Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Amendment Flag | false |
Document Transition Report | false |
Document Fiscal Year Focus | 2019 |
Document Period End Date | Jun. 30, 2019 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | TEVA PHARMACEUTICAL INDUSTRIES LTD |
Entity Central Index Key | 0000818686 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 1,091,906,300 |
Title of 12(b) Security | Ordinary Share |
Trading Symbol | TEVA |
Security Exchange Name | NYSE |
Entity File Number | 001-16174 |
Entity Incorporation, State or Country Code | L3 |
Entity Tax Identification Number | 00-0000000 |
Entity Address, Address Line One | 5 Basel Street |
Entity Address, City or Town | Petach Tikva |
Entity Address, Country | IL |
Entity Address, Postal Zip Code | 4951033 |
City Area Code | +972 (3) |
Local Phone Number | 914-8171 |
Entity Filer Category | Large Accelerated Filer |
Smaller Reporting Company | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 2,165 | $ 1,782 | |
Trade receivables | 5,260 | 5,822 | |
Inventories | 4,850 | 4,731 | |
Prepaid expenses | 1,069 | 899 | |
Other current assets | 437 | 468 | |
Assets held for sale | 24 | 92 | |
Total current assets | 13,805 | 13,794 | |
Deferred income taxes | 317 | 368 | |
Other non-current assets | 721 | 731 | |
Property, plant and equipment, net | 6,732 | 6,868 | |
Operating lease right-of-use assets | 500 | ||
Identifiable intangible assets, net | 12,435 | 14,005 | |
Goodwill | [1] | 24,913 | 24,917 |
Total assets | 59,424 | 60,683 | |
Current liabilities: | |||
Short-term debt | 2,771 | 2,216 | |
Sales reserves and allowances | 6,054 | 6,711 | |
Trade payables | 1,806 | 1,853 | |
Employee-related obligations | 587 | 870 | |
Accrued expenses | 2,335 | 1,868 | |
Other current liabilities | 899 | 804 | |
Total current liabilities | 14,452 | 14,322 | |
Long-term liabilities: | |||
Deferred income taxes | 1,698 | 2,140 | |
Other taxes and long-term liabilities | 1,642 | 1,727 | |
Senior notes and loans | 25,955 | 26,700 | |
Operating lease liabilities | 426 | ||
Total long-term liabilities | 29,721 | 30,567 | |
Total liabilities | 44,173 | 44,889 | |
Teva shareholders' equity: | |||
Ordinary shares of NIS 0.10 par value per share; June 30, 2019 and December 31, 2018: authorized 2,495 million shares; issued 1,198 million shares and 1,196 million shares, respectively | 56 | 56 | |
Additional paid-in capital | 27,258 | 27,210 | |
Accumulated deficit | (6,752) | (5,958) | |
Accumulated other comprehensive loss | (2,312) | (2,459) | |
Treasury shares as of June 30, 2019 and December 31, 2018 — 107 million ordinary shares and 106 million ordinary shares, respectively | (4,128) | (4,142) | |
Stockholders' equity attributable to Teva shareholders | 14,122 | 14,707 | |
Non-controlling interests | 1,128 | 1,087 | |
Total equity | 15,251 | 15,794 | |
Total liabilities and equity | $ 59,424 | $ 60,683 | |
[1] | Accumulated goodwill impairment as of June 30, 2019 and January 1, 2019 was approximately $21.0 billion. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares shares in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Common stock, par or stated value per share | ₪ 0.10 | ₪ 0.10 |
Ordinary shares, authorized | 2,495 | 2,495 |
Ordinary shares, issued | 1,198 | 1,196 |
Treasury shares | 107 | 106 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net revenues | $ 4,337 | $ 4,701 | $ 8,632 | $ 9,766 |
Cost of sales | 2,443 | 2,668 | 4,883 | 5,418 |
Gross profit | 1,893 | 2,033 | 3,749 | 4,348 |
Research and development expenses | 276 | 290 | 537 | 607 |
Selling and marketing expenses | 666 | 682 | 1,313 | 1,420 |
General and administrative expenses | 296 | 316 | 589 | 645 |
Intangible assets impairment | 561 | 521 | 1,030 | 727 |
Goodwill impairment | 120 | 300 | ||
Other assets impairments, restructuring and other items | 101 | 194 | 103 | 695 |
Legal settlements and loss contingencies | 646 | 20 | 703 | (1,258) |
Other income | (9) | (96) | (15) | (299) |
Operating income (loss) | (644) | (14) | (510) | 1,511 |
Financial expenses, net | 206 | 236 | 425 | 507 |
Income (loss) before income taxes | (850) | (250) | (934) | 1,004 |
Income taxes | (179) | (76) | (170) | (30) |
Share in losses (income) of associated companies, net | (8) | 4 | 66 | |
Net income (loss) | (671) | (166) | (768) | 968 |
Net income attributable to non-controlling interests | 18 | 10 | 26 | 24 |
Net income (loss) attributable to Teva | (689) | (176) | (794) | 944 |
Dividends on preferred shares | 65 | 130 | ||
Net income (loss) attributable to ordinary shareholders | $ (689) | $ (241) | $ (794) | $ 814 |
Earnings (loss) per share attributable to ordinary shareholders: | ||||
Basic | $ (0.63) | $ (0.24) | $ (0.73) | $ 0.80 |
Diluted | $ (0.63) | $ (0.24) | $ (0.73) | $ 0.80 |
Weighted average number of shares (in millions): | ||||
Basic | 1,092 | 1,018 | 1,091 | 1,018 |
Diluted | 1,092 | 1,018 | 1,091 | 1,020 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income (loss) | $ (671) | $ (166) | $ (768) | $ 968 |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustment | 86 | (711) | 133 | (472) |
Unrealized gain (loss) from derivative financial instruments | (10) | 100 | 37 | 56 |
Unrealized gain (loss) from available-for-sale securities | 1 | (1) | 1 | (1) |
Unrealized loss on defined benefit plans | (1) | (2) | (1) | (1) |
Total other comprehensive income (loss) | 76 | (614) | 170 | (418) |
Total comprehensive income (loss) | (595) | (780) | (598) | 550 |
Comprehensive income (loss) attributable to non-controlling interests | 47 | (51) | 49 | 46 |
Comprehensive income (loss) attributable to Teva | $ (642) | $ (729) | $ (647) | $ 504 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Ordinary Shares [Member] | MCPS [Member] | [1] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Shares [Member] | Total Teva Shareholders' Equity [Member] | Non-controlling Interests [Member] | |
Beginning balance at Dec. 31, 2017 | $ 18,745 | $ 54 | $ 3,631 | $ 23,479 | $ (3,803) | $ (1,853) | $ (4,149) | $ 17,359 | $ 1,386 | ||
Beginning balance, shares at Dec. 31, 2017 | 1,124 | ||||||||||
Cumulative effect of new accounting standard | (5) | 5 | |||||||||
Comprehensive income (loss) | 550 | 944 | (441) | 503 | 46 | ||||||
Stock-based compensation expense | 77 | 77 | 77 | ||||||||
Dividends to preferred shareholders | 129 | (129) | |||||||||
Transactions with non-controlling interests | (2) | (2) | |||||||||
Ending balance at Jun. 30, 2018 | 19,368 | $ 54 | 3,760 | 23,426 | (2,864) | (2,289) | (4,149) | 17,938 | 1,430 | ||
Ending balance, shares at Jun. 30, 2018 | 1,124 | ||||||||||
Beginning balance at Mar. 31, 2018 | [2] | 20,102 | $ 54 | 3,696 | 23,443 | (2,688) | (1,735) | (4,149) | 18,621 | 1,481 | |
Beginning balance, shares at Mar. 31, 2018 | [2] | 1,124 | |||||||||
Comprehensive income (loss) | (780) | (176) | (554) | (730) | (51) | ||||||
Stock-based compensation expense | 47 | 47 | 47 | ||||||||
Dividends to preferred shareholders | 65 | (65) | |||||||||
Ending balance at Jun. 30, 2018 | 19,368 | $ 54 | $ 3,760 | 23,426 | (2,864) | (2,289) | (4,149) | 17,938 | 1,430 | ||
Ending balance, shares at Jun. 30, 2018 | 1,124 | ||||||||||
Beginning balance at Dec. 31, 2018 | 15,794 | $ 56 | 27,210 | (5,958) | (2,459) | (4,142) | 14,707 | 1,087 | |||
Beginning balance, shares at Dec. 31, 2018 | 1,196 | ||||||||||
Comprehensive income (loss) | (598) | (794) | 147 | (647) | 49 | ||||||
Stock-based compensation expense | 64 | 64 | 64 | ||||||||
Issuance of shares, value | [3] | ||||||||||
Issuance of shares, shares | [3] | 2 | |||||||||
Issuance of Treasury Shares | 6 | (8) | 14 | 6 | |||||||
Transactions with non-controlling interests | (8) | (8) | |||||||||
Other | (8) | (8) | (8) | ||||||||
Ending balance at Jun. 30, 2019 | 15,251 | $ 56 | 27,258 | (6,752) | (2,312) | (4,128) | 14,122 | 1,128 | |||
Ending balance, shares at Jun. 30, 2019 | 1,198 | ||||||||||
Beginning balance at Mar. 31, 2019 | 15,821 | $ 56 | 27,234 | (6,063) | (2,359) | (4,137) | 14,732 | 1,089 | |||
Beginning balance, shares at Mar. 31, 2019 | 1,198 | ||||||||||
Comprehensive income (loss) | (595) | (689) | 47 | (642) | 47 | ||||||
Stock-based compensation expense | 32 | 32 | 32 | ||||||||
Issuance of shares, value | [3] | ||||||||||
Issuance of Treasury Shares | 3 | (6) | 9 | 3 | |||||||
Transactions with non-controlling interests | (8) | (8) | |||||||||
Other | (2) | (2) | (2) | ||||||||
Ending balance at Jun. 30, 2019 | $ 15,251 | $ 56 | $ 27,258 | $ (6,752) | $ (2,312) | $ (4,128) | $ 14,122 | $ 1,128 | |||
Ending balance, shares at Jun. 30, 2019 | 1,198 | ||||||||||
[1] | Mandatory convertible preferred shares. | ||||||||||
[2] | Following the adoption of ASU 2016-01, the Company recorded a $5 million opening balance reclassification from accumulated other comprehensive income to retained earnings. | ||||||||||
[3] | Represents an amount less than 0.5 million. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Maximum [Member] | Ordinary Shares [Member] | ||
Exercise of options by employees and vested RSUs | $ 0.5 | $ 0.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net income (loss) | $ (768) | $ 968 |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||
Net change in operating assets and liabilities | (1,056) | (1,268) |
Impairment of long-lived assets | 1,097 | 980 |
Depreciation and amortization | 893 | 986 |
Deferred income taxes – net and uncertain tax positions | (362) | (489) |
Stock-based compensation | 64 | 77 |
Other items | 11 | 44 |
Net gain from sale of long-lived assets and investments | 6 | (88) |
Goodwill impairment | 300 | |
Impairment of equity investment | 94 | |
In process Research and development | 54 | |
Net cash provided by (used in) operating activities | (115) | 1,658 |
Investing activities: | ||
Beneficial interest collected in exchange for securitized trade receivables | 746 | 970 |
Purchases of property, plant and equipment | (237) | (299) |
Proceeds from sales of business, investments and long-lived assets | 134 | 841 |
Other investing activities | 59 | (11) |
Purchases of investments and other assets | (1) | (56) |
Net cash provided by investing activities | 701 | 1,445 |
Financing activities: | ||
Repayment of senior notes and loans and other long-term liabilities | (157) | (6,289) |
Tax withholding payments made on shares and dividends | (52) | (22) |
Other financing activities | (13) | (10) |
Net change in short-term debt | (2) | (261) |
Proceeds from senior notes and loans, net of issuance costs | 4,435 | |
Net cash used in financing activities | (224) | (2,147) |
Translation adjustment on cash and cash equivalents | 21 | (58) |
Net change in cash and cash equivalents | 383 | 898 |
Balance of cash and cash equivalents at beginning of period | 1,782 | 963 |
Balance of cash and cash equivalents at end of period | 2,165 | 1,861 |
Non-cash financing and investing activities: | ||
Beneficial interest obtained in exchange for securitized trade receivables | $ 770 | $ 968 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 2019 | |
Basis of presentation | Note 1 – Basis of presentation: The accompanying unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements. In the opinion of management, the financial statements reflect all recurring adjustments necessary to fairly state the financial position and results of operations of Teva. The information included in this Quarterly Report on Form 10-Q 10-K |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Significant Accounting Policies | Note 2 – Significant accounting policies: Recently adopted accounting pronouncements In June 2018, the FASB issued ASU 2018-07 non-employee In August 2017, the FASB issued ASU 2017-12 non-financial In February 2016, the FASB issued ASU 2016-02 right-of-use Teva adopted the new accounting standard ASC 842 “Leases” and all the related amendments on January 1, 2019 and used the effective date as Teva’s date of initial application. Consequently, financial information was not updated and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. Teva did not elect the ‘package of practical expedients’, which permits the Company not to reassess its prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard. However, the Company did elect the practical expedient pertaining to the use-of The new standard also provides practical expedients for an entity’s ongoing accounting. Teva elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means, for those leases, Teva does not recognize ROU assets or lease liabilities, including not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. Teva also elected the practical expedient to not separate lease and non-lease Additionally, following the adoption of the new Lease Standard and in subsequent measurements, Teva applies the portfolio approach to account for the operating lease ROU assets and liabilities for certain car leases and incremental borrowing rates. The adoption of this standard has a material effect on Teva’s financial statements. The most significant impact is reflected in: (i) the recognition of approximately $553 million ROU assets and $561 million lease liabilities on Teva’s balance sheet for its operating leases of real estate, vehicles and equipment (the difference between the additional lease assets and lease liabilities did not the retained earnings), and (ii) the requirement to provide significant new disclosures regarding Teva’s leasing activities and to enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. However, the adoption of this standard does not have a material impact on Teva’s consolidated statements of income and consolidated statements of cash flows. Also, the Company’s accounting for finance leases remained substantially unchanged. See note 20 for further discussion. Recently issued accounting pronouncements, not yet adopted In April 2019, the FASB issued ASU 2019-04 “Codification Improvements to Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825). This ASU provides clarifications for three topics related to financial instruments accounting. The guidance will be effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In November 2018, the FASB issued ASU 2018-18 unit-of-account In August 2018, the FASB issued ASU 2018-15 other—Internal-use 350-40): internal-use In August 2018, the FASB issued ASU 2018-13 In June 2016, the FASB issued ASU 2016-13 Reclassifications of prior periods During the fourth quarter of 2018, the Company changed its accounting policy for the presentation of royalty payments to third parties that are not involved in the production of products. Teva previously accounted for royalty payments to such third parties as S&M expenses. Royalties paid to a party that is involved in the production process are classified as cost of sales. The Company believes this change in accounting policy is preferable in order to be aligned with industry practice of classifying all royalty payments related to currently marketed products in cost of sales. The Company now reports all royalty payments as cost of sales. The Company has retrospectively adjusted prior periods to reflect this change and the impact of the change for the first and second quarters of 2018 was an increase in cost of sales of $33 million and $28 million, respectively, with a corresponding decrease in S&M expenses. |
Certain transactions
Certain transactions | 6 Months Ended |
Jun. 30, 2019 | |
Certain transactions | NOTE 3 – Certain transactions: Business acquisitions: Actavis Generics and Anda acquisitions On August 2, 2016, Teva completed the acquisition of Allergan plc’s (“Allergan”) worldwide generic pharmaceuticals business (“Actavis Generics”). At closing, Teva transferred to Allergan consideration of approximately $33.4 billion in cash and approximately 100.3 million Teva shares. On October 3, 2016, Teva completed the acquisition of Anda Inc. (“Anda”), a medicines distribution business in the United States, from Allergan, for cash consideration of $500 million. This transaction was related to the Actavis Generics acquisition and, as such, the purchase price accounting and related disclosures were treated on a combined basis. The final cash consideration for the Actavis Generics acquisition was subject to certain net working capital adjustments. On January 31, 2018, Teva and Allergan entered into a settlement agreement and mutual releases for which Allergan made a one-time payment of $703 million to Teva to settle the working capital adjustments under the Master Purchase Agreement, dated July 26, 2015. As the measurement period has ended, this amount was recorded as a gain under legal settlements and loss contingencies in the first quarter of 2018. Rimsa On March 3, 2016, Teva completed the acquisition of Representaciones e Investigaciones Médicas, S.A. de C.V. (“Rimsa”), a pharmaceutical manufacturing and distribution company in Mexico, for $2.3 billion, in a cash free, debt free set of transactions. Teva financed the transaction using cash on hand. Following the closing of the acquisition, Teva identified issues concerning Rimsa’s pre-acquisition pre-emptive On February 15, 2018, Teva and the Rimsa sellers entered into a settlement agreement and mutual releases with respect to Teva’s breach of contract claim, pursuant to which the Rimsa sellers made a one-time Assets and Liabilities Held For Sale: The table below summarizes the major classes of assets and liabilities included as held for sale as of June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 (U.S. $ in millions) Property, plant and equipment, net $ 30 $ 92 Goodwill — 51 Adjustments of assets held for sale to fair value (6 ) (51 ) Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 24 $ 92 Other significant agreements: The Company has entered into alliances and other arrangements with third parties to acquire rights to products it does not have, to access markets it does not operate in and to otherwise share development costs or business risks. The Company’s most significant agreements of this nature are summarized below. Eli Lilly and Alder BioPharmaceuticals In December 2018, Teva entered into an agreement with Eli Lilly, resolving the European Patent Office opposition they had filed against Teva’s AJOVY ® On January 8, 2018, Teva signed a global license agreement with Alder BioPharmaceuticals (“Alder”). The agreement validates Teva’s IP and resolves Alder’s opposition to Teva’s European patent with respect to anti-calcitonin gene-related peptide (CGRP) antibodies, including the withdrawal of Alder’s appeal before the European Patent Office. Under the terms of the agreement, Alder will receive a non-exclusive license to Teva’s anti-CGRP antibodies patent portfolio to develop, manufacture and commercialize eptinezumab in the United States and worldwide, excluding Japan and Korea. Teva received a $25 million upfront payment that was recognized as revenue during the first quarter of 2018. The agreement stipulates additional milestone payments to Teva of up to $175 million, as well as future royalties. PGT Healthcare Partnership In July 2018, Teva terminated its joint venture with the Procter & Gamble Company (“P&G”), PGT Healthcare partnership (“PGT”), which the two companies established in 2011 to market over-the-counter As part of the separation, Teva transferred to P&G the shares it held in New Chapter Inc. and ownership rights in an OTC plant located in India. Teva provides certain services to P&G after the separation for a transition period. During the first quarter of 2018, Teva classified the plant in India as an asset held for sale and recorded an impairment of $64 million under other assets impairments, restructuring and other items. In addition, Teva recorded a write-down of $94 million of its investment in New Chapter Inc. under share in losses of associated companies. During September 2018, Teva and P&G completed the final net asset distribution as part of the dissolution and Teva recorded a gain of $50 million to reflect the cash payment received from P&G under the dissolution agreement. AUSTEDO ® On September, 19, 2017, Teva entered into a partnership agreement with Nuvelution Pharma, Inc. (“Nuvelution”) for development of AUSTEDO for the treatment of Tourette syndrome in pediatric patients in the United States. Nuvelution will fund and manage clinical development, driving all operational aspects of the phase 3 program, and Teva will lead the regulatory process and be responsible for commercialization. Upon and subject to U.S. Food and Drug Administration (“FDA”) approval of AUSTEDO for the treatment of Tourette syndrome, Teva will pay Nuvelution a pre-agreed Otsuka On May 12, 2017, Teva entered into a license and collaboration agreement with Otsuka Pharmaceutical Co. Ltd. (“Otsuka”), providing Otsuka with an exclusive license to conduct phase 2 and 3 clinical trials for AJOVY in Japan and, if approved, to commercialize the product in Japan. Otsuka paid Teva an upfront payment of $50 million in consideration for the transaction. Teva may receive additional milestone payments upon filing with Japanese regulatory authorities, receipt of regulatory approval and achievement of certain revenue targets. Otsuka will also pay Teva royalties on AJOVY sales in Japan. Attenukine TM In December 2016, Teva entered into a license agreement for research, development, manufacture and commercializing of Attenukine technology with a subsidiary of Takeda Pharmaceutical Company Ltd. (“Takeda”). Teva received a $30 million upfront payment. The agreement stipulates additional milestone payments to Teva of up to $280 million, as well as future royalties. Celltrion In October 2016, Teva and Celltrion, Inc. (“Celltrion”) entered into a collaborative agreement to commercialize Truxima ® ® Regeneron In September 2016, Teva and Regeneron Pharmaceuticals, Inc. (“Regeneron”) entered into a collaborative agreement to develop and commercialize Regeneron’s pain medication product, fasinumab. Teva and Regeneron share equally in the global commercial rights to this product, as well as ongoing associated R&D costs of approximately $1 billion. Teva made an upfront payment of $250 million to Regeneron in the third quarter of 2016 as part of the agreement. Milestone payments of $25 million, $35 million and $60 million were paid in the second quarter of 2017, the first quarter of 2018 and the fourth quarter of 2018, respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventories | NOTE 4 – Inventories: Inventories, net of reserves, consisted of the following: June 30, December 31, 2019 2018 (U.S. $ in millions) Finished products $ 2,643 $ 2,665 Raw and packaging materials 1,393 1,328 Products in process 638 590 Materials in transit and payments on account 176 148 Total $ 4,850 $ 4,731 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment | NOTE 5 – Property, plant and equipment: Property, plant and equipment, net, consisted of the following: June 30, December 31, 2019 2018 (U.S. $ in millions) Machinery and equipment $ 5,713 $ 5,691 Buildings 3,092 3,143 Computer equipment and other assets 2,129 2,097 Payments on account 526 514 Land 370 351 11,830 11,796 Less—accumulated depreciation (5,099 ) (4,928 ) Total $ 6,732 $ 6,868 |
