
	Three months ended June 30, 2019
	North America		Europe		International Markets		Other activities		Total
	(U.S. $ in millions)
Sale of goods		1,686		1,173		526		204		3,588
Licensing arrangements		35		10		2		1		48
Distribution		351		§		164		—		515
Other		—		§		49		137		186

	$	2,071	$	1,183	$	741	$	342		4,337

§ Represents an amount less than $1 million.


	Three months ended June 30, 2018
	North America		Europe		International Markets		Other activities		Total
	(U.S. $ in millions)
Sale of goods		1,913		1,317		573		186		3,989
Licensing arrangements		30		8		1		2		41
Distribution		320		3		154		—		477
Other		—		—		61		133		194

	$	2,263	$	1,328	$	789	$	321	$	4,701

	Six months ended June 30, 2019
	North America		Europe		International Markets		Other activities		Total
	(U.S. $ in millions)
Sale of goods		3,324		2,433		994		390		7,141
Licensing arrangements		65		15		2		3		85
Distribution		729		§		315		—		1,044
Other		—		§		97		264		362

	$	4,118	$	2,448	$	1,409	$	657	$	8,632

§ Represents an amount less than $1 million.

	Six months ended June 30, 2018
	North America		Europe		International Markets		Other activities		Total
	(U.S. $ in millions)
Sale of goods		4,081		2,746		1,092		365		8,284
Licensing arrangements		62		18		21		4		105
Distribution		651		6		307		—		964
Other		—		—		119		294		413

	$	4,794	$	2,770	$	1,539	$	663	$	9,766

Variable consideration

Variable consideration mainly includes sales reserves and allowances (“SR&A”), comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables.

The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions.

SR&A to U.S. customers comprised approximately 83% of the Company’s total SR&A as of June 30, 2019, with the remaining balance primarily in Canada and Germany.

The changes in SR&A for third-party sales for the six months ended June 30, 2019 were as follows:


	Sales Reserves and Allowances
	Reserves included in Accounts Receivable, net			Rebates			Medicaid and other governmental allowances			Chargebacks			Returns			Other			Total reserves included in SR&A			Total
	(U.S.$ in millions)
Balance at December 31, 2018	$	175		$	3,006		$	1,361		$	1,530		$	638		$	176		$	6,711		$	6,886
Provisions related to sales made in current year period		229			2,651			548			4,822			148			213			8,427			8,656
Provisions related to sales made in prior periods		—			7			—			(5	)		3			(4	)		1			1
Credits and payments		(242	)		(2,975	)		(739	)		(4,936	)		(196	)		(206	)		(9,052	)		(9,294	)
Translation differences		—			4			—			2			2			4			12			12

Balance at June 30, 2019	$	162		$	2,693		$	1,170		$	1,413		$	595		$	183		$	6,054		$	6,261