Viatris IncVTRS
Viatris Inc Segments Disclosure
Segment Information
Viatris has four reportable segments: Developed Markets, Greater China, JANZ, and Emerging Markets. The Company reports segment information on the basis of markets and geography, which reflects its focus on bringing its large and diversified portfolio of branded and generic products, including complex products, to people in markets everywhere. Our Developed Markets segment comprises our operations primarily in North America and Europe. Our Greater China segment includes our operations in mainland China, Taiwan and Hong Kong. Our JANZ segment consists of our operations in Japan, Australia and New Zealand. Our Emerging Markets segment encompasses our presence in more than 125 countries with developing markets and emerging economies including in Asia, Africa, Eastern Europe, Latin America and the Middle East as well as the Company’s ARV franchise.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer, who evaluates the performance of its segments and allocates resources based on total revenues and our measure of segment profit or loss, segment profitability. These financial metrics are used to review operating trends, perform comparisons between periods, and monitor budget and forecast-to-actual variances on a regular basis. Net sales of our business segments exclude intersegment sales as these activities are not regularly reviewed by the CODM and are eliminated in consolidation.
Certain costs and gains are not included in the measurement of segment profitability, or in segment cost of sales, and segment SG&A, as management excludes these costs in assessing segment financial performance. Such costs and gains include:
◦Intangible asset amortization expense;
◦Asset impairments (including of goodwill, intangible assets (including IPR&D), and long-lived assets);
◦R&D and Acquired IPR&D expense;
◦Net charges or net gains for litigation settlements and other contingencies;
◦Certain costs related to transactions and events such as: (i) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory and property, plant and equipment; (ii) share-based compensation expense; (iii) acquisition-related costs, where we incur costs for executing the transaction, integrating the acquired operations and restructuring the combined company; and (iv) other significant items, which are substantive and/or unusual, and in some cases recurring, items (such as restructuring, including costs associated with facilities to be closed or divested, employee separation costs, impairment charges, accelerated depreciation, incremental manufacturing variances, equipment relocation costs, decommissioning and other restructuring related costs, and certain remediation costs) that are evaluated on an individual basis by management and that either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such special items can include, but are not limited to, non-acquisition-related restructuring costs, as well as costs incurred for asset impairments and costs, as well as gains and losses, related to disposals of assets or businesses, including those related to divestitures, and, as applicable, any associated transition activities;
◦Corporate and other unallocated costs associated with global functions (such as IT, facilities, legal, finance, human resources, insurance, public affairs, compliance, and procurement), patient advocacy activities and certain compensation and other corporate costs (such as certain expenses associated with our manufacturing, including manufacturing variances associated with production) and operations that are not directly assessed to an operating segment as business unit (segment) management does not manage these costs;
◦Other Expense (Income), Net (including interest and dividend income, gains and losses from investments, business divestitures, and foreign exchange); and
◦Interest expense.
The Company does not report depreciation expense, total assets and capital expenditures by segment, as such information is not used by the CODM.
The accounting policies of the segments are the same as those described in Note 2 Summary of Significant Accounting Policies.
Presented in the table below is segment information for the periods identified and a reconciliation of segment information to total consolidated information.
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
(In millions) | Developed Markets | Greater China | JANZ | Emerging Markets | Total Reportable Segments | |||||||||||||||||||||||||||
Net sales | $ | 8,514.0 | $ | 2,332.5 | $ | 1,193.8 | $ | 2,210.1 | $ | 14,250.4 | ||||||||||||||||||||||
Other revenues | 38.1 | — | 3.9 | 7.5 | 49.5 | |||||||||||||||||||||||||||
Total revenues | $ | 8,552.1 | $ | 2,332.5 | $ | 1,197.7 | $ | 2,217.6 | $ | 14,299.9 | ||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Cost of sales | 4,090.5 | 250.6 | 734.3 | 967.2 | ||||||||||||||||||||||||||||
Selling, general and administration | 967.9 | 512.2 | 158.9 | 310.0 | ||||||||||||||||||||||||||||