Identifiable Intangible Assets
Identifiable Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Identifiable Intangible Assets | NOTE 6 – Identifiable intangible assets: Identifiable intangible assets consisted of the following: Gross carrying amount net of impairment Accumulated amortization Net carrying amount June 30, December 31, June 30, December 31, June 30, December 31, 2019 2018 2019 2018 2019 2018 (U.S. $ in millions) Product rights $ 19,995 $ 20,361 $ 10,043 $ 9,565 $ 9,952 $ 10,796 Trade names 604 606 109 91 496 515 In process research and development 1,988 2,694 — — 1,988 2,694 Total $ 22,587 $ 23,661 $ 10,152 $ 9,656 $ 12,435 $ 14,005 Product rights and trade names Product rights and trade names are assets presented at amortized cost. Product rights and trade names represent a portfolio of pharmaceutical products from various categories with a weighted average life of approximately 12 years. Amortization of intangible assets amounted to $285 million and $302 million in the three months ended June 30, 2019 and 2018, respectively. Amortization of intangible assets amounted to $568 million and $612 million in the six months ended June 30, 2019 and 2018, respectively. IPR&D Teva’s IPR&D are assets that have not yet been approved in major markets. Teva’s IPR&D is comprised mainly of the following acquisitions and related assets: various generic products (Actavis Generics) – $1,730 million; various generic products (Rimsa) – $47 million; and AUSTEDO – $211 million. IPR&D carries intrinsic risks that the asset might not succeed in advanced phases and may be impaired in future periods. In the three months ended June 30 , 2019 , Teva reclassified $19 million of products from IPR&D to product rights following regulatory approval. In the first six months of 2019, Teva reclassified $ mainly $ Intangible assets impairment Impairments of long-lived intangible assets for the three months ended on June 30, 2019 and 2018 were $561 million and $521 million, respectively. Impairments in the quarter of 2019 consisted of: a) Identifiable product rights of $365 million, mainly due to updated market assumptions regarding price and volume of products acquired from Actavis Generics and primarily marketed in the United States. b) IPR&D assets of $196 million, mainly due to: (i) $137 million of generic pipeline products acquired from Actavis Generics due to development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date or discount rate) in the United States and (ii) $59 Impairments of long-lived intangible assets for the six months ended on June 30 , 2019 and 2018 were $1,030 million and $727 million, respectively. Impairments in the first six months of 2019 consisted of: a) Identifiable product rights of $569 million, mainly due to updated market assumptions regarding price and volume of products acquired from Actavis Generics and primarily marketed in the United States. b) IPR&D assets of $461 million, due to: (i) $277 million of generic pipeline products acquired from Actavis Generics due to development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date or discount rate) in the United States and (ii) $125 million related to lenalidomide (generic equivalent of Revlimid ® the assumption of the future market share of few products within Teva’s Actavis |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill | NOTE 7 – Goodwill: The changes in the carrying amount of goodwill for the period ended June 30, 2019 were as follows: North America Europe International Markets Other Total (U.S. $ in millions) Balance as of January 1, 2019 (1) $ 11,098 $ 8,653 $ 2,479 $ 2,687 $ 24,917 Changes during the period: Goodwill disposal (23 ) (5 ) — — (28 ) Goodwill adjustments (13 ) — — — (13 ) Translation differences 16 (32 ) 53 — 37 Balance as of June 30, 2019 (1) $ 11,078 $ 8,616 $ 2,532 $ 2,687 $ 24,913 (1) Accumulated goodwill impairment as of June 30, 2019 and January 1, 2019 was approximately $21.0 billion. Teva operates its business through three segments: North America, Europe and International Markets. Teva began reporting its financial results under this structure in the first quarter of 2018 . In addition to these three segments, Teva has other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing 17 . Teva determines the fair value of its reporting units using the income approach. The income approach is a forward-looking approach for estimating fair value. Within the income approach, the method used is the discounted cash flow method. Teva starts with a forecast of all the expected net cash flows associated with the reporting unit, which includes the application of a terminal value, and then applies a discount rate to arrive at a net present value amount. Cash flow projections are based on Teva’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the WACC, adjusted for the relevant risk associated with country-specific and business-specific characteristics. If any of these expectations were to vary materially from Teva’s assumptions, Teva could face impairment of goodwill allocated to these reporting units in the future. During the first quarter of 2019, management assessed developments during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount. This includes the International Markets, Medis and Europe reporting units, which had headroom of 6% or less as of December 31, 2018. As part of this assessment, the Company also considered the sensitivity of its conclusions as they relate to changes in the estimates and assumptions used in the latest forecast available for each period. In addition, Teva analyzed the aggregate fair value of its reporting units, calculated as part of the annual goodwill impairment test performed in the fourth quarter of 2018, compared to its market capitalization. Despite the decrease in share price during the first quarter of 2019 compared to the average share price used to assess the reasonableness of the results of the cash flow projections used for the goodwill impairment analysis in the fourth quarter of 2018, management believed that its fair value assessment was reasonably supported by Teva’s market capitalization. Based on this assessment, management concluded that it was not more likely than not that the fair value of any of the reporting units was below its carrying value as of March 31, 2019 and, therefore, no quantitative assessments were performed. In the second quarter of 2019, the Company completed its long-range planning (“LRP”) process. The LRP is part of Teva’s internal financial planning and budgeting processes and is discussed and reviewed by Teva’s management and its board of directors. Certain events and changes in circumstances, reflected in the LRP, indicated that it was more likely than not that the carrying value of certain reporting units may exceed their fair value. The following analysis was performed based upon the June 30, 2019 assessment: International Markets Management noted a further decrease in the profitability projections in the Japanese market related to new price regulation and further generic competition. Consequently, management conducted a quantitative analysis to its International Markets reporting unit, which resulted in no impairment. The percentage difference between estimated fair value and estimated carrying value for the International Markets reporting unit is 4%. The Company used a terminal growth rate of 2.3% and a discount rate of 10.74%. If Teva holds all other assumptions constant, a reduction in the terminal value growth rate of 0.4% or an increase in discount rate of 0.3% would result in an impairment related to its International Markets reporting unit. North America Management believes that the sharp decline in the Company’s share price, which commenced May 2019 , was mainly a result of events related to increased publicity surrounding certain litigations in the United States. Management considered the sharp decline in share price as an indication that it was more likely than not that the carrying value of its North America reporting unit exceeded its fair value. Consequently, management conducted a quantitative analysis to its North America reporting unit, which resulted in no impairment. The percentage difference between estimated fair value and estimated carrying value for the North America reporting unit is 9%. The Company used a terminal growth rate of 2.0% and a discount rate of 10.0 %. If Teva holds all other assumptions constant, a reduction in the terminal value growth rate of 0.9% or an increase in discount rate of 0.6% would result in an impairment related to its North America reporting unit. Remaining reporting units After assessing the totality of relevant events and circumstances, Teva determined that it is not more likely than not that the fair value of its remaining reporting units is less than their carrying amount. The percentage difference between estimated fair value and estimated carrying value for the Europe, Medis and TAPI reporting units is 22%, 45% and 15%, respectively. Market Capitalization Teva analyzed the aggregate fair value of its reporting units as compared to its market capitalization in order to assess the reasonableness of the results of its cash flow projections used for its goodwill impairment analysis. During the second quarter of 2019, Teva noted its market capitalization was significantly below management’s assessment of the aggregate fair value of its reporting units. Management analyzed the difference and the underlying factors: • Based on research analysts’ reports reviewed by management and responses from certain analysts to Teva’s inquiries, management noted a gap in the sales projections of AJOVY in the Europe and International Markets reporting units. Management concluded that the majority of analysts do not focus on these markets in preparing their financial models and, as a result, have not attributed value to the launch potential in these reporting units. Management believes that its fair value assessment relies on more accurate information and therefore no adjustment was incorporated to the fair value. • Management also noted a difference with regard to sales projections of AUSTEDO in North America resulting in higher fair value as analyzed by management compared to Teva’s market capitalization. Management believes that it has more accurate information based on its knowledge of the market and its growth through the remainder of 2019 and therefore no adjustment was incorporated to the fair value. • Management believes that the remaining difference in fair value is attributable to market concerns regarding certain litigation risks, namely from the opioid and price fixing litigations, and concern surrounding the company’s cash flow and overall liquidity. Management believes that these concerns led to an acute reaction, which resulted in further decline in the share price. Although ultimately the outcome of the relevant cases will not be known in the near term, developments in these cases, likely to occur through the end of 2019, are expected to clarify the outlook with regards to the opioid litigation, which may result in a share price recovery. Consequently, management believes that this disparity results from a market value not reflective of the underlying fair value of its reporting units and therefore it would be inappropriate to record an impairment charge in the second quarter of 2019 related thereto. Management will continue to monitor business conditions and potential events or circumstances that could have a negative effect on the estimated fair value of the Company. Based on assumptions in place at this time, if Teva’s share price does not recover in the near term, this may lead to a goodwill impairment charge of up to an aggregated amount of approximately $5,000 million in its North America and International Markets reporting units. Future impairment charges, if any, reflecting conditions at that time may be materially different. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings (Loss) per Share | NOTE 8 – Earnings (Loss) per share: Basic earnings and loss per share are computed by dividing net results attributable to Teva’s ordinary shareholders by the weighted average number of ordinary shares outstanding (including fully vested restricted share units (“RSUs”)) during the period, net of treasury shares. In computing the diluted loss per share for the three months ended June 30, 2019 and 2018, no account was taken of the potential dilution of the assumed exercise of employee stock options and non-vested RSUs granted under employee stock compensation plans, and convertible senior debentures, since they had an anti-dilutive effect on loss per share. Additionally, in the three months ended June 30, 2018, no account was taken of the potential dilution by the mandatory convertible preferred shares, amounting to 63 million shares (including shares that were issued due to unpaid dividends until that date), since they had an anti-dilutive effect on loss per share. On December 17, 2018, the mandatory convertible preferred shares automatically converted into ADSs and all of the accumulated and unpaid dividends on the mandatory convertible preferred shares were paid in ADSs. As a result of this conversion, Teva issued 70.6 million ADSs in December 2018. In computing the diluted loss per share for the six months ended June 30, 2019, no account was taken of the potential dilution by the assumed exercise of employee stock options and non-vested RSUs granted under employee stock compensation plans, and convertible senior debentures, since they had an anti-dilutive effect on loss per share. Diluted earnings per share for the six months ended June 30, 2018 take into account the potential dilution that could occur upon the exercise of options and non-vested RSUs granted under employee stock compensation plans, using the treasury stock method. Additionally, in the six months ended June 30, 2018, no account was taken of the potential dilution by the mandatory convertible preferred shares, amounting to 65 million shares (including shares that were issued due to unpaid dividends until that date), since they had an anti-dilutive effect on loss per share. |
Revenue from contracts with cus
Revenue from contracts with customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from contracts with customers | NOTE 9 – 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 17. Three months ended June 30, 2019 North America Europe International Other Total (U.S. $ in millions) Sale of goods 1,686 1,173 526 204 3,588 Licensing arrangements 35 10 2 1 48 Distribution 351 § 164 — 515 Other — § 49 137 186 $ 2,071 $ 1,183 $ 741 $ 342 4,337 § Represents an amount less than $1 million. Three months ended June 30, 2018 North America Europe International Other Total (U.S. $ in millions) Sale of goods 1,913 1,317 573 186 3,989 Licensing arrangements 30 8 1 2 41 Distribution 320 3 154 — 477 Other — — 61 133 194 $ 2,263 $ 1,328 $ 789 $ 321 $ 4,701 Six months ended June 30, 2019 North America Europe International Other Total (U.S. $ in millions) Sale of goods 3,324 2,433 994 390 7,141 Licensing arrangements 65 15 2 3 85 Distribution 729 § 315 — 1,044 Other — § 97 264 362 $ 4,118 $ 2,448 $ 1,409 $ 657 $ 8,632 § Represents an amount less than $1 million. Six months ended June 30, 2018 North America Europe International Other activities Total (U.S. $ in millions) Sale of goods 4,081 2,746 1,092 365 8,284 Licensing arrangements 62 18 21 4 105 Distribution 651 6 307 — 964 Other — — 119 294 413 $ 4,794 $ 2,770 $ 1,539 $ 663 $ 9,766 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 trade 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 83% of the Company’s total SR&A as of June 30, 2019, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the six months ended June 30, 2019 were as follows: Sales Reserves and Allowances Reserves net Rebates Medicaid and Chargebacks Returns Other Total reserves SR&A Total (U.S.$ in millions) Balance at December 31, 2018 $ 175 $ 3,006 $ 1,361 $ 1,530 $ 638 $ 176 $ 6,711 $ 6,886 Provisions related to sales made in current year period 229 2,651 548 4,822 148 213 8,427 8,656 Provisions related to sales made in prior periods — 7 — (5 ) 3 (4 ) 1 1 Credits and payments (242 ) (2,975 ) (739 ) (4,936 ) (196 ) (206 ) (9,052 ) (9,294 ) Translation differences — 4 — 2 2 4 12 12 Balance at June 30, 2019 $ 162 $ 2,693 $ 1,170 $ 1,413 $ 595 $ 183 $ 6,054 $ 6,261 |
Accumulated other comprehensive
Accumulated other comprehensive loss | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated other comprehensive loss | NOTE 10 – Accumulated other comprehensive loss: The components of, and changes within, accumulated other comprehensive losses attributable to Teva are presented in the table below: Net Unrealized Gains (Losses) Benefit Plans Foreign Available-for- sale securities Derivative Actuarial Total (U.S. $ in millions) Balance as of December 31, 2017* $ (1,316 ) $ 1 $ (442 ) $ (91 ) $ (1,848 ) Other comprehensive income (loss) before reclassifications (495 ) — 42 — (453 ) Amounts reclassified to the statements of income — (1 ) 14 1 14 Net other comprehensive income (loss) before tax (495 ) (1 ) 56 1 (439 ) Corresponding income tax — — — (2 ) (2 ) Net other comprehensive income (loss) after tax** (495 ) (1 ) 56 (1 ) (441 ) Balance as of June 30, 2018 $ (1,811 ) $ — $ (386 ) $ (92 ) $ (2,289 ) * Following the adoption of ASU 2016-01, 5 ** Amounts do not include a $ 23 non-controlling Net Unrealized Gains (Losses) Benefit Plans Foreign Available-for- sale securities Derivative Actuarial Total (U.S. $ in millions) Balance as of December 31, 2018 $ (2,055 ) $ 1 $ (327 ) $ (78 ) $ (2,459 ) Other comprehensive income (loss) before reclassifications 111 — 22 — 133 Amounts reclassified to the statements of income — — 15 — 15 Net other comprehensive income (loss) before tax 111 — 37 — 148 Corresponding income tax — — — (1 ) (1 ) Net other comprehensive income (loss) after tax* 111 — 37 (1 ) 147 Balance as of June 30, 2019 $ (1,944 ) $ 1 $ (290 ) $ (79 ) $ (2,312 ) * Amounts do not include a $ 24 non-controlling |
Debt obligations
Debt obligations | 6 Months Ended |
Jun. 30, 2019 | |
Debt obligations | NOTE 11 – Debt obligations: a. Short-term debt: Weighted average interest rate as of June 30, 2019 Maturity June 30, 2019 December 31, 2018 (U.S. $ in millions) Bank and financial institutions 4.25 % — $ 1 $ 2 Convertible debentures 0.25 % 2026 514 514 Current maturities of long-term liabilities 2,256 1,700 Total short-term debt $ 2,771 $ 2,216 Long-term debt: Weighted average interest Maturity June 30, December 31, (U.S. $ in millions) Senior notes EUR 1,660 million 0.38% 2020 $ 1,886 $ 1,897 Senior notes EUR 1,500 million 1.13% 2024 1,697 1,707 Senior notes EUR 1,300 million 1.25% 2023 1,472 1,480 Senior notes EUR 900 million 4.50% 2025 1,023 1,029 Senior notes EUR 750 million 1.63% 2028 846 850 Senior notes EUR 700 million 3.25% 2022 796 801 Senior notes EUR 700 million 1.88% 2027 794 798 Senior notes USD 3,500 million 3.15% 2026 3,493 3,493 Senior notes USD 3,000 million 2.20% 2021 2,998 2,997 Senior notes USD 3,000 million 2.80% 2023 2,994 2,993 Senior notes USD 1,556 million (1) 1.70% 2019 1,556 1,700 Senior notes USD 2,000 million 4.10% 2046 1,985 1,985 Senior notes USD 1,250 million 6.00% 2024 1,250 1,250 Senior notes USD 1,250 million 6.75% 2028 1,250 1,250 Senior notes USD 844 million 2.95% 2022 858 860 Senior notes USD 789 million 6.15% 2036 782 782 Senior notes USD 700 million 2.25% 2020 700 700 Senior notes USD 613 million 3.65% 2021 619 621 Senior notes USD 588 million 3.65% 2021 587 587 Senior notes CHF 350 million 0.50% 2022 359 356 Senior notes CHF 350 million 1.00% 2025 359 356 Fair value hedge accounting adjustments 9 (9 ) Total senior notes 28,313 28,483 Other long-term debt 1.15% 2026 1 12 Less current maturities (2,256 ) (1,700 ) Derivative instruments (9 ) 9 Less debt issuance costs (94 ) (104 ) Total senior notes and loans $ 25,955 $ 26,700 (1) During the first six months of 2019, Teva repurchased and canceled approximately $144 million principal amount of its $1,700 million 1.7% senior notes due in July 2019. In July 2019, Teva repaid at maturity $1,556 million of its 1.7% senior notes. Long-term debt was issued by several indirect wholly-owned subsidiaries of the Company and is fully and unconditionally guaranteed by the Company as to payment of all principal, interest, discount and additional amounts, if any. Long-term debt as of June 30, 2019 is effectively denominated (taking into consideration cross currency swap agreements) in the following currencies: U.S. dollar 62%, euro 35% and Swiss franc 3%. Teva’s principal sources of short-term liquidity are its cash on hand, existing cash investments, liquid securities and available credit facilities, primarily its $2.3 billion revolving credit facility (“RCF”). In April 2019, the Company entered into a $2.3 $3 The RCF can be used for general corporate purposes, including repaying existing debt. As of June 30, 2019, no amounts were outstanding under the RCF. As of the date of this report, $500 million was outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date that these financial statements are issued. Under specified circumstances, including non-compliance with any of the covenants described above and the unavailability of any waiver, amendment or other modification thereto, the Company will not be able to borrow under the RCF. Additionally, violations of the covenants, under the above-mentioned circumstances, would result in an event of default in all borrowings under the RCF and, when greater than a specified threshold amount as set forth in each series of senior notes is outstanding, could lead to an event of default under the Company’s senior notes due to cross acceleration provisions. Teva expects that it will continue to have sufficient cash resources to support its debt service payments and all other financial obligations within one year from the date that these financial statements are issued. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurement | NOTE 12 – Fair value measurement: Teva’s financial instruments consist mainly of cash and cash equivalents, investment in securities, current and non-current receivables, short-term debt, current and non-current payables, contingent consideration, senior notes and loans, convertible senior debentures and derivatives. The fair value of the financial instruments included in working capital and non-current receivables and payables approximates their carrying value. The fair value of loans and bank facilities approximates their carrying value, since they bear interest at rates close to the prevailing market rates. Financial instruments measured at fair value The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible, and considers counterparty credit risk in its assessment of fair value. There were no transfers between Level 1, Level 2 and Level 3 during the first six months of 2019. Financial items carried at fair value as of June 30, 2019 and December 31, 2018 are classified in the tables below in one of the three categories described above: June 30, 2019 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 401 $ — $ — $ 401 Cash, deposits and other 1,764 — — 1,764 Investment in securities: Equity securities 48 — — 48 Other, mainly debt securities 5 — 13 18 Derivatives: Asset derivatives—options and forward contracts — 14 — 14 Asset derivatives cross-currency swaps 85 — 85 Liability derivatives—options and forward contracts — (55 ) — (55 ) Liability derivatives—interest rate and cross-currency swaps — (37 ) — (37 ) Contingent consideration* — — (403 ) (403 ) Total $ 2,218 $ 7 $ (390 ) $ 1,835 December 31, 2018 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 203 $ — $ — $ 203 Cash, deposits and other 1,579 — — 1,579 Investment in securities: Equity securities 51 — — 51 Other, mainly debt securities 2 — 10 12 Derivatives: Asset derivatives options and forward contracts — 18 — 18 Asset derivatives—interest rate and cross-currency swaps — 58 — 58 Liability derivatives—options and forward contracts — (26 ) — (26 ) Liability derivatives—interest rate and cross-currency swaps — (50 ) — (50 ) Contingent consideration* — — (507 ) (507 ) Total $ 1,835 $ — $ (497 ) $ 1,338 * Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. Teva determined the fair value of the liability for the contingent consideration based on a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration is based on several factors, such as: the cash flows projected from the success of unapproved product candidates; the probability of success of product candidates, including risks associated with uncertainty regarding achievement and payment of milestone events; the time and resources needed to complete the development and approval of product candidates; the life of the potential commercialized products and associated risks of obtaining regulatory approvals in the and Europe, and the risk adjusted discount rate for fair value measurement. The contingent consideration is evaluated quarterly, or more frequently, if circumstances dictate. Changes in the fair value of contingent consideration are recorded in earnings. Significant changes in unobservable inputs, mainly the probability of success and cash flows projected, could result in material changes to the contingent consideration liability. The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs: Six months ended (U.S. $ in millions) Fair value at the beginning of the period $ (497 ) Revaluation of debt securities 3 Adjustments to provisions for contingent consideration: Actavis Generics transaction 101 Eagle transaction (54 ) Settlement of contingent consideration: Eagle transaction 57 Fair value at the end of the period $ (390 ) Financial instruments not measured at fair value Financial instruments measured on a basis other than fair value mostly consist of senior notes and convertible senior debentures and are presented in the table below in terms of fair value: Fair value* June 30, December 31, (U.S. $ in millions) Senior notes included under senior notes and loans $ 22,770 $ 23,560 Senior notes and convertible senior debentures included under short-term debt 2,719 2,140 Total $ 25,489 $ 25,700 * The fair value was based on quoted market price. |
