Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2021 |
Document Fiscal Period Focus | Q1 |
Document Quarterly Report | true |
Entity Registrant Name | TEVA PHARMACEUTICAL INDUSTRIES LTD |
Entity Central Index Key | 0000818686 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 1,102,349,072 |
Title of 12(b) Security | Ordinary Share |
Trading Symbol | TEVA |
Security Exchange Name | NYSE |
Entity File Number | 001-16174 |
Entity Incorporation, State or Country Code | L3 |
Entity Tax Identification Number | 00-0000000 |
Entity Address, Address Line One | 5 Basel Street |
Entity Address, City or Town | Petach Tikva |
Entity Address, Postal Zip Code | 4951033 |
Entity Address, Country | IL |
City Area Code | +972 (3) |
Local Phone Number | 914-8213 |
Entity Filer Category | Large Accelerated Filer |
Smaller Reporting Company | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 1,743 | $ 2,177 | |
Accounts receivables, net of allowance for credit losses of $119 million and $126 million as of March 31, 2021 and December 31, 2020 | 4,572 | 4,581 | |
Inventories | 4,406 | 4,403 | |
Prepaid expenses | 942 | 945 | |
Other current assets | 652 | 710 | |
Assets held for sale | 87 | 189 | |
Total current assets | 12,401 | 13,005 | |
Deferred income taxes | 691 | 695 | |
Other non-current assets | 524 | 538 | |
Property, plant and equipment, net | 6,112 | 6,296 | |
Operating lease right-of-use assets | 529 | 559 | |
Identifiable intangible assets, net | 8,445 | 8,923 | |
Goodwill | [1] | 20,302 | 20,624 |
Total assets | 49,004 | 50,640 | |
Current liabilities: | |||
Short-term debt | 2,697 | 3,188 | |
Sales reserves and allowances | 4,584 | 4,824 | |
Accounts payables | 1,692 | 1,756 | |
Employee-related obligations | 526 | 685 | |
Accrued expenses | 1,851 | 1,780 | |
Other current liabilities | 739 | 933 | |
Total current liabilities | 12,089 | 13,164 | |
Long-term liabilities: | |||
Deferred income taxes | 991 | 964 | |
Other taxes and long-term liabilities | 2,220 | 2,240 | |
Senior notes and loans | 22,288 | 22,731 | |
Operating lease liabilities | 441 | 479 | |
Total long-term liabilities | 25,940 | 26,414 | |
Commitments and contingencies, see note 10 | |||
Total liabilities | 38,029 | 39,579 | |
Teva shareholders' equity: | |||
Ordinary shares of NIS 0.10 par value per share; March 31, 2021 and December 31, 2020: authorized 2,495 million shares; issued 1,208 million shares and 1,202 million shares, respectively | 57 | 57 | |
Additional paid-in capital | 27,474 | 27,443 | |
Accumulated deficit | (10,869) | (10,946) | |
Accumulated other comprehensive loss | (2,534) | (2,399) | |
Treasury shares as of March 31, 2021 and December 31, 2020 — 106 million ordinary shares | (4,128) | (4,128) | |
Stockholders' equity attributable to Teva shareholders | 10,000 | 10,026 | |
Non-controlling interests | 975 | 1,035 | |
Total equity | 10,975 | 11,061 | |
Total liabilities and equity | $ 49,004 | $ 50,640 | |
[1] | Accumulated goodwill impairment as of March 31, 2021 and December 31, 2020 was approximately $25.6 billion. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) shares in Millions, $ in Millions | Mar. 31, 2021USD ($)shares | Mar. 31, 2021SFr / shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020SFr / shares |
Allowance for credit losses | $ | $ 119 | $ 126 | ||
Common stock, par or stated value per share | SFr / shares | SFr 0.10 | SFr 0.10 | ||
Ordinary shares, authorized | 2,495 | 2,495 | ||
Ordinary shares, issued | 1,208 | 1,202 | ||
Treasury shares | 106 | 106 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net revenues | $ 3,982 | $ 4,357 |
Cost of sales | 2,104 | 2,294 |
Gross profit | 1,878 | 2,063 |
Research and development expenses | 254 | 221 |
Selling and marketing expenses | 585 | 613 |
General and administrative expenses | 290 | 304 |
Intangible assets impairments | 79 | 649 |
Other assets impairments, restructuring and other items | 137 | 121 |
Legal settlements and loss contingencies | 104 | (25) |
Other income | (5) | (13) |
Operating (loss) income | 434 | 191 |
Financial expenses, net | 290 | 224 |
Income (loss) before income taxes | 144 | (33) |
Income taxes (benefit) | 62 | (59) |
Share in (profits) losses of associated companies, net | (3) | 1 |
Net income (loss) | 84 | 25 |
Net income (loss) attributable to non-controlling interests | 7 | (44) |
Net income (loss) attributable to Teva | $ 77 | $ 69 |
Earnings (loss) per share attributable to ordinary shareholders: | ||
Basic | $ 0.07 | $ 0.06 |
Diluted | $ 0.07 | $ 0.06 |
Weighted average number of shares (in millions): | ||
Basic | 1,099 | 1,093 |
Diluted | 1,107 | 1,096 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income (loss) | $ 84 | $ 25 |
Other comprehensive income (loss), net of tax: | ||
Currency translation adjustment | (208) | (560) |
Unrealized gain (loss) from derivative financial instruments, net | 7 | 30 |
Total other comprehensive income (loss) | (201) | (530) |
Total comprehensive income (loss) | (117) | (505) |
Comprehensive income (loss) attributable to non-controlling interests | (60) | (34) |
Comprehensive income (loss) attributable to Teva | $ (57) | $ (471) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Ordinary 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, 2019 | $ 15,063 | $ 56 | $ 27,312 | $ (6,956) | $ (2,312) | $ (4,128) | $ 13,972 | $ 1,091 | |
Beginning balance, shares at Dec. 31, 2019 | 1,198 | ||||||||
Net Income (loss) | 25 | 69 | 69 | (44) | |||||
Other Comprehensive income (loss) | (530) | (540) | (540) | 10 | |||||
Issuance of Shares, value | [1] | ||||||||
Issuance of Shares, shares | 3 | ||||||||
Stock-based compensation expense | 30 | 30 | 30 | ||||||
Ending balance at Mar. 31, 2020 | 14,588 | $ 56 | 27,342 | (6,887) | (2,852) | (4,128) | 13,531 | 1,057 | |
Ending balance, shares at Mar. 31, 2020 | 1,201 | ||||||||
Beginning balance at Dec. 31, 2020 | 11,061 | $ 57 | 27,443 | (10,946) | (2,399) | (4,128) | 10,026 | 1,035 | |
Beginning balance, shares at Dec. 31, 2020 | 1,202 | ||||||||
Net Income (loss) | 84 | 77 | 77 | 7 | |||||
Other Comprehensive income (loss) | (201) | (134) | (134) | (67) | |||||
Issuance of Shares, value | [1] | ||||||||
Issuance of Shares, shares | 6 | ||||||||
Stock-based compensation expense | 31 | 31 | 31 | ||||||
Ending balance at Mar. 31, 2021 | $ 10,975 | $ 57 | $ 27,474 | $ (10,869) | $ (2,534) | $ (4,128) | $ 10,000 | $ 975 | |
Ending balance, shares at Mar. 31, 2021 | 1,208 | ||||||||
[1] | Represents an amount less than $0.5 million. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Maximum [Member] | Ordinary Shares [Member] | ||
Exercise of options by employees and vested RSUs | $ 0.5 | $ 0.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Net income (loss) | $ 84 | $ 25 |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||
Depreciation and amortization | 376 | 399 |
Impairment of long-lived assets and assets held for sale | 127 | 724 |
Net change in operating assets and liabilities | (1,076) | (666) |
Deferred income taxes – net and uncertain tax positions | (11) | (233) |
Stock-based compensation | 31 | 30 |
Net loss (gain) from investments and from sale of long lived assets | 74 | 24 |
Other items | (10) | 2 |
Net cash provided by (used in) operating activities | (405) | 305 |
Investing activities: | ||
Beneficial interest collected in exchange for securitized accounts receivables | 476 | 368 |
Purchases of property, plant and equipment | (150) | (128) |
Proceeds from sale of business and long lived assets | 138 | 6 |
Proceeds from sale of investments and other investing activities | 44 | 6 |
Net cash provided by investing activities | 508 | 252 |
Financing activities: | ||
Repayment of senior notes and loans and other long-term liabilities | 0 | (700) |
Redemption of convertible senior notes | (491) | 0 |
Other financing activities | (2) | 0 |
Net cash used in financing activities | (493) | (700) |
Translation adjustment on cash and cash equivalents | (44) | (28) |
Net change in cash and cash equivalents | (434) | (171) |
Balance of cash and cash equivalents at beginning of period | 2,177 | 1,975 |
Balance of cash and cash equivalents at end of period | 1,743 | 1,804 |
Non-cash financing and investing activities: | ||
Beneficial interest obtained in exchange for securitized accounts receivables | $ 488 | $ 375 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2021 | |
Basis of presentation | Note 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 normal and 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 year-end . 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 three months ended March 31, 2021 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 Recently adopted accounting pronouncements In March 2020, the FASB issued ASU 2020-04 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 rates in the annual effective tax rate computation in the interim period that includes the enactment date. Teva adopted the provisions of this update as of January 1, 2021. Based on the Company’s evaluation of the above provisions, the Company notes that items (1) and (4) of this paragraph are not material. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements, not yet adopted In August 2020, the FASB issued ASU 2020-06 (Subtopic 470-20) Hedging—Contracts financial statements. |
Certain transactions
Certain transactions | 3 Months Ended |
Mar. 31, 2021 | |
Certain transactions | NOTE 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 a partnership agreement with biopharmaceutical company Alvotech for the exclusive commercialization in the U.S. of five biosimilar product candidates. The initial pipeline for this partnership contains biosimilar candidates addressing multiple therapeutic areas, including a proposed biosimilar to Humira ® $ million, as well as royalty payments, may be payable by Teva over the next few years. Teva and Alvotech will share profit from the commercialization of these biosimilars. Abbvie recently sued Alvotech for allegedly misappropriating confidential information relating to Humira ® 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 received 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 , and a $ million milestone payment in March that was recognized as revenue in the first quarter of . 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. The partnership agreement was terminated on February 5, 2021. 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, which was recognized as revenue in the third quarter of 2020. Teva may receive additional milestone payments upon achievement of certain development and 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 ® ® of March 31, 2021. 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 , respectively and were launched in the United States in November and March , 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 in the global commercial rights to this product (excluding Japan, Korea and nine other Asian countries), 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. Currently, all non-essential activities and related expenditures for fasinumab have been put on hold. Next steps will be assessed together with Regeneron, with the intention of discussing data with the FDA. Assets and Liabilities Held For Sale: Certain assets of Teva’s business venture in Japan Teva operated its business in Japan, which was part of Teva’s International Market segment, through a business venture with The Takeda Pharmaceutical Company Limited (“Takeda”), in which Teva owned a 51% stake and Takeda owned the remaining 49%. In July 2020 , Teva and Takeda entered into a purchase agreement to sell the majority of the business venture’s generic and operational assets. This transaction was completed on February 1 , 2021 . Until the closing date Teva accounted for the business venture assets and liabilities that were sold, as held for sale and determined that the fair value less cost of sale did not exceed the carrying value, resulting in an impairment charge of $ 247 million in other assets impairments, restructuring and other items recognized in 2020 and in the first quarter of 2021. Assets held for sale as of March 31, 2021, include the sale of certain OTC assets and manufacturing assets that are expected to be sold within the next year. The OTC assets were sold in April 2021. Assets held for sale as of December 31, 2020, included the Teva-Takeda business venture assets sold during the first quarter of 2021 and the sale of certain OTC assets and other manufacturing assets. The table below summarizes all Teva assets included as held for sale as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 (U.S. $ in millions) Inventories — 146 Property, plant and equipment, net and others 99 312 Goodwill 2 27 Adjustments of assets held for sale to fair value (14 ) (296 ) Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 87 $ 189 |
Revenue from contracts with cus
