Revenue Recognition and Accounts Receivable

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes net revenue for product sales when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are recorded net of provisions for variable consideration, including discounts, rebates, governmental rebate programs, price adjustments, returns, chargebacks, promotional programs and other sales allowances. Accruals for these provisions are presented in the condensed consolidated financial statements as reductions in determining net sales and as a contra asset in accounts receivable, net (if settled via credit) and other current liabilities (if paid in cash).

Wholesaler and distributor inventory levels of our products can fluctuate throughout the year due to the seasonality of certain products, the timing of product demand and other factors. Such fluctuations may impact the comparability of our net sales between periods.

Consideration received from licenses of intellectual property is recorded as revenue. Royalty or profit share amounts, which are based on sales of licensed products or technology, are recorded when the customer’s subsequent sales or usages occur. Such consideration is included in other revenue in the condensed consolidated statements of operations.

Revenue Disaggregation

The following table presents the Company’s net sales by therapeutic franchise for each of our reportable segments for the three months ended March 31, 2019 and 2018, respectively:



(In millions)	North America		Europe		Rest of World		Total
Three Months Ended March 31, 2019
Central Nervous System & Anesthesia	$	135.7	$	190.3	$	64.0	$	390.0
Infectious Disease	18.1		58.8		215.6		292.5
Respiratory & Allergy	238.6		107.8		43.7		390.1
Cardiovascular	46.9		100.7		34.2		181.8
Gastroenterology	34.2		127.8		77.5		239.5
Diabetes & Metabolism	151.0		57.2		39.2		247.4
Dermatology	13.9		61.6		20.4		95.9
Women’s Healthcare	78.9		44.6		15.1		138.6
Oncology	124.8		17.6		29.0		171.4
Immunology	10.1		7.2		6.4		23.7
Other ⁽¹⁾	70.7		121.7		97.3		289.7
Total	$	922.9	$	895.3	$	642.4	$	2,460.6



(In millions)	North America		Europe		Rest of World		Total
Three Months Ended March 31, 2018
Central Nervous System & Anesthesia	$	199.6	$	225.4	$	82.9	$	507.9
Infectious Disease	46.4		64.5		169.0		279.9
Respiratory & Allergy	113.9		127.6		46.6		288.1
Cardiovascular	90.4		146.8		39.5		276.7
Gastroenterology	44.1		153.2		66.1		263.4
Diabetes & Metabolism	109.6		73.8		24.8		208.2
Dermatology	94.5		80.3		24.9		199.7
Women’s Healthcare	93.1		70.0		19.2		182.3
Oncology	109.3		18.8		30.9		159.0
Immunology	14.0		2.5		8.4		24.9
Other ⁽¹⁾	70.4		75.5		114.4		260.3
Total	$	985.3	$	1,038.4	$	626.7	$	2,650.4

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

Variable Consideration and Accounts Receivable

The following table presents a reconciliation of gross sales to net sales by each significant category of variable consideration during the three months ended March 31, 2019 and 2018, respectively:



	Three Months Ended
	March 31,
(In millions)	2019			2018
Gross sales	$	4,158.5		$	4,732.3
Gross to net adjustments:
Chargebacks	(703.7		)	(872.1		)
Rebates, promotional programs and other sales allowances	(856.2		)	(1,030.6		)
Returns	(45.8		)	(77.3		)
Governmental rebate programs	(92.2		)	(101.9		)
Total gross to net adjustments	$	(1,697.9	)	$	(2,081.9	)
Net sales	$	2,460.6		$	2,650.4

No significant revisions were made to the methodology used in determining these provisions or the nature of the provisions during the three months ended March 31, 2019. Such allowances were comprised of the following at March 31, 2019 and December 31, 2018, respectively:



(In millions)	March 31, 2019		December 31, 2018
Accounts receivable, net	$	1,556.2	$	1,715.6
Other current liabilities	604.1		626.7
Total	$	2,160.3	$	2,342.3

Accounts receivable, net was comprised of the following at March 31, 2019 and December 31, 2018, respectively:



(In millions)	March 31, 2019		December 31, 2018
Trade receivables, net	$	2,367.4	$	2,416.5
Other receivables	411.1		464.5
Accounts receivable, net	$	2,778.5	$	2,881.0

Through its wholly owned subsidiary Mylan Pharmaceuticals Inc. (“MPI”), the Company has access to a $400 million accounts receivable securitization facility (the “Receivables Facility”). The receivables underlying any borrowings are included in accounts receivable, net, in the condensed consolidated balance sheets. There were $372.2 million and $322.0 million of securitized accounts receivable at March 31, 2019 and December 31, 2018, respectively.