10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________to___________                 

Commission File Number 333-199861

MYLAN N.V.

(Exact name of registrant as specified in its charter)

Netherlands	98-1493528
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Building 4, Trident Place, Mosquito Way, Hatfield, Hertfordshire, AL10 9UL, England

(Address of principal executive offices)

+44 (0) 1707-853-000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☑    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☑    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of May 6, 2020, there were 516,944,470 of the issuer’s €0.01 nominal value ordinary shares outstanding.

MYLAN N.V. AND SUBSIDIARIES

INDEX TO FORM 10-Q

For the Quarterly Period Ended

March 31, 2020

		Page
	PART I — FINANCIAL INFORMATION
ITEM 1.	Condensed Consolidated Financial Statements (unaudited)
	Condensed Consolidated Statements of Operations — Three Months Ended March 31, 2020 and 2019	3
	Condensed Consolidated Statements of Comprehensive Loss — Three Months Ended March 31, 2020 and 2019	4
	Condensed Consolidated Balance Sheets — March 31, 2020 and December 31, 2019	5
	Condensed Consolidated Statements of Equity — Three Months Ended March 31, 2020 and 2019	6
	Condensed Consolidated Statements of Cash Flows — Three Months Ended March 31, 2020 and 2019	7
	Notes to Condensed Consolidated Financial Statements	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	62
ITEM 4.	Controls and Procedures	63
	PART II — OTHER INFORMATION
ITEM 1.	Legal Proceedings	64
ITEM 1A.	Risk Factors	64
ITEM 6.	Exhibits	66
SIGNATURES		67

2

PART I — FINANCIAL INFORMATION

MYLAN N.V. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited; in millions, except per share amounts)

	Three Months Ended
	March 31,
	2020		2019
Revenues:
Net sales	$	2,588.2	$	2,460.6
Other revenues	31.0		34.9
Total revenues	2,619.2		2,495.5
Cost of sales	1,713.1		1,690.3
Gross profit	906.1		805.2
Operating expenses:
Research and development	114.2		172.6
Selling, general and administrative	605.4		607.9
Litigation settlements and other contingencies, net	1.8		0.7
Total operating expenses	721.4		781.2
Earnings from operations	184.7		24.0
Interest expense	119.9		131.2
Other expense, net	34.1		7.3
Earnings (Loss) before income taxes	30.7		(114.5		)
Income tax provision (benefit)	9.9		(89.5		)
Net earnings (loss)	$	20.8	$	(25.0	)
Earnings (Loss) per ordinary share:
Basic	$	0.04	$	(0.05	)
Diluted	$	0.04	$	(0.05	)
Weighted average ordinary shares outstanding:
Basic	516.4		515.0
Diluted	517.0		515.0

See Notes to Condensed Consolidated Financial Statements

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MYLAN N.V. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited; in millions)

	Three Months Ended
	March 31,
	2020			2019
Net earnings (loss)	$	20.8		$	(25.0	)
Other comprehensive loss, before tax:
Foreign currency translation adjustment	(656.6		)	(338.5		)
Change in unrecognized (loss) gain and prior service cost related to defined benefit plans	(1.6		)	0.2
Net unrecognized (loss) gain on derivatives in cash flow hedging relationships	(51.4		)	26.0
Net unrecognized gain on derivatives in net investment hedging relationships	42.3			58.1
Net unrealized gain on marketable securities	0.2			0.4
Other comprehensive loss, before tax	(667.1		)	(253.8		)
Income tax (benefit) provision	(10.8		)	11.8
Other comprehensive loss, net of tax	(656.3		)	(265.6		)
Comprehensive loss	$	(635.5	)	$	(290.6	)

See Notes to Condensed Consolidated Financial Statements

4

MYLAN N.V. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited; in millions, except share and per share amounts)

	March 31, 2020			December 31, 2019
ASSETS
Assets
Current assets:
Cash and cash equivalents	$	572.4		$	475.6
Accounts receivable, net	2,774.6			3,058.8
Inventories	2,639.6			2,670.9
Prepaid expenses and other current assets	613.9			552.0
Total current assets	6,600.5			6,757.3
Property, plant and equipment, net	2,067.0			2,149.6
Intangible assets, net	11,046.9			11,649.9
Goodwill	9,326.7			9,590.6
Deferred income tax benefit	701.3			703.1
Other assets	403.5			405.0
Total assets	$	30,145.9		$	31,255.5
LIABILITIES AND EQUITY
Liabilities
Current liabilities:
Accounts payable	$	1,273.5		$	1,528.1
Income taxes payable	254.3			213.0
Current portion of long-term debt and other long-term obligations	1,487.7			1,508.1
Other current liabilities	2,212.7			2,319.9
Total current liabilities	5,228.2			5,569.1
Long-term debt	11,197.8			11,214.3
Deferred income tax liability	1,538.2			1,627.5
Other long-term obligations	919.0			960.8
Total liabilities	18,883.2			19,371.7
Equity
Mylan N.V. shareholders’ equity
Ordinary shares — nominal value €0.01 per ordinary share
Shares authorized: 1,200,000,000
Shares issued: 541,542,294 and 540,746,871 as of March 31, 2020 and December 31, 2019	6.1			6.1
Additional paid-in capital	8,657.9			8,643.5
Retained earnings	6,051.9			6,031.1
Accumulated other comprehensive loss	(2,453.5		)	(1,797.2		)
	12,262.4			12,883.5
Less: Treasury stock — at cost
Ordinary shares: 24,598,074 as of March 31, 2020 and December 31, 2019	999.7			999.7
Total equity	11,262.7			11,883.8
Total liabilities and equity	$	30,145.9		$	31,255.5

See Notes to Condensed Consolidated Financial Statements

5

MYLAN N.V. AND SUBSIDIARIES

Condensed Consolidated Statements of Equity

(Unaudited; in millions, except share amounts)

				Additional Paid-In Capital			Retained Earnings						Accumulated Other Comprehensive Loss			Total Equity
	Ordinary Shares								Treasury Stock
	Shares	Cost							Shares	Cost
Balance at December 31, 2019	540,746,871	$	6.1	$	8,643.5		$	6,031.1	24,598,074	$	(999.7	)	$	(1,797.2	)	$	11,883.8
Net earnings	—	—		—			20.8		—	—			—			20.8
Other comprehensive loss, net of tax	—	—		—			—		—	—			(656.3		)	(656.3		)
Issuance of restricted stock and stock options exercised, net	795,423	—		0.6			—		—	—			—			0.6
Taxes related to the net share settlement of equity awards	—	—		(5.6		)	—		—	—			—			(5.6		)
Share-based compensation expense	—	—		19.4			—		—	—			—			19.4
Balance at March 31, 2020	541,542,294	$	6.1	$	8,657.9		$	6,051.9	24,598,074	$	(999.7	)	$	(2,453.5	)	$	11,262.7

				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	—	—		—			(25.0		)	—	—			—			(25.0		)
Other comprehensive loss, net of tax	—	—		—			—			—	—			(265.6		)	(265.6		)
Issuance of restricted stock and stock options exercised, net	653,679	—		2.3			—			—	—			—			2.3
Taxes related to the net share settlement of equity awards	—	—		(5.2		)	—			—	—			—			(5.2		)
Share-based compensation expense	—	—		18.0			—			—	—			—			18.0
Cumulative effect of the adoption of new accounting standards	—	—		—			3.6			—	—			(3.6		)	—
Balance at March 31, 2019	539,943,344	$	6.0	$	8,606.5		$	5,989.3		23,490,867	$	(999.7	)	$	(1,710.5	)	$	11,891.6

See Notes to Condensed Consolidated Financial Statements

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MYLAN N.V. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited; in millions)

	Three Months Ended
	March 31,
	2020			2019
Cash flows from operating activities:
Net earnings (loss)	$	20.8		$	(25.0	)
Adjustments to reconcile net (loss) earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	415.0			500.5
Share-based compensation expense	19.4			18.0
Deferred income tax (benefit) expense	(43.9		)	6.7
Loss from equity method investments	17.3			17.0
Other non-cash items	28.7			(2.3		)
Litigation settlements and other contingencies, net	7.2			(3.7		)
Changes in operating assets and liabilities:
Accounts receivable	73.6			62.8
Inventories	(131.8		)	(183.0		)
Accounts payable	(201.0		)	(277.5		)
Income taxes	10.8			(213.6		)
Other operating assets and liabilities, net	75.0			60.4
Net cash provided by (used in) operating activities	291.1			(39.7		)
Cash flows from investing activities:
Cash paid for acquisitions, net	—			(7.1		)
Capital expenditures	(43.4		)	(53.1		)
Purchase of available for sale securities and other investments	(53.6		)	(7.8		)
Proceeds from the sale of marketable securities	18.1			7.6
Payments for product rights and other, net	(67.1		)	(15.4		)
Proceeds from the sale of assets	0.4			0.2
Net cash used in investing activities	(145.6		)	(75.6		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	33.1			0.1
Payments of long-term debt	(33.0		)	(0.2		)
Change in short-term borrowings, net	—			(1.5		)
Taxes paid related to net share settlement of equity awards	(5.0		)	(7.1		)
Contingent consideration payments	(19.3		)	(31.8		)
Payments of financing fees	—			(1.2		)
Proceeds from exercise of stock options	0.6			2.4
Other items, net	(1.2		)	(0.8		)
Net cash used in financing activities	(24.8		)	(40.1		)
Effect on cash of changes in exchange rates	(23.9		)	(3.0		)
Net increase (decrease) in cash, cash equivalents and restricted cash	96.8			(158.4		)
Cash, cash equivalents and restricted cash — beginning of period	491.1			389.3
Cash, cash equivalents and restricted cash — end of period	$	587.9		$	230.9

See Notes to Condensed Consolidated Financial Statements

7

MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

1.General

The accompanying unaudited condensed consolidated financial statements (“interim financial statements”) of Mylan N.V. and subsidiaries (“Mylan” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q; therefore, as permitted under these rules, certain footnotes and other financial information included in audited financial statements were condensed or omitted. The interim financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the interim results of operations, comprehensive earnings, financial position, equity and cash flows for the periods presented.

The global spread of the coronavirus disease 2019 (“COVID-19”) has created significant volatility, uncertainty and economic disruption affecting the markets we serve in North America, Europe and Rest of World, including Asia. Certain significant impacts of COVID-19 on our business are discussed in these notes to the condensed consolidated financial statements.

These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto in Mylan N.V.’s Annual Report on Form 10-K for the year ended December 31, 2019, as amended (the “2019 Form 10-K”). The December 31, 2019 condensed consolidated balance sheet was derived from audited financial statements.

The interim results of operations, comprehensive earnings and cash flows for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full fiscal year or any other future period.

2. Revenue Recognition and Accounts Receivable

The Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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).

Our net sales may be impacted by wholesaler and distributor inventory levels of our products, which can fluctuate throughout the year due to the seasonality of certain products, pricing, the timing of product demand, purchasing decisions 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 other revenues. 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.

8

MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

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, 2020 and 2019, respectively:

(In millions)	North America		Europe		Rest of World		Total
Three Months Ended March 31, 2020
Central Nervous System & Anesthesia	$	141.2	$	225.7	$	60.4	$	427.3
Infectious Disease	45.1		72.3		229.7		347.1
Respiratory & Allergy	280.6		133.4		49.7		463.7
Cardiovascular	66.1		128.9		33.2		228.2
Gastroenterology	37.4		151.2		59.0		247.6
Diabetes & Metabolism	65.1		77.1		27.5		169.7
Dermatology	30.2		77.3		19.7		127.2
Women’s Healthcare	84.4		61.3		17.7		163.4
Oncology	129.1		18.6		24.6		172.3
Immunology	9.1		25.6		8.2		42.9
Other (1)	67.2		50.5		81.1		198.8
Total	$	955.5	$	1,021.9	$	610.8	$	2,588.2

(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

____________

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

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MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

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, 2020 and 2019, respectively:

	Three Months Ended
	March 31,
(In millions)	2020			2019
Gross sales	$	4,424.0		$	4,158.5
Gross to net adjustments:
Chargebacks	(854.4		)	(703.7		)
Rebates, promotional programs and other sales allowances	(845.6		)	(856.2		)
Returns	(59.0		)	(45.8		)
Governmental rebate programs	(76.8		)	(92.2		)
Total gross to net adjustments	$	(1,835.8	)	$	(1,697.9	)
Net sales	$	2,588.2		$	2,460.6

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, 2020. Such allowances were comprised of the following at March 31, 2020 and December 31, 2019, respectively:

(In millions)	March 31, 2020		December 31, 2019
Accounts receivable, net	$	1,393.8	$	1,512.0
Other current liabilities	700.5		796.5
Total	$	2,094.3	$	2,308.5

Accounts receivable, net was comprised of the following at March 31, 2020 and December 31, 2019, respectively:

(In millions)	March 31, 2020		December 31, 2019
Trade receivables, net	$	2,429.2	$	2,640.1
Other receivables	345.4		418.7
Accounts receivable, net	$	2,774.6	$	3,058.8

Receivables Facility and Note Securitization Facility

Through its wholly owned subsidiary Mylan Pharmaceuticals Inc. (“MPI”), the Company has access to a $400 million accounts receivable securitization facility (the “Receivables Facility”) and a $200 million note securitization facility (the “Note Securitization Facility”). The receivables underlying any borrowings are included in accounts receivable, net, in the condensed consolidated balance sheets. There were $373.1 million and $407.0 million of securitized accounts receivable at March 31, 2020 and December 31, 2019, respectively.

Accounts Receivable Factoring Arrangements

We have entered into accounts receivable factoring agreements with financial institutions to sell certain of our non-U.S. accounts receivable. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. Our factoring agreements do not allow for recourse in the event of uncollectibility, and we do not retain any interest in the underlying accounts receivable once sold. We derecognized $125.7 million and $90.1 million of accounts receivable as of March 31, 2020 and December 31, 2019, respectively, under these factoring arrangements.

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MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

3. Recent Accounting Pronouncements

Adoption of New Accounting Standards and Amended SEC Rules

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses (“ASU 2016-13”), which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”). ASU 2019-05 provides transition relief for ASU 2016-13 by providing entities with an alternative to irrevocably elect the fair value option for eligible financial assets measured at amortized cost upon adoption of ASU 2016-13. The Company applied the provisions of ASU 2016-13 and its subsequent revisions as of January 1, 2020 and the adoption did not have a material impact on its condensed consolidated financial statements and disclosures.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-03”), which adds to and modifies certain disclosure requirements for fair value measurements including a requirement to disclose changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and a requirement to disclose the range and weighted average used to develop significant inputs for Level 3 fair value measurements. The Company applied the provisions of ASU 2018-13 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s disclosures.

In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). The objective of this update is to clarify and align the accounting and capitalization of implementation costs for hosting arrangements, regardless of whether they convey a license to the hosted software. The updated guidance will require an entity in a hosting arrangement that is a service contract, to follow guidance in ASC 350 to determine which implementation costs to capitalize as an asset and which costs to expense. The Company applied the provisions of ASU 2018-15 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements and disclosures.

In November 2018, the FASB issued Accounting Standards Update 2018-18, Collaborative Arrangements (Topic 808)—Clarifying the Interaction between Topic 808 and Topic 606 (“ASU 2018-18”). The amendments in ASU 2018-18 make targeted improvements to U.S. GAAP for collaborative arrangements by clarifying that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation, and disclosure requirements. In addition, unit-of-account guidance in Topic 808 was aligned with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606. The Company applied the provisions of ASU 2018-18 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements and disclosures.

In March 2020, the SEC amended Rule 3-10 of Regulation S-X regarding the financial disclosure requirements for guarantors and issuers of guaranteed securities registered or being registered. Among other things, the amendments narrow the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamline the alternative disclosures required in lieu of those financial statements. The effective date of the amendment is January 4, 2021 with earlier voluntary compliance permitted. We have chosen to voluntarily comply with the amended rules effective during the three months ended March 31, 2020 and have included the required disclosures as a component of Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition of this Form 10-Q as permitted by the amendments.

Accounting Standards Issued Not Yet Adopted

In January 2020, the FASB issued Accounting Standards Update 2020-01, Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (“ASU 2020-01”), which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. In addition, ASU 2020-01 states that for the purpose of applying paragraph 815-10-15-141(a) an entity should not consider whether, upon

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MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. ASU 2020-01 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 with early adoption in any interim period permitted. The Company is currently assessing the impact of the adoption of this guidance on its condensed consolidated financial statements and disclosures.

In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. Entities can apply the provisions of ASU 2020-04 immediately, as applicable, and generally the provisions of the guidance are available through December 31, 2022 as entities transition away from reference rates that are expected to be discontinued. The Company is currently assessing the impact of the adoption of this guidance on its condensed consolidated financial statements and disclosures.

In addition, the following recently issued accounting standards have not been adopted. Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as amended, for additional information and their potential impacts.

Accounting Standard Update	Effective Date
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

4. Acquisitions and Other Transactions

Upjohn Business Combination Agreement

On July 29, 2019, the Company, Pfizer Inc. (“Pfizer”), Upjohn Inc., a wholly-owned subsidiary of Pfizer (“Upjohn” or “Newco”), and certain other affiliated entities entered into a Business Combination Agreement (the “Business Combination Agreement”) pursuant to which the Company will combine with Pfizer’s Upjohn Business (the “Upjohn Business”) in a Reverse Morris Trust transaction (the “Combination”). Newco, which will be the parent entity of the combined Upjohn Business and Mylan business, will be renamed “Viatris” effective as of the closing of the Combination. The Upjohn Business is a global, primarily off-patent branded and generic established medicines business, which includes 20 primarily off-patent solid oral dose legacy brands, such as Lyrica, Lipitor, Celebrex and Viagra.

Prior to the Combination and pursuant to a Separation and Distribution Agreement (the “Separation Agreement”), dated as of July 29, 2019, between Pfizer and Newco, Pfizer will, among other things, transfer to Newco substantially all of the assets and liabilities comprising the Upjohn Business (the “Separation”) and, thereafter, Pfizer will distribute to Pfizer stockholders all of the issued and outstanding shares of Newco (the “Distribution”). When the Distribution and Combination are completed, Pfizer stockholders as of the record date of the Distribution will own 57% of the outstanding shares of Newco common stock, and Mylan shareholders as of immediately before the Combination will own 43% of the outstanding shares of Newco common stock, in each case on a fully diluted basis. Newco will make a cash payment to Pfizer equal to $12 billion, to be funded with the proceeds of debt to be incurred by Newco in connection with the foregoing transactions, as partial consideration for the contribution of the Upjohn Business from Pfizer to Newco.

Newco has obtained commitments for the initial financing of the transaction in the form of a bridge loan from certain financial institutions. If Newco obtains additional funding by issuing securities or obtaining other loans, the amount of the bridge facility will be correspondingly reduced. The bridge loan is subject to customary terms and conditions including a financial covenant.

            The consummation of the Combination is subject to the satisfaction (or, if applicable, valid waiver) of various conditions, including (a) the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder and the receipt of regulatory approvals in certain other jurisdictions, (b) the consummation of the Separation and the Distribution in accordance with the

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

terms of the Separation Agreement, (c) the approval of the Combination by Mylan shareholders, (d) the absence of any legal restraint (including legal actions or proceedings pursued by U.S. state authorities in the relevant states) preventing the consummation of the transactions, (e) in the case of Pfizer’s and Newco’s obligations to consummate the transactions, (i) the distribution of $12 billion in cash from Upjohn to Pfizer in accordance with the terms of the Separation Agreement and (ii) the receipt by Pfizer of a U.S. Internal Revenue Service (“IRS”) ruling and tax opinion of its tax counsel with respect to the Combination, and (f) other customary closing conditions. On March 17, 2020, Pfizer received the IRS ruling with respect to the Combination, which is generally binding, unless the relevant facts or circumstances change prior to closing.

On February 13, 2020, the registration statement on Form S-4 filed by Newco in connection with the Combination was declared effective by the SEC, Newco filed a prospectus with the SEC in connection with the Combination and Mylan filed a definitive proxy statement with the SEC in connection with the Combination.

On March 26, 2020, Mylan and Pfizer announced that due to the unprecedented circumstances surrounding the COVID-19 pandemic, including associated delays in the regulatory review process, the Combination is now anticipated to close in the second half of 2020. It was also announced that, in light of increased meeting and other restrictions due to COVID-19 developments in the Netherlands, Mylan’s extraordinary general meeting of shareholders to approve certain matters in connection with the Combination was rescheduled from April 27, 2020 to June 30, 2020.

5. Share-Based Incentive Plan

The Company’s shareholders have approved the 2003 Long-Term Incentive Plan (as amended, the “2003 Plan”). Under the 2003 Plan, 55,300,000 ordinary shares are reserved for issuance to key employees, consultants, independent contractors and non-employee directors of the Company through a variety of incentive awards, including: stock options, stock appreciation rights (“SAR”), restricted ordinary shares and units, performance awards (“PSU”), other stock-based awards and short-term cash awards. Stock option awards are granted with an exercise price equal to the fair market value of the ordinary shares underlying the stock options at the date of the grant, generally become exercisable over periods ranging from three to four years, and generally expire in ten years.

The following table summarizes stock option and SAR (together, “stock awards”) activity:

	Number of Shares Under Stock Awards		Weighted Average Exercise Price per Share
Outstanding at December 31, 2019	6,347,709		$	36.97
Granted	699,491		17.61
Exercised	(27,615	)	21.13
Forfeited	(240,740	)	25.19
Outstanding at March 31, 2020	6,778,845		$	35.45
Vested and expected to vest at March 31, 2020	6,572,572		$	35.72
Exercisable at March 31, 2020	5,145,065		$	38.65

As of March 31, 2020, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had average remaining contractual terms of 5.7 years, 5.6 years and 4.6 years, respectively. Also, at March 31, 2020, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had no aggregate intrinsic values.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

A summary of the status of the Company’s nonvested and restricted stock unit awards, including PSUs (collectively, “restricted stock awards”), as of March 31, 2020 and the changes during the three months ended March 31, 2020 are presented below:

	Number of Restricted Stock Awards		Weighted Average Grant-Date Fair Value per Share
Nonvested at December 31, 2019	4,105,689		$	34.42
Granted	2,944,296		17.48
Released	(1,100,256	)	36.56
Forfeited	(238,662	)	44.14
Nonvested at March 31, 2020	5,711,067		$	24.87

As of March 31, 2020, the Company had $111.2 million of total unrecognized compensation expense, net of estimated forfeitures, related to all of its stock-based awards, which we expect to recognize over the remaining weighted average vesting period of 1.8 years. The total intrinsic value of stock awards exercised and restricted stock units released during the three months ended March 31, 2020 and 2019 was $19.0 million and $22.1 million, respectively.

6. Pensions and Other Postretirement Benefits

Defined Benefit Plans

The Company sponsors various defined benefit pension plans in several countries. Benefits provided generally depend on length of service, pay grade and remuneration levels. The Company maintains two fully frozen defined benefit pension plans in the U.S., and employees in the U.S. and Puerto Rico are generally provided retirement benefits through defined contribution plans.

The Company also sponsors other postretirement benefit plans including plans that provide for postretirement supplemental medical coverage. Benefits from these plans are provided to employees and their spouses and dependents who meet various minimum age and service requirements. In addition, the Company sponsors other plans that provide for life insurance benefits and postretirement medical coverage for certain officers and management employees.

Net Periodic Benefit Cost

Components of net periodic benefit cost for the three months ended March 31, 2020 and 2019 were as follows:

	Pension and Other Postretirement Benefits
	Three Months Ended
	March 31,
(In millions)	2020			2019
Service cost	$	5.3		$	5.3
Interest cost	2.9			3.8
Expected return on plan assets	(3.4		)	(3.0		)
Amortization of prior service costs	—			0.3
Recognized net actuarial losses (gains)	0.2			(0.2		)
Net periodic benefit cost	$	5.0		$	6.2

The Company is making the minimum mandatory contributions to its U.S. defined benefit pension plans in the 2020 plan year. The Company expects to make total benefit payments of approximately $35.2 million from pension and other postretirement benefit plans in 2020. The Company anticipates making contributions to pension and other postretirement benefit plans of approximately $35.1 million in 2020.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

7. Balance Sheet Components

Selected balance sheet components consist of the following:

Cash and restricted cash

(In millions)	March 31, 2020		December 31, 2019
Cash and cash equivalents	$	572.4	$	475.6
Restricted cash, included in prepaid expenses and other current assets	15.5		15.5
Cash, cash equivalents and restricted cash	$	587.9	$	491.1

Inventories

(In millions)	March 31, 2020		December 31, 2019
Raw materials	$	859.3	$	886.8
Work in process	395.6		417.2
Finished goods	1,384.7		1,366.9
Inventories	$	2,639.6	$	2,670.9

Prepaid and other current assets

(In millions)	March 31, 2020		December 31, 2019
Prepaid expenses	$	162.0	$	156.7
Restricted cash	15.5		15.5
Available-for-sale fixed income securities	36.9		26.8
Fair value of financial instruments	55.9		43.3
Equity securities	32.6		39.0
Other current assets	311.0		270.7
Prepaid expenses and other current assets	$	613.9	$	552.0

Prepaid expenses consist primarily of prepaid rent, insurance and other individually insignificant items.

Property, plant and equipment, net

(In millions)	March 31, 2020		December 31, 2019
Machinery and equipment	$	2,513.8	$	2,523.7
Buildings and improvements	1,193.2		1,197.3
Construction in progress	236.8		277.3
Land and improvements	122.0		124.6
Gross property, plant and equipment	4,065.8		4,122.9
Accumulated depreciation	1,998.8		1,973.3
Property, plant and equipment, net	$	2,067.0	$	2,149.6

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Other assets

(In millions)	March 31, 2020		December 31, 2019
Equity method investments, clean energy investments	$	81.1	$	92.2
Operating lease right-of-use assets	236.4		254.6
Other long-term assets	86.0		58.2
Other assets	$	403.5	$	405.0

Accounts payable

(In millions)	March 31, 2020		December 31, 2019
Trade accounts payable	$	875.3	$	1,061.9
Other payables	398.2		466.2
Accounts payable	$	1,273.5	$	1,528.1

Other current liabilities

(In millions)	March 31, 2020		December 31, 2019
Accrued sales allowances	$	700.5	$	796.5
Legal and professional accruals, including litigation accruals	127.2		138.2
Payroll and employee benefit liabilities	394.3		467.1
Contingent consideration	117.3		120.4
Accrued interest	151.0		59.1
Restructuring	19.7		26.0
Equity method investments, clean energy investments	48.3		47.7
Fair value of financial instruments	70.3		12.9
Operating lease liability	70.5		76.7
Other	513.6		575.3
Other current liabilities	$	2,212.7	$	2,319.9

Other long-term obligations

(In millions)	March 31, 2020		December 31, 2019
Employee benefit liabilities	$	405.6	$	408.9
Contingent consideration	118.9		130.3
Equity method investments, clean energy investments	48.0		57.2
Tax related items, including contingencies	100.5		109.6
Operating lease liability	164.1		175.7
Other	81.9		79.1
Other long-term obligations	$	919.0	$	960.8

8. Equity Method Investments

The Company currently has three equity method investments in limited liability companies that own refined coal production plants (the “clean energy investments”) whose activities qualify for income tax credits under Section 45 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”).

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MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Summarized financial information, in the aggregate, for the Company’s significant equity method investments on a 100% basis for the three months ended March 31, 2020 and 2019 are as follows:

	Three Months Ended
	March 31,
(In millions)	2020			2019
Total revenues	$	87.5		$	86.9
Gross loss	(1.1		)	(1.0		)
Operating and non-operating expense	4.7			4.9
Net loss	$	(5.8	)	$	(5.9	)

The Company’s net losses from its equity method investments include amortization expense related to the excess of the cost basis of the Company’s investment over the underlying assets of each individual investee. For the three months ended March 31, 2020 and 2019, the Company recognized net losses from equity method investments of $17.3 million and $17.0 million, respectively, which were recognized as a component of other expense, net in the condensed consolidated statements of operations. The Company recognizes the income tax credits and benefits from the clean energy investments as part of its provision for income taxes.

9. Earnings (Loss) per Ordinary Share

Basic earnings (loss) per ordinary share is computed by dividing net earnings (loss) by the weighted average number of ordinary shares outstanding during the period. Diluted earnings (loss) per ordinary share is computed by dividing net earnings (loss) by the weighted average number of ordinary shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities or instruments, if the impact is dilutive.

Basic and diluted earnings (loss) per ordinary share are calculated as follows:

	Three Months Ended
	March 31,
(In millions, except per share amounts)	2020		2019
Basic earnings (loss) (numerator):
Net earnings (loss)	$	20.8	$	(25.0	)
Shares (denominator):
Weighted average ordinary shares outstanding	516.4		515.0
Basic earnings (loss) per ordinary share	$	0.04	$	(0.05	)
Diluted earnings (loss) (numerator):
Net earnings (loss)	$	20.8	$	(25.0	)
Shares (denominator):
Weighted average ordinary shares outstanding	516.4		515.0
Share-based awards	0.6		—
Total dilutive shares outstanding	517.0		515.0
Net earnings (loss) per diluted ordinary share	$	0.04	$	(0.05	)

Additional stock awards and restricted stock awards were outstanding during the three months ended March 31, 2020 and 2019, but were not included in the computation of diluted earnings per ordinary share for each respective period because the effect would be anti-dilutive. Excluded shares at March 31, 2020 include certain share-based compensation awards whose performance conditions had not been fully met. Such excluded shares and anti-dilutive awards represented 9.6 million shares and 8.9 million shares for the three months ended March 31, 2020 and 2019, respectively.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

10. Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the three months ended March 31, 2020 are as follows:

(In millions)	North America Segment			Europe Segment			Rest of World Segment			Total
Balance at December 31, 2019:
Goodwill	$	3,708.4		$	4,548.6		$	1,718.6		$	9,975.6
Accumulated impairment losses	(385.0		)	—			—			(385.0		)
	3,323.4			4,548.6			1,718.6			9,590.6
Foreign currency translation	(76.6		)	(117.5		)	(69.8		)	(263.9		)
	$	3,246.8		$	4,431.1		$	1,648.8		$	9,326.7
Balance at March 31, 2020:
Goodwill	$	3,631.8		$	4,431.1		$	1,648.8		$	9,711.7
Accumulated impairment losses	(385.0		)	—			—			(385.0		)
	$	3,246.8		$	4,431.1		$	1,648.8		$	9,326.7

Intangible assets consist of the following components at March 31, 2020 and December 31, 2019:

(In millions)	Weighted Average Life (Years)	Original Cost		Accumulated Amortization		Net Book Value
March 31, 2020
Product rights, licenses and other (1)	15	$	19,653.5	$	8,721.5	$	10,932.0
In-process research and development		114.9		—		114.9
		$	19,768.4	$	8,721.5	$	11,046.9
December 31, 2019
Product rights, licenses and other (1)	15	$	20,109.1	$	8,579.5	$	11,529.6
In-process research and development		120.3		—		120.3
		$	20,229.4	$	8,579.5	$	11,649.9

____________

⁽¹⁾  Represents amortizable intangible assets. Other intangible assets consists principally of customer lists and contractual rights.

During the three months ended March 31, 2019, the Company recognized impairment charges of $29.5 million which have been recorded as a component of amortization expense, for the impairment of certain in-process research and development (“IPR&D”) assets. The impairment charge recorded during the first quarter of 2019 related to certain assets acquired as part of the acquisition of the non-sterile, topicals-focused business of Renaissance Acquisition Holdings, LLC. No impairment charges were recognized during the three months ended March 31, 2020. The impairment testing involved calculating the fair value of the assets based upon detailed valuations employing the income approach which utilized Level 3 inputs, as defined in Note 11 Financial Instruments and Risk Management. These valuations reflect, among other things, the impact of changes to the development programs, the projected development and regulatory time frames and the current competitive environment. Changes in any of the Company’s assumptions may result in a further reduction to the estimated fair values of these assets and could result in additional future impairment charges.

The Company reviews goodwill for impairment annually on April 1st or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. As a result of the decline in the Company’s share price during the first quarter of 2020, and the general uncertainty and volatility in the economic environments in which the Company operates, including the impacts of the COVID-19 pandemic, the Company performed an interim goodwill impairment test as of March 31, 2020. 

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

The Company has performed its interim goodwill impairment test on a quantitative basis for its four reporting units, North America Generics, North America Brands, Europe and Rest of World. In estimating each reporting unit’s fair value, the Company performed an extensive valuation analysis, utilizing both income and market-based approaches, except for the North America Brands reporting unit where the fair value was estimated utilizing the income approach. The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions that affect the reporting unit’s expected future cash flows. These estimates and assumptions, utilizing Level 3 inputs, primarily include, but are not limited to, market multiples, control premiums, the discount rate, terminal growth rates, operating income before depreciation and amortization, and capital expenditures forecasts.

As of March 31, 2020, the allocation of the Company’s total goodwill was as follows: North America Generics $2.60 billion, North America Brands $0.65 billion, Europe $4.43 billion and Rest of World $1.65 billion.

As of March 31, 2020, the Company determined that the fair value of the North America Generics, North America Brands and Rest of World reporting units was substantially in excess of the respective unit’s carrying value. However, when compared to the April 1, 2019 test, the fair value of our overall business declined because of future forecasts and the decline in our share price.

For the Europe reporting unit, the estimated fair value exceeded its carrying value by approximately $1.3 billion or 11.0%. The excess fair value for the Europe reporting unit is consistent with the result of the Company’s 2019 annual impairment test. As it relates to the income approach for the Europe reporting unit at March 31, 2020, the Company forecasted cash flows for the next 5 years. During the forecast period, the revenue compound annual growth rate was approximately 7.5%. A terminal year value was calculated with a 2.0% revenue growth rate applied. The discount rate utilized was 11.0% and the estimated tax rate was 25.5%. Under the market-based approach, we utilized an estimated range of market multiples of 8.0 to 9.5 times EBITDA plus a control premium of 15.0%. If all other assumptions are held constant, a reduction in the terminal value growth rate by 3.5% or an increase in discount rate by 3.5% would result in an impairment charge for the Europe reporting unit.

Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions, especially as it relates to the key assumptions detailed, could have a significant impact on the fair value of the reporting units.

Amortization expense, which is classified primarily within cost of sales in the condensed consolidated statements of operations for the three months ended March 31, 2020 and 2019 totaled:

	Three Months Ended
	March 31,
(In millions)	2020		2019
Intangible asset amortization expense	$	351.2	$	405.5
IPR&D intangible asset impairment charges	—		29.5
Total intangible asset amortization expense (including impairment charges)	$	351.2	$	435.0

Intangible asset amortization expense over the remainder of 2020 and for the years ended December 31, 2021 through 2024 is estimated to be as follows (excludes the potential impact of the Combination):

(In millions)
2020	$	1,056
2021	1,331
2022	1,264
2023	1,103
2024	995

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MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

11. Financial Instruments and Risk Management

The Company is exposed to certain financial risks relating to its ongoing business operations. The primary financial risks that are managed by using derivative instruments are foreign currency risk and interest rate risk.

Foreign Currency Risk Management

In order to manage certain foreign currency risks, the Company enters into foreign exchange forward contracts to mitigate risk associated with changes in spot exchange rates of mainly non-functional currency denominated assets or liabilities. The foreign exchange forward contracts are measured at fair value and reported as current assets or current liabilities on the condensed consolidated balance sheets. Any gains or losses on the foreign exchange forward contracts are recognized in earnings in the period incurred in the condensed consolidated statements of operations.

The Company has also entered into forward contracts to hedge forecasted foreign currency denominated sales from certain international subsidiaries. These contracts are designated as cash flow hedges to manage foreign currency transaction risk and are measured at fair value and reported as current assets or current liabilities on the condensed consolidated balance sheets. Any changes in the fair value of designated cash flow hedges are deferred in accumulated other comprehensive earnings (“AOCE”) and are reclassified into earnings when the hedged item impacts earnings.

Net Investment Hedges

The Company may hedge the foreign currency risk associated with certain net investment positions in foreign subsidiaries by either borrowing directly in foreign currencies and designating all or a portion of the foreign currency debt as a hedge of the applicable net investment position or entering into foreign currency swaps that are designated as hedges of net investments.

The Company has designated certain Euro borrowings as a hedge of its investment in certain Euro-functional currency subsidiaries in order to manage foreign currency translation risk. Borrowings designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of AOCE until the sale or substantial liquidation of the underlying net investments. In addition, the Company manages the related foreign exchange risk of the Euro borrowings not designated as net investment hedges through certain Euro denominated financial assets and forward currency swaps.

The following table summarizes the principal amounts of the Company’s outstanding Euro borrowings and the notional amounts of the Euro borrowings designated as net investment hedges:

			Notional Amount Designated as a Net Investment Hedge
(in millions)	Principal Amount		March 31, 2020		December 31, 2019
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

Interest Rate Risk Management

The Company enters into interest rate swaps from time to time in order to manage interest rate risk associated with the Company’s fixed-rate and floating-rate debt. Interest rate swaps that meet specific accounting criteria are accounted for as fair value or cash flow hedges. All derivative instruments used to manage interest rate risk are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. For fair value hedges, the changes in the fair value of both the hedging instrument and the underlying debt obligations are included in interest expense. For cash flow hedges, the change in fair value of the hedging instrument is deferred through AOCE and is reclassified into earnings when the hedged item impacts earnings.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Credit Risk Management

The Company regularly reviews the creditworthiness of its financial counterparties and does not expect to incur a significant loss from the failure of any counterparties to perform under any agreements. The Company is not subject to any obligations to post collateral under derivative instrument contracts. Certain derivative instrument contracts entered into by the Company are governed by master agreements, which contain credit-risk-related contingent features that would allow the counterparties to terminate the contracts early and request immediate payment should the Company trigger an event of default on other specified borrowings. The Company records all derivative instruments on a gross basis in the condensed consolidated balance sheets. Accordingly, there are no offsetting amounts that net assets against liabilities.

The Effect of Derivative Instruments in the Condensed Consolidated Balance Sheets

Fair Values of Derivative Instruments

Derivatives Designated as Hedging Instruments

	Asset Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swaps	Prepaid expenses and other current assets	$	—	Prepaid expenses and other current assets	$	22.3
Foreign currency forward contracts	Prepaid expenses and other current assets	—		Prepaid expenses and other current assets	12.5
Total		$	—		$	34.8

	Liability Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign currency forward contracts	Other current liabilities	39.2		Other current liabilities	—
Total		$	39.2		$	—

The Effect of Derivative Instruments in the Condensed Consolidated Balance Sheets

Fair Values of Derivative Instruments

Derivatives Not Designated as Hedging Instruments

	Asset Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign currency forward contracts	Prepaid expenses and other current assets	$	55.9	Prepaid expenses and other current assets	$	8.5
Total		$	55.9		$	8.5

	Liability Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign currency forward contracts	Other current liabilities	$	31.1	Other current liabilities	$	12.9
Total		$	31.1		$	12.9

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

The Effect of Derivative Instruments in the Condensed Consolidated Statement of Operations

Derivatives in Fair Value Hedging Relationships

	Location of Gain (Loss) Recognized in Earnings on Derivatives	Amount of Gain (Loss) Recognized in Earnings on Derivatives
(In millions)		Three Months Ended
		March 31,
		2020		2019
Interest rate swaps	Interest expense	$	22.1	$	7.5
Total		$	22.1	$	7.5

	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
		March 31,
		2020			2019
2023 Senior Notes (3.125% coupon)	Interest expense	$	(22.1	)	$	(7.5	)
Total		$	(22.1	)	$	(7.5	)

In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The amount included in the above tables represents the fair value adjustment recognized at the date the interest rate swaps were settled.

The Effect of Derivative Instruments in the Condensed Consolidated Statements of Comprehensive Earnings

Derivatives in Cash Flow Hedging Relationships

	Amount of Gain (Loss) Recognized in AOCE (Net of Tax) on Derivative
	Three Months Ended
	March 31,
(In millions)	2020			2019
Foreign currency forward contracts	$	(42.8	)	$	15.5
Total	$	(42.8	)	$	15.5

The Effect of Derivative Instruments in the Condensed Consolidated Statements of Comprehensive Earnings

Derivatives in Net Investment Hedging Relationships

	Amount of Gain (Loss) Recognized in AOCE (Net of Tax) on Derivative
	Three Months Ended
	March 31,
(In millions)	2020		2019
Foreign currency borrowings and forward contracts	$	40.1	$	55.2
Total	$	40.1	$	55.2

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MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

The Effect of Derivative Instruments in the Condensed Consolidated Statement of Operations

Derivatives in Cash Flow Hedging Relationships

	Location of Gain (Loss) Reclassified from AOCE into Earnings	Amount of Gain (Loss) Reclassified from AOCE into Earnings
		Three Months Ended
		March 31,
(In millions)		2020			2019
Foreign currency forward contracts	Net sales	$	0.1		$	0.3
Interest rate swaps	Interest expense	(1.1		)	(1.8		)
Total		$	(1.0	)	$	(1.5	)

At March 31, 2020, the Company expects that approximately $47.0 million of pre-tax net losses on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months.

The Effect of Derivative Instruments in the Condensed Consolidated Statement of Operations

Derivatives Not Designated as Hedging Instruments

	Location of Gain (Loss) Recognized in Earnings on Derivatives	Amount of Gain (Loss) Recognized in Earnings on Derivatives
		Three Months Ended
		March 31,
(In millions)		2020		2019
Foreign currency option and forward contracts	Other expense, net	$	29.4	$	(5.8	)
Total		$	29.4	$	(5.8	)

Fair Value Measurement

Fair value is based on the price that would be received from the sale of an identical asset or paid to transfer an identical liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy has been established that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

• 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.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considers counterparty credit risk in its assessment of fair value.

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MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above:

	March 31, 2020
(In millions)	Level 1		Level 2		Level 3		Total
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds	$	0.7	$	—	$	—	$	0.7
Total cash equivalents	0.7		—		—		0.7
Equity securities:
Exchange traded funds	31.9		—		—		31.9
Marketable securities	0.7		—		—		0.7
Total equity securities	32.6		—		—		32.6
Available-for-sale fixed income investments:
Corporate bonds	—		16.3		—		16.3
U.S. Treasuries	—		12.5		—		12.5
Agency mortgage-backed securities	—		2.1		—		2.1
Asset backed securities	—		5.4		—		5.4
Other	—		0.6		—		0.6
Total available-for-sale fixed income investments	—		36.9		—		36.9
Foreign exchange derivative assets	—		55.9		—		55.9
Interest rate swap derivative assets	—		—		—		—
Total assets at recurring fair value measurement	$	33.3	$	92.8	$	—	$	126.1
Financial Liabilities
Foreign exchange derivative liabilities	—		70.3		—		70.3
Contingent consideration	—		—		236.2		236.2
Total liabilities at recurring fair value measurement	$	—	$	70.3	$	236.2	$	306.5

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MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

	December 31, 2019
(In millions)	Level 1		Level 2		Level 3		Total
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds	$	0.7	$	—	$	—	$	0.7
Total cash equivalents	0.7		—		—		0.7
Equity securities:
Exchange traded funds	38.3		—		—		38.3
Marketable securities	0.7		—		—		0.7
Total equity securities	39.0		—		—		39.0
Available-for-sale fixed income investments:
Corporate bonds	—		10.8		—		10.8
U.S. Treasuries	—		9.5		—		9.5
Agency mortgage-backed securities	—		2.3		—		2.3
Asset backed securities	—		3.6		—		3.6
Other	—		0.6		—		0.6
Total available-for-sale fixed income investments	—		26.8		—		26.8
Foreign exchange derivative assets	—		21.0		—		21.0
Interest rate swap derivative assets	—		22.3		—		22.3
Total assets at recurring fair value measurement	$	39.7	$	70.1	$	—	$	109.8
Financial Liabilities
Foreign exchange derivative liabilities	$	—	$	12.9	$	—	$	12.9
Contingent consideration	—		—		250.7		250.7
Total liabilities at recurring fair value measurement	$	—	$	12.9	$	250.7	$	263.6

For financial assets and liabilities that utilize Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including the LIBOR yield curve, foreign exchange forward prices and bank price quotes. Below is a summary of valuation techniques for Level 1 and Level 2 financial assets and liabilities:

• 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.

• 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.

• 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.

25

MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Contingent Consideration

The fair value measurement of contingent consideration is determined using Level 3 inputs. The Company’s contingent consideration represents a component of the total purchase consideration for Pfizer Inc.’s proprietary dry powder inhaler delivery platform and certain other acquisitions. The measurement is calculated using unobservable inputs based on the Company’s own assumptions primarily related to probability and timing of future development and commercial milestones and future profit sharing payments which are discounted using a market rate of return. At March 31, 2020 and December 31, 2019, discount rates ranging from 3.5% to 11.0% were utilized in the valuations. Significant changes in unobservable inputs could result in material changes to the contingent consideration liability.

A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2019 to March 31, 2020 is as follows:

(In millions)	Current Portion (1)			Long-Term Portion (2)			Total Contingent Consideration
Balance at December 31, 2019	$	120.4		$	130.3		$	250.7
Payments	(24.3		)	—			(24.3		)
Reclassifications	17.0			(17.0		)	—
Accretion	—			3.2			3.2
Fair value loss (3)	4.2			2.4			6.6
Balance at March 31, 2020	$	117.3		$	118.9		$	236.2

____________

⁽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.

Although the Company has not elected the fair value option for other financial assets and liabilities, any future transacted financial asset or liability will be evaluated for the fair value election.

12. Debt

Short-Term Borrowings

The Company had no short-term borrowings as of March 31, 2020 and December 31, 2019. The following provides an overview of the Company’s short-term credit facilities.

