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TEVA Teva- Pharmaceutical Industries

Cover Page

Cover Page9 Months Ended
Sep. 30, 2020shares
Cover [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Fiscal Year Focus2020
Document Transition Reportfalse
Document Period End DateSep. 30,
2020
Document Fiscal Period FocusQ3
Document Quarterly Reporttrue
Entity Registrant NameTEVA PHARMACEUTICAL INDUSTRIES LTD
Entity Central Index Key0000818686
Current Fiscal Year End Date--12-31
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Common Stock, Shares Outstanding1,095,971,556
Title of 12(b) SecurityOrdinary Share
Trading SymbolTEVA
Security Exchange NameNYSE
Entity File Number001-16174
Entity Incorporation, State or Country CodeIL
Entity Tax Identification Number00-0000000
Entity Address, Address Line One5 Basel Street
Entity Address, City or TownPetach Tikva
Entity Address, Postal Zip Code4951033
Entity Address, CountryIL
City Area Code+972 (3)
Local Phone Number914-8171
Entity Filer CategoryLarge Accelerated Filer
Smaller Reporting Companyfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Current assets:
Cash and cash equivalents $ 1,827 $ 1,975
Accounts receivables, net of allowance for credit losses of $117 million and $135 million as of September 30, 2020 and December 31, 20194,385 5,676
Inventories4,516 4,422
Prepaid expenses895 870
Other current assets423 434
Assets held for sale113 87
Total current assets12,160 13,464
Deferred income taxes509 386
Other non-current assets822 591
Property, plant and equipment, net6,152 6,436
Operating lease right-of-use assets557 514
Identifiable intangible assets, net9,308 11,232
Goodwill[1]20,228 24,846
Total assets49,737 57,470
Current liabilities:
Short-term debt2,106 2,345
Sales reserves and allowances4,998 6,159
Accounts payables1,716 1,718
Employee-related obligations601 693
Accrued expenses1,735 1,869
Other current liabilities946 889
Total current liabilities12,103 13,674
Long-term liabilities:
Deferred income taxes874 1,096
Other taxes and long-term liabilities2,181 2,640
Senior notes and loans23,515 24,562
Operating lease liabilities472 435
Total long-term liabilities27,042 28,733
Commitments and contingencies, see note 10
Total liabilities39,145 42,407
Teva shareholders' equity:
Ordinary shares of NIS 0.10 par value per share; September 30, 2020 and December 31, 2019: authorized 2,495 million shares; issued 1,202 million shares and 1,198 million shares, respectively57 56
Additional paid-in capital27,403 27,312
Accumulated deficit(11,096)(6,956)
Accumulated other comprehensive loss(2,643)(2,312)
Treasury shares as of September 30, 2020 and December 31, 2019 — 106 million ordinary shares(4,128)(4,128)
Stockholders' equity attributable to Teva shareholders9,593 13,972
Non-controlling interests999 1,091
Total equity10,592 15,063
Total liabilities and equity $ 49,737 $ 57,470
[1]Accumulated goodwill impairment as of September 30, 2020 and December 31, 2019 was approximately $25.6 billion and $21.0 million, respectively.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) shares in Millions, $ in MillionsSep. 30, 2020USD ($)sharesSep. 30, 2020SFr / sharesDec. 31, 2019USD ($)sharesDec. 31, 2019SFr / shares
Allowance for credit losses | $ $ 117 $ 135
Common stock, par or stated value per share | SFr / shares SFr 0.10 SFr 0.10
Ordinary shares, authorized2,495 2,495
Ordinary shares, issued1,202 1,198
Treasury shares106 106

Consolidated Statements of Inco

Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Net revenues $ 3,978 $ 4,093 $ 12,206 $ 12,420
Cost of sales2,126 2,264 6,528 6,841
Gross profit1,852 1,830 5,678 5,579
Research and development expenses258 240 704 778
Selling and marketing expenses605 595 1,815 1,908
General and administrative expenses279 285 846 873
Intangible assets impairments509 177 1,278 1,206
Goodwill impairment4,628 0 4,628 0
Other assets impairments, restructuring and other items(98)160 404 263
Legal settlements and loss contingencies21 468 10 1,171
Other income(8)(14)(30)(29)
Operating (loss) income(4,342)(81)(3,978)(591)
Financial expenses, net117 211 565 635
Income (loss) before income taxes(4,459)(292)(4,543)(1,226)
Income taxes (benefit)16 11 (147)(159)
Share in (profits) losses of associated companies, net(136)4 (135)8
Net income (loss)(4,340)(307)(4,261)(1,076)
Net income (loss) attributable to non-controlling interests10 7 (121)33
Net income (loss) attributable to Teva $ (4,349) $ (314) $ (4,140) $ (1,108)
Earnings (loss) per share attributable to ordinary shareholders:
Basic $ (3.97) $ (0.29) $ (3.78) $ (1.02)
Diluted $ (3.97) $ (0.29) $ (3.78) $ (1.02)
Weighted average number of shares (in millions):
Basic1,096 1,092 1,095 1,091
Diluted1,096 1,092 1,095 1,091

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Net income (loss) $ (4,340) $ (307) $ (4,261) $ (1,076)
Other comprehensive income (loss), net of tax:
Currency translation adjustment70 (138)(348)(5)
Unrealized gain (loss) from derivative financial instruments9 87 46 124
Unrealized gain from available-for-sale securities0 (2)0 (1)
Unrealized loss on defined benefit plans0 0 0 (1)
Total other comprehensive income (loss)79 (53)(302)117
Total comprehensive income (loss)(4,261)(360)(4,563)(959)
Comprehensive income (loss) attributable to non-controlling interests27 7 (92)56
Comprehensive income (loss) attributable to Teva $ (4,288) $ (367) $ (4,471) $ (1,015)

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($) shares in Millions, $ in MillionsTotalOrdinary Shares [Member]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, 2018 $ 15,794 $ 56 $ 27,210 $ (5,958) $ (2,459) $ (4,142) $ 14,707 $ 1,087
Beginning balance, shares at Dec. 31, 20181,196
Net Income (loss)(1,076)(1,108)(1,108)33
Other Comprehensive income (loss)117 94 94 23
Issuance of Shares, shares2
Issuance of Treasury shares6 (8)14 6
Stock-based compensation expense99 99 99
Transactions with non-controlling interest(8)(8)
Other(8)(8)(8)
Ending balance at Sep. 30, 201914,925 $ 56 27,293 (7,066)(2,365)(4,128)13,790 1,134
Ending balance, shares at Sep. 30, 20191,198
Beginning balance at Jun. 30, 201915,251 $ 56 27,258 (6,752)(2,312)(4,128)14,122 1,128
Beginning balance, shares at Jun. 30, 20191,198
Net Income (loss)(307)(314)(314)7
Other Comprehensive income (loss)(53)(53)(53)
Issuance of Shares, value[1]
Stock-based compensation expense35 35 35
Ending balance at Sep. 30, 201914,925 $ 56 27,293 (7,066)(2,365)(4,128)13,790 1,134
Ending balance, shares at Sep. 30, 20191,198
Beginning balance at Dec. 31, 201915,063 $ 56 27,312 (6,956)(2,312)(4,128)13,972 1,091
Beginning balance, shares at Dec. 31, 20191,198
Net Income (loss)(4,261)(4,140)(4,140)(121)
Other Comprehensive income (loss)(302)(331)(331)29
Issuance of Shares, value[1]
Issuance of Shares, shares4
Stock-based compensation expense91 91 91
Ending balance at Sep. 30, 202010,592 $ 57 27,403 (11,096)(2,643)(4,128)9,593 999
Ending balance, shares at Sep. 30, 20201,202
Beginning balance at Jun. 30, 202014,824 $ 57 27,374 (6,747)(2,703)(4,128)13,852 972
Beginning balance, shares at Jun. 30, 20201,202
Net Income (loss)(4,340)(4,349)(4,349)10
Other Comprehensive income (loss)79 61 61 18
Issuance of Shares, value[1]
Stock-based compensation expense29 29 29
Ending balance at Sep. 30, 2020 $ 10,592 $ 57 $ 27,403 $ (11,096) $ (2,643) $ (4,128) $ 9,593 $ 999
Ending balance, shares at Sep. 30, 20201,202
[1]Represents an amount less than $0.5 million.

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Maximum [Member] | Ordinary Shares [Member]
Exercise of options by employees and vested RSUs $ 0.5 $ 0.5 $ 0.5 $ 0.5

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Operating activities:
Net income (loss) $ (4,261) $ (1,076)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization1,162 1,306
Impairment of long-lived assets and assets held for sale6,314 1,302
Net change in operating assets and liabilities(1,627)(784)
Deferred income taxes – net and uncertain tax positions(656)(652)
Stock-based compensation91 99
Net loss (gain) from investments and from sale of long lived assets(232)10
Research and development in process40 0
Other items54 5
Net cash provided by operating activities885 210
Investing activities:
Beneficial interest collected in exchange for securitized accounts receivables1,102 1,108
Purchases of property, plant and equipment(402)(406)
Proceeds from sale of long lived assets54 167
Other investing activities(32)56
Net cash provided by investing activities722 925
Financing activities:
Repayment of senior notes and loans and other long-term liabilities(1,871)(1,715)
Net change in short-term debt115 96
Tax withholding payments made on shares and dividends0 (52)
Other financing activities(4)(14)
Net cash used in financing activities(1,760)(1,685)
Translation adjustment on cash and cash equivalents5 9
Net change in cash and cash equivalents(148)(541)
Balance of cash and cash equivalents at beginning of period1,975 1,782
Balance of cash and cash equivalents at end of period1,827 1,241
Non-cash financing and investing activities:
Beneficial interest obtained in exchange for securitized accounts receivables $ 1,055 $ 1,123

Basis of presentation

Basis of presentation9 Months Ended
Sep. 30, 2020
Basis of presentationNote 1 – Basis of presentation:
a. 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 In the process of preparing the consolidated financial statements, management makes estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities. The inputs into Teva’s judgments and estimates also consider the economic implications of the COVID-19 COVID-19 COVID-19 The results of operations for the nine months ended September 30, 2020 are not necessarily indicative of results that could be expected for the entire fiscal year. Certain amounts in the consolidated financial statements and associated notes may not add up due to rounding. All percentages have been calculated using unrounded amounts.
b. Significant accounting policies Change in the annual goodwill assessment date The Company has historically performed its annual goodwill assessment during the fourth quarter of each year. During the second quarter of 2020, the Company decided to change the date of its annual impairment assessment from October 1 to June 30. The change was made to more closely align the impairment assessment date with the Company’s long-term planning and forecasting process. See note 6. Recently adopted accounting pronouncements In March 2020, the FASB issued ASU 2020-04 In April 2019, the FASB issued ASU 2019-04 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 adoption. Teva adopted the provisions of this update as of January 1, 2020 with no material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 In June 2016, the FASB issued ASU 2016-13 Recently issued accounting pronouncements, not yet adopted In August 2020, the FASB issued ASU 2020-06 470-20) In December 2019, the FASB issued ASU 2019-12 year-to-date In addition, the update also simplifies the accounting for income taxes in certain topics as follows: (1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based
c. Revision of Previously Reported Consolidated Financial Statements In connection with the preparation of Teva’s consolidated financial statements for the fiscal year ended December 31, 2019, Teva determined that in the full years and interim periods of fiscal years 2017 and 2018, and the first three quarters of fiscal year 2019, it had an immaterial error in the presentation of distribution revenues from its Israeli distribution business. This business is part of the International Markets reporting segment and facilitates distribution of Teva and third party products to pharmacies, hospitals and other organizations in Israel. Specifically, the Company concluded that it presented revenues from its Israeli distribution business on a gross basis, although it should have reported such revenues on a net basis. Because Teva has no discretion in establishing prices for any specified goods or services, limited inventory risk and is not primarily responsible for contract fulfillment, Teva does not meet the criteria for reporting revenues from such business as a principal (on a gross basis), as opposed to as an agent (on a net basis). The Company evaluated the cumulative impact of this item on its previously issued annual financial statements for 2017 and 2018, and the interim financial statements for 2017, 2018 and the first three quarters of 2019, and concluded that, for the reasons mentioned below, the revisions were not material, individually or in the aggregate, to any of its previously-issued interim or annual financial statements. Teva has revised its presentation of net revenue and cost of sales in the historical consolidated financial statements to reflect the change in this item, as described in more detail below. The impact of this revision is a decrease in net revenues with an offsetting decrease in cost of sales. There is no impact on gross profit, operating income or earnings per share. In addition, there is no impact on Teva’s balance sheet or statement of cash flows for the related periods. The following table summarizes the impact of the revision on net revenues and cost of sales in the consolidated statements of income for the relevant periods:
Net revenues Cost of sales
As reported Adjustment As revised As reported Adjustment As revised
(U.S. $ in millions)
2019 Q1 4,295 (146 ) 4,149 2,440 (146 ) 2,293
Q2 4,337 (159 ) 4,177 2,443 (159 ) 2,284
Q3 4,264 (171 ) 4,093 2,435 (171 ) 2,264
Total 12,896 (477 ) 12,420 7,318 (477 ) 6,841

Certain transactions

Certain transactions9 Months Ended
Sep. 30, 2020
Certain transactionsNOTE 2 – Certain transactions: 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. Alvotech Partnership In August 2020, Teva entered into an exclusive partnership agreement with biopharmaceutical company Alvotech for the commercialization in the U.S. of five biosimilar product candidates. The initial pipeline for this partnership contains biosimilar candidates addressing multiple therapeutic areas. Under this agreement, Alvotech will be responsible for the development, registration and supply of the biosimilar product candidates and Teva will exclusively commercialize the products in the United States. The agreement includes an upfront payment payable by Teva, which was paid in the third quarter of 2020. Additional development and commercial milestone payments of up to $490 million, as well as royalty payments, may be 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 intellectual property 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 million upfront payment that was recognized as revenue during the first quarter of 2018, and a million milestone payment in March 2020 that was recognized as revenue in the first quarter of 2020. The agreement stipulates additional development and commercial milestone payments to Teva of up to million, as well as future royalties. 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. There are no further plans in this indication following clinical trial results received in February 2020, which failed to meet their primary endpoints. 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. Results for these trials were received in January 2020 indicating that primary and secondary endpoints were achieved and that no clinically significant adverse events were observed in subjects. In the third quarter of 2020, Otsuka submitted an application to obtain manufacturing and marketing approval for AJOVY in Japan and, as a result, paid Teva a milestone payment of $15 million. Teva may receive additional milestone payments upon achievement of certain revenue targets. Otsuka will also pay Teva royalties on AJOVY sales in Japan. Celltrion In October 2016, Teva and Celltrion, Inc. (“Celltrion”) entered into a collaborative agreement to commercialize TRUXIMA ® ® $160 million, of which Teva received an aggregate credit of $60 million as of September 30, 2020. Teva and Celltrion share the profit from the commercialization of these products. These two products, TRUXIMA and HERZUMA, were approved by the FDA in November and December 2018, respectively and were launched in the United States in November 2019 and March 2020, respectively. 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 and additional payments for achievement of development milestones in an aggregate amount of $120 million were paid during 2017 and 2018. The agreement stipulates additional development and commercial milestone payments of up to $2,230 million, as well as future royalties. Tel-Aviv At the end of the third quarter of 2020, after obtaining the right to use the building, Teva began transitioning its corporate headquarters to a consolidated site in Tel-Aviv, Israel. Teva has an operating lease for the office space in Tel Aviv for an initial term of twelve and a half years, with an option for three extensions. Teva estimates that the reasonably certain holding period of the lease for accounting purposes is twelve and a half years $74 million as operating lease right-of-use Assets and Liabilities Held For Sale: Certain assets of Teva’s business venture in Japan Teva operates its business in Japan, which is part of Teva’s International Market segment, through a business venture with The Takeda Pharmaceutical Company Limited (“Takeda”), in which Teva owns a 51% stake and Takeda owns the remaining 49%. During the second quarter of 2020, Teva and Takeda decided to sell the majority of the business venture’s generic and operational assets. The purchase agreement was signed in July 2020 and Teva expects this transaction to close by early 2021. The closing of the transaction is subject to customary closing conditions. Teva is accounting for the business venture assets and liabilities to be sold as held for sale and determined that the fair value less cost to sell did not exceed the carrying value, resulting in an impairment charge of $261 million in other assets impairments, restructuring and other items recognized in the second quarter of 2020. Teva determined that the sale of this portion of the Teva-Takeda business venture, whether pending or completed, does not constitute a strategic shift for Teva, and does not and will not have a major effect on its operations and financial results. Accordingly, the operations associated with the transactions are not reported as discontinued operations. Assets held for sale include the Teva-Takeda business venture assets that are held for sale and other manufacturing assets that are expected to be sold within the next year. The table below summarizes all Teva assets included as held for sale as of September 30, 2020 and December 31, 2019:
September 30, December 31,
2020 2019
(U.S. $ in millions)
Inventories 160 —
Property, plant and equipment, net and others 239 98
Goodwill 27 —
Adjustments of assets held for sale to fair value (313 ) (11 )
Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 113 $ 87

