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Other impairments, restructuring and other items | 3 Months Ended
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Mar. 31, 2018
Other impairments, restructuring and other items | NOTE 14 – Other impairments, restructuring and other items: Other impairments, restructuring and other items consisted of the following:
|  | Three months ended March 31, |
|  | 2018 |  |  | 2017 |
|  | (U.S. $ in millions) |
Restructuring expenses |  | $ | 247 |  |  | $ | 130 |
Integration expenses |  |  | — |  |  |  | 23 |
Contingent consideration |  |  | 8 |  |  |  | 21 |
Impairments of long-lived assets |  |  | 432 |  |  |  | 11 |
Other |  |  | 20 |  |  |  | 55 |
Total |  | $ | 707 |  |  | $ | 240 |
In determining the estimated fair value of long-lived assets, Teva utilized a discounted cash flow model. The key assumptions within the model related to forecasting future revenue and operating income, an appropriate WACC and an appropriate terminal value based on the nature of the long-lived asset. The Company’s updated forecasts of net cash flows for the impaired assets reflect, among others, the following: (i) for IPR&D assets, the impact of changes to the development programs, the projected development and regulatory timeframes and the risks associated with these assets; and (ii) for product rights, pricing and volume projections, as well as patent life and any significant changes to the competitive environment. As a result of Teva’s plant rationalization acceleration, following the two year restructuring plan that was announced in December 2017, to the extent the Company will change its plans on any given asset and/or the assumptions underlying such plan, there could be additional impairments in the future. Impairments
| • |  | Impairments of long-lived intangible assets in the first quarter of 2018 were $206 million, mainly consisting of:
| • |  | Identifiable IPR&D of $117 million mainly related to revaluation of generic products acquired from Actavis Generics due to development progress and changes in other key valuation indications (market size, legal landscape, launch date or discount rate).
| • |  | Identifiable product rights of $76 million due to revaluation of Actavis Generics product rights in the United States.
| • |  | Impairments of property, plant and equipment in the first quarter of 2018 were $226 million, mainly consisting of:
| • |  | $147 million related to restructuring costs, including:
| • |  | $113 million related to site closures in Israel; and
| • |  | $34 million related to headquarters and distribution sites consolidation in the United States;
| • |  | Other impairment costs, mainly $56 million related to a plant located India, in connection with the P&G separation agreement.
Restructuring In the first quarter of 2018, Teva recorded $247 million of restructuring expenses, compared to $130 million in the first quarter of 2017. The expenses in the first quarter of 2018 were primarily related to headcount reductions across all functions. Since Teva’s announcement of its restructuring plan, the Company reduced its global headcount by approximately 6,200 full-time-equivalent employees. Teva also recorded a $226 million impairment of property, plant and equipment related to restructuring costs as detailed in “— Impairments” above. The following table provides the components of costs associated with Teva’s restructuring plan, including costs related to exit and disposal activities:
|  | Three months ended March 31, |
|  | 2018 |  |  | 2017 |
|  | (U.S. $ in millions) |
Restructuring |  |  |  |  |  |  |  |
Employee termination |  | $ | 228 |  |  | $ | 95 |
Other |  |  | 19 |  |  |  | 35 |
Total |  | $ | 247 |  |  | $ | 130 |
The following table provides the components of and changes in the Company’s restructuring accruals:
|  | Employee termination costs |  |  | Other |  |  | Total |
|  | (U.S. $ in millions ) |
Balance as of January 1, 2018 |  | $ | (294 | ) |  | $ | (17 | ) |  | $ | (311 | )
Provision |  |  | (228 | ) |  |  | (19 | ) |  |  | (247 | )
Utilization and other* |  |  | 129 |  |  |  | 7 |  |  |  | 136 |
Balance as of March 31, 2018 |  | $ | (393 | ) |  | $ | (29 | ) |  | $ | (422 | )
* | Includes adjustments for foreign currency translation.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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