20-F 1 alc-20201231.htm 20-F alc-20201231
False12/31FY202012/31/202000011673790.2P5YP5YP5YP3YP5YP5YP5YP3YP3YP3Y00011673792020-01-012020-12-310001167379dei:BusinessContactMember2020-01-012020-12-31xbrli:shares00011673792020-12-31iso4217:USD00011673792019-01-012019-12-3100011673792018-01-012018-12-31iso4217:USDxbrli:shares00011673792019-12-310001167379ifrs-full:IssuedCapitalMemberifrs-full:PreviouslyStatedMember2017-12-310001167379ifrs-full:OtherReservesMemberifrs-full:PreviouslyStatedMember2017-12-310001167379ifrs-full:RetainedEarningsMemberifrs-full:PreviouslyStatedMember2017-12-310001167379ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMemberifrs-full:PreviouslyStatedMember2017-12-310001167379ifrs-full:PreviouslyStatedMemberifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember2017-12-310001167379ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMemberifrs-full:PreviouslyStatedMember2017-12-310001167379ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberifrs-full:PreviouslyStatedMember2017-12-310001167379alc:TotalValueAdjustmentsMemberifrs-full:PreviouslyStatedMember2017-12-310001167379ifrs-full:PreviouslyStatedMember2017-12-310001167379ifrs-full:RetainedEarningsMemberifrs-full:FinancialEffectOfChangesInAccountingPolicyMember2017-12-310001167379ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMemberifrs-full:FinancialEffectOfChangesInAccountingPolicyMember2017-12-310001167379alc:TotalValueAdjustmentsMemberifrs-full:FinancialEffectOfChangesInAccountingPolicyMember2017-12-310001167379ifrs-full:FinancialEffectOfChangesInAccountingPolicyMember2017-12-310001167379ifrs-full:IssuedCapitalMember2017-12-310001167379ifrs-full:OtherReservesMember2017-12-310001167379ifrs-full:RetainedEarningsMember2017-12-310001167379ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMember2017-12-310001167379ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember2017-12-310001167379ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember2017-12-310001167379ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2017-12-310001167379alc:TotalValueAdjustmentsMember2017-12-3100011673792017-12-310001167379ifrs-full:RetainedEarningsMember2018-01-012018-12-310001167379ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember2018-01-012018-12-310001167379ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember2018-01-012018-12-310001167379ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2018-01-012018-12-310001167379alc:TotalValueAdjustmentsMember2018-01-012018-12-310001167379ifrs-full:IssuedCapitalMember2018-12-310001167379ifrs-full:OtherReservesMember2018-12-310001167379ifrs-full:RetainedEarningsMember2018-12-310001167379ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMember2018-12-310001167379ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember2018-12-310001167379ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember2018-12-310001167379ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2018-12-310001167379alc:TotalValueAdjustmentsMember2018-12-3100011673792018-12-310001167379ifrs-full:OtherReservesMember2019-01-012019-12-310001167379ifrs-full:RetainedEarningsMember2019-01-012019-12-310001167379ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember2019-01-012019-12-310001167379ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember2019-01-012019-12-310001167379ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2019-01-012019-12-310001167379alc:TotalValueAdjustmentsMember2019-01-012019-12-310001167379ifrs-full:IssuedCapitalMember2019-01-012019-12-310001167379ifrs-full:IssuedCapitalMember2019-12-310001167379ifrs-full:OtherReservesMember2019-12-310001167379ifrs-full:RetainedEarningsMember2019-12-310001167379ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMember2019-12-310001167379ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember2019-12-310001167379ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember2019-12-310001167379ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2019-12-310001167379alc:TotalValueAdjustmentsMember2019-12-310001167379ifrs-full:OtherReservesMember2020-01-012020-12-310001167379ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember2020-01-012020-12-310001167379ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2020-01-012020-12-310001167379alc:TotalValueAdjustmentsMember2020-01-012020-12-310001167379ifrs-full:IssuedCapitalMember2020-12-310001167379ifrs-full:OtherReservesMember2020-12-310001167379ifrs-full:RetainedEarningsMember2020-12-310001167379ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMember2020-12-310001167379ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember2020-12-310001167379ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember2020-12-310001167379ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2020-12-310001167379alc:TotalValueAdjustmentsMember2020-12-310001167379alc:IncreaseDecreaseDueToApplicationOfIFRS9Member2017-12-310001167379ifrs-full:IncreaseDecreaseDueToApplicationOfIFRS15Member2017-12-31alc:segmentxbrli:pure00011673792019-04-090001167379ifrs-full:BottomOfRangeMemberifrs-full:BuildingsMember2020-01-012020-12-310001167379ifrs-full:TopOfRangeMemberifrs-full:BuildingsMember2020-01-012020-12-310001167379ifrs-full:BottomOfRangeMemberalc:MachineryandEquipmentMember2020-01-012020-12-310001167379alc:MachineryandEquipmentMemberifrs-full:TopOfRangeMember2020-01-012020-12-310001167379ifrs-full:BottomOfRangeMemberalc:FurnitureandVehiclesMember2020-01-012020-12-310001167379alc:FurnitureandVehiclesMemberifrs-full:TopOfRangeMember2020-01-012020-12-310001167379ifrs-full:BottomOfRangeMemberifrs-full:ComputerEquipmentMember2020-01-012020-12-310001167379ifrs-full:ComputerEquipmentMemberifrs-full:TopOfRangeMember2020-01-012020-12-310001167379ifrs-full:BottomOfRangeMemberalc:CurrentlyMarketedProductsMember2020-01-012020-12-310001167379alc:CurrentlyMarketedProductsMemberifrs-full:TopOfRangeMember2020-01-012020-12-310001167379alc:MarketingKnowhowMember2020-01-012020-12-310001167379ifrs-full:BottomOfRangeMemberifrs-full:TechnologybasedIntangibleAssetsMember2020-01-012020-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberifrs-full:TopOfRangeMember2020-01-012020-12-310001167379ifrs-full:BottomOfRangeMemberifrs-full:OtherIntangibleAssetsMember2020-01-012020-12-310001167379ifrs-full:OtherIntangibleAssetsMemberifrs-full:TopOfRangeMember2020-01-012020-12-310001167379alc:TechnologybasedIntangibleAssetSAPERPMember2019-01-012019-06-300001167379alc:TechnologybasedIntangibleAssetSAPERPMember2019-07-012019-07-010001167379alc:TechnologybasedIntangibleAssetSAPERPMember2019-07-012019-12-310001167379alc:TechnologybasedIntangibleAssetSAPERPMember2020-01-012020-12-310001167379alc:TechnologybasedIntangibleAssetSAPERPMember2020-12-310001167379ifrs-full:BottomOfRangeMemberifrs-full:OtherIntangibleAssetsMember2019-01-012019-06-300001167379ifrs-full:OtherIntangibleAssetsMemberifrs-full:TopOfRangeMember2019-01-012019-06-300001167379ifrs-full:BottomOfRangeMemberifrs-full:OtherIntangibleAssetsMember2019-07-012019-12-310001167379ifrs-full:OtherIntangibleAssetsMemberifrs-full:TopOfRangeMember2019-07-012019-12-3100011673792020-05-272020-05-2700011673792020-05-270001167379alc:BridgeAndTermLoansMember2019-09-230001167379alc:SeniorNotesDue2026Member2019-09-230001167379alc:SeniorNotesDue2029Member2019-09-230001167379alc:SeniorNotesDue2049Member2019-09-230001167379alc:BridgeAndOtherTermLoansMember2019-04-022019-04-0200011673792019-04-022019-04-020001167379alc:PowerVisionInc.Member2019-03-130001167379alc:PowerVisionInc.Member2019-03-132019-03-130001167379alc:TrueVisionSystemsInc.Member2018-12-190001167379alc:TearFilmInnovationsInc.Member2018-12-170001167379alc:SurgicalMember2019-01-012019-12-310001167379alc:VisionCareMember2019-01-012019-12-310001167379alc:SurgicalMember2018-01-012018-12-310001167379alc:VisionCareMember2018-01-012018-12-310001167379alc:SurgicalMember2020-01-012020-12-310001167379alc:VisionCareMember2020-01-012020-12-310001167379alc:SurgicalMemberifrs-full:OperatingSegmentsMember2020-01-012020-12-310001167379alc:SurgicalMemberifrs-full:OperatingSegmentsMember2019-01-012019-12-310001167379alc:VisionCareMemberifrs-full:OperatingSegmentsMember2020-01-012020-12-310001167379alc:VisionCareMemberifrs-full:OperatingSegmentsMember2019-01-012019-12-310001167379ifrs-full:UnallocatedAmountsMember2020-01-012020-12-310001167379ifrs-full:UnallocatedAmountsMember2019-01-012019-12-310001167379alc:SurgicalMemberifrs-full:OperatingSegmentsMember2018-01-012018-12-310001167379alc:VisionCareMemberifrs-full:OperatingSegmentsMember2018-01-012018-12-310001167379ifrs-full:UnallocatedAmountsMember2018-01-012018-12-310001167379alc:ImplantablesMemberalc:SurgicalMember2020-01-012020-12-310001167379alc:ImplantablesMemberalc:SurgicalMember2019-01-012019-12-310001167379alc:ImplantablesMemberalc:SurgicalMember2018-01-012018-12-310001167379alc:ConsumablesMemberalc:SurgicalMember2020-01-012020-12-310001167379alc:ConsumablesMemberalc:SurgicalMember2019-01-012019-12-310001167379alc:ConsumablesMemberalc:SurgicalMember2018-01-012018-12-310001167379alc:EquipmentOtherMemberalc:SurgicalMember2020-01-012020-12-310001167379alc:EquipmentOtherMemberalc:SurgicalMember2019-01-012019-12-310001167379alc:EquipmentOtherMemberalc:SurgicalMember2018-01-012018-12-310001167379alc:VisionCareMemberalc:ContactLensesMember2020-01-012020-12-310001167379alc:VisionCareMemberalc:ContactLensesMember2019-01-012019-12-310001167379alc:VisionCareMemberalc:ContactLensesMember2018-01-012018-12-310001167379alc:VisionCareMemberalc:OcularHealthMember2020-01-012020-12-310001167379alc:VisionCareMemberalc:OcularHealthMember2019-01-012019-12-310001167379alc:VisionCareMemberalc:OcularHealthMember2018-01-012018-12-310001167379ifrs-full:ForeignCountriesMembercountry:US2020-01-012020-12-310001167379ifrs-full:ForeignCountriesMembercountry:US2019-01-012019-12-310001167379ifrs-full:ForeignCountriesMembercountry:US2018-01-012018-12-310001167379ifrs-full:ForeignCountriesMembercountry:US2020-12-310001167379ifrs-full:ForeignCountriesMembercountry:US2019-12-310001167379alc:CountriesOtherThanUnitedStatesMember2020-01-012020-12-310001167379alc:CountriesOtherThanUnitedStatesMember2019-01-012019-12-310001167379alc:CountriesOtherThanUnitedStatesMember2018-01-012018-12-310001167379alc:CountriesOtherThanUnitedStatesMember2020-12-310001167379alc:CountriesOtherThanUnitedStatesMember2019-12-310001167379country:CHifrs-full:CountryOfDomicileMember2020-01-012020-12-310001167379country:CHifrs-full:CountryOfDomicileMember2019-01-012019-12-310001167379country:CHifrs-full:CountryOfDomicileMember2018-01-012018-12-310001167379country:CHifrs-full:CountryOfDomicileMember2020-12-310001167379country:CHifrs-full:CountryOfDomicileMember2019-12-310001167379ifrs-full:ForeignCountriesMembercountry:JP2020-01-012020-12-310001167379ifrs-full:ForeignCountriesMembercountry:JP2019-01-012019-12-310001167379ifrs-full:ForeignCountriesMembercountry:JP2018-01-012018-12-310001167379ifrs-full:ForeignCountriesMembercountry:JP2020-12-310001167379ifrs-full:ForeignCountriesMembercountry:JP2019-12-310001167379country:CNifrs-full:ForeignCountriesMember2020-01-012020-12-310001167379country:CNifrs-full:ForeignCountriesMember2019-01-012019-12-310001167379country:CNifrs-full:ForeignCountriesMember2018-01-012018-12-310001167379country:CNifrs-full:ForeignCountriesMember2020-12-310001167379country:CNifrs-full:ForeignCountriesMember2019-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMember2020-01-012020-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMember2019-01-012019-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMember2018-01-012018-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMember2020-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMember2019-12-310001167379ifrs-full:CountryOfDomicileMember2020-01-012020-12-310001167379ifrs-full:CountryOfDomicileMember2019-01-012019-12-310001167379ifrs-full:CountryOfDomicileMember2018-01-012018-12-310001167379ifrs-full:ForeignCountriesMember2020-01-012020-12-310001167379ifrs-full:ForeignCountriesMember2019-01-012019-12-310001167379ifrs-full:ForeignCountriesMember2018-01-012018-12-310001167379country:CH2019-01-012019-12-310001167379country:US2019-01-012019-12-31iso4217:CHFiso4217:CHFxbrli:shares00011673792020-11-102020-11-1000011673792019-11-192019-11-1900011673792019-04-092019-04-0900011673792019-04-102019-12-3100011673792019-04-092020-12-310001167379ifrs-full:LandMemberifrs-full:GrossCarryingAmountMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:BuildingsMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:ConstructionInProgressMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:MachineryAndOtherEquipmentMember2019-12-310001167379ifrs-full:GrossCarryingAmountMember2019-12-310001167379ifrs-full:LandMemberifrs-full:GrossCarryingAmountMember2020-01-012020-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:BuildingsMember2020-01-012020-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:ConstructionInProgressMember2020-01-012020-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:MachineryAndOtherEquipmentMember2020-01-012020-12-310001167379ifrs-full:GrossCarryingAmountMember2020-01-012020-12-310001167379ifrs-full:LandMemberifrs-full:GrossCarryingAmountMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:BuildingsMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:ConstructionInProgressMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:MachineryAndOtherEquipmentMember2020-12-310001167379ifrs-full:GrossCarryingAmountMember2020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:BuildingsMember2019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:ConstructionInProgressMember2019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberalc:MachineryAndOtherEquipmentMember2019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMember2019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:BuildingsMember2020-01-012020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberalc:MachineryAndOtherEquipmentMember2020-01-012020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMember2020-01-012020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:BuildingsMember2020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:ConstructionInProgressMember2020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberalc:MachineryAndOtherEquipmentMember2020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMember2020-12-310001167379ifrs-full:LandMember2020-12-310001167379ifrs-full:BuildingsMember2020-12-310001167379ifrs-full:ConstructionInProgressMember2020-12-310001167379alc:MachineryAndOtherEquipmentMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:ChangesInNetCurrentAssetsAndOtherOperatingCashFlowItemsMember2020-01-012020-12-310001167379ifrs-full:LandMemberifrs-full:GrossCarryingAmountMember2018-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:BuildingsMember2018-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:ConstructionInProgressMember2018-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:MachineryAndOtherEquipmentMember2018-12-310001167379ifrs-full:GrossCarryingAmountMember2018-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:BuildingsMember2019-01-012019-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:ConstructionInProgressMember2019-01-012019-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:MachineryAndOtherEquipmentMember2019-01-012019-12-310001167379ifrs-full:GrossCarryingAmountMember2019-01-012019-12-310001167379ifrs-full:LandMemberifrs-full:GrossCarryingAmountMember2019-01-012019-12-310001167379ifrs-full:LandMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2018-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:BuildingsMember2018-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:ConstructionInProgressMember2018-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberalc:MachineryAndOtherEquipmentMember2018-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMember2018-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:BuildingsMember2019-01-012019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberalc:MachineryAndOtherEquipmentMember2019-01-012019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMember2019-01-012019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:ConstructionInProgressMember2019-01-012019-12-310001167379ifrs-full:LandMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2019-01-012019-12-310001167379ifrs-full:LandMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2019-12-310001167379ifrs-full:LandMember2019-12-310001167379ifrs-full:BuildingsMember2019-12-310001167379ifrs-full:ConstructionInProgressMember2019-12-310001167379alc:MachineryAndOtherEquipmentMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:ChangesInNetCurrentAssetsAndOtherOperatingCashFlowItemsMember2019-01-012019-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:GoodwillMember2019-12-310001167379ifrs-full:BrandNamesMemberifrs-full:GrossCarryingAmountMember2019-12-310001167379ifrs-full:IntangibleAssetsUnderDevelopmentMemberifrs-full:GrossCarryingAmountMember2019-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberifrs-full:GrossCarryingAmountMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:CurrentlyMarketedProductsMember2019-12-310001167379alc:MarketingKnowhowMemberifrs-full:GrossCarryingAmountMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:OtherIntangibleAssetsMember2019-12-310001167379ifrs-full:IntangibleAssetsUnderDevelopmentMemberifrs-full:GrossCarryingAmountMember2020-01-012020-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:CurrentlyMarketedProductsMember2020-01-012020-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:OtherIntangibleAssetsMember2020-01-012020-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:GoodwillMember2020-12-310001167379ifrs-full:BrandNamesMemberifrs-full:GrossCarryingAmountMember2020-12-310001167379ifrs-full:IntangibleAssetsUnderDevelopmentMemberifrs-full:GrossCarryingAmountMember2020-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberifrs-full:GrossCarryingAmountMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:CurrentlyMarketedProductsMember2020-12-310001167379alc:MarketingKnowhowMemberifrs-full:GrossCarryingAmountMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:OtherIntangibleAssetsMember2020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:GoodwillMember2019-12-310001167379ifrs-full:BrandNamesMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:IntangibleAssetsUnderDevelopmentMember2019-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberalc:CurrentlyMarketedProductsMember2019-12-310001167379alc:MarketingKnowhowMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:OtherIntangibleAssetsMember2019-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2020-01-012020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberalc:CurrentlyMarketedProductsMember2020-01-012020-12-310001167379alc:MarketingKnowhowMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2020-01-012020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:OtherIntangibleAssetsMember2020-01-012020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:IntangibleAssetsUnderDevelopmentMember2020-01-012020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:GoodwillMember2020-12-310001167379ifrs-full:BrandNamesMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:IntangibleAssetsUnderDevelopmentMember2020-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberalc:CurrentlyMarketedProductsMember2020-12-310001167379alc:MarketingKnowhowMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2020-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:OtherIntangibleAssetsMember2020-12-310001167379ifrs-full:GoodwillMember2020-12-310001167379ifrs-full:BrandNamesMember2020-12-310001167379ifrs-full:IntangibleAssetsUnderDevelopmentMember2020-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMember2020-12-310001167379alc:CurrentlyMarketedProductsMember2020-12-310001167379alc:MarketingKnowhowMember2020-12-310001167379ifrs-full:OtherIntangibleAssetsMember2020-12-310001167379alc:SurgicalMemberifrs-full:OperatingSegmentsMemberifrs-full:GoodwillMember2020-12-310001167379ifrs-full:IntangibleAssetsUnderDevelopmentMemberalc:SurgicalMemberifrs-full:OperatingSegmentsMember2020-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberalc:SurgicalMemberifrs-full:OperatingSegmentsMember2020-12-310001167379alc:SurgicalMemberifrs-full:OperatingSegmentsMemberalc:CurrentlyMarketedProductsMember2020-12-310001167379alc:MarketingKnowhowMemberalc:SurgicalMemberifrs-full:OperatingSegmentsMember2020-12-310001167379ifrs-full:OtherIntangibleAssetsMemberalc:SurgicalMemberifrs-full:OperatingSegmentsMember2020-12-310001167379alc:SurgicalMemberifrs-full:OperatingSegmentsMember2020-12-310001167379alc:VisionCareMemberifrs-full:OperatingSegmentsMemberifrs-full:GoodwillMember2020-12-310001167379alc:VisionCareMemberifrs-full:IntangibleAssetsUnderDevelopmentMemberifrs-full:OperatingSegmentsMember2020-12-310001167379alc:VisionCareMemberifrs-full:OperatingSegmentsMemberalc:CurrentlyMarketedProductsMember2020-12-310001167379alc:VisionCareMemberifrs-full:OtherIntangibleAssetsMemberifrs-full:OperatingSegmentsMember2020-12-310001167379alc:VisionCareMemberifrs-full:OperatingSegmentsMember2020-12-310001167379ifrs-full:BrandNamesMemberifrs-full:UnallocatedAmountsMember2020-12-310001167379ifrs-full:UnallocatedAmountsMember2020-12-310001167379alc:SurgicalMember2020-12-310001167379alc:SurgicalMember2019-12-310001167379alc:VisionCareMember2020-12-310001167379alc:VisionCareMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:GoodwillMember2018-12-310001167379ifrs-full:BrandNamesMemberifrs-full:GrossCarryingAmountMember2018-12-310001167379ifrs-full:IntangibleAssetsUnderDevelopmentMemberifrs-full:GrossCarryingAmountMember2018-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberifrs-full:GrossCarryingAmountMember2018-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:CurrentlyMarketedProductsMember2018-12-310001167379alc:MarketingKnowhowMemberifrs-full:GrossCarryingAmountMember2018-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:OtherIntangibleAssetsMember2018-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:GoodwillMember2019-01-012019-12-310001167379ifrs-full:IntangibleAssetsUnderDevelopmentMemberifrs-full:GrossCarryingAmountMember2019-01-012019-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:OtherIntangibleAssetsMember2019-01-012019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:GoodwillMember2018-12-310001167379ifrs-full:BrandNamesMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2018-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:IntangibleAssetsUnderDevelopmentMember2018-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2018-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberalc:CurrentlyMarketedProductsMember2018-12-310001167379alc:MarketingKnowhowMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2018-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:OtherIntangibleAssetsMember2018-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2019-01-012019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberalc:CurrentlyMarketedProductsMember2019-01-012019-12-310001167379alc:MarketingKnowhowMemberifrs-full:AccumulatedDepreciationAndAmortisationMember2019-01-012019-12-310001167379ifrs-full:AccumulatedDepreciationAndAmortisationMemberifrs-full:OtherIntangibleAssetsMember2019-01-012019-12-310001167379ifrs-full:GoodwillMember2019-12-310001167379ifrs-full:BrandNamesMember2019-12-310001167379ifrs-full:IntangibleAssetsUnderDevelopmentMember2019-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMember2019-12-310001167379alc:CurrentlyMarketedProductsMember2019-12-310001167379alc:MarketingKnowhowMember2019-12-310001167379ifrs-full:OtherIntangibleAssetsMember2019-12-310001167379alc:SurgicalMemberifrs-full:OperatingSegmentsMemberifrs-full:GoodwillMember2019-12-310001167379ifrs-full:IntangibleAssetsUnderDevelopmentMemberalc:SurgicalMemberifrs-full:OperatingSegmentsMember2019-12-310001167379ifrs-full:TechnologybasedIntangibleAssetsMemberalc:SurgicalMemberifrs-full:OperatingSegmentsMember2019-12-310001167379alc:SurgicalMemberifrs-full:OperatingSegmentsMemberalc:CurrentlyMarketedProductsMember2019-12-310001167379alc:MarketingKnowhowMemberalc:SurgicalMemberifrs-full:OperatingSegmentsMember2019-12-310001167379ifrs-full:OtherIntangibleAssetsMemberalc:SurgicalMemberifrs-full:OperatingSegmentsMember2019-12-310001167379alc:SurgicalMemberifrs-full:OperatingSegmentsMember2019-12-310001167379alc:VisionCareMemberifrs-full:OperatingSegmentsMemberifrs-full:GoodwillMember2019-12-310001167379alc:VisionCareMemberifrs-full:IntangibleAssetsUnderDevelopmentMemberifrs-full:OperatingSegmentsMember2019-12-310001167379alc:VisionCareMemberifrs-full:OperatingSegmentsMemberalc:CurrentlyMarketedProductsMember2019-12-310001167379alc:VisionCareMemberifrs-full:OtherIntangibleAssetsMemberifrs-full:OperatingSegmentsMember2019-12-310001167379alc:VisionCareMemberifrs-full:OperatingSegmentsMember2019-12-310001167379ifrs-full:BrandNamesMemberifrs-full:UnallocatedAmountsMember2019-12-310001167379ifrs-full:UnallocatedAmountsMember2019-12-310001167379alc:VisionCareAndSurgicalMember2020-07-012020-09-300001167379alc:CostOfNetSalesMember2020-01-012020-12-310001167379alc:VisionCareMemberalc:CostOfNetSalesMember2020-01-012020-12-310001167379alc:VisionCareMemberalc:CostOfNetSalesMember2020-06-300001167379alc:SurgicalMemberalc:CurrentlyMarketedProductsMember2020-01-012020-12-310001167379alc:SurgicalMember2020-12-310001167379alc:CyPassMemberalc:SurgicalMember2018-01-012018-12-310001167379alc:SurgicalMemberalc:OptonolLtd.Member2018-01-012018-12-310001167379alc:PropertyPlantEquipmentRelatedTemporaryDifferencesMember2019-12-310001167379alc:IntangibleAssetsRelatedTemporaryDifferencesMember2019-12-310001167379alc:PensionsAndOtherBenefitObligationsOfAssociatesRelatedTemporaryDifferencesMember2019-12-310001167379alc:InventoriesRelatedTemporaryDifferencesMember2019-12-310001167379alc:TaxLossCarryforwardsRelatedTemporaryDifferencesMember2019-12-310001167379alc:OtherAssetsProvisionsAndAccrualsRelatedTemporaryDifferencesMember2019-12-310001167379alc:PropertyPlantEquipmentRelatedTemporaryDifferencesMember2020-01-012020-12-310001167379alc:IntangibleAssetsRelatedTemporaryDifferencesMember2020-01-012020-12-310001167379alc:PensionsAndOtherBenefitObligationsOfAssociatesRelatedTemporaryDifferencesMember2020-01-012020-12-310001167379alc:InventoriesRelatedTemporaryDifferencesMember2020-01-012020-12-310001167379alc:TaxLossCarryforwardsRelatedTemporaryDifferencesMember2020-01-012020-12-310001167379alc:OtherAssetsProvisionsAndAccrualsRelatedTemporaryDifferencesMember2020-01-012020-12-310001167379alc:PropertyPlantEquipmentRelatedTemporaryDifferencesMember2020-12-310001167379alc:IntangibleAssetsRelatedTemporaryDifferencesMember2020-12-310001167379alc:PensionsAndOtherBenefitObligationsOfAssociatesRelatedTemporaryDifferencesMember2020-12-310001167379alc:InventoriesRelatedTemporaryDifferencesMember2020-12-310001167379alc:TaxLossCarryforwardsRelatedTemporaryDifferencesMember2020-12-310001167379alc:OtherAssetsProvisionsAndAccrualsRelatedTemporaryDifferencesMember2020-12-310001167379alc:PropertyPlantEquipmentRelatedTemporaryDifferencesMember2018-12-310001167379alc:IntangibleAssetsRelatedTemporaryDifferencesMember2018-12-310001167379alc:PensionsAndOtherBenefitObligationsOfAssociatesRelatedTemporaryDifferencesMember2018-12-310001167379alc:InventoriesRelatedTemporaryDifferencesMember2018-12-310001167379alc:TaxLossCarryforwardsRelatedTemporaryDifferencesMember2018-12-310001167379alc:OtherAssetsProvisionsAndAccrualsRelatedTemporaryDifferencesMember2018-12-310001167379alc:PropertyPlantEquipmentRelatedTemporaryDifferencesMember2019-01-012019-12-310001167379alc:IntangibleAssetsRelatedTemporaryDifferencesMember2019-01-012019-12-310001167379alc:PensionsAndOtherBenefitObligationsOfAssociatesRelatedTemporaryDifferencesMember2019-01-012019-12-310001167379alc:InventoriesRelatedTemporaryDifferencesMember2019-01-012019-12-310001167379alc:TaxLossCarryforwardsRelatedTemporaryDifferencesMember2019-01-012019-12-310001167379alc:OtherAssetsProvisionsAndAccrualsRelatedTemporaryDifferencesMember2019-01-012019-12-310001167379ifrs-full:NotLaterThanOneYearMember2020-12-310001167379ifrs-full:NotLaterThanOneYearMember2019-12-310001167379ifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2020-12-310001167379ifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2019-12-310001167379ifrs-full:LaterThanFiveYearsMember2020-12-310001167379ifrs-full:LaterThanFiveYearsMember2019-12-310001167379alc:CostOfNetSalesMember2019-01-012019-12-310001167379alc:CostOfNetSalesMember2018-01-012018-12-310001167379alc:CostOfOtherRevenueMember2020-01-012020-12-310001167379alc:CostOfOtherRevenueMember2019-01-012019-12-310001167379alc:CostOfOtherRevenueMember2018-01-012018-12-310001167379ifrs-full:CurrentMember2020-12-310001167379ifrs-full:NotLaterThanOneMonthMember2020-12-310001167379ifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMember2020-12-310001167379ifrs-full:LaterThanThreeMonthsAndNotLaterThanSixMonthsMember2020-12-310001167379ifrs-full:LaterThanSixMonthsAndNotLaterThanOneYearMember2020-12-310001167379ifrs-full:LaterThanOneYearMember2020-12-310001167379ifrs-full:CurrentMember2019-12-310001167379ifrs-full:NotLaterThanOneMonthMember2019-12-310001167379ifrs-full:LaterThanOneMonthAndNotLaterThanThreeMonthsMember2019-12-310001167379ifrs-full:LaterThanThreeMonthsAndNotLaterThanSixMonthsMember2019-12-310001167379ifrs-full:LaterThanSixMonthsAndNotLaterThanOneYearMember2019-12-310001167379ifrs-full:LaterThanOneYearMember2019-12-310001167379alc:GreeceItalyPortugalSpainBrazilRussiaTurkeySaudiArabiaAndArgentinaMemberifrs-full:CurrentMember2020-12-310001167379alc:GreeceItalyPortugalSpainBrazilRussiaTurkeySaudiArabiaAndArgentinaMemberifrs-full:CurrentMember2019-12-310001167379alc:GreeceItalyPortugalSpainBrazilRussiaTurkeySaudiArabiaAndArgentinaMemberifrs-full:LaterThanOneYearMember2020-12-310001167379alc:GreeceItalyPortugalSpainBrazilRussiaTurkeySaudiArabiaAndArgentinaMemberifrs-full:LaterThanOneYearMember2019-12-310001167379alc:GreeceItalyPortugalSpainBrazilRussiaTurkeySaudiArabiaAndArgentinaMember2020-12-310001167379alc:GreeceItalyPortugalSpainBrazilRussiaTurkeySaudiArabiaAndArgentinaMember2019-12-310001167379currency:USD2020-12-310001167379currency:USD2019-12-310001167379currency:EUR2020-12-310001167379currency:EUR2019-12-310001167379currency:JPY2020-12-310001167379currency:JPY2019-12-310001167379currency:CNY2020-12-310001167379currency:CNY2019-12-310001167379currency:INR2020-12-310001167379currency:INR2019-12-310001167379currency:CAD2020-12-310001167379currency:CAD2019-12-310001167379currency:AUD2020-12-310001167379currency:AUD2019-12-310001167379currency:GBP2020-12-310001167379currency:GBP2019-12-310001167379currency:RUB2020-12-310001167379currency:RUB2019-12-310001167379currency:KRW2020-12-310001167379currency:KRW2019-12-310001167379alc:CurrencyOtherMember2020-12-310001167379alc:CurrencyOtherMember2019-12-310001167379ifrs-full:LandMember2020-12-310001167379ifrs-full:LandMember2019-12-310001167379ifrs-full:BuildingsMember2020-12-310001167379ifrs-full:BuildingsMember2019-12-310001167379alc:MachineryEquipmentAndOtherAssetsMember2020-12-310001167379alc:MachineryEquipmentAndOtherAssetsMember2019-12-310001167379ifrs-full:LandMember2020-01-012020-12-310001167379ifrs-full:LandMember2019-01-012019-12-310001167379ifrs-full:BuildingsMember2020-01-012020-12-310001167379ifrs-full:BuildingsMember2019-01-012019-12-310001167379alc:MachineryEquipmentAndOtherAssetsMember2020-01-012020-12-310001167379alc:MachineryEquipmentAndOtherAssetsMember2019-01-012019-12-310001167379alc:FacilityBMember2020-12-310001167379alc:FacilityBMember2019-12-310001167379alc:FacilityCMember2020-12-310001167379alc:FacilityCMember2019-12-310001167379alc:LocalFacilitiesJapanMember2020-12-310001167379alc:LocalFacilitiesJapanMember2019-12-310001167379alc:SeniorNotesDue2026Member2020-12-310001167379alc:SeniorNotesDue2026Member2019-12-310001167379alc:SeniorNotesDue2029Member2020-12-310001167379alc:SeniorNotesDue2029Member2019-12-310001167379alc:SeniorNotesDue2030Member2020-12-310001167379alc:SeniorNotesDue2030Member2019-12-310001167379alc:SeniorNotesDue2049Member2020-12-310001167379alc:SeniorNotesDue2049Member2019-12-310001167379alc:RevolvingFacilityMember2020-12-310001167379alc:RevolvingFacilityMember2019-12-310001167379alc:LocalFacilitiesOtherMember2020-12-310001167379alc:LocalFacilitiesOtherMember2019-12-310001167379alc:OtherShorttermFinancialDebtsMember2020-12-310001167379alc:OtherShorttermFinancialDebtsMember2019-12-310001167379ifrs-full:DerivativesMember2020-12-310001167379ifrs-full:DerivativesMember2019-12-310001167379ifrs-full:WeightedAverageMember2020-12-310001167379ifrs-full:WeightedAverageMember2019-12-310001167379alc:BridgeFacilityMember2019-03-060001167379alc:BridgeFacilityMember2019-03-062019-03-06alc:extension0001167379alc:FacilityAMember2019-03-060001167379alc:FacilityAMember2019-03-062019-03-060001167379alc:FacilityBMember2019-03-060001167379alc:FacilityBMember2019-03-062019-03-060001167379alc:FacilityCMember2019-03-060001167379alc:FacilityCMember2019-03-062019-03-060001167379alc:RevolvingFacilityMember2019-03-060001167379alc:RevolvingFacilityMember2019-03-062019-03-060001167379alc:BorrowingsDiscountMemberalc:SeniorNotesMember2019-09-230001167379alc:DeferredFinancingCostsMember2019-09-2300011673792019-09-232019-09-230001167379alc:SeniorNotesDue2030Member2020-05-270001167379alc:BorrowingsDiscountMemberalc:SeniorNotesDue2030Member2020-05-270001167379alc:SeniorNotesDue2030Member2020-05-272020-05-270001167379alc:LocalBilateralFacilitiesMember2019-02-280001167379alc:LocalBilateralFacilitiesJapanMember2019-02-280001167379alc:LocalBilateralFacilitiesMember2019-02-012019-02-280001167379alc:LocalBilateralFacilitiesJapanMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:NominalAmountFinancialDebtMemberifrs-full:NotLaterThanOneYearMember2020-12-310001167379ifrs-full:DerivativesMemberifrs-full:GrossCarryingAmountMemberifrs-full:NotLaterThanOneYearMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:NotLaterThanOneYearMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:NominalAmountFinancialDebtMemberifrs-full:NotLaterThanOneYearMember2019-12-310001167379ifrs-full:DerivativesMemberifrs-full:GrossCarryingAmountMemberifrs-full:NotLaterThanOneYearMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:NotLaterThanOneYearMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:NominalAmountFinancialDebtMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2020-12-310001167379ifrs-full:DerivativesMemberifrs-full:GrossCarryingAmountMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:NominalAmountFinancialDebtMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2019-12-310001167379ifrs-full:DerivativesMemberifrs-full:GrossCarryingAmountMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:LaterThanOneYearAndNotLaterThanFiveYearsMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:NominalAmountFinancialDebtMemberifrs-full:LaterThanFiveYearsMember2020-12-310001167379ifrs-full:DerivativesMemberifrs-full:GrossCarryingAmountMemberifrs-full:LaterThanFiveYearsMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:LaterThanFiveYearsMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:NominalAmountFinancialDebtMemberifrs-full:LaterThanFiveYearsMember2019-12-310001167379ifrs-full:DerivativesMemberifrs-full:GrossCarryingAmountMemberifrs-full:LaterThanFiveYearsMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberifrs-full:LaterThanFiveYearsMember2019-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:NominalAmountFinancialDebtMember2020-12-310001167379ifrs-full:DerivativesMemberifrs-full:GrossCarryingAmountMember2020-12-310001167379ifrs-full:GrossCarryingAmountMemberalc:NominalAmountFinancialDebtMember2019-12-310001167379ifrs-full:DerivativesMemberifrs-full:GrossCarryingAmountMember2019-12-310001167379alc:UnamortizedDebtDiscountAndIssuanceCostsMemberalc:NominalAmountFinancialDebtMember2020-12-310001167379ifrs-full:DerivativesMemberalc:UnamortizedDebtDiscountAndIssuanceCostsMember2020-12-310001167379alc:UnamortizedDebtDiscountAndIssuanceCostsMember2020-12-310001167379alc:UnamortizedDebtDiscountAndIssuanceCostsMemberalc:NominalAmountFinancialDebtMember2019-12-310001167379ifrs-full:DerivativesMemberalc:UnamortizedDebtDiscountAndIssuanceCostsMember2019-12-310001167379alc:UnamortizedDebtDiscountAndIssuanceCostsMember2019-12-310001167379alc:NominalAmountFinancialDebtMember2020-12-310001167379alc:NominalAmountFinancialDebtMember2019-12-310001167379alc:FinancialAssetsCashInCurrentAccountsMember2020-12-310001167379alc:FinancialAssetsCashInCurrentAccountsMember2019-12-310001167379alc:FinancialAssetsCashHeldInTimeDepositsAndMoneyMarketAccountsMember2020-12-310001167379alc:FinancialAssetsCashHeldInTimeDepositsAndMoneyMarketAccountsMember2019-12-310001167379alc:FinancialAssetsCashAndCashEquivalentsMember2020-12-310001167379alc:FinancialAssetsCashAndCashEquivalentsMember2019-12-310001167379alc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2020-12-310001167379alc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2019-12-310001167379ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2020-12-310001167379ifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2019-12-310001167379ifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:TradeReceivablesMember2020-12-310001167379ifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:TradeReceivablesMember2019-12-310001167379alc:FinancialAssetsIncomeTaxReceivablesMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialAssetsIncomeTaxReceivablesMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialAssetsOtherCurrentAssetsMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialAssetsOtherCurrentAssetsMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialAssetsLongtermReceivablesFromCustomersMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialAssetsLongtermReceivablesFromCustomersMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialAssetsMinimumLeasePaymentsFromFinanceLeaseAgreementsMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialAssetsMinimumLeasePaymentsFromFinanceLeaseAgreementsMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialAssetsLongtermLoansAdvancesSecurityDepositsAndWarrantOptionsMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialAssetsLongtermLoansAdvancesSecurityDepositsAndWarrantOptionsMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379ifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMemberalc:DeferredCompensationAssetsMember2020-12-310001167379ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMemberalc:DeferredCompensationAssetsMember2019-12-310001167379alc:FinancialAssetsCurrentPortionOfLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379alc:FinancialAssetsCurrentPortionOfLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:DerivativesMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:DerivativesMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379alc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379alc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialLiabilitiesCurrentLeaseLiabilitiesMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialLiabilitiesCurrentLeaseLiabilitiesMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialLiabilitiesCurrentTradePayablesMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialLiabilitiesCurrentTradePayablesMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialLiabilitiesCurrentMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialLiabilitiesCurrentMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2019-12-310001167379alc:FinancialLiabilitiesNonCurrentLeaseLiabilitiesMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialLiabilitiesNonCurrentLeaseLiabilitiesMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialLiabilitiesNonCurrentMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialLiabilitiesNonCurrentMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberalc:FinancialLiabilitiesDerivativesMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberalc:FinancialLiabilitiesDerivativesMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379alc:SeniorNotesDue202620292030And2049Memberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2020-12-310001167379alc:SeniorNotesDue202620292030And2049Memberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:Level1OfFairValueHierarchyMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermReceivablesFromCustomersMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermReceivablesFromCustomersMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermReceivablesFromCustomersMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermReceivablesFromCustomersMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMemberalc:DeferredCompensationAssetsMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMemberalc:DeferredCompensationAssetsMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberalc:DeferredCompensationAssetsMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberalc:DeferredCompensationAssetsMember2020-12-310001167379alc:FinancialAssetsMinimumLeasePaymentsFromFinanceLeaseAgreementsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMember2020-12-310001167379alc:FinancialAssetsMinimumLeasePaymentsFromFinanceLeaseAgreementsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsMinimumLeasePaymentsFromFinanceLeaseAgreementsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialAssetsMinimumLeasePaymentsFromFinanceLeaseAgreementsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialAssetsNonCurrentLoansAdvancesAndSecurityDepositsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMember2020-12-310001167379alc:FinancialAssetsNonCurrentLoansAdvancesAndSecurityDepositsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsNonCurrentLoansAdvancesAndSecurityDepositsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialAssetsNonCurrentLoansAdvancesAndSecurityDepositsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level2OfFairValueHierarchyMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMember2020-12-310001167379alc:FinancialAssetsMoneyMarketFundsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379alc:FinancialAssetsMoneyMarketFundsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsMoneyMarketFundsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379alc:FinancialAssetsMoneyMarketFundsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsCurrentPortionOfLongtermFinancialInvestmentsMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsCurrentPortionOfLongtermFinancialInvestmentsMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsCurrentPortionOfLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsCurrentPortionOfLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMemberalc:FinancialAssetsOtherMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMemberalc:FinancialAssetsOtherMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberalc:FinancialAssetsOtherMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberalc:FinancialAssetsOtherMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsVATReceivablesMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsVATReceivablesMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsVATReceivablesMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsVATReceivablesMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2020-12-310001167379ifrs-full:DerivativesMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:DerivativesMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:DerivativesMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:DerivativesMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMemberifrs-full:Level1OfFairValueHierarchyMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMemberifrs-full:Level2OfFairValueHierarchyMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMemberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2020-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialLiabilitiesCurrentBorrowingsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMemberalc:FinancialLiabilitiesDerivativesMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level2OfFairValueHierarchyMemberalc:FinancialLiabilitiesDerivativesMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesDerivativesMember2020-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesDerivativesMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2020-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:Level1OfFairValueHierarchyMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermReceivablesFromCustomersMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermReceivablesFromCustomersMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermReceivablesFromCustomersMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsLongtermReceivablesFromCustomersMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMemberalc:DeferredCompensationAssetsMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMemberalc:DeferredCompensationAssetsMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberalc:DeferredCompensationAssetsMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberalc:DeferredCompensationAssetsMember2019-12-310001167379alc:FinancialAssetsMinimumLeasePaymentsFromFinanceLeaseAgreementsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMember2019-12-310001167379alc:FinancialAssetsMinimumLeasePaymentsFromFinanceLeaseAgreementsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsMinimumLeasePaymentsFromFinanceLeaseAgreementsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialAssetsMinimumLeasePaymentsFromFinanceLeaseAgreementsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialAssetsNonCurrentLoansAdvancesAndSecurityDepositsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMember2019-12-310001167379alc:FinancialAssetsNonCurrentLoansAdvancesAndSecurityDepositsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsNonCurrentLoansAdvancesAndSecurityDepositsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialAssetsNonCurrentLoansAdvancesAndSecurityDepositsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level2OfFairValueHierarchyMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMember2019-12-310001167379alc:FinancialAssetsMoneyMarketFundsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379alc:FinancialAssetsMoneyMarketFundsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsMoneyMarketFundsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379alc:FinancialAssetsMoneyMarketFundsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsCurrentPortionOfLongtermFinancialInvestmentsMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsCurrentPortionOfLongtermFinancialInvestmentsMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsCurrentPortionOfLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsCurrentPortionOfLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMemberalc:FinancialAssetsOtherMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMemberalc:FinancialAssetsOtherMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberalc:FinancialAssetsOtherMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberalc:FinancialAssetsOtherMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsVATReceivablesMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level1OfFairValueHierarchyMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsVATReceivablesMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsVATReceivablesMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberalc:FinancialAssetsVATReceivablesMemberifrs-full:FinancialAssetsAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:DerivativesMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:DerivativesMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level2OfFairValueHierarchyMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:DerivativesMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:DerivativesMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMemberifrs-full:Level1OfFairValueHierarchyMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMemberifrs-full:Level2OfFairValueHierarchyMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMemberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberalc:FinancialLiabilitiesNoncurrentBorrowingsMember2019-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMemberifrs-full:Level2OfFairValueHierarchyMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialLiabilitiesCurrentBorrowingsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level1OfFairValueHierarchyMemberalc:FinancialLiabilitiesDerivativesMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberifrs-full:Level2OfFairValueHierarchyMemberalc:FinancialLiabilitiesDerivativesMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:Level3OfFairValueHierarchyMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesDerivativesMember2019-12-310001167379ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLossCategoryMemberifrs-full:RecurringFairValueMeasurementMemberalc:FinancialLiabilitiesDerivativesMember2019-12-310001167379ifrs-full:RecurringFairValueMeasurementMemberifrs-full:FinancialLiabilitiesAtAmortisedCostCategoryMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2018-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2018-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2020-01-012020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2019-01-012019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-01-012020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2019-01-012019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeCategoryMember2020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialAssetsLongtermFinancialInvestmentsMemberifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember2020-12-310001167379alc:PricingMeasurementInputMemberalc:FinancialAssetsLongtermFinancialInvestmentsMember2020-12-310001167379alc:PricingMeasurementInputMemberalc:FinancialAssetsLongtermFinancialInvestmentsMember2020-01-012020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2018-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2020-01-012020-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2019-01-012019-12-310001167379ifrs-full:Level3OfFairValueHierarchyMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2020-12-310001167379srt:MinimumMember2020-12-310001167379srt:MaximumMember2020-12-310001167379alc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2019-03-012019-03-310001167379srt:MinimumMember2019-12-310001167379srt:MaximumMember2019-12-310001167379alc:SignificantParametersMeasurementInputMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2020-12-310001167379alc:SignificantParametersMeasurementInputMemberalc:FinancialLiabilitiesContingentConsiderationLiabilitiesMember2020-01-012020-12-310001167379alc:FinancialLiabilitiesContingentConsiderationLiabilitiesMemberalc:ProbabilityOfSuccessMeasurementInputMember2020-01-012020-12-310001167379ifrs-full:InterestRateRiskMember2020-01-012020-12-310001167379ifrs-full:CommodityPriceRiskMember2020-01-012020-12-310001167379alc:WarrantyGovernmentalInvestigationsAndOtherLegalProceedingsProvisionsMember2020-06-252020-06-25alc:complaint00011673792015-01-012019-12-31alc:numberOfCases0001167379alc:ClaimsOfUSPatentsMember2020-06-232020-06-230001167379alc:ClaimsOfEuropeanPatentsMember2020-06-232020-06-230001167379alc:WarrantyGovernmentalInvestigationsAndOtherLegalProceedingsProvisionsMember2019-12-310001167379alc:WarrantyGovernmentalInvestigationsAndOtherLegalProceedingsProvisionsMember2018-12-310001167379alc:WarrantyGovernmentalInvestigationsAndOtherLegalProceedingsProvisionsMember2017-12-310001167379alc:WarrantyGovernmentalInvestigationsAndOtherLegalProceedingsProvisionsMember2020-01-012020-12-310001167379alc:WarrantyGovernmentalInvestigationsAndOtherLegalProceedingsProvisionsMember2019-01-012019-12-310001167379alc:WarrantyGovernmentalInvestigationsAndOtherLegalProceedingsProvisionsMember2018-01-012018-12-310001167379alc:WarrantyGovernmentalInvestigationsAndOtherLegalProceedingsProvisionsMember2020-12-310001167379ifrs-full:RestructuringProvisionMember2019-12-310001167379ifrs-full:RestructuringProvisionMember2018-12-310001167379ifrs-full:RestructuringProvisionMember2017-12-310001167379ifrs-full:RestructuringProvisionMember2020-01-012020-12-310001167379ifrs-full:RestructuringProvisionMember2019-01-012019-12-310001167379ifrs-full:RestructuringProvisionMember2018-01-012018-12-310001167379ifrs-full:RestructuringProvisionMember2020-12-310001167379ifrs-full:PropertyPlantAndEquipmentMember2020-01-012020-12-310001167379ifrs-full:PropertyPlantAndEquipmentMember2019-01-012019-12-310001167379ifrs-full:PropertyPlantAndEquipmentMember2018-01-012018-12-310001167379ifrs-full:RightofuseAssetsMember2020-01-012020-12-310001167379ifrs-full:RightofuseAssetsMember2019-01-012019-12-310001167379ifrs-full:RightofuseAssetsMember2018-01-012018-12-310001167379ifrs-full:IntangibleAssetsOtherThanGoodwillMember2020-01-012020-12-310001167379ifrs-full:IntangibleAssetsOtherThanGoodwillMember2019-01-012019-12-310001167379ifrs-full:IntangibleAssetsOtherThanGoodwillMember2018-01-012018-12-310001167379alc:FinancialAssetMember2020-01-012020-12-310001167379alc:FinancialAssetMember2019-01-012019-12-310001167379alc:FinancialAssetMember2018-01-012018-12-310001167379alc:OtherNoncurrentAssetsMember2020-01-012020-12-310001167379alc:OtherNoncurrentAssetsMember2019-01-012019-12-310001167379alc:OtherNoncurrentAssetsMember2018-01-012018-12-310001167379alc:FinancialLiabilitiesNoncurrentBorrowingsMember2019-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMember2019-12-310001167379alc:FinancialLiabilitiesNonCurrentLeaseLiabilitiesMember2019-12-310001167379alc:FinancialLiabilitiesCurrentLeaseLiabilitiesMember2019-12-310001167379alc:FinancialLiabilitiesNoncurrentBorrowingsMember2020-01-012020-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMember2020-01-012020-12-310001167379alc:FinancialLiabilitiesNonCurrentLeaseLiabilitiesMember2020-01-012020-12-310001167379alc:FinancialLiabilitiesCurrentLeaseLiabilitiesMember2020-01-012020-12-310001167379alc:FinancialLiabilitiesNoncurrentBorrowingsMember2020-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMember2020-12-310001167379alc:FinancialLiabilitiesNonCurrentLeaseLiabilitiesMember2020-12-310001167379alc:FinancialLiabilitiesCurrentLeaseLiabilitiesMember2020-12-310001167379alc:FinancialAssetsOtherFinancialReceivablesfromFormerParentMember2018-12-310001167379alc:FinancialLiabilitiesNoncurrentBorrowingsMember2018-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMember2018-12-310001167379alc:FinancialLiabilitiesOtherMember2018-12-310001167379alc:FinancialLiabilitiesNonCurrentLeaseLiabilitiesMember2018-12-310001167379alc:FinancialLiabilitiesCurrentLeaseLiabilitiesMember2018-12-310001167379alc:FinancialLiabilitiesNoncurrentBorrowingsMember2019-01-012019-12-310001167379alc:FinancialLiabilitiesCurrentBorrowingsMember2019-01-012019-12-310001167379ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyRequiredByIFRSsMemberalc:FinancialLiabilitiesNonCurrentLeaseLiabilitiesMember2018-12-310001167379ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyRequiredByIFRSsMemberalc:FinancialLiabilitiesCurrentLeaseLiabilitiesMember2018-12-310001167379alc:FinancialLiabilitiesNonCurrentLeaseLiabilitiesMember2019-01-012019-12-310001167379alc:FinancialLiabilitiesCurrentLeaseLiabilitiesMember2019-01-012019-12-310001167379alc:FinancialAssetsOtherFinancialReceivablesfromFormerParentMember2019-01-012019-12-310001167379alc:FinancialLiabilitiesOtherMember2019-01-012019-12-310001167379alc:FinancialAssetsOtherFinancialReceivablesfromFormerParentMember2019-12-310001167379alc:FinancialLiabilitiesOtherMember2019-12-310001167379ifrs-full:PresentValueOfDefinedBenefitObligationMember2020-01-012020-12-3100011673792020-07-012020-09-300001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:PresentValueOfDefinedBenefitObligationMember2020-01-012020-12-310001167379alc:OtherIncomeMember2020-10-012020-12-310001167379alc:ProvisionsAndOtherNonCurrentLiabilitiesMember2020-10-012020-12-310001167379country:GBifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:PensionDefinedBenefitPlansMemberifrs-full:PresentValueOfDefinedBenefitObligationMember2019-12-310001167379ifrs-full:PensionDefinedBenefitPlansMemberifrs-full:PresentValueOfDefinedBenefitObligationMember2018-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:PresentValueOfDefinedBenefitObligationMember2019-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:PresentValueOfDefinedBenefitObligationMember2018-12-310001167379ifrs-full:PensionDefinedBenefitPlansMemberifrs-full:PresentValueOfDefinedBenefitObligationMember2020-01-012020-12-310001167379ifrs-full:PensionDefinedBenefitPlansMemberifrs-full:PresentValueOfDefinedBenefitObligationMember2019-01-012019-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:PresentValueOfDefinedBenefitObligationMember2019-01-012019-12-310001167379ifrs-full:PensionDefinedBenefitPlansMemberifrs-full:PresentValueOfDefinedBenefitObligationMember2020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:PresentValueOfDefinedBenefitObligationMember2020-12-310001167379ifrs-full:PlanAssetsMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379ifrs-full:PlanAssetsMemberifrs-full:PensionDefinedBenefitPlansMember2018-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:PlanAssetsMember2019-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:PlanAssetsMember2018-12-310001167379ifrs-full:PlanAssetsMemberifrs-full:PensionDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:PlanAssetsMemberifrs-full:PensionDefinedBenefitPlansMember2019-01-012019-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:PlanAssetsMember2020-01-012020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:PlanAssetsMember2019-01-012019-12-310001167379ifrs-full:PlanAssetsMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:PlanAssetsMember2020-12-310001167379ifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379ifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMember2020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMember2019-12-310001167379ifrs-full:PensionDefinedBenefitPlansMember2018-12-310001167379ifrs-full:PensionDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:PensionDefinedBenefitPlansMember2019-01-012019-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMember2018-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMember2019-01-012019-12-310001167379alc:PrepaidBenefitCostsMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:PrepaidBenefitCostsMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberalc:PrepaidBenefitCostsMember2020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberalc:PrepaidBenefitCostsMember2019-12-310001167379ifrs-full:PensionDefinedBenefitPlansMemberalc:AccruedBenefitLiabilityMember2020-12-310001167379ifrs-full:PensionDefinedBenefitPlansMemberalc:AccruedBenefitLiabilityMember2019-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberalc:AccruedBenefitLiabilityMember2020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberalc:AccruedBenefitLiabilityMember2019-12-310001167379alc:DefinedBenefitPlanActiveMemberMembercountry:CHifrs-full:CountryOfDomicileMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanActiveMemberMemberifrs-full:ForeignCountriesMembercountry:USifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanActiveMemberMembercountry:DEifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanActiveMemberMembercountry:GBifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanActiveMemberMemberalc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanActiveMemberMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMembercountry:CHifrs-full:CountryOfDomicileMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMemberifrs-full:ForeignCountriesMembercountry:USifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMembercountry:DEifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMembercountry:GBifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMemberalc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379country:CHifrs-full:CountryOfDomicileMemberifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2020-12-310001167379ifrs-full:ForeignCountriesMembercountry:USifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2020-12-310001167379country:DEifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2020-12-310001167379country:GBifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2020-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2020-12-310001167379ifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2020-12-310001167379country:CHifrs-full:CountryOfDomicileMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379ifrs-full:ForeignCountriesMembercountry:USifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379country:DEifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379country:GBifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379country:CHifrs-full:CountryOfDomicileMemberifrs-full:WhollyUnfundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379ifrs-full:ForeignCountriesMemberifrs-full:WhollyUnfundedDefinedBenefitPlansMembercountry:USifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379country:DEifrs-full:ForeignCountriesMemberifrs-full:WhollyUnfundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379country:GBifrs-full:ForeignCountriesMemberifrs-full:WhollyUnfundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:WhollyUnfundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379ifrs-full:WhollyUnfundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379country:CHifrs-full:CountryOfDomicileMemberifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379ifrs-full:ForeignCountriesMemberifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMembercountry:USifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379country:DEifrs-full:ForeignCountriesMemberifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379country:GBifrs-full:ForeignCountriesMemberifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379ifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379alc:DefinedBenefitPlanActiveMemberMembercountry:CHifrs-full:CountryOfDomicileMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanActiveMemberMemberifrs-full:ForeignCountriesMembercountry:USifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanActiveMemberMembercountry:DEifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanActiveMemberMembercountry:GBifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanActiveMemberMemberalc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanActiveMemberMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMembercountry:CHifrs-full:CountryOfDomicileMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMemberifrs-full:ForeignCountriesMembercountry:USifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMembercountry:DEifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMembercountry:GBifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMemberalc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:DefinedBenefitPlanDeferredPensionersMemberMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379country:CHifrs-full:CountryOfDomicileMemberifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2019-12-310001167379ifrs-full:ForeignCountriesMembercountry:USifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2019-12-310001167379country:DEifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2019-12-310001167379country:GBifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2019-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2019-12-310001167379ifrs-full:PensionDefinedBenefitPlansMemberalc:DefinedBenefitPlanPensionersMemberMember2019-12-310001167379country:CHifrs-full:CountryOfDomicileMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379ifrs-full:ForeignCountriesMembercountry:USifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379country:DEifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379country:GBifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379country:CHifrs-full:CountryOfDomicileMemberifrs-full:WhollyUnfundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379ifrs-full:ForeignCountriesMemberifrs-full:WhollyUnfundedDefinedBenefitPlansMembercountry:USifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379country:DEifrs-full:ForeignCountriesMemberifrs-full:WhollyUnfundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379country:GBifrs-full:ForeignCountriesMemberifrs-full:WhollyUnfundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:WhollyUnfundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379ifrs-full:WhollyUnfundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379country:CHifrs-full:CountryOfDomicileMemberifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379ifrs-full:ForeignCountriesMemberifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMembercountry:USifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379country:DEifrs-full:ForeignCountriesMemberifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379country:GBifrs-full:ForeignCountriesMemberifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379alc:OtherCountriesMemberifrs-full:ForeignCountriesMemberifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379ifrs-full:WhollyOrPartlyFundedDefinedBenefitPlansMemberifrs-full:PensionDefinedBenefitPlansMember2019-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:ForeignCountriesMembercountry:US2020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:ForeignCountriesMembercountry:US2019-12-310001167379ifrs-full:ActuarialAssumptionOfDiscountRatesMember2020-12-310001167379ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMember2020-01-012020-12-310001167379ifrs-full:ActuarialAssumptionOfLifeExpectancyAfterRetirementMember2020-12-310001167379ifrs-full:ActuarialAssumptionOfExpectedRatesOfPensionIncreasesMember2020-12-310001167379alc:ActuarialAssumptionOfInterestOnSavingsAccountMember2020-12-310001167379ifrs-full:ActuarialAssumptionOfExpectedRatesOfSalaryIncreasesMember2020-12-310001167379srt:MinimumMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379srt:MaximumMemberifrs-full:PensionDefinedBenefitPlansMember2020-12-310001167379ifrs-full:NotLaterThanOneYearMemberifrs-full:PensionDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:NotLaterThanOneYearMember2020-01-012020-12-310001167379ifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMemberifrs-full:PensionDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMember2020-01-012020-12-310001167379ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMemberifrs-full:PensionDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMember2020-01-012020-12-310001167379ifrs-full:LaterThanThreeYearsAndNotLaterThanFourYearsMemberifrs-full:PensionDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:LaterThanThreeYearsAndNotLaterThanFourYearsMember2020-01-012020-12-310001167379ifrs-full:LaterThanFourYearsAndNotLaterThanFiveYearsMemberifrs-full:PensionDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:LaterThanFourYearsAndNotLaterThanFiveYearsMember2020-01-012020-12-310001167379ifrs-full:LaterThanFiveYearsMemberifrs-full:PensionDefinedBenefitPlansMember2020-01-012020-12-310001167379ifrs-full:PostemploymentMedicalDefinedBenefitPlansMemberifrs-full:LaterThanFiveYearsMember2020-01-012020-12-3100011673792019-04-080001167379alc:RestrictedAwardsMember2020-01-012020-12-310001167379alc:RestrictedAwardsMember2019-04-092019-12-310001167379alc:PerformanceAwardsMember2020-01-012020-12-310001167379alc:PerformanceAwardsMember2019-04-092019-12-3100011673792019-04-092019-12-310001167379alc:AlconInc.LongTermIncentivePlanMember2020-12-310001167379alc:AlconInc.DeferredBonusStockPlanMember2020-12-310001167379alc:AlconSwissEmployeeShareOwnershipPlanMember2020-12-310001167379alc:ShareSavingsPlansMember2020-12-310001167379alc:AlconInc.LongTermIncentivePlanMembersrt:MinimumMember2020-01-012020-12-310001167379alc:AlconInc.LongTermIncentivePlanMembersrt:MaximumMember2020-01-012020-12-310001167379alc:AlconInc.LongTermIncentivePlanMember2020-01-012020-12-31alc:metric0001167379srt:ChiefExecutiveOfficerMember2019-12-310001167379alc:TopLeadersMember2019-12-310001167379alc:RestrictedAwardsMember2019-01-012019-12-310001167379srt:MinimumMember2020-01-012020-12-310001167379srt:MaximumMember2020-01-012020-12-310001167379alc:DrArthurCummingsMember2020-01-012020-12-310001167379alc:DrArthurCummingsMember2019-01-012019-12-3100011673792019-01-012019-04-080001167379ifrs-full:LaterThanOneYearAndNotLaterThanTwoYearsMember2020-12-310001167379ifrs-full:LaterThanTwoYearsAndNotLaterThanThreeYearsMember2020-12-310001167379ifrs-full:LaterThanThreeYearsAndNotLaterThanFourYearsMember2020-12-310001167379ifrs-full:LaterThanFourYearsAndNotLaterThanFiveYearsMember2020-12-310001167379ifrs-full:PotentialOrdinaryShareTransactionsMember2021-02-232021-02-230001167379alc:AlconLaboratoriosArgentinaS.A.Member2020-01-012020-12-310001167379alc:AlconLaboratoriesAustraliaPtyLtdMember2020-01-012020-12-310001167379alc:AlconOphthalmikaGmbHMember2020-01-012020-12-310001167379alc:AlconLaboratoriesBelgiumBVBAMember2020-01-012020-12-310001167379alc:N.V.AlconS.A.Member2020-01-012020-12-310001167379alc:AlconBrasilCuidadosComASadeLtdaMember2020-01-012020-12-310001167379alc:AlconCanadaInc.Member2020-01-012020-12-310001167379alc:AlconLaboratoriosChileLtd.Member2020-01-012020-12-310001167379alc:AlconChinaOphthalmicProductCo.Ltd.Member2020-01-012020-12-310001167379alc:AlconHongKongLimitedMember2020-01-012020-12-310001167379alc:LaboratoriosAlcondeColombiaS.A.Member2020-01-012020-12-310001167379alc:AlconPharmaceuticalsCzechRepublics.r.o.Member2020-01-012020-12-310001167379alc:AlconNordicASMember2020-01-012020-12-310001167379alc:AlconLabEcuadorS.A.Member2020-01-012020-12-310001167379alc:LaboratoiresAlconS.A.S.Member2020-01-012020-12-310001167379alc:AlconDeutschlandGmbHMember2020-01-012020-12-310001167379alc:CIBAVisionGmbHMember2020-01-012020-12-310001167379alc:WaveLightGmbHMember2020-01-012020-12-310001167379alc:AlconLaboratoriesHellasSingleMemberCommercialandIndustrialS.A.C.I.Member2020-01-012020-12-310001167379alc:AlconHungaryPharmaceuticalsTradingLimitedLiabilityCompanyMember2020-01-012020-12-310001167379alc:AlconLaboratoriesIndiaPrivateLimitedMember2020-01-012020-12-310001167379alc:PT.CIBAVisionBatamMember2020-01-012020-12-310001167379alc:AlconLaboratoriesIrelandLimitedMember2020-01-012020-12-310001167379alc:OptonolLtd.Member2020-01-012020-12-310001167379alc:AlconItaliaS.p.A.Member2020-01-012020-12-310001167379alc:AlconJapanLtd.Member2020-01-012020-12-310001167379alc:AlconLaboratoriesMalaysiaSdn.Bhd.Member2020-01-012020-12-310001167379alc:CIBAVisionJohorSdn.Bhd.Member2020-01-012020-12-310001167379alc:AlconLaboratoriosS.A.deC.V.Member2020-01-012020-12-310001167379alc:AlconNederlandB.V.Member2020-01-012020-12-310001167379alc:AlconLaboratoriesNewZealandLtd.Member2020-01-012020-12-310001167379alc:AlconCentroamericaS.A.Member2020-01-012020-12-310001167379alc:AlconPharmaceuticaldelPeruS.A.Member2020-01-012020-12-310001167379alc:AlconLaboratoriesPhilippinesInc.Member2020-01-012020-12-310001167379alc:AlconPolskaSp.zo.o.Member2020-01-012020-12-310001167379alc:AlconPortugalProdutoseEquipamentosOftalmolgicosLda.Member2020-01-012020-12-310001167379alc:AlconPuertoRicoInc.Member2020-01-012020-12-310001167379alc:AlconRomaniaS.R.L.Member2020-01-012020-12-310001167379alc:AlconFarmacevtikaLLCMember2020-01-012020-12-310001167379alc:AlconPteLtdMember2020-01-012020-12-310001167379alc:AlconSingaporeManufacturingPteLtdMember2020-01-012020-12-310001167379alc:CIBAVisionAsianManufacturingandLogisticsPteLtd.Member2020-01-012020-12-310001167379alc:AlconLaboratoriesSouthAfricaPtyLtd.Member2020-01-012020-12-310001167379alc:AlconKoreaLtd.Member2020-01-012020-12-310001167379alc:AlconHealthcareS.A.Member2020-01-012020-12-310001167379alc:AlconGrieshaberAGMember2020-01-012020-12-310001167379alc:AlconManagementSAMember2020-01-012020-12-310001167379alc:AlconPharmaceuticalsLtd.Member2020-01-012020-12-310001167379alc:AlconServicesAGMember2020-01-012020-12-310001167379alc:AlconSwitzerlandSAMember2020-01-012020-12-310001167379alc:AlconLaboratoriesThailandLimitedMember2020-01-012020-12-310001167379alc:AlconLaboratuvarlariTicaretA.S.Member2020-01-012020-12-310001167379alc:AlconUkraineLLCMember2020-01-012020-12-310001167379alc:AlconEyeCareUKLimitedMember2020-01-012020-12-310001167379alc:AlconFinanceCorporationMember2020-01-012020-12-310001167379alc:AlconLaboratoriesInc.fkaAlconUSHoldingsCorporationMember2020-01-012020-12-310001167379alc:AlconRefractiveHorizonsLLCMember2020-01-012020-12-310001167379alc:AlconResearchLLCMember2020-01-012020-12-310001167379alc:AlconVisionLLCMember2020-01-012020-12-310001167379alc:CIBAVisionLLCMember2020-01-012020-12-310001167379alc:WaveLightInc.Member2020-01-012020-12-310001167379alc:ClarVistaMedicalInc.Member2020-01-012020-12-310001167379alc:PowerVisionInc.Member2020-01-012020-12-310001167379alc:TearFilmInnovationsInc.Member2020-01-012020-12-310001167379alc:TrueVisionSystemsInc.Member2020-01-012020-12-310001167379alc:AlconLenSxIncMember2020-01-012020-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 20-F
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020
OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________
OR
 SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring the shell company report __________
Commission file number: 001-31269
Alcon Inc.
(Exact name of Registrant as specified in its charter)
N/A
(Translation of Registrant's name into English)
Switzerland
(Jurisdiction of incorporation or organization)
Rue Louis-d'Affry 6, 1701 Fribourg, Switzerland
(Address of principal executive office)

