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Revenue from contracts with customers
 3 Months Ended
Mar. 31, 2022
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 15.
 
    
Three months ended March 31, 2022
  
    
North
America
    
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S. $ in millions)
  
Sale of goods
      1,377       1,134        445        180        3,136  
Licensing arrangements
      21       12        4        1        38  
Distribution
      342    
 
§
        16        —          358  
Other
      (2 )      9        27        95        129  
    
 
 
    
 
 
     
 
 
     
 
 
     
 
 
  
     $ 1,737     $ 1,156      $ 492      $ 275      $ 3,661  
    
 
 
    
 
 
     
 
 
     
 
 
     
 
 
  
 
 
§ Represents an amount less than $0.5 million.
 
    
Three months ended March 31, 2021
  
    
North
America
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S. $ in millions)
  
Sale of goods
      1,668        1,178        440        177        3,463  
Licensing arrangements
      32        14        3        1        49  
Distribution
      289     
 
§
        19        —          308  
Other
   
 
§
        22        28        111        162  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
     $ 1,989      $ 1,214      $ 490      $ 289      $ 3,982  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
 
§ Represents an amount less than $0.5 million.
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 73% of the Company’s total SR&A as of March 31, 2022, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the three months ended March 31, 2022 and 2021 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, 2021
  
$
68
 
 
$
1,655
 
 
$
854
 
 
$
1,085
 
 
$
535
 
 
$
112
 
 
$
4,241
 
 
$
4,309
 
Provisions related to sales made in current year
  
 
82
 
 
 
928
 
 
 
198
 
 
 
1,814
 
 
 
58
 
 
 
90
 
 
 
3,088
 
 
 
3,170
 
Provisions related to sales made in prior periods
  
 
—  
 
 
 
(90
) 
 
 
26
 
 
 
(8
) 
 
 
(14
) 
 
 
(1
) 
 
 
(87
) 
 
 
(87
) 
Credits and payments
  
 
(88
) 
 
 
(1,037
) 
 
 
(270
) 
 
 
(1,940
) 
 
 
(110
) 
 
 
(73
) 
 
 
(3,430
) 
 
 
(3,518
) 
Translation differences
  
 
—  
 
 
 
(3
) 
 
 
(1
) 
 
 
—  
 
 
 
—  
 
 
 
(1
) 
 
 
(5
) 
 
 
(5
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2022
  
$
62
 
 
 
1,453
 
 
$
807
 
 
$
951
 
 
$
469
 
 
$
127
 
 
$
3,807
 
 
$
3,869
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
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, 2020
  
$
80
 
 
$
2,054
 
 
$
828
 
 
$
1,108
 
 
$
686
 
 
$
148
 
 
$
4,824
 
 
$
4,904
 
Provisions related to sales made in current year
  
 
100
 
 
 
1,126
 
 
 
164
 
 
 
2,043
 
 
 
76
 
 
 
23
 
 
 
3,432
 
 
 
3,532
 
Provisions related to sales made in prior periods
  
 
—  
 
 
 
(55
) 
 
 
(11
) 
 
 
6
 
 
 
(40
) 
 
 
(17
) 
 
 
(117
) 
 
 
(117
) 
Credits and payments
  
 
(102
) 
 
 
(1,210
) 
 
 
(188
) 
 
 
(1,987
) 
 
 
(101
) 
 
 
(40
) 
 
 
(3,526
) 
 
 
(3,628
) 
Translation differences
  
 
—  
 
 
 
(17
) 
 
 
(4
) 
 
 
(3
) 
 
 
(3
) 
 
 
(2
) 
 
 
(29
) 
 
 
(29
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2021
  
$
78
 
 
$
1,898
 
 
$
789
 
 
$
1,167
 
 
$
618
 
 
$
112
 
 
$
4,584
 
 
$
4,662