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Revenue from contracts with customers
 12 Months Ended
Dec. 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 19.
 
    
Year ended December 31, 2022
  
    
North 
America
     
Europe
     
International
Markets
     
Other 
activities
     
Total
  
                                              
    
(U.S.$ in millions)
  
Sale of goods
      5,834        4,455        1,806        671        12,766  
Licensing arrangements
      139        51        19        4        212  
Distribution
      1,471        1        46        —          1,519  
Other
      8        18        33        370        428  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
     $ 7,452      $ 4,525      $ 1,903      $ 1,045      $ 14,925  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31, 2021
  
    
North 
America
    
Europe
     
International
Markets
     
Other 
activities
     
Total
  
                                             
    
(U.S.$ in millions)
  
Sale of goods
      6,394       4,807        1,889        739        13,829  
Licensing arrangements
      92       50        13        4        160  
Distribution
      1,323       1        65        —          1,390  
Other
      (1 )      27        65        408        500  
    
 
 
    
 
 
     
 
 
     
 
 
     
 
 
  
     $ 7,809     $ 4,886      $ 2,032      $ 1,151      $ 15,878  
    
 
 
    
 
 
     
 
 
     
 
 
     
 
 
  
 
    
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  
    
 
 
     
 
 
    
 
 
     
 
 
     
 
 
  
 
§
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
t
he 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 71% of the Company’s total SR&A as of December 3
1,
2022, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the period ended December 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

Sales

Reserves

and
Allowances
 
 
Total
 
 
 
(U.S.$ in millions)
 
Balance at January 1, 2022
   
$
 68
 
  
 $ 1,655
 
  
 $ 854
 
  
 $ 1,085
 
  
 $ 535
 
  
 $ 112
 
  
 $ 4,241
 
  
$
 4,309  
Provisions related to sales made in current
 
year
 
period
   
 
  
363
 
  
 
3,823
 
 
  
 
  
871
 
  
 
 7,819
 
  
 
 
317
 
  
 
85
 
  
 
 12,915
 
  
 
 13,278  
Provisions related to sales made in prior
 
periods
   
 
 
—
 
  
 
 
(69
)
  
 
(35
)
  
 
(44
)
  
 
(3
)
  
 
 (51 ) 
  
 
 (202
)
  
 
 (202 )
Credits and payments
   
 
 
(364
)
  
 
 
 (3,798
)
  
 
(1,023
)
  
 
(7,861
)
  
 
 
(390
)
  
 
 (77 ) 
  
 
 (13,149
)
  
 
 (13,513 )
Translation differences
   
 
 
— 
 
  
 
 
(36
)
  
 
(4
)
  
 
(8
)
  
 
(4
)
  
 
 (3 ) 
  
 
 (55
)
  
 
 (55 )
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Balance at December 31, 2022
    $ 67      $ 1,575      $ 663      $ 991      $ 455      $ 66      $ 3,750      $ 3,817  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  

 
 
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, 2021
    $ 80     $ 2,054     $ 828     $ 1,108     $ 686     $ 148     $ 4,824     $ 4,904  
Provisions related to sales made in current year period
      382       4,030       852       7,967       263       314       13,426       13,808  
Provisions related to sales made in prior periods
      (9 )      (125 )      (51 )      (47 )      (60 )      (26 )      (309 )      (318 ) 
Credits and payments
      (385 )      (4,275 )      (768 )      (7,937 )      (350 )      (321 )      (13,651 )      (14,036 ) 
Translation differences
      —         (29 )      (7 )      (6 )      (4 )      (3 )      (49 )      (49 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2021
    $ 68     $ 1,655     $ 854     $ 1,085     $ 535     $ 112     $ 4,241     $ 4,309  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Allowance for credit losses
Accounts receivable
s
are recognized net of allowance for credit losses. Allowances for credit losses were $91 million and $90 million as of December 31, 2022 and December 31, 2021, respectively.

Pledged accounts receivables
Accounts receivables, net of allowance for credit losses, include an amount of $436 million which is pledged to PNC Bank, National Association in connection with the U.S. securitization program entered into in November 2022. See note 10f.