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Segments
 3 Months Ended
Mar. 31, 2022
Segments
NOTE 15 – 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, 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 from time to time. 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 3 and note 6.
a. Segment information:

 
  
Three months ended March 31,
 
 
  
2022
 
 
  
North America
 
  
Europe
 
  
International Markets
 
 
  
(U.S. $ in millions)
 
Revenues
    $ 1,737      $ 1,156      $ 492  
Gross profit
      890        694        286  
R&D expenses
      143        58        20  
S&M expenses
      245        196        97  
G&A expenses
      112        59        29  
Other income
      (11 )    
 
§
        (40 ) 
    
 
 
     
 
 
     
 
 
  
Segment profit
    $ 402      $ 381      $ 179  
    
 
 
     
 
 
     
 
 
  
 
§ Represents an amount less than $0.5 million.
 
 
  
Three months ended March 31,
 
 
  
2021
 
 
  
North America
 
  
Europe
 
  
International Markets
 
 
  
(U.S. $ in millions)
 
Revenues
    $ 1,989      $ 1,214      $ 490  
Gross profit
      1,074        688        260  
R&D expenses
      160        66        18  
S&M expenses
      229        214        96  
G&A expenses
      111        70        26  
Other income
      (3 )    
 
§
        (2 ) 
    
 
 
     
 
 
     
 
 
  
Segment profit
    $ 577      $ 338      $ 122  
    
 
 
     
 
 
     
 
 
  
 
§ Represents an amount less than $0.5 million.

The following table presents a reconciliation of Teva’s segment profits to its consolidated operating income (loss) and to consolidated income (loss) before income taxes for the three months ended March 31, 2022 and 2021:
 
    
Three months ended
  
    
March 31,
  
    
2022
     
2021
  
    
(U.S. $ in millions)
  
North America profit
    $ 402      $ 577  
Europe profit
      381        338  
International Markets profit
      179        122  
    
 
 
     
 
 
  
Total reportable segments profit
      962        1,036  
Profit of other activities
      52        41  
    
 
 
     
 
 
  
Total segments profit
      1,013        1,077  
Amounts not allocated to segments:
                  
Amortization
      200        242  
 
Other assets impairments, restructuring and other items
      128        137  
Intangible asset
s
impairments
      149        79  
Legal settlements and loss contingencies
      1,124        104  
Other unallocated amounts
      127        82  
    
 
 
     
 
 
  
Consolidated operating income (loss)
      (713 )      434  
    
 
 
     
 
 
  
Financial expenses, net
      258        290  
    
 
 
     
 
 
  
Consolidated income (loss) before income taxes
   
$
 (971
)
   
$
 144  
    
 
 
     
 
 
  
b. Segment revenues by major products and activities:
The following tables present revenues by major products and activities for the three months ended March 31, 2022 and 2021: 
 
North America
  
Three months ended

March 31,
 
 
  
2022
 
  
2021
 
 
  
(U.S. $ in millions)
 
Generic products
    $ 899      $ 1,053  
AJOVY
      36        31  
AUSTEDO
      154        146  
BENDEKA
®
/TREANDA
®
      82        91  
COPAXONE
      86        164  
Anda
      342        289  
Other
      139        215  
    
 
 
     
 
 
  
Total
    $ 1,737      $ 1,989  
    
 
 
     
 
 
  
 
Europe
  
Three months ended

March 31,
 
 
  
2022
 
  
2021
 
 
  
(U.S. $ in millions)
 
Generic products
    $ 876      $ 865  
AJOVY
      30        16  
COPAXONE
      72        100  
Respiratory products
      71        93  
Other
      107        140  
    
 
 
     
 
 
  
Total
    $ 1,156      $ 1,214
 
    
 
 
     
 
 
  
International markets
  
Three months ended

March 31,
 
 
  
2022
 
  
2021
 
 
  
(U.S. $ in millions)
 
Generic products
    $ 388      $ 392  
AJOVY
      6        1  
COPAXONE
      10        12  
Other
      88        85  
    
 
 
     
 
 
  
Total
   
$
 492     
$
 490