XML 40 R24.htm IDEA: XBRL DOCUMENT v3.22.0.1
Restructuring
 12 Months Ended
Dec. 31, 2021
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block] Restructuring
2020 Restructuring Program
During the fourth quarter of 2020, Viatris announced a significant global restructuring program in order to achieve synergies and ensure that the organization is optimally structured and efficiently resourced to deliver sustainable value to patients, shareholders, customers, and other stakeholders. Viatris’ restructuring initiative incorporates and expands on the restructuring program announced by Mylan N.V. earlier in 2020 as part of its business transformation efforts. As part of the restructuring, the Company is optimizing its commercial capabilities and enabling functions, and closing, downsizing or divesting certain manufacturing facilities globally that are deemed to be no longer viable either due to surplus capacity, challenging market dynamics or a shift in its product portfolio toward more complex products.
For the committed restructuring actions, the Company expects to incur total pre-tax charges of up to approximately $1.4 billion. Such charges are expected to include up to approximately $450 million of non-cash charges mainly related to accelerated depreciation and asset impairment charges, including inventory write-offs. The remaining estimated cash costs of up to approximately $950 million are expected to be primarily related to severance and employee benefits expense, as well as other costs, including those related to contract terminations and other plant disposal costs. In addition, management believes the potential annual savings related to these committed restructuring activities to be up to approximately $900 million once fully implemented, with most of these savings expected to improve operating cash flow.
The following table summarizes the restructuring charges and the reserve activity for the 2020 restructuring program:
(In millions)Employee Related CostsOther Exit CostsTotal
Charges (2)
$195.6 $75.7 $271.3 
Acquired in the Combination91.7 0.3 92.0 
Cash payment(25.1)(0.4)(25.5)
Utilization— (70.8)(70.8)
Foreign currency translation0.4 — 0.4 
Balance at December 31, 2020$262.6 $4.8 $267.4 
Charges (1)
396.1 496.1 892.2 
Reimbursable restructuring charges26.4 — 26.4 
Cash payment(385.5)(151.7)(537.2)
Utilization— (345.0)(345.0)
Foreign currency translation(7.0)(0.1)(7.1)
Balance at December 31, 2021$292.6 $4.1 $296.7 

As part of the Combination, the Company acquired reserve balances related to restructuring activities initiated by the Upjohn Business prior to the Combination, primarily related to accrued severance.

2016 Restructuring Program
Mylan previously announced a restructuring program representing a series of actions in certain locations to further streamline its operations globally. We incurred total restructuring related costs of approximately $733.0 million through December 31, 2020. The 2016 Restructuring Program was substantially completed at December 31, 2020.
In April 2018, the FDA completed an inspection at Mylan’s plant in Morgantown, West Virginia and made observations through a Form 483. In the fourth quarter of 2018, Mylan received a warning letter related to the previously disclosed observations at the plant. The issues raised in the warning letter were addressed within the context of the Mylan’s comprehensive restructuring and remediation activities. On May 11, 2020, Mylan received the close-out of the warning letter. On December 11, 2020, the Company announced that it expects the Morgantown plant to be closed or divested as part of the 2020 Restructuring Program. The Morgantown plant was closed during the third quarter of 2021.

The following table summarizes the restructuring charges and the reserve activity for the 2016 restructuring program from December 31, 2018 to December 31, 2020:
(In millions)Employee Related CostsOther Exit CostsTotal
Balance at December 31, 2018:$60.8 $11.8 $72.6 
Charges (3)
16.6 88.0 $104.6 
Cash payment(48.9)(10.5)$(59.4)
Reclassifications— (8.1)$(8.1)
Utilization— (78.3)$(78.3)
Foreign currency translation(2.1)(0.1)$(2.2)
Balance at December 31, 2019:$26.4 $2.8 $29.2 
Charges (2)
9.9 40.6 50.5 
Cash payment(18.1)(7.6)(25.7)
Utilization— (32.9)(32.9)
Foreign currency translation$1.8 $(0.1)$1.7 
Balance at December 31, 2020:$20.0 $2.8 $22.8 
(1)     For the year ended December 31, 2021, total restructuring charges for the 2020 Restructuring Program, in Developed Markets, Greater China, JANZ, Emerging Markets, and Corporate/Other were approximately $623.8 million, $5.8 million, $138.1 million, $94.1 million, and $30.4 million, respectively.
(2)     For the year ended December 31, 2020, total restructuring charges, for both programs, in Developed Markets, Greater China, JANZ, and Emerging Markets were approximately $292.1 million, $18.4 million, $2.9 million, and $8.4 million, respectively.
(3)     For the year ended December 31, 2019, total restructuring charges for the 2016 Restructuring Program in Developed Markets and JANZ were approximately $100.4 million and $4.2 million, respectively.
At December 31, 2021 and 2020, accrued liabilities for restructuring and other cost reduction programs were primarily included in other current liabilities and other long-term obligations in the consolidated balance sheets.