Revenue from contracts with cus

Revenue from contracts with customers9 Months Ended
Sep. 30, 2020
Revenue from contracts with customersNOTE 3 – Revenue from contracts with customers: Disaggregation of revenue The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 15.
Three months ended September 30, 2020
North Europe International Other Total
(U.S. $ in millions)
Sale of goods 1,660 1,116 478 173 3,427
Licensing arrangements 17 7 2 1 27
Distribution 341 § 9 — 350
Other (1 ) (8 ) 41 142 174
$ 2,017 $ 1,116 $ 529 $ 316 $ 3,978
§ Represents an amount less than $1 million.
Three months ended September 30, 2019
North Europe International Other Total
(U.S. $ in millions)
Sale of goods 1,674 1,153 511 176 3,514
Licensing arrangements 26 7 1 1 36
Distribution 351 1 5 — 357
Other § 2 48 136 186
$ 2,051 $ 1,163 $ 565 $ 314 $ 4,093
§ Represents an amount less than $1 million.
Nine months ended September 30, 2020
North Europe International Other Total
(U.S. $ in millions)
Sale of goods 4,943 3,487 1,417 561 10,408
Licensing arrangements 59 22 6 3 90
Distribution 1,141 3 21 — 1,165
Other 3 9 138 394 543
$ 6,146 $ 3,520 $ 1,582 $ 957 $ 12,206
Nine months ended September 30, 2019
North Europe International Other Total
(U.S. $ in millions)
Sale of goods 4,997 3,586 1,505 566 10,653
Licensing arrangements 92 22 3 4 121
Distribution 1,080 1 14 — 1,095
Other § 2 146 402 549
$ 6,169 $ 3,611 $ 1,668 $ 972 $ 12,420
§ Represents an amount less than $1 million. The financial data presented in the tables above with respect to prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c. Variable consideration Variable consideration mainly includes sales reserves and allowances (“SR&A”), comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against accounts receivables. The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. SR&A to U.S. customers comprised approximately 80% of the Company’s total SR&A as of September 30, 2020, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the nine months ended September 30, 2020 and 2019 were as follows:
Sales Reserves and Allowances
Reserves Rebates Medicaid Chargebacks Returns Other Total reserves Total
(U.S. $ in millions)
Balance at December 31, 2019 $ 87 $ 2,895 $ 1,109 $ 1,342 $ 637 $ 176 $ 6,159 $ 6,246
Provisions related to sales made in current year 285 3,649 566 6,268 299 55 10,837 11,122
Provisions related to sales made in prior period s — (192 ) (116 ) (33 ) (11 ) 2 (350 ) (350 )
Credits and payments (298 ) (4,224 ) (650 ) (6,418 ) (289 ) (79 ) (11,660 ) (11,958 )
Translation differences — 10 4 2 — (4 ) 12 12
Balance at September 30, 2020 $ 74 2,138 $ 913 $ 1,161 $ 636 $ 150 $ 4,998 $ 5,072
Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves 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 334 4,004 760 7,196 195 308 12,463 12,797
Provisions related to sales made in 3 (28 ) (2 ) (1 ) 23 (7 ) (15 ) (12 )
Credits and payments (356 ) (4,276 ) (882 ) (7,299 ) (251 ) (295 ) (13,003 ) (13,359 )
Translation differences — (14 ) (4 ) (1 ) (1 ) 1 (19 ) (19 )
Balance at September 30, 201 9 $ 156 2,692 $ 1,233 $ 1,425 $ 604 $ 183 $ 6,137 $ 6,293
Allowance for credit losses Accounts receivable are recognized net of allowance for credit losses. Allowances for credit losses were $117 million and $135 million as of September 30, 2020 and December 31, 2019, respectively.

Inventories

Inventories9 Months Ended
Sep. 30, 2020
InventoriesNOTE 4 – Inventories: Inventories, net of reserves, consisted of the following:
September 30, December 31,
(U.S. $ in millions)
Finished products $ 2,384 $ 2,504
Raw and packaging materials 1,334 1,183
Products in process 635 583
Materials in transit and payments on account 163 151
Total $ 4,516 $ 4,422

Identifiable Intangible Assets

Identifiable Intangible Assets9 Months Ended
Sep. 30, 2020
Identifiable Intangible AssetsNOTE 5 – Identifiable intangible assets: Identifiable intangible assets consisted of the following:
Gross carrying amount net of Accumulated amortization Net carrying amount
September 30, December 31, September 30, December 31, September 30, December 31,
2020 2019 2020 2019 2020 2019
(U.S. $ in millions)
Product rights $ 19,520 $ 19,663 $ 11,665 $ 10,640 $ 7,856 $ 9,023
Trade names 609 600 154 126 455 474
In process research and development 998 1,735 — — 998 1,735
Total $ 21,128 $ 21,998 $ 11,819 $ 10,766 $ 9,308 $ 11,232
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 therapeutic categories from various acquisitions with a weighted average life of approximately 12 years. Amortization of intangible assets was $251 million and $255 million in the three months ended September 30, 2020 and 2019, respectively. Amortization of intangible assets was $758 million and $823 million in the nine 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 various generic products from the Actavis Generics acquisition of $ million. IPR&D carries intrinsic risks that the asset might not succeed in advanced phases and may be impaired in future periods. Intangible assets impairments Impairments of long-lived intangible assets for the three months ended September 30, 2020 and 2019 , Impairments in the third quarter of 2020 consisted of:
(a) IPR&D assets million, ma inly Revlimid ® ) due to modified competition assumptions as a result of settlements between the innovator and other generic filers; and (ii) $96 million related to generic pipeline products acquired from Actavis Generics resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date) in the United States; and
(b) Identifiable product rights million, due to: (i) $110 million related to a change in the assumptions regarding competition for the expected relaunch of Impairments in the third quarter of 2019 consisted of:
(a) Identifiable product rights of $99 million, mainly due to supply challenges in connection with products primarily marketed in Hong Kong; and
(b) IPR&D assets of $78 million, mainly du e Impairments of long-lived intangible assets for the nine months ended September 30, 2020 and 2019, were $1,278 million and $1,206 million, respectively. Impairments in the first nine months of 2020 consisted of:
(a) IPR&D assets of $708 million, mainly due to: (i) $262 million related to lenalidomide (generic equivalent of Revlimid ® , (iii) $213
(b) Identifiable product rights of $570 million, mainly due to: (i) $271 million related Generics that are competition; and (iii) $110 million related to a change in the assumptions regarding competition for the expected relaunch of tablets Impairments in the first nine months of 2019 consisted of:
(a) Identifiable product rights of $667 million, mainly due to updated market assumptions regarding price and volume of products acquired from Actavis Generics and primarily marketed in the United States; and
(b) IPR&D assets of $539 million: (i) $355 million of various 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, (ii) $125 million related to lenalidomide (generic equivalent of Revlimid ® The fair value measurement of the impaired intangible assets in the first nine months of 2020 is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The discount rate applied ranged from 7.5% to 9%. A probability of success factor of 80% was used in the fair value calculation to reflect inherent regulatory and commercial risk of IPR&D.

Goodwill

Goodwill9 Months Ended
Sep. 30, 2020
Goodwill NOTE 6 – Goodwill: The changes in the carrying amount of goodwill for the period ended September 30, 2020 were as follows:
North America Europe International Other Total
(U.S. $ in millions)
Balance as of December 31, 2019 (1) $ 11,091 $ 8,536 $ 2,532 $ 2,687 $ 24,846
Changes during the period:
Goodwill reclassified as assets held for sale — (8 ) (19 ) — (27 )
Goodwill impairment (4,628 ) — — — (4,628 )
Translation differences (10 ) 253 (206 ) — 37
Balance as of S eptember $ 6,453 $ 8,781 $ 2,307 $ 2,687 $ 20,228
(1) Accumulated goodwill impairment as of September 30, 2020 and December 31, 2019 was approximately $25.6 billion and $21.0 billion Teva operates its business through three reporting segments: North America, Europe and International Markets. Each of these business segments is a reporting unit. Additional reporting units include Teva’s production and sale of APIs to third parties (“Teva API”) and an out-licensing 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 weighted average cost of capital (“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 may record an impairment of goodwill allocated to these reporting units in the future. First Quarter Developments During the first quarter of 2020, management assessed developments that occurred during the quarter, including expected effects of the COVID-19 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, 2020 and, therefore, no quantitative assessment was performed. Second Quarter Developments Pursuant to Company policy, the Company has historically performed its annual goodwill assessment during the fourth quarter of each year. During the second quarter of 2020, the Company changed its annual impairment assessment date from October 1 to June 30 to more closely align the impairment assessment date with the Company’s long-term planning and forecasting process. During the second quarter of 2020, Teva conducted a quantitative analysis of all reporting units as part of its annual goodwill impairment test and utilized the assistance of an independent valuation expert. No goodwill impairment charge was recorded during the second quarter of 2020. As part of the aforementioned analysis, Teva analyzed the aggregated fair value of its reporting units compared to its market capitalization as part of its annual goodwill impairment test, in order to assess the reasonableness of the results of its cash flow projections used for its goodwill impairment analysis. Management noted differences between the market capitalization and management’s internal projections as of the end of the second quarter. As of June 30, 2020, those differences were believed to be attributable to the following:
• Management noted a portion of the difference can be attributed to sales projections of AJOVY and AUSTEDO in the International Markets reporting unit. Management continues to believe that the majority of analysts do not focus on these brands in preparing their financial models and, as a result, have not attributed value to the launch potential in this reporting unit
• Management noted an additional difference can be attributed to sales projections of AUSTEDO in the North America reporting unit, resulting in higher fair value as analyzed by management compared to Teva’s market capitalization. Management continues to believe that it has more accurate information based on its knowledge of the market and its growth and therefore no adjustment was incorporated to the fair value.
• Management noted that market concerns regarding the uncertainty related to the opioid and price fixing litigation risks are impacting its market capitalization. Management believes that these concerns led to an acute reaction, which resulted in a decline in Teva’s share price. Management believed developments in the opioids case would clarify the outlook with regards to the opioid litigation, when the proposed settlement framework is finalized, which was expected in the near term. Even if management was to adjust the fair value of the North America reporting unit for any one of the uncertainties noted, the estimated fair value would still exceed its carrying amount. Management also noted that negative results related to all the uncertainties noted may lead to a material goodwill impairment charge. Third Quarter Developments During the third quarter of 2020, Teva’s share price experienced further decline. Teva analyzed its aggregated internal valuation of its reporting units compared to its market capitalization as part of its goodwill impairment test. Management believes there are similar reconciling factors to those referenced in the second quarter with additional declines occurring due to increasing uncertainty related to certain litigation actions in the third quarter and the related uncertainties it added to the existing concerns around financial strength. During the third quarter of 2020, management noted the following factors that led to an assessment of the North America reporting unit for impairment:
• The Company noted a 25% reduction in its market capitalization from the second quarter of 2020 to the third quarter of 2020.
• With respect to the opioids litigation, as discussions continue with the group of Attorneys General regarding the nationwide framework and trial dates are postponed largely due to the COVID-19
• On August 25, 2020, the Company was indicted by the U.S. Department of Justice for alleged violations of the Sherman Act.
• On August 18, 2020, the Company was sued by the U.S. Department of Justice alleging violations of the federal Anti-Kickback Statute, and asserting causes of action under the federal False Claims Act and state law. The Company is committed to its projected cash flow targets and management’s views on the litigation exposures have not changed. However, recent developments indicate the timeframe for resolution will take significantly longer than previously expected which introduces greater uncertainty to a favorable resolution. In addition, management believes that analysts are unlikely to modify their projections until the Company can demonstrate progression on the resolution with respect to some or all of the above legal matters. As such, for purposes of testing the goodwill in the North America reporting unit under ASC 350, management has incorporated these factors into its valuation of the North America reporting unit, resulting in an impairment charge of $4,628 million. Teva does not believe there has been a triggering event related to the other reporting units. The other reporting units all have fair values in excess of 10% over their book values.

Debt obligations

Debt obligations9 Months Ended
Sep. 30, 2020
Debt obligationsNOTE 7 – Debt obligations: a. Short-term debt:
September 30, 2020 December 31, 2019
Weighted average interest Maturity
(U.S. $ in millions)
Revolving Credit Facility LIBOR+1.75 % $ 117 $ —
Convertible senior 0.25 % 2026 514 514
Current maturities of long-term liabilities 1,474 1,831
Total short-term debt $ 2,106 $ 2,345
Convertible senior debentures Teva’s 0.25% convertible senior debentures due 2026, with $514 million principal amount outstanding as of September Long-term debt:
Weighted average interest Maturity September 30, December 31,
(U.S. $ in millions)
Senior notes EUR 1,010 million (1) 0.38 % 2020 — 1,131
Senior notes EUR 1,500 million 1.13 % 2024 1,755 1,673
Senior notes EUR 1,300 million 1.25 % 2023 1,522 1,451
Senior notes EUR 1,000 million 6.00 % 2025 1,174 1,120
Senior notes EUR 900 million 4.50 % 2025 1,057 1,008
Senior notes EUR 750 million 1.63 % 2028 874 833
Senior notes EUR 700 million 3.25 % 2022 822 784
Senior notes EUR 700 million 1.88 % 2027 821 782
Senior notes USD 3,500 million 3.15 % 2026 3,495 3,494
Senior notes USD 1,475 million 2.20 % 2021 1,474 1,474
Senior notes USD 3,000 million 2.80 % 2023 2,996 2,995
Senior notes USD 2,000 million 4.10 % 2046 1,986 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 1,000 million 7.13 % 2025 1,000 1,000
Senior notes USD 844 million 2.95 % 2022 855 856
Senior notes USD 789 million 6.15 % 2036 783 782
Senior notes USD 700 million (2) 2.25 % 2020 — 700
Senior notes USD 613 million 3.65 % 2021 616 618
Senior notes USD 588 million 3.65 % 2021 587 587
Senior notes CHF 350 million 0.50 % 2022 381 361
Senior notes CHF 350 million 1.00 % 2025 381 362
Total senior notes 25,078 26,496
Other long-term debt 1.13 % 2026 1 1
Less current maturities (1,474 ) (1,831 )
Less debt issuance costs (89 ) (103 )
Total senior notes and loans $ 23,515 $ 24,562
(1) In July 2020, Teva repaid at maturity €
(2) In March 2020, Teva repaid at maturity $700 million of its 2.25% 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 September 30, 2020 is effectively denominated in the following currencies: 63% in U.S. dollar, 34% in euro and 3% in Swiss franc. 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 unsecured syndicated revolving credit facility entered into in April 2019 (“RCF”). The RCF agreement provides for two separate tranches, a $1.15 billion tranche A and a $1.15 billion tranche B. Loans and letters of credit will be available from time to time under each tranche for Teva’s general corporate purposes. Tranche A has a maturity date of April 8, 2022, with two one-year The RCF contains certain covenants, including certain limitations on incurring liens and indebtedness and maintenance of certain financial ratios, including the requirement to maintain compliance with a net debt to EBITDA ratio, which becomes more restrictive over time. The net debt to EBITDA ratio limit is 5.75x in the third and fourth quarters of 2020 and declines to 5.50x in the first and second quarters of 2021, and continues to gradually decline over the remaining term of the RCF. The RCF can be used for general corporate purposes, including repaying existing debt. As of September 30, 2020 , € Quarterly Report on Form 10-Q the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date these financial statements are issued. Under specified circumstances, including non-compliance 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.

