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Revenue from contracts with customers
 12 Months Ended
Dec. 31, 2020
Revenue from contracts with customers
NOTE 3—Revenue from contracts with customers:
Disaggregation of revenue
The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 19.
 
 
  
Year ended December 31, 2020
 
 
  
North
 America
 
  
Europe
 
 
International
Markets
 
  
Other
 activities
 
  
Total
 
 
  
(U.S.$ in millions)
 
Sale of goods
  
 
6,902
 
  
 
4,736
 
 
 
1,946
 
  
 
772
 
  
 
14,354
 
Licensing arrangements
  
 
84
 
  
 
32
 
 
 
9
 
  
 
4
 
  
 
129
 
Distribution
  
 
1,462
 
  
 
3
 
 
 
30
 
  
 
—  
 
  
 
1,495
 
Other
  
  
§
 
  
 
(14
) 
 
 
169
 
  
 
527
 
  
 
680
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
  
$
8,447
 
  
$
4,757
 
 
$
2,154
 
  
$
1,302
 
  
$
16,659
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
    
Year ended December 31, 2019
  
    
North
 America
     
Europe
    
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      6,941        4,770       2,045        754        14,510  
Licensing arrangements
      109        29       4        5        147  
Distribution
      1,492        2       20        —          1,514  
Other
     
§
        (6 )      177        545        716  
    
 
 
     
 
 
    
 
 
     
 
 
     
 
 
  
     $ 8,542      $ 4,795     $ 2,246      $ 1,304      $ 16,887  
    
 
 
     
 
 
    
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31, 2018
  
    
North
 America
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      7,838        5,153       2,151        739        15,881  
Licensing arrangements
      111        23       22        9        165  
Distribution
      1,347        7       19        —          1,373  
Other
      1        3       230        618        852  
    
 
 
     
 
 
    
 
 
     
 
 
     
 
 
  
     $ 9,297      $ 5,186     $ 2,422      $ 1,366      $ 18,271  
    
 
 
     
 
 
    
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $1 million.
Variable consideration
Variable consideration mainly includes 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. For description of the nature of each deduction and how provisions are estimated see note 1.
SR&A to U.S. customers comprised approximately 79% of the Company’s total SR&A as of December 31, 2020, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the period ended December 31, 2019 and 2020 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
Sales
Reserves
and
Allowances
    
Total
  
    
(U.S.$ in millions)
  
Balance at January 1, 2019
    $ 175       3,006     $ 1,361     $ 1,530     $ 638     $ 176     $ 6,711     $ 6,886  
Provisions related to sales made in current year period
      383       5,552       976       9,565       281       394       16,767     $ 17,150  
Provisions related to sales made in prior periods
      —       (92 )      (151 )     
(17
 )      77       (6 )      (189 )    $ (189 ) 
Credits and payments
      (471 )      (5,570 )      (1,076 )      (9,736 )      (360 )      (392 )      (17,134 )    $ (17,605 ) 
Translation differences
      —         (1 )      (1 )      1       1       4       4     $ 4  
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
      391       4,703       744       8,438       459       71       14,415     $ 14,806  
Provisions related to sales made in prior periods
      —         (219 )      (184 )      (65 )      (28 )      (1 )      (497 )    $ (497 ) 
Credits and payments
      (398 )      (5,360 )      (849 )      (8,614 )      (386 )      (100 )      (15,309 )    $ (15,707 ) 
Translation differences
      —         35       8       7       4       2       56     $ 56  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2020
    $ 80       2,054     $ 828     $ 1,108     $ 686     $ 148     $ 4,824     $ 4,904