Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has two segments, “Generics” and “Specialty.” The Generics segment primarily develops, manufactures, sells and distributes generic or branded generic pharmaceutical products in tablet, capsule, injectable or transdermal patch form, as well as active pharmaceutical ingredients (“API”). The Specialty segment engages mainly in the development and sale of branded specialty nebulized and injectable products.

The Company’s chief operating decision maker evaluates the performance of its segments based on total revenues and segment profitability. Segment profitability represents segment gross profit less direct research and development (“R&D”) expenses and direct SG&A expenses. Certain general and administrative and R&D expenses not allocated to the segments, net charges for litigation settlements, impairment charges and other expenses not directly attributable to the segments, are reported in Corporate/Other. Additionally, amortization of intangible assets and other purchase accounting related items, as well as any other significant special items, are included in Corporate/Other. Items below the earnings from operations line on the Company’s Condensed Consolidated Statements of Operations are not presented by segment, since they are excluded from the measure of segment profitability. The Company does not report depreciation expense, total assets and capital expenditures by segment, as such information is not used by the chief operating decision maker.

The accounting policies of the segments are the same as those described in the “Summary of Significant Accounting Policies” included in Mylan Inc.’s Annual Report on Form 10-K for the year ended December 31, 2014, as amended on April 30, 2015 and as updated by the Company’s Current Report on Form 8-K filed on June 11, 2015. Intersegment revenues are accounted for at current market values and are eliminated at the consolidated level.

Presented in the table below is segment information for the periods identified and a reconciliation of segment information to total consolidated information.

(In millions)	Generics Segment		Specialty Segment		Corporate / Other(1)			Consolidated
Three Months Ended September 30, 2015
Total revenues
Third party	$	2,249.9	$	445.3	$	—		$	2,695.2
Intersegment	1.4		1.2		(2.6		)	—
Total	$	2,251.3	$	446.5	$	(2.6	)	$	2,695.2
Segment profitability	$	788.5	$	258.2	$	(445.6	)	$	601.1
Nine Months Ended September 30, 2015
Total revenues
Third party	$	5,968.8	$	969.8	$	—		$	6,938.6
Intersegment	5.2		5.8		(11.0		)	—
Total	$	5,974.0	$	975.6	$	(11.0	)	$	6,938.6
Segment profitability	$	1,834.0	$	524.2	$	(1,321.2	)	$	1,037.0

Three Months Ended September 30, 2014
Total revenues
Third party	$	1,616.9	$	467.1	$	—		$	2,084.0
Intersegment	1.1		2.9		(4.0		)	—
Total	$	1,618.0	$	470.0	$	(4.0	)	$	2,084.0
Segment profitability	$	511.7	$	279.2	$	(295.9	)	$	495.0
Nine Months Ended September 30, 2014
Total revenues
Third party	$	4,675.9	$	961.0	$	—		$	5,636.9
Intersegment	3.7		7.3		(11.0		)	—
Total	$	4,679.6	$	968.3	$	(11.0	)	$	5,636.9
Segment profitability	$	1,267.1	$	535.3	$	(842.3	)	$	960.1

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⁽¹⁾  Includes certain corporate general and administrative and R&D expenses; net charges for litigation settlements; certain intercompany transactions, including eliminations; amortization of intangible assets and certain purchase accounting items; impairment charges, if any; and other expenses not directly attributable to segments.