XML 44 R27.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Segments | 12 Months Ended
--- | ---
Dec. 31, 2023
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 from time to time. Based on such review, in May 2023 Teva launched its new Pivot to Growth strategy. Any additional 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. In conjunction with a recent shift in executive management responsibilities and in alignment with Teva’s Pivot to Growth strategy, Teva decided that Canada will no longer be included as part of Teva’s North America segment as of January 1, 2024. From that date, Teva’s North America segment will be comprised solely of the United States, while Canada will be reported as part of the Company’s International Markets segment. Teva will align its internal financial and segment reporting and its reporting units in coordination with this shift effective January 1, 2024. On January 31, 2024, Teva announced that it intends to divest its API business (including its R&D, manufacturing and commercial activities) through a sale, which divestment is expected to be completed in the first half of 2025. The intention to divest is in alignment with Teva’s Pivot to Growth strategy. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or that a divestiture will be agreed or completed at all.
a. | Segment information:
|  | Year ended December 31, |
|  | 2023 |
|  | North America |  |  | Europe |  |  | International Markets |
|  | (U.S. $ in millions) |
Revenues |  | $ | 8,124 |  |  | $ | 4,837 |  |  | $ | 1,958 |
Gross profit |  |  | 4,421 |  |  |  | 2,726 |  |  |  | 1,050 |
R&D expenses |  |  | 625 |  |  |  | 220 |  |  |  | 83 |
S&M expenses |  |  | 1,005 |  |  |  | 767 |  |  |  | 420 |
G&A expenses |  |  | 403 |  |  |  | 263 |  |  |  | 118 |
Other income |  |  | (8 | ) |  |  | (2 | ) |  |  | (35 | )
Segment profit |  | $ | 2,396 |  |  | $ | 1,478 |  |  | $ | 464 |
|  | 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, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |
North America profit |  | $ | 2,396 |  |  | $ | 1,993 |  |  | $ | 2,224 |
Europe profit |  |  | 1,478 |  |  |  | 1,496 |  |  |  | 1,494 |
International Markets profit |  |  | 464 |  |  |  | 479 |  |  |  | 529 |
Total reportable segments profit |  |  | 4,338 |  |  |  | 3,968 |  |  |  | 4,246 |
Profit of other activities |  |  | 24 |  |  |  | 172 |  |  |  | 154 |
Total segments profit |  |  | 4,361 |  |  |  | 4,139 |  |  |  | 4,401 |
Amounts not allocated to segments: |  |  |  |  |  |  |  |  |  |  |  |
Amortization |  |  | 616 |  |  |  | 732 |  |  |  | 802 |
Other asset impairments, restructuring and other items (1) |  |  | 718 |  |  |  | 512 |  |  |  | 341 |
Goodwill impairment |  |  | 700 |  |  |  | 2,045 |  |  |  | — |
Intangible assets impairments |  |  | 350 |  |  |  | 355 |  |  |  | 424 |
Legal settlements and loss contingencies |  |  | 1,043 |  |  |  | 2,082 |  |  |  | 717 |
Other unallocated amounts |  |  | 502 |  |  |  | 610 |  |  |  | 402 |
Consolidated operating income (loss) (1) |  |  | 433 |  |  |  | (2,197 | ) |  |  | 1,716 |
Financial expenses, net |  |  | 1,057 |  |  |  | 966 |  |  |  | 1,058 |
Consolidated income (loss) before income taxes (1) |  | $ | (624 | ) |  | $ | (3,163 | ) |  | $ | 658 |
(1) | The data presented for 2022 have been revised to reflect a revision in relation to a contingent consideration liability and related expenses in the consolidated financial statements. See note 1b.
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, 2023, 2022 and 2021: North America segment:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 3,475 |  |  | $ | 3,549 |  |  | $ | 3,769 |
AJOVY |  |  | 230 |  |  |  | 218 |  |  |  | 176 |
AUSTEDO |  |  | 1,225 |  |  |  | 963 |  |  |  | 802 |
BENDEKA and TREANDA |  |  | 241 |  |  |  | 316 |  |  |  | 385 |
COPAXONE |  |  | 320 |  |  |  | 387 |  |  |  | 577 |
Anda |  |  | 1,577 |  |  |  | 1,471 |  |  |  | 1,323 |
Other* |  |  | 1,056 |  |  |  | 549 |  |  |  | 777 |
Total |  | $ | 8,124 |  |  | $ | 7,452 |  |  | $ | 7,809 |
* | Other revenues were mainly comprised of a $ 500 million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
Europe segment:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 3,664 |  |  | $ | 3,466 |  |  | $ | 3,569 |
AJOVY |  |  | 160 |  |  |  | 124 |  |  |  | 87 |
COPAXONE |  |  | 231 |  |  |  | 268 |  |  |  | 391 |
Respiratory products |  |  | 265 |  |  |  | 273 |  |  |  | 356 |
Other* |  |  | 516 |  |  |  | 393 |  |  |  | 483 |
Total |  | $ | 4,837 |  |  | $ | 4,525 |  |  | $ | 4,886 |
* | Other revenues in 2023 were mainly related to the sale of certain product rights.
International Markets segment:
|  | Year ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (U.S. $ in millions) |
Generic products |  | $ | 1,594 |  |  | $ | 1,586 |  |  | $ | 1,649 |
AJOVY |  |  | 44 |  |  |  | 35 |  |  |  | 50 |
COPAXONE |  |  | 39 |  |  |  | 36 |  |  |  | 37 |
Other |  |  | 281 |  |  |  | 246 |  |  |  | 295 |
Total |  | $ | 1,958 |  |  | $ | 1,903 |  |  | $ | 2,032 |
Revenues are attributable to countries based on sales to third parties in such countries. Revenues within the United States constituted 49%, 47% and 46% of Teva’s consolidated revenues for the years ended December 31, 2023, 2022 and 2021, 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, 2023, 2022 and 2021, 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, 2023, 2022 and 2021.
|  | Percentage of Third Party Net Sales |
|  | 2023 |  |  | 2022 |  |  | 2021 |
McKesson Corporation |  |  | 9 | % |  |  | 10 | % |  |  | 11 | %
AmerisourceBergen Corporation |  |  | 9 | % |  |  | 10 | % |  |  | 11 | %
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, |
|  | 2023 |  |  | 2022 |
|  | (U.S. $ in millions) |
Israel |  | $ | 1,312 |  |  | $ | 1,401 |
Germany |  |  | 1,318 |  |  |  | 1,143 |
United States |  |  | 596 |  |  |  | 625 |
Croatia |  |  | 447 |  |  |  | 445 |
Czech republic |  |  | 309 |  |  |  | 318 |
Hungary |  |  | 279 |  |  |  | 294 |
Ireland |  |  | 266 |  |  |  | 268 |
Other |  |  | 1,222 |  |  |  | 1,245 |
Total property, plant and equipment |  | $ | 5,750 |  |  | $ | 5,739 |

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration