XML 36 R24.htm IDEA: XBRL DOCUMENT v3.23.1
Segments
 3 Months Ended
Mar. 31, 2023
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. Currently, Teva’s newly appointed CEO is reviewing 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 3 and note 6.
a. Segment information:
 
    
Three months ended March 31,
  
    
2023
  
    
North America
     
Europe
     
International Markets
  
                      
    
(U.S. $ in millions)
  
Revenues
    $ 1,766      $ 1,184      $ 492  
Gross profit
      812        655        262  
R&D expenses
      156        53        20  
S&M expenses
      223        187        98  
G&A expenses
      102        70        31  
Other income
      (1 )       §        (1 ) 
    
 
 
     
 
 
     
 
 
  
Segment profit
    $ 332      $ 345      $ 114  
    
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
 
    
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.
 
 
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, 2023 and 2022:
 
    
Three months ended
  
    
March 31,
  
    
2023
     
2022
  
               
    
(U.S. $ in millions)
  
North America profit
    $ 332      $ 402  
Europe profit
      345        381  
International Markets profit
      114        179  
    
 
 
     
 
 
  
Total reportable segments profit
      791        962  
Profit (loss) of other activities
      (6 )       52  
    
 
 
     
 
 
  
Total segments profit
      785        1,013  
Amounts not allocated to segments:
                  
Amortization
      165        200  
Other assets impairments, restructuring and other items
      96        128  
Intangible assets impairments
      178        149  
Legal settlements and loss contingencies
      233        1,124  
Other unallocated amounts
      112        127  
    
 
 
     
 
 
  
Consolidated operating income (loss)
      2        (713 ) 
    
 
 
     
 
 
  
Financial expenses, net
      260        258  
    
 
 
     
 
 
  
Consolidated income (loss) before income taxes
    $ (258 )     $ (971 ) 
    
 
 
     
 
 
  
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, 2023 and 2022:
 
North America   
Three months ended

March 31,
  
    
2023
     
2022
  
               
    
(U.S. $ in millions)
  
Generic products
    $ 824      $ 899  
AJOVY
      49        36  
AUSTEDO
      170        154  
BENDEKA
®
and TREANDA
®
      63        82  
COPAXONE
      76        86  
Anda
      424        342  
Other
      160        139  
    
 
 
     
 
 
  
Total
    $ 1,766      $ 1,737  
    
 
 
     
 
 
  
 
 
Europe   
Three months ended

March 31,
  
    
2023
     
2022
  
               
    
(U.S. $ in millions)
  
Generic products
    $ 932      $ 876  
AJOVY
      36        30  
COPAXONE
      59        72  
Respiratory products
      68        71  
Other
      89        107  
    
 
 
     
 
 
  
Total
    $ 1,184      $ 1,156  
    
 
 
     
 
 
  
 
International markets   
Three months ended

March 31,
  
    
2023
     
2022
  
               
    
(U.S. $ in millions)
  
Generic products
    $ 400      $ 388  
AJOVY
      10        6  
COPAXONE
      12        10  
Other
      70        88  
    
 
 
     
 
 
  
Total
    $ 492      $ 492