Derivative instruments and hedg
Derivative instruments and hedging activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities | NOTE 13 – Derivative instruments and hedging activities: a. Foreign exchange risk management: In the first six months of 2019, approximately 49% of Teva’s revenues were denominated in currencies other than the U.S. dollar. As a result, Teva is subject to significant foreign currency risks. The Company enters into forward exchange contracts, purchases and writes options in order to hedge the currency exposure on balance sheet items. In addition, the Company takes measures to reduce exposure by using natural hedging. The Company also acts to offset risks in opposite directions among the companies in the Group. The currency hedged items are usually denominated in the following main currencies: the new Israeli shekel (NIS), the euro (EUR), the Swiss franc (CHF), the Japanese yen (JPY), the British pound (GBP), the Canadian dollar (CAD), the Polish zloty (PLN), the Indian rupee (INR) and other European and Latin American currencies. Depending on market conditions, foreign currency risk is also managed through the use of foreign currency debt. The Company hedges against possible fluctuations in foreign subsidiaries net assets (“net investment hedge”) and entered into cross-currency swaps and forward contracts in order to hedge such an exposure. Most of the counterparties to the derivatives are major banks and the Company is monitoring the associated inherent credit risks. The Company does not enter into derivative transactions for trading purposes. b. Interest risk management: The Company raises capital through various debt instruments, including straight notes that bear a fixed or variable interest rate, bank loans, securitizations and convertible debentures. In some cases, the Company has swapped from a fixed to a floating interest rate (“fair value hedge”) and from a fixed to a fixed interest rate with an exchange from a currency other than the functional currency (“cash flow hedge”), thereby reducing overall interest expenses or hedging risks associated with interest rate fluctuations. c. Derivative instruments notional amounts The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting: June 30, December 31, (U.S. $ in millions) Cross-currency swap—cash flow hedge $ 588 $ 588 Cross-currency swap—net investment hedge 1,000 1,000 Interest rate swap—fair value hedge 500 500 $ 2,088 $ 2,088 d. Derivative instrument outstanding: The following table summarizes the classification and fair values of derivative instruments: Fair value Designated as hedging instruments Not designated as hedging instruments June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ — $ — $ 14 $ 18 Other non-current Cross-currency swaps—cash flow hedge 76 58 — — Senior notes and loans: Interest rate swaps—fair value hedge 9 — — — Liability derivatives: Other current liabilities: Option and forward contracts — — (55 ) (26 ) Cross-currency swaps—net investment hedge (37 ) — — — Other taxes and long-term liabilities: Cross-currency swaps—net investment hedge — (41 ) — — Senior notes and loans: Interest rate swaps—fair value hedge — (9 ) — — The table below provides information regarding the location and amount of pre-tax (gains) losses from derivatives designated in fair value or cash flow hedging relationships: Financial expenses, net Other comprehensive income Three month ended, Three month ended, June 30, 2019 June 30, June 30, 2019 June 30, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 206 $ 236 $ (76 ) $ 614 Cross-currency swaps—cash flow hedge (1) (1 ) * 4 (28 ) Cross-currency swaps—net investment hedge (2) (7 ) (9 ) 14 (59 ) Interest rate swaps—fair value hedge (3) 1 * — — * Represents an amount less than $0.5 million. ** Comparative figures are based on prior hedge accounting standard. Financial expenses, net Other comprehensive income Six month ended, Six month ended, June 30, 2019 June 30, June 30, 2019 June 30, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 425 $ 507 $ (170 ) $ 418 Cross-currency swaps—cash flow hedge (1) (1 ) (1 ) (15 ) (11 ) Cross-currency swaps—net investment hedge (2) (15 ) (16 ) (6 ) (29 ) Interest rate swaps—fair value hedge (3) 1 * — — * Represents an amount less than $0.5 million. ** Comparative figures are based on prior hedge accounting standard. The table below provides information regarding the location and amount of pre-tax (gains) losses from derivatives not designated as hedging instruments: Financial expenses, net Net revenues Three month ended, Three month ended, June 30, 2019 June 30, June 30, 2019 June 30, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 206 $ 236 $ (4,337 ) $ (4,701 ) Option and forward contracts (4) 34 (24 ) — — Option and forward contracts Economic hedge — — 4 (1 ) Financial expenses, net Net revenues Six month ended, Six month ended, June 30, 2019 June 30, 2018 June 30, 2019 June 30, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 425 $ 507 $ (8,632 ) $ (9,766 ) Option and forward contracts (4) (7 ) (5 ) — — Option and forward contracts Economic hedge — — 4 (1 ) (1) With respect to cross-currency swap agreements, Teva recognized gains which mainly reflect the differences between the fixed interest rate and the floating interest rate. (2) In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500 million maturing in 2020. These cross currency swaps were designated as a net investment hedge of Teva’s foreign subsidiaries euro denominated net assets, in order to reduce the risk of adverse exchange rate fluctuations. With respect to these cross currency swap agreements, Teva recognized gains which mainly reflect the differences between the float-for-float (3) In the fourth quarter of 2016, Teva entered into an interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. With respect to this interest rate swap agreement, Teva recognized a loss which mainly reflects the differences between the fixed interest rate and the floating interest rate. (4) Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses—net. e. Matured forward starting interest rate swaps and treasury lock agreements: Commencing in the third quarter of 2015, Teva entered into forward starting interest rate swap and treasury lock agreements designated as cash flow hedges of the U.S. dollar debt issuance in July 2016, with respect to $3.75 billion and $1.5 billion notional amounts, respectively. These agreements hedged the variability in anticipated future interest payments due to possible changes in the benchmark interest rate between the date the agreements were entered into and the actual date of the U.S. dollar debt issuance in July 2016 (in connection with the closing of the Actavis Generics acquisition). Certain of the forward starting interest rate swaps and treasury lock agreements matured during the first half of 2016. In July 2016, in connection with the debt issuances, Teva terminated the remaining forward starting interest rate swaps and treasury lock agreements. The termination of these transactions resulted in a loss position of $493 million, of which $242 million were settled on October 7, 2016 and the remaining amount was settled in January 2017. The change in fair value of these instruments recorded in other comprehensive income (loss) will be amortized under financial expenses-net With respect to the forward starting interest rate swaps and treasury lock agreements, In the third quarter of 2016, Teva terminated interest rate swap agreements designated as fair value hedge relating to its 2.95% senior notes due 2022 with respect to $844 million notional amount and its 3.65% senior notes due 2021 with respect to $450 million notional amount. Settlement of these transactions resulted in a gain position of $41 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses-net With respect to the interest rate swap agreements, gains of $ |
Other assets impairments, restr
Other assets impairments, restructuring and other items | 6 Months Ended |
Jun. 30, 2019 | |
Other assets impairments, restructuring and other items | NOTE 14 – Other assets impairments, restructuring and other items: Three months ended Six months ended 2019 2018 2019 2018 (U.S. $ in millions) Impairments of long-lived tangible assets (1) $ 48 $ 27 $ 68 $ 253 Contingent consideration 24 47 (47 ) 55 Restructuring 47 107 79 354 Other (18 ) 13 3 33 Total $ 101 $ 194 $ 103 $ 695 (1) Including impairments related to exit and disposal activities Impairments Impairments of property, plant and equipment for the three months ended on June 30, 2019 and 2018 were $ Impairments of property, plant and equipment for the six months ended on June 30, 2019 and 2018 were $68 million and $253 million, respectively. As a result of Teva’s plant rationalization acceleration in connection with the two-year restructuring plan announced in December 2017, to the extent the Company changes its plans on any given asset and/or the assumptions underlying such plans, there may be additional impairments in the future. Contingent consideration In the three months ended June 30, 2019, Teva recorded $24 million for contingent consideration, compared to an expense of $47 ® In the six months ended June 30, 2019, Teva recorded $47 million of contingent consideration income, compared to $55 million expense in the six months ended June 30, 2018. The income in the first six months of 2019 mainly related to the decrease in the expected royalty payments in connection with lenalidomide (generic equivalent of Revlimid ® Restructuring In the three months ended June 30, 2019, Teva recorded $47 million of restructuring expenses, compared to $107 million in the three months ended June 30, 2018. In the six months ended June 30, 2019, Teva recorded $79 million of restructuring expenses, compared to $354 million in the six months ended June 30, 2018. Since the announcement of its restructuring plan, Teva reduced its global headcount by approximately 11,145 full-time-equivalent employees. During the three months ended June 30 , 2019 and 2018 , Teva recorded impairments of property, plant and equipment related to restructuring costs of $21 million and $8 million, respectively. During the six months ended June 30 , 2019 and 2018 , Teva recorded impairments of property, plant and equipment related to restructuring costs of $21 million and $155 million, respectively. The following tables provide the components of costs associated with Teva’s restructuring plan, including other costs associated with Teva’s restructuring plan and recorded under different items: Three months ended June 30, 2019 2018 (U.S. $ in millions) Restructuring Employee termination $ 36 $ 90 Other 11 17 Total $ 47 $ 107 Six months ended June 30, 2019 2018 (U.S. $ in millions) Restructuring Employee termination $ 56 $ 318 Other 23 36 Total $ 79 $ 354 The following table provides the components of and changes in the Company’s restructuring accruals: Employee Other Total (U.S. $ in millions ) Balance as of January 1, 2019 $ (204 ) $ (29 ) $ (233 ) Provision (56 ) (23 ) (79 ) Utilization and other* 67 45 112 Balance as of June 30, 2019 $ (193 ) $ (7 ) $ (200 ) * Includes adjustments for foreign currency translation. Significant regulatory events In July 2018, the FDA completed an inspection of Teva’s manufacturing plant in Davie, Florida in the United States, and issued a Form FDA-483 In July 2018, Teva announced the voluntary recall of valsartan and certain combination valsartan medicines in various countries due to the detection of trace amounts of a previously unknown impurity called NDMA found in valsartan API supplied to Teva by Zhejiang Huahai Pharmaceutical. Since July 2018, Teva has been actively engaged with regulatory agencies around the world in reviewing its valsartan and other sartan products for NDMA and other related impurities and, where necessary, has initiated additional voluntary recalls. The impact of this recall on Teva’s financial statements was $55 million, primarily related to inventory reserves . Teva expects to continue to experience loss of revenues and profits in connection with this matter. In addition, multiple lawsuits have been filed in connection with this matter, for which litigation costs are currently being incurred. Teva may also incur additional customer penalties, impairments and litigation costs going forward. |
Legal Settlements and Loss Cont
Legal Settlements and Loss Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Legal Settlements and Loss Contingencies | NOTE 15 – Legal settlements and loss contingencies: In the second quarter of 2019, Teva recorded an expense of $646 million in legal , compared to $20 million in the second quarter of 2018. The expense in the second quarter of 2019 was mainly related to the $85 million settlement paid in the opioid litigation brought by the Oklahoma Attorney General and an estimated provision made certain other opioid cases. In , Teva recorded in legal settlements and loss contingencies was mainly $85 million settlement paid in the opioid litigation brought by the Oklahoma Attorney General and an estimated provision made for certain other opioid cases As of June 30, 2019 and December 31, 2018, Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses was $1,149 million and $562 million, respectively. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and contingencies | NOTE 16 – Commitments and contingencies: General From time to time, Teva and/or its subsidiaries are subject to claims for damages and/or equitable relief arising in the ordinary course of business. In addition, as described below, in large part as a result of the nature of its business, Teva is frequently subject to litigation. Teva generally believes that it has meritorious defenses to the actions brought against it and vigorously pursues the defense or settlement of each such action. Except as described below, Teva does not currently have a reasonable basis to estimate the loss, or range of loss, that is reasonably possible with respect to matters disclosed in this note. Teva records a provision in its financial statements to the extent that it concludes that a contingent liability is probable and the amount thereof is estimable. Based upon the status of the cases described below, management’s assessments of the likelihood of damages, and the advice of counsel, no provisions have been made regarding the matters disclosed in this note, except as noted below. Litigation outcomes and contingencies are unpredictable, and excessive verdicts can occur. Accordingly, management’s assessments involve complex judgments about future events and often rely heavily on estimates and assumptions. Teva continuously reviews the matters described below and may, from time to time, remove previously disclosed matters that the Company has determined no longer meet the materiality threshold for disclosure. If one or more of such proceedings described below were to result in final judgments against Teva, such judgments could be material to its results of operations and cash flows in a given period. In addition, Teva incurs significant legal fees and related expenses in the course of defending its positions even if the facts and circumstances of a particular litigation do not give rise to a provision in the financial statements. In connection with third-party agreements, Teva may under certain circumstances be required to indemnify, and may be indemnified by, in unspecified amounts, the parties to such agreements against third-party claims. Among other things, Teva’s agreements with third parties may require Teva to indemnify them, or require them to indemnify Teva, for the costs and damages incurred in connection with product liability claims, in specified or unspecified amounts. Except as otherwise noted, all of the litigation matters disclosed below involve claims arising in the United States. Except as otherwise noted, all third party sales figures given below are based on IQVIA (formerly IMS Health Inc.) data. For income tax contingencies, see note 15 to Teva’s Annual Report on Form 10-K for the year ended December 31, 2018. Intellectual Property Litigation From time to time, Teva seeks to develop generic versions of patent-protected pharmaceuticals for sale prior to patent expiration in various markets. In the United States, to obtain approval for most generics prior to the expiration of the originator’s patents, Teva must challenge the patents under the procedures set forth in the Hatch-Waxman Act of 1984, as amended. To the extent that Teva seeks to utilize such patent challenge procedures, Teva is and expects to be involved in patent litigation regarding the validity, enforceability or infringement of the originator’s patents. Teva may also be involved in patent litigation involving the extent to which its product or manufacturing process techniques may infringe other originator or third-party patents. Additionally, depending upon a complex analysis of a variety of legal and commercial factors, Teva may, in certain circumstances, elect to market a generic version even though litigation is still pending. To the extent Teva elects to proceed in this manner, it could face substantial liability for patent infringement if the final court decision is adverse to Teva, which could be material to its results of operations and cash flows in a given period. The general rule for damages in patent infringement cases in the United States is that the patentee should be compensated by no less than a reasonable royalty and it may also be able, in certain circumstances, to be compensated for its lost profits. The amount of a reasonable royalty award would generally be calculated based on the sales of Teva’s product. The amount of lost profits would generally be based on the lost sales of the patentee’s product. In addition, the patentee may seek consequential damages as well as enhanced damages of up to three times the profits lost by the patent holder for willful infringement, although courts have typically awarded much lower multiples. Teva is also involved in litigation regarding patents in other countries where it does business, particularly in Europe. The laws concerning generic pharmaceuticals and patents differ from country to country. Damages for patent infringement in Europe may include lost profits or a reasonable royalty, but enhanced damages for willful infringement are generally not available. In July 2014, GlaxoSmithKline (“GSK”) sued Teva in Delaware federal court for infringement of a patent expiring in June 2015 directed to using carvedilol in a specified manner to decrease the risk of mortality in patients with congestive heart failure. Teva and eight other generic producers began selling their carvedilol tablets (the generic version of GSK’s Coreg ® ) in September 2007. A jury trial was held and the jury returned a verdict in GSK’s favor finding Teva liable for induced infringement, including willful infringement, and assessing damages of $235.5 million, not including pre- or post-judgment interest. Following post-trial motions filed by the parties, on March 28, 2018, the district court issued an opinion overturning the jury verdict and instead found no induced infringement by Teva, thereby finding that Teva did not owe any damages; the district court also denied Teva’s motion seeking to overturn the jury verdict with respect to invalidity. On May 25, 2018, both parties filed an appeal. A hearing is scheduled for September 4, 2019. If the appeal of the district court’s decision is decided against Teva, the case would be remanded to the district court for it to consider Teva’s other legal and equitable defenses that have not yet been considered by the district court. The provision that was included in the financial statements for this matter was reversed as the exposure is no longer