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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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, 2024
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 001-39695
VIATRIS INC.
(Exact name of registrant as specified in its charter)
Delaware83-4364296
(State or other jurisdiction
of incorporation or organization)
(I.R.S. Employer
Identification No.)
1000 Mylan Boulevard, Canonsburg, Pennsylvania 15317
(Address of principal executive offices)
(724) 514-1800
(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:
Common Stock, par value $0.01 per shareVTRSThe 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, a 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 filerAccelerated 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.
The number of shares of common stock outstanding, par value $0.01 per share, of the registrant as of May 6, 2024 was 1,190,675,819.


Table of Contents
VIATRIS INC. AND SUBSIDIARIES
INDEX TO FORM 10-Q
For the Quarterly Period Ended
March 31, 2024
  
Page
PART I — FINANCIAL INFORMATION
ITEM 1.Condensed Consolidated Financial Statements (unaudited)
ITEM 2.
ITEM 3.
ITEM 4.
PART II — OTHER INFORMATION
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 5.
ITEM 6.














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Glossary of Defined Terms

Unless the context requires otherwise, references to “Viatris,” “the Company,” “we,” “us” or “our” in this Form 10-Q (defined below) refer to Viatris Inc. and its subsidiaries. We also have used several other terms in this Form 10-Q, most of which are explained or defined below. Some amounts in this Form 10-Q may not add due to rounding.

