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Segment Information
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information
Segment Information
Mylan reports segment information on a geographic basis. This approach reflects the company’s focus on bringing its broad and diversified portfolio of generic, branded generic, brand-name and OTC products to people in markets everywhere. Our North America segment comprises our operations in the U.S. and Canada. Our Europe segment encompasses our operations in 35 countries, including France, Italy, Germany, the United Kingdom (“U.K.”) and Spain. Our Rest of World segment reflects our operations in more than 120 countries, including Japan, Australia, China, Brazil, Russia, India, South Africa and certain markets in the Middle East and Southeast Asia.
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 and direct SG&A. Certain general and administrative and R&D expenses not allocated to the segments, including certain special items, net charges for litigation settlements and other contingencies, amortization of intangible assets, impairment charges and other expenses not directly attributable to the segments are reported separately or outside of segment profitability. 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 Note 2 Summary of Significant Accounting Policies included in the 2018 Form 10-K, and Note 3 Recent Accounting Pronouncements, Adoption of New Accounting Standards included in this Form 10-Q. 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)
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