XML 32 R23.htm IDEA: XBRL DOCUMENT
v3.22.2

Segments | 6 Months Ended
--- | ---
Jun. 30, 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. Seg ment information:
|  | Three months ended June 30, |
|  | 2022 |
|  | North America |  |  | Europe |  |  | International Markets |
|  | (U.S. $ in millions) |
Revenues |  | $ | 1,904 |  |  | $ | 1,171 |  |  | $ | 454 |
Gross profit |  |  | 1,010 |  |  |  | 703 |  |  |  | 242 |
R&D expenses |  |  | 147 |  |  |  | 56 |  |  |  | 19 |
S&M expenses |  |  | 256 |  |  |  | 196 |  |  |  | 99 |
G&A expenses |  |  | 127 |  |  |  | 63 |  |  |  | 30 |
Other income |  |  | (1 | ) |  |  | (1 | ) |  |  | (1 | )
Segment profit |  | $ | 481 |  |  | $ | 389 |  |  | $ | 95 |
|  | Three months ended June 30, |
|  | 2021 |
|  | North America |  |  | Europe |  |  | International Markets |
|  | (U.S. $ in millions) |
Revenues |  | $ | 1,943 |  |  | $ | 1,184 |  |  | $ | 485 |
Gross profit |  |  | 1,040 |  |  |  | 661 |  |  |  | 270 |
R&D expenses |  |  | 162 |  |  |  | 63 |  |  |  | 18 |
S&M expenses |  |  | 255 |  |  |  | 209 |  |  |  | 105 |
G&A expenses |  |  | 106 |  |  |  | 47 |  |  |  | 25 |
Other income |  |  | (5 | ) |  |  | § |  |  |  | (1 | )
Segment profit |  | $ | 521 |  |  | $ | 343 |  |  | $ | 123 |
§ Represents an amount less than $0.5 million.
|  | Six months ended June 30, |
|  | 2022 |
|  | North America |  |  | Europe |  |  | International Markets |
|  | (U.S. $ in millions) |
Revenues |  | $ | 3,641 |  |  | $ | 2,327 |  |  | $ | 946 |
Gross profit |  |  | 1,899 |  |  |  | 1,397 |  |  |  | 528 |
R&D expenses |  |  | 289 |  |  |  | 114 |  |  |  | 39 |
S&M expenses |  |  | 501 |  |  |  | 393 |  |  |  | 196 |
G&A expenses |  |  | 239 |  |  |  | 122 |  |  |  | 60 |
Other income |  |  | (12 | ) |  |  | (1 | ) |  |  | (41 | )
Segment profit |  | $ | 883 |  |  | $ | 769 |  |  | $ | 274 |
|  | Six months ended June 30, |
|  | 2021 |
|  | North America |  |  | Europe |  |  | International Markets |
|  | (U.S. $ in millions) |
Revenues |  | $ | 3,932 |  |  | $ | 2,398 |  |  | $ | 975 |
Gross profit |  |  | 2,114 |  |  |  | 1,349 |  |  |  | 530 |
R&D expenses |  |  | 322 |  |  |  | 129 |  |  |  | 35 |
S&M expenses |  |  | 483 |  |  |  | 424 |  |  |  | 201 |
G&A expenses |  |  | 218 |  |  |  | 117 |  |  |  | 51 |
Other income |  |  | (7 | ) |  |  | (1 | ) |  |  | (3 | )
Segment profit |  | $ | 1,098 |  |  | $ | 680 |  |  | $ | 245 |
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 and six months ended June 30, 2022 and 2021:
|  | Three months ended June 30, |  |  | Six months ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |  |  | (U.S. $ in millions) |
North America profit |  | $ | 481 |  |  | $ | 521 |  |  | $ | 883 |  |  | $ | 1,098 |
Europe profit |  |  | 389 |  |  |  | 343 |  |  |  | 769 |  |  |  | 680 |
International Markets profit |  |  | 95 |  |  |  | 123 |  |  |  | 274 |  |  |  | 245 |
Total reportable segments profit |  |  | 964 |  |  |  | 987 |  |  |  | 1,926 |  |  |  | 2,023 |
Profit of other activities |  |  | 55 |  |  |  | 47 |  |  |  | 107 |  |  |  | 87 |
Total segments profit |  |  | 1,019 |  |  |  | 1,034 |  |  |  | 2,032 |  |  |  | 2,111 |
