☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Israel | ||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) | |
5 Basel Street, Petach Tikva, ISRAEL | 4951033 | |
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
American Depositary Shares, each representing one | TEVA | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
PART I. | ||||||
Item 1. | ||||||
5 | ||||||
10 | ||||||
Item 2. | 40 | |||||
Item 3. | 61 | |||||
Item 4. | 61 | |||||
PART II. | ||||||
Item 1. | 62 | |||||
Item 1A. | 62 | |||||
Item 2. | 62 | |||||
Item 3. | 63 | |||||
Item 4. | 63 | |||||
Item 5. | 63 | |||||
Item 6. | 64 | |||||
ITEM 1. | FINANCIAL STATEMENTS |
September 30, 2019 | December 31, 2018 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,241 | $ | 1,782 | ||||
Trade receivables | 5,254 | 5,822 | ||||||
Inventories | 4,636 | 4,731 | ||||||
Prepaid expenses | 976 | 899 | ||||||
Other current assets | 416 | 468 | ||||||
Assets held for sale | 18 | 92 | ||||||
Total current assets | 12,542 | 13,794 | ||||||
Deferred income taxes | 331 | 368 | ||||||
Other non-current assets | 727 | 731 | ||||||
Property, plant and equipment, net | 6,643 | 6,868 | ||||||
Operating lease right-of-use assets | 468 | — | ||||||
Identifiable intangible assets, net | 11,878 | 14,005 | ||||||
Goodwill | 24,657 | 24,917 | ||||||
Total assets | $ | 57,246 | $ | 60,683 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 3,130 | $ | 2,216 | ||||
Sales reserves and allowances | 6,137 | 6,711 | ||||||
Trade payables | 1,688 | 1,853 | ||||||
Employee-related obligations | 583 | 870 | ||||||
Accrued expenses | 1,748 | 1,868 | ||||||
Other current liabilities | 820 | 804 | ||||||
Total current liabilities | 14,107 | 14,322 | ||||||
Long-term liabilities: | ||||||||
Deferred income taxes | 1,462 | 2,140 | ||||||
Other taxes and long-term liabilities | 2,546 | 1,727 | ||||||
Senior notes and loans | 23,812 | 26,700 | ||||||
Operating lease liabilities | 394 | — | ||||||
Total long-term liabilities | 28,215 | 30,567 | ||||||
Commitments and contingencies | ||||||||
Total liabilities | 42,322 | 44,889 | ||||||
Equity: | ||||||||
Teva shareholders’ equity: | ||||||||
Ordinary shares of NIS 0.10 par value per share; September 30, 2019 and December 31, 2018: authorized 2,495 million shares; issued 1,198 million shares and 1,196 million shares, respectively | 56 | 56 | ||||||
Additional paid-in capital | 27,293 | 27,210 | ||||||
Accumulated deficit | (7,066 | ) | (5,958 | ) | ||||
Accumulated other comprehensive loss | (2,365 | ) | (2,459 | ) | ||||
Treasury shares as of September 30, 2019 and December 31, 2018 — 106 million ordinary shares | (4,128 | ) | (4,142 | ) | ||||
13,790 | 14,707 | |||||||
Non-controlling interests | 1,134 | 1,087 | ||||||
Total equity | 14,925 | 15,794 | ||||||
Total liabilities and equity | $ | 57,246 | $ | 60,683 | ||||
March 31, | December 31, | |||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,804 | $ | 1,975 | ||||
Accounts receivables, net of allowance for credit losses of $127 million and $135 million as of March 31, 2020 and December 31, 2019 | 5,189 | 5,676 | ||||||
Inventories | 4,290 | 4,422 | ||||||
Prepaid expenses | 977 | 870 | ||||||
Other current assets | 538 | 434 | ||||||
Assets held for sale | 86 | 87 | ||||||
Total current assets | 12,884 | 13,464 | ||||||
Deferred income taxes | 440 | 386 | ||||||
Other non-current assets | 550 | 591 | ||||||
Property, plant and equipment, net | 6,221 | 6,436 | ||||||
Operating lease right-of-use assets | 489 | 514 | ||||||
Identifiable intangible assets, net | 10,256 | 11,232 | ||||||
Goodwill | 24,490 | 24,846 | ||||||
Total assets | $ | 55,330 | $ | 57,470 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 1,630 | $ | 2,345 | ||||
Sales reserves and allowances | 5,662 | 6,159 | ||||||
Accounts payables | 1,710 | 1,718 | ||||||
Employee-related obligations | 540 | 693 | ||||||
Accrued expenses | 1,718 | 1,869 | ||||||
Other current liabilities | 1,061 | 889 | ||||||
Total current liabilities | 12,322 | 13,674 | ||||||
Long-term liabilities: | ||||||||
Deferred income taxes | 912 | 1,096 | ||||||
Other taxes and long-term liabilities | 2,624 | 2,640 | ||||||
Senior notes and loans | 24,473 | 24,562 | ||||||
Operating lease liabilities | 411 | 435 | ||||||
Total long-term liabilities | 28,420 | 28,733 | ||||||
Commitments and contingencies 10 | ||||||||
Total liabilities | 40,742 | 42,407 | ||||||
Equity: | ||||||||
Teva shareholders’ equity: | ||||||||
Ordinary shares of NIS 0.10 par value per share; March 31, 2020 and December 31, 2019: authorized 2,495 million shares; issued 1,201 million shares and 1,198 million shares, respectively | 56 | 56 | ||||||
Additional paid-in capital | 27,342 | 27,312 | ||||||
Accumulated deficit | (6,887 | ) | (6,956 | ) | ||||
Accumulated other comprehensive loss | (2,852 | ) | (2,312 | ) | ||||
Treasury shares as of March 31, 2020 and December 31, 2019 — 106 million ordinary shares | (4,128 | ) | (4,128 | ) | ||||
13,531 | 13,972 | |||||||
Non-controlling interests | 1,057 | 1,091 | ||||||
Total equity | 14,588 | 15,063 | ||||||
Total liabilities and equity | $ | 55,330 | $ | 57,470 | ||||
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Net revenues | $ | 4,357 | $ | 4,149 | ||||
Cost of sales | 2,294 | 2,293 | ||||||
Gross profit | 2,063 | 1,856 | ||||||
Research and development expenses | 221 | 261 | ||||||
Selling and marketing expenses | 613 | 648 | ||||||
General and administrative expenses | 304 | 292 | ||||||
Intangible assets impairments | 649 | 469 | ||||||
Other assets impairments, restructuring and other items | 121 | 1 | ||||||
Legal settlements and loss contingencies | (25 | ) | 57 | |||||
Other income | (13 | ) | (6 | ) | ||||
Operating (loss) income | 191 | 134 | ||||||
Financial expenses, net | 224 | 218 | ||||||
Income (loss) before income taxes | (33 | ) | (84 | ) | ||||
Income taxes (benefit) | (59 | ) | 9 | |||||
Share in (profits) losses of associated companies, net | 1 | 4 | ||||||
Net income (loss) | 25 | (97 | ) | |||||
Net income ( attributable toloss) non-controlling interests | (44 | ) | 8 | |||||
Net income (loss) attributable to Teva | 69 | (105 | ) | |||||
Net income (loss) attributable to ordinary shareholders | $ | 69 | $ | (105 | ) | |||
Earnings (loss) per share attributable to ordinary shareholders: | ||||||||
Basic | $ | 0.06 | $ | (0.10 | ) | |||
Diluted | $ | 0.06 | $ | (0.10 | ) | |||
Weighted average number of shares (in millions): | ||||||||
Basic | 1,093 | 1,090 | ||||||
Diluted | 1,096 | 1,090 | ||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net revenues | $ | 4,264 | $ | 4,529 | $ | 12,896 | $ | 14,295 | ||||||||
Cost of sales | 2,435 | 2,552 | 7,318 | 7,970 | ||||||||||||
Gross profit | 1,830 | 1,977 | 5,579 | 6,325 | ||||||||||||
Research and development expenses | 240 | 311 | 778 | 918 | ||||||||||||
Selling and marketing expenses | 595 | 699 | 1,908 | 2,119 | ||||||||||||
General and administrative expenses | 285 | 309 | 873 | 954 | ||||||||||||
Intangible assets impairment | 177 | 519 | 1,206 | 1,246 | ||||||||||||
Goodwill impairment | — | — | — | 300 | ||||||||||||
Other assets impairments, restructuring and other items | 160 | 139 | 263 | 834 | ||||||||||||
Legal settlements and loss contingencies | 468 | 19 | 1,171 | (1,239 | ) | |||||||||||
Other income | (14 | ) | (35 | ) | (29 | ) | (334 | ) | ||||||||
Operating income (loss) | (81 | ) | 16 | (591 | ) | 1,527 | ||||||||||
Financial expenses, net | 211 | 229 | 635 | 736 | ||||||||||||
Income (loss) before income taxes | (292 | ) | (213 | ) | (1,226 | ) | 791 | |||||||||
Income taxes (benefit ) | 11 | (26 | ) | (159 | ) | (56 | ) | |||||||||
Share in losses of associated companies, net | 4 | 10 | 8 | 76 | ||||||||||||
Net income (loss) | (307 | ) | (197 | ) | (1,076 | ) | 771 | |||||||||
Net income attributable to non-controlling interests | 7 | 11 | 33 | 35 | ||||||||||||
Net income (loss) attributable to Teva | (314 | ) | (208 | ) | (1,108 | ) | 736 | |||||||||
Dividends on preferred shares | — | 65 | — | 195 | ||||||||||||
Net income (loss) attributable to ordinary shareholders | $ | (314 | ) | $ | (273 | ) | $ | (1,108 | ) | $ | 541 | |||||
Earnings (loss) per share attributable to ordinary shareholders: | ||||||||||||||||
Basic | $ | (0.29 | ) | $ | (0.27 | ) | $ | (1.02 | ) | $ | 0.53 | |||||
Diluted | $ | (0.29 | ) | $ | (0.27 | ) | $ | (1.02 | ) | $ | 0.53 | |||||
Weighted average number of shares (in millions): | ||||||||||||||||
Basic | 1,092 | 1,018 | 1,091 | 1,018 | ||||||||||||
Diluted | 1,092 | 1,018 | 1,091 | 1,020 | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income (loss) | $ | (307) | $ | (197) | $ | (1,076) | $ | 771 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Currency translation adjustment | (138 | ) | (105 | ) | (5 | ) | (577 | ) | ||||||||
Unrealized gain from derivative financial instruments | 87 | 19 | 124 | 75 | ||||||||||||
Unrealized gain (loss) from available-for-sale securities | (2 | ) | 1 | (1 | ) | — | ||||||||||
Unrealized gain (loss) on defined benefit plans | — | 1 | (1 | ) | — | |||||||||||
Total other comprehensive income (loss) | (53 | ) | (84 | ) | 117 | (502 | ) | |||||||||
Total comprehensive income (loss) | (360 | ) | (281 | ) | (959 | ) | 269 | |||||||||
Comprehensive income (loss) attributable to non-controlling interests | 7 | (26 | ) | 56 | 20 | |||||||||||
Comprehensive income (loss) attributable to Teva | $ | (367 | ) | $ | (255 | ) | $ | (1,015 | ) | $ | 249 | |||||
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Net income (loss) | $ | 25 | $ | (97 | ) | |||
Other comprehensive income (loss), net of tax: | ||||||||
Currency translation adjustment | (560 | ) | 47 | |||||
Unrealized gain from derivative financial instruments | 30 | 47 | ||||||
Total other comprehensive income (loss) | (530 | ) | 94 | |||||
Total comprehensive income (loss) | (505 | ) | (3 | ) | ||||
Comprehensive income (loss) attributable to non-controlling interests | (34 | ) | 2 | |||||
Comprehensive income (loss) attributable to Teva | $ | (471 | ) | $ | (5 | ) | ||
Teva shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Number of shares millions) | Stated value | MCPS | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other hensive (loss) | Treasury shares | Total Teva shareholders’ equity | Non- controlling interests | Total | |||||||||||||||||||||||||||||||
(U.S. dollars in millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | 1,124 | 54 | 3,760 | 23,426 | (2,864) | (2,289) | (4,149 | ) | 17,938 | 1,430 | 19,368 | |||||||||||||||||||||||||||||
Comprehensive loss | (208 | ) | (46 | ) | (255 | ) | (26 | ) | (281 | ) | ||||||||||||||||||||||||||||||
Issuance of Shares | 1 | ** | ** | |||||||||||||||||||||||||||||||||||||
Issuance of Treasury Shares | (1 | ) | 3 | 2 | 2 | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 44 | 44 | 44 | |||||||||||||||||||||||||||||||||||||
Dividends to preferred shareholders | 65 | (65 | ) | — | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2018 | 1,125 | $ | 54 | $ | 3,825 | $ | 23,404 | $ | (3,072 | ) | $ | (2,335 | ) | $ | (4,146 | ) | $ | 17,730 | $ | 1,404 | $ | 19,134 | ||||||||||||||||||
Teva shareholders’ equity | ||||||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||
Number of shares (in millions) | Stated value | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other comprehensive (loss) | Treasury shares | Total Teva shareholders’ equity | Non- controlling interests | Total equity | ||||||||||||||||||||||||||||
(U.S. dollars in millions) | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 1,198 | 56 | 27,312 | (6,956 | ) | (2,312 | ) | (4,128 | ) | 13,972 | 1,091 | 15,063 | ||||||||||||||||||||||||
Comprehensive income (loss) | 69 | (540 | ) | (471 | ) | (34 | ) | (505 | ) | |||||||||||||||||||||||||||
Issuance of Shares | 3 | * | * | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | 30 | 30 | 30 | |||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 1,201 | $ | 56 | $ | 27,342 | $ | (6,887 | ) | $ | (2,852 | ) | $ | (4,128 | ) | $ | 13,531 | $ | 1,057 | $ | 14,588 | ||||||||||||||||
Teva shareholders’ equity | ||||||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||
Number of shares (in millions) | Stated value | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other comprehensive (loss) | Treasury shares | Total Teva shareholders’ equity | Non- controlling interests | Total equity | ||||||||||||||||||||||||||||
(U.S. dollars in millions) | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 1,196 | 56 | 27,210 | (5,958 | ) | (2,459 | ) | (4,142 | ) | 14,707 | 1,087 | 15,794 | ||||||||||||||||||||||||
Comprehensive income (loss) | (105 | ) | 100 | (5 | ) | 2 | (3 | ) | ||||||||||||||||||||||||||||
Issuance of shares | 2 | * | * | |||||||||||||||||||||||||||||||||
Issuance of Treasury Shares | (3 | ) | 5 | 2 | 2 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | 34 | 34 | 34 | |||||||||||||||||||||||||||||||||
Other | (6 | ) | (6 | ) | (6 | ) | ||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 1,198 | $ | 56 | $ | 27,234 | $ | (6,063 | ) | $ | (2,359 | ) | $ | (4,137 | ) | $ | 14,732 | $ | 1,089 | $ | 15,821 | ||||||||||||||||
Teva shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Number of shares (in millions) | Stated value | MCPS | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other (loss) | Treasury shares | Total Teva shareholders’ equity | Non- controlling interests | Total | |||||||||||||||||||||||||||||||
(U.S. dollars in millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 1,198 | 56 | — | 27,258 | (6,752 | ) | (2,312 | ) | (4,128 | ) | 14,122 | 1,128 | 15,251 | |||||||||||||||||||||||||||
Comprehensive income (loss) | (314 | ) | (53 | ) | (367 | ) | 7 | (360 | ) | |||||||||||||||||||||||||||||||
Issuance of Shares | ** | ** | ** | |||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 35 | 35 | 35 | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 1,198 | $ | 56 | — | $ | 27,293 | $ | (7,066 | ) | $ | (2,365 | ) | $ | (4,128 | ) | $ | 13,790 | $ | 1,134 | $ | 14,925 | |||||||||||||||||||
Represents an amount less than $ 0.5 million. |
Teva shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Number of shares (in millions) | Stated value | MCPS | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other (loss) | Treasury shares | Total Teva shareholders’ equity | Non- controlling interests | Total | |||||||||||||||||||||||||||||||
(U.S. dollars in millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at December | 1,124 | 54 | 3,631 | 23,479 | (3,803 | ) | (1,853 | ) | (4,149 | ) | 17,359 | 1,386 | 18,745 | |||||||||||||||||||||||||||
Cumulative effect of new accounting standard | (5 | ) | 5 | — | ||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 736 | (487 | ) | 249 | 20 | 269 | ||||||||||||||||||||||||||||||||||
Issuance of Treasury Shares | (1 | ) | 3 | 2 | 2 | |||||||||||||||||||||||||||||||||||
Dividends to preferred shareholders | 194 | (194 | ) | — | ||||||||||||||||||||||||||||||||||||
Issuance of shares | 1 | ** | ** | |||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 120 | 120 | 120 | |||||||||||||||||||||||||||||||||||||
Transactions with non-controlling interests | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2018 | 1,125 | $ | 54 | $ | 3,825 | $ | 23,404 | $ | (3,072 | ) | $ | (2,335 | ) | $ | (4,146 | ) | $ | 17,730 | $ | 1,404 | $ | 19,134 |
Teva shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Number of shares (in millions) | Stated value | MCPS | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other (loss) | Treasury shares | Total Teva shareholders’ equity | Non- controlling interests | Total | |||||||||||||||||||||||||||||||
(U.S. dollars in millions) | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 1,196 | 56 | — | 27,210 | (5,958 | ) | (2,459 | ) | (4,142 | ) | 14,707 | 1,087 | 15,794 | |||||||||||||||||||||||||||
Comprehensive income (loss) | (1,108 | ) | 94 | (1,015 | ) | 56 | (959 | ) | ||||||||||||||||||||||||||||||||
Issuance of Shares | 2 | ** | ** | |||||||||||||||||||||||||||||||||||||
Issuance of Treasury Shares | (8 | ) | 14 | 6 | 6 | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 99 | 99 | 99 | |||||||||||||||||||||||||||||||||||||
Transactions with non-controlling interests | (8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||
Other | (8 | ) | (8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 1,198 | $ | 56 | — | $ | 27,293 | $ | (7,066 | ) | $ | (2,365 | ) | $ | (4,128 | ) | $ | 13,790 | $ | 1,134 | $ | 14,925 | |||||||||||||||||||
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
Operating activities: | ||||||||
Net income (loss) | $ | (1,076 | ) | $ | 771 | |||
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||||||||
Depreciation and amortization | 1,306 | 1,460 | ||||||
Impairment of long-lived assets | 1,302 | 1,501 | ||||||
Net change in operating assets and liabilities | (784 | ) | (1,521 | ) | ||||
Deferred income taxes – net and uncertain tax positions | (652 | ) | (650 | ) | ||||
Stock-based compensation | 99 | 122 | ||||||
Net loss ( gain) from sale of long-lived assets and investments | 10 | (53 | ) | |||||
Other items | 5 | (8 | ) | |||||
Goodwill impairment | — | 300 | ||||||
Impairment of equity investment | — | 103 | ||||||
In process research and development | — | 54 | ||||||
Net cash provided by operating activities | 210 | 2,079 | ||||||
Investing activities: | ||||||||
Beneficial interest collected in exchange for securitized trade receivables | 1,108 | 1,372 | ||||||
Purchases of property, plant and equipment | (406 | ) | (438 | ) | ||||
Proceeds from sales of business, investments and long-lived assets | 169 | 880 | ||||||
Other investing activities | 59 | 34 | ||||||
Purchases of investments and other assets | (5 | ) | (56 | ) | ||||
Net cash provided by investing activities | 925 | 1,792 | ||||||
Financing activities: | ||||||||
Repayment of senior notes and loans and other long-term liabilities | (1,715 | ) | (6,989 | ) | ||||
Net change in short-term debt | 96 | (262 | ) | |||||
Tax withholding payments made on shares and dividends | (52 | ) | (22 | ) | ||||
Other financing activities | (14 | ) | (13 | ) | ||||
Proceeds from senior notes and loans, net of issuance costs | — | 4,434 | ||||||
Net cash used in financing activities | (1,685 | ) | (2,852 | ) | ||||
Translation adjustment on cash and cash equivalents | 9 | (107 | ) | |||||
Net change in cash and cash equivalents | (541 | ) | 912 | |||||
Balance of cash and cash equivalents at beginning of period | 1,782 | 963 | ||||||
Balance of cash and cash equivalents at end of period | $ | 1,241 | $ | 1,875 | ||||
Non-cash financing and investing activities: | ||||||||
Beneficial interest obtained in exchange for securitized trade receivables | $ | 1,123 | $ | 1,345 |
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Operating activities: | ||||||||
Net income (loss) | $ | 25 | $ | (97 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||||||||
Depreciation and amortization | 399 | 443 | ||||||
Impairment of long-lived assets | 724 | 489 | ||||||
Net change in operating assets and liabilities | (666 | ) | (805 | ) | ||||
Deferred income taxes – net and uncertain tax positions | (233 | ) | (33 | ) | ||||
Stock-based compensation | 30 | 34 | ||||||
Net loss (gain) from sale of long-lived assets and investments | 24 | (2 | ) | |||||
Other items | 2 | 83 | ||||||