Derivative instruments and hedg

Derivative instruments and hedging activities9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging ActivitiesNOTE 8 – Derivative instruments and hedging activities: a. Foreign exchange risk management: In the first nine months of 2020, approximately 48% 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, revenues and expenses. 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 within Teva. The currency hedged items are usually denominated in the following main currencies: the Russian ruble, the euro, the Swiss franc, the Japanese yen, the British pound, the Canadian dollar, the Polish zloty, the Indian rupee and other European and Latin American currencies. Depending on market conditions, foreign currency risk is also managed through the use of foreign currency debt. In the past, the Company hedged against possible fluctuations in foreign subsidiaries’ net assets (“net investment hedge”) and from time to time enters 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 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:
September 30, December 31,
2020 2019
(U.S. $ in millions)
Cross-currency swap — $ — $ 1,000
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
September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019
Reported under (U.S. $ in millions)
Asset derivatives:
Other current assets:
Option and forward contracts $ — $ — $ 36 $ 32
Liability derivatives:
Other current liabilities:
Cross-currency swaps—net investment hedge — (22 ) — —
Option and forward contracts — — (67 ) (41 ) The table below provides information regarding the location and amount of pre-tax
Financial expenses, net Other comprehensive income
Three months ended, Three months ended,
September 30, 2020 September 30, September 30, 2020 September 30,
Reported under (U.S. $ in millions)
Line items in which effects of hedges are recorded $ 117 $ 211 $ 79 $ (53 )
Cross-currency swaps—cash flow hedge (1) — (1 ) — (33 )
Cross-currency swaps—net investment hedge (2) — (7 ) — (39 )
Interest rate swaps—fair value hedge (3) — * — —
* Represents an amount less than $0.5 million.
Financial expenses, net Other comprehensive income (loss)
Nine months ended, Nine months ended,
September 30, 2020 September 30, September 30, 2020 September 30,
Reported under (U.S. $ in millions)
Line items in which effects of hedges are recorded $ 565 $ 635 $ (302 ) $ 117
Cross-currency swaps — — (2 ) — (49 )
Cross-currency swaps — (2 ) (22 ) (21 ) (46 )
Interest rate swaps—fair value hedge (3) — 2 — — The table below provides information regarding the location and amount of pre-tax
Financial expenses, net Net revenues
Three months ended, Three months ended,
September 30, 2020 September 30, September 30, 2020 September 30,
Reported under (U.S. $ in millions)
Line items in which effects of hedges are recorded $ 117 $ 211 $ (3,978 ) $ (4,093 )
Option and forward contracts (4) 40 (35 ) — —
Option and forward contracts economic hedge (5) — — 3 (4 )
Financial expenses, net Net revenues
Nine months ended, Nine months ended,
September 30, 2020 September 30, September 30, 2020 September 30,
Reported under (U.S. $ in millions)
Line items in which effects of hedges are recorded $ 565 $ 635 $ (12,206 ) $ (12,420 )
Option and forward contracts (4) 78 (42 ) — —
Option and forward contracts Economic hedge (5) — — (37 ) —
(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. In the fourth quarter of 2019, Teva terminated $588 million in cross-currency swap agreements against its outstanding 3.65% senior notes maturing in November 2021. The settlement of these transactions resulted in cash proceeds of $95 million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense.
(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. In the third quarter of 2019, Teva terminated this interest rate swap agreement. The settlement of these transactions resulted in a gain position of $10 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense.
(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.
(5) Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the British pound, the Russian ruble and some other currencies during the period for which such instruments are transacted. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. In the first nine months of 2020, the positive impact from these derivatives recognized under revenues was $37 million, partially offset by a $3 million negative impact recognized under cost of sales. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. e. Amortizations due to terminated derivative instruments: Forward starting interest rate swaps and treasury lock agreements In 2015, Teva entered into forward starting interest rate swaps and treasury lock agreements to protect the Company from interest rate fluctuations in connection with a future debt issuance the Company was planning. These forward starting interest rate swaps and treasury lock agreements were terminated in July 2016 upon the debt issuance. The termination of these transactions resulted in a loss position of $493 million, which was recorded in other comprehensive income (loss) and is amortized under financial expenses, net over the life of the debt. With respect to these forward starting interest rate swaps and treasury lock agreements, losses of $8 million and $7 million were recognized under financial expenses, net for the three months ended September 30, 2020 and 2019, respectively, and losses of $23 million and $22 million were recognized under financial expenses, net for the nine months ended September 30, 2020 and 2019, respectively. Fair value hedge In the third quarter of 2016, Teva terminated interest rate swap agreements designated as a 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 over the life of the debt as additional interest expense. In the third quarter of 2019, Teva terminated $500 million interest rate swap agreements designated as a fair value hedge relating to its 2.8% senior notes due 2023 with respect to $3,000 million notional amount. Settlement of these transactions resulted in cash proceeds of $10 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt. Cash flow hedge In the fourth quarter of 2019, Teva terminated $588 million cross-currency swap agreements against its outstanding 3.65% senior notes maturing in November 2021. Settlement of these transactions resulted in cash proceeds of $95 million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt. With respect to the interest rate swap and cross-currency swap agreements, gains of $1 million and $3 million were recognized under financial expenses, net for the three months ended September 30, 2020 and 2019, respectively, and gains of $3 million and $6 million were recognized under financial expenses, net for the nine months ended September 30, 2020 and 2019, respectively.

Legal Settlements and Loss Cont

Legal Settlements and Loss Contingencies9 Months Ended
Sep. 30, 2020
Legal Settlements and Loss ContingenciesNOTE 9 – Legal settlements and loss contingencies: In the third quarter of 2020, Teva recorded expenses expenses of settling in part antitrust claims challenging a patent settlement agreement In the first nine months of 2020, Teva recorded expenses expenses of As of September 30, 2020 and December 31, 2019, Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses and other taxes and long-term liabilities

Commitments and contingencies

Commitments and contingencies9 Months Ended
Sep. 30, 2020
Commitments and contingenciesNOTE 10 – 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. 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. 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. Teva could also be sued for patent infringement outside of the context of the Hatch-Waxman Act. For example, Teva could be sued for patent infringement after commencing sales of a product. In addition, for biosimilar products, Teva could be sued according to the “patent dance” procedures of the Biologics Price Competition and Innovation Act (BPCIA). 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 ® pre- 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. The provision that was originally included in the financial statements following the damages verdict in this matter in 2017 was reversed in 2018, following the opinion overturning the verdict as the exposure was no longer considered probable. On October 2, 2020, the Court of Appeals for the Federal Circuit overturned the lower court’s ruling and reinstated the jury verdict in a two-to-one In 2014, Teva Canada succeeded in its challenge of the bortezomib (the generic equivalent of Velcade ® 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. Teva and its subsidiaries are parties to litigation relating to previously unknown nitrosamine impurities discovered in certain products. The discovery led to a global recall of single and combination valsartan medicines around the world starting in July 2018. The nitrosamine impurities in valsartan are allegedly found in the active pharmaceutical ingredient (API) supplied by multiple API manufacturers. Teva’s products allegedly at issue in the various nitrosamine-related litigations manufacturers Similar are 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 (“FTC”) 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. Beginning 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 with allegations 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 ® 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 non-financial ten-year Additionally, following an investigation initiated by the European Commission in April 2011 regarding a modafinil patent settlement in Europe, the European Commission issued a Statement of Objections and a Supplementary Statement of Objection in July 2017 and June 2020, respectively, 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 liability 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 breach amounted to €46.5 million. Teva and its affiliates have been named in California federal court, and later transferred to Georgia federal court, with , and later private plaintiffs, challenging litigation . The second lawsuit (the “Philadelphia Litigation”) was the FTC September 2014 in Philadelphia, challenging Teva’s December 2011 patent litigation settlement with AbbVie. The FTC dismiss Teva from both litigations, Teva most of the retailer plaintiffs in the Georgia AndroGel Litigation as well as in the Georgia AndroGel Litigation the (where the Philadelphia AndroGel Litigation has been pending), , and the between Teva and Those claims remain pending. ® earlier Watson/Solvay ® these matters 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 ® 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. In March 2020, the district court temporarily stayed discovery and referred the case to mediation. Annual sales of Effexor XR ® ® 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 ® ® ® In April 2013, purported classes of direct purchasers of, and end payers for, Niaspan ® opt-out ® ® Beginning in 2013, several putative class actions were filed against Actavis, Inc. and certain of its affiliates, alleging that Watson’s 2012 patent lawsuit settlement with Endo Pharmaceuticals Inc. relating to Lidoderm ® ® end-payers 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 ® end-payers’ ® ® ® In May 2015, a purported class of end payers for Namenda IR ® ® is awaiting final court approval. ® ® In January 2019, generic manufacturer Cipla Limited filed a lawsuit against Amgen , which was later amended to include Teva as a defendant, ® On August 14, 2020, agreed to dismiss claims against , with prejudice those claims have since been dismissed. Putative end-payer On July 22, 2020, a magistrate judge recommended that plaintiffs’ claims be dismissed. Plaintiffs have objected to the magistrate judge’s recommendation of dismissal, and those objections remain pending before the district court. ® ® On December 16, 2016, the U.K. Competition and Markets Authority (“CMA”) issued a statement of objections (a provisional finding of breach 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 March 3, 2017 and February 28, 2019, the CMA issued second and third statements of objections in respect of certain additional allegations relating to the same products and covering part of the same time periods as in the first statement of objections. On February 12, 2020, the CMA issued a Supplementary Statement of Objections effectively combining the three previously issued statements referenced above and a Statement of Draft Penalty Calculation 28 In October 2019, the European Commission commenced an inspection of Teva and subsequently requested information for purposes of investigating whether Teva may have abused a dominant position in the Multiple Sclerosis field, dating back to at least 2014. No formal proceedings have been initiated. Annual sales of COPAXONE ® in the European Economic Area for the past year were approximately $431 million. On September 1, 2020 and October 20, 2020, two separate plaintiffs purporting to represent a putative class of direct purchasers of Bystolic ® ® ® Government Investigations and Litigation Relating to Pricing and Marketing Teva is involved in government investigations and litigation arising from the marketing and promotion of its pharmaceutical products in the United States. In 2015 and 2016, Actavis and Teva USA each respectively received subpoenas from the U.S. Department of Justice (“DOJ”) Antitrust Division seeking documents and other information relating to the marketing and pricing of certain Teva USA generic products and communications with competitors about such products. On August 25, 2020, a federal grand jury in the Eastern District of Pennsylvania returned a three count indictment charging Teva USA with criminal felony Sherman Act violations. See No. 20-cr-200 (E.D. Pa.). The indictment alleges Teva USA participated in a conspiracy with certain other generic drug manufacturers to maintain and fix prices, allocate customers, and other alleged antitrust offenses concerning the sale of generic drugs, including Pravastatin, Carbamazepine, Clotrimazole, Etodolac (IR and ER), Fluocinonide (Cream E-Cream, Gel, and Ointment), Warfarin, Etodolac (IR), Nadolol, Temozolomide, and Tobramycin. On September 8, 2020, Teva USA pled not guilty to all counts. A tentative trial date is yet to be scheduled. While the Company is unable to estimate a range of loss at this time, a conviction on these criminal charges could have a material adverse impact on the Company’s business, including monetary penalties and debarment from federally funded health care programs. In May 2018, Teva received a civil investigative demand from the DOJ Civil Division, pursuant to the federal False Claims Act, seeking documents and information produced since January 1, 2009 relevant to the Civil Division’s investigation concerning allegations that generic pharmaceutical manufacturers, including Teva, engaged in market allocation and price-fixing agreements, paid illegal remuneration, and caused false claims to be submitted in violation of the False Claims Act. An adverse resolution of this matter may include fines, penalties, financial forfeiture and compliance conditions. In 2015 and 2016, Actavis and Teva USA each respectively received a subpoena from the Connecticut Attorney General seeking documents and other information relating to potential state antitrust law violations. Subsequently, on December 15, 2016, a civil action was brought by the attorneys general of twenty states against Teva USA and several other companies asserting claims under federal antitrust law alleging price fixing of generic products in the United States. That complaint was later amended to add new states as named plaintiffs, as well as new allegations and new state law claims, and on June 18, 2018, the attorneys general of 49 states plus Puerto Rico and the District of Columbia filed a consolidated amended complaint against Actavis and Teva, as well as other companies and individuals. On May 10, 2019, most (though not all) of these attorneys general filed yet another antitrust complaint against Actavis, Teva and other companies and individuals, alleging price-fixing and market allocation with respect to additional generic products. On November 1, 2019, the state attorneys general filed an amended complaint, bringing the total number of plaintiff states and territories to 54. The amended complaint alleges that Teva was at the center of a conspiracy in the generic pharmaceutical industry, and asserts that Teva and others fixed prices, rigged bids, and allocated customers and market share with respect to certain additional products. On June 10, 2020, most, but not all, of the same states, with the addition of the U.S. Virgin Islands, filed a third complaint in the District of Connecticut naming, among other defendants, Actavis, but not Teva USA in a similar complaint relating to dermatological generics products. In the various complaints described above, the states seek a finding that the defendants’ actions violated federal antitrust law and state antitrust and consumer protection laws, as well as injunctive relief, disgorgement, damages on behalf of various state and governmental entities and consumers, civil penalties and costs. All such complaints have been transferred to the generic drug multidistrict litigation in the Eastern District of Pennsylvania (“Pennsylvania MDL”). On July 13, 2020, the court overseeing the Pennsylvania MDL chose the attorneys’ general May 10, 2019 complaint, referenced above, along with three complaints filed by private plaintiffs, to proceed first in the litigation as bellwether complaints. Beginning on March 2, 2016, numerous complaints have been filed in the United States on behalf of putative classes of direct and indirect purchasers of several generic drug products, as well as several individual direct and indirect purchaser opt-out and again on August 24, 2020, certain commenced civil actions complaints have In Subsequently, in August 2020, the U.S. Attorney’s office in Boston, Massachusetts brought a civil action in the U.S. District Court for the District of Massachusetts alleging violations of the federal Anti-Kickback Statute, and asserting causes of action under the federal False Claims Act and state law. It is alleged that Teva caused the submission of false claims to Medicare through Teva’s donations to bona fide independent charities that provide financial assistance to patients. An adverse judgment may involve damages, civil penalties and injunctive remedies. On October 19, 2020, Teva filed a motion to dismiss the complaint which is pending. In December 2016, Teva resolved certain claims under the U.S. Foreign Corrupt Practices Act (“FCPA”) with the SEC and the DOJ. The settlement included a fine, disgorgement and prejudgment interest, a three-year deferred prosecution agreement (“DPA”) for Teva and the retention of an independent compliance monitor for a period of three years. In February 2020 the term of the monitorship provided for by the DPA and Teva’s consent judgement with the SEC expired and on March 4, 2020, following Teva’s certification to the SEC and the DOJ confirming that Teva had complied with its disclosure obligations under the DPA, the DOJ filed a motion to dismiss the information filed against Teva at the time the DPA was entered into. On July 21, 2020, the information was dismissed. Opioids Litigation Since May 2014, more than 3,000 complaints have been filed with respect to opioid sales and distribution against various Teva affiliates, along with several other pharmaceutical companies, by a number of cities, counties, states, other governmental agencies, tribes and private plaintiffs (including various putative class actions of individuals) in both state and federal courts. Most of the federal cases have been consolidated into a multidistrict litigation in the Northern District of Ohio (“MDL Opioid Proceeding”) and many of the cases filed in state court have been removed to federal court and consolidated into the MDL Opioid Proceeding. Two cases that were in the MDL Opioid Proceeding were recently transferred back to federal district court for additional discovery, pre-trial 14-cv-04361 18-cv-07591-CRB ® ® 950 , nearly all of which are consolidated in the MDL Opioid Proceeding The individual personal injury plaintiffs further seek non-economic damages. Absent resolutions, trials are expected to proceed in several states in 2021. A court in New York had set a date, for a liability trial only, to start in March 2020. However, that trial has been postponed due to the impact of the COVID-19 pandemic and rescheduled to begin in the first quarter of 2021 the COVID-19 pandemic In May 2019, Teva settled the Oklahoma litigation brought by the Oklahoma Attorney General (State of Oklahoma, ex. rel. Mike Hunter, Attorney General of Oklahoma vs. Purdue Pharma L.P., et. al.) for $85 million. The settlement did not include any admission of violation of law for any of the claims or allegations made. As the Company demonstrated a willingness to settle part of the litigation, for accounting purposes, management considered a portion of opioid-related cases as probable and, as such, recorded an estimated provision in the second quarter of 2019. Given the relatively early stage of the cases, management viewed no amount within the range to be the most likely outcome. Therefore, management recorded a provision for the reasonably estimable minimum amount in the assessed range for such opioid-related cases in accordance with Accounting Standards Codification 450 “Accounting for Contingencies.” On October 21, 2019, Teva reached a settlement with the two plaintiffs in the MDL Opioid Proceeding that was scheduled for trial for the Track One case, Cuyahoga and Summit Counties of Ohio. Under the terms of the settlement, Teva will provide the two counties with opioid treatment medication, buprenorphine naloxone (sublingual tablets), known by the brand name Suboxone ® payments over three years. Also on October 21, 2019, Teva and certain other defendants reached an agreement in principle with a group of Attorneys General from North Carolina, Pennsylvania, Tennessee and Texas for a nationwide settlement framework (the “framework”). The framework is designed to provide a mechanism by which the Company attempts to seek resolution of remaining potential and pending opioid claims by both the U.S. states and political subdivisions (i.e., counties, tribes and other plaintiffs) thereof. Under this framework, Teva would provide buprenorphine naloxone (sublingual tablets) with an estimated value of up to approximately $23 billion at wholesale acquisition cost over a ten year period. In addition, Teva would also As of October 2020, the Company continues to negotiate the terms and conditions of the framework. with its current terms and obligations. The non-monetary Separately, on April 27, 2018, Teva received subpoena requests from the United States Attorney’s office in the Western District of Virginia and the Civil Division seeking documents relating to the manufacture, marketing and sale of branded opioids. In August 2019, Teva received a grand jury subpoena from the United States Attorney’s Office for the Eastern District of New York for documents related to the Company’s anti-diversion policies and procedures and distribution of its opioid medications, in what the Company understands to be part of a broader investigation into manufacturers’ and distributors’ monitoring programs and reporting under the Controlled Substances Act. In September 2019, Teva received subpoenas from the New York State Department of Financial Services (NYDFS) as part of an industry-wide inquiry into the effect of opioid prescriptions on New York health insurance premiums. The Company is cooperating with NYDFS’s inquiry and producing documents in response to the various subpoenas and requests for information. Currently, Teva cannot predict how the nationwide settlement framework agreement (if finalized) will affect these investigations and administrative actions In addition, several jurisdictions in Canada have initiated litigation regarding opioids alleging similar claims as those in the United States. The cases in Canada may Shareholder Litigation On November 6, 2016 and December 27, 2016, two putative securities class actions were filed in the U.S. District Court for the Central District of California against Teva and certain of its current and former officers and directors. Those lawsuits were consolidated and transferred to the U.S. District Court for the District of Connecticut (the “Ontario Teachers Securities Litigation”). On December 13, 2019, the lead plaintiff in that action filed an amended complaint, purportedly on behalf of purchasers of Teva’s securities between February 6, 2014 and May 10, 2019. The amended complaint asserts that Teva and certain of its current and former officers and directors violated federal securities and common laws in connection with Teva’s alleged failure to disclose pricing strategies for various drugs in its generic drug portfolio and by making allegedly false or misleading statements in certain offering materials. The amended complaint seeks unspecified damages, legal fees, interest, and costs. In July 2017, August 2017, and June 2019, other putative securities class actions were filed in other federal courts based on similar allegations, and those cases have been transferred to the U.S. District Court for the District of Connecticut. Between August 2017 and June 2020, nineteen complaints were filed against Teva and certain of its current and former officers and directors seeking unspecified compensatory damages, legal fees, costs and expenses. The similar claims in these complaints have been brought on behalf of plaintiffs, in various forums across the country, who have indicated that they intend to “opt-out” “opt-out” Pursuant to that consolidation order, plaintiffs in several of the “opt-out” “opt-out” On September 23, 2020, a putative securities class action was filed in the U.S. District Court for the Eastern District of Pennsylvania against Teva and certain of its former officers alleging, among other things, violations of Section 10(b) of the Securities and Exchange Act of 1934 and SEC Rule 10b-5. Motions to approve derivative actions against certain past and present directors and officers have been filed in Israeli Courts alleging negligence and recklessness with respect to the acquisition of the Rimsa business, the acquisition of Actavis Generics and the patent settlement relating to Lidoderm ® opioids, and allegations related to DOJ’s complaint regarding Copaxone patient assistance program U.S. In October 2020, Teva filed a notice with the Tel Aviv District Court to settle the derivative proceeding with regard to the acquisition of Actavis Generics and two related actions, the derivative proceedings related to allegations in connection with the Lidoderm® patent settlement agreement. approved Environmental Matters Teva or its subsidiaries are party to a number of environmental proceedings, or have received claims, including under the federal Superfund law or other federal, provincial or state and local laws, imposing liability for alleged noncompliance, or for the investigation and remediation of releases of hazardous substances and for natural resource damages. Many of these proceedings and claims seek to require the generators of hazardous wastes disposed of at a third party-owned site, or the party responsible for a release of hazardous substances that impacted a site, to investigate and clean the site or to pay or reimburse others for such activities, including for oversight by governmental authorities and any related damages to natural resources. Teva or its subsidiaries have received claims, or been made a party to these proceedings, along with others, as an alleged generator of wastes that were disposed of or treated at third-party waste disposal sites, or as a result of an alleged release from one of Teva’s facilities or former facilities. Although liability among the responsible parties, under certain circumstances, may be joint and several, these proceedings are frequently resolved so that the allocation of clean-up clean-up clean-up Other Matters On February 1, 2018, former shareholders of Ception Therapeutics, Inc., a company that was acquired by and merged into Cephalon in 2010, prior to Cephalon’s acquisition by Teva, filed breach of contract and other related claims against the Company, Teva USA and Cephalon in the Delaware Court of Chancery. Among other things, the plaintiffs allege that Cephalon breached the terms of the 2010 Ception-Cephalon merger agreement by failing to exercise commercially reasonable efforts to develop and commercialize CINQAIR ®