Receivables Facility and Note Securitization Facility

The Company has a $400 million receivables facility which expires in April 2022 (the “Receivables Facility”). The Company also has a $200 million notes securitization facility which expires on August 31, 2020 (the “Note Securitization Facility”). Borrowings outstanding under the Receivables Facility bear interest at a commercial paper rate plus 0.775% and under the Note Securitization Facility at LIBOR plus 0.75% and are included as a component of short-term borrowings, while the accounts receivable securing these obligations remain as a component of accounts receivable, net, in our condensed consolidated balance sheets. Effective April 22, 2020, borrowings outstanding under the Note Securitization Facility bear interest at a rate per annum quoted from time to time by MUFG Bank, Ltd. plus 0.75%. In addition, the agreements governing the Receivables Facility and Note Securitization Facility contain various customary affirmative and negative covenants, and customary default and termination provisions with which the Company was compliant as of March 31, 2020. As of March 31, 2020, the Company had no amounts outstanding under the Receivables Facility or the Note Securitization Facility.

Commercial Paper Program

The Company maintains a $1.65 billion commercial paper program (the “Commercial Paper Program”) to support its working capital requirements and for general corporate purposes. There were no commercial paper notes (the “CP Notes”) outstanding under this program as of March 31, 2020 and December 31, 2019. Amounts available under the Commercial Paper

26

MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Program may be borrowed, repaid and re-borrowed from time to time, with the aggregate principal amount of the CP Notes outstanding under the Commercial Paper Program at any time not to exceed $1.65 billion. The Company’s Revolving Credit Facility (as defined below) will be available to pay the CP Notes, if necessary. The maturities of the CP Notes will vary but will not exceed 364 days from the date of issue.

Long-Term Debt

A summary of long-term debt is as follows:

(In millions)	Interest Rate as of March 31, 2020		March 31, 2020			December 31, 2019
Current portion of long-term debt:
2020 Floating Rate Euro Notes (a) **			551.6			560.6
2020 Euro Senior Notes **	1.250	%	826.9			840.1
2020 Senior Notes **	3.750	%	50.0			50.0
Other			6.3			8.3
Deferred financing fees			(0.9		)	(1.4		)
Current portion of long-term debt			$	1,433.9		$	1,457.6
Non-current portion of long-term debt:
2021 Senior Notes **	3.150	%	2,249.3			2,249.2
2023 Senior Notes (b) *	3.125	%	793.2			771.8
2023 Senior Notes *	4.200	%	499.2			499.1
2024 Euro Senior Notes **	2.250	%	1,101.5			1,119.3
2025 Euro Senior Notes *	2.125	%	550.6			559.6
2026 Senior Notes **	3.950	%	2,238.5			2,238.1
2028 Euro Senior Notes **	3.125	%	821.1			834.3
2028 Senior Notes *	4.550	%	748.4			748.4
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			747.7
Other			8.0			8.9
Deferred financing fees			(56.7		)	(59.1		)
Long-term debt			$	11,197.8		$	11,214.3

____________

^(a)  Instrument bears interest at a rate of three-month EURIBOR plus 0.50% per annum, reset quarterly.

^(b)  In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The fair value adjustment will be amortized to interest expense over the remaining term of the notes.

^* Instrument was issued by Mylan Inc.

^**   Instrument was issued by Mylan N.V.

For additional information, see Note 10 Debt in Mylan N.V.’s 2019 Form 10-K.

Revolving Credit Facility

The Company has a $2.0 billion revolving credit facility which is scheduled to expire in July 2023 (the “Revolving Credit Facility”). The Revolving Credit Facility contains a maximum consolidated leverage ratio financial covenant requiring maintenance of a maximum ratio of 3.75 to 1.00 for consolidated total indebtedness as of the end of any quarter to consolidated

27

MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

EBITDA for the trailing four quarters as defined in the related credit agreements. The Company is in compliance at March 31, 2020 and expects to remain in compliance for the next twelve months.

Fair Value

At March 31, 2020 and December 31, 2019, the aggregate fair value of the Company’s outstanding notes was approximately $12.7 billion and $13.4 billion, respectively. The fair values of the outstanding notes were valued at quoted market prices from broker or dealer quotations and were classified as Level 2 in the fair value hierarchy.

Mandatory minimum repayments remaining on the notional amount of outstanding long-term debt at March 31, 2020 were as follows for each of the periods ending December 31:

(In millions)	Total
2020	$	1,429
2021	2,250
2022	—
2023	1,250
2024	1,103
Thereafter	6,629
Total	$	12,661

13. Comprehensive Loss

Accumulated other comprehensive loss, as reflected on the condensed consolidated balance sheets, is comprised of the following:

(In millions)	March 31, 2020			December 31, 2019
Accumulated other comprehensive loss:
Net unrealized gain on marketable securities, net of tax	$	0.8		$	0.6
Net unrecognized loss and prior service cost related to defined benefit plans, net of tax	(19.0		)	(17.4		)
Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax	(70.1		)	(31.6		)
Net unrecognized loss on derivatives in net investment hedging relationships, net of tax	(34.1		)	(74.3		)
Foreign currency translation adjustment	(2,331.1		)	(1,674.5		)
	$	(2,453.5	)	$	(1,797.2	)

28

MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Components of accumulated other comprehensive loss, before tax, consist of the following, for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31, 2020
	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, 2019, net of tax				$	(31.6	)	$	(74.3	)	$	0.6	$	(17.4	)	$	(1,674.5	)	$	(1,797.2	)
Other comprehensive (loss) earnings before reclassifications, before tax				(52.4		)	42.3			0.2		(1.8		)	(656.6		)	(668.3		)
Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax:
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales	(0.1	)		(0.1		)												(0.1		)
Loss on interest rate swaps classified as cash flow hedges, included in interest expense			1.1	1.1														1.1
Amortization of prior service costs included in SG&A												—						—
Amortization of actuarial gain included in SG&A												0.2						0.2
Net other comprehensive (loss) earnings, before tax				(51.4		)	42.3			0.2		(1.6		)	(656.6		)	(667.1		)
Income tax (benefit) provision				(12.9		)	2.1			—		—			—			(10.8		)
Balance at March 31, 2020, net of tax				$	(70.1	)	$	(34.1	)	$	0.8	$	(19.0	)	$	(2,331.1	)	$	(2,453.5	)

29

MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

	Three Months Ended March 31, 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				24.5			58.1			0.4		0.1			(338.5		)	(255.4		)
Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax:
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales	(0.3	)		(0.3		)												(0.3		)
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 SG&A												0.3						0.3
Amortization of actuarial loss included in SG&A												(0.2		)				(0.2		)
Net other comprehensive earnings (loss), before tax				26.0			58.1			0.4		0.2			(338.5		)	(253.8		)
Income tax provision (benefit)				8.8			2.9			—		0.1			—			11.8
Cumulative effect of the adoption of new accounting standards				(3.4		)	—			—		(0.2		)	—			(3.6		)
Balance at March 31, 2019, net of tax				$	(39.3	)	$	(75.7	)	$	0.4	$	1.6		$	(1,597.5	)	$	(1,710.5	)

14. 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 over-the-counter 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 research and development (“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

30

MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

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 2019 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 March 31, 2020
Net sales	$	955.5	$	1,021.9	$	610.8	$	—		$	2,588.2
Other revenue	19.5		4.2		7.3		—			31.0
Intersegment revenue	41.0		28.4		120.1		(189.5		)	—
Total	$	1,016.0	$	1,054.5	$	738.2	$	(189.5	)	$	2,619.2
Segment profitability	$	444.9	$	275.6	$	68.2	$	—		$	788.7
Intangible asset amortization expense										(351.2		)
Globally managed research and development costs										(25.7		)
Corporate costs and special items										(225.3		)
Litigation settlements & other contingencies										(1.8		)
Earnings from operations										$	184.7

(In millions)	North America		Europe		Rest of World		Eliminations			Consolidated
Three Months Ended March 31, 2019
Net sales	$	922.9	$	895.3	$	642.4	$	—		$	2,460.6
Other revenue	22.1		4.7		8.1		—			34.9
Intersegment revenue	15.6		20.8		113.3		(149.7		)	—
Total	$	960.6	$	920.8	$	763.8	$	(149.7	)	$	2,495.5
Segment profitability	$	394.5	$	204.1	$	93.8	$	—		$	692.4
Intangible asset amortization expense										(405.5		)
Intangible asset impairment charges										(29.5		)
Globally managed research and development costs										(70.6		)
Corporate costs and special items										(162.1		)
Litigation settlements & other contingencies										(0.7		)
Earnings from operations										$	24.0

31

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

15. Restructuring

2020 Restructuring Program

On February 27, 2020, the Company announced that it has formalized the next steps in its efforts to sustain long-term value creation through the proactive transformation of its business. This transformation initiative includes a new global restructuring program. The program is intended to support the Company’s effort to improve operating performance and meet anticipated market demands, by ensuring that the Company is appropriately structured and resourced to deliver sustainable value to customers, patients, other stakeholders and shareholders. Key activities under the program include supply chain network optimization intended to maximize the efficiency of the Company’s global manufacturing and distribution network capacity and further optimizing functional capabilities that support business growth.

The Company is currently developing the details of the initiatives, including workforce actions and other restructuring activities. Further details will be disclosed as plans are finalized, including the estimated amount or range of amounts to be incurred by major cost type and future cash expenditures associated with those initiatives. As a result of the COVID-19 pandemic and the related uncertainty and complexity of the current environment, the Company has delayed the implementation of the 2020 restructuring program.

2016 Restructuring Program

On December 5, 2016, the Company announced a restructuring program representing a series of actions in certain locations that are anticipated to further streamline its operations globally. Since 2015, the Company has made a number of significant acquisitions, and as part of the holistic, global integration of these acquisitions, the Company is focused on how to best optimize and maximize all of its assets across the organization and across all geographies.

Charges for restructuring and ongoing cost reduction initiatives are recorded in the period the Company commits to a restructuring or cost reduction plan, or executes specific actions contemplated by the plan and all criteria for liability recognition have been met.

During the second quarter of 2018, the Company commenced comprehensive restructuring and remediation activities, which are aimed at reducing the complexity at the Morgantown, West Virginia plant and include the discontinuation and transfer to other manufacturing sites of a number of products, a reduction of the workforce and extensive process and facility remediation. The restructuring actions other than for this plant are substantially complete. At this time, the total expenses related to the additional restructuring and remediation activities at the Morgantown plant cannot be reasonably estimated.

The following table summarizes the restructuring charges and the reserve activity from December 31, 2019 to March 31, 2020:

(In millions)	Employee Related Costs			Other Exit Costs			Total
Balance at December 31, 2019:	$	26.4		$	2.8		$	29.2
Charges (1)	2.9			4.7			7.6
Cash payment	(6.0		)	(0.9		)	(6.9		)
Utilization	—			(3.7		)	(3.7		)
Foreign currency translation	(0.4		)	(0.1		)	(0.5		)
Balance at March 31, 2020:	$	22.9		$	2.8		$	25.7

____________

⁽¹⁾ For the three months ended March 31, 2020, total restructuring charges in North America, Europe, Rest of World, and corporate were approximately $4.4 million, $2.4 million, $0.3 million, and $0.5 million, respectively.

At March 31, 2020 and December 31, 2019, accrued liabilities for restructuring and other cost reduction programs were primarily included in other current liabilities in the condensed consolidated balance sheets.

32

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

16. Collaboration and Licensing Agreements

We periodically enter into collaboration and licensing agreements with other pharmaceutical companies for the development, manufacture, marketing and/or sale of pharmaceutical products. Our significant collaboration agreements are primarily focused on the development, manufacturing, supply and commercialization of multiple, high-value generic biologic compounds, insulin analog products and respiratory products, among other complex products. Under these agreements, we have future potential milestone payments and co-development expenses payable to third parties as part of our licensing, development and co-development programs. Payments under these agreements generally become due and are payable upon the satisfaction or achievement of certain developmental, regulatory or commercial milestones or as development expenses are incurred on defined projects. Milestone payment obligations are uncertain, including the prediction of timing and the occurrence of events triggering a future obligation and are not reflected as liabilities in the condensed consolidated balance sheets, except for obligations reflected as acquisition related contingent consideration. Refer to Note 11 Financial Instruments and Risk Management for further discussion of contingent consideration. Our potential maximum development milestones not accrued for at March 31, 2020 totaled approximately $404 million. We estimate that the amounts that may be paid through the end of 2020 to be approximately $94 million. These agreements may also include potential sales-based milestones and call for us to pay a percentage of amounts earned from the sale of the product as a royalty or a profit share. The amounts disclosed do not include sales-based milestones or royalty or profit share obligations on future sales of product as the timing and amount of future sales levels and costs to produce products subject to these obligations is not reasonably estimable. These sales-based milestones or royalty or profit share obligations may be significant depending upon the level of commercial sales for each product.

On February 28, 2018, the Company and Revance Therapeutics, Inc. (“Revance”) entered into a collaboration agreement (the “Revance Collaboration Agreement”) pursuant to which the Company and Revance will collaborate exclusively, on a world-wide basis (excluding Japan), to develop, manufacture and commercialize a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX®.

On August 22, 2019, the Company and Revance entered into an amendment (the “Amendment”) to the Revance Collaboration Agreement, pursuant to which Revance has agreed to extend the period of time for the Company to decide whether to continue the development and commercialization of a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX® beyond the initial development plan to prepare for and conduct the Biosimilar Initial Advisory Meeting (BIAM) with the U.S. Food and Drug Administration. In accordance with the Amendment, the Company is required to notify Revance of its decision on or before the later of (i) April 30, 2020 or (ii) thirty calendar days from the date that Revance provides Mylan with certain deliverables. The Company is continuing discussions with Revance on whether to move forward with the program and expects to provide its decision by May 31, 2020.

There have been no other significant changes to our collaboration and licensing agreements as disclosed in our 2019 Form 10-K.

17. Income Taxes

CARES Act

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted and signed into law. The CARES Act includes several provisions, including increasing the amount of deductible interest, allowing companies to carryback certain Net Operating Losses (“NOLs”) and increasing the amount of NOLs that corporations can use to offset income. We anticipate that the applicable provisions of the CARES Act will reduce our 2020 income tax expense by approximately $30.0 million. We will continue to monitor and assess the impact the CARES Act may have on our business and financial results.

Tax Examinations

The Company is subject to income taxes and tax audits in many jurisdictions. A certain degree of estimation is thus required in recording the assets and liabilities related to income taxes. Tax audits and examinations can involve complex issues, interpretations, and judgments and the resolution of matters that may span multiple years, particularly if subject to litigation or negotiation.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Although the Company believes that adequate provisions have been made for these uncertain tax positions, the Company’s assessment of uncertain tax positions is based on estimates and assumptions that the Company believes are reasonable but the estimates for unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variations from such estimates could materially affect the Company’s financial condition, results of operations or cash flows in the period of resolution, settlement or when the statutes of limitations expire.

Mylan is subject to ongoing IRS examinations. The years 2015 through 2018 are open years under examination. The years 2012, 2013 and 2014 have one matter open, and a Tax Court petition has been filed regarding the matter and a trial was held in December 2018 and is discussed further below.

Several international audits are currently in progress. In some cases, the tax auditors have proposed adjustments to our tax positions including with respect to intercompany transactions, and we are in ongoing discussions with the auditors regarding the validity of their positions. In certain cases, these audits can also result in non-tax consequences. For example, under French law, certain tax matters are automatically referred for criminal investigation.

The Company’s major state taxing jurisdictions remain open from fiscal year 2013 through 2018, with several state audits currently in progress. The Company’s major international taxing jurisdictions remain open from 2012 through 2018, some of which are indemnified by Strides Arcolab Limited (“Strides Arcolab”) for tax assessments.

Tax Court Proceedings

The Company's U.S. federal income tax returns for 2012 through 2014 had been subject to proceedings in U.S. Tax Court involving a dispute with the IRS regarding whether certain costs related to abbreviated new drug applications (“ANDAs”) were eligible to be expensed and deducted immediately or required to be amortized over longer periods. A trial was held in U.S. Tax Court in December 2018. Both parties delivered their final post-trial briefs on June 27, 2019 and are awaiting the court’s final decision.

Accounting for Uncertainty in Income Taxes

The impact of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority must be recognized at the largest amount that is more likely than not to be sustained. No portion of an uncertain tax position will be recognized if the position has less than a 50% likelihood of being sustained.

During the three months ended March 31, 2019, primarily due to the expiration of federal and foreign statutes of limitations expirations, the Company reduced its net liability for unrecognized tax benefits by approximately $83.8 million.

18. Litigation

The Company is involved in various disputes, governmental and/or regulatory inquiries, investigations and proceedings, tax proceedings and litigation matters, both in the U.S. and abroad, that arise from time to time, some of which could result in losses, including damages, fines and/or civil penalties, and/or criminal charges against the Company. These matters are often complex and have outcomes that are difficult to predict. The Company is also party to certain proceedings and litigation matters for which it may be entitled to indemnification under the respective sale and purchase agreements relating to the acquisitions of the former Merck Generics business, Agila Specialties Private Limited, Abbott Laboratories’ non-U.S. developed markets specialty and branded generics business, and certain other acquisitions.

While the Company believes that it has meritorious defenses with respect to the claims asserted against it and intends to vigorously defend its position, the process of resolving these matters is inherently uncertain and may develop over a long period of time, and so it is not possible to predict the ultimate resolution of any such matter. It is possible that an unfavorable resolution of any of the ongoing matters or the inability or denial of Merck KGaA, Strides Arcolab Limited, Abbott Laboratories, or another indemnitor or insurer to pay an indemnified claim, could have a material adverse effect on the Company’s business, financial condition, results of operations, cash flows and/or ordinary share price.

Some of these governmental inquiries, investigations, proceedings and litigation matters with which the Company is involved are described below, and unless otherwise disclosed, the Company is unable to predict the outcome of the matter or to provide an estimate of the range of reasonably possible material losses. The Company records accruals for loss contingencies to the extent we conclude it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

The Company is also involved in other pending proceedings for which, in the opinion of the Company based upon facts and circumstances known at the time, either the likelihood of loss is remote or any reasonably possible loss associated with the resolution of such proceedings is not expected to be material to the Company’s business, financial position, results of operations, cash flows and/or ordinary share price. If and when any reasonably possible losses associated with the resolution of such other pending proceedings, in the opinion of the Company, become material, the Company will disclose such matters.

Legal costs are recorded as incurred and are classified in SG&A in the Company’s condensed consolidated statements of operations.

Modafinil Antitrust Litigation

Beginning in April 2006, Mylan and four other drug manufacturers were named as defendants in civil lawsuits filed in or transferred to the U.S. District Court for the Eastern District of Pennsylvania (“EDPA”) by a variety of plaintiffs purportedly representing direct and indirect purchasers of the drug modafinil and in a lawsuit filed by Apotex, Inc., a manufacturer of generic drugs. These actions alleged violations of federal antitrust and state laws in connection with the generic defendants’ settlement of patent litigation with Cephalon relating to modafinil. Mylan has settled the lawsuits filed by the putative direct purchaser class and retailer opt-out plaintiffs and Apotex and has entered into a settlement agreement with the putative indirect purchasers for approximately $14.4 million, which the Court granted final approval of on April 21, 2020.

On July 10, 2015, the Louisiana Attorney General filed a lawsuit in the 19th Judicial District Court in Louisiana against Mylan and three other drug manufacturers asserting state law claims based on the same underlying allegations as those made in the litigation then pending in the EDPA. On December 8, 2016, the District Court dismissed the lawsuit with prejudice, which the State of Louisiana appealed. The appeals court subsequently remanded the lawsuit to the District Court to include certain language in order to make the District Court’s dismissal decision final and appealable.

The Company believes that it has strong defenses to the remaining case. Although it is reasonably possible that the Company may incur additional losses from these matters, any amount cannot be reasonably estimated at this time.

The Company recorded and paid approximately $18.0 million of expense during the year ended December 31, 2019. At December 31, 2019 and March 31, 2020, the Company has a total accrual of approximately $14.4 million related to this matter, which is included in other current liabilities in the condensed consolidated balance sheets.

Pioglitazone

Beginning in December 2013, Mylan, Takeda, and several other drug manufacturers were named as defendants in civil lawsuits consolidated in the U.S. District Court for the Southern District of New York (“SDNY”) by plaintiffs which purport to represent direct and indirect purchasers of branded or generic Actos® and Actoplus Met®. These actions allege violations of state and federal competition laws in connection with the defendants’ settlements of patent litigation in 2010 related to Actos® and Actoplus Met®. Mylan’s motion to dismiss the indirect purchasers’ complaint was granted and no appeal was filed as to Mylan. Following the appellate decision relating to other defendants, the direct purchasers filed an amended complaint against Mylan and the other manufacturers. Mylan’s motion to dismiss was granted with prejudice on October 8, 2019.

Trade Agreements Act (“TAA”)

On April 9, 2018, a subsidiary of Mylan N.V. received a civil investigative demand from the Commercial Litigation Branch of the U.S. Department of Justice (“DOJ”) concerning its TAA compliance for certain products. The company fully cooperated with DOJ. On September 14, 2018, the United States District Court for the Southern District of Ohio unsealed a qui tam lawsuit filed against the Mylan N.V. subsidiary concerning its TAA compliance for the same products identified in DOJ’s civil investigative demand. DOJ has declined to intervene in the lawsuit and has closed its investigation. The lawsuit has been stayed and we believe that its claims are without merit and intend to defend against them vigorously.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

EpiPen® Auto-Injector and Certain Congressional Matters

Department of Veterans Affairs Request for Information

On June 30, 2017, the Company responded to a request for information from the Department of Veterans Affairs (“VA”) (acting on behalf of itself and other government agencies) requesting certain historical pricing data related to the EpiPen® Auto-Injector. The Company and the VA have been engaged in a continuing dialogue regarding the classification of the EpiPen® Auto-Injector as a covered drug under Section 603 of the Veterans Health Care Act of 1992, Public Law 102-585. The Company historically classified EpiPen® Auto-Injector as a non-covered drug with the VA based upon long standing written guidance from the federal government. The Company has voluntarily reclassified the EpiPen® Auto-Injector as a covered drug, effective from April 1, 2017. The Company is fully cooperating with the VA.

EpiPen® Auto-Injector Civil Litigation

Mylan Specialty and other Mylan-affiliated entities have been named as defendants in putative indirect purchaser class actions relating to the pricing and/or marketing of the EpiPen® Auto-Injector. The plaintiffs in these cases assert violations of various federal and state antitrust and consumer protection laws, the Racketeer Influenced and Corrupt Organizations Act (“RICO”), as well as common law claims. Plaintiffs’ claims include purported challenges to the prices charged for the EpiPen® Auto-Injector and/or the marketing of the product in packages containing two auto-injectors, as well as allegedly anti-competitive conduct. A Mylan officer and other non-Mylan affiliated companies were also named as defendants in some of the class actions. These lawsuits were filed in the various federal and state courts and have either been dismissed or transferred into a multidistrict litigation (“MDL”) in the U.S. District Court for the District of Kansas and have been consolidated. Mylan filed a motion to dismiss the consolidated amended complaint, which was granted in part and denied in part. On December 7, 2018, the Plaintiffs filed a motion for class certification. On February 27, 2020, the District Court issued an order denying in part and granting in part Plaintiffs’ motion for class certification. The District Court declined to certify consumer protection and unjust enrichment damages classes, as well as an injunctive relief class. The District Court certified an antitrust class that applies to 17 states and a RICO class. We filed a petition for permission to appeal the class certification decision on March 12, 2020, which is pending before the Tenth Circuit. A trial date has been scheduled for April 2021. We believe that the remaining claims in these lawsuits are without merit and intend to defend against them vigorously.

On February 14, 2020, Mylan Specialty and other Mylan-affiliated entities, together with other non-Mylan affiliated companies, were named as defendants in a putative direct purchaser class action filed in the U.S. District Court for the District of Kansas relating to the pricing and/or marketing of the EpiPen® Auto-Injector. The plaintiff in this case asserts federal antitrust claims which are based on allegations that are similar to those in the putative indirect purchaser class actions discussed above. We believe that the claims in this lawsuit are without merit and intend to defend against them vigorously.

On March 29, 2020, Mylan Inc. and Mylan Specialty, together with other non-Mylan affiliated companies, were named as defendants in a putative direct purchaser class action filed in the U.S. District Court for the District of Minnesota relating to contracts with certain pharmacy benefit managers concerning EpiPen® Auto-Injector. The plaintiff claims that the alleged conduct resulted in the exclusion or restriction of competing products and the elimination of pricing constraints in violation of RICO and federal antitrust law. We believe that the claims in this lawsuit are without merit and intend to defend against them vigorously.

On April 24, 2017, Sanofi-Aventis U.S., LLC (“Sanofi”) filed a lawsuit against Mylan Inc. and Mylan Specialty in the U.S. District Court for the District of New Jersey. This lawsuit has been transferred into the aforementioned MDL. In this lawsuit, Sanofi alleges exclusive dealings and anti-competitive marketing practices in violation of the antitrust laws in connection with the sale and marketing of the EpiPen® Auto-Injector. On November 1, 2018, Sanofi filed a Motion for a Suggestion of Remand of the case to the U.S. District Court for the District of New Jersey. On January 23, 2019, the Court denied Sanofi’s motion without prejudice. On June 28, 2019, Mylan filed a motion for summary judgment as to the claims asserted by Sanofi and Sanofi filed both a motion for partial summary judgment with respect to its claims against Mylan and for summary judgment with respect to Mylan’s counterclaims. These motions remain pending. We believe that Sanofi’s claims in this lawsuit are without merit and intend to defend against them vigorously.

The Company has a total accrual of approximately $10.0 million related to this matter at March 31, 2020, which is included in other current liabilities in the condensed consolidated balance sheets. The Company believes that it has strong defenses to current and future potential civil litigation, as well as governmental investigations and enforcement proceedings,

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

discussed in this “EpiPen® Auto-Injector and Certain Congressional Matters” section of this Note 18 Litigation. Although it is reasonably possible that the Company may incur additional losses from these matters, any amount cannot be reasonably estimated at this time. In addition, the Company expects to incur additional legal and other professional service expenses associated with such matters in future periods and will recognize these expenses as services are received. The Company believes that the ultimate amount paid for these services and claims could have a material effect on the Company's business, financial condition, results of operations, cash flows and/or ordinary share price in future periods.

Drug Pricing Matters

Department of Justice

On December 3, 2015, a subsidiary of Mylan N.V. received a subpoena from the Antitrust Division of the DOJ seeking information relating to the marketing, pricing, and sale of our generic Doxycycline products and any communications with competitors about such products.

On September 8, 2016, a subsidiary of Mylan N.V., as well as certain employees and a member of senior management, received subpoenas from the DOJ seeking additional information relating to the marketing, pricing and sale of our generic Cidofovir, Glipizide-metformin, Propranolol and Verapamil products and any communications with competitors about such products. Related search warrants also were executed.

On May 10, 2018, a subsidiary of Mylan N.V. received a civil investigative demand from the Civil Division of the DOJ seeking information relating to the pricing and sale of its generic drug products.

The Company is fully cooperating with the DOJ.

Civil Litigation

Beginning in 2016, the Company, along with other manufacturers, has been named as a defendant in lawsuits generally alleging anticompetitive conduct with respect to generic drugs. The lawsuits have been filed by plaintiffs, including putative classes of direct purchasers, indirect purchasers, and indirect resellers, as well as individual direct and indirect purchasers and certain counties. They allege harm under federal and state laws, including federal and state antitrust laws, state consumer protection laws and unjust enrichment claims.  Some of the lawsuits also name as defendants Mylan’s President, including allegations against him with respect to doxycycline hyclate delayed release, and one of Mylan’s sales employees, including allegations against him with respect to certain generic drugs. The lawsuits have been consolidated in an MDL proceeding in the EDPA. Defendants filed motions to dismiss certain complaints that each allege anticompetitive conduct with respect to single drug products. On October 16, 2018, the Court denied the motions with respect to the federal law claims. On February 15, 2019, the Court granted in part and denied in part the motions with respect to the state law claims. On February 21, 2019, Defendants filed a motion to dismiss certain complaints that allege anticompetitive conduct with respect to multiple drug products, which was denied on August 15, 2019. The Company believes that the claims in these lawsuits are without merit and intends to defend against them vigorously.

Attorneys General Litigation

On December 21, 2015, the Company received a subpoena and interrogatories from the Connecticut Office of the Attorney General seeking information relating to the marketing, pricing and sale of certain of the Company’s generic products (including generic doxycycline) and communications with competitors about such products. On December 14, 2016, attorneys general of certain states originally filed a complaint in the United States District Court for the District of Connecticut against several generic pharmaceutical drug manufacturers, including Mylan, alleging anticompetitive conduct with respect to, among other things, doxycycline hyclate delayed release. The complaint has subsequently been amended, including on June 18, 2018, to add attorneys general alleging violations of federal and state antitrust laws, as well as violations of various states’ consumer protection laws. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA. The operative complaint includes attorneys general of forty-seven states, the District of Columbia and the Commonwealth of Puerto Rico. Mylan is alleged to have engaged in anticompetitive conduct with respect to doxycycline hyclate delayed release, doxycycline monohydrate, glipizide-metformin, and verapamil. The amended complaint also includes claims asserted by attorneys general of thirty-seven states and the Commonwealth of Puerto Rico against certain individuals, including Mylan’s President, with respect to doxycycline hyclate delayed release. On February 21, 2019, Defendants filed motions to dismiss the amended

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

complaint’s allegations of anticompetitive conduct with respect to multiple drug products, which was denied on August 15, 2019, and the ability of the state attorneys general to seek certain forms of relief under federal antitrust law, which remains pending. On May 31, 2019, Defendants filed a motion to dismiss certain state law claims, which remains pending.

On May 10, 2019, certain attorneys general filed a new complaint against various drug manufacturers and individuals, including Mylan and one of its sales employees, alleging anticompetitive conduct with respect to additional generic drugs. On November 1, 2019, the May 10, 2019 complaint was amended, adding additional states as plaintiffs. The operative complaint was brought by attorneys general of forty-eight states, the District of Columbia, the Commonwealths of Puerto Rico and the Northern Mariana Islands and the Territories of American Samoa and Guam. The amended complaint also includes claims asserted by attorneys general of forty-three states, the Commonwealths of Puerto Rico and the Northern Mariana Islands and the Territories of American Samoa and Guam against several individuals, including a Mylan sales employee.

We believe that the claims in these lawsuits are without merit and intend to defend against them vigorously.

Securities Litigation

U.S. Securities Litigation

Purported class action complaints were filed in October 2016 against Mylan N.V., Mylan Inc. and certain of their current and former directors and officers (collectively, for purposes of this paragraph, the “defendants”) in the SDNY on behalf of certain purchasers of securities of Mylan N.V. and/or Mylan Inc. on the NASDAQ. The complaints alleged that defendants made false or misleading statements and omissions of purportedly material fact, in violation of federal securities laws, in connection with disclosures relating to Mylan N.V. and Mylan Inc.’s classification of their EpiPen® Auto-Injector as a non-innovator drug for purposes of the MDRP. The complaints sought damages, as well as the plaintiffs’ fees and costs. On March 20, 2017, a consolidated amended complaint was filed, alleging substantially similar claims and seeking substantially similar relief, but adding allegations that defendants made false or misleading statements and omissions of purportedly material fact in connection with allegedly anticompetitive conduct with respect to EpiPen® Auto-Injector and certain generic drugs, and alleging violations of both federal securities laws (on behalf of a purported class of certain purchasers of securities of Mylan N.V. and/or Mylan Inc. on the NASDAQ) and Israeli securities laws (on behalf of a purported class of certain purchasers of securities of Mylan N.V. on the Tel Aviv Stock Exchange). On March 28, 2018, defendants’ motion to dismiss the consolidated amended complaint was granted in part (including the dismissal of claims arising under Israeli securities laws) and denied in part. On July 6, 2018, the plaintiffs filed a second amended complaint, including certain current and former directors and officers and additional allegations in connection with purportedly anticompetitive conduct with respect to EpiPen® Auto-Injector and certain generic drugs. On August 6, 2018, defendants filed a motion to dismiss the second amended complaint, which was granted in part and denied in part on March 29, 2019. On June 17, 2019, plaintiffs filed a third amended complaint, including certain current and former directors and employees/officers and additional allegations in connection with purportedly anticompetitive conduct with respect to certain generic drugs. On July 31, 2019, defendants filed a motion to dismiss certain of the claims in the third amended complaint, which was granted in part and denied in part on April 6, 2020. On August 30, 2019, plaintiffs filed a motion for class certification, which was granted on April 6, 2020. The certified class covers all persons or entities that purchased Mylan common stock between February 21, 2012 and May 24, 2019 excluding defendants, current and former officers and directors of Mylan, members of their immediate families and their legal representatives, heirs, successors or assigns, and any entity in which defendants have or had a controlling interest.

On February 26, 2019, MYL Litigation Recovery I LLC (an assignee of entities that purportedly purchased stock of Mylan N.V.) filed an additional complaint against Mylan N.V., Mylan Inc., and certain of their current and former directors and officers in the SDNY asserting allegations pertaining to EpiPen® Auto-Injector under the federal securities laws that overlap in part with those asserted in the third amended complaint identified above. MYL Litigation Recovery I LLC’s complaint seeks damages as well as the plaintiff’s costs. On June 5, 2019, defendants filed a motion to dismiss certain of MYL Litigation Recovery I LLC’s claims, which was granted in part and denied in part on March 30, 2020. On May 6, 2020, plaintiff filed an amended complaint against Mylan N.V, Mylan Inc., and certain of their current and former officers and directors, including allegations in connection with purportedly anticompetitive conduct with respect to EpiPen® Auto-Injector.

On February 14, 2020, the Abu Dhabi Investment Authority filed a complaint against Mylan N.V. and Mylan Inc. in the SDNY asserting allegations pertaining to EpiPen® Auto-Injector and certain generic drugs under the federal securities laws that overlap with those asserted in the third amended complaint identified above. The Abu Dhabi Investment Authority’s complaint seeks damages as well as the plaintiff’s fees and costs.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Beginning in April 2020, Mylan N.V., its directors and certain of its officers were named as defendants in lawsuits filed in federal court, including a putative class action, alleging certain federal securities law violations for purportedly failing to disclose or misrepresenting material information in the definitive proxy statement filed by Mylan N.V. with the SEC in connection with the Combination. The lawsuits generally seek various relief including (i) enjoining the defendants from proceeding with consummating, or closing the Combination and any vote on the Combination unless and until Mylan discloses and disseminates the purportedly material information; (ii) in the event the Combination is consummated, rescinding it and setting it aside or awarding rescissory damages; and (iii) reasonable attorneys and expert fees. 

We believe that the claims in these lawsuits are without merit and intend to defend against them vigorously.

Israeli Securities Litigation

On October 13, 2016, a purported shareholder of Mylan N.V. filed a lawsuit, together with a motion to certify the lawsuit as a class action on behalf of certain Mylan N.V. shareholders on the Tel Aviv Stock Exchange, against Mylan N.V. and four of its directors and officers (collectively, for purposes of this paragraph, the “defendants”) in the Tel Aviv District Court (Economic Division) (the “Friedman Action”). The plaintiff alleges that the defendants made false or misleading statements and omissions of purportedly material fact in Mylan N.V.’s reports to the Tel Aviv Stock Exchange regarding Mylan N.V.’s classification of its EpiPen® Auto-Injector for purposes of the MDRP, in violation of both U.S. and Israeli securities laws, the Israeli Companies Law and the Israeli Torts Ordinance. The plaintiff seeks damages, among other remedies. On April 30, 2017, another purported shareholder of Mylan N.V. filed a separate lawsuit, together with a motion to certify the lawsuit as a class action on behalf of certain Mylan N.V. shareholders on the Tel Aviv Stock Exchange, in the Tel Aviv District Court (Economic Division), alleging substantially similar claims and seeking substantially similar relief against the defendants and other directors and officers of Mylan N.V., but alleging also that this group of defendants made false or misleading statements and omissions of purportedly material fact in connection with allegedly anticompetitive conduct with respect to EpiPen® Auto-Injector and certain generic drugs, and alleging violations of both U.S. federal securities laws and Israeli law (the “IEC Fund Action”). On April 10, 2018, the Tel Aviv District Court granted the motion filed by plaintiffs in both the Friedman Action and the IEC Fund Action, voluntarily dismissing the Friedman Action and staying the IEC Fund Action until a judgment is issued in the purported class action securities litigation pending in the U.S. We believe that the claims in the IEC Fund Action are without merit and intend to defend against them vigorously.

Opioids

On July 27, 2017, Mylan N.V. received a subpoena from the DOJ seeking information relating to opioids manufactured, marketed or sold by Mylan during the period from January 1, 2013 to December 31, 2016. On August 29, 2017, Mylan N.V. received a civil investigative demand from the Attorney General of the State of Missouri seeking information relating to opioids manufactured, marketed or sold by Mylan during the period from January 1, 2010 to the present and related subject matter. In November 2019, a subsidiary of Mylan N.V. received a subpoena from the New York Department of Financial Services as part of an industry-wide inquiry into the effect of opioid prescriptions on New York health insurance premiums. Mylan is fully cooperating with these subpoena requests.

Mylan along with other manufacturers, distributors, pharmacies, pharmacy benefit managers, and individual healthcare providers is a defendant in more than 1,000 cases in the United States and Canada filed by various plaintiffs, including counties, cities and other local governmental entities, asserting civil claims related to sales, marketing and/or distribution practices with respect to prescription opioid products. In addition, lawsuits have been filed as putative class actions including on behalf of children with Neonatal Abstinence Syndrome due to alleged exposure to opioids. The lawsuits generally seek equitable relief and monetary damages (including punitive and/or exemplary damages) based on a variety of legal theories, including various statutory and/or common law claims, such as negligence, public nuisance and unjust enrichment. The vast majority of these lawsuits have been consolidated in an MDL in the U.S. District Court for the Northern District Court of Ohio. Mylan believes that the claims in these lawsuits are without merit and intends to defend against them vigorously.

Valsartan

Mylan N.V., and certain of its subsidiaries, along with numerous other manufacturers, retailers and others, have been named (or plaintiffs are seeking to name certain Mylan entities) as defendants in lawsuits in the United States, Canada and other countries stemming from recalls of valsartan-containing medications. The United States litigation, which is taking place in an MDL in the District of New Jersey, includes class action and individual allegations seeking the refund of the purchase price and

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

other economic damages allegedly sustained by consumers who purchased valsartan-containing products as well as claims for personal injuries allegedly caused by ingestion of the medication. Moreover, Mylan has received requests to indemnify purchasers of Mylan’s active pharmaceutical ingredient and/or finished dose forms of the product. We believe that the claims in these lawsuits are without merit and intend to defend against them vigorously.

European Commission Proceedings

Perindopril

On July 9, 2014, the European Commission (the “Commission”) issued a decision finding that Mylan Laboratories Limited and Mylan, as well as several other companies, had violated European Union (“EU”) competition rules relating to the product Perindopril and fined Mylan Laboratories Limited approximately €17.2 million, including approximately €8.0 million jointly and severally with Mylan Inc. The Company paid approximately $21.7 million related to this matter during the fourth quarter of 2014. In September 2014, the Company filed an appeal of the Commission’s decision to the General Court of the EU. A hearing on the appeal before the General Court of the EU was held in June 2017 and the Commission’s decision was affirmed. Mylan appealed the decision to the European Court of Justice (“CJEU”). Mylan has received a notice from an organization representing health insurers in the Netherlands stating an intention to commence follow-on litigation and asserting damages.

Citalopram

On June 19, 2013, the Commission issued a decision finding that Generics [U.K.] Limited, (“GUK”) as well as several other companies, had violated EU competition rules relating to the product Citalopram and fined GUK approximately €7.8 million, jointly and severally with Merck KGaA. GUK appealed the Commission’s decision to the General Court of the EU. The case is currently on appeal to the CJEU. The U.K. applied and was granted permission to intervene in this proceeding. GUK has received notices from European national health services and health insurers stating an intention to commence follow-on litigation and asserting damages. The national health service in England and Wales has instituted litigation against all parties to the Commission’s decision, including GUK. This litigation has been stayed pending the CJEU’s decision.

GUK has also sought indemnification from Merck KGaA with respect to the €7.8 million portion of the fine for which Merck KGaA and GUK were held jointly and severally liable. Merck KGaA has counterclaimed against GUK seeking the same indemnification. In June 2018, the Frankfurt Regional Court issued a judgment dismissing GUK claims against Merck KGaA and ordered GUK to indemnify Merck KGaA with respect to the amount for which the parties were held jointly and severally liable. GUK has appealed this decision. The proceedings have been stayed pending the CJEU appeal decision.

The Company has accrued approximately €7.4 million as of each of December 31, 2019 and March 31, 2020 related to this matter. It is reasonably possible that we will incur additional losses above the amount accrued but we cannot estimate a range of such reasonably possible losses at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued.

U.K. Competition and Markets Authority

Paroxetine

On August 12, 2011, GUK received notice that the Office of Fair Trading (subsequently changed to the Competition and Markets Authority (the “CMA”)) opened an investigation to explore the possible infringement of the Competition Act 1998 and Articles 101 and 102 of the Treaty on the Functioning of the EU, with respect to alleged agreements related to Paroxetine. The CMA issued a decision on February 12, 2016, finding that, GUK, Merck KGaA and other companies were liable for infringing EU and U.K. competition rules. With respect to Merck KGaA and GUK, the CMA issued a penalty of approximately £5.8 million, for which Merck KGaA is liable for the entire amount; and of that amount GUK is jointly and severally liable for approximately £2.7 million, which has been accrued for as of December 31, 2019 and March 31, 2020. The matter is currently on appeal to the Competition Appeals Tribunal (“CAT”), which on March 8, 2018, referred certain questions of law to the CJEU. The CJEU sought written observations from GUK, which were filed in September 2018. A hearing on the questions and the parties’ observations was held before the CJEU on September 19, 2019. On January 30, 2020, the CJEU ruled on the questions of law referred to it and the proceedings before the CAT will now resume.

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MYLAN N.V. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Italy Investigation

The Public Prosecutor’s Office in Milan, Italy is conducting an investigation of Mylan S.p.A. and other pharmaceutical companies concerning interactions with an Italian hospital and sales of certain reimbursable drugs. Certain employees of Mylan S.p.A. have been served with search warrants in connection with the investigation. The Company is fully cooperating and assisting its employees in their cooperation with the investigation.   

Product Liability

The Company is involved in a number of product liability lawsuits and claims related to alleged personal injuries arising out of certain products manufactured and/or distributed by the Company. The Company believes that it has meritorious defenses to these lawsuits and claims and intends to defend against them vigorously. From time to time, the Company has agreed to settle or otherwise resolve certain lawsuits and claims on terms and conditions that are in the best interests of the Company. The Company has accrued approximately $14.5 million and $11.8 million at December 31, 2019 and March 31, 2020, respectively. It is reasonably possible that we will incur additional losses and fees above the amount accrued but we cannot estimate a range of such reasonably possible losses or legal fees related to these claims at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued.

Intellectual Property

The Company uses its business judgment to decide to market and sell certain products, in each case based on its belief that the applicable patents are invalid and/or that its products do not infringe, notwithstanding the fact that allegations of patent infringement(s) or other potential third party rights have not been finally resolved by the courts. The risk involved in doing so can be substantial because the remedies available to the owner of a patent for infringement may include, a reasonable royalty on sales or damages measured by the profits lost by the patent owner. If there is a finding of willful infringement, damages may be increased up to three times. Moreover, because of the discount pricing typically involved with bioequivalent products, patented branded products generally realize a substantially higher profit margin than generic and biosimilar products. Mylan intends to defend against any such patent infringement claims vigorously. However, an adverse decision could have an adverse effect that is material to our business, financial condition, results of operations, cash flows and/or ordinary share price.

Other Litigation

The Company is involved in various other legal proceedings that are considered normal to its business. The Company has approximately $7.1 million accrued related to these various other legal proceedings at March 31, 2020.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis addresses material changes in the financial condition and results of operations of Mylan N.V. and subsidiaries for the periods presented. Unless context requires otherwise, the “Company”, “Mylan”, “our”, or “we” refer to Mylan N.V. and its subsidiaries. This discussion and analysis should be read in conjunction with the Consolidated Financial Statements, the related Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Mylan N.V.’s Annual Report on Form 10-K for the year ended December 31, 2019, as amended (the “2019 Form 10-K”), the unaudited interim financial statements and related Notes included in Part I — ITEM 1 of this Quarterly Report on Form 10-Q (“Form 10-Q”) and our other Securities and Exchange Commission (the “SEC”) filings and public disclosures. The interim results of operations and comprehensive earnings for the three months ended March 31, 2020, and cash flows for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full fiscal year or any other future period.