Revenue from contracts with customers | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from contracts with customers | NOTE 3 – Revenue from contracts with customers: Disaggregation of revenue The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 15. Three months ended March 31, 2021 North Europe International Other Total (U.S. $ in millions) Sale of goods 1,668 1,178 440 177 3,463 Licensing arrangements 32 14 3 1 49 Distribution 289 § 19 — 308 Other § 22 28 111 162 $ 1,989 $ 1,214 $ 490 $ 289 $ 3,982 § Represents an amount less than $1 million. Three months ended March 31, 2020 North Europe International Other Total (U.S. $ in millions) Sale of goods 1,625 1,370 482 177 3,655 Licensing arrangements 25 12 3 1 41 Distribution 426 2 6 — 434 Other 6 19 74 129 227 $ 2,082 $ 1,402 $ 565 $ 307 $ 4,357 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 79% of the Company’s total SR&A as of March 31, 2021, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the three months ended March 31, 2021 and 2020 were as follows: Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S. $ in millions) Balance at December 31, 2020 $ 80 $ 2,054 $ 828 $ 1,108 $ 686 $ 148 $ 4,824 $ 4,904 Provisions related to sales made in current year 100 1,126 164 2,043 76 23 3,432 3,532 Provisions related to sales made in prior periods — (55 ) (11 ) 6 (40 ) (17 ) (117 ) (117 ) Credits and payments (102 ) (1,210 ) (188 ) (1,987 ) (101 ) (40 ) (3,526 ) (3,628 ) Translation differences — (17 ) (4 ) (3 ) (3 ) (2 ) (29 ) (29 ) Balance at March 31, 2021 $ 78 1,898 $ 789 $ 1,167 $ 618 $ 112 $ 4,584 $ 4,662 Reserves Rebates Medicaid and 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 102 1,370 233 2,223 139 33 3,998 4,100 Provisions related to sales made in prior periods — (106 ) (29 ) (16 ) (1 ) 4 (148 ) (148 ) Credits and payments (106 ) (1,513 ) (248 ) (2,396 ) (112 ) (35 ) (4,304 ) (4,410 ) Translation differences — (21 ) (2 ) (6 ) (4 ) (10 ) (43 ) (43 ) Balance at March 31, 2020 $ 83 2,625 $ 1,063 $ 1,147 $ 659 $ 168 $ 5,662 $ 5,745 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventories | NOTE 4 – Inventories: Inventories, net of reserves, consisted of the following: March 31, December 31, (U.S. $ in millions) Finished products $ 2,253 $ 2,378 Raw and packaging materials 1,297 1,231 Products in process 663 605 Materials in transit and payments on account 193 189 Total $ 4,406 $ 4,403 |
Identifiable Intangible Assets
Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Identifiable Intangible Assets | NOTE 5 – Identifiable intangible assets: Identifiable intangible assets consisted of the following: Gross carrying amount net of Accumulated Net carrying amount March 31, December 31, March 31, December 31, March 31, December 31, 2021 2020 2021 2020 2021 2020 (U.S. $ in millions) Product rights $ 19,213 $ 19,650 $ 12,019 $ 12,094 $ 7,194 $ 7,556 Trade names 610 621 173 165 437 456 In process research and development 814 911 — — 814 911 Total $ 20,637 $ 21,182 $ 12,192 $ 12,259 $ 8,445 $ 8,923 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 10 years. Amortization of intangible assets was $242 million and $258 million in the three months ended March 31, 2021 and 2020, respectively. IPR&D Teva’s IPR&D are assets that have not yet been approved in major markets. Teva’s IPR&D is comprised mainly of various generic products from the Actavis Generics acquisition of $780 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 March 31, 2021 and 2020, were $79 million and $649 million, respectively. Impairments in the first quarter of 2021 consisted of: (a) IPR&D assets of $51 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 of $28 million related to updated market assumptions regarding price and volume of products acquired from Actavis Generics that are primarily marketed in the United States. Impairments in the first quarter of 2020 consisted of: (a) IPR&D assets of $331 million, primarily due to: (i) $211 million related to AUSTEDO for the treatment of Tourette syndrome in pediatric patients in the United States; and (ii) $106 million related to 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) in the United States; and; (b) Identifiable product rights of $318 million, mainly due to: (i) $165 million in Japan in connection with ongoing regulatory pricing reductions and generic competition; and (ii) $138 million due to updated market assumptions regarding price and volume of certain generic products primarily marketed in the United States. The fair value measurement of the impaired intangible assets in the first three months of 2021 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 ranging from 40% to 90% was used in the fair value calculation to reflect inherent regulatory and commercial risk of IPR&D. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill | NOTE 6 – Goodwill: The changes in the carrying amount of goodwill for the period ended March 31, 2021 were as follows: North America Europe International Other Total (U.S. $ in millions) Balance as of December 31, 2020 (1) $ 6,473 $ 9,102 $ 2,362 $ 2,687 $ 20,624 Changes during the period: Translation differences 4 (312 ) (14 ) (322 ) Balance as of March 31, 2021 (1) $ 6,477 $ 8,790 $ 2,348 $ 2,687 $ 20,302 (1) Accumulated goodwill impairment as of March 31, 2021 and December 31, 2020 was approximately $25.6 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 recognize an impairment of goodwill allocated to these reporting units in the future. During the first quarter of 2021, management assessed developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount. 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, 2021 and, therefore, no quantitative assessment was performed. Following the goodwill impairment charge recorded in the third quarter of 2020 in the North America reporting unit, the carrying value of the North America reporting unit equaled its fair value as of September 30, 2020. Therefore, if business conditions or expectations were to change materially, it may be necessary to record further impairment charges to the North America reporting unit in the future. The other reporting units all have fair value in excess of % over their book values as of March 31, 2021. |
Debt obligations
Debt obligations | 3 Months Ended |
Mar. 31, 2021 | |
Debt obligations | NOTE 7 – Debt obligations: a. Short-term debt: March 31, 2021 December 31, 2020 Weighted average interest Maturity (U.S. $ in millions) Convertible senior debentures 0.25 % 2026 23 514 Current maturities of long-term liabilities 2,674 2,674 Total short-term debt $ 2,697 $ 3,188 Convertible senior debentures The principal amount of Teva’s 0.25% convertible senior debentures due 2026, was $23 million as of March 31, 2021 and $514 million as of December 31, 2020. These convertible senior debentures include a “net share settlement” feature according to which the principal amount will be paid in cash and in case of conversion, only the residual conversion value above the principal amount will be paid in Teva shares. Due to the “net share settlement” feature, exercisable at any time, these convertible senior debentures are classified in the Balance Sheet under short-term debt. Holders of the convertible senior debentures exercised their optional repurchase right and redeemed $491 million of the convertible senior debentures on February 1, 2021, which was the date to exercise this right. b. Long-term debt: Weighted average interest Maturity March 31, December 31, (U.S. $ in millions) Senior notes EUR 1,500 million 1.13 % 2024 1,752 1,839 Senior notes EUR 1,300 million 1.25 % 2023 1,520 1,595 Senior notes EUR 1,000 million 6.00 % 2025 1,172 1,230 Senior notes EUR 900 million 4.50 % 2025 1,054 1,107 Senior notes EUR 750 million 1.63 % 2028 873 916 Senior notes EUR 700 million 3.25 % 2022 820 861 Senior notes EUR 700 million 1.88 % 2027 818 860 Senior notes USD 3,500 million 3.15 % 2026 3,495 3,495 Senior notes USD 1,475 million 2.20 % 2021 1,474 1,472 Senior notes USD 3,000 million 2.80 % 2023 2,997 2,996 Senior notes USD 2,000 million 4.10 % 2046 1,986 1,986 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 851 853 Senior notes USD 789 million 6.15 % 2036 783 783 Senior notes USD 613 million 3.65 % 2021 615 616 Senior notes USD 588 million 3.65 % 2021 587 586 Senior notes CHF 350 million 0.50 % 2022 372 397 Senior notes CHF 350 million 1.00 % 2025 372 398 Total senior notes 25,041 25,490 Other long-term debt 0.90 % 2026 1 1 Less current maturities (2,674 ) (2,674 ) Less debt issuance costs (80 ) (86 ) Total senior notes and loans $ 22,288 $ 22,731 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 March 31, 2021 is effectively denominated in the following currencies: 61% in U.S. dollar, 36% 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. Tranche A had a maturity date of April 8, 2022, of which an amount of $1.065 billion was extended twice, initially to April 8, 2023 and then to April 8, 2024. Tranche B has a maturity date of April 8, 2024. Loans and letters of credit will be available from time to time under each tranche for Teva’s general corporate purposes. 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 was 5.50x through March 31, 2021, gradually declines to 5.00x in the third and fourth quarters of 2021, 4.50x in the first quarter of 2022, and continues to gradually decline over the remaining term of the RCF to 3.50x in the first quarter of 2023. The RCF can be used for general corporate purposes, including repaying existing debt. As of March 31, 2021, and as of the date of this Quarterly Report on Form 10-Q, 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 activities | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities | NOTE 8 – Derivative instruments and hedging activities: a. Foreign exchange risk management: In the first three months of 2021, 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 subsidiaries within Teva. The currency hedged items are usually denominated in the following main currencies: the euro, the Swiss franc, the Japanese yen, the British pound, the Russian ruble, 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. The Company may choose to hedge against possible fluctuations in foreign subsidiaries net assets (“net investment hedge”) and entered into cross currency swaps and forward contracts in the past 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 outstanding: The following table summarizes the classification and fair values of derivative instruments: Fair value Not designated as hedging instruments March 31, 2021 December 31, 2020 Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ 63 $ 24 Liability derivatives: Other current liabilities: Option and forward contracts (23 ) (79 ) The table below provides information regarding the location and amount of pre-tax Financial expenses, net Other comprehensive Three months ended, Three months ended, March 31, 2021 March 31, March 31, 2021 March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 290 $ 224 $ (201 ) $ (530 ) Cross-currency swaps—net investment hedge (1) — (2 ) — (21 ) The table below provides information regarding the location and amount of pre-tax Financial expenses, net Net revenues Three months ended, Three months ended, March 31, 2021 March 31, March 31, 2021 March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 290 $ 224 $ (3,982 ) $ (4,357 ) Option and forward contracts (2) (70 ) 24 — — Option and forward contracts economic hedge (3) — — (28 ) (60 ) (1) 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 (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. (3) 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 Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar and some other currencies to protect its projected operating results for 2021. 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. In 2020, Teva recognized a loss of $27 million in relation with the 2021 hedging program Teva entered into in the second half of 2020. In the first three months of 2021, the positive impact from these derivatives recognized under revenues was $28 million. 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. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. d. 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 were recognized under financial expenses, net for each of the three months ended March 31, 2021 and 2020. 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, no gains were recognized for the three months ended March 31, 2021, compared to gains of $1 million recognized under financial expenses, net for the three months ended March 31, 2020. |
Legal Settlements and Loss Cont