Income taxes

Income taxes9 Months Ended
Sep. 30, 2020
Income taxesNOTE 11 – Income taxes: In the third quarter of 2020, Teva recognized a tax expense pre-tax expense pre-tax the goodwill impairment charge that does not have a corresponding tax effect and In the first nine pre-tax nine pre-tax nine the goodwill impairment charge that does not have a corresponding effect The statutory Israeli corporate tax rate is 23% in 2020. 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, as well as infrequent or discrete items. Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. Trial in this case is scheduled to begin in November asset write off o The Israeli tax authorities issued tax assessment decrees for 2013-2016, challenging the Company’s positions on several issues. In September 2020, Teva commenced proceedings protesting the at

Other assets impairments, restr

Other assets impairments, restructuring and other items9 Months Ended
Sep. 30, 2020
Other assets impairments, restructuring and other itemsNOTE 12 – Other assets impairments, restructuring and other items:
Three months ended Nine months ended
September 30, September 30,
2020 2019 2020 2019
(U.S. $ in millions) (U.S. $ in millions)
Impairments of long-lived tangible assets (1) $ 56 $ 28 $ 408 $ 96
Contingent consideration (179 ) 51 (96 ) 4
Restructuring 9 61 82 140
Other 15 21 10 24
Total $ (98 ) $ 160 $ 404 $ 263
(1) Including impairments related to exit and disposal activities Impairments Impairments of tangible assets for the three months ended September 2019 were $56 million and $28 million, respectively. The impairment for the three months ended September 30, 2020 was mainly related to the intention to sell certain assets in Teva’s International Markets and Europe segments Impairments of tangible assets for the nine months ended September 30, 2020 and 2019 were $408 million and $96 million, respectively. The impairment for the nine months ended September 30, 2020 was mainly related to the intention to sell certain assets from Teva’s business venture in Japan and plant rationalization. See note 2. Teva may record additional impairments in the future, to the extent it changes its plans on any given asset and/or the assumptions underlying such plans, as a result of its plant rationalization plan. Contingent consideration In the three months ended September 30, 2020, Teva recorded an income The income in the third quarter of 2020 was mainly related to a change in the future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid ® In the nine months ended September 30, 2020, Teva recorded an income of $96 million for contingent consideration, compared to an expense of $4 royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid ® Restructuring In the three months ended September 30, 2020, Teva recorded $9 million of restructuring expenses, compared to $61 million in the three months ended September 30, 2019. In the nine months ended September 30, 2020, Teva recorded $82 million of restructuring expenses, compared to $140 million in the nine The expenses for the three and nine months ended September 30, 2020 were primarily related to residual expenses of the restructuring plan announced in 2017 and other network consolidation activities . 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 September 30,
2020 2019
(U.S. $ in millions)
Restructuring
Employee termination $ 3 $ 49
Other 7 11
Total $ 9 $ 61
Nine months ended September 30,
2020 2019
(U.S. $ in millions)
Restructuring
Employee termination $ 39 $ 105
Other 43 34
Total $ 82 $ 140
The following table provides the components of and changes in the Company’s restructuring accruals:
Employee termination Other Total
(U.S. $ in millions )
Balance as of January 1, 2020 $ (208 ) $ (7 ) $ (215 )
Provision (39 ) (43 ) (82 )
Utilization and other* 145 43 188
Balance as of September 30, 2020 $ (102 ) $ (7 ) $ (109 )
* Includes adjustments for foreign currency translation. Significant regulatory and other 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 inventory write-offs, 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 nitrosamine impurity called NDMA found in valsartan API supplied by Zhejiang Huahai Pharmaceuticals Co. Ltd. (“Huahai”). Since July 2018, Teva has been actively engaged with global regulatory authorities in reviewing its sartan and other products to determine whether NDMA and/or other related nitrosamine impurities are present in specific products. Where necessary, Teva has initiated additional voluntary recalls. In December 2019, Teva reached a settlement with Huahai resolving its claims related to certain sartan API supplied by Huahai. Under the settlement agreement, Huahai agreed to compensate Teva for some of its direct losses and provide it with prospective cost reductions for API. The settlement does not release Huahai from liability for any losses Teva may incur as a result of third party personal injury or product liability claims relating to the sartan API at issue. In addition, multiple lawsuits have been filed in connection with this matter, which may lead to additional customer penalties, impairments and litigation costs. In the second quarter of 2020, Teva’s operations in its manufacturing facilities in Goa, India were temporarily suspended due to a water supply issue. During the third quarter of 2020, Teva completed the first step of remediation of this issue and restarted supply from its Goa facilities. The impact to Teva’s financial results for the nine months ended September 30, 2020 was immaterial, however, if the full remediation takes longer than expected there may be further loss of sales, customer penalties or impairments to related assets.

Earnings (Loss) per Share

Earnings (Loss) per Share9 Months Ended
Sep. 30, 2020
Earnings (Loss) per Share NOTE 13 – 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 diluted loss per share for the three months ended September 30, 2020 and September 30, 2019, no account was taken of the potential dilution that could occur upon the exercise of options and non-vested In computing diluted loss per share for the nine months ended September 30, 2020 and September 30, 2019, no account was taken of the potential dilution that could occur upon the exercise of options and non-vested Basic and diluted loss per share was $3.97 for the three months ended September 30, 2020, compared to basic and diluted loss per share of $0.29 for the three months ended September 30, 2019. Basic and diluted loss per share was $3.78 for the nine months ended September 30, 2020, compared to basic and diluted loss per share of $1.02 for the nine months ended September 30, 2019.

Accumulated other comprehensive

Accumulated other comprehensive income (loss)9 Months Ended
Sep. 30, 2020
Accumulated other comprehensive income (loss)NOTE 14 – Accumulated other comprehensive income (loss): The components of, and changes within, accumulated other comprehensive income (loss) attributable to Teva are presented in the table below:
Net Unrealized Gains (Losses) Benefit Plans
Foreign Available-for- sale Derivative Actuarial gains Total
(U.S. $ in millions)
Balance as of December 31, 2019 $ (1,794 ) $ — $ (420 ) $ (98 ) $ (2,312 )
Other comprehensive income (loss) before reclassifications (377 ) — 20 — (357 )
Amounts reclassified to the statements of income — — 26 — 26
Net other comprehensive income (loss) before tax (377 ) — 46 — (331 )
Net other comprehensive income (loss) after tax* (377 ) — 46 — (331 )
Balance as of September 30, 2020 $ (2,171 ) $ — $ (374 ) $ (98 ) $ (2,643 )
* Amounts do not include a $29 million gain from foreign currency translation adjustments attributable to non-controlling
Net Unrealized Gains (Losses) Benefit Plans
Foreign Available-for- sale Derivative Actuarial gains Total
(U.S. $ in millions)
Balance as of December 31, 2018 $ (1,878 ) $ 1 $ (504 ) $ (78 ) $ (2,459 )
Other comprehensive income (loss) before reclassifications (28 ) (1 ) 103 * * 74
Amounts reclassified to the statements of income — — 21 — 21
Net other comprehensive income (loss) before tax (28 ) (1 ) 124 * * 95
Net other comprehensive income (loss) after tax* (28 ) (1 ) 124 (1 ) 94
Balance as of September 30, 2019 $ (1,906 ) $ — $ (380 ) $ (79 ) $ (2,365 )
* Amounts do not include a $23 million gain from foreign currency translation adjustments attributable to non-controlling
** Represents an amount less than $0.5 million.

Segments

Segments9 Months Ended
Sep. 30, 2020
SegmentsNOTE 15 – 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. 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 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 from time to time. 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 3 and note 6.
a. Segment information:
Three months ended September 30,
2020
North America Europe International Markets
(U.S. $ in millions)
Revenues $ 2,017 $ 1,116 $ 529
Gross profit 1,056 637 275
R&D expenses 155 60 17
S&M expenses 250 200 101
G&A expenses 97 66 33
Other income (5 ) (1 ) (1 )
Segment profit $ 560 $ 312 $ 125
Three months ended September 30,
2019
North America Europe International Markets*
(U.S. $ in millions)
Revenues $ 2,051 $ 1,163 $ 565
Gross profit 1,048 662 295
R&D expenses 156 63 21
S&M expenses 219 206 114
G&A expenses 112 56 32
Other (income) expense (5 ) (4 ) (1 )
Segment profit $ 565 $ 341 $ 130
Nine months ended September 30,
2020
North America Europe International Markets
(U.S. $ in millions)
Revenues $ 6,146 $ 3,520 $ 1,582
Gross profit 3,208 2,009 828
R&D expenses 455 180 51
S&M expenses 755 590 312
G&A expenses 325 184 96
Other income (9 ) (3 ) (10 )
Segment profit $ 1,682 $ 1,058 $ 378
Nine months ended September 30,
2019
North America Europe International Markets*
(U.S. $ in millions)
Revenues $ 6,169 $ 3,611 $ 1,668
Gross profit 3,155 2,066 877
R&D expenses 497 199 66
S&M expenses 756 637 348
G&A expenses 342 175 102
Other income (6 ) (5 ) (2 )
Segment profit $ 1,566 $ 1,060 $ 363
* The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c. The following table presents a reconciliation of Teva’s segment profits to its consolidated operating income (loss) and to consolidated income (loss) before income taxes for the three and nine months ended September 30, 2020 and 2019:
Three months ended Nine months ended
September 30, September 30,
2020 2019 2020 2019
(U.S. (U.S. $ in millions)
North America profit $ 560 $ 565 $ 1,682 $ 1,566
Europe profit 312 341 1,058 1,060
International Markets profit 125 130 378 363
Total reportable segments profit 997 1,036 3,118 2,989
Profit of other activities 28 16 130 92
Total segments profit 1,025 1,051 3,248 3,081
Amounts not allocated to segments:
Amortization 251 255 758 823
Other assets impairments, restructuring and other items (98 ) 160 404 263
Intangible asset impairments 509 177 1,278 1,206
Goodwill impairment 4,628 — 4,628 —
Legal settlements and loss contingencies 21 468 10 1,171
Other unallocated amounts 55 73 148 209
Consolidated operating income (loss) (4,342 ) (81 ) (3,978 ) (591 )
Financial expenses, net 117 211 565 635
Consolidated income (loss) before income taxe s $ (4,459 ) $ (292 ) $ (4,543 ) $ (1,226 )
b. Segment revenues by major products and activities: The following tables present revenues by major products and activities for the three and nine months ended September 30, 2020 and 2019:
North America Three months ended September 30,
2020 2019
(U.S. $ in millions)
Generic products $ 928 $ 914
AJOVY 35 25
AUSTEDO 168 105
BENDEKA ® ® 105 124
COPAXONE 236 271
ProAir ® 50 71
QVAR ® 42 60
Anda 341 351
Other 113 131
Total $ 2,017 $ 2,051
* Does not include revenues from the ProAir authorized generic, which are included under generic products.
North America Nine months ended
2020 2019
(U.S. $ in millions)
Generic products $ 2,804 $ 2,826
AJOVY 98 68
AUSTEDO 451 276
BENDEKA/TREANDA 313 371
COPAXONE 671 753
ProAir* 175 194
QVAR 139 183
Anda 1,141 1,080
Other 354 417
Total $ 6,146 $ 6,169
* Does not include revenues from the ProAir authorized generic, which are included under generic products.
Europe Three months ended September 30,
2020 2019
(U.S. $ in millions)
Generic products $ 824 $ 836
COPAXONE 101 106
Respiratory products 77 87
AJOVY 8 1
Other 106 134
Total $ 1,116 $ 1,163
Europe Nine September 30,
2020 2019
(U.S. $ in millions)
Generic products $ 2,593 $ 2,599
COPAXONE 294 327
Respiratory products 263 267
AJOVY 17 1
Other 352 416
Total $ 3,520 $ 3,611
International Markets Three months ended September 30,
2020 2019
(U.S. $ in millions)
Generic products $ 429 $ 474
COPAXONE 14 20
Other 86 71
Total $ 529 $ 565
* The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c.
International Markets Nine months ended
2020 2019
(U.S. $ in millions)
Generic products $ 1,304 $ 1,404
COPAXONE 38 46
Other 241 218
Total $ 1,582 $ 1,668
* The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c.