Net cash provided by operating activities | 305 | 112 | ||||||
Investing activities: | ||||||||
Beneficial interest collected in exchange for securitized accounts receivables | 368 | 362 | ||||||
Purchases of property, plant and equipment | (128 | ) | (125 | ) | ||||
Proceeds from sale of long lived assets | 6 | 11 | ||||||
Other investing activities | 6 | 24 | ||||||
Net cash provided by investing activities | 252 | 272 | ||||||
Financing activities: | ||||||||
Repayment of senior notes and loans and other long-term liabilities | (700 | ) | (126 | ) | ||||
Tax withholding payments made on shares and dividends | — | (52 | ) | |||||
Other financing activities | — | (11 | ) | |||||
Net cash used in financing activities | (700 | ) | (189 | ) | ||||
Translation adjustment on cash and cash equivalents | (28 | ) | (4 | ) | ||||
Net change in cash and cash equivalents | (171 | ) | 191 | |||||
Balance of cash and cash equivalents at beginning of period | 1,975 | 1,782 | ||||||
Balance of cash and cash equivalents at end of period | $ | 1,804 | $ | 1,973 | ||||
Non-cash financing and investing activities: | ||||||||
Beneficial interest obtained in exchange for securitized accounts receivables | $ | 375 | $ | 396 |
Net revenues | Cost of sales | |||||||||||||||||||||||||||
As reported | Adjustment | As revised | As reported | Adjustment | As revised | |||||||||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||||||||||
2019 | Q1 | 4,295 | (146 | ) | 4,149 | 2,440 | (146 | ) | 2,293 |
September 30, 2019 | | | December 31, 2018 | |||||
(U.S. $ in millions) | ||||||||
Property, plant and equipment, net | 24 | 92 | ||||||
Goodwill | — | 51 | ||||||
Adjustments of assets held for sale to fair value | (6 | ) | (51 | ) | ||||
Total assets of the disposal group classified as held for sale in the consolidated balance sheets | $ | 18 | $ | 92 | ||||
Three months ended March 31, 2020 | ||||||||||||||||||||
North America | Europe | International Markets | 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 | |||||||||||
Three months ended March 31, 2019 | ||||||||||||||||||||
North America | Europe | International Markets | Other | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of g oods | 1,637 | 1,259 | 468 | 187 | 3,551 | |||||||||||||||
Licensing arrangements | 31 | 5 | § | 1 | 37 | |||||||||||||||
Distribution | 379 | § | 5 | — | 383 | |||||||||||||||
Other | — | § | 48 | 128 | 176 | |||||||||||||||
$ | 2,047 | $ | 1,264 | $ | 521 | $ | 317 | $ | 4,149 | |||||||||||
§ | Represents an amount less than $1 million. |
Sales Reserves and Allowances | ||||||||||||||||||||||||||||||||
Reserves included in Accounts Receivable, net | Rebates | Medicaid and other governmental allowances | Chargebacks | Returns | Other | Total reserves included in SR&A | 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 period | 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 | |||||||||||||||||
Reserves included in Accounts Receivable, net | Rebates | Medicaid and other governmental allowances | Chargebacks | Returns | Other | Total reserves included in SR&A | Total | |||||||||||||||||||||||||
(U.S.$ in millions) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 175 | $ | 3,006 | $ | 1,361 | $ | 1,530 | $ | 638 | $ | 176 | $ | 6,711 | $ | 6,886 | ||||||||||||||||
Provisions related to sales made in current year period | 112 | 1,350 | 324 | 2,320 | 72 | 114 | 4,180 | 4,292 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods | — | — | 1 | (5 | ) | 3 | (1 | ) | (2 | ) | (2 | ) | ||||||||||||||||||||
Credits and payments | (125 | ) | (1,613 | ) | (438 | ) | (2,413 | ) | (117 | ) | (101 | ) | (4,682 | ) | (4,807 | ) | ||||||||||||||||
Translation differences | — | (6 | ) | (1 | ) | — | — | — | (7 | ) | (7 | ) | ||||||||||||||||||||
Balance at March 31, 2019 | $ | 162 | 2,737 | $ | 1,247 | $ | 1,432 | $ | 596 | $ | 188 | $ | 6,200 | $ | 6,362 | |||||||||||||||||
September 30, | December 31, | March 31, | December 31, | |||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Finished products | $ | 2,517 | $ | 2,665 | $ | 2,193 | $ | 2,504 | ||||||||
Raw and packaging materials | 1,338 | 1,328 | 1,306 | 1,183 | ||||||||||||
Products in process | 621 | 590 | 650 | 583 | ||||||||||||
Materials in transit and payments on account | 160 | 148 | 141 | 151 | ||||||||||||
Total | $ | 4,636 | $ | 4,731 | $ | 4,290 | $ | 4,422 | ||||||||
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
Machinery and equipment | $ | 5,678 | $ | 5,691 | ||||
Buildings | 3,037 | 3,143 | ||||||
Computer equipment and other assets | 2,120 | 2,097 | ||||||
Payments on account | 616 | 514 | ||||||
Land | 364 | 351 | ||||||
11,816 | 11,796 | |||||||
Less—accumulated depreciation | (5,172 | ) | (4,928 | ) | ||||
Total | $ | 6,643 | $ | 6,868 | ||||
Gross carrying amount net of | Accumulated amortization | Net carrying amount | Gross carrying amount net of impairment | Accumulated amortization | Net carrying amount | |||||||||||||||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Product rights | $ | 19,698 | $ | 20,361 | $ | 10,182 | $ | 9,565 | $ | 9,516 | $ | 10,796 | $ | 19,371 | $ | 19,663 | $ | 10,969 | $ | 10,640 | $ | 8,402 | $ | 9,023 | ||||||||||||||||||||||||
Trade names | 596 | 606 | 117 | 91 | 479 | 515 | 595 | 600 | 135 | 126 | 460 | 474 | ||||||||||||||||||||||||||||||||||||
In process research and development | 1,883 | 2,694 | — | — | 1,883 | 2,694 | 1,394 | 1,735 | — | — | 1,394 | 1,735 | ||||||||||||||||||||||||||||||||||||
Total | $ | 22,177 | $ | 23,661 | $ | 10,299 | $ | 9,656 | $ | 11,878 | $ | 14,005 | $ | 21,361 | $ | 21,998 | $ | 11,104 | $ | 10,766 | $ | 10,256 | $ | 11,232 | ||||||||||||||||||||||||
development progress and changes in | ||
the United States; and |
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. |
(a) | IPR&D assets of ; and due to: (i) $125 million related to lenalidomide (generic equivalent of Revlimid® ) due to modified competition assumptions as a result of settlements between the innovator and other generic |
Identifiable product rights of |
North America | Europe | International Markets | Other | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Balance as of January 1, 2019 (1) | $ | 11,098 | $ | 8,653 | $ | 2,479 | $ | 2,687 | $ | 24,917 | ||||||||||
Changes during the period: | ||||||||||||||||||||
Goodwill disposal | (23 | ) | (5 | ) | — | — | (28 | ) | ||||||||||||
Translation differences | 11 | (300 | ) | 57 | — | (232 | ) | |||||||||||||
Balance as of September 30, 2019 (1) | $ | 11,086 | $ | 8,348 | $ | 2,536 | $ | 2,687 | $ | 24,657 | ||||||||||
North | Europe | International Markets | Other | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Balance as of December 3 1,2019 | $ | 11,091 | $ | 8,536 | $ | 2,532 | $ | 2,687 | $ | 24,846 | ||||||||||
Changes during the period: | ||||||||||||||||||||
Translation differences | (31 | ) | (143 | ) | (182 | ) | — | (357 | ) | |||||||||||
Balance as of March 31, 2020 | $ | 11,060 | $ | 8,393 | $ | 2,350 | $ | 2,687 | $ | 24,490 | ||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||
North | Europe | | International Markets | Other activities | Total | |||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 1,674 | 1,153 | 511 | 176 | 3,514 | |||||||||||||||
Licensing arrangements | 26 | 7 | 1 | 1 | 36 | |||||||||||||||
Distribution | 351 | 1 | 176 | — | 528 | |||||||||||||||
Other | § | 2 | 48 | 136 | 186 | |||||||||||||||
$ | 2,051 | $ | 1,163 | $ | 736 | $ | 314 | | 4,264 | |||||||||||
Three months ended September 30, 2018 | ||||||||||||||||||||
North | Europe | | International Markets | Other activities | Total | |||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 1,902 | 1,210 | 525 | 166 | 3,803 | |||||||||||||||
Licensing arrangements | 29 | 1 | — | 2 | 32 | |||||||||||||||
Distribution | 333 | 1 | 149 | — | 483 | |||||||||||||||
Other | 1 | — | 52 | 158 | 211 | |||||||||||||||
$ | 2,265 | $ | 1,212 | $ | 726 | $ | 326 | $ | 4,529 | |||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||
North | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 4,997 | 3,586 | 1,505 | 566 | 10,653 | |||||||||||||||
Licensing arrangements | 92 | 22 | 3 | 4 | 121 | |||||||||||||||
Distribution | 1,080 | 1 | 491 | — | 1,572 | |||||||||||||||
Other | § | 2 | 145 | 402 | 549 | |||||||||||||||
$ | 6,169 | $ | 3,611 | $ | 2,145 | $ | 972 | $ | 12,896 | |||||||||||
Nine months ended September 30, 2018 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 5,983 | 3,956 | 1,617 | 526 | 12,082 | |||||||||||||||
Licensing arrangements | 91 | 19 | 21 | 6 | 137 | |||||||||||||||
Distribution | 984 | 7 | 456 | — | 1,447 | |||||||||||||||
Other | 1 | — | 171 | 457 | 629 | |||||||||||||||
$ | 7,059 | $ | 3,982 | $ | 2,265 | $ | 989 | $ | 14,295 | |||||||||||
Sales Reserves and Allowances | ||||||||||||||||||||||||||||||||
Reserves included in Accounts Receivable, net | Rebates | Medicaid and other governmental allowances | Chargebacks | Returns | Other | Total included in SR&A | Total | |||||||||||||||||||||||||
(U.S. | ||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 175 | $ | 3,006 | $ | 1,361 | $ | 1,530 | $ | 638 | $ | 176 | $ | 6,711 | $ | 6,886 | ||||||||||||||||
Provisions related to sales made in current year period | 334 | 4,004 | 760 | 7,196 | 195 | 308 | 12,463 | 12,797 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods | 3 | (28 | ) | (2 | ) | (1 | ) | 23 | (7 | ) | (15 | ) | (12 | ) | ||||||||||||||||||
Credits and payments | (356 | ) | (4,276 | ) | (882 | ) | (7,299 | ) | (251 | ) | (295 | ) | (13,003 | ) | (13,359 | ) | ||||||||||||||||
Translation differences | — | (14 | ) | (4 | ) | (1 | ) | (1 | ) | 1 | (19 | ) | (19 | ) | ||||||||||||||||||
