||
Total revenues
|
$
|
8,308.7
|
|
|
$
|
8,355.2
|
|
|
$
|
(46.5
|
)
|
|
(1
|
)%
|
Gross profit
|
2,810.2
|
|
|
2,986.0
|
|
|
(175.8
|
)
|
|
(6
|
)%
|
|||
Earnings from operations
|
443.2
|
|
|
672.8
|
|
|
(229.6
|
)
|
|
(34
|
)%
|
|||
Net (loss) earnings
|
(3.7
|
)
|
|
301.3
|
|
|
(305.0
|
)
|
|
(101
|
)%
|
|||
Net (loss) earnings per diluted ordinary share
|
$
|
(0.01
|
)
|
|
$
|
0.58
|
|
|
$
|
(0.59
|
)
|
|
(102
|
)%
|
|
Three Months Ended
|
||||||||||||||||||||
|
September 30,
|
||||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
% Change
|
|
2019 Currency Impact (1)
|
|
2019 Constant Currency Revenues
|
|
Constant Currency % Change (2)
|
||||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
$
|
1,088.6
|
|
|
$
|
1,012.3
|
|
|
8
|
%
|
|
$
|
0.7
|
|
|
$
|
1,089.3
|
|
|
8
|
%
|
Europe
|
1,045.9
|
|
|
1,041.3
|
|
|
—
|
%
|
|
53.3
|
|
|
1,099.2
|
|
|
6
|
%
|
||||
Rest of World
|
793.7
|
|
|
773.7
|
|
|
3
|
%
|
|
8.0
|
|
|
801.7
|
|
|
4
|
%
|
||||
Total net sales
|
2,928.2
|
|
|
2,827.3
|
|
|
4
|
%
|
|
$
|
62.0
|
|
|
$
|
2,990.2
|
|
|
6
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other revenues (3)
|
33.5
|
|
|
35.1
|
|
|
(5
|
)%
|
|
0.4
|
|
|
33.9
|
|
|
(3
|
)%
|
||||
Consolidated total revenues (4)
|
$
|
2,961.7
|
|
|
$
|
2,862.4
|
|
|
3
|
%
|
|
$
|
62.4
|
|
|
$
|
3,024.1
|
|
|
6
|
%
|
(1)
|
Currency impact is shown as unfavorable (favorable).
|
(2)
|
The constant currency percentage change is derived by translating net sales or revenues for the current period at prior year comparative period exchange rates, and in doing so shows the percentage change from 2019 constant currency net sales or revenues to the corresponding amount in the prior year.
|
(3)
|
For the three months ended September 30, 2019, other revenues in North America, Europe, and Rest of World were approximately $17.6 million, $3.8 million, and $12.1 million, respectively.
|
(4)
|
Amounts exclude intersegment revenue that eliminates on a consolidated basis.
|
|
Three Months Ended
|
||||||
|
September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
U.S. GAAP cost of sales
|
$
|
1,889.3
|
|
|
$
|
1,823.2
|
|
Deduct:
|
|
|
|
||||
Purchase accounting amortization and other related items
|
(408.6
|
)
|
|
(426.9
|
)
|
||
Acquisition related items
|
(0.8
|
)
|
|
(1.4
|
)
|
||
Restructuring and related costs
|
(11.4
|
)
|
|
(51.8
|
)
|
||
Share-based compensation expense
|
(0.3
|
)
|
|
—
|
|
||
Other special items
|
(70.9
|
)
|
|
(65.4
|
)
|
||
Adjusted cost of sales
|
$
|
1,397.3
|
|
|
$
|
1,277.7
|
|
|
|
|
|
||||
Adjusted gross profit (a)
|
$
|
1,564.4
|
|
|
$
|
1,584.7
|
|
|
|
|
|
||||
Adjusted gross margin (a)
|
53
|
%
|
|
55
|
%
|
(a)
|
Adjusted gross profit is calculated as total revenues less adjusted cost of sales. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues.