Fair Value Measurement

Fair Value Measurement9 Months Ended
Sep. 30, 2020
Fair Value MeasurementNOTE 16 – Fair value measurement: Financial items carried at fair value as of September 30, 2020 and December 31, 2019 are classified in the tables below in one of the three categories of fair value levels:
September 30, 2020
Level 1 Level 2 Level 3 Total
(U.S. $ in millions)
Cash and cash equivalents:
Money markets $ 191 $ — $ — $ 191
Cash, deposits and other 1,636 — — 1,636
Investment in securities:
Equity securities* 20 — 297 317
Other, mainly debt securities 1 — 9 10
Derivatives:
Asset derivatives—options and forward contracts — 36 — 36
Liability derivatives—options and forward contracts — (67 ) — (67 )
Contingent consideration** — — (279 ) (279 )
Total $ 1,848 $ (31 ) $ 27 $ 1,844
December 31, 2019
Level 1 Level 2 Level 3 Total
(U.S. $ in millions)
Cash and cash equivalents:
Money markets $ 577 $ — $ — $ 577
Cash, deposits and other 1,398 — — 1,398
Investment in securities:
Equity securities 42 — — 42
Other, mainly debt securities 2 — 12 14
Derivatives:
Asset derivatives—options and forward contracts — 32 — 32
Liability derivatives—options and forward contracts — (41 ) — (41 )
Liability derivatives—interest rate and cross-currency swaps — (22 ) — (22 )
Contingent consideration** — — (460 ) (460 )
Total $ 2,019 $ (31 ) $ (448 ) $ 1,540
* During the third quarter of 2020, Teva recorded a gain of $134 million under share in profits of associated companies, net, reflecting the difference between the book value of Teva’s investment in American Well Corporation (“American Well”) and its fair value as of the date it completed its initial public offering in September 2020. The investment was reclassified from “investment in associated companies” to “investment in marketable securities,” since Teva no longer has significant influence in American Well. On September
** Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. Teva determined the fair value of the liabilities 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 United States and Europe, and the risk adjusted discount rate for fair value measurement. A probability of success factor ranging from % to % was used in the fair value calculation to reflect inherent regulatory and commercial risk of the contingent payments and IPR&D. The discount rate applied ranged from % to %. The weighted average discount rate, calculated based on the relative fair value of Teva’s contingent consideration liabilities, was %. 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 liabilities. The fair value measurement of the investment in equity securities is based on a discount rate for fair value measurement, related to restriction of sale of shares, and thus represents a Level 3 measurement within the fair value hierarchy. The discount rate applied for the fair value measurement at September 30, 2020 was 6%. The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs:
Nine months ended
(U.S. $ in millions)
Fair value at the beginning of the period $ (448 )
Transfer into Level 3- equity securities 179
Revaluation of equity securities 118
Revaluation of debt securities (3 )
Adjustments to provisions for contingent consideration:
Actavis Generics transaction 161
Eagle transaction (65 )
Settlement of contingent consideration:
Eagle transaction 85
Fair value at the end of the period $ 27
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 (level 1 inputs):
Fair value*
September 30, December 31,
2020 2019
(U.S. $ in millions)
Senior notes included under senior notes and loans $ 22,194 $ 22,686
Senior notes and convertible senior debentures included under short-term debt 1,968 2,318
Total $ 24,162 $ 25,004
* Based on quoted market price. See note 7 for carrying value.

Basis of presentation (Policies

Basis of presentation (Policies)9 Months Ended
Sep. 30, 2020
Change in the annual goodwill assessment dateChange in the annual goodwill assessment date The Company has historically performed its annual goodwill assessment during the fourth quarter of each year. During the second quarter of 2020, the Company decided to change the date of its annual impairment assessment from October 1 to June 30. The change was made to more closely align the impairment assessment date with the Company’s long-term planning and forecasting process. See note 6.
Recently adopted and issued accounting pronouncementsRecently adopted accounting pronouncements In March 2020, the FASB issued ASU 2020-04 In April 2019, the FASB issued ASU 2019-04 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 adoption. Teva adopted the provisions of this update as of January 1, 2020 with no material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 In June 2016, the FASB issued ASU 2016-13 Recently issued accounting pronouncements, not yet adopted In August 2020, the FASB issued ASU 2020-06 470-20) In December 2019, the FASB issued ASU 2019-12 year-to-date In addition, the update also simplifies the accounting for income taxes in certain topics as follows: (1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based
Revision of Previously Reported Consolidated Financial Statementsc. Revision of Previously Reported Consolidated Financial Statements In connection with the preparation of Teva’s consolidated financial statements for the fiscal year ended December 31, 2019, Teva determined that in the full years and interim periods of fiscal years 2017 and 2018, and the first three quarters of fiscal year 2019, it had an immaterial error in the presentation of distribution revenues from its Israeli distribution business. This business is part of the International Markets reporting segment and facilitates distribution of Teva and third party products to pharmacies, hospitals and other organizations in Israel. Specifically, the Company concluded that it presented revenues from its Israeli distribution business on a gross basis, although it should have reported such revenues on a net basis. Because Teva has no discretion in establishing prices for any specified goods or services, limited inventory risk and is not primarily responsible for contract fulfillment, Teva does not meet the criteria for reporting revenues from such business as a principal (on a gross basis), as opposed to as an agent (on a net basis). The Company evaluated the cumulative impact of this item on its previously issued annual financial statements for 2017 and 2018, and the interim financial statements for 2017, 2018 and the first three quarters of 2019, and concluded that, for the reasons mentioned below, the revisions were not material, individually or in the aggregate, to any of its previously-issued interim or annual financial statements. Teva has revised its presentation of net revenue and cost of sales in the historical consolidated financial statements to reflect the change in this item, as described in more detail below. The impact of this revision is a decrease in net revenues with an offsetting decrease in cost of sales. There is no impact on gross profit, operating income or earnings per share. In addition, there is no impact on Teva’s balance sheet or statement of cash flows for the related periods. The following table summarizes the impact of the revision on net revenues and cost of sales in the consolidated statements of income for the relevant periods:
Net revenues Cost of sales
As reported Adjustment As revised As reported Adjustment As revised
(U.S. $ in millions)
2019 Q1 4,295 (146 ) 4,149 2,440 (146 ) 2,293
Q2 4,337 (159 ) 4,177 2,443 (159 ) 2,284
Q3 4,264 (171 ) 4,093 2,435 (171 ) 2,264
Total 12,896 (477 ) 12,420 7,318 (477 ) 6,841
Recently issued accounting pronouncements, not yet adoptedRecently issued accounting pronouncements, not yet adopted In August 2020, the FASB issued ASU 2020-06 470-20) In December 2019, the FASB issued ASU 2019-12 year-to-date In addition, the update also simplifies the accounting for income taxes in certain topics as follows: (1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based

Basis of presentation (Tables)

Basis of presentation (Tables)9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]
Summary of impact of the revision on net revenues and cost of sales in the consolidated statement of incomeThe following table summarizes the impact of the revision on net revenues and cost of sales in the consolidated statements of income for the relevant periods:
Net revenues Cost of sales
As reported Adjustment As revised As reported Adjustment As revised
(U.S. $ in millions)
2019 Q1 4,295 (146 ) 4,149 2,440 (146 ) 2,293
Q2 4,337 (159 ) 4,177 2,443 (159 ) 2,284
Q3 4,264 (171 ) 4,093 2,435 (171 ) 2,264
Total 12,896 (477 ) 12,420 7,318 (477 ) 6,841

Certain transactions (Tables)

Certain transactions (Tables)9 Months Ended
Sep. 30, 2020
Summary of Major Classes of Assets and Liabilities Included as Held for SaleThe table below summarizes all Teva assets included as held for sale as of September 30, 2020 and December 31, 2019:
September 30, December 31,
2020 2019
(U.S. $ in millions)
Inventories 160 —
Property, plant and equipment, net and others 239 98
Goodwill 27 —
Adjustments of assets held for sale to fair value (313 ) (11 )
Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 113 $ 87

Revenue from contracts with c_2

Revenue from contracts with customers (Tables)9 Months Ended
Sep. 30, 2020
Summary of disaggregates revenues by major revenue streamsThe following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 15.
Three months ended September 30, 2020
North Europe International Other Total
(U.S. $ in millions)
Sale of goods 1,660 1,116 478 173 3,427
Licensing arrangements 17 7 2 1 27
Distribution 341 § 9 — 350
Other (1 ) (8 ) 41 142 174
$ 2,017 $ 1,116 $ 529 $ 316 $ 3,978
§ Represents an amount less than $1 million.
Three months ended September 30, 2019
North Europe International Other Total
(U.S. $ in millions)
Sale of goods 1,674 1,153 511 176 3,514
Licensing arrangements 26 7 1 1 36
Distribution 351 1 5 — 357
Other § 2 48 136 186
$ 2,051 $ 1,163 $ 565 $ 314 $ 4,093
§ Represents an amount less than $1 million.
Nine months ended September 30, 2020
North Europe International Other Total
(U.S. $ in millions)
Sale of goods 4,943 3,487 1,417 561 10,408
Licensing arrangements 59 22 6 3 90
Distribution 1,141 3 21 — 1,165
Other 3 9 138 394 543
$ 6,146 $ 3,520 $ 1,582 $ 957 $ 12,206
Nine months ended September 30, 2019
North Europe International Other Total
(U.S. $ in millions)
Sale of goods 4,997 3,586 1,505 566 10,653
Licensing arrangements 92 22 3 4 121
Distribution 1,080 1 14 — 1,095
Other § 2 146 402 549
$ 6,169 $ 3,611 $ 1,668 $ 972 $ 12,420
§ Represents an amount less than $1 million.
Summary of Sales Reserves and AllowancesThe changes in SR&A for third-party sales for the nine months ended September 30, 2020 and 2019 were as follows:
Sales Reserves and Allowances
Reserves Rebates Medicaid Chargebacks Returns Other Total reserves Total
(U.S. $ in millions)
Balance at December 31, 2019 $ 87 $ 2,895 $ 1,109 $ 1,342 $ 637 $ 176 $ 6,159 $ 6,246
Provisions related to sales made in current year 285 3,649 566 6,268 299 55 10,837 11,122
Provisions related to sales made in prior period s — (192 ) (116 ) (33 ) (11 ) 2 (350 ) (350 )
Credits and payments (298 ) (4,224 ) (650 ) (6,418 ) (289 ) (79 ) (11,660 ) (11,958 )
Translation differences — 10 4 2 — (4 ) 12 12
Balance at September 30, 2020 $ 74 2,138 $ 913 $ 1,161 $ 636 $ 150 $ 4,998 $ 5,072
Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves 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 334 4,004 760 7,196 195 308 12,463 12,797
Provisions related to sales made in 3 (28 ) (2 ) (1 ) 23 (7 ) (15 ) (12 )
Credits and payments (356 ) (4,276 ) (882 ) (7,299 ) (251 ) (295 ) (13,003 ) (13,359 )
Translation differences — (14 ) (4 ) (1 ) (1 ) 1 (19 ) (19 )
Balance at September 30, 201 9 $ 156 2,692 $ 1,233 $ 1,425 $ 604 $ 183 $ 6,137 $ 6,293

Inventories (Tables)

Inventories (Tables)9 Months Ended
Sep. 30, 2020
Summary of InventoriesInventories, net of reserves, consisted of the following:
September 30, December 31,
(U.S. $ in millions)
Finished products $ 2,384 $ 2,504
Raw and packaging materials 1,334 1,183
Products in process 635 583
Materials in transit and payments on account 163 151
Total $ 4,516 $ 4,422

Identifiable Intangible Assets

Identifiable Intangible Assets (Tables)9 Months Ended
Sep. 30, 2020
Summary of Identifiable Intangible AssetsIdentifiable intangible assets consisted of the following:
Gross carrying amount net of Accumulated amortization Net carrying amount
September 30, December 31, September 30, December 31, September 30, December 31,
2020 2019 2020 2019 2020 2019
(U.S. $ in millions)
Product rights $ 19,520 $ 19,663 $ 11,665 $ 10,640 $ 7,856 $ 9,023
Trade names 609 600 154 126 455 474
In process research and development 998 1,735 — — 998 1,735
Total $ 21,128 $ 21,998 $ 11,819 $ 10,766 $ 9,308 $ 11,232

Goodwill (Tables)

Goodwill (Tables)9 Months Ended
Sep. 30, 2020
Summary of Changes in the Carrying Amount of Goodwill by SegmentThe changes in the carrying amount of goodwill for the period ended September 30, 2020 were as follows:
North America Europe International Other Total
(U.S. $ in millions)
Balance as of December 31, 2019 (1) $ 11,091 $ 8,536 $ 2,532 $ 2,687 $ 24,846
Changes during the period:
Goodwill reclassified as assets held for sale — (8 ) (19 ) — (27 )
Goodwill impairment (4,628 ) — — — (4,628 )
Translation differences (10 ) 253 (206 ) — 37
Balance as of S eptember $ 6,453 $ 8,781 $ 2,307 $ 2,687 $ 20,228
(1) Accumulated goodwill impairment as of September 30, 2020 and December 31, 2019 was approximately $25.6 billion and $21.0 billion

Debt obligations (Tables)

Debt obligations (Tables)9 Months Ended
Sep. 30, 2020
Schedule of Short-term DebtSeptember 30, 2020 December 31, 2019
Weighted average interest Maturity
(U.S. $ in millions)
Revolving Credit Facility LIBOR+1.75 % $ 117 $ —
Convertible senior 0.25 % 2026 514 514
Current maturities of long-term liabilities 1,474 1,831
Total short-term debt $ 2,106 $ 2,345
Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance CostLong-term debt:
Weighted average interest Maturity September 30, December 31,
(U.S. $ in millions)
Senior notes EUR 1,010 million (1) 0.38 % 2020 — 1,131
Senior notes EUR 1,500 million 1.13 % 2024 1,755 1,673
Senior notes EUR 1,300 million 1.25 % 2023 1,522 1,451
Senior notes EUR 1,000 million 6.00 % 2025 1,174 1,120
Senior notes EUR 900 million 4.50 % 2025 1,057 1,008
Senior notes EUR 750 million 1.63 % 2028 874 833
Senior notes EUR 700 million 3.25 % 2022 822 784
Senior notes EUR 700 million 1.88 % 2027 821 782
Senior notes USD 3,500 million 3.15 % 2026 3,495 3,494
Senior notes USD 1,475 million 2.20 % 2021 1,474 1,474
Senior notes USD 3,000 million 2.80 % 2023 2,996 2,995
Senior notes USD 2,000 million 4.10 % 2046 1,986 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 1,000 million 7.13 % 2025 1,000 1,000
Senior notes USD 844 million 2.95 % 2022 855 856
Senior notes USD 789 million 6.15 % 2036 783 782
Senior notes USD 700 million (2) 2.25 % 2020 — 700
Senior notes USD 613 million 3.65 % 2021 616 618
Senior notes USD 588 million 3.65 % 2021 587 587
Senior notes CHF 350 million 0.50 % 2022 381 361
Senior notes CHF 350 million 1.00 % 2025 381 362
Total senior notes 25,078 26,496
Other long-term debt 1.13 % 2026 1 1
Less current maturities (1,474 ) (1,831 )
Less debt issuance costs (89 ) (103 )
Total senior notes and loans $ 23,515 $ 24,562
(1) In July 2020, Teva repaid at maturity €
(2) In March 2020, Teva repaid at maturity $700 million of its 2.25% senior notes.

Derivative instruments and he_2

Derivative instruments and hedging activities (Tables)9 Months Ended
Sep. 30, 2020
Summary of Notional Amounts for Hedged Items, Designated as Hedge AccountingThe following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting:
September 30, December 31,
2020 2019
(U.S. $ in millions)
Cross-currency swap — $ — $ 1,000
Summary of Classification and Fair Values of Derivative InstrumentsThe following table summarizes the classification and fair values of derivative instruments:
Fair value
Designated as hedging instruments Not designated as hedging instruments
September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019
Reported under (U.S. $ in millions)
Asset derivatives:
Other current assets:
Option and forward contracts $ — $ — $ 36 $ 32
Liability derivatives:
Other current liabilities:
Cross-currency swaps—net investment hedge — (22 ) — —
Option and forward contracts — — (67 ) (41 )
Derivatives Not Designated as Hedging InstrumentsThe table below provides information regarding the location and amount of pre-tax
Financial expenses, net Other comprehensive income
Three months ended, Three months ended,
September 30, 2020 September 30, September 30, 2020 September 30,
Reported under (U.S. $ in millions)
Line items in which effects of hedges are recorded $ 117 $ 211 $ 79 $ (53 )
Cross-currency swaps—cash flow hedge (1) — (1 ) — (33 )
Cross-currency swaps—net investment hedge (2) — (7 ) — (39 )
Interest rate swaps—fair value hedge (3) — * — —
* Represents an amount less than $0.5 million.
Financial expenses, net Other comprehensive income (loss)
Nine months ended, Nine months ended,
September 30, 2020 September 30, September 30, 2020 September 30,
Reported under (U.S. $ in millions)
Line items in which effects of hedges are recorded $ 565 $ 635 $ (302 ) $ 117
Cross-currency swaps — — (2 ) — (49 )
Cross-currency swaps — (2 ) (22 ) (21 ) (46 )
Interest rate swaps—fair value hedge (3) — 2 — —
Information Regarding The Location And Amount Of Pretax (Gains) Losses Of Derivatives Designated In Fair Value Or Cash Flow Hedging RelationshipsThe table below provides information regarding the location and amount of pre-tax
Financial expenses, net Net revenues
Three months ended, Three months ended,
September 30, 2020 September 30, September 30, 2020 September 30,
Reported under (U.S. $ in millions)
Line items in which effects of hedges are recorded $ 117 $ 211 $ (3,978 ) $ (4,093 )
Option and forward contracts (4) 40 (35 ) — —
Option and forward contracts economic hedge (5) — — 3 (4 )
Financial expenses, net Net revenues
Nine months ended, Nine months ended,
September 30, 2020 September 30, September 30, 2020 September 30,
Reported under (U.S. $ in millions)
Line items in which effects of hedges are recorded $ 565 $ 635 $ (12,206 ) $ (12,420 )
Option and forward contracts (4) 78 (42 ) — —
Option and forward contracts Economic hedge (5) — — (37 ) —
(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. In the fourth quarter of 2019, Teva terminated $588 million in cross-currency swap agreements against its outstanding 3.65% senior notes maturing in November 2021. The settlement of these transactions resulted in cash proceeds of $95 million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense.
(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. In the third quarter of 2019, Teva terminated this interest rate swap agreement. The settlement of these transactions resulted in a gain position of $10 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense.
(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.
(5) Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the British pound, the Russian ruble and some other currencies during the period for which such instruments are transacted. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. In the first nine months of 2020, the positive impact from these derivatives recognized under revenues was $37 million, partially offset by a $3 million negative impact recognized under cost of sales. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.

