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Other assets impairments, restructuring and other items | 6 Months Ended
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Jun. 30, 2024
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, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | (U.S. $ in millions) |  |  | (U.S. $ in millions) |
Impairments of long-lived tangible assets (1) |  | $ | 69 |  |  | $ | 11 |  |  | $ | 668 |  |  | $ | 21 |
Contingent consideration (2) |  |  | 192 |  |  |  | 78 |  |  |  | 271 |  |  |  | 113 |
Restructuring |  |  | 18 |  |  |  | 10 |  |  |  | 31 |  |  |  | 66 |
Other |  |  | 1 |  |  |  | 9 |  |  |  | (17 | ) |  |  | 19 |
Total |  | $ | 280 |  |  | $ | 108 |  |  | $ | 954 |  |  | $ | 218 |
(1) | Including impairments related to exit and disposal activities.
(2) | The contingent consideration presented in the tables above for the three and six months ended June 30, 2023 have been revised as discussed in note 1c.
Impairments Impairments of tangible assets for the three months ended June 30, 2024 and 2023 were $69 million and $11 million, respectively. The impairment for the three months ended June 30, 2024 was mainly related to the expected loss from reclassification of currency translation adjustments in connection with the classification of the business venture in Japan as held for sale. See note 2. Impairments of tangible assets for the six months ended June 30, 2024 and 2023 were $668 million and $21 million, respectively. The impairment for the six months ended June 30, 2024 was mainly related to the classification of the business venture in Japan as held for sale (see note 2). The impairments for the six months ended June 30, 2023 were mainly related to certain assets in the U.S. and Europe. 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 and its “Pivot to Growth Strategy”. Contingent consideration In the three months ended June 30, 2024, Teva recorded an expense of $192 million for contingent consideration, compared to an expense of $78 million in the three months ended June 30, 2023. The expenses in the three months ended June 30, 2024 and 2023 was mainly related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide capsules (the generic version of Revlimid ® ) and a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales. The expense in the three months ended June 30, 2023 was revised as discussed in note 1c. In the six months ended June 30, 2024, Teva recorded an expense of $271 million for contingent consideration, compared to an expense of $113 million in the six months ended June 30, 2023. The expense in the first six months of 2024 and 2023 was mainly related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide capsules (the generic version of Revlimid ® ) and a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales. The expense in the first six months of 2023 was revised as discussed in note 1c. Restructuring In the three months ended June 30, 2024, Teva recorded $18 million of restructuring expenses, compared to $10 million in the three months ended June 30, 2023. Expenses for the three months ended June 30, 2024 and 2023 were primarily related to network consolidation activities. In the six months ended June 30, 2024, Teva recorded $ 31 million of restructuring expenses, compared to $ 66 million in the six months ended June 30, 2023. The expenses for the six months ended June 30, 2024 and 2023 were primarily related to network consolidation activities. The following tables provide the components of the Company’s restructuring costs:
|  | Three months ended June 30, |
|  | 2024 |  |  | 2023 |
|  | (U.S. $ in millions) |
Restructuring |  |  |  |  |  |  |  |
Employee termination |  | $ | 13 |  |  | $ | 1 |
Other |  |  | 5 |  |  |  | 9 |
Total |  | $ | 18 |  |  | $ | 10 |
|  | Six months ended June 30, |
|  | 2024 |  |  | 2023 |
|  | (U.S. $ in millions) |
Restructuring |  |  |  |  |  |  |  |
Employee termination |  | $ | 20 |  |  | $ | 24 |
Other |  |  | 11 |  |  |  | 42 |
Total |  | $ | 31 |  |  | $ | 66 |
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, 2024 |  | $ | (75 | ) |  | $ | (7 | ) |  | $ | (82 | )
Provision |  |  | (20 | ) |  |  | (11 | ) |  |  | (31 | )
Utilization and other* |  |  | 46 |  |  |  | 12 |  |  |  | 58 |
Balance as of June 30, 2024 |  | $ | (49 | ) |  | $ | (6 | ) |  | $ | (55 | )
|  | 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 | )
* | Includes adjustments for foreign currency translation.

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