Legal Settlements and Loss Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Legal Settlements and Loss Contingencies | NOTE 9 – Legal settlements and loss contingencies: Legal settlements and loss contingencies for the first quarter of 2021 were As of March 31, 2021 and December 31, 2020, Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses and other taxes and long-term liabilities was $1,730 million and 1,625 million, respectively. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and contingencies | NOTE 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 where the exposures were fully resolved in the prior year, or determined to no longer meet the materiality threshold for disclosure, or were substantially resolved. In the first quarter of 2021, Teva has removed the bortezomib intellectual property litigation as it was fully resolved during 2020. In addition, Teva has removed PROVIGIL ® 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 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®) i n September 2007. A jury trial was held and the jury returned a verdict in GSK’s favor finding Teva liable for induced infringement, including willful infringement, and assessing damages of $ 235.5 million, not including pre- or post-judgment interest or a multiplier for willfulness. Thereafter, the judge overturned the jury verdict, finding no induced infringement by Teva and that Teva did not owe any damages. On October 2, 2020, in a two-to-one decision, the Court of Appeals for the Federal Circuit, overturned the judge’s ruling and reinstated the jury verdict. Teva’s request for rehearing was granted, and the October 2020 decision was vacated. On February 23, 2021, the same three-judge panel of the Federal Circuit heard additional oral argument on the issue of whether there is enough evidence to support the jury’s verdict of induced infringement during the period from January 8, 2008 through April 30, 2011 (the “skinny label” period). If further appeals are decided against Teva, the case would be remanded to the district court for it to consider Teva’s other legal and equitable defenses that have not yet been considered by the district court. In the first quarter of 2021, Teva recognized a provision based on its offer to settle such matter. 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 and to subsequent recalls on other products. 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 pending in the United States include valsartan, losartan, metformin and ranitidine. There are currently two Multi-District Litigations (“MDL”) pending in the United States District Courts against Teva and numerous other manufacturers. One MDL is pending in the United States District Court for the District of New Jersey for valsartan, losartan and irbesartan. Teva is not named in complaints with respect to irbesartan. The second MDL is pending in the United States District Court for the Southern District of Florida for ranitidine. The lawsuits against Teva in the MDLs consist of individual personal injury and/or product liability claims and economic damages claims brought by consumers and end payors on behalf of purported classes of other consumers and end payors as well as medical monitoring class claims. Defendants’ motions to dismiss in the valsartan, losartan and irbesartan MDL were denied in part and granted in part, allowing plaintiffs to file amended complaints. On December 31, 2020, the court in the ranitidine MDL granted the generic defendants’ motion to dismiss on the grounds of preemption and deficient pleading, allowing plaintiffs to re-plead certain claims. Certain plaintiffs appealed the decision. Plaintiffs in the ranitidine MDL filed amended complaints, and on March 24, 2021, defendants moved to dismiss those amended complaints on largely the same grounds as the first round of motions to dismiss. In addition to these MDLs, Teva has also been named in a consolidated proceeding pending in the United States District Court for the District of New Jersey brought by individuals and end payors seeking economic damages on behalf of purported classes of consumers and end payors who purchased Teva’s, as well as other generic manufacturers’ metformin products. A motion to dismiss in that consolidated action is pending. Similar lawsuits are pending in Canada and Germany. 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. In May 2015, Cephalon Inc., a Teva subsidiary (“Cephalon”), entered into a consent decree with the FTC (the “Modafinil Consent Decree”) under which the FTC dismissed antitrust claims against Cephalon related to certain finished modafinil products (marketed as PROVIGIL ® In November 2020, the European Commission issued a final decision in its proceedings against both Cephalon and Teva, finding that the 2005 settlement agreement between the parties had the object and effect of hindering the entry of generic modafinil, and imposed fines totaling € million on Teva and Cephalon. Teva and Cephalon filed an appeal against the decision in February 2021. A provision for this matter was included in the financial statements. Teva and its affiliates have been named as defendants in lawsuits alleging that multiple patent litigation settlement agreements relating to AndroGel ® violate the antitrust laws. The first of these lawsuits (the “Georgia AndroGel Litigation”) was filed in January 2009 in California federal court, and later transferred to Georgia federal court, with the FTC and the State of California, and later private plaintiffs challenging a September 2006 patent litigation settlement between Watson Pharmaceuticals, Inc. (“Watson”), from which Teva later acquired certain assets and liabilities, and Solvay Pharmaceuticals, Inc. (“Solvay”). The second lawsuit (the “Philadelphia AndroGel Litigation”) was filed by the FTC in September 2014 in federal court in Philadelphia, challenging Teva’s December 2011 patent litigation settlement with AbbVie. The FTC stipulated to dismiss Teva from both litigations, in exchange for Teva’s agreement to amend the Modafinil Consent Decree, as described above. On July 16, 2018, the direct purchaser plaintiffs’ motion for class certification in the Georgia AndroGel Litigation was denied and Teva later settled with most of the retailer plaintiffs in the Georgia AndroGel Litigation as well as the three direct purchasers that had sought class certification and on January 7, 2021, Teva settled all claims with the remaining retailer plaintiff in the Georgia AndroGel Litigation, thus leaving no remaining claims in the Georgia AndroGel Litigation. In August 2019, certain other direct-purchaser plaintiffs (who would have been members of the direct purchaser class in the Georgia AndroGel Litigation, had it been certified) filed their own claims in the federal court in Philadelphia (where the Philadelphia AndroGel Litigation has been pending), challenging (in one complaint) both the September 2006 settlement between Watson and Solvay, and the December 2011 settlement between Teva and AbbVie. Those claims remain pending. Annual sales of AndroGel ® 1% were approximately $ 350 million at the time of the earlier Watson/Solvay settlement and approximately $ 140 million at the time Actavis launched its generic version of AndroGel ® 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 ® ® ® 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 Lamicta l ® ) e ntered into in February 2005. The plaintiffs claim that the settlement agreement unlawfully delayed generic entry and seek unspecified damages. In December 2012, the court dismissed the case, but in June 2015, the U.S. Court of Appeals for the Third Circuit reversed and remanded for further proceedings. In December 2018, the district court granted the direct-purchaser plaintiffs’ motion for class certification, but on April 22, 2020, the Third Circuit reversed that ruling and remanded for further class certification proceedings. On April 9, 2021, the district court denied the direct purchaser plaintiffs’ renewed motion for class certification. Annual sales of Lamictal ® were approximately $ 950 million at the time of the settlement and approximately $ 2.3 billion at the time Teva launched its generic version of Lamictal ® in July 2008. In April 2013, purported classes of direct purchasers of, and end payers for, Niaspan ® litigation over the product. A multidistrict litigation has been established in the U.S. District Court for the Eastern District of Pennsylvania. Throughout 2015 and in January 2016, several individual direct-purchaser opt-out ® $ million at the time of the settlement and approximately $ billion at the time Teva launched its generic version of Niaspan ® in September 2013 . 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’ ® ® ® respectively. In January 2019, generic manufacturer Cipla Limited filed a lawsuit against Amgen, which was later amended to include Teva as a defendant, in Delaware federal court, alleging, among other things, that a January 2, 2019 settlement agreement between Amgen and Teva, resolving patent litigation over cinacalcet (generic Sensipar ® end-payer ® $1.4 billion at the time Teva launched its generic version of Sensipar ® 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 was issued on October 28, 2020. On January 9, 2017, Teva completed the sale of Actavis UK to Accord Healthcare Limited, in connection with which Teva will indemnify Accord Healthcare for potential fines imposed by the CMA and/or damages awarded by a court against Actavis UK in relation to the December 16, 2016 and March 3, 2017 statements of objections, and resulting from conduct prior to the closing date of the sale. In addition, Teva agreed to indemnify Allergan against losses arising from this matter in the event of any such fines or damages. A liability for this matter has been recorded in the financial statements. In March 2021, following the 2019 European Commission’s inspection of Teva and subsequent request for information, the European Commission opened a formal antitrust investigation to assess whether Teva may have abused a dominant position by delaying the market entry and uptake of medicines that compete with COPAXONE ® approximately $380 million. Between September 1, 2020 and December 20, 2020, separate plaintiffs purporting to represent putative classes of direct and indirect purchasers and opt-out ® ® ® approximately $700 million at the time of Watson’s 2013 settlement with Forest. 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-Cream, 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 November 1, 2019 amended complaint, referenced above, along with three complaints filed by private plaintiffs, to proceed first in the litigation as bellwether complaints. Teva moved the court to reconsider that ruling, and the motion was granted on February 9, 2021. As a result, the attorneys’ general November 1, 2019 amended complaint is not expected to be among the bellwether complaints in the Pennsylvania MDL. Beginning on March 2, 2016, and continuing through December 2020, 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 In March 2017, Teva received a subpoena from the U.S. Attorney’s office in Boston, Massachusetts requesting documents related to Teva’s donations to patient assistance programs. 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 on the grounds that it fails to state a claim, and that motion remains pending. Additionally, on January 8, 2021, Humana, Inc. filed an action against Teva in the United States District Court for the Middle District of Florida based on the allegations raised in the August 2020 complaint filed by the U.S. Attorney’s Office in Boston. On April 2, 2021 Teva filed a motion to dismiss the claims on the grounds that the claims are time-barred and/or insufficiently pled, and that action remains pending. 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 included 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 ® ® non-economic On April 19, 2021, a bench trial in California (The People of the State of California, acting by and through Santa Clara County Counsel James R. Williams, et. al. v. Purdue Pharma L.P., et. al.) commenced with Teva and other defendants focused on the marketing of branded opioids. Absent resolutions, additional trials are expected to proceed in several states in 2021. 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 ® 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. This nationwide settlement was 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 nationwide settlement, Teva would provide buprenorphine naloxone (sublingual tablets) with an estimated value of up to approximately period. During the passage of time since then, the Company has continued to negotiate the terms and conditions of a nationwide settlement. There are many complex financial and legal issues still outstanding, including indemnification claims by Allergan against the Company, arising from the acquisition of the Actavis Generics business. Since negotiations are ongoing, the Company cannot predict if a settlement will be finalized. The Company considered a range of potential settlement outcomes. The current provision remains a reasonable estimate of the ultimate costs if a settlement is finalized based on the Company’s most recent offer to settle. However, if not finalized for the entirety of the cases, a reasonable upper end of a range of loss cannot be determined. An adverse resolution of any of these lawsuits or investigations may involve large monetary penalties, damages, and/or other forms of monetary and 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. Following a Statement of Charges and Notice of Hearing filed by the NYDFS, a hearing is currently scheduled to take place in June 2021. Currently, Teva cannot predict how a nationwide settlement (if finalized) will affect these investigations and administrative actions. In addition, a number of state attorneys general, including a coordinated multistate effort, have initiated investigations into sales and marketing practices of Teva and its affiliates with respect to opioids. Other states are conducting their own investigations outside of the multistate group. Teva is cooperating with these ongoing investigations and cannot predict their outcome at this time. In addition, several jurisdictions and consumers in Canada have initiated litigation regarding opioids alleging similar claims as those in the United States. The cases in Canada may be consolidated and are in their early stages. 