Other assets impairments, res_2

Other assets impairments, restructuring and other items (Tables)9 Months Ended
Sep. 30, 2020
Schedule of Other Assets Impairments, Restructuring and Other ItemsThree months ended Nine months ended
September 30, September 30,
2020 2019 2020 2019
(U.S. $ in millions) (U.S. $ in millions)
Impairments of long-lived tangible assets (1) $ 56 $ 28 $ 408 $ 96
Contingent consideration (179 ) 51 (96 ) 4
Restructuring 9 61 82 140
Other 15 21 10 24
Total $ (98 ) $ 160 $ 404 $ 263
(1) Including impairments related to exit and disposal activities
Summary of Restructuring Plan Including Costs Related to Exit and DisposalThree months ended September 30,
2020 2019
(U.S. $ in millions)
Restructuring
Employee termination $ 3 $ 49
Other 7 11
Total $ 9 $ 61
Nine months ended September 30,
2020 2019
(U.S. $ in millions)
Restructuring
Employee termination $ 39 $ 105
Other 43 34
Total $ 82 $ 140
Summary of Restructuring AccrualsThe following table provides the components of and changes in the Company’s restructuring accruals:
Employee termination Other Total
(U.S. $ in millions )
Balance as of January 1, 2020 $ (208 ) $ (7 ) $ (215 )
Provision (39 ) (43 ) (82 )
Utilization and other* 145 43 188
Balance as of September 30, 2020 $ (102 ) $ (7 ) $ (109 )
* Includes adjustments for foreign currency translation.

Accumulated other comprehensi_2

Accumulated other comprehensive income (loss) (Tables)9 Months Ended
Sep. 30, 2020
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)The components of, and changes within, accumulated other comprehensive income (loss) attributable to Teva are presented in the table below:
Net Unrealized Gains (Losses) Benefit Plans
Foreign Available-for- sale Derivative Actuarial gains Total
(U.S. $ in millions)
Balance as of December 31, 2019 $ (1,794 ) $ — $ (420 ) $ (98 ) $ (2,312 )
Other comprehensive income (loss) before reclassifications (377 ) — 20 — (357 )
Amounts reclassified to the statements of income — — 26 — 26
Net other comprehensive income (loss) before tax (377 ) — 46 — (331 )
Net other comprehensive income (loss) after tax* (377 ) — 46 — (331 )
Balance as of September 30, 2020 $ (2,171 ) $ — $ (374 ) $ (98 ) $ (2,643 )
* Amounts do not include a $29 million gain from foreign currency translation adjustments attributable to non-controlling
Net Unrealized Gains (Losses) Benefit Plans
Foreign Available-for- sale Derivative Actuarial gains Total
(U.S. $ in millions)
Balance as of December 31, 2018 $ (1,878 ) $ 1 $ (504 ) $ (78 ) $ (2,459 )
Other comprehensive income (loss) before reclassifications (28 ) (1 ) 103 * * 74
Amounts reclassified to the statements of income — — 21 — 21
Net other comprehensive income (loss) before tax (28 ) (1 ) 124 * * 95
Net other comprehensive income (loss) after tax* (28 ) (1 ) 124 (1 ) 94
Balance as of September 30, 2019 $ (1,906 ) $ — $ (380 ) $ (79 ) $ (2,365 )
* Amounts do not include a $23 million gain from foreign currency translation adjustments attributable to non-controlling
** Represents an amount less than $0.5 million.

Segments (Tables)

Segments (Tables)9 Months Ended
Sep. 30, 2020
Summary of Segment Profita. Segment information:
Three months ended September 30,
2020
North America Europe International Markets
(U.S. $ in millions)
Revenues $ 2,017 $ 1,116 $ 529
Gross profit 1,056 637 275
R&D expenses 155 60 17
S&M expenses 250 200 101
G&A expenses 97 66 33
Other income (5 ) (1 ) (1 )
Segment profit $ 560 $ 312 $ 125
Three months ended September 30,
2019
North America Europe International Markets*
(U.S. $ in millions)
Revenues $ 2,051 $ 1,163 $ 565
Gross profit 1,048 662 295
R&D expenses 156 63 21
S&M expenses 219 206 114
G&A expenses 112 56 32
Other (income) expense (5 ) (4 ) (1 )
Segment profit $ 565 $ 341 $ 130
Nine months ended September 30,
2020
North America Europe International Markets
(U.S. $ in millions)
Revenues $ 6,146 $ 3,520 $ 1,582
Gross profit 3,208 2,009 828
R&D expenses 455 180 51
S&M expenses 755 590 312
G&A expenses 325 184 96
Other income (9 ) (3 ) (10 )
Segment profit $ 1,682 $ 1,058 $ 378
Nine months ended September 30,
2019
North America Europe International Markets*
(U.S. $ in millions)
Revenues $ 6,169 $ 3,611 $ 1,668
Gross profit 3,155 2,066 877
R&D expenses 497 199 66
S&M expenses 756 637 348
G&A expenses 342 175 102
Other income (6 ) (5 ) (2 )
Segment profit $ 1,566 $ 1,060 $ 363
* The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c.
Schedule Of Consolidated Income Before Income TaxThe following table presents a reconciliation of Teva’s segment profits to its consolidated operating income (loss) and to consolidated income (loss) before income taxes for the three and nine months ended September 30, 2020 and 2019:
Three months ended Nine months ended
September 30, September 30,
2020 2019 2020 2019
(U.S. (U.S. $ in millions)
North America profit $ 560 $ 565 $ 1,682 $ 1,566
Europe profit 312 341 1,058 1,060
International Markets profit 125 130 378 363
Total reportable segments profit 997 1,036 3,118 2,989
Profit of other activities 28 16 130 92
Total segments profit 1,025 1,051 3,248 3,081
Amounts not allocated to segments:
Amortization 251 255 758 823
Other assets impairments, restructuring and other items (98 ) 160 404 263
Intangible asset impairments 509 177 1,278 1,206
Goodwill impairment 4,628 — 4,628 —
Legal settlements and loss contingencies 21 468 10 1,171
Other unallocated amounts 55 73 148 209
Consolidated operating income (loss) (4,342 ) (81 ) (3,978 ) (591 )
Financial expenses, net 117 211 565 635
Consolidated income (loss) before income taxe s $ (4,459 ) $ (292 ) $ (4,543 ) $ (1,226 )
Schedule of Net Sales by Product LineThe following tables present revenues by major products and activities for the three and nine months ended September 30, 2020 and 2019:
North America Three months ended September 30,
2020 2019
(U.S. $ in millions)
Generic products $ 928 $ 914
AJOVY 35 25
AUSTEDO 168 105
BENDEKA ® ® 105 124
COPAXONE 236 271
ProAir ® 50 71
QVAR ® 42 60
Anda 341 351
Other 113 131
Total $ 2,017 $ 2,051
* Does not include revenues from the ProAir authorized generic, which are included under generic products.
North America Nine months ended
2020 2019
(U.S. $ in millions)
Generic products $ 2,804 $ 2,826
AJOVY 98 68
AUSTEDO 451 276
BENDEKA/TREANDA 313 371
COPAXONE 671 753
ProAir* 175 194
QVAR 139 183
Anda 1,141 1,080
Other 354 417
Total $ 6,146 $ 6,169
* Does not include revenues from the ProAir authorized generic, which are included under generic products.
Europe Three months ended September 30,
2020 2019
(U.S. $ in millions)
Generic products $ 824 $ 836
COPAXONE 101 106
Respiratory products 77 87
AJOVY 8 1
Other 106 134
Total $ 1,116 $ 1,163
Europe Nine September 30,
2020 2019
(U.S. $ in millions)
Generic products $ 2,593 $ 2,599
COPAXONE 294 327
Respiratory products 263 267
AJOVY 17 1
Other 352 416
Total $ 3,520 $ 3,611
International Markets Three months ended September 30,
2020 2019
(U.S. $ in millions)
Generic products $ 429 $ 474
COPAXONE 14 20
Other 86 71
Total $ 529 $ 565
* The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c.
International Markets Nine months ended
2020 2019
(U.S. $ in millions)
Generic products $ 1,304 $ 1,404
COPAXONE 38 46
Other 241 218
Total $ 1,582 $ 1,668
* The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c.

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)9 Months Ended
Sep. 30, 2020
Summary of Financial Items Carried at Fair ValueFinancial items carried at fair value as of September 30, 2020 and December 31, 2019 are classified in the tables below in one of the three categories of fair value levels:
September 30, 2020
Level 1 Level 2 Level 3 Total
(U.S. $ in millions)
Cash and cash equivalents:
Money markets $ 191 $ — $ — $ 191
Cash, deposits and other 1,636 — — 1,636
Investment in securities:
Equity securities* 20 — 297 317
Other, mainly debt securities 1 — 9 10
Derivatives:
Asset derivatives—options and forward contracts — 36 — 36
Liability derivatives—options and forward contracts — (67 ) — (67 )
Contingent consideration** — — (279 ) (279 )
Total $ 1,848 $ (31 ) $ 27 $ 1,844
December 31, 2019
Level 1 Level 2 Level 3 Total
(U.S. $ in millions)
Cash and cash equivalents:
Money markets $ 577 $ — $ — $ 577
Cash, deposits and other 1,398 — — 1,398
Investment in securities:
Equity securities 42 — — 42
Other, mainly debt securities 2 — 12 14
Derivatives:
Asset derivatives—options and forward contracts — 32 — 32
Liability derivatives—options and forward contracts — (41 ) — (41 )
Liability derivatives—interest rate and cross-currency swaps — (22 ) — (22 )
Contingent consideration** — — (460 ) (460 )
Total $ 2,019 $ (31 ) $ (448 ) $ 1,540
* During the third quarter of 2020, Teva recorded a gain of $134 million under share in profits of associated companies, net, reflecting the difference between the book value of Teva’s investment in American Well Corporation (“American Well”) and its fair value as of the date it completed its initial public offering in September 2020. The investment was reclassified from “investment in associated companies” to “investment in marketable securities,” since Teva no longer has significant influence in American Well. On September
** Contingent consideration represents liabilities recorded at fair value in connection with acquisitions.
Summary of Fair Value of Financial Liabilities Measured Using Level 3 InputsThe following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs:
Nine months ended
(U.S. $ in millions)
Fair value at the beginning of the period $ (448 )
Transfer into Level 3- equity securities 179
Revaluation of equity securities 118
Revaluation of debt securities (3 )
Adjustments to provisions for contingent consideration:
Actavis Generics transaction 161
Eagle transaction (65 )
Settlement of contingent consideration:
Eagle transaction 85
Fair value at the end of the period $ 27
Summary of Financial Instrument Measured on a Basis Other Than Fair ValueFinancial 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 (level 1 inputs):
Fair value*
September 30, December 31,
2020 2019
(U.S. $ in millions)
Senior notes included under senior notes and loans $ 22,194 $ 22,686
Senior notes and convertible senior debentures included under short-term debt 1,968 2,318
Total $ 24,162 $ 25,004
* Based on quoted market price. See note 7 for carrying value.

Basis of presentation - Summary

Basis of presentation - Summary of impact of the revision on net revenues and cost of sales in the consolidated statement of income (Detail) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Sep. 30, 2020Sep. 30, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues $ 3,978 $ 4,093 $ 12,206 $ 12,420
Net revenues [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues4,093 $ 4,177 $ 4,149 12,420
Cost of sales [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues2,264 2,284 2,293 6,841
As reported [Member] | Net revenues [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues4,264 4,337 4,295 12,896
As reported [Member] | Cost of sales [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues2,435 2,443 2,440 7,318
Restatement adjustment [Member] | Net revenues [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues(171)(159)(146)(477)
Restatement adjustment [Member] | Cost of sales [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues $ (171) $ (159) $ (146) $ (477)

Certain Transactions - Other Tr

Certain Transactions - Other Transactions - Additional Information (Detail) - USD ($) $ in MillionsJan. 08, 2018May 12, 2017Sep. 30, 2016Sep. 30, 2020Mar. 31, 2020Sep. 30, 2016Sep. 30, 2020Dec. 31, 2018Dec. 31, 2017Dec. 31, 2019
Noncash or Part Noncash Acquisitions [Line Items]
Operating lease right-of-use assets $ 557 $ 557 $ 514
Tel-Aviv Headquarters Lease Agreement [Member]
Noncash or Part Noncash Acquisitions [Line Items]
Operating lease right-of-use assets74 74
Operating lease liability $ 66 $ 66
Lessee, operating lease, term of contract12 years 6 months12 years 6 months
Lessee, operating lease, option to extendwith an option for three extensions
Alder [Member]
Noncash or Part Noncash Acquisitions [Line Items]
Upfront payment $ 25
Milestone payment $ 25
Collaborative agreement milestone payments $ 150
Otsuka [Member]
Noncash or Part Noncash Acquisitions [Line Items]
Upfront payment $ 50
Milestone payment $ 15
Celltrion [Member]
Noncash or Part Noncash Acquisitions [Line Items]
Refundable payment60 $ 60
Total associated cost $ 160 160
Regeneron [Member]
Noncash or Part Noncash Acquisitions [Line Items]
Upfront payment $ 250
Collaborative agreement milestone payments $ 2,230 $ 120 $ 120
Research and development costs $ 1,000
Alvotech [Member]
Noncash or Part Noncash Acquisitions [Line Items]
Collaborative agreement milestone payments $ 490

Certain Transactions - Assets a

Certain Transactions - Assets and Liabilities Held For Sale - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended
Jun. 30, 2020Nov. 30, 2015
Impairment charge $ 261
Teva [Member]
Equity Method Investment Ownership Percentage51.00%
Minority Interest Ownership Percentage49.00%

Certain Transactions - Business

Certain Transactions - Business Acquisitions - Summary of Major Classes of Assets and Liabilities Included as Held for Sale (Detail) - USD ($) $ in Millions9 Months Ended12 Months Ended
Sep. 30, 2020Dec. 31, 2019
Business Combinations [Abstract]
Inventories $ 160 $ 0
Property, plant and equipment, net and others239 98
Goodwill27 0
Adjustments of assets held for sale to fair value(313)(11)
Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 113 $ 87

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions9 Months Ended
Sep. 30, 2020Dec. 31, 2019
Revenue Recognition [Line Items]
Allowance for credit losses $ 117 $ 135
United States [Member]
Revenue Recognition [Line Items]
Percentage sales reserves and allowances to U.S. customers80.00%

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Detail) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Total revenue $ 3,978 $ 4,093 $ 12,206 $ 12,420
Sale of Goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue3,427 3,514 10,408 10,653
Licensing Arrangements [Member]
Disaggregation of Revenue [Line Items]
Total revenue27 36 90 121
Distribution [Member]
Disaggregation of Revenue [Line Items]
Total revenue350 357 1,165 1,095
Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue174 186 543 549
International Markets [Member]
Disaggregation of Revenue [Line Items]
Total revenue529 565 [1]1,582 1,668 [1]
International Markets [Member] | Sale of Goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue478 511 1,417 1,505
International Markets [Member] | Licensing Arrangements [Member]
Disaggregation of Revenue [Line Items]
Total revenue2 1 6 3
International Markets [Member] | Distribution [Member]
Disaggregation of Revenue [Line Items]
Total revenue9 5 21 14
International Markets [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue41 48 138 146
Other activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue316 314 957 972
Other activities [Member] | Sale of Goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue173 176 561 566
Other activities [Member] | Licensing Arrangements [Member]
Disaggregation of Revenue [Line Items]
Total revenue1 1 3 4
Other activities [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue142 136 394 402
North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue2,017 2,051 6,146 6,169
North America [Member] | Sale of Goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue1,660 1,674 4,943 4,997
North America [Member] | Licensing Arrangements [Member]
Disaggregation of Revenue [Line Items]
Total revenue17 26 59 92
North America [Member] | Distribution [Member]
Disaggregation of Revenue [Line Items]
Total revenue341 351 1,141 1,080
North America [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue(1) [2]3 [2]
Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue1,116 1,163 3,520 3,611
Europe [Member] | Sale of Goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue1,116 1,153 3,487 3,586
Europe [Member] | Licensing Arrangements [Member]
Disaggregation of Revenue [Line Items]
Total revenue7 7 22 22
Europe [Member] | Distribution [Member]
Disaggregation of Revenue [Line Items]
Total revenue [2]1 3 1
Europe [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue $ (8) $ 2 $ 9 $ 2
[1]The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c.
[2]§ Represents an amount less than $1 million.