This Form 10-Q contains “forward-looking statements.” Such forward-looking statements may include, without limitation, statements about the proposed Combination (as defined below), the expected timetable for completing the Combination, the benefits and synergies of the Combination, future opportunities for the combined company and products and any other statements regarding Mylan’s, the Upjohn Business’s (as defined below) or the combined company’s future operations, financial or operating results, capital allocation, dividend policy, debt ratio, anticipated business levels, future earnings, planned activities, anticipated growth, market opportunities, strategies, competitions, and other expectations and targets for future periods. These may often be identified by the use of words such as “will,” “may,” “could,” “should,” “would,” “project,” “believe,” “anticipate,” “expect,” “plan,”

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“estimate,” “forecast,” “potential,” “pipeline,” “intend,” “continue,” “target,” “seek” and variations of these words or comparable words. Because forward-looking statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to:

• with respect to the Combination, the parties’ ability to meet expectations regarding the timing, completion and accounting and tax treatments of the Combination, changes in relevant tax and other laws, the parties’ ability to consummate the Combination, the conditions to the completion of the Combination, including receipt of approval of Mylan’s shareholders, not being satisfied or waived on the anticipated timeframe or at all, the regulatory approvals required for the Combination not being obtained on the terms expected or on the anticipated schedule or at all, the integration of Mylan and the Upjohn Business being more difficult, time consuming or costly than expected, Mylan’s and the Upjohn Business’s failure to achieve expected or targeted future financial and operating performance and results, the possibility that the combined company may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the Combination within the expected timeframes or at all or to successfully integrate Mylan and the Upjohn Business, customer loss and business disruption being greater than expected following the Combination, the retention of key employees being more difficult following the Combination, changes in third-party relationships and changes in the economic and financial conditions of the business of Mylan or the Upjohn Business;

• the potential impact of public health outbreaks, epidemics and pandemics, such as the COVID-19 pandemic;

• actions and decisions of healthcare and pharmaceutical regulators;

• failure to achieve expected or targeted future financial and operating performance and results; uncertainties regarding future demand, pricing and reimbursement for our or the Upjohn Business’s products;

• any regulatory, legal, or other impediments to Mylan’s or the Upjohn Business’s ability to bring new products to market, including, but not limited to, where Mylan or the Upjohn Business uses its business judgment and decides to manufacture, market, and/or sell products, directly or through third parties, notwithstanding the fact that allegations of patent infringement(s) have not been finally resolved by the courts (i.e., an “at-risk launch”);

• success of clinical trials and Mylan’s or the Upjohn Business’s ability to execute on new product opportunities;

• any changes in or difficulties with our or the Upjohn Business’s manufacturing facilities, including with respect to remediation and restructuring activities, supply chain or inventory or the ability to meet anticipated demand; the scope, timing, and outcome of any ongoing legal proceedings, including government investigations, and the impact of any such proceedings on our or the Upjohn Business’s financial condition, results of operations, and/or cash flows;

• the ability to meet expectations regarding the accounting and tax treatments of acquisitions; changes in relevant tax and other laws, including but not limited to changes in the U.S. tax code and healthcare and pharmaceutical laws and regulations in the U.S. and abroad;

• any significant breach of data security or data privacy or disruptions to our or the Upjohn Business’s information technology systems; the ability to protect intellectual property and preserve intellectual property rights;

• the effect of any changes in customer and supplier relationships and customer purchasing patterns; the ability to attract and retain key personnel; the impact of competition;

• identifying, acquiring, and integrating complementary or strategic acquisitions of other companies, products, or assets being more difficult, time-consuming or costly than anticipated;

• the possibility that Mylan may be unable to achieve expected synergies and operating efficiencies in connection with business transformation initiatives, strategic acquisitions, strategic initiatives or restructuring programs within the expected timeframes or at all;

• uncertainties and matters beyond the control of management, including but not limited to general political and economic conditions and global exchange rates;

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• and inherent uncertainties involved in the estimates and judgments used in the preparation of financial statements, and the providing of estimates of financial measures, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and related standards or on an adjusted basis.

For more detailed information on the risks and uncertainties associated with Mylan’s business activities, see the risks described in the 2019 Form 10-K, this Form 10-Q and our other filings with the SEC. These risks, as well as other risks associated with Mylan, the Upjohn Business, the combined company and the Combination are also more fully discussed in the Registration Statement on Form S-4, which was filed by Upjohn (as defined below) with the SEC and subsequently amended, and declared effective by the SEC on February 13, 2020, the Registration Statement on Form 10, which has been filed by Upjohn with the SEC and subsequently amended and withdrawn, and is expected to be refiled prior to its effectiveness, a definitive proxy statement, which was filed by Mylan with the SEC on February 13, 2020, and the prospectus, which was filed by Upjohn with the SEC on February 13, 2020. You can access Mylan’s filings with the SEC through the SEC website at www.sec.gov or through our website, and Mylan strongly encourages you to do so. Mylan routinely posts information that may be important to investors on our website at investor.mylan.com, and we use this website address as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure (Reg FD). The contents of our website are not incorporated by reference in this Form 10-Q and shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended. Mylan undertakes no obligation to update any statements herein for revisions or changes after the filing date of this Form 10-Q other than as required by law.

Company Overview

Mylan is a global pharmaceutical company committed to setting new standards in healthcare and providing 7 billion people access to high quality medicine. We offer a portfolio of more than 7,500 products, including prescription generic, branded generic, brand-name drugs and over-the-counter (“OTC”) remedies. We market our products in more than 165 countries and territories. Every member of our approximately 35,000-strong global workforce is dedicated to delivering better health for a better world.

Over the last several years, Mylan has transformed itself through a clear, consistent and differentiated strategy into a company that is built to last. Fueling that durability is a business model anchored in providing access, Mylan’s core purpose.

Providing access requires that we satisfy the needs of an incredibly diverse global marketplace whose economic and political systems, approaches to delivering and paying for healthcare, languages and traditions, and customer and patient requirements vary by location and over time.

With these considerations in mind, we built and scaled our commercial, operational and scientific platforms to meet customers’ evolving needs in ways that are globally consistent and locally sensitive. As a result, not only are we succeeding in expanding people’s access to medicine, we are continually diversifying our business.

That diversification is what drives our durability. Durability allows us to withstand and overcome competitive pressures while continuing to innovate. It also allows us to generate consistent financial results, including reliable cash flows capable of supporting ongoing investments in long-term growth.

Certain Market and Industry Factors

As more fully explained in the 2019 Form 10-K, the global pharmaceutical industry is a highly competitive and highly regulated industry. As a result, we face a number of industry-specific factors and challenges, which can significantly impact our results. The following discussion highlights some of these key factors and market conditions.

Generic products, particularly in the U.S., generally contribute most significantly to revenues and gross margins at the time of their launch, and even more so in periods of market exclusivity, or in periods of limited generic competition. As such, the timing of new product introductions can have a significant impact on the Company’s financial results. The entrance into the market of additional competition generally has a negative impact on the volume and pricing of the affected products. Additionally, pricing is often affected by factors outside of the Company’s control.

For branded products, the majority of the product’s commercial value is usually realized during the period in which the product has market exclusivity. In the U.S. and some other countries, when market exclusivity expires and generic versions of a product are approved and marketed, there can often be very substantial and rapid declines in the branded product’s sales. OTC

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products also participate in a competitive environment that includes both branded and private label products. In the OTC space, value is realized through innovation, access and consumer activation.

Certain markets in which we do business outside of the U.S. have undergone government-imposed price reductions, and further government-imposed price reductions are expected in the future. Such measures, along with the tender systems discussed below, are likely to have a negative impact on sales and gross profit in these markets. However, government initiatives in certain markets that appear to favor generic products could help to mitigate this unfavorable effect by increasing rates of generic substitution and penetration.

Additionally, a number of markets in which we operate outside of the U.S. have implemented, or may implement, tender systems for generic pharmaceuticals in an effort to lower prices. Generally speaking, tender systems can have an unfavorable impact on sales and profitability. Under such tender systems, manufacturers submit bids that establish prices for generic pharmaceutical products. Upon winning the tender, the winning company will receive priority placement for a period of time. The tender system often results in companies underbidding one another by proposing low pricing in order to win the tender. The loss of a tender by a third party to whom we supply active pharmaceutical ingredients can also have a negative impact on our sales and profitability. Sales continue to be negatively affected by the impact of tender systems in certain countries.

Recent Developments

IMPACT OF THE CORONAVIRUS PANDEMIC ON OUR BUSINESS AND RESULTS OF OPERATIONS

As a leading global pharmaceutical company, Mylan is committed to continue doing its part in support of public health needs amid the evolving COVID-19 pandemic.  The Company’s priorities remain protecting the health and safety of our workforce, continuing to produce critically needed medicines, deploying resources and expertise in the fight against COVID-19 through potential prevention and treatment efforts, supporting the communities in which we operate and maintaining the health of our overall business.

The following section discusses the important measures the Company is taking in light of the COVID-19 pandemic.

Employee Health and Safety

• Mylan continues to align with government and health authority guidelines in an effort to safeguard our workforce and continues to make assessments on an ongoing basis.

• While Mylan’s business operations are currently considered essential based on government guidelines throughout the world due to the important role pharmaceutical manufacturers play within the global healthcare system, many Mylan administrative offices are currently operating under work from home protocols.

• Because protecting the health and safety of our workforce remains paramount, Mylan has taken extra precautions at manufacturing facilities to aid in the protection of site personnel and operations, including the implementation of social distancing guidelines, daily health assessments and split shifts where feasible.

• Customer facing field personnel have moved to a remote engagement model to ensure continued support for healthcare professionals, patient care and access to needed products.

• Global restrictions have been placed on travel and in-person meetings.

• Mylan has taken steps to protect the safety of study participants, our employees and staff at clinical trial sites and ensure regulatory compliance and scientific integrity of trial data.

Continuing to Produce Critically Needed Medicines

Manufacturing and Supply

• Mylan has activated worldwide business continuity plans to seek to ensure that our global supply chain platform continues to operate without significant disruption.

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• We currently are not experiencing any significant disruptions to our supply chain, including the availability of active pharmaceutical ingredients, that would delay our ability to provide service to customers and patients.

• All of our manufacturing facilities, and those of our key global partners, are currently operational and, at this time, we have sufficient safety stock to address current needs.

• Mylan continues to engage with regulatory authorities around the world who are committed to maintaining ongoing regulatory processes while also continuing to make available our global research and development ("R&D"), regulatory and manufacturing expertise and capacity to partners who may be in need of additional resources.

Commercial Operations

• We currently are not experiencing any significant negative impact on overall global demand trends. We will continue to monitor trends closely as we work to ensure patients have access to needed medicine.

• Inventory levels, both ours and those in our distribution channel, remain in-line with normal levels and are currently assessed to be sufficient for anticipated demand.

Deploying Resources and Expertise in the Fight Against COVID-19

Clinical Trials

• The Company is donating 10 million tablets of hydroxychloroquine sulfate (200mg) to the U.S. Department of Health and Human Services for possible use under an investigational new drug application authorized by the U.S. Food and Drug Administration ("FDA") or an Emergency Use Authorization granted by the FDA.

• Mylan is also donating product to the World Health Organization (WHO) to support its investigation of the potential effectiveness of several medicines in treating COVID-19 as part of the WHO’s global SOLIDARITY trial.

• Mylan is also working with other public health institution partners currently studying potential prophylactic measures and has designated additional hydroxychloroquine doses for donation.

Maintaining the Health of Our Overall Business

Access to Capital Markets and Liquidity

While currently we do not see any negative liquidity trends related to the COVID-19 pandemic, we continue to closely monitor developments and the potential negative impact on our operating performance and our ability to access the capital markets.

Due to the Company’s ability to generate significant cash flows from operations, as well as its revolving credit agreement, other short-term borrowing facilities and access to capital markets, we believe that we currently have, and will maintain, the ability to meet foreseeable liquidity needs.

Impact on Results of Operations

The global spread of COVID-19 has created significant volatility, uncertainty and economic disruption affecting the markets we serve in North America, Europe and Rest of World, including Asia. The COVID-19 pandemic did not have a material negative impact to our condensed consolidated results of operations in the first quarter of 2020 as we were able to continue manufacturing and distributing products that are essential to the health of patients and consumers across the world. The extent to which the COVID-19 pandemic will impact our business, operations and financial results in future periods will depend on numerous evolving factors that are beyond our control and that we may not be able to accurately predict.

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2020 Restructuring Program

On February 27, 2020, the Company announced that it has formalized the next steps in its efforts to sustain long-term value creation through the proactive transformation of its business. This transformation initiative includes a new global restructuring program. The program is intended to support the Company’s effort to improve operating performance and meet anticipated market demands, by ensuring that the Company is appropriately structured and resourced to deliver sustainable value to customers, patients, other stakeholders and shareholders. Key activities under the program include supply chain network optimization intended to maximize the efficiency of the Company’s global manufacturing and distribution network capacity and further optimizing functional capabilities that support business growth.

The Company is currently developing the details of the initiatives, including workforce actions and other restructuring activities. Further details will be disclosed as plans are finalized, including the estimated amount or range of amounts to be incurred by major cost type and future cash expenditures associated with those initiatives. As a result of the COVID-19 pandemic and the related uncertainty and complexity of the current environment, the Company has delayed the implementation of the 2020 restructuring program.

Upjohn Business Combination Agreement

On July 29, 2019, the Company, Pfizer Inc. (“Pfizer”), Upjohn Inc., a wholly-owned subsidiary of Pfizer (“Upjohn” or “Newco”), and certain other affiliated entities entered into a Business Combination Agreement (the “Business Combination Agreement”) pursuant to which the Company will combine with Pfizer’s Upjohn Business (the “Upjohn Business”) in a Reverse Morris Trust transaction (the “Combination”). Newco, which will be the parent entity of the combined Upjohn Business and Mylan business, will be renamed “Viatris” effective as of the closing of the Combination. The Upjohn Business is a global, primarily off-patent branded and generic established medicines business, which includes 20 primarily off-patent solid oral dose legacy brands, such as Lyrica, Lipitor, Celebrex and Viagra.

Prior to the Combination and pursuant to a Separation and Distribution Agreement (the “Separation Agreement”), dated as of July 29, 2019, between Pfizer and Newco, Pfizer will, among other things, transfer to Newco substantially all of the assets and liabilities comprising the Upjohn Business (the “Separation”) and, thereafter, Pfizer will distribute to Pfizer stockholders all of the issued and outstanding shares of Newco (the “Distribution”). When the Distribution and Combination are completed, Pfizer stockholders as of the record date of the Distribution will own 57% of the outstanding shares of Newco common stock, and Mylan shareholders as of immediately before the Combination will own 43% of the outstanding shares of Newco common stock, in each case on a fully diluted basis. Newco will make a cash payment to Pfizer equal to $12 billion, to be funded with the proceeds of debt to be incurred by Newco in connection with the foregoing transactions, as partial consideration for the contribution of the Upjohn Business from Pfizer to Newco.

Newco has obtained commitments for the initial financing of the transaction in the form of a bridge loan from certain financial institutions. If Newco obtains additional funding by issuing securities or obtaining other loans, the amount of the bridge facility will be correspondingly reduced. The bridge loan is subject to customary terms and conditions including a financial covenant.

            The consummation of the Combination is subject to the satisfaction (or, if applicable, valid waiver) of various conditions, including (a) the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended and the rules and regulations promulgated thereunder and the receipt of regulatory approvals in certain other jurisdictions, (b) the consummation of the Separation and the Distribution in accordance with the terms of the Separation Agreement, (c) the approval of the Combination by Mylan shareholders, (d) the absence of any legal restraint (including legal actions or proceedings pursued by U.S. state authorities in the relevant states) preventing the consummation of the transactions, (e) in the case of Pfizer’s and Newco’s obligations to consummate the transactions, (i) the distribution of $12 billion in cash from Upjohn to Pfizer in accordance with the terms of the Separation Agreement and (ii) the receipt by Pfizer of a U.S. Internal Revenue Service (“IRS”) ruling and tax opinion of its tax counsel with respect to the Combination, and (f) other customary closing conditions. On March 17, 2020, Pfizer received the IRS ruling with respect to the Combination, which is generally binding, unless the relevant facts or circumstances change prior to closing.

On February 13, 2020, the registration statement on Form S-4 filed by Newco in connection with the Combination was declared effective by the SEC, Newco filed a prospectus with the SEC in connection with the Combination and Mylan filed a definitive proxy statement with the SEC in connection with the Combination.

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On March 26, 2020, Mylan and Pfizer announced that due to the unprecedented circumstances surrounding the COVID-19 pandemic, including associated delays in the regulatory review process, the Combination is now anticipated to close in the second half of 2020. It was also announced that, in light of increased meeting and other restrictions due to COVID-19 developments in the Netherlands, Mylan’s extraordinary general meeting of shareholders to approve certain matters in connection with the Combination was rescheduled from April 27, 2020 to June 30, 2020.

2016 Restructuring Program

The Company previously announced a restructuring program representing a series of actions in certain locations that are anticipated to further streamline its operations globally. The restructuring actions, other than the additional restructuring and remediation activities at the Morgantown, West Virginia plant described below, are substantially complete.

In April 2018, the U.S. Food and Drug Administration (the “FDA”) completed an inspection at Mylan’s plant in Morgantown, West Virginia and made observations through a Form 483. The Company submitted a comprehensive response to the FDA and committed to a robust improvement plan. In addition, based upon the Company’s recognition of the continued evolution of industry dynamics and regulatory expectations, during the second quarter of 2018, the Company commenced comprehensive restructuring and remediation activities, which are aimed at reducing the complexity at the Morgantown plant and include the discontinuation and transfer to other manufacturing sites of a number of products, a reduction of the workforce and extensive process and facility remediation. In the fourth quarter of 2018, the Company received a warning letter related to the previously disclosed observations at the plant. The issues raised in the warning letter are being addressed within the context of the Company’s comprehensive restructuring and remediation activities.

We have continued to make significant progress on our comprehensive and ongoing remediation efforts at our Morgantown plant.  This progress is evidenced by the fact that in April 2020 the FDA revised the site compliance classification to Voluntary Action Indicated (“VAI”), and that the plant is considered to be in an acceptable state of compliance with regard to current good manufacturing practice (“CGMP”). On May 11, 2020 we received the close-out of the warning letter.

For the three months ended March 31, 2020, the Company incurred expenses amounting to approximately $61.9 million for incremental manufacturing variances, site remediation and restructuring charges related to the Morgantown plant, as well as continued product rationalization. At this time, the total expenses related to the additional restructuring and remediation activities at the Morgantown plant cannot be reasonably estimated.

Mylan remains committed to maintaining the highest quality manufacturing standards at its facilities around the world and to continuous assessment and improvement in a time of evolving industry dynamics and regulatory expectations.

Financial Summary

The tables below are a summary of the Company’s financial results for the three months ended March 31, 2020 compared to the prior year periods:

	Three Months Ended
	March 31,
(In millions, except per share amounts)	2020		2019			Change		% Change
Total revenues	$	2,619.2	$	2,495.5		$	123.7	5	%
Gross profit	906.1		805.2			100.9		13	%
Earnings from operations	184.7		24.0			160.7		670	%
Net earnings (loss)	20.8		(25.0		)	45.8		183	%
Net earnings (loss) per diluted ordinary share	$	0.04	$	(0.05	)	$	0.09	180	%

A detailed discussion of the Company’s financial results can be found below in the section titled “Results of Operations.” As part of this discussion, we also report sales performance using the non-GAAP financial measures of “constant currency” net sales and total revenues. These measures provide information on the change in net sales and total revenues assuming that foreign currency exchange rates had not changed between the prior and current period. The comparisons

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presented at constant currency rates reflect comparative local currency sales at the prior year’s foreign exchange rates. We routinely evaluate our net sales and total revenues performance at constant currency so that sales results can be viewed without the impact of foreign currency exchange rates, thereby facilitating a period-to-period comparison of our operational activities, and believe that this presentation also provides useful information to investors for the same reason.

More information about non-GAAP measures used by the Company as part of this discussion, including adjusted cost of sales, adjusted gross margins, adjusted net earnings and adjusted EBITDA (all of which are defined below) can be found in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Use of Non-GAAP Financial Measures.”

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Results of Operations

Three Months Ended March 31, 2020 Compared to Three Months Ended March 31, 2019

	Three Months Ended
	March 31,
(In millions)	2020		2019		% Change		2020 Currency Impact (1)		2020 Constant Currency Revenues		Constant Currency % Change (2)
Net sales
North America	$	955.5	$	922.9	4	%	$	1.0	$	956.5	4	%
Europe	1,021.9		895.3		14	%	33.3		1,055.2		18	%
Rest of World	610.8		642.4		(5	)%	29.9		640.7		—	%
Total net sales	2,588.2		2,460.6		5	%	64.2		2,652.4		8	%
Other revenues (3)	31.0		34.9		(11	)%	0.3		31.3		(10	)%
Consolidated total revenues (4)	$	2,619.2	$	2,495.5	5	%	$	64.5	$	2,683.7	8	%

____________

⁽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 2020 constant currency net sales or revenues to the corresponding amount in the prior year.

⁽³⁾  For the three months ended March 31, 2020, other revenues in North America, Europe, and Rest of World were approximately $19.5 million, $4.2 million, and $7.3 million, respectively. For the three months ended March 31, 2019, other revenues in North America, Europe, and Rest of World were approximately $22.1 million, $4.7 million, and $8.1 million, respectively.

⁽⁴⁾  Amounts exclude intersegment revenue that eliminates on a consolidated basis.

Total Revenues

For the three months ended March 31, 2020, Mylan reported total revenues of $2.62 billion, compared to $2.50 billion for the comparable prior year period, representing an increase of $123.7 million, or 5%. Total revenues include both net sales and other revenues from third parties. Net sales for the three months ended March 31, 2020 were $2.59 billion, compared to $2.46 billion for the comparable prior year period, representing an increase of $127.6 million, or 5%. While there were negative impacts on certain of our products due to the COVID-19 pandemic, the Company estimates that overall volume growth in the first quarter of 2020 was favorably impacted by increased customer buying patterns and patient prescription trends resulting from the COVID-19 pandemic, primarily in our Europe segment. We have estimated that the net impact of the pandemic increased net sales and consolidated revenue by approximately 2%. In North America, we experienced slight volume increases for Perforomist and Cold-EEZE related to COVID-19, but these increases were more than offset by volume decreases in Rest of World, mostly in Asian countries, partially the result of COVID-19 where the pandemic impacts started earlier in the first quarter. While the Company currently does not expect the impact of the pandemic in the second quarter to be material, we cannot currently estimate the impact for the rest of the year. Other revenues for the three months ended March 31, 2020 were $31.0 million, compared to $34.9 million for the comparable prior year period.

The increase in net sales was primarily the result of an increase in net sales in the Europe segment of 14% and an increase in net sales in the North America segment of 4%, which were partially offset by a decrease in net sales in the Rest of World segment of 5%. Mylan’s net sales were unfavorably impacted by the effect of foreign currency translation, primarily reflecting changes in the U.S. Dollar as compared to the currencies of Mylan’s subsidiaries in the European Union, India, and Australia. The unfavorable impact of foreign currency translation on current year net sales was approximately $64.2 million, or 3%. On a constant currency basis, the increase in net sales was approximately $191.8 million, or 8% for the three months ended March 31, 2020. This increase was primarily driven by higher volumes of existing products, and to a lesser extent, new product sales, partially offset by lower pricing.

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From time to time, a limited number of our products may represent a significant portion of our net sales, gross profit and net earnings. Generally, this is due to the timing of new product introductions and the amount, if any, of additional competition in the market. Our top ten products in terms of net sales, in the aggregate, represented approximately 22% and 25% for the three months ended March 31, 2020 and 2019, respectively. This percentage may fluctuate based upon many factors, including the timing of new product launches, seasonality and the timing of the discontinuation of products.

Net sales are derived from our three geographic reporting segments: North America, Europe and Rest of World. The graph below shows net sales by segment for the three months ended March 31, 2020 and 2019 and the net change period over period:

North America Segment

Net sales from North America increased by $32.6 million or 4% during the three months ended March 31, 2020 when compared to the prior year period. This increase was due primarily to higher volumes on sales of existing products, and to a lesser extent, new product sales. The higher volumes were primarily driven by the expected growth of Yupelri and Wixela due to the launch timing of each product’s impact on the prior year period. This increase was partially offset by lower net sales of existing products as a result of lower pricing. Lower pricing on sales of existing products was driven by changes in the competitive environment, including for Levothryoxine Sodium. The impact of foreign currency translation on current period net sales was insignificant within North America.

Europe Segment

Net sales from Europe increased by $126.6 million or 14% during the three months ended March 31, 2020 when compared to the prior year period. This increase was primarily the result of higher net sales of existing products, as a result of increased volumes, and to a lesser extent new product sales. In addition to the estimated impact of COVID-19, volumes increased by approximately $40.0 million due to the resolution of supply disruptions encountered in the prior year period. The remainder of the increase was the result of expected net sales growth in the region. The increase in net sales was partially offset by the unfavorable impact of foreign currency translation of approximately $33.3 million or 4%, and to a lesser extent by lower pricing on sales of existing products. Constant currency net sales increased by approximately $159.9 million, or 18%, when compared to the prior year period.

Rest of World Segment

Net sales from Rest of World decreased by $31.6 million or 5% during the three months ended March 31, 2020 when compared to the prior year period. The decrease was primarily due to the unfavorable impact of foreign currency translation and the estimated negative impact from COVID-19 in China and Japan. Also, net sales of existing products were impacted by lower pricing primarily driven by government price cuts in Australia and Japan. Partially offsetting lower pricing were new product sales, primarily in Australia, and higher volumes of existing products. Higher volumes of existing products were primarily driven by the Company’s anti-retroviral therapy franchise. Overall, net sales from Rest of World were unfavorably impacted by the effect of foreign currency translation of approximately $29.9 million, or 5%. Constant currency net sales decreased by approximately $1.7 million, or less than 1%, when compared to the prior year period.

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Cost of Sales and Gross Profit

Cost of sales increased from $1.69 billion for the three months ended March 31, 2019 to $1.71 billion for the three months ended March 31, 2020. Cost of sales was primarily impacted by purchase accounting related amortization of acquired intangible assets and other special items, which are described further in the section titled Use of Non-GAAP Financial Measures. Gross profit for the three months ended March 31, 2020 was $906.1 million and gross margins were 35%. For the three months ended March 31, 2019, gross profit was $805.2 million and gross margins were 32%. Gross margins were positively impacted by approximately 400 basis points from lower amortization expense of acquired intangible assets and intangible asset impairment charges realized in the prior year period. In addition, gross margins were positively impacted as a result of higher gross profit from sales of new products and from sales of existing products in Europe. Gross margins were negatively impacted as a result of lower gross profit from sales of existing products in Rest of World and in North America. In addition, gross margins were negatively impacted by a special bonus for plant employees as a result of the COVID-19 pandemic. Adjusted gross margins were 53% for the three months ended March 31, 2020, compared to 54% for the three months ended March 31, 2019.

A reconciliation between cost of sales, as reported under U.S. GAAP, and adjusted cost of sales and adjusted gross margin for the three months ended March 31, 2020 compared to the three months ended March 31, 2019 is as follows:

	Three Months Ended
	March 31,
(In millions)	2020			2019
U.S. GAAP cost of sales	$	1,713.1		$	1,690.3
Deduct:
Purchase accounting amortization and other related items	(352.2		)	(435.4		)
Acquisition related items	(0.8		)	(0.5		)
Restructuring and related costs	(3.7		)	(14.5		)
Share-based compensation expense	(0.3		)	—
Other special items	(117.3		)	(85.1		)
Adjusted cost of sales	$	1,238.8		$	1,154.8
Adjusted gross profit (a)	$	1,380.4		$	1,340.7
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.

Operating Expenses

Total operating expenses for the three months ended March 31, 2020 were not significantly impacted by the COVID-19 pandemic.

Research & Development Expense

Research and development (“R&D”) expense for the three months ended March 31, 2020 was $114.2 million, compared to $172.6 million for the comparable prior year period, a decrease of $58.4 million. This decrease was primarily due to higher expenses in the prior year period related to licensing arrangements for products in development.

Selling, General & Administrative Expense

Selling, general and administrative (“SG&A”) expense for the three months ended March 31, 2020 was $605.4 million, compared to $607.9 million for the comparable prior year period, a decrease of $2.5 million. The decrease was due primarily to lower legal and promotional expenses. Partially offsetting this decrease were higher consulting fees along with other expenses primarily related to the pending Combination totaling approximately $9.0 million in the current year period.

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Litigation Settlements and Other Contingencies, Net

The following table includes the (gains) / losses recognized in litigation settlements and other contingencies, net during the three months ended March 31, 2020 and March 31, 2019:

	Three Months Ended
	March 31,
(In millions)	2020			2019
Respiratory delivery platform contingent consideration adjustment	$	6.6		$	(4.1	)
Litigation settlements, net	(4.8		)	4.8
Total litigation settlements and other contingencies, net	$	1.8		$	0.7

During the three months ended March 31, 2020, the Company recorded a $6.6 million loss for fair value adjustments related to Pfizer Inc.’s proprietary dry powder inhaler delivery platform (the “respiratory delivery platform”) contingent consideration. Partially offsetting this item was a net gain of approximately $4.8 million related to a number of litigation settlements. Litigation settlements for the three months ended March 31, 2019, consisted of litigation related charges of approximately $4.8 million for a number of matters, which was partially offset by a gain of $4.1 million for fair value adjustments related to the respiratory delivery platform contingent consideration.

Interest Expense

Interest expense for the three months ended March 31, 2020 totaled $119.9 million, compared to $131.2 million for the three months ended March 31, 2019, a decrease of $11.3 million. The decrease is primarily due to lower average long-term debt balances during the current year.

Other Expense, Net

Other expense, net was $34.1 million for the three months ended March 31, 2020, compared to $7.3 million for the comparable prior year period. Other expense, net includes losses from equity affiliates, foreign exchange gains and losses and interest and dividend income. Other expense, net was comprised of the following for the three months ended March 31, 2020 and 2019, respectively:

	Three Months Ended
	March 31,
(In millions)	2020		2019
Losses from equity affiliates, primarily clean energy investments	$	17.3	$	17.0
Foreign exchange losses/(gains), net	13.6		(4.4		)
Other losses/(gains), net	3.2		(5.3		)
Other expense, net	$	34.1	$	7.3

Income Tax Provision (Benefit)

For the three months ended March 31, 2020, the Company recognized an income tax provision of $9.9 million, compared to a benefit of $89.5 million for the comparable prior year period, an increase of $99.4 million. During the three months ended March 31, 2019, primarily due to the expiration of federal and foreign statutes of limitations, the Company reduced its net liability for unrecognized tax benefits by approximately $83.8 million. Also impacting the current year income tax expense was the changing mix of income earned in jurisdictions with differing tax rates.

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Use of Non-GAAP Financial Measures

Whenever the Company uses non-GAAP financial measures, we provide a reconciliation of the non-GAAP financial measures to their most directly comparable U.S. GAAP financial measure. Investors and other readers are encouraged to review the related U.S. GAAP financial measures and the reconciliation of non-GAAP measures to their most directly comparable U.S. GAAP measure and should consider non-GAAP measures only as a supplement to, not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with U.S. GAAP. Additionally, since these are not measures determined in accordance with U.S. GAAP, non-GAAP financial measures have no standardized meaning across companies, or as prescribed by U.S. GAAP and, therefore, may not be comparable to the calculation of similar measures or measures with the same title used by other companies.

Management uses these measures internally for forecasting, budgeting, measuring its operating performance, and incentive-based awards. Primarily due to acquisitions and other significant events which may impact comparability of our periodic operating results, we believe that an evaluation of our ongoing operations (and comparisons of our current operations with historical and future operations) would be difficult if the disclosure of our financial results was limited to financial measures prepared only in accordance with U.S. GAAP. We believe that non-GAAP financial measures are useful supplemental information for our investors and when considered together with our U.S. GAAP financial measures and the reconciliation to the most directly comparable U.S. GAAP financial measure, provide a more complete understanding of the factors and trends affecting our operations. The financial performance of the Company is measured by senior management, in part, using adjusted metrics as described below, along with other performance metrics. Beginning in 2020, management’s annual incentive compensation is derived, in part, based on adjusted EBITDA (as defined below).

Adjusted Cost of Sales and Adjusted Gross Margin

We use the non-GAAP financial measure “adjusted cost of sales” and the corresponding non-GAAP financial measure “adjusted gross margin.” The principal items excluded from adjusted cost of sales include restructuring, acquisition related and other special items and purchase accounting amortization and other related items, which are described in greater detail below.

Adjusted Net Earnings

Adjusted net earnings is a non-GAAP financial measure and provides an alternative view of performance used by management. Management believes that, primarily due to acquisition activity and other significant events, an evaluation of the Company’s ongoing operations (and comparisons of its current operations with historical and future operations) would be difficult if the disclosure of its financial results were limited to financial measures prepared only in accordance with U.S. GAAP. Management believes that adjusted net earnings is an important internal financial metric related to the ongoing operating performance of the Company, and are therefore useful to investors and that their understanding of our performance is enhanced by this measure. Actual internal and forecasted operating results and annual budgets used by management include adjusted net earnings.

EBITDA and Adjusted EBITDA

EBITDA and adjusted EBITDA are non-GAAP financial measures that the Company believes are appropriate to provide additional information to investors to demonstrate the Company’s ability to comply with financial debt covenants and assess the Company’s ability to incur additional indebtedness. The Company also believes that adjusted EBITDA better focuses management on the Company’s underlying operational results and true business performance and, beginning in 2020, is used, in part, for management’s incentive compensation. We calculate “EBITDA” as U.S. GAAP net earnings (loss) adjusted for net contribution attributable to equity method investments, income tax provision (benefit), interest expense and depreciation and amortization. EBITDA is further adjusted for share-based compensation expense, litigation settlements and other contingencies, net, and restructuring and other special items to determine “adjusted EBITDA”. These adjustments are permitted under our credit agreement in calculating Adjusted EBITDA for determining compliance with our debt covenants.

The significant items excluded from adjusted cost of sales, adjusted net earnings, EBITDA and adjusted EBITDA include:

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Purchase Accounting Amortization and Other Related Items

The ongoing impact of certain amounts recorded in connection with acquisitions of both businesses and assets is excluded from adjusted cost of sales, adjusted net earnings, EBITDA and adjusted EBITDA. These amounts include the amortization of intangible assets, inventory step-up and intangible asset impairment charges, including for in-process research and development. For the acquisition of businesses accounted for under the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 805, these purchase accounting impacts are excluded regardless of the financing method used for the acquisitions, including the use of cash, long-term debt, the issuance of ordinary shares, contingent consideration or any combination thereof.

Upfront and Milestone-Related R&D Expenses

These expenses and payments are excluded from adjusted net earnings and adjusted EBITDA because they generally occur at irregular intervals and are not indicative of the Company’s ongoing operations.

Accretion of Contingent Consideration Liability and Other Fair Value Adjustments

The impact of changes to the fair value of contingent consideration and accretion expense are excluded from adjusted net earnings and adjusted EBITDA because they are not indicative of the Company’s ongoing operations due to the variability of the amounts and the lack of predictability as to the occurrence and/or timing and management believes their exclusion is helpful to understanding the underlying, ongoing operational performance of the business.

Share-based Compensation Expense

Share-based compensation expense is excluded from adjusted net earnings and adjusted EBITDA. Our share-based compensation programs have become increasingly weighted toward performance-based compensation, which leads to variability and to a lack of predictability as to the occurrence and/or timing of amounts incurred. As such, management believes the exclusion of such amounts on an ongoing basis is helpful to understanding the underlying operational performance of the business.

Restructuring, Acquisition Related and Other Special Items

Costs related to restructuring, acquisition and integration activities and other actions are excluded from adjusted cost of sales, adjusted net earnings and adjusted EBITDA, as applicable. These amounts include items such as:

• 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 is the net tax effect of the entity’s activities;

• 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.

The Company has undertaken restructurings and other optimization initiatives of differing types, scope and amount during the covered periods and, therefore, these charges should not be considered non-recurring; however, management

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excludes these amounts from adjusted net earnings and adjusted EBITDA because it believes it is helpful to understanding the underlying, ongoing operational performance of the business.

Litigation Settlements, Net

Charges and gains related to legal matters, such as those discussed in Note 18 Litigation included in Part I, Item 1 of this Form 10-Q are generally excluded from adjusted net earnings and adjusted EBITDA. Normal, ongoing defense costs of the Company made in the normal course of our business are not excluded.

Reconciliation of U.S. GAAP Net Earnings to Adjusted Net Earnings

A reconciliation between net earnings (loss) as reported under U.S. GAAP, and adjusted net earnings for the periods shown follows:

	Three Months Ended March 31,
(In millions)	2020			2019
U.S. GAAP net earnings (loss)	$	20.8		$	(25.0	)
Purchase accounting related amortization (primarily included in cost of sales)	352.2			435.4
Litigation settlements and other contingencies, net	1.8			0.7
Interest expense (primarily clean energy investment financing and accretion of contingent consideration)	5.8			7.3
Clean energy investments pre-tax loss	17.3			17.0
Acquisition related costs (primarily included in SG&A) (a)	23.2			8.1
Restructuring related costs (b)	7.6			19.9
Share-based compensation expense	19.4			18.0
Other special items included in:
Cost of sales (c)	117.3			85.1
Research and development expense (d)	1.7			33.1
Selling, general and administrative expense	(3.4		)	13.9
Other expense, net	(0.4		)	—
Tax effect of the above items and other income tax related items	(96.1		)	(191.6		)
Adjusted net earnings	$	467.2		$	421.9

Significant items include the following:

^(a)  Acquisition related costs consist primarily of transaction costs including legal and consulting fees and integration activities. The increase for the three months ended March 31, 2020 relates to transaction costs for the pending Combination.

^(b)  For the three months ended March 31, 2020, charges of approximately $3.7 million are included in cost of sales, approximately $0.2 million is included in R&D, and approximately $3.7 million is included in SG&A. Refer to Note 15 Restructuring included in Part I, Item 1 of this Form 10-Q for additional information.

^(c)  Costs incurred during the three months ended March 31, 2020 primarily relate to incremental manufacturing variances and site remediation activities as a result of the activities at the Company’s Morgantown plant of approximately $58.8 million. In addition, the current period includes approximately $25.0 million related to a special bonus for plant employees as a result of the COVID-19 pandemic. The three months ended March 31, 2019 consists primarily of $58.8 million for certain incremental manufacturing variances and site remediation activities at the Company’s Morgantown plant.

^(d)  R&D expense for the three months ended March 31, 2020 consists primarily of expenses for product development arrangements of approximately $1.6 million. R&D expense for the three months ended March 31, 2019 includes $23.3 million related to non-refundable upfront licensing amounts for products in development with the expenses relating to on-going collaboration agreements.

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Reconciliation of U.S. GAAP Net Earnings to EBITDA and Adjusted EBITDA

Below is a reconciliation of U.S. GAAP net earnings (loss) to EBITDA and adjusted EBITDA for the three months ended March 31, 2020 compared to the prior year period:

	Three Months Ended March 31,
(In millions)	2020		2019
U.S. GAAP net earnings (loss)	$	20.8	$	(25.0	)
Add / (deduct) adjustments:
Clean energy investments pre-tax loss	17.3		17.0
Income tax provision (benefit)	9.9		(89.5		)
Interest expense (a)	119.9		131.2
Depreciation and amortization (b)	415.0		500.5
EBITDA	$	582.9	$	534.2
Add / (deduct) adjustments:
Share-based compensation expense	19.4		18.0
Litigation settlements and other contingencies, net	1.8		0.7
Restructuring, acquisition related and other special items (c)	146.6		157.3
Adjusted EBITDA	$	750.7	$	710.2

^(a)  Includes clean energy investment financing and accretion of contingent consideration.

^(b)  Includes purchase accounting related amortization.

^(c)  See items detailed in the Reconciliation of U.S. GAAP Net Earnings to Adjusted Net Earnings.

Liquidity and Capital Resources

Our primary source of liquidity is net cash provided by operating activities, which was $291.1 million for the three months ended March 31, 2020. We believe that net cash provided by operating activities and available liquidity will continue to allow us to meet our needs for working capital, capital expenditures and interest and principal payments on debt obligations. Nevertheless, our ability to satisfy our working capital requirements and debt service obligations, or fund planned capital expenditures, will substantially depend upon our future operating performance (which will be affected by prevailing economic conditions), and financial, business and other factors, some of which are beyond our control.

Operating Activities

Net cash provided by operating activities increased by $330.8 million to $291.1 million for the three months ended March 31, 2020, as compared to net cash used in operating activities of $39.7 million for the three months ended March 31, 2019. Net cash provided by operating activities is derived from net (loss) earnings adjusted for non-cash operating items, gains and losses attributed to investing and financing activities and changes in operating assets and liabilities resulting from timing differences between the receipts and payments of cash, including changes in cash primarily reflecting the timing of cash collections from customers, payments to vendors and employees and tax payments in the ordinary course of business.

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The net increase in net cash provided by operating activities was principally due to the following:

• an increase in net earnings of approximately $45.8 million, principally as a result of an increase in earnings from operations;

• a net increase in the amount of cash provided by accounts receivable of $10.8 million, reflecting the timing of sales and cash collections;

• a net decrease in the amount of cash used through changes in trade accounts payable of $76.5 million as a result of the timing of cash payments;

• a net decrease of $51.2 million in the amount of cash used through changes in inventory balances;

• a net increase in the amount of cash provided by changes in income taxes of $224.4 million as a result of the level and timing of estimated tax payments made during the current period; and

• a net increase in the amount of cash provided by changes in other operating assets and liabilities of $14.6 million.

Investing Activities

Net cash used in investing activities was $145.6 million for the three months ended March 31, 2020, as compared to $75.6 million for the three months ended March 31, 2019, a net increase of $70.0 million.

In 2020, significant items in investing activities included the following:

• payments for product rights and other, net totaling approximately $67.1 million, primarily related to deferred non-contingent purchase payments for the acquisition of intellectual property rights and marketing authorizations in prior periods; and

• capital expenditures, primarily for equipment and facilities, totaling approximately $43.4 million. While there can be no assurance that current expectations will be realized, capital expenditures for the 2020 calendar year are expected to be approximately $300 million to $400 million.

In 2019, significant items in investing activities included the following:

• payments for product rights and other, net totaling approximately $15.4 million; and

• capital expenditures, primarily for equipment and facilities, totaling approximately $53.1 million.

Financing Activities

Net cash used in financing activities was $24.8 million for the three months ended March 31, 2020, as compared to $40.1 million for the three months ended March 31, 2019, a net decrease of $15.3 million.

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In 2020, significant items in financing activities included the following:

• payments totaling approximately $19.3 million (of the $24.3 million) in milestone payments related to 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.

In 2019, significant items in financing activities included the following:

• payments totaling $31.8 million of the $60.0 million in milestone payments related to 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.

Capital Resources

Our cash and cash equivalents totaled $572.4 million at March 31, 2020, and the majority of these funds are held by our non-U.S. subsidiaries. The Company anticipates having sufficient liquidity, including existing borrowing capacity under its Revolving Credit Facility, Commercial Paper Program, Receivables Facility and the Note Securitization Facility (which are each defined in Note 12 Debt in Part I, Item 1 of this Form 10-Q) combined with cash to be generated from operations, to fund foreseeable cash needs without requiring the repatriation of non-U.S. cash.

The Company has access to $2.0 billion under the Revolving Credit Facility which matures in 2023. Up to $1.65 billion of the Revolving Credit Facility may be used to support borrowings under our Commercial Paper Program. As of March 31, 2020, the Company had no amounts outstanding under the Commercial Paper Program.

The Company has a $400 million Receivables Facility which expires in April 2022. The Company also has a $200 million Note Securitization Facility which expires on August 31, 2020. Borrowings outstanding under the Receivables Facility bear interest at a commercial paper rate plus 0.775% and under the Note Securitization Facility at LIBOR plus 0.75% and are included as a component of short-term borrowings, while the accounts receivable securing these obligations remain as a component of accounts receivable, net, in our condensed consolidated balance sheets. Effective April 22, 2020, borrowings outstanding under the Note Securitization Facility bear interest at a rate per annum quoted from time to time by MUFG Bank, Ltd. plus 0.75%. In addition, the agreements governing the Receivables Facility and Note Securitization Facility contain various customary affirmative and negative covenants, and customary default and termination provisions with which the Company was compliant as of March 31, 2020. As of March 31, 2020, the Company had no amounts outstanding under the Receivables Facility or the Note Securitization Facility.

We have entered into accounts receivable factoring agreements with financial institutions to sell certain of our non-U.S. accounts receivable. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. Our factoring agreements do not allow for recourse in the event of uncollectibility, and we do not retain any interest in the underlying accounts receivable once sold. We derecognized $125.7 million and $90.1 million of accounts receivable as of March 31, 2020 and December 31, 2019, respectively, under these factoring arrangements.

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At March 31, 2020, our long-term debt, including the current portion, totaled $12.63 billion, as compared to $12.67 billion at December 31, 2019. Total long-term debt is calculated net of deferred financing fees which were $57.6 million and $60.5 million at March 31, 2020 and December 31, 2019, respectively.

For additional information regarding our debt and debt agreements refer to Note 12 Debt in Part I, Item 1 of this Form 10-Q.

Long-term Debt Maturity

Mandatory minimum repayments remaining on the outstanding notional amount of long-term debt at March 31, 2020 was as follows for each of the periods ending December 31:

The Company has a $2.0 billion revolving credit facility which is scheduled to expire in July 2023. The Revolving Credit Facility contains a maximum consolidated leverage ratio financial covenant requiring maintenance of a maximum ratio of 3.75 to 1.00 for consolidated total indebtedness as of the end of any quarter to consolidated EBITDA for the trailing four quarters as defined in the related credit agreements. The Company is in compliance at March 31, 2020 and expects to remain in compliance for the next twelve months.

Collaboration and Licensing Agreements

We periodically enter into collaboration and licensing agreements with other pharmaceutical companies for the development, manufacture, marketing and/or sale of pharmaceutical products. Our significant collaboration agreements are primarily focused on the development, manufacturing, supply and commercialization of multiple, high-value generic biologic compounds, insulin analog products and respiratory products, among other complex products. Under these agreements, we have future potential milestone payments and co-development expenses payable to third parties as part of our licensing, development and co-development programs. Payments under these agreements generally become due and are payable upon the satisfaction or achievement of certain developmental, regulatory or commercial milestones or as development expenses are incurred on defined projects. Milestone payment obligations are uncertain, including the prediction of timing and the occurrence of events triggering a future obligation and are not reflected as liabilities in the condensed consolidated balance sheets, except for obligations reflected as acquisition related contingent consideration. Refer to Note 11 Financial Instruments and Risk Management in Part I, Item of this Form 10-Q for additional information. Our potential maximum development milestones not accrued for at March 31, 2020 totaled approximately $404 million. We estimate that the amounts that may be paid through the end of 2020 to be approximately $94 million. These agreements may also include potential sales-based milestones and call for us to pay a percentage of amounts earned from the sale of the product as a royalty or a profit share. The amounts disclosed do not include sales-based milestones or royalty or profit share obligations on future sales of product as the timing and amount of future sales levels and costs to produce products subject to these obligations is not reasonably estimable. These sales-based milestones or royalty or profit share obligations may be significant depending upon the level of commercial sales for each product.

We are contractually obligated to make potential future development, regulatory and commercial milestone, royalty and/or profit sharing payments in conjunction with acquisitions we have entered into with third parties. The most significant of these relates to the potential future consideration related to the respiratory delivery platform. These payments are contingent upon the occurrence of certain future events and, given the nature of these events, it is unclear when, if ever, we may be required to pay such amounts. The amount of the contingent consideration liabilities was $236.2 million at March 31, 2020. In addition, the Company expects to incur approximately $10 million to $15 million of non-cash accretion expense related to the increase in the net present value of the contingent consideration liabilities in 2020.

