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Segments
 12 Months Ended
Dec. 31, 2022
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,
 
 
  
2022
 
 
  
North America
 
  
Europe
 
  
International Markets
 
 
  
(U.S. $ in millions)
 
Revenues
    $ 7,452      $ 4,525      $ 1,903  
Gross profit
      3,926        2,700        1,033  
R&D expenses
      532        213        72  
S&M expenses
      941        748        405  
G&A expenses
      474        246        119  
Other income
      (15 )       (3 )       (43 ) 
    
 
 
     
 
 
     
 
 
  
Segment profit
    $ 1,993      $ 1,496      $ 479  
    
 
 
     
 
 
     
 
 
  
 
  
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,
 
 
  
2022
 
 
2021
 
  
2020
 
 
  
(U.S. $ in millions)
 
North America profit
    $ 1,993      $ 2,224      $ 2,421  
Europe profit
      1,496        1,494        1,331  
International Markets profit
      479        529        474  
    
 
 
     
 
 
     
 
 
  
Total reportable segments profit
      3,968        4,246        4,225  
Profit of other activities
      172        154        163  
    
 
 
     
 
 
     
 
 
  
Total segments profit
      4,140        4,401        4,388  
Amounts not allocated to segments:
                           
Amortization
      732        802        1,020  
Other assets impairments, restructuring and other items
      414        341        479  
Goodwill impairment
      2,045        —          4,628  
Intangible asset impairments
      355        424        1,502  
Legal settlements and loss contingencies
      2,082        717        60  
Other unallocated amounts
      610        402        271  
Consolidated operating income (loss)
      (2,099 )       1,716        (3,572 ) 
    
 
 
     
 
 
     
 
 
  
Financial expenses, net
      966        1,058        834  
    
 
 
     
 
 
     
 
 
  
Consolidated income (loss) before income taxes
    $ (3,065 )     $ 658      $ (4,406 ) 
    
 
 
     
 
 
     
 
 
  
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, 2022, 2021 and 2020:
North America segment:
 
 
  
Year ended December 31,
 
 
  
2022
 
  
2021
 
  
2020
 
 
  
(U.S. $ in millions)
 
Generic products
    $ 3,549      $ 3,769     
$
 4,010  
AJOVY
      218        176        134  
AUSTEDO
      963        802        637  
BENDEKA and TREANDA
      316        385        415  
COPAXONE
      387        577        884  
Anda
      1,471        1,323        1,462  
Other
      549        777        905  
    
 
 
     
 
 
     
 
 
  
Total
    $ 7,452      $ 7,809     
$
 8,447  
    
 
 
     
 
 
     
 
 
  
Europe segment:
 
 
  
Year ended December 31,
 
 
  
2022
 
  
2021
 
  
2020
 
 
  
(U.S. $ in millions)
 
Generic products
    $ 3,466      $ 3,569     
$
 3,513  
AJOVY
      124        87        31  
COPAXONE
      268        391        400  
Respiratory products
      273        356        353  
Other
      393        483        459  
    
 
 
     
 
 
     
 
 
  
Total
    $ 4,525      $ 4,886     
$
 4,757  
    
 
 
     
 
 
     
 
 
  
International Markets segment:
 
 
  
Year ended December 31,
 
 
  
2022
 
  
2021
 
  
2020
 
 
  
(U.S. $ in millions)
 
Generic products
    $ 1,586      $ 1,649      $ 1,792  
AJOVY
      35        50        18  
COPAXONE
      36        37        53  
Other
      246        295        291  
    
 
 
     
 
 
     
 
 
  
Total
    $ 1,903      $ 2,032      $ 2,154  
    
 
 
     
 
 
     
 
 
  
Revenues are attributable to countries based on sales to third parties in such countries. Revenues within the United States constituted 47%, 46% and 48% of Teva’s consolidated revenues for the years ended December 31, 2022, 2021 and 2020, 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, 2022, 2021 and 2020, 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, 2022, 2021 and
2020.
 
 
  
Percentage of Third Party Net Sales
 
 
  
2022
 
 
2021
 
 
2020
 
McKesson Corporation
      10 %      11 %      12 % 
AmerisourceBergen Corporation
      10 %      11 %      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,
 
 
  
2022
 
  
2021
 
 
  
(U.S. $ in millions)
 
Israel
    $ 1,401      $ 1,543  
Germany
      1,143        1,045  
United States
      625        692  
Croatia
      445        481  
Czech republic
      318        324  
Hungary
      294        321  
Ireland
      268        269  
Other
      1,245        1,307  
    
 
 
     
 
 
  
Total property, plant and equipment
    $ 5,739      $ 5,982