Balance at Septe mber | $ | 156 | 2,692 | $ | 1,233 | $ | 1,425 | $ | 604 | $ | 183 | $ | 6,137 | $ | 6,293 | |||||||||||||||||
Net Unrealized Gains | Benefit Plans | |||||||||||||||||||
Foreign currency translation adjustments | Available-for- sale securities | Derivative financial instruments | Actuarial gains (losses) and prior service (costs) c redits | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Balance as of December 31, 2017* | $ | (1,316 | ) | $ | 1 | $ | (442 | ) | $ | (91 | ) | $ | (1,848 | ) | ||||||
Other comprehensive income (loss) before reclassifications ** | (562 | ) | — | 54 | — | (508 | ) | |||||||||||||
Amounts reclassified to the statements of income | — | — | 21 | 2 | 23 | |||||||||||||||
Net other comprehensive income (loss) before tax | (562 | ) | — | 75 | 2 | (485 | ) | |||||||||||||
Corresponding income tax | — | — | — | (2 | ) | (2 | ) | |||||||||||||
Net other comprehensive income (loss) after tax | (562 | ) | — | 75 | — | (487 | ) | |||||||||||||
Balance as of September 30, 2018 | $ | (1,878 | ) | $ | 1 | $ | (367 | ) | $ | (91 | ) | $ | (2,335 | ) | ||||||
Net Unrealized Gains | Benefit Plans | |||||||||||||||||||
Foreign currency translation adjustments | Available-for- sale securities | Derivative financial instruments | Actuarial gains (losses) and prior service (costs) c redits | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Balance as of December 31, 2018 | $ | (2,055 | ) | $ | 1 | $ | (327 | ) | $ | (78 | ) | $ | (2,459 | ) | ||||||
Other comprehensive income (loss) before reclassifications * | (28 | ) | (1 | ) | 103 | ** | 74 | |||||||||||||
Amounts reclassified to the statements of income | — | — | 21 | — | 21 | |||||||||||||||
Net other comprehensive income (loss) before tax | (28 | ) | (1 | ) | 124 | ** | 95 | |||||||||||||
Corresponding income tax | — | — | — | ** | ** | |||||||||||||||
Net other comprehensive income (loss) after tax | (28 | ) | (1 | ) | 124 | (1 | ) | 94 | ||||||||||||
Balance as of September 30, 2019 | $ | (2,083 | ) | $ | — | $ | (203 | ) | $ | (79 | ) | $ | (2,365 | ) | ||||||
Weighted average September 30, 2019 | Maturity | September 30, 2019 | December 2018 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Bank and financial institutions | — | — | $ | — | $ | 2 | ||||||||||
Revolving Credit Facility | LIBOR+1.6 | % | — | 100 | — | |||||||||||
Convertible debentures | 0.25 | % | 2026 | 514 | 514 | |||||||||||
Current maturities of long-term liabilities | 2,516 | 1,700 | ||||||||||||||
Total short-term debt | $ | 3,130 | $ | 2,216 | ||||||||||||
Weighted average interest rate as of September 30, 2019 | Maturity | September 30, 2019 | December 31, 2018 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Senior notes EUR 1,660 million | 0.38% | 2020 | $ | 1,816 | $ | 1,897 | ||||||||||
Senior notes EUR 1,500 million | 1.13 % | 2024 | 1,633 | 1,707 | ||||||||||||
Senior notes EUR 1,300 million | 1.25% | 2023 | 1,416 | 1,480 | ||||||||||||
Senior notes EUR 900 million | 4.50% | 2025 | 985 | 1,029 | ||||||||||||
Senior notes EUR 750 million | 1.63% | 2028 | 814 | 850 | ||||||||||||
Senior notes EUR 700 million | 3.25% | 2022 | 766 | 801 | ||||||||||||
Senior notes EUR 700 million | 1.88% | 2027 | 764 | 798 | ||||||||||||
Senior notes USD 3,500 million | 3.15% | 2026 | 3,494 | 3,493 | ||||||||||||
Senior notes USD 3,000 million | 2.20% | 2021 | 2,998 | 2,997 | ||||||||||||
Senior notes USD 3,000 million | 2.80% | 2023 | 2,994 | 2,993 | ||||||||||||
Senior notes USD 1,556 million (1) | 1.70% | 2019 | — | 1,700 | ||||||||||||
Senior notes USD 2,000 million | 4.10% | 2046 | 1,985 | 1,985 | ||||||||||||
Senior notes USD 1,250 million | 6.00% | 2024 | 1,250 | 1,250 | ||||||||||||
Senior notes USD 1,250 million | 6.75% | 2028 | 1,250 | 1,250 | ||||||||||||
Senior notes USD 844 million | 2.95% | 2022 | 857 | 860 | ||||||||||||
Senior notes USD 789 million | 6.15% | 2036 | 782 | 782 | ||||||||||||
Senior notes USD 700 million | 2.25% | 2020 | 700 | 700 | ||||||||||||
Senior notes USD 613 million | 3.65% | 2021 | 619 | 621 | ||||||||||||
Senior notes USD 588 million | 3.65% | 2021 | 587 | 587 | ||||||||||||
Senior notes CHF 350 million | 0.50% | 2022 | 354 | 356 | ||||||||||||
Senior notes CHF 350 million | 1.00% | 2025 | 354 | 356 | ||||||||||||
Fair value hedge accounting adjustments | — | (9 | ) | |||||||||||||
Total senior notes | 26,417 | 28,483 | ||||||||||||||
Other long-term debt | 0.96% | 2026 | 1 | 12 | ||||||||||||
Less current maturities | (2,516 | ) | (1,700 | ) | ||||||||||||
Derivative instruments | — | 9 | ||||||||||||||
Less debt issuance costs | (89 | ) | (104 | ) | ||||||||||||
Total senior notes and loans | $ | 23,812 | $ | 26,700 | ||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||||
Weighted average interest rate as of March 31, 2020 | Maturity | |||||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Convertible debentures | 0.25 | % | 2026 | $ | 514 | $ | 514 | |||||||||
Current maturities of long-term liabilities | 1,116 | 1,831 | ||||||||||||||
Total short-term debt | $ | 1,630 | $ | 2,345 | ||||||||||||
Weighted average interest rate as of March 31, 2020 | Maturity | March 31, | December 31, 2019 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Senior notes EUR 1,010 million | 0.38 | % | 2020 | $ | 1,116 | $ | 1,131 | |||||||||
Senior notes EUR 1,500 million | 1.13 | % | 2024 | 1,651 | 1,673 | |||||||||||
Senior notes EUR 1,300 million | 1.25 | % | 2023 | 1,432 | 1,451 | |||||||||||
Senior notes EUR 1,000 million | 6.00 | % | 2025 | 1,105 | 1,120 | |||||||||||
Senior notes EUR 900 million | 4.50 | % | 2025 | 994 | 1,008 | |||||||||||
Senior notes EUR 750 million | 1.63 | % | 2028 | 822 | 833 | |||||||||||
Senior notes EUR 700 million | 3.25 | % | 2022 | 773 | 784 | |||||||||||
Senior notes EUR 700 million | 1.88 | % | 2027 | 771 | 782 | |||||||||||
Senior notes USD 3,500 million | 3.15 | % | 2026 | 3,494 | 3,494 | |||||||||||
Senior notes USD 1,475 million | 2.20 | % | 2021 | 1,474 | 1,474 | |||||||||||
Senior notes USD 3,000 million | 2.80 | % | 2023 | 2,995 | 2,995 | |||||||||||
Senior notes USD 2,000 million | 4.10 | % | 2046 | 1,985 | 1,985 | |||||||||||
Senior notes USD 1,250 million | 6.00 | % | 2024 | 1,250 | 1,250 | |||||||||||
Senior notes USD 1,250 million | 6.75 | % | 2028 | 1,250 | 1,250 | |||||||||||
Senior notes USD 1,000 million | 7.13 | % | 2025 | 1,000 | 1,000 | |||||||||||
Senior notes USD 844 million | 2.95 | % | 2022 | 855 | 856 | |||||||||||
Senior notes USD 789 million | 6.15 | % | 2036 | 783 | 782 | |||||||||||
Senior notes USD 700 million (1) | 2.25 | % | 2020 | — | 700 | |||||||||||
Senior notes USD 613 million | 3.65 | % | 2021 | 618 | 618 | |||||||||||
Senior notes USD 588 million | 3.65 | % | 2021 | 587 | 587 | |||||||||||
Senior notes CHF 350 million | 0.50 | % | 2022 | 366 | 361 | |||||||||||
Senior notes CHF 350 million | 1.00 | % | 2025 | 366 | 362 | |||||||||||
Total senior notes | 25,687 | 26,496 | ||||||||||||||
Other long-term debt | 1.14 | % | 2026 | 1 | 1 | |||||||||||
Less current maturities | (1,116 | ) | (1,831 | ) | ||||||||||||
Less debt issuance costs | (98 | ) | (103 | ) | ||||||||||||
Total senior notes and loans | $ | 24,473 | $ | 24,562 | ||||||||||||
(1) | During the first $ |
September 30, 2019 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Money markets | $ | 176 | $ | — | $ | — | $ | 176 | ||||||||
Cash, deposits and other | 1,065 | — | — | 1,065 | ||||||||||||
Investment in securities: | ||||||||||||||||
Equity securities | 45 | — | — | 45 | ||||||||||||
Other, mainly debt securities | 2 | — | 12 | 14 | ||||||||||||
Derivatives: | ||||||||||||||||
Asset derivatives—options and forward contracts | — | 40 | — | 40 | ||||||||||||
Asset derivatives—cross-currency swaps | 105 | — | 105 | |||||||||||||
Liability derivatives—options and forward contracts | — | (18 | ) | — | (18 | ) | ||||||||||
Contingent consideration* | — | — | (430 | ) | (430 | ) | ||||||||||
Total | $ | 1,288 | $ | 127 | $ | (418 | ) | $ | 997 | |||||||
December 31, 2018 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Money markets | $ | 203 | $ | — | $ | — | $ | 203 | ||||||||
Cash, deposits and other | 1,579 | — | — | 1,579 | ||||||||||||
Investment in securities: | ||||||||||||||||
Equity securities | 51 | — | — | 51 | ||||||||||||
Other, mainly debt securities | 2 | — | 10 | 12 | ||||||||||||
Derivatives: | ||||||||||||||||
Asset derivatives—options and forward contracts | — | 18 | — | 18 | ||||||||||||
Asset derivatives—interest rate and cross-currency swaps | — | 58 | — | 58 | ||||||||||||
Liability derivatives—options and forward contracts | — | (26 | ) | — | (26 | ) | ||||||||||
Liability derivatives—interest rate and cross-currency swaps | — | (50 | ) | — | (50 | ) | ||||||||||
Contingent consideration* | — | — | (507 | ) | (507 | ) | ||||||||||
Total | $ | 1,835 | $ | — | $ | (497 | ) | $ | 1,338 | |||||||
Nine months ended September 30, 2019 | ||||
(U.S. $ in millions) | ||||
Fair value at the beginning of the period | $ | (497 | ) | |
Revaluation of debt securities | 3 | |||
Adjustments to provisions for contingent consideration: | ||||
Actavis Generics transaction | 96 | |||
Eagle transaction | (100 | ) | ||
Settlement of contingent consideration: | ||||
Eagle transaction | 80 | |||
Fair value at the end of the period | $ | (418 | ) | |
Fair value* | ||||||||
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
Senior notes included under senior notes and loans | $ | 19,097 | $ | 23,560 | ||||
Senior notes and convertible senior debentures included under short-term debt | 2,933 | 2,140 | ||||||
Total | $ | 22,030 | $ | 25,700 | ||||
a. Foreign exchange risk management: |
c. Derivative instruments notional amounts: |
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