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Supplemental Guarantor Financial Information

Mylan N.V. is the issuer of the 3.750% Senior Notes due 2020, 3.150% Senior Notes due 2021, 3.950% Senior Notes due 2026 and 5.250% Senior Notes due 2046 (collectively, the “Mylan N.V. Senior Notes”), which are fully and unconditionally guaranteed on a senior unsecured basis by Mylan Inc. Mylan Inc. is the issuer of the 3.125% Senior Notes due 2023, 4.200% Senior Notes due 2023, 4.550% Senior Notes due 2028, 5.400% Senior Notes due 2043 and 5.200% Senior Notes due 2048 (collectively, the “Mylan Inc. Senior Notes” and, together with the Mylan N.V. Senior Notes, the “Senior Notes”), which are fully and unconditionally guaranteed on a senior unsecured basis by Mylan N.V.

The respective obligations of Mylan N.V. and Mylan Inc. as guarantors of the Senior Notes, as applicable, are senior unsecured obligations of the applicable guarantor and rank pari passu in right of payment with all of such guarantor’s existing and future senior unsecured obligations that are not expressly subordinated to such guarantor’s guarantee of the applicable series of Senior Notes, rank senior in right of payment to any future obligations of such guarantor that are expressly subordinated to such guarantor’s guarantee of the applicable series of Senior Notes, and are effectively subordinated to such guarantor’s existing and future secured obligations to the extent of the value of the collateral securing such obligations. The respective obligations of Mylan N.V. and Mylan Inc. as guarantors of the Senior Notes, as applicable, are structurally subordinated to all of the existing and future liabilities, including trade payables, of the existing and future subsidiaries of such guarantor that do not guarantee the applicable series of Senior Notes.

The guarantees by Mylan Inc. of the Mylan N.V. Senior Notes will terminate under the following customary circumstances: (1) a sale or disposition of Mylan Inc. in a transaction that complies with the applicable indenture such that Mylan Inc. ceases to be a subsidiary of Mylan N.V.; (2) legal defeasance or covenant defeasance, each as described in the applicable indenture, or if Mylan N.V.’s obligations under the applicable indenture are discharged; or (3) the earlier to occur of (i) the release of Mylan N.V.’s guarantee under all applicable Mylan Inc. debt and (ii) Mylan Inc. no longer having any obligations in respect of any Mylan Inc. debt.

The guarantee obligations of Mylan N.V. and Mylan Inc. under the Senior Notes are subject to certain limitations and terms similar to those applicable to other guarantees of similar instruments, including that (i) the guarantees are subject to fraudulent transfer and conveyance laws and (ii) each guarantee is limited in amount to an amount not to exceed the maximum amount that can be guaranteed by the applicable guarantor without rendering the guarantee, as it relates to such guarantor, voidable under applicable fraudulent transfer and conveyance laws or similar laws affecting the rights of creditors generally. In addition, Dutch and English insolvency laws to which Mylan N.V. is or may be subject may not be as favorable to holders of Senior Notes as United States or other insolvency laws, and, because it is a Dutch company, it may be more difficult for holders of Senior Notes to obtain or enforce judgments against Mylan N.V.

Because Mylan N.V. is a holding company, its only material assets are its ownership interests in its subsidiaries, and those subsidiaries conduct substantially all of its operations. As a result, Mylan N.V.’s ability to make payments on its obligations under the Senior Notes will depend on its subsidiaries’ cash flow and their ability to make payments to Mylan N.V., which will depend on their earnings, applicable covenants in debt and other agreements, business and tax considerations and applicable law (including local law regulating payments of dividends and distributions).

In March 2020, the SEC amended Rule 3-10 of Regulation S-X regarding the financial disclosure requirements for guarantors and issuers of guaranteed securities registered or being registered. Among other things, the amendments narrow the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamline the alternative disclosures required in lieu of those financial statements. The effective date of the amendment is January 4, 2021 with earlier voluntary compliance permitted. We have chosen to voluntarily comply with the amended rules effective during the three months ended March 31, 2020.

The following table presents unaudited summarized financial information of Mylan N.V. and Mylan Inc. on a combined basis as of and for the Three Months Ended March 31, 2020 and as of and for the year ended December 31, 2019. All intercompany balances have been eliminated in consolidation. This unaudited combined summarized financial information is presented utilizing the equity method of accounting.

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	Combined Summarized Balance Sheet Information of Mylan N.V. and Mylan Inc.
(In millions)	March 31, 2020		December 31, 2019
ASSETS
Current assets	$	113.6	$	152.2
Non-current assets	39,917.6		41,602.4
LIABILITIES AND EQUITY
Current liabilities	15,704.9		15,414.9
Non-current liabilities	13,063.7		14,455.9

	Combined Summarized Statement of Operations Information of Mylan N.V. and Mylan Inc.
(In millions)	Three Months Ended March 31, 2020			Year Ended December 31, 2019
Revenues	$	—		$	—
Gross Profit	—			—
Loss from Operations	(178.5		)	(790.3		)
Net earnings	20.7			16.8

Other Commitments

The Company is involved in various disputes, governmental and/or regulatory inquiries, investigations and proceedings, tax proceedings and litigation matters, both in the U.S. and abroad, that arise from time to time, some of which could result in losses, including damages, fines and/or civil penalties, and/or criminal charges against the Company. These matters are often complex and have outcomes that are difficult to predict. The Company is also party to certain proceedings and litigation matters for which it may be entitled to indemnification under the respective sale and purchase agreements relating to the acquisitions of the former Merck Generics business, Agila Specialties Private Limited, Abbott Laboratories’ non-U.S. developed markets specialty and branded generics business, and certain other acquisitions. We have approximately $54.8 million accrued for legal contingencies at March 31, 2020.

While the Company believes that it has meritorious defenses with respect to the claims asserted against it and intends to vigorously defend its position, the process of resolving these matters is inherently uncertain and may develop over a long period of time, and so it is not possible to predict the ultimate resolution of any such matter. It is possible that an unfavorable resolution of any of the ongoing matters or the inability or denial of Merck KGaA, Strides Arcolab Limited, Abbott Laboratories, or another indemnitor or insurer to pay an indemnified claim, could have a material adverse effect on the Company’s business, financial condition, results of operations, cash flows and/or ordinary share price.

In the normal course of business, Mylan periodically enters into employment, legal settlement and other agreements which incorporate indemnification provisions. While the maximum amount to which Mylan may be exposed under such agreements cannot be reasonably estimated, the Company maintains insurance coverage, which management believes will effectively mitigate the Company’s obligations under these indemnification provisions. No amounts have been recorded in the condensed consolidated financial statements with respect to the Company’s obligations under such agreements.

The Company has also entered into employment and other agreements with certain executives and other employees that provide for compensation and certain other benefits. These agreements provide for severance payments under certain circumstances. Additionally, the Company has split-dollar life insurance agreements with certain retired executives.

On July 29, 2019, Newco and certain financial institutions executed a 364-day bridge commitment letter pursuant to which such financial institutions have committed to provide bridge financing (the “Bridge Facility”) to Newco to fund the amount of the cash payment from Newco to Pfizer and to pay fees and expenses related to the transactions contemplated by the Business Combination Agreement. Mylan N.V. and Mylan Inc. will be guarantors of the Bridge Facility from and after the consummation of the Combination.

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We are continuously evaluating the potential acquisition of products, as well as companies, as a strategic part of our future growth. Consequently, we may utilize current cash reserves or incur additional indebtedness to finance any such acquisitions, which could impact future liquidity. In addition, on an ongoing basis, we review our operations including the evaluation of potential divestitures of products and businesses as part of our future strategy. Any divestitures could impact future liquidity.

Application of Critical Accounting Policies

There have been no changes to the Critical Accounting Policies disclosed in our 2019 Annual Report on Form 10-K, as amended. The following discussion supplements our Critical Accounting Policy for Acquisitions, Intangible Assets, Goodwill and Contingent Consideration as it relates to the goodwill impairment test performed as of March 31, 2020.

The Company reviews goodwill for impairment annually on April 1st or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. As a result of the decline in the Company’s share price during the first quarter of 2020, and the general uncertainty and volatility in the economic environments in which the Company operates, including the impacts of the COVID-19 pandemic, the Company performed an interim goodwill impairment test as of March 31, 2020. 

The Company has performed its interim goodwill impairment test on a quantitative basis for its four reporting units, North America Generics, North America Brands, Europe and Rest of World. In estimating each reporting unit’s fair value, the Company performed an extensive valuation analysis, utilizing both income and market-based approaches, except for the North America Brands reporting unit where the fair value was estimated utilizing the income approach. The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions that affect the reporting unit’s expected future cash flows. These estimates and assumptions, utilizing Level 3 inputs, primarily include, but are not limited to, market multiples, control premiums, the discount rate, terminal growth rates, operating income before depreciation and amortization, and capital expenditures forecasts.

As of March 31, 2020, the allocation of the Company’s total goodwill was as follows: North America Generics $2.60 billion, North America Brands $0.65 billion, Europe $4.43 billion and Rest of World $1.65 billion.

As of March 31, 2020, the Company determined that the fair value of the North America Generics, North America Brands and Rest of World reporting units was substantially in excess of the respective unit’s carrying value. However, when compared to the April 1, 2019 test, the fair value of our overall business declined because of future forecasts and the decline in our share price.

For the Europe reporting unit, the estimated fair value exceeded its carrying value by approximately $1.3 billion or 11.0%. The excess fair value for the Europe reporting unit is consistent with the result of the Company’s 2019 annual impairment test. As it relates to the income approach for the Europe reporting unit at March 31, 2020, the Company forecasted cash flows for the next 5 years. During the forecast period, the revenue compound annual growth rate was approximately 7.5%. A terminal year value was calculated with a 2.0% revenue growth rate applied. The discount rate utilized was 11.0% and the estimated tax rate was 25.5%. Under the market-based approach, we utilized an estimated range of market multiples of 8.0 to 9.5 times EBITDA plus a control premium of 15.0%. If all other assumptions are held constant, a reduction in the terminal value growth rate by 3.5% or an increase in discount rate by 3.5% would result in an impairment charge for the Europe reporting unit.

Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions, especially as it relates to the key assumptions detailed, could have a significant impact on the fair value of the reporting units.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For a discussion of the Company’s market risk, see “Item 7A. Quantitative and Qualitative Disclosures about Market Risk” in Mylan N.V.’s Annual Report filed on Form 10-K for the year ended December 31, 2019, as amended.

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ITEM 4. CONTROLS AND PROCEDURES

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Principal Executive Officer and the Principal Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of March 31, 2020. Based upon that evaluation, the Principal Executive Officer and the Principal Financial Officer concluded that the Company’s disclosure controls and procedures were effective.

Management has not identified any changes in the Company’s internal control over financial reporting that occurred during the first quarter of 2020 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For information regarding legal proceedings, refer to Note 18 Litigation, in the accompanying Notes to interim financial statements in this Form 10-Q.

ITEM 1A. RISK FACTORS

Except as set forth below, there have been no material changes in the Company’s risk factors from those disclosed in Mylan’s Annual Report on Form 10-K for the year ended December 31, 2019, as amended.

The COVID-19 pandemic could have a material adverse effect on our business operations, results of operations, cash flows and financial position.

A novel strain of coronavirus (COVID-19) was first reported in December 2019 and has since spread to over 200 countries and territories, including every state in the United States. On March 11, 2020 the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020 the United States declared a national emergency with respect to COVID-19. We are closely monitoring the impact of the COVID-19 pandemic on all aspects of our business, including its impact on our workforce, suppliers, vendors, business partners, distribution channels, customers and patients. As the rate of infection continues to accelerate in many countries, attempts are being made to reduce the spread of COVID-19, including quarantines, government restrictions on movement, business closures and suspensions, canceled events and activities, self-isolation, and other voluntary and/or mandated changes in behavior. Both the outbreak of the disease and actions to slow its spread have created significant uncertainty and economic volatility and disruption, which have impacted our business operations and may materially adversely affect our workforce and business operations as well as our results of operations, cash flows and financial performance.

While our business operations are considered essential based on current government guidelines throughout the world due to the important role pharmaceutical manufacturers play within the global healthcare system, many of our administrative offices have been operating under work from home protocols. Additionally, we have taken extra precautions at our manufacturing facilities to aid in the protection of site personnel and operations, including the implementation of social distancing guidelines, daily health assessments of on-site personnel and split shifts where feasible. In many countries, we have suspended in-person interactions by customer-facing (field) personnel in healthcare settings. We have also taken steps to protect the safety of study participants, employees and staff at clinical trial sites while continuing to ensure regulatory compliance and scientific integrity of trial data. However, if illnesses are reported at any of our facilities, including critical manufacturing sites, it is possible that such facilities may need to close for an extended period of time, which could negatively affect our ability to produce, ship, and supply products to our customers and would impact our business and financial results. In addition, extended changes in work conditions, including work from home protocols, could strain our business continuity plans, introduce operational risk, including but not limited to increased cybersecurity risk, and reduce productivity.

COVID-19 and related responsive measures have also made, and may continue to make, it difficult for us, our partners or suppliers to source and manufacture products in, and to export our products from, certain affected areas. In addition, we have faced, and may continue to face, delays or difficulty sourcing certain products or raw materials, including active pharmaceutical ingredients, which could negatively affect our ability to produce, ship, and supply products to our customers and would impact our business and financial results. Even if we are able to find alternate sources for such products or raw materials, they may cost more and shipping costs may increase, which could adversely impact our results of operations and financial condition. In addition, unpredictable increases in demand for certain of our products could exceed our capacity to meet such demand, which could adversely affect our results of operations and customer relationships and result in negative publicity and reputational harm.

Health regulatory agencies globally may also experience disruptions in their operations as a result of the coronavirus pandemic. For instance, the FDA has announced its intention to temporarily postpone certain inspections of domestic and foreign manufacturing facilities. The FDA and comparable foreign regulatory agencies may have slower response times or reduced resources and, as a result, review of regulatory submissions, inspections, approval of new products and other timelines important to our business may be materially impacted, which could delay our new product launches and have a material adverse effect on our business.

In addition, our continued access to external sources of liquidity depends on multiple factors, including the condition of debt capital markets, our operating performance, and maintaining strong credit ratings. Also, the continuing impact of the

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pandemic could lead to our customers or suppliers having liquidity problems that could negatively impact our ability to collect cash on our receivables and/or negatively impact our ability to get inventory and materials. If the impacts of the pandemic create further disruptions or turmoil in the financial markets or customer or supplier liquidity issues, or if rating agencies lower our credit ratings, it could adversely affect our ability to access the debt markets, our cost of funds, and other terms for new debt, which could negatively impact our results of operations and financial position.

In addition, the ongoing challenges posed by the COVID-19 pandemic have already delayed the anticipated timing for completion of the Combination and may create additional uncertainties with respect to the expected timetable for completion of the Combination. Any delay in the completion of the Combination could diminish the anticipated benefits of the Combination to the combined company or result in additional transaction costs, loss of revenue or opportunities for Mylan or the combined company, or have other negative effects associated with uncertainty about the Combination.

The extent to which the COVID-19 pandemic impacts us will depend on numerous evolving factors and future developments that we are not currently able to predict and may also exacerbate other risks discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K, any of which could have a material adverse effect on us, our business operations, results of operations, cash flows and financial position.

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ITEM 6. EXHIBITS
2.1	Amendment No. 1 to the Separation and Distribution Agreement, dated as of February 18, 2020, by and between Pfizer Inc. and Upjohn Inc.
10.1	Form of Restricted Stock Unit Award Agreement under the 2003 Long-Term Incentive Plan for independent directors for awards granted on or after March 2, 2020.*
10.2	Form of Stock Option Agreement under the 2003 Long-Term Incentive Plan for independent directors for awards granted on or after March 2, 2020.*
10.3	Executive Employment Agreement, entered into on April 15, 2020, by and between Mylan N.V., Mylan Inc. and Robert J. Coury.*
22	List of Subsidiary Guarantors and Issuers of Guaranteed Securities.
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF	Inline XBRL Taxonomy Definition Linkbase
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101).
*	Denotes management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Mylan N.V. (Registrant)
By:	/s/ HEATHER BRESCH
	Heather Bresch
	Chief Executive Officer
	(Principal Executive Officer)

May 11, 2020

/s/ KENNETH S. PARKS

Kenneth S. Parks

Chief Financial Officer

(Principal Financial Officer)

May 11, 2020

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EX-2.1

Exhibit 2.1

EXECUTION VERSION

AMENDMENT NO. 1 TO THESEPARATION AND DISTRIBUTION AGREEMENT

This Amendment No. 1 (this “Amendment”) to the Separation and Distribution Agreement, dated as of July 29, 2019 (the “Agreement”), is made as of February 18, 2020, by and between Pfizer Inc., a Delaware corporation (“Pfizer”), and Upjohn Inc., a Delaware corporation and wholly owned Subsidiary of Pfizer (“Upjohn”, and together with Pfizer, the “Parties”, and each, a “Party”).

WHEREAS, the Parties entered into the Agreement on July 29, 2019;

WHEREAS, in accordance with the terms and conditions of the Agreement, the Parties now wish to amend the Agreement in the manner set forth in this Amendment; and

WHEREAS, in accordance with Section 10.03 of the Agreement, the Parties have obtained the prior written consent of Mylan N.V., a public company with limited liability incorporated under the laws of the Netherlands, to amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt, adequacy and sufficiency of which is hereby acknowledged by each Party, the Parties hereto agree as follows:

SECTION 1. Definitions. Capitalized terms used in this Amendment but not defined herein shall have the meanings given to them in the Agreement.

SECTION 2. Amendment to the Agreement. Section 1.01 of the Agreement is hereby amended to replace the definition of the term “Closing Working Capital Target” with the following:

“Closing Working Capital Target” means $902,000,000.

SECTION 3. Limited Amendment. Each Party acknowledges and agrees that this Amendment constitutes an instrument in writing duly signed by the Parties under Section 10.03 of the Agreement. Except as specifically amended hereby, the Agreement shall continue in full force and effect in accordance with the provisions thereof as in existence on the date hereof. From and after the date hereof, all references to the Agreement, and each reference in the Agreement to “this Agreement,” “hereof,” “herein,” “hereby,” “hereto,” “herewith,” “hereunder” and derivative or similar words, shall refer to the Agreement as amended hereby. Each reference in the Agreement, as amended hereby, to “the date of this Agreement” or any similar reference, shall continue to refer to July 29, 2019.

SECTION 4. Miscellaneous. The provisions of Article VII and Article X of the Agreement shall apply to this Amendment, mutatis mutandis, and are incorporated by reference as if fully set forth herein.

[Signature page follows]

IN WITNESS WHEREOF, the Parties have duly executed this Amendment, all as of the day and year first above written.

PFIZER INC.
By: /s/ DOUGLAS E. GIORDANO
	Name: Douglas E. Giordano
	Title: Senior Vice President, Worldwide Business Development

UPJOHN INC.
By: /s/ BRYAN A. SUPRAN
	Name: Bryan A. Supran
	Title: Vice President

EX-10.1

Exhibit 10.1

MYLAN N.V.2003 LONG-TERM INCENTIVE PLANNOTICE OF AWARD OF RESTRICTED STOCK UNITS

[ ] (the “Participant”) has been granted, effective as of the grant date [ ], an award of restricted stock units (the “Award”) payable in ordinary shares (the “Shares”) of Mylan N.V. (the “Company”) pursuant to the Company’s 2003 Long-Term Incentive Plan, as amended to date (the “Plan”), in respect of the Participant’s service as a member of the Board. The Award is subject to the terms and conditions set forth below and in the Plan, which is a part of this Notice (this “Award Agreement”).

1.Number of Restricted Stock Units (RSUs):[ ], where 1 RSU is equal to the right to receive 1 Share.

2.Vesting: Restrictions on the RSUs lapse (and shares will be released to the Participant) on the first anniversary of the grant date (the “Vesting Date”), subject to the Participant’s continued service as a member of the Board as of the Vesting Date and the terms of the Plan and this Award Agreement. Subject to Section 3, unless otherwise determined by the Board or the Committee, as applicable, in its sole discretion, in the event the Participant’s service as a member of the Board terminates prior to the Vesting Date, the RSUs shall be forfeited and returned to the Company, and all rights of the Participant with respect to the RSUs shall terminate, as of the date of such termination of service. For purposes of this Award Agreement, service as a member of the board of directors of the ultimate parent company of the Company shall be deemed to be service as a member of the Board.

3.Change in Control: Notwithstanding anything to the contrary in the Plan, in the event of a Change in Control, the treatment of the RSUs shall be determined by the Board or the Committee, as applicable, in its sole discretion; provided that, in connection with the consummation of the transactions contemplated by the Business Combination Agreement between the Company, Pfizer Inc., Upjohn Inc. and the other parties thereto, dated as of July 29, 2019 (the “BCA”, and such transactions, the “Proposed Combination”), the RSUs shall be subject to the terms of the BCA, providedfurther that, in the event that immediately following the consummation of the Proposed Combination the Participant does not serve as a member of the board of directors of Viatris, all restrictions on the RSUs shall lapse (and shares will be released to the Participant) as of immediately prior to the consummation of the Proposed Combination.

4.Data Privacy: The Participant hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of the Participant’s personal data as described in this document by and among, as applicable, the Company, its Affiliates and its Subsidiaries (“the Company Group”), for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan. The Participant also:

(a)understands that the Company Group holds certain personal information about him or her, including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, compensation, nationality, any Option Shares of stock or directorships held in the Company, details of all Restricted Stock Units or any other entitlement to Option Shares of stock awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s favor, for the purpose of implementing, administering and managing the Plan (“Data”);

(b)understands that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Participant’s country or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Participant’s country;

(c)that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting the Participant’s local human resources representative;

(d)authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Participant may elect to deposit any Option Shares acquired;

(e)understands that Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan;

(f)understands that the Participant may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Participant’s local human resources representative; and

(g)understands that refusing or withdrawing consent may affect his or her ability to participate in the Plan. For more information on the consequences of the Participant’s refusal to consent or withdrawal of consent, the Participant may contact his or her local human resources representative.

5.Limitation of Liability of the Board: The Participant agrees that the liability of the officers and the Board to the Participant under this Award Agreement shall be limited to those actions or failure to take actions which constitute self-dealing, willful misconduct or recklessness.

6.Dutch Payment Obligation: Upon the issuance of Shares, the Participant shall be obligated under Dutch law to pay to the Company the nominal value of EUR 0.01 per Share (the “Dutch Payment Obligation”). The Company hereby grants the Participant the right to receive an equivalent payment from the Company and shall set-off the Dutch Payment Obligation against the right to such payment (resulting in a net payment of zero (0)). The Participant’s right to a payment from the Company cannot be used for any purpose other than as described above and cannot be assigned, transferred, pledged or sold.

7.Governing Law: This Award Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.

EX-10.2

Exhibit 10.2

MYLAN N.V.
2003 LONG-TERM INCENTIVE PLAN
STOCK OPTION AGREEMENT

[ ] (the “Optionee”) is granted, effective as of the grant date [ ], options (the “Options”) to purchase ordinary shares (the “Shares”) of Mylan N.V. (the “Option Shares” or “Shares”) pursuant to the 2003 Long-Term Incentive Plan, as amended to date (the “Plan”) of Mylan N.V. (the “Company”) in respect of the Optionee’s service as a member of the Board. The Options are subject to the terms and conditions set forth below and in the Plan, which is a part of this Stock Option Agreement (this “Award Agreement”). To the extent that there is a conflict between the terms of the Plan and this Award Agreement, the terms of the Plan shall govern. Any term not defined herein shall have the meaning assigned to such term in the Plan.

1.Exercise Price: $[ ] per Option Share.

2.Number of Option Shares:[ ]

3.Type of Option:[ ]

4.Vesting: The Options granted hereunder will become vested on the first anniversary of the grant date (the “Vesting Date”), subject to the Optionee’s continued service as a member of the Board as of the Vesting Date and the terms of the Plan and the Award Agreement. Subject to Section 7, unless otherwise determined by the Board or the Committee, as applicable, in its sole discretion, in the event the Optionee’s service as a member of the Board terminates prior to the Vesting Date, all Options shall terminate and be cancelled immediately as of the date of such termination of service. For purposes of this Award Agreement, service as a member of the board of directors of the ultimate parent company of the Company shall be deemed to be service as a member of the Board.

5.Exercise of Option: Options may be exercised in accordance with the rules contained in Article VI, Section 6.04 Option Exercise Procedures, of the Plan.

6.Expiration Date: Unless otherwise determined by the Board or the Committee, as applicable, in its sole discretion, the Options granted hereunder shall expire at 12:01 a.m. Eastern Standard Time on the tenth (10th) annual anniversary of the grant date, unless earlier exercised.

7.Change in Control: Notwithstanding anything to the contrary in the Plan, in the event of a Change in Control, the treatment of the Options shall be determined by the Board or the Committee, as applicable, in its sole discretion; provided that, in connection with the consummation of the transactions contemplated by the Business Combination Agreement between the Company, Pfizer Inc., Upjohn Inc. and the other parties thereto, dated as of July 29, 2019 (the “BCA”, and such transactions, the “Proposed Combination”), the Options shall be subject to the terms of the BCA, providedfurther that, in the event that immediately following the consummation of the Proposed Combination the Optionee does not serve as a member of the board of directors of Viatris, the Options shall become fully vested and exercisable as of immediately prior to the consummation of the Proposed Combination.

8.Limitation of Liability of the Board: The Optionee agrees that the liability of the officers and the Board to the Optionee under this Agreement shall be limited to those actions or failure to take actions which constitute self-dealing, willful misconduct or recklessness.

9.Data Privacy: The Optionee hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of the Optionee’s personal data as described in this document by and among, as applicable, the Company, its Affiliates and its Subsidiaries (“the Company Group”), for the exclusive purpose of implementing, administering and managing the Optionee’s participation in the Plan. The Optionee also:

(a)understands that the Company Group holds certain personal information about him or her, including, but not limited to, the Optionee’s name, home address and telephone number, date of birth, social insurance number or other identification number, compensation, nationality, any Option Shares of stock or directorships held in the Company, details of all Restricted Stock Units or any other entitlement to Option Shares of stock awarded, canceled, exercised, vested, unvested or outstanding in the Optionee’s favor, for the purpose of implementing, administering and managing the Plan (“Data”);

(b)understands that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Optionee’s country or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Optionee’s country;

(c)that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting the Optionee’s local human resources representative;

(d)authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Optionee’s participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Optionee may elect to deposit any Option Shares acquired;

(e)understands that Data will be held only as long as is necessary to implement, administer and manage the Optionee’s participation in the Plan;

(f)understands that the Optionee may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Optionee’s local human resources representative; and

(g)understands that refusing or withdrawing consent may affect his or her ability to participate in the Plan. For more information on the consequences of the Optionee’s refusal to consent or withdrawal of consent, the Optionee may contact his or her local human resources representative.

10.Law Governing: This Award Agreement shall be governed by and construed under the internal laws of the Commonwealth of Pennsylvania.

EX-10.3

Exhibit 10.3

This Executive Employment Agreement (this “Agreement”) is entered into on April 15, 2020, by and between Mylan N.V., Mylan Inc. (the “Company”) and Robert J. Coury (the “Executive”).

RECITALS:

WHEREAS, Mylan N.V., the Company and Mr. Coury are currently parties to a letter agreement, dated June 3, 2016, governing the terms of his service as non-executive Chairman of the Board of Directors of Mylan N.V. (the “Chairman Agreement”);

WHEREAS, prior to entering into discussions with Pfizer Inc. (“Pfizer”) relating to the Proposed Transaction (as defined below), in recognition of Mr. Coury’s overall strategic leadership of Mylan N.V., leadership of the Board of Directors of Mylan N.V. (the “Board”) and the unexpected and significantly increased efforts expended by Mr. Coury on Mylan N.V.’s behalf, among other things, the Board discussed and intended that Mr. Coury reassume the position of Executive Chairman of Mylan N.V.;

WHEREAS, the Board previously determined that, in connection with the consummation of Mylan N.V.’s pending transaction (the “Proposed Transaction”) to combine with the Upjohn business of Pfizer to create Viatris Inc. (“Viatris”), Mr. Coury should become the Executive Chairman of Viatris (or, in the event the Proposed Transaction is not consummated, the Executive Chairman of Mylan N.V.);

WHEREAS, in light of the unprecedented environment created by the COVID-19 pandemic and the resulting disruption to global markets and the pharmaceutical industry, among other reasons, the Board has determined that it is in the best interests of Mylan N.V. for Mr. Coury to immediately assume the position of Executive Chairman of Mylan N.V.;

WHEREAS, in furtherance of the foregoing, the Board has determined that the Company should enter into an employment agreement with Mr. Coury of limited duration that will provide for his employment solely for the remainder of calendar year 2020 and for remuneration paid during such period that is consistent with his current remuneration for services as non-executive Chairman;

WHEREAS, (i) the Board previously considered approving an agreement between the parties providing for additional compensation arrangements, as disclosed in the Definitive Proxy Statement of Mylan N.V. in connection with the Proposed Transaction, and (ii) in light of the Proposed Transaction, the Board determined that consideration of such arrangements should be deferred until after the consummation of the Proposed Transaction (or following the determination that the Proposed Transaction will not be consummated);

WHEREAS, the Board still intends that the Board of Directors of Viatris (or the Board, as the case may be) will take up consideration of the previously disclosed compensation arrangements in connection with a determination of the terms and conditions of Mr. Coury’s

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employment following the consummation of the Proposed Transaction (or following the determination that the Proposed Transaction will not be consummated, as the case may be) and thereafter (including any new or extended employment agreement) as it determines in its discretion; and

WHEREAS, the parties hereto wish to set forth herein the terms of Mr. Coury’s employment as Executive Chairman of Mylan N.V. effective as of April 15, 2020 (the “Effective Date”).

NOW, THEREFORE, in consideration of the promises and mutual obligations of the parties contained herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive agree as follows:

1.Employment of Executive; Position and Duties. The Executive shall serve as Chairman of the Board of Directors of Mylan N.V. (the “Board”) with the title of “Executive Chairman” of Mylan N.V. and the Executive shall be employed by the Company as “Executive Chairman”. In the role of Executive Chairman, the Executive shall have such duties, roles and responsibilities consistent with such position, including but not limited to those described on Schedule A hereto, or as are otherwise agreed upon from time to time by the Executive and the Board. The Executive shall report directly to the Board. The Executive’s principal work location will be the Company’s office located in Los Angeles, California, but the Executive acknowledges that he will be required to engage in substantial domestic and international travel in accordance with the Company’s business needs from time to time.

2.Effective Date; Term of Employment. This Agreement shall commence and be effective as of the Effective Date, and shall terminate at the close of business on December 31, 2020, unless earlier terminated in accordance with the terms of this Agreement or extended by mutual agreement of the parties (the period during which the Executive is employed pursuant to this Agreement, the “Term of Employment”). It is the intention of the parties that this Agreement will be extended or renewed by, or that the Executive will enter into a superseding agreement approved by, the Board of Directors of Viatris following the consummation of the Proposed Transaction (or the Board in the event the Proposed Transaction is not consummated), subject to the determination of the Board of Directors of Viatris or the Board, as applicable, at such time.

3.Executive’s Compensation. During the Term of Employment, the Executive’s compensation shall include the following:

(a)Annual Base Salary. The Executive’s annual base salary as of the Effective Date shall be equal to $1,800,000, payable in accordance with the Company’s normal payroll practices for its executive officers. The Executive’s base salary may be increased from time to time at the discretion of the Board (or any committee thereof having authority over executive compensation (the “Committee”)) and once increased may not be decreased. The base salary as in effect from time to time in accordance with this Agreement shall be referred to as the “Base Salary.”

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(b)2020 Incentive Programs. Subject to the determination of the Board of Directors of Viatris following the consummation of the Proposed Transaction (or the Board in the event the Proposed Transaction is not consummated), the Executive shall be eligible to participate in the short-term and long-term incentive or bonus plans of Mylan N.V. (or the corresponding plan of any parent, subsidiary or affiliate) in respect of fiscal year 2020 on the terms specified by such Board (it being understood that the Executive shall not receive any award, payment or other benefits pursuant to such incentive or bonus plan until the Board of Directors of Viatris or the Board, as applicable, shall have made such determination in accordance with this Section 3(b)).

(c)Chairman Retention RSUs; Stock Options. The unvested portion of the Executive’s Chairman Retention RSUs (as defined in the Chairman Agreement) shall remain eligible for continued vesting in accordance with the terms of the Chairman Retention RSUs, including immediate vesting in the event the Executive ceases to serve in the role of Chairman of the Board (whether in an executive or non-executive capacity) for any reason (including death or disability), other than as the result of a voluntary resignation from such role without Good Reason or involuntary removal from such role for Cause (in each case, for purposes of this Section 3(c), as defined in the Chairman Agreement). Upon such vesting, shares in respect of the Chairman RSUs will be distributed as soon as practicable, but in no event later than three (3) business days following the vesting date. For the avoidance of doubt, all unexercised stock options held by the Executive shall remain exercisable for the full term of such stock option (i.e., ten (10) years from the grant date) in accordance with Section 6(a) of Exhibit A of the Chairman Agreement.

(d)Fringe Benefits and Expense Reimbursement. The Executive shall receive such benefits and perquisites of employment as were provided to the Executive immediately prior to the Executive’s retirement from the Company in 2016; provided, however, that the Executive shall participate in the Company’s retirement and welfare benefit plans and programs on no less favorable terms than the Company’s other senior executives. Because of persistent and serious security concerns, the Executive shall be entitled to usage of the Company’s aircraft for the Executive and the Executive’s family for business and personal purposes. The Company shall reimburse the Executive for all ordinary and necessary business expenses in accordance with established Company policy and procedures.

(e)Chairman Retainer. In connection with the commencement of the Executive’s role as Executive Chairman, the Executive shall repay to Mylan N.V. or the Company an amount equal to the pro-rata portion of the Executive’s Chairman Retainer (as defined in the Chairman Agreement) paid to the Executive with respect to the second fiscal quarter of fiscal year 2020 for the period beginning on the Effective Date and ending on June 30, 2020, no later than 30 days after the Effective Date. The Executive shall cease receiving the Chairman Retainer for any period following the Effective Date.

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4.Confidentiality. The Executive recognizes and acknowledges that the business interests of the Company and its subsidiaries, parents and affiliates (collectively, the “Affiliated Companies”) require a confidential relationship between the Affiliated Companies and the Executive and the fullest protection and confidential treatment of the financial data, customer information, supplier information, market information, marketing and/or promotional techniques and methods, pricing information, purchase information, sales policies, employee lists, policy and procedure information, records, advertising information, computer records, trade secrets, know-how, plans and programs, sources of supply and other knowledge of the business of the Affiliated Companies (all of which are hereinafter jointly termed “Confidential Information”) which have or may in whole or in part be conceived, learned or obtained by the Executive in the course of the Executive’s employment with the Company or service on the Board. Accordingly, the Executive agrees to keep secret and treat as confidential all Confidential Information whether or not copyrightable or patentable, and agrees not to knowingly use or aid others in learning of or using any Confidential Information except in the ordinary course of business and in furtherance of the Affiliated Companies’ interests. During the Term of Employment and at all times thereafter, except insofar as the Executive believes in good faith that disclosure is consistent with the Affiliated Companies’ business interests:

(a)The Executive will not knowingly disclose any Confidential Information to anyone outside the Affiliated Companies;

(b)The Executive will not make copies of or otherwise knowingly disclose the contents of documents containing or constituting Confidential Information;

(c)As to documents which are delivered to the Executive or which are made available to him as a necessary part of the working relationships and duties of the Executive within the business of the Affiliated Companies, the Executive will treat such documents confidentially and will treat such documents as proprietary and confidential, not to be knowingly reproduced, disclosed or used without appropriate authority of the Affiliated Companies;

(d)The Executive will not knowingly advise others that the information and/or know-how included in Confidential Information is known to or used by the Affiliated Companies; and

(e)The Executive will not in any manner knowingly disclose or use Confidential Information for the Executive’s own account and will not knowingly aid, assist or abet others in the use of Confidential Information for their account or benefit, or for the account or benefit of any person or entity other than the Affiliated Companies.

The obligations set forth in this paragraph are in addition to any other agreements the Executive may have with the Company and any and all rights the Company may have under state or federal statutes or common law. Anything herein to the contrary notwithstanding, the provisions of this Section 4 shall not apply (i) when disclosure is required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with actual or apparent jurisdiction to order the Executive to disclose or make accessible any

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information, (ii) with respect to any other litigation, arbitration or mediation involving this Agreement or other agreement between the Executive or the Company or any Affiliated Company, including, but not limited to, the enforcement of any such agreement, (iii) as to information that becomes generally known to the public or within the relevant trade or industry other than due to the Executive’s violation of this Section 4 or (iv) as to information that is or becomes available to the Executive on a non-confidential basis from a source which is entitled to disclose it to the Executive.

Nothing in or about this Agreement prohibits the Executive from: (i) filing and, as provided for under Section 21F of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), maintaining the confidentiality of a claim with the Securities and Exchange Commission (the “SEC”); (ii) providing Confidential Information or information about this Agreement or any Affiliated Company to the SEC, or providing the SEC with information that would otherwise violate any section of this Agreement, to the extent permitted by Section 21F of the Exchange Act; (iii) cooperating, participating or assisting in an SEC investigation or proceeding without notifying the Company; or (iv) receiving a monetary award as set forth in Section 21F of the Exchange Act.

The Executive is advised that the Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of any Confidential Information or information about this Agreement or any Affiliated Company that constitutes a trade secret to which the Defend Trade Secrets Act (18 U.S.C. § 1833(b)) applies that is made (i) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, in each case, solely for the purpose of reporting or investigating a suspected violation of law or (ii) in a complaint or other document filed in a lawsuit or proceeding, if such filings are made under seal.

5.Non-Competition and Non-Solicitation. The Executive agrees that during the Term of Employment and for a period ending two (2) years after the Executive ceases to be employed by the Affiliated Companies (a “Termination of Employment”) for any reason:

(a)The Executive shall not whether for himself or for any other person, company, corporation or other entity be or become associated in any way (including but not limited to the association set forth in (i)-(vii) of this subsection) with any business or organization which is directly or indirectly engaged in the research, development, manufacture, production, marketing, promotion or sale of any product the same as or similar to those of the Affiliated Companies, or which competes or has announced an intention to compete in any line of business with the Affiliated Companies. Notwithstanding the foregoing, the Executive may during the period in which this paragraph is in effect own stock or other interests in corporations or other entities that engage in businesses the same or substantially similar to those engaged in by the Affiliated Companies, provided that the Executive does not, directly or indirectly (including without limitation as the result of ownership or control of another corporation or other entity), individually or as part of a group (as that term is defined in Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder) (i) control or

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have the ability to control the corporation or other entity, (ii) provide to the corporation or entity, whether as an executive, consultant or otherwise, advice or consultation, (iii) provide to the corporation or entity any confidential or proprietary information regarding the Affiliated Companies or their businesses or regarding the conduct of businesses similar to those of the Affiliated Companies, (iv) hold or have the right by contract or arrangement or understanding with other parties to hold a position on the board of directors or other governing body of the corporation or entity or have the right by contract or arrangement or understanding with other parties to elect one or more persons to any such position, (v) hold a position as an officer of the corporation or entity, (vi) have the purpose to change or influence the control of the corporation or entity (other than solely by the voting of his shares or ownership interest) or (vii) have a business or other relationship, by contract or otherwise, with the corporation or entity other than as a passive investor in it; provided, however, that the Executive may vote his shares or ownership interest in such manner as he chooses provided that such action does not otherwise violate the prohibitions set forth in this sentence.

(b)The Executive will not either for himself or for any other person, partnership, firm, company, corporation or other entity, contact, solicit, divert or take away any of the customers or suppliers of the Affiliated Companies.

(c)The Executive will not solicit, entice or otherwise induce any employee of the Affiliated Companies to leave the employ of the Affiliated Companies for any reason whatsoever; nor will the Executive knowingly aid, assist or abet any other person or entity in soliciting or hiring any employee of the Affiliated Companies, nor will the Executive otherwise interfere with any contractual or other business relationships between the Affiliated Companies and their employees.

6.Severability. Should a court of competent jurisdiction determine that any section or sub-section of this Agreement is unenforceable because one or all of them are vague or overly broad, the parties agree that this Agreement may and shall be enforced to the maximum extent permitted by law. It is the intent of the parties that each section and sub-section of this Agreement be a separate and distinct promise and that unenforceability of any one subsection shall have no effect on the enforceability of another.

7.Injunctive Relief. The parties agree that in the event of the Executive’s material violation of Sections 4 and/or 5 of this Agreement or any subsection thereunder, that the damage to the Company will be irreparable and that money damages will be difficult or impossible to ascertain. Accordingly, in addition to whatever other remedies the Company may have at law or in equity, the Executive recognizes and agrees that the Company shall be entitled to a temporary restraining order and a temporary and permanent injunction enjoining and prohibiting any acts not permissible pursuant to this Agreement.

8.Termination of Employment.

(a)Resignation. The Executive may resign from employment, whether or not the Executive resigns from the Board in connection with such resignation, at any time

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upon thirty (30) days written notice to the Company. During the thirty (30)-day period following the date on which the Executive gives notice, the Executive will make himself available to continue to perform the duties specified in Schedule A and will use his reasonable best efforts to effect a smooth and effective transition to the person (if any) who will replace the Executive. The Company reserves the right to accelerate the effective date of the Executive’s resignation. Notwithstanding the foregoing, if the Executive resigns with Good Reason (as defined below), he shall be entitled to resign immediately upon written notice to the Company and without any obligation to provide transition services. If the Executive resigns (with or without Good Reason), then the Executive shall be provided with wages and benefits through the effective date of the Executive’s resignation and any vested benefits payable to the Executive under plans and agreements of the Affiliated Companies or any predecessor to any of the Affiliated Companies (collectively the “Accrued Benefits”).

“Good Reason” shall mean: (i) the assignment to the Executive of any duties inconsistent in any respect with the Executive’s position as Executive Chairman (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 1 of this Agreement, or any other diminution in such position (or removal from such position), authority, duties, responsibilities or conditions of employment (whether or not occurring solely as a result of Mylan N.V.’s ceasing to be a publicly traded entity or becoming a subsidiary or a division of a publicly traded entity), in each case excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and that is remedied by the Company promptly after receipt of notice thereof given by the Executive; (ii) a reduction in Executive’s Base Salary as in effect from time to time; (iii) failure to nominate the Executive as a member of the Board, removal of the Executive from (or failure to re-elect the Executive to) the position of Executive Chairman of the Board, or the appointment of an individual other than the Executive to serve as Chairman of the Board; (iv) any failure by the Company to comply with any of the provisions of Section 3 of this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and that is remedied by the Company promptly after receipt of notice thereof given by the Executive; (v) the Company’s requiring the Executive to be based at any office or location without the consent of the Executive; (vi) any failure by the Company to comply with and satisfy Section 16 of this Agreement; or (vii) any other breach of this Agreement by the Company, excluding for this purpose an isolated, insubstantial and inadvertent breach that is not taken in bad faith and that is remedied by the Company promptly after receipt of notice thereof given by the Executive.

The Executive will continue to be bound by all provisions of this Agreement that survive the Executive’s Termination of Employment.

(b)Termination by the Company. The Company may terminate the Executive’s employment, and if such termination is for Cause (as defined below), then the Executive shall immediately resign from the Board; provided that, if such termination is not for Cause, then the Company must provide the Executive with at least thirty (30) days written notice of such termination. For purposes of this Agreement, “Cause” shall mean the occurrence after the Effective Date of: (i) the Executive’s willful and continued

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gross neglect of duties (other than resulting from incapacity due to physical or mental illness or following the Executive’s delivery of a notice of termination for Good Reason), (ii) the willful engaging by the Executive in illegal conduct that is materially and demonstrably injurious to the Company or the Affiliated Companies or (iii) the willful engaging by the Executive in gross misconduct that is materially and demonstrably injurious to the Company or the Affiliated Companies which, in the case of clauses (i) and (iii), has not been cured within 30 days after a written demand for substantial performance is delivered to the Executive by the Board that specifically identifies the manner in which the Board believes that the Executive has grossly neglected his duties or has engaged in gross misconduct. No act, or failure to act, on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company or the Affiliated Companies. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company or the Affiliated Companies shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company or the Affiliated Companies. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board (excluding the Executive, if the Executive is a member of the Board) at a meeting of the Board called and held for such purpose (after reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel for the Executive, to be heard before the Board), finding that, in the good faith opinion of the Board, Cause exists and specifying the particulars thereof in detail. In the event of a dispute concerning the existence of “Cause,” any claim by the Executive that “Cause” does not exist shall be presumed correct unless the Company establishes by clear and convincing evidence that Cause exists. If the Executive is terminated by the Company (with or without Cause), then the Executive shall be provided with the Accrued Benefits.

(c)Death. The employment of the Executive shall automatically terminate upon the Executive’s death. Upon such Termination of Employment as a result of death, the Company shall pay or provide to the Executive’s estate or beneficiaries the Accrued Benefits and any death benefits to which the Executive’s estate or beneficiaries are entitled pursuant to plans or arrangements of the Company.

(d)Disability. The Executive’s employment shall terminate automatically in the event of the Executive’s Disability. Upon such Termination of Employment as a result of Disability, the Company shall pay or provide to the Executive the Accrued Benefits. “Disability” shall mean the Executive’s inability to perform his duties hereunder due to any medically determinable mental, physical or emotional impairment which can be expected to last for at least twelve (12) consecutive months.