2003 LTIPMylan N.V. Amended and Restated 2003 Long-Term Incentive Plan
2020 Incentive PlanViatris Inc. 2020 Stock Incentive Plan
2023 Form 10-K
Viatris’ annual report on Form 10-K for the fiscal year ended December 31, 2023, as amended
Adjusted EBITDANon-GAAP financial measure that the Company believes is appropriate to provide information to investors - EBITDA (defined below) is further adjusted for share-based compensation expense, litigation settlements, and other contingencies, net, restructuring and other special items
ANDAAbbreviated New Drug Application
Announced Divestitures
All of the following transactions: on October 1, 2023, Viatris announced it had received an offer for the divestiture of its OTC Business and had entered into definitive agreements to divest its women’s healthcare business and, separately, in another transaction, its rights to two women’s healthcare products in certain countries, its API business in India and commercialization rights in the Upjohn Distributor Markets
AOCEAccumulated other comprehensive earnings
APIActive pharmaceutical ingredient
ARVAntiretroviral medicines
ASCAccounting Standards Codification
ASUAccounting Standards Update
BioconBiocon Limited
Biocon BiologicsBiocon Biologics Limited, a majority owned subsidiary of Biocon
Biocon Biologics TransactionThe transaction between Viatris and Biocon Biologics pursuant to which Viatris contributed its biosimilars portfolio, composed of the Biocon collaboration programs, biosimilars to Humira®, Enbrel®, and Eylea®, as well as related assets and liabilities to Biocon Biologics
Biocon Agreement
The transaction agreement between Viatris and Biocon Biologics, dated February 27, 2022, relating to the Biocon Biologics Transaction, as amended from time to time
Business Combination AgreementBusiness Combination Agreement, dated as of July 29, 2019, as amended from time to time, among Viatris, Mylan, Pfizer and certain of their affiliates
CAMT
U.S. corporate alternative minimum tax
CCPSCompulsory convertible preferred shares
CodeThe U.S. Internal Revenue Code of 1986, as amended
CombinationRefers to Mylan combining with Pfizer's Upjohn Business in a Reverse Morris Trust transaction to form Viatris on November 16, 2020
Commercial Paper ProgramThe $1.65 billion unsecured commercial paper program entered into as of November 16, 2020 by Viatris, as issuer, Mylan Inc., Utah Acquisition Sub Inc. and Mylan II B.V., as guarantors, and certain dealers from time to time
CP NotesUnsecured, short-term commercial paper notes issued pursuant to the Commercial Paper Program
Developed Markets segmentViatris’ business segment that includes our operations primarily in the following markets: North America and Europe
DistributionPfizer's distribution to Pfizer stockholders all the issued and outstanding shares of Upjohn Inc.
DOJU.S. Department of Justice
EBITDA
Non-GAAP financial measure that the Company believes is appropriate to provide information to investors - U.S. GAAP net earnings (loss) adjusted for income tax provision (benefit), interest expense and depreciation and amortization
EDPAU.S. District Court for the Eastern District of Pennsylvania
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Emerging Markets segmentViatris’ business segment that includes, but is not limited to, our operations primarily in the following markets: Parts of Asia, the Middle East, South and Central America, Africa, and Eastern Europe
EPS
Earnings per share
EUEuropean Union
Exchange ActSecurities Exchange Act of 1934, as amended
Famy Life SciencesFamy Life Sciences Private Limited
FASBFinancial Accounting Standards Board
FDAU.S. Food and Drug Administration
Form 10-Q
This quarterly report on Form 10-Q for the quarterly period ended March 31, 2024
GA DepotLong-acting glatiramer acetate depot product
Global Systemically Important Banks
Financial institutions that are considered systemically important by the Financial Stability Board
Greater China segmentViatris’ business segment that includes our operations primarily in the following markets: China, Taiwan and Hong Kong
GxGeneric drugs
Idorsia
Idorsia Pharmaceuticals Ltd.
Idorsia Transaction
The transaction between Viatris and Idorsia pursuant to which Viatris acquired the development programs and certain personnel related to selatogrel and cenerimod from Idorsia in exchange for an upfront payment to Idorsia of $350 million, potential development and regulatory milestone payments, certain contingent payments of tiered sales milestones, as well as potential contingent tiered sales royalties
IPR&DIn-process research and development
IRSU.S. Internal Revenue Service
ITInformation technology
JANZ segmentViatris’ business segment that includes our operations in the following markets: Japan, Australia and New Zealand
LillyEli Lilly and Company
MapiMapi Pharma Ltd.
Maximum Leverage RatioThe maximum consolidated leverage ratio financial covenant requiring maintenance of a maximum ratio of 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 from time to time
MDLMultidistrict litigation
MylanMylan N.V. and its subsidiaries
Mylan Inc. U.S. Dollar Notes
The 4.550% Senior Notes due 2028, 5.400% Senior Notes due 2043 and 5.200% Senior Notes due 2048 issued by Mylan Inc., which are fully and unconditionally guaranteed on a senior unsecured basis by Mylan II B.V., Viatris Inc. and Utah Acquisition Sub Inc.
NASDAQThe NASDAQ Stock Market
NDANew drug application
Note Securitization Facility
The note securitization facility entered into in August 2023 for borrowings up to $200 million and expiring in August 2024
OTCOver-the-counter
OTC Business
Viatris’ OTC business that the Company has agreed to divest to Cooper Consumer Health SAS, including two manufacturing sites located in Merignac, France, and Confienza, Italy, and an R&D site in Monza, Italy. This excludes the Company’s rights for Viagra®, Dymista® (which, in certain limited markets, are sold as OTC products), and select OTC products in certain markets.
OTC Transaction
On October 1, 2023, Viatris announced it had received an offer for the divestiture of its OTC Business. In January 2024, we exercised our option to accept the offer and entered into a definitive transaction agreement with respect to such OTC Transaction.
Oyster PointOyster Point Pharma, Inc.
Pending Announced Divestitures
The remaining Announced Divestitures that have not been consummated
PfizerPfizer Inc.
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Table of Contents
PSUsPerformance awards
R&DResearch and development
Receivables Facility
The $400 million accounts receivable facility entered into in August 2020 and expiring in April 2025
Registered Upjohn NotesThe 1.650% Senior Notes due 2025, 2.300% Senior Notes due 2027, 2.700% Senior Notes due 2030, 3.850% Senior Notes due 2040 and 4.000% Senior Notes due 2050 originally issued on October 29, 2021 registered with the SEC in exchange for the corresponding Unregistered Upjohn U.S. Dollar Notes in a similar aggregate principal amount and with terms substantially identical to the corresponding Unregistered Upjohn U.S. Dollar Notes and fully and unconditionally guaranteed by Mylan Inc., Mylan II B.V. and Utah Acquisition Sub Inc.
Respiratory Delivery PlatformPfizer’s proprietary dry powder inhaler delivery platform
Restricted Stock AwardsThe Company’s nonvested restricted stock and restricted stock unit awards, including PSUs
Revolving FacilityThe $4.0 billion revolving facility dated as of July 1, 2021, by and among Viatris, certain lenders and issuing banks from time to time party thereto and Bank of America, N.A., as administrative agent
RICORacketeer Influenced and Corrupt Organizations Act
SanofiSanofi-Aventis U.S., LLC
SARs
Stock appreciation rights
SDNYU.S. District Court for the Southern District of New York
SECU.S. Securities and Exchange Commission
Securities ActSecurities Act of 1933, as amended
Senior U.S. Dollar NotesThe Upjohn U.S. Dollar Notes, the Utah U.S. Dollar Notes and the Mylan Inc. U.S. Dollar Notes, collectively
Separation and Distribution AgreementSeparation and Distribution Agreement between Viatris and Pfizer, dated as of July 29, 2019, as amended from time to time
SG&ASelling, general and administrative expenses
stock awards
Stock options and SARs
TevaTeva Pharmaceutical Industries Ltd.
TSATransition services agreement
U.K.United Kingdom
U.S.United States
U.S. GAAPAccounting principles generally accepted in the U.S.
Unregistered Upjohn U.S. Dollar NotesThe 1.650% Senior Notes due 2025, 2.300% Senior Notes due 2027, 2.700% Senior Notes due 2030, 3.850% Senior Notes due 2040 and 4.000% Senior Notes due 2050 originally issued on June 22, 2020 by Upjohn Inc. (now Viatris Inc.) in a private offering exempt from the registration requirements of the Securities Act and fully and unconditionally guaranteed by Mylan Inc., Mylan II B.V. and Utah Acquisition Sub Inc.
UpjohnUpjohn Inc., a wholly owned subsidiary of Pfizer prior to the Distribution, that combined with Mylan and was renamed Viatris Inc.
Upjohn BusinessPfizer’s off-patent branded and generic established medicines business that, in connection with the Combination, was separated from Pfizer and combined with Mylan to form Viatris
Upjohn Distributor Markets
Select geographic markets that were part of the Combination that are smaller in nature and in which we had no established infrastructure prior to or following the Combination and that the Company has divested or intends to divest
Upjohn U.S. Dollar NotesSenior unsecured notes denominated in U.S. dollars and originally issued by Upjohn Inc. or Viatris Inc. pursuant to an indenture dated June 22, 2020 and fully and unconditionally guaranteed by Mylan Inc., Mylan II B.V. and Utah Acquisition Sub Inc.
Utah Acquisition SubUtah Acquisition Sub Inc., a Delaware corporation and an indirect wholly owned subsidiary of Viatris
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Table of Contents
Utah U.S. Dollar NotesThe 3.950% Senior Notes due 2026 and 5.250% Senior Notes due 2046 issued by Utah Acquisition Sub Inc., which are fully and unconditionally guaranteed on a senior unsecured basis by Mylan Inc., Viatris Inc. and Mylan II B.V.
ViatrisViatris Inc., formerly known as Upjohn Inc. prior to the completion of the Combination
YEN Term Loan FacilityThe ¥40 billion term loan agreement dated as of July 1, 2021, among Viatris, the guarantors from time to time party thereto, the lenders from time to time party thereto and Mizuho Bank, Ltd., as administrative agent
6

Table of Contents
PART I — FINANCIAL INFORMATION

VIATRIS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited; in millions, except per share amounts)
 Three Months Ended
March 31,
 20242023
Revenues:
Net sales$3,653.5 $3,719.1 
Other revenues9.9 10.0 
Total revenues3,663.4 3,729.1 
Cost of sales2,159.4 2,186.9 
Gross profit1,504.0 1,542.2 
Operating expenses:
Research and development199.7 182.9 
Acquired IPR&D 6.1  
Selling, general and administrative1,017.5 958.9 
Litigation settlements and other contingencies, net76.8 0.6 
Total operating expenses1,300.1 1,142.4 
Earnings from operations203.9 399.8 
Interest expense138.4 147.0 
Other income, net(139.1)(69.9)
Earnings before income taxes204.6 322.7 
Income tax provision90.7 98.0 
Net earnings$113.9 $224.7 
Earnings per share attributable to Viatris Inc. shareholders
Basic$0.10 $0.19 
Diluted$0.09 $0.19 
Weighted average shares outstanding:
Basic1,195.2 1,202.5 
Diluted1,209.5 1,205.6 