|
|
Three Months Ended
|
||||||
|
September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Respiratory delivery platform contingent consideration adjustment
|
$
|
—
|
|
|
$
|
(19.3
|
)
|
Litigation settlements, net
|
(51.9
|
)
|
|
(1.1
|
)
|
||
Total litigation settlements and other contingencies, net
|
$
|
(51.9
|
)
|
|
$
|
(20.4
|
)
|
|
Three Months Ended
|
||||||
|
September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Losses from equity affiliates, primarily clean energy investments
|
$
|
10.4
|
|
|
$
|
12.6
|
|
Foreign exchange (gains) losses, net
|
(0.4
|
)
|
|
1.6
|
|
||
Other gains
|
(1.0
|
)
|
|
(4.4
|
)
|
||
Other expense, net
|
$
|
9.0
|
|
|
$
|
9.8
|
|
|
Nine Months Ended
|
||||||||||||||||||||
|
September 30,
|
||||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
% Change
|
|
2019 Currency Impact (1)
|
|
2019 Constant Currency Revenues
|
|
Constant Currency % Change (2)
|
||||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
$
|
3,035.0
|
|
|
$
|
2,998.4
|
|
|
1
|
%
|
|
$
|
5.5
|
|
|
$
|
3,040.5
|
|
|
1
|
%
|
Europe
|
2,930.7
|
|
|
3,070.3
|
|
|
(5
|
)%
|
|
190.4
|
|
|
3,121.1
|
|
|
2
|
%
|
||||
Rest of World
|
2,241.3
|
|
|
2,164.5
|
|
|
4
|
%
|
|
91.7
|
|
|
2,333.0
|
|
|
8
|
%
|
||||
Total net sales
|
8,207.0
|
|
|
8,233.2
|
|
|
—
|
%
|
|
287.6
|
|
|
8,494.6
|
|
|
3
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other revenues (3)
|
101.7
|
|
|
122.0
|
|
|
(17
|
)%
|
|
2.0
|
|
|
103.7
|
|
|
(15
|
)%
|
||||
Consolidated total revenues (4)
|
$
|
8,308.7
|
|
|
$
|
8,355.2
|
|
|
(1
|
)%
|
|
$
|
289.6
|
|
|
$
|
8,598.3
|
|
|
3
|
%
|
(1)
|
Currency impact is shown as unfavorable (favorable).
|
(2)
|
The constant currency percentage change is derived by translating net sales or revenues for the current period at prior year comparative period exchange rates, and in doing so shows the percentage change from 2019 constant currency net sales or revenues to the corresponding amount in the prior year.
|
(3)
|
For the nine months ended September 30, 2019, other revenues in North America, Europe, and Rest of World were approximately $58.8 million, $12.3 million, and $30.6 million, respectively.
|
(4)
|
Amounts exclude intersegment revenue that eliminates on a consolidated basis.
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
U.S. GAAP cost of sales
|
$
|
5,498.5
|
|
|
$
|
5,369.2
|
|
Deduct:
|
|
|
|
||||
Purchase accounting amortization and other related items
|
(1,284.0
|
)
|
|
(1,275.2
|
)
|
||
Acquisition related items
|
(2.9
|
)
|
|
(2.4
|
)
|
||
Restructuring and related costs
|
(72.2
|
)
|
|
(97.2
|
)
|
||
Share-based compensation expense
|
(0.8
|
)
|
|
—
|
|
||
Other special items
|
(268.1
|
)
|
|
(139.4
|
)
|
||
Adjusted cost of sales
|
$
|
3,870.5
|
|
|
$
|
3,855.0
|
|
|
|
|
|
||||
Adjusted gross profit (a)
|
$
|
4,438.2
|
|
|
$
|
4,500.2
|
|
|
|
|
|
||||
Adjusted gross margin (a)
|
53
|
%
|
|
54
|
%
|
(a)
|
Adjusted gross profit is calculated as total revenues less adjusted cost of sales. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues.