considered probable. In 2014, Teva Canada succeeded in its challenge of the bortezomib (the generic equivalent of Velcade ® ) product and mannitol ester patents under the Patented Medicines (Notice Of Compliance) Regulations (“PM(NOC)”). At the time of Teva’s launch in 2015, annual sales of Velcade were approximately 94 million Canadian dollars. Additionally, Teva commenced an action under Section 8 of PM(NOC) to recover damages for being kept off of the market during the PM(NOC) proceedings. Janssen and Millennium filed a counterclaim for infringement of the same two patents as well as a patent covering a process to prepare bortezomib. The product patent expired in October 2015; the other patents expire in January 2022 and March 2025. In 2017, Teva entered into an agreement with Janssen and Millennium which limits the damages payable by either party depending on the outcome of the infringement/impeachment action. As a result, the most Janssen and Millennium could recover is 200 million Canadian dollars plus post-judgment interest. In June 2018, the court ruled that Janssen and Millennium pay Teva 5 million Canadian dollars in Section 8 damages. Janssen and Millennium filed an appeal, and oral argument in that appeal is scheduled for September 9 , 2019 . If the decision is overturned on appeal, Teva could owe the capped damages set forth above. In addition to the potential damages that could be awarded, Teva could be ordered to cease sales of its bortezomib product. On July 8, 2011, Helsinn sued Teva over its filing of an ANDA to market a generic version of palonosetron IV solution (the generic equivalent of Aloxi ® ) and in November 2015, the U.S. District Court for the District of New Jersey ruled against Teva. Teva appealed this decision and, in May 2017, the Federal Circuit Court of Appeals reversed the district court’s ruling and found the asserted patents invalid. In January 2018, full appellate review of that decision was denied. Helsinn filed an appeal with the U.S. Supreme Court, which was granted. On January 22, 2019, the Supreme Court affirmed the appellate court’s decision finding the asserted patent invalid. Helsinn has no further opportunity to appeal this patent decision. Separately, in October 2014, Helsinn filed an additional claim on later-acquired patents. On January 30, 2018, the district court denied Helsinn’s request for a preliminary injunction based on these later acquired patents. Teva launched its generic palonosetron IV solution after obtaining final regulatory approval on March 23, 2018. If Teva ultimately loses the case on the later-acquired patents discussed above, Teva may be ordered to cease sales of its generic product and/or pay damages to Helsinn. Aloxi ® annual U.S. sales as of November 2017 were $459 million. In July 2015, Janssen sued Actavis and Teva (along with 10 other filers) over their filing of an ANDA to market their abiraterone acetate tablets, 250mg (generic versions of Zytiga ® ). In August 2017, Janssen sued Teva over its ANDA filing to market a 500mg generic version of Zytiga. In both cases, Janssen asserted a method of treatment patent. In January 2018, following a petition for inter partes review, the Patent Trials and Appeals Board (“PTAB”) found the patent to be invalid. In October 2018, the District Court for the District of New Jersey also found the patent to be invalid. Teva launched its generic 250mg product in November 2018. On May 14, 2019, the U.S. Court of Appeals affirmed that Janssen’s patent is invalid. That decision became final on June 20, 2019. Janssen may seek U.S. Supreme Court review of this decision. If Teva ultimately loses this case, Teva may be ordered by the court to cease sales of its generic product and/or pay damages to Janssen. Annual U.S. sales of Zytiga at the time of generic entry were about $ 1.3 billion. Product Liability Litigation Teva’s business inherently exposes it to potential product liability claims. Teva maintains a program of insurance, which may include commercial insurance, self-insurance (including direct risk retention), or a combination of both approaches, in amounts and on terms that it believes are reasonable and prudent in light of its business and related risks. However, Teva sells, and will continue to sell, pharmaceuticals that are not covered by its product liability insurance; in addition, it may be subject to claims for which insurance coverage is denied as well as claims that exceed its policy limits. Product liability coverage for pharmaceutical companies is becoming more expensive and increasingly difficult to obtain. As a result, Teva may not be able to obtain the type and amount of insurance it desires, or any insurance on reasonable terms, in all of its markets. Competition Matters As part of its generic pharmaceuticals business, Teva has challenged a number of patents covering branded pharmaceuticals, some of which are among the most widely-prescribed and well-known drugs on the market. Many of Teva’s patent challenges have resulted in litigation relating to Teva’s attempts to market generic versions of such pharmaceuticals under the federal Hatch-Waxman Act. Some of this litigation has been resolved through settlement agreements in which Teva obtained a license to market a generic version of the drug, often years before the patents expire. Teva and its subsidiaries have increasingly been named as defendants in cases that allege antitrust violations arising from such settlement agreements. The plaintiffs in these cases, which are usually direct and indirect purchasers of pharmaceutical products, and often assert claims on behalf of classes of all direct and indirect purchasers, typically allege that (1) Teva received something of value from the innovator in exchange for an agreement to delay generic entry, and (2) significant savings could have been realized if there had been no settlement agreement and generic competition had commenced earlier. These class action cases seek various forms of injunctive and monetary relief, including damages based on the difference between the brand price and what the generic price allegedly would have been and disgorgement of profits, which are automatically tripled under the relevant statutes, plus attorneys’ fees and costs. The alleged damages generally depend on the size of the branded market and the length of the alleged delay, and can be substantial—potentially measured in multiples of the annual brand sales—particularly where the alleged delays are lengthy or branded drugs with annual sales in the billions of dollars are involved. Teva believes that its settlement agreements are lawful and serve to increase competition, and has defended them vigorously. In Teva’s experience to date, these cases have typically settled for a fraction of the high end of the damages sought, although there can be no assurance that such outcomes will continue. In June 2013, the U.S. Supreme Court held, in Federal Trade Commission v. Actavis, Inc. (the “AndroGel case”), that a rule of reason test should be applied in analyzing whether such settlements potentially violate the federal antitrust laws. The Supreme Court held that a trial court must analyze each agreement in its entirety in order to determine whether it violates the antitrust laws. This new test has resulted in increased scrutiny of Teva’s patent settlements, additional action by the FTC and state and local authorities, and an increased risk of liability in Teva’s currently pending antitrust litigations. In April 2006, certain subsidiaries of Teva were named in a class action lawsuit filed in the U.S. District Court for the Eastern District of Pennsylvania. The case alleges that the settlement agreements entered into between Cephalon, Inc., now a Teva subsidiary (“Cephalon”), and various generic pharmaceutical companies in late 2005 and early 2006 to resolve patent litigation involving certain finished modafinil products (marketed as PROVIGIL ® ) were unlawful because they had the effect of excluding generic competition. The case also alleges that Cephalon improperly asserted its PROVIGIL patent against the generic pharmaceutical companies. The first lawsuit was filed by a purported class of direct purchasers. Similar complaints were also filed by a purported class of indirect purchasers, certain chain pharmacies and by Apotex, Inc. (collectively, these cases are referred to as the “Philadelphia Modafinil Action”). Separately, Apotex challenged Cephalon’s PROVIGIL patent and, in October 2011, the court found the patent to be invalid and unenforceable based on inequitable conduct. Teva has either settled or reached agreements in principle to settle with all of the plaintiffs in the Philadelphia Modafinil Action. Additionally, Cephalon and Teva reached a settlement with 48 state attorneys general, which was approved by the court on November 7, 2016, and on July 23, 2019, reached a settlement with the State of California, which is pending court approval. In May 2015 , Cephalon entered into a consent decree with the FTC (the “Modafinil Consent Decree”) under which the FTC dismissed its claims against Cephalon in the FTC Modafinil Action in exchange for payment of $1.2 billion (less set-offs for prior settlements) by Cephalon and Teva into a settlement fund. The settlement fund does not cover any judgments or settlements outside the United States. Under the Modafi n i l Consent Decree, Teva also agreed to certain injunctive relief with respect to the types of settlement agreements Teva may enter into to resolve patent litigation in the United States for a period of ten years. In February 2019 , in connection with the settlement of other unrelated FTC a ntitrust lawsuits, as described below, Teva and the FTC agreed to amend certain provisions of the Modafinil Consent Decree and to restart its ten-year term. Additionally, following an investigation initiated by the European Commission in April 2011 reg arding a modafinil patent settlement in Europe, the European Commission issued a Statement of Objections in July 2017 against both Cephalon and Teva alleging that the 2005 settlement agreement between the parties had the object and effect of hindering the entry of generic modafinil. No final decision regarding infringement has yet been taken by the European Commission. The sales of modafinil in the European Economic Area during the last full year of the alleged infringement amounted to EUR 46.5 million. In January 2009, the FTC and the State of California filed a complaint for injunctive relief in California federal court alleging that a September 2006 patent lawsuit settlement between Watson Pharmaceuticals, Inc. (“Watson”), now a Teva subsidiary, and Solvay Pharmaceuticals, Inc. (“Solvay”) relating to AndroGel ® 1% (testosterone gel) violated the antitrust laws. Additional lawsuits alleging similar claims were later filed by private plaintiffs (including plaintiffs purporting to represent classes of similarly situated claimants as well as retailer plaintiffs filing separately) and the various actions were consolidated in a multidistrict litigation in Georgia federal court. On July 16, 2018, the direct purchaser plaintiffs’ motion for class certification was denied. As a result, the three direct purchasers that had sought class certification can proceed as individual plaintiffs, but any other member of the proposed direct purchaser class will need to file a separate, individual lawsuit if it wishes to participate in the litigation. On February 22, 2019, the FTC stipulated to the dismissal of its claims against Watson, in exchange for Teva’s agreement to amend the Modafinil Consent Decree, as described above. Teva settled with most of the retailer plaintiffs in April 2019. Trial on the remaining private plaintiffs’ claims has been scheduled to begin in February 2020. Annual sales of AndroGel ® 1% were approximately $ 350 million at the time of the settlement and approximately $ 140 million at the time Actavis launched its generic version of AndroGel ® 1% in November 2015. A provision for this case was included in the financial statements. In December 2011, three groups of plaintiffs sued Wyeth and Teva for alleged violations of the antitrust laws in connection with their settlement of patent litigation involving extended release venlafaxine (generic Effexor XR ® ) entered into in November 2005. The cases were filed by a purported class of direct purchasers, by a purported class of indirect purchasers and by certain chain pharmacies in the U.S. District Court for the District of New Jersey. The plaintiffs claim that the settlement agreement between Wyeth and Teva unlawfully delayed generic entry. In October 2014, the court granted Teva’s motion to dismiss in the direct purchaser cases, after which the parties agreed that the court’s reasoning applied equally to the indirect purchaser cases. Plaintiffs appealed and, in August 2017, the Third Circuit reversed the district court’s decision and remanded for further proceedings. Annual sales of Effexor XR ® were approximately $2.6 billion at the time of settlement and at the time Teva launched its generic version of Effexor XR ® in July 2010. In February 2012, two purported classes of direct-purchaser plaintiffs sued GSK and Teva in New Jersey federal court for alleged violations of the antitrust laws in connection with their settlement of patent litigation involving lamotrigine (generic Lamictal ® ) entered into in February 2005. The plaintiffs claim that the settlement agreement unlawfully delayed generic entry and seek unspecified damages. In December 2012, the court dismissed the case, but in June 2015, the U.S. Court of Appeals for the Third Circuit reversed and remanded for further proceedings. In December 2018, the court granted the direct-purchaser plaintiffs’ motion for class certification. On March 18, 2019, the appeals court granted the defendants’ petition for immediate appellate review and the district court has stayed the litigation pending the outcome of the appeal. Annual sales of Lamictal ® were approximately $950 million at the time of the settlement and approximately $2.3 billion at the time Teva launched its generic version of Lamictal ® in July 2008. In April 2013, purported classes of direct purchasers of, and end payers for, Niaspan ® (extended release niacin) sued Teva and Abbott for violating the antitrust laws by entering into a settlement agreement in April 2005 to resolve patent litigation over the product. A multidistrict litigation has been established in the U.S. District Court for the Eastern District of Pennsylvania. Throughout 2015 and in January 2016, several individual direct purchaser opt-out plaintiffs filed complaints with allegations nearly identical to those of the direct purchaser class and, in December 2018, both the direct-purchaser class plaintiffs and indirect-purchaser class plaintiffs filed motions for class certification, which remain pending. In October 2016, the District Attorney for Orange County, California, filed a similar complaint, which has since been amended, in California state court, alleging violations of state law. Defendants moved to strike the District Attorney’s claims for restitution and civil penalties to the extent not limited to alleged activity occurring in Orange County. The Superior Court denied that motion. The Court of Appeal subsequently reversed the decision and review of the Appellate Court decision is now pending before the California Supreme Court. Annual sales of Niaspan ® were approximately $416 million at the time of the settlement and approximately $1.1 billion at the time Teva launched its generic version of Niaspan ® in September 2013. In November 2013, a putative class action was filed in Pennsylvania federal court against Actavis, Inc. and certain of its affiliates, alleging that Watson’s 2012 patent lawsuit settlement with Endo Pharmaceuticals Inc. relating to Lidoderm ® (lidocaine transdermal patches) violated the antitrust laws. Additional lawsuits containing similar allegations followed on behalf of other classes of putative direct purchaser and end-payer plaintiffs, as well as retailers acting in their individual capacities, and those cases were consolidated as a multidistrict litigation in federal court in California. On February 21, 2017, the court granted both the indirect purchaser plaintiffs’ and the direct purchaser plaintiffs’ motions for class certification. Teva settled the multidistrict litigation with the various plaintiff groups in the first quarter of 2018 and a provision was included in the financial statements. The FTC also filed suit to challenge the Lidoderm ® settlement, initially bringing antitrust claims against Watson, Endo and Allergan in Pennsylvania federal court in March 2016. The FTC later voluntarily dismissed those claims and refiled them (along with a stipulated order for permanent injunction to settle its claims against Endo) in the same California federal court in which the private multidistrict litigation referenced above was pending. On February 3, 2017, the State of California filed its own complaint against Allergan and Watson, and that complaint was also assigned to the California federal court presiding over the multidistrict litigation. On February 22, 2019, the FTC dismissed its claims against Actavis and Allergan, in exchange for Teva’s agreement to amend the Modafinil Consent Decree, as described above. On July 23, 2019 Teva and the State of California reached a settlement agreement. Since November 2013, numerous lawsuits have been filed in various federal courts by purported classes of end payers for, and direct purchasers of, Aggrenox ® (dipyridamole/aspirin tablets) against Boehringer Ingelheim (“BI”), the innovator, and several Teva subsidiaries. The lawsuits allege, among other things, that the settlement agreement between BI and Barr entered into in August 2008 violated the antitrust laws. A multidistrict litigation has been established in the U.S. District Court for the District of Connecticut. On April 11, 2017, the Orange County District Attorney filed a complaint for violations of California’s Unfair Competition Law based on the Aggrenox ® patent litigation settlement. Teva has settled with the putative classes of direct purchasers and end payers, as well as with the opt-out direct purchaser plaintiffs, and with two of the opt-out end payer plaintiffs. A provision with respect to the settlements was included in the financial statements. The district court overruled certain objections to the end payer settlement, including objections made by the Orange County District Attorney, and approved the settlement. The District Attorney subsequently appealed the court’s approval to the Second Circuit. Opt-outs from the end payer class have also appealed certain aspects of the court’s approval order to the U.S. Court of Appeals for the Second Circuit. Those appeals remain pending. Annual sales of Aggrenox ® were approximately $340 million at the time of the settlement and approximately $455 million at the time Teva launched its authorized generic version of Aggrenox ® in July 2015. Since January 2014, numerous lawsuits have been filed in the U.S. District Court for the Southern District of New York by purported classes of end payers for, and direct purchasers of, Actos ® and Actoplus Met (pioglitazone and pioglitazone plus metformin) against Takeda, the innovator, and several generic manufacturers, including Teva, Actavis and Watson. The lawsuits allege, among other things, that the settlement agreements between Takeda and the generic manufacturers violated the antitrust laws. The court dismissed the end payer lawsuits against all defendants in September 2015. On February 8, 2017, the Court of Appeals for the Second Circuit affirmed the dismissal in part and vacated and remanded the dismissal in part with respect to the claims against Takeda. The direct purchasers’ case had been stayed pending resolution of the appeal in the end payer matter and the direct purchasers amended their complaint for a second time following the Second Circuit’s decision. Defendants moved to dismiss the direct purchasers’ complaint, and that motion remains pending. At the time of the settlement, annual sales of Actos ® and Actoplus Met were approximately $3.7 billion and approximately $500 million, respectively. At the time Teva launched its authorized generic version of Actos ® and Actoplus Met in August 2012, annual sales of Actos ® and Actoplus Met were approximately $2.8 billion and approximately $430 million, respectively. In September 2014, the FTC sued AbbVie Inc. and certain of its affiliates (“AbbVie”) as well as Teva in the U.S. District Court for the Eastern District of Pennsylvania alleging that they violated the antitrust laws when they entered into a settlement agreement to resolve the AndroGel ® patent litigation and a supply agreement under which AbbVie agreed to supply Teva with an authorized generic version of TriCor ® . The FTC alleges that Teva agreed to delay the entry of its generic testosterone gel product in exchange for entering into the TriCor supply agreement. In May 2015, the court dismissed the FTC’s claim concerning the settlement and supply agreements, and thus dismissed Teva from the case entirely. The FTC proceeded with a separate claim against AbbVie alone and in June 2018, following a bench trial, the court held that AbbVie had violated the antitrust laws by filing sham patent infringement lawsuits against both Teva and Perrigo in the underlying AndroGel patent litigation. The court ordered AbbVie to pay $448 million in disgorgement but declined to award injunctive relief. The FTC filed a notice of appeal as to, among other things, the district court’s May 2015 dismissal of the FTC’s claim against Teva, but in February 2019, the FTC stipulated to dismiss Teva from its appeal, in exchange for Teva’s agreement to amend the Modafinil Consent Decree, as described above. In May 2015, a purported class of end payers for Namenda IR ® (memantine hydrochloride) filed a lawsuit against Forest Laboratories, LLC (“Forest”), the innovator, and several generic manufacturers, including Teva. The lawsuit alleges, among other things, that settlement agreements between Forest and the generic manufacturers to resolve patent litigation over Namenda IR ® violated the antitrust laws. Annual sales of Namenda IR ® at the time of the settlement were approximately $1.1 billion and approximately $550 million at the time other manufacturers first launched generic versions of Namenda IR ® in July 2015. On December 16, 2016, the U.K. Competition and Markets Authority (“CMA”) issued a statement of objections (a provisional finding of infringement of the Competition Act) in respect of certain allegations against Allergan, Actavis UK and certain Auden Mckenzie entities alleging competition law breaches in connection with the supply of 10mg and 20mg hydrocortisone tablets in the U.K. On December 18, 2017, the CMA issued a Statement of Draft Penalty Calculation. No final decision regarding infringement of competition law has yet been issued. On March 3, 2017, the CMA issued a second statement of objections in respect of certain additional allegations (relating to the same products and covering part of the same time period as in the first statement of objections) against Actavis UK, Allergan and certain Auden Mckenzie entities. On February 28, 2019, the CMA issued a third statement of objections with allegations of additional infringements relating to the supply of 10mg and 20mg hydrocortisone tablets in the U.K against certain Auden Mckenzie entities and others. On January 9, 2017 , Teva completed the sale of Actavis UK to Accord Healthcare Limited, pursuant to which Teva will indemnify Accord Healthcare for potential fines imposed by the CMA and/or damages awarded by a court against Actavis UK in relation to the December 18 , 2017 and March 3 , 2017 statements of objections, and resulting from conduct prior to the closing date of the sale. In addition, Teva agreed to indemnify Allergan against losses arising from this matter, pursuant to the agreement the parties entered into on January 31 , 2018 . See note 3 . In the event of any such fines or damages, Teva expects to assert claims, including claims for breach of warranty, against the sellers of Auden Mckenzie. The terms of the purchase agreement may preclude a full recovery by Teva. A liability for this matter has been recorded in purchase accounting related to the acquisition of Actavis Generics. Since November 2016, several putative indirect purchaser and direct purchaser class actions were filed in federal courts in Wisconsin, Massachusetts and Florida against Shire U.S., Inc. and Shire LLC (collectively, “Shire”), Actavis and Teva, alleging that Shire’s 2013 patent litigation settlement with Actavis related to the ADHD drug Intuniv ® (guanfacine) violated various state consumer protection and antitrust laws. All cases are now in Massachusetts federal court. Annual sales of Intuniv ® were approximately $ 335 million at the time of the settlement and approximately $ 327 million at the time Actavis launched its generic version of Intuniv ® in 2014. In January 2019, generic manufacturer Cipla Limited filed a lawsuit against Amgen in Delaware federal court, alleging, among other things, that a January 2, 2019 settlement agreement between Amgen and Teva, resolving patent litigation over cinacalcet (generic Sensipar ® ), violated the antitrust laws. In March 2019, Cipla Limited amended its complaint to name Teva as an additional defendant, and putative classes of direct-purchaser and end-payer plaintiffs have also filed antitrust lawsuits in U.S. federal district court against Amgen and Teva related to the January 2, 2019 settlement. Both Cipla Limited and the putative class plaintiffs seek damages and injunctive relief. Annual sales of Sensipar ® in the United States were approximately $1.4 billion at the time Teva launched its generic version of Sensipar ® in December 2018, and at the time of the January 2, 2019 settlement. Government Investigations and Litigation Relating |