Royce Bedward, Chemin de Blandonnet 8, 1214 Vernier, Geneva, Switzerland; Tel: +41 58 911 20 00; Fax +41 58 911 32 22
(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act.
 Title of each classTrading Symbol(s) Name of each exchange on which registered 
 Ordinary Shares, nominal value CHF 0.04 per shareALC SIX Swiss Exchange 
New York Stock Exchange
Securities registered or to be registered pursuant to Section 12(g) of the Act. None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None
Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report. 489,219,355
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes     No
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes     No 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes     No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," and "emerging growth company" and in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer Accelerated Filer Non-accelerated Filer
Emerging Growth Company 
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. 
† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP
 
International Financial Reporting Standards
 
Other
as issued by the International Accounting Standards Board
If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. Item 17     Item 18 
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 



INDEXPage
Introduction and Use of Certain Terms
Market Information
Special Note About Forward-Looking Statements
PART I
Item 1.Identity of Directors, Senior Management and Advisers
Item 2.Offer Statistics and Expected Timetable
Item 3.Key Information
Item 4.Information on the Company
Item 4A.Unresolved Staff Comments
Item 5.Operating and Financial Review and Prospects
Item 6.Directors, Senior Management and Employees
Item 7.Major Shareholders and Related Party Transactions
Item 8.Financial Information
Item 9.The Offer and Listing
Item 10.Additional Information
Item 11.Quantitative and Qualitative Disclosures About Market Risk
Item 12.Description of Securities Other than Equity Securities
PART II
Item 13.Defaults, Dividend Arrearages and Delinquencies
Item 14.Material Modifications to the Rights of Security Holders and Use of Proceeds
Item 15.Controls and Procedures
Item 16A.Audit Committee and Financial Expert
Item 16B.Code of Ethics
Item 16C.Principal Accountant Fees and Services
Item 16D.Exemptions from the Listing Standards for Audit Committees
Item 16E.Purchases of Equity Securities by the Issuer and Affiliated Purchasers
Item 16F.Change in Registrant's Certifying Accountant
Item 16G.Corporate Governance
Item 16H.Mine Safety Disclosure
PART III
Item 17.Financial Statements
Item 18.Financial Statements
Item 19.Exhibits
Consolidated Financial Statements of Alcon Inc.



INTRODUCTION AND USE OF CERTAIN TERMS
Alcon Inc. publishes Consolidated Financial Statements expressed in US dollars. Our Consolidated Financial Statements responsive to Item 18 of this Annual Report filed on Form 20-F with the US Securities and Exchange Commission (the "Annual Report") are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). "Item 5. Operating and Financial Review and Prospects", together with “Item 4.B. Business Overview” and “Item 6.D. Employees”, constitute the Operating and Financial Review ("Rapport annuel"), as defined by the Swiss Code of Obligations.
Unless the context requires otherwise, the words "we", "our", "us", "Alcon", "Company" and similar words or phrases in this Annual Report refer to Alcon Inc. and its consolidated subsidiaries and the words "Novartis", "Novartis Group" and "Former Parent" refer to Novartis AG and its consolidated affiliates. The term "Alcon Division" means the Alcon business as it was operated under Novartis. The term "Spin-off" refers to the distribution of a dividend-in-kind of Alcon shares to Novartis shareholders and ADR holders as approved by Novartis shareholders at their Annual General Meeting held on February 28, 2019. In this Annual Report, references to the "eye care market" are to the eye care market in which we participate, including the sale of ophthalmic surgical devices, contact lenses and ocular health products, but not including the sale of spectacles and prescription ophthalmic pharmaceutical products; references to "United States dollars", "US dollars", "USD" or "$" are to the lawful currency of the United States of America, and references to "CHF" are to Swiss francs, the lawful currency of Switzerland; references to "Latin America" are to Central and South America, including the Caribbean, unless the context otherwise requires; references to "associates" are to our employees; references to the "SEC" are to the US Securities and Exchange Commission, references to the "FDA" are to the US Food and Drug Administration, and references to "EMA" are to the European Medicines Agency, an agency of the EU; references to the "NYSE" are to the New York Stock Exchange, and references to the "SIX" are to the SIX Swiss Exchange; references to "AT-IOL" mean advanced technology intraocular lenses; and references to "Alcon shares" or "our shares" are to Alcon ordinary shares, nominal value CHF 0.04 per share, with ticker symbol "ALC."
All product names appearing in italics are trademarks owned by or licensed to Alcon or its subsidiaries. Product names identified by a "®" or a "™" are trademarks that are not owned by or licensed to Alcon or its subsidiaries and are the property of their respective owners.
MARKET INFORMATION
This Annual Report contains certain industry and market data that were obtained from third-party sources, such as industry surveys and industry publications, including, but not limited to, publications by Market Scope, GfK and Nielsen. This Annual Report also contains other industry and market data, including market sizing estimates, growth and other projections and information regarding our competitive position, prepared by our management on the basis of such industry sources and our management's knowledge of and experience in the industry and markets in which we operate (including management's estimates and assumptions relating to such industry and markets based on that knowledge). Our management has developed its knowledge of such industry and markets through its experience and participation in these markets.
In addition, industry surveys and industry publications generally state that the information they contain has been obtained from sources believed to be reliable but that the accuracy and completeness of such information is not guaranteed and that any projections they contain are based on a number of significant assumptions. Forecasts, projections and other forward-looking information obtained from these sources involve risks and uncertainties and are subject to change based on various factors, including those discussed in the section "Special Note About Forward-Looking Statements" below. You should not place undue reliance on these statements.
1


SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS
This Annual Report contains, and our officers and representatives may from time to time make, certain “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “commitment,” “look forward,” “maintain,” “plan,” “goal,” “seek,” “target,” “assume,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements Alcon makes regarding its liquidity, revenue, gross margin, effective tax rate, foreign currency exchange movements, earnings per share, its plans and decisions relating to various capital expenditures, capital allocation priorities and other discretionary items, market growth assumptions, and generally, its expectations concerning its future performance and the effects of the COVID-19 pandemic on its businesses. You should not place undue reliance on these statements.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on Alcon’s current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties and risks that are difficult to predict. Such forward-looking statements are subject to various risks and uncertainties facing Alcon, including:
the effect of the COVID-19 pandemic as well as other viral or disease outbreaks;
the commercial success of its products and its ability to maintain and strengthen its position in its markets;
the success of its research and development efforts, including its ability to innovate to compete effectively;
its success in completing and integrating strategic acquisitions;
pricing pressure from changes in third party payor coverage and reimbursement methodologies;
global and regional economic, financial, legal, tax, political and social change;
data breaches or other disruptions of its information technology systems;
ongoing industry consolidation;
its ability to properly educate and train healthcare providers on its products;
changes in inventory levels or buying patterns of its customers;
the impact of a disruption in its global supply chain or important facilities;
ability to service its debt obligations;
its ability to comply with the US Foreign Corrupt Practices Act of 1977 and other applicable anti-corruption laws, particularly given that it has entered into a three-year Deferred Prosecution Agreement with the U.S. Department of Justice;
uncertainty and impact relating to the potential phasing out of LIBOR and transition to alternative reference rates;
the need for additional financing through the issuance of debt or equity;
its reliance on outsourcing key business functions;
its ability to protect its intellectual property;
the impact on unauthorized importation of its products from countries with lower prices to countries with higher prices;
uncertainties regarding the success of Alcon’s separation and Spin-off from Novartis and the subsequent transformation program, including the expected separation and transformation costs, as well as any potential savings, incurred or realized by Alcon;
the effects of litigation, including product liability lawsuits and governmental investigations;
its ability to comply with all laws to which it may be subject;
effect of product recalls or voluntary market withdrawals;
2


the implementation of its enterprise resource planning system;
its ability to attract and retain qualified personnel;
the accuracy of its accounting estimates and assumptions, including pension and other post-employment benefit plan obligations and the carrying value of intangible assets;
the ability to obtain regulatory clearance and approval of its products as well as compliance with any post-approval obligations, including quality control of its manufacturing;
legislative and regulatory reform;
the ability of Alcon Pharmaceuticals Ltd. to comply with its investment tax incentive agreement with the Swiss State Secretariat for Economic Affairs in Switzerland and the Canton of Fribourg, Switzerland;
its ability to manage environmental, social and governance matters to the satisfaction of its many stakeholders, some of which may have competing interests;
its ability to operate as a stand-alone company;
whether the transitional services Novartis has agreed to provide Alcon are sufficient;
the impact of the Spin-off from Novartis on Alcon’s shareholder base;
the impact of being listed on two stock exchanges;
the ability to declare and pay dividends;
the different rights afforded to its shareholders as a Swiss corporation compared to a U.S. corporation; and
the effect of maintaining or losing its foreign private issuer status under U.S. securities laws.
Some of these factors are discussed in more detail in this Annual Report, including under “Item 3. Key Information—3.D. Risk Factors”, “Item 4. Information on the Company” and “Item 5. Operating and Financial Review and Prospects”. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this Annual Report as anticipated, believed, estimated or expected. We provide the information in this Annual Report as of the date of its filing. We do not intend, and do not assume any obligation, to update any information or forward-looking statements set out in this Annual Report as a result of new information, future events or otherwise.
3


PART I
ITEM 1.    IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
1.A.            DIRECTORS AND SENIOR MANAGEMENT
Not Applicable.
1.B.            ADVISERS
Not Applicable.
1.C.            AUDITORS
Not Applicable.