Segment profit | $ | 3,493.7 | $ | 1,569.7 | $ | 304.5 | $ | 940.4 | $ | 6,308.3 | ||||||||||||||||||||||
Reconciliation of segment profit: | ||||||||||||||||||||||||||||||||
Intangible asset amortization expense | (2,349.8) | |||||||||||||||||||||||||||||||
Intangible asset (including IPR&D) disposal & impairment charges | (73.9) | |||||||||||||||||||||||||||||||
Impairment of goodwill | (2,936.8) | |||||||||||||||||||||||||||||||
Research and development | (965.9) | |||||||||||||||||||||||||||||||
Acquired IPR&D | (48.3) | |||||||||||||||||||||||||||||||
Litigation settlements and other contingencies, net | 68.5 | |||||||||||||||||||||||||||||||
Transaction related and other special items | (1,088.2) | |||||||||||||||||||||||||||||||
Corporate and other unallocated | (1,577.0) | |||||||||||||||||||||||||||||||
| Loss from operations | $ | (2,663.1) | ||||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| (In millions) | Developed Markets | Greater China | JANZ | Emerging Markets | Total Reportable Segments | |||||||||||||||||||||||||||
Net sales | $ | 8,929.4 | $ | 2,166.5 | $ | 1,346.2 | $ | 2,250.7 | $ | 14,692.8 | ||||||||||||||||||||||
Other revenues | 32.0 | 1.3 | 3.5 | 9.7 | 46.5 | |||||||||||||||||||||||||||
Total revenues | $ | 8,961.4 | $ | 2,167.8 | $ | 1,349.7 | $ | 2,260.4 | $ | 14,739.3 | ||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Cost of sales | 4,014.3 | 245.7 | 798.3 | 1,016.4 | ||||||||||||||||||||||||||||
Selling, general and administration | 1,097.0 | 518.5 | 168.3 | 309.9 | ||||||||||||||||||||||||||||
Segment profit | $ | 3,850.1 | $ | 1,403.6 | $ | 383.1 | $ | 934.1 | $ | 6,570.9 | ||||||||||||||||||||||
Reconciliation of segment profit: | ||||||||||||||||||||||||||||||||
Intangible asset amortization expense | (2,351.5) | |||||||||||||||||||||||||||||||
Intangible asset (including IPR&D) disposal & impairment charges | (184.6) | |||||||||||||||||||||||||||||||
Impairment of goodwill | (321.0) | |||||||||||||||||||||||||||||||
Research and development | (808.7) | |||||||||||||||||||||||||||||||
Acquired IPR&D | (28.3) | |||||||||||||||||||||||||||||||
Litigation settlements and other contingencies, net | (350.9) | |||||||||||||||||||||||||||||||
Transaction related and other special items | (973.6) | |||||||||||||||||||||||||||||||
Corporate and other unallocated | (1,542.2) | |||||||||||||||||||||||||||||||
| Earnings from operations | $ | 10.1 | ||||||||||||||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
| (In millions) | Developed Markets | Greater China | JANZ | Emerging Markets | Total Reportable Segments | |||||||||||||||||||||||||||
Net sales | $ | 9,251.9 | $ | 2,160.4 | $ | 1,424.5 | $ | 2,551.6 | $ | 15,388.4 | ||||||||||||||||||||||
Other revenues | 26.1 | — | 1.1 | 11.3 | 38.5 | |||||||||||||||||||||||||||
Total revenues | $ | 9,278.0 | $ | 2,160.4 | $ | 1,425.6 | $ | 2,562.9 | $ | 15,426.9 | ||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Cost of sales | 4,067.1 | 205.5 | 725.5 | 1,116.2 | ||||||||||||||||||||||||||||
Selling, general and administration | 1,124.4 | 528.1 | 177.2 | 354.8 | ||||||||||||||||||||||||||||
Segment profit | $ | 4,086.5 | $ | 1,426.8 | $ | 522.9 | $ | 1,091.9 | $ | 7,128.1 | ||||||||||||||||||||||
Reconciliation of segment profit: | ||||||||||||||||||||||||||||||||
Intangible asset amortization expense | (2,317.1) | |||||||||||||||||||||||||||||||
Intangible asset (including IPR&D) disposal & impairment charges | (32.0) | |||||||||||||||||||||||||||||||
Impairment of goodwill | (580.1) | |||||||||||||||||||||||||||||||
Research and development | (805.2) | |||||||||||||||||||||||||||||||
Acquired IPR&D | (105.5) | |||||||||||||||||||||||||||||||
Litigation settlements and other contingencies, net | (111.6) | |||||||||||||||||||||||||||||||
Transaction related and other special items | (774.4) | |||||||||||||||||||||||||||||||
Corporate and other unallocated | (1,636.0) | |||||||||||||||||||||||||||||||
| Earnings from operations | $ | 766.2 | ||||||||||||||||||||||||||||||
The following table represents the percentage of consolidated net sales to Viatris’ major customers during the years ended December 31, 2025, 2024, and 2023:
| Percentage of Consolidated Net Sales | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| McKesson Corporation | * | * | 10 | % | |||||||||||||
| Cencora, Inc. | 11 | % | 12 | % | 10 | % | |||||||||||
| Cardinal Health, Inc. | * | * | 5 | % | |||||||||||||
* Net sales represented less than 10% of consolidated net sales during the period.
Net sales from these customers were primarily in the Developed Markets segment.
Sales by Country Information
Net sales by country are presented on the basis of geographic location of our subsidiaries:
| Year Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 3,006.7 | $ | 3,434.7 | $ | 3,551.8 | |||||||||||
| China | 2,079.8 | 1,911.3 | 1,889.0 | ||||||||||||||
____________
No other country’s net sales represents more than 10% of consolidated net sales.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.