Segments
Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segments | NOTE 17 – Segments: Teva operates its business and reports its financial results in three segments: (a) North America segment, which includes the United States and Canada. (b) Europe segment, which includes the European Union and certain other European countries. (c) International Markets segment, which includes all countries other than those in the North America and Europe segments. The Company began reporting its financial results under this structure in the first quarter of 2018. This change was reflected through retroactive revision of prior period segment information. In addition to these three segments, Teva has other sources of revenues, 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 North America, Europe and International Markets, to make decisions about resources to be allocated to the segments and assess their performance. Segment profit is comprised of gross profit for the segment less R&D expenses, S&M expenses, G&A expenses and other 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. Any 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. a. Segment information: Three months ended June 30, 2019 North America Europe International Markets (U.S. $ in millions) Revenues $ 2,071 $ 1,183 $ 741 Gross profit 1,067 674 312 R&D expenses 175 70 24 S&M expenses 269 216 119 G&A expenses 117 70 34 Other (income) expense 2 1 (1 ) Segment profit $ 504 $ 316 $ 136 Three months ended June 30, 2018 North America Europe International Markets (U.S. $ in millions) Revenues $ 2,263 $ 1,328 $ 789 Gross profit 1,179 727 328 R&D expenses 182 73 25 S&M expenses 272 233 130 G&A expenses 103 78 37 Other (income) (100 ) (3 ) (3 ) Segment profit $ 722 $ 346 $ 139 Six months ended June 30, 2 North America Europe International Markets (U.S. $ in millions) Revenues $ 4,118 $ 2,448 $ 1,409 Gross profit 2,107 1,404 582 R&D expenses 340 136 46 S&M expenses 537 431 234 G&A expenses 230 119 70 Other (income) expense (2 ) (1 ) (1 ) Segment profit $ 1,001 $ 719 $ 233 Six months ended June 30, 2018 North America Europe International Markets (U.S. $ in millions) Revenues $ 4,794 $ 2,770 $ 1,539 Gross profit 2,582 1,519 641 R&D expenses 370 146 49 S&M expenses 548 483 264 G&A expenses 229 169 78 Other (income) expense (202 ) (2 ) (11 ) Segment profit $ 1,637 $ 723 $ 261 Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (U.S. $ in millions) (U.S. $ in millions) North America profit $ 504 $ 722 $ 1,001 $ 1,637 Europe profit 316 346 719 723 International Markets profit 136 139 233 261 Total segment profit 956 1,207 1,954 2,621 Profit of other activities 55 31 76 52 1,011 1,238 2,029 2,673 Amounts not allocated to segments: Amortization 285 302 568 612 Other assets impairments, restructuring and other items 101 194 103 695 Goodwill impairment — 120 — 300 Intangible asset impairments 561 521 1,030 727 (Gain) loss on divestitures, net of divestitures related costs (9 ) 10 (9 ) (83 ) Other R&D expenses § — § 22 Costs related to regulatory actions taken in facilities 12 4 16 5 Legal settlements and loss contingencies 646 20 703 (1,258 ) Other unallocated amounts 59 81 129 142 Consolidated operating income (loss) (644 ) (14 ) (510 ) 1,511 Financial expenses, net 206 236 425 507 Consolidated income (loss) before income taxes $ (850 ) $ (250 ) $ (934 ) $ 1,004 § Represents an amount less than $1 million. b. Segment revenues by major products and activities: The following tables present revenues by major products and activities for the three months and the six months ended June 30, 20 Three months ended June 30, 2019 2018 (U.S. $ in millions) North America Generic products $ 946 $ 947 COPAXONE 274 464 TREANDA/BENDEKA 115 160 ProAir* 65 115 QVAR 60 30 AJOVY 23 — AUSTEDO 96 44 Anda 351 320 Other 141 183 Total $ 2,071 $ 2,263 * Does not include sales of ProAir authorized generic, which are included under generics. Six months ended June 30, 2019 2018 (U.S. $ in millions) North America Generic prod uct $ 1,913 $ 2,035 COPAXONE 482 940 TREANDA/BENDEKA 229 341 ProAir* 123 245 QVAR 124 137 AJOVY 43 — AUSTEDO 171 74 Anda 729 651 Other 305 372 Total $ 4,118 $ 4,794 * Does not include sales of ProAir authorized generic, which are included under generics. Three months ended June 30, 2019 2018 (U.S. $ in millions) Europe Generic products $ 844 $ 907 COPAXONE 107 140 Respiratory products 89 106 Other 143 175 Total $ 1,183 $ 1,328 Six months ended June 30, 2019 2018 (U.S. $ in millions) Europe Generic products $ 1,763 $ 1,904 COPAXONE 221 293 Respiratory products 181 219 Other 283 354 Total $ 2,448 $ 2,770 Three months ended June 30, 2019 2018 (U.S. $ in millions) International markets Generic products $ 489 $ 537 COPAXONE 13 22 Distribution 164 154 Other 75 76 Total $ 741 $ 789 Six months ended June 30, 2019 2018 (U.S. $ in millions) International markets Generic products $ 930 $ 1,025 COPAXONE 27 38 Distribution 315 307 Other 137 168 Total $ 1,409 $ 1,539 |
Other income
Other income | 6 Months Ended |
Jun. 30, 2019 | |
Other income | NOTE 18 – Other income: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (U.S. $ in millions) (U.S. $ in millions) Gain (loss) on divestitures, net of divestitures related costs (1) $ 9 (10 ) $ 9 83 Section 8 and similar payments (2) — 95 — 194 Gain (loss) on sale of assets (5 ) 1 (4 ) 9 Other, net 5 10 11 13 Total other income $ 9 $ 96 $ 15 $ 299 (1) Mainly related to the divestment of the women’s health business and the dissolution of PGT in 2018. (2) Section 8 of the Patented Medicines (Notice of Compliance) Regulation relates to recoveries of lost revenue related to patent infringement proceedings in Canada. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income taxes | NOTE 19 – Income taxes: In the second quarter of 2019 , Teva recognized a tax benefit of $179 million, or 21%, on pre-tax 2018 , Teva recognized a tax benefit of $76 million, or 30%, on pre-tax 2019 was mainly affected by impairments, amortization and interest disallowance as a result of the U.S. Tax Cuts and Jobs Act. In the first six months of 2019 , Teva recognized a tax benefit of $170 million, or 18%, on pre-tax loss of $934 million. In the first six months of 2018 , Teva recognized a tax benefit of $30 million on pre-tax income of $1,004 million. Teva’s tax rate for the first six months of 2019 was mainly affected by impairments, amortization and interest disallowance as a result of the U.S. Tax Cuts and Jobs Act. The statutory Israeli corporate tax rate is 23% in 2019. Teva’s tax rate differs from the Israeli statutory tax rate, mainly due to generation of profits in various jurisdictions in which tax rates are different than the Israeli tax rate, tax benefits in Israel and other countries. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases | NOTE 20 – Leases: Leases prior to the adoption of the new Lease Standard Teva leases real estate, cars and equipment for use in its operations, which are classified as operating leases. In addition to rent, the leases may require Teva to pay directly for fees, insurance, maintenance and other operating expenses. Rental expense for the six months ended June 30, 2018 and the 12 months ended December 31, 2018, was $90 million and $175 million, respectively. The Company also has capital leases for properties. Leases following the adoption of the new Lease Standard Teva adopted the new accounting standard ASC 842 “Leases” and all the related amendments on January 1, 2019 and used the effective date as Teva’s date of initial application. Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. Operating leases are included in operating lease right-of-use ROU assets represent Teva’s right to use an underlying asset for the lease term and lease liabilities represent Teva’s obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Teva uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. For finance leases, Teva recognizes interest on the lease liability separately from amortization of the ROU assets in the statement of comprehensive income. For operating leases, lease expenses are recognized on a straight-line basis over the lease term. The new standard also provides practical expedients for an entity’s ongoing accounting. Teva elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, Teva does not recognize ROU assets or lease liabilities, including not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition, but recognizes lease expenses over the lease term on a straight line basis. Teva also elected the practical expedient to not separate lease and non-lease Lease terms will include options to extend or terminate the lease when it is reasonably certain that Teva will exercise or not exercise the option to renew or terminate the lease. Teva’s lease agreements have remaining lease terms ranging from 1 year to 80 years. Some of these agreements include options to extend the leases for up to 15 years and some include options to terminate the leases immediately. Certain leases also include options to purchase the leased property. The depreciable life of leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset reasonably certain of exercise. Some of vehicle lease agreements include rental payments based on the actual usage of the vehicles and other lease agreements include rental payments adjusted periodically for inflation. Teva’s lease agreements do not contain any material residual value guarantees. Teva does not believe the new Lease Standard will have a notable impact on its liquidity. The new standard will have no impact on Teva’s debt-covenant compliance under its RCF. Teva rents out or subleases certain real estate to third parties, which has an immaterial impact on Teva’s consolidated financial statements. The components of operating lease cost for the three months ended and six months ended June 30, 2019 were as follows: Three months ended Six months ended 2019 (U.S. $ in millions) Operating lease cost: Fixed payments and variable payments that depend $ 36 $ 78 Variable lease payments not included in the lease liability 2 4 Short-term lease cost 1 3 Total operating lease cost $ 39 $ 85 Supplemental cash flow information related to operating leases was as follows: Six months ended June 30, 2019 (U.S. $ in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 79 Right-of-use (non- Operating leases $ 46 Supplemental balance sheet information related to operating leases was as follows: June 30, 2019 (U.S. $ in millions) Operating leases: Operating lease ROU assets $ 500 Other current liabilities 120 Operating lease liabilities 426 Total operating lease liabilities $ 546 June 30, 2019 Weighted average remaining lease term Operating leases 7.7 years Weighted average discount rate Operating leases 5.9 % Maturities of operating lease liabilities were as follows: June 30, 2019 (U.S. $ in millions) 2019 (excluding the six months ended June 30, 2019) $ 87 2020 124 2021 100 2022 78 2023 58 2024 and thereafter 266 Total operating lease payments $ 713 Less: imputed interest 167 Present value of lease liabilities $ 546 December 31, 2018 (U.S. $ in millions) 2019 $ 193 2020 154 2021 118 2022 91 2023 66 2024 and thereafter 283 Total lease payments $ 905 As of June 30, 2019, Teva has additional operating leases for office space, which have yet to commence, with undiscounted future payments of $94 million. These operating leases will commence during fiscal year 2020 with lease terms of 9 to 12 years. As of June 30, 2019, Teva’s total finance lease assets and finance lease liabilities are $78 million and $27 million, respectively. The difference between those amounts is mainly due to prepaid payments. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Recently adopted and issued accounting pronouncements | Recently adopted accounting pronouncements In June 2018, the FASB issued ASU 2018-07 non-employee In August 2017, the FASB issued ASU 2017-12 non-financial In February 2016, the FASB issued ASU 2016-02 right-of-use Teva adopted the new accounting standard ASC 842 “Leases” and all the related amendments on January 1, 2019 and used the effective date as Teva’s date of initial application. Consequently, financial information was not updated and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. Teva did not elect the ‘package of practical expedients’, which permits the Company not to reassess its prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard. However, the Company did elect the practical expedient pertaining to the use-of The new standard also provides practical expedients for an entity’s ongoing accounting. Teva elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means, for those leases, Teva does not recognize ROU assets or lease liabilities, including not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. Teva also elected the practical expedient to not separate lease and non-lease Additionally, following the adoption of the new Lease Standard and in subsequent measurements, Teva applies the portfolio approach to account for the operating lease ROU assets and liabilities for certain car leases and incremental borrowing rates. The adoption of this standard has a material effect on Teva’s financial statements. The most significant impact is reflected in: (i) the recognition of approximately $553 million ROU assets and $561 million lease liabilities on Teva’s balance sheet for its operating leases of real estate, vehicles and equipment (the difference between the additional lease assets and lease liabilities did not the retained earnings), and (ii) the requirement to provide significant new disclosures regarding Teva’s leasing activities and to enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. However, the adoption of this standard does not have a material impact on Teva’s consolidated statements of income and consolidated statements of cash flows. Also, the Company’s accounting for finance leases remained substantially unchanged. See note 20 for further discussion. Recently issued accounting pronouncements, not yet adopted In April 2019, the FASB issued ASU 2019-04 “Codification Improvements to Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825). This ASU provides clarifications for three topics related to financial instruments accounting. The guidance will be effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In November 2018, the FASB issued ASU 2018-18 unit-of-account In August 2018, the FASB issued ASU 2018-15 other—Internal-use 350-40): internal-use In August 2018, the FASB issued ASU 2018-13 In June 2016, the FASB issued ASU 2016-13 |
Reclassifications | Reclassifications of prior periods During the fourth quarter of 2018, the Company changed its accounting policy for the presentation of royalty payments to third parties that are not involved in the production of products. Teva previously accounted for royalty payments to such third parties as S&M expenses. Royalties paid to a party that is involved in the production process are classified as cost of sales. The Company believes this change in accounting policy is preferable in order to be aligned with industry practice of classifying all royalty payments related to currently marketed products in cost of sales. The Company now reports all royalty payments as cost of sales. The Company has retrospectively adjusted prior periods to reflect this change and the impact of the change for the first and second quarters of 2018 was an increase in cost of sales of $33 million and $28 million, respectively, with a corresponding decrease in S&M expenses. |
Certain transactions (Tables)
Certain transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Major Classes of Assets and Liabilities Included as Held for Sale | The table below summarizes the major classes of assets and liabilities included as held for sale as of June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 (U.S. $ in millions) Property, plant and equipment, net $ 30 $ 92 Goodwill — 51 Adjustments of assets held for sale to fair value (6 ) (51 ) Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 24 $ 92 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Inventories | Inventories, net of reserves, consisted of the following: June 30, December 31, 2019 2018 (U.S. $ in millions) Finished products $ 2,643 $ 2,665 Raw and packaging materials 1,393 1,328 Products in process 638 590 Materials in transit and payments on account 176 148 Total $ 4,850 $ 4,731 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Property, Plant and Equipment, Net | Property, plant and equipment, net, consisted of the following: June 30, December 31, 2019 2018 (U.S. $ in millions) Machinery and equipment $ 5,713 $ 5,691 Buildings 3,092 3,143 Computer equipment and other assets 2,129 2,097 Payments on account 526 514 Land 370 351 11,830 11,796 Less—accumulated depreciation (5,099 ) (4,928 ) Total $ 6,732 $ 6,868 |
Identifiable Intangible Assets
Identifiable Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Identifiable Intangible Assets | Identifiable intangible assets consisted of the following: Gross carrying amount net of impairment Accumulated amortization Net carrying amount June 30, December 31, June 30, December 31, June 30, December 31, 2019 2018 2019 2018 2019 2018 (U.S. $ in millions) Product rights $ 19,995 $ 20,361 $ 10,043 $ 9,565 $ 9,952 $ 10,796 Trade names 604 606 109 91 496 515 In process research and development 1,988 2,694 — — 1,988 2,694 Total $ 22,587 $ 23,661 $ 10,152 $ 9,656 $ 12,435 $ 14,005 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Changes in the Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill for the period ended June 30, 2019 were as follows: North America Europe International Markets Other Total (U.S. $ in millions) Balance as of January 1, 2019 (1) $ 11,098 $ 8,653 $ 2,479 $ 2,687 $ 24,917 Changes during the period: Goodwill disposal (23 ) (5 ) — — (28 ) Goodwill adjustments (13 ) — — — (13 ) Translation differences 16 (32 ) 53 — 37 Balance as of June 30, 2019 (1) $ 11,078 $ 8,616 $ 2,532 $ 2,687 $ 24,913 (1) Accumulated goodwill impairment as of June 30, 2019 and January 1, 2019 was approximately $21.0 billion. |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of disaggregates revenues by major revenue streams | The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 17. Three months ended June 30, 2019 North America Europe International Other Total (U.S. $ in millions) Sale of goods 1,686 1,173 526 204 3,588 Licensing arrangements 35 10 2 1 48 Distribution 351 § 164 — 515 Other — § 49 137 186 $ 2,071 $ 1,183 $ 741 $ 342 4,337 § Represents an amount less than $1 million. Three months ended June 30, 2018 North America Europe International Other Total (U.S. $ in millions) Sale of goods 1,913 1,317 573 186 3,989 Licensing arrangements 30 8 1 2 41 Distribution 320 3 154 — 477 Other — — 61 133 194 $ 2,263 $ 1,328 $ 789 $ 321 $ 4,701 Six months ended June 30, 2019 North America Europe International Other Total (U.S. $ in millions) Sale of goods 3,324 2,433 994 390 7,141 Licensing arrangements 65 15 2 3 85 Distribution 729 § 315 — 1,044 Other — § 97 264 362 $ 4,118 $ 2,448 $ 1,409 $ 657 $ 8,632 § Represents an amount less than $1 million. Six months ended June 30, 2018 North America Europe International Other activities Total (U.S. $ in millions) Sale of goods 4,081 2,746 1,092 365 8,284 Licensing arrangements 62 18 21 4 105 Distribution 651 6 307 — 964 Other — — 119 294 413 $ 4,794 $ 2,770 $ 1,539 $ 663 $ 9,766 |
Accumulated other comprehensi_2