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 conn |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income taxes | NOTE 11 – Income taxes: In the first quarter of 2021, Teva recognized a tax expense of pre-tax million, on pre-tax Teva’s tax rate for the first quarter of 2021 was mainly affected by legal settlements, impairments and amortization in jurisdictions in which tax rates are lower than Teva’s average tax rate on its ongoing business operations. The statutory Israeli corporate tax rate is 23% in 2021. 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 non-recurring 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 May 2021. A final and binding decision against Teva in this case may lead to an asset write off of $140 million. The Israeli tax authorities issued tax assessment decrees for 2008-2012 and 2013-2016, challenging the Company’s positions on several issues. Teva has protested the 2008-2012 and 2013-2016 decrees before the Central District Court in Israel. The Company believes it has adequately provided for these items, however, adverse results could be material. |
Other assets impairments, restr
Other assets impairments, restructuring and other items | 3 Months Ended |
Mar. 31, 2021 | |
Other assets impairments, restructuring and other items | NOTE 12 – Other assets impairments, restructuring and other items: Three months ended March 31, 2021 2020 (U.S. $ in millions) Impairments of long-lived tangible assets (1) $ 48 $ 75 Contingent consideration 3 6 Restructuring 81 39 Other 4 — Total $ 137 $ 121 (1) Including impairments related to exit and disposal activities Impairments Impairments of tangible assets for the three months ended March 31, 2021 and 2020 were $48 million and $75 million, respectively. The impairment for the three months ended March 31, 2021 was mainly related to certain assets in Europe. Teva may record additional impairments in the future, to the extent it changes its plans on any given asset and/or the assumptions underlying such plans, as a result of its network consolidation activities. Contingent consideration In the three months ended March 31, 2021, Teva recorded an expense of $3 million for contingent consideration, compared to an expense of $6 million in the three months ended March 31, 2020. Restructuring In the three months ended March 31, 2021, Teva recorded $81 million of restructuring expenses, compared to $39 million in the three months ended March 31, 2020. The expenses for the three months ended March 31, 2021 were primarily related to network consolidation activities and residual expenses of the restructuring plan announced in 2017. 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 March 31, 2021 2020 (U.S. $ in millions) Restructuring Employee termination $ 79 $ 33 Other 2 6 Total $ 81 $ 39 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, 2021 $ (115 ) $ (7 ) $ (122 ) Provision (79 ) (2 ) (81 ) Utilization and other* 33 2 35 Balance as of March 31, 2021 $ (161 ) $ (7 ) $ (168 ) Employee termination Other Total (U.S. $ in millions ) Balance as of January 1, 2020 $ (208 ) $ (7 ) $ (215 ) Provision (33 ) (6 ) (39 ) Utilization and other* 69 6 75 Balance as of March 31, 2020 $ (172 ) $ (7 ) $ (179 ) * 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 million in revenues from this site during the remainder of 2021, assuming remediation or enforcement does not cause any unscheduled slowdown or stoppage at the facility, however, delays in FDA approvals of future products from the site may occur . 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 Teva’s 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 second half of 2020, Teva has completed partial remediation of this issue and has restarted limited supply from its Goa facilities. The site experienced some additional delays in first quarter of 2021 due to labor related issues. The impact to Teva’s financial results for the three months ended March 31, 2021 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 Share | 3 Months Ended |
Mar. 31, 2021 | |
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 earnings per share for the three months ended March 31, 2021 and March 31, 2020, basic earnings per share were adjusted to take into account the potential dilution that could occur upon the exercise of options and non-vested Basic and diluted earnings per share were $0.07 for the three months ended March 31, 2021, compared to basic and diluted earnings per share of $0.06 for the three months ended March 31, 2020. |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 3 Months Ended |
Mar. 31, 2021 | |
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 Derivative Actuarial gains Total (U.S. $ in millions) Balance as of December 31, 2020, net of taxes $ (1,919 ) $ (363 ) $ (117 ) $ (2,399 ) Other comprehensive income (loss) before reclassifications (174 ) — — (174 ) Amounts reclassified to the statements of income — 9 9 Net other comprehensive income (loss) before tax (174 ) 9 — (165 ) Corresponding income tax 33 (2 ) — 31 Net other comprehensive income (loss) after tax* (141 ) 7 — (134 ) Balance as of March 31, 2021, net of taxes $ (2,060 ) $ (356 ) $ (117 ) $ (2,534 ) * Amounts do not include a $67 million loss from foreign currency non-controlling . Net Unrealized Gains (Losses) Benefit Plans Foreign Derivative Actuarial gains Total (U.S. $ in millions) Balance as of December 31, 2019, net of taxes $ (1,794 ) $ (420 ) $ (98 ) $ (2,312 ) Other comprehensive income (loss) before reclassifications (573 ) 22 — (551 ) Amounts reclassified to the statements of income — 8 — 8 Net other comprehensive income (loss) before tax (573 ) 30 — (543 ) Corresponding income tax 3 — — 3 Net other comprehensive income (loss) after tax* (570 ) 30 — (540 ) Balance as of March 31, 2020, net of taxes $ (2,364 ) $ (390 ) $ (98 ) $ (2,852 ) * Amounts do not include a $10 million loss from foreign currency translation adjustments attributable to non-controlling . |
Segments
Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segments | NOTE 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 March 31, 2021 North America Europe International Markets (U.S. $ in millions) Revenues $ 1,989 $ 1,214 $ 490 Gross profit 1,074 688 260 R&D expenses 160 66 18 S&M expenses 229 214 96 G&A expenses 111 70 26 Other income (3 ) § (2 ) Segment profit $ 577 $ 338 $ 122 § Represents an amount less than $1 million. Three months ended March 31, 2020 North America Europe International Markets (U.S. $ in millions) Revenues $ 2,082 $ 1,402 $ 565 Gross profit 1,062 823 305 R&D expenses 146 55 15 S&M expenses 251 202 106 G&A expenses 118 66 34 Other income (2 ) (1 ) (6 ) Segment profit $ 550 $ 502 $ 156 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 months ended March 31, 2021 and 2020: Three months ended March 31, 2021 2020 (U.S. $ in millions) North America profit $ 577 $ 550 Europe profit 338 502 International Markets profit 122 156 Total reportable segments profit 1,036 1,208 Profit of other activities 41 36 Total segments profit 1,077 1,244 Amounts not allocated to segments: Amortization 242 258 Other assets impairments, restructuring and other items 137 121 Intangible asset impairments 79 649 Legal settlements and loss contingencies 104 (25 ) Other unallocated amounts 82 49 Consolidated operating income (loss) 434 191 Financial expenses, net 290 224 Consolidated income (loss) before income taxes $ 144 $ (33 ) b. Segment revenues by major products and activities: The following tables present revenues by major products and activities for the three months ended March 31, 2021 and 2020: North America Three months ended March 31, 2021 2020 (U.S. $ in millions) Generic products $ 1,053 $ 952 AJOVY 31 29 AUSTEDO 146 122 BENDEKA/TREANDA 91 105 COPAXONE 164 198 ProAir* 54 59 Anda 289 426 Other 161 191 Total $ 1,989 $ 2,082 * Does not include revenues from ProAir authorized generic, which are included under generic products. Europe Three months ended March 31, 2021 2020 (U.S. $ in millions) Generic products $ 865 $ 1,032 AJOVY 16 4 COPAXONE 100 109 Respiratory products 93 106 Other 140 151 Total $ 1,214 $ 1,402 International markets Three months ended March 31, 2021 2020 (U.S. $ in millions) Generic products $ 392 $ 449 COPAXONE 12 12 Other 86 104 Total $ 490 $ 565 |
Fair value measurement
Fair value measurement | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurement | NOTE 16 – Fair value measurement: Financial items carried at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 are classified in the tables below in one of the three categories of fair value level s March 31, 2021 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 120 $ — $ — $ 120 Cash, deposits and other 1,623 — — 1,623 Investment in securities: Equity securities* 182 — — 182 Other, mainly debt securities 5 — 1 6 Derivatives: Asset derivatives—options and forward contracts — 63 — 63 Liability derivatives—options and forward contracts — (23 ) — (23 ) Contingent consideration** — — (246 ) (246 ) Total $ 1,930 $ 40 $ (245 ) $ 1,725 December 31, 2020 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 367 $ — $ — $ 367 Cash, deposits and other 1,810 — — 1,810 Investment in securities: Equity securities* 25 259 — 284 Other, mainly debt securities 5 — 10 15 Derivatives: Asset derivatives—options and forward contracts — 24 — 24 Liability derivatives—options and forward contracts — (79 ) — (79 ) Contingent consideration** — — (268 ) (268 ) Total $ 2,207 $ 204 $ (258 ) $ 2,153 * As of March 31, 2021, Teva’s shares in American Well Corporation (“American Well”) moved from a Level 2 measurement to Level 1 measurement within the fair value hierarchy, since they are no longer subject to a sale restriction. ** 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 80% to 100% 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 7.5% to 8.0%. The weighted average discount rate, calculated based on the relative fair value of Teva’s contingent consideration liabilities, was 7.8%. The contingent consideration is evaluated quarterly, or more frequently, if circumstances dictate. Changes in the fair value of contingent consideration are recorded in consolidated statements of income. 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 following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs: Three months ended Three months ended (U.S. $ in millions) Fair value at the beginning of the period $ (258 ) (448 ) Redemption of debt securities (9 ) Adjustments to provisions for contingent consideration: Actavis Generics transaction (3 ) (5 ) Eagle transaction — (1 ) Settlement of contingent consideration: Eagle transaction 25 31 Fair value at the end of the period $ (245 ) $ (423 ) 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 (see note 7) and are presented in the table below in terms of fair value (level 1 inputs): Estimated fair value* March 31, December 31, 2021 2020 (U.S. $ in millions) Senior notes included under senior notes and loans $ 22,316 $ 22,684 Senior notes and convertible senior debentures included under short-term debt 2,711 3,207 Total $ 25,027 $ 25,891 * The fair value was estimated based on quoted market prices. |
Basis of presentation (Policies
Basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Recently adopted and issued accounting pronouncements | Recently adopted accounting pronouncements In March 2020, the FASB issued ASU 2020-04 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 |
Recently issued accounting pronouncements, not yet adopted | Recently issued accounting pronouncements, not yet adopted In August 2020, the FASB issued ASU 2020-06 (Subtopic 470-20) Hedging—Contracts financial statements. |
Certain transactions (Tables)
