XML 45 R27.htm IDEA: XBRL DOCUMENT v3.22.0.1
Segments
 12 Months Ended
Dec. 31, 2021
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, the United Kingdom 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,
  
    
2021
  
    
North America
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,809      $ 4,886      $ 2,032  
Gross profit
      4,226        2,823        1,118  
R&D expenses
      618        244        68  
S&M expenses
      988        846        417  
G&A expenses
      427        244        109  
Other income
      (31 )       (5 )       (5 ) 
    
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,224      $ 1,494      $ 529  
    
 
 
     
 
 
     
 
 
  
 
    
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,
  
    
2021
     
2020
    
2019
  
    
(U.S. $ in millions)
  
North America profit
    $ 2,224      $ 2,421     $ 2,252  
Europe profit
      1,494        1,331       1,318  
International Markets profit
      529        474       464  
    
 
 
     
 
 
    
 
 
  
Total reportable segments profit
      4,246        4,225       4,034  
Profit of other activities
      154        163       108  
    
 
 
     
 
 
    
 
 
  
Total segments profit
      4,401        4,388       4,142  
Amounts not allocated to segments:
                          
Amortization
      802        1,020       1,113  
Other assets impairments, restructuring and other items
      341        479       423  
Goodwill impairment
      —          4,628       —    
Intangible asset impairments
      424        1,502       1,639  
Legal settlements and loss contingencies
      717        60       1,178  
Other unallocated amounts
      402        271       232  
Consolidated operating income (loss)
      1,716        (3,572 )      (443 ) 
    
 
 
     
 
 
    
 
 
  
Financial expenses, net
      1,058        834       822  
    
 
 
     
 
 
    
 
 
  
Consolidated income (loss) before income taxes
    $ 658      $ (4,406 )    $ (1,265 ) 
    
 
 
     
 
 
    
 
 
  
 
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, 2021, 2020 and 2019:
North America segment:
 
    
Year ended December 31,
  
    
2021
     
2020
     
2019
  
    
(U.S. $ in millions)
  
Generic products
    $ 3,769      $ 4,010      $ 3,963  
AJOVY
      176        134        93  
AUSTEDO
      802        637        412  
BENDEKA/TREANDA
      385        415        496  
COPAXONE
      577        884        1,017  
ProAir*
      180        241        274  
Anda
      1,323        1,462        1,492  
Other
      597        664        796  
    
 
 
     
 
 
     
 
 
  
Total
    $ 7,809      $ 8,447      $ 8,542  
    
 
 
     
 
 
     
 
 
  
 
*
Does not include revenues from the ProAir authorized generic, which are included under generic products.
Europe segment:
 
    
Year ended December 31,
  
    
2021
     
2020
     
2019
  
    
(U.S. $ in millions)
  
Generic products
    $ 3,569      $ 3,513      $ 3,470  
AJOVY
      87        31        3  
COPAXONE
      391        400        432  
Respiratory products
      356        353        354  
Other
      483        459        536  
    
 
 
     
 
 
     
 
 
  
Total
    $ 4,886      $ 4,757      $ 4,795  
    
 
 
     
 
 
     
 
 
  
International Markets segment:
 
    
Year ended December 31,
  
    
2021
     
2020
     
2019
  
    
(U.S. $ in millions)
  
Generic products
    $ 1,649      $ 1,792      $ 1,893  
AJOVY
      50        18        §  
COPAXONE
      37        53        63  
Other
      295        291        291  
    
 
 
     
 
 
     
 
 
  
Total
    $ 2,032      $ 2,154      $ 2,246  
    
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $1
million
.
 
Revenues are attributable to countries based on sales to third parties in such countries. Revenues within the United States constituted 46%, 48% and 47% of Teva’s consolidated revenues for the years ended December 31, 2021, 2020 and 2019, respectively. Revenues within the Company’s country of domicile (Israel) constituted 2%, 2% and 2% of Teva’s consolidated revenues for the years ended December 31, 2021, 2020 and 2019, 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, 2021, 2020 and 2019.
 
    
Percentage of Third Party Net Sales
  
    
2021
    
2020
    
2019
  
McKesson Corporation
      11 %      12 %      13 % 
AmerisourceBergen Corporation
      11 %      12 %      12 % 
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,
  
    
2021
     
2020
  
    
(U.S. $ in millions)
  
Israel
    $ 1,543      $ 1,611  
United States
      692        790  
Croatia
      481        539  
Germany
      1,045        933  
Czech republic
      324        330  
Hungary
      321        325  
Ireland
      269        267  
Other
      1,307        1,501  
    
 
 
     
 
 
  
Total property, plant and equipment
    $ 5,982      $ 6,296