See Notes to Condensed Consolidated Financial Statements
7


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VIATRIS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive (Loss) Earnings
(Unaudited; in millions)
 Three Months Ended
March 31,
 20242023
Net earnings$113.9 $224.7 
Other comprehensive loss, before tax:
Foreign currency translation adjustment(342.5)45.3 
Change in unrecognized (loss) gain and prior service cost related to defined benefit plans(6.2)1.3 
Net unrecognized gain on derivatives in cash flow hedging relationships28.7 2.8 
Net unrecognized gain (loss) on derivatives in net investment hedging relationships169.1 (66.2)
Net unrealized (loss) gain on available-for-sale fixed income securities(0.3)0.9 
Other comprehensive loss, before tax(151.2)(15.9)
Income tax provision (benefit) 42.4 (12.5)
Other comprehensive loss, net of tax(193.6)(3.4)
Comprehensive (loss) earnings
$(79.7)$221.3 



See Notes to Condensed Consolidated Financial Statements
8


Table of Contents
VIATRIS INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited in millions, except share and per share amounts)
March 31,
2024
December 31,
2023
ASSETS
Assets
Current assets:
Cash and cash equivalents$1,014.6 $991.9 
Accounts receivable, net3,632.0 3,700.4 
Inventories3,823.2 3,469.7 
Prepaid expenses and other current assets1,933.3 2,028.1 
Assets held for sale2,520.4 2,786.0 
Total current assets12,923.5 12,976.1 
Property, plant and equipment, net2,708.2 2,759.6 
Intangible assets, net19,133.7 19,181.1 
Goodwill9,693.5 9,867.1 
Deferred income tax benefit653.2 692.9 
Other assets2,231.6 2,208.7 
Total assets$47,343.7 $47,685.5 
LIABILITIES AND EQUITY
Liabilities
Current liabilities:
Accounts payable$2,196.9 $1,938.2 
Income taxes payable148.4 226.8 
Current portion of long-term debt and other long-term obligations1,898.1 1,943.4 
Liabilities held for sale234.8 275.1 
Other current liabilities3,281.7 3,393.9 
Total current liabilities7,759.9 7,777.4 
Long-term debt16,072.5 16,188.1 
Deferred income tax liability1,671.9 1,735.7 
Other long-term obligations1,825.1 1,516.9 
Total liabilities27,329.4 27,218.1 
Equity
Viatris Inc. shareholders’ equity
Common stock: $0.01 par value, 3,000,000,000 shares authorized; shares issued: 1,230,891,074 and 1,221,994,491 as of March 31, 2024 and December 31, 2023
12.3 12.2 
Additional paid-in capital18,839.8 18,814.7 
Retained earnings4,607.5 4,639.7 
Accumulated other comprehensive loss(2,941.0)(2,747.4)
20,518.6 20,719.2 
Less: Treasury stock — at cost
Common stock shares: 40,483,663 and 21,239,521 as of March 31, 2024 and December 31, 2023
504.3 251.8 
Total equity20,014.3 20,467.4 
Total liabilities and equity$47,343.7 $47,685.5 
See Notes to Condensed Consolidated Financial Statements
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VIATRIS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Equity
(Unaudited; in millions, except share and per share amounts)
Additional Paid-In CapitalRetained
Earnings
Accumulated Other Comprehensive LossTotal
Equity
Common StockTreasury Stock
SharesCostSharesCost
Balance at December 31, 20231,221,994,491 $12.2 $18,814.7 $4,639.7 21,239,521 $(251.8)$(2,747.4)$20,467.4 
Net earnings— — — 113.9 — — — 113.9 
Other comprehensive loss, net of tax— — — — — — (193.6)(193.6)
Issuance of restricted stock and stock options exercised, net 8,842,107 0.1 6.6 — — — — 6.7 
Taxes related to the net share settlement of equity awards— — (28.8)— — — — (28.8)
Share-based compensation expense— — 46.7 — — — — 46.7 
Common stock repurchase— — — — 19,244,142 (252.5)— (252.5)
Issuance of common stock54,476 — 0.6 — — — — 0.6 
Cash dividends declared, $0.12 per common share
— — — (146.1)— — — (146.1)
Balance at March 31, 20241,230,891,074 $12.3 $18,839.8 $4,607.5 40,483,663 $(504.3)$(2,941.0)$20,014.3 
Additional Paid-In CapitalRetained
Earnings
Accumulated Other Comprehensive LossTotal
Equity
Common StockTreasury Stock
SharesCostSharesCost
Balance at December 31, 20221,213,793,231 $12.1 $18,645.8 $5,175.6  $ $(2,761.2)$21,072.3 
Net earnings— — — 224.7 — — — 224.7 
Other comprehensive loss, net of tax— — — — — — (3.4)(3.4)
Issuance of restricted stock and stock options exercised, net 6,350,585 0.1 3.6 — — — — 3.7 
Taxes related to the net share settlement of equity awards— — (19.4)— — — — (19.4)
Share-based compensation expense— — 42.6 — — — — 42.6 
Common stock repurchase— — — — 21,239,521 (251.8)— (251.8)
Issuance of common stock80,388 — 0.9 — — — — 0.9 
Cash dividends declared, $0.12 per common share
— — — (147.8)— — — (147.8)
Other— — 6.1 — — — — 6.1 
Balance at March 31, 20231,220,224,204 $12.2 $18,679.6 $5,252.5 21,239,521 $(251.8)$(2,764.6)$20,927.9 


