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Revenue from contracts with customers
 6 Months Ended
Jun. 30, 2024
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 15.
 
 
 
Three months ended June 30, 2024
 
 
 
United States
 
 
Europe
 
 
International
Markets
 
 
Other activities
 
 
Total
 
 
 
(U.S.$ in millions)
 
Sale of goods
      1,714        1,203        574        150       3,640  
Licensing arrangements
      23        6        6        1       36  
Distribution
      373        §        9        —        382  
Other
      §        3        4        99       106  
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
   $ 2,110      $ 1,213      $ 593      $ 249     $ 4,164  
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
 
§
Represents an amount less than $0.5 million.
 
 
 
Three months ended June 30, 2023
 
 
 
United States
 
 
Europe
 
 
International
Markets
 
 
Other activities
 
 
Total
 
 
 
(U.S.$ in millions)
 
Sale of goods
      1,480       1,153       547        151        3,331  
Licensing arrangements
      20       11       6        2        38  
Distribution
      392    
§
       10        —         402  
Other
      (1 )      (1 )      16        92        106  
  
 
 
    
 
 
    
 
 
     
 
 
     
 
 
  
   $ 1,892     $ 1,163     $ 578      $ 245      $ 3,878  
  
 
 
    
 
 
    
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.

 
 
Six months ended June 30, 2024
 
 
 
United States
 
 
Europe
 
 
International
Markets
 
 
Other activities
 
 
Total
 
 
 
(U.S.$ in millions)
 
Sale of goods
      3,034        2,455        1,140        277        6,907  
Licensing arrangements
      45        18        11        1        75  
Distribution
      754        1        18        —         773  
Other
      1        12        20        195        228  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
  
$
3,835
 
  
$
2,485
 
  
$
1,190
 
  
$
474
 
  
$
7,983
  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
 
 
 
Six months ended June 30, 2023
 
 
 
United States
 
 
Europe
 
 
International
Markets
 
 
Other activities
 
 
Total
 
 
 
(U.S.$ in millions)
 
Sale of goods
      2,710        2,329       1,100        282        6,421  
Licensing arrangements
      42        25       12        2        81  
Distribution
      816       
§
       19        —         836  
Other
     
§
        (7 )      29        179        201  
  
 
 
     
 
 
    
 
 
     
 
 
     
 
 
  
  
$
3,569
 
  
$
2,347
 
 
$
1,159
 
  
$
464
 
  
$
7,539
  
  
 
 
     
 
 
    
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
Variable consideration
Variable consideration mainly includes sales reserves and allowances (“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 accounts receivables.
The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions.
SR&A to U.S. customers comprised approximately
70
% of the Company’s total SR&A as of June 30, 2024, with the remaining balance primarily related to customers in Canada and Germany. The changes in SR&A for third-party sales for the six months ended June 30, 2024 and 2023 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, 2024
    $ 61      $ 1,603      $ 540      $ 859      $ 436      $ 97      $ 3,535      $ 3,596  
Provisions related to sales made in current year
 
period
     194       2,325       382       3,950       146       81       6,896       7,084  
Provisions related to sales made in prior periods
     —        12       26       (11 )      (17 )      (1 )      9       9  
Credits and payments
     (184 )     (2,183 )     (376 )      (3,923 )      (129 )     (82 )      (6,705 )      (6,884 ) 
Translation differences
     —        (19 )      (4 )      (6 )      (4 )      (2 )      (35 )      (35 ) 
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Balance at June 30, 2024
   $ 70     $ 1,738     $ 568     $ 869     $ 432     $ 93     $ 3,700     $ 3,770  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
 
 
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
      175       2,037       319       3,788       141       56       6,341       6,516  
Provisions related to sales made in prior periods
      —        (17 )      (26 )      (17 )      16       (3 )      (47 )      (47 ) 
Credits and payments
      (178 )      (2,068 )      (431 )      (3,908 )      (181 )      (38 )      (6,626 )      (6,804 ) 
Translation differences
      —        11       2       2       2       (2 )      15       15  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at June 30, 2023
    $ 64     $ 1,538     $ 527     $ 856     $ 433     $ 79     $ 3,433     $ 3,497