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Other assets impairments, restructuring and other items | 12 Months Ended
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Dec. 31, 2019
Other assets impairments, restructuring and other items | NOTE 15—Other assets impairments, restructuring and other items:
|  | Year ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | (U.S. $ in millions) |
Impairment of long-lived tangible assets (1) |  | $ | 139 |  |  | $ | 500 |  |  | $ | 544 |
Contingent consideration (see note 2 0 ) |  |  | 59 |  |  |  | 57 |  |  |  | 154 |
Acquisition, integration and related costs |  |  | — |  |  |  | 13 |  |  |  | 105 |
Restructuring |  |  | 199 |  |  |  | 488 |  |  |  | 535 |
Venezuela deconsolidation charge (see note 1) |  |  | — |  |  |  | — |  |  |  | 396 |
Other |  |  | 26 |  |  |  | (71 | ) |  |  | 102 |
Total |  | $ | 423 |  |  | $ | 987 |  |  | $ | 1,836 |
(1) | Including impairments related to exit and disposal activities
Following Teva’s two-year restructuring plan announced in December 2017 and its ongoing plant rationalization efforts, the Company may change its current plans with respect to any given asset and/or the assumptions underlying such plans. Consequently, additional impairments may be recorded in the future. Impairments Impairments of tangible assets for the years ended on December 31, 2019, 2018 and 2017 were $139 million $500 million, and $544 million, respectively . Contingent consideration In 2019, Teva recorded $59 million of contingent consideration expenses, compared to $57 million and $154 million in 2018 and 2017 , r espectively. The expenses in 2019 were mainly related to a change in the estimated future royalty payments from Eagle in connection with bendamustine sales and an increase in the expected future royalty payments to Eagle due to the orphan drug status granted to BENDEKA ® , offset by the change in future royalty payments in connection with lenalidomide (generic equivalent of Revlimid ® ), which was part of the Actavis Generics acquisition. Restructuring In 2019, Teva recorded $199 million of restructuring expenses, compared to $488 million in 2018 and $535 million in 2017. The expenses in 2019 were primarily related to headcount reductions across all functions, as part of the restructuring plan announced in 2017. In December 2017, Teva announced a comprehensive two-year restructuring plan intended to reduce its cost base by $3 billion, unify and simplify its organization and improve business performance, profitability, cash flow generation and productivity. This plan achieved its goals by the end of 2019. Teva is continuing to evaluate opportunities to further optimize its manufacturing and supply network to achieve additional operational efficiencies. Since the announcement of its restructuring plan, Teva reduced its global headcount by approximately 13,000 full-time-equivalent employees. The following tables provide the components of costs associated with Teva’s restructuring plan, including other costs associated with Teva’s restructuring plan and recorded under different items:
|  | Year ended December 31, |
|  | 201 9 |  |  | 201 8 |  |  | 201 7 |
|  | (U.S. $ in millions) |
Restructuring |  |  |  |  |  |  |  |  |  |  |  |
Employee termination |  | $ | 159 |  |  | $ | 410 |  |  | $ | 443 |
Other |  |  | 40 |  |  |  | 78 |  |  |  | 92 |
Total |  | $ | 199 |  |  | $ | 488 |  |  | $ | 535 |
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, 201 8 |  | $ | (294 | ) |  | $ | (17 | ) |  | $ | (311 | )
Provision |  |  | (410 | ) |  |  | (78 | ) |  |  | (488 | )
Utilization and other* |  |  | 500 |  |  |  | 66 |  |  |  | 566 |
Balance as of December 31, 201 8 |  | $ | (204 | ) |  | $ | (29 | ) |  | $ | (233 | )
Provision |  |  | (159 | ) |  |  | (40 | ) |  |  | (199 | )
Utilization and other* |  |  | 155 |  |  |  | 62 |  |  |  | 217 |
Balance as of December 31, 201 9 |  | $ | (208 | ) |  | $ | (7 | ) |  | $ | (215 | )
* | Includes adjustments for foreign currency translation.
Significant regulatory events In July 2018, the FDA completed an inspection of Teva’s manufacturing plant in Davie, Florida in the United States, and issued a Form FDA-483 to the site. In October 2018, the FDA notified Teva that the inspection of the site is classified as “official action indicated” (OAI). On February 5, 2019, Teva received a warning letter from the FDA that contained four additional enumerated concerns related to production, quality control and investigations at this site. Teva has been working diligently to address the FDA’s concerns in a manner consistent with current good manufacturing practice (cGMP) requirements as quickly and as thoroughly as possible. An FDA follow up inspection occurred in January 2020, resulting in some follow up findings. If Teva is unable to remediate the findings to the FDA’s satisfaction, it may face additional consequences. These would potentially include delays in FDA approval for future products from the site, financial implications due to loss of revenues, impairments, inventory write offs, customer penalties, idle capacity charges, costs of additional remediation and possible FDA enforcement action. Teva expects to generate approximately $230 million in revenues from this site in 2020, assuming remediation or enforcement does not cause any unscheduled slowdown or stoppage at the facility or prevent approvals of new products from the site. In July 2018, Teva announced the voluntary recall of valsartan and certain combination valsartan medicines in various countries due to the detection of trace amounts of a previously unknown nitrosamine impurity called NDMA found in valsartan API supplied to it by Zhejiang Huahai Pharmaceutical Co., Ltd. (“Huahai”). Since July 2018, Teva has been actively engaged with regulatory agencies around the world in reviewing its sartan and other products to determine whether NDMA and/or other related nitrosamine impurities are present in specific products. Where necessary, Teva has initiated additional voluntary recalls. The aggregate direct impact of this recall on Teva’s 2018 and 2019 financial statements was $54 million, primarily related to inventory write-downs and returns. As a result of this loss, Teva initiated negotiations with Huahai and in December 2019, Teva reached a settlement with Huahai resolving its claims related to certain sartan API Huahai supplied to Teva. Under the settlement agreement, Huahai agreed to compensate Teva for some of the direct losses suffered by Teva and provide Teva prospective cost reductions for API. The settlement does not release Huahai from liability for any losses Teva may incur as a result of third party personal injury or product liability claims relating to the sartan API at issue. In addition, multiple lawsuits have been filed in connection with this matter, which may lead to additional customer penalties, impairments and litigation costs. Teva expects additional expenses and loss of revenues and profits in connection with this matter going forward.

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