VTRS · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

Viatris Inc · 2026-08-06 · Importance 65 · Surprise 82 · In source text

Viatris recorded a $54.8 million income tax provision in the second quarter of 2026, compared with a $212.5 million tax benefit in the prior-year quarter, a $267.3 million unfavorable change. The 2026 provision was negatively affected by losses in jurisdictions where minimal tax benefit was available and accruals for certain international tax matters. The impact was partly offset by releases of uncertain-tax-position reserves following statute-of-limitations expirations. The tax provision also reflected changing income levels and geographic earnings mix across jurisdictions with different tax rates.

Key facts

• For the six months ended June 30, 2026, the Company recognized an income tax benefit of $368.9 million, compared to an income tax benefit of $267.5 million for the comparable prior year period, a change of $101.4 million. source
• For the three months ended June 30, 2026, the Company recognized an income tax provision of $54.8 million, compared to an income tax benefit of $(212.5) million for the comparable prior year period, a change of $267.3 million. source
• Adjusted for changes for uncertain tax positions in (f): tax effect of the above items and other income tax related items included adjustments of $(122.7) and $(366.5) for the three months ended June 30, 2026 and 2025, respectively, and $(698.7) and $(548.8) for the six months ended June 30, 2026 and 2025, respectively. source
• The prior year period benefit included a $17.7 million accrual related to the resolution of the previously disclosed Swedish tax matter. source
• The tax benefit in the current year period is primarily driven by the loss before income taxes, the tax benefit of certain internal restructurings undertaken, and the release of reserves for uncertain tax positions due to statute of limitations expirations. source

Impact estimates