Accumulated other comprehensive loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income/(Loss) (Net of Tax) | The components of, and changes within, accumulated other comprehensive losses attributable to Teva are presented in the table below: Net Unrealized Gains (Losses) Benefit Plans Foreign Available-for- sale securities Derivative Actuarial Total (U.S. $ in millions) Balance as of December 31, 2017* $ (1,316 ) $ 1 $ (442 ) $ (91 ) $ (1,848 ) Other comprehensive income (loss) before reclassifications (495 ) — 42 — (453 ) Amounts reclassified to the statements of income — (1 ) 14 1 14 Net other comprehensive income (loss) before tax (495 ) (1 ) 56 1 (439 ) Corresponding income tax — — — (2 ) (2 ) Net other comprehensive income (loss) after tax** (495 ) (1 ) 56 (1 ) (441 ) Balance as of June 30, 2018 $ (1,811 ) $ — $ (386 ) $ (92 ) $ (2,289 ) * Following the adoption of ASU 2016-01, 5 ** Amounts do not include a $ 23 non-controlling Net Unrealized Gains (Losses) Benefit Plans Foreign Available-for- sale securities Derivative Actuarial Total (U.S. $ in millions) Balance as of December 31, 2018 $ (2,055 ) $ 1 $ (327 ) $ (78 ) $ (2,459 ) Other comprehensive income (loss) before reclassifications 111 — 22 — 133 Amounts reclassified to the statements of income — — 15 — 15 Net other comprehensive income (loss) before tax 111 — 37 — 148 Corresponding income tax — — — (1 ) (1 ) Net other comprehensive income (loss) after tax* 111 — 37 (1 ) 147 Balance as of June 30, 2019 $ (1,944 ) $ 1 $ (290 ) $ (79 ) $ (2,312 ) * Amounts do not include a $ 24 non-controlling |
Debt obligations (Tables)
Debt obligations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Short-term Debt | a. Short-term debt: Weighted average interest rate as of June 30, 2019 Maturity June 30, 2019 December 31, 2018 (U.S. $ in millions) Bank and financial institutions 4.25 % — $ 1 $ 2 Convertible debentures 0.25 % 2026 514 514 Current maturities of long-term liabilities 2,256 1,700 Total short-term debt $ 2,771 $ 2,216 |
Schedule of Senior Notes and Loans | Long-term debt: Weighted average interest Maturity June 30, December 31, (U.S. $ in millions) Senior notes EUR 1,660 million 0.38% 2020 $ 1,886 $ 1,897 Senior notes EUR 1,500 million 1.13% 2024 1,697 1,707 Senior notes EUR 1,300 million 1.25% 2023 1,472 1,480 Senior notes EUR 900 million 4.50% 2025 1,023 1,029 Senior notes EUR 750 million 1.63% 2028 846 850 Senior notes EUR 700 million 3.25% 2022 796 801 Senior notes EUR 700 million 1.88% 2027 794 798 Senior notes USD 3,500 million 3.15% 2026 3,493 3,493 Senior notes USD 3,000 million 2.20% 2021 2,998 2,997 Senior notes USD 3,000 million 2.80% 2023 2,994 2,993 Senior notes USD 1,556 million (1) 1.70% 2019 1,556 1,700 Senior notes USD 2,000 million 4.10% 2046 1,985 1,985 Senior notes USD 1,250 million 6.00% 2024 1,250 1,250 Senior notes USD 1,250 million 6.75% 2028 1,250 1,250 Senior notes USD 844 million 2.95% 2022 858 860 Senior notes USD 789 million 6.15% 2036 782 782 Senior notes USD 700 million 2.25% 2020 700 700 Senior notes USD 613 million 3.65% 2021 619 621 Senior notes USD 588 million 3.65% 2021 587 587 Senior notes CHF 350 million 0.50% 2022 359 356 Senior notes CHF 350 million 1.00% 2025 359 356 Fair value hedge accounting adjustments 9 (9 ) Total senior notes 28,313 28,483 Other long-term debt 1.15% 2026 1 12 Less current maturities (2,256 ) (1,700 ) Derivative instruments (9 ) 9 Less debt issuance costs (94 ) (104 ) Total senior notes and loans $ 25,955 $ 26,700 (1) During the first six months of 2019, Teva repurchased and canceled approximately $144 million principal amount of its $1,700 million 1.7% senior notes due in July 2019. In July 2019, Teva repaid at maturity $1,556 million of its 1.7% senior notes. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Financial Items Carried at Fair Value | Financial items carried at fair value as of June 30, 2019 and December 31, 2018 are classified in the tables below in one of the three categories described above: June 30, 2019 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 401 $ — $ — $ 401 Cash, deposits and other 1,764 — — 1,764 Investment in securities: Equity securities 48 — — 48 Other, mainly debt securities 5 — 13 18 Derivatives: Asset derivatives—options and forward contracts — 14 — 14 Asset derivatives cross-currency swaps 85 — 85 Liability derivatives—options and forward contracts — (55 ) — (55 ) Liability derivatives—interest rate and cross-currency swaps — (37 ) — (37 ) Contingent consideration* — — (403 ) (403 ) Total $ 2,218 $ 7 $ (390 ) $ 1,835 December 31, 2018 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 203 $ — $ — $ 203 Cash, deposits and other 1,579 — — 1,579 Investment in securities: Equity securities 51 — — 51 Other, mainly debt securities 2 — 10 12 Derivatives: Asset derivatives options and forward contracts — 18 — 18 Asset derivatives—interest rate and cross-currency swaps — 58 — 58 Liability derivatives—options and forward contracts — (26 ) — (26 ) Liability derivatives—interest rate and cross-currency swaps — (50 ) — (50 ) Contingent consideration* — — (507 ) (507 ) Total $ 1,835 $ — $ (497 ) $ 1,338 * Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. |
Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs | The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs: Six months ended (U.S. $ in millions) Fair value at the beginning of the period $ (497 ) Revaluation of debt securities 3 Adjustments to provisions for contingent consideration: Actavis Generics transaction 101 Eagle transaction (54 ) Settlement of contingent consideration: Eagle transaction 57 Fair value at the end of the period $ (390 ) |
Summary of Financial Instrument Measured on a Basis Other Than Fair Value | Financial instruments not measured at fair value Financial instruments measured on a basis other than fair value mostly consist of senior notes and convertible senior debentures and are presented in the table below in terms of fair value: Fair value* June 30, December 31, (U.S. $ in millions) Senior notes included under senior notes and loans $ 22,770 $ 23,560 Senior notes and convertible senior debentures included under short-term debt 2,719 2,140 Total $ 25,489 $ 25,700 * The fair value was based on quoted market price. |
Derivative instruments and he_2
Derivative instruments and hedging activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Notional Amounts for Hedged Items, Designated as Hedge Accounting | The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting: June 30, December 31, (U.S. $ in millions) Cross-currency swap—cash flow hedge $ 588 $ 588 Cross-currency swap—net investment hedge 1,000 1,000 Interest rate swap—fair value hedge 500 500 $ 2,088 $ 2,088 |
Summary of Classification and Fair Values of Derivative Instruments | The following table summarizes the classification and fair values of derivative instruments: Fair value Designated as hedging instruments Not designated as hedging instruments June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ — $ — $ 14 $ 18 Other non-current Cross-currency swaps—cash flow hedge 76 58 — — Senior notes and loans: Interest rate swaps—fair value hedge 9 — — — Liability derivatives: Other current liabilities: Option and forward contracts — — (55 ) (26 ) Cross-currency swaps—net investment hedge (37 ) — — — Other taxes and long-term liabilities: Cross-currency swaps—net investment hedge — (41 ) — — Senior notes and loans: Interest rate swaps—fair value hedge — (9 ) — — |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | The table below provides information regarding the location and amount of pre-tax (gains) losses from derivatives designated in fair value or cash flow hedging relationships: Financial expenses, net Other comprehensive income Three month ended, Three month ended, June 30, 2019 June 30, June 30, 2019 June 30, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 206 $ 236 $ (76 ) $ 614 Cross-currency swaps—cash flow hedge (1) (1 ) * 4 (28 ) Cross-currency swaps—net investment hedge (2) (7 ) (9 ) 14 (59 ) Interest rate swaps—fair value hedge (3) 1 * — — * Represents an amount less than $0.5 million. ** Comparative figures are based on prior hedge accounting standard. Financial expenses, net Other comprehensive income Six month ended, Six month ended, June 30, 2019 June 30, June 30, 2019 June 30, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 425 $ 507 $ (170 ) $ 418 Cross-currency swaps—cash flow hedge (1) (1 ) (1 ) (15 ) (11 ) Cross-currency swaps—net investment hedge (2) (15 ) (16 ) (6 ) (29 ) Interest rate swaps—fair value hedge (3) 1 * — — * Represents an amount less than $0.5 million. ** Comparative figures are based on prior hedge accounting standard. |
Information Regarding The Location And Amount Of Pretax (Gains) Losses Of Derivatives Designated In Fair Value Or Cash Flow Hedging Relationships | The table below provides information regarding the location and amount of pre-tax (gains) losses from derivatives not designated as hedging instruments: Financial expenses, net Net revenues Three month ended, Three month ended, June 30, 2019 June 30, June 30, 2019 June 30, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 206 $ 236 $ (4,337 ) $ (4,701 ) Option and forward contracts (4) 34 (24 ) — — Option and forward contracts Economic hedge — — 4 (1 ) Financial expenses, net Net revenues Six month ended, Six month ended, June 30, 2019 June 30, 2018 June 30, 2019 June 30, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 425 $ 507 $ (8,632 ) $ (9,766 ) Option and forward contracts (4) (7 ) (5 ) — — Option and forward contracts Economic hedge — — 4 (1 ) (1) With respect to cross-currency swap agreements, Teva recognized gains which mainly reflect the differences between the fixed interest rate and the floating interest rate. (2) In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500 million maturing in 2020. These cross currency swaps were designated as a net investment hedge of Teva’s foreign subsidiaries euro denominated net assets, in order to reduce the risk of adverse exchange rate fluctuations. With respect to these cross currency swap agreements, Teva recognized gains which mainly reflect the differences between the float-for-float (3) In the fourth quarter of 2016, Teva entered into an interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. With respect to this interest rate swap agreement, Teva recognized a loss which mainly reflects the differences between the fixed interest rate and the floating interest rate. (4) Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses—net. |
Other assets impairments, res_2
Other assets impairments, restructuring and other items (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Other Assets Impairments, Restructuring and Other Items | Three months ended Six months ended 2019 2018 2019 2018 (U.S. $ in millions) Impairments of long-lived tangible assets (1) $ 48 $ 27 $ 68 $ 253 Contingent consideration 24 47 (47 ) 55 Restructuring 47 107 79 354 Other (18 ) 13 3 33 Total $ 101 $ 194 $ 103 $ 695 (1) Including impairments related to exit and disposal activities |
Summary of Restructuring Plan Including Costs Related to Exit and Disposal | The following tables provide the components of costs associated with Teva’s restructuring plan, including other costs associated with Teva’s restructuring plan and recorded under different items: Three months ended June 30, 2019 2018 (U.S. $ in millions) Restructuring Employee termination $ 36 $ 90 Other 11 17 Total $ 47 $ 107 Six months ended June 30, 2019 2018 (U.S. $ in millions) Restructuring Employee termination $ 56 $ 318 Other 23 36 Total $ 79 $ 354 |
Summary of Restructuring Accruals | The following table provides the components of and changes in the Company’s restructuring accruals: Employee Other Total (U.S. $ in millions ) Balance as of January 1, 2019 $ (204 ) $ (29 ) $ (233 ) Provision (56 ) (23 ) (79 ) Utilization and other* 67 45 112 Balance as of June 30, 2019 $ (193 ) $ (7 ) $ (200 ) * Includes adjustments for foreign currency translation. |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Segment Profit | a. Segment information: Three months ended June 30, 2019 North America Europe International Markets (U.S. $ in millions) Revenues $ 2,071 $ 1,183 $ 741 Gross profit 1,067 674 312 R&D expenses 175 70 24 S&M expenses 269 216 119 G&A expenses 117 70 34 Other (income) expense 2 1 (1 ) Segment profit $ 504 $ 316 $ 136 Three months ended June 30, 2018 North America Europe International Markets (U.S. $ in millions) Revenues $ 2,263 $ 1,328 $ 789 Gross profit 1,179 727 328 R&D expenses 182 73 25 S&M expenses 272 233 130 G&A expenses 103 78 37 Other (income) (100 ) (3 ) (3 ) Segment profit $ 722 $ 346 $ 139 Six months ended June 30, 2 North America Europe International Markets (U.S. $ in millions) Revenues $ 4,118 $ 2,448 $ 1,409 Gross profit 2,107 1,404 582 R&D expenses 340 136 46 S&M expenses 537 431 234 G&A expenses 230 119 70 Other (income) expense (2 ) (1 ) (1 ) Segment profit $ 1,001 $ 719 $ 233 Six months ended June 30, 2018 North America Europe International Markets (U.S. $ in millions) Revenues $ 4,794 $ 2,770 $ 1,539 Gross profit 2,582 1,519 641 R&D expenses 370 146 49 S&M expenses 548 483 264 G&A expenses 229 169 78 Other (income) expense (202 ) (2 ) (11 ) Segment profit $ 1,637 $ 723 $ 261 |
Schedule Of Consolidated Income Before Income Tax | Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (U.S. $ in millions) (U.S. $ in millions) North America profit $ 504 $ 722 $ 1,001 $ 1,637 Europe profit 316 346 719 723 International Markets profit 136 139 233 261 Total segment profit 956 1,207 1,954 2,621 Profit of other activities 55 31 76 52 1,011 1,238 2,029 2,673 Amounts not allocated to segments: Amortization 285 302 568 612 Other assets impairments, restructuring and other items 101 194 103 695 Goodwill impairment — 120 — 300 Intangible asset impairments 561 521 1,030 727 (Gain) loss on divestitures, net of divestitures related costs (9 ) 10 (9 ) (83 ) Other R&D expenses § — § 22 Costs related to regulatory actions taken in facilities 12 4 16 5 Legal settlements and loss contingencies 646 20 703 (1,258 ) Other unallocated amounts 59 81 129 142 Consolidated operating income (loss) (644 ) (14 ) (510 ) 1,511 Financial expenses, net 206 236 425 507 Consolidated income (loss) before income taxes $ (850 ) $ (250 ) $ (934 ) $ 1,004 § Represents an amount less than $1 million. |
Schedule of Net Sales by Product Line | b. Segment revenues by major products and activities: The following tables present revenues by major products and activities for the three months and the six months ended June 30, 20 Three months ended June 30, 2019 2018 (U.S. $ in millions) North America Generic products $ 946 $ 947 COPAXONE 274 464 TREANDA/BENDEKA 115 160 ProAir* 65 115 QVAR 60 30 AJOVY 23 — AUSTEDO 96 44 Anda 351 320 Other 141 183 Total $ 2,071 $ 2,263 Six months ended June 30, 2019 2018 (U.S. $ in millions) North America Generic prod uct $ 1,913 $ 2,035 COPAXONE 482 940 TREANDA/BENDEKA 229 341 ProAir* 123 245 QVAR 124 137 AJOVY 43 — AUSTEDO 171 74 Anda 729 651 Other 305 372 Total $ 4,118 $ 4,794 Three months ended June 30, 2019 2018 (U.S. $ in millions) Europe Generic products $ 844 $ 907 COPAXONE 107 140 Respiratory products 89 106 Other 143 175 Total $ 1,183 $ 1,328 Six months ended June 30, 2019 2018 (U.S. $ in millions) Europe Generic products $ 1,763 $ 1,904 COPAXONE 221 293 Respiratory products 181 219 Other 283 354 Total $ 2,448 $ 2,770 Three months ended June 30, 2019 2018 (U.S. $ in millions) International markets Generic products $ 489 $ 537 COPAXONE 13 22 Distribution 164 154 Other 75 76 Total $ 741 $ 789 Six months ended June 30, 2019 2018 (U.S. $ in millions) International markets Generic products $ 930 $ 1,025 COPAXONE 27 38 Distribution 315 307 Other 137 168 Total $ 1,409 $ 1,539 |
Other income (Tables)
Other income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Other Income | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (U.S. $ in millions) (U.S. $ in millions) Gain (loss) on divestitures, net of divestitures related costs (1) $ 9 (10 ) $ 9 83 Section 8 and similar payments (2) — 95 — 194 Gain (loss) on sale of assets (5 ) 1 (4 ) 9 Other, net 5 10 11 13 Total other income $ 9 $ 96 $ 15 $ 299 (1) Mainly related to the divestment of the women’s health business and the dissolution of PGT in 2018. (2) Section 8 of the Patented Medicines (Notice of Compliance) Regulation relates to recoveries of lost revenue related to patent infringement proceedings in Canada. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Components Of Lease Expense | The components of operating lease cost for the three months ended and six months ended June 30, 2019 were as follows: Three months ended Six months ended 2019 (U.S. $ in millions) Operating lease cost: Fixed payments and variable payments that depend $ 36 $ 78 Variable lease payments not included in the lease liability 2 4 Short-term lease cost 1 3 Total operating lease cost $ 39 $ 85 |
Supplemental cash flow information related to leases | Supplemental cash flow information related to operating leases was as follows: Six months ended June 30, 2019 (U.S. $ in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 79 Right-of-use (non- Operating leases $ 46 |
Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to operating leases was as follows: June 30, 2019 (U.S. $ in millions) Operating leases: Operating lease ROU assets $ 500 Other current liabilities 120 Operating lease liabilities 426 Total operating lease liabilities $ 546 June 30, 2019 Weighted average remaining lease term Operating leases 7.7 years Weighted average discount rate Operating leases 5.9 % |
Maturities of lease liabilities | Maturities of operating lease liabilities were as follows: June 30, 2019 (U.S. $ in millions) 2019 (excluding the six months ended June 30, 2019) $ 87 2020 124 2021 100 2022 78 2023 58 2024 and thereafter 266 Total operating lease payments $ 713 Less: imputed interest 167 Present value of lease liabilities $ 546 December 31, 2018 (U.S. $ in millions) 2019 $ 193 2020 154 2021 118 2022 91 2023 66 2024 and thereafter 283 Total lease payments $ 905 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | |
Significant Accounting Policies [Line Items] | |||
Operating lease right-of-use assets | $ 500 | ||
Operating lease liability | 546 | ||
Accounting Standards Update 2016-02 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Operating lease right-of-use assets | 553 | ||
Operating lease liability | $ 561 | ||
Cost of Sales [Member] | Error Of Principle [Member] | |||
Significant Accounting Policies [Line Items] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 33 | ||
Selling and Marketing Expenses [Member] | Error Of Principle [Member] | |||
Significant Accounting Policies [Line Items] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 28 |
Certain Transactions - Business
Certain Transactions - Business Acquisitions - Summary of Major Classes of Assets and Liabilities Included as Held for Sale (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property, plant and equipment, net | $ 6,732 | $ 6,868 | |
Goodwill | [1] | 24,913 | 24,917 |
Total assets | 59,424 | 60,683 | |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property, plant and equipment, net | 30 | 92 | |
Goodwill | 51 | ||
Adjustments of assets held for sale to fair value | (6) | (51) | |
Total assets | $ 24 | $ 92 | |
[1] | Accumulated goodwill impairment as of June 30, 2019 and January 1, 2019 was approximately $21.0 billion. |
Certain Transactions - Busine_2
Certain Transactions - Business Transactions - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | Jan. 31, 2018 | Oct. 03, 2016 | Aug. 02, 2016 | Mar. 03, 2016 |
Allergan plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Allergan one time payment to Teva | $ 703 | |||
Actavis [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 33,400 | |||
Shares issued as consideration for the acquisition | 100.3 | |||
Anda [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 500 | |||
Rimsa [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 2,300 |
Certain Transactions - Other Tr
Certain Transactions - Other Transactions - Additional Information (Detail) $ in Millions | Jan. 08, 2018USD ($) | May 12, 2017USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($)Lawsuit | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Oct. 31, 2016USD ($) |
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||||||
Other asset impairments, restructuring and other items | $ 101 | $ 194 | $ 103 | $ 695 | ||||||||||
Net (gain) loss from sale of long-lived assets and investments | $ (6) | $ 88 | ||||||||||||
PGT Healthcare Partnership [Member] | ||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||||||
Other asset impairments, restructuring and other items | $ 64 | |||||||||||||
Write-down of investment | 94 | |||||||||||||
Net (gain) loss from sale of long-lived assets and investments | $ 50 | |||||||||||||
Rimsa [Member] | ||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||||||
Number of lawsuits filed | Lawsuit | 2 | |||||||||||||
Alder [Member] | ||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||||||
Upfront payment | $ 25 | |||||||||||||
Collaborative agreement milestone payments | $ 175 | |||||||||||||
Otsuka [Member] | ||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||||||
Upfront payment | $ 50 | |||||||||||||
Attenukine [Member] | ||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||||||
Upfront payment | $ 30 | |||||||||||||
Additional considerations | $ 280 | |||||||||||||
Celltrion [Member] | ||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||||||
Refundable payment | $ 60 | |||||||||||||
Total associated cost | $ 160 | |||||||||||||
Regeneron [Member] | ||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||||||
Upfront payment | $ 250 | |||||||||||||
Collaborative agreement milestone payments | $ 60 | $ 35 | $ 25 | |||||||||||
Research and development costs | $ 1,000 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventories [Line Items] | ||
Finished products | $ 2,643 | $ 2,665 |
Raw and packaging materials | 1,393 | 1,328 |
Products in process | 638 | 590 |
Materials in transit and payments on account | 176 | 148 |
Total | $ 4,850 | $ 4,731 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | $ 5,713 | $ 5,691 |
Buildings | 3,092 | 3,143 |
Computer equipment and other assets | 2,129 | 2,097 |
Payments on account | 526 | 514 |
Land | 370 | 351 |
Subtotal | 11,830 | 11,796 |
Less-accumulated depreciation | (5,099) | (4,928) |
Property, Plant and Equipment, Net, Total | $ 6,732 | $ 6,868 |
Identifiable Intangible Asset_2
Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets useful life | 12 years | |||
Amortization of intangible assets | $ 285 | $ 302 | $ 568 | $ 612 |
IPR&D to product rights | 19 | 256 | ||
Impairment of intangible assets excluding goodwill | 561 | $ 521 | 1,030 | $ 727 |
Methyl ER [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
IPR&D to product rights | 174 | |||
Lenalidomide Product [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets excluding goodwill | 125 | |||
In Process Research and Development [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets excluding goodwill | 196 | 461 | ||
Actavis [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets excluding goodwill | 59 | 59 | ||
Actavis [Member] | In Process Research and Development [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Business combination recognized identifiable assets | 1,730 | 1,730 | ||
Actavis [Member] | In Process Research and Development [Member] | Lenalidomide Product [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets excluding goodwill | 277 | |||