4


ITEM 2.    OFFER STATISTICS AND EXPECTED TIMETABLE
Not Applicable.
5


ITEM 3.    KEY INFORMATION
3.A.            [RESERVED]
3.B.            CAPITALIZATION AND INDEBTEDNESS
Not Applicable.
3.C.            REASONS FOR THE OFFER AND USE OF PROCEEDS
Not applicable.
6


3.D.            RISK FACTORS
You should carefully consider the risks described below, together with all of the other information included in this Annual Report, in evaluating Alcon and our securities. The following risk factors could adversely affect our business, financial condition, results of operations and the price of our securities.
Risks Related to Our Business Generally
The effects of the ongoing COVID-19 pandemic have had, and may continue to have, a material adverse impact on our business, net sales, profitability, financial condition, liquidity and cash flows.
An outbreak of a strain of coronavirus that was discovered in China in late 2019 evolved into a global pandemic. To stem the spread of COVID-19 disease, in early 2020 nearly all major markets began to implement “stay-at-home” orders, business shutdowns, including offices of eye care professionals, and the deferral of non-urgent surgical procedures, leading to a global economic standstill. While these “stay-at-home” orders were largely lifted by mid-2020, some markets reintroduced targeted “stay-at-home” orders throughout the remainder of 2020.
The spread of COVID-19 caused us to modify aspects of our business practices, including restricting associate travel, encouraging office-based associates to work from home for a substantial part of 2020 and implementing social distancing measures at our manufacturing sites and, upon the return of our associates, in our office locations. Such actions have resulted in disruptions to our supply chain, operations, facilities and associate workforce. If “stay-at-home" orders, business shutdowns and the deferral of non-urgent surgical procedures are re-implemented broadly to combat the spread of COVID-19, our business, net sales, financial condition, liquidity and cash flows would be adversely affected further.
The magnitude of the continued negative impact of the COVID-19 pandemic on our business, net sales, financial condition, liquidity and cash flows depends on future developments that are unpredictable and most of which are outside of our control, including the duration and scope of the pandemic, related governmental advisories and restrictions to contain COVID-19, how quickly economic conditions improve once the COVID-19 pandemic subsides, the development of therapeutic medicines and vaccines and whether there are subsequent outbreaks. We may be unable to prevent or mitigate any or all of the pandemic's near- or long-term adverse impacts, which could be material, such as:
Non-urgent medical procedures may be prohibited or restricted again. During 2020, most geographic markets prohibited or restricted non-urgent medical procedures. As a result, many eye care professionals delayed or canceled orders. While markets generally have reopened, some markets have reintroduced closures. Further, some patients remain reluctant to seek medical attention, and, for those who do, there has been a substantial backlog due to limited capacity and the need to social distance, which has had an adverse effect on our sales as markets recover from the pandemic. Also, we could have difficulty timely collecting accounts receivable due from eye care professionals as they themselves recover from the impact of the pandemic.
We may be prevented from operating our manufacturing facilities or other workplaces due to the illness of our associates, regulations and associate inability or reluctance to appear for work or travel to our facilities, which may cause a material disruption to our supply chain. In 2020, we had some limited and temporary site shutdowns and implemented alternative working arrangements for all of our office-based associates, including working from home.
The operations of our suppliers may be disrupted or may not operate effectively or efficiently, thereby negatively impacting our ability to purchase supplies for our business at historical prices and in sufficient amounts.
Generating lower cash from operations could adversely affect our financial condition and the achievement of our strategic objectives. As a result, we may need to raise additional capital by incurring indebtedness or issuing equity securities beyond the $750 million of additional debt that we raised in 2020. Additionally, we may face credit rating downgrades as a result of weaker than anticipated performance of our businesses, higher debt levels, or other factors.
To the extent COVID-19 continues to adversely affect our operations and global economic conditions more generally, it may also have the effect of heightening many of the other risks described in this “Risk Factors” section including impeding our ability to launch new products and develop innovative products, the inability of our customers or suppliers to operate their businesses, the acceleration of industry consolidation, our inability to forecast demand accurately and our need to obtain additional financing.
7


We operate in a highly competitive industry and if we fail to innovate, we may be unable to maintain our position in the markets in which we compete and unable to build and expand our markets.
Our industry is highly competitive and, in both our surgical and vision care businesses, we face a mixture of competitors and intense competition from competitors' products. While we currently enjoy leading positions within our industry, our success highly depends on our ability to maintain or build on those leading positions. To compete effectively, we must continue to create, invest in, or acquire advanced technology, incorporate this technology into our proprietary products, obtain regulatory approvals in a timely manner where required and manufacture and successfully market our products. We may experience design, manufacturing, marketing or other difficulties that could delay or prevent our development, introduction or marketing of new products or new versions of our existing products. As a result of such difficulties and delays, our development expenses may increase and, as a consequence, our results of operations could suffer. Our failure to respond to competitive pressures in a timely manner could have a material adverse effect on our business, financial condition and results of operations.
For example, in our surgical business, we face a mixture of competitors ranging from large manufacturers with multiple business lines to small manufacturers that offer a limited selection of specialized products. Development by other companies of new or improved products, processes, or technologies may make our products or proposed products less competitive or obsolete. We also face competition from providers of alternative medical therapies such as pharmaceutical companies that have the potential to disrupt core elements of our business.
Shifts in industry market share can occur in connection with product issues, physician advisories, safety alerts and publications about our products. In the current environment of managed care, consolidation among healthcare providers, increased competition and declining reimbursement rates, and absent innovation, we must increasingly compete on the basis of price.
In addition, our vision care business operates within a highly competitive environment. In contact lenses, we face intense competition from competitors' products and may face increasing competition as other new products enter the market, for example, with increased product entries from contact lens manufacturers in Asia. New market entrants and existing competitors are also challenging distribution models with innovation in non-traditional, disruptive models such as direct-to-consumer, Internet and other e-commerce sales opportunities, which could adversely impact the traditional eye care professional ("ECP") channel in which Alcon has a significant presence. Our major competitors in contact lenses offer competitive products and differentiated materials, plus a variety of other eye care products including ophthalmic pharmaceuticals, which may give them a competitive advantage in marketing their lenses. Our vision care business also competes with manufacturers of eyeglasses and providers of other forms of vision correction including ophthalmic surgery. The market for contact lenses is intensely competitive and is characterized by declining sales volumes for older and reusable product lines and growing demand for daily lenses and advanced materials lenses. As the market for contact lenses shifts toward daily lenses, we expect our sales in daily lenses to, at least in part, cannibalize sales of our reusable contact lenses and contact lens care offerings. Furthermore, our ocular health product category is also highly competitive. We cannot predict the timing or impact of the introduction of competitive products, including new market entries, "generic" versions of our approved products, or private label products that treat the same conditions as those of our products. In addition, the introduction of alternatives in medical devices and medical prescriptions could also alter the dry eye product market and impede our sales growth. Our ability to respond to these competitive pressures will depend on our ability to decrease our costs and maintain gross margins and operating results and to introduce new products successfully and on a timely basis, and to achieve manufacturing efficiencies and sufficient manufacturing capacity and capabilities for such products.
Finally, our financial performance also depends on our ability to successfully build and expand our markets. For example, while we currently expect our key markets to grow, particularly in multifocal contact lenses and AT-IOLs, the size of the markets in which we compete may not increase above existing levels, we may not be able to regain or gain market share, expand our market penetration or the size of the market for our products, or compete effectively, and the number of procedures in which our products are used may not increase above existing levels. Decreases in market sizes or our market share and declines in average selling prices or procedural volumes could materially adversely affect our results of operations or financial condition. Furthermore, our failure to expand our markets beyond existing levels could impact our ability to grow in line with or above current industry standards.
Our research and development efforts may not succeed in bringing new products to market, or may fail to do so in a cost-efficient manner, or in a manner sufficient to grow our business, replace lost sales or take advantage of new technologies.
Our ability to continue to maintain and grow our business, to replace sales lost due to competition and to bring to market products that take advantage of new and potentially disruptive technologies depends heavily on the success of our research and development activities. Our success relies on our ability to identify and successfully develop cost-effective new products that address unmet medical and consumer needs. To accomplish this, we commit substantial financial, human and capital resources to product research and development, both through our internal dedicated resources and
8


through external investments, alliances, license arrangements, acquisitions and other transactions, which we collectively refer to as "BD&L" transactions. Developing and marketing new products involves a costly, lengthy and uncertain process. Since early 2020, COVID-19 related restrictions have delayed clinical trials and caused our research and development associates to work from home, which could have the effect of delaying new product launches. Even when our new product development projects make it to market, there have been, and in future may be, instances where projects are subsequently discontinued for technical, clinical, regulatory or commercial reasons. In spite of our investments, our research and development activities and external investments may not produce commercially successful new products that will enable us to replace sales lost to our competitors or increase revenue to grow our business. We may not be able to successfully identify and obtain value from our external business development and strategic collaborative efforts. In addition, our new products may cannibalize a portion of the revenues we derive from existing products, therefore driving replacement revenue instead of incremental revenue.
Further, even if we are able to secure regulatory approval and achieve initial commercial success of our products, our products may abruptly cease to be commercially viable due to the discovery of adverse health effects. See "—We may implement product recalls or voluntary market withdrawals of our products" below.
If we are unable to maintain a cost-effective flow of successful new products sufficient to maintain and grow our business, cover any sales erosion due to competition and take advantage of market opportunities, this lack of innovation could have a material adverse effect on our business, financial condition or results of operations. For a description of the government approval processes which must be followed to market our products, see "—Regulatory clearance and approval processes for our products are expensive, time-consuming and uncertain, and the failure to obtain and maintain required regulatory clearances and approvals could prevent us from commercializing our products" below and "Item 4. Information on the Company—4.B. Business Overview—Government Regulation".
We may not successfully complete and integrate strategic acquisitions to expand or complement our business.
As part of our growth strategy, we regularly evaluate and pursue strategic BD&L transactions to expand or complement our business. Such ventures may bring new technologies, products, or customers to enhance our prominent position in the ophthalmic industry. We may be unable to identify suitable acquisition candidates at attractive prices or at all. Acquisition activities can be thwarted by overtures from competitors for the targeted candidates and governmental regulation (including market concentration limitations and other competition laws).
Further, even if we are successful in completing an acquisition, we could face risks relating to our ability to:
successfully integrate the venture due to corporate cultural differences, difficulties in retaining key personnel, customers and suppliers, coordination with other products and changing market preferences;
maintain uniform standards, controls, procedures and policies throughout acquired companies, including effective integration of acquired companies into our internal control over financial reporting;
achieve expected synergies and obtain the desired financial or strategic benefits from acquisitions within the anticipated time periods, if at all; and
successfully enter categories and markets in which we may have limited or no prior experience.
Moreover, acquisitions demand significant company resources and could divert management's attention from our existing business, result in liabilities being incurred that were not known at the time of acquisition or create tax or accounting issues. Furthermore, acquisitions or ventures could also result in potentially dilutive issuances of equity securities, the incurrence of debt, the assumption of contingent liabilities, an increase in expenses related to certain assets and increased operating expenses, all of which could adversely affect our financial condition and results of operations. In addition, to the extent that the economic benefits associated with any of our acquisitions or investments diminish in the future, we may be required to record impairment charges related to goodwill, intangible assets or other assets associated with such transactions, which could adversely affect our financial condition and results of operations.
We often enter into option agreements to acquire early-stage technologies, which may fail in the development process or proof-of-concept stage. Even if such a failure occurs before we exercise our option to acquire the technology, we may have already made a significant investment in the failed technology. Further, if we complete the acquisition, we may not be able to successfully integrate the acquired technology into our business or otherwise use it to develop commercialized products. If we fail to timely recognize or address these matters or to devote adequate resources to them, we may fail to achieve our growth strategy or otherwise not realize the intended benefits of an acquisition.
Changes in third-party payor coverage and reimbursement methodologies and potential regulatory price controls may adversely impact our ability to sell our products at prices necessary to support our current business strategy.
The prices, sales and demand for some of our products, in particular our surgical products, could be adversely affected by the increased emphasis managed care organizations and governments continue to place on the delivery of more cost-effective medical therapies. In addition, some third-party payors will not provide reimbursement for a new product until
9


we demonstrate the innovative value or improved patient outcomes of the new product, which could impact our ability to grow the market for sales of the product. There have also been recent initiatives by third-party payors to challenge the prices charged for medical products. Physicians, eye care professionals and other healthcare providers may be reluctant to purchase our products if they do not receive adequate reimbursement from third-party payors to cover the cost of those products and for procedures performed using those products. Reductions in the prices for our products in response to these trends could reduce our profit margins, which would adversely affect our ability to invest and grow our business.
Outside the US, governmental programs that typically reimburse at predetermined fixed rates may also decrease or otherwise limit amounts available through reimbursement. For example, in the EU, member states impose controls on whether products are reimbursable by national or regional health service providers and on the prices at which medical devices are reimbursed under state-run healthcare schemes. Some member states operate reference pricing systems in which they set national reimbursement prices by reference to those in other member states. Countries implementing a volume-based procurement process, such as the one being introduced in China, can lead to decreased prices. Other governmental funding restrictions, legislative proposals and interpretations of policy may negatively impact amounts available through reimbursement, including by restricting payment increases to hospitals and other providers through reimbursement systems, or by restricting whether reimbursement is available for our products at all.
We expect that additional health care reform measures will be adopted in the future in the countries in which we operate, including those initiatives affecting coverage and reimbursement for our products, any of which could limit the amounts that governments will pay for health care products and services, which could adversely affect the growth of the market for our products or the demand for our products, or result in additional pricing pressures. We cannot predict the effect such reforms or the prospect of their enactment may have on our business.
Changing economic and financial environments in many countries and increasing global political and social instability may adversely impact our business.
We sell our products in more than 140 countries. As a result, local and regional economic and financial environments and political and social conditions throughout the world influence and affect our results of operations and business.
Unpredictable political and social conditions currently exist in various parts of the world, including a backlash against free trade, anti-immigrant sentiment, social unrest, a refugee crisis, food and water shortages, COVID-19 related actions, terrorism and the risk of direct conflicts between nations. In addition, the current trade environment is extremely volatile, including the imposition of trade tariffs, trade or economic sanctions, or other restrictions. Changes in trade policy vis-à-vis countries that we operate in could affect our ability to and/or the cost of doing business in such countries. For example, we expect that the ongoing trade dispute between the United States and China could potentially have an adverse effect on the export of our surgical equipment to China. In the United States, the elimination of the Affordable Care Act's individual mandate could have a negative impact on individuals' ability to afford health insurance. Similarly, following the UK's "Brexit" and with the rise of nationalist, separatist and populist sentiment in various countries, there is a risk that barriers to free trade and the free movement of people may rise in Europe. As we have a sizable commercial presence in the UK, the uncertainty surrounding the implementation and effect of "Brexit" may impact our business in the UK and the rest of Europe, including our costs and the distribution of our products in those markets. Further, significant conflicts continue in parts of the Middle East, including conflicts involving Saudi Arabia and Iran, and with respect to places such as North Korea. Collectively, such difficult conditions could, among other things, disturb the international flow of goods and increase the costs and difficulties of international transactions.
In addition, local economic conditions may adversely affect the ability of payors, as well as our distributors, customers, suppliers and service providers, to pay for our products, or otherwise to buy necessary inventory or raw materials, and to perform their obligations under agreements with us. Although we make efforts to monitor these third parties' financial condition and their liquidity, our ability to do so is limited, and some of them may become unable to pay their bills in a timely manner, or may even become insolvent, which could negatively impact our business and results of operations. These risks may be elevated with respect to our interactions with fiscally-challenged government payors, or with third parties with substantial exposure to such payors. For example, we have significant outstanding receivable balances that are dependent upon either direct or indirect payment by various governmental and non-governmental entities across the world. The ultimate payment of these receivables is dependent on the ability of these governments to maintain liquidity primarily through borrowing capacity, particularly in the EU. If certain governments are not able to maintain access to liquidity through borrowing capacity, the ultimate payment of their respective portion of outstanding receivables could be at risk and impact profits and cash flow.
Economic conditions in our markets may also deteriorate due to epidemics or pandemics; natural and man-made disasters, including climatic events (including any potential effect of climate change), power grid failures, acts of war or terrorism, political unrest, fires or explosions; and other external factors over which we have no control.
To the extent that economic and financial conditions directly affect consumers, some of our businesses, including the elective surgical and contact lens businesses, may be particularly sensitive to declines in consumer spending, as the costs of elective surgical procedures and discretionary purchases of contact lenses are typically borne by individuals with limited
10


reimbursement from their medical insurance providers or government programs. For example, while cataract surgery involving our monofocal IOLs is generally fully covered by medical insurance providers or government reimbursement programs, implantation of certain of our AT-IOL products may only be partially covered, with the individual paying out-of-pocket for the non-covered component. Accordingly, individuals may be less willing to incur the costs of these private pay or discretionary procedures or purchases in weak or uncertain economic conditions and may elect to forgo such procedures or products or to trade down to more affordable options.
Significant breaches of data security or disruptions of information technology systems and the use of Internet, social media and mobile technologies could adversely affect our business and expose people's personal information.
We are heavily dependent on critical, complex and interdependent information technology systems, including Internet-based systems, to support our business processes. In addition, Alcon and our associates rely on the Internet, social media tools and mobile technologies as a means of communication and to gather information, which can include personal information. We are also increasingly seeking to develop technology-based products to improve patient welfare in a variety of ways, which could also result in us gathering personal information about patients and others electronically.
The size and complexity of these information technology systems, and, in some instances, their age, make them potentially vulnerable to external or internal security incidents, breakdowns, malicious intrusions, cybercrimes, including state-sponsored cybercrimes, malware, misplaced or lost data, programming or human errors, or other similar events. Furthermore, because cyber-threats continue to evolve, it is becoming increasingly difficult to detect and successfully defend against them. Consequently, there is a risk that a breach remains undetected for a period of time.
We also currently rely on a number of older legacy information systems that are increasingly difficult to maintain as we continue to upgrade and implement our new systems. By attempting to implement new systems while maintaining the legacy systems, we may be unable to integrate all of our systems to work together. See "—We may experience difficulties implementing our new enterprise resource planning system" below for more details on our ongoing implementation of a new Enterprise Resource Planning ("ERP") system.
Like many companies, our technology landscape has become more complex as we also rely on our third party partners to be cyber-resilient. We have experienced certain adverse incidents and expect to continue to experience them in the future and, as the external cyber-attack threat only keeps growing, we may not be able to prevent future breakdowns or breaches in our systems (or those of our third party partners) and we may not be able to prevent such events from having a material adverse effect on our business, financial condition, results of operations or reputation.
Any disruptive event could negatively impact important business processes, such as the conduct of scientific research and clinical trials, the submission of the results of such efforts to health authorities in support of requests for product approvals, the functioning of our manufacturing and supply chain processes, our compliance with legal obligations and our other key business activities, including our associates' ability to communicate with one another and with third parties. These risks were heightened during the ongoing pandemic with our office-based associates largely working from home. Such potential information technology issues could also lead to the loss of important information such as trade secrets or other intellectual property and could accelerate the development or manufacturing of competing products by third parties. Furthermore, malfunctions in software or in devices that make significant use of information technology, including our surgical equipment, could lead to a risk of harm to patients.
In addition, our routine business operations, including through the use of information technologies such as the Internet, social media, mobile technologies and technology-based medical devices like our surgical equipment, also increasingly involve our gathering personal information (including sensitive personal information) about patients, vendors, customers, associates, collaborators and others. Breaches of our systems or those of our third-party contractors, or other failures to protect such information, could expose such people's personal information to unauthorized persons. Any such event could give rise to significant potential liability and reputational harm, including potentially substantial monetary penalties. We also make significant efforts to ensure that any international transfers of personal data are done in compliance with applicable law. We are subject to certain privacy laws and regulations that continue to evolve, including Swiss privacy laws, the EU's General Data Protection Regulation and the California Consumer Privacy Act, which include operational and compliance requirements that are different than those previously in place and also includes significant penalties for non-compliance. Failure to comply with these laws could lead to significant liability. In addition, any additional restraints that may be placed on our ability to transfer such data could have a material adverse effect on our business, financial condition, results of operations and reputation.
We also use Internet, social media and mobile tools as a means to communicate with the public, including about our products or about the diseases our products are intended to treat. However, such uses create risks, such as the loss of trade secrets or other intellectual property. In addition, there continue to be significant uncertainties as to the rules and regulations that apply to such communications, and as to the interpretations that health authorities will apply in this context to the rules that do exist. As a result, despite our efforts to comply with applicable rules and regulations, there is a significant risk that our use of Internet, social media and mobile technologies for such purposes may cause us to nonetheless be found in violation of them.
11


Breaches of data security, technology disruptions, privacy violations, or similar issues could cause the loss of trade secrets or other intellectual property, expose personal information, interrupt our operations, all of which could result in enforcement actions or liability, including potential government fines, claims for damages and shareholders' litigation. Any such events could require us to expend significant resources beyond those we already invest to further modify or enhance our protective measures, to remediate any damage and to enable the continuity of our business.
Financial markets, including inflation and volatile exchange rates, are unpredictable.
Financial markets may adversely affect our earnings, the return on our financial investments and the value of some of our assets. For example, inflation could accelerate, which could lead to higher interest rates, increasing our costs of raising capital. Uncertainties around future central bank and other economic policies in the United States and EU, as well as high debt levels in certain other countries, could also impact world trade. Sudden increases in economic, currency or financial market volatility in different countries have also impacted, and may continue to impact, our business and results of operations, including the value of our investments in our pension plans. See "—We may be underestimating our future pension and other post-employment benefit plan obligations" below.
Changes in exchange rates between the US dollar, our reporting currency and other currencies can also result in significant increases or decreases in our reported sales, costs and earnings as expressed in US dollars, and in the reported value of our assets, liabilities and cash flows. Despite any measures we may undertake in the future to reduce, or hedge against, foreign currency exchange risks, because a significant portion of our earnings and expenditures are in currencies other than the US dollar, and the fact that our expenditures in Swiss francs and US dollars are significantly higher than our revenue in Swiss francs and US dollars, respectively, any such exchange rate volatility may negatively and materially impact our business, results of operations and financial condition, and may impact the reported value of our net sales, earnings, assets and liabilities. For more information on the effects of currency fluctuations on our Consolidated Financial Statements and on how we manage currency risk, see "Item 5. Operating and Financial Review and Prospects—5.A. Operating Results—Effects of Currency Fluctuations" and "Item 11. Quantitative and Qualitative Disclosures About Market Risk".
Countries facing financial difficulties, including countries experiencing high inflation rates and highly indebted countries facing large capital outflows, may impose controls on the exchange of foreign currency. Such exchange controls could limit our ability to distribute retained earnings from our local affiliates, or to pay intercompany payables due from those countries.
Ongoing consolidation among distributors, retailers and healthcare provider organizations could increase both the purchasing leverage of key customers and the concentration of credit risk.
Increasingly, a significant portion of our global sales are made to a relatively small number of distributors, retail chains and other purchasing organizations, as consolidation and vertical integration have the potential to disrupt existing channels. The recent trend, which is present globally including in the United States (our largest market), has been toward further consolidation among distributors, retailers and other eye care industry customers, such as eye care professionals, including through the acquisition of consolidated ophthalmology practices by private equity and other venture fund investors. As a result, our customers are gaining additional purchasing leverage, which increases the pricing pressures facing our businesses.
In our surgical business, healthcare providers, physician practices, hospitals and surgery centers around the world continue to consolidate in response to declining reimbursement rates and intensifying pressure to reduce healthcare delivery expenses. In vision care, private label growth and retailer-branded lenses may drive the commoditization of contact lenses and further boost the bargaining power of our distributors and retailers. This consolidation is increasing the ability of large groups to negotiate price, accelerating the transition of the decision maker from physicians to cost-focused professional buyers and potentially increasing price transparency or price referencing in instances of consolidation across borders.
Further, as our customers consolidate, if one or more of our major customers experienced financial difficulties, the effect on us would be substantially greater than in the past, and could include a substantial loss of sales and an inability to collect amounts owed to us.
If we fail to properly educate and train healthcare providers on our products, then customers may not buy our products.
We market our surgical products to healthcare providers, including ECPs, public and private hospitals, ambulatory surgical centers, eye clinics and ophthalmic surgeons' offices and group purchasing organizations and our vision care products to retailers and distributors. We have developed, and strive to maintain, strong relationships with members of each of these groups who assist in product research and development and advise us on how to satisfy the full range of consumer and surgeon needs. We rely on these groups to recommend our products to their patients and to other members of their organizations. Travel restrictions such as those due to the COVID-19 pandemic have increased the difficulty in maintaining these strong relationships.
12


