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Revenue from contracts with customers | 12 Months Ended
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Dec. 31, 2023
Revenue from contracts with customers | NOTE 3 – Revenue from contracts with customers: Disaggregation of revenue The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 19.
|  | Year ended December 31, 2023 |
|  | North America |  |  | Europe |  |  | International Markets |  |  | Other activities |  |  | Total |
|  | (U.S.$ in millions) |
Sale of goods |  |  | 5,944 |  |  |  | 4,631 |  |  |  | 1,840 |  |  |  | 565 |  |  |  | 12,979 |
Licensing arrangements * |  |  | 601 |  |  |  | 51 |  |  |  | 24 |  |  |  | 5 |  |  |  | 681 |
Distribution |  |  | 1,577 |  |  |  | § |  |  |  | 38 |  |  |  | — |  |  |  | 1,615 |
Other** |  |  | 2 |  |  |  | 155 |  |  |  | 56 |  |  |  | 357 |  |  |  | 570 |
|  | $ | 8,124 |  |  | $ | 4,837 |  |  | $ | 1,958 |  |  | $ | 926 |  |  | $ | 15,846 |
* | Revenues from licensing arrangements in North America segment were mainly comprised of $500 million upfront payment received in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
** | “Other” revenues in Europe segment mainly related to the sale of certain product rights.
§ | Represents an amount less than $ 0.5 million.
|  | Year ended December 31, 2022 |
|  | North America |  |  | Europe |  |  | International Markets |  |  | Other activities |  |  | Total |
|  | (U.S.$ in millions) |
Sale of goods |  |  | 5,834 |  |  |  | 4,455 |  |  |  | 1,806 |  |  |  | 671 |  |  |  | 12,766 |
Licensing arrangements |  |  | 139 |  |  |  | 51 |  |  |  | 19 |  |  |  | 4 |  |  |  | 212 |
Distribution |  |  | 1,471 |  |  |  | 1 |  |  |  | 46 |  |  |  | — |  |  |  | 1,519 |
Other |  |  | 8 |  |  |  | 18 |  |  |  | 33 |  |  |  | 370 |  |  |  | 428 |
|  | $ | 7,452 |  |  | $ | 4,525 |  |  | $ | 1,903 |  |  | $ | 1,045 |  |  | $ | 14,925 |
|  | Year ended December 31, 2021 |
|  | North America |  |  | Europe |  |  | International Markets |  |  | Other activities |  |  | Total |
|  | (U.S.$ in millions) |
Sale of goods |  |  | 6,394 |  |  |  | 4,807 |  |  |  | 1,889 |  |  |  | 739 |  |  |  | 13,829 |
Licensing arrangements |  |  | 92 |  |  |  | 50 |  |  |  | 13 |  |  |  | 4 |  |  |  | 160 |
Distribution |  |  | 1,323 |  |  |  | 1 |  |  |  | 65 |  |  |  | — |  |  |  | 1,390 |
Other |  |  | (1) |  |  |  | 27 |  |  |  | 65 |  |  |  | 408 |  |  |  | 500 |
|  | $ | 7,809 |  |  | $ | 4,886 |  |  | $ | 2,032 |  |  | $ | 1,151 |  |  | $ | 15,878 |
Variable consideration Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables. The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. For description of the nature of each deduction and how provisions are estimated see note 1. SR&A to U.S. customers comprised approximately 65% of the Company’s total SR&A as of December 31, 2023, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the years ended December 31, 2023 and 2022 were as follows:
|  | Sales Reserves and Allowances |
|  | Reserves included in Accounts Receivable, net |  |  | Rebates |  |  | Medicaid and other governmental allowances |  |  | Chargebacks |  |  | Returns |  |  | Other |  |  | Total reserves included in Sales Reserves and Allowances |  |  | Total |
|  | (U.S.$ in millions) |
Balance at January 1, 2023 |  | $ | 67 |  |  | $ | 1,575 |  |  | $ | 663 |  |  | $ | 991 |  |  | $ | 455 |  |  | $ | 66 |  |  | $ | 3,750 |  |  | $ | 3,817 |
Provisions related to sales made in current year period |  |  | 354 |  |  |  | 4,015 |  |  |  | 654 |  |  |  | 7,579 |  |  |  | 264 |  |  |  | 109 |  |  |  | 12,621 |  |  |  | 12,975 |
Provisions related to sales made in prior periods |  |  | — |  |  |  | (31 | ) |  |  | (33 | ) |  |  | (54 | ) |  |  | 17 |  |  |  | — |  |  |  | (101 | ) |  |  | (101 | )
Credits and payments |  |  | (360 | ) |  |  | (3,974 | ) |  |  | (748 | ) |  |  | (7,662 | ) |  |  | (304 | ) |  |  | (77 | ) |  |  | (12,765 | ) |  |  | (13,125 | )
Translation differences |  |  | — |  |  |  | 18 |  |  |  | 4 |  |  |  | 5 |  |  |  | 4 |  |  |  | (1 | ) |  |  | 30 |  |  |  | 30 |
Balance at December 31, 2023 |  | $ | 61 |  |  | $ | 1,603 |  |  | $ | 540 |  |  | $ | 859 |  |  | $ | 436 |  |  | $ | 97 |  |  | $ | 3,535 |  |  | $ | 3,596 |
|  | Sales Reserves and Allowances |
|  | Reserves included in Accounts Receivable, net |  |  | Rebates |  |  | Medicaid and other governmental allowances |  |  | Chargebacks |  |  | Returns |  |  | Other |  |  | Total reserves included in Sales Reserves and Allowances |  |  | Total |
|  | (U.S.$ in millions) |
Balance at January 1, 2022 |  | $ | 68 |  |  | $ | 1,655 |  |  | $ | 854 |  |  | $ | 1,085 |  |  | $ | 535 |  |  | $ | 112 |  |  | $ | 4,241 |  |  | $ | 4,309 |
Provisions related to sales made in current year period |  |  | 363 |  |  |  | 3,823 |  |  |  | 871 |  |  |  | 7,819 |  |  |  | 317 |  |  |  | 85 |  |  |  | 12,915 |  |  |  | 13,278 |
Provisions related to sales made in prior periods |  |  | — |  |  |  | (69 | ) |  |  | (35 | ) |  |  | (44 | ) |  |  | (3 | ) |  |  | (51 | ) |  |  | (202 | ) |  |  | (202 | )
Credits and payments |  |  | (364 | ) |  |  | (3,798 | ) |  |  | (1,023 | ) |  |  | (7,861 | ) |  |  | (390 | ) |  |  | (77 | ) |  |  | (13,149 | ) |  |  | (13,513 | )
Translation differences |  |  | — |  |  |  | (36 | ) |  |  | (4 | ) |  |  | (8 | ) |  |  | (4 | ) |  |  | (3 | ) |  |  | (55 | ) |  |  | (55 | )
Balance at December 31, 2022 |  | $ | 67 |  |  | $ | 1,575 |  |  | $ | 663 |  |  | $ | 991 |  |  | $ | 455 |  |  | $ | 66 |  |  | $ | 3,750 |  |  | $ | 3,817 |
Allowance for credit losses Accounts receivables are recognized net of allowance for credit losses. Allowances for credit losses were $95 million and $91 million as of December 31, 2023 and December 31, 2022, respectively. Pledged accounts receivables Accounts receivables, net of allowance for credit losses, include $437 million and $436 million as of December 31, 2023 and December 31, 2022, respectively, which are pledged in connection with the U.S. securitization program entered into in November 2022. See note 10f.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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