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Respiratory delivery platform contingent consideration adjustment
|
$
|
(28.9
|
)
|
|
$
|
(49.3
|
)
|
Litigation settlements, net
|
(1.4
|
)
|
|
(1.3
|
)
|
||
Total litigation settlements and other contingencies, net
|
$
|
(30.3
|
)
|
|
$
|
(50.6
|
)
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Losses from equity affiliates, primarily clean energy investments
|
$
|
43.6
|
|
|
$
|
58.6
|
|
Foreign exchange gains, net
|
(4.4
|
)
|
|
(16.0
|
)
|
||
Other (gains)/losses, net
|
(6.5
|
)
|
|
1.7
|
|
||
Other expense, net
|
$
|
32.7
|
|
|
$
|
44.3
|
|
•
|
Costs related to formal restructuring programs and actions, including costs associated with facilities to be closed or divested, employee separation costs, impairment charges, accelerated depreciation, incremental manufacturing variances, equipment relocation costs and other restructuring related costs;
|
•
|
Certain acquisition related remediation and integration and planning costs, as well as other costs associated with acquisitions such as advisory and legal fees and certain financing related costs, and other business transformation and/or optimization initiatives, which are not part of a formal restructuring program, including employee separation and post-employment costs;
|
•
|
The pre-tax loss of the Company’s clean energy investments, whose activities qualify for income tax credits under the U.S. Internal Revenue Code of 1986, as amended; only included in adjusted net earnings and adjusted EPS is the net tax effect of the entity’s activities;
|
•
|
The pre-tax mark-to-market gains and losses of the Company’s investments in marketable equity securities historically accounted for as available for sale securities; only included in adjusted net earnings and adjusted EPS are cumulative realized gains and losses;
|
•
|
Other costs, incurred from time to time, related to certain special events or activities that lead to gains or losses, including, but not limited to, incremental manufacturing variances, asset write-downs, or liability adjustments;
|
•
|
Certain costs to further develop and optimize our global enterprise resource planning systems, operations and supply chain; and
|
•
|
The impact of changes related to uncertain tax positions is excluded from adjusted net earnings. In addition, tax adjustments to adjusted earnings are recorded to present items on an after-tax basis consistent with the presentation of adjusted net earnings and adjusted EPS.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||
(In millions, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||||||
U.S. GAAP net earnings (loss) and U.S. GAAP EPS
|
$
|
189.8
|
|
|
$
|
0.37
|
|
|
$
|
176.7
|
|
|
$
|
0.34
|
|
|
$
|
(3.7
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
301.3
|
|
|
$
|
0.58
|
|
Purchase accounting related amortization (primarily included in cost of sales)
|
408.5
|
|
|
|
|
428.7
|
|
|
|
|
1,283.9
|
|
|
|
|
1,282.4
|
|
|
|
||||||||||||
Litigation settlements and other contingencies, net
|
(51.9
|
)
|
|
|
|
(20.4
|
)
|
|
|
|
(30.3
|
)
|
|
|
|
(50.6
|
)
|
|
|
||||||||||||
Interest expense (primarily clean energy investment financing and accretion of contingent consideration)
|
6.6
|
|
|
|
|
12.1
|
|
|
|
|
20.8
|
|
|
|
|
31.0
|
|
|
|
||||||||||||
Clean energy investments pre-tax loss
|
10.4
|
|
|
|
|
12.6
|
|
|
|
|
43.6
|
|
|
|
|
58.6
|
|
|
|
||||||||||||
Acquisition related costs (primarily included in SG&A) (a)
|
43.0
|
|
|
|
|
4.9
|
|
|
|
|
56.6
|
|
|
|
|
17.4
|
|
|
|
||||||||||||
Restructuring related costs (b)
|
0.8
|
|
|
|
|
80.8
|
|
|
|
|
78.3
|
|
|
|
|
202.3
|
|
|
|
||||||||||||
Share-based compensation expense (c)
|
16.1
|
|
|
|
|
—
|
|
|
|
|
50.9
|
|
|
|
|
—
|
|
|
|
||||||||||||
Other special items included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cost of sales (d)
|
70.9
|
|
|
|
|
65.4
|
|
|
|
|
268.1
|
|
|
|
|
139.4
|
|
|
|
||||||||||||
Research and development expense (e)
|
40.3
|
|
|
|
|
3.2
|
|
|
|
|
100.5
|
|
|
|
|
100.3
|
|
|
|
||||||||||||
Selling, general and administrative expense
|
8.4
|
|
|
|
|
(0.7
|
)
|
|
|
|
33.1
|
|
|
|
|
33.2
|
|
|
|
||||||||||||
Other expense, net (f)
|
—
|
|
|
|
|
1.3
|
|
|
|
|
—
|
|
|
|
|
25.5
|
|
|
|
||||||||||||
Tax effect of the above items and other income tax related items (g)
|
(138.5
|
)
|
|
|
|
(116.6
|
)
|
|
|
|
(342.7
|
)
|
|
|
|
(445.7
|
)
|
|
|
||||||||||||
Adjusted net earnings and adjusted EPS
|
$
|
604.4
|
|
|
$
|
1.17
|
|
|
$
|
648.0
|
|
|
$
|
1.25
|
|
|
$
|
1,559.1
|
|
|
$
|
3.02
|
|
|
$
|
1,695.1
|
|
|
$
|
3.28
|
|
Weighted average diluted ordinary shares outstanding
|
516.2
|
|
|
|
|
516.5
|
|
|
|
|
516.4
|
|
|
|
|
516.5
|
|
|
|
(a)
|
Acquisition related costs consist primarily of transaction costs including legal and consulting fees and integration activities. The increase for the three and nine months ended September 30, 2019 relates to transaction costs for the pending Upjohn transaction.
|
(b)
|
For the three months ended September 30, 2019, charges of approximately $11.4 million are included in cost of sales and a net gain of $10.5 million is included in SG&A. For the nine months ended September 30, 2019, charges of approximately $72.2 million are included in cost of sales and net charges of approximately $6.1 million are included in SG&A. Refer to Note 17 Restructuring included in Part I, Item 1 of this Form 10-Q for additional information.
|
(c)
|
Beginning in 2019, share-based compensation expense is excluded from adjusted net earnings and adjusted EPS. The full year impact for the year ended December 31, 2018 was insignificant. As such, the three and nine months ended September 30, 2018 amounts were not added back to U.S. GAAP net earnings.
|
(d)
|
Costs incurred during the three months ended September 30, 2019 primarily relate to incremental manufacturing variances and site remediation activities as a result of the activities at the Company’s Morgantown plant of approximately $50.0 million. The nine months ended September 30, 2019 increased $128.7 million primarily due to $54.4 million for certain incremental manufacturing variances and site remediation activities as a result of the activities at the Company’s Morgantown plant, approximately $35.1 million for product recall costs, including inventory write-offs, and charges
|
(e)
|
R&D expense for the three months ended September 30, 2019 consists primarily of expenses for product development arrangements of approximately $39.8 million. Refer to Note 4 Acquisitions and Other Transactions included in Part I, Item 1 of this Form 10-Q for additional information. R&D expense for the three months ended September 30, 2018 includes expenses relating to on-going collaboration agreements, including Momenta Pharmaceuticals, Inc.
|
(f)
|
The 2018 amount primarily related to mark-to-market losses of investments in equity securities historically accounted for as available-for-sale securities and the cumulative realized gains on such investments.
|
(g)
|
The impact of changes related to uncertain tax positions is excluded from adjusted earnings.
|
•
|
a decrease in net earnings of approximately $305.0 million, principally as a result of a decrease in earnings from operations;
|
•
|
a net decrease in non-cash expenses of $52.7 million;
|
•
|
a net decrease in the amount of cash provided by accounts receivable of $282.9 million, reflecting the timing of sales and cash collections;
|
•
|
a net increase in the amount of cash used through changes in trade accounts payable of $69.1 million as a result of the timing of cash payments; and
|
•
|
a net increase of $52.1 million in the amount of cash used through changes in inventory balances.