Contact lens and lens care consumers have a tendency not to switch products regularly and are repeat consumers. As a result, the success of these products relies on an ECP’s initial recommendation of our products, which may be based on our ability to educate the ECP on our products. Even if we are successful at educating ECPs on our products, ECPs may continue to lose influence in the consumer's selection of contact lenses, which would cause our business to become more dependent upon the success of educating consumers directly. If we had to increase our direct-to-consumer marketing, we could potentially face challenges in maintaining our good relationships with ECPs, who may view our direct-to-consumer marketing as a threat to their business.
In our surgical business, ophthalmic surgeons play a significant role in determining the course of treatment and, ultimately, the type of products that will be used to treat a patient for cataracts, vitreoretinal conditions, refractive errors and glaucoma, among other things. As a result, it is important for us to properly and effectively market our surgical products to surgeons. Acceptance of our surgical products also depends on our ability to train ophthalmic surgeons and their clinical staff on the safe and appropriate use of our products, which takes time. This training process may take longer than expected and may therefore affect our ability to increase sales. Following completion of training, we rely on the trained ophthalmic surgeons to advocate the benefits of our products in the broader marketplace. Convincing ophthalmic surgeons to dedicate the time and energy necessary for adequate training is challenging, and we may not be successful in these efforts. If we are not successful in convincing ophthalmic surgeons of the merits of our products or educating them on the use of our products, they may not use our products and we will be unable to fully commercialize or profit from such products.
Our inability to forecast demand accurately may adversely affect our sales and earnings and add to sales variability from quarter to quarter.
We balance the need to maintain inventory levels that are sufficient to ensure competitive lead times against the risk of inventory obsolescence because of changing customer requirements, fluctuating commodity prices, changes to our products, product transfers or the life cycle of our products. To successfully manage our inventories, we must estimate demand from our customers and produce products in sufficient quantity that substantially corresponds to that demand. If we fail to adequately forecast demand for any product, or fail to determine the optimal product mix for production purposes, we may face production capacity issues in manufacturing sufficient quantities of a given product, such as our IOLs, daily contact lenses or certain ocular health products. In addition, failures in our information technology systems, issues created by the implementation of our new ERP system or human error could also lead to inadequate forecasting of our overall demand or product mix.
As the number of unique products (SKUs) we offer grows, particularly an increasing number of IOL and contact lens styles with varying diopters, the demand forecasting precision required for us to avoid production capacity issues will also increase. Accordingly, the continued proliferation of unique SKUs in our surgical and vision care portfolios could increase the risk of product unavailability and lost sales. Moreover, an increasing number of SKUs could increase global inventory requirements, especially for consigned products such as IOLs, negatively impacting our working capital performance and leading to write-offs due to obsolescence and expired products.
Compounding the risk of inaccurate forecasts, the manufacturing process for our products has lengthy lead times to acquire and install new equipment and product lines to ramp up production. Thus, if we fail to adequately forecast demand, then we may be unable to scale production in a timely manner to meet unexpected higher demand.
Finally, a significant portion of our vision care products are sold to major healthcare distributors and major retail chains in certain markets. Consequently, our sales and quarterly growth comparisons, as well as our estimates for required inventory levels, may be affected by fluctuations in the buying patterns of such buyers. These fluctuations may result from seasonality, pricing, a recall of a competitor’s product, large retailers' and distributors' buying decisions or other factors. If we overestimate demand and produce too much of a particular product, we face a risk of inventory obsolescence, leaving us with inventory that we cannot sell profitably or at all. By contrast, if we underestimate demand and produce insufficient quantities of a product, we could be forced to choose between producing additional unexpected quantities of that product at a higher price or foregoing sales.
Disruptions in our global supply chain or important facilities could cause production interruptions, delays and inefficiencies.
We are engaged in manufacturing and sourcing of products and materials on a global scale. Our operations and those of our suppliers could be disrupted by a number of factors, including: disruptions in logistics; strikes and other labor disputes; loss or impairment of key manufacturing sites; loss of key suppliers; supplier capacity constraints; raw material and product quality or safety issues; industrial accidents or other occupational health and safety issues; the impact on our suppliers of tighter credit or capital markets; epidemics and pandemics; and natural and man-made disasters, including climatic events (including any potential effect of climate change), power grid failures, acts of war or terrorism, political unrest, fires or explosions and other external factors over which we have no control.
13


In addition, we single-source or rely on limited sources of supply for many components, raw materials and production services, such as sterilization, used in the production of our products. The loss of one of these suppliers or the inability of any such supplier to meet performance and quality specifications, requested quantities or delivery schedules could cause our sales and profitability to decline and have a negative impact on our customer relations. For example, some of our products and product components are sterilized using ethylene oxide (“EtO”), which we purchase from large-scale suppliers. Concerns about the impact of EtO on the environment when released at unsafe levels have led to regulatory enforcement activities against EtO suppliers, including closures of their facilities. Any facility closures or disruption to the operations of these EtO suppliers could delay or prevent our ability to commercialize our products and lead to product back orders for our customers, which could have a materially negative impact on our sales and profitability. In addition, any regulatory enforcement activities against us for our use of EtO could result in financial, legal, business and reputational harm to us. The need to sterilize equipment and personal protective equipment to combat COVID-19 has exacerbated the shortage of EtO. Moreover, a price increase from a supplier where we do not have a supply alternative could cause our profitability to decline if we cannot increase our prices to our customers. To ensure sufficient supply, we may determine that we need to provide financing to some of our single-source suppliers, which could increase our financial exposure to such suppliers.
Finally, in some cases, we manufacture our products at a single manufacturing facility. In many cases, regulatory approvals of our products are limited to a specifically approved manufacturing facility. If we fail to produce enough of a product at a facility, or if our manufacturing process at that facility is disrupted, we may be unable to deliver that product to our customers on a timely basis. Problems may arise during the manufacturing process for a variety of reasons, including technical, labor or other difficulties, equipment malfunction, contamination, failure to follow specific protocols and procedures, destruction of or damage to any facility (as a result of a natural or man-made disaster, use and storage of hazardous materials or other events), power grid failures, or other reasons. In the event of a quality control issue, we may voluntarily, or our regulators may require us to, close a facility indefinitely. If any such problems arise, we may be unable to purchase substitute products from third-party manufacturers to make up any resulting shortfall in the production of a product, as such third-party manufacturers may only exist in limited numbers or appropriate substitutes may not be available. This risk is particularly relevant with respect to products for which we represent a substantial portion of the market, such as vitreoretinal equipment and other vitreoretinal-related products. A failure to deliver products on a timely basis could lead to customer dissatisfaction and damage to our reputation. Significant delays in the delivery of our products or a delay in the delivery of a key product could also negatively impact our sales and profitability.
Our existing debt may limit our flexibility to operate our business or adversely affect our business and our liquidity position.
We have outstanding debt of $4.1 billion as of December 31, 2020, and we may incur additional indebtedness in the future for various reasons, including fluctuations in operating results, capital expenditures and potential acquisitions.
Our indebtedness may:
make it difficult for us to satisfy our obligations, including making interest payments on our debt obligations;
require us to dedicate a portion of our cash flows to payments on our debt, reducing our ability to use our cash flows to fund capital expenditures, BD&L or other strategic transactions, working capital and other general operational requirements, or to pay dividends to our shareholders;
limit our flexibility to plan for and react to changes in our business;
negatively impact our credit rating and increase the cost of servicing our debt;
place us at a competitive disadvantage relative to some of our competitors that have less debt than us;
increase our vulnerability to general adverse economic and industry conditions, including changes in interest rates or a downturn in our business or the economy; and
make it difficult to refinance our existing debt or incur new debt on terms that we would consider to be commercially reasonable, if at all.
The occurrence of any one of these events could have a material adverse effect on our business, financial condition or result of operations or cause a significant decrease in our liquidity and impair our ability to pay amounts due on our indebtedness.
Investigations by government authorities under the FCPA and other applicable anti-corruption laws may result in substantial fines and other adverse effects.
On June 25, 2020, Alcon entered into a three-year Deferred Prosecution Agreement ("DPA") with the U.S. Department of Justice, or DoJ, regarding a charge that Alcon Pte Ltd. conspired to falsify financial books and records in violation of the US Foreign Corrupt Practices Act of 1977, as amended, or FCPA. The charge relates to payments made by a former distributor
14


to health care providers in Vietnam between 2007 and 2014. Alcon agreed to pay the DoJ a penalty of $8.925 million, for which Novartis has indemnified Alcon under the Separation and Distribution Agreement.
Under the DPA, the DoJ has agreed to defer prosecution for three years of the facts acknowledged by us that occurred between 2007 and 2014, after which period the charges will be dismissed with prejudice if we do not violate the terms of the DPA. If the DoJ determines that we have breached the DPA, the length of the DPA could be extended and/or we could be subject to prosecution and additional fines or penalties, including the deferred charges. Criminal prosecution or sanctions could have a material adverse effect on our business, financial condition, results of operations, or cash flows.
Uncertainty relating to the nature and timing of the potential phasing out of LIBOR and agreement on any new alternative reference rates may adversely impact our borrowing costs.
On March 6, 2019, we entered into a $0.8 billion unsecured five-year term loan facility ("Facility B") and a $1.0 billion unsecured five-year committed multicurrency revolving credit facility (the "Revolving Facility”). The Revolving Facility was undrawn as of December 31, 2020. Facility B bears an interest rate equal to the interest rate benchmark (USD prevailing London Interbank Offered Rate (“LIBOR”)), plus an applicable margin. In February 2021, the Revolving Facility term was extended to March 2026.
On July 27, 2017, the UK’s Financial Conduct Authority, which regulates LIBOR, announced that it intends to stop persuading or compelling banks to submit rates for the calculation of LIBOR after 2021. The announcement indicates that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. It is impossible to predict whether and to what extent banks will continue to provide LIBOR submissions to the administrator of LIBOR, whether LIBOR rates will cease to be published or supported before or after December 2021 or whether any additional reforms to LIBOR may be enacted in the UK or elsewhere.
Our Facilities Agreement provides for an alternative reference rate in the event LIBOR is discontinued. The alternative reference rate is based on the rate for which each of three reference banks could fund itself in USD for the relevant period with reference to the unsecured wholesale funding market. This alternative reference rate may perform differently than LIBOR for a number of reasons, including the fact that LIBOR is calculated using a greater number of participating banks. As a result, we may incur significant costs to transition our borrowing arrangements from LIBOR, which may have an adverse effect on our results of operations.
We may need to obtain additional financing which may not be available or, if it is available, may not be on favorable terms and may result in dilution of our then-existing shareholders.
We may need to raise additional funds to:
finance unanticipated working capital requirements or refinance our existing indebtedness;
develop or enhance our infrastructure and our existing products and services;
maintain sufficient liquidity as a result of the impact from COVID-19;
engage in mergers and acquisitions or other strategic BD&L transactions;
fund strategic relationships; and
respond to competitive pressures.
If we raise additional funds by issuing equity or convertible debt securities, the percentage ownership of our then-existing shareholders may be diluted, and holders of these securities may have rights, preferences or privileges senior to those of our then-existing shareholders.
Our reliance on outsourcing key business functions to third parties heightens the risks faced by our businesses.
We outsource the performance of certain key business functions to third parties and invest a significant amount of effort and resources into doing so. Such outsourced functions can include research and development collaborations, clinical trial activities, manufacturing operations, human resources, warehousing and distribution activities, certain finance functions, submission of regulatory applications, marketing activities, data management and others. Outsourcing of services to third parties could expose us to suboptimal quality of service delivery or deliverables and potentially result in repercussions such as missed deadlines or other timeliness issues, erroneous data, supply disruptions, non-compliance (including with applicable legal or regulatory requirements and industry standards) and/or reputational harm, with potential negative effects on our results.
We continue to rely on our former parent for certain key business functions, including certain transitional services that are covered under the Transitional Services Agreement, certain manufacturing needs that are covered under the Manufacturing and Supply Agreement and certain transitional distribution services that are covered under a Transitional Distribution and Services Agreement. For example, we continue to rely on our former parent company for the production of our entire supply of viscoelastics. We currently sell viscoelastics on a standalone basis for procedures using our
15


products and also use them as a component in our surgical pack offerings. As a result, a shortage in our supply of viscoelastics could not only cause a failure in our ability to meet our commitments to our customers, but could also have significant collateral impacts on other parts of our business due to related decreases in the rates of procedures requiring viscoelastics that feature our equipment or other products.
Ultimately, if the third parties, including our former parent company, fail to meet their obligations to us, we may lose our investment in the collaborations and fail to receive the expected benefits of these arrangements. Contractual remedies may be inadequate to compensate us for the damage to our business or lost profits. In addition, many of the companies to which we outsource key business functions may have more limited resources compared to us, and, in particular, may not have internal compliance resources comparable to those within our organization. Should any of these third parties fail to carry out their contractual duties or regulatory obligations or fail to comply with the law, including laws relating to export and trade controls, or should they act inappropriately in the course of their performance of services for us, there is a risk that we could be held responsible for their acts, that our reputation may suffer and that penalties may be imposed upon us. Any such failures by third parties could have a material adverse effect on our business, financial condition, results of operations or reputation.
Even if we protect our intellectual property to the fullest extent permitted by applicable law, our competitors and other third parties could develop and commercialize products similar or identical to ours, which could impair our ability to compete.
We rely on a combination of patents, trademarks and copyrights to protect our intellectual property. The scope, strength and duration of those intellectual property rights can vary significantly from product to product and country to country. We also rely on a variety of trade secrets, know-how and other confidential information to supplement these protections. In the aggregate, these intellectual property rights are of material importance to our business.
The protections afforded by these intellectual property rights may limit the ability of competitors to commercialize products covered by the applicable intellectual property rights, but they do not prevent competitors from marketing alternative products that compete with our products. In addition, these intellectual property rights may be challenged by third parties and regulatory agencies, and intellectual property treated as trade secrets and protected through confidentiality agreements may be independently developed by third parties and/or subject to misappropriation by others. Furthermore, in certain countries, particularly in China, due to ambiguities in the law and enforcement difficulties, intellectual property rights may not be as effective as in Western Europe or the United States. Therefore, even if we protect our intellectual property to the fullest extent permitted by applicable law, competitors and other third parties may nonetheless develop and commercialize products similar or identical to ours, which could impair our ability to compete and have an adverse effect on our business, financial condition and results of operations.
Unauthorized or illegal distribution may harm our business and reputation.
In the United States and elsewhere, our products are subject to competition from lower priced versions of our products and competing products from countries where there are government imposed price controls or other market dynamics that make the products lower priced. Despite government regulations aimed at limiting such imports, the volume of imports may continue to rise in certain countries. This importation may adversely affect our profitability in the United States and elsewhere and could become more significant in the future.
In addition, our industry continues to be challenged by the vulnerability of distribution channels to counterfeiting. Reports of increased levels of counterfeiting could materially affect consumer confidence in the authentic product and harm our business or lead to litigation.
Litigation, including product liability lawsuits, and governmental investigations may harm our business or otherwise distract our management.
We, from time to time, are, and may in the future be, subject to various investigations and legal proceedings that arise or may arise.
We also periodically receive inquiries from antitrust and competition authorities in various jurisdictions and, from time to time, are named as a defendant in antitrust lawsuits. For example, since the first quarter of 2015, more than 50 putative class action complaints have been filed in several courts across the US naming as defendants contact lens manufacturers, including Alcon, and alleging violations of federal antitrust law, as well as the antitrust, consumer protection and unfair competition laws of various states, in connection with the implementation of unilateral price policies by the defendants in the sale of contact lenses. The cases have been consolidated in the Middle District of Florida by the Judicial Panel on Multidistrict Litigation and the claims are being vigorously contested. See "Item 8. Financial Information—8.A. Consolidated Statements and Other Financial Information—Legal Proceedings".
In addition, from time to time, we are named as a defendant in product liability lawsuits and, to the extent we are, we may in the future incur material liabilities relating to such product liability claims, including claims alleging product defects and/or alleged failure to warn of product risks. The risk of material product liability litigation is increased in connection with
16


product recalls and voluntary market withdrawals. We have voluntarily taken products off the market in the past, including global voluntary market withdrawal of the CyPass micro-stent. The combination of our insurance coverage, cash flows and provisions may not be adequate to satisfy product liabilities that we may incur in the future. Successful product liability claims brought against us or recalls of any of our products could have a material adverse effect on our business, results of operations or our financial condition.
Because of our extensive international operations, we could be adversely affected by violations of worldwide anti-bribery laws, including those that prohibit companies and their intermediaries from making improper payments to government officials or other third parties for the purpose of obtaining or retaining business, such as the US Foreign Corrupt Practices Act (the “FCPA”), and laws that prohibit commercial bribery. Our internal control policies and procedures may not always protect us from reckless or criminal acts committed by our associates or agents. Violations of these laws, or allegations of such violations, could disrupt our business and adversely affect our reputation and our business, results of operations, cash flows and financial condition.
Substantial, complex or extended litigation could cause us to incur large expenditures, affect our ability to market and distribute our products and distract our management. For example, intellectual property litigation in which we are named as a defendant from time to time could result in significant damage awards and injunctions that could prevent the manufacture and sale of the affected products or require us to make significant royalty payments to continue to sell the affected products. Lawsuits by associates, shareholders, customers or competitors, or potential indemnification obligations and limitations of our director and officer liability insurance, could be very costly and substantially disrupt our business. Disputes with such companies or individuals from time to time are not uncommon, and we may be unable to resolve such disputes on terms favorable to us.
Even meritless claims could subject us to adverse publicity, hinder us from securing insurance coverage in the future or require us to incur significant legal costs. As a result, significant claims or legal proceedings to which we are a party could have a material adverse effect on our business, prospects, financial condition and results of operations.
Failure to comply with law, legal proceedings and government investigations may have a significant negative effect on our results of operations.
We are obligated to comply with the laws of all of the countries around the world in which we operate and sell products. These laws cover an extremely wide and growing range of activities. Such legal requirements can vary from country to country and new requirements may be imposed on us from time to time as government and public expectations regarding acceptable corporate behavior change, and enforcement authorities modify interpretations of legal and regulatory provisions and change enforcement priorities. In addition, our associates, independent contractors, consultants, commercial partners and vendors may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements, in violation of such laws and public expectations.
For example, we are faced with increasing pressures, including new laws and regulations from around the world, to be more transparent with respect to how we do business, including with respect to our interactions with healthcare professionals and organizations. These laws and regulations include requirements that we disclose payments or other transfers of value made to healthcare professionals and organizations, including by our associates or third parties acting on our behalf, as well as with regard to the prices for our products. We are also subject to certain privacy laws, including Swiss privacy laws, the EU's General Data Protection Regulation and the California Consumer Privacy Act, which include operational and compliance requirements that are different than those previously in place and also includes significant penalties for non-compliance.
In addition, we have significant activities in a number of developing countries around the world, both through our own associates and through third parties retained to assist us. In some of these countries, a culture of compliance with law may not be as fully developed as in other countries.
To help us in our efforts to comply with the many requirements that impact us, we have a significant global ethics and compliance program in place, and we devote substantial time and resources to efforts to conduct our business in a lawful and publicly acceptable manner. Nonetheless, our ethics and compliance program may be insufficient or associates may fail to comply with the training they received, and any actual or alleged failure to comply with law or with heightened public expectations could lead to substantial liabilities that may not be covered by insurance, or to other significant losses, and could affect our business, financial position and reputation.
In particular, in recent years, there has been a trend of increasing government investigations, legal proceedings and law enforcement activities against companies and executives operating in our industry. Increasingly, such activities can involve criminal proceedings and can retroactively challenge practices previously considered to be acceptable. For instance, in 2017 and 2018, Alcon and Novartis, as well as certain present and former executives and associates of Alcon and Novartis, received document requests and subpoenas from the DoJ and the SEC requesting information concerning Alcon accounting, internal controls and business practices in Asia and Russia, including revenue recognition for surgical equipment and related products and services and relationships with third-party distributors, both before and after Alcon
17


became part of the Novartis Group. The investigations by the DoJ and the SEC have concluded. Under our final settlement with the DoJ, we are subject to a three-year deferred prosecution agreement. Our failure to comply with the terms of the deferred prosecution agreement with the DoJ could result in resumed prosecution and other regulatory sanctions and could otherwise negatively affect our operations.
For additional information, including with respect to certain Novartis obligations to indemnify Alcon, see "Item 8. Financial Information—8.A. Consolidated Statements and Other Financial Information—Legal Proceedings".
Such proceedings are inherently unpredictable, and large judgments or penalties sometimes occur. As a consequence, we may in the future incur judgments or penalties that could involve large cash payments, including the potential repayment of amounts allegedly obtained improperly and other penalties, including enhanced damages. In addition, such proceedings may affect our reputation, create a risk of potential exclusion from government reimbursement programs and may lead to civil litigation. As a result, having taken into account all relevant factors, we may in the future enter into major settlements of such claims without bringing them to final legal adjudication by courts or other such bodies, despite having potentially significant defenses against them, in order to limit the risks they pose to our business and reputation. Such settlements may require us to pay significant sums of money and to enter into corporate integrity or similar agreements intended to regulate company behavior for a period of years, which can be costly to operate under.
Any such judgments or settlements, and any accruals that we may take with respect to potential judgments or settlements, could have a material adverse impact on our business, financial condition or results of operations, as well as on our reputation.
We may implement product recalls or voluntary market withdrawals of our products.
The manufacturing and marketing of medical devices, including surgical equipment and instruments, involve an inherent risk that our products may prove to be defective and cause a health risk. We are also subject to a number of laws and regulations requiring us to report adverse events associated with our products. Such adverse events and potential health risks identified in our monitoring efforts or from ongoing clinical studies may lead to voluntary or mandatory market actions, including recalls, product withdrawals or changes to the instructions for using our devices.
Governmental authorities throughout the world, including the FDA, have the authority to require the recall of our commercialized products in the event of material deficiencies or defects in, for example, design, labeling or manufacture.
We may also voluntarily initiate certain field actions, such as a correction or removal of our products in the future as a result of component failures, manufacturing errors, design or labeling defects or other deficiencies and issues. If a correction or removal of one of our devices is initiated to reduce a health risk posed by the device, or to remedy a violation of the Federal Food, Drug, and Cosmetic Act ("FDCA") caused by the device that may present a risk to health, the correction or removal must be reported to the FDA. Similarly, field actions conducted for safety reasons in the European Economic Area must be reported to the regulatory authority in each country where the field action occurs.
We have voluntarily taken products off the market in the past, including the global voluntary market withdrawal of the CyPass micro-stent. In the year ended December 31, 2018, we recognized an impairment charge of $337 million in relation to the CyPass micro-stent market withdrawal. Based on this experience, we believe that the occurrence of a recall could result in significant costs to us, potential disruptions in the supply of our products to our customers and adverse publicity, all of which could harm our ability to market our products. A recall of one of our products or a similar competing product manufactured by another manufacturer could impair sales and subsequent regulatory approvals of other similar products we market and lead to a general loss of customer confidence in our products. A product recall could also lead to a health authority inspection or other regulatory action or to us being named as a defendant in lawsuits. See "—Litigation, including product liability lawsuits, and governmental investigations may harm our business or otherwise distract our management" above.
We may experience difficulties implementing our new enterprise resource planning system.
We are engaged in a multi-year implementation of a new ERP system across our global commercial and manufacturing operations, which is intended to enhance and streamline our existing ERP system. ERP implementations are inherently complex and time-consuming projects that involve substantial expenditures on system software, implementation activities and business process reengineering. Any significant disruption or deficiency in the design and implementation of our new ERP system could adversely affect our ability to process orders, ship our products, provide services and customer support, fulfill contractual obligations or otherwise operate our business. For additional information, see "Item 4. Information on the Company—4.A. History and Development of the Company—Significant Acquisitions, Dispositions and other Events".
We may be unable to attract and retain qualified personnel.
We are highly dependent upon skilled personnel in key parts of our organization, and we invest heavily in recruiting, training and retaining qualified individuals, including significant efforts to enhance the diversity of our workforce. The loss of the service of key members of our organization—including senior members of our scientific and management teams,
18


high-quality researchers and development specialists and skilled personnel in developing countries—could delay or prevent the achievement of major business objectives.
In addition, our ability to hire qualified personnel also depends on the flexibility to reward superior performance and to pay competitive compensation. Laws, regulations and customary practice on executive compensation, including legislation and customary practice in our home country, Switzerland, may restrict our ability to attract, motivate and retain the required level of qualified personnel. For example, pay benchmarks for Swiss and other European companies may be inconsistent with the current market in the United States, making it more difficult to recruit US talent. Further, certain associates will be required to travel frequently between Switzerland and the US. These associates may be unwilling or unable to make such a commitment. Finally, changes to immigration policies in the numerous countries in which we operate, including the United States, as well as restrictions on global travel as a result of local or global public health crises requiring quarantines or other precautions to limit exposure to infectious diseases, may limit our ability to hire or retain talent in, or transfer talent to, specific locations.
We may be underestimating our future pension and other post-employment benefit plan obligations.
We sponsor pension and other post-employment benefit plans in various forms. While most of our plans are now defined contribution plans, certain of our associates remain under defined benefit plans. For these defined benefit plans, we are required to make significant assumptions and estimates about future events in calculating the present value of expected future plan expenses and liabilities. These include assumptions used to determine the discount rates we apply to estimated future liabilities and rates of future compensation increases. Assumptions and estimates we use may differ materially from the actual results we experience in the future, due to changing market and economic conditions, higher or lower withdrawal rates, or longer or shorter life spans of participants, among other variables. For example, in 2020, a decrease in the interest rate we apply in determining the present value of expected future total defined benefit plan obligations (consisting of pension and other post-employment benefit obligations) of one-quarter of one percent would have increased our year-end defined benefit obligation by $46 million. Any differences between our assumptions and estimates and our actual experience could require us to make additional contributions to our pension funds. Further, additional employer contributions might be required if plan funding falls below the levels required by local rules.
Our operations in emerging markets, particularly China, expose us to heightened risks associated with conditions in those markets.
Economic, social and political conditions, laws, practices and local customs vary widely among the countries, particularly in emerging markets, in which we sell our products. Our operations in emerging markets, particularly China, are subject to a number of heightened risks and potential costs, including lower profit margins, less stringent protection of intellectual property and economic, political and social uncertainty. For example, many emerging markets have currencies that fluctuate substantially. If currencies devalue and we cannot offset with price increases, our products may become less profitable. Inflation in emerging markets also can make our products less profitable and increase our exposure to credit risks. We have previously experienced currency fluctuations, unstable social and political conditions, inflation and volatile economic conditions in emerging markets, which have impacted our profitability in the emerging markets in which we operate and we may experience such impacts in the future.
Further, in many emerging markets, average income levels are relatively low, government reimbursement for the cost of healthcare products and services is limited and prices and demand are sensitive to general economic conditions. These challenges may prevent us from realizing the expected benefits of our investments in such emerging markets, which could have an adverse impact on our business, financial condition and results of operations.
Regulatory clearance and approval processes for our products are expensive, time-consuming and uncertain, and the failure to obtain and maintain required regulatory clearances and approvals could prevent us from commercializing our products.
Our businesses are subject to varying degrees of governmental regulation in the countries in which we operate, and the general trend is toward increasingly stringent regulation. The exercise of broad regulatory powers by the FDA continues to result in increases in the amounts of testing and documentation required for the commercialization of regulated products and a corresponding increase in the expense of product introduction. Similar trends are also evident in the EU and in other markets throughout the world. Compliance with these laws and regulations is costly and materially affects our business. Among other effects, health care regulations substantially increase the time, difficulty and costs incurred in obtaining and maintaining approval to market newly developed and existing products.
Most of our products are regulated as medical devices and face difficult development and approval processes in most jurisdictions we operate in, particularly in the US and EU; however other products may be regulated as other categories such as lasers, drug products, dietary supplements and medical foods. We discuss these regulations more thoroughly "Item 4. Information on the Company—4.B. Business Overview—Government Regulation—Product Approval and Monitoring".
19


