Other assets impairments, restructuring and other items

12 Months Ended

Dec. 31, 2024

Other assets impairments, restructuring and other items

NOTE 15—Other assets impairments, restructuring and other items:


	Year ended December 31,
	2024			2023		2022
	(U.S. $ in millions)
Impairment of long-lived tangible assets ( * )	$	1,024		$	28	$	47
Contingent consideration (see note 20)		303			548		261
Restructuring		74			111		146
Other		(14	)		30		57

Total	$	1,388		$	718	$	512

(*)	Including impairments related to exit and disposal activities.

Impairments

Impairments of tangible assets for the years ended December 31, 2024, 2023 and 2022 were $1,024 million, $28 million and $47 million, respectively. Impairments for the year ended December 31, 2024 were mainly related to the classification of the business venture in Japan and the API business (including its R&D, manufacturing and commercial activities) as held for sale (see note 2). Impairments for the year ended December 31, 2023 were mainly related to certain assets in Europe and the United States. Impairments for the year ended December 31, 2022 were mainly related to certain assets in the United States.

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 network consolidation activities and its “Pivot to Growth Strategy”.

Contingent consideration

In 2024, Teva recorded expenses of $303 million for contingent consideration, compared to expenses of $548 million in 2023 and $261 million in 2022. Expenses in 2024 and 2023 were mainly related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid

) and a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales. Expenses in 2022 were mainly related to changes in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid

Restructuring

In 2024, Teva recorded $74 million of

restructuring expenses

, compared to $111 million in 2023 and $146 million in 2022. Expenses in 2024 and 2023 and 2022 were primarily related to network consolidation activities.

The following table provides the components of restructuring costs:


	Year ended December 31,
	2024		2023		2022
	(U.S. $ in millions)
Restructuring
Employee termination	$	53	$	52	$	117
Other		21		59		29

Total	$	74	$	111	$	146

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, 2022	$	(131	)	$	(7	)	$	(138	)

Provision		(117	)		(29	)		(146	)
Utilization and other*		136			29			165

Balance as of December 31, 2022	$	(112	)	$	(7	)	$	(119	)

Provision		(52	)		(59	)		(111	)
Utilization and other*		90			59			149

Balance as of December 31, 2023	$	(75	)	$	(7	)	$	(82	)

Provision		(53	)		(21	)		(74	)
Utilization and other*		73			16			88

Balance as of December 31, 2024	$	(55	)	$	(13	)	$	(68	)

*	Includes adjustments for foreign currency translation.