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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Provision | The income tax provision (benefit) consisted of the following components:
| Year Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
U.S. Federal: |  |  |  |  |
Current | $ | 12.6 |  |  | $ | (6.4) |  |  | $ | 118.1 |
Deferred | (182.7) |  |  | (277.0) |  |  | (165.5) |
| (170.1) |  |  | (283.4) |  |  | (47.4) |
U.S. State: |  |  |  |  |
Current | 7.7 |  |  | (0.1) |  |  | 21.1 |
Deferred | (10.8) |  |  | 7.7 |  |  | (13.6) |
| (3.1) |  |  | 7.6 |  |  | 7.5 |
Non-U.S.: |  |  |  |  |
Current | (91.3) |  |  | 168.7 |  |  | 191.0 |
Deferred | 869.2 |  |  | 55.8 |  |  | (13.5) |
| 777.9 |  |  | 224.5 |  |  | 177.5 |
Income tax provision (benefit) | $ | 604.7 |  |  | $ | (51.3) |  |  | $ | 137.6 |
Earnings before income taxes: |  |  |  |  |
United States | (1,982.5) |  |  | (945.5) |  |  | (1,031.4) |
Foreign - Other | 1,318.1 |  |  | 224.3 |  |  | 1,185.8 |
Total (loss) earnings before income taxes | $ | (664.4) |  |  | $ | (721.2) |  |  | $ | 154.4 |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carry-forwards that result in deferred tax assets and liabilities were as follows:
(In millions) | December 31, 2021 |  | December 31, 2020
Deferred tax assets: |  |  |
Employee benefits | $ | 271.3 |  |  | $ | 273.0 |
Litigation reserves | 94.4 |  |  | 43.5 |
Accounts receivable allowances | 425.9 |  |  | 393.7 |
Inventory | 187.8 |  |  | 1,187.9 |
Tax credit and loss carry-forwards | 1,256.0 |  |  | 1,080.4 |
Operating lease assets | 63.6 |  |  | 66.5 |
Interest expense | 111.6 |  |  | 67.9 |
Intangible assets | 151.1 |  |  | 156.3 |
Other | 327.8 |  |  | 396.0 |
| 2,889.5 |  |  | 3,665.2 |
Less: Valuation allowance | (780.4) |  |  | (443.6) |
Total deferred tax assets | 2,109.1 |  |  | 3,221.6 |
Deferred tax liabilities: |  |  |
Plant and equipment | 19.6 |  |  | 50.2 |
Operating lease liabilities | 63.6 |  |  | 66.5 |
Intangible assets and goodwill | 3,468.3 |  |  | 4,058.6 |
Other | 39.9 |  |  | 22.1 |
Total deferred tax liabilities | 3,591.4 |  |  | 4,197.4 |
Deferred tax liabilities, net | $ | (1,482.3) |  |  | $ | (975.8) |
Statutory Tax Rate to Effective Tax Rate Reconciliation | Prior to the Combination, the applicable income tax rate to Mylan was the U.K. rate of 19%, and following the Combination, the statutory income tax rate applicable to Viatris Inc. is the U.S. rate of 21% for the years ended December 31, 2021 and 2020. A reconciliation of the statutory tax rate to the effective tax rate is as follows:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Statutory tax rate | 21.0 | % |  | 21.0 | % |  | 19.0 | %
United States Operations |  |  |  |  |
Clean energy and research credits | 9.8 | % |  | 12.8 | % |  | (43.4) | %
U.S. rate differentials | — | % |  | — | % |  | (3.1) | %
Impact of changes in legislation | — | % |  | (9.2) | % |  | — | %
State income taxes and credits | (0.6) | % |  | (1.6) | % |  | (4.1) | %
Valuation allowance | (0.1) | % |  | 8.6 | % |  | (118.5) | %
Tax settlements and resolution of certain tax positions | 0.1 | % |  | 0.1 | % |  | 199.6 | %
Incremental US Tax on Foreign Earnings | (36.9) | % |  | (3.6) | % |  | (8.6) | %
Waived deductions under IRC § 59A | — | % |  | (3.3) | % |  | 64.5 | %
Impact of the Combination and Divestitures | (2.8) | % |  | 5.8 | % |  | 7.7 | %
Other U.S. items | (6.1) | % |  | 1.5 | % |  | 6.9 | %
Other Foreign Operations |  |  |  |  |
Luxembourg | (6.7) | % |  | (5.0) | % |  | (14.8) | %
Gibraltar | 9.4 | % |  | 8.0 | % |  | (38.8) | %
Ireland | 5.8 | % |  | 8.2 | % |  | (13.7) | %
France | (1.1) | % |  | (2.8) | % |  | 15.2 | %
Puerto Rico | 4.4 | % |  | (2.5) | % |  | — | %
Switzerland | 1.0 | % |  | 2.0 | % |  | — | %
Singapore | 28.8 | % |  | 1.0 | % |  | — | %
Other | (10.2) | % |  | (0.4) | % |  | 12.8 | %
Deferred tax impact of tax law changes | 7.0 | % |  | (0.1) | % |  | 36.7 | %
Valuation allowance | (8.3) | % |  | 16.1 | % |  | (9.9) | %
Impact of the Combination and divestitures | (106.9) | % |  | (42.2) | % |  | — | %
Withholding taxes | (1.3) | % |  | (1.6) | % |  | 7.1 | %
Tax settlements and resolution of certain tax positions | 0.8 | % |  | (3.9) | % |  | (27.6) | %
Other foreign items | 1.9 | % |  | (1.8) | % |  | 2.1 | %
Effective tax rate | (91.0) | % |  | 7.1 | % |  | 89.1 | %
Schedule of Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows:
| Year Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
Unrecognized tax benefit — beginning of year | $ | 391.1 |  |  | $ | 92.1 |  |  | $ | 96.3 |
Additions for current year tax positions | — |  |  | 13.4 |  |  | — |
Additions for prior year tax positions | — |  |  | 35.7 |  |  | 154.9 |
Reductions for prior year tax positions | (9.1) |  |  | (5.2) |  |  | (11.7) |
Settlements | (47.3) |  |  | (8.9) |  |  | (112.5) |
Reductions due to expirations of statute of limitations | (7.0) |  |  | — |  |  | (34.9) |
(Reduction) addition due to acquisition | (4.8) |  |  | 264.0 |  |  | — |
Unrecognized tax benefit — end of year | $ | 322.9 |  |  | $ | 391.1 |  |  | $ | 92.1 |

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