Actavis [Member] | In Process Research and Development [Member] | Generic Pipeline Products [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets excluding goodwill | 137 | |||
Actavis [Member] | Identifiable product rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets excluding goodwill | 365 | 569 | ||
Rimsa [Member] | In Process Research and Development [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Business combination recognized identifiable assets | 47 | 47 | ||
AUSTEDO [Member] | In Process Research and Development [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Business combination recognized identifiable assets | $ 211 | $ 211 |
Identifiable Intangible Asset_3
Identifiable Intangible Assets - Summary of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | $ 22,587 | $ 23,661 |
Accumulated amortization | 10,152 | 9,656 |
Net carrying amount | 12,435 | 14,005 |
Identifiable product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 19,995 | 20,361 |
Accumulated amortization | 10,043 | 9,565 |
Net carrying amount | 9,952 | 10,796 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 604 | 606 |
Accumulated amortization | 109 | 91 |
Net carrying amount | 496 | 515 |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 1,988 | 2,694 |
Net carrying amount | $ 1,988 | $ 2,694 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||||
Impairment Amount Of Goodwill Based On Market Assessment | $ 120 | $ 300 | ||
Maximum [Member] | ||||
Goodwill [Line Items] | ||||
Percentage of headroom | 6.00% | |||
International Markets [Member] | ||||
Goodwill [Line Items] | ||||
Decrease in estimated difference between fair value and carrying value, percent | 4.00% | |||
Terminal Value Percentage Increase Or Decrease Threshold | 2.30% | |||
Increase Or Decrease In The Discount Rate In Percentage Terms Threshold Limits | 10.74% | |||
International Markets [Member] | Maximum [Member] | ||||
Goodwill [Line Items] | ||||
Terminal Value Percentage Increase Or Decrease Threshold | 0.40% | |||
Increase Or Decrease In The Discount Rate In Percentage Terms Threshold Limits | 0.30% | |||
Europe [Member] | ||||
Goodwill [Line Items] | ||||
Decrease in estimated difference between fair value and carrying value, percent | 22.00% | |||
North America [Member] | ||||
Goodwill [Line Items] | ||||
Impairment Amount Of Goodwill Based On Market Assessment | $ 5,000 | |||
Decrease in estimated difference between fair value and carrying value, percent | 9.00% | |||
Terminal Value Percentage Increase Or Decrease Threshold | 2.00% | |||
Increase Or Decrease In The Discount Rate In Percentage Terms Threshold Limits | 10.00% | |||
North America [Member] | Maximum [Member] | ||||
Goodwill [Line Items] | ||||
Terminal Value Percentage Increase Or Decrease Threshold | 0.90% | |||
Increase Or Decrease In The Discount Rate In Percentage Terms Threshold Limits | 0.60% | |||
Medis [Member] | ||||
Goodwill [Line Items] | ||||
Decrease in estimated difference between fair value and carrying value, percent | 45.00% | |||
TAPI [Member] | ||||
Goodwill [Line Items] | ||||
Decrease in estimated difference between fair value and carrying value, percent | 15.00% |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance | $ 24,917 | [1] |
Goodwill disposal | (28) | |
Goodwill adjustments | (13) | |
Translation differences | 37 | |
Ending balance | 24,913 | [1] |
North America [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 11,098 | [1] |
Goodwill disposal | (23) | |
Goodwill adjustments | (13) | |
Translation differences | 16 | |
Ending balance | 11,078 | [1] |
Europe [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 8,653 | [1] |
Goodwill disposal | (5) | |
Translation differences | (32) | |
Ending balance | 8,616 | [1] |
International Markets [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 2,479 | [1] |
Translation differences | 53 | |
Ending balance | 2,532 | [1] |
Other [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 2,687 | [1] |
Ending balance | $ 2,687 | [1] |
[1] | Accumulated goodwill impairment as of June 30, 2019 and January 1, 2019 was approximately $21.0 billion. |
Goodwill - Summary of Changes_2
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - USD ($) $ in Billions | Jun. 30, 2019 | Jan. 01, 2019 |
Goodwill [Line Items] | ||
Accumulated goodwill impairment | $ 21 | $ 21 |
Earnings (Loss) per Share - Add
Earnings (Loss) per Share - Additional Information (Detail) - shares shares in Millions | Dec. 17, 2018 | Jun. 30, 2018 | Jun. 30, 2018 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Ordinary shares issued upon mandatory conversion of preferred shares | 70.6 | ||
Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average shares with anti-dilutive effect on earnings per share | 63 | 65 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | $ 4,337 | $ 4,701 | $ 8,632 | $ 9,766 | |||
Sale of Goods [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 3,588 | 3,989 | 7,141 | 8,284 | |||
Licensing Arrangements [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 48 | 41 | 85 | 105 | |||
Distribution [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 515 | 477 | 1,044 | 964 | |||
Other [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 186 | 194 | 362 | 413 | |||
International Markets [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 741 | 789 | 1,409 | 1,539 | |||
International Markets [Member] | Sale of Goods [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 526 | 573 | 994 | 1,092 | |||
International Markets [Member] | Licensing Arrangements [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 2 | 1 | 2 | 21 | |||
International Markets [Member] | Distribution [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 164 | 154 | 315 | 307 | |||
International Markets [Member] | Other [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 49 | 61 | 97 | 119 | |||
Other activities [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 342 | 321 | 657 | 663 | |||
Other activities [Member] | Sale of Goods [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 204 | 186 | 390 | 365 | |||
Other activities [Member] | Licensing Arrangements [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 1 | 2 | 3 | 4 | |||
Other activities [Member] | Other [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 137 | 133 | 264 | 294 | |||
North America [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 2,071 | 2,263 | 4,118 | 4,794 | |||
North America [Member] | Sale of Goods [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 1,686 | 1,913 | 3,324 | 4,081 | |||
North America [Member] | Licensing Arrangements [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 35 | 30 | 65 | 62 | |||
North America [Member] | Distribution [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 351 | 320 | 729 | 651 | |||
Europe [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 1,183 | 1,328 | 2,448 | 2,770 | |||
Europe [Member] | Sale of Goods [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 1,173 | 1,317 | 2,433 | 2,746 | |||
Europe [Member] | Licensing Arrangements [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | 10 | 8 | 15 | 18 | |||
Europe [Member] | Distribution [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | [1] | $ 3 | [1] | $ 6 | |||
Europe [Member] | Other [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenue | [1] | ||||||
[1] | Represents an amount less than $1 million. |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
United States [Member] | |
Revenue Recognition [Line Items] | |
Percentage sales reserves and allowances to U.S. customers | 83.00% |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Sales Reserves and Allowances (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Revenue Recognition [Line Items] | |
Balance at beginning of period | $ 6,886 |
Provisions related to sales made in current year period | 8,656 |
Provisions related to sales made in prior periods | 1 |
Credits and payments | (9,294) |
Translation differences | 12 |
Balance at end of period | 6,261 |
Reserves Included in Accounts Receivable, Net [Member] | |
Revenue Recognition [Line Items] | |
Balance at beginning of period | 175 |
Provisions related to sales made in current year period | 229 |
Credits and payments | (242) |
Balance at end of period | 162 |
Rebates [Member] | |
Revenue Recognition [Line Items] | |
Balance at beginning of period | 3,006 |
Provisions related to sales made in current year period | 2,651 |
Provisions related to sales made in prior periods | 7 |
Credits and payments | (2,975) |
Translation differences | 4 |
Balance at end of period | 2,693 |
Medicaid and Other Governmental Allowances [Member] | |
Revenue Recognition [Line Items] | |
Balance at beginning of period | 1,361 |
Provisions related to sales made in current year period | 548 |
Credits and payments | (739) |
Balance at end of period | 1,170 |
Chargebacks [Member] | |
Revenue Recognition [Line Items] | |
Balance at beginning of period | 1,530 |
Provisions related to sales made in current year period | 4,822 |
Provisions related to sales made in prior periods | (5) |
Credits and payments | (4,936) |
Translation differences | 2 |
Balance at end of period | 1,413 |
Returns [Member] | |
Revenue Recognition [Line Items] | |
Balance at beginning of period | 638 |
Provisions related to sales made in current year period | 148 |
Provisions related to sales made in prior periods | 3 |
Credits and payments | (196) |
Translation differences | 2 |
Balance at end of period | 595 |
Other [Member] | |
Revenue Recognition [Line Items] | |
Balance at beginning of period | 176 |
Provisions related to sales made in current year period | 213 |
Provisions related to sales made in prior periods | (4) |
Credits and payments | (206) |
Translation differences | 4 |
Balance at end of period | 183 |
Total Reserves Included in Sales Reserves and Allowances [Member] | |
Revenue Recognition [Line Items] | |
Balance at beginning of period | 6,711 |
Provisions related to sales made in current year period | 8,427 |
Provisions related to sales made in prior periods | 1 |
Credits and payments | (9,052) |
Translation differences | 12 |
Balance at end of period | $ 6,054 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Loss) (Detail) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | $ 14,707 | ||||
Ending Balance | 14,122 | ||||
Foreign Currency Translation Adjustments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (2,055) | $ (1,316) | [1] | ||
Other comprehensive income (loss) before reclassifications | 111 | (495) | |||
Net other comprehensive income (loss) before tax | 111 | (495) | |||
Net other comprehensive income (loss) after tax | 111 | [2] | (495) | [3] | |
Ending Balance | (1,944) | (1,811) | |||
Available-for-sale Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | 1 | 1 | [1] | ||
Amounts reclassified to the statements of income | (1) | ||||
Net other comprehensive income (loss) before tax | (1) | ||||
Net other comprehensive income (loss) after tax | [3] | (1) | |||
Ending Balance | 1 | ||||
Derivative Financial Instruments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (327) | (442) | [1] | ||
Other comprehensive income (loss) before reclassifications | 22 | 42 | |||
Amounts reclassified to the statements of income | 15 | 14 | |||
Net other comprehensive income (loss) before tax | 37 | 56 | |||
Net other comprehensive income (loss) after tax | 37 | [2] | 56 | [3] | |
Ending Balance | (290) | (386) | |||
Benefit Plans [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (78) | (91) | [1] | ||
Amounts reclassified to the statements of income | 1 | ||||
Net other comprehensive income (loss) before tax | 1 | ||||
Corresponding income tax | (1) | (2) | |||
Net other comprehensive income (loss) after tax | (1) | [2] | (1) | [3] | |
Ending Balance | (79) | (92) | |||
AOCI Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (2,459) | (1,848) | [1] | ||
Other comprehensive income (loss) before reclassifications | 133 | (453) | |||
Amounts reclassified to the statements of income | 15 | 14 | |||
Net other comprehensive income (loss) before tax | 148 | (439) | |||
Corresponding income tax | (1) | (2) | |||
Net other comprehensive income (loss) after tax | 147 | [2] | (441) | [3] | |
Ending Balance | $ (2,312) | $ (2,289) | |||
[1] | Following the adoption of ASU 2016-01, the Company recorded a $5 million opening balance reclassification from accumulated other comprehensive income to retained earnings. | ||||
[2] | Amounts do not include a $24 million gain from foreign currency translation adjustments attributable to non-controlling interests. | ||||
[3] | Amounts do not include a $23 million gain from foreign currency translation adjustments attributable to non-controlling interests. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income/(Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2019 | |
Foreign Currency Translation Adjustments Attributable to Non-controlling Interests [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Opening balance reclassification | $ 23 | $ 24 |
AOCI Attributable to Parent [Member] | Accounting Standards Update 2016-01 [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation attributable to non-controlling interests | 5 | |
Opening balance reclassification | $ 5 |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |||||
Jul. 31, 2019 | Jun. 30, 2019 | Jul. 26, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | Nov. 30, 2015 | ||
Debt Instrument [Line Items] | |||||||
Revolving credit facility | $ 2,300 | $ 3,000 | |||||
Senior notes | $ 28,313 | $ 28,483 | |||||
Debt instrument redeemed amount | $ 2,300 | ||||||
Long term debt currency portion USD | 62.00% | ||||||
Long term debt currency portion EUR | 35.00% | ||||||
Long term debt currency portion CHF | 3.00% | ||||||
'Senior notes USD 1,700 million [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,556 | $ 1,700 | |||||
Weighted average interest rate | [1] | 1.70% | |||||
'Senior notes USD 1,700 million [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 1.70% | ||||||
Repayments of short-term debt | $ 1,556 | ||||||
'Senior notes USD 1,700 million [Member] | Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,700 | ||||||
Debt instrument redeemed amount | $ 144 | ||||||
Weighted average interest rate | 1.70% | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Covenant Description | The net debt to EBITDA ratio limit is 6.25x through December 31, 2019, gradually declines to 5.75x in the third and fourth quarters of 2020, and continues to gradually decline over the remaining term of the RCF. | ||||||
Long Term Debt Payable Under Revolving Credit Facility | $ 0 | ||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long Term Debt Payable Under Revolving Credit Facility | $ 500 | ||||||
[1] | During the first six months of 2019, Teva repurchased and canceled approximately $144 million principal amount of its $1,700 million 1.7% senior notes due in July 2019. |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Current maturities of long-term liabilities | $ 2,256 | $ 1,700 |
Total short term debt | $ 2,771 | 2,216 |
Banks And Financial Institutions [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.25% | |
Short-term borrowings | $ 1 | 2 |
Convertible debentures [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 0.25% | |
Maturity | 2026 | |
Short-term borrowings | $ 514 | $ 514 |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Senior Notes and Loans (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | |||
Total senior notes | $ 28,313 | $ 28,483 | |
Less current maturities | (2,256) | (1,700) | |
Derivative instruments | (9) | 9 | |
Less debt issuance costs | (94) | (104) | |
Total senior notes and loans | $ 25,955 | 26,700 | |
Senior notes EUR 1,660 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 0.38% | ||
Maturity | 2020 | ||
Total senior notes | $ 1,886 | 1,897 | |
Senior notes EUR 1,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.13% | ||
Maturity | 2024 | ||
Total senior notes | $ 1,697 | 1,707 | |
Senior notes EUR 1,300 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.25% | ||
Maturity | 2023 | ||
Total senior notes | $ 1,472 | 1,480 | |
Senior notes EUR 900 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 4.50% | ||
Maturity | 2025 | ||
Total senior notes | $ 1,023 | 1,029 | |
Senior notes EUR 750 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.63% | ||
Maturity | 2028 | ||
Total senior notes | $ 846 | 850 | |
Senior notes EUR 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.25% | ||
Maturity | 2022 | ||
Total senior notes | $ 796 | 801 | |
Senior notes EUR 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.88% | ||
Maturity | 2027 | ||
Total senior notes | $ 794 | 798 | |
Senior notes USD 3,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.15% | ||
Maturity | 2026 | ||
Total senior notes | $ 3,493 | 3,493 | |
Senior notes USD 3,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.20% | ||
Maturity | 2021 | ||
Total senior notes | $ 2,998 | 2,997 | |
Senior notes USD 3,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.80% | ||
Maturity | 2023 | ||
Total senior notes | $ 2,994 | 2,993 | |
Senior notes USD 1,556 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [1] | 1.70% | |
Maturity | [1] | 2019 | |
Total senior notes | $ 1,556 | 1,700 | |
Senior notes USD 2,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 4.10% | ||
Maturity | 2046 | ||
Total senior notes | $ 1,985 | 1,985 | |
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.00% | ||
Maturity | 2024 | ||
Total senior notes | $ 1,250 | 1,250 | |
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.75% | ||
Maturity | 2028 | ||
Total senior notes | $ 1,250 | 1,250 | |
Senior notes USD 844 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.95% | ||
Maturity | 2022 | ||
Total senior notes | $ 858 | 860 | |
Senior notes USD 789 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.15% | ||
Maturity | 2036 | ||
Total senior notes | $ 782 | 782 | |
Senior notes USD 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.25% | ||
Maturity | 2020 | ||
Total senior notes | $ 700 | 700 | |
Senior notes USD 613 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.65% | ||
Maturity | 2021 | ||
Total senior notes | $ 619 | 621 | |
Senior notes USD 588 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.65% | ||
Maturity | 2021 | ||
Total senior notes | $ 587 | 587 | |
Senior notes CHF 350 Million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 0.50% | ||
Maturity | 2022 | ||
Total senior notes | $ 359 | 356 | |
Senior notes CHF 350 Million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.00% | ||
Maturity | 2025 | ||
Total senior notes | $ 359 | 356 | |
Hedge Accounting Adjustments [Member] | |||
Debt Instrument [Line Items] | |||
Total senior notes | $ 9 | (9) | |
Other Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.15% | ||
Maturity | 2026 | ||
Total senior notes and loans | $ 1 | $ 12 | |
[1] | During the first six months of 2019, Teva repurchased and canceled approximately $144 million principal amount of its $1,700 million 1.7% senior notes due in July 2019. |
Debt Obligations - Schedule o_3
Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail) - Jun. 30, 2019 € in Millions, SFr in Millions, $ in Millions | EUR (€) | CHF (SFr) | USD ($) |
Senior notes EUR 1,660 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | € | € 1,660 | ||
Senior notes EUR 1,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | € | 1,500 | ||
Senior notes EUR 1,300 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | € | 1,300 | ||
Senior notes EUR 900 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | € | 900 | ||
Senior notes EUR 750 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | € | 750 | ||
Senior notes EUR 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | € | 700 | ||
Senior notes EUR 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | € | € 700 | ||
Senior notes USD 3,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 3,500 | ||
Senior notes USD 3,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 3,000 | ||
Senior notes USD 3,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 3,000 | ||
Senior notes USD 1,556 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 1,556 | ||
Senior notes USD 2,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 2,000 | ||
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 1,250 | ||
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 1,250 | ||
Senior notes USD 844 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 844 | ||
Senior notes USD 789 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 789 | ||
Senior notes USD 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 700 | ||
Senior notes USD 613 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 613 | ||
Senior notes USD 588 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 588 | ||
Senior notes CHF 350 Million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | SFr | SFr 350 | ||
Senior notes CHF 350 Million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | SFr | SFr 350 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Items Carried at Fair Value (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | [1] | $ (403) | $ (507) |
Total | 1,835 | 1,338 | |
Asset Derivatives - Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 14 | 18 | |
interest rate and cross-currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 85 | 58 | |
Derivatives | (37) | (50) | |
Liabilities Derivatives Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | (55) | (26) | |
Money Markets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 401 | 203 | |
Cash, Deposits and Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 1,764 | 1,579 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 48 | 51 | |
Other, Mainly Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 18 | 12 | |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 2,218 | 1,835 | |
Level 1 [Member] | Money Markets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 401 | 203 | |
Level 1 [Member] | Cash, Deposits and Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 1,764 | 1,579 | |
Level 1 [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 48 | 51 | |
Level 1 [Member] | Other, Mainly Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 5 | 2 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 7 | ||
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 14 | 18 | |
Level 2 [Member] | interest rate and cross-currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 85 | 58 | |
Derivatives | (37) | (50) | |
Level 2 [Member] | Liabilities Derivatives Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | (55) | (26) | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | [1] | (403) | (507) |
Total | (390) | (497) | |
Level 3 [Member] | Other, Mainly Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | $ 13 | $ 10 | |
[1] | Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value at the beginning of the period | $ (497) |
