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Revenue Recognition and Accounts Receivable
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition and Accounts Receivable 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 and nine months ended September 30, 2022 and 2021, respectively:

(In millions)Three Months Ended September 30, 2022
Product CategoryDeveloped MarketsGreater ChinaJANZEmerging MarketsTotal
Brands$1,327.7 $571.9 $211.6 $429.1 $2,540.3 
Complex Gx and Biosimilars295.0 0.2 10.9 14.1 320.2 
Generics808.8 1.9 160.5 235.7 1,206.9 
Total$2,431.5 $574.0 $383.0 $678.9 $4,067.4 

(In millions)Nine Months Ended September 30, 2022
Product CategoryDeveloped MarketsGreater ChinaJANZEmerging MarketsTotal
Brands$3,931.8 $1,687.9 $703.7 $1,254.1 $7,577.5 
Complex Gx and Biosimilars986.1 0.5 33.3 45.9 1,065.8 
Generics2,468.8 7.0 496.9 735.0 3,707.7 
Total$7,386.7 $1,695.4 $1,233.9 $2,035.0 $12,351.0 

(In millions)Three Months Ended September 30, 2021
Product CategoryDeveloped MarketsGreater ChinaJANZEmerging MarketsTotal
Brands$1,522.7 $566.8 $299.1 $414.5 $2,803.1 
Complex Gx and Biosimilars305.1 — 13.2 13.7 332.0 
Generics828.1 — 193.0 364.3 1,385.4 
Total$2,655.9 $566.8 $505.3 $792.5 $4,520.5 

(In millions)Nine Months Ended September 30, 2021
Product CategoryDeveloped MarketsGreater ChinaJANZEmerging MarketsTotal
Brands$4,350.5 $1,706.9 $878.5 $1,293.5 $8,229.4 
Complex Gx and Biosimilars926.4 — 31.9 35.4 993.7 
Generics2,591.0 2.1 577.8 1,088.3 4,259.2 
Total$7,867.9 $1,709.0 $1,488.2 $2,417.2 $13,482.3 
____________
(a)Amounts for the three and nine months ended September 30, 2022 include the unfavorable impact of foreign currency translations compared to the prior year period.
The following table presents net sales on a consolidated basis for select key products for the three and nine months ended September 30, 2022 and 2021:
Three months ended September 30,
Nine months ended September 30,
(In millions)2022202120222021
Select Key Global Products
Lipitor ®
$420.4 $410.0 $1,266.1 $1,272.9 
Norvasc ®189.3 198.4 600.1 635.9 
Lyrica ®156.5 175.6 483.9 555.9 
Viagra ®117.0 138.0 361.9 412.4 
EpiPen® Auto-Injectors114.4 129.5 309.7 337.3 
Celebrex ®
82.2 86.0 253.4 257.3 
Creon ®76.4 81.1 226.5 231.7 
Effexor ®
64.2 79.5 215.4 239.6 
Zoloft ®
53.1 61.3 188.7 208.8 
Xalabrands51.0 55.8 146.7 172.0 
Select Key Segment Products
Influvac ®$159.3 $161.2 $178.3 $165.3 
Yupelri ®53.4 39.4 146.1 118.1 
Amitiza ®39.4 49.5 125.3 147.5 
Dymista ®38.6 35.0 138.0 129.9 
Xanax ®38.3 47.6 115.5 141.5 
____________
(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 and nine months ended September 30, 2022 include the unfavorable impact of foreign currency translations compared to the prior year period.
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 and nine months ended September 30, 2022 and 2021, respectively:
Three Months EndedNine Months Ended
September 30,September 30,
(In millions)2022202120222021
Gross sales$6,862.9 $7,739.5 $21,069.9 $23,058.8 
Gross to net adjustments:
Chargebacks(1,553.1)(1,439.3)(4,731.5)(4,112.1)
Rebates, promotional programs and other sales allowances(1,021.8)(1,521.6)(3,303.0)(4,656.7)
Returns(73.4)(87.9)(238.7)(289.2)
Governmental rebate programs(147.2)(170.2)(445.7)(518.5)
Total gross to net adjustments$(2,795.5)$(3,219.0)$(8,718.9)$(9,576.5)
Net sales$4,067.4 $4,520.5 $12,351.0 $13,482.3 
No significant revisions were made to the methodology used in determining these provisions or the nature of the provisions during the three and nine months ended September 30, 2022. Such allowances were comprised of the following at September 30, 2022 and December 31, 2021, respectively:
(In millions)September 30,
2022		December 31,
2021
Accounts receivable, net$1,788.4 $1,688.6 
Other current liabilities837.2 1,362.1 
Total$2,625.6 $3,050.7 
Accounts receivable, net was comprised of the following at September 30, 2022 and December 31, 2021, respectively:
(In millions)September 30,
2022		December 31,
2021
Trade receivables, net$2,829.8 $3,774.4 
Other receivables504.1 492.0 
Accounts receivable, net$3,333.9 $4,266.4 
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 $42.1 million and $29.6 million of accounts receivable as of September 30, 2022 and December 31, 2021, respectively, under these factoring arrangements.