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Segments
 12 Months Ended
Dec. 31, 2024
Segments
NOTE 19 – Segments:
Teva operates its business and reports its financial results in three segments:
 
  (a)
United States segment.
 
  (b)
Europe segment, which includes the European Union, the United Kingdom and certain other European countries.
 
  (c)
International Markets segment, which includes all countries other than the United States and countries included in the Europe segment.
In addition to these three segments, Teva has other sources of revenues included in other activities, primarily the sale of APIs to third parties, certain contract manufacturing services and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis.
Teva’s Chief Executive Officer (“CEO”), who is the chief operating decision maker (“CODM”), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the three identified reportable segments, namely United States, Europe and International Markets, to make decisions about resources to be allocated to the segments and assess their performance.
 
The key areas of focus by CODM for allocation of resources are revenues from each reportable segment, as well as operating expenses (cost of sales, R&D expenses, S&M expenses, G&A expenses, and other loss (income)). While CODM analyzes these categories, the area of focus is period over period fluxes and
budget-to-actual
variances to determine the right allocation of resources is attributed to each segment in order to ensure profitability is maximized.
Segment profit is comprised of revenues for the segment less cost of sales, R&D expenses, S&M expenses, G&A expenses and other loss (income) related to the segment. Segment profit does not include amortization and certain other items.
Teva manages its assets on a company basis, not by segments, as many of its assets are shared or commingled. Teva’s CODM does not regularly review asset information by reportable segment and, therefore, Teva does not report asset information by reportable segment.
Teva’s CEO may review its strategy and organizational structure from time to time. Based on such review, in May 2023 Teva launched its new Pivot to Growth strategy. Any additional changes in strategy may lead to a reevaluation of the Company’s segments and goodwill allocation to reporting units, as well as fair value attributable to its reporting units. See note 7.
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.
On January 31, 2024, Teva announced that it intends to divest its API business (including its R&D, manufacturing and commercial activities) through a sale. The intention to divest is in alignment with Teva’s Pivot to Growth strategy. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or that a divestiture will be agreed or completed at all. See note 2.
 
a.
Segment information:
 
    
Year ended December 31,
  
    
2024
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 8,034      $ 5,103      $ 2,463  
Cost of sales
      3,646        2,197        1,229  
R&D expenses
      633        229        112  
S&M expenses
      1,049        826        534  
G&A expenses
      410        272        150  
Other loss (income)
      §        3        (2 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,296      $ 1,575      $ 440  
  
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
 
    
Year ended December 31,
  
    
2023
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,731      $ 4,837      $ 2,351  
Cost of sales
      3,421        2,111        1,191  
R&D expenses
      604        220        104  
S&M expenses
      938        767        487  
G&A expenses
      378        263        142  
Other loss (income)
      (5 )       (2 )       (39 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,394      $ 1,478      $ 465  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2022
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,003      $ 4,525      $ 2,352  
Cost of sales
      3,269        1,825        1,128  
R&D expenses
      485        213        119  
S&M expenses
      879        748        467  
G&A expenses
      440        246        154  
Other loss (income)
      (3 )       (3 )       (54 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 1,934      $ 1,496      $ 538  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
United States profit
    $ 2,296      $ 2,394      $ 1,934  
Europe profit
      1,575        1,478        1,496  
International Markets profit
      440        465        538  
  
 
 
     
 
 
     
 
 
  
Total reportable segments profit
      4,311        4,338        3,968  
Profit of other activities
      18        24        172  
  
 
 
     
 
 
     
 
 
  
Amounts not allocated to segments:
            —   
Amortization
      588        616        732  
Other assets impairments, restructuring and other items
      1,388        718        512  
Goodwill impairment
      1,280        700        2,045  
Intangible assets impairments
      251        350        355  
Legal settlements and loss contingencies
      761        1,043        2,082  
Other unallocated amounts
      364        502        610  
  
 
 
     
 
 
     
 
 
  
Consolidated operating income (loss)
      (303 )      433        (2,197 ) 
  
 
 
     
 
 
     
 
 
  
Financial expenses, net
      981        1,057        966  
  
 
 
     
 
 
     
 
 
  
Consolidated income (loss) before income taxes
    $ (1,284 )
 
    $ (624 )     $ (3,163 ) 
  
 
 
     
 
 
     
 
 
  
 
b.
Segment revenues by major products and activities:
The following tables present revenues by major products and activities for each segment for the year ended December 31, 2024, 2023 and 2022:
United States segment:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Generic products (including biosimilars)
    $ 3,599      $ 3,138      $ 3,155  
AJOVY
      207        211        210  
AUSTEDO
      1,642        1,225        963  
BENDEKA and TREANDA
      168        237        309  
COPAXONE
      242        297        359  
UZEDY
      117        23        —   
Anda
      1,536        1,577        1,471  
Other*
      523        1,025        536  
  
 
 
     
 
 
     
 
 
  
Total
    $ 8,034      $ 7,731      $ 7,003  
  
 
 
     
 
 
     
 
 
  

*
Other revenues in 2024 include the sale of certain product rights. Other revenues in 2023 were mainly comprised of a $500 million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on Teva’s duvakitug (anti-TL1A) asset (see note 2).
Europe segment:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 3,926      $ 3,664      $ 3,466  
AJOVY
      216        160        124  
COPAXONE
      213        231        268  
Respiratory products
      244        265        273  
Other*
      504        516        393  
  
 
 
     
 
 
     
 
 
  
Total
    $ 5,103      $ 4,837      $ 4,525  
  
 
 
     
 
 
     
 
 
  

*
Other revenues in 2024 and 2023 include the sale of certain product rights.
International Markets segment:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 1,937      $ 1,932      $ 1,980  
AJOVY
      84        63        42  
COPAXONE
      48        63        64  
AUSTEDO
      46        15        8  
Other*
      349        278        257  
  
 
 
     
 
 
     
 
 
  
Total
    $ 2,463      $ 2,351      $ 2,352  
  
 
 
     
 
 
     
 
 
  
 
 


*
Other revenues in 2024 include the sale of certain product rights.
Revenues are attributable to countries based on sales to third parties in such countries. Revenues within the United States constituted 49%, 49% and 47% of Teva’s consolidated revenues for the years ended December 31, 2024, 2023 and 2022, respectively. Revenues within the Company’s country of domicile (Israel) constituted 2%, 2% and 2% of Teva’s consolidated revenues for the years ended December 31, 2024, 2023 and 2022, respectively.
 
c.
Supplemental data—major customers:
The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2024, 2023 and 2022.
 
    
Percentage of Third Party Net Sales
  
    
2024
    
2023
    
2022
  
McKesson Corporation
      12 %      9 %      10 % 
AmerisourceBergen Corporation
      9 %      9 %      10 % 
Most of Teva’s revenues from these customers were in the United States segment.
 
d.
Property, plant and equipment—by geographical location were as follows:
 
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Israel
    $ 1,066      $ 1,312  
Germany
      1,262        1,318  
United States
      561        596  
Croatia
      277        447  
Czech republic
      206        309  
Hungary
      83        279  
Ireland
      261        266  
Other
      865        1,222  
  
 
 
     
 
 
  
Total property, plant and equipment
    $ 4,581      $ 5,750