Other assets impairments, restructuring and other items

3 Months Ended

Mar. 31, 2023

Other assets impairments, restructuring and other items

NOTE 12 – Other assets impairments, restructuring and other items:


	Three months ended March 31,
	2023		2022

	(U.S. $ in millions)
Impairments of long-lived tangible assets (1)	$	10	$	16
Contingent consideration		20		33
Restructuring		56		57
Other		9		21

Total	$	96	$	128

(1)	Including impairments related to exit and disposal activities.

Impairments

Impairments of tangible assets for the three months ended March 31, 2023 and 2022 were $10 million and $16 million, respectively.

Teva may record additional impairments in the future, to the extent it changes its plans on any given asset and/or the assumptions underlying such plans, as a result of its network consolidation activities.

Contingent consideration

In the three months ended March 31, 2023, Teva recorded an expense of $20 million for contingent consideration, compared to an expense of $33 million in the three months ended March 31, 2022. The expense in the first three months of 2023 was mainly related to a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales and a change in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid

). The expense in the first three months of 2022 was mainly related to a change in the estimated future royalty payments in connection with lenalidomide (generic equivalent of Revlimid

Restructuring

In the three months ended March 31, 2023, Teva recorded $56 million of restructuring expenses, compared to $57 million in the three months ended March 31, 2022. The expenses for the three months ended March 31, 2023 and March 31, 2022 were primarily related to network consolidation activities.

The following tables provide the components of restructuring costs:


	Three months ended March 31,
	2023		2022

	(U.S. $ in millions)
Restructuring
Employee termination	$	23	$	52
Other		33		5

Total	$	56	$	57

The following table provides the components of and changes in the Company’s restructuring accruals:


	Employee termination costs			Other			Total

	(U.S. $ in millions)
Balance as of January 1, 2023	$	(112	)	$	(7	)	$	(119	)
Provision		(23	)		(33	)		(56	)
Utilization and other*		25			27			52

Balance as of March 31, 2023	$	(110	)	$	(13	)	$	(123	)


	Employee termination costs			Other			Total

	(U.S. $ in millions)
Balance as of January 1, 2022	$	(131	)	$	(7	)	$	(138	)
Provision		(52	)		(5	)		(57	)
Utilization and other*		59			6			65

Balance as of March 31, 2022	$	(124	)	$	(6	)	$	(130	)

*	Includes adjustments for foreign currency translation.