Revaluation of debt securities | 3 |
Fair value at the end of the period | (390) |
Actavis Generics [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Actavis Generics transaction | 101 |
Eagle Transaction [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Adjustments to provisions for contingent consideration | (54) |
Settlement of contingent consideration | $ 57 |
Fair Value Measurement - Summ_3
Fair Value Measurement - Summary of Financial Instrument Measured on a Basis Other Than Fair Value (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | [1] | $ 25,489 | $ 25,700 |
Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | [1] | 22,770 | 23,560 |
Senior Notes and Convertible Senior Debentures Included Under Short-Term Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | [1] | $ 2,719 | $ 2,140 |
[1] | The fair value was estimated based on quoted market prices, where available. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Summary of Notional Amounts for Hedged Items, Designated as Hedge Accounting (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional amounts of hedge | $ 2,088 | $ 2,088 |
Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | ||
Derivative [Line Items] | ||
Notional amounts of hedge | 588 | 588 |
Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedge [Member] | ||
Derivative [Line Items] | ||
Notional amounts of hedge | 1,000 | 1,000 |
Asset Derivatives - Options and Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedge [Member] | ||
Derivative [Line Items] | ||
Notional amounts of hedge | $ 500 | $ 500 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | Net Investment Hedging [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | $ (37) | |
Designated as Hedging Instrument [Member] | Swap [Member] | Accounts Payable [Member] | Cash Flow Hedge [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | 76 | $ 58 |
Designated as Hedging Instrument [Member] | Swap [Member] | Other Current Liabilities [Member] | Fair Value Hedge [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | (9) | |
Designated as Hedging Instrument [Member] | Swap [Member] | Other Current Assets [Member] | Fair Value Hedge [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | 9 | |
Designated as Hedging Instrument [Member] | Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | Accounts Payable [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | (41) | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accounts Payable [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | (55) | (26) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | $ 14 | $ 18 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Information Regarding The Location And Amount Of Pretax (Gains) Losses Of Derivatives Designated In Fair Value Or Cash Flow Hedging Relationships (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Other Comprehensive Income | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ (76) | $ 614 | $ (170) | $ 418 | |
Other Comprehensive Income | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | [1] | 4 | (28) | (15) | (11) |
Other Comprehensive Income | Net Investment Hedging [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | [2] | 14 | (59) | (6) | (29) |
Financial expenses [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 206 | 236 | 425 | 507 | |
Financial expenses [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | [1] | (1) | (1) | (1) | |
Financial expenses [Member] | Net Investment Hedging [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | [2] | (7) | $ (9) | (15) | $ (16) |
Financial expenses [Member] | Fair Value Hedging [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | [3] | $ 1 | $ 1 | ||
[1] | With respect to cross-currency swap agreements, Teva recognized gains which mainly reflect the differences between the fixed interest rate and the floating interest rate. | ||||
[2] | In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500 million maturing in 2020. These cross currency swaps were designated as a net investment hedge of Teva’s foreign subsidiaries euro denominated net assets, in order to reduce the risk of adverse exchange rate fluctuations. With respect to these cross currency swap agreements, Teva recognized gains which mainly reflect the differences between the float-for-float interest rates paid and received. No amounts were reclassified from AOCI into income related to the sale of a subsidiary. | ||||
[3] | In the fourth quarter of 2016, Teva entered into an interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. With respect to this interest rate swap agreement, Teva recognized a loss which mainly reflects the differences between the fixed interest rate and the floating interest rate. |
Schedule Of Other Derivatives N
Schedule Of Other Derivatives Not Designated As Hedging Instruments Statements OfFinancial Performance And Financial Position Location (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Net Revenues [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ (4,337) | $ (4,701) | $ (8,632) | $ (9,766) | |
Net Revenues [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 4 | (1) | 4 | (1) | |
Financial expenses [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 206 | 236 | 425 | 507 | |
Financial expenses [Member] | Not Designated as Hedging Instrument, Trading [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Derivative Instruments, Net, Pretax | [1] | $ 34 | $ (24) | $ (7) | $ (5) |
[1] | Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses—net. |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jul. 31, 2016 | |
Derivative [Line Items] | |||||||||
Revenues other than USD | 49.00% | 49.00% | |||||||
Teva other comprehensive loss | $ 493 | ||||||||
Transactions termination loss settled | 242 | ||||||||
Forward starting interest rate swaps and treasury lock agreements losses | $ 7 | $ 7 | 15 | $ 14 | |||||
Interest Rate Swap Gain | $ 2 | $ 2 | $ 3 | $ 3 | |||||
Senior Notes Due 2023 Two [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount hedge debt | $ 500 | ||||||||
Previously hedge debt rate | 2.80% | ||||||||
Settlement gain position | $ 41 | ||||||||
Senior Notes Due 2022 [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount hedge debt | $ 844 | ||||||||
Previously hedge debt rate | 2.95% | ||||||||
Asset Derivatives - Options and Forward Contracts [Member] | Cash Flow Hedge [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount hedge debt | $ 3,750 | ||||||||
Treasury Lock [Member] | Cash Flow Hedge [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount hedge debt | $ 1,500 | ||||||||
Senior Notes Due 2021 [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount hedge debt | $ 450 | ||||||||
Previously hedge debt rate | 3.65% | ||||||||
Senior Notes Due 2020 [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount hedge debt | $ 500 | $ 500 |
Other assets impairments, res_3
Other assets impairments, restructuring and other items - Schedule of Other Assets Impairments, Restructuring and Other Items (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Restructuring and Impairment Costs [Line Items] | |||||
Impairments of long-lived tangible assets | [1] | $ 48 | $ 27 | $ 68 | $ 253 |
Contingent consideration | 24 | 47 | (47) | 55 | |
Restructuring | 47 | 107 | 79 | 354 | |
Other | (18) | 13 | 3 | 33 | |
Total | $ 101 | $ 194 | $ 103 | $ 695 | |
[1] | Including impairments related to exit and disposal activities |
Other assets impairments, res_4
Other assets impairments, restructuring and other items - Components of costs associated with restructuring plan including costs related to exit and disposal activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 47 | $ 107 | $ 79 | $ 354 |
Employee termination [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 36 | 90 | 56 | 318 |
Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 11 | $ 17 | $ 23 | $ 36 |
Other assets impairments, res_5
Other assets impairments, restructuring and other items - Summary of Restructuring Accruals (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $ (233) | |
Provision | (79) | |
Utilization and other | 112 | [1] |
Ending balance | (200) | |
Employee termination costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | (204) | |
Provision | (56) | |
Utilization and other | 67 | [1] |
Ending balance | (193) | |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | (29) | |
Provision | (23) | |
Utilization and other | 45 | [1] |
Ending balance | $ (7) | |
[1] | Includes adjustments for foreign currency translation. |
Other assets impairments, res_6
Other assets impairments, restructuring and other items - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)Positions | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Positions | Jun. 30, 2018USD ($) | |
Restructuring and Impairment Costs [Line Items] | ||||
Business combination contingent consideration arrangements change in amount of contingent consideration liability | $ 24 | $ 47 | $ (47) | $ 55 |
Restructuring costs | $ 47 | 107 | $ 79 | 354 |
Number of positions eliminated | Positions | 11,145 | 11,145 | ||
Expected revenue from Florida manufacturing plant in 2019 | $ 142 | |||
Recall and inventory reserves cost | 55 | |||
RD CIP project [Member] | ||||
Restructuring and Impairment Costs [Line Items] | ||||
Impairments of property, plant and equipment | $ 48 | 27 | 68 | 253 |
Restructuring Cost [Member] | ||||
Restructuring and Impairment Costs [Line Items] | ||||
Impairments of property, plant and equipment | $ 21 | $ 8 | $ 21 | $ 155 |
Legal Settlements and Loss Co_2
Legal Settlements and Loss Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||||
Legal settlements and loss contingencies, expenses | $ 646 | $ 20 | $ 703 | $ 1,258 | |
Accrued amount for legal settlements and loss contingencies | 1,149 | 1,149 | $ 562 | ||
opioid litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Legal settlements and loss contingencies, expenses | $ 85 | $ 85 |
Commitments and Contingencies -
Commitments and Contingencies - Contingencies - Additional Information (Detail) € in Millions, $ in Millions, $ in Millions | Oct. 04, 2018USD ($) | Jun. 27, 2018CAD ($) | Aug. 21, 2017USD ($) | Jul. 15, 2015USD ($) | May 31, 2019USD ($) | Nov. 30, 2018USD ($) | Nov. 30, 2017USD ($) | Jul. 31, 2015USD ($) | Sep. 30, 2013USD ($) | Apr. 30, 2013USD ($) | Aug. 31, 2012USD ($) | Dec. 31, 2010USD ($) | Nov. 30, 2009USD ($) | Aug. 31, 2008USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2014CAD ($) | Jun. 30, 2019CAD ($) | Jun. 30, 2019EUR (€) | Jun. 30, 2019USD ($) | Dec. 31, 2016USD ($) | May 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2014USD ($) | Aug. 31, 2013USD ($) | Jan. 31, 2009USD ($) | Jul. 31, 2008USD ($) | Feb. 28, 2005USD ($) |
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damages assessment | $ 235.5 | |||||||||||||||||||||||||||
Sales | $ 94 | |||||||||||||||||||||||||||
Modafinil payment | $ 1,200 | |||||||||||||||||||||||||||
Modafinil Euro sales | € | € 46.5 | |||||||||||||||||||||||||||
Annual sales at the time of settlement | $ 350 | |||||||||||||||||||||||||||
Annual sales of Effexor | $ 2,600 | |||||||||||||||||||||||||||
Annual sales of Lamictal | $ 2,300 | $ 950 | ||||||||||||||||||||||||||
Annual sales of Niaspan | $ 1,100 | $ 416 | ||||||||||||||||||||||||||
Annual sales of Aggrenox | $ 455 | $ 340 | ||||||||||||||||||||||||||
Annual sales of Actos | $ 2,800 | $ 3,700 | ||||||||||||||||||||||||||
Annual sales of Acto plus | $ 430 | $ 500 | ||||||||||||||||||||||||||
Annual sales of Namenda | $ 550 | $ 1,100 | ||||||||||||||||||||||||||
Annual sales of Intuniv | $ 335 | $ 327 | ||||||||||||||||||||||||||
Sales | $ 1,300 | |||||||||||||||||||||||||||
Sales | $ 459 | |||||||||||||||||||||||||||
Compensatory damages and penalties | $ 12.4 | |||||||||||||||||||||||||||
Punitive damages | $ 17.9 | |||||||||||||||||||||||||||
Litigation settlement amount | $ 135 | |||||||||||||||||||||||||||
Loss contingency payment | $ 22 | |||||||||||||||||||||||||||
Annual Sales Of Sensipar | $ 1,400 | |||||||||||||||||||||||||||
opioid litigation [Member] | ||||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||||
Litigation settlement amount | $ 85 | |||||||||||||||||||||||||||
Eosinophilic Esophagitis [Member] | ||||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damage claimed | 200 | |||||||||||||||||||||||||||
Eosinophilic Esophagitis [Member] | United States [Member] | ||||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damage claimed | 150 | |||||||||||||||||||||||||||
Eosinophilic Esophagitis [Member] | Europe [Member] | ||||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damage claimed | 50 | |||||||||||||||||||||||||||
AbbVie [Member] | ||||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||||
Legal fees | $ 448 | |||||||||||||||||||||||||||
Janssen and Millennium [Member] | ||||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||||
Maximum damages payable | $ 200 | |||||||||||||||||||||||||||
Litigation settlement awarded from other party | $ 5 | |||||||||||||||||||||||||||
AndroGel Rate at 1% [Member] | ||||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||||
Annual sales at the time of settlement | $ 140 |
Segments - Summary of Segment P
Segments - Summary of Segment Profit (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | $ 4,337 | $ 4,701 | $ 8,632 | $ 9,766 |
Gross profit | 1,893 | 2,033 | 3,749 | 4,348 |
R&D expenses | 276 | 290 | 537 | 607 |
S&M expenses | 666 | 682 | 1,313 | 1,420 |
G&A expenses | 296 | 316 | 589 | 645 |
Segment profit | (644) | (14) | (510) | 1,511 |
North America [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 2,071 | 2,263 | 4,118 | 4,794 |
Gross profit | 1,067 | 1,179 | 2,107 | 2,582 |
R&D expenses | 175 | 182 | 340 | 370 |
S&M expenses | 269 | 272 | 537 | 548 |
G&A expenses | 117 | 103 | 230 | 229 |
Other (income) expense | 2 | (100) | (2) | (202) |
Segment profit | 504 | 722 | 1,001 | 1,637 |
Europe [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 1,183 | 1,328 | 2,448 | 2,770 |
Gross profit | 674 | 727 | 1,404 | 1,519 |
R&D expenses | 70 | 73 | 136 | 146 |
S&M expenses | 216 | 233 | 431 | 483 |
G&A expenses | 70 | 78 | 119 | 169 |
Other (income) expense | 1 | (3) | (1) | (2) |
Segment profit | 316 | 346 | 719 | 723 |
International Markets [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 741 | 789 | 1,409 | 1,539 |
Gross profit | 312 | 328 | 582 | 641 |
R&D expenses | 24 | 25 | 46 | 49 |
S&M expenses | 119 | 130 | 234 | 264 |
G&A expenses | 34 | 37 | 70 | 78 |
Other (income) expense | (1) | (3) | (1) | (11) |
Segment profit | $ 136 | $ 139 | $ 233 | $ 261 |
Segments - Summary of Profit by
Segments - Summary of Profit by Segments and Reconciliation of Segments Profit to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||
Amounts allocated to segments: | ||||||
Segment profit | $ (644) | $ (14) | $ (510) | $ 1,511 | ||
Amounts not allocated to segments: | ||||||
Amortization | 285 | 302 | 568 | 612 | ||
Other assets impairments, restructuring and other items | 101 | 194 | 103 | 695 | ||
Goodwill impairment | 120 | 300 | ||||
Intangible asset impairments | 561 | 521 | 1,030 | 727 | ||
(Gain) loss on divestitures, net of divestitures related costs | (9) | 10 | (9) | (83) | ||
Other R&D expenses | [1] | [1] | 22 | |||
Costs related to regulatory actions taken in facilities | 12 | 4 | 16 | 5 | ||
Legal settlements and loss contingencies | 646 | 20 | 703 | (1,258) | ||
Other unallocated amounts | 59 | 81 | 129 | 142 | ||
Consolidated operating income (loss) | (644) | (14) | (510) | 1,511 | ||
Financial expenses, net | 206 | 236 | 425 | 507 | ||
Consolidated income (loss) before income taxes | (850) | (250) | (934) | 1,004 | ||
North America [Member] | ||||||
Amounts allocated to segments: | ||||||
Segment profit | 504 | 722 | 1,001 | 1,637 | ||
Amounts not allocated to segments: | ||||||
Consolidated operating income (loss) | 504 | 722 | 1,001 | 1,637 | ||
Europe [Member] | ||||||
Amounts allocated to segments: | ||||||
Segment profit | 316 | 346 | 719 | 723 | ||
Amounts not allocated to segments: | ||||||
Consolidated operating income (loss) | 316 | 346 | 719 | 723 | ||
International Markets [Member] | ||||||
Amounts allocated to segments: | ||||||
Segment profit | 136 | 139 | 233 | 261 | ||
Amounts not allocated to segments: | ||||||
Consolidated operating income (loss) | 136 | 139 | 233 | 261 | ||
Corporate Segment [Member] | ||||||
Amounts allocated to segments: | ||||||
Segment profit | 956 | 1,207 | 1,954 | 2,621 | ||
Amounts not allocated to segments: | ||||||
Consolidated operating income (loss) | 956 | 1,207 | 1,954 | 2,621 | ||
Other Segments [Member] | ||||||
Amounts allocated to segments: | ||||||
Segment profit | 55 | 31 | 76 | 52 | ||
Amounts not allocated to segments: | ||||||
Consolidated operating income (loss) | 55 | 31 | 76 | 52 | ||
Segments and Other Activities [Member] | ||||||
Amounts allocated to segments: | ||||||
Segment profit | 1,011 | 1,238 | 2,029 | 2,673 | ||
Amounts not allocated to segments: | ||||||
Consolidated operating income (loss) | $ 1,011 | $ 1,238 | $ 2,029 | $ 2,673 | ||
[1] | Represents an amount less than $1 million. |
Segments - Schedule of Revenues
Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Product Information [Line Items] | |||||
Revenues | $ 4,337 | $ 4,701 | $ 8,632 | $ 9,766 | |
Europe [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 1,183 | 1,328 | 2,448 | 2,770 | |
International Markets [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 741 | 789 | 1,409 | 1,539 | |
Generic products [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 946 | 947 | 1,913 | 2,035 | |
Generic products [Member] | Europe [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 844 | 907 | 1,763 | 1,904 | |
Generic products [Member] | International Markets [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 489 | 537 | 930 | 1,025 | |
COPAXONE [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 274 | 464 | 482 | 940 | |
COPAXONE [Member] | Europe [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 107 | 140 | 221 | 293 | |
COPAXONE [Member] | International Markets [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 13 | 22 | 27 | 38 | |
TREANDA and BENDEKA [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 115 | 160 | 229 | 341 | |
ProAir [Member] | |||||
Product Information [Line Items] | |||||
Revenues | [1] | 65 | 115 | 123 | 245 |
QVAR [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 60 | 30 | 124 | 137 | |
AJOVY [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 23 | 43 | |||
AUSTEDO [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 96 | 44 | 171 | 74 | |
Distribution [Member] | International Markets [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 164 | 154 | 315 | 307 | |
Respiratory Product [Member] | Europe [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 89 | 106 | 181 | 219 | |
Anda [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 351 | 320 | 729 | 651 | |
Other [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 141 | 183 | 305 | 372 | |
Other [Member] | Europe [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 143 | 175 | 283 | 354 | |
Other [Member] | International Markets [Member] | |||||
Product Information [Line Items] | |||||
Revenues | $ 75 | $ 76 | $ 137 | $ 168 | |
[1] | Does not include sales of ProAir authorized generic, which are included under generics. |
Segments - Additional Informati
Segments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
Other Income - Schedule of Othe
Other Income - Schedule of Other Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Other Income [Line Items] | |||||
Gain on divestitures, net of divestitures related costs | [1] | $ 9 | $ (10) | $ 9 | $ 83 |
Section 8 and similar payments | [2] | 95 | 194 | ||
Gain on sale of assets | (5) | 1 | (4) | 9 | |
Other, net | 5 | 10 | 11 | 13 | |
Total other income | $ 9 | $ 96 | $ 15 | $ 299 | |
[1] | Mainly related to the divestment of the women’s health business and the dissolution of PGT in 2018. | ||||
[2] | Section 8 of the Patented Medicines (Notice of Compliance) Regulation relates to recoveries of lost revenue related to patent infringement proceedings in Canada. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
IncomeTaxesLineItems [Line Items] | ||||
Income tax expense (benefit) | $ (179) | $ (76) | $ (170) | $ (30) |
Effective Income Tax Rate Reconciliation, Percent | 21.00% | 30.00% | 18.00% | |
Pre-tax income (loss) | $ (850) | $ (250) | $ (934) | $ 1,004 |
Israel Tax Authority [Member] | ||||
IncomeTaxesLineItems [Line Items] | ||||
Statutory Israeli corporate tax rate | 23.00% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Operating lease cost: | ||
Fixed payments and variable payments that depend on an index or rate | $ 36 | $ 78 |
Variable lease payments not included in the lease liability | 2 | 4 |
Short-term lease cost | 1 | 3 |
Total operating lease cost | $ 39 | $ 85 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information related to leases (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 79 |
Right-of-use assets obtained in exchange for lease obligations (non-cash): | |
Operating leases | $ 46 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related To Leases (Detail) $ in Millions | Jun. 30, 2019USD ($) |
Operating leases: | |
Operating lease ROU assets | $ 500 |
Other current liabilities | 120 |
Operating lease liabilities | 426 |
Total operating lease liabilities | $ 546 |
Weighted average Remaining Lease Term | 7 years 8 months 12 days |
Weighted average Discount Rate | 5.90% |
Leases - Maturities of lease l
Leases - Maturities of lease liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
2019 (excluding the six months ended June 30, 2019) | $ 87 | $ 193 |
2020 | 124 | 154 |
2021 | 100 | 118 |
2022 | 78 | 91 |
2023 | 58 | 66 |
2024 and thereafter | 266 | 283 |
Total operating lease payments | 713 | $ 905 |
Less: imputed interest | 167 | |
Present value of lease liabilities | $ 546 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Mar. 31, 2019 | |
Operating leases rent expense net | $ 90 | $ 175 | ||
Operating Lease description | Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. | |||
Lessee Operating Lease Not Yet Commenced | $ 94 | |||
Term of contract, operating leases not yet commenced | 2020 years | |||
Lessee Operating Lease Option To Extend Term | 15 years | |||
Finance Lease, Right-of-Use Asset | $ 78 | |||
Finance Lease, Liability | $ 27 | |||
Maximum [Member] | ||||
Operating lease remaining lease term | 80 years | |||
Term of contract, operating leases not yet commenced | 12 years | |||
Minimum [Member] | ||||
Operating lease remaining lease term | 1 year | |||
Term of contract, operating leases not yet commenced | 9 years | |||
Leasehold Improvements [Member] | Maximum [Member] | ||||
Capitalized land lease estimated useful lives maximum | 99 years | |||
Leasehold Improvements [Member] | Minimum [Member] | ||||
Capitalized land lease estimated useful lives maximum | 30 years |