(e)Other Benefits. For the avoidance of doubt, following any Termination of Employment, the Executive shall continue to be eligible to participate in the

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Supplemental Health Insurance Plan (or other successor or replacement plan provided to current or former executive officers of the Company) on the terms and conditions set forth in such plan, and shall make premium contributions on the same basis as other participants in such plan. The parties agree to cooperate such that the benefits provided under the Supplemental Health Insurance Plan are, to the extent practicable, provided in a manner so as to minimize adverse tax consequences to the Company under Section 4980D of the Code. Unless otherwise determined by the Board of Directors of Viatris following the consummation of the Proposed Transaction (or the Board in the event the Proposed Transaction is not consummated), notwithstanding anything in this Agreement or any other plan or agreement to the contrary, the Executive shall not participate in, and shall not be eligible for, any payments or benefits under the Mylan N.V. Severance Plan and Global Guidelines, adopted July 2019, or any other severance plan, program, arrangement, agreement or policy with or maintained by any of the Affiliated Companies.

(f)Return of Company Property. Upon the Executive’s Termination of Employment for any reason, the Executive shall promptly return to the Company all records, memoranda, files, notes, papers, correspondence, reports, documents, books, diskettes, hard drives, electronic files, and all copies or abstracts thereof that the Executive has concerning the Company’s business. The Executive shall also promptly return all keys, identification cards or badges and other Company property. Anything to the contrary notwithstanding, nothing in this Section 8(f) shall prevent the Executive from retaining a home computer and security system, papers and other materials of a personal nature, including personal diaries, calendars and contact lists, information relating to the Executive’s compensation or relating to reimbursement of expenses, information that the Executive reasonably believes may be needed for tax purposes, and copies of plans, programs and agreements relating to the Executive’s employment, subject to the Executive’s compliance with Section 4.

(g)No Duty to Mitigate; Disputes. There shall be no requirement on the part of the Executive to seek other employment or otherwise mitigate damages in order to be entitled to the full amount of any payments and benefits to which the Executive is otherwise entitled under this Agreement, and the amount of such payments and benefits shall not be subject to any set off or reduced by any compensation or benefits received by the Executive from other employment. The Company’s obligation to make payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any forfeiture, set-off, counterclaim, recoupment, defense, or other claim, right or action that the Company may have against the Executive or others, whether based on contractual, fiduciary or other claims. In the event of any dispute between the Executive and the Company regarding the Executive’s right to payment under this Section 8 or otherwise, except as set forth below, the Company agrees that, notwithstanding any such dispute, the Company will not for any reason withhold payment of any amounts that the Executive would have been entitled to receive under Section 8(a) of this Agreement or otherwise had his employment ended by reason of resignation thereunder.

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(h)Cooperation. Upon the Executive’s Termination of Employment for any reason, the Company and the Executive shall mutually cooperate with each other in connection with the preparation of a press release or other public announcement relating to such Termination of Employment.

(i)Section 280G Matters. Notwithstanding any other provision of this Agreement or any other plan, program, arrangement, agreement or policy with or maintained by any of the Affiliated Companies:

(i)In the event it is determined by an independent nationally recognized public accounting firm, which is engaged and paid for by the Company or its parent prior to the consummation of any transaction constituting a Change of Control (which for purposes of this Section 8(i) shall mean a change in ownership or control as determined in accordance with the regulations promulgated under Section 280G of the Code), which accounting firm shall in no event be the accounting firm for the entity seeking to effectuate the Change of Control (the “Accountant”), which determination shall be certified by the Accountant and set forth in a certificate delivered to the Executive not less than ten (10) business days prior to the Change of Control setting forth in reasonable detail the basis of the Accountant’s calculations (including any assumptions that the Accountant made in performing the calculations), that part or all of the consideration, compensation or benefits to be paid to the Executive under this Agreement constitute “parachute payments” under Section 280G(b)(2) of the Code, then, if the aggregate present value of such parachute payments, singularly or together with the aggregate present value of any consideration, compensation or benefits to be paid to the Executive under any other plan, arrangement or agreement which constitute “parachute payments” (collectively, the “Parachute Amount”) exceeds the maximum amount that would not give rise to any liability under Section 4999 of the Code, the amounts constituting “parachute payments” which would otherwise be payable to the Executive or for his benefit shall be reduced to the maximum amount that would not give rise to any liability under Section 4999 of the Code (the “Reduced Amount”); provided that such amounts shall not be so reduced if the Accountant determines that without such reduction the Executive would be entitled to receive and retain, on a net after-tax basis (including, without limitation, any excise taxes payable under Section 4999 of the Code), an amount which is greater than the amount, on a net after-tax basis, that the Executive would be entitled to retain upon receipt of the Reduced Amount. In connection with making determinations under this Section 8(i), the Accountant shall take into account any positions to mitigate any excise taxes payable under Section 4999 of the Code, such as the value of any reasonable compensation for services to be rendered by the Executive before or after the Change of Control, including any amounts payable to the Executive following the Executive’s Termination of Employment with respect to any non-competition provisions that may apply to the Executive, and the Company shall cooperate in the valuation of any such services, including any non-competition provisions.

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(ii)If the determination made pursuant to Section 8(i)(i) results in a reduction of the payments that would otherwise be paid to the Executive except for the application of Section 8(i)(i), the Company shall promptly give the Executive notice of such determination. Such reduction in payments shall be first applied to reduce any cash payments that the Executive would otherwise be entitled to receive (whether pursuant to this Agreement or otherwise) and shall thereafter be applied to reduce other payments and benefits, in each case, in reverse order beginning with the payments or benefits that are to be paid the furthest in time from the date of such determination, unless, to the extent permitted by Section 409A of the Code, the Executive elects to have the reduction in payments applied in a different order; provided that, in no event may such payments be reduced in a manner that would result in subjecting the Executive to additional taxation under Section 409A of the Code.

(iii)As a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time of a determination hereunder, it is possible that amounts will have been paid or distributed by the Company to or for the Executive’s benefit pursuant to this Agreement which should not have been so paid or distributed (each, an “Overpayment”) or that additional amounts which will have not been paid or distributed by the Company to or for the Executive’s benefit pursuant to this Agreement could have been so paid or distributed (each, an “Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Accountant, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or the Executive which the Accountant believes has a high probability of success, determines that an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for the Executive’s benefit shall be repaid by the Executive to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, however, that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which the Executive is subject to tax under Sections 1 and 4999 of the Code or generate a refund of such taxes. In the event that the Accountant, based on controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the Executive’s benefit together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.

9.Indemnification. The Company shall maintain D&O liability coverage pursuant to which the Executive shall be a covered insured. The Executive shall receive indemnification in accordance with the Company’s Bylaws in effect as of the date of this Agreement. Such indemnification shall be contractual in nature and shall remain in effect notwithstanding any future change to the Company’s Bylaws.

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To the extent not otherwise limited by the Company’s Bylaws in effect as of the date of this Agreement, in the event that the Executive is made a party or is threatened to be made a party to or is involved in any action, suit or proceeding, (including those brought by or in the right of the Company) whether civil, criminal, administrative or investigative (“proceeding”), by reason of the fact that he is or was an officer, employee or agent of, or is or was serving the Company or any subsidiary of the Company, or is or was serving at the request of the Company or another corporation, or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether the basis of such proceeding is alleged action in an official capacity as a director, officer, employee or agent or in any other capacity while serving as a director, officer, employee or agent, the Executive shall be indemnified and held harmless by the Company to the fullest extent authorized by law against all expenses, liabilities and losses (including attorneys fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by the Executive in connection therewith. Such right shall be a contract right and shall include the right to be paid by the Company expenses incurred in defending any such proceeding in advance of its final disposition; provided, however, that the payment of such expenses incurred by the Executive in his capacity as a director or officer (and not in any other capacity in which service was or is rendered by the Executive while a director or officer, including, without limitation, service to an employee benefit plan) in advance of the final disposition of such proceeding will be made only upon delivery to the Company of an undertaking, by or on behalf of the Executive, to repay all amounts to Company so advanced if it should be determined ultimately that the Executive is not entitled to be indemnified under this section or otherwise.

Promptly after receipt by the Executive of notice of the commencement of any action, suit or proceeding for which the Executive may be entitled to be indemnified, the Executive shall notify the Company in writing of the commencement thereof (but the failure to notify the Company shall not relieve it from any liability which it may have under this Section 9 unless and to the extent that it has been prejudiced in a material respect by such failure or from the forfeiture of substantial rights and defenses). If any such action, suit or proceeding is brought against the Executive and he notifies the Company of the commencement thereof, the Company will be entitled to participate therein, and, to the extent it may elect by written notice delivered to the Executive promptly after receiving the aforesaid notice from the Executive, to assume the defense thereof with counsel reasonably satisfactory to the Executive, which may be the same counsel as counsel to the Company. Notwithstanding the foregoing, the Executive shall have the right to employ his own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Executive unless (i) the employment of such counsel shall have been authorized in writing by the Company, (ii) the Company shall not have employed counsel reasonably satisfactory to the Executive to take charge of the defense of such action within a reasonable time after notice of commencement of the action or (iii) the Executive shall have reasonably concluded, after consultation with counsel to the Executive, that a conflict of interest exists which makes representation by counsel chosen by the Company not advisable (in which case the Company shall not have the right to direct the defense of such action on behalf of the Executive), in any of which events such fees and expenses of one additional counsel shall be borne by the Company.

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Anything in this Section 9 to the contrary notwithstanding, the Company shall not be liable for any settlement of any claim or action effected without its written consent.

10.Legal Fees. Notwithstanding anything to the contrary in Section 9 of this Agreement, the Company shall reimburse the Executive for all costs (including but not limited to reasonable legal fees and expenses) incurred by the Executive in disputing in good faith any issue hereunder relating to the termination of the Executive’s employment, in seeking in good faith to obtain or enforce any benefit or right provided by this Agreement or any agreement or arrangement referenced herein, or, to the extent attributable to the application of Section 4999 of the Code to any payment or benefit provided hereunder, in connection with any tax audit or proceeding. Such reimbursements shall be made promptly upon delivery of the Executive’s written request for payment accompanied by appropriate evidence of the costs so incurred.

11.Other Agreements. This Agreement, the provisions of the Chairman Agreement relating to the Chairman RSUs, the Chairman RSU award agreement, any stock option award agreements relating to outstanding stock options and the Company’s Supplemental Health Insurance Plan contain the entire agreement of the parties with respect to the subject matter hereof, and except as otherwise set forth herein, supersedes all prior agreements between them, whether written or oral, with respect to the subject matter hereof.

12.Notices. All notices hereunder to the parties hereto shall be in writing sent by certified mail, return receipt requested, postage prepaid, and by fax (receipt confirmed), addressed to the respective parties at the following addresses:

If to the Company:    Mylan Inc.

1000 Mylan Blvd.

Canonsburg, Pennsylvania 15317

Attn:    Chief Legal Officer

Fax:    (724) 514-1871

If to the Executive:    The Executive’s most recent home address or fax number on file with the Company.

Either party may, by written notice complying with the requirements of this section, specify another or different person or address for the purpose of notification hereunder. All notices shall be deemed to have been given and received on the day a fax is sent or, if mailed only, on the third business day following such mailing.

13.Withholding. All payments required to be made by the Company hereunder to the Executive or his dependents, beneficiaries, or estate will be subject to the withholding of such amounts relating to tax and/or other payroll deductions as may be required by law.

14.Modification and Waiver. This Agreement may not be changed or terminated orally, nor shall any change, termination or attempted waiver of any of the provisions contained in this Agreement be binding unless in writing and signed by the party against whom the same is

14

sought to be enforced, nor shall this section itself by waived verbally. This Agreement may be amended only by a written instrument duly executed by or on behalf of the parties hereto.

15.Construction of Agreement. This Agreement and all of its provisions were subject to negotiation and shall not be construed more strictly against one party than against another party regardless of which party drafted any particular provision.

16.Successors and Assigns. This Agreement and all of its provisions, rights and obligations shall be binding upon and inure to the benefit of the parties hereto and the Company’s successors and assigns. This Agreement may be assigned by the Company to any person, firm or corporation which shall become the owner of substantially all of the assets of the Company or which shall succeed to the business of the Company; provided, however, that in the event of any such assignment the Company shall obtain an instrument in writing from the assignee in which such assignee assumes the obligations of the Company hereunder and shall deliver an executed copy thereof to the Executive. No right or interest to or in any payments or benefits hereunder shall be assignable by the Executive; provided, however, that this provision shall not preclude him from designating one or more beneficiaries to receive any amount that may be payable after his death and shall not preclude the legal representative of his estate from assigning any right hereunder to the person or persons entitled thereto under his will or, in the case of intestacy, to the person or persons entitled thereto under the laws of intestacy applicable to his estate. The term “beneficiaries” as used in this Agreement shall mean a beneficiary or beneficiary or beneficiaries so designated to receive any such amount, or if no beneficiary has been so designated, the legal representative of the Executive’s estate. No right, benefit, or interest hereunder, shall be subject to anticipation, alienation, sale, assignment, encumbrance, charge, pledge, hypothecation, or set-off in respect of any claim, debt, or obligation, or to execution, attachment, levy, or similar process, or assignment by operation of law. Any attempt, voluntary or involuntary, to effect any action specified in the immediately preceding sentence shall, to the full extent permitted by law, be null, void, and of no effect.

Without limiting the generality of the foregoing, upon the consummation of the transactions contemplated by the Business Combination Agreement in connection with the Proposed Transaction, (a) Executive will become Chairman of the Board of Directors of Viatris and Executive Chairman of Viatris and (b) references in this Agreement to the “Company” shall refer to Viatris.

17.Choice of Law and Forum. This Agreement shall be construed and enforced according to, and the rights and obligations of the parties shall be governed in all respects by, the laws of the State of New York. The parties irrevocably submit to the exclusive jurisdiction of the state and federal courts located in New York County, New York solely in respect of the interpretation and enforcement of the provisions of this Agreement, and in respect of the transactions contemplated by this Agreement, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement of this Agreement, that it is not subject to this Agreement or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement may not be enforced in or by such courts, and the parties hereto irrevocably agree

15

that all claims with respect to such action or proceeding shall be heard and determined in such a court. The parties hereby consent to and grant any such court exclusive jurisdiction over the person of such parties and over the subject matter of such dispute and agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 12 or in such other manner as may be permitted by law, shall be valid and sufficient service thereof. The Executive and the Company (on its behalf and on behalf of its affiliates) each hereby waives any right to a trial by jury with respect to any dispute described in this Section 17; provided that the Executive does not waive any right to a trial by jury with respect to any action in which he alleges a breach by the Company of its obligations under the last sentence of Section 8(g) hereof.

18.Headings. The headings of the sections of this Agreement have been inserted for convenience of reference only and shall in no way affect the interpretation of any of the terms or conditions of this Agreement.

19.Execution in Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

20.Survivorship. The obligations of the Company and the Executive under this Agreement which by their nature may require either partial or total performance after the expiration of the Term of Employment (including, without limitation, those under Sections 3(b), 4, 5, 6, 7 and 8 hereof) shall survive such expiration.

21.Conditions to Payment and Acceleration; Section 409A of the Code. The intent of the parties is that payments and benefits under this Agreement be exempt from or comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith. Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, the Executive shall not be considered to have terminated employment with the Company for purposes of this Agreement and no payments shall be due to the Executive under this Agreement until the Executive would be considered to have incurred a “separation from service” from the Company within the meaning of Section 409A of the Code. For purposes of this Agreement, each amount to be paid or benefit to be provided shall be construed as a separate identified payment for purposes of Section 409A of the Code, and any payments described in this Agreement that are due within the “short term deferral period” as defined in Section 409A of the Code shall not be treated as deferred compensation unless applicable law requires otherwise. To the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six-month period immediately following the Executive’s termination of employment shall instead be paid on the first business day after the date that is six months following the Executive’s termination of employment (or death, if earlier). To the extent required to avoid an accelerated or additional tax under Section 409A of the Code, amounts reimbursable to the Executive under this Agreement shall be paid to the Executive on or before

16

the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in-kind benefits provided to the Executive) during any one year may not effect amounts reimbursable or provided in any subsequent year; provided, however, that with respect to any reimbursements for any taxes which the Executive would become entitled to under the terms of the Agreement, the payment of such reimbursements shall be made by the Company no later than the end of the calendar year following the calendar year in which the Executive remits the related taxes.

[Signature page follows]

17

IN WITNESS WHEREOF, the undersigned have executed this Agreement on the day and year first above mentioned, to be effective as of the Effective Date.

MYLAN N.V.,
by	/s/ Brian Roman
	Name: Brian Roman
	Title: Authorized Signatory

MYLAN INC.,
by	/s/ Thomas Salus
	Name: Thomas Salus
	Title: Authorized Signatory
	/s/ Robert J. Coury
	Robert J. Coury

18

Schedule A

Specified duties include but are not limited to:

• Overall leadership and strategic direction of Mylan N.V. and the Affiliated Companies;

• Providing guidance to the CEO and senior management of Mylan N.V. and the Affiliated Companies;

• Coordination of activities of the Board;

• Oversight and key involvement in talent management;

• Communication with shareholders and other important constituencies;

• Government and health policy;

• Strategic business development;

• Mergers and acquisitions;

• Responsibilities of the Chairman as specified in the Rules of the Board of Mylan N.V.;

• Leadership and strategic direction in navigating the unique challenges posed to the Company and the pharmaceutical industry by the COVID-19 pandemic; and

• Oversight of work related to the Proposed Transaction, including leading the integration of the pre-closing Mylan and Upjohn management teams

EX-22

Exhibit 22

List of Subsidiary Guarantors and Issuers of Guaranteed Securities

As of March 31, 2020, Mylan Inc., a Pennsylvania corporation, was (i) a guarantor of Mylan N.V.’s 3.750% Senior Notes due 2020, 3.150% Senior Notes due 2021, 3.950% Senior Notes due 2026 and 5.250% Senior Notes due 2046 and (ii) the issuer of Mylan Inc.’s 3.125% Senior Notes due 2023, 4.200% Senior Notes due 2023, 4.550% Senior Notes due 2028, 5.400% Senior Notes due 2043 and 5.200% Senior Notes due 2048, which are guaranteed by Mylan N.V.

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Heather Bresch, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Mylan N.V.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Heather Bresch

Heather Bresch

Chief Executive Officer

(Principal Executive Officer)

Date: May 11, 2020    

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Kenneth S. Parks, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Mylan N.V.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Kenneth S. Parks

Kenneth S. Parks

Chief Financial Officer

(Principal Financial Officer)

Date: May 11, 2020

EX-32.2

Exhibit 32

Certification of Principal Executive Officer and Principal Financial Officer Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Mylan N.V. (the “Company”) for the period ended September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the capacities and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Heather Bresch

Heather Bresch

Chief Executive Officer

(Principal Executive Officer)

/s/ Kenneth S. Parks

Kenneth S. Parks

Chief Financial Officer

(Principal Financial Officer)

Date: May 11, 2020

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished in accordance with Securities and Exchange Commission Release No. 34-47551 and shall not be considered filed as part of the Form 10-Q.

XML

Balance Sheet Components (Other Current Liabilities) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Schedule of other current liabilities [Line Items]
Other receivables	$ 345.4	$ 418.7
Legal and professional accruals, including litigation accruals	127.2	138.2
Payroll and employee benefit liabilities	394.3	467.1
Contingent consideration	236.2	250.7
Accrued interest	151.0	59.1
Restructuring	19.7	26.0
Fair value of financial instruments	70.3	12.9
Operating lease liability	70.5	76.7
Other	513.6	575.3
Other current liabilities	2,212.7	2,319.9
Clean energy investments
Schedule of other current liabilities [Line Items]
Other current liabilities	48.3	47.7
Prepaid expenses and other current assets
Schedule of other current liabilities [Line Items]
Contingent consideration	117.3	120.4
Variable Consideration
Schedule of other current liabilities [Line Items]
Other receivables	$ 700.5	$ 796.5

XML

Pension and Other Postretirement Benefit (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans, Number of Frozen Plans	2
Defined benefit plans, estimated benefit payments, in current fiscal year	$ 35.2
Estimated employer contributions in current year	$ 35.1

XML

Balance Sheet Components (Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Prepaid expenses	$ 162.0	$ 156.7
Restricted cash	15.5	15.5
Fair value of financial instruments	55.9	43.3
Equity securities	32.6	39.0
Other current assets	311.0	270.7
Prepaid expenses and other current assets	613.9	552.0
Available-for-sale fixed income investments
Property, Plant and Equipment [Line Items]
Available-for-sale securities	$ 36.9	$ 26.8

XML

Segment Information (Reconciliation Of Segment Information To Total Consolidated Information) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Sales Revenue, Goods, Net	$ 2,588.2	$ 2,460.6
Revenues	2,619.2	2,495.5
Amortization of Intangible Assets	(351.2)	(405.5)
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	0.0	(29.5)
Research and development	(114.2)	(172.6)
Litigation settlements and other contingencies, net	(1.8)	(0.7)
Earnings from operations	184.7	24.0
Other revenue
Segment Reporting Information [Line Items]
Segment profitability	788.7	692.4
Amortization of Intangible Assets	(351.2)	(405.5)
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		29.5
Research and development	(25.7)	(70.6)
Corporate costs	(225.3)	(162.1)
Litigation settlements and other contingencies, net	(1.8)	(0.7)
Intersegment revenue
Segment Reporting Information [Line Items]
Revenues	(189.5)	(149.7)
Corporate / Other
Segment Reporting Information [Line Items]
Revenues	(189.5)	(149.7)
Segment profitability	0.0	0.0
North America Segment
Segment Reporting Information [Line Items]
Revenues	1,016.0	960.6
North America Segment | Operating Segment
Segment Reporting Information [Line Items]
Sales Revenue, Goods, Net	955.5	922.9
Segment profitability	444.9	394.5
North America Segment | Intersegment revenue
Segment Reporting Information [Line Items]
Revenues	41.0	15.6
Europe Segment
Segment Reporting Information [Line Items]
Revenues	1,054.5	920.8
Europe Segment | Operating Segment
Segment Reporting Information [Line Items]
Sales Revenue, Goods, Net	1,021.9	895.3
Segment profitability	275.6	204.1
Europe Segment | Intersegment revenue
Segment Reporting Information [Line Items]
Revenues	28.4	20.8
Rest of World Segment
Segment Reporting Information [Line Items]
Revenues	738.2	763.8
Rest of World Segment | Operating Segment
Segment Reporting Information [Line Items]
Sales Revenue, Goods, Net	610.8	642.4
Segment profitability	68.2	93.8
Rest of World Segment | Intersegment revenue
Segment Reporting Information [Line Items]
Revenues	120.1	113.3
Other Revenues
Segment Reporting Information [Line Items]
Revenues	31.0	34.9
Other Revenues | North America Segment | Other revenue
Segment Reporting Information [Line Items]
Revenues	19.5	22.1
Other Revenues | Europe Segment | Other revenue
Segment Reporting Information [Line Items]
Revenues	4.2	4.7
Other Revenues | Rest of World Segment | Other revenue
Segment Reporting Information [Line Items]
Revenues	$ 7.3	$ 8.1

XML

Financial Instruments and Risk Management (Financial Assets and Liabilities Carried at Fair Value) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 0.7	$ 0.7
Equity securities	32.6	39.0
Total assets at recurring fair value measurement	126.1	109.8
Fair value of financial instruments	55.9	43.3
Total liabilities at recurring fair value measurement	306.5	263.6
Foreign currency forward contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign exchange derivative assets	55.9	21.0
Foreign exchange derivative liabilities	70.3	12.9
Contingent consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	236.2	250.7
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0.7	0.7
Exchange traded funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	31.9	38.3
Available-for-sale fixed income investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	36.9	26.8
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	16.3	10.8
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	12.5	9.5
Agency mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	2.1	2.3
Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	5.4	3.6
Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0.6	0.6
Marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0.7	0.7
Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap derivative assets	0.0	22.3
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0.7	0.7
Equity securities	32.6	39.0
Total assets at recurring fair value measurement	33.3	39.7
Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0.7	0.7
Level 1 | Exchange traded funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	31.9	38.3
Level 1 | Marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0.7	0.7
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at recurring fair value measurement	92.8	70.1
Total liabilities at recurring fair value measurement	70.3	12.9
Level 2 | Foreign currency forward contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign exchange derivative assets	55.9	21.0
Foreign exchange derivative liabilities	70.3	12.9
Level 2 | Available-for-sale fixed income investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	36.9	26.8
Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	16.3	10.8
Level 2 | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	12.5	9.5
Level 2 | Agency mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	2.1	2.3
Level 2 | Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	5.4	3.6
Level 2 | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0.6	0.6
Level 2 | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap derivative assets	0.0	22.3
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at recurring fair value measurement	236.2	250.7
Level 3 | Contingent consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	236.2	250.7
Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial instruments	39.2	0.0
Fair value of financial instruments	$ 0.0	$ 34.8

XML

Financial Instruments and Risk Management Financial Instruments and Risk Management (Effect Of Derivative Instruments on the Condensed Consolidated Statements of Comprehensive Earnings Derivatives in Cash Flow Hedging Relationships) (Details) (Details) - Cash Flow Hedging - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ (42.8)	$ 15.5
Foreign currency forward contracts
Derivative [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ (42.8)	$ 15.5

XML

Debt (Minimum Repayments on Outstanding Borrowings) (Details) $ in Millions	Mar. 31, 2020 USD ($)
Debt Disclosure [Abstract]
2020	$ 1,429
2021	2,250
2022	0
2023	1,250
2024	1,103
Thereafter	6,629
Total	$ 12,661

XML

Share-Based Incentive Plan

3 Months Ended

Mar. 31, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Incentive Plan

Share-Based Incentive Plan

The Company’s shareholders have approved the 2003 Long-Term Incentive Plan (as amended, the “2003 Plan”). Under the 2003 Plan, 55,300,000 ordinary shares are reserved for issuance to key employees, consultants, independent contractors and non-employee directors of the Company through a variety of incentive awards, including: stock options, stock appreciation rights (“SAR”), restricted ordinary shares and units, performance awards (“PSU”), other stock-based awards and short-term cash awards. Stock option awards are granted with an exercise price equal to the fair market value of the ordinary shares underlying the stock options at the date of the grant, generally become exercisable over periods ranging from three to four years, and generally expire in ten years.

The following table summarizes stock option and SAR (together, “stock awards”) activity:

	Number of Shares Under Stock Awards		Weighted Average Exercise Price per Share
Outstanding at December 31, 2019	6,347,709		$	36.97
Granted	699,491		17.61
Exercised	(27,615	)	21.13
Forfeited	(240,740	)	25.19
Outstanding at March 31, 2020	6,778,845		$	35.45
Vested and expected to vest at March 31, 2020	6,572,572		$	35.72
Exercisable at March 31, 2020	5,145,065		$	38.65

As of March 31, 2020, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had average remaining contractual terms of 5.7 years, 5.6 years and 4.6 years, respectively. Also, at March 31, 2020, stock awards outstanding, stock awards vested and expected to vest and stock awards exercisable had no aggregate intrinsic values.

A summary of the status of the Company’s nonvested and restricted stock unit awards, including PSUs (collectively, “restricted stock awards”), as of March 31, 2020 and the changes during the three months ended March 31, 2020 are presented below:

	Number of Restricted Stock Awards		Weighted Average Grant-Date Fair Value per Share
Nonvested at December 31, 2019	4,105,689		$	34.42
Granted	2,944,296		17.48
Released	(1,100,256	)	36.56
Forfeited	(238,662	)	44.14
Nonvested at March 31, 2020	5,711,067		$	24.87

As of March 31, 2020, the Company had $111.2 million of total unrecognized compensation expense, net of estimated forfeitures, related to all of its stock-based awards, which we expect to recognize over the remaining weighted average vesting period of 1.8 years. The total intrinsic value of stock awards exercised and restricted stock units released during the three months ended March 31, 2020 and 2019 was $19.0 million and $22.1 million, respectively.

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Earnings (Loss) per Ordinary Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings (Loss) per Ordinary Share

Earnings (Loss) per Ordinary Share

Basic earnings (loss) per ordinary share is computed by dividing net earnings (loss) by the weighted average number of ordinary shares outstanding during the period. Diluted earnings (loss) per ordinary share is computed by dividing net earnings (loss) by the weighted average number of ordinary shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities or instruments, if the impact is dilutive.

Basic and diluted earnings (loss) per ordinary share are calculated as follows:

	Three Months Ended
	March 31,
(In millions, except per share amounts)	2020		2019
Basic earnings (loss) (numerator):
Net earnings (loss)	$	20.8	$	(25.0	)
Shares (denominator):
Weighted average ordinary shares outstanding	516.4		515.0
Basic earnings (loss) per ordinary share	$	0.04	$	(0.05	)
Diluted earnings (loss) (numerator):
Net earnings (loss)	$	20.8	$	(25.0	)
Shares (denominator):
Weighted average ordinary shares outstanding	516.4		515.0
Share-based awards	0.6		—
Total dilutive shares outstanding	517.0		515.0
Net earnings (loss) per diluted ordinary share	$	0.04	$	(0.05	)

Additional stock awards and restricted stock awards were outstanding during the three months ended March 31, 2020 and 2019, but were not included in the computation of diluted earnings per ordinary share for each respective period because the effect would be anti-dilutive. Excluded shares at March 31, 2020 include certain share-based compensation awards whose performance conditions had not been fully met. Such excluded shares and anti-dilutive awards represented 9.6 million shares and 8.9 million shares for the three months ended March 31, 2020 and 2019, respectively.

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2020 are as follows:

(In millions)	North America Segment			Europe Segment			Rest of World Segment			Total
Balance at December 31, 2019:
Goodwill	$	3,708.4		$	4,548.6		$	1,718.6		$	9,975.6
Accumulated impairment losses	(385.0		)	—			—			(385.0		)
	3,323.4			4,548.6			1,718.6			9,590.6
Foreign currency translation	(76.6		)	(117.5		)	(69.8		)	(263.9		)
	$	3,246.8		$	4,431.1		$	1,648.8		$	9,326.7
Balance at March 31, 2020:
Goodwill	$	3,631.8		$	4,431.1		$	1,648.8		$	9,711.7
Accumulated impairment losses	(385.0		)	—			—			(385.0		)
	$	3,246.8		$	4,431.1		$	1,648.8		$	9,326.7

Components of Intangible Assets

Intangible assets consist of the following components at March 31, 2020 and December 31, 2019:

(In millions)	Weighted Average Life (Years)	Original Cost		Accumulated Amortization		Net Book Value
March 31, 2020
Product rights, licenses and other (1)	15	$	19,653.5	$	8,721.5	$	10,932.0
In-process research and development		114.9		—		114.9
		$	19,768.4	$	8,721.5	$	11,046.9
December 31, 2019
Product rights, licenses and other (1)	15	$	20,109.1	$	8,579.5	$	11,529.6
In-process research and development		120.3		—		120.3
		$	20,229.4	$	8,579.5	$	11,649.9

____________

⁽¹⁾ 

Represents amortizable intangible assets. Other intangible assets consists principally of customer lists and contractual rights.

Finite-lived Intangible Assets Amortization Expense

	Three Months Ended
	March 31,
(In millions)	2020		2019
Intangible asset amortization expense	$	351.2	$	405.5
IPR&D intangible asset impairment charges	—		29.5
Total intangible asset amortization expense (including impairment charges)	$	351.2	$	435.0

Expected Amortization Expense

Intangible asset amortization expense over the remainder of 2020 and for the years ended December 31, 2021 through 2024 is estimated to be as follows (excludes the potential impact of the Combination):

(In millions)
2020	$	1,056
2021	1,331
2022	1,264
2023	1,103
2024	995

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Pensions and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2020

Retirement Benefits [Abstract]

Net Periodic Benefit Cost

Components of net periodic benefit cost for the three months ended March 31, 2020 and 2019 were as follows:

	Pension and Other Postretirement Benefits
	Three Months Ended
	March 31,
(In millions)	2020			2019
Service cost	$	5.3		$	5.3
Interest cost	2.9			3.8
Expected return on plan assets	(3.4		)	(3.0		)
Amortization of prior service costs	—			0.3
Recognized net actuarial losses (gains)	0.2			(0.2		)
Net periodic benefit cost	$	5.0		$	6.2

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Reconciliation of Segment Information to Total Consolidated Information

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 March 31, 2020
Net sales	$	955.5	$	1,021.9	$	610.8	$	—		$	2,588.2
Other revenue	19.5		4.2		7.3		—			31.0
Intersegment revenue	41.0		28.4		120.1		(189.5		)	—
Total	$	1,016.0	$	1,054.5	$	738.2	$	(189.5	)	$	2,619.2
Segment profitability	$	444.9	$	275.6	$	68.2	$	—		$	788.7
Intangible asset amortization expense										(351.2		)
Globally managed research and development costs										(25.7		)
Corporate costs and special items										(225.3		)
Litigation settlements & other contingencies										(1.8		)
Earnings from operations										$	184.7

(In millions)	North America		Europe		Rest of World		Eliminations			Consolidated
Three Months Ended March 31, 2019
Net sales	$	922.9	$	895.3	$	642.4	$	—		$	2,460.6
Other revenue	22.1		4.7		8.1		—			34.9
Intersegment revenue	15.6		20.8		113.3		(149.7		)	—
Total	$	960.6	$	920.8	$	763.8	$	(149.7	)	$	2,495.5
Segment profitability	$	394.5	$	204.1	$	93.8	$	—		$	692.4
Intangible asset amortization expense										(405.5		)
Intangible asset impairment charges										(29.5		)
Globally managed research and development costs										(70.6		)
Corporate costs and special items										(162.1		)
Litigation settlements & other contingencies										(0.7		)
Earnings from operations										$	24.0

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Segment Information (Policies)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Reporting Policy

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 over-the-counter 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 research and development (“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 2019 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.

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Comprehensive Earnings

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Comprehensive Earnings

Comprehensive Loss

Accumulated other comprehensive loss, as reflected on the condensed consolidated balance sheets, is comprised of the following:

(In millions)	March 31, 2020			December 31, 2019
Accumulated other comprehensive loss:
Net unrealized gain on marketable securities, net of tax	$	0.8		$	0.6
Net unrecognized loss and prior service cost related to defined benefit plans, net of tax	(19.0		)	(17.4		)
Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax	(70.1		)	(31.6		)
Net unrecognized loss on derivatives in net investment hedging relationships, net of tax	(34.1		)	(74.3		)
Foreign currency translation adjustment	(2,331.1		)	(1,674.5		)
	$	(2,453.5	)	$	(1,797.2	)

Components of accumulated other comprehensive loss, before tax, consist of the following, for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31, 2020
	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, 2019, net of tax				$	(31.6	)	$	(74.3	)	$	0.6	$	(17.4	)	$	(1,674.5	)	$	(1,797.2	)
Other comprehensive (loss) earnings before reclassifications, before tax				(52.4		)	42.3			0.2		(1.8		)	(656.6		)	(668.3		)
Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax:
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales	(0.1	)		(0.1		)												(0.1		)
Loss on interest rate swaps classified as cash flow hedges, included in interest expense			1.1	1.1														1.1
Amortization of prior service costs included in SG&A												—						—
Amortization of actuarial gain included in SG&A												0.2						0.2
Net other comprehensive (loss) earnings, before tax				(51.4		)	42.3			0.2		(1.6		)	(656.6		)	(667.1		)
Income tax (benefit) provision				(12.9		)	2.1			—		—			—			(10.8		)
Balance at March 31, 2020, net of tax				$	(70.1	)	$	(34.1	)	$	0.8	$	(19.0	)	$	(2,331.1	)	$	(2,453.5	)

	Three Months Ended March 31, 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				24.5			58.1			0.4		0.1			(338.5		)	(255.4		)
Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax:
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales	(0.3	)		(0.3		)												(0.3		)
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 SG&A												0.3						0.3
Amortization of actuarial loss included in SG&A												(0.2		)				(0.2		)
Net other comprehensive earnings (loss), before tax				26.0			58.1			0.4		0.2			(338.5		)	(253.8		)
Income tax provision (benefit)				8.8			2.9			—		0.1			—			11.8
Cumulative effect of the adoption of new accounting standards				(3.4		)	—			—		(0.2		)	—			(3.6		)
Balance at March 31, 2019, net of tax				$	(39.3	)	$	(75.7	)	$	0.4	$	1.6		$	(1,597.5	)	$	(1,710.5	)

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Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

CARES Act

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted and signed into law. The CARES Act includes several provisions, including increasing the amount of deductible interest, allowing companies to carryback certain Net Operating Losses (“NOLs”) and increasing the amount of NOLs that corporations can use to offset income. We anticipate that the applicable provisions of the CARES Act will reduce our 2020 income tax expense by approximately $30.0 million. We will continue to monitor and assess the impact the CARES Act may have on our business and financial results.

Tax Examinations

The Company is subject to income taxes and tax audits in many jurisdictions. A certain degree of estimation is thus required in recording the assets and liabilities related to income taxes. Tax audits and examinations can involve complex issues, interpretations, and judgments and the resolution of matters that may span multiple years, particularly if subject to litigation or negotiation.

Although the Company believes that adequate provisions have been made for these uncertain tax positions, the Company’s assessment of uncertain tax positions is based on estimates and assumptions that the Company believes are reasonable but the estimates for unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variations from such estimates could materially affect the Company’s financial condition, results of operations or cash flows in the period of resolution, settlement or when the statutes of limitations expire.

Mylan is subject to ongoing IRS examinations. The years 2015 through 2018 are open years under examination. The years 2012, 2013 and 2014 have one matter open, and a Tax Court petition has been filed regarding the matter and a trial was held in December 2018 and is discussed further below.

Several international audits are currently in progress. In some cases, the tax auditors have proposed adjustments to our tax positions including with respect to intercompany transactions, and we are in ongoing discussions with the auditors regarding the validity of their positions. In certain cases, these audits can also result in non-tax consequences. For example, under French law, certain tax matters are automatically referred for criminal investigation.

The Company’s major state taxing jurisdictions remain open from fiscal year 2013 through 2018, with several state audits currently in progress. The Company’s major international taxing jurisdictions remain open from 2012 through 2018, some of which are indemnified by Strides Arcolab Limited (“Strides Arcolab”) for tax assessments.

Tax Court Proceedings

The Company's U.S. federal income tax returns for 2012 through 2014 had been subject to proceedings in U.S. Tax Court involving a dispute with the IRS regarding whether certain costs related to abbreviated new drug applications (“ANDAs”) were eligible to be expensed and deducted immediately or required to be amortized over longer periods. A trial was held in U.S. Tax Court in December 2018. Both parties delivered their final post-trial briefs on June 27, 2019 and are awaiting the court’s final decision.

Accounting for Uncertainty in Income Taxes

The impact of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority must be recognized at the largest amount that is more likely than not to be sustained. No portion of an uncertain tax position will be recognized if the position has less than a 50% likelihood of being sustained.

During the three months ended March 31, 2019, primarily due to the expiration of federal and foreign statutes of limitations expirations, the Company reduced its net liability for unrecognized tax benefits by approximately $83.8 million.

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Recent Accounting Pronouncements Recent Accounting Pronouncements (Impact of Adoption - ASU 2014-09) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Item Effected [Line Items]
Cumulative effect of the adoption of new accounting standards		$ 0.0
Cost of sales	$ 1,713.1	1,690.3
Income tax (benefit) provision	9.9	(89.5)
Net earnings (loss)	20.8	(25.0)
Revenues	2,619.2	2,495.5
Prepaid expenses and other current assets	613.9		$ 552.0
Income taxes payable	254.3		213.0
Retained earnings	6,051.9		6,031.1
Accumulated other comprehensive loss	$ (2,453.5)		$ (1,797.2)
Retained Earnings [Member]
Item Effected [Line Items]
Cumulative effect of the adoption of new accounting standards		$ 3.6

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Revenue Recognition and Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Revenue Recognition And Accounts Receivable [Line Items]
Trade receivables, net	$ 2,429.2	$ 2,640.1
Other receivables	345.4	418.7
Accounts receivable, net	2,774.6	3,058.8
Securitized accounts receivable	373.1	407.0
Receivables Facility
Revenue Recognition And Accounts Receivable [Line Items]
Accounts receivable securitization facility maximum borrowing capacity	400.0
Note Securitization Facility [Member]
Revenue Recognition And Accounts Receivable [Line Items]
Accounts receivable securitization facility maximum borrowing capacity	200.0
Variable Consideration
Revenue Recognition And Accounts Receivable [Line Items]
Trade receivables, net	1,393.8	1,512.0
Other receivables	700.5	796.5
Accounts receivable, net	$ 2,094.3	$ 2,308.5

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Share-Based Incentive Plan (Nonvested Restricted Stock, Restricted Stock Units and PSUs Activity) (Details) - Restricted stock awards	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of restricted stock awards, nonvested beginning of period | shares	4,105,689
Weighted average grant-date fair value per share, nonvested beginning of period | $ / shares	$ 34.42
Number of restricted stock awards, granted | shares	2,944,296
Weighted average grant-date fair value per share, granted | $ / shares	$ 17.48
Number of restricted stock awards, released | shares	(1,100,256)
Weighted average grant-date fair value per share, released | $ / shares	$ 36.56
Number of restricted stock awards, forfeited | shares	(238,662)
Weighted average grant-date fair value per share, forfeited | $ / shares	$ 44.14
Number of restricted stock awards, nonvested end of period | shares	5,711,067
Weighted average grant-date fair value per share, nonvested end of period | $ / shares	$ 24.87

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Litigation (Modafinil Antitrust Litigation and FTC Inquiry) (Narrative) (Details) - Modafinil Antitrust Litigation and FTC Inquiry $ in Millions			3 Months Ended
	Jul. 10, 2015 other_drug_manufacturers	Apr. 27, 2006 other_drug_manufacturers	Mar. 31, 2020 USD ($)
Loss Contingencies [Line Items]
Loss Contingency, Loss in Period			$ 18.0
Loss Contingency Accrual			$ 14.4
Other drug manufacturers
Loss Contingencies [Line Items]
Number of defendants | other_drug_manufacturers	3	4

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Earnings (Loss) per Ordinary Share (Narrative) (Details) - $ / shares shares in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Diluted (in USD per share)	$ 0.04	$ (0.05)
Anti-dilutive stock options or restricted stock awards excluded from computation of earnings per share	9.6	8.9

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Goodwill and Intangible Assets (Components of Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Intangible Assets by Major Class [Line Items]
IPR&D intangible asset impairment charges	$ 0.0	$ 29.5
Finite-lived intangible assets, original cost	19,653.5		$ 20,109.1
Finite-lived intangible assets, accumulated amortization	8,721.5		8,579.5
Finite-lived intangible assets, net book value	10,932.0		11,529.6
In-process research and development	114.9		120.3
Intangible assets, gross, excluding goodwill	19,768.4		20,229.4
Intangible assets, net book value, excluding goodwill	$ 11,046.9		$ 11,649.9
Patents and technologies
Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, estimated useful life, in years	15 years		15 years

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Litigation (U.K. Competition and Markets Authority) (Narrative) (Details) - U.K. Competition and Markets Authority Proceedings Paroxetine £ in Millions	Feb. 12, 2016 GBP (£)
Loss Contingencies [Line Items]
Damages awarded	£ 5.8
Mylan
Loss Contingencies [Line Items]
Damages awarded	£ 2.7

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Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net earnings (loss)	$ 20.8	$ (25.0)
Adjustments to reconcile net (loss) earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	415.0	500.5
Share-based Compensation	19.4	18.0
Deferred income tax (benefit) expense	(43.9)	6.7
Loss from equity method investments	17.3	17.0
Other non-cash items	28.7	(2.3)
Litigation settlements and other contingencies, net	7.2	(3.7)
Changes in operating assets and liabilities:
Accounts receivable	73.6	62.8
Inventories	(131.8)	(183.0)
Accounts payable	(201.0)	(277.5)
Income taxes	10.8	(213.6)
Other operating assets and liabilities, net	75.0	60.4
Net cash provided by (used in) operating activities	291.1	(39.7)
Cash flows from investing activities:
Cash paid for acquisitions, net	0.0	(7.1)
Capital expenditures	(43.4)	(53.1)
Purchase of available for sale securities and other investments	(53.6)	(7.8)
Proceeds from the sale of marketable securities	18.1	7.6
Payments for product rights and other, net	(67.1)	(15.4)
Proceeds from the sale of assets	0.4	0.2
Net cash used in investing activities	(145.6)	(75.6)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	33.1	0.1
Payments of long-term debt	(33.0)	(0.2)
Change in short-term borrowings, net	0.0	(1.5)
Taxes paid related to net share settlement of equity awards	(5.0)	(7.1)
Contingent consideration payments	(19.3)	(31.8)
Payments of financing fees	0.0	(1.2)
Proceeds from exercise of stock options	0.6	2.4
Other items, net	(1.2)	(0.8)
Net cash used in financing activities	(24.8)	(40.1)
Effect on cash of changes in exchange rates	(23.9)	(3.0)
Net increase (decrease) in cash, cash equivalents and restricted cash	96.8	(158.4)
Cash, cash equivalents and restricted cash — beginning of period	491.1	389.3
Cash, cash equivalents and restricted cash — end of period	$ 587.9	$ 230.9

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Condensed Consolidated Statements Of Comprehensive Loss - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net earnings (loss)	$ 20.8	$ (25.0)
Other comprehensive loss, before tax:
Foreign currency translation adjustment	(656.6)	(338.5)
Change in unrecognized (loss) gain and prior service cost related to defined benefit plans	(1.6)	0.2
Net unrealized gain on marketable securities	0.2	0.4
Other comprehensive loss, before tax	(667.1)	(253.8)
Income tax (benefit) provision	(10.8)	11.8
Other comprehensive loss, net of tax	(656.3)	(265.6)
Comprehensive loss	(635.5)	(290.6)
Cash Flow Hedging
Other comprehensive loss, before tax:
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax	(51.4)	26.0
Net Investment Hedging
Other comprehensive loss, before tax:
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax	$ 42.3	$ 58.1

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Segment Information

3 Months Ended

Mar. 31, 2020

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 over-the-counter 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 research and development (“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 2019 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 March 31, 2020
Net sales	$	955.5	$	1,021.9	$	610.8	$	—		$	2,588.2
Other revenue	19.5		4.2		7.3		—			31.0
Intersegment revenue	41.0		28.4		120.1		(189.5		)	—
Total	$	1,016.0	$	1,054.5	$	738.2	$	(189.5	)	$	2,619.2
Segment profitability	$	444.9	$	275.6	$	68.2	$	—		$	788.7
Intangible asset amortization expense										(351.2		)
Globally managed research and development costs										(25.7		)
Corporate costs and special items										(225.3		)
Litigation settlements & other contingencies										(1.8		)
Earnings from operations										$	184.7

(In millions)	North America		Europe		Rest of World		Eliminations			Consolidated
Three Months Ended March 31, 2019
Net sales	$	922.9	$	895.3	$	642.4	$	—		$	2,460.6
Other revenue	22.1		4.7		8.1		—			34.9
Intersegment revenue	15.6		20.8		113.3		(149.7		)	—
Total	$	960.6	$	920.8	$	763.8	$	(149.7	)	$	2,495.5
Segment profitability	$	394.5	$	204.1	$	93.8	$	—		$	692.4
Intangible asset amortization expense										(405.5		)
Intangible asset impairment charges										(29.5		)
Globally managed research and development costs										(70.6		)
Corporate costs and special items										(162.1		)
Litigation settlements & other contingencies										(0.7		)
Earnings from operations										$	24.0

XML

Litigation

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Litigation

The Company is involved in various disputes, governmental and/or regulatory inquiries, investigations and proceedings, tax proceedings and litigation matters, both in the U.S. and abroad, that arise from time to time, some of which could result in losses, including damages, fines and/or civil penalties, and/or criminal charges against the Company. These matters are often complex and have outcomes that are difficult to predict. The Company is also party to certain proceedings and litigation matters for which it may be entitled to indemnification under the respective sale and purchase agreements relating to the acquisitions of the former Merck Generics business, Agila Specialties Private Limited, Abbott Laboratories’ non-U.S. developed markets specialty and branded generics business, and certain other acquisitions.

