Segment Information

12 Months Ended

Dec. 31, 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 API. The Specialty segment engages mainly in the development, manufacture and sale of branded specialty nebulized and injectable products.

The Company’s chief operating decision maker is the Chief Executive Officer, who evaluates the performance of its segments based on total revenues and segment profitability. Segment profitability represents segment gross profit less direct 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 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 Note 2Summary of Significant Accounting Policies to Consolidated Financial Statements. 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
Year Ended December 31, 2015
Total revenues
Third party	$	8,198.6	$	1,230.7	$	—		$	9,429.3
Intersegment	6.3		10.9		(17.2		)	—
Total	$	8,204.9	$	1,241.6	$	(17.2	)	$	9,429.3
Segment profitability	$	2,555.8	$	670.5	$	(1,765.4	)	$	1,460.9

Year Ended December 31, 2014
Total revenues
Third party	$	6,510.4	$	1,209.2	$	—		$	7,719.6
Intersegment	4.7		9.0		(13.8		)	—
Total	$	6,515.2	$	1,218.2	$	(13.8	)	$	7,719.6
Segment profitability	$	1,870.3	$	664.5	$	(1,182.2	)	$	1,352.6

Year Ended December 31, 2013
Total revenues
Third party	$	5,900.6	$	1,008.5	$	—		$	6,909.1
Intersegment	5.7		19.3		(25.0		)	—
Total	$	5,906.3	$	1,027.8	$	(25.0	)	$	6,909.1
Segment profitability	$	1,656.3	$	461.6	$	(982.4	)	$	1,135.5

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

The Company’s net sales are generated via the sale of products in the following therapeutic categories:

	Year Ended December 31,
(In millions)	2015		2014		2013
Allergy	$	1,010.8	$	1,017.5	$	850.2
Anti-infectives	1,380.0		1,264.4		1,080.3
Cardiovascular	1,167.7		955.9		1,162.3
Central Nervous System	1,690.8		1,318.6		1,393.3
Dermatological	215.4		223.8		247.9
Endocrine and Metabolic	1,165.6		778.7		568.3
Gastrointestinal	761.6		344.6		365.8
Renal and Genitourinary Agents	395.7		609.5		191.1
Respiratory System	442.2		252.3		259.7
Other(1)	1,132.8		881.2		737.7
	$	9,362.6	$	7,646.5	$	6,856.6

____________

⁽¹⁾  Other consists of numerous therapeutic classes, none of which individually exceeds 5% of consolidated net sales.

Geographic Information

At January 1, 2014, the regions within the Generic Segment were recast to North America, Europe, and Rest of World, which are the Company’s principal geographic markets. Net sales are classified based on the geographic location of our subsidiaries and are as follows:

	Year Ended December 31,
(In millions)	2015		2014		2013
North America
United States	$	4,848.9	$	4,425.3	$	3,866.8
Other	251.5		123.1		121.5
Europe
The Netherlands (1)	66.5		61.1		57.1
Other (2)	2,139.1		1,415.7		1,372.6
Rest of World (3)	2,056.6		1,621.3		1,438.6
	$	9,362.6	$	7,646.5	$	6,856.6

____________

⁽¹⁾  Mylan N.V. is domiciled in the Netherlands.

⁽²⁾  Net sales from France consisted of approximately 8%, 9% and 10% of consolidated net sales for the years ended December 31, 2015, 2014 and 2013, respectively.

⁽³⁾  Net sales from India consisted of approximately 11%, 12% and 11% of consolidated net sales for the years ended December 31, 2015, 2014 and 2013, respectively.