See Notes to Condensed Consolidated Financial Statements
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VIATRIS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited; in millions)
Three Months Ended
March 31,
 20242023
Cash flows from operating activities:
Net earnings$113.9 $224.7 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization691.0 730.0 
Share-based compensation expense46.7 42.6 
Deferred income tax benefit(51.9)(26.7)
Gain on disposal of business
(70.4) 
Acquired IPR&D
(5.2) 
Other non-cash items(3.0)29.6 
Litigation settlements and other contingencies, net80.3 2.4 
Changes in operating assets and liabilities:
Accounts receivable9.8 215.0 
Inventories(370.4)(151.1)
Accounts payable287.9 183.4 
Income taxes(2.3)(53.9)
Other operating assets and liabilities, net(111.8)(224.8)
Net cash provided by operating activities614.6 971.2 
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired(350.0)(667.7)
Capital expenditures(49.8)(47.8)
Purchase of marketable securities(7.7)(9.0)
Proceeds from the sale of marketable securities7.7 9.0 
Payments for product rights and other, net(1.0)(34.7)
Refund of IPR&D
5.2  
Proceeds from sale of assets and subsidiaries
240.6  
Proceeds from the sale of property, plant and equipment
0.7 0.7 
Net cash used in investing activities(154.3)(749.5)
Cash flows from financing activities:
Payments of long-term debt (750.1)
Purchase of common stock(250.0)(250.0)
Change in short-term borrowings, net 204.6 
Taxes paid related to net share settlement of equity awards(28.7)(30.0)
Contingent consideration payments(10.9)(8.4)
Cash dividends paid(142.8)(143.8)
Non-contingent payments for product rights (9.7)
Issuance of common stock 0.6 0.9 
Other items, net6.2 11.8 
Net cash used in financing activities(425.6)(974.7)
Effect on cash of changes in exchange rates(12.4)1.2 
Net increase (decrease) in cash, cash equivalents and restricted cash22.3 (751.8)
Cash, cash equivalents and restricted cash — beginning of period993.6 1,262.5 
Cash, cash equivalents and restricted cash — end of period$1,015.9 $510.7 
See Notes to Condensed Consolidated Financial Statements
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VIATRIS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)

1.General
The accompanying unaudited condensed consolidated financial statements (“interim financial statements”) of Viatris Inc. and subsidiaries were prepared in accordance with U.S. GAAP and the rules and regulations of 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 loss, financial position, equity and cash flows for the periods presented.
These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto in Viatris’ 2023 Form 10-K. The December 31, 2023 condensed consolidated balance sheet was derived from audited financial statements.
The interim results of operations, comprehensive loss and cash flows for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full fiscal year or any other future period.
Beginning in 2024, upfront and milestone payments related to externally developed IPR&D projects acquired directly in a transaction other than a business combination, which were previously included in cash flows from operating activities in the condensed consolidated statements of cash flows, are now classified as cash flows from investing activities. There were no upfront and milestone payments in the prior year period.

2.Revenue Recognition and Accounts Receivable
The Company recognizes revenues in accordance with ASC 606, Revenue from Contracts with Customers. 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 revenues in the condensed consolidated statements of operations.
The following table presents the Company’s net sales by product category for each of our reportable segments for the three months ended March 31, 2024 and 2023, respectively:
(In millions)Three Months Ended March 31, 2024
Product CategoryDeveloped MarketsGreater ChinaJANZEmerging MarketsTotal
Brands$1,178.8 $541.8 $184.1 $404.4 $2,309.1 
Generics986.6 2.1 133.7 222.0 1,344.4 
Total Viatris$2,165.4 $543.9 $317.8 $626.4 $3,653.5 

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VIATRIS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(In millions)Three Months Ended March 31, 2023
Product CategoryDeveloped MarketsGreater ChinaJANZEmerging MarketsTotal
Brands$1,232.0 $562.4 $190.3 $435.6 $2,420.3 
Generics938.4 2.2 151.9 206.3 1,298.8 
Total Viatris$2,170.4 $564.6 $342.2 $641.9 $3,719.1 
____________
(a)Amounts for the three months ended March 31, 2024 include the impact of foreign currency translations compared to the prior year period.
(b)Complex Gx, which were previously presented as a separate line item in the prior year period, are now included within Generics. Reclassifications were made to prior periods to conform to the current period presentation.

The following table presents net sales on a consolidated basis for select key products for the three months ended March 31, 2024 and 2023, respectively:
Three months ended March 31,
(In millions)20242023
Select Key Global Products
Lipitor ®
$388.9 $417.9 
Norvasc ®176.3 202.7 
Lyrica ®114.2 144.3 
Viagra ®100.7 115.0 
EpiPen® Auto-Injectors80.2 95.8 
Creon ®75.0 72.7 
Celebrex ®
72.2 88.8 
Effexor ®
59.4 64.6 
Zoloft ®
58.0 56.5 
Xalabrands42.5 46.7 
Select Key Segment Products
Yupelri ®$55.2 $47.0 
Dymista ®48.2 53.2 
Xanax ®34.5 39.7 
Amitiza ®33.0 36.6 
____________
(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 three months ended March 31, 2024 include the impact of foreign currency translations compared to the prior year period.
(d)Refer to intellectual property matters included in Note 17 Litigation for additional information regarding Yupelri® and Amitiza®.
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VIATRIS INC. 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, 2024 and 2023, respectively:
Three Months Ended
March 31,
(In millions)20242023
Gross sales$6,174.6 $6,273.0 
Gross to net adjustments:
Chargebacks(1,244.2)(1,350.7)
Rebates, promotional programs and other sales allowances(1,048.3)(992.2)
Returns(60.3)(50.4)
Governmental rebate programs(168.3)(160.6)
Total gross to net adjustments$(2,521.1)$(2,553.9)
Net sales$3,653.5 $3,719.1 
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, 2024. Such allowances were comprised of the following at March 31, 2024 and December 31, 2023, respectively:
(In millions)March 31,
2024
December 31,
2023
Accounts receivable, net$1,482.5 $1,483.6 
Other current liabilities1,008.8 996.3 
Total$2,491.3 $2,479.9 
Accounts receivable, net was comprised of the following at March 31, 2024 and December 31, 2023, respectively:
(In millions)March 31,
2024
December 31,
2023
Trade receivables, net$2,790.0 $2,823.8 
Other receivables842.0 876.6 
Accounts receivable, net$3,632.0 $3,700.4 
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 $64.2 million and $30.8 million of accounts receivable as of March 31, 2024 and December 31, 2023, respectively, under these factoring arrangements. Additionally, in 2023, we entered into a similar arrangement for certain European countries. As of March 31, 2024 and December 31, 2023, we have assigned and derecognized approximately $285.6 million and $415.7 million, respectively, of Trade Receivables, Net, which are now included in Other Receivables.