Cross-currency swap — cash flow hedge | $ | 588 | $ | 588 | ||||
Cross-currency swap—net investment hedge | 1,000 | 1,000 | ||||||
Interest rate swap — fair value hedge | — | 500 | ||||||
$ | 1,588 | $ | 2,088 | |||||
March 31, | December 31, | |||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Cross-currency swap—net investment hedge | $ | — | $ | 1,000 | ||||
d. | Derivative instrument outstanding: |
Fair value | Fair value | |||||||||||||||||||||||||||||||
Designated as hedging instruments | | Not designated as hedging instruments | Designated as hedging instruments | Not designated as hedging instruments | ||||||||||||||||||||||||||||
September 30, 2019 | | December 31, 2018 | September 30, 2019 | | December 31, 2018 | March 31, 2020 | December 31, 2019 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||
Reported under | (U.S. $ in millions) | (U.S. $ in millions) | ||||||||||||||||||||||||||||||
Asset derivatives: | ||||||||||||||||||||||||||||||||
Other current assets: | ||||||||||||||||||||||||||||||||
Option and forward contracts | $ | — | $ | — | $ | 40 | $ | 18 | $ | — | $ | — | $ | 104 | $ | 32 | ||||||||||||||||
Other non-current assets: | ||||||||||||||||||||||||||||||||
Cross-currency swaps — cash flow hedge | 103 | 58 | — | — | ||||||||||||||||||||||||||||
Cross-currency swaps— net investment hedge | 2 | — | — | — | ||||||||||||||||||||||||||||
Liability derivatives: | ||||||||||||||||||||||||||||||||
Other current liabilities: | ||||||||||||||||||||||||||||||||
Cross-currency swaps—net investment hedge | — | (22 | ) | — | — | |||||||||||||||||||||||||||
Option and forward contracts | — | — | (18 | ) | (26 | ) | — | — | (94 | ) | (41 | ) | ||||||||||||||||||||
Other taxes and long-term liabilities: | ||||||||||||||||||||||||||||||||
Cross-currency swaps — net investment hedge | — | (41 | ) | — | — | |||||||||||||||||||||||||||
Senior notes and loans: | ||||||||||||||||||||||||||||||||
Interest rate swaps — fair value hedge | — | (9 | ) | — | — |
Financial expenses, net | Other comprehensive income (loss) | |||||||||||||||
Three months ended, | Three months ended, | |||||||||||||||
March 31, 2020 | March 31, 2019 | March 31, 2020 | March 31, 2019 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 224 | $ | 218 | $ | (530 | ) | $ | 94 | |||||||
Cross-currency swaps—cash flow hedge (1) | — | (1 | ) | — | (20 | ) | ||||||||||
Cross-currency swaps—net investment hedge (2) | (2 | ) | (7 | ) | (21 | ) | $ | (20 | ) | |||||||
Interest rate swaps—fair value hedge (3) | — | 1 | — | — |
Financial expenses, net | Other comprehensive income | |||||||||||||||
Three months ended, | Three months ended, | |||||||||||||||
September 30, 2019 | September 30, 2018** | September 30, 2019 | September 30, 2018** | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 211 | $ | 229 | $ | 53 | $ | 84 | ||||||||
Cross-currency swaps — cash flow hedge (1) | (1 | ) | (1 | ) | (33 | ) | (4 | ) | ||||||||
Cross-currency swaps — net investment hedge (2) | (7 | ) | (6 | ) | (39 | ) | $ | (7 | ) | |||||||
Interest rate swaps — fair value hedge (3) | $ | * | $ | * | $ | — | $ | — |
Financial expenses, net | Other comprehensive income | |||||||||||||||
Nine months ended, | Nine months ended, | |||||||||||||||
September 2019 | September 2018** | September 2019 | September 2018** | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 635 | $ | 736 | $ | (117 | ) | $ | 502 | |||||||
Cross-currency swaps—cash flow hedge (1) | (2 | ) | (1 | ) | (49 | ) | (18 | ) | ||||||||
Cross-currency swaps — net investment hedge (2) | (22 | ) | (22 | ) | (46 | ) | $ | (36 | ) | |||||||
Interest rate swaps — fair value hedge (3) | $ | 2 | $ | * | $ | — | $ | — |
Financial expenses, net | Net revenues | |||||||||||||||
Three months ended, | Three months ended, | |||||||||||||||
September 2019 | September 2018 | September 2019 | September 30, 2018 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | 211 | 229 | (4,264 | ) | (4,529 | ) | ||||||||||
Option and forward contracts (4) | $ | (35 | ) | $ | (6 | ) | $ | — | $ | — | ||||||
Option and forward contracts Economic hedge (5) | — | — | (4 | ) | 1 | |||||||||||
Financial expenses, net | Net revenues | |||||||||||||||
Nine months ended, | Nine months ended, | |||||||||||||||
September 30, 2019 | September 30, 2018 | September 30, 2019 | September 2018 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | 635 | 736 | (12,896 | ) | (14,295 | ) | ||||||||||
Option and forward contracts (4) | $ | (42 | ) | $ | (11 | ) | $ | — | $ | — | ||||||
Option and forward contracts Economic hedge (5) | — | — | * | * |
Financial expenses, net | Net revenues | |||||||||||||||
Three months ended, | Three months ended, | |||||||||||||||
March 31, 2020 | March 31, 2019 | March 31, 2020 | March 31, 2019 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 224 | $ | 218 | $ | (4,357 | ) | $ | (4,149 | ) | ||||||
Option and forward contracts (4) | 24 | (42 | ) | — | — | |||||||||||
Option and forward contracts economic hedge (5) | — | — | (60 | ) | — |
(1) | With respect to cross-currency swap agreements, Teva recognized gains which mainly reflect the differences between the fixed interest rate and the floating interest rate. In the fourth quarter of 2019, Teva terminated cross-currency swap agreements against its outstanding 3.65% senior notes maturing in November 2021. The settlement of these transactions resulted in cash proceeds of $95 million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses-net over the life of the debt as additional interest expense. |
(2) | In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500 million maturing in 2020. These cross currency swaps were designated as a net investment hedge of Teva’s foreign subsidiaries euro denominated net assets, in order to reduce the risk of adverse exchange rate fluctuations. With respect to these cross currency swap agreements, Teva recognized gains which mainly reflect the differences between the float-for-float interest rates paid and received. expired . The settlement of these transactions resulted in cash proceeds of $3 million. |
(3) | In the fourth quarter of 2016, Teva entered into an interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. With respect to this interest rate swap agreement, Teva recognized a loss which mainly reflects the differences between the fixed interest rate and thefloatinginterestrate. In the expense.third quarter of notes and loans, are amortized under financial expenses-net over the life of the debt as additional interest |
(4) | Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial - net. |
(5) | Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on flows. |
Matured |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Impairments of long-lived tangible assets (1) | $ | 28 | $ | 2 | $ | 96 | $ | 255 | ||||||||
Contingent consideration | 51 | 29 | 4 | 84 | ||||||||||||
Restructuring | 61 | 88 | 140 | 442 | ||||||||||||
Other | 21 | 20 | 24 | 53 | ||||||||||||
Total | $ | 160 | $ | 139 | $ | 263 | $ | 834 | ||||||||
Three months ended September 30, | ||||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | 49 | $ | 62 | ||||
Other | 11 | 26 | ||||||
Total | $ | 61 | $ | 88 | ||||
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | 105 | $ | 380 | ||||
Other | 34 | 62 | ||||||
Total | $ | 140 | $ | 442 | ||||
Employee termination costs | Other | Total | ||||||||||
(U.S. $ in millions ) | ||||||||||||
Balance as of January 1, 2019 | $ | (204 | ) | $ | (29 | ) | $ | (233 | ) | |||
Provision | (105 | ) | (34 | ) | (140 | ) | ||||||
Utilization and other* | 108 | 56 | 164 | |||||||||
Balance as of September 30, 2019 | $ | (201 | ) | $ | (7 | ) | $ | (208 | ) | |||
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Impairments of long-lived tangible assets (1) | $ | 75 | $ | 20 | ||||
Contingent consideration | 6 | (71 | ) | |||||
Restructuring | 39 | 32 | ||||||
Other | — | 20 | ||||||
Total | $ | 121 | $ | 1 | ||||
(1) | Including impairments related to exit and disposal activities. |
Three months ended | ||||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | 33 | $ | 20 | ||||
Other | 6 | 12 | ||||||
Total | $ | 39 | $ | 32 | ||||
Employee termination costs | 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 3 1 , 2020 | $ | (172 | ) | $ | (7 | ) | $ | (179 | ) | |||
* | Includes adjustments for foreign currency translation. |
Net Unrealized Gains (Losses) | Benefit Plans | |||||||||||||||||||
Foreign currency translation adjustments | Available-for- sale securities | Derivative financial instruments | Actuarial gains (losses) and prior service (costs) credits | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Balance as of December 31, 2019 | $ | (1,794 | ) | $ | — | $ | (420 | ) | $ | (98 | ) | $ | (2,312 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (570 | ) | — | 22 | — | (548 | ) | |||||||||||||
Amounts reclassified to the statements of income | — | — | 8 | — | 8 | |||||||||||||||
Net other comprehensive income (loss) before tax | (570 | ) | — | 30 | — | (540 | ) | |||||||||||||
Net other comprehensive income (loss) after tax* | (570 | ) | — | 30 | — | (540 | ) | |||||||||||||
Balance as of March 31, 2020 | $ | (2,364 | ) | $ | — | $ | (390 | ) | $ | (98 | ) | $ | (2,852 | ) | ||||||
* | Amounts do not include a $10 million loss from foreign currency translation adjustments attributable to non-controlling interests. |
Net Unrealized Gains (Losses) | Benefit Plans | |||||||||||||||||||
Foreign currency translation adjustments | Available-for- sale securities | Derivative financial instruments | Actuarial gains (losses) and prior service (costs) credits | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Balance as of December 31, 2018 | $ | (1,878 | ) | $ | 1 | $ | (504 | ) | $ | (78 | ) | $ | (2,459 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 53 | 40 | — | 93 | ||||||||||||||||
