Earnings (Loss) per Ordinary Share

9 Months Ended

Sep. 30, 2022

Earnings (Loss) per Share

Basic earnings (loss) per share is computed by dividing net earnings (loss) by the weighted average number of shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net earnings (loss) 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 (loss) per share attributable to Viatris Inc. are calculated as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions, except per share amounts)	2022		2021		2022		2021
Basic earnings (loss) attributable to Viatris Inc. common shareholders
Net earnings (loss) attributable to Viatris Inc. common shareholders	$	354.3	$	311.5	$	1,067.4	$	(1,005.3)
Shares (denominator):
Weighted average shares outstanding	1,212.5		1,209.3		1,211.8		1,208.6
Basic earnings (loss) per share attributable to Viatris Inc. shareholders	$	0.29	$	0.26	$	0.88	$	(0.83)

Diluted earnings (loss) attributable to Viatris Inc. common shareholders
Net earnings (loss) attributable to Viatris Inc. common shareholders	$	354.3	$	311.5	$	1,067.4	$	(1,005.3)
Shares (denominator):
Weighted average shares outstanding	1,212.5		1,209.3		1,211.8		1,208.6
Share-based awards	5.6		3.3		4.3		—
Total dilutive shares outstanding	1,218.1		1,212.6		1,216.1		1,208.6
Diluted earnings (loss) per share attributable to Viatris Inc. shareholders	$	0.29	$	0.26	$	0.88	$	(0.83)

Additional stock awards and restricted stock awards were outstanding during the three and nine months ended September 30, 2022 and 2021, 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 September 30, 2022 include certain share-based compensation awards whose performance conditions had not been fully met. Such excluded shares and anti-dilutive awards represented 14.7 million shares and 13.3 million shares for the three and nine months ended September 30, 2022, respectively, and 11.4 million shares and 10.8 million shares for the three and nine months ended September 30, 2021, respectively.

The Company paid quarterly dividends of $0.12 per share on the Company’s issued and outstanding common stock on March 16, 2022, June 16, 2022 and September 16, 2022. On November 3, 2022, 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 December 16, 2022 to shareholders of record as of the close of business on November 23, 2022. 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 May 6, 2022, the Company announced that its Board of Directors had authorized a DRIP. The DRIP allows shareholders to automatically reinvest all or a portion of the cash dividends paid on their shares of the Company’s common stock and to make certain additional optional cash investments in the Company’s common stock.

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. 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. The Company has not yet repurchased any shares of common stock under the share repurchase program and the share repurchase program does not obligate the Company to acquire any particular amount of common stock.