(a)

North America segment, which includes the United States and Canada.

(b)

Europe segment, which includes the European Union and certain other European countries.

(c)

International Markets segment, which includes all countries other than those in the North America and Europe segments.

In addition to these three segments, Teva has other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an

out-licensing

platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis.

Teva’s Chief Executive Officer (“CEO”), who is the chief operating decision maker (“CODM”), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the three identified reportable segments, namely North America, Europe and International Markets, to make decisions about resources to be allocated to the segments and assess their performance.

Segment profit is comprised of gross profit for the segment less R&D expenses, S&M expenses, G&A expenses and other income related to the segment. Segment profit does not include amortization and certain other items.

Teva manages its assets on a company basis, not by segments, as many of its assets are shared or commingled. Teva’s CODM does not regularly review asset information by reportable segment and, therefore, Teva does not report asset information by reportable segment.

Teva’s CEO may review its strategy and organizational structure from time to time. Any changes in strategy may lead to a reevaluation of the Company’s segments and goodwill allocation to reporting units, as well as fair value attributable to its reporting units. See note

Segment information:


	Three months ended March 31,
	2020
	North America			Europe			International Markets
	(U.S. $ in millions)
Revenues	$	2,082		$	1,402		$	565
Gross profit		1,062			823			305
R&D expenses		146			55			15
S&M expenses		251			202			106
G&A expenses		118			66			34
Other income		(2	)		(1	)		(6	)

Segment profit	$	550		$	502		$	156


	Three months ended March 31,
	2019
	North America			Europe			International Markets *
	(U.S. $ in millions)
Revenues	$	2,047		$	1,264		$	521
Gross profit		1,039			730			269
R&D expenses		165			66			22
S&M expenses		268			215			115
G&A expenses		112			48			36
Other (income) expense		(4	)		(1	)		—

Segment profit	$	498		$	403		$	97

*	The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c for additional information.

The following table presents a reconciliation of our segment profits to our consolidated operating income (loss) and to consolidated income (loss) before income taxes for the three months ended March 31, 2020 and 2019:


	Three months ended March 31,
	2020			2019
	(U.S. $ in millions)
North America profit	$	550		$	498
Europe profit		502			403
International Markets profit		156			97

Total reportable segments profit		1,208			998
Profit of other activities		36			21

Total segments profit		1,244			1,019
Amounts not allocated to segments:
Amortization		258			283
Other assets impairments, restructuring and other items		121			1
Intangible asset impairments		649			469
Legal settlements and loss contingencies		(25	)		57
Other unallocated amounts		49			75
Consolidated operating income (loss)		191			134
Financial expenses, net		224			218
Consolidated income (loss) before income taxes	$	(33	)	$	(84	)

b. Segment revenues by major products and activities:

The following tables present revenues by major products and activities for the three months ended March 31, 2020 and 2019:


North America	Three months ended March 31,
	2020		2019
	(U.S. $ in millions)
Generic products	$	952	$	966
AJOVY		29		20
AUSTEDO		122		74
BENDEKA/TREANDA		105		122
COPAXONE		198		208
ProAir*		59		59
QVAR		45		64
Anda		426		379
Other		146		155

Total	$	2,082	$	2,047

*	Does not include revenues from the ProAir authorized generic, which are included under generic products.


Europe	Three months ended March 31,
	2020		2019
	(U.S. $ in millions)
Generic products	$	1,032	$	919
COPAXONE		109		114
Respiratory products		106		91
AJOVY		4		—
Other		151		140

Total	$	1,402	$	1,264

International markets *	Three months ended March 31,
	2020		2019
	(U.S. $ in millions)
Generic products	$	449	$	441
COPAXONE		12		13
Other		104		67

Total	$	565	$	521

*	The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c for additional information.