The process of developing new products and obtaining necessary FDA clearance or approval, CE marking, or other regulatory marketing authorization is lengthy, expensive and uncertain. Our potential products could take a significantly longer time than we expect to gain marketing authorization or may never gain such marketing authorization. Regulatory authorities may require additional testing or clinical data to support marketing authorization, delaying authorization and market entry of our products. Even if the FDA or another regulatory agency or notified body approves a product, the approval may limit the indicated uses for a product, may otherwise limit our ability to promote, sell and distribute a product or may require post-marketing studies or impose other post-marketing obligations. We may be unable to obtain the necessary regulatory clearances or approvals for any product on a timely basis or at all. If a regulatory authority delays authorization of a potentially significant product, our market value and operating results may decline. Similarly, if we are unable to obtain regulatory approval or CE marking of our products, we will not be able to market these products, which would result in a decrease in our sales.
We may be unable to successfully maintain the registrations, licenses, clearances or other authorizations we have received or may receive in the future. We also routinely make minor modifications to our products, labeling, instructions for use, manufacturing process and packaging that may trigger a requirement to notify regulatory authorities or to update such registrations or authorizations. This may subsequently require us to manage multiple versions of individual products around the world, depending on the status of any re-registration approvals. Managing such multiple versions may require additional inventory in the form of "bridging stock", extensive redress operations and inventory increases that could exceed our manufacturing capacity or supply chain ability at the time. This could result in prolonged product shortages that could negatively impact our sales, both in terms of any unavailable products and the potential loss of customers that opt for another supplier.
The loss of previously received clearances or approvals, or the failure to comply with existing or future regulatory requirements could also have a material adverse effect on our business. For example, we offer custom surgical pack products that combine both Alcon and third-party products. Changes in local regulatory statutes, health authority practices, or local importation laws, or the failure of Alcon or our suppliers comply with them, could result in our products being barred from importation into a given territory. Continued growth in our sales and profits will depend, in part, on the timely and successful introduction and marketing of some or all of the products for which we are currently pursuing approval.
The manufacture of our products is highly regulated and complex.
The manufacture of our product portfolio is complex and heavily regulated by governmental health authorities around the world, including the FDA. Whether our products are manufactured at our own dedicated manufacturing facilities or by third parties, we must ensure that all manufacturing processes comply with current Good Manufacturing Practices, quality system requirements and other applicable regulations, as well as with our own high quality standards. In recent years, health authorities have substantially intensified their scrutiny of manufacturers' compliance with such requirements.
Any significant failure by us or our third-party suppliers to comply with these requirements or the health authorities' expectations may cause us to shut down our production facilities or production lines or we could be prevented from importing our products from one country to another. Moreover, if we fail to properly plan for manufacturing capacity, the complexity of our manufacturing process could lead to a long lead time to increase capacity. Any of these events could lead to product shortages, or to our being entirely unable to supply products to customers and consumers for an extended period of time. Such shortages or shutdowns have led to, and could continue to lead to, significant losses of sales revenue and to potential third-party litigation. In addition, health authorities have in some cases imposed significant penalties for such failures to comply with regulatory requirements. A failure to comply fully with regulatory requirements could also lead to a delay in the approval of new products to be manufactured at the impacted site.
We may be subject to penalties if we fail to comply with post-approval legal and regulatory requirements and our products could be subject to restrictions or withdrawal from the market.
The research, development, testing, manufacturing, sale and marketing of our products are subject to extensive governmental regulation. Government regulation includes inspection of and controls over testing, manufacturing, safety and environmental controls, efficacy, labeling, advertising, marketing, promotion, record keeping, tracking, reporting, distributing, import, export, samples, electronic records and electronic signatures.
Among other requirements, we are required to comply with applicable adverse event and malfunction reporting requirements for our products. For example, for our medical device products, in the US, we are required to report to the FDA any incident in which one of our marketed devices may have caused or contributed to a death or serious injury or has malfunctioned and the malfunction of the device or a similar device that we market would be likely to cause or contribute to death or serious injury if the malfunction were to recur. In addition, all manufacturers placing medical devices on the market in the European Economic Area are legally required to report any serious or potentially serious incidents involving devices produced or sold by the manufacturer to the relevant authority in those jurisdictions where any such incident occurred.
20


Our advertising and promotional activities are also subject to stringent regulatory rules and oversight. The marketing approvals from the FDA and other regulators of certain of our products are, or are expected to be, limited to specific uses. We are prohibited from marketing or promoting any uncleared or unapproved use of our product, referred to as "off-label" use. In addition to promoting our products in a manner consistent with our clearances and approvals, we must have adequate substantiation for the claims we make for our products. If any of our claims are determined to be false, misleading or deceptive, we could be subject to enforcement action. As Alcon and our associates increasingly use social media to communicate, and given the speed of dissemination of information online, there is a heightened risk that Alcon or one of our associates sends a message that may be deemed inappropriate or prohibited by a regulatory authority. In addition, unsubstantiated claims also present a risk of consumer class action or consumer protection litigation and competitor challenges. In the past, we have had to change or discontinue promotional materials because of regulatory agency requests, and we are exposed to that possibility in the future.
Failure to comply with statutes and regulations administered by the FDA and other regulatory bodies or failure to adequately respond to any notices of violation or any similar reports could result in, among other things, any of the following enforcement actions:
warning letters or untitled letters issued by the FDA;
fines, civil penalties, in rem forfeiture proceedings, injunctions, consent decrees and criminal prosecution;
detention of imported products;
delays in approving, or refusal to approve, our products;
withdrawal or suspension of approval of our products or those of our third-party suppliers by the FDA or other regulatory bodies;
product recall or seizure;
operating restrictions or interruption of production; and
inability to export to certain countries.
If any of these items were to occur, it could result in unanticipated expenditures to address or defend such actions, could harm our reputation and could adversely affect our business, financial condition and results of operations.
We are subject to laws targeting fraud and abuse in the healthcare industry.
We are subject to various global laws pertaining to healthcare fraud and abuse, including anti-kickback laws and physician self-referral laws. For example, the US federal healthcare program anti-kickback statute prohibits, among other things, knowingly and willfully offering, paying, soliciting or receiving remuneration to induce, or in return for, purchasing, leasing, ordering, arranging for or recommending the purchase, lease or order of any healthcare item or service reimbursable under Medicare, Medicaid or other federally financed healthcare programs. These US laws have been interpreted to apply to arrangements between medical device manufacturers, on the one hand, and prescribers, purchasers, formulary managers and other healthcare-related professionals, on the other hand. The US government may assert that a claim including items or services resulting from a violation of the federal anti-kickback statute constitutes a false or fraudulent claim for purposes of the false claims statutes. Pricing and rebate programs for drugs reimbursed under federal healthcare programs must comply with the Medicaid drug rebate requirements of the Omnibus Budget Reconciliation Act of 1990, as amended, the Veterans Health Care Act of 1992, as amended, and the Deficit Reduction Act of 2005, as amended. The statutes and regulations governing the various price reporting requirements are complex and have changed over time, and the US government has not given clear guidance on many issues. In addition, recent statutory and regulatory developments have not yet been applied by the government or courts to specific factual situations. We believe that we are in compliance with all applicable government price reporting requirements, but there is the potential that the Centers for Medicare & Medicaid Services ("CMS"), other regulatory and law enforcement agencies or a court could arrive at different interpretations, with adverse financial or other consequences for us. If products are made available to authorized users of the Federal Supply Schedule of the General Services Administration, additional laws and requirements apply. All of these activities are also potentially subject to federal and state consumer protection and unfair competition laws. Some European Union bodies and most European Union member states and Japan impose controls and restrictions that are similar in nature or effect to those described above.
In recent years, the US government and several US states have enacted legislation requiring medical device companies to establish marketing compliance programs and file other periodic reports. Similar legislation is being considered in other US states. Many of these requirements are new and uncertain, and available guidance is limited. We could face enforcement action, fines and other penalties and could receive adverse publicity, all of which could harm our business, if it is alleged that we have failed to fully comply with such laws and regulations. Similarly, if the physicians or other providers or entities that we do business with are found to have not complied with applicable laws, they may be subject to sanctions, which could also have a negative impact on our business.
21


Depending on the circumstances, failure to meet these applicable legal and regulatory requirements can result in criminal prosecution, fines or other penalties, injunctions, recall or seizure of products, total or partial suspension of production, denial or withdrawal of pre-marketing product approvals, private "qui tam" actions brought by individual whistleblowers in the name of the government, or refusal to allow us to enter into supply contracts, including government contracts, any of which could have a material adverse effect on our business, financial condition or results of operations.
Legislative and regulatory reforms may impact our ability to develop and commercialize our products.
The global regulatory environment is increasingly stringent and unpredictable. Unexpected changes can have an adverse impact on our business, financial condition and results of operations.
First, it could be costly and onerous to comply with changes or new requirements relating to the regulatory approval process or postmarket requirements applicable to our products in various jurisdictions. As discussed in "Item 4. Information on the Company—4.B. Business Overview—Government Regulation—Product Approval and Monitoring" the EU has made recent changes to its regulatory regime. In addition, several countries that did not have regulatory requirements for medical devices have established such requirements in recent years, and other countries have expanded, or plan to expand, their existing regulations. While harmonization of global regulations has been pursued, requirements continue to differ significantly among countries. Further, the FDA is also pursuing various efforts to modernize its regulation of devices, including potential changes to the 510(k) pathway such as limiting reliance on older predicate devices and establishing an alternative 510(k) pathway that permits reliance on objective performance criteria. We expect this global regulatory environment to continue to evolve, which could impact the cost of, the time needed to approve and, ultimately, our ability to maintain existing approvals or obtain future approvals for, our products.
Second, new legislation and new regulations and interpretations of existing health care statutes and regulations are frequently adopted, any of which could affect our future business and results of operations. For example, in the US, there have been a number of health care reform legislative and regulatory measures proposed and adopted at the federal and state government levels that affect the health care system generally and that have had significant impact on our business.
Third, changes to current regulations in certain countries, including the United States, requiring a prescription for the purchase of contact lenses could have a significant impact on the way we market and distribute contact lens and contact lens care products, by limiting the role of the ECP as an intermediary in the sale of our vision care products. Such changes could require us to incur significant costs to update our marketing and distribution methodologies and could adversely affect the sales of our vision care products.
Finally, within our surgical business, a considerable portion of our sales and sales growth rely on patient-pay premium technologies, in markets where access to these technologies has been established. For example, in the US, two landmark rulings issued by the CMS established a bifurcated payment system for certain of our AT-IOLs pursuant to which part of the cost of the cataract surgery with such AT-IOLs would be reimbursed under Medicare, with the remaining cost paid out-of-pocket. For more details, see "Item 4. Information on the Company—4.B. Business Overview—Our Products—Surgical". To the extent regulatory bodies in the US, such as CMS, or other health authorities outside the US, decide to amend the regulations governing patient-pay reimbursement for advanced technologies, our sales and sales growth could be negatively impacted.
We are subject to environmental, health and safety laws and regulations.
We are subject to numerous national and local environmental, health and safety laws and regulations, including relating to the discharge of regulated materials into the environment, human health and safety, laboratory procedures and the generation, handling, use, storage, treatment, release and disposal of hazardous materials and wastes. Our operations involve the use of hazardous and flammable materials, including chemicals and biological materials. Our operations also produce hazardous waste products. We generally contract with third parties for the disposal of these hazardous materials and wastes. We cannot eliminate the risk of contamination or injury from these materials. In the event of contamination or injury resulting from our generation, handling, use, storage, treatment, release or disposal of hazardous materials or wastes, we could be held liable for any resulting damages, and any liability could materially adversely affect our business, operating results or financial condition. Our insurance may not provide adequate coverage against potential liabilities. If we fail to comply with applicable environmental, health and safety laws and regulations, we may face significant administrative, civil or criminal fines, penalties or other sanctions. In addition, we may incur substantial costs to comply with current or future environmental, health and safety laws and regulations, which have tended to become more stringent over time, including any potential laws and regulations that may be implemented in the future to address global climate change concerns. Compliance with current or future environmental, health and safety laws and regulations may increase our costs or impair our research, development or production efforts.
We must comply with certain tax incentive agreements in Switzerland.
While operating as a division of Novartis, our subsidiary, Alcon Pharmaceuticals Ltd. (“APL”), benefited from an investment tax incentive granted by the Swiss State Secretariat for Economic Affairs in Switzerland and the Canton of Fribourg, Switzerland in respect of both Swiss federal taxes and Fribourg cantonal / communal taxes for the fiscal years ended
22


December 31, 2007 through December 31, 2017. This tax incentive is subject to a five year "claw-back" period if Alcon does not continue to meet certain requirements related to its operations in Fribourg.
In connection with the Spin-off, our former parent retained certain assets of APL related to APL’s former pharmaceutical business. As a result, Novartis agreed with the Canton of Fribourg that each of APL and a subsidiary of Novartis (Novartis Ophthalmics AG, Fribourg) will have separate and standalone obligations and potential liabilities in connection with the five year claw-back period relating to the Fribourg investment tax incentive granted to APL. In particular, APL may be required to pay a "claw-back" amount of up to CHF 1.3 billion to the Fribourg tax authorities if APL fails to continue certain business activities in Fribourg and if Alcon Inc., APL and Alcon Services AG fail to (i) remain tax resident in Fribourg, and (ii) employ a certain minimum number of associates in Fribourg. Since December 31, 2018, our "claw-back" obligation has begun to be reduced each year by 20% of the original maximum amount and will expire on December 31, 2022. As of December 31, 2020, the "claw-back" obligation amounted to CHF 520 million.
We intend to conduct APL's operations so as to comply with these requirements in all respects; however, we may be unable to meet, or the Canton of Fribourg may successfully challenge our compliance with, these requirements. If the Canton of Fribourg successfully challenges our compliance with these requirements, we would be required to pay all or a portion of the "claw-back" amount.
We are a multinational business that operates in numerous tax jurisdictions.
We conduct operations in multiple tax jurisdictions, and the tax laws of those jurisdictions generally require that the transfer prices between affiliated companies in different jurisdictions be the same as those between unrelated companies dealing at arm's length and that such prices are supported by contemporaneous documentation. While we believe that we operate in compliance with applicable transfer pricing laws and intend to continue to do so, our transfer pricing procedures are not binding on applicable tax authorities. If tax authorities in any of these jurisdictions were to successfully challenge our transfer prices as not reflecting arm's length transactions, they could require us to adjust our transfer prices and thereby reallocate our income to reflect these revised transfer prices, which could result in a higher overall tax liability to us and possibly interest and penalties.
Additionally, the integrated nature of our worldwide operations can produce conflicting claims from tax authorities in different countries as to the profits to be taxed in the individual countries. The majority of the jurisdictions in which we operate have double tax treaties with other foreign jurisdictions, which provide a framework for mitigating the impact of double taxation on our revenues and capital gains. However, mechanisms developed to resolve such conflicting claims are largely untested, can be expected to be very lengthy and do not always contain a mandatory dispute resolution clause.
In recent years, tax authorities around the world have increased their scrutiny of company tax filings and have become more rigid in exercising any discretion they may have. As part of this, the Organization for Economic Co-operation and Development ("OECD") has proposed certain changes to the International tax standards that have resulted and will continue to result in local tax law changes under its Base Erosion and Profit Shifting ("BEPS") Action Plans to address issues of transparency, coherence and substance. Most recently, the OECD has released its plans for proposing further amendments to the international tax standards, including a new attribution of the right to tax corporate profits where customers are located and a mechanism ensuring that all corporate profits would be subject to a minimum taxation level.
Furthermore, Switzerland and the various Swiss cantons in which Alcon is present have adopted their own corporate tax reform. The main elements of the Swiss tax reform became effective in 2020 and have resulted in an increase in Alcon’s tax burden and effective tax rate in Switzerland.
In general, tax reform efforts, including with respect to tax base or rate, transfer pricing, intercompany dividends, cross border transactions, controlled corporations and limitations on tax relief allowed on the interest on intercompany debt, will require us to continually assess our organizational structure and could lead to an increased risk of international tax disputes, an increase in our effective tax rate and an adverse effect on our financial condition.
Goodwill and other intangible assets on our books may lead to significant noncash impairment charges.
We carry a significant amount of goodwill and other intangible assets on our consolidated balance sheet, primarily due to the value of the Alcon brand name, but also intangible assets associated with our technologies, acquired research and development, currently marketed products and marketing know-how. As a result, we may incur significant noncash impairment charges if the fair value of the intangible assets and the groupings of cash generating units containing goodwill would be less than their carrying value on our consolidated balance sheet at any point in time.
For a detailed discussion of how we determine whether an impairment has occurred, what factors could result in an impairment and the impact of impairment charges on our results of operations, see "Note 3. Selected Accounting Policies—Goodwill and intangible assets—Impairment of goodwill, Alcon brand name and definite lived intangible assets" to our Consolidated Financial Statements included elsewhere in this Annual Report.
23


Our previously announced estimates for the costs we expect to incur in connection with our separation from Novartis and our previously announced transformation program may be inaccurate.
We have previously announced that we expect to incur costs of $500 million in connection with our separation from Novartis. We have also previously announced that we expect to incur costs of $300 million and realize savings of $200 to $225 million on an annualized run rate by 2023 in connection with our transformation program. While we believe that these estimates are reasonable under the circumstances, they are subject to significant uncertainties, some of which are beyond our control. In addition, we may not be able to obtain the estimated cost savings and benefits that were initially anticipated in connection with our transformation program in a timely manner or at all. Should any of these estimates or underlying assumptions change or prove to have been incorrect, it could adversely affect our results of operations.
Environmental, social and governance matters may impact our business and reputation.
Increasingly, in addition to the importance of their financial performance, companies are being judged by their performance on a variety of environmental, social and governance ("ESG") matters, which are considered to contribute to the long-term sustainability of companies’ performance.
A variety of organizations measure the performance of companies on such ESG topics, and the results of these assessments are widely publicized. In addition, investment in funds that specialize in companies that perform well in such assessments are increasingly popular, and major institutional investors have publicly emphasized the importance of such ESG measures to their investment decisions. Topics taken into account in such assessments include, among others, the company’s efforts and impacts on climate change and human rights, ethics and compliance with law and the role of the company’s board of directors in supervising various sustainability issues. In addition to the topics typically considered in such assessments, in the healthcare industry, issues of the public’s ability to access our products and solutions are of particular importance.
We actively manage a broad range of such ESG matters, taking into consideration their expected impact on the sustainability of our business over time and the potential impact of our business on society and the environment. However, in light of investors’ increased focus on ESG matters, there can be no certainty that we will manage such issues successfully, or that we will successfully meet society’s expectations as to our proper role. Any failure or perceived failure by us in this regard could have a material adverse effect on our reputation and on our business, share price, financial condition, or results of operations, including the sustainability of our business over time.
Risks Related to the Separation from Novartis
Our ability to operate our business effectively may suffer if we do not, quickly and cost effectively, establish our own administrative and support functions necessary to operate as a stand-alone public company.
As a division of Novartis, we historically relied on financial (including financial and compliance controls) and certain legal, administrative and other resources of Novartis to operate our business. In particular, Novartis Business Services ("NBS"), the Novartis shared service organization, historically provided us with services across the following service domains: human resources operations, real estate and facility services, procurement, information technology, commercial and medical support services and financial reporting and accounting operations.
Since our separation from Novartis, we have continued to expand our own financial, administrative, corporate governance and listed company compliance and other support systems, including for the services NBS had historically provided to us, or have contracted with third parties to replace Novartis systems that we are not establishing internally. This process has been complex, time consuming and costly.
Novartis will continue to provide support for certain of our key business functions until April 2021 pursuant to a Transitional Services Agreement and certain other agreements. Any failure or significant downtime in our own financial, administrative or other support systems or in the Novartis financial, administrative or other support systems during the transitional period in which Novartis provides us with support could negatively impact our results of operations or prevent us from paying our suppliers and associates, executing business combinations and foreign currency transactions or performing administrative or other services on a timely basis, which could negatively affect our results of operations.
The transitional services Novartis has agreed to provide us may not be sufficient for our needs. In addition, we or Novartis may fail to perform under various transaction agreements that will be executed as part of the separation or we may fail to have necessary systems and services in place when certain of the transaction agreements expire.
In connection with the separation, we entered into a Separation and Distribution Agreement and various other agreements with Novartis, including the Transitional Services Agreement, Tax Matters Agreement, Employee Matters Agreement, Manufacturing and Supply Agreement and other separation-related agreements. See "Item 10. Additional Information—10.C. Material Contracts—Our Agreements with Novartis". Certain of these agreements will provide for the performance of key business services by Novartis for our benefit for a period of time after the separation. These services
24


may not be sufficient to meet our needs and the terms of such services may not be equal to or better than the terms we may have received from unaffiliated third parties, including our ability to obtain redress.
We rely on Novartis to satisfy its performance and payment obligations under these agreements. If Novartis does not satisfactorily perform its obligations under these agreements, including its indemnification obligations, we could incur operational difficulties or losses. If we do not have in place our own systems and services, or if we do not have agreements with other providers of these services once certain transitional agreements expire, we may not be able to operate our business effectively. In addition, after our agreements with Novartis expire, we may not be able to obtain these services at as favorable prices or on as favorable terms.
The separation and Spin-off could result in significant tax liability. In addition, we agreed to certain restrictions designed to preserve the tax treatment of the separation and Spin-off.
The relevant Swiss tax consequences of the separation and Spin-off have been taken up with the Swiss tax authorities. Novartis received written confirmations (the "Swiss Tax Rulings") from the Swiss Federal Tax Administration and from the tax administrations of the Canton of Basel-Stadt and the Canton of Fribourg addressing the relevant Swiss tax consequences of the separation and Spin-off. In addition, Novartis received a private letter ruling from the US Internal Revenue Service (the "IRS", and such ruling, the "IRS Ruling") and obtained a written opinion of Cravath, Swaine & Moore LLP, counsel to Novartis (the "Tax Opinion") to the effect that the separation and Spin-off should qualify for nonrecognition of gain and loss to Novartis and its shareholders under Section 355 of the Code.
If the separation and/or Spin-off were determined not to qualify for the treatments described in the Tax Rulings and Tax Opinion, or if any conditions in the Tax Rulings or Tax Opinion are not observed, then we could suffer adverse Swiss stamp duty and Novartis could suffer Swiss and US income, withholding and capital gains tax consequences and, under certain circumstances, we could have an indemnification obligation to Novartis with respect to some or all of the resulting tax to Novartis under the tax matters agreement (the "Tax Matters Agreement") we entered into with Novartis, as described in "Item 10. Additional Information—10.C. Material Contracts—Our Agreements with Novartis—Tax Matters Agreement".
In addition, under the Tax Matters Agreement, we agreed to certain restrictions designed to preserve the expected tax neutral nature of the separation and the Spin-off for Swiss tax and US federal income tax purposes. These restrictions may limit our ability to pursue strategic transactions or engage in new businesses or other transactions that might be beneficial and could discourage or delay strategic transactions that our shareholders may consider favorable. See "Item 10. Additional Information—10.C. Material Contracts—Our Agreements with Novartis—Tax Matters Agreement" for more information.
Risks related to the Ownership of our Shares
Your percentage ownership in Alcon may be diluted in the future.
In the future, your percentage ownership in Alcon may be diluted because of equity issuances from acquisitions, capital markets transactions or otherwise, including equity awards that we may grant to our directors, officers and associates under our associate participation plans. These additional issuances will have a dilutive effect on our earnings per share, which could adversely affect the market price of our shares.
Our maintenance of two exchange listings could result in pricing differentials of our ordinary shares between the two exchanges.
Our shares trade on the NYSE in US dollars and on the SIX in Swiss francs, which may result in price differentials between the two exchanges for a variety of factors, including fluctuations in the US dollar/Swiss franc exchange rate and differences in trading schedules.
We may not pay or declare dividends.
Although Alcon expects that it will recommend the payment of a regular cash dividend based upon the prior year’s core net income, we may not pay or declare dividends in the future. Due to the economic uncertainties resulting from the COVID-19 pandemic, our Board chose to recommend not paying a dividend in 2020. The declaration, timing and amount of any dividends to be paid by Alcon will be subject to the approval of shareholders at the relevant General Meeting of shareholders. The determination by the Board as to whether to recommend a dividend and the approval of any such proposed dividend by the shareholders will depend upon many factors, including our financial condition, earnings, corporate strategy, capital requirements of our operating subsidiaries, covenants, legal requirements and other factors deemed relevant by the Board and shareholders.
In addition, any dividends that we may declare will be denominated in Swiss francs. Consequently, exchange rate fluctuations will affect the US dollar equivalent of dividends received by holders of shares held via DTC or shares directly registered with Computershare Trust Company, N.A. in the US If the value of the Swiss franc decreases against the US dollar, the value of the US dollar equivalent of any dividend will decrease accordingly.
25