|
•
|
a net increase in the amount of cash provided by changes in other operating assets and liabilities of $136.0 million; and
|
•
|
a net decrease in the amount of cash used through changes in income taxes of $37.2 million as a result of the level and timing of estimated tax payments made during the current period.
|
•
|
cash paid for acquisitions, net totaling approximately $148.7 million primarily related to the deferred non-contingent purchase payments due to Novartis AG for the purchase of the worldwide rights to the TOBI Podhaler® and TOBI® solution global cystic fibrosis products;
|
•
|
payments for product rights and other, net totaling approximately $146.5 million primarily related to the acquisitions of intellectual property rights and marketing authorizations;
|
•
|
proceeds from the sale of assets of $24.3 million; and
|
•
|
capital expenditures, primarily for equipment and facilities, totaling approximately $139.6 million. While there can be no assurance that current expectations will be realized, capital expenditures for the 2019 calendar year are expected to be approximately $200 million to $300 million.
|
•
|
cash paid for acquisitions, net totaling approximately $307.1 million related to deferred non-contingent purchase price payments for the acquisition of Apicore, Inc. and the purchase of the worldwide rights to the TOBI Podhaler® and TOBI® solution;
|
•
|
payments for product rights and other, net totaling approximately $613.0 million, which included payments of approximately $576 million related to commercialized product rights, primarily related to Betadine in certain European markets and other products in certain rest of world markets; and
|
•
|
capital expenditures, primarily for equipment and facilities, totaling approximately $137.4 million.
|
•
|
long-term debt payments of approximately $657.1 million consisting primarily of the redemption of $550.0 million principal amount of 2.500% Senior Notes due 2019 and repayment of the remaining approximately $100.0 million balance of the 2016 Term Facility (as defined in Note 13 Debt in Part I, Item 1 of this Form 10-Q);
|
•
|
payments totaling approximately $47.8 million (of the $79.0 million) in milestone payments related to Pfizer Inc.’s proprietary dry powder inhaler delivery platform (“the respiratory delivery platform”) contingent consideration. The remaining payments related to the respiratory delivery platform contingent consideration are included as a component of other operating assets and liabilities, net within net cash from operating activities; and
|
•
|
a net decrease in short-term borrowings of $1.9 million.
|
•
|
the Company repurchased 9.8 million ordinary shares at a cost of approximately $432.0 million completing the previously authorized share repurchase program;
|
•
|
long-term debt proceeds of approximately $2.58 billion primarily related to borrowings of approximately $496.5 million under the 2016 Revolving Facility, proceeds from the April 2018 Senior Notes offering of approximately $1.50 billion and proceeds from the May 2018 Euro Senior Notes offering of approximately €500.0 million;
|
•
|
long-term debt payments of approximately $2.60 billion consisting primarily of repayments of borrowings of approximately $496.5 million under the 2016 Revolving Facility, redemptions of $1.50 billion principal amount of senior notes in connection with the April 2018 Senior Notes offering and redemptions of $600.0 million principal amount of senior notes in connection with the May 2018 Euro Senior Notes offering; and
|
•
|
a net decrease in short-term borrowings of $45.9 million.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
|
|
Mylan N.V.
(Registrant)
|
|
|
|
|
By:
|
/s/ HEATHER BRESCH
|
|
|
Heather Bresch
|
|
|
Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
/s/ KENNETH S. PARKS
|
|
|
Kenneth S. Parks
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
/s/ HEATHER BRESCH
|
|
Heather Bresch
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
/s/ KENNETH S. PARKS
|
|
Kenneth S. Parks
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
/s/ HEATHER BRESCH
|
|
Heather Bresch
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
|
|
/s/ KENNETH S. PARKS
|
|
Kenneth S. Parks
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|