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Schedule of Sales Reserves and Allowances (Detail) - USD ($) $ in Millions9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Revenue Recognition [Line Items]
Balance at beginning of period $ 6,246 $ 6,886
Provisions related to sales made in current year11,122 12,797
Provisions related to sales made in prior periods(350)(12)
Credits and payments(11,958)(13,359)
Translation differences12 (19)
Balance at end of period5,072 6,293
Reserves Included in Accounts Receivable, Net [Member]
Revenue Recognition [Line Items]
Balance at beginning of period87 175
Provisions related to sales made in current year285 334
Provisions related to sales made in prior periods3
Credits and payments(298)(356)
Balance at end of period74 156
Rebates [Member]
Revenue Recognition [Line Items]
Balance at beginning of period2,895 3,006
Provisions related to sales made in current year3,649 4,004
Provisions related to sales made in prior periods(192)(28)
Credits and payments(4,224)(4,276)
Translation differences10 (14)
Balance at end of period2,138 2,692
Medicaid and Other Governmental Allowances [Member]
Revenue Recognition [Line Items]
Balance at beginning of period1,109 1,361
Provisions related to sales made in current year566 760
Provisions related to sales made in prior periods(116)(2)
Credits and payments(650)(882)
Translation differences4 (4)
Balance at end of period913 1,233
Chargebacks [Member]
Revenue Recognition [Line Items]
Balance at beginning of period1,342 1,530
Provisions related to sales made in current year6,268 7,196
Provisions related to sales made in prior periods(33)(1)
Credits and payments(6,418)(7,299)
Translation differences2 (1)
Balance at end of period1,161 1,425
Returns [Member]
Revenue Recognition [Line Items]
Balance at beginning of period637 638
Provisions related to sales made in current year299 195
Provisions related to sales made in prior periods(11)23
Credits and payments(289)(251)
Translation differences(1)
Balance at end of period636 604
Other [Member]
Revenue Recognition [Line Items]
Balance at beginning of period176 176
Provisions related to sales made in current year55 308
Provisions related to sales made in prior periods2 (7)
Credits and payments(79)(295)
Translation differences(4)1
Balance at end of period150 183
Total Reserves Included in Sales Reserves and Allowances [Member]
Revenue Recognition [Line Items]
Balance at beginning of period6,159 6,711
Provisions related to sales made in current year10,837 12,463
Provisions related to sales made in prior periods(350)(15)
Credits and payments(11,660)(13,003)
Translation differences12 (19)
Balance at end of period $ 4,998 $ 6,137

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Inventories [Line Items]
Finished products $ 2,384 $ 2,504
Raw and packaging materials1,334 1,183
Products in process635 583
Materials in transit and payments on account163 151
Total $ 4,516 $ 4,422

Identifiable Intangible Asset_2

Identifiable Intangible Assets - Summary of Identifiable Intangible Assets (Detail) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount net of impairment $ 21,128 $ 21,998
Accumulated amortization11,819 10,766
Net carrying amount9,308 11,232
Identifiable product rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount net of impairment19,520 19,663
Accumulated amortization11,665 10,640
Net carrying amount7,856 9,023
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount net of impairment609 600
Accumulated amortization154 126
Net carrying amount455 474
In Process Research and Development (IPR&D) [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount net of impairment998 1,735
Net carrying amount $ 998 $ 1,735

Identifiable Intangible Asset_3

Identifiable Intangible Assets - Additional Information (Detail) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020USD ($)Sep. 30, 2019USD ($)Sep. 30, 2020USD ($)Sep. 30, 2019USD ($)
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets useful life12 years
Amortization of intangible assets $ 251 $ 255 $ 758 $ 823
Impairment of intangible assets excluding goodwill509 177 1,278 1,206
In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill $ 360 $ 708 539
Business combination, contingent consideration, liability, measurement input0.800.80
In Process Research and Development [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Business combination, contingent consideration, liability, measurement input0.075 0.075
In Process Research and Development [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Business combination, contingent consideration, liability, measurement input0.090.09
In Process Research and Development [Member] | Lenalidomide Product [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill $ 262 $ 262 125
Identifiable product rights [Member] | Market assumptions regarding price and volume of products [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill39
Identifiable product rights [Member] | Metformin tablets product [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill110 110
Actavis [Member] | In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Business combination recognized identifiable assets964 964
Impairment of intangible assets excluding goodwill59
Actavis [Member] | In Process Research and Development [Member] | Generic Pipeline Products [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill96 78 213 355
Actavis [Member] | Identifiable product rights [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill $ 149 $ 99 570 $ 667
AUSTEDO [Member] | In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill211
Japan [Member] | Actavis [Member] | In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill165
United States [Member] | Actavis [Member] | In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill $ 271

Goodwill - Summary of Changes i

Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Goodwill [Line Items]
Beginning balance[1] $ 24,846
Goodwill reclassified as assets to held for sale(27)
Goodwill impairment $ (4,628) $ 0 (4,628) $ 0
Translation differences37
Ending balance[1]20,228 20,228
North America [Member]
Goodwill [Line Items]
Beginning balance[1]11,091
Goodwill impairment(4,628)
Translation differences(10)
Ending balance[1]6,453 6,453
Europe [Member]
Goodwill [Line Items]
Beginning balance[1]8,536
Goodwill reclassified as assets to held for sale(8)
Translation differences253
Ending balance[1]8,781 8,781
International Markets [Member]
Goodwill [Line Items]
Beginning balance[1]2,532
Goodwill reclassified as assets to held for sale(19)
Translation differences(206)
Ending balance[1]2,307 2,307
Other [Member]
Goodwill [Line Items]
Beginning balance[1]2,687
Ending balance[1] $ 2,687 $ 2,687
[1]Accumulated goodwill impairment as of September 30, 2020 and December 31, 2019 was approximately $25.6 billion and $21.0 million, respectively.

Goodwill - Summary of Changes_2

Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - USD ($) $ in BillionsSep. 30, 2020Dec. 31, 2019
Goodwill [Line Items]
Accumulated goodwill impairment $ 25.6 $ 21

Goodwill - Additional Informati

Goodwill - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended6 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2020Sep. 30, 2019
Goodwill [Line Items]
Goodwill impairment $ 4,628 $ 0 $ 4,628 $ 0
North America [Member]
Goodwill [Line Items]
Goodwill impairment $ 4,628
Reduction in its market capitalization25.00%
Other [Member]
Goodwill [Line Items]
Percentage difference between fair value and carrying value in respect of goodwill10.00%10.00%10.00%

Debt Obligations - Schedule of

Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($) $ in MillionsSep. 30, 2020Sep. 30, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Current maturities of long-term liabilities $ 1,474 $ 1,474 $ 1,831
Total short term debt $ 2,106 2,106 2,345
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Weighted average interest rateLIBOR+1.75
Short-term borrowings $ 117 $ 117
Convertible senior debentures [Member]
Debt Instrument [Line Items]
Weighted average interest rate0.25%0.25%
Maturity2026
Short-term borrowings $ 514 $ 514 $ 514

Debt Obligations - Schedule o_2

Debt Obligations - Schedule of Senior Notes and Loans (Detail) - USD ($) $ in Millions9 Months Ended
Sep. 30, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Total senior notes $ 25,078 $ 26,496
Less current maturities(1,474)(1,831)
Less debt issuance costs(89)(103)
Total senior notes and loans $ 23,515 24,562
Other Debentures [Member]
Debt Instrument [Line Items]
Weighted average interest rate1.13%
Maturity2026
Total senior notes and loans $ 1 1
Senior notes EUR 1,010 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate[1]0.38%
Maturity[1]2020
Total senior notes[1]1,131
Senior notes EUR 1,500 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate1.13%
Maturity2024
Total senior notes $ 1,755 1,673
Senior notes EUR 1,300 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate1.25%
Maturity2023
Total senior notes $ 1,522 1,451
Senior notes EUR 900 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate4.50%
Maturity2025
Total senior notes $ 1,057 1,008
Senior notes EUR 750 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate1.63%
Maturity2028
Total senior notes $ 874 833
Senior notes EUR 700 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate3.25%
Maturity2022
Total senior notes $ 822 784
Senior notes EUR 700 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate1.88%
Maturity2027
Total senior notes $ 821 782
Senior notes USD 3,500 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate3.15%
Maturity2026
Total senior notes $ 3,495 3,494
Senior notes USD 3,000 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate2.80%
Maturity2023
Total senior notes $ 2,996 2,995
Senior notes USD 2,000 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate4.10%
Maturity2046
Total senior notes $ 1,986 1,985
Senior notes USD 1,250 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate6.00%
Maturity2024
Total senior notes $ 1,250 1,250
Senior notes USD 1,250 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate6.75%
Maturity2028
Total senior notes $ 1,250 1,250
Senior notes EUR 1,000 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate6.00%
Maturity2025
Total senior notes $ 1,174 1,120
Senior notes USD 1,000 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate7.13%
Maturity2025
Total senior notes $ 1,000 1,000
Senior notes USD 1,475 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate2.20%
Maturity2021
Total senior notes $ 1,474 1,474
Senior notes USD 844 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate2.95%
Maturity2022
Total senior notes $ 855 856
Senior notes USD 789 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate6.15%
Maturity2036
Total senior notes $ 783 782
Senior notes USD 700 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate[2]2.25%
Maturity[2]2020
Total senior notes[2]700
Senior notes USD 613 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate3.65%
Maturity2021
Total senior notes $ 616 618
Senior notes USD 588 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate3.65%
Maturity2021
Total senior notes $ 587 587
Senior notes CHF 350 Million [Member]
Debt Instrument [Line Items]
Weighted average interest rate0.50%
Maturity2022
Total senior notes $ 381 361
Senior notes CHF 350 Million [Member]
Debt Instrument [Line Items]
Weighted average interest rate1.00%
Maturity2025
Total senior notes $ 381 $ 362
[1]In July 2020, Teva repaid at maturity €1,010 million of its 0.375% senior notes.
[2]In March 2020, Teva repaid at maturity $700 million of its 2.25% senior notes.

Debt Obligations - Schedule o_3

Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail) - Sep. 30, 2020 € in Millions, SFr in Millions, $ in MillionsEUR (€)USD ($)CHF (SFr)
Senior notes EUR 1,010 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | € € 1,010
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 EUR 1,000 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | € € 1,000
Senior notes USD 1,000 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount $ 1,000
Senior notes USD 3,500 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount3,500
Senior notes USD 1,475 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount1,475
Senior notes USD 3,000 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount3,000
Senior notes USD 2,000 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount2,000
Senior notes USD 1,250 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount1,250
Senior notes USD 1,250 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount1,250
Senior notes USD 844 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount844
Senior notes USD 789 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount789
Senior notes USD 700 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount700
Senior notes USD 613 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount613
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

Debt Obligations - Additional I

Debt Obligations - Additional Information (Detail) € in Millions, $ in Millions1 Months Ended9 Months Ended
Apr. 30, 2019USD ($)Sep. 30, 2020USD ($)Sep. 30, 2020EUR (€)Jul. 31, 2020EUR (€)Mar. 31, 2020USD ($)Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
Senior notes $ 25,078 $ 26,496
Long term debt currency portion USD63.00%63.00%
Long term debt currency portion EUR34.00%34.00%
Long term debt currency portion CHF3.00%3.00%
Line of Credit Facility, Maximum Borrowing Capacity $ 2,300
Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes € 1,010 $ 700
Weighted average interest rate0.375%2.25%
Convertible Debt [Member]
Debt Instrument [Line Items]
Principal amount currently outstanding on the debt instruments $ 514 $ 514
Weighted average interest rate0.25%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Covenant DescriptionThe net debt to EBITDA ratio limit is 5.75x in the third and fourth quarters of 2020 and declines to 5.50x in the first and second quarters of 2021, and continues to gradually decline over the remaining term of the RCF.
Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Long Term Debt Payable Under Revolving Credit Facility | € € 270
Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Long Term Debt Payable Under Revolving Credit Facility | € € 100
Revolving Credit Facility [Member] | Trache A [Member]
Debt Instrument [Line Items]
Revolving credit facility $ 1,150
Revolving Credit Facility [Member] | Trache A [Member] | Trache A Extension [Member]
Debt Instrument [Line Items]
Revolving credit facility $ 1,065
Line of credit facility, expiration dateApr. 8,
2023
Revolving Credit Facility [Member] | Trache B [Member]
Debt Instrument [Line Items]
Revolving credit facility $ 1,150
Line of credit facility, expiration dateApr. 8,
2024

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Summary of Notional Amounts for Hedged Items, Designated as Hedge Accounting (Detail) $ in MillionsDec. 31, 2019USD ($)
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

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accounts Payable [Member]
Derivative [Line Items]
Liability derivatives $ 0
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member]
Derivative [Line Items]
Asset derivatives0
Designated as Hedging Instrument [Member] | Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | Accounts Payable [Member] | Net Investment Hedging [Member]
Derivative [Line Items]
Liability derivatives0 $ (22)
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accounts Payable [Member]
Derivative [Line Items]
Liability derivatives(67)(41)
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member]
Derivative [Line Items]
Asset derivatives36 $ 32
Not Designated as Hedging Instrument [Member] | Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | Accounts Payable [Member] | Net Investment Hedging [Member]
Derivative [Line Items]
Liability derivatives $ 0

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 Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Other Comprehensive Income
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax $ 79 $ (53) $ (302) $ 117
Other Comprehensive Income | Cash Flow Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax[1]0 (33)0 (49)
Other Comprehensive Income | Net Investment Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax[2]0 (39)(21)(46)
Other Comprehensive Income | Fair Value Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax0 [3]0 0 [3]0 [3]
Financial expenses [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax117 211 565 635
Financial expenses [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax[1]0 (1)0 (2)
Financial expenses [Member] | Net Investment Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax[2]0 $ (7)(2)(22)
Financial expenses [Member] | Fair Value Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax[3] $ 0 $ 0 $ 2
[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. In the fourth quarter of 2019, Teva terminated $588 million in cross-currency swap agreements against its outstanding 3.65% senior notes maturing in November 2021. The settlement of these transactions resulted in cash proceeds of $95 million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense.
[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. In the first quarter of 2020, these cross-currency swap agreements expired. The settlement of these transactions resulted in cash proceeds of $3 million.
[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. In the third quarter of 2019, Teva terminated this interest rate swap agreement. The settlement of these transactions resulted in a gain position of $10 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense.

Derivative Instruments and He_6

Derivative Instruments and Hedging Activities - Schedule Of Other Derivatives Not Designated As Hedging Instruments Statements OfFinancial Performance And Financial Position Location (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Net Revenues [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax $ (3,978) $ (4,093) $ (12,206) $ (12,420)
Net Revenues [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax[1]3 (4)(37)
Financial expenses [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax117 211 565 635
Financial expenses [Member] | Not Designated as Hedging Instrument, Trading [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax[2] $ 40 $ (35) $ 78 $ (42)
[1]Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the British pound, the Russian ruble and some other currencies during the period for which such instruments are transacted. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. In the first nine months of 2020, the positive impact from these derivatives recognized under revenues was $36 million, partially offset by a $2 million negative impact recognized under cost of sales. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
[2]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_7

Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Mar. 31, 2020Sep. 30, 2019Mar. 31, 2019Sep. 30, 2016Sep. 30, 2020Sep. 30, 2019Dec. 31, 2019Dec. 31, 2016
Derivative [Line Items]
Revenues other than USD48.00%48.00%
Teva other comprehensive loss $ 493
Forward starting interest rate swaps and treasury lock agreements losses $ 8 $ 7 23 $ 22
Interest Rate Swap Gain $ 1 $ 3 3 6
Gain from currency swap1 3 3 6
Cash received on settlement of position $ 3 3
Cost of sales [Member]
Derivative [Line Items]
Teva other comprehensive loss3
Derivative, Gain on Derivative $ 37
Senior Notes Due 2023 Two [Member]
Derivative [Line Items]
Notional amount hedge debt $ 500 $ 3,000 $ 500 $ 500
Previously hedge debt rate2.80%2.80%2.80%
Settlement gain position $ 10 $ 10
Cash received on settlement of position $ 10 $ 10
Derivative, Fair Value Hedge, Included in Effectiveness, Gain (Loss)41
Senior Notes Due 2022 [Member]
Derivative [Line Items]
Notional amount hedge debt $ 844
Previously hedge debt rate2.95%
Senior Notes Due 2021 [Member]
Derivative [Line Items]
Notional amount hedge debt $ 450 $ 588
Previously hedge debt rate3.65%3.65%3.65%3.65%
Cash received on settlement of position $ 95 $ 95 $ 95
Senior Notes Due 2020 [Member]
Derivative [Line Items]
Cash received on settlement of position $ 500 $ 500

Legal Settlements and Loss Co_2

Legal Settlements and Loss Contingencies - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019Dec. 31, 2019
Loss Contingencies [Line Items]
Legal settlements and loss contingencies, expense $ 21 $ 468 $ 10 $ 1,171
Accrued amount for legal settlements and loss contingencies $ 1,624 $ 1,624 $ 1,580
Settlement On Account Of Product Liability [Member] | United States [Member]
Loss Contingencies [Line Items]
Restructuring expense and incomeThe expense in the first nine months of 2020 was mainly related to an increase of a reserve for certain legal expenses and settlement contributions related to product liability claims in the United States and partially settling antitrust claims challenging a patent settlement agreement, partially offset by proceeds received following a settlement of the FCPA derivative proceedings in Israel and settlement of an action brought against the sellers of Auden McKenzie (an acquisition made by Actavis Generics).The expense in the first nine months of 2019 was mainly related to an estimated settlement provision recorded in connection with the opioid cases.

