Other assets impairments, restructuring and other items

6 Months Ended

Jun. 30, 2023

Other assets impairments, restructuring and other items

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


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	(U.S. $ in millions)				(U.S. $ in millions)
Impairments of long-lived tangible assets (1)	$	11	$	14	$	21	$	30
Contingent consideration		70		61		90		94
Restructuring		10		35		66		92
Other		9		8		19		30

Total	$	100	$	118	$	195	$	246

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

Impairments

Impairments of tangible assets for the

ree mo

nths

ended June 30, 2023 and 2022 were $11 million and $14 million, respectively.

Impairments of tangible assets for the six months ended June 30, 2023 and 2022 were $21 million and $30 million, respectively. The

impairments

for the six months ended June 30, 2023

were

mainly related to certain assets in North America and Europe. The

impairments

for the six months ended June 30, 2022

were

mainly related to certain assets in North America.

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

ongoing

network consolidation activities.

Contingent consideration

In the three months ended June 30, 2023, Teva recorded an expense of $70 million for contingent consideration, compared to an expense of $61 million in the three months ended June 30, 2022. The expense in the second quarter of 2023 and 2022 was mainly related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid

In the six months ended June 30, 2023, Teva recorded an expense of $90 million for contingent consideration, compared to an expense of $94 million in the six months ended June 30, 2022. The expense in the first six 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 six months of 2022 was mainly related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid

Restructuring

In the three months ended June 30, 2023, Teva recorded $10 million of restructuring expenses, compared to $35 million in the three months ended June 30, 2022. The expenses for the three months ended June 30, 2023 and

2022 were primarily related to network consolidation activities.

In the six months ended June 30, 2023, Teva recorded $66 million of restructuring expenses, compared to $92 million in the six months ended June 30, 2022. The expenses for the six months ended June 30, 2023 and 2022 were primarily related to network consolidation activities.

The following tables provide the components of the Company’s restructuring costs:



	Three months ended June 30,
	2023		2022

	(U.S. $ in millions)
Restructuring
Employee termination	$	1	$	11
Other		9		24

Total	$	10	$	35


	Six months ended June 30,
	2023		2022

	(U.S. $ in millions)
Restructuring
Employee termination	$	24	$	63
Other		42		29

Total	$	66	$	92

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		(24	)		(42	)		(66	)
Utilization and other*		60			42			102

Balance as of June 30, 2023	$	(76	)	$	(7	)	$	(83	)


	Employee termination costs			Other			Total

	(U.S. $ in millions)
Balance as of January 1, 2022	$	(131	)	$	(7	)	$	(138	)
Provision		(63	)		(29	)		(92	)
Utilization and other*		74			29			103

Balance as of June 30, 2022	$	(120	)	$	(7	)	$	(127	)

*	Includes adjustments for foreign currency translation.