3.Recent Accounting Pronouncements
Accounting Standards and Disclosure Rules Issued Not Yet Adopted
In March 2024, the SEC adopted final rules under SEC Release No. 34-99678 and No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors” (the “Final Rules”), which will require registrants to provide certain climate-related information in their registration statements and annual reports. The Final Rules require, among other
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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
things, disclosure in the notes to the audited financial statements of the effects of severe weather events and other natural conditions, subject to certain thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates in certain circumstances. The Final Rules will also require disclosure outside of the financial statements of material scope 1 and scope 2 greenhouse gas emissions, among other climate-related disclosures. The disclosure requirements of the Final Rules will begin phasing in for the Company for fiscal year 2025. In April 2024, the SEC stayed the effectiveness of the Final Rules. The Company is currently assessing the impact of the new rules on its consolidated financial statements and disclosures.

There were no other significant changes in new accounting standards from those disclosed in Viatris’ 2023 Form 10-K. Refer to Viatris’ 2023 Form 10-K for additional information.

4.Acquisitions and Other Transactions
Idorsia
On March 15, 2024, the Company acquired the development programs and certain personnel related to selatogrel and cenerimod from Idorsia in exchange for an upfront payment to Idorsia of $350 million, potential milestone payments (including $300 million payable upon the achievement of certain development and regulatory milestones, and $2.1 billion payable upon the achievement of certain tiered sales milestones), as well as potential contingent tiered sales royalties. Viatris and Idorsia are both contributing to the development costs for both programs. Viatris has worldwide commercialization rights for both selatogrel and cenerimod (excluding, for cenerimod only, Japan, South Korea and certain countries in the Asia-Pacific region). A joint development committee is overseeing the development of the ongoing Phase 3 programs through regulatory approval. The agreements also provide Viatris a right of first refusal and a right of first negotiation for certain other assets in Idorsia’s pipeline. The transaction expands our portfolio of innovative assets by adding two Phase 3 assets and combines our financial strength and worldwide operational infrastructure with Idorsia’s proven, highly-productive drug development team and innovation engine.

In accordance with U.S. GAAP, the transaction has been accounted for as a business combination under the acquisition method of accounting. Under the acquisition method of accounting, the assets acquired and liabilities assumed in the transaction were recorded at their respective estimated fair values at the acquisition date. During the three months ended March 31, 2024, the Company incurred acquisition-related costs of approximately $0.3 million, which were recorded primarily in SG&A in the condensed consolidated statements of operations.
The U.S. GAAP purchase price allocated to the transaction was $695 million, which consisted of $350 million of cash consideration paid and estimated contingent consideration at the date of acquisition valued at approximately $345 million. The fair value of the contingent consideration was valued using a Monte Carlo simulation model using Level 3 inputs. The fair value is sensitive to changes in the forecasts of operating metrics, probability of success, and discount rates. Refer to Note 11, Financial Instruments and Risk Management, for additional information. The preliminary allocation of the purchase price to the assets acquired and liabilities assumed is as follows:
(In millions)
Current assets
$2.1 
IPR&D675.0 
Goodwill19.5 
Total assets acquired$696.6 
Current liabilities1.6 
Net assets acquired
$695.0 

The preliminary fair value estimates for the assets acquired and liabilities assumed were based upon preliminary calculations, valuations and assumptions that are subject to change as the Company obtains additional information during the measurement period (up to one year from the acquisition date). The primary areas subject to change relate to the finalization of the valuation of IPR&D, contingent consideration, and income taxes.
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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
The amount allocated to IPR&D represents an estimate of the fair value of purchased in-process technology for research projects that, as of the closing date of the acquisition, had not reached technological feasibility and had no alternative future use. The fair value of IPR&D of $675 million was based on the excess earnings method, which utilizes forecasts of expected cash inflows (including estimates for ongoing costs) and other contributory charges. A discount rate of 20% was utilized to discount net cash inflows to present values. IPR&D is accounted for as an indefinite-lived intangible asset and will be subject to impairment testing until completion or abandonment of the projects. Upon successful completion and launch of each product, the Company will make a determination of the estimated useful life of the individual asset. Viatris and Idorsia will both contribute to the development costs for both programs, which are expected to be incurred through 2026. There are risks and uncertainties associated with the timely and successful completion of the projects included in IPR&D, and no assurances can be given that the underlying assumptions used to estimate the fair value of IPR&D will not change or the timely completion of each project to commercial success will occur.
The goodwill of $19.5 million arising from the acquisition consisted largely of the value of the employee workforce and the expected value of products to be developed in the future. All of the goodwill was assigned to the Developed Markets segment. None of the goodwill recognized in this transaction is currently expected to be deductible for income tax purposes. The acquisition did not have a material impact on the Company’s results of operations since the acquisition date or on a pro forma basis for the three months ended March 31, 2024 and 2023.

5.Divestitures
On October 1, 2023, the Company announced it received an offer for the divestiture of its OTC Business, and entered into definitive agreements to divest its women’s healthcare business and, separately, in another transaction, its rights to two women’s healthcare products in certain countries, its API business in India and commercialization rights in the Upjohn Distributor Markets. The OTC, API and women’s healthcare businesses are deemed businesses for U.S. GAAP accounting purposes. As such, the assets and liabilities include an allocation of goodwill. The sale of the rights to two women’s healthcare products in certain countries was accounted for as an asset sale. In conjunction with these transactions, Viatris and the respective buyers have entered or will enter into various agreements to provide a framework for our relationship with the respective buyers after the closing of the divestitures, including TSAs, manufacturing and supply agreements, and distribution agreements, as necessary.

During the three months ended March 31, 2024 and 2023, the Company recognized TSA income related to the divestitures of approximately $13.4 million and $45.7 million, respectively, as a component of Other Income, Net.

Women’s Healthcare
In the third quarter of 2023, Viatris executed an agreement to divest its women’s healthcare business, primarily related to oral and injectable contraceptives, to Insud Pharma, S. L., a leading Spanish multinational pharmaceutical company. The divestiture of the women’s healthcare business is primarily related to our oral and injectable contraceptives and does not include all of our women’s healthcare related products; as an example, our Xulane® product in the U.S. is excluded. The transaction includes two manufacturing facilities in India. Assets and liabilities associated with the women’s healthcare business to be divested were classified as held for sale in the consolidated balance sheet as of December 31, 2023. The transaction closed in March 2024 and upon closing, the Company recognized a pre-tax gain on sale of approximately $80.8 million for the difference between the consideration received and the carrying value of the assets transferred (including an allocation of goodwill). The gain was recorded as a component of Other Income, Net in the condensed consolidated statement of operations during the three months ended March 31, 2024.