Certain transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Major Classes of Assets and Liabilities Included as Held for Sale | The table below summarizes all Teva assets included as held for sale as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 (U.S. $ in millions) Inventories — 146 Property, plant and equipment, net and others 99 312 Goodwill 2 27 Adjustments of assets held for sale to fair value (14 ) (296 ) Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 87 $ 189 |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of disaggregates revenues by major revenue streams | The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 15. Three months ended March 31, 2021 North Europe International Other Total (U.S. $ in millions) Sale of goods 1,668 1,178 440 177 3,463 Licensing arrangements 32 14 3 1 49 Distribution 289 § 19 — 308 Other § 22 28 111 162 $ 1,989 $ 1,214 $ 490 $ 289 $ 3,982 § Represents an amount less than $1 million. Three months ended March 31, 2020 North Europe International Other Total (U.S. $ in millions) Sale of goods 1,625 1,370 482 177 3,655 Licensing arrangements 25 12 3 1 41 Distribution 426 2 6 — 434 Other 6 19 74 129 227 $ 2,082 $ 1,402 $ 565 $ 307 $ 4,357 |
Summary of Sales Reserves and Allowances | The changes in SR&A for third-party sales for the three months ended March 31, 2021 and 2020 were as follows: Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S. $ in millions) Balance at December 31, 2020 $ 80 $ 2,054 $ 828 $ 1,108 $ 686 $ 148 $ 4,824 $ 4,904 Provisions related to sales made in current year 100 1,126 164 2,043 76 23 3,432 3,532 Provisions related to sales made in prior periods — (55 ) (11 ) 6 (40 ) (17 ) (117 ) (117 ) Credits and payments (102 ) (1,210 ) (188 ) (1,987 ) (101 ) (40 ) (3,526 ) (3,628 ) Translation differences — (17 ) (4 ) (3 ) (3 ) (2 ) (29 ) (29 ) Balance at March 31, 2021 $ 78 1,898 $ 789 $ 1,167 $ 618 $ 112 $ 4,584 $ 4,662 Reserves Rebates Medicaid and 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 102 1,370 233 2,223 139 33 3,998 4,100 Provisions related to sales made in prior periods — (106 ) (29 ) (16 ) (1 ) 4 (148 ) (148 ) Credits and payments (106 ) (1,513 ) (248 ) (2,396 ) (112 ) (35 ) (4,304 ) (4,410 ) Translation differences — (21 ) (2 ) (6 ) (4 ) (10 ) (43 ) (43 ) Balance at March 31, 2020 $ 83 2,625 $ 1,063 $ 1,147 $ 659 $ 168 $ 5,662 $ 5,745 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Inventories | Inventories, net of reserves, consisted of the following: March 31, December 31, (U.S. $ in millions) Finished products $ 2,253 $ 2,378 Raw and packaging materials 1,297 1,231 Products in process 663 605 Materials in transit and payments on account 193 189 Total $ 4,406 $ 4,403 |
Identifiable Intangible Assets
Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Identifiable Intangible Assets | Identifiable intangible assets consisted of the following: Gross carrying amount net of Accumulated Net carrying amount March 31, December 31, March 31, December 31, March 31, December 31, 2021 2020 2021 2020 2021 2020 (U.S. $ in millions) Product rights $ 19,213 $ 19,650 $ 12,019 $ 12,094 $ 7,194 $ 7,556 Trade names 610 621 173 165 437 456 In process research and development 814 911 — — 814 911 Total $ 20,637 $ 21,182 $ 12,192 $ 12,259 $ 8,445 $ 8,923 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Changes in the Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill for the period ended March 31, 2021 were as follows: North America Europe International Other Total (U.S. $ in millions) Balance as of December 31, 2020 (1) $ 6,473 $ 9,102 $ 2,362 $ 2,687 $ 20,624 Changes during the period: Translation differences 4 (312 ) (14 ) (322 ) Balance as of March 31, 2021 (1) $ 6,477 $ 8,790 $ 2,348 $ 2,687 $ 20,302 (1) Accumulated goodwill impairment as of March 31, 2021 and December 31, 2020 was approximately $25.6 billion. |
Debt obligations (Tables)
Debt obligations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of Short-term Debt | a. Short-term debt: March 31, 2021 December 31, 2020 Weighted average interest Maturity (U.S. $ in millions) Convertible senior debentures 0.25 % 2026 23 514 Current maturities of long-term liabilities 2,674 2,674 Total short-term debt $ 2,697 $ 3,188 |
Schedule of Senior Notes and Loans | b. Long-term debt: Weighted average interest Maturity March 31, December 31, (U.S. $ in millions) Senior notes EUR 1,500 million 1.13 % 2024 1,752 1,839 Senior notes EUR 1,300 million 1.25 % 2023 1,520 1,595 Senior notes EUR 1,000 million 6.00 % 2025 1,172 1,230 Senior notes EUR 900 million 4.50 % 2025 1,054 1,107 Senior notes EUR 750 million 1.63 % 2028 873 916 Senior notes EUR 700 million 3.25 % 2022 820 861 Senior notes EUR 700 million 1.88 % 2027 818 860 Senior notes USD 3,500 million 3.15 % 2026 3,495 3,495 Senior notes USD 1,475 million 2.20 % 2021 1,474 1,472 Senior notes USD 3,000 million 2.80 % 2023 2,997 2,996 Senior notes USD 2,000 million 4.10 % 2046 1,986 1,986 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 851 853 Senior notes USD 789 million 6.15 % 2036 783 783 Senior notes USD 613 million 3.65 % 2021 615 616 Senior notes USD 588 million 3.65 % 2021 587 586 Senior notes CHF 350 million 0.50 % 2022 372 397 Senior notes CHF 350 million 1.00 % 2025 372 398 Total senior notes 25,041 25,490 Other long-term debt 0.90 % 2026 1 1 Less current maturities (2,674 ) (2,674 ) Less debt issuance costs (80 ) (86 ) Total senior notes and loans $ 22,288 $ 22,731 |
Derivative instruments and he_2
Derivative instruments and hedging activities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Classification and Fair Values of Derivative Instruments | The following table summarizes the classification and fair values of derivative instruments: Fair value Not designated as hedging instruments March 31, 2021 December 31, 2020 Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ 63 $ 24 Liability derivatives: Other current liabilities: Option and forward contracts (23 ) (79 ) |
Derivatives Not Designated as Hedging Instruments | The table below provides information regarding the location and amount of pre-tax Financial expenses, net Other comprehensive Three months ended, Three months ended, March 31, 2021 March 31, March 31, 2021 March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 290 $ 224 $ (201 ) $ (530 ) Cross-currency swaps—net investment hedge (1) — (2 ) — (21 ) |
Information Regarding The Location And Amount Of Pretax (Gains) Losses Of Derivatives Designated In Fair Value Or Cash Flow Hedging Relationships | The table below provides information regarding the location and amount of pre-tax Financial expenses, net Net revenues Three months ended, Three months ended, March 31, 2021 March 31, March 31, 2021 March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 290 $ 224 $ (3,982 ) $ (4,357 ) Option and forward contracts (2) (70 ) 24 — — Option and forward contracts economic hedge (3) — — (28 ) (60 ) (1) 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 (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. (3) 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 Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar and some other currencies to protect its projected operating results for 2021. 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. In 2020, Teva recognized a loss of $27 million in relation with the 2021 hedging program Teva entered into in the second half of 2020. In the first three months of 2021, the positive impact from these derivatives recognized under revenues was $28 million. 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. 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) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of Other Assets Impairments, Restructuring and Other Items | Three months ended March 31, 2021 2020 (U.S. $ in millions) Impairments of long-lived tangible assets (1) $ 48 $ 75 Contingent consideration 3 6 Restructuring 81 39 Other 4 — Total $ 137 $ 121 (1) Including impairments related to exit and disposal activities |
Summary of Restructuring Plan Including Costs Related to Exit and Disposal | The following tables provide the components of costs associated with Teva’s restructuring plan, including other costs associated with Teva’s restructuring plan and recorded under different items: Three months ended March 31, 2021 2020 (U.S. $ in millions) Restructuring Employee termination $ 79 $ 33 Other 2 6 Total $ 81 $ 39 |
Summary of Restructuring Accruals | 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, 2021 $ (115 ) $ (7 ) $ (122 ) Provision (79 ) (2 ) (81 ) Utilization and other* 33 2 35 Balance as of March 31, 2021 $ (161 ) $ (7 ) $ (168 ) Employee termination Other Total (U.S. $ in millions ) Balance as of January 1, 2020 $ (208 ) $ (7 ) $ (215 ) Provision (33 ) (6 ) (39 ) Utilization and other* 69 6 75 Balance as of March 31, 2020 $ (172 ) $ (7 ) $ (179 ) * Includes adjustments for foreign currency translation. |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 Derivative Actuarial gains Total (U.S. $ in millions) Balance as of December 31, 2020, net of taxes $ (1,919 ) $ (363 ) $ (117 ) $ (2,399 ) Other comprehensive income (loss) before reclassifications (174 ) — — (174 ) Amounts reclassified to the statements of income — 9 9 Net other comprehensive income (loss) before tax (174 ) 9 — (165 ) Corresponding income tax 33 (2 ) — 31 Net other comprehensive income (loss) after tax* (141 ) 7 — (134 ) Balance as of March 31, 2021, net of taxes $ (2,060 ) $ (356 ) $ (117 ) $ (2,534 ) * Amounts do not include a $67 million loss from foreign currency non-controlling . Net Unrealized Gains (Losses) Benefit Plans Foreign Derivative Actuarial gains Total (U.S. $ in millions) Balance as of December 31, 2019, net of taxes $ (1,794 ) $ (420 ) $ (98 ) $ (2,312 ) Other comprehensive income (loss) before reclassifications (573 ) 22 — (551 ) Amounts reclassified to the statements of income — 8 — 8 Net other comprehensive income (loss) before tax (573 ) 30 — (543 ) Corresponding income tax 3 — — 3 Net other comprehensive income (loss) after tax* (570 ) 30 — (540 ) Balance as of March 31, 2020, net of taxes $ (2,364 ) $ (390 ) $ (98 ) $ (2,852 ) * Amounts do not include a $10 million loss from foreign currency translation adjustments attributable to non-controlling . |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Segment Profit | a. Segment information: Three months ended March 31, 2021 North America Europe International Markets (U.S. $ in millions) Revenues $ 1,989 $ 1,214 $ 490 Gross profit 1,074 688 260 R&D expenses 160 66 18 S&M expenses 229 214 96 G&A expenses 111 70 26 Other income (3 ) § (2 ) Segment profit $ 577 $ 338 $ 122 § Represents an amount less than $1 million. Three months ended March 31, 2020 North America Europe International Markets (U.S. $ in millions) Revenues $ 2,082 $ 1,402 $ 565 Gross profit 1,062 823 305 R&D expenses 146 55 15 S&M expenses 251 202 106 G&A expenses 118 66 34 Other income (2 ) (1 ) (6 ) Segment profit $ 550 $ 502 $ 156 |
Schedule Of Consolidated Income Before Income Tax | 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 months ended March 31, 2021 and 2020: Three months ended March 31, 2021 2020 (U.S. $ in millions) North America profit $ 577 $ 550 Europe profit 338 502 International Markets profit 122 156 Total reportable segments profit 1,036 1,208 Profit of other activities 41 36 Total segments profit 1,077 1,244 Amounts not allocated to segments: Amortization 242 258 Other assets impairments, restructuring and other items 137 121 Intangible asset impairments 79 649 Legal settlements and loss contingencies 104 (25 ) Other unallocated amounts 82 49 Consolidated operating income (loss) 434 191 Financial expenses, net 290 224 Consolidated income (loss) before income taxes $ 144 $ (33 ) |
Schedule of Net Sales by Product Line | The following tables present revenues by major products and activities for the three months ended March 31, 2021 and 2020: North America Three months ended March 31, 2021 2020 (U.S. $ in millions) Generic products $ 1,053 $ 952 AJOVY 31 29 AUSTEDO 146 122 BENDEKA/TREANDA 91 105 COPAXONE 164 198 ProAir* 54 59 Anda 289 426 Other 161 191 Total $ 1,989 $ 2,082 * Does not include revenues from ProAir authorized generic, which are included under generic products. Europe Three months ended March 31, 2021 2020 (U.S. $ in millions) Generic products $ 865 $ 1,032 AJOVY 16 4 COPAXONE 100 109 Respiratory products 93 106 Other 140 151 Total $ 1,214 $ 1,402 International markets Three months ended March 31, 2021 2020 (U.S. $ in millions) Generic products $ 392 $ 449 COPAXONE 12 12 Other 86 104 Total $ 490 $ 565 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Financial Items Carried at Fair Value | Financial items carried at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 are classified in the tables below in one of the three categories of fair value level s March 31, 2021 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 120 $ — $ — $ 120 Cash, deposits and other 1,623 — — 1,623 Investment in securities: Equity securities* 182 — — 182 Other, mainly debt securities 5 — 1 6 Derivatives: Asset derivatives—options and forward contracts — 63 — 63 Liability derivatives—options and forward contracts — (23 ) — (23 ) Contingent consideration** — — (246 ) (246 ) Total $ 1,930 $ 40 $ (245 ) $ 1,725 December 31, 2020 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 367 $ — $ — $ 367 Cash, deposits and other 1,810 — — 1,810 Investment in securities: Equity securities* 25 259 — 284 Other, mainly debt securities 5 — 10 15 Derivatives: Asset derivatives—options and forward contracts — 24 — 24 Liability derivatives—options and forward contracts — (79 ) — (79 ) Contingent consideration** — — (268 ) (268 ) Total $ 2,207 $ 204 $ (258 ) $ 2,153 * As of March 31, 2021, Teva’s shares in American Well Corporation (“American Well”) moved from a Level 2 measurement to Level 1 measurement within the fair value hierarchy, since they are no longer subject to a sale restriction. ** Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. |
Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs | The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs: Three months ended Three months ended (U.S. $ in millions) Fair value at the beginning of the period $ (258 ) (448 ) Redemption of debt securities (9 ) Adjustments to provisions for contingent consideration: Actavis Generics transaction (3 ) (5 ) Eagle transaction — (1 ) Settlement of contingent consideration: Eagle transaction 25 31 Fair value at the end of the period $ (245 ) $ (423 ) |
Summary of Financial Instrument Measured on a Basis Other Than Fair Value | Financial instruments not measured at fair value Financial instruments measured on a basis other than fair value mostly consist of senior notes and convertible senior debentures (see note 7) and are presented in the table below in terms of fair value (level 1 inputs): Estimated fair value* March 31, December 31, 2021 2020 (U.S. $ in millions) Senior notes included under senior notes and loans $ 22,316 $ 22,684 Senior notes and convertible senior debentures included under short-term debt 2,711 3,207 Total $ 25,027 $ 25,891 * The fair value was estimated based on quoted market prices. |
Certain Transactions - Other Tr
Certain Transactions - Other Transactions - Additional Information (Detail) - USD ($) $ in Millions | Jan. 08, 2018 | May 12, 2017 | Sep. 30, 2016 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
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 payment | $ 60 | ||||||||
Total associated cost | 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 | $ 450 |
Certain Transactions - Assets a
Certain Transactions - Assets and Liabilities Held For Sale - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2015 | |
Impairment charge | $ 247 | $ 247 | |
Teva [Member] | |||
Equity Method Investment Ownership Percentage | 51.00% | ||
Minority Interest Ownership Percentage | 49.00% |
Certain Transactions - Business
Certain Transactions - Business Acquisitions - Summary of Major Classes of Assets and Liabilities Included as Held for Sale (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Business Combinations [Abstract] | ||
Inventories | $ 0 | $ 146 |
Property, plant and equipment, net and others | 99 | 312 |
Goodwill | 2 | 27 |
Adjustments of assets held for sale to fair value | (14) | (296) |
Total assets of the disposal group classified as held for sale in the consolidated balance sheets | $ 87 | $ 189 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
United States [Member] | |
Revenue Recognition [Line Items] | |
Percentage sales reserves and allowances to U.S. customers | 79.00% |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 3,982 | $ 4,357 | |
Sale of Goods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 3,463 | 3,655 | |
Licensing Arrangements [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 49 | 41 | |
Distribution [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 308 | 434 | |
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 162 | 227 | |
International Markets [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 490 | 565 | |
International Markets [Member] | Sale of Goods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 440 | 482 | |
International Markets [Member] | Licensing Arrangements [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 3 | 3 | |
International Markets [Member] | Distribution [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 19 | 6 | |
International Markets [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 28 | 74 | |
Other activities [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 289 | 307 | |
Other activities [Member] | Sale of Goods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 177 | 177 | |
Other activities [Member] | Licensing Arrangements [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1 | 1 | |
Other activities [Member] | Distribution [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 0 | ||
Other activities [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 111 | 129 | |
North America [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,989 | 2,082 | |
North America [Member] | Sale of Goods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,668 | 1,625 | |
North America [Member] | Licensing Arrangements [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 32 | 25 | |
North America [Member] | Distribution [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 289 | 426 | |
North America [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | [1] | 6 | |
Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,214 | 1,402 | |
Europe [Member] | Sale of Goods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,178 | 1,370 | |
Europe [Member] | Licensing Arrangements [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 14 | 12 | |
Europe [Member] | Distribution [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | [1] | 2 | |
Europe [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 22 | $ 19 | |
[1] | 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 Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue Recognition [Line Items] | ||
Balance at beginning of period | $ 4,904 | $ 6,246 |
Provisions related to sales made in current year | 3,532 | 4,100 |
Provisions related to sales made in prior periods | (117) | (148) |
Credits and payments | (3,628) | (4,410) |
Translation differences | (29) | (43) |
Balance at end of period | 4,662 | 5,745 |
Reserves Included in Accounts Receivable, Net [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 80 | 87 |
Provisions related to sales made in current year | 100 | 102 |
Credits and payments | (102) | (106) |
Balance at end of period | 78 | 83 |
Rebates [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 2,054 | 2,895 |
Provisions related to sales made in current year | 1,126 | 1,370 |
Provisions related to sales made in prior periods | (55) | (106) |
Credits and payments | (1,210) | (1,513) |
Translation differences | (17) | (21) |
Balance at end of period | 1,898 | 2,625 |
Medicaid and Other Governmental Allowances [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 828 | 1,109 |
Provisions related to sales made in current year | 164 | 233 |
Provisions related to sales made in prior periods | (11) | (29) |
Credits and payments | (188) | (248) |
Translation differences | (4) | (2) |
Balance at end of period | 789 | 1,063 |
Chargebacks [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 1,108 | 1,342 |
Provisions related to sales made in current year | 2,043 | 2,223 |
Provisions related to sales made in prior periods | 6 | (16) |
Credits and payments | (1,987) | (2,396) |
Translation differences | (3) | (6) |
Balance at end of period | 1,167 | 1,147 |
Returns [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 686 | 637 |
Provisions related to sales made in current year | 76 | 139 |
Provisions related to sales made in prior periods | (40) | (1) |
Credits and payments | (101) | (112) |
Translation differences | (3) | (4) |
Balance at end of period | 618 | 659 |
Other [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 148 | 176 |
Provisions related to sales made in current year | 23 | 33 |
Provisions related to sales made in prior periods | (17) | 4 |
Credits and payments | (40) | (35) |
Translation differences | (2) | (10) |
Balance at end of period | 112 | 168 |
Total Reserves Included in Sales Reserves and Allowances [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 4,824 | 6,159 |
Provisions related to sales made in current year | 3,432 | 3,998 |
Provisions related to sales made in prior periods | (117) | (148) |
Credits and payments | (3,526) | (4,304) |
Translation differences | (29) | (43) |
Balance at end of period | $ 4,584 | $ 5,662 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventories [Line Items] | ||
Finished products | $ 2,253 | $ 2,378 |
Raw and packaging materials | 1,297 | 1,231 |
Products in process | 663 | 605 |
Materials in transit and payments on account | 193 | 189 |
Total | $ 4,406 | $ 4,403 |
Identifiable Intangible Asset_2
Identifiable Intangible Assets - Summary of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | $ 20,637 | $ 21,182 |
Accumulated amortization | 12,192 | 12,259 |
Net carrying amount | 8,445 | 8,923 |
Identifiable product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 19,213 | 19,650 |
Accumulated amortization | 12,019 | 12,094 |
Net carrying amount | 7,194 | 7,556 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 610 | 621 |
Accumulated amortization | 173 | 165 |
Net carrying amount | 437 | 456 |
In Process Research and Development (IPR&D) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 814 | 911 |
Net carrying amount | $ 814 | $ 911 |
Identifiable Intangible Asset_3
Identifiable Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets useful life | 10 years | |
Amortization of intangible assets | $ 242 | $ 258 |
Impairment of intangible assets excluding goodwill | $ 79 | 649 |
Minimum [Member] | Measurement input, discount rate [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.075 | |
Maximum [Member] | Measurement input, discount rate [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.080 | |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | $ 51 | 331 |
In Process Research and Development [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.075 | |
In Process Research and Development [Member] | Minimum [Member] | Measurement input, discount rate [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 40 | |
In Process Research and Development [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.09 | |
In Process Research and Development [Member] | Maximum [Member] | Measurement input, discount rate [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 90 | |
Actavis [Member] | In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination recognized identifiable assets | $ 780 | |
Actavis [Member] | In Process Research and Development [Member] | Generic Pipeline Products [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | 106 | |
Actavis [Member] | Identifiable product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | 318 | |
AUSTEDO [Member] | In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | 211 | |
Japan [Member] | Actavis [Member] | In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | 165 | |
United States [Member] | Identifiable product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | $ 138 | |
United States [Member] | Actavis [Member] | Identifiable product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | $ 28 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance | $ 20,624 | [1] |
Translation differences | (322) | |
Ending balance | 20,302 | [1] |
North America [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 6,473 | [1] |
Translation differences | 4 | |
Ending balance | 6,477 | [1] |
Europe [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 9,102 | [1] |
Translation differences | (312) | |
Ending balance | 8,790 | [1] |
International Markets [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 2,362 | [1] |
Translation differences | (14) | |
Ending balance | 2,348 | [1] |
Other [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 2,687 | [1] |
Ending balance | $ 2,687 | [1] |
[1] | Accumulated goodwill impairment as of March 31, 2021 and December 31, 2020 was approximately $25.6 billion. |
Goodwill - Summary of Changes_2
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - USD ($) $ in Billions | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill [Line Items] | ||
Accumulated goodwill impairment | $ 25.6 | $ 25.6 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | Mar. 31, 2021 |
Other [Member] | |
Goodwill [Line Items] | |
Percentage difference between fair value and carrying value in respect of goodwill | 10.00% |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Current maturities of long-term liabilities | $ 2,674 | $ 2,674 |
Total short term debt | $ 2,697 | 3,188 |
Convertible senior debentures [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 0.25% | |
Maturity | 2026 | |
Short-term borrowings | $ 23 | $ 514 |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Senior Notes and Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Total senior notes | $ 25,041 | $ 25,490 |
Less current maturities | (2,674) | (2,674) |
Less debt issuance costs | (80) | (86) |
Total senior notes and loans | $ 22,288 | 22,731 |