See "Item 8. Financial Information—8.A. Consolidated Statements and Other Financial Information—Dividend Policy" for more information.
As a foreign private issuer, we are subject to different US securities laws and rules than a domestic issuer, which may limit the information publicly available to US shareholders.
We report under the Securities Exchange Act of 1934 ("Exchange Act") as a non-US company with foreign private issuer status. Because we qualify as a foreign private issuer under the Exchange Act and although we are subject to Swiss laws and regulations with regard to such matters and intend to continue to furnish quarterly financial information to the SEC, we are exempt from certain provisions of the Exchange Act that are applicable to US domestic public companies, including (i) the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act, (ii) the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time and (iii) the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q containing unaudited financial and other specified information, or current reports on Form 8-K, upon the occurrence of specified significant events. In addition, foreign private issuers are not required to file their annual report on Form 20-F until four months after the end of each financial year, while US domestic issuers that are large accelerated filers are required to file their annual report on Form 10-K within 60 days after the end of each fiscal year. Foreign private issuers are also exempt from the Regulation Fair Disclosure, aimed at preventing issuers from making selective disclosures of material information.
In addition, as a foreign private issuer, we are entitled to rely on exceptions from certain corporate governance requirements of the NYSE. As a result of the above, you may not have the same protections afforded to shareholders of companies that are not foreign private issuers.
Furthermore, we prepare our financial statements under IFRS. There are, and may continue to be, certain significant differences between IFRS and US Generally Accepted Accounting Principles, or US GAAP, including but not limited to potentially significant differences related to the accounting and disclosure requirements relating to associate benefits, nonfinancial assets, taxation and impairment of long-lived assets. As a result, our financial information and reported earnings for historical or future periods could be significantly different if they were prepared in accordance with US GAAP, and you may not be able to meaningfully compare our financial statements under IFRS with those companies that prepare financial statements under US GAAP.
We may lose our foreign private issuer status.
We are a foreign private issuer and therefore we are not required to comply with all of the periodic disclosure and current reporting requirements of the Exchange Act applicable to US domestic issuers. To maintain our status as a foreign private issuer, either (a) a majority of our shares must be directly or indirectly owned of record by non-residents of the United States or (b)(i) a majority of our executive officers or directors may not be United States citizens or residents, (ii) more than 50 percent of our assets cannot be located in the United States and (iii) our business must be administered principally outside the United States.
If we were to lose our foreign private issuer status, we would be required to comply with the Exchange Act reporting and other requirements applicable to US domestic issuers, which are more detailed and extensive than the requirements for foreign private issuers. For instance, we would be required to change our basis of accounting from IFRS as issued by the IASB to US GAAP, which we expect would be difficult and costly and could also result in potentially material changes to historical financial statements previously prepared on the basis of IFRS. We may also be required to make changes in our corporate governance practices in accordance with various SEC and NYSE rules. The regulatory and compliance costs to us under US securities laws could be significantly higher than the costs we will incur as a foreign private issuer. As a result, a loss of foreign private issuer status would increase our legal and financial compliance costs and would make some activities highly time-consuming and costly. If we were required to comply with the rules and regulations applicable to US domestic issuers, it would make it more difficult and expensive for us to obtain director and officer liability insurance, and we could be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These rules and regulations could also make it more difficult for us to attract and retain qualified members of our Board.
Our status as a Swiss corporation means that our shareholders enjoy certain rights that may limit our flexibility to raise capital, issue dividends and otherwise manage ongoing capital needs.
Swiss law reserves for approval by shareholders certain corporate actions over which a board of directors would have authority in some other jurisdictions. For example, shareholders must approve the payment of dividends and cancellation of treasury shares. Swiss law also requires that our shareholders themselves resolve to, or authorize our Board to, increase our share capital. While our shareholders may authorize share capital that can be issued by our Board without additional shareholder approval, Swiss law limits this authorization to 50% of the issued share capital at the time of the authorization. The authorization, furthermore, has a limited duration of up to two years and must be renewed by the shareholders from time to time thereafter in order to be available for raising capital. Additionally, Swiss law grants pre-
26


emptive rights to existing shareholders to subscribe for new issuances of shares and advance-subscription rights to subscribe for convertible bonds or similar instruments with conversion or option rights. A resolution adopted at a shareholders' meeting by a qualified majority of two-thirds of the votes represented, and the absolute majority of the nominal value of the shares represented, may restrict or exclude such pre-emptive or advance-subscription rights in certain limited circumstances. In June 2020, the Swiss Parliament approved certain changes to Swiss corporate law including permitting the payment of interim dividends, subject to shareholders' approval, and providing a board of directors more flexibility to increase share capital. The enactment date for these changes has not yet been determined and may require an amendment to Alcon’s articles of incorporation. Despite these prospective changes, Swiss law also does not provide as much flexibility in the various rights and regulations that can attach to different categories of shares as do the laws of some other jurisdictions. These Swiss law requirements relating to our capital management may limit our flexibility, and situations may arise where greater flexibility would have provided benefits to our shareholders.
It may be difficult to enforce US judgments against us.
We are organized under the laws of Switzerland. As a result, it may not be possible for investors to effect service of process within the United States upon us or upon such persons or to enforce against them judgments obtained in US courts, including judgments in actions predicated upon the civil liability provisions of the federal securities laws of the United States. We have been advised by our Swiss counsel that there is doubt as to the enforceability in Switzerland of original actions, or in actions for enforcement of judgments of US courts, of civil liabilities to the extent predicated upon the federal and state securities laws of the United States. Original actions against persons in Switzerland based solely upon the US federal or state securities laws are governed, among other things, by the principles set forth in the Swiss Federal Act on International Private Law. This statute provides that the application of provisions of non-Swiss law by the courts in Switzerland shall be precluded if the result is incompatible with Swiss public policy. Also, mandatory provisions of Swiss law may be applicable regardless of any other law that would otherwise apply.
Switzerland and the United States do not have a treaty providing for reciprocal recognition and enforcement of judgments in civil and commercial matters. The recognition and enforcement of a judgment of the courts of the United States in Switzerland are governed by the principles set forth in the Swiss Federal Act on Private International Law. This statute provides in principle that a judgment rendered by a non-Swiss court may be enforced in Switzerland only if:
the non-Swiss court had jurisdiction pursuant to the Swiss Federal Act on Private International Law;
the judgment of such non-Swiss court has become final and non-appealable;
the judgment does not contravene Swiss public policy;
the court procedures and the service of documents leading to the judgment were in accordance with the due process of law; and
no proceeding involving the same position and the same subject matter was first brought in Switzerland, or adjudicated in Switzerland, or was earlier adjudicated in a third state and this decision is recognizable in Switzerland.

27


ITEM 4.    INFORMATION ON THE COMPANY
4.A.            HISTORY AND DEVELOPMENT OF THE COMPANY
General Corporate Information
Alcon is a stock corporation (Aktiengesellschaft) organized under the laws of Switzerland in accordance with article 620 et seq. of the Swiss Code of Obligations and registered with the Swiss Register of Commerce under registration number CHE‑234.781.164. Alcon is registered in the Swiss Register of Commerce under each of Alcon AG, Alcon SA and Alcon Inc., all of which are stated in Alcon's Articles of Incorporation (our "Articles of Incorporation") as our corporate name. Alcon was formed for an unlimited duration, effective as of the date of the registration of Alcon in the Swiss Register of Commerce on September 21, 2018. As a result of Novartis’ Spin-off of Alcon and its consolidated subsidiaries on April 9, 2019, Alcon became an independent, standalone corporation. Alcon’s shares are listed on the SIX and the NYSE under the ticker symbol “ALC.”
Alcon is domiciled in Fribourg, Switzerland and our registered office is located at Rue Louis‑d’Affry 6, 1701 Fribourg, Switzerland. Our headquarters is located in Geneva, Switzerland at the following address: Chemin de Blandonnet 8, 1214 Vernier, Geneva, Switzerland. Our telephone number is +41 58 911 2110. Our principal website is www.alcon.com. The information contained on our website is not a part of this Form 20‑F.
General Development of Business
Alcon was originally founded in 1945 by pharmacists Robert Alexander and William Conner, who opened a small pharmacy under the “Alcon” name in Fort Worth, Texas. In 1947, Alcon Laboratories, Inc. was first incorporated and began manufacturing specialty pharmaceutical products to address ocular health needs. In the succeeding years, Alcon began operating internationally with the opening of an office in Canada and first formed its surgical division.
In 1977, Alcon was acquired by a Swiss subsidiary of Nestlé S.A. and, consequently, Alcon began operating as a wholly owned subsidiary of Nestlé until 2002. In 2001, the name of the entity was officially changed to Alcon, Inc. and, on March 20, 2002, Nestlé completed an initial public offering of approximately 25% of the outstanding common shares of Alcon, Inc. From March 20, 2002 until its 2011 merger into Novartis discussed below, Alcon was publicly listed and traded on the NYSE under the symbol “ACL”.
On July 7, 2008, Nestlé sold to Novartis approximately 25% of the then outstanding Alcon shares and granted Novartis an option for Novartis to acquire Nestlé’s remaining shares in Alcon beginning in 2010. On August 25, 2010, Novartis exercised its option and purchased the remaining approximately 52% of the total outstanding Alcon shares owned by Nestlé. Following this purchase, Novartis owned an approximate 77% interest in Alcon. On December 14, 2010, Novartis entered into a definitive agreement to acquire the remaining 23% of Alcon through a merger of Alcon, Inc. into Novartis in consideration for Novartis shares and a contingent value amount. The merger was consummated on April 8, 2011, creating the Alcon Division within Novartis. In connection with the Novartis acquisition of Alcon, Novartis also merged its then‑existing contact lens and contact lens care unit, CIBA Vision, and certain of its ophthalmic pharmaceutical products into Alcon and moved the generic ophthalmic pharmaceutical business conducted by Alcon prior to the merger into the Sandoz Division of Novartis. In 2016, Novartis moved the management and reporting of Alcon ophthalmic pharmaceutical and over‑the‑counter ocular health products to the Innovative Medicines Division of Novartis. Subsequently, effective January 1, 2018, Novartis returned to Alcon the management and reporting of over‑the‑counter ocular health products and certain surgical diagnostic medications previously transferred from Alcon in 2016.
On June 29, 2018, Novartis announced its intention to seek shareholder approval for the Spin‑off of its Alcon Division, following the complete legal and structural separation of Alcon into a stand-alone company consisting of Alcon Inc. and its consolidated subsidiaries. Novartis shareholders approved the Spin-off on February 28, 2019, and the Spin-off transaction was consummated on April 9, 2019. Following the Spin-off, Alcon became a stand-alone, independent company.
Significant Acquisitions, Dispositions and other Events
COVID-19 Pandemic
The COVID-19 pandemic had a significant impact on our financial results and operations in 2020, and we expect the pandemic to continue to have an impact on our financial results and operations into 2021. The 2020 financial impact is discussed in more detail in this Annual Report, including under “Item 5. Operating and Financial Review and Prospects”.
28


Associate safety
To protect our associates, we implemented a response framework with recommended COVID-19 prevention, containment and mitigation measures. For example, we implemented procedures in early 2020 including limiting the number of people in one area at a time, modifying workstation arrangements, screening temperatures daily, minimizing the cross flow of people between shifts to reduce potential exposure and enhancing cleaning of our facilities. We have also mandated wearing masks, implemented robust contact tracing and are managing our return to the workplace in line with local conditions. Our sales and customer service teams are equipped with the tools to keep them healthy and safe, including pre-visit checklists and appropriate personal protective equipment ("PPE").
Community support
To assist vulnerable populations affected, directly or indirectly, by COVID-19, the Alcon Foundation has made monetary donations to local, national and global organizations to support meal programs for children and seniors, provide essential supplies to shelters and aid public health emergency relief efforts. We donated PPE, including Alcon-manufactured hand sanitizer and splash guards, as well as eye drops for front line workers. We have also donated eye care products to support eye surgeries and other eye care services for under-served patients.
Supply chain continuity
To protect our customers and the patients who depend on our products, we continue to manufacture and supply our products and are actively working to mitigate any potential supply chain disruptions. Prior to the current crisis, we developed a diverse manufacturing footprint, which has enabled us to maintain sufficient inventory on hand. We have enhanced our business continuity plans to ensure our supply chain is maintained. We generally target 12 weeks of customer-ready products in our supply chain and, for most of our products, we are at or close to this level. Our Procurement teams have stayed in close contact with our critical suppliers to maintain access to raw materials and other components. When necessary, we are also utilizing alternative methods of product distribution and supplier sourcing, as well as alternative shipping options where possible. In addition, we have partnered with industry trade groups and the medical community as they developed new protocols to serve patients safely during the pandemic.
Significant Investments
In 2012, we began a multi‑year software implementation project to standardize our processes, enhance data transparency and globally integrate our fragmented and aging information technology systems across our commercial, supply and manufacturing operations worldwide, through a new foundation of Systems, Applications and Products in Data Processing ("SAP"), which is an ERP software platform. We expect to pay a total of approximately $850 million relating to the implementation of the new ERP system. Through December 31, 2020, the total amount paid with respect to the implementation was $688 million.
In addition, we have made significant investments in certain of our manufacturing facilities to enhance our production capabilities. For more information, see “Item 4.D. Property, Plants and Equipment—Major Facilities”.
Acquisitions
In the past three years, we have also entered into certain acquisition transactions, including the acquisition of 100% of the outstanding shares and equity of PowerVision, Inc. on March 13, 2019, TrueVision Systems, Inc. on December 19, 2018 and Tear Film Innovations, Inc. on December 17, 2018. For further details on certain of our significant transactions in 2020, 2019 and 2018, see “Note 4 to the Consolidated Financial Statements."
Debt Issuances
In connection with the Spin-off, as discussed in greater detail in "Item 10. Additional Information—10.C. Material Contracts," on March 6, 2019 we entered into a $1.5 billion Bridge Facility and the Facilities, including Facility A.
On September 23, 2019, AFC issued Senior Notes ("Notes") with maturity dates in 2026, 2029 and 2049, which are guaranteed by the Company. The Notes are unsecured senior obligations of AFC issued in a private placement. The total principal amount of the Notes is $2.0 billion. The Notes were issued at a discount totaling $7.0 million, which was recorded as a reduction to the carrying value of the Notes and will be amortized to Interest expense over the term of the Notes. AFC incurred $15 million of debt issuance costs, which were recorded as a reduction to the carrying value of the Notes and will be amortized to Other financial income & expense over the term of the Notes.
29


The Notes consist of the following:
Series 2026 Notes - $0.5 billion due in 2026 issued at 99.5%, 2.750% interest is payable twice per year in March and September, beginning in March 2020.
Series 2029 Notes - $1.0 billion due in 2029 issued at 99.6%, 3.000% interest is payable twice per year in March and September, beginning March 2020.
Series 2049 Notes - $0.5 billion due in 2049 issued at 99.8%, 3.800% interest is payable twice per year in March and September, beginning March 2020.
The funds borrowed through the issuance of the Initial Notes were used to repay the $1.5 billion Bridge Facility and $0.5 billion Facility A, both of which had been entered into on March 6, 2019. For more information on the Notes, see Note 17 to our Consolidated Financial Statements.
On May 27, 2020, AFC issued senior notes due in 2030 (“Series 2030 Notes”), which are guaranteed by the Company. The Series 2030 Notes are unsecured senior obligations of AFC issued in a private placement and rank equally in right of payment with the Series 2026, Series 2029 and Series 2049 notes. The total principal amount of the Senior 2030 Notes is $750 million. The Senior 2030 Notes were issued at 99.8% with 2.600% interest payable twice per year in May and November, beginning in November 2020. The Series 2030 Notes were issued at a discount totaling $1 million, which was recorded as a reduction to the carrying value of the Series 2030 notes and will be amortized to Interest expense over the term of the Series 2030 Notes. AFC incurred $5 million of debt issuance costs, which were recorded as a reduction to the carrying value of the Series 2030 Notes and will be amortized to Other financial income & expense over the term of the Series 2030 Notes. For more information on the Series 2030 Notes, see Note 17 to our Consolidated Financial Statements.
Transformation Program
On November 19, 2019, we announced a multi-year transformation program to better align our organizational structure with the scope of Alcon's business operations globally. We created four shared business centers designed to create efficiencies for reinvestment into key growth drivers. We estimate that the transformation program will result in total charges of approximately $300 million by 2023. Through December 31, 2020, the total expense recognized with respect to the transformation program was $101 million.
Additional Information
The SEC maintains an Internet website at www.sec.gov that contains reports, proxy and information statements and other information regarding companies that file documents electronically with the SEC. Our Internet website is www.alcon.com. The information included on our internet website or the information that might be accessed through such website is not included in this Annual Report and is not incorporated into this Annual Report by reference.
30


4.B.            BUSINESS OVERVIEW
Overview
Alcon is the global leader in eye care with $6.8 billion in net sales during the year ended December 31, 2020. We research, develop, manufacture, distribute and sell a full suite of eye care products within two key businesses: Surgical and Vision Care. Based on sales for the year ended December 31, 2020, we are the number one company by global market share in the ophthalmic surgical market and a leader by global market share in the branded vision care market. We employ over 23,000 associates from more than 100 nationalities, operating in 75 countries and serving consumers and patients in over 140 countries. We believe our market leading position and global footprint allow us to benefit from economies of scale, maximize the potential of our commercialized products and pipeline and will permit us to effectively grow the market and expand into new product categories.
Our Surgical business is focused on ophthalmic products for cataract surgery, vitreoretinal surgery, refractive laser surgery and glaucoma surgery. Our broad surgical portfolio includes implantables, consumables and surgical equipment required for these procedures and supports the end-to-end needs of the ophthalmic surgeon. Our Vision Care business comprises daily disposable, reusable and color-enhancing contact lenses and a comprehensive portfolio of ocular health products, including devices and over-the-counter products for dry eye, contact lens care and ocular allergies, as well as ocular vitamins and redness relievers. Alongside our world-class products, Alcon provides best-in-class service, training, education and technical support for our customers.
Our Surgical and Vision Care businesses are complementary and benefit from synergies in research and development, manufacturing, distribution and consumer awareness and education. This allows us to position ourselves as a trusted partner for eye care products across the continuum of care from retail consumer, to optometry, to surgical ophthalmology. For example, in research and development, we can apply our expertise in material and surface chemistry to develop innovative next-generation products for both our IOL and contact lens product lines. Similarly, our global commercial footprint and expertise as a global organization provide us with product development, manufacturing, distribution and commercial promotion and marketing knowledge that can be applied to both of our businesses.
We are dedicated to providing innovative products that enhance quality of life by helping people see brilliantly. Our strong foundation is based on our longstanding success as a trusted brand, our legacy of industry firsts and advancements, our leading positions in the markets in which we compete and our continued commitment to substantial investment in innovation. With 75 years of history in the ophthalmic industry, we believe the Alcon brand name is synonymous with innovation, quality, service and leadership among eye care professionals worldwide.
Our Markets
Overview
We currently operate in the global ophthalmic surgical and vision care markets, which are large, dynamic and growing. As the world population grows and ages, the need for quality eye care is expanding and evolving, and we estimate that the size of the eye care market in which we operate is approximately $25 billion and is projected to grow at approximately 4% per year from 2019 to 2025.
Although it is estimated that 80% of all visual impairments are currently preventable, treatable or curable, we operate in markets that have substantial unmet medical and consumer needs. For example, based on market research, it is estimated that there are currently 65 million people with moderate to severe vision impairment due to cataracts, 1.8 billion who suffer from presbyopia, 153 million with uncorrected refractive errors, 146 million with diabetic retinopathy, 76 million living with glaucoma and approximately 1.4 billion who suffer from symptoms of dry eye, among other unaddressed ocular health conditions. In addition, there are 1 billion people living with some form of unaddressed visual impairment, as well as 70% of the global population needing basic vision correction. Below is a brief description of these ocular disorders.
31


alc-20201231_g1.jpg
Our Surgical and Vision Care products are targeted at addressing many of these unmet medical and consumer needs. We expect the surgical and vision care markets to continue to grow, driven by multiple factors and trends, including but not limited to:
Aging population with growing eye care needs:  A growing aging population continues to drive the increased prevalence of eye care conditions worldwide, as the number of persons aged 60 years or over is expected to more than double by 2050, rising from 962 million globally in 2017 to 2.1 billion in 2050.
Innovation improving the quality of eye care:  Technology innovation in eye care is driving an increased variety of products that more effectively treat eye conditions. Given the importance of vision correction and preservation, which can provide a high return on healthcare spend, the resulting better patient outcomes are leading to increased coverage and reimbursement opportunities from governmental and private third-party payors, expanding patient access to such eye care products.
Increasing wealth and growth from emerging economies:  It is estimated that by 2030 the global middle class population could exceed 5 billion people with the majority of growth coming in emerging markets. This major demographic shift is generating a large, new customer base with increased access to eye care products and services along with the resources to pay for them. The expansion of training opportunities for eye care professionals in emerging markets is also leading to increased patient awareness and access to premium eye care products and surgical procedures, facilitating their growth.
Increasing prevalence of myopia, progressive myopia and digital eye strain:  It is estimated that by 2050, half of the world's population (nearly five billion people) will be myopic. Further, the modern work environment, along with leisure preferences, have increased the number of hours people spend in front of a screen, adversely impacting vision and increasing the risk of progressive myopia and digital eye strain.
The Surgical Market
The surgical market in which we operate is estimated to be $10 billion and is projected to grow at 4% per year from 2019 to 2025. The surgical market includes sales of implantables, consumables and surgical equipment, including associated technical, clinical and service support and training. Surgical implantables are medical devices designed to remain in the eye, such as monofocal and AT-IOLs placed in the eye during cataract surgery. Consumables include hand-held instruments, surgical solutions, equipment cassettes, patient interfaces and other disposable items typically used during a single ophthalmic surgical procedure. Finally, surgical equipment includes multi-use surgical consoles, lasers and diagnostic instruments used across procedures to enable surgeons to visualize and conduct ophthalmic surgeries. Market growth is expected to be driven mainly by:
Global growth of cataract and vitreoretinal procedures, driven by an aging population;
Increased access to care, for example, in emerging markets and other markets outside the US where the cataract surgery rate is 2.5 procedures per 1,000 people as compared to 9.7 in the US;
32


