NOTE 22—SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):

The following table presents selected unaudited quarterly financial data for 2018 and 2017:


	2018*
	4th quarter**			3rd quarter**			2nd quarter**			1st quarter**
	(U.S. $ in millions, except per share amounts)
Net revenues		4,559			4,529			4,701			5,065
Gross profit		1,971			1,977			2,033			2,315
Net income (loss)		(3,243	)		(197	)		(166	)		1,134
Net income (loss) attributable to Teva		(2,886	)		(208	)		(176	)		1,120
Net income (loss) attributable to ordinary shareholders		(2,940	)		(273	)		(241	)		1,055
Earnings per share attributable to ordinary shareholders:
Basic		(2.85	)		(0.27	)		(0.24	)		1.04
Diluted		(2.85	)		(0.27	)		(0.24	)		1.03

	2017*
	4th quarter**			3rd quarter**			2nd quarter**			1st quarter**
	(U.S. $ in millions, except per share amounts)
Net revenues		5,398			5,617			5,720			5,650
Gross profit		2,444			2,599			2,802			2,770
Net income (loss)		(11,730	)		610			(5,970	)		641
Net income (loss) attributable to Teva		(11,535	)		595			(5,970	)		645
Net income (loss) attributable to ordinary shareholders		(11,600	)		530			(6,035	)		580
Earnings per share attributable to ordinary shareholders:
Basic		(11.41	)		0.52			(5.94	)		0.57
Diluted		(11.41	)		0.52			(5.94	)		0.57

*	Certain comparative figures have been reclassified to conform to the fourth quarter presentation.

**	Losses in the second and fourth quarters of 2017 were primarily due to goodwill impairments of $6.1 billion and $11 billion, respectively.

During the fourth quarter of 2018, the Company changed its accounting policy for the presentation of royalty payments to third parties (see note 1 bb). The impact of the change in accounting policy for the first, second, third and fourth quarters of 2018 was an increase in cost of sales of $33 million, $28 million, $44 million and $37 million, respectively, with a corresponding decrease in S&M expenses. The Company has retrospectively adjusted prior periods to reflect this change in the first, second, third and fourth quarters of 2017, increasing cost of sales by $69 million, $53 million, $51 million and $37 million, respectively, with a corresponding decrease in S&M expenses.