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Revenue from contracts with customers
 12 Months Ended
Dec. 31, 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 19.
In conjunction with a recent shift in executive management responsibilities and in alignment with Teva’s Pivot to Growth strategy, Teva decided that Canada is no longer included as part of Teva’s North America segment as of January 1, 2024. From that date Canada is reported as part of the Company’s International Markets segment and Teva’s North America segment has been renamed the United States segment. Teva aligned its internal financial and segment reporting and its reporting units in accordance with this change effective January 1, 2024. Prior period amounts have been recast to conform to the reporting structure for the current year.
 
    
Year ended December 31, 2024
  
    
United
states
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      6,327        4,891        2,280        933        14,430  
Licensing arrangements
      103        35        24        11        173  
Distribution
      1,536        1        39        —         1,576  
Other*
      68        176        121        §        365  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 8,034      $ 5,103      $ 2,463      $ 944      $ 16,544  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  

*
“Other” revenues in all segments include revenues related to sales of certain product rights.
§
Represents an amount less than $0.5 million.
 
    
Year ended December 31, 2023
  
    
United
states
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,554        4,631        2,229        565        12,979  
Licensing arrangements *
      597        51        28        5        681  
Distribution
      1,577        §        38        —         1,615  
Other**
      2        155        57        357        570  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 7,731      $ 4,837      $ 2,351      $ 926      $ 15,846  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  

*
Revenues from licensing arrangements in United states 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
  
    
United
states
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,383        4,455        2,257        671        12,766  
Licensing arrangements
      136        51        22        4        212  
Distribution
      1,471        1        46        —         1,519  
Other
      13        18        27        370        428  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 7,003      $ 4,525      $ 2,352      $ 1,045      $ 14,925  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
 
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 69% of the Company’s total SR&A as of December 31, 2024, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the years ended December 31, 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
     390       4,640       787       7,952       276       149       13,804       14,194  
Provisions related to sales made in prior periods
     —        5       22       (11 )
 
     (22 )
 
     (3 )
 
     (9 )
 
     (9 )
 
Credits and payments
     (395 )
 
     (4,531 )
 
     (781 )
 
     (7,851 )     (286 )     (126 )     (13,575 )     (13,970 )
Translation differences
     —        (43 )     (7 )     (13 )     (5 )     (9 )     (77 )     (77 )
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2024
   $ 56     $ 1,674     $ 561     $ 936     $ 399     $ 108     $ 3,678     $ 3,734  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
   
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  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Allowance for credit losses
Accounts receivables are recognized net of allowance for credit losses. Allowances for credit losses were $78 million and $95 million as of December 31, 2024 and December 31, 2023, respectively.