In the third quarter of 2023, Viatris also entered into a separate agreement to divest its rights to women’s healthcare products Duphaston® and Femoston® in certain countries to Theramex HQ UK Limited, a leading global specialty pharmaceutical company dedicated to women’s health. The transaction (other than in the U.K., which remains subject to regulatory approval) closed in December 2023, and upon closing, the Company recognized a pre-tax gain on sale of approximately $156.2 million in that quarter for the difference between the consideration received and the carrying value of the assets transferred. The gain was recorded as a component of SG&A expense in the consolidated statement of operations during the year ended December 31, 2023.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
OTC
On October 1, 2023, Viatris received an offer from Cooper Consumer Health SAS, a leading European OTC drug manufacturer and distributor, for Viatris to divest its OTC Business, including two manufacturing sites located in Merignac, France, and Confienza, Italy, and an R&D site in Monza, Italy. In January 2024, we exercised our option to accept the offer in the OTC Transaction and entered into a definitive transaction agreement with respect to such OTC Transaction. The Company will retain rights for Viagra®, Dymista® (which, in certain limited markets, are sold as OTC products) and select OTC products in certain markets. The Company currently expects the OTC Transaction to close by mid-year 2024. The transaction remains subject to regulatory approvals, receipt of required consents and other closing conditions.

The OTC Business to be divested met the criteria to be classified as held for sale on October 1, 2023. As such, the related assets and liabilities were classified as held for sale in the condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023. Upon classification as held for sale in the fourth quarter of 2023, we recognized a total charge of approximately $734.7 million, which was comprised of a goodwill impairment charge of approximately $580.1 million (recorded as a component of SG&A expense), and a charge of approximately $154.7 million to write down the disposal group to fair value, less cost to sell (recorded as a component of Other Income, Net) in the consolidated statement of operations.

API
On October 1, 2023, Viatris executed an agreement to divest its API business in India to Matrix Pharma Private Limited, an affiliate of IQuest Enterprises Private Limited, a privately held pharmaceutical company based in India. The transaction includes three manufacturing sites and a R&D lab in Hyderabad, three manufacturing sites in Vizag and third-party API sales. Viatris will retain some selective R&D capabilities in API. The API business in India met the criteria to be classified as held for sale on October 1, 2023 and the related assets and liabilities were reclassified as held for sale in the consolidated balance sheet as of December 31, 2023. The transaction is expected to close imminently. The Company recognized a pre-tax charge of approximately $10.4 million to write down the disposal group to fair value, less cost to sell (recorded as a component of Other Income, Net) in the condensed consolidated statement of operations.

Upjohn Distributor Markets
In the fourth quarter of 2022, the commercialization rights in the Upjohn Distributor Markets met the criteria to be classified as held for sale. Upon classification as held for sale, the Company recognized a total charge of $374.2 million in 2022, which was comprised of a goodwill impairment charge of $117.0 million, other charges, principally inventory write-offs, of $84.3 million and a charge of approximately $172.9 million to write down the disposal group to fair value, less cost to sell. During the year ended December 31, 2023, the Company recorded additional charges totaling $136.4 million, primarily consisting of losses on the disposals of $85.2 million, which were recorded as a component of Other Income, Net. The additional charges include inventory reserves of $9.2 million and an intangible asset charge of $32.0 million to write down the disposal group to fair value, less cost to sell, in each case during the three months ended March 31, 2023. The divestitures of the commercialization rights in certain of the Upjohn Distributor Markets closed during 2023 and the remaining transactions are expected to be completed during 2024. If the remaining transactions are not completed, the distribution arrangements will expire in accordance with our agreement with Pfizer and the Company will wind down operations in these markets, which may result in additional asset write-offs and other costs being incurred.

Biocon Biologics Transaction
On November 29, 2022, Viatris completed a transaction to contribute its biosimilars portfolio to Biocon Biologics. Under the terms of the Biocon Agreement, Viatris received $3 billion in consideration in the form of a $2 billion cash payment, adjusted as set forth in the Biocon Agreement, and approximately $1 billion of CCPS representing a stake of approximately 12.9% (on a fully diluted basis) in Biocon Biologics. During the three months ended March 31, 2024 and 2023, the Company recorded a gain of $46.9 million and a loss of $2.6 million, respectively, as a component of Other Income, Net, as a result of remeasuring the CCPS in Biocon Biologics to fair value. The Company’s CCPS in Biocon Biologics are classified as equity securities and are included in Other Assets in the condensed consolidated balance sheets. The fair value is reassessed quarterly. Refer to Note 11 Financial Instruments and Risk Management for further discussion. Viatris also is entitled to $335 million of additional cash payments in 2024. In addition, Viatris and Biocon Biologics have agreed to a closing working capital target of $250 million, of which $220 million was paid during 2023. Refer to Note 8 Balance Sheet Components for additional information on assets and liabilities related to Biocon Biologics.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
At the time of closing of the Biocon Biologics Transaction, Viatris and Biocon Biologics also entered an agreement pursuant to which Viatris was providing commercialization and certain other transition services on behalf of Biocon Biologics, including billings, collections, and the remittance of rebates, to ensure business continuity for patients, customers and colleagues. Biocon Biologics had substantially exited all transition services with Viatris as of December 31, 2023.