While the Company believes that it has meritorious defenses with respect to the claims asserted against it and intends to vigorously defend its position, the process of resolving these matters is inherently uncertain and may develop over a long period of time, and so it is not possible to predict the ultimate resolution of any such matter. It is possible that an unfavorable resolution of any of the ongoing matters or the inability or denial of Merck KGaA, Strides Arcolab Limited, Abbott Laboratories, or another indemnitor or insurer to pay an indemnified claim, could have a material adverse effect on the Company’s business, financial condition, results of operations, cash flows and/or ordinary share price.

Some of these governmental inquiries, investigations, proceedings and litigation matters with which the Company is involved are described below, and unless otherwise disclosed, the Company is unable to predict the outcome of the matter or to provide an estimate of the range of reasonably possible material losses. The Company records accruals for loss contingencies to the extent we conclude it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

The Company is also involved in other pending proceedings for which, in the opinion of the Company based upon facts and circumstances known at the time, either the likelihood of loss is remote or any reasonably possible loss associated with the resolution of such proceedings is not expected to be material to the Company’s business, financial position, results of operations, cash flows and/or ordinary share price. If and when any reasonably possible losses associated with the resolution of such other pending proceedings, in the opinion of the Company, become material, the Company will disclose such matters.

Legal costs are recorded as incurred and are classified in SG&A in the Company’s condensed consolidated statements of operations.

Modafinil Antitrust Litigation

Beginning in April 2006, Mylan and four other drug manufacturers were named as defendants in civil lawsuits filed in or transferred to the U.S. District Court for the Eastern District of Pennsylvania (“EDPA”) by a variety of plaintiffs purportedly representing direct and indirect purchasers of the drug modafinil and in a lawsuit filed by Apotex, Inc., a manufacturer of generic drugs. These actions alleged violations of federal antitrust and state laws in connection with the generic defendants’ settlement of patent litigation with Cephalon relating to modafinil. Mylan has settled the lawsuits filed by the putative direct purchaser class and retailer opt-out plaintiffs and Apotex and has entered into a settlement agreement with the putative indirect purchasers for approximately $14.4 million, which the Court granted final approval of on April 21, 2020.

On July 10, 2015, the Louisiana Attorney General filed a lawsuit in the 19th Judicial District Court in Louisiana against Mylan and three other drug manufacturers asserting state law claims based on the same underlying allegations as those made in the litigation then pending in the EDPA. On December 8, 2016, the District Court dismissed the lawsuit with prejudice, which the State of Louisiana appealed. The appeals court subsequently remanded the lawsuit to the District Court to include certain language in order to make the District Court’s dismissal decision final and appealable.

The Company believes that it has strong defenses to the remaining case. Although it is reasonably possible that the Company may incur additional losses from these matters, any amount cannot be reasonably estimated at this time.

The Company recorded and paid approximately $18.0 million of expense during the year ended December 31, 2019. At December 31, 2019 and March 31, 2020, the Company has a total accrual of approximately $14.4 million related to this matter, which is included in other current liabilities in the condensed consolidated balance sheets.

Pioglitazone

Beginning in December 2013, Mylan, Takeda, and several other drug manufacturers were named as defendants in civil lawsuits consolidated in the U.S. District Court for the Southern District of New York (“SDNY”) by plaintiffs which purport to represent direct and indirect purchasers of branded or generic Actos® and Actoplus Met®. These actions allege violations of state and federal competition laws in connection with the defendants’ settlements of patent litigation in 2010 related to Actos® and Actoplus Met®. Mylan’s motion to dismiss the indirect purchasers’ complaint was granted and no appeal was filed as to Mylan. Following the appellate decision relating to other defendants, the direct purchasers filed an amended complaint against Mylan and the other manufacturers. Mylan’s motion to dismiss was granted with prejudice on October 8, 2019.

Trade Agreements Act (“TAA”)

On April 9, 2018, a subsidiary of Mylan N.V. received a civil investigative demand from the Commercial Litigation Branch of the U.S. Department of Justice (“DOJ”) concerning its TAA compliance for certain products. The company fully cooperated with DOJ. On September 14, 2018, the United States District Court for the Southern District of Ohio unsealed a qui tam lawsuit filed against the Mylan N.V. subsidiary concerning its TAA compliance for the same products identified in DOJ’s civil investigative demand. DOJ has declined to intervene in the lawsuit and has closed its investigation. The lawsuit has been stayed and we believe that its claims are without merit and intend to defend against them vigorously.

EpiPen® Auto-Injector and Certain Congressional Matters

Department of Veterans Affairs Request for Information

On June 30, 2017, the Company responded to a request for information from the Department of Veterans Affairs (“VA”) (acting on behalf of itself and other government agencies) requesting certain historical pricing data related to the EpiPen® Auto-Injector. The Company and the VA have been engaged in a continuing dialogue regarding the classification of the EpiPen® Auto-Injector as a covered drug under Section 603 of the Veterans Health Care Act of 1992, Public Law 102-585. The Company historically classified EpiPen® Auto-Injector as a non-covered drug with the VA based upon long standing written guidance from the federal government. The Company has voluntarily reclassified the EpiPen® Auto-Injector as a covered drug, effective from April 1, 2017. The Company is fully cooperating with the VA.

EpiPen® Auto-Injector Civil Litigation

Mylan Specialty and other Mylan-affiliated entities have been named as defendants in putative indirect purchaser class actions relating to the pricing and/or marketing of the EpiPen® Auto-Injector. The plaintiffs in these cases assert violations of various federal and state antitrust and consumer protection laws, the Racketeer Influenced and Corrupt Organizations Act (“RICO”), as well as common law claims. Plaintiffs’ claims include purported challenges to the prices charged for the EpiPen® Auto-Injector and/or the marketing of the product in packages containing two auto-injectors, as well as allegedly anti-competitive conduct. A Mylan officer and other non-Mylan affiliated companies were also named as defendants in some of the class actions. These lawsuits were filed in the various federal and state courts and have either been dismissed or transferred into a multidistrict litigation (“MDL”) in the U.S. District Court for the District of Kansas and have been consolidated. Mylan filed a motion to dismiss the consolidated amended complaint, which was granted in part and denied in part. On December 7, 2018, the Plaintiffs filed a motion for class certification. On February 27, 2020, the District Court issued an order denying in part and granting in part Plaintiffs’ motion for class certification. The District Court declined to certify consumer protection and unjust enrichment damages classes, as well as an injunctive relief class. The District Court certified an antitrust class that applies to 17 states and a RICO class. We filed a petition for permission to appeal the class certification decision on March 12, 2020, which is pending before the Tenth Circuit. A trial date has been scheduled for April 2021. We believe that the remaining claims in these lawsuits are without merit and intend to defend against them vigorously.

On February 14, 2020, Mylan Specialty and other Mylan-affiliated entities, together with other non-Mylan affiliated companies, were named as defendants in a putative direct purchaser class action filed in the U.S. District Court for the District of Kansas relating to the pricing and/or marketing of the EpiPen® Auto-Injector. The plaintiff in this case asserts federal antitrust claims which are based on allegations that are similar to those in the putative indirect purchaser class actions discussed above. We believe that the claims in this lawsuit are without merit and intend to defend against them vigorously.

On March 29, 2020, Mylan Inc. and Mylan Specialty, together with other non-Mylan affiliated companies, were named as defendants in a putative direct purchaser class action filed in the U.S. District Court for the District of Minnesota relating to contracts with certain pharmacy benefit managers concerning EpiPen® Auto-Injector. The plaintiff claims that the alleged conduct resulted in the exclusion or restriction of competing products and the elimination of pricing constraints in violation of RICO and federal antitrust law. We believe that the claims in this lawsuit are without merit and intend to defend against them vigorously.

On April 24, 2017, Sanofi-Aventis U.S., LLC (“Sanofi”) filed a lawsuit against Mylan Inc. and Mylan Specialty in the U.S. District Court for the District of New Jersey. This lawsuit has been transferred into the aforementioned MDL. In this lawsuit, Sanofi alleges exclusive dealings and anti-competitive marketing practices in violation of the antitrust laws in connection with the sale and marketing of the EpiPen® Auto-Injector. On November 1, 2018, Sanofi filed a Motion for a Suggestion of Remand of the case to the U.S. District Court for the District of New Jersey. On January 23, 2019, the Court denied Sanofi’s motion without prejudice. On June 28, 2019, Mylan filed a motion for summary judgment as to the claims asserted by Sanofi and Sanofi filed both a motion for partial summary judgment with respect to its claims against Mylan and for summary judgment with respect to Mylan’s counterclaims. These motions remain pending. We believe that Sanofi’s claims in this lawsuit are without merit and intend to defend against them vigorously.

The Company has a total accrual of approximately $10.0 million related to this matter at March 31, 2020, which is included in other current liabilities in the condensed consolidated balance sheets. The Company believes that it has strong defenses to current and future potential civil litigation, as well as governmental investigations and enforcement proceedings,

discussed in this “EpiPen® Auto-Injector and Certain Congressional Matters” section of this Note 18 Litigation. Although it is reasonably possible that the Company may incur additional losses from these matters, any amount cannot be reasonably estimated at this time. In addition, the Company expects to incur additional legal and other professional service expenses associated with such matters in future periods and will recognize these expenses as services are received. The Company believes that the ultimate amount paid for these services and claims could have a material effect on the Company's business, financial condition, results of operations, cash flows and/or ordinary share price in future periods.

Drug Pricing Matters

Department of Justice

On December 3, 2015, a subsidiary of Mylan N.V. received a subpoena from the Antitrust Division of the DOJ seeking information relating to the marketing, pricing, and sale of our generic Doxycycline products and any communications with competitors about such products.

On September 8, 2016, a subsidiary of Mylan N.V., as well as certain employees and a member of senior management, received subpoenas from the DOJ seeking additional information relating to the marketing, pricing and sale of our generic Cidofovir, Glipizide-metformin, Propranolol and Verapamil products and any communications with competitors about such products. Related search warrants also were executed.

On May 10, 2018, a subsidiary of Mylan N.V. received a civil investigative demand from the Civil Division of the DOJ seeking information relating to the pricing and sale of its generic drug products.

The Company is fully cooperating with the DOJ.

Civil Litigation

Beginning in 2016, the Company, along with other manufacturers, has been named as a defendant in lawsuits generally alleging anticompetitive conduct with respect to generic drugs. The lawsuits have been filed by plaintiffs, including putative classes of direct purchasers, indirect purchasers, and indirect resellers, as well as individual direct and indirect purchasers and certain counties. They allege harm under federal and state laws, including federal and state antitrust laws, state consumer protection laws and unjust enrichment claims.  Some of the lawsuits also name as defendants Mylan’s President, including allegations against him with respect to doxycycline hyclate delayed release, and one of Mylan’s sales employees, including allegations against him with respect to certain generic drugs. The lawsuits have been consolidated in an MDL proceeding in the EDPA. Defendants filed motions to dismiss certain complaints that each allege anticompetitive conduct with respect to single drug products. On October 16, 2018, the Court denied the motions with respect to the federal law claims. On February 15, 2019, the Court granted in part and denied in part the motions with respect to the state law claims. On February 21, 2019, Defendants filed a motion to dismiss certain complaints that allege anticompetitive conduct with respect to multiple drug products, which was denied on August 15, 2019. The Company believes that the claims in these lawsuits are without merit and intends to defend against them vigorously.

Attorneys General Litigation

On December 21, 2015, the Company received a subpoena and interrogatories from the Connecticut Office of the Attorney General seeking information relating to the marketing, pricing and sale of certain of the Company’s generic products (including generic doxycycline) and communications with competitors about such products. On December 14, 2016, attorneys general of certain states originally filed a complaint in the United States District Court for the District of Connecticut against several generic pharmaceutical drug manufacturers, including Mylan, alleging anticompetitive conduct with respect to, among other things, doxycycline hyclate delayed release. The complaint has subsequently been amended, including on June 18, 2018, to add attorneys general alleging violations of federal and state antitrust laws, as well as violations of various states’ consumer protection laws. This lawsuit has been transferred to the aforementioned MDL proceeding in the EDPA. The operative complaint includes attorneys general of forty-seven states, the District of Columbia and the Commonwealth of Puerto Rico. Mylan is alleged to have engaged in anticompetitive conduct with respect to doxycycline hyclate delayed release, doxycycline monohydrate, glipizide-metformin, and verapamil. The amended complaint also includes claims asserted by attorneys general of thirty-seven states and the Commonwealth of Puerto Rico against certain individuals, including Mylan’s President, with respect to doxycycline hyclate delayed release. On February 21, 2019, Defendants filed motions to dismiss the amended

complaint’s allegations of anticompetitive conduct with respect to multiple drug products, which was denied on August 15, 2019, and the ability of the state attorneys general to seek certain forms of relief under federal antitrust law, which remains pending. On May 31, 2019, Defendants filed a motion to dismiss certain state law claims, which remains pending.

On May 10, 2019, certain attorneys general filed a new complaint against various drug manufacturers and individuals, including Mylan and one of its sales employees, alleging anticompetitive conduct with respect to additional generic drugs. On November 1, 2019, the May 10, 2019 complaint was amended, adding additional states as plaintiffs. The operative complaint was brought by attorneys general of forty-eight states, the District of Columbia, the Commonwealths of Puerto Rico and the Northern Mariana Islands and the Territories of American Samoa and Guam. The amended complaint also includes claims asserted by attorneys general of forty-three states, the Commonwealths of Puerto Rico and the Northern Mariana Islands and the Territories of American Samoa and Guam against several individuals, including a Mylan sales employee.

We believe that the claims in these lawsuits are without merit and intend to defend against them vigorously.

Securities Litigation

U.S. Securities Litigation

Purported class action complaints were filed in October 2016 against Mylan N.V., Mylan Inc. and certain of their current and former directors and officers (collectively, for purposes of this paragraph, the “defendants”) in the SDNY on behalf of certain purchasers of securities of Mylan N.V. and/or Mylan Inc. on the NASDAQ. The complaints alleged that defendants made false or misleading statements and omissions of purportedly material fact, in violation of federal securities laws, in connection with disclosures relating to Mylan N.V. and Mylan Inc.’s classification of their EpiPen® Auto-Injector as a non-innovator drug for purposes of the MDRP. The complaints sought damages, as well as the plaintiffs’ fees and costs. On March 20, 2017, a consolidated amended complaint was filed, alleging substantially similar claims and seeking substantially similar relief, but adding allegations that defendants made false or misleading statements and omissions of purportedly material fact in connection with allegedly anticompetitive conduct with respect to EpiPen® Auto-Injector and certain generic drugs, and alleging violations of both federal securities laws (on behalf of a purported class of certain purchasers of securities of Mylan N.V. and/or Mylan Inc. on the NASDAQ) and Israeli securities laws (on behalf of a purported class of certain purchasers of securities of Mylan N.V. on the Tel Aviv Stock Exchange). On March 28, 2018, defendants’ motion to dismiss the consolidated amended complaint was granted in part (including the dismissal of claims arising under Israeli securities laws) and denied in part. On July 6, 2018, the plaintiffs filed a second amended complaint, including certain current and former directors and officers and additional allegations in connection with purportedly anticompetitive conduct with respect to EpiPen® Auto-Injector and certain generic drugs. On August 6, 2018, defendants filed a motion to dismiss the second amended complaint, which was granted in part and denied in part on March 29, 2019. On June 17, 2019, plaintiffs filed a third amended complaint, including certain current and former directors and employees/officers and additional allegations in connection with purportedly anticompetitive conduct with respect to certain generic drugs. On July 31, 2019, defendants filed a motion to dismiss certain of the claims in the third amended complaint, which was granted in part and denied in part on April 6, 2020. On August 30, 2019, plaintiffs filed a motion for class certification, which was granted on April 6, 2020. The certified class covers all persons or entities that purchased Mylan common stock between February 21, 2012 and May 24, 2019 excluding defendants, current and former officers and directors of Mylan, members of their immediate families and their legal representatives, heirs, successors or assigns, and any entity in which defendants have or had a controlling interest.

On February 26, 2019, MYL Litigation Recovery I LLC (an assignee of entities that purportedly purchased stock of Mylan N.V.) filed an additional complaint against Mylan N.V., Mylan Inc., and certain of their current and former directors and officers in the SDNY asserting allegations pertaining to EpiPen® Auto-Injector under the federal securities laws that overlap in part with those asserted in the third amended complaint identified above. MYL Litigation Recovery I LLC’s complaint seeks damages as well as the plaintiff’s costs. On June 5, 2019, defendants filed a motion to dismiss certain of MYL Litigation Recovery I LLC’s claims, which was granted in part and denied in part on March 30, 2020. On May 6, 2020, plaintiff filed an amended complaint against Mylan N.V, Mylan Inc., and certain of their current and former officers and directors, including allegations in connection with purportedly anticompetitive conduct with respect to EpiPen® Auto-Injector.

On February 14, 2020, the Abu Dhabi Investment Authority filed a complaint against Mylan N.V. and Mylan Inc. in the SDNY asserting allegations pertaining to EpiPen® Auto-Injector and certain generic drugs under the federal securities laws that overlap with those asserted in the third amended complaint identified above. The Abu Dhabi Investment Authority’s complaint seeks damages as well as the plaintiff’s fees and costs.

Beginning in April 2020, Mylan N.V., its directors and certain of its officers were named as defendants in lawsuits filed in federal court, including a putative class action, alleging certain federal securities law violations for purportedly failing to disclose or misrepresenting material information in the definitive proxy statement filed by Mylan N.V. with the SEC in connection with the Combination. The lawsuits generally seek various relief including (i) enjoining the defendants from proceeding with consummating, or closing the Combination and any vote on the Combination unless and until Mylan discloses and disseminates the purportedly material information; (ii) in the event the Combination is consummated, rescinding it and setting it aside or awarding rescissory damages; and (iii) reasonable attorneys and expert fees. 

We believe that the claims in these lawsuits are without merit and intend to defend against them vigorously.

Israeli Securities Litigation

On October 13, 2016, a purported shareholder of Mylan N.V. filed a lawsuit, together with a motion to certify the lawsuit as a class action on behalf of certain Mylan N.V. shareholders on the Tel Aviv Stock Exchange, against Mylan N.V. and four of its directors and officers (collectively, for purposes of this paragraph, the “defendants”) in the Tel Aviv District Court (Economic Division) (the “Friedman Action”). The plaintiff alleges that the defendants made false or misleading statements and omissions of purportedly material fact in Mylan N.V.’s reports to the Tel Aviv Stock Exchange regarding Mylan N.V.’s classification of its EpiPen® Auto-Injector for purposes of the MDRP, in violation of both U.S. and Israeli securities laws, the Israeli Companies Law and the Israeli Torts Ordinance. The plaintiff seeks damages, among other remedies. On April 30, 2017, another purported shareholder of Mylan N.V. filed a separate lawsuit, together with a motion to certify the lawsuit as a class action on behalf of certain Mylan N.V. shareholders on the Tel Aviv Stock Exchange, in the Tel Aviv District Court (Economic Division), alleging substantially similar claims and seeking substantially similar relief against the defendants and other directors and officers of Mylan N.V., but alleging also that this group of defendants made false or misleading statements and omissions of purportedly material fact in connection with allegedly anticompetitive conduct with respect to EpiPen® Auto-Injector and certain generic drugs, and alleging violations of both U.S. federal securities laws and Israeli law (the “IEC Fund Action”). On April 10, 2018, the Tel Aviv District Court granted the motion filed by plaintiffs in both the Friedman Action and the IEC Fund Action, voluntarily dismissing the Friedman Action and staying the IEC Fund Action until a judgment is issued in the purported class action securities litigation pending in the U.S. We believe that the claims in the IEC Fund Action are without merit and intend to defend against them vigorously.

Opioids

On July 27, 2017, Mylan N.V. received a subpoena from the DOJ seeking information relating to opioids manufactured, marketed or sold by Mylan during the period from January 1, 2013 to December 31, 2016. On August 29, 2017, Mylan N.V. received a civil investigative demand from the Attorney General of the State of Missouri seeking information relating to opioids manufactured, marketed or sold by Mylan during the period from January 1, 2010 to the present and related subject matter. In November 2019, a subsidiary of Mylan N.V. received a subpoena from the New York Department of Financial Services as part of an industry-wide inquiry into the effect of opioid prescriptions on New York health insurance premiums. Mylan is fully cooperating with these subpoena requests.

Mylan along with other manufacturers, distributors, pharmacies, pharmacy benefit managers, and individual healthcare providers is a defendant in more than 1,000 cases in the United States and Canada filed by various plaintiffs, including counties, cities and other local governmental entities, asserting civil claims related to sales, marketing and/or distribution practices with respect to prescription opioid products. In addition, lawsuits have been filed as putative class actions including on behalf of children with Neonatal Abstinence Syndrome due to alleged exposure to opioids. The lawsuits generally seek equitable relief and monetary damages (including punitive and/or exemplary damages) based on a variety of legal theories, including various statutory and/or common law claims, such as negligence, public nuisance and unjust enrichment. The vast majority of these lawsuits have been consolidated in an MDL in the U.S. District Court for the Northern District Court of Ohio. Mylan believes that the claims in these lawsuits are without merit and intends to defend against them vigorously.

Valsartan

Mylan N.V., and certain of its subsidiaries, along with numerous other manufacturers, retailers and others, have been named (or plaintiffs are seeking to name certain Mylan entities) as defendants in lawsuits in the United States, Canada and other countries stemming from recalls of valsartan-containing medications. The United States litigation, which is taking place in an MDL in the District of New Jersey, includes class action and individual allegations seeking the refund of the purchase price and

other economic damages allegedly sustained by consumers who purchased valsartan-containing products as well as claims for personal injuries allegedly caused by ingestion of the medication. Moreover, Mylan has received requests to indemnify purchasers of Mylan’s active pharmaceutical ingredient and/or finished dose forms of the product. We believe that the claims in these lawsuits are without merit and intend to defend against them vigorously.

European Commission Proceedings

Perindopril

On July 9, 2014, the European Commission (the “Commission”) issued a decision finding that Mylan Laboratories Limited and Mylan, as well as several other companies, had violated European Union (“EU”) competition rules relating to the product Perindopril and fined Mylan Laboratories Limited approximately €17.2 million, including approximately €8.0 million jointly and severally with Mylan Inc. The Company paid approximately $21.7 million related to this matter during the fourth quarter of 2014. In September 2014, the Company filed an appeal of the Commission’s decision to the General Court of the EU. A hearing on the appeal before the General Court of the EU was held in June 2017 and the Commission’s decision was affirmed. Mylan appealed the decision to the European Court of Justice (“CJEU”). Mylan has received a notice from an organization representing health insurers in the Netherlands stating an intention to commence follow-on litigation and asserting damages.

Citalopram

On June 19, 2013, the Commission issued a decision finding that Generics [U.K.] Limited, (“GUK”) as well as several other companies, had violated EU competition rules relating to the product Citalopram and fined GUK approximately €7.8 million, jointly and severally with Merck KGaA. GUK appealed the Commission’s decision to the General Court of the EU. The case is currently on appeal to the CJEU. The U.K. applied and was granted permission to intervene in this proceeding. GUK has received notices from European national health services and health insurers stating an intention to commence follow-on litigation and asserting damages. The national health service in England and Wales has instituted litigation against all parties to the Commission’s decision, including GUK. This litigation has been stayed pending the CJEU’s decision.

GUK has also sought indemnification from Merck KGaA with respect to the €7.8 million portion of the fine for which Merck KGaA and GUK were held jointly and severally liable. Merck KGaA has counterclaimed against GUK seeking the same indemnification. In June 2018, the Frankfurt Regional Court issued a judgment dismissing GUK claims against Merck KGaA and ordered GUK to indemnify Merck KGaA with respect to the amount for which the parties were held jointly and severally liable. GUK has appealed this decision. The proceedings have been stayed pending the CJEU appeal decision.

The Company has accrued approximately €7.4 million as of each of December 31, 2019 and March 31, 2020 related to this matter. It is reasonably possible that we will incur additional losses above the amount accrued but we cannot estimate a range of such reasonably possible losses at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued.

U.K. Competition and Markets Authority

Paroxetine

On August 12, 2011, GUK received notice that the Office of Fair Trading (subsequently changed to the Competition and Markets Authority (the “CMA”)) opened an investigation to explore the possible infringement of the Competition Act 1998 and Articles 101 and 102 of the Treaty on the Functioning of the EU, with respect to alleged agreements related to Paroxetine. The CMA issued a decision on February 12, 2016, finding that, GUK, Merck KGaA and other companies were liable for infringing EU and U.K. competition rules. With respect to Merck KGaA and GUK, the CMA issued a penalty of approximately £5.8 million, for which Merck KGaA is liable for the entire amount; and of that amount GUK is jointly and severally liable for approximately £2.7 million, which has been accrued for as of December 31, 2019 and March 31, 2020. The matter is currently on appeal to the Competition Appeals Tribunal (“CAT”), which on March 8, 2018, referred certain questions of law to the CJEU. The CJEU sought written observations from GUK, which were filed in September 2018. A hearing on the questions and the parties’ observations was held before the CJEU on September 19, 2019. On January 30, 2020, the CJEU ruled on the questions of law referred to it and the proceedings before the CAT will now resume.

Italy Investigation

The Public Prosecutor’s Office in Milan, Italy is conducting an investigation of Mylan S.p.A. and other pharmaceutical companies concerning interactions with an Italian hospital and sales of certain reimbursable drugs. Certain employees of Mylan S.p.A. have been served with search warrants in connection with the investigation. The Company is fully cooperating and assisting its employees in their cooperation with the investigation.   

Product Liability

The Company is involved in a number of product liability lawsuits and claims related to alleged personal injuries arising out of certain products manufactured and/or distributed by the Company. The Company believes that it has meritorious defenses to these lawsuits and claims and intends to defend against them vigorously. From time to time, the Company has agreed to settle or otherwise resolve certain lawsuits and claims on terms and conditions that are in the best interests of the Company. The Company has accrued approximately $14.5 million and $11.8 million at December 31, 2019 and March 31, 2020, respectively. It is reasonably possible that we will incur additional losses and fees above the amount accrued but we cannot estimate a range of such reasonably possible losses or legal fees related to these claims at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued.

Intellectual Property

The Company uses its business judgment to decide to market and sell certain products, in each case based on its belief that the applicable patents are invalid and/or that its products do not infringe, notwithstanding the fact that allegations of patent infringement(s) or other potential third party rights have not been finally resolved by the courts. The risk involved in doing so can be substantial because the remedies available to the owner of a patent for infringement may include, a reasonable royalty on sales or damages measured by the profits lost by the patent owner. If there is a finding of willful infringement, damages may be increased up to three times. Moreover, because of the discount pricing typically involved with bioequivalent products, patented branded products generally realize a substantially higher profit margin than generic and biosimilar products. Mylan intends to defend against any such patent infringement claims vigorously. However, an adverse decision could have an adverse effect that is material to our business, financial condition, results of operations, cash flows and/or ordinary share price.

Other Litigation

The Company is involved in various other legal proceedings that are considered normal to its business. The Company has approximately $7.1 million accrued related to these various other legal proceedings at March 31, 2020.

XML

Revenue Recognition and Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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, 2020 and 2019, respectively:

(In millions)	North America		Europe		Rest of World		Total
Three Months Ended March 31, 2020
Central Nervous System & Anesthesia	$	141.2	$	225.7	$	60.4	$	427.3
Infectious Disease	45.1		72.3		229.7		347.1
Respiratory & Allergy	280.6		133.4		49.7		463.7
Cardiovascular	66.1		128.9		33.2		228.2
Gastroenterology	37.4		151.2		59.0		247.6
Diabetes & Metabolism	65.1		77.1		27.5		169.7
Dermatology	30.2		77.3		19.7		127.2
Women’s Healthcare	84.4		61.3		17.7		163.4
Oncology	129.1		18.6		24.6		172.3
Immunology	9.1		25.6		8.2		42.9
Other (1)	67.2		50.5		81.1		198.8
Total	$	955.5	$	1,021.9	$	610.8	$	2,588.2

(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

____________

⁽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, 2020 and 2019, respectively:

	Three Months Ended
	March 31,
(In millions)	2020			2019
Gross sales	$	4,424.0		$	4,158.5
Gross to net adjustments:
Chargebacks	(854.4		)	(703.7		)
Rebates, promotional programs and other sales allowances	(845.6		)	(856.2		)
Returns	(59.0		)	(45.8		)
Governmental rebate programs	(76.8		)	(92.2		)
Total gross to net adjustments	$	(1,835.8	)	$	(1,697.9	)
Net sales	$	2,588.2		$	2,460.6

Schedule of Accounts Receivable, Net

Accounts receivable, net was comprised of the following at March 31, 2020 and December 31, 2019, respectively:

(In millions)	March 31, 2020		December 31, 2019
Trade receivables, net	$	2,429.2	$	2,640.1
Other receivables	345.4		418.7
Accounts receivable, net	$	2,774.6	$	3,058.8

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Share-Based Incentive Plan (Stock Awards) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 35.45	$ 36.97
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	699,491
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 17.61
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	(27,615)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 21.13
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	(240,740)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 25.19
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	6,572,572
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 35.72
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	5,145,065
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 38.65
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	6,778,845	6,347,709

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Revenue Recognition and Accounts Receivable (Accounts Receivable, Net) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Proceeds from Sale and Collection of Receivables	$ 125.7	$ 90.1
Trade receivables, net	2,429.2	2,640.1
Other receivables	345.4	418.7
Accounts receivable, net	$ 2,774.6	$ 3,058.8

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Restructuring (Tables)

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring - employee related

The following table summarizes the restructuring charges and the reserve activity from December 31, 2019 to March 31, 2020:

(In millions)	Employee Related Costs			Other Exit Costs			Total
Balance at December 31, 2019:	$	26.4		$	2.8		$	29.2
Charges (1)	2.9			4.7			7.6
Cash payment	(6.0		)	(0.9		)	(6.9		)
Utilization	—			(3.7		)	(3.7		)
Foreign currency translation	(0.4		)	(0.1		)	(0.5		)
Balance at March 31, 2020:	$	22.9		$	2.8		$	25.7

____________

⁽¹⁾

For the three months ended March 31, 2020, total restructuring charges in North America, Europe, Rest of World, and corporate were approximately $4.4 million, $2.4 million, $0.3 million, and $0.5 million, respectively.

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Condensed Consolidated Balance Sheets (Parenthetical) - € / shares	Mar. 31, 2020	Dec. 31, 2019
Ordinary shares, nominal value	€ 0.01	€ 0.01
Ordinary shares, shares authorized	1,200,000,000	1,200,000,000
Treasury Stock [Member]
Treasury stock, shares	24,598,074	24,598,074

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Condensed Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net sales	$ 2,588.2	$ 2,460.6
Total revenues	2,619.2	2,495.5
Cost of sales	1,713.1	1,690.3
Gross profit	906.1	805.2
Operating expenses:
Research and development	114.2	172.6
Selling, general and administrative	605.4	607.9
Litigation settlements and other contingencies, net	1.8	0.7
Total operating expenses	721.4	781.2
Earnings from operations	184.7	24.0
Interest expense	119.9	131.2
Other expense, net	34.1	7.3
Earnings before income taxes	30.7	(114.5)
Income tax (benefit) provision	9.9	(89.5)
Net earnings (loss)	$ 20.8	$ (25.0)
Earnings (Loss) per ordinary share:
Basic (in USD per share)	$ 0.04	$ (0.05)
Diluted (in USD per share)	$ 0.04	$ (0.05)
Weighted average ordinary shares outstanding:
Basic	516.4	515.0
Diluted	517.0	515.0
Other Revenues
Total revenues	$ 31.0	$ 34.9

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Litigation (MDRP Classification of EpiPen Auto-Injector and EpiPen Jr Auto-Injector) (Details) $ in Millions	Mar. 31, 2020 USD ($)
Prepaid expenses and other current assets
Loss Contingencies [Line Items]
Estimated litigation liability	$ 10
EpiPen Auto Injector Civil Litigation [Member]
Loss Contingencies [Line Items]
Number of states	17

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Earnings (Loss) per Ordinary Share (Basic and Diluted Earnings Per Ordinary Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net earnings (loss)	$ 20.8	$ (25.0)
Net earnings (loss)	$ 20.8	$ (25.0)
Weighted average ordinary shares outstanding	516.4	515.0
Weighted average number diluted shares outstanding adjustment, stock-based awards and warrants	0.6	0.0
Total dilutive shares outstanding	517.0	515.0
Basic earnings (loss) per ordinary share	$ 0.04	$ (0.05)
Diluted earnings (loss) per ordinary share	$ 0.04	$ (0.05)

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Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible asset amortization expense	$ 351.2	$ 405.5
IPR&D intangible asset impairment charges	0.0	29.5
Total intangible asset amortization expense (including impairment charges)	$ 351.2	$ 435.0

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Litigation (Product Liability) (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Product Liability
Loss Contingencies [Line Items]
Loss Contingency Accrual	$ 11.8	$ 14.5

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Pensions and Other Postretirement Benefits (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Pension and other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 5.3	$ 5.3
Interest cost	2.9	3.8
Expected return on plan assets	(3.4)	(3.0)
Amortization of prior service costs	0.0	0.3
Recognized net actuarial losses (gains)	0.2	(0.2)
Net periodic benefit cost	5.0	6.2
Defined Benefit Plan Items | Reclassification out of Accumulated Other Comprehensive Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Amortization of prior service costs		$ (0.3)
Defined Benefit Plan Items | Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Amortization of prior service costs	$ 0.0

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Balance Sheet Components (Property, Plant and Equipment) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 4,065.8	$ 4,122.9
Accumulated depreciation	1,998.8	1,973.3
Property, plant and equipment, net	2,067.0	2,149.6
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,513.8	2,523.7
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,193.2	1,197.3
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	236.8	277.3
Land and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 122.0	$ 124.6

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Balance Sheet Components (Other Long-term Obligations) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Schedule of Other Noncurrent Liabilities [Line Items]
Employee benefit liabilities	$ 405.6	$ 408.9
Contingent consideration	236.2	250.7
Tax related items, including contingencies	100.5	109.6
Operating Lease, Liability, Noncurrent	164.1	175.7
Other	81.9	79.1
Other long-term obligations	919.0	960.8
Clean energy investments
Schedule of Other Noncurrent Liabilities [Line Items]
Other long-term obligations	48.0	57.2
Other long-term obligations
Schedule of Other Noncurrent Liabilities [Line Items]
Contingent consideration	$ 118.9	$ 130.3

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Segment Information (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($) country
Segment Reporting Information [Line Items]
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | $	$ 6.6
Europe Segment
Segment Reporting Information [Line Items]
Number of Countries in which Entity Operates	35
Rest of World Segment
Segment Reporting Information [Line Items]
Number of Countries in which Entity Operates	120

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Financial Instruments and Risk Management (Effect Of Derivative Instruments on the Condensed Consolidated Statements of Operations, Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Earnings on Derivatives	$ 29.4	$ (5.8)
Foreign currency forward contracts | Other expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Earnings on Derivatives	$ 29.4	$ (5.8)

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Financial Instruments and Risk Management (Effect Of Derivative Instruments on the Condensed Consolidated Statements of Operations Derivatives in Fair Value Hedging Relationships) (Details) - Fair Value Hedging Relationships - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Earnings on Derivatives	$ 22.1	$ 7.5
Amount of Gain (Loss) Recognized in Earnings on Hedged Items	(22.1)	(7.5)
Interest expense | Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Earnings on Derivatives	22.1	7.5
Interest expense | 2023 Senior Notes (3.125% coupon)
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Earnings on Hedged Items	$ (22.1)	$ (7.5)

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Debt (Fair Value) (Narrative) (Details) - USD ($) $ in Billions	Mar. 31, 2020	Dec. 31, 2019
Senior Notes
Debt Instrument [Line Items]
Fair value of long-term debt	$ 12.7	$ 13.4

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Pensions and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2020

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits Disclosure

Pensions and Other Postretirement Benefits

Defined Benefit Plans

The Company sponsors various defined benefit pension plans in several countries. Benefits provided generally depend on length of service, pay grade and remuneration levels. The Company maintains two fully frozen defined benefit pension plans in the U.S., and employees in the U.S. and Puerto Rico are generally provided retirement benefits through defined contribution plans.

The Company also sponsors other postretirement benefit plans including plans that provide for postretirement supplemental medical coverage. Benefits from these plans are provided to employees and their spouses and dependents who meet various minimum age and service requirements. In addition, the Company sponsors other plans that provide for life insurance benefits and postretirement medical coverage for certain officers and management employees.

Net Periodic Benefit Cost

Components of net periodic benefit cost for the three months ended March 31, 2020 and 2019 were as follows:

	Pension and Other Postretirement Benefits
	Three Months Ended
	March 31,
(In millions)	2020			2019
Service cost	$	5.3		$	5.3
Interest cost	2.9			3.8
Expected return on plan assets	(3.4		)	(3.0		)
Amortization of prior service costs	—			0.3
Recognized net actuarial losses (gains)	0.2			(0.2		)
Net periodic benefit cost	$	5.0		$	6.2

The Company is making the minimum mandatory contributions to its U.S. defined benefit pension plans in the 2020 plan year. The Company expects to make total benefit payments of approximately $35.2 million from pension and other postretirement benefit plans in 2020. The Company anticipates making contributions to pension and other postretirement benefit plans of approximately $35.1 million in 2020.

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the three months ended March 31, 2020 are as follows:

(In millions)	North America Segment			Europe Segment			Rest of World Segment			Total
Balance at December 31, 2019:
Goodwill	$	3,708.4		$	4,548.6		$	1,718.6		$	9,975.6
Accumulated impairment losses	(385.0		)	—			—			(385.0		)
	3,323.4			4,548.6			1,718.6			9,590.6
Foreign currency translation	(76.6		)	(117.5		)	(69.8		)	(263.9		)
	$	3,246.8		$	4,431.1		$	1,648.8		$	9,326.7
Balance at March 31, 2020:
Goodwill	$	3,631.8		$	4,431.1		$	1,648.8		$	9,711.7
Accumulated impairment losses	(385.0		)	—			—			(385.0		)
	$	3,246.8		$	4,431.1		$	1,648.8		$	9,326.7

Intangible assets consist of the following components at March 31, 2020 and December 31, 2019:

(In millions)	Weighted Average Life (Years)	Original Cost		Accumulated Amortization		Net Book Value
March 31, 2020
Product rights, licenses and other (1)	15	$	19,653.5	$	8,721.5	$	10,932.0
In-process research and development		114.9		—		114.9
		$	19,768.4	$	8,721.5	$	11,046.9
December 31, 2019
Product rights, licenses and other (1)	15	$	20,109.1	$	8,579.5	$	11,529.6
In-process research and development		120.3		—		120.3
		$	20,229.4	$	8,579.5	$	11,649.9

____________

⁽¹⁾  Represents amortizable intangible assets. Other intangible assets consists principally of customer lists and contractual rights.

During the three months ended March 31, 2019, the Company recognized impairment charges of $29.5 million which have been recorded as a component of amortization expense, for the impairment of certain in-process research and development (“IPR&D”) assets. The impairment charge recorded during the first quarter of 2019 related to certain assets acquired as part of the acquisition of the non-sterile, topicals-focused business of Renaissance Acquisition Holdings, LLC. No impairment charges were recognized during the three months ended March 31, 2020. The impairment testing involved calculating the fair value of the assets based upon detailed valuations employing the income approach which utilized Level 3 inputs, as defined in Note 11 Financial Instruments and Risk Management. These valuations reflect, among other things, the impact of changes to the development programs, the projected development and regulatory time frames and the current competitive environment. Changes in any of the Company’s assumptions may result in a further reduction to the estimated fair values of these assets and could result in additional future impairment charges.

The Company reviews goodwill for impairment annually on April 1st or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. As a result of the decline in the Company’s share price during the first quarter of 2020, and the general uncertainty and volatility in the economic environments in which the Company operates, including the impacts of the COVID-19 pandemic, the Company performed an interim goodwill impairment test as of March 31, 2020. 

The Company has performed its interim goodwill impairment test on a quantitative basis for its four reporting units, North America Generics, North America Brands, Europe and Rest of World. In estimating each reporting unit’s fair value, the Company performed an extensive valuation analysis, utilizing both income and market-based approaches, except for the North America Brands reporting unit where the fair value was estimated utilizing the income approach. The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions that affect the reporting unit’s expected future cash flows. These estimates and assumptions, utilizing Level 3 inputs, primarily include, but are not limited to, market multiples, control premiums, the discount rate, terminal growth rates, operating income before depreciation and amortization, and capital expenditures forecasts.

As of March 31, 2020, the allocation of the Company’s total goodwill was as follows: North America Generics $2.60 billion, North America Brands $0.65 billion, Europe $4.43 billion and Rest of World $1.65 billion.

As of March 31, 2020, the Company determined that the fair value of the North America Generics, North America Brands and Rest of World reporting units was substantially in excess of the respective unit’s carrying value. However, when compared to the April 1, 2019 test, the fair value of our overall business declined because of future forecasts and the decline in our share price.

For the Europe reporting unit, the estimated fair value exceeded its carrying value by approximately $1.3 billion or 11.0%. The excess fair value for the Europe reporting unit is consistent with the result of the Company’s 2019 annual impairment test. As it relates to the income approach for the Europe reporting unit at March 31, 2020, the Company forecasted cash flows for the next 5 years. During the forecast period, the revenue compound annual growth rate was approximately 7.5%. A terminal year value was calculated with a 2.0% revenue growth rate applied. The discount rate utilized was 11.0% and the estimated tax rate was 25.5%. Under the market-based approach, we utilized an estimated range of market multiples of 8.0 to 9.5 times EBITDA plus a control premium of 15.0%. If all other assumptions are held constant, a reduction in the terminal value growth rate by 3.5% or an increase in discount rate by 3.5% would result in an impairment charge for the Europe reporting unit.

Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions, especially as it relates to the key assumptions detailed, could have a significant impact on the fair value of the reporting units.

Amortization expense, which is classified primarily within cost of sales in the condensed consolidated statements of operations for the three months ended March 31, 2020 and 2019 totaled:

	Three Months Ended
	March 31,
(In millions)	2020		2019
Intangible asset amortization expense	$	351.2	$	405.5
IPR&D intangible asset impairment charges	—		29.5
Total intangible asset amortization expense (including impairment charges)	$	351.2	$	435.0

Intangible asset amortization expense over the remainder of 2020 and for the years ended December 31, 2021 through 2024 is estimated to be as follows (excludes the potential impact of the Combination):

(In millions)
2020	$	1,056
2021	1,331
2022	1,264
2023	1,103
2024	995

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Comprehensive Earnings (Tables)

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, as reflected on the condensed consolidated balance sheets, is comprised of the following:

(In millions)	March 31, 2020			December 31, 2019
Accumulated other comprehensive loss:
Net unrealized gain on marketable securities, net of tax	$	0.8		$	0.6
Net unrecognized loss and prior service cost related to defined benefit plans, net of tax	(19.0		)	(17.4		)
Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax	(70.1		)	(31.6		)
Net unrecognized loss on derivatives in net investment hedging relationships, net of tax	(34.1		)	(74.3		)
Foreign currency translation adjustment	(2,331.1		)	(1,674.5		)
	$	(2,453.5	)	$	(1,797.2	)

Components of Other Comprehensive Loss

Components of accumulated other comprehensive loss, before tax, consist of the following, for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31, 2020
	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, 2019, net of tax				$	(31.6	)	$	(74.3	)	$	0.6	$	(17.4	)	$	(1,674.5	)	$	(1,797.2	)
Other comprehensive (loss) earnings before reclassifications, before tax				(52.4		)	42.3			0.2		(1.8		)	(656.6		)	(668.3		)
Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax:
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales	(0.1	)		(0.1		)												(0.1		)
Loss on interest rate swaps classified as cash flow hedges, included in interest expense			1.1	1.1														1.1
Amortization of prior service costs included in SG&A												—						—
Amortization of actuarial gain included in SG&A												0.2						0.2
Net other comprehensive (loss) earnings, before tax				(51.4		)	42.3			0.2		(1.6		)	(656.6		)	(667.1		)
Income tax (benefit) provision				(12.9		)	2.1			—		—			—			(10.8		)
Balance at March 31, 2020, net of tax				$	(70.1	)	$	(34.1	)	$	0.8	$	(19.0	)	$	(2,331.1	)	$	(2,453.5	)

	Three Months Ended March 31, 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				24.5			58.1			0.4		0.1			(338.5		)	(255.4		)
Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax:
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales	(0.3	)		(0.3		)												(0.3		)
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 SG&A												0.3						0.3
Amortization of actuarial loss included in SG&A												(0.2		)				(0.2		)
Net other comprehensive earnings (loss), before tax				26.0			58.1			0.4		0.2			(338.5		)	(253.8		)
Income tax provision (benefit)				8.8			2.9			—		0.1			—			11.8
Cumulative effect of the adoption of new accounting standards				(3.4		)	—			—		(0.2		)	—			(3.6		)
Balance at March 31, 2019, net of tax				$	(39.3	)	$	(75.7	)	$	0.4	$	1.6		$	(1,597.5	)	$	(1,710.5	)

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Earnings (Loss) per Ordinary Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Basic and Diluted Earnings per Ordinary Share Attributable to Mylan N.V.

