Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

Mylan has two segments, “Generics” and “Specialty.” The Generics Segment primarily develops, manufactures, sells and distributes generic or branded generic pharmaceutical products in tablet, capsule, injectable or transdermal patch form, as well as active pharmaceutical ingredients (“API”). The Specialty Segment engages mainly in the development, manufacture and sale of branded specialty nebulized and injectable products.

The Company’s chief operating decision maker evaluates the performance of its segments based on total revenues and segment profitability. Segment profitability represents segment gross profit less direct research and development expenses and direct selling, general and administrative expenses. Certain general and administrative and research and development expenses not allocated to the segments, as well as the operating results of the Company’s clean energy investment subsidiary, whose activities qualify for tax credits under section 45 of the Internal Revenue Code (“IRC”), net charges for litigation settlements, impairment charges and other expenses not directly attributable to the segments, are reported in Corporate/Other. Additionally, amortization of intangible assets and other purchase accounting related items, as well as any other significant special items, are included in Corporate/Other. Items below the earnings from operations line on the Company’s Condensed Consolidated Statements of Operations are not presented by segment, since they are excluded from the measure of segment profitability. The Company does not report depreciation expense, total assets and capital expenditures by segment, as such information is not used by the chief operating decision maker.

The accounting policies of the segments are the same as those described in the “Summary of Significant Accounting Policies” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. Intersegment revenues are accounted for at current market values and are eliminated at the consolidated level.

Presented in the table below is segment information for the periods identified and a reconciliation of segment information to total consolidated information.

(In thousands)	Generics Segment		Specialty Segment		Corporate / Other (1)			Consolidated
Three Months Ended September 30, 2012
Total revenues
Third party	$	1,503,217	$	298,569	$	7,986		$	1,809,772
Intersegment	410		6,419		(6,829		)	—
Total	$	1,503,627	$	304,988	$	1,157		$	1,809,772
Segment profitability	$	464,198	$	130,268	$	(264,553	)	$	329,913

Nine Months Ended September 30, 2012
Total revenues
Third party	$	4,413,664	$	659,591	$	20,462		$	5,093,717
Intersegment	1,154		30,090		(31,244		)	—
Total	$	4,414,818	$	689,681	$	(10,782	)	$	5,093,717
Segment profitability	$	1,296,221	$	246,915	$	(709,043	)	$	834,093

Three Months Ended September 30, 2011
Total revenues
Third party	$	1,361,462	$	214,294	$	—		$	1,575,756
Intersegment	398		17,118		(17,516		)	—
Total	$	1,361,860	$	231,412	$	(17,516	)	$	1,575,756
Segment profitability	$	393,985	$	92,084	$	(220,161	)	$	265,908

Nine Months Ended September 30, 2011
Total revenues
Third party	$	4,153,365	$	445,225	$	—		$	4,598,590
Intersegment	1,200		51,402		(52,602		)	—
Total	$	4,154,565	$	496,627	$	(52,602	)	$	4,598,590
Segment profitability	$	1,214,524	$	169,729	$	(626,200	)	$	758,053

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⁽¹⁾  Includes certain corporate general and administrative and research and development expenses; net charges for litigation settlements; certain intercompany transactions, including eliminations; amortization of intangible assets and certain purchase accounting items; impairment charges; and other expenses not directly attributable to segments. Additionally, included in the Corporate/Other segment for the three and nine months endedSeptember 30, 2012 are the operating results of the Company’s clean energy investment subsidiary, whose activities qualify for tax credits under section 45 of the IRC.