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Revenue from contracts with customers
 12 Months Ended
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.