Segment Information

12 Months Ended

Dec. 31, 2013

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 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 R&D expenses and direct selling, general and administrative expenses. Certain general and administrative and R&D expenses not allocated to the segments, litigation settlements, net, 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 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 Note 2 to Consolidated Financial Statements. 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
Year Ended December 31, 2013
Total revenues
Third party	$	5,900,624	$	1,008,519	$	—		$	6,909,143
Intersegment	5,673		19,334		(25,007		)	—
Total	$	5,906,297	$	1,027,853	$	(25,007	)	$	6,909,143
Segment profitability	$	1,656,323	$	461,552	$	(982,346	)	$	1,135,530

Year Ended December 31, 2012
Total revenues
Third party	$	5,946,203	$	849,907	$	—		$	6,796,110
Intersegment	3,088		36,991		(40,079		)	—
Total	$	5,949,291	$	886,898	$	(40,079	)	$	6,796,110
Segment profitability	$	1,706,783	$	319,243	$	(916,677	)	$	1,109,349

Year Ended December 31, 2011
Total revenues
Third party	$	5,544,975	$	584,850	$	—		$	6,129,825
Intersegment	2,480		70,005		(72,485		)	—
Total	$	5,547,455	$	654,855	$	(72,485	)	$	6,129,825
Segment profitability	$	1,607,910	$	240,440	$	(842,901	)	$	1,005,449

____________

⁽¹⁾  Includes certain corporate general and administrative and R&D expenses; litigation settlements, net; certain intercompany transactions, including eliminations; amortization of intangible assets and certain purchase accounting items; impairment charges; and other expenses not directly attributable to segments.

The Company’s net revenues are generated via the sale of products in the following therapeutic categories:

	Year Ended December 31,
(In thousands)	2013		2012		2011
Allergy	$	850,222	$	741,487	$	476,990
Anti-infectives	1,080,334		1,034,332		1,005,278
Cardiovascular	1,162,280		1,156,348		1,037,644
Central Nervous System	1,393,339		1,473,928		1,214,046
Dermatological	247,881		157,296		143,769
Endocrine and Metabolic	568,337		645,936		535,383
Gastrointestinal	365,849		418,934		492,683
Respiratory System	259,653		229,249		250,692
Other (1)	928,711		892,736		949,792
	$	6,856,606	$	6,750,246	$	6,106,277

____________

⁽¹⁾  Other consists of numerous therapeutic classes, none of which individually exceeds 5% of consolidated net revenues.

Geographic Information

The Company’s principal geographic markets are North America, Europe, and Rest of World. Net revenues are classified based on the geographic location of the customers and are as follows:

	Year Ended December 31,
(In thousands)	2013		2012		2011
North America
United States	$	3,937,031	$	3,909,518	$	3,242,985
Other	160,710		202,809		206,899
Europe (1)	1,974,764		1,694,236		1,781,184
Rest of World	784,101		943,683		875,209
	$	6,856,606	$	6,750,246	$	6,106,277

 ____________

⁽¹⁾  Net revenues in France consisted of approximately 10%, 9% and 11% of consolidated net revenues for the years ended December 31, 2013, 2012 and 2011, respectively.