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Revenue Recognition and Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

The following table presents the Company’s net sales by product category for each of our reportable segments for the years ended December 31, 2022, 2021, and 2020, respectively:


(In millions)	2022 Net Sales
Product Category	Developed Markets		Greater China		JANZ		Emerging Markets		Total
Brands	5,160.4		2,190.7		922.6		1,615.9		9,889.6
Complex Gx and Biosimilars	1,218.0		0.6		44.1		50.7		1,313.4
Generics	3,390.5		9.9		665.7		949.0		5,015.1
Total Viatris	$	9,768.9	$	2,201.2	$	1,632.4	$	2,615.6	$	16,218.1


(In millions)	2021 Net Sales
Product Category	Developed Markets		Greater China		JANZ		Emerging Markets		Total
Brands	5,759.2		2,207.8		1,197.1		1,677.2		10,841.3
Complex Gx and Biosimilars	1,241.6		0.2		46.5		53.8		1,342.1
Generics	3,427.9		4.8		783.8		1,413.7		5,630.2
Total Viatris	$	10,428.7	$	2,212.8	$	2,027.4	$	3,144.7	$	17,813.6


(In millions)	2020 Net Sales
Product Category	Developed Markets		Greater China		JANZ		Emerging Markets		Total
Brands	3,920.7		253.9		617.0		443.3		5,234.9
Complex Gx and Biosimilars	1,202.6		0.7		42.8		49.4		1,295.5
Generics	3,387.6		5.3		535.5		1,361.1		5,289.5
Total Viatris	$	8,510.9	$	259.9	$	1,195.3	$	1,853.8	$	11,819.9

____________

(a)Amounts for the year ended December 31, 2022 include the unfavorable impact of foreign currency translations compared to the prior year period.

(b)Amounts for the year ended December 31, 2022 reflect a decrease of approximately $63.5 million related to the year over year impact of the sale of the biosimilars business in November 2022. The Company has not recognized the results of the biosimilars business in its consolidated financial statements subsequent to November 29, 2022.

The following table presents net sales on a consolidated basis for select key products for the years ended December 31, 2022 and 2021, respectively:


	Year Ended December 31,
(In millions)	2022		2021

Select Key Global Products
Lipitor ®	$	1,635.2	$	1,663.2
Norvasc ®	775.1		824.7
Lyrica ®	623.8		728.5
Viagra ®	458.9		533.8
EpiPen® Auto-Injectors	378.0		391.7
Celebrex ®	338.1		344.4
Creon ®	304.0		309.8
Effexor ®	279.6		316.8
Zoloft ®	246.2		284.3
Xalabrands	195.1		226.0

Select Key Segment Products
Influvac ®	$	225.5	$	299.3
Yupelri ®	202.1		161.9
Dymista ®	179.8		168.0
Amitiza ®	167.9		201.5
Xanax ®	156.5		185.9

____________

(a)The Company does not disclose net sales for any products considered competitively sensitive.

(b)Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches.

(c)Amounts for the year ended December 31, 2022 include the unfavorable impact of foreign currency translations compared to the prior year period.

(d)Amounts for the year ended December 31, 2020 are not presented due to the significance of products acquired as part of the Combination.

The following is a rollforward of the categories of variable consideration during 2022:


(In millions)	Balance at December 31, 2021		Current Provision Related to Sales Made in the Current Period		Balances Divested		Checks/ Credits Issued to Third Parties		Effects of Foreign Exchange		Balance at December 31, 2022
Chargebacks	$	591.7	$	6,192.2	$	(53.4)	$	(6,205.6)	$	(1.5)	$	523.4
Rebates, promotional programs and other sales allowances	1,373.0		4,346.2		(215.1)		(4,177.5)		(42.4)		1,284.2
Returns	686.8		296.7		(16.0)		(447.6)		(6.5)		513.4
Governmental rebate programs	399.2		608.9		(34.1)		(602.4)		(5.1)		366.5
Total	$	3,050.7	$	11,444.0	$	(318.6)	$	(11,433.1)	$	(55.5)	$	2,687.5

Schedule of Accounts Receivable, Net

Accounts receivable are presented net of allowances relating to these provisions, which were comprised of the following at December 31, 2022 and 2021, respectively:


(In millions)	December 31, 2022		December 31, 2021
Accounts receivable, net	$	1,798.7	$	1,688.6
Other current liabilities	888.8		1,362.1
Total	$	2,687.5	$	3,050.7

Accounts receivable, net was comprised of the following at December 31, 2022 and 2021, respectively:


(In millions)	December 31, 2022		December 31, 2021
Trade receivables, net	$	3,243.8	$	3,774.4
Other receivables	570.7		492.0
Accounts receivable, net	$	3,814.5	$	4,266.4

Disaggregation of Revenue, Variable Consideration

The following table presents a reconciliation of gross sales to net sales by each significant category of variable consideration during the years ended December 31, 2022, 2021 and 2020, respectively:


	Year Ended December 31,
(In millions)	2022		2021		2020
Gross sales	$	27,662.1	$	30,553.4	$	19,899.1
Gross to net adjustments:
Chargebacks	(6,192.2)		(5,530.1)		(3,656.2)
Rebates, promotional programs and other sales allowances	(4,346.2)		(6,135.6)		(3,765.5)
Returns	(296.7)		(384.6)		(329.7)
Governmental rebate programs	(608.9)		(689.5)		(327.8)
Total gross to net adjustments	$	(11,444.0)	$	(12,739.8)	$	(8,079.2)
Net sales	$	16,218.1	$	17,813.6	$	11,819.9