Other Debentures [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 0.90% | |
Maturity | 2026 | |
Total senior notes and loans | $ 1 | 1 |
Senior notes EUR 1,500 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.13% | |
Maturity | 2024 | |
Total senior notes | $ 1,752 | 1,839 |
Senior notes EUR 1,300 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.25% | |
Maturity | 2023 | |
Total senior notes | $ 1,520 | 1,595 |
Senior notes EUR 900 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.50% | |
Maturity | 2025 | |
Total senior notes | $ 1,054 | 1,107 |
Senior notes EUR 750 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.63% | |
Maturity | 2028 | |
Total senior notes | $ 873 | 916 |
Senior notes EUR 700 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.25% | |
Maturity | 2022 | |
Total senior notes | $ 820 | 861 |
Senior notes EUR 700 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.88% | |
Maturity | 2027 | |
Total senior notes | $ 818 | 860 |
Senior notes USD 3,500 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.15% | |
Maturity | 2026 | |
Total senior notes | $ 3,495 | 3,495 |
Senior notes USD 3,000 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.80% | |
Maturity | 2023 | |
Total senior notes | $ 2,997 | 2,996 |
Senior notes USD 2,000 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.10% | |
Maturity | 2046 | |
Total senior notes | $ 1,986 | 1,986 |
Senior notes USD 1,250 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.00% | |
Maturity | 2024 | |
Total senior notes | $ 1,250 | 1,250 |
Senior notes USD 1,250 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.75% | |
Maturity | 2028 | |
Total senior notes | $ 1,250 | 1,250 |
Senior notes EUR 1,000 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.00% | |
Maturity | 2025 | |
Total senior notes | $ 1,172 | 1,230 |
Senior notes USD 1,000 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 7.13% | |
Maturity | 2025 | |
Total senior notes | $ 1,000 | 1,000 |
Senior notes USD 1,475 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.20% | |
Maturity | 2021 | |
Total senior notes | $ 1,474 | 1,472 |
Senior notes USD 844 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.95% | |
Maturity | 2022 | |
Total senior notes | $ 851 | 853 |
Senior notes USD 789 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.15% | |
Maturity | 2036 | |
Total senior notes | $ 783 | 783 |
Senior notes USD 613 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.65% | |
Maturity | 2021 | |
Total senior notes | $ 615 | 616 |
Senior notes USD 588 million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.65% | |
Maturity | 2021 | |
Total senior notes | $ 587 | 586 |
Senior notes CHF 350 Million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 0.50% | |
Maturity | 2022 | |
Total senior notes | $ 372 | 397 |
Senior notes CHF 350 Million [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.00% | |
Maturity | 2025 | |
Total senior notes | $ 372 | $ 398 |
Debt Obligations - Schedule o_3
Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail) - Mar. 31, 2021 € in Millions, SFr in Millions, $ in Millions | EUR (€) | USD ($) | CHF (SFr) |
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 amount | 3,500 | ||
Senior notes USD 1,475 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 1,475 | ||
Senior notes USD 3,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 3,000 | ||
Senior notes USD 2,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 2,000 | ||
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 1,250 | ||
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 1,250 | ||
Senior notes USD 844 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 844 | ||
Senior notes USD 789 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 789 | ||
Senior notes USD 613 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 613 | ||
Senior notes USD 588 million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 588 | ||
Senior notes CHF 350 Million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | SFr | SFr 350 | ||
Senior notes CHF 350 Million [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | SFr | SFr 350 |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2019USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Feb. 01, 2021USD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |||||
Long term debt currency portion USD | 61.00% | 61.00% | |||
Long term debt currency portion EUR | 36.00% | 36.00% | |||
Long term debt currency portion CHF | 3.00% | 3.00% | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,300 | ||||
Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount currently outstanding on the debt instruments | $ 23 | $ 491 | $ 514 | ||
Weighted average interest rate | 0.25% | 0.25% | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant Description | The net debt to EBITDA ratio limit was 5.50x through March 31, 2021, gradually declines to 5.00x in the third and fourth quarters of 2021, 4.50x in the first quarter of 2022, and continues to gradually decline over the remaining term of the RCF to 3.50x in the first quarter of 2023. | ||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Long Term Debt Payable Under Revolving Credit Facility | € | € 0 | ||||
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 date | Apr. 8, 2023 | ||||
Revolving Credit Facility [Member] | Trache B [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 1,150 | ||||
Line of credit facility, expiration date | Apr. 8, 2024 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - Not Designated as Hedging Instrument [Member] - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts Payable [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | $ (23) | $ (79) |
Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | $ 63 | $ 24 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Information Regarding The Location And Amount Of Pretax (Gains) Losses Of Derivatives Designated In Fair Value Or Cash Flow Hedging Relationships (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Other Comprehensive Income | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ (201) | $ (530) | |
Other Comprehensive Income | Net Investment Hedging [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [1] | 0 | (21) |
Financial expenses [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | 290 | 224 | |
Financial expenses [Member] | Net Investment Hedging [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [1] | $ 0 | $ (2) |
[1] | 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 $3 million. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule Of Other Derivatives Not Designated As Hedging Instruments Statements OfFinancial Performance And Financial Position Location (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Net Revenues [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 290 | $ 224 | |
Net Revenues [Member] | Not Designated as Hedging Instrument, Trading [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [1] | (70) | 24 |
Net Revenues [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [2] | ||
Financial expenses [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | (3,982) | (4,357) | |
Financial expenses [Member] | Not Designated as Hedging Instrument, Trading [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [1] | ||
Financial expenses [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [2] | $ (28) | $ (60) |
[1] | Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net. | ||
[2] | 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 Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar and some other currencies to protect its projected operating results for 2021. 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. In 2020, Teva recognized a loss of $27 million in relation with the 2021 hedging program Teva entered into in the second half of 2020. In the first three months of 2021, the positive impact from these derivatives recognized under revenues was $28 million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2016 | Dec. 31, 2019 | Sep. 30, 2019 | |
Derivative [Line Items] | |||||
Revenues other than USD | 48.00% | ||||
Teva other comprehensive loss | $ 493 | ||||
Forward starting interest rate swaps and treasury lock agreements losses | 8 | $ 8 | |||
Interest Rate Swap Gain | 0 | 1 | |||
Gain from currency swap | 0 | 1 | |||
Cash received on settlement of position | 3 | ||||
Cost of sales [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Gain on Derivative | $ 28 | $ 27 | |||
Senior Notes Due 2023 Two [Member] | |||||
Derivative [Line Items] | |||||
Notional amount hedge debt | $ 3,000 | $ 500 | |||
Previously hedge debt rate | 2.80% | ||||
Cash received on settlement of position | $ 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 rate | 2.95% | ||||
Senior Notes Due 2021 [Member] | |||||
Derivative [Line Items] | |||||
Notional amount hedge debt | $ 450 | $ 588 | |||
Previously hedge debt rate | 3.65% | 3.65% | |||
Cash received on settlement of position | $ 95 |
Legal Settlements and Loss Co_2
Legal Settlements and Loss Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | |||
Legal settlements and loss contingencies, expense | $ 104 | ||
Legal settlements, income | $ 25 | ||
Accrued amount for legal settlements and loss contingencies | $ 1,730 | $ 1,625 | |
Restructuring expense and income | The expense in the first quarter of 2021 was mainly due to the provision for the carvedilol patent litigation (see note 10). The income in the first quarter of 2020 was mainly due to proceeds received following a settlement of an action brought against the sellers of Auden McKenzie (an acquisition made by Actavis Generics). |
Commitments and Contingencies -
Commitments and Contingencies - Contingencies - Additional Information (Detail) € in Millions, $ in Millions | Nov. 20, 2020EUR (€) | Oct. 21, 2019USD ($)Number | Aug. 21, 2017USD ($) | Jul. 15, 2015USD ($) | May 31, 2019USD ($) | Aug. 31, 2012USD ($) | Dec. 31, 2010USD ($) | Aug. 31, 2008USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2014USD ($) | Sep. 01, 2020USD ($) | Jan. 31, 2009USD ($) | Jul. 31, 2008USD ($) | Feb. 28, 2005USD ($) |
Commitment And Contingencies [Line Items] | |||||||||||||||
Damages assessment | $ 235.5 | ||||||||||||||
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 Sensipar | $ 1,400 | ||||||||||||||
Litigation settlement amount awarded cash amount | $ 20 | ||||||||||||||
Annual Sales Of Copaxone | $ 380 | ||||||||||||||
Fines Imposed In Period | € | € 60.5 | ||||||||||||||
Opioid Litigation [Member] | |||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||
Litigation settlement amount | $ 25 | $ 85 | |||||||||||||
Litigation settlement amount awarded distribution period | 3 years | ||||||||||||||
Litigation settlement amount awarded number of installments | Number | 4 | ||||||||||||||
Litigation settlement amount awarded cash amount distribution period | 3 years | ||||||||||||||
Nationwide Settlement [Member] | |||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||
Litigation settlement amount | $ 23,000 | ||||||||||||||
Litigation settlement amount awarded distribution period | 10 years | ||||||||||||||
Litigation settlement amount awarded cash amount | $ 250 | ||||||||||||||
Litigation settlement amount awarded cash amount distribution period | 10 years | ||||||||||||||
Eosinophilic Esophagitis [Member] | |||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||
Damage claimed | 200 | ||||||||||||||
Eosinophilic Esophagitis [Member] | United States [Member] | |||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||
Damage claimed | 150 | ||||||||||||||
Eosinophilic Esophagitis [Member] | Europe [Member] | |||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||
Damage claimed | $ 50 | ||||||||||||||
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 Millions | 1 Months Ended | 3 Months Ended | |
Nov. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax [Line Items] | |||
Expected impairment of income tax benefit | $ 140 | ||
Income tax expense (benefit) | $ 62 | $ (59) | |
Pre-tax income (loss) | $ 144 | $ (33) | |
Israel Tax Authority [Member] | |||
Income Tax [Line Items] | |||
Statutory tax rate in Israel | 23.00% |
Other assets impairments, res_3
Other assets impairments, restructuring and other items - Schedule of Other Assets Impairments, Restructuring and Other Items (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Restructuring and Impairment Costs [Line Items] | |||
Impairments of long-lived tangible assets | [1] | $ 48 | $ 75 |
Contingent consideration | 3 | 6 | |
Restructuring | 81 | 39 | |
Other | 4 | ||
Total | $ 137 | $ 121 | |
[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 Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2021 | ||
Restructuring and Impairment Costs [Line Items] | |||||
Impairments of long-lived tangible assets | [1] | $ 48 | $ 75 | ||
Impairments of property, plant and equipment | 48 | ||||
Restructuring costs | 81 | 39 | |||