Assets and Liabilities Held for Sale
Assets and liabilities held for sale consisted of the following:
(In millions)March 31, 2024December 31, 2023
Assets held for sale
Accounts receivable, net$57.6 $112.1 
Inventories408.9 422.4 
Prepaid expenses and other current assets5.0 7.5 
Property, plant and equipment, net239.0 262.2 
Intangible assets, net1,846.5 1,946.0 
Goodwill119.1 188.0 
Other assets3.3 5.1 
Valuation allowance on assets held for sale(159.0)(157.3)
Total assets held for sale$2,520.4 $2,786.0 
Liabilities held for sale
Accounts payable$126.2 $137.4 
Other current liabilities34.0 35.3 
Deferred income tax liability48.8 77.2 
Other long-term obligations25.8 25.2 
Total liabilities held for sale$234.8 $275.1 

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
6.Share-Based Incentive Plan
Prior to the Distribution, Viatris adopted and Pfizer, in the capacity as Viatris’ sole stockholder at such time, approved the 2020 Incentive Plan (the Viatris Inc. 2020 Stock Incentive Plan) which became effective as of the Distribution. In connection with the Combination, as of November 16, 2020, the Company assumed the 2003 LTIP (Mylan N.V. Amended and Restated 2003 Long-Term Incentive Plan), which had previously been approved by Mylan shareholders. The 2020 Incentive Plan includes 72,500,000 shares of Viatris’ common stock authorized for grant pursuant to the 2020 Incentive Plan, which may include dividend payments payable in common stock on unvested shares granted under awards. No shares remain available for issuance under the 2003 LTIP, however, certain awards remain outstanding under the plan.
Under the 2020 Incentive Plan, 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, SARs, restricted stock and units, PSUs, 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 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 awards (stock options and SARs) activity:
Number of Shares Under Stock AwardsWeighted Average Exercise Price per Share
Outstanding at December 31, 20234,159,333 $37.41 
Exercised(18,012)9.02 
Forfeited(417,916)$53.13 
Outstanding at March 31, 20243,723,405 $35.79 
Vested and expected to vest at March 31, 20243,707,337 $35.90 
Exercisable at March 31, 20243,597,026 $36.72 
As of March 31, 2024, stock awards outstanding, stock awards vested and expected to vest, and stock awards exercisable had average remaining contractual terms of 3.8 years, 3.7 years and 3.6 years, respectively. Also, at March 31, 2024, stock awards outstanding, stock awards vested and expected to vest, and stock awards exercisable had aggregate intrinsic values of $0.8 million, $0.8 million, and $0.4 million, respectively.
A rollforward of the changes in the Company’s nonvested Restricted Stock Awards (restricted stock and restricted stock unit awards, including PSUs) from December 31, 2023 to March 31, 2024 is presented below:
Number of Restricted Stock AwardsWeighted Average Grant-Date Fair Value Per Share
Nonvested at December 31, 202331,096,783 $11.20 
Granted13,326,359 12.38 
Released(10,336,912)11.92 
Forfeited(1,305,912)11.00 
Nonvested at March 31, 202432,780,318 $11.46 
As of March 31, 2024, the Company had $287.6 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 Restricted Stock Awards released and stock options exercised during the three months ended March 31, 2024 and 2023 was $129.0 million and $100.8 million, respectively.

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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
7.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. Employees in the U.S., Puerto Rico and certain international locations are also 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, 2024 and 2023 were as follows:
Pension and Other Postretirement Benefits
Three Months Ended
March 31,
(In millions)20242023
Service cost$7.9 $7.1 
Interest cost16.6 18.3 
Expected return on plan assets(16.9)(16.4)
Amortization of prior service costs0.5  
Recognized net actuarial gains(4.3)(5.0)
Net periodic benefit cost$3.8 $4.0 
The Company is making the minimum mandatory contributions to its defined benefit pension plans in the U.S. and Puerto Rico for the 2024 plan year. The Company expects to make total benefit payments of approximately $114.4 million from pension and other postretirement benefit plans in 2024. The Company anticipates making contributions to pension and other postretirement benefit plans of approximately $61.3 million in 2024.

8.Balance Sheet Components
Selected balance sheet components consist of the following:
Cash and restricted cash
(In millions)March 31,
2024
December 31,
2023
March 31, 2023
Cash and cash equivalents$1,014.6 $991.9 $506.6 
Restricted cash, included in prepaid expenses and other current assets1.3 1.7 4.1 
Cash, cash equivalents and restricted cash$1,015.9 $993.6 $510.7 
Inventories
(In millions)March 31,
2024
December 31,
2023
Raw materials$686.7 $731.7 
Work in process1,097.5 602.1 
Finished goods2,039.0 2,135.9 
Inventories$3,823.2 $3,469.7 
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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
Prepaid expenses and other current assets
(In millions)March 31,
2024
December 31, 2023
Prepaid expenses$178.9 $155.9 
Deferred consideration due from Biocon Biologics
328.3 321.2 
Available-for-sale fixed income securities38.7 37.0 
Fair value of financial instruments73.3 106.2 
Equity securities52.1 49.3 
Deferred charge for taxes on intercompany profit
701.8 747.3 
Income tax receivable
310.7 340.2 
Other current assets249.5 271.0 
Prepaid expenses and other current assets$1,933.3 $2,028.1 
Prepaid expenses consist primarily of prepaid rent, insurance and other individually insignificant items.
Property, plant and equipment, net
(In millions)March 31,
2024
December 31, 2023
Machinery and equipment$2,745.8 $2,774.5 
Buildings and improvements1,438.8 1,444.4 
Construction in progress406.5 431.2 
Land and improvements114.6 120.2 
Gross property, plant and equipment4,705.7 4,770.3 
Accumulated depreciation1,997.5 2,010.7 
Property, plant and equipment, net$2,708.2 $2,759.6 
Other assets
(In millions)March 31,
2024
December 31, 2023
Non-marketable equity investments$165.7 $165.7 
CCPS in Biocon Biologics1,023.2 976.3 
Operating lease right-of-use assets242.1 245.6 
Other long-term assets800.6 821.1 
Other assets$2,231.6 $2,208.7 
Accounts payable
(In millions)March 31,
2024
December 31, 2023
Trade accounts payable$1,584.0 $1,381.4 
Other payables612.9 556.8 
Accounts payable$2,196.9 $1,938.2 