Higher uptake of premium patient-pay technologies, for example AT-IOL penetration is only 9.8% outside the US versus 16.2% in the US;
Increased adoption of advanced technologies, for example, improved diagnostic instruments, surgical options for glaucoma management and the growing use of phacoemulsification during cataract removal, which is utilized in less than 50% of cases in emerging markets versus over 95% in the US; and
The increasing prevalence of diabetes, the incidence of which has nearly doubled from 4.7% in 1980 to 8.5% in 2014, and for which eye disease is a comorbidity, combined with improving diagnostics capabilities and new product innovations, is expected to drive an uptake of premium procedures.
The vision care market in which we operate is estimated to be $15 billion and is projected to grow at 4% per year from 2019 to 2025. The vision care market is comprised of products designed for use by eye care professionals and consumers. Products are largely categorized across two product lines: contact lenses and ocular health. Market growth is expected to be driven mainly by:
Continued modality shift to daily disposable lenses from reusable lenses and the resulting sales premium (an increase of 2-3x sales per patient, after customary rebates and discounts) associated with daily disposable wearers as compared to users of reusable lenses;
Advancements in specialty lenses combined with increasing demand for toric, multifocal and cosmetic lenses, which command an approximately 15-30% pricing premium over spherical lenses, allowing patients to continue wearing contact lenses as they become older and helping to expand the market;
A significant population of approximately 194 million undiagnosed dry eye patients, with an additional 42 million self-diagnosed dry eye patients using unsuitable products for treatment, and advances in diagnostics and ocular health treatments, facilitating the increase in patient awareness of dry eye and treatment;
Growing access and consumption of vision care products in emerging markets such as Asia, which had an estimated single-digit contact lens penetration as compared to double digits in the developed world; and
Increasing consumer access through the expansion of distribution models, including internet sales and other direct-to-consumer channels.
Our Business
Overview
With $6.8 billion in net sales during the year ended December 31, 2020, we are the global leader in eye care. Our broad range of products represents one of the most complete portfolios in the ophthalmic device industry and comprises high-quality and technologically advanced products across all major product categories in the surgical and vision care markets. Our Surgical and Vision Care products are used in treating multiple ocular health conditions and offer leading eye care solutions for patients throughout their lives.
33


alc-20201231_g2.gif
Our leadership position across most of our product categories enhances our ability to extend our product offering through the launch of new and innovative products and to expand our geographic reach into ophthalmic markets worldwide. Our Surgical business had approximately $3.7 billion in net sales of implantables, consumables and equipment, as well as services and other surgical products, and our Vision Care business had approximately $3.1 billion in net sales of our contact lens and ocular health products, during the year ended December 31, 2020. The US accounted for 44% of our sales during the year ended December 31, 2020.
alc-20201231_g3.jpg
We believe the Alcon brand name is synonymous with innovation, quality, service and leadership among eye care professionals worldwide. In each of our markets, we rely on our strong relationships with eye care professionals and consumers to attract and retain customers and expand the market. We customize our selling efforts with the goal of surrounding eye care professionals with Alcon representatives that can help address each aspect of a customer's needs. Our field force supplements the direct promotion of our products by providing customers with access to clinical education programs, hands on training, data from clinical studies and technical service assistance.
We have 18 state-of-the-art manufacturing facilities that employ our proprietary technologies and know-how. We believe our global footprint, knowledge base in manufacturing, state-of-the-art facilities and capacity planning enable us to handle increased levels of product demand and product complexity. Furthermore, our global manufacturing and supply chain allows us to leverage economies of scale and reduce cost per unit as we ramp up production.
We have also made one of the largest commitments to research and development of any surgical and vision care company, with over 1,400 associates worldwide researching and developing treatments for vision conditions and eye
34


diseases, and have sought innovation from both internal and external sources. In 2020, we invested $673 million in research and development. In addition to our in-house research and development capabilities, we also consider external innovation opportunities and routinely screen for companies developing emerging technologies that we believe could enhance our existing product offerings or develop into innovative new products. We intend to continue to pursue acquisition, licensing and collaboration opportunities as part of our goal of remaining a market leader in innovation.
Our Surgical Business
We hold the number one position in the global surgical market, offering implantable products, consumables and equipment for use in surgical procedures to address cataracts, vitreoretinal conditions, refractive errors and glaucoma. Our Surgical business has the most complete line of ophthalmic surgical devices in the industry, creating a "one-stop shop" for our customers that we consider to be a key differentiator for our business. For the year ended December 31, 2020, our Surgical business had $3.7 billion in net sales.
Our Vision Care Business
Our Vision Care business consists of an extensive portfolio of contact lens and ocular health products, aimed at helping consumers see better. Our product lines include daily disposable, reusable and color-enhancing contact lenses. We also offer a comprehensive portfolio of ocular health products, including devices and over-the-counter products for dry eye, over-the-counter products for contact lens care and ocular allergies, as well as ocular vitamins and redness relievers. With $3.1 billion in vision care net sales for the year ended December 31, 2020, we aim to continue to innovate across our vision care portfolio to improve the lives of consumers and eye care professionals around the world.
Our Strengths
We have a strong foundation based on robust industry expertise, leading brands and excellence in customer service, backed by 75 years of history as a trusted brand. Our strengths include:
Global leader in highly attractive markets with the most complete brand portfolio.  With $6.8 billion in net sales in the year ended December 31, 2020, we are the leader in an attractive eye care market, which is supported by favorable population megatrends and is expected to grow at approximately 4% per year from 2019 to 2025. Our Surgical business is the market leader in sales of ophthalmic equipment used in the operating room and is supported by the largest installed base of equipment worldwide, which we use to cross-promote our surgical consumables and IOLs. In our Vision Care business, our extensive portfolio of contact lens and ocular health products includes well-recognized brands such as DAILIES, Systane and Opti-Free. We believe our global leadership position and extensive brand portfolio allow us to benefit and build on the robust fundamentals driving growth in our markets.
Innovation-focused with market leading development capabilities and investment.  We have made one of the largest commitments to research and development in the eye care market, with proven research and development capabilities in the areas of optical design, material and surface chemistry, automation and equipment platforms. Currently, we employ over 1,400 individuals dedicated to our research and development efforts, including physicians, doctors of optometry and PhDs. In addition, we actively seek opportunities to collaborate with third parties on advanced technologies to support our eye care business.
Global scale and reach supported by high-quality manufacturing network.  We have an extensive global commercial footprint that provides us with the scale and reach to support future growth, maximize the potential of new launches, enter new geographies efficiently and to take advantage of the large, dynamic and growing surgical and vision care markets. Our commercial footprint, which includes operations in 75 countries, reaches consumers and patients in over 140 countries and is supported by over 3,500 sales force associates, 18 state-of-the-art manufacturing facilities employing our proprietary technologies and know-how and our extensive global regulatory capability. Our extensive sales and distribution network, supported by our market leadership position and focus on innovation and customer experience, enhances our ability to expand our geographic reach and extend our product offerings through the launch of new and innovative products worldwide.
Outstanding customer relationships and a trusted reputation for customer service, training and education. We believe that maintaining the highest levels of service excellence in our customer experience is a critical success factor in our industry. In our Vision Care business, we regularly meet with eye care practitioners to gain feedback and insights on our products and consumers' needs. We also provide training support at over 70 state-of-the-art interactive training centers around the world, as well as through numerous digital and event-based training programs that we provide for practitioners, clinical support staff, students, residents, patients and
35


consumers. In each of our businesses, we have built and maintained our relationships with key stakeholders to establish our trusted reputation in the industry.
World leading expertise in eye care led by a first-class management team.  Our expertise in eye care is driven by our 75-year history in the industry and is supported by a high-quality workforce of more than 23,000 associates. We believe our institutional knowledge provides a competitive advantage because our associates' industry expertise, relationships with our customers and understanding of the development, manufacture and sale of our products helps us to better identify new customer needs, assess markets for entry and identify promising technologies. In addition, we believe the diverse experience of our management team in running complex businesses allows them to add significant value to our company. In particular, we benefit from having a management team with an extensive background in the eye care industry. Led by David J. Endicott, our Chief Executive Officer, our management team's deep knowledge of eye care has created excitement among our workforce for our mission,
Our Strategy
Our going-forward strategy builds on five key pillars in order to generate sustainable and profitable growth:
Maximize the potential of our near-term portfolio by growing key products.  In Surgical, we plan to build on our leading position in the IOL market through the launch of new AT-IOLs, where premium pricing drives market value. In addition, we expect improved diagnostics and new optical designs will address historical barriers to AT-IOL adoption to further grow this patient-pay market. We will also continue to invest behind our presbyopia-correcting products (e.g., PanOptix, Vivity) and execute on the development of our next generation equipment ecosystem for the operating room and office, leading to integration and intra-operability. In Vision Care, we intend to maintain and grow our leading position in most of our product categories through increased eye care professional and consumer education, supported by continuous production innovation. We intend to expand our position in the daily disposable category behind our DAILIES TOTAL1 and PRECISION1 family of products. We also aim to expand the dry eye product market by leveraging our well-recognized Systane family of eye drops and increasing investment in dry eye education and awareness, as well as address the allergy relief market with the Pataday family of products, where we see a significant unmet need and an opportunity for robust market growth.
Accelerate innovation and deliver the next wave of technologies.  We are committed to accelerating innovation by continuing to be one of the market leaders in investment in ophthalmic research and development. The research and development activities of our Surgical business are focused on expanding our AT-IOL portfolio to optimize the function of the IOL in restoring vision and reducing outcome variability, including through the use of advanced optics, light adjustable materials, accommodating lenses and modular platforms. We are also developing next-generation lasers, robotics and other equipment for cataract, vitreoretinal and laser-refractive surgery, as well as improved visualization equipment. In our Vision Care business, our focus is on developing and launching new contact lens materials, coatings and designs to extend our product lines and improve patient comfort, as well as on new products to expand our portfolio of dry eye diagnostic and treatment, presbyopia and ocular health products. Finally, we expect to continue to supplement our internal innovation investments by identifying and executing on attractive BD&L opportunities with leading academic institutions and early-stage companies.
Capture opportunities to expand markets and pursue adjacencies.  We believe there is a significant opportunity for growth in markets around the world due to under-penetration of both premium surgical devices, such as AT-IOLs, and of our Vision Care portfolio. We intend to facilitate this growth by continued investment in promotion and customer education across all of our markets. In emerging markets in particular, we believe that the growing number of eye care professionals and dedicated eye hospitals, increased levels of affluence, improving technology access and better patient awareness will increase the adoption of our products. In addition, we believe we have significant opportunities to expand into adjacent product categories in which Alcon has not significantly participated in the past, through a combination of internal development efforts and potential mergers and acquisitions activity. These opportunities include office-based diagnostics, surgical visualization, pharmaceuticals, solutions for myopia control and consumer driven ocular health products, where we expect our eye care expertise and global commercial footprint will allow us to attract and retain new customers.
Support new business models to expand customer experience.  In Surgical, we intend to continue to identify new business models that benefit healthcare providers and improve access to leading Alcon products and technologies. For example, we are pursuing value-based business models that reward improved patient outcomes, as well as models that contract the entire procedure versus individual products. In Vision Care, where e-commerce entries have created some disruption of traditional sales channels, we believe that digital technology can address pain points experienced in existing paths to purchase. We intend to continue investing and
36


innovating in digital capabilities to develop new business models in response to channel shifts and the increase in direct-to-consumer influence.
Leverage infrastructure to improve operating efficiencies and margin profile over time.  With the significant organizational and infrastructure investments we have made over the last several years, we believe we have established a stable foundation that will allow us to continue to enhance the productivity of our commercial resources and meaningfully improve our core operating income margins over time. Further, we intend to improve the mix of our products, implement further supply chain efficiency initiatives and support new lower-cost manufacturing platforms to drive future operating profit and cash flows.
Our Industry
Selected Conditions that are Treated by Eye Surgery and Surgical Products
Cataracts
A cataract is the progressive clouding of the normally transparent natural lens in the eye. This clouding is usually caused by the aging process, although it can also be caused by heredity, diabetes, environmental factors and, in some cases, medications. As cataracts grow, they typically result in blurred vision and increased sensitivity to light. Cataract formations occur at different rates and may affect one or both eyes. Cataract surgery is one of the most frequently performed surgical procedures. According to the National Eye Institute, cataracts are the leading cause of blindness worldwide even though effective surgical treatment exists. Currently, surgical removal of the clouded lens followed by insertion of a transparent artificial replacement lens, called an IOL, is the preferred treatment for cataracts. The clouded lens is usually removed through a process known as phacoemulsification. During phacoemulsification, an ophthalmic surgeon makes a small surgical incision in the cornea (approximately 2-3 millimeters wide) and inserts an ultrasonic probe that breaks up, or emulsifies, the clouded lens while a hollow needle removes the pieces of the lens. Once the cataract is removed, the surgeon inserts an intraocular lens through the same surgical incision. An AT-IOL is a type of IOL that also corrects for refractive errors, like presbyopia and astigmatism, at the time of cataract surgery.
Retinal Disorders
Vitreoretinal procedures involve surgery on the back portion of the eye, namely the retina and surrounding structures. Vitrectomy is the removal of the gel-like substance, known as vitreous, that fills the back portion of the eye. Removal of the vitreous allows a vitreoretinal surgeon to operate directly on the retina or on membranes or tissues that have covered the retina. These procedures typically treat conditions such as diabetic retinopathy, retinal detachment or tears, macular holes, complications of surgery on the front of the eye, diabetic macular edema, trauma, tumors and pediatric disorders. Vitreoretinal surgery can also involve electronic surgical equipment, lasers and hand-held microsurgical instruments as well as gases and liquids that are injected into the eye.
Refractive Errors
Refractive errors, such as myopia, commonly known as near-sightedness, hyperopia, commonly known as far-sightedness, and astigmatism, a condition in which images are not focused at any one point, result from an inability of the cornea and the lens to focus images on the retina properly. If the curvature of the cornea is incorrect, light passing through it onto the retina is not properly focused and a blurred image results. For many years, eyeglasses and contact lenses were the only solutions for individuals afflicted with common visual impairments; however, they are not always convenient or attractive solutions. Laser refractive surgery offers an alternative to eyeglasses and contact lenses. Excimer lasers, which are low-temperature lasers that remove tissue without burning, are currently used to correct refractive errors by removing small amounts of tissue to reshape the cornea. These lasers remove tissue precisely without the use of heat and without affecting the surrounding tissue. In the LASIK procedure, the surgeon uses either a femtosecond laser or an automated microsurgical instrument, called a microkeratome, to create a thin corneal flap that remains hinged to the eye. The corneal flap is then folded back and excimer laser pulses are applied to the exposed layer of the cornea to change the shape of the cornea. The corneal flap is then returned to its normal position. LASIK has become the most commonly practiced form of laser refractive surgery globally.
Presbyopia
Presbyopia occurs when the natural crystalline lens inside the eye becomes less flexible and loses the ability to focus on close objects. Presbyopia is a vision condition that accompanies the natural aging process of the eye. It cannot be prevented and affects nearly two billion people worldwide. Although the onset of presbyopia among patients may seem to occur suddenly, generally becoming noticeable when patients reach their mid- to late 30s or early to mid-40s, sight reduction typically occurs gradually over time and continues for the rest of the patient's life. Some signs of presbyopia
37


include difficulty reading materials held close to the reader, blurred vision while viewing a computer screen and eye fatigue along with headaches when reading. Presbyopia can be accompanied by other common vision conditions, such as myopia, hyperopia and astigmatism. Presbyopia, while most commonly managed with reading glasses, can be addressed surgically by the implantation of an AT-IOL that allows for the correction of presbyopia at the time of cataract surgery.
Glaucoma
Glaucoma, a group of eye conditions that damage the optic nerve, is the second leading cause of blindness worldwide. While elevated intraocular pressure was historically considered to be synonymous with glaucoma, it is now known that many patients with glaucoma have normal intraocular pressure. Treating glaucoma is typically aimed at lowering intraocular pressure for patients with normal or elevated pressure.
Most commonly, glaucoma is managed using medication (e.g., drops). For cases requiring additional intervention, laser-based procedures and conventional surgical techniques, such as filtration surgery and tube shunts, have typically been used to lower IOP. Filtration surgeries, such as trabeculectomy, involve the creation of a new channel to drain aqueous humor from inside the eye. Similarly, tube shunts establish a route for fluid to exit through an implanted device. More recently, a new category of device and procedure-based surgical intervention, known as MIGS, has emerged and is experiencing rapid adoption among both glaucoma and cataract specialists.
Selected Conditions and Eye Care Considerations that are Addressed by Vision Care Products
Refractive Errors
Refractive errors such as myopia, hyperopia, astigmatism and presbyopia are commonly addressed by the use of contact lenses. Presbyopia, for example, can be addressed by the use of multifocal contact lenses.
Dry Eye Disease
Dry eye disease is a ubiquitous, complex and multifactorial condition, and its effect on patients ranges from intermittent and irritating discomfort to a serious, chronic, progressive and irreversible vision-threatening disorder. The incidence of dry eyes rises with age, and longer life spans and aging populations throughout the world are key contributors to increased demand for treatment. Evolving patterns of work and play also contribute to increased demand for treatment, as more people spend significant amounts of time working on computers and other digital devices. Wealthier, professional and urban population segments are expanding in rapidly emerging economies and other developing nations, and these populations have greater access to health care and more resources with which to acquire treatment. In addition, more sophisticated diagnostic tools and a greater variety of dry eye products and treatments, such as artificial tear products, are offering improved effectiveness and greater relief as they simultaneously stimulate demand.
Infections and Contamination due to Inadequate Contact Lens Care
Proper care of contact lenses through compliance with disinfection regimens is important in reducing the risk of infection and irritation associated with the use of reusable contact lenses, as contact lenses are subject to contamination from cosmetics, grease, bacteria, soaps, hand lotions and atmospheric pollutants, and from proteins contained in natural tears. When used properly, contact lens care products remove such contaminants from the surface of the contact lens. In addition, lens rewetting drops may be used to rehydrate the lens during wear and to clear away surface material.
Ocular Allergies
Allergic conjunctivitis occurs when the conjunctiva of the eye becomes swollen from inflammation due to a reaction to pollen, dander, mold or other allergy-causing substances. When the eyes are exposed to allergy-causing substances, which can vary from person-to-person and are often dependent on geography, a substance called histamine is released by the body and causes blood vessels in the conjunctiva to swell. "Allergy eyes" can become red and itchy very quickly. Seasonal Allergic Conjunctivitis ("SAC") is the most common type of eye allergy. People affected by SAC experience symptoms during certain seasons of the year. Allergy eye can be treated with various ocular health products including medications, such as antihistamines, and combinations of antihistamines and redness relievers.
Our Products
We research, develop, manufacture, distribute and sell eye care products. Our broad range of products represents one of the strongest portfolios in the eye care industry, with high-quality and technologically advanced products across all major
38


product categories in ophthalmic surgical devices and vision care. We are organized into two global business segments: Surgical and Vision Care.
Surgical
We hold the number one position in the global ophthalmic surgical market, offering implantable products, consumables and equipment for use in surgical procedures to address cataracts, vitreoretinal conditions, refractive errors and glaucoma. Our Surgical portfolio includes equipment, instrumentation and diagnostics, IOLs and other implantables and a broad line of consumables, including viscoelastics, surgical solutions, incisional instruments, surgical custom packs and other products. For the year ended December 31, 2020, net sales for our implantables, consumables and equipment and other surgical products were $1.1 billion, $2.0 billion and $0.6 billion, respectively.
Cataract, vitreoretinal, refractive and glaucoma surgeries are generally performed in hospitals or ambulatory surgery centers and are supported through a network of eye clinics, ophthalmic surgery offices and group purchasing organizations. The primary ophthalmic surgical procedures for cataract, vitreoretinal and glaucoma surgery are broadly reimbursed in most mature markets. Third-party coverage or patient co-pay options are also available for refractive laser correction and AT-IOLs. Finally, a growing private pay market for premium surgical devices provides a mutually beneficial environment for patients, providers and medical device companies by allowing patients to pay the non-reimbursable cost of a procedure associated with selecting premium devices, such as AT-IOLs.
Our installed base of equipment is core to our market leading position in our Surgical business, with best-in-class platforms in cataract and vitreoretinal equipment and the largest installed base of cataract phacoemulsification consoles, vitrectomy consoles and refractive lasers in the industry. These platforms each have long buying cycles that last approximately seven to ten years and act as anchoring technologies that drive recurring sales of our consumables and help cross-promote sales of our implantable devices.
Across our Surgical portfolio, we sell a tiered offering of products intended to meet the specific needs of customers in markets around the world at different price points. Newly launched offerings that bring considerable technology innovation to the market are typically introduced at a price premium to offset the cost of research and development. As these products age and/or competitive products advance, prices typically trend downward, requiring continuous innovation cycles to maintain and/or grow our margins. We also develop specific products to match customer needs in different customer segments, for example, premium-tier and mid-tier surgical consoles that can be manufactured and sold at different price points in different markets.
alc-20201231_g4.jpg
Our strong installed base of equipment and extensive clinician relationships drive sales of our IOLs and consumables. We consider the quality and breadth of our portfolio to be a key differentiator as a "one-stop-shop" offering for our customers, synonymous with quality, reliability and accessibility. Our Cataract Refractive Suite covers every stage of the surgical workflow from clinical planning to cataract removal and post-operative optimization.
In 2013, we launched our Centurion vision system for cataract surgery. This system includes Active Fluidics technology, an automated system that optimizes anterior chamber stability by allowing surgeons to proactively set and maintain target IOP within the eye during the cataract removal procedure, thereby delivering an unprecedented level of intraoperative control.
We also sell the LenSx laser system. The first femtosecond laser to receive FDA clearance for use in cataract surgery, LenSx is used to create incisions in the cornea, create a capsulorhexis and complete lens fragmentation as part of the cataract procedure. This enables surgeons to perform some of the most delicate manual steps of cataract surgery with image-guided visualization and micron precision.
Our Verion reference unit and Verion digital marker together form an advanced surgical planning, imaging and guidance technology designed to provide greater accuracy and efficiency during cataract surgery. Our ORA System also provides key intra-operative measurements to improve the placement precision of an implanted IOL during cataract surgery, for example, by aligning the rotation of a toric IOL to the axis of astigmatism. Post-operatively, our ORA System aids with outcomes analysis and ongoing optimization for improved outcomes.
39


Finally, the NGENUITY 3D visualization system provides surgeons improved visualization by combining a high-dynamic 3D camera, advanced high-speed image optimization, polarizing surgeon glasses and an ultra-high definition 4K OLED 3D display that offers improved depth perception. Within visualization, we also sell the LuxOR surgical ophthalmic microscope with its proprietary ILLUMIN-i technology, which provides an expanded illumination field with a 6x-larger, highly stable red reflex zone.
alc-20201231_g5.jpg
An IOL is a tiny, artificial lens for the eye, which replaces the eye's natural lens that is removed during cataract surgery. Our AcrySof IOL is the most implanted IOL in the world. AcrySof IOLs are made of the first material specifically engineered for use in intraocular lens.
We have a longstanding record of innovation within the IOL market. In 2005, we introduced a new class of IOLs to correct presbyopia with our multifocal AcrySof ReSTOR offering. In 2006, we also launched the AcrySof Toric IOL, designed to correct various levels of preexisting astigmatism in cataract patients. In 2009, the AcrySof IQ Toric lens was launched globally, incorporating the aspheric technology into a toric design.
We have continued to grow our ReSTOR portfolio. In 2016, the AcrySof IQ ReSTOR 3.0D Toric IOL was approved by the FDA and launched in the US to address presbyopia and preexisting astigmatism at the time of cataract surgery in adult patients who desire improved near, intermediate and distance vision with an increased potential for spectacle independence. In 2017, the AcrySof IQ ReSTOR +2.5D Toric IOL was approved by the FDA and launched in the US.
In recent years, presbyopia correction lenses have evolved to include trifocal designs. In 2015, we launched the AcrySof IQ PanOptix trifocal IOL in select markets outside the US to complement our ReSTOR multifocal offering. This novel diffractive optic sends light to three foci to support near, intermediate and distance vision. In 2017, the AcrySof IQ PanOptix Toric lens was launched in select markets outside the US to address both astigmatism and presbyopia. We launched the AcrySof IQ PanOptix trifocal IOL in the US and Japan in 2019. We also launched the AcrySof IQ Vivity non-diffractive extended depth of focus ("EDoF") IOL in 2019 in Europe, Australia and Latin America. This optic design allows for extended range of vision and presbyopia correction with the visual disturbance profile of a monofocal IOL.
We have also introduced several innovations to the delivery device used for introducing an IOL into the capsular bag during cataract surgery. Our UltraSert pre-loaded IOL delivery system combines the control of a manually loaded device with the safety and convenience of a disposable, pre-loaded injector to optimize the implantation of the AcrySof IQ Aspheric IOL into the cataract patient's eye.
In 2017, we received a European CE Mark for the Clareon IOL with the AutonoMe delivery system. AutonoMe is the first automated, disposable, pre-loaded IOL delivery system that enables precise delivery of the IOL into the capsular bag in patients undergoing cataract surgery. The new device is being introduced with the Clareon IOL, a new material with an advanced design that enables sharp, crisp vision, low edge glare and unsurpassed optic clarity.
Our AT-IOLs provide significant visual benefits to patients above standard monofocal IOLs. Accordingly, the price for these AT-IOLs is higher than the price for monofocal styles. This impacts the market penetration of AT-IOLs in the majority of countries, as patients must pay incremental charges above the cost of traditional cataract surgery to obtain an AT-IOL and, in some markets, must pay out-of-pocket for the entire surgical procedure and the AT-IOL.
In the US, our monofocal IOLs are generally fully covered by medical insurance providers or government reimbursement programs, whereas certain of our AT-IOLs may only be partially covered. This payment model was established by two landmark rulings issued by CMS in May 2005 and January 2007. The CMS rulings provide Medicare beneficiaries a choice between cataract surgery with a monofocal IOL, which would be reimbursed as a covered benefit under Medicare, or cataract surgery with an AT-IOL, such as our AcrySof ReSTOR lens and AcrySof Toric lens, which would be partially reimbursed under Medicare and partially paid out-of-pocket. Many commercial insurance plans mirror the CMS rulings, although commercial plans may vary based on third-party payor. The bifurcated payment for the implantation of AT-IOLs has increased the market acceptance of our AT-IOLs in the US Outside the US, payment and reimbursement models vary widely from country to country, generally depending on the policy adopted by the relevant local healthcare authority on coverage and payment.
40


alc-20201231_g6.jpg
To provide convenience, efficiency and value for ophthalmic surgeons, Alcon offers Custom Pak surgical procedure packs for use in ophthalmic surgery. Unlike conventional surgical procedure packs, our Custom Pak surgical procedure packs allow individual surgeons to customize the products included in their pack. Our