Amounts not allocated to segments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization |  |  | 212 |  |  |  | 173 |  |  |  | 412 |  |  |  | 414 |
Other assets impairments, restructuring and other items |  |  | 118 |  |  |  | 28 |  |  |  | 246 |  |  |  | 165 |
Goodwill impairment |  |  | 745 |  |  |  | — |  |  |  | 745 |  |  |  |  |
Intangible assets impairments |  |  | 51 |  |  |  | 195 |  |  |  | 199 |  |  |  | 274 |
Legal settlements and loss contingencies |  |  | 729 |  |  |  | 6 |  |  |  | 1,854 |  |  |  | 110 |
Other unallocated amounts |  |  | 113 |  |  |  | 50 |  |  |  | 240 |  |  |  | 132 |
Consolidated operating income (loss) |  |  | (949 | ) |  |  | 582 |  |  |  | (1,662 | ) |  |  | 1,015 |
Financial expenses, net |  |  | 211 |  |  |  | 274 |  |  |  | 468 |  |  |  | 564 |
Consolidated income (loss) before income taxes |  | $ | (1,160 | ) |  | $ | 308 |  |  | $ | (2,131 | ) |  | $ | 451 |
b. Segment revenues by major products and activities: The following tables present revenues by major products and activities for the three and six months ended June 30, 2022 and 2021:
North America |  | Three months ended June 30, |
|  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 1,026 |  |  | $ | 951 |
AJOVY |  |  | 49 |  |  |  | 46 |
AUSTEDO |  |  | 204 |  |  |  | 174 |
BENDEKA®/TREANDA® |  |  | 83 |  |  |  | 106 |
COPAXONE |  |  | 94 |  |  |  | 152 |
Anda |  |  | 308 |  |  |  | 316 |
Other |  |  | 139 |  |  |  | 199 |
Total |  | $ | 1,904 |  |  | $ | 1,943 |
North America |  | Six months ended June 30, |
|  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 1,925 |  |  | $ | 2,004 |
AJOVY |  |  | 86 |  |  |  | 77 |
AUSTEDO |  |  | 358 |  |  |  | 320 |
BENDEKA/TREANDA |  |  | 165 |  |  |  | 197 |
COPAXONE |  |  | 180 |  |  |  | 315 |
Anda |  |  | 650 |  |  |  | 605 |
Other |  |  | 278 |  |  |  | 414 |
Total |  | $ | 3,641 |  |  | $ | 3,932 |
Europe |  | Three months ended June 30, |
|  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 873 |  |  | $ | 878 |
AJOVY |  |  | 29 |  |  |  | 19 |
COPAXONE |  |  | 72 |  |  |  | 100 |
Respiratory products |  |  | 65 |  |  |  | 85 |
Other |  |  | 131 |  |  |  | 102 |
Total |  | $ | 1,171 |  |  | $ | 1,184 |
Europe |  | Six months ended June 30, |
|  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 1,749 |  |  | $ | 1,742 |
AJOVY |  |  | 60 |  |  |  | 35 |
COPAXONE |  |  | 144 |  |  |  | 201 |
Respiratory products |  |  | 137 |  |  |  | 179 |
Other |  |  | 238 |  |  |  | 242 |
Total |  | $ | 2,327 |  |  | $ | 2,398 |
International markets |  | Three months ended June 30, |
|  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 394 |  |  | $ | 407 |
AJOVY |  |  | 10 |  |  |  | 5 |
COPAXONE |  |  | 9 |  |  |  | 7 |
Other |  |  | 40 |  |  |  | 65 |
Total |  | $ | 454 |  |  | $ | 485 |
International markets |  | Six months ended June 30, |
|  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 782 |  |  | $ | 799 |
AJOVY |  |  | 16 |  |  |  | 7 |
COPAXONE |  |  | 20 |  |  |  | 19 |
Other |  |  | 128 |  |  |  | 150 |
Total |  | $ | 946 |  |  | $ | 975 |

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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration