Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

12. 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 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 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 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) Year Ended December 31, 2011	Generics Segment		Specialty Segment		Corporate / Other(1)			Consolidated
Total revenues
Third party	$	5,579,331	$	550,494	$	—		$	6,129,825
Intersegment		2,480		70,005		(72,485	)		—
Total	$	5,581,811	$	620,499	$	(72,485	)	$	6,129,825
Segment profitability	$	1,640,135	$	208,215	$	(842,901	)	$	1,005,449

(In thousands) Year Ended December 31, 2010	Generics Segment		Specialty Segment(2)		Corporate / Other(1)			Consolidated
Total revenues
Third party	$	5,022,554	$	427,968	$	—		$	5,450,522
Intersegment		40,116		61,772		(101,888	)		—
Total	$	5,062,670	$	489,740	$	(101,888	)	$	5,450,522
Segment profitability	$	1,398,264	$	122,694	$	(799,374	)	$	721,584

(In thousands) Year Ended December 31, 2009	Generics Segment		Specialty Segment(2)		Corporate / Other(1)			Consolidated
Total revenues
Third party	$	4,677,813	$	414,972	$	—		$	5,092,785
Intersegment		22,081		40,757		(62,838	)		—
Total	$	4,699,894	$	455,729	$	(62,838	)	$	5,092,785
Segment profitability	$	1,322,999	$	70,400	$	(870,047	)	$	523,352

⁽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.

⁽²⁾  Intersegment sales by Specialty increased from 2009 to 2010 due to the fact that certain generic products previously sold to third parties by Specialty are now sold to Mylan subsidiaries in the North America region of the Generics Segment who, in turn, sell the products to third parties. These generic products contributed $46.8 million to total revenues of the Specialty Segment in 2009.

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

	Year Ended December 31,
	2011		2010		2009
(In thousands)
Allergy	$	476,990	$	343,138	$	238,050
Anti-infective Agents		1,005,278		783,738		600,807
Cardiovascular		1,037,644		967,680		866,411
Central Nervous System		1,214,046		1,248,982		1,428,142
Endocrine and Metabolic		535,383		433,341		399,620
Gastrointestinal		492,683		462,088		401,448
Respiratory Agents		250,692		248,452		288,966
Other(1)		1,093,561		916,847		791,950
	$	6,106,277	$	5,404,266	$	5,015,394

⁽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, EMEA, and Asia Pacific. Net revenues are classified based on the geographic location of the customers and are as follows:

	Year Ended December 31, 2011		Year Ended December 31, 2010		Year Ended December 31, 2009
(In thousands)
The Americas:
United States	$	3,242,985	$	2,656,532	$	2,370,975
Other Americas		226,144		188,659		157,246
Europe(1)		1,781,184		1,790,901		1,837,427
Asia		855,964		768,174		649,746
	$	6,106,277	$	5,404,266	$	5,015,394

⁽¹⁾  Net revenues in France consisted of approximately 11%, 13% and 14% of consolidated net revenues for the years ended December 31, 2011, 2010 and 2009, respectively.