Commitments and Contingencies -

Commitments and Contingencies - Contingencies - Additional Information (Detail) € in Millions, $ in Millions, $ in MillionsOct. 21, 2019USD ($)NumberJun. 27, 2018CAD ($)Aug. 21, 2017USD ($)Jul. 15, 2015USD ($)May 31, 2019USD ($)Jul. 31, 2015USD ($)Aug. 31, 2012USD ($)Dec. 31, 2010USD ($)Nov. 30, 2009USD ($)Aug. 31, 2008USD ($)Sep. 30, 2020USD ($)Dec. 31, 2019USD ($)Dec. 31, 2014USD ($)Dec. 31, 2014CAD ($)Sep. 30, 2020EUR (€)Sep. 01, 2020USD ($)Mar. 31, 2020CAD ($)May 31, 2015USD ($)Jan. 31, 2009USD ($)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 $ 700 $ 350
Annual sales of Effexor $ 2,600
Annual sales of Lamictal $ 2,300 $ 950
Annual sales of Aggrenox $ 1.1 $ 416
Annual sales of Actos $ 2,800 $ 3,700
Annual sales of Acto plus $ 430 $ 500
Annual sales of Namenda $ 550 $ 1.1
Annual Sales Of Sensipar $ 1,400
Modafinil payment remaining balance19
Litigation settlement amount awarded cash amount $ 20
Annual Sales Of Copaxone $ 431
Opioid Litigation [Member]
Commitment And Contingencies [Line Items]
Litigation settlement amount $ 25 $ 85
Litigation settlement amount awarded distribution period3 years
Litigation settlement amount awarded number of installments | Number4
Litigation settlement amount awarded cash amount distribution period3 years
Nationwide Settlement [Member]
Commitment And Contingencies [Line Items]
Litigation settlement amount $ 23,000
Litigation settlement amount awarded distribution period10 years
Litigation settlement amount awarded cash amount $ 250
Litigation settlement amount awarded cash amount distribution period10 years
Eosinophilic Esophagitis [Member]
Commitment And Contingencies [Line Items]
Damage claimed200
Eosinophilic Esophagitis [Member] | United States [Member]
Commitment And Contingencies [Line Items]
Damage claimed150
Eosinophilic Esophagitis [Member] | Europe [Member]
Commitment And Contingencies [Line Items]
Damage claimed $ 50
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

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions1 Months Ended3 Months Ended9 Months Ended
Nov. 30, 2020Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Income Tax [Line Items]
Expected impairment of income tax benefit $ 140
Income tax expense (benefit) $ 16 $ 11 $ (147) $ (159)
Pre-tax income (loss) $ (4,459) $ (292) $ (4,543) $ (1,226)
Israel Tax Authority [Member]
Income Tax [Line Items]
Statutory tax rate in Israel23.00%

Other assets impairments, res_3

Other assets impairments, restructuring and other items - Schedule of Other Assets Impairments, Restructuring and Other Items (Detail) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Restructuring and Impairment Costs [Line Items]
Impairments of long-lived tangible assets[1] $ 56 $ 28 $ 408 $ 96
Contingent consideration(179)51 (96)4
Restructuring9 61 82 140
Other15 21 10 24
Total $ (98) $ 160 $ 404 $ 263
[1]Including impairments related to exit and disposal activities

Other assets impairments, res_4

Other assets impairments, restructuring and other items - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended9 Months Ended12 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019Dec. 31, 2020
Restructuring and Impairment Costs [Line Items]
Impairments of long-lived tangible assets[1] $ 56 $ 28 $ 408 $ 96
Impairments of property, plant and equipment56 408
Restructuring costs9 61 82 140
Business combination contingent consideration arrangements change in amount of contingent consideration liability(179)51 (96)4
Scenario, Forecast [Member]
Restructuring and Impairment Costs [Line Items]
Expected revenue from Florida manufacturing plant in 2020 $ 150
Restructuring Cost [Member]
Restructuring and Impairment Costs [Line Items]
Business combination contingent consideration arrangements change in amount of contingent consideration liability $ (179) $ 51 $ (96) $ 4
[1]Including impairments related to exit and disposal activities

Other assets impairments, res_5

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 Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring charges $ 9 $ 61 $ 82 $ 140
Employee termination [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges3 49 39 105
Other [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges $ 7 $ 11 $ 43 $ 34

Other assets impairments, res_6

Other assets impairments, restructuring and other items - Summary of Restructuring Accruals (Detail) $ in Millions9 Months Ended
Sep. 30, 2020USD ($)
Restructuring Cost and Reserve [Line Items]
Beginning balance $ (215)
Provision(82)
Utilization and other188 [1]
Ending balance(109)
Employee termination costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance(208)
Provision(39)
Utilization and other145 [1]
Ending balance(102)
Other [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance(7)
Provision(43)
Utilization and other43 [1]
Ending balance $ (7)
[1]Includes adjustments for foreign currency translation.

Earnings (Loss) per Share - Add

Earnings (Loss) per Share - Additional Information (Detail) - $ / shares3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic and diluted loss per share $ 3.97 $ 0.29 $ 3.78 $ 1.02

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance $ (2,312)
Ending Balance(2,643)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance(1,794) $ (1,878)
Other comprehensive income (loss) before reclassifications(377)(28)
Net other comprehensive income (loss) before tax(377)(28)
Net other comprehensive income loss after tax in respect of acturial benefits(377)[1](28)[2]
Ending Balance(2,171)(1,906)
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance1
Other comprehensive income (loss) before reclassifications(1)
Net other comprehensive income (loss) before tax(1)
Net other comprehensive income loss after tax in respect of acturial benefits[2](1)
Derivative Financial Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance(420)(504)
Other comprehensive income (loss) before reclassifications20 103
Amounts reclassified to the statements of income26 21
Net other comprehensive income (loss) before tax46 124
Net other comprehensive income loss after tax in respect of acturial benefits46 [1]124 [2]
Ending Balance(374)(380)
Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance(98)(78)
Other comprehensive income (loss) before reclassifications[3]
Net other comprehensive income (loss) before tax[3]
Net other comprehensive income loss after tax in respect of acturial benefits[2](1)
Ending Balance(98)(79)
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance(2,312)(2,459)
Other comprehensive income (loss) before reclassifications(357)74
Amounts reclassified to the statements of income26 21
Net other comprehensive income (loss) before tax(331)95
Net other comprehensive income loss after tax in respect of acturial benefits(331)[1]94 [2]
Ending Balance $ (2,643) $ (2,365)
[1]Amounts do not include a $29 million gain from foreign currency translation adjustments attributable to non-controlling interests.
[2]Amounts do not include a $23 million gain from foreign currency translation adjustments attributable to non-controlling interests.
[3]Represents an amount less than $0.5 million.

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Foreign Currency Translation Adjustments Attributable to Non-controlling Interests [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation attributable to non-controlling interests $ 29 $ 23
Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net other comprehensive income loss after tax in respect of acturial benefits[1](1)
Benefit Plans [Member] | Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net other comprehensive income loss after tax in respect of acturial benefits $ 0.5
[1]Amounts do not include a $23 million gain from foreign currency translation adjustments attributable to non-controlling interests.

Segments - Summary of Segment P

Segments - Summary of Segment Profit (Detail) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues $ 3,978 $ 4,093 $ 12,206 $ 12,420
Gross profit1,852 1,830 5,678 5,579
R&D expenses258 240 704 778
S&M expenses605 595 1,815 1,908
G&A expenses279 285 846 873
Segment profit(4,342)(81)(3,978)(591)
North America [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues2,017 2,051 6,146 6,169
Gross profit1,056 1,048 3,208 3,155
R&D expenses155 156 455 497
S&M expenses250 219 755 756
G&A expenses97 112 325 342
Other (income) expense(5)(5)(9)(6)
Segment profit560 565 1,682 1,566
Europe [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues1,116 1,163 3,520 3,611
Gross profit637 662 2,009 2,066
R&D expenses60 63 180 199
S&M expenses200 206 590 637
G&A expenses66 56 184 175
Other (income) expense(1)(4)(3)(5)
Segment profit312 341 1,058 1,060
International Markets [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues529 565 [1]1,582 1,668 [1]
Gross profit275 295 828 877 [1]
R&D expenses17 21 51 66 [1]
S&M expenses101 114 312 348 [1]
G&A expenses33 32 96 102 [1]
Other (income) expense(1)(1)(10)(2)[1]
Segment profit $ 125 $ 130 $ 378 $ 363 [1]
[1]The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c.

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 Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Amounts allocated to segments:
Segments profit $ (4,342) $ (81) $ (3,978) $ (591)
Amounts not allocated to segments:
Amortization251 255 758 823
Other assets impairments, restructuring and other items(98)160 404 263
Intangible asset impairments509 177 1,278 1,206
Goodwill impairment4,628 0 4,628 0
Legal settlements and loss contingencies21 468 10 1,171
Other unallocated amounts55 73 148 209
Consolidated operating income (loss)(4,342)(81)(3,978)(591)
Financial expenses, net117 211 565 635
Income (loss) before income taxes(4,459)(292)(4,543)(1,226)
North America [Member]
Amounts allocated to segments:
Segments profit560 565 1,682 1,566
Amounts not allocated to segments:
Consolidated operating income (loss)560 565 1,682 1,566
Europe [Member]
Amounts allocated to segments:
Segments profit312 341 1,058 1,060
Amounts not allocated to segments:
Consolidated operating income (loss)312 341 1,058 1,060
International Markets [Member]
Amounts allocated to segments:
Segments profit125 130 378 363 [1]
Amounts not allocated to segments:
Consolidated operating income (loss)125 130 378 363 [1]
Corporate Segment [Member]
Amounts allocated to segments:
Segments profit997 1,036 3,118 2,989
Amounts not allocated to segments:
Consolidated operating income (loss)997 1,036 3,118 2,989
Other Segments [Member]
Amounts allocated to segments:
Segments profit28 16 130 92
Amounts not allocated to segments:
Consolidated operating income (loss)28 16 130 92
Segments and Other Activities [Member]
Amounts allocated to segments:
Segments profit1,025 1,051 3,248 3,081
Amounts not allocated to segments:
Consolidated operating income (loss) $ 1,025 $ 1,051 $ 3,248 $ 3,081
[1]The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c.

Segments - Schedule of Revenues

Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Product Information [Line Items]
Revenues $ 3,978 $ 4,093 $ 12,206 $ 12,420
North America [Member]
Product Information [Line Items]
Revenues2,017 2,051 6,146 6,169
Europe [Member]
Product Information [Line Items]
Revenues1,116 1,163 3,520 3,611
International Markets [Member]
Product Information [Line Items]
Revenues529 565 [1]1,582 1,668 [1]
Generic products [Member] | North America [Member]
Product Information [Line Items]
Revenues928 914 2,804 2,826
Generic products [Member] | Europe [Member]
Product Information [Line Items]
Revenues824 836 2,593 2,599
Generic products [Member] | International Markets [Member]
Product Information [Line Items]
Revenues429 474 [1]1,304 1,404 [1]
COPAXONE [Member] | North America [Member]
Product Information [Line Items]
Revenues236 271 671 753
COPAXONE [Member] | Europe [Member]
Product Information [Line Items]
Revenues101 106 294 327
COPAXONE [Member] | International Markets [Member]
Product Information [Line Items]
Revenues14 20 [1]38 46 [1]
BENDEKA and TREANDA [Member] | North America [Member]
Product Information [Line Items]
Revenues105 124 313 371
ProAir [Member] | North America [Member]
Product Information [Line Items]
Revenues[2]50 71 175 194
QVAR [Member] | North America [Member]
Product Information [Line Items]
Revenues42 60 139 183
AJOVY [Member] | North America [Member]
Product Information [Line Items]
Revenues35 25 98 68
AJOVY [Member] | Europe [Member]
Product Information [Line Items]
Revenues8 1 17 1
AUSTEDO [Member] | North America [Member]
Product Information [Line Items]
Revenues168 105 451 276
Respiratory Product [Member] | Europe [Member]
Product Information [Line Items]
Revenues77 87 263 267
Anda [Member] | North America [Member]
Product Information [Line Items]
Revenues341 351 1,141 1,080
Other [Member] | North America [Member]
Product Information [Line Items]
Revenues113 131 354 417
Other [Member] | Europe [Member]
Product Information [Line Items]
Revenues106 134 352 416
Other [Member] | International Markets [Member]
Product Information [Line Items]
Revenues $ 86 $ 71 [1] $ 241 $ 218 [1]
[1]The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c.
[2]Does not include revenues from the ProAir authorized generic, which are included under generic products.

Fair Value Measurement - Summar

Fair Value Measurement - Summary of Financial Items Carried at Fair Value (Detail) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration[1] $ (279) $ (460)
Total1,844 1,540
Asset Derivatives - Options and Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives36 32
Interest Rate and Cross Currency Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives(22)
Liabilities Derivatives Options and Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives(67)(41)
Money Markets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents191 577
Cash, Deposits and Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents1,636 1,398
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities317 [2]42
Other, Mainly Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities10 14
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total1,848 2,019
Level 1 [Member] | Money Markets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents191 577
Level 1 [Member] | Cash, Deposits and Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents1,636 1,398
Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities20 [2]42
Level 1 [Member] | Other, Mainly Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities1 2
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total(31)(31)
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives36 32
Level 2 [Member] | Interest Rate and Cross Currency Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives(22)
Level 2 [Member] | Liabilities Derivatives Options and Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives(67)(41)
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration[1](279)(460)
Total27 (448)
Level 3 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities[2]297
Level 3 [Member] | Other, Mainly Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities $ 9 $ 12
[1]Contingent consideration represents liabilities recorded at fair value in connection with acquisitions.
[2]During the third quarter of 2020, Teva recorded a gain of $134 million under share in profits of associated companies, net, reflecting the difference between the book value of Teva’s investment in American Well Corporation (“American Well”) and its fair value as of the date it completed its initial public offering in September 2020. The investment was reclassified from “investment in associated companies” to “investment in marketable securities,” since Teva no longer has significant influence in American Well. On September 30, 2020, Teva recorded an additional gain of $118 million under financial expenses, net, reflecting the revaluation gain of this security as of September 30, 2020.

Fair value measurement - Additi

Fair value measurement - Additional Information (Detail) $ in Millions9 Months Ended
Sep. 30, 2020USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain under share in profits of associated companies $ 134
Revaluation of Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain under financial expenses $ 118
Measurement input, discount rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input0.06
Maximum [Member] | Measurement input probability of success [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input1
Maximum [Member] | Measurement input, discount rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input0.085
Minimum [Member] | Measurement input probability of success [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input0.80
Minimum [Member] | Measurement input, discount rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input0.075
Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input0.079

Fair Value Measurement - Summ_2

Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Detail) $ in Millions9 Months Ended
Sep. 30, 2020USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value at the beginning of the period $ (448)
Transfer into Level 3- equity securities179
Revaluation of equity securities118
Revaluation of debt securities(3)
Fair value at the end of the period27
Actavis Generics [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Actavis Generics transaction161
Eagle Transaction [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjustments to provisions for contingent consideration(65)
Settlement of contingent consideration $ 85

Fair Value Measurement - Summ_3

Fair Value Measurement - Summary of Financial Instrument Measured on a Basis Other Than Fair Value (Detail) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total $ 24,162 $ 25,004
Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total22,194 22,686
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 $ 1,968 $ 2,318