Amounts reclassified to the statements of income | — | — | 7 | — | 7 | |||||||||||||||
Net other comprehensive income (loss) before tax | 53 | — | 47 | — | 100 | |||||||||||||||
Net other comprehensive income (loss) after tax* | 53 | — | 47 | 100 | ||||||||||||||||
Balance as of March 31, 2019 | $ | (1,825 | ) | $ | 1 | $ | (457 | ) | $ | (78 | ) | $ | (2,359 | ) | ||||||
* | Amounts do not include a $6 million loss from foreign currency translation adjustments attributable to non-controlling interests. |
(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. |
Three months ended September 30, 2019 | ||||||||||||
North America | Europe | International | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 2,051 | $ | 1,163 | $ | 736 | ||||||
Gross profit | 1,048 | 662 | 295 | |||||||||
R&D expenses | 156 | 63 | 21 | |||||||||
S&M expenses | 219 | 206 | 114 | |||||||||
G&A expenses | 112 | 56 | 32 | |||||||||
Other income | (5 | ) | (4 | ) | (1 | ) | ||||||
Segment profit | $ | 565 | $ | 341 | $ | 130 | ||||||
Three months ended September 30 , 2018 | ||||||||||||
North America | Europe | International | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 2,265 | $ | 1,212 | $ | 726 | ||||||
Gross profit | 1,196 | 676 | 301 | |||||||||
R&D expenses | 158 | 62 | 21 | |||||||||
S&M expenses | 265 | 242 | 120 | |||||||||
G&A expenses | 128 | 74 | 37 | |||||||||
Other (income) expense | (4 | ) | 1 | — | ||||||||
Segment profit | $ | 649 | $ | 297 | $ | 123 | ||||||
Nine months ended September 30, 2019 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 6,169 | $ | 3,611 | $ | 2,145 | ||||||
Gross profit | 3,155 | 2,066 | 877 | |||||||||
R&D expenses | 497 | 199 | 66 | |||||||||
S&M expenses | 756 | 637 | 348 | |||||||||
G&A expenses | 342 | 175 | 102 | |||||||||
Other income | (6 | ) | (5 | ) | (2 | ) | ||||||
Segment profit | $ | 1,566 | $ | 1,060 | $ | 363 | ||||||
Nine months ended September 30, 2018 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 7,059 | $ | 3,982 | $ | 2,265 | ||||||
Gross profit | 3,778 | 2,195 | 942 | |||||||||
R&D expenses | 528 | 208 | 70 | |||||||||
S&M expenses | 813 | 725 | 384 | |||||||||
G&A expenses | 357 | 243 | 115 | |||||||||
Other income | (206 | ) | (1 | ) | (11 | ) | ||||||
Segment profit | $ | 2,286 | $ | 1,020 | $ | 384 |
Three months ended March 31, | ||||||||||||
2020 | ||||||||||||
North | 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 | ||||||
Three months ended March 31, | ||||||||||||
2019 | ||||||||||||
North | Europe | International Markets * | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 2,047 | $ | $ | 521 | |||||||
Gross profit | 1,039 | 730 | 269 | |||||||||
R&D expenses | 165 | 66 | 22 | |||||||||
S&M expenses | 268 | 215 | 115 | |||||||||
G&A expenses | 112 | 48 | 36 | |||||||||
Other (income) expense | (4 | ) | (1 | ) | — | |||||||
Segment profit | $ | 498 | $ | 403 | $ | 97 | ||||||
* | The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c for additional information. |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
North America profit | $ | 565 | $ | 649 | $ | 1,566 | $ | 2,286 | ||||||||
Europe profit | 341 | 297 | 1,060 | 1,020 | ||||||||||||
International Markets profit | 130 | 123 | 363 | 384 | ||||||||||||
Total segment s profit | 1,036 | 1,069 | 2,989 | 3,690 | ||||||||||||
Profit of other activities | 16 | 35 | 92 | 87 | ||||||||||||
1,051 | 1,104 | 3,081 | 3,777 | |||||||||||||
Amounts not allocated to segments: | ||||||||||||||||
Amortization | 255 | 297 | 823 | 909 | ||||||||||||
Other assets impairments, restructuring and other items | 160 | 139 | 263 | 834 | ||||||||||||
Goodwill impairment | — | — | — | 300 | ||||||||||||
Intangible asset impairments | 177 | 519 | 1,206 | 1,246 | ||||||||||||
G ain on divestitures, net of divestitures related costs | (3 | ) | (31 | ) | (12 | ) | (114 | ) | ||||||||
Other R&D expenses (income) | (7 | ) | 60 | (7 | ) | 82 | ||||||||||
Costs related to regulatory actions taken in facilities | 11 | 1 | 28 | 6 | ||||||||||||
Legal settlements and loss contingencies | 468 | 19 | 1,171 | (1,239 | ) | |||||||||||
Other unallocated amounts | 72 | 84 | 201 | 226 | ||||||||||||
Consolidated operating income (loss) | (81 | ) | 16 | (591 | ) | 1,527 | ||||||||||
Financial expenses, net | 211 | 229 | 635 | 736 | ||||||||||||
Consolidated income (loss) before income taxes | $ | (292 | ) | $ | (213 | ) | $ | (1,226 | ) | $ | 791 |
Three months March 31, | ||||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
North America profit | $ | 550 | $ | 498 | ||||
Europe profit | 502 | 403 | ||||||
International Markets profit | 156 | 97 | ||||||
Total reportable segments profit | 1,208 | 998 | ||||||
Profit of other activities | 36 | 21 | ||||||
Total segments profit | 1,244 | 1,019 | ||||||
Amounts not allocated to segments: | ||||||||
Amortization | 258 | 283 | ||||||
Other assets impairments, restructuring and other items | 121 | 1 | ||||||
Intangible asset impairments | 649 | 469 | ||||||
Legal settlements and loss contingencies | (25 | ) | 57 | |||||
Other unallocated amounts | 49 | 75 | ||||||
Consolidated operating income (loss) | 191 | 134 | ||||||
Financial expenses, net | 224 | 218 | ||||||
Consolidated income (loss) before income taxes | $ | (33 | ) | $ | (84 | ) | ||
North America | Three months ended March 31, | |||||||||||||||
2020 | 2019 | |||||||||||||||
Three months ended September 30, | (U.S. $ in millions) | |||||||||||||||
2019 | 2018 | |||||||||||||||
(U.S. $ in millions) | ||||||||||||||||
No rth Ameri ca | ||||||||||||||||
Generic products | $ | 914 | $ | 922 | $ | 952 | $ | 966 | ||||||||
AJOVY | 29 | 20 | ||||||||||||||
AUSTEDO | 122 | 74 | ||||||||||||||
BENDEKA/TREANDA | 105 | 122 | ||||||||||||||
COPAXONE | 271 | 463 | 198 | 208 | ||||||||||||
BENDEKA/TREANDA | 124 | 161 | ||||||||||||||
ProAir* | 71 | 107 | 59 | 59 | ||||||||||||
QVAR | 60 | 36 | 45 | 64 | ||||||||||||
AJOVY | 25 | — | ||||||||||||||
AUSTEDO | 105 | 62 | ||||||||||||||
Anda | 351 | 333 | 426 | 379 | ||||||||||||
Other | 131 | 182 | 146 | 155 | ||||||||||||
Total | $ | 2,051 | $ | 2,265 | $ | 2,082 | $ | 2,047 | ||||||||
* | Does not include |
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
North America | ||||||||
Generic products | $ | 2,826 | $ | 2,957 | ||||
COPAXONE | 753 | 1,403 | ||||||
BENDEKA/TREANDA | 353 | 502 | ||||||
ProAir* | 194 | 352 | ||||||
QVAR | 183 | 173 | ||||||
AJOVY | 68 | — | ||||||
AUSTEDO | 276 | 136 | ||||||
Anda | 1,080 | 984 | ||||||
Other | 436 | 554 | ||||||
Total | $ | 6,169 | $ | 7,059 | ||||
Europe | Three months March 31, | |||||||||||||||
2020 | 2019 | |||||||||||||||
Three months ended September 30, | (U.S. $ in millions) | |||||||||||||||
2019 | 2018 | |||||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Europe | ||||||||||||||||
Generic products | $ | 836 | $ | 845 | $ | 1,032 | $ | 919 | ||||||||
COPAXONE | 106 | 124 | 109 | 114 | ||||||||||||
Respiratory products | 87 | 93 | 106 | 91 | ||||||||||||
AJOVY | 4 | — | ||||||||||||||
Other | 134 | 150 | 151 | 140 | ||||||||||||
Total | $ | 1,163 | $ | 1,212 | $ | 1,402 | $ | 1,264 | ||||||||
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
Europe | ||||||||
Generic products | $ | 2,599 | $ | 2,749 | ||||
COPAXONE | 327 | 417 | ||||||
Respiratory products | 267 | 312 | ||||||
Other | 417 | 504 | ||||||
Total | $ | 3,611 | $ | 3,982 | ||||
Three months ended September 30, | ||||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
International markets | ||||||||
Generic products | $ | 474 | $ | 498 | ||||
COPAXONE | 20 | 14 | ||||||
Distribution | 176 | 149 | ||||||
Other | 66 | 65 | ||||||
Total | $ | 736 | $ | 726 | ||||
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
International markets | ||||||||
Generic products | $ | 1,404 | $ | 1,523 | ||||
COPAXONE | 46 | 52 | ||||||
Distribution | 491 | 456 | ||||||
Other | 204 | 233 | ||||||
Total | $ | 2,145 | $ | 2,265 | ||||
International markets * | Three months March 31, | |||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 449 | $ | 441 | ||||
COPAXONE | 12 | 13 | ||||||
Other | 104 | 67 | ||||||
Total | $ | 565 | $ | 521 | ||||
* | The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c for additional information. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Gain | $ | 3 | 31 | $ | 12 | 114 | ||||||||||
Section 8 and similar payments (2) | — | 1 | — | 195 | ||||||||||||
Gain (loss) on sale of assets | 3 | 1 | (1 | ) | 9 | |||||||||||
Other, net | 8 | 2 | 19 | 16 | ||||||||||||
Total other income | $ | 14 | $ | 35 | $ | 29 | $ | 334 |
March 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Money markets | $ | 260 | $ | — | $ | — | $ | 260 | ||||||||
Cash, deposits and other | 1,544 | — | — | 1,544 | ||||||||||||
Investment in securities: | ||||||||||||||||
Equity securities | 31 | — | — | 31 | ||||||||||||
Other, mainly debt securities | 2 | — | 12 | 14 | ||||||||||||
Derivatives: | ||||||||||||||||
Asset derivatives—options and forward contracts | — | 104 | — | 104 | ||||||||||||
Liability derivatives—options and forward contracts | — | (94 | ) | — | (94 | ) | ||||||||||
Contingent consideration* | — | — | (435 | ) | (435 | ) | ||||||||||
Total | $ | 1,837 | $ | 10 | $ | (423 | ) | $ | 1,424 | |||||||
December 31, 2019 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Money markets | $ | 577 | $ | — | $ | — | $ | 577 | ||||||||
Cash, deposits and other | 1,398 | — | — | 1,398 | ||||||||||||
Investment in securities: | ||||||||||||||||
Equity securities | 42 | — | — | 42 | ||||||||||||
Other, mainly debt securities | 2 | — | 12 | 14 | ||||||||||||
