
	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		§		4		—		354
Other		—		§		49		137		186

	$	2,071	$	1,183	$	582	$	342	$	4,177

§ Represents an amount less than $1 million.


	Six months ended June 30, 2020
	North America		Europe		International Markets		Other activities		Total
	(U.S. $ in millions)
Sale of goods		3,283		2,370		939		388		6,981
Licensing arrangements		42		15		4		2		63
Distribution		800		2		13		—		815
Other		4		17		97		252		369

	$	4,129	$	2,404	$	1,053	$	642	$	8,227


	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		§		10		—		739
Other		—		§		97		264		362

	$	4,118	$	2,448	$	1,103	$	657	$	8,326

§ Represents an amount less than $1 million.

The financial data presented in the tables above with respect to 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.

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 accounts 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 80% of the Company’s total SR&A as of June 30, 2020, 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, 2020 and 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, 2019	$	87		$	2,895		$	1,109		$	1,342		$	637		$	176		$	6,159		$	6,246
Provisions related to sales made in current year period		193			2,588			434			4,325			216			50			7,613			7,806
Provisions related to sales made in prior periods		—			(191	)		(105	)		(15	)		18			—			(293	)		(293	)
Credits and payments		(206	)		(3,064	)		(505	)		(4,416	)		(211	)		(64	)		(8,260	)		(8,466	)
Translation differences		—			(9	)		—			(2	)		(2	)		(5	)		(18	)		(18	)

Balance at June 3 0 , 2020	$	74			2,219		$	933		$	1,234		$	658		$	157		$	5,201		$	5,275


	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			8,382			8,611
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 3 0 , 2019	$	162			2,693		$	1,170		$	1,413		$	595		$	183		$	6,054		$	6,216

Allowance for credit losses

Accounts receivable are recognized net of allowance for credit losses. Allowances for credit losses were $129 million and $135 million as of June 30, 2020 and December 31, 2019, respectively. The decrease is mainly due to currency fluctuations.