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v3.20.4

Segments | 12 Months Ended
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Dec. 31, 2020
Segments | NOTE 19—Segments: Teva operates its business and reports its financial results in three segments:
| (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 included in other activities, 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. 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 7.
a. | Segment information:
|  | Year ended December 31, |
|  | 2020 |
|  | North America |  |  | Europe |  |  | International Markets |
|  | (U.S. $ in millions) |
Revenues |  | $ | 8,447 |  |  | $ | 4,757 |  |  | $ | 2,154 |
Gross profit |  |  | 4,489 |  |  |  | 2,666 |  |  |  | 1,096 |
R&D expenses |  |  | 622 |  |  |  | 247 |  |  |  | 70 |
S&M expenses |  |  | 1,013 |  |  |  | 830 |  |  |  | 427 |
G&A expenses |  |  | 443 |  |  |  | 261 |  |  |  | 136 |
Other income |  |  | (10 | ) |  |  | (3 | ) |  |  | (11 | )
Segment profit |  | $ | 2,421 |  |  | $ | 1,331 |  |  | $ | 474 |
|  | Year ended December 31, |
|  | 2019 |
|  | North America |  |  | Europe |  |  | International Markets |
|  | (U.S. $ in millions) |
Revenues |  | $ | 8,542 |  |  | $ | 4,795 |  |  | $ | 2,246 |
Gross profit |  |  | 4,350 |  |  |  | 2,704 |  |  |  | 1,167 |
R&D expenses |  |  | 652 |  |  |  | 262 |  |  |  | 88 |
S&M expenses |  |  | 1,021 |  |  |  | 890 |  |  |  | 481 |
G&A expenses |  |  | 439 |  |  |  | 239 |  |  |  | 138 |
Other income |  |  | (14 | ) |  |  | (5 | ) |  |  | (3 | )
Segment profit |  | $ | 2,252 |  |  | $ | 1,318 |  |  | $ | 464 |
|  | Year ended December 31, |
|  | 2018 |
|  | North America |  |  | Europe |  |  | International Markets |
|  | (U.S. $ in millions) |
Revenues |  | $ | 9,297 |  |  | $ | 5,186 |  |  | $ | 2,422 |
Gross profit |  |  | 4,979 |  |  |  | 2,884 |  |  |  | 1,254 |
R&D expenses |  |  | 713 |  |  |  | 283 |  |  |  | 96 |
S&M expenses |  |  | 1,154 |  |  |  | 1,003 |  |  |  | 518 |
G&A expenses |  |  | 484 |  |  |  | 325 |  |  |  | 153 |
Other income |  |  | (209 | ) |  |  | — |  |  |  | (11 | )
Segment profit |  | $ | 2,837 |  |  | $ | 1,273 |  |  | $ | 498 |
|  | Year ended |
|  | December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (U.S.$ in millions) |
North America profit |  | $ | 2,421 |  |  | $ | 2,252 |  |  | $ | 2,837 |
Europe profit |  |  | 1,331 |  |  |  | 1,318 |  |  |  | 1,273 |
International Markets profit |  |  | 474 |  |  |  | 464 |  |  |  | 498 |
Total reportable segments profit |  |  | 4,225 |  |  |  | 4,034 |  |  |  | 4,608 |
Profit (loss) of other activities |  |  | 163 |  |  |  | 108 |  |  |  | 115 |
Total segments profit |  |  | 4,388 |  |  |  | 4,142 |  |  |  | 4,723 |
Amounts not allocated to segments: |  |  |  |  |  |  |  |  |  |  |  |
Amortization |  |  | 1,020 |  |  |  | 1,113 |  |  |  | 1,166 |
Other asset impairments, restructuring and other items |  |  | 479 |  |  |  | 423 |  |  |  | 987 |
Goodwill impairment |  |  | 4,628 |  |  |  | — |  |  |  | 3,027 |
Intangible asset impairments |  |  | 1,502 |  |  |  | 1,639 |  |  |  | 1,991 |
Gain on divestitures, net of divestitures related costs |  |  | (8 | ) |  |  | (50 | ) |  |  | (66 | )
Other R&D expenses (income) |  |  | 37 |  |  |  | (15 | ) |  |  | 83 |
Costs related to regulatory actions taken in facilities |  |  | 23 |  |  |  | 45 |  |  |  | 14 |