Derivatives: | ||||||||||||||||
Asset derivatives—options and forward contracts | — | 32 | — | 32 | ||||||||||||
Liability derivatives—options and forward contracts | — | (41 | ) | — | (41 | ) | ||||||||||
Liability derivatives—interest rate and cross-currency swaps | — | (22 | ) | — | (22 | ) | ||||||||||
Contingent consideration* | — | — | (460 | ) | (460 | ) | ||||||||||
Total | $ | 2,019 | $ | (31 | ) | $ | (448 | ) | $ | 1,540 | ||||||
Three months ended September 30, | Nine months ended September 30, | |||||||
2019 | ||||||||
(U.S. $ in millions) | ||||||||
Operating lease cost: | ||||||||
Fixed payments and variable payments that depend on an index or rate | $ | 45 | $ | 123 | ||||
Variable lease payments not included in the lease liability | — | 4 | ||||||
Short-term lease cost | 1 | 4 | ||||||
Total operating lease cost | $ | 46 | $ | 131 | ||||
Nine months ended | |||
September 30, 2019 | |||
(U.S. $ in millions) | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 130 | |
Right-of-use assets obtained in exchange for lease obligations(non-cash): | |||
Operating leases | $ | 70 |
Three months ended March 31, 2020 | ||||
(U.S. $ in millions) | ||||
Fair value at the beginning of the period | $ | (448 | ) | |
Adjustments to provisions for contingent consideration: | ||||
Actavis Generics transaction | (5 | ) | ||
Eagle transaction | (1 | ) | ||
Settlement of contingent consideration: | ||||
Eagle transaction | 31 | |||
Fair value at the end of the period | $ | (423 | ) | |
September 30, 2019 | ||||
(U.S. $ in millions) | ||||
Operating leases: | $ | |||
Operating lease ROU assets | 468 | |||
Other current liabilities | 116 | |||
Operating lease liabilities | 394 | |||
Total operating lease liabilities | $ | 510 | | |
September 30, 2019 | ||||
Weighted average remaining lease term | ||||
Operating leases | 7.4 years | |||
Weighted average discount rate | ||||
Operating leases | 5.9 | % |
Fair value* | ||||||||
March 31, | December 31, | |||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Senior notes included under senior notes and loans | $ | 21,960 | $ | 22,686 | ||||
Senior notes and convertible senior debentures included under short-term debt | 1,583 | 2,318 | ||||||
Total | $ | 23,543 | $ | 25,004 | ||||
September 30, 2019 | ||||
(U.S. $ in millions) | ||||
2019 (excluding the nine months ended September 30, 2019) | $ | 38 | ||
2020 | 128 | |||
2021 | 98 | |||
2022 | 73 | |||
2023 | 51 | |||
2024 and thereafter | 253 | |||
Total operating lease payments | $ | 641 | ||
Less: imputed interest | 131 | |||
Present value of lease liabilities | $ | 510 | ||
December 31, 2018 | ||||
(U.S. $ in millions) | ||||
2019 | $ | 193 | ||
2020 | 154 | |||
2021 | 118 | |||
2022 | 91 | |||
2023 | 66 | |||
2024 and thereafter | 283 | |||
Total lease payments | $ | 905 | ||
* | Based on quoted market price. See note 7 for carrying value. |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Percentage of Net Revenues | Percentage Change | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
September 30, | Percentage of Net Revenues Three Months Ended March 31, | Percentage Change | ||||||||||||||||||||||
2019 | 2018 | 2019 - 2018 | 2020 | 2019 | 2020 - 2019 | |||||||||||||||||||
% | % | % | % | % | % | |||||||||||||||||||
Net revenues | 100 | 100 | (6 | ) | 100 | 100 | 5 | |||||||||||||||||
Gross profit | 43 | 44 | (7 | ) | 47 | 45 | 11 | |||||||||||||||||
Research and development expenses | 6 | 7 | (23 | ) | 5 | 6 | (15 | ) | ||||||||||||||||
Selling and marketing expenses | 14 | 15 | (15 | ) | 14 | 16 | (5 | ) | ||||||||||||||||
General and administrative expenses | 7 | 7 | (8 | ) | 7 | 7.0 | 4 | |||||||||||||||||
Intangible assets impairment | 4 | 11 | (66 | ) | ||||||||||||||||||||
Intangible assets impairments | 15 | 11 | 38 | |||||||||||||||||||||
Other assets impairments, restructuring and other items | 4 | 3 | 15 | 3 | § | NA | ||||||||||||||||||
Legal settlements and loss contingencies | 11 | § | NA | (1 | ) | 1 | NA | |||||||||||||||||
Other income | § | (1 | ) | — | ||||||||||||||||||||
Operating income (loss) | (2 | ) | § | — | ||||||||||||||||||||
Other income (loss) | § | § | 115 | |||||||||||||||||||||
Operating income | 4 | 3 | 43 | |||||||||||||||||||||
Financial expenses, net | 5 | 5 | (8 | ) | 5 | 5 | 3 | |||||||||||||||||
Income (loss) before income taxes | (7 | ) | (5 | ) | 37 | (1 | ) | (2 | ) | (61 | ) | |||||||||||||
Income taxes (benefit) | § | (1 | ) | — | (1 | ) | § | — | ||||||||||||||||
Share in losses (income) of associated companies, net | § | § | NA | |||||||||||||||||||||
Share in losses (profits) of associated companies, net | § | § | NA | |||||||||||||||||||||
Net income attributable to non-controlling interests | § | § | NA | (1 | ) | § | NA | |||||||||||||||||
Net income (loss) attributable to Teva | (7 | ) | (5 | ) | 51 | 2 | (3 | ) | — | |||||||||||||||
Dividends on preferred shares | — | 1 | NA | |||||||||||||||||||||
Net income (loss) attributable to ordinary shareholders | (7 | ) | (6 | ) | 15 | 2 | (3 | ) | — |
§ | Represents an amount less than 0.5%. |
Three months ended September 30, | Three months ended March 31, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | (U.S. $ in millions / % of Segment Revenues) | |||||||||||||||||||||||||||||||
Revenues | $ | 2,051 | 100 | % | $ | 2,265 | 100.0 | % | $ | 2,082 | 100 | % | $ | 2,047 | 100.0 | % | ||||||||||||||||
Gross profit | 1,048 | 51.1 | % | 1,196 | 52.8 | % | 1,062 | 51.0 | % | 1,039 | 50.8 | % | ||||||||||||||||||||
R&D expenses | 156 | 7.6 | % | 158 | 7.0 | % | 146 | 7.0 | % | 165 | 8.1 | % | ||||||||||||||||||||
S&M expenses | 219 | 10.7 | % | 265 | 11.7 | % | 251 | 12.1 | % | 268 | 13.1 | % | ||||||||||||||||||||
G&A expenses | 112 | 5.5 | % | 128 | 5.7 | % | 118 | 5.6 | % | 112 | 5.5 | % | ||||||||||||||||||||
Other (income) expense | (5 | ) | § | (4 | ) | § | (2 | ) | § | (4 | ) | § | ||||||||||||||||||||
Segment profit* | $ | 565 | | 27.5 | % | $ | 649 | | 28.7 | % | $ | 550 | 26.4 | % | $ | 498 | 24.3 | % | ||||||||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than 0.5%. |
Three months ended September 30, | Percentage Change | Three months ended March 31, | Percentage Change | |||||||||||||||||||||
2019 | 2018 | 2019-2018 | 2020 | 2019 | 2019-2020 | |||||||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||||||||||
Generic products | $ | 914 | $ | 922 | (1 | %) | $ | 952 | $ | 966 | (1 | %) | ||||||||||||
COPAXONE | 271 | 463 | (41 | %) | ||||||||||||||||||||
BENDEKA/TREANDA | 124 | 161 | (23 | %) | ||||||||||||||||||||
ProAir ® * | 71 | 107 | (34 | %) | ||||||||||||||||||||
QVAR | 60 | 36 | 68 | % | ||||||||||||||||||||
AJOVY | 25 | — | NA | 29 | 20 | 44 | % | |||||||||||||||||
AUSTEDO | 105 | 62 | 71 | % | 122 | 74 | 64 | % | ||||||||||||||||
BENDEKA/TREANDA | 105 | 122 | (14 | %) | ||||||||||||||||||||
COPAXONE | 198 | 208 | (5 | %) | ||||||||||||||||||||
ProAir* | 59 | 59 | 1 | % | ||||||||||||||||||||
QVAR | 45 | 64 | (29 | %) | ||||||||||||||||||||
Anda | 351 | 333 | 5 | % | 426 | 379 | 13 | % | ||||||||||||||||
Other | 131 | 182 | (28 | %) | 146 | 155 | (6 | %) | ||||||||||||||||
Total | $ | 2,051 | $ | 2,265 | (9 | %) | $ | 2,082 | $ | 2,047 | 2 | % | ||||||||||||
* | Does not include |
Product Name | Brand Name | Launch Date | Total Annual U.S. Branded Sales at Time of Launch (U.S. $ in millions (IQVIA)) * | |||||||||
Oseltamivir phosphate for oral suspension, 6 mg / mL | Tamiflu | ® | July | $ | 281 | |||||||
Icatibant injection, 30 mg / 3 mL | Firazyr | ® | July | $ | 304 | |||||||
Pregabalin capsules, 25 mg, 50 mg, 75 mg, 100 mg, 150 mg, 200 mg, 225 mg & 300 mg | Lyrica | ® | July | $ | 5,456 | |||||||
Ramelteon tablets, 8 mg | Rozerem | ® | July | $ | 91 | |||||||
Bisoprolol fumarate and hydrochlorothiazide tablets, 2.5 mg/6.25 mg, 5 mg/6.25 mg & 10 mg/6.25 mg ** | Ziac | ® | August | $ | 42 | |||||||
Doxycycline hyclate delayed-release tablets, USP, 50 mg & 200 mg | Doryx | ® | August | $ | 20 | |||||||
Mycophenolic acid delayed-release tablets, USP, 180 mg & 360 mg | Myfortic ® DR | August | $ | 180 | ||||||||
Epinephrine injection, USP (auto-injector), 0.15 mg/0.3 mL | EpiPen ® and EpiPen Jr | ® | August | $ | 201 | |||||||
Minocycline hydrochloride extended-release tablets, USP, 55 mg | Solodyn ® ER | August | $ | 44 | ||||||||
Fulvestrant injection, 250 mg / 5 mL (50 mg/mL) | *** | August | — | |||||||||
Triamcinolone acetonide injectable suspension, USP, 40 mg/mL (40 mg), 40 mg/mL (200 mg) & 40 mg/mL (400 mg) | Kenalog ® -40 | August | $ | 135 | ||||||||
Acyclovir cream, 5% **** | Zovirax | ® | August | $ | 97 | |||||||
Fosaprepitant for injection, 150 mg/Vial | *** | September | — | |||||||||
Treprostinil Injection, 1 mg/mL (20 mg), 2.5 mg/mL (50 mg), 5 mg/mL (100 mg) & 10 mg/mL (200 mg) | Remodulin | ® | September | $ | 3 |
Product Name | Brand Name | Launch Date | Total Annual U.S. Branded Sales at Time of Launch (U.S. $ in millions (IQVIA)) * | |||||||||
Doxepin tablets, 3 mg & 6 mg | Silenor | ® | January | $ | 50 | |||||||
HERZUMA ® (trastuzumab-pkrb) for injection, 150 mg/vial & 420 mg/vial | Herceptin | ®** | March | $ | 3,042 |
* | The figures presented are for the twelve months ended in the calendar quarter immediately prior to our launch or re-launch |
** |
Generic Name | Brand Name | Total U.S. Annual Branded Market (U.S. $ in millions (IQVIA))* | ||||||
Ivermectin lotion, 0.5% | Sklice | ® | $ | 81 | ||||
Sildenafil, 10mg/mL | Revatio | ® | $ | 189 |
Product | Potential Indication(s) | Route of Administration | Development Phase (date entered phase 3) | Comments | ||||||
CNS, Neurology and Neuropsychiatry | ||||||||||
AUSTEDO (deutetrabenazine) | Tourette syndrome | Oral | ||||||||