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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
Other current liabilities
(In millions)March 31,
2024
December 31, 2023
Accrued sales allowances$1,008.8 $996.3 
Legal and professional accruals, including litigation accruals321.6 244.0 
Payroll and employee benefit liabilities598.2 844.5 
Contingent consideration (1)
105.2 76.1 
Accrued restructuring29.9 36.4 
Accrued interest204.7 66.8 
Fair value of financial instruments70.1 124.6 
Operating lease liability91.8 83.0 
Other851.4 922.2 
Other current liabilities$3,281.7 $3,393.9 
Other long-term obligations
(In millions)March 31,
2024
December 31, 2023
Employee benefit liabilities$495.1 $504.3 
Contingent consideration (2)
464.7 139.0 
Tax related items, including contingencies406.3 399.3 
Operating lease liability156.2 165.4 
Accrued restructuring57.9 59.2 
Other244.9 249.7 
Other long-term obligations$1,825.1 $1,516.9 
(1)    Balance as of March 31, 2024 includes $30.0 million due to Biocon Biologics. Refer to Note 11 Financial Instruments and Risk Management for additional information.
(2)    Balance as of March 31, 2024 includes $345 million related to the Idorsia Transaction. Refer to Note 4 Acquisitions and Other Transactions for additional information.
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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
9.Earnings per Share
Basic earnings per share is computed by dividing net earnings attributable to holders of Viatris Inc. common stock by the weighted average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net earnings attributable to holders of Viatris Inc. common stock by the weighted average number of 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 per share attributable to Viatris Inc. are calculated as follows:
 Three Months Ended
March 31,
(In millions, except per share amounts)20242023
Basic earnings attributable to Viatris Inc. common shareholders (numerator):
Net earnings attributable to Viatris Inc. common shareholders$113.9 $224.7 
Shares (denominator):
Weighted average shares outstanding1,195.2 1,202.5 
Basic earnings per share attributable to Viatris Inc. shareholders$0.10 $0.19 
Diluted earnings attributable to Viatris Inc. common shareholders (numerator):
Net earnings attributable to Viatris Inc. common shareholders$113.9 $224.7 
Shares (denominator):
Weighted average shares outstanding1,195.2 1,202.5 
Share-based awards14.3 3.1 
Total dilutive shares outstanding1,209.5 1,205.6 
Diluted earnings per share attributable to Viatris Inc. shareholders$0.09 $0.19 
Additional stock awards and Restricted Stock Awards were outstanding during the three months ended March 31, 2024 and 2023, but were not included in the computation of diluted earnings per share for each respective period because the effect would be anti-dilutive. Excluded shares at March 31, 2024 also include certain share-based compensation awards and restricted shares whose performance conditions had not been fully met. Such excluded shares and anti-dilutive awards represented 7.9 million shares and 13.9 million shares for the three months ended March 31, 2024 and 2023, respectively.
The Company paid a quarterly dividend of $0.12 per share on the Company’s issued and outstanding common stock on March 18, 2024. On May 6, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share on the Company’s issued and outstanding common stock, which will be payable on June 14, 2024 to shareholders of record as of the close of business on May 24, 2024. The declaration and payment of future dividends to holders of the Company’s common stock will be at the discretion of the Board of Directors, and will depend upon factors, including but not limited to, the Company’s financial condition, earnings, capital requirements of its businesses, legal requirements, regulatory constraints, industry practice, and other factors that the Board of Directors deems relevant.
On February 28, 2022, the Company announced that its Board of Directors had authorized a share repurchase program for the repurchase of up to $1.0 billion of the Company’s shares of common stock. The Company subsequently announced that on February 26, 2024, its Board of Directors authorized a $1.0 billion increase to the Company’s previously announced $1.0 billion share repurchase program. As a result, the Company’s share repurchase program now authorizes the repurchase of up to $2.0 billion of the Company’s shares of common stock. Such repurchases may be made from time-to-time at the Company’s discretion and effected by any means, including but not limited to, open market repurchases, pursuant to plans in accordance with Rules 10b5-1 or 10b-18 under the Exchange Act, privately negotiated transactions (including accelerated stock repurchase programs) or any combination of such methods as the Company deems appropriate. The program does not have an expiration date. During the three months ended March 31, 2024 and 2023, the Company repurchased approximately 19.2 million shares of common stock at a cost of approximately $250 million and approximately 21.2 million shares of common stock at a cost of approximately $250 million, respectively, under the program. As of March 31, 2024, the Company had repurchased a total of $500 million in shares under the program. The share repurchase program does not obligate the Company to acquire any particular amount of common stock.
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Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

10.Goodwill and Intangible Assets
Goodwill
The changes in the carrying amount of goodwill for the three months ended March 31, 2024 are as follows:
(In millions)
Developed Markets (1)
Greater China
JANZ (2)
Emerging Markets (3)
Total
Balance at December 31, 2023:7,107.4 932.8 645.7 1,181.2 9,867.1 
Acquisitions19.5    19.5 
Foreign currency translation(153.5)(7.5)(24.6)(7.5)(193.1)
Balance at March 31, 2024:$6,973.4 $925.3 $621.1 $1,173.7 $9,693.5 
____________
(1)Balances as of March 31, 2024 and December 31, 2023 include an accumulated impairment loss of $929.0 million.
(2)Balances as of March 31, 2024 and December 31, 2023 include an accumulated impairment loss of $30.0 million.
(3)Balances as of March 31, 2024 and December 31, 2023 include an accumulated impairment loss of $124.0 million.
Intangible Assets, Net
Intangible assets consist of the following components at March 31, 2024 and December 31, 2023:
(In millions)Weighted Average Life (Years)Original CostAccumulated AmortizationNet Book Value
March 31, 2024
Product rights, licenses and other (1)
13$33,830.4 $15,690.8 $18,139.6 
In-process research and development994.1 — 994.1 
$34,824.5 $15,690.8 $19,133.7 
December 31, 2023
Product rights, licenses and other (1)
13$34,178.1 $15,316.4 $18,861.7 
In-process research and development319.4 — 319.4 
$34,497.5 $15,316.4 $19,181.1 
____________
(1)Represents amortizable intangible assets. Other intangible assets consist principally of customer lists and contractual rights.
During the three months ended March 31, 2024, the Company recorded IPR&D of approximately $675.0 million as part of the Idorsia Transaction. Refer to Note 4 Acquisitions and Other Transactions for additional information.

Amortization expense and intangible asset disposal & impairment charges (which are included as a component of amortization expense) are classified primarily within Cost of Sales in the condensed consolidated statements of operations and were as follows for the three months ended March 31, 2024 and 2023:
Three Months Ended
March 31,
(In millions)20242023
Intangible asset amortization expense$601.0 $603.3 
Intangible asset disposal & impairment charges