Basic and diluted earnings (loss) per ordinary share are calculated as follows:

	Three Months Ended
	March 31,
(In millions, except per share amounts)	2020		2019
Basic earnings (loss) (numerator):
Net earnings (loss)	$	20.8	$	(25.0	)
Shares (denominator):
Weighted average ordinary shares outstanding	516.4		515.0
Basic earnings (loss) per ordinary share	$	0.04	$	(0.05	)
Diluted earnings (loss) (numerator):
Net earnings (loss)	$	20.8	$	(25.0	)
Shares (denominator):
Weighted average ordinary shares outstanding	516.4		515.0
Share-based awards	0.6		—
Total dilutive shares outstanding	517.0		515.0
Net earnings (loss) per diluted ordinary share	$	0.04	$	(0.05	)

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Share-Based Incentive Plan (Tables)

3 Months Ended

Mar. 31, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Awards Activity

The following table summarizes stock option and SAR (together, “stock awards”) activity:

	Number of Shares Under Stock Awards		Weighted Average Exercise Price per Share
Outstanding at December 31, 2019	6,347,709		$	36.97
Granted	699,491		17.61
Exercised	(27,615	)	21.13
Forfeited	(240,740	)	25.19
Outstanding at March 31, 2020	6,778,845		$	35.45
Vested and expected to vest at March 31, 2020	6,572,572		$	35.72
Exercisable at March 31, 2020	5,145,065		$	38.65

Nonvested Restricted Stock and Restricted Stock Unit Awards Activity

A summary of the status of the Company’s nonvested and restricted stock unit awards, including PSUs (collectively, “restricted stock awards”), as of March 31, 2020 and the changes during the three months ended March 31, 2020 are presented below:

	Number of Restricted Stock Awards		Weighted Average Grant-Date Fair Value per Share
Nonvested at December 31, 2019	4,105,689		$	34.42
Granted	2,944,296		17.48
Released	(1,100,256	)	36.56
Forfeited	(238,662	)	44.14
Nonvested at March 31, 2020	5,711,067		$	24.87

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Collaboration and Licensing Agreements

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Collaboration and Licensing Agreements

Collaboration and Licensing Agreements

We periodically enter into collaboration and licensing agreements with other pharmaceutical companies for the development, manufacture, marketing and/or sale of pharmaceutical products. Our significant collaboration agreements are primarily focused on the development, manufacturing, supply and commercialization of multiple, high-value generic biologic compounds, insulin analog products and respiratory products, among other complex products. Under these agreements, we have future potential milestone payments and co-development expenses payable to third parties as part of our licensing, development and co-development programs. Payments under these agreements generally become due and are payable upon the satisfaction or achievement of certain developmental, regulatory or commercial milestones or as development expenses are incurred on defined projects. Milestone payment obligations are uncertain, including the prediction of timing and the occurrence of events triggering a future obligation and are not reflected as liabilities in the condensed consolidated balance sheets, except for obligations reflected as acquisition related contingent consideration. Refer to Note 11 Financial Instruments and Risk Management for further discussion of contingent consideration. Our potential maximum development milestones not accrued for at March 31, 2020 totaled approximately $404 million. We estimate that the amounts that may be paid through the end of 2020 to be approximately $94 million. These agreements may also include potential sales-based milestones and call for us to pay a percentage of amounts earned from the sale of the product as a royalty or a profit share. The amounts disclosed do not include sales-based milestones or royalty or profit share obligations on future sales of product as the timing and amount of future sales levels and costs to produce products subject to these obligations is not reasonably estimable. These sales-based milestones or royalty or profit share obligations may be significant depending upon the level of commercial sales for each product.

On February 28, 2018, the Company and Revance Therapeutics, Inc. (“Revance”) entered into a collaboration agreement (the “Revance Collaboration Agreement”) pursuant to which the Company and Revance will collaborate exclusively, on a world-wide basis (excluding Japan), to develop, manufacture and commercialize a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX®.

On August 22, 2019, the Company and Revance entered into an amendment (the “Amendment”) to the Revance Collaboration Agreement, pursuant to which Revance has agreed to extend the period of time for the Company to decide whether to continue the development and commercialization of a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX® beyond the initial development plan to prepare for and conduct the Biosimilar Initial Advisory Meeting (BIAM) with the U.S. Food and Drug Administration. In accordance with the Amendment, the Company is required to notify Revance of its decision on or before the later of (i) April 30, 2020 or (ii) thirty calendar days from the date that Revance provides Mylan with certain deliverables. The Company is continuing discussions with Revance on whether to move forward with the program and expects to provide its decision by May 31, 2020.

There have been no other significant changes to our collaboration and licensing agreements as disclosed in our 2019 Form 10-K.

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Financial Instruments and Risk Management (Policies)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Financial Instruments Policy

Fair value is based on the price that would be received from the sale of an identical asset or paid to transfer an identical liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy has been established that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

• 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.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considers counterparty credit risk in its assessment of fair value.

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 572.4	$ 475.6
Accounts receivable, net	2,774.6	3,058.8
Inventories	2,639.6	2,670.9
Prepaid expenses and other current assets	613.9	552.0
Total current assets	6,600.5	6,757.3
Property, plant and equipment, net	2,067.0	2,149.6
Intangible assets, net	11,046.9	11,649.9
Goodwill	9,326.7	9,590.6
Deferred income tax benefit	701.3	703.1
Other assets	403.5	405.0
Total assets	30,145.9	31,255.5
Current liabilities:
Accounts payable	1,273.5	1,528.1
Income taxes payable	254.3	213.0
Current portion of long-term debt and other long-term obligations	1,487.7	1,508.1
Other current liabilities	2,212.7	2,319.9
Total current liabilities	5,228.2	5,569.1
Long-term debt	11,197.8	11,214.3
Deferred income tax liability	1,538.2	1,627.5
Other long-term obligations	919.0	960.8
Total liabilities	18,883.2	19,371.7
Mylan N.V. shareholders’ equity
Ordinary shares — nominal value €0.01 per ordinary share	6.1	6.1
Additional paid-in capital	8,657.9	8,643.5
Retained earnings	6,051.9	6,031.1
Accumulated other comprehensive loss	(2,453.5)	(1,797.2)
Total Mylan N.V. equity, before treasury stock	12,262.4	12,883.5
Less: Treasury stock — at cost	999.7	999.7
Total equity	11,262.7	11,883.8
Total liabilities and equity	$ 30,145.9	$ 31,255.5

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Litigation (Other Litigation) (Narrative) (Details) $ in Millions	Oct. 13, 2016	Mar. 31, 2020 USD ($)
Loss Contingencies [Line Items]
Number of cases		1,000
Other Litigation
Loss Contingencies [Line Items]
Loss Contingency Accrual		$ 7.1
EpiPen Israeli Securities Litigation [Member]
Loss Contingencies [Line Items]
Number of defendants	4

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Financial Instruments and Risk Management (Narrative) (Details) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020 EUR (€)	Mar. 31, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 EUR (€)
Derivative [Line Items]
Proceeds from sale of terminated interest rate swaps | $		$ 45.0
Long-term Debt, Gross | $			$ 12,661.0
Pre-tax net losses on cash flow hedges to be reclassified from AOCE into earnings in next twelve months | $		47.0
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | $		(6.6)
Business Combination Contingent Consideration Liability Payments | $		(24.3)
Prepaid expenses and other current assets
Derivative [Line Items]
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | $		(4.2)
Business Combination Contingent Consideration Liability Payments | $		$ (24.3)
Senior Notes | 2020 Euro Senior Notes
Derivative [Line Items]
Stated percentage rate	1.25%		1.25%
Senior Notes | 2024 Euro Senior Notes
Derivative [Line Items]
Stated percentage rate	2.25%		2.25%
Senior Notes | 2026 Senior Notes (3.950% coupon)
Derivative [Line Items]
Stated percentage rate	3.95%		3.95%
Senior Notes | 2028 Euro Senior Notes
Derivative [Line Items]
Stated percentage rate	3.125%		3.125%
Senior Notes | 2025 Euro Senior Notes [Member]
Derivative [Line Items]
Stated percentage rate	2.125%		2.125%
Net Investment Hedging
Derivative [Line Items]
Notional amount of derivative	€ 2,354.0			€ 2,354.0
Amount of Ineffectiveness on Net Investment Hedges	0.0
Long-term debt	3,500.0
Net Investment Hedging | 2020 Euro Senior Notes
Derivative [Line Items]
Notional amount of derivative	104.0			104.0
Long-term debt	750.0
Net Investment Hedging | 2024 Euro Senior Notes
Derivative [Line Items]
Notional amount of derivative	1,000.0			1,000.0
Long-term debt	1,000.0
Net Investment Hedging | 2028 Euro Senior Notes
Derivative [Line Items]
Notional amount of derivative	750.0			750.0
Long-term debt	750.0
Net Investment Hedging | 2020 Floating Rate Euro Notes [Domain]
Derivative [Line Items]
Notional amount of derivative	0.0			0.0
Long-term debt	500.0
Net Investment Hedging | 2025 Euro Senior Notes [Member]
Derivative [Line Items]
Notional amount of derivative	500.0			€ 500.0
Long-term debt	€ 500.0
Measurement Input, Discount Rate | Contingent consideration | Minimum
Derivative [Line Items]
Business Combination, Contingent Consideration, Liability, Measurement Input	0.035		0.035
Measurement Input, Discount Rate | Contingent consideration | Maximum
Derivative [Line Items]
Business Combination, Contingent Consideration, Liability, Measurement Input	0.110		0.110

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Litigation (Pricing and Medicaid Litigation) (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Other current liabilities	$ 2,212.7	$ 2,319.9

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Equity Method Investments (Income Statement) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]
Total revenues	$ 87.5	$ 86.9
Gross loss	(1.1)	(1.0)
Operating and non-operating expense	4.7	4.9
Net loss	$ (5.8)	$ (5.9)

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General

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

General

The accompanying unaudited condensed consolidated financial statements (“interim financial statements”) of Mylan N.V. and subsidiaries (“Mylan” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q; therefore, as permitted under these rules, certain footnotes and other financial information included in audited financial statements were condensed or omitted. The interim financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the interim results of operations, comprehensive earnings, financial position, equity and cash flows for the periods presented.

The global spread of the coronavirus disease 2019 (“COVID-19”) has created significant volatility, uncertainty and economic disruption affecting the markets we serve in North America, Europe and Rest of World, including Asia. Certain significant impacts of COVID-19 on our business are discussed in these notes to the condensed consolidated financial statements.

These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto in Mylan N.V.’s Annual Report on Form 10-K for the year ended December 31, 2019, as amended (the “2019 Form 10-K”). The December 31, 2019 condensed consolidated balance sheet was derived from audited financial statements.

The interim results of operations, comprehensive earnings and cash flows for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full fiscal year or any other future period.

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Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2020
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	$ 9,975.6
Accumulated impairment losses, beginning balance	(385.0)
Foreign currency translation	(263.9)
Goodwill, net, beginning balance	9,590.6
Accumulated impairment losses, ending balance	(385.0)
Goodwill, gross, ending balance	9,711.7
Goodwill, net, ending balance	$ 9,590.6	$ 9,326.7
Goodwill, Impaired, Change in Estimate, Period	5 years
Fair Value Inputs, Long-term Revenue Growth Rate, Terminal Year	2.00%
North America Segment
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	$ 3,708.4
Accumulated impairment losses, beginning balance	(385.0)
Foreign currency translation	(76.6)
Goodwill, net, beginning balance	3,323.4
Accumulated impairment losses, ending balance	(385.0)
Goodwill, gross, ending balance	3,631.8
Goodwill, net, ending balance	3,323.4	3,246.8
Europe Segment
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	4,548.6
Accumulated impairment losses, beginning balance	0.0
Foreign currency translation	(117.5)
Goodwill, net, beginning balance	4,548.6
Accumulated impairment losses, ending balance	0.0
Goodwill, gross, ending balance	4,431.1
Goodwill, net, ending balance	4,548.6	$ 4,431.1
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount		11.00%
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount		$ 1,300.0
Rest of World Segment
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	1,718.6
Accumulated impairment losses, beginning balance	0.0
Foreign currency translation	(69.8)
Goodwill, net, beginning balance	1,718.6
Accumulated impairment losses, ending balance	0.0
Goodwill, gross, ending balance	1,648.8
Goodwill, net, ending balance	$ 1,718.6	$ 1,648.8
Measurement Input, Estimated Tax Rate
Goodwill [Roll Forward]
Goodwill Impairment Test, Measurement Input		0.255
Measurement Input, Control Premium
Goodwill [Roll Forward]
Goodwill Impairment Test, Measurement Input		0.150
Measurement Input, Long-term Revenue Growth Rate
Goodwill [Roll Forward]
Goodwill Impairment Test, Measurement Input		0.075
Goodwill | Measurement Input, Discount Rate
Goodwill [Roll Forward]
Goodwill Impairment Test, Measurement Input		0.110
Minimum | Measurement Input, EBITDA Multiple
Goodwill [Roll Forward]
Goodwill Impairment Test, Measurement Input		8.0
Maximum | Measurement Input, EBITDA Multiple
Goodwill [Roll Forward]
Goodwill Impairment Test, Measurement Input		9.5
Increased Discount Rate | Measurement Input, Discount Rate
Goodwill [Roll Forward]
Goodwill Impairment Test, Measurement Input, Increase		0.035
Reduction in Terminal Value Growth Rate | Measurement Input, Long-term Revenue Growth Rate
Goodwill [Roll Forward]
Goodwill Impairment Test, Measurement Input, Reduction		0.035

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Litigation (European Commission Proceedings) (Narrative) (Details) € in Millions, $ in Millions		1 Months Ended	3 Months Ended
	Jul. 09, 2014 EUR (€)	Jun. 19, 2013 EUR (€)	Dec. 31, 2014 USD ($)	Mar. 31, 2020 USD ($)
European Commission Proceedings - Perindorpril | Antitrust Proceedings | Mylan Laboratories Limited
Loss Contingencies [Line Items]
Damages to be paid	€ 17.2
European Commission Proceedings - Perindorpril | Antitrust Proceedings | Mylan
Loss Contingencies [Line Items]
Damages to be paid	€ 8.0		$ 21.7
European Union Commission Proceedings - Citalopram
Loss Contingencies [Line Items]
Damages awarded		€ 7.8
Loss Contingency Accrual | $				$ 7.4

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Acquisitions and Other Transactions (Narrative) (Details) $ in Billions	Jul. 29, 2019 USD ($)
Upjohn Inc.
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	43.00%
Upjohn Inc. | Pfizer, Inc.
Business Acquisition [Line Items]
Payments for Business Separation	$ 12
Product | Upjohn Inc.
Business Acquisition [Line Items]
Number Of Products	20
Upjohn Inc. | Pfizer, Inc.
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	57.00%

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Revenue Recognition and Accounts Receivable Revenue Disaggregation (Table) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Net sales	$ 2,588.2	$ 2,460.6
Central Nervous System and Anesthesia
Disaggregation of Revenue [Line Items]
Net sales	427.3	390.0
Infectious Disease
Disaggregation of Revenue [Line Items]
Net sales	347.1	292.5
Respiratory & Allergy
Disaggregation of Revenue [Line Items]
Net sales	463.7	390.1
Cardiovascular
Disaggregation of Revenue [Line Items]
Net sales	228.2	181.8
Gastroenterology
Disaggregation of Revenue [Line Items]
Net sales	247.6	239.5
Diabetes & Metabolism
Disaggregation of Revenue [Line Items]
Net sales	169.7	247.4
Dermatology
Disaggregation of Revenue [Line Items]
Net sales	127.2	95.9
Women's Healthcare
Disaggregation of Revenue [Line Items]
Net sales	163.4	138.6
Oncology
Disaggregation of Revenue [Line Items]
Net sales	172.3	171.4
Immunology
Disaggregation of Revenue [Line Items]
Net sales	42.9	23.7
Other Therapeutic Franchises
Disaggregation of Revenue [Line Items]
Net sales	198.8	289.7
North America Segment | Central Nervous System and Anesthesia
Disaggregation of Revenue [Line Items]
Net sales	141.2	135.7
North America Segment | Infectious Disease
Disaggregation of Revenue [Line Items]
Net sales	45.1	18.1
North America Segment | Respiratory & Allergy
Disaggregation of Revenue [Line Items]
Net sales	280.6	238.6
North America Segment | Cardiovascular
Disaggregation of Revenue [Line Items]
Net sales	66.1	46.9
North America Segment | Gastroenterology
Disaggregation of Revenue [Line Items]
Net sales	37.4	34.2
North America Segment | Diabetes & Metabolism
Disaggregation of Revenue [Line Items]
Net sales	65.1	151.0
North America Segment | Dermatology
Disaggregation of Revenue [Line Items]
Net sales	30.2	13.9
North America Segment | Women's Healthcare
Disaggregation of Revenue [Line Items]
Net sales	84.4	78.9
North America Segment | Oncology
Disaggregation of Revenue [Line Items]
Net sales	129.1	124.8
North America Segment | Immunology
Disaggregation of Revenue [Line Items]
Net sales	9.1	10.1
North America Segment | Other Therapeutic Franchises
Disaggregation of Revenue [Line Items]
Net sales	67.2	70.7
Europe Segment | Central Nervous System and Anesthesia
Disaggregation of Revenue [Line Items]
Net sales	225.7	190.3
Europe Segment | Infectious Disease
Disaggregation of Revenue [Line Items]
Net sales	72.3	58.8
Europe Segment | Respiratory & Allergy
Disaggregation of Revenue [Line Items]
Net sales	133.4	107.8
Europe Segment | Cardiovascular
Disaggregation of Revenue [Line Items]
Net sales	128.9	100.7
Europe Segment | Gastroenterology
Disaggregation of Revenue [Line Items]
Net sales	151.2	127.8
Europe Segment | Diabetes & Metabolism
Disaggregation of Revenue [Line Items]
Net sales	77.1	57.2
Europe Segment | Dermatology
Disaggregation of Revenue [Line Items]
Net sales	77.3	61.6
Europe Segment | Women's Healthcare
Disaggregation of Revenue [Line Items]
Net sales	61.3	44.6
Europe Segment | Oncology
Disaggregation of Revenue [Line Items]
Net sales	18.6	17.6
Europe Segment | Immunology
Disaggregation of Revenue [Line Items]
Net sales	25.6	7.2
Europe Segment | Other Therapeutic Franchises
Disaggregation of Revenue [Line Items]
Net sales	50.5	121.7
Rest of World Segment | Central Nervous System and Anesthesia
Disaggregation of Revenue [Line Items]
Net sales	60.4	64.0
Rest of World Segment | Infectious Disease
Disaggregation of Revenue [Line Items]
Net sales	229.7	215.6
Rest of World Segment | Respiratory & Allergy
Disaggregation of Revenue [Line Items]
Net sales	49.7	43.7
Rest of World Segment | Cardiovascular
Disaggregation of Revenue [Line Items]
Net sales	33.2	34.2
Rest of World Segment | Gastroenterology
Disaggregation of Revenue [Line Items]
Net sales	59.0	77.5
Rest of World Segment | Diabetes & Metabolism
Disaggregation of Revenue [Line Items]
Net sales	27.5	39.2
Rest of World Segment | Dermatology
Disaggregation of Revenue [Line Items]
Net sales	19.7	20.4
Rest of World Segment | Women's Healthcare
Disaggregation of Revenue [Line Items]
Net sales	17.7	15.1
Rest of World Segment | Oncology
Disaggregation of Revenue [Line Items]
Net sales	24.6	29.0
Rest of World Segment | Immunology
Disaggregation of Revenue [Line Items]
Net sales	8.2	6.4
Rest of World Segment | Other Therapeutic Franchises
Disaggregation of Revenue [Line Items]
Net sales	81.1	97.3
Operating Segment | North America Segment
Disaggregation of Revenue [Line Items]
Net sales	955.5	922.9
Operating Segment | Europe Segment
Disaggregation of Revenue [Line Items]
Net sales	1,021.9	895.3
Operating Segment | Rest of World Segment
Disaggregation of Revenue [Line Items]
Net sales	$ 610.8	$ 642.4

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Comprehensive Earnings (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision	$ 9.9	$ (89.5)
Net unrealized gain on marketable securities, net of tax	0.8		$ 0.6
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax	19.0		(17.4)
Foreign currency translation adjustment	(2,331.1)		(1,674.5)
Accumulated other comprehensive loss	(2,453.5)		(1,797.2)
Other comprehensive loss, before tax	(667.1)	(253.8)
Net unrealized gain on marketable securities	0.2	0.4
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax	1.6	(0.2)
Sales Revenue, Goods, Net	2,588.2	2,460.6
Interest expense	119.9	131.2
Cash Flow Hedging
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized gain (loss) on derivatives	(51.4)
Net Investment Hedging
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulate Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Net Investment Hedges, Effect Net of Taxx	(34.1)		(74.3)
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision		11.8
Accumulated other comprehensive loss		(1,710.5)		$ (1,441.3)
Other comprehensive earnings (loss) before reclassifications, before tax	(668.3)	(255.4)
Gains and Losses on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision		8.8
Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax		(39.3)		(53.1)
Other comprehensive earnings (loss) before reclassifications, before tax		24.5
Gains and Losses on Derivatives | Cash Flow Hedging
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision	(12.9)
Cumulative Effect of New Accounting Principle in Period of Adoption		(3.4)
Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax	(70.1)		$ (31.6)
Other comprehensive earnings (loss) before reclassifications, before tax	(52.4)
Gains and Losses on Derivatives | Net Investment Hedging
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision	2.1	2.9
Cumulative Effect of New Accounting Principle in Period of Adoption		0.0
Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax		(75.7)		(130.9)
Other comprehensive earnings (loss) before reclassifications, before tax		58.1
Gains and Losses on Marketable Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision		0.0
Net unrealized gain on marketable securities, net of tax		0.4		0.0
Other comprehensive earnings (loss) before reclassifications, before tax		0.4
Defined Benefit Plan Items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision		(0.1)
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax		1.6		1.7
Other comprehensive earnings (loss) before reclassifications, before tax	(1.8)	0.1
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision		0.0
Foreign currency translation adjustment		(1,597.5)		$ (1,259.0)
Other comprehensive earnings (loss) before reclassifications, before tax	(656.6)
Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision	(10.8)
Cumulative Effect of New Accounting Principle in Period of Adoption		(3.6)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax	0.0	(0.3)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax	(0.2)	0.2
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized gain (loss) on derivatives		26.0
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Marketable Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision	0.0
Cumulative Effect of New Accounting Principle in Period of Adoption		0.0
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision	0.0
Cumulative Effect of New Accounting Principle in Period of Adoption		(0.2)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax		(0.2)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax		0.3
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income tax (benefit) provision	0.0
Cumulative Effect of New Accounting Principle in Period of Adoption		0.0
Other comprehensive loss, before tax		(338.5)
Mylan N.V. | Net Investment Hedging
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized gain (loss) on derivatives	42.3	58.1
Foreign currency forward contracts | Gains and Losses on Derivatives | Cash Flow Hedging
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sales Revenue, Goods, Net	(0.1)
Foreign currency forward contracts | Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sales Revenue, Goods, Net	(0.1)	(0.3)
Foreign currency forward contracts | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sales Revenue, Goods, Net	(0.1)	(0.3)
Interest rate swaps | Gains and Losses on Derivatives | Cash Flow Hedging
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense	1.1
Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense	1.1	1.8
Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense	1.1	1.8
Pension and other postretirement benefits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax	0.0	(0.3)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement	(0.2)	$ 0.2
Pension and other postretirement benefits | Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax	$ 0.0

XML

Financial Instruments and Risk Management (Effect of Derivative Instruments on the Condensed Consolidated Statements of Comprehensive Earnings Derivatives in Net Investment Hedging Relationships (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Gains and Losses on Derivatives | Net Investment Hedging | Foreign currency borrowings and forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ 40.1	$ 55.2

XML

Financial Instruments and Risk Management (Effect of Derivative Instruments on the Condensed Consolidated Balance Sheets Fair Value of Derivative Instruments Derivatives Designated As Hedging Instruments) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Derivatives, Fair Value [Line Items]
Fair value of financial instruments	$ 55.9	$ 43.3
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Fair value of financial instruments	0.0	34.8
Fair value of financial instruments	39.2	0.0
Designated as Hedging Instrument | Prepaid expenses and other current assets | Interest rate swaps
Derivatives, Fair Value [Line Items]
Fair value of financial instruments	0.0	22.3
Designated as Hedging Instrument | Prepaid expenses and other current assets | Foreign exchange forward contracts
Derivatives, Fair Value [Line Items]
Fair value of financial instruments	0.0	12.5
Designated as Hedging Instrument | Prepaid expenses and other current assets | Foreign exchange forward contracts
Derivatives, Fair Value [Line Items]
Fair value of financial instruments	$ 39.2	$ 0.0

XML

Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Current portion of long-term debt	$ 1,433.9	$ 1,457.6
Unamortized debt issuance expense	(56.7)	(59.1)
Long-term debt	11,197.8	11,214.3
Proceeds from sale of terminated interest rate swaps	45.0
Other Current Portion of Long-term Debt
Debt Instrument [Line Items]
Current portion of long-term debt	6.3	8.3
2020 Floating Rate Euro Notes [Domain]
Debt Instrument [Line Items]
Current portion of long-term debt	551.6	560.6
2020 Euro Senior Notes
Debt Instrument [Line Items]
Current portion of long-term debt	826.9	840.1
2020 Senior Notes (3.750% coupon)
Debt Instrument [Line Items]
Current portion of long-term debt	50.0	50.0
Other
Debt Instrument [Line Items]
Long-term debt	$ 8.0	8.9
Senior Notes | 2018 Senior Notes (2.600% coupon)
Debt Instrument [Line Items]
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.30%
Senior Notes | 2018 Senior Notes (3.000% coupon)
Debt Instrument [Line Items]
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.30%
Senior Notes | 2019 Senior Notes (2.500% coupon)
Debt Instrument [Line Items]
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.25%
Senior Notes | 2019 Senior Notes (2.550% coupon)
Debt Instrument [Line Items]
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.20%
Senior Notes | 2020 Floating Rate Euro Notes [Domain]
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Senior Notes | 2020 Euro Senior Notes
Debt Instrument [Line Items]
Stated percentage rate	1.25%
Senior Notes | 2020 Senior Notes (3.750% coupon)
Debt Instrument [Line Items]
Stated percentage rate	3.75%
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.35%
Senior Notes | 2021 Senior Notes (3.150% coupon)
Debt Instrument [Line Items]
Stated percentage rate	3.15%
Long-term debt	$ 2,249.3	2,249.2
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.30%
Senior Notes | 2023 Senior Notes (3.125% coupon)
Debt Instrument [Line Items]
Stated percentage rate	3.125%
Long-term debt	$ 793.2	771.8
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.20%
Senior Notes | 2023 Senior Notes (4.200% coupon)
Debt Instrument [Line Items]
Stated percentage rate	4.20%
Long-term debt	$ 499.2	499.1
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.25%
Senior Notes | 2024 Euro Senior Notes
Debt Instrument [Line Items]
Stated percentage rate	2.25%
Long-term debt	$ 1,101.5	1,119.3
Senior Notes | 2025 Euro Senior Notes [Member]
Debt Instrument [Line Items]
Stated percentage rate	2.125%
Long-term debt	$ 550.6	559.6
Senior Notes | 2026 Senior Notes (3.950% coupon)
Debt Instrument [Line Items]
Stated percentage rate	3.95%
Long-term debt	$ 2,238.5	2,238.1
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.35%
Senior Notes | 2028 Euro Senior Notes
Debt Instrument [Line Items]
Stated percentage rate	3.125%
Long-term debt	$ 821.1	834.3
Senior Notes | SeniorNotesTwoThousandTwentyEight [Member]
Debt Instrument [Line Items]
Stated percentage rate	4.55%
Senior Notes | 2028 Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 748.4	748.4
Senior Notes | 2043 Senior Notes (5.400% coupon)
Debt Instrument [Line Items]
Stated percentage rate	5.40%
Long-term debt	$ 497.2	497.2
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.25%
Senior Notes | 2046 Senior Notes (5.250% coupon)
Debt Instrument [Line Items]
Stated percentage rate	5.25%
Long-term debt	$ 999.8	999.8
Equivalent percentage of redeemed amount	100.00%
Basis spread on variable rate	0.40%
Senior Notes | 2048 Senior Notes (5.200%)
Debt Instrument [Line Items]
Stated percentage rate	5.20%
Senior Notes | 2048 Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 747.7	747.7
Current Portion of Long-Term Debt
Debt Instrument [Line Items]
Unamortized debt issuance expense	$ (0.9)	$ (1.4)

XML

Financial Instruments and Risk Management Financial Instruments and Risk Management (Rollforward of Contingent Consideration) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accretion expense	$ 3.2
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings	6.6
Business Combination Contingent Consideration Liability Payments	(24.3)
Business Combination, Contingent Consideration Arrangements, Reclassifications	0.0
Contingent consideration	236.2	$ 250.7
Prepaid expenses and other current assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accretion expense	0.0
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings	4.2
Business Combination Contingent Consideration Liability Payments	(24.3)
Business Combination, Contingent Consideration Arrangements, Reclassifications	17.0
Contingent consideration	117.3	120.4
Other long-term obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accretion expense	3.2
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings	2.4
Business Combination Contingent Consideration Liability Payments	0.0
Business Combination, Contingent Consideration Arrangements, Reclassifications	(17.0)
Contingent consideration	$ 118.9	$ 130.3
Minimum | Measurement Input, Discount Rate | Contingent consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability, Measurement Input	0.035

XML

Restructuring (Restructuring Charges) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 29.2
Charges	7.6
Cash payment	(6.9)
Utilization	(3.7)
Foreign currency translation	(0.5)
Ending Balance	25.7
Restructuring Reserve, Current	19.7	$ 26.0
North America Segment
Restructuring Reserve [Roll Forward]
Charges	4.4
Europe Segment
Restructuring Reserve [Roll Forward]
Charges	2.4
Rest of World Segment
Restructuring Reserve [Roll Forward]
Charges	0.3
Corporate / Other
Restructuring Reserve [Roll Forward]
Charges	0.5
Employee Related Costs
Restructuring Reserve [Roll Forward]
Beginning Balance	26.4
Charges	2.9
Cash payment	(6.0)
Utilization	0.0
Foreign currency translation	(0.4)
Ending Balance	22.9
Other Exit Costs
Restructuring Reserve [Roll Forward]
Beginning Balance	2.8
Charges	4.7
Cash payment	(0.9)
Utilization	(3.7)
Foreign currency translation	(0.1)
Ending Balance	$ 2.8

XML

Balance Sheet Components (Inventories) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Raw materials	$ 859.3	$ 886.8
Work in process	395.6	417.2
Finished goods	1,384.7	1,366.9
Inventories	$ 2,639.6	$ 2,670.9

XML

Balance Sheet Components (Trade Accounts Payable) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Accounts Payable, Current [Abstract]
Trade accounts payable	$ 875.3	$ 1,061.9
Other payables	398.2	466.2
Accounts payable	$ 1,273.5	$ 1,528.1

XML

Financial Instruments and Risk Management (Tables)

3 Months Ended

Mar. 31, 2020

Derivatives, Fair Value [Line Items]

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2019 to March 31, 2020 is as follows:

(In millions)	Current Portion (1)			Long-Term Portion (2)			Total Contingent Consideration
Balance at December 31, 2019	$	120.4		$	130.3		$	250.7
Payments	(24.3		)	—			(24.3		)
Reclassifications	17.0			(17.0		)	—
Accretion	—			3.2			3.2
Fair value loss (3)	4.2			2.4			6.6
Balance at March 31, 2020	$	117.3		$	118.9		$	236.2

____________

⁽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.

Financial Assets and Liabilities Carried at Fair Value

Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above:

	March 31, 2020
(In millions)	Level 1		Level 2		Level 3		Total
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds	$	0.7	$	—	$	—	$	0.7
Total cash equivalents	0.7		—		—		0.7
Equity securities:
Exchange traded funds	31.9		—		—		31.9
Marketable securities	0.7		—		—		0.7
Total equity securities	32.6		—		—		32.6
Available-for-sale fixed income investments:
Corporate bonds	—		16.3		—		16.3
U.S. Treasuries	—		12.5		—		12.5
Agency mortgage-backed securities	—		2.1		—		2.1
Asset backed securities	—		5.4		—		5.4
Other	—		0.6		—		0.6
Total available-for-sale fixed income investments	—		36.9		—		36.9
Foreign exchange derivative assets	—		55.9		—		55.9
Interest rate swap derivative assets	—		—		—		—
Total assets at recurring fair value measurement	$	33.3	$	92.8	$	—	$	126.1
Financial Liabilities
Foreign exchange derivative liabilities	—		70.3		—		70.3
Contingent consideration	—		—		236.2		236.2
Total liabilities at recurring fair value measurement	$	—	$	70.3	$	236.2	$	306.5

	December 31, 2019
(In millions)	Level 1		Level 2		Level 3		Total
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds	$	0.7	$	—	$	—	$	0.7
Total cash equivalents	0.7		—		—		0.7
Equity securities:
Exchange traded funds	38.3		—		—		38.3
Marketable securities	0.7		—		—		0.7
Total equity securities	39.0		—		—		39.0
Available-for-sale fixed income investments:
Corporate bonds	—		10.8		—		10.8
U.S. Treasuries	—		9.5		—		9.5
Agency mortgage-backed securities	—		2.3		—		2.3
Asset backed securities	—		3.6		—		3.6
Other	—		0.6		—		0.6
Total available-for-sale fixed income investments	—		26.8		—		26.8
Foreign exchange derivative assets	—		21.0		—		21.0
Interest rate swap derivative assets	—		22.3		—		22.3
Total assets at recurring fair value measurement	$	39.7	$	70.1	$	—	$	109.8
Financial Liabilities
Foreign exchange derivative liabilities	$	—	$	12.9	$	—	$	12.9
Contingent consideration	—		—		250.7		250.7
Total liabilities at recurring fair value measurement	$	—	$	12.9	$	250.7	$	263.6

Fair Value Hedging Relationships

Derivatives, Fair Value [Line Items]

Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations

The Effect of Derivative Instruments in the Condensed Consolidated Statement of Operations

Derivatives in Fair Value Hedging Relationships

	Location of Gain (Loss) Recognized in Earnings on Derivatives	Amount of Gain (Loss) Recognized in Earnings on Derivatives
(In millions)		Three Months Ended
		March 31,
		2020		2019
Interest rate swaps	Interest expense	$	22.1	$	7.5
Total		$	22.1	$	7.5

	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
		March 31,
		2020			2019
2023 Senior Notes (3.125% coupon)	Interest expense	$	(22.1	)	$	(7.5	)
Total		$	(22.1	)	$	(7.5	)

Cash Flow Hedging

Derivatives, Fair Value [Line Items]

Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations

The Effect of Derivative Instruments in the Condensed Consolidated Statement of Operations

Derivatives in Cash Flow Hedging Relationships

	Location of Gain (Loss) Reclassified from AOCE into Earnings	Amount of Gain (Loss) Reclassified from AOCE into Earnings
		Three Months Ended
		March 31,
(In millions)		2020			2019
Foreign currency forward contracts	Net sales	$	0.1		$	0.3
Interest rate swaps	Interest expense	(1.1		)	(1.8		)
Total		$	(1.0	)	$	(1.5	)

The Effect of Derivative Instruments in the Condensed Consolidated Statements of Comprehensive Earnings

Derivatives in Cash Flow Hedging Relationships

	Amount of Gain (Loss) Recognized in AOCE (Net of Tax) on Derivative
	Three Months Ended
	March 31,
(In millions)	2020			2019
Foreign currency forward contracts	$	(42.8	)	$	15.5
Total	$	(42.8	)	$	15.5

Net Investment Hedging

Derivatives, Fair Value [Line Items]

Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations

The Effect of Derivative Instruments in the Condensed Consolidated Statements of Comprehensive Earnings

Derivatives in Net Investment Hedging Relationships

	Amount of Gain (Loss) Recognized in AOCE (Net of Tax) on Derivative
	Three Months Ended
	March 31,
(In millions)	2020		2019
Foreign currency borrowings and forward contracts	$	40.1	$	55.2
Total	$	40.1	$	55.2

Designated as Hedging Instrument

Derivatives, Fair Value [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The Effect of Derivative Instruments in the Condensed Consolidated Balance Sheets

Fair Values of Derivative Instruments

Derivatives Designated as Hedging Instruments

	Asset Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swaps	Prepaid expenses and other current assets	$	—	Prepaid expenses and other current assets	$	22.3
Foreign currency forward contracts	Prepaid expenses and other current assets	—		Prepaid expenses and other current assets	12.5
Total		$	—		$	34.8

	Liability Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign currency forward contracts	Other current liabilities	39.2		Other current liabilities	—
Total		$	39.2		$	—

Not Designated as Hedging Instruments

Derivatives, Fair Value [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The Effect of Derivative Instruments in the Condensed Consolidated Balance Sheets

Fair Values of Derivative Instruments

Derivatives Not Designated as Hedging Instruments

	Asset Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign currency forward contracts	Prepaid expenses and other current assets	$	55.9	Prepaid expenses and other current assets	$	8.5
Total		$	55.9		$	8.5

	Liability Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign currency forward contracts	Other current liabilities	$	31.1	Other current liabilities	$	12.9
Total		$	31.1		$	12.9

Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations

The Effect of Derivative Instruments in the Condensed Consolidated Statement of Operations

Derivatives Not Designated as Hedging Instruments

	Location of Gain (Loss) Recognized in Earnings on Derivatives	Amount of Gain (Loss) Recognized in Earnings on Derivatives
		Three Months Ended
		March 31,
(In millions)		2020		2019
Foreign currency option and forward contracts	Other expense, net	$	29.4	$	(5.8	)
Total		$	29.4	$	(5.8	)

XML

Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2020

Balance Sheet Components [Abstract]

Schedule of Cash, cash equivalents, and restricted cash [Table Text Block]

Cash and restricted cash

(In millions)	March 31, 2020		December 31, 2019
Cash and cash equivalents	$	572.4	$	475.6
Restricted cash, included in prepaid expenses and other current assets	15.5		15.5
Cash, cash equivalents and restricted cash	$	587.9	$	491.1

Inventories

Inventories

(In millions)	March 31, 2020		December 31, 2019
Raw materials	$	859.3	$	886.8
Work in process	395.6		417.2
Finished goods	1,384.7		1,366.9
Inventories	$	2,639.6	$	2,670.9

Prepaid Expenses and Other Current Assets

Prepaid and other current assets

(In millions)	March 31, 2020		December 31, 2019
Prepaid expenses	$	162.0	$	156.7
Restricted cash	15.5		15.5
Available-for-sale fixed income securities	36.9		26.8
Fair value of financial instruments	55.9		43.3
Equity securities	32.6		39.0
Other current assets	311.0		270.7
Prepaid expenses and other current assets	$	613.9	$	552.0

Property, Plant and Equipment

Property, plant and equipment, net

(In millions)	March 31, 2020		December 31, 2019
Machinery and equipment	$	2,513.8	$	2,523.7
Buildings and improvements	1,193.2		1,197.3
Construction in progress	236.8		277.3
Land and improvements	122.0		124.6
Gross property, plant and equipment	4,065.8		4,122.9
Accumulated depreciation	1,998.8		1,973.3
Property, plant and equipment, net	$	2,067.0	$	2,149.6

Other Assets

Other assets

(In millions)	March 31, 2020		December 31, 2019
Equity method investments, clean energy investments	$	81.1	$	92.2
Operating lease right-of-use assets	236.4		254.6
Other long-term assets	86.0		58.2
Other assets	$	403.5	$	405.0

Trade Accounts Payable

ccounts payable

(In millions)	March 31, 2020		December 31, 2019
Trade accounts payable	$	875.3	$	1,061.9
Other payables	398.2		466.2
Accounts payable	$	1,273.5	$	1,528.1

Other Current Liabilities

Other current liabilities

(In millions)	March 31, 2020		December 31, 2019
Accrued sales allowances	$	700.5	$	796.5
Legal and professional accruals, including litigation accruals	127.2		138.2
Payroll and employee benefit liabilities	394.3		467.1
Contingent consideration	117.3		120.4
Accrued interest	151.0		59.1
Restructuring	19.7		26.0
Equity method investments, clean energy investments	48.3		47.7
Fair value of financial instruments	70.3		12.9
Operating lease liability	70.5		76.7
Other	513.6		575.3
Other current liabilities	$	2,212.7	$	2,319.9

Other Noncurrent Liabilities

Other long-term obligations

(In millions)	March 31, 2020		December 31, 2019
Employee benefit liabilities	$	405.6	$	408.9
Contingent consideration	118.9		130.3
Equity method investments, clean energy investments	48.0		57.2
Tax related items, including contingencies	100.5		109.6
Operating lease liability	164.1		175.7
Other	81.9		79.1
Other long-term obligations	$	919.0	$	960.8

XML

Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

Debt

Short-Term Borrowings

The Company had no short-term borrowings as of March 31, 2020 and December 31, 2019. The following provides an overview of the Company’s short-term credit facilities.

Receivables Facility and Note Securitization Facility

The Company has a $400 million receivables facility which expires in April 2022 (the “Receivables Facility”). The Company also has a $200 million notes securitization facility which expires on August 31, 2020 (the “Note Securitization Facility”). Borrowings outstanding under the Receivables Facility bear interest at a commercial paper rate plus 0.775% and under the Note Securitization Facility at LIBOR plus 0.75% and are included as a component of short-term borrowings, while the accounts receivable securing these obligations remain as a component of accounts receivable, net, in our condensed consolidated balance sheets. Effective April 22, 2020, borrowings outstanding under the Note Securitization Facility bear interest at a rate per annum quoted from time to time by MUFG Bank, Ltd. plus 0.75%. In addition, the agreements governing the Receivables Facility and Note Securitization Facility contain various customary affirmative and negative covenants, and customary default and termination provisions with which the Company was compliant as of March 31, 2020. As of March 31, 2020, the Company had no amounts outstanding under the Receivables Facility or the Note Securitization Facility.

Commercial Paper Program

The Company maintains a $1.65 billion commercial paper program (the “Commercial Paper Program”) to support its working capital requirements and for general corporate purposes. There were no commercial paper notes (the “CP Notes”) outstanding under this program as of March 31, 2020 and December 31, 2019. Amounts available under the Commercial Paper

Program may be borrowed, repaid and re-borrowed from time to time, with the aggregate principal amount of the CP Notes outstanding under the Commercial Paper Program at any time not to exceed $1.65 billion. The Company’s Revolving Credit Facility (as defined below) will be available to pay the CP Notes, if necessary. The maturities of the CP Notes will vary but will not exceed 364 days from the date of issue.

Long-Term Debt

A summary of long-term debt is as follows:

(In millions)	Interest Rate as of March 31, 2020		March 31, 2020			December 31, 2019
Current portion of long-term debt:
2020 Floating Rate Euro Notes (a) **			551.6			560.6
2020 Euro Senior Notes **	1.250	%	826.9			840.1
2020 Senior Notes **	3.750	%	50.0			50.0
Other			6.3			8.3
Deferred financing fees			(0.9		)	(1.4		)
Current portion of long-term debt			$	1,433.9		$	1,457.6
Non-current portion of long-term debt:
2021 Senior Notes **	3.150	%	2,249.3			2,249.2
2023 Senior Notes (b) *	3.125	%	793.2			771.8
2023 Senior Notes *	4.200	%	499.2			499.1
2024 Euro Senior Notes **	2.250	%	1,101.5			1,119.3
2025 Euro Senior Notes *	2.125	%	550.6			559.6
2026 Senior Notes **	3.950	%	2,238.5			2,238.1
2028 Euro Senior Notes **	3.125	%	821.1			834.3
2028 Senior Notes *	4.550	%	748.4			748.4
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			747.7
Other			8.0			8.9
Deferred financing fees			(56.7		)	(59.1		)
Long-term debt			$	11,197.8		$	11,214.3

____________

^(a)  Instrument bears interest at a rate of three-month EURIBOR plus 0.50% per annum, reset quarterly.

^(b)  In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The fair value adjustment will be amortized to interest expense over the remaining term of the notes.

^* Instrument was issued by Mylan Inc.

^**   Instrument was issued by Mylan N.V.

For additional information, see Note 10 Debt in Mylan N.V.’s 2019 Form 10-K.

Revolving Credit Facility

The Company has a $2.0 billion revolving credit facility which is scheduled to expire in July 2023 (the “Revolving Credit Facility”). The Revolving Credit Facility contains a maximum consolidated leverage ratio financial covenant requiring maintenance of a maximum ratio of 3.75 to 1.00 for consolidated total indebtedness as of the end of any quarter to consolidated

EBITDA for the trailing four quarters as defined in the related credit agreements. The Company is in compliance at March 31, 2020 and expects to remain in compliance for the next twelve months.

Fair Value

At March 31, 2020 and December 31, 2019, the aggregate fair value of the Company’s outstanding notes was approximately $12.7 billion and $13.4 billion, respectively. The fair values of the outstanding notes were valued at quoted market prices from broker or dealer quotations and were classified as Level 2 in the fair value hierarchy.