Dyskinesia in cerebral palsy | Oral | 3 (September 2019) | ||||||||
TV-46000 (risperidone LAI) | Schizophrenia | Subcutaneous | 3 (April 2018) |
Product | Potential Indication(s) | Route of Administration | Development Phase (date entered phase 3) | Comments | ||||||||
Migraine and Pain | ||||||||||||
fremanezumab (anti CGRP) | Post traumatic headache | Subcutaneous | 2 | |||||||||
fibromyalgia | Subcutaneous | 2 | ||||||||||
fasinumab | Osteoarthritis pain | Subcutaneous | 3 (March 2016) | Developed in collaboration with Regeneron Pharmaceuticals, Inc. (“Regeneron”) | ||||||||
Respiratory | ||||||||||||
ProAir e-RespiClick ™ | Bronchospasm and exercise induced bronchitis | Oral inhalation | Approved by FDA (December 2018) | |||||||||
AirDuo ® Digihaler | Treatment of asthma in patients aged 12 years and older | Oral inhalation | Approved by FDA (July 2019) | |||||||||
ArmonAir ® | Oral inhalation | Approved by FDA | ||||||||||
GoResp ® ® DigiHaler® | Oral inhalation |
Three months ended September 30, | Three months ended March 31, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | (U.S. $ in millions / % of Segment Revenues) | |||||||||||||||||||||||||||||||
Revenues | $ | 1,163 | 100 | % | $ | 1,212 | 100 | % | $ | 1,402 | 100 | % | $ | 1,264 | 100 | % | ||||||||||||||||
Gross profit | 662 | 56.9 | % | 676 | 55.8 | % | 823 | 58.7 | % | 730 | 57.8 | % | ||||||||||||||||||||
R&D expenses | 63 | 5.4 | % | 62 | 5.1 | % | 55 | 3.9 | % | 66 | 5.2 | % | ||||||||||||||||||||
S&M expenses | 206 | 17.7 | % | 242 | 20.0 | % | 202 | 14.4 | % | 215 | 17.0 | % | ||||||||||||||||||||
G&A expenses | 56 | 4.9 | % | 74 | 6.1 | % | 66 | 4.7 | % | 48 | 3.8 | % | ||||||||||||||||||||
Other (income) expense | (4 | ) | § | 1 | § | (1 | ) | § | (1 | ) | § | |||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||
Segment profit* | $ | 341 | | 29.3 | % | $ | 297 | | 24.5 | % | $ | 502 | 35.8 | % | $ | 403 | 31.9 | % | ||||||||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than 0.5%. |
Three months ended September 30, | Percentage Change | Three months ended March 31, | Percentage Change | |||||||||||||||||||||
2019 | 2018 | 2018-2019 | 2020 | 2019 | 2019-2020 | |||||||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||||||||||
Generic products | $ | 836 | $ | 845 | (1 | %) | $ | 1,032 | $ | 919 | 12 | % | ||||||||||||
COPAXONE | 106 | 124 | (14 | %) | 109 | 114 | (4 | %) | ||||||||||||||||
Respiratory products | 87 | 93 | (7 | %) | 106 | 91 | 16 | % | ||||||||||||||||
AJOVY | 4 | — | NA | |||||||||||||||||||||
Other | 134 | 150 | (10 | %) | 151 | 140 | 7 | % | ||||||||||||||||
Total | $ | 1,163 | $ | 1,212 | (4 | %) | $ | 1,402 | $ | 1,264 | 11 | % | ||||||||||||
Three months ended September 30, | Three months ended March 31, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | (U.S. $ in millions / % of Segment Revenues) | |||||||||||||||||||||||||||||||
Revenues | $ | 736 | 100 | % | $ | 726 | 100 | % | $ | 565 | 100 | % | $ | 521 | 100 | % | ||||||||||||||||
Gross profit | 295 | 40.1 | % | 301 | 41.4 | % | 305 | 54.0 | % | 269 | 51.7 | % | ||||||||||||||||||||
R&D expenses | 21 | 2.8 | % | 21 | 2.9 | % | 15 | 2.7 | % | 22 | 4.2 | % | ||||||||||||||||||||
S&M expenses | 114 | 15.4 | % | 120 | 16.5 | % | 106 | 18.8 | % | 115 | 22.0 | % | ||||||||||||||||||||
G&A expenses | 32 | 4.3 | % | 37 | 5.1 | % | 34 | 6.0 | % | 36 | 6.8 | % | ||||||||||||||||||||
Other (income) expense | (1 | ) | § | — | § | (6 | ) | (1.1 | %) | — | § | |||||||||||||||||||||
Segment profit* | $ | 130 | 17.7 | % | $ | 123 | 16.9 | % | $ | 156 | 27.6 | % | $ | 97 | 18.6 | % | ||||||||||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than 0.5%. |
** | The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c to our consolidated financial statements for additional information. |
Three months ended September 30, | Percentage Change | |||||||||||
2019 | 2018 | 2018-2019 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 474 | $ | 498 | (5 | %) | ||||||
COPAXONE | 20 | 14 | 39 | % | ||||||||
Distribution | 176 | 149 | 18 | % | ||||||||
Other | 66 | 65 | 3 | % | ||||||||
Total | $ | 736 | $ | 726 | 1 | % | ||||||
Three months ended March 31, | Percentage Change | |||||||||||
2020 | 2019 | 2019-2020 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 449 | $ | 441 | 2 | % | ||||||
COPAXONE | 12 | 13 | (11 | %) | ||||||||
Other | 104 | 67 | 57 | % | ||||||||
Total | $ | 565 | $ | 521 | 8 | % | ||||||
* | The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c to our consolidated financial statements for additional information. |
Three months ended September 30, | ||||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
North America profit | $ | 565 | $ | 649 | ||||
Europe profit | 341 | 297 | ||||||
International Markets profit | 130 | 123 | ||||||
Total segments profit | 1,036 | 1,069 | ||||||
Profit of other activities | 16 | 35 | ||||||
1,051 | 1,104 | |||||||
Amounts not allocated to segments: | ||||||||
Amortization | 255 | 297 | ||||||
Other assets impairments, restructuring and other items | 160 | 139 | ||||||
Goodwill impairment | — | — | ||||||
Intangible asset impairments | 177 | 519 | ||||||
Gain on divestitures, net of divestitures related costs | (3 | ) | (31 | ) | ||||
Other R&D expenses (income) | (7 | ) | 60 | |||||
Costs related to regulatory actions taken in facilities | 11 | 1 | ||||||
Legal settlements and loss contingencies | 468 | 19 | ||||||
Other unallocated amounts | 72 | 84 | ||||||
Consolidated operating income (loss) | (81 | ) | 16 | |||||
Financial expenses, net | 211 | 229 | ||||||
Consolidated income (loss) before income taxes | $ | (292 | ) | $ | (213 | ) | ||
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
North America profit | $ | 550 | $ | 498 | ||||
Europe profit | 502 | 403 | ||||||
International Markets profit | 156 | 97 | ||||||
Total reportable segments profit | 1,208 | 998 | ||||||
Profit of other activities | 36 | 21 | ||||||
Total segments profit | 1,244 | 1,019 | ||||||
Amounts not allocated to segments: | ||||||||
Amortization | 258 | 283 | ||||||
Other assets impairments, restructuring and other items | 121 | 1 | ||||||
Intangible asset impairments | 649 | 469 | ||||||
Legal settlements and loss contingencies | (25 | ) | 57 | |||||
Other unallocated amounts | 49 | 75 | ||||||
Consolidated operating income (loss) | 191 | 134 | ||||||
Financial expenses, net | 224 | 218 | ||||||
Consolidated income (loss) before income taxes | $ | (33 | ) | $ | (84 | ) | ||
Percentage of Net Revenues | Percentage Change 2019 - 2018 | |||||||||||
Nine Months Ended September 30, | ||||||||||||
2019 | 2018 | |||||||||||
% | % | % | ||||||||||
Net revenues | 100.0 | 100.0 | (10 | ) | ||||||||
Gross profit | 43.3 | 44.2 | (12 | ) | ||||||||
Research and development expenses | 6.0 | 6.4 | (15 | ) | ||||||||
Selling and marketing expenses | 14.8 | 14.8 | (10 | ) | ||||||||
General and administrative expenses | 6.8 | 6.7 | (8 | ) | ||||||||
Other asset impairments, restructuring and other items | 2.0 | 5.8 | (69 | ) | ||||||||
Goodwill impairment | — | 2.1 | — | |||||||||
Legal settlements and loss contingencies | 9.1 | (8.7 | ) | — | ||||||||
Other income | (0.2 | ) | (2.3 | ) | (91 | ) | ||||||
Operating income (loss) | (4.6 | ) | 10.8 | — | ||||||||
Financial expenses, net | 4.9 | 5.1 | (14 | ) | ||||||||
Income (loss) before income taxes | (9.5 | ) | 5.6 | — | ||||||||
Income taxes (benefit) | (1.2 | ) | (0.4 | ) | 184 | |||||||
Share in (profits) losses of associated companies, net | 0.1 | 0.5 | (89 | ) | ||||||||
Net income (loss) attributable to non-controlling interests | (0.3 | ) | 0.2 | — | ||||||||
Net income (loss) attributable to Teva | (8.6 | ) | 5.1 | — | ||||||||
Dividends on preferred shares | — | 1.4 | — | |||||||||
Net income (loss) attributable to ordinary shareholders | (8.6 | ) | 3.8 | — |
Nine months ended September 30, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 6,169 | 100% | $ | 7,059 | 100.0 | % | |||||||||
Gross profit | 3,155 | 51.1 | % | 3,778 | 53.5 | % | ||||||||||
R&D expenses | 497 | 8.0 | % | 528 | 7.5 | % | ||||||||||
S&M expenses | 756 | 12.3 | % | 813 | 11.5 | % | ||||||||||
G&A expenses | 342 | 5.5 | % | 357 | 5.1 | % | ||||||||||
Other (income) expense | (6 | ) | § | (206 | ) | (2.9 | %) | |||||||||
Segment profit* | $ | 1,566 | 25.4 | % | $ | 2,286 | 32.4 | % | ||||||||
Nine months ended September 30, | Percentage Change 2018-2019 | |||||||||||
2019 | 2018 | |||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 2,826 | $ | 2,957 | (4 | %) | ||||||
COPAXONE | 753 | 1,403 | (46 | %) | ||||||||
BENDEKA/TREANDA | 353 | 502 | (30 | %) | ||||||||
ProAir* | 194 | 352 | (45 | %) | ||||||||
QVAR | 183 | 173 | 6 | % | ||||||||
AJOVY | 68 | — | N/A | |||||||||
AUSTEDO | 276 | 136 | 103 | % | ||||||||
Anda | 1,080 | 984 | 10 | % | ||||||||
Other | 436 | 554 | (21 | %) | ||||||||
Total | $ | 6,169 | $ | 7,059 | ||||||||
Nine months ended September 30, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 3,611 | 100 | % | $ | 3,982 | 100 | % | ||||||||
Gross profit | 2,066 | 57.2 | % | 2,195 | 55.1 | % | ||||||||||
R&D expenses | 199 | 5.5 | % | 208 | 5.2 | % | ||||||||||
S&M expenses | 637 | 17.6 | % | 725 | 18.2 | % | ||||||||||
G&A expenses | 175 | 4.8 | % | 243 | 6.1 | % | ||||||||||
Other (income) expense | (5 | ) | § | (1 | ) | § | ||||||||||
Segment profit* | $ | 1,060 | | 29.4 | % | $ | 1,020 | | 25.6 | % | ||||||
Nine months ended September 30, | Percentage Change 2018-2019 | |||||||||||
2019 | 2018 | |||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 2,599 | $ | 2,749 | (5 | %) | ||||||
COPAXONE | 327 | 417 | (22 | %) | ||||||||
Respiratory products | 267 | 312 | (14 | %) | ||||||||
Other | 417 | 504 | (17 | %) | ||||||||
Total | $ | 3,611 | $ | 3,