Legal settlements and loss contingencies |  |  | 60 |  |  |  | 1,178 |  |  |  | (1,208 | )
Other unallocated amounts |  |  | 219 |  |  |  | 252 |  |  |  | 366 |
Consolidated operating income (loss) |  |  | (3,572 | ) |  |  | (443 | ) |  |  | (1,637 | )
Financial expenses, net |  |  | 834 |  |  |  | 822 |  |  |  | 959 |
Consolidated income (loss) before income taxes |  | $ | (4,406 | ) |  | $ | (1,265 | ) |  | $ | (2,596 | )
b. | Segment revenues by major products and activities:
The following tables present revenues by major products and activities for each segment for the year ended December 31, 2020, 2019 and 2018: North America segment:
|  |  | Year ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 4,010 |  |  | $ | 3,963 |  |  | $ | 4,056 |
AJOVY |  |  | 134 |  |  |  | 93 |  |  |  | 3 |
AUSTEDO |  |  | 637 |  |  |  | 412 |  |  |  | 204 |
BENDEKA/TREANDA |  |  | 415 |  |  |  | 496 |  |  |  | 642 |
COPAXONE |  |  | 884 |  |  |  | 1,017 |  |  |  | 1,759 |
ProAir* |  |  | 241 |  |  |  | 274 |  |  |  | 397 |
QVAR |  |  | 179 |  |  |  | 250 |  |  |  | 182 |
Anda |  |  | 1,462 |  |  |  | 1,492 |  |  |  | 1,347 |
Other |  |  | 485 |  |  |  | 546 |  |  |  | 708 |
Total |  | $ | 8,447 |  |  | $ | 8,542 |  |  | $ | 9,297 |
* | Does not include revenues from the ProAir authorized generic, which are included under generic products.
Europe segment:
|  | Year ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 3,513 |  |  | $ | 3,470 |  |  | $ | 3,593 |
AJOVY |  |  | 31 |  |  |  | 3 |  |  |  | — |
COPAXONE |  |  | 400 |  |  |  | 432 |  |  |  | 535 |
Respiratory products |  |  | 353 |  |  |  | 354 |  |  |  | 402 |
Other |  |  | 459 |  |  |  | 536 |  |  |  | 656 |
Total |  | $ | 4,757 |  |  | $ | 4,795 |  |  | $ | 5,186 |
International Markets segment:
|  | Year ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 1,792 |  |  | $ | 1,893 |  |  | $ | 2,022 |
COPAXONE |  |  | 53 |  |  |  | 63 |  |  |  | 72 |
Other |  |  | 309 |  |  |  | 291 |  |  |  | 328 |
Total |  | $ | 2,154 |  |  | $ | 2,246 |  |  | $ | 2,422 |
Teva revenues from external customers attributed to Israel were less than 5% of the consolidated revenues in the years ended December 31, 2020, 2019 and 2018, respectively.
c. | Supplemental data—major customers:
The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2020, 2019 and 2018.
|  | Percentage of Third Party Net Sales |
|  | 2020 |  |  | 2019 |  |  | 2018 |
McKesson Corporation |  |  | 12 | % |  |  | 13 | % |  |  | 12 | %
AmerisourceBergen Corporation |  |  | 12 | % |  |  | 12 | % |  |  | 14 | %
Most of Teva’s revenues from these customers were in the North America segment.
d. | Property, plant and equipment—by geographical location were as follows:
|  | December 31, |
|  | 2020 |  |  | 2019 |
|  | (U.S. $ in millions) |
Israel |  | $ | 1,611 |  |  | $ | 1,670 |
United States |  |  | 790 |  |  |  | 864 |
Croatia |  |  | 539 |  |  |  | 517 |
Germany |  |  | 933 |  |  |  | 665 |
Czech republic |  |  | 330 |  |  |  | 343 |
Hungary |  |  | 325 |  |  |  | 330 |
Ireland |  |  | 267 |  |  |  | 271 |
Other |  |  | 1,501 |  |  |  | 1,776 |
Total property, plant and equipment |  | $ | 6,296 |  |  | $ | 6,436 |

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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