Business combination contingent consideration arrangements change in amount of contingent consideration liability | $ 3 | 6 | |||
Scenario, Forecast [Member] | |||||
Restructuring and Impairment Costs [Line Items] | |||||
Expected revenue from Florida manufacturing plant in 2020 | $ 125 | ||||
Restructuring Cost [Member] | |||||
Restructuring and Impairment Costs [Line Items] | |||||
Business combination contingent consideration arrangements change in amount of contingent consideration liability | $ (3) | $ 6 | |||
[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 Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 81 | $ 39 |
Employee termination [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 79 | 33 |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 2 | $ 6 |
Other assets impairments, res_6
Other assets impairments, restructuring and other items - Summary of Restructuring Accruals (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | $ (122) | $ (215) | |
Provision | (81) | (39) | |
Utilization and other | [1] | 35 | 75 |
Ending balance | (168) | (179) | |
Employee termination costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | (115) | (208) | |
Provision | (79) | (33) | |
Utilization and other | [1] | 33 | 69 |
Ending balance | (161) | (172) | |
Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | (7) | (7) | |
Provision | (2) | (6) | |
Utilization and other | [1] | 2 | 6 |
Ending balance | $ (7) | $ (7) | |
[1] | Includes adjustments for foreign currency translation. |
Earnings (Loss) per Share - Add
Earnings (Loss) per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Basic and diluted loss per share | $ 0.07 | $ 0.06 | |
Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average shares with anti-dilutive effect on earnings per share | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 30, 2020 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | $ (2,399) | |||||
Net other comprehensive income loss after tax in respect of acturial benefits | [1] | $ (570) | ||||
Ending Balance | (2,534) | |||||
Foreign Currency Translation Adjustments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (1,919) | (1,794) | $ (1,794) | |||
Other comprehensive income (loss) before reclassifications | (174) | (573) | ||||
Net other comprehensive income (loss) before tax | (174) | (573) | ||||
Corresponding income tax | 33 | 3 | ||||
Net other comprehensive income loss after tax in respect of acturial benefits | [2] | (141) | ||||
Ending Balance | (2,060) | (2,364) | ||||
Derivative Financial Instruments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (363) | (420) | (420) | |||
Other comprehensive income (loss) before reclassifications | 22 | |||||
Amounts reclassified to the statements of income | 9 | 8 | ||||
Net other comprehensive income (loss) before tax | 9 | 30 | ||||
Corresponding income tax | (2) | |||||
Net other comprehensive income loss after tax in respect of acturial benefits | 7 | [2] | 30 | [1] | ||
Ending Balance | (356) | (390) | ||||
Benefit Plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (117) | (98) | (98) | |||
Ending Balance | (117) | (98) | ||||
AOCI Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (2,399) | (2,312) | (2,312) | |||
Other comprehensive income (loss) before reclassifications | (174) | (551) | ||||
Amounts reclassified to the statements of income | 9 | 8 | ||||
Net other comprehensive income (loss) before tax | (165) | (543) | ||||
Corresponding income tax | 31 | $ 3 | ||||
Net other comprehensive income loss after tax in respect of acturial benefits | (134) | [2] | (540) | [1] | ||
Ending Balance | $ (2,534) | $ (2,852) | ||||
[1] | Amounts do not include a $10 million loss from foreign currency translation adjustments attributable to non-controlling interests. | |||||
[2] | Amounts do not include a $67 million gain from foreign currency translation adjustments attributable to non-controlling interests. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Accounting Standards Update 2016-01 [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Foreign currency translation attributable to non-controlling interests | $ 10 |
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 | $ 67 |
Segments - Summary of Segment P
Segments - Summary of Segment Profit (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | $ 3,982 | $ 4,357 |
Gross profit | 1,878 | 2,063 |
R&D expenses | 254 | 221 |
S&M expenses | 585 | 613 |
G&A expenses | 290 | 304 |
Segment profit | 434 | 191 |
North America [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 1,989 | 2,082 |
Gross profit | 1,074 | 1,062 |
R&D expenses | 160 | 146 |
S&M expenses | 229 | 251 |
G&A expenses | 111 | 118 |
Other (income) expense | (3) | (2) |
Segment profit | 577 | 550 |
Europe [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 1,214 | 1,402 |
Gross profit | 688 | 823 |
R&D expenses | 66 | 55 |
S&M expenses | 214 | 202 |
G&A expenses | 70 | 66 |
Other (income) expense | (1) | |
Segment profit | 338 | 502 |
International Markets [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 490 | 565 |
Gross profit | 260 | 305 |
R&D expenses | 18 | 15 |
S&M expenses | 96 | 106 |
G&A expenses | 26 | 34 |
Other (income) expense | (2) | (6) |
Segment profit | $ 122 | $ 156 |
Segments - Summary of Profit by
Segments - Summary of Profit by Segments and Reconciliation of Segments Profit to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Amounts allocated to segments: | ||
Segments profit | $ 434 | $ 191 |
Amounts not allocated to segments: | ||
Amortization | 242 | 258 |
Other assets impairments, restructuring and other items | 137 | 121 |
Intangible asset impairments | 79 | 649 |
Legal settlements and loss contingencies | 104 | (25) |
Other unallocated amounts | 82 | 49 |
Consolidated operating income (loss) | 434 | 191 |
Financial expenses, net | 290 | 224 |
Income (loss) before income taxes | 144 | (33) |
North America [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 577 | 550 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 577 | 550 |
Europe [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 338 | 502 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 338 | 502 |
International Markets [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 122 | 156 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 122 | 156 |
Corporate Segment [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 1,036 | 1,208 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 1,036 | 1,208 |
Other Segments [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 41 | 36 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 41 | 36 |
Segments and Other Activities [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 1,077 | 1,244 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | $ 1,077 | $ 1,244 |
Segments - Schedule of Revenues
Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Product Information [Line Items] | |||
Revenues | $ 3,982 | $ 4,357 | |
North America [Member] | |||
Product Information [Line Items] | |||
Revenues | 1,989 | 2,082 | |
Europe [Member] | |||
Product Information [Line Items] | |||
Revenues | 1,214 | 1,402 | |
International Markets [Member] | |||
Product Information [Line Items] | |||
Revenues | 490 | 565 | |
Generic products [Member] | North America [Member] | |||
Product Information [Line Items] | |||
Revenues | 1,053 | 952 | |
Generic products [Member] | Europe [Member] | |||
Product Information [Line Items] | |||
Revenues | 865 | 1,032 | |
Generic products [Member] | International Markets [Member] | |||
Product Information [Line Items] | |||
Revenues | 392 | 449 | |
COPAXONE [Member] | North America [Member] | |||
Product Information [Line Items] | |||
Revenues | 164 | 198 | |
COPAXONE [Member] | Europe [Member] | |||
Product Information [Line Items] | |||
Revenues | 100 | 109 | |
COPAXONE [Member] | International Markets [Member] | |||
Product Information [Line Items] | |||
Revenues | 12 | 12 | |
BENDEKA and TREANDA [Member] | North America [Member] | |||
Product Information [Line Items] | |||
Revenues | 91 | 105 | |
ProAir [Member] | North America [Member] | |||
Product Information [Line Items] | |||
Revenues | [1] | 54 | 59 |
AJOVY [Member] | North America [Member] | |||
Product Information [Line Items] | |||
Revenues | 31 | 29 | |
AJOVY [Member] | Europe [Member] | |||
Product Information [Line Items] | |||
Revenues | 16 | 4 | |
AUSTEDO [Member] | North America [Member] | |||
Product Information [Line Items] | |||
Revenues | 146 | 122 | |
Respiratory Product [Member] | Europe [Member] | |||
Product Information [Line Items] | |||
Revenues | 93 | 106 | |
Anda [Member] | North America [Member] | |||
Product Information [Line Items] | |||
Revenues | 289 | 426 | |
Other [Member] | North America [Member] | |||
Product Information [Line Items] | |||
Revenues | 161 | 191 | |
Other [Member] | Europe [Member] | |||
Product Information [Line Items] | |||
Revenues | 140 | 151 | |
Other [Member] | International Markets [Member] | |||
Product Information [Line Items] | |||
Revenues | $ 86 | $ 104 | |
[1] | Does not include revenues from ProAir authorized generic, which are included under generic products. |
Segments - Additional Informati
Segments - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)Segment | Mar. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 3 | |
Operating Income (Loss) | $ 434 | $ 191 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 338 | $ 502 |
Europe [Member] | Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | $ 1 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Items Carried at Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | [1] | $ (246) | $ (268) | |
Total | 1,725 | 2,153 | ||
Asset Derivatives - Options and Forward Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | 63 | 24 | ||
Liabilities Derivatives Options and Forward Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | (23) | (79) | ||
Money Markets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 120 | 367 | ||
Cash, Deposits and Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 1,623 | 1,810 | ||
Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in securities | 182 | [2] | 284 | |
Other, Mainly Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in securities | 6 | 15 | ||
Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 1,930 | 2,207 | ||
Level 1 [Member] | Money Markets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 120 | 367 | ||
Level 1 [Member] | Cash, Deposits and Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 1,623 | 1,810 | ||
Level 1 [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in securities | 182 | [2] | 25 | |
Level 1 [Member] | Other, Mainly Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in securities | 5 | 5 | ||
Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 40 | 204 | ||
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | 63 | 24 | ||
Level 2 [Member] | Liabilities Derivatives Options and Forward Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | (23) | (79) | ||
Level 2 [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in securities | 259 | |||
Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | [1] | (246) | (268) | |
Total | (245) | (258) | ||
Level 3 [Member] | Other, Mainly Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in securities | $ 1 | $ 10 | ||
[1] | Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. | |||
[2] | As of March 31, 2021, Teva’s shares in American Well Corporation (“American Well”) moved from a Level 2 measurement to Level 1 measurement within the fair value hierarchy, since they are no longer subject to a sale restriction. |
Fair value measurement - Additi
Fair value measurement - Additional Information (Detail) | Mar. 31, 2021 |
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 input | 1 |
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 input | 0.080 |
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 input | 0.80 |
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 input | 0.075 |
Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Business combination, contingent consideration, liability, measurement input | 0.078 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value at the beginning of the period | $ (258) | $ (448) |
Revaluation of debt securities | (9) | |
Fair value at the end of the period | (245) | (423) |
Actavis Generics [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjustments to provisions for contingent consideration | (5) | |
Actavis Generics transaction | (3) | |
Eagle Transaction [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjustments to provisions for contingent consideration | (1) | |
Settlement of contingent consideration | $ 25 | $ 31 |
Fair Value Measurement - Summ_3
Fair Value Measurement - Summary of Financial Instrument Measured on a Basis Other Than Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 25,027 | $ 25,891 |
Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 22,316 | 22,684 |
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 | $ 2,711 | $ 3,207 |