Mandatory minimum repayments remaining on the notional amount of outstanding long-term debt at March 31, 2020 were as follows for each of the periods ending December 31:

(In millions)	Total
2020	$	1,429
2021	2,250
2022	—
2023	1,250
2024	1,103
Thereafter	6,629
Total	$	12,661

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Acquisitions and Other Transactions

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Acquisitions and Other Transactions

Acquisitions and Other Transactions

Upjohn Business Combination Agreement

On July 29, 2019, the Company, Pfizer Inc. (“Pfizer”), Upjohn Inc., a wholly-owned subsidiary of Pfizer (“Upjohn” or “Newco”), and certain other affiliated entities entered into a Business Combination Agreement (the “Business Combination Agreement”) pursuant to which the Company will combine with Pfizer’s Upjohn Business (the “Upjohn Business”) in a Reverse Morris Trust transaction (the “Combination”). Newco, which will be the parent entity of the combined Upjohn Business and Mylan business, will be renamed “Viatris” effective as of the closing of the Combination. The Upjohn Business is a global, primarily off-patent branded and generic established medicines business, which includes 20 primarily off-patent solid oral dose legacy brands, such as Lyrica, Lipitor, Celebrex and Viagra.

Prior to the Combination and pursuant to a Separation and Distribution Agreement (the “Separation Agreement”), dated as of July 29, 2019, between Pfizer and Newco, Pfizer will, among other things, transfer to Newco substantially all of the assets and liabilities comprising the Upjohn Business (the “Separation”) and, thereafter, Pfizer will distribute to Pfizer stockholders all of the issued and outstanding shares of Newco (the “Distribution”). When the Distribution and Combination are completed, Pfizer stockholders as of the record date of the Distribution will own 57% of the outstanding shares of Newco common stock, and Mylan shareholders as of immediately before the Combination will own 43% of the outstanding shares of Newco common stock, in each case on a fully diluted basis. Newco will make a cash payment to Pfizer equal to $12 billion, to be funded with the proceeds of debt to be incurred by Newco in connection with the foregoing transactions, as partial consideration for the contribution of the Upjohn Business from Pfizer to Newco.

Newco has obtained commitments for the initial financing of the transaction in the form of a bridge loan from certain financial institutions. If Newco obtains additional funding by issuing securities or obtaining other loans, the amount of the bridge facility will be correspondingly reduced. The bridge loan is subject to customary terms and conditions including a financial covenant.

            The consummation of the Combination is subject to the satisfaction (or, if applicable, valid waiver) of various conditions, including (a) the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder and the receipt of regulatory approvals in certain other jurisdictions, (b) the consummation of the Separation and the Distribution in accordance with the

terms of the Separation Agreement, (c) the approval of the Combination by Mylan shareholders, (d) the absence of any legal restraint (including legal actions or proceedings pursued by U.S. state authorities in the relevant states) preventing the consummation of the transactions, (e) in the case of Pfizer’s and Newco’s obligations to consummate the transactions, (i) the distribution of $12 billion in cash from Upjohn to Pfizer in accordance with the terms of the Separation Agreement and (ii) the receipt by Pfizer of a U.S. Internal Revenue Service (“IRS”) ruling and tax opinion of its tax counsel with respect to the Combination, and (f) other customary closing conditions. On March 17, 2020, Pfizer received the IRS ruling with respect to the Combination, which is generally binding, unless the relevant facts or circumstances change prior to closing.

On February 13, 2020, the registration statement on Form S-4 filed by Newco in connection with the Combination was declared effective by the SEC, Newco filed a prospectus with the SEC in connection with the Combination and Mylan filed a definitive proxy statement with the SEC in connection with the Combination.

On March 26, 2020, Mylan and Pfizer announced that due to the unprecedented circumstances surrounding the COVID-19 pandemic, including associated delays in the regulatory review process, the Combination is now anticipated to close in the second half of 2020. It was also announced that, in light of increased meeting and other restrictions due to COVID-19 developments in the Netherlands, Mylan’s extraordinary general meeting of shareholders to approve certain matters in connection with the Combination was rescheduled from April 27, 2020 to June 30, 2020.

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Equity Method Investments

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Equity Method Investments

The Company currently has three equity method investments in limited liability companies that own refined coal production plants (the “clean energy investments”) whose activities qualify for income tax credits under Section 45 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”).

Summarized financial information, in the aggregate, for the Company’s significant equity method investments on a 100% basis for the three months ended March 31, 2020 and 2019 are as follows:

	Three Months Ended
	March 31,
(In millions)	2020			2019
Total revenues	$	87.5		$	86.9
Gross loss	(1.1		)	(1.0		)
Operating and non-operating expense	4.7			4.9
Net loss	$	(5.8	)	$	(5.9	)

The Company’s net losses from its equity method investments include amortization expense related to the excess of the cost basis of the Company’s investment over the underlying assets of each individual investee. For the three months ended March 31, 2020 and 2019, the Company recognized net losses from equity method investments of $17.3 million and $17.0 million, respectively, which were recognized as a component of other expense, net in the condensed consolidated statements of operations. The Company recognizes the income tax credits and benefits from the clean energy investments as part of its provision for income taxes.

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Debt (Receivables, Securitization Facility and Commercial Paper) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Receivables Facility
Short-term Debt [Line Items]
Accounts receivable securitization facility maximum borrowing capacity	$ 400
Note Securitization Facility [Member]
Short-term Debt [Line Items]
Accounts receivable securitization facility maximum borrowing capacity	$ 200
London Interbank Offered Rate (LIBOR) [Member] | Receivables Facility
Short-term Debt [Line Items]
Basis spread on variable rate	0.775%
London Interbank Offered Rate (LIBOR) [Member] | Note Securitization Facility [Member]
Short-term Debt [Line Items]
Basis spread on variable rate	0.75%
Commercial Paper [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,650
Debt Instrument, Redemption, Description	P364D

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Collaboration and Licensing Agreements (Details) - Maximum $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Development and sales milestone payments	$ 404.0
Collaborative Arrangement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Development and sales milestone payments	$ 94.0

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Comprehensive Earnings (Components Of Other Comprehensive Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized gain (loss) on marketable securities, net of tax, beginning of period	$ 0.6
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax	19.0		$ 19.0	$ (17.4)
Foreign currency translation adjustment, beginning of period	(1,674.5)
Accumulated other comprehensive loss, net of tax, beginning of period	(1,797.2)
Net sales	2,588.2	$ 2,460.6
Interest expense	119.9	131.2
Net unrealized gain on marketable securities	0.2	0.4
Change in unrecognized gain and prior service cost related to defined benefit plans	(1.6)	0.2
Other comprehensive loss, before tax	(667.1)	(253.8)
Income Tax Expense (Benefit)	9.9	(89.5)
Net unrealized gain (loss) on marketable securities, net of tax, end of period	0.8
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax, end of period	19.0
Foreign currency translation adjustment, end of period	(2,331.1)
Accumulated other comprehensive loss, net of tax, end of period	(2,453.5)
Gains and Losses on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized gains (losses) on derivatives, net of tax, beginning of period		(53.1)
Other comprehensive earnings (loss) before reclassifications, before tax		24.5
Income Tax Expense (Benefit)		8.8
Net unrecognized gains (losses) on derivatives, net of tax, end of period		(39.3)
Gains and Losses on Derivatives | Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized losses on derivatives in net investment hedging relationships, net of tax		26.0
Gains and Losses on Derivatives | Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign currency forward contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net sales	(0.1)	(0.3)
Gains and Losses on Derivatives | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate swaps
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense	1.1	1.8
Gains and Losses on Marketable Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized gain (loss) on marketable securities, net of tax, beginning of period		0.0
Other comprehensive earnings (loss) before reclassifications, before tax		0.4
Income Tax Expense (Benefit)		0.0
Net unrealized gain (loss) on marketable securities, net of tax, end of period		0.4
Gains and Losses on Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income Tax Expense (Benefit)	0.0
Defined Benefit Plan Items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax		1.6			$ 1.7
Other comprehensive earnings (loss) before reclassifications, before tax	(1.8)	0.1
Income Tax Expense (Benefit)		(0.1)
Net unrecognized losses and prior service cost related to defined benefit plans, net of tax, end of period		1.6
Defined Benefit Plan Items | Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of prior service costs		(0.3)
Change in unrecognized gain and prior service cost related to defined benefit plans		0.2
Income Tax Expense (Benefit)	0.0
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation adjustment, beginning of period		(1,259.0)
Other comprehensive earnings (loss) before reclassifications, before tax	(656.6)
Income Tax Expense (Benefit)		0.0
Foreign currency translation adjustment, end of period		(1,597.5)
Foreign Currency Translation Adjustment | Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive loss, before tax		(338.5)
Income Tax Expense (Benefit)	0.0
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, net of tax, beginning of period		(1,441.3)
Other comprehensive earnings (loss) before reclassifications, before tax	(668.3)	(255.4)
Income Tax Expense (Benefit)		11.8
Accumulated other comprehensive loss, net of tax, end of period		(1,710.5)
AOCI Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of prior service costs	0.0	0.3
Other comprehensive earnings (loss), reclassification adjustment from AOCE, pension and other postretirement benefit plans, for net gain (loss), before tax	0.2	(0.2)
Income Tax Expense (Benefit)	(10.8)
AOCI Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign currency forward contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net sales	(0.1)	(0.3)
AOCI Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate swaps
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense	1.1	1.8
Cash Flow Hedging
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized losses on derivatives in net investment hedging relationships, net of tax	(51.4)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax	(51.4)	26.0
Cash Flow Hedging | Gains and Losses on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized gains (losses) on derivatives, net of tax, beginning of period	(31.6)
Other comprehensive earnings (loss) before reclassifications, before tax	(52.4)
Income Tax Expense (Benefit)	(12.9)
Net unrecognized gains (losses) on derivatives, net of tax, end of period	(70.1)
Cash Flow Hedging | Gains and Losses on Derivatives | Foreign currency forward contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net sales	(0.1)
Cash Flow Hedging | Gains and Losses on Derivatives | Interest rate swaps
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense	1.1
Net Investment Hedging
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulate Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Net Investment Hedges, Effect Net of Taxx			$ (34.1)	$ (74.3)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax	42.3	58.1
Net Investment Hedging | Gains and Losses on Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized gains (losses) on derivatives, net of tax, beginning of period		(130.9)
Other comprehensive earnings (loss) before reclassifications, before tax		58.1
Income Tax Expense (Benefit)	2.1	2.9
Net unrecognized gains (losses) on derivatives, net of tax, end of period		(75.7)
Mylan N.V. | Net Investment Hedging
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized losses on derivatives in net investment hedging relationships, net of tax	42.3	58.1
Pension and other postretirement benefits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of prior service costs	0.0	0.3
Recognized net actuarial losses (gains)	0.2	$ (0.2)
Pension and other postretirement benefits | Defined Benefit Plan Items | Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of prior service costs	$ 0.0

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Financial Instruments and Risk Management (Effect Of Derivative Instruments on the Condensed Consolidated Statements of Operations Derivatives in Cash Flow Hedging Relationships) (Details) - Cash Flow Hedging - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ (42.8)	$ 15.5
Amount of Gain (Loss) Reclassified from AOCE into Earnings	(1.0)	(1.5)
Foreign currency forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	(42.8)	15.5
Foreign currency forward contracts | Net sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Reclassified from AOCE into Earnings	0.1	0.3
Interest rate swaps | Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Reclassified from AOCE into Earnings	$ (1.1)	$ (1.8)

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Financial Instruments and Risk Management (Effect of Derivative Instruments on the Condensed Consolidated Balance Sheets Fair Values of Derivative Instruments Derivatives Not Designated As Hedging Instrument) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Derivatives, Fair Value [Line Items]
Fair value of financial instruments	$ 55.9	$ 43.3
Fair value of financial instruments	31.1	12.9
Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fair value of financial instruments	55.9	8.5
Not Designated as Hedging Instruments | Prepaid expenses and other current assets | Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Fair value of financial instruments	55.9	8.5
Not Designated as Hedging Instruments | Other current liabilities | Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Fair value of financial instruments	$ 31.1	$ 12.9

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Debt (2016 and 2018 Revolving Facility and 2016 Term Facility) (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Nov. 22, 2016
Debt Instrument [Line Items]
Current portion of long-term debt	$ 1,433.9	$ 1,457.6
2016 Revolving Credit Facility
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 2,000.0
Line of Credit [Member] | Trailing Four Quarters [Member] | 2016 Revolving Credit Facility
Debt Instrument [Line Items]
Line of Credit Facility, Covenant Terms	3.75 to 1.00

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Balance Sheet Components Balance Sheet Components (Cash, cash equivalents, and restricted cash) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents [Abstract]
Restricted cash	$ 15.5	$ 15.5
Cash and cash equivalents	572.4	475.6
Cash, cash equivalents and restricted cash	$ 587.9	$ 491.1	$ 230.9	$ 389.3

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Balance Sheet Components (Other Assets) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Schedule of Other Assets [Line Items]
Operating lease right-of-use assets	$ 236.4	$ 254.6
Other long-term assets	86.0	58.2
Other assets	403.5	405.0
Other assets | Clean energy investments
Schedule of Other Assets [Line Items]
Equity method investments	$ 81.1	$ 92.2

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Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Summary of Long-Term Debt

A summary of long-term debt is as follows:

(In millions)	Interest Rate as of March 31, 2020		March 31, 2020			December 31, 2019
Current portion of long-term debt:
2020 Floating Rate Euro Notes (a) **			551.6			560.6
2020 Euro Senior Notes **	1.250	%	826.9			840.1
2020 Senior Notes **	3.750	%	50.0			50.0
Other			6.3			8.3
Deferred financing fees			(0.9		)	(1.4		)
Current portion of long-term debt			$	1,433.9		$	1,457.6
Non-current portion of long-term debt:
2021 Senior Notes **	3.150	%	2,249.3			2,249.2
2023 Senior Notes (b) *	3.125	%	793.2			771.8
2023 Senior Notes *	4.200	%	499.2			499.1
2024 Euro Senior Notes **	2.250	%	1,101.5			1,119.3
2025 Euro Senior Notes *	2.125	%	550.6			559.6
2026 Senior Notes **	3.950	%	2,238.5			2,238.1
2028 Euro Senior Notes **	3.125	%	821.1			834.3
2028 Senior Notes *	4.550	%	748.4			748.4
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			747.7
Other			8.0			8.9
Deferred financing fees			(56.7		)	(59.1		)
Long-term debt			$	11,197.8		$	11,214.3

____________

^(a)  Instrument bears interest at a rate of three-month EURIBOR plus 0.50% per annum, reset quarterly.

^(b)  In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The fair value adjustment will be amortized to interest expense over the remaining term of the notes.

^* Instrument was issued by Mylan Inc.

^**  

Instrument was issued by Mylan N.V.

Minimum Repayments on Outstanding Borrowings

Mandatory minimum repayments remaining on the notional amount of outstanding long-term debt at March 31, 2020 were as follows for each of the periods ending December 31:

(In millions)	Total
2020	$	1,429
2021	2,250
2022	—
2023	1,250
2024	1,103
Thereafter	6,629
Total	$	12,661

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Equity Method Investments (Tables)

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Summarized financial information, in the aggregate, for the Company’s significant equity method investments on a 100% basis for the three months ended March 31, 2020 and 2019 are as follows:

	Three Months Ended
	March 31,
(In millions)	2020			2019
Total revenues	$	87.5		$	86.9
Gross loss	(1.1		)	(1.0		)
Operating and non-operating expense	4.7			4.9
Net loss	$	(5.8	)	$	(5.9	)

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2020

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

Recent Accounting Pronouncements

Adoption of New Accounting Standards and Amended SEC Rules

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses (“ASU 2016-13”), which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”). ASU 2019-05 provides transition relief for ASU 2016-13 by providing entities with an alternative to irrevocably elect the fair value option for eligible financial assets measured at amortized cost upon adoption of ASU 2016-13. The Company applied the provisions of ASU 2016-13 and its subsequent revisions as of January 1, 2020 and the adoption did not have a material impact on its condensed consolidated financial statements and disclosures.

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-03”), which adds to and modifies certain disclosure requirements for fair value measurements including a requirement to disclose changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and a requirement to disclose the range and weighted average used to develop significant inputs for Level 3 fair value measurements. The Company applied the provisions of ASU 2018-13 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s disclosures.

In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). The objective of this update is to clarify and align the accounting and capitalization of implementation costs for hosting arrangements, regardless of whether they convey a license to the hosted software. The updated guidance will require an entity in a hosting arrangement that is a service contract, to follow guidance in ASC 350 to determine which implementation costs to capitalize as an asset and which costs to expense. The Company applied the provisions of ASU 2018-15 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements and disclosures.

In November 2018, the FASB issued Accounting Standards Update 2018-18, Collaborative Arrangements (Topic 808)—Clarifying the Interaction between Topic 808 and Topic 606 (“ASU 2018-18”). The amendments in ASU 2018-18 make targeted improvements to U.S. GAAP for collaborative arrangements by clarifying that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation, and disclosure requirements. In addition, unit-of-account guidance in Topic 808 was aligned with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606. The Company applied the provisions of ASU 2018-18 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements and disclosures.

In March 2020, the SEC amended Rule 3-10 of Regulation S-X regarding the financial disclosure requirements for guarantors and issuers of guaranteed securities registered or being registered. Among other things, the amendments narrow the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamline the alternative disclosures required in lieu of those financial statements. The effective date of the amendment is January 4, 2021 with earlier voluntary compliance permitted. We have chosen to voluntarily comply with the amended rules effective during the three months ended March 31, 2020 and have included the required disclosures as a component of Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition of this Form 10-Q as permitted by the amendments.

Accounting Standards Issued Not Yet Adopted

In January 2020, the FASB issued Accounting Standards Update 2020-01, Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (“ASU 2020-01”), which clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. In addition, ASU 2020-01 states that for the purpose of applying paragraph 815-10-15-141(a) an entity should not consider whether, upon

the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. ASU 2020-01 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 with early adoption in any interim period permitted. The Company is currently assessing the impact of the adoption of this guidance on its condensed consolidated financial statements and disclosures.

In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. Entities can apply the provisions of ASU 2020-04 immediately, as applicable, and generally the provisions of the guidance are available through December 31, 2022 as entities transition away from reference rates that are expected to be discontinued. The Company is currently assessing the impact of the adoption of this guidance on its condensed consolidated financial statements and disclosures.

In addition, the following recently issued accounting standards have not been adopted. Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as amended, for additional information and their potential impacts.

Accounting Standard Update	Effective Date
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

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Balance Sheet Components

3 Months Ended

Mar. 31, 2020

Balance Sheet Components [Abstract]

Balance Sheet Components

Balance Sheet Components

Selected balance sheet components consist of the following:

Cash and restricted cash

(In millions)	March 31, 2020		December 31, 2019
Cash and cash equivalents	$	572.4	$	475.6
Restricted cash, included in prepaid expenses and other current assets	15.5		15.5
Cash, cash equivalents and restricted cash	$	587.9	$	491.1

Inventories

(In millions)	March 31, 2020		December 31, 2019
Raw materials	$	859.3	$	886.8
Work in process	395.6		417.2
Finished goods	1,384.7		1,366.9
Inventories	$	2,639.6	$	2,670.9

Prepaid and other current assets

(In millions)	March 31, 2020		December 31, 2019
Prepaid expenses	$	162.0	$	156.7
Restricted cash	15.5		15.5
Available-for-sale fixed income securities	36.9		26.8
Fair value of financial instruments	55.9		43.3
Equity securities	32.6		39.0
Other current assets	311.0		270.7
Prepaid expenses and other current assets	$	613.9	$	552.0

Prepaid expenses consist primarily of prepaid rent, insurance and other individually insignificant items.

Property, plant and equipment, net

(In millions)	March 31, 2020		December 31, 2019
Machinery and equipment	$	2,513.8	$	2,523.7
Buildings and improvements	1,193.2		1,197.3
Construction in progress	236.8		277.3
Land and improvements	122.0		124.6
Gross property, plant and equipment	4,065.8		4,122.9
Accumulated depreciation	1,998.8		1,973.3
Property, plant and equipment, net	$	2,067.0	$	2,149.6

Other assets

(In millions)	March 31, 2020		December 31, 2019
Equity method investments, clean energy investments	$	81.1	$	92.2
Operating lease right-of-use assets	236.4		254.6
Other long-term assets	86.0		58.2
Other assets	$	403.5	$	405.0

Accounts payable

(In millions)	March 31, 2020		December 31, 2019
Trade accounts payable	$	875.3	$	1,061.9
Other payables	398.2		466.2
Accounts payable	$	1,273.5	$	1,528.1

Other current liabilities

(In millions)	March 31, 2020		December 31, 2019
Accrued sales allowances	$	700.5	$	796.5
Legal and professional accruals, including litigation accruals	127.2		138.2
Payroll and employee benefit liabilities	394.3		467.1
Contingent consideration	117.3		120.4
Accrued interest	151.0		59.1
Restructuring	19.7		26.0
Equity method investments, clean energy investments	48.3		47.7
Fair value of financial instruments	70.3		12.9
Operating lease liability	70.5		76.7
Other	513.6		575.3
Other current liabilities	$	2,212.7	$	2,319.9

Other long-term obligations

(In millions)	March 31, 2020		December 31, 2019
Employee benefit liabilities	$	405.6	$	408.9
Contingent consideration	118.9		130.3
Equity method investments, clean energy investments	48.0		57.2
Tax related items, including contingencies	100.5		109.6
Operating lease liability	164.1		175.7
Other	81.9		79.1
Other long-term obligations	$	919.0	$	960.8

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Financial Instruments and Risk Management

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments and Risk Management

Financial Instruments and Risk Management

The Company is exposed to certain financial risks relating to its ongoing business operations. The primary financial risks that are managed by using derivative instruments are foreign currency risk and interest rate risk.

Foreign Currency Risk Management

In order to manage certain foreign currency risks, the Company enters into foreign exchange forward contracts to mitigate risk associated with changes in spot exchange rates of mainly non-functional currency denominated assets or liabilities. The foreign exchange forward contracts are measured at fair value and reported as current assets or current liabilities on the condensed consolidated balance sheets. Any gains or losses on the foreign exchange forward contracts are recognized in earnings in the period incurred in the condensed consolidated statements of operations.

The Company has also entered into forward contracts to hedge forecasted foreign currency denominated sales from certain international subsidiaries. These contracts are designated as cash flow hedges to manage foreign currency transaction risk and are measured at fair value and reported as current assets or current liabilities on the condensed consolidated balance sheets. Any changes in the fair value of designated cash flow hedges are deferred in accumulated other comprehensive earnings (“AOCE”) and are reclassified into earnings when the hedged item impacts earnings.

Net Investment Hedges

The Company may hedge the foreign currency risk associated with certain net investment positions in foreign subsidiaries by either borrowing directly in foreign currencies and designating all or a portion of the foreign currency debt as a hedge of the applicable net investment position or entering into foreign currency swaps that are designated as hedges of net investments.

The Company has designated certain Euro borrowings as a hedge of its investment in certain Euro-functional currency subsidiaries in order to manage foreign currency translation risk. Borrowings designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of AOCE until the sale or substantial liquidation of the underlying net investments. In addition, the Company manages the related foreign exchange risk of the Euro borrowings not designated as net investment hedges through certain Euro denominated financial assets and forward currency swaps.

The following table summarizes the principal amounts of the Company’s outstanding Euro borrowings and the notional amounts of the Euro borrowings designated as net investment hedges:

			Notional Amount Designated as a Net Investment Hedge
(in millions)	Principal Amount		March 31, 2020		December 31, 2019
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

Interest Rate Risk Management

The Company enters into interest rate swaps from time to time in order to manage interest rate risk associated with the Company’s fixed-rate and floating-rate debt. Interest rate swaps that meet specific accounting criteria are accounted for as fair value or cash flow hedges. All derivative instruments used to manage interest rate risk are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. For fair value hedges, the changes in the fair value of both the hedging instrument and the underlying debt obligations are included in interest expense. For cash flow hedges, the change in fair value of the hedging instrument is deferred through AOCE and is reclassified into earnings when the hedged item impacts earnings.

Credit Risk Management

The Company regularly reviews the creditworthiness of its financial counterparties and does not expect to incur a significant loss from the failure of any counterparties to perform under any agreements. The Company is not subject to any obligations to post collateral under derivative instrument contracts. Certain derivative instrument contracts entered into by the Company are governed by master agreements, which contain credit-risk-related contingent features that would allow the counterparties to terminate the contracts early and request immediate payment should the Company trigger an event of default on other specified borrowings. The Company records all derivative instruments on a gross basis in the condensed consolidated balance sheets. Accordingly, there are no offsetting amounts that net assets against liabilities.

The Effect of Derivative Instruments in the Condensed Consolidated Balance Sheets

Fair Values of Derivative Instruments

Derivatives Designated as Hedging Instruments

	Asset Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swaps	Prepaid expenses and other current assets	$	—	Prepaid expenses and other current assets	$	22.3
Foreign currency forward contracts	Prepaid expenses and other current assets	—		Prepaid expenses and other current assets	12.5
Total		$	—		$	34.8

	Liability Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign currency forward contracts	Other current liabilities	39.2		Other current liabilities	—
Total		$	39.2		$	—

The Effect of Derivative Instruments in the Condensed Consolidated Balance Sheets

Fair Values of Derivative Instruments

Derivatives Not Designated as Hedging Instruments

	Asset Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign currency forward contracts	Prepaid expenses and other current assets	$	55.9	Prepaid expenses and other current assets	$	8.5
Total		$	55.9		$	8.5

	Liability Derivatives
	March 31, 2020			December 31, 2019
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign currency forward contracts	Other current liabilities	$	31.1	Other current liabilities	$	12.9
Total		$	31.1		$	12.9

The Effect of Derivative Instruments in the Condensed Consolidated Statement of Operations

Derivatives in Fair Value Hedging Relationships

	Location of Gain (Loss) Recognized in Earnings on Derivatives	Amount of Gain (Loss) Recognized in Earnings on Derivatives
(In millions)		Three Months Ended
		March 31,
		2020		2019
Interest rate swaps	Interest expense	$	22.1	$	7.5
Total		$	22.1	$	7.5

	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
		March 31,
		2020			2019
2023 Senior Notes (3.125% coupon)	Interest expense	$	(22.1	)	$	(7.5	)
Total		$	(22.1	)	$	(7.5	)

In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The amount included in the above tables represents the fair value adjustment recognized at the date the interest rate swaps were settled.

The Effect of Derivative Instruments in the Condensed Consolidated Statements of Comprehensive Earnings

Derivatives in Cash Flow Hedging Relationships

	Amount of Gain (Loss) Recognized in AOCE (Net of Tax) on Derivative
	Three Months Ended
	March 31,
(In millions)	2020			2019
Foreign currency forward contracts	$	(42.8	)	$	15.5
Total	$	(42.8	)	$	15.5

The Effect of Derivative Instruments in the Condensed Consolidated Statements of Comprehensive Earnings

Derivatives in Net Investment Hedging Relationships

	Amount of Gain (Loss) Recognized in AOCE (Net of Tax) on Derivative
	Three Months Ended
	March 31,
(In millions)	2020		2019
Foreign currency borrowings and forward contracts	$	40.1	$	55.2
Total	$	40.1	$	55.2

The Effect of Derivative Instruments in the Condensed Consolidated Statement of Operations

Derivatives in Cash Flow Hedging Relationships

	Location of Gain (Loss) Reclassified from AOCE into Earnings	Amount of Gain (Loss) Reclassified from AOCE into Earnings
		Three Months Ended
		March 31,
(In millions)		2020			2019
Foreign currency forward contracts	Net sales	$	0.1		$	0.3
Interest rate swaps	Interest expense	(1.1		)	(1.8		)
Total		$	(1.0	)	$	(1.5	)

At March 31, 2020, the Company expects that approximately $47.0 million of pre-tax net losses on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months.

The Effect of Derivative Instruments in the Condensed Consolidated Statement of Operations

Derivatives Not Designated as Hedging Instruments

	Location of Gain (Loss) Recognized in Earnings on Derivatives	Amount of Gain (Loss) Recognized in Earnings on Derivatives
		Three Months Ended
		March 31,
(In millions)		2020		2019
Foreign currency option and forward contracts	Other expense, net	$	29.4	$	(5.8	)
Total		$	29.4	$	(5.8	)

Fair Value Measurement

Fair value is based on the price that would be received from the sale of an identical asset or paid to transfer an identical liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy has been established that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

• 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.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considers counterparty credit risk in its assessment of fair value.

Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above:

	March 31, 2020
(In millions)	Level 1		Level 2		Level 3		Total
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds	$	0.7	$	—	$	—	$	0.7
Total cash equivalents	0.7		—		—		0.7
Equity securities:
Exchange traded funds	31.9		—		—		31.9
Marketable securities	0.7		—		—		0.7
Total equity securities	32.6		—		—		32.6
Available-for-sale fixed income investments:
Corporate bonds	—		16.3		—		16.3
U.S. Treasuries	—		12.5		—		12.5
Agency mortgage-backed securities	—		2.1		—		2.1
Asset backed securities	—		5.4		—		5.4
Other	—		0.6		—		0.6
Total available-for-sale fixed income investments	—		36.9		—		36.9
Foreign exchange derivative assets	—		55.9		—		55.9
Interest rate swap derivative assets	—		—		—		—
Total assets at recurring fair value measurement	$	33.3	$	92.8	$	—	$	126.1
Financial Liabilities
Foreign exchange derivative liabilities	—		70.3		—		70.3
Contingent consideration	—		—		236.2		236.2
Total liabilities at recurring fair value measurement	$	—	$	70.3	$	236.2	$	306.5

	December 31, 2019
(In millions)	Level 1		Level 2		Level 3		Total
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds	$	0.7	$	—	$	—	$	0.7
Total cash equivalents	0.7		—		—		0.7
Equity securities:
Exchange traded funds	38.3		—		—		38.3
Marketable securities	0.7		—		—		0.7
Total equity securities	39.0		—		—		39.0
Available-for-sale fixed income investments:
Corporate bonds	—		10.8		—		10.8
U.S. Treasuries	—		9.5		—		9.5
Agency mortgage-backed securities	—		2.3		—		2.3
Asset backed securities	—		3.6		—		3.6
Other	—		0.6		—		0.6
Total available-for-sale fixed income investments	—		26.8		—		26.8
Foreign exchange derivative assets	—		21.0		—		21.0
Interest rate swap derivative assets	—		22.3		—		22.3
Total assets at recurring fair value measurement	$	39.7	$	70.1	$	—	$	109.8
Financial Liabilities
Foreign exchange derivative liabilities	$	—	$	12.9	$	—	$	12.9
Contingent consideration	—		—		250.7		250.7
Total liabilities at recurring fair value measurement	$	—	$	12.9	$	250.7	$	263.6

For financial assets and liabilities that utilize Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including the LIBOR yield curve, foreign exchange forward prices and bank price quotes. Below is a summary of valuation techniques for Level 1 and Level 2 financial assets and liabilities:

• 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.

• 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.

• 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.

Contingent Consideration

The fair value measurement of contingent consideration is determined using Level 3 inputs. The Company’s contingent consideration represents a component of the total purchase consideration for Pfizer Inc.’s proprietary dry powder inhaler delivery platform and certain other acquisitions. The measurement is calculated using unobservable inputs based on the Company’s own assumptions primarily related to probability and timing of future development and commercial milestones and future profit sharing payments which are discounted using a market rate of return. At March 31, 2020 and December 31, 2019, discount rates ranging from 3.5% to 11.0% were utilized in the valuations. Significant changes in unobservable inputs could result in material changes to the contingent consideration liability.

A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2019 to March 31, 2020 is as follows:

(In millions)	Current Portion (1)			Long-Term Portion (2)			Total Contingent Consideration
Balance at December 31, 2019	$	120.4		$	130.3		$	250.7
Payments	(24.3		)	—			(24.3		)
Reclassifications	17.0			(17.0		)	—
Accretion	—			3.2			3.2
Fair value loss (3)	4.2			2.4			6.6
Balance at March 31, 2020	$	117.3		$	118.9		$	236.2

____________

⁽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.

Although the Company has not elected the fair value option for other financial assets and liabilities, any future transacted financial asset or liability will be evaluated for the fair value election.

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Restructuring

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

2020 Restructuring Program

On February 27, 2020, the Company announced that it has formalized the next steps in its efforts to sustain long-term value creation through the proactive transformation of its business. This transformation initiative includes a new global restructuring program. The program is intended to support the Company’s effort to improve operating performance and meet anticipated market demands, by ensuring that the Company is appropriately structured and resourced to deliver sustainable value to customers, patients, other stakeholders and shareholders. Key activities under the program include supply chain network optimization intended to maximize the efficiency of the Company’s global manufacturing and distribution network capacity and further optimizing functional capabilities that support business growth.

The Company is currently developing the details of the initiatives, including workforce actions and other restructuring activities. Further details will be disclosed as plans are finalized, including the estimated amount or range of amounts to be incurred by major cost type and future cash expenditures associated with those initiatives. As a result of the COVID-19 pandemic and the related uncertainty and complexity of the current environment, the Company has delayed the implementation of the 2020 restructuring program.

2016 Restructuring Program

On December 5, 2016, the Company announced a restructuring program representing a series of actions in certain locations that are anticipated to further streamline its operations globally. Since 2015, the Company has made a number of significant acquisitions, and as part of the holistic, global integration of these acquisitions, the Company is focused on how to best optimize and maximize all of its assets across the organization and across all geographies.

Charges for restructuring and ongoing cost reduction initiatives are recorded in the period the Company commits to a restructuring or cost reduction plan, or executes specific actions contemplated by the plan and all criteria for liability recognition have been met.

During the second quarter of 2018, the Company commenced comprehensive restructuring and remediation activities, which are aimed at reducing the complexity at the Morgantown, West Virginia plant and include the discontinuation and transfer to other manufacturing sites of a number of products, a reduction of the workforce and extensive process and facility remediation. The restructuring actions other than for this plant are substantially complete. At this time, the total expenses related to the additional restructuring and remediation activities at the Morgantown plant cannot be reasonably estimated.

The following table summarizes the restructuring charges and the reserve activity from December 31, 2019 to March 31, 2020:

(In millions)	Employee Related Costs			Other Exit Costs			Total
Balance at December 31, 2019:	$	26.4		$	2.8		$	29.2
Charges (1)	2.9			4.7			7.6
Cash payment	(6.0		)	(0.9		)	(6.9		)
Utilization	—			(3.7		)	(3.7		)
Foreign currency translation	(0.4		)	(0.1		)	(0.5		)
Balance at March 31, 2020:	$	22.9		$	2.8		$	25.7

____________

⁽¹⁾ For the three months ended March 31, 2020, total restructuring charges in North America, Europe, Rest of World, and corporate were approximately $4.4 million, $2.4 million, $0.3 million, and $0.5 million, respectively.

At March 31, 2020 and December 31, 2019, accrued liabilities for restructuring and other cost reduction programs were primarily included in other current liabilities in the condensed consolidated balance sheets.

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General (Policies)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting Policy

The accompanying unaudited condensed consolidated financial statements (“interim financial statements”) of Mylan N.V. and subsidiaries (“Mylan” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q; therefore, as permitted under these rules, certain footnotes and other financial information included in audited financial statements were condensed or omitted. The interim financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the interim results of operations, comprehensive earnings, financial position, equity and cash flows for the periods presented.

Earnings per Share Policy

Basic earnings (loss) per ordinary share is computed by dividing net earnings (loss) by the weighted average number of ordinary shares outstanding during the period. Diluted earnings (loss) per ordinary share is computed by dividing net earnings (loss) by the weighted average number of ordinary shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities or instruments, if the impact is dilutive

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Income Taxes Income Taxes Disclosure (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2020
Income Tax Contingency [Line Items]
Reduction due to lapse in statues	$ 83.8
Scenario, Forecast
Income Tax Contingency [Line Items]
Expected reduction to tax expense by CARES Act		$ 30.0

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Equity Method Investments (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity method investments summarized financial data basis	100.00%
Loss from equity method investments	$ 17.3	$ 17.0
Clean energy investments
Schedule of Equity Method Investments [Line Items]
Number of equity method investments	3

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Revenue Recognition and Accounts Receivable

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition and Accounts Receivable

Revenue Recognition and Accounts Receivable

The Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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).

Our net sales may be impacted by wholesaler and distributor inventory levels of our products, which can fluctuate throughout the year due to the seasonality of certain products, pricing, the timing of product demand, purchasing decisions 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 other revenues. 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.

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, 2020 and 2019, respectively:

(In millions)	North America		Europe		Rest of World		Total
Three Months Ended March 31, 2020
Central Nervous System & Anesthesia	$	141.2	$	225.7	$	60.4	$	427.3
Infectious Disease	45.1		72.3		229.7		347.1
Respiratory & Allergy	280.6		133.4		49.7		463.7
Cardiovascular	66.1		128.9		33.2		228.2
Gastroenterology	37.4		151.2		59.0		247.6
Diabetes & Metabolism	65.1		77.1		27.5		169.7
Dermatology	30.2		77.3		19.7		127.2
Women’s Healthcare	84.4		61.3		17.7		163.4
Oncology	129.1		18.6		24.6		172.3
Immunology	9.1		25.6		8.2		42.9
Other (1)	67.2		50.5		81.1		198.8
Total	$	955.5	$	1,021.9	$	610.8	$	2,588.2

(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

____________

⁽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, 2020 and 2019, respectively:

	Three Months Ended
	March 31,
(In millions)	2020			2019
Gross sales	$	4,424.0		$	4,158.5
Gross to net adjustments:
Chargebacks	(854.4		)	(703.7		)
Rebates, promotional programs and other sales allowances	(845.6		)	(856.2		)
Returns	(59.0		)	(45.8		)
Governmental rebate programs	(76.8		)	(92.2		)
Total gross to net adjustments	$	(1,835.8	)	$	(1,697.9	)
Net sales	$	2,588.2		$	2,460.6

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, 2020. Such allowances were comprised of the following at March 31, 2020 and December 31, 2019, respectively:

(In millions)	March 31, 2020		December 31, 2019
Accounts receivable, net	$	1,393.8	$	1,512.0
Other current liabilities	700.5		796.5
Total	$	2,094.3	$	2,308.5

Accounts receivable, net was comprised of the following at March 31, 2020 and December 31, 2019, respectively:

(In millions)	March 31, 2020		December 31, 2019
Trade receivables, net	$	2,429.2	$	2,640.1
Other receivables	345.4		418.7
Accounts receivable, net	$	2,774.6	$	3,058.8

Receivables Facility and Note Securitization Facility

Through its wholly owned subsidiary Mylan Pharmaceuticals Inc. (“MPI”), the Company has access to a $400 million accounts receivable securitization facility (the “Receivables Facility”) and a $200 million note securitization facility (the “Note Securitization Facility”). The receivables underlying any borrowings are included in accounts receivable, net, in the condensed consolidated balance sheets. There were $373.1 million and $407.0 million of securitized accounts receivable at March 31, 2020 and December 31, 2019, respectively.

Accounts Receivable Factoring Arrangements

We have entered into accounts receivable factoring agreements with financial institutions to sell certain of our non-U.S. accounts receivable. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. Our factoring agreements do not allow for recourse in the event of uncollectibility, and we do not retain any interest in the underlying accounts receivable once sold. We derecognized $125.7 million and $90.1 million of accounts receivable as of March 31, 2020 and December 31, 2019, respectively, under these factoring arrangements.

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Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
In-process research and development	$ 114.9		$ 120.3
Contingent consideration	236.2		250.7
Business Combination Contingent Consideration Liability Payments	(24.3)
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings	6.6
IPR&D intangible asset impairment charges	0.0	$ 29.5
Goodwill	9,326.7		9,590.6
Europe Segment
Finite-Lived Intangible Assets [Line Items]
Goodwill	4,431.1		4,548.6
Rest of World Segment
Finite-Lived Intangible Assets [Line Items]
Goodwill	1,648.8		1,718.6
Prepaid expenses and other current assets
Finite-Lived Intangible Assets [Line Items]
Contingent consideration	117.3		$ 120.4
Business Combination Contingent Consideration Liability Payments	(24.3)
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings	4.2
Other revenue
Finite-Lived Intangible Assets [Line Items]
IPR&D intangible asset impairment charges		$ (29.5)
Rest of World Segment
Finite-Lived Intangible Assets [Line Items]
Goodwill	1,650.0
Europe Segment
Finite-Lived Intangible Assets [Line Items]
Goodwill	4,430.0
North America Brands
Finite-Lived Intangible Assets [Line Items]
Goodwill	650.0
North America Generics
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 2,600.0

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Litigation (Drug Pricing Matters) (Details)	Mar. 31, 2020
Multi District Litigation [Member]
Loss Contingencies [Line Items]
Number of states	47
Anticompetitive Conduct with Doxycycline Hyclate Delayed Release, Doxycycline Monohydrate, Glipizide-Metformin and Verapamil [Member]
Loss Contingencies [Line Items]
Number of states	37
Anticompetitive Conduct with Generic Drugs [Member]
Loss Contingencies [Line Items]
Number of states	48
Amended Anticompetitive Conduct with Generic Drugs [Member]
Loss Contingencies [Line Items]
Number of states	43

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Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings	Treasury Stock [Member]	Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2018	$ 12,167.1	$ 6.0	$ 8,591.4	$ 6,010.7	$ (999.7)	$ (1,441.3)
Balance (in shares) at Dec. 31, 2018		539,289,665
Balance (in shares) at Dec. 31, 2018					23,490,867
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)	(25.0)
Other comprehensive loss, net of tax	(265.6)					(265.6)
Stock options exercised, net of shares tendered for payment (in shares)		653,679
Issuance of restricted stock, net of shares withheld	2.3		2.3
Taxes related to the net share settlement of equity awards	(5.2)		(5.2)
Stock compensation expense	18.0		18.0
Cumulative effect of the adoption of new accounting standards	0.0			3.6		(3.6)
Balance at Mar. 31, 2019	11,891.6	$ 6.0	8,606.5	5,989.3	$ (999.7)	(1,710.5)
Balance (in shares) at Mar. 31, 2019		539,943,344
Balance (in shares) at Mar. 31, 2019					23,490,867
Balance at Dec. 31, 2019	11,883.8	$ 6.1	8,643.5	6,031.1	$ (999.7)	(1,797.2)
Balance (in shares) at Dec. 31, 2019		540,746,871
Balance (in shares) at Dec. 31, 2019					24,598,074
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)	20.8
Other comprehensive loss, net of tax	(656.3)					(656.3)
Stock options exercised, net of shares tendered for payment (in shares)		795,423
Issuance of restricted stock, net of shares withheld	0.6	$ 0.0	0.6
Taxes related to the net share settlement of equity awards	(5.6)		(5.6)
Stock compensation expense	19.4		19.4
Balance at Mar. 31, 2020	$ 11,262.7	$ 6.1	$ 8,657.9	$ 6,051.9	$ (999.7)	$ (2,453.5)
Balance (in shares) at Mar. 31, 2020		541,542,294
Balance (in shares) at Mar. 31, 2020					24,598,074

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Litigation (Intellectual Property) (Narrative) (Details)	3 Months Ended
	Mar. 31, 2020 increase
Intellectual Property
Loss Contingencies [Line Items]
Number of times damages may be increased in cases of willful infringement	3

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Cover Page - € / shares	3 Months Ended
	Mar. 31, 2020	May 06, 2020	Dec. 31, 2019
Cover [Abstract]
Entity Address, Address Line One	Building 4
Title of 12(b) Security	Ordinary shares, nominal value €0.01
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	P7
Entity Tax Identification Number	98-1493528
Entity File Number	333-199861
Entity Registrant Name	MYLAN N.V.
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Entity Filler Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Ordinary Shares, Shares Outstanding		516,944,470
Common Stock, Par or Stated Value Per Share	€ 0.01		€ 0.01
Trading Symbol	MYL
Security Exchange Name	NASDAQ
Entity Address, Address Line Two	Trident Place
Entity Address, Address Line Three	Mosquito Way
Entity Address, City or Town	Hatfield
Entity Address, Postal Zip Code	AL10 9UL
Entity Address, Country	GB
Country Region	44
City Area Code	1707
Local Phone Number	853-000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Central Index Key	0001623613
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31

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Goodwill and Intangibles Assets (Expected Amortization Expense) (Details) $ in Millions	Mar. 31, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Expected amortization expense, remainder of 2020	$ 1,056
Expected amortization expense, 2021	1,331
Expected amortization expense, 2022	1,264
Expected amortization expense, 2023	1,103
Expected amortization expense, 2024	$ 995

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Share-Based Incentive Plan (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	6,778,845		6,347,709
Long-Term Incentive Plan 2003
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares reserved for issuance	55,300,000
Total unrecognized compensation expense, net of estimated forfeitures	$ 111.2
Weighted-average period over which total unrecognized compensation expense expected to be recognized, in years	1 year 9 months 18 days
Intrinsic value of stock-based awards exercised and restricted stock units converted	$ 19.0	$ 22.1
Long-Term Incentive Plan 2003 | Stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option award expiration period, in years	10 years
Average remaining contractual term for stock awards outstanding, in years	5 years 8 months 12 days
Average remaining contractual term for stock awards vested and expected to vest, in years	5 years 7 months 6 days
Average remaining contractual term for stock awards exercisable, in years	4 years 7 months 6 days
Long-Term Incentive Plan 2003 | Stock awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option award vesting period, in years	3 years
Long-Term Incentive Plan 2003 | Stock awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option award vesting period, in years	4 years

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Revenue Recognition and Accounts Receivable Variable Consideration (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Gross sales	$ 4,424.0	$ 4,158.5
Chargebacks	(854.4)	(703.7)
Rebates, promotional programs and other sales allowances	(845.6)	(856.2)
Returns	(59.0)	(45.8)
Medicaid and other governmental rebates	(76.8)	(92.2)
Sales Revenue, Gross to net adjustments	(1,835.8)	(1,697.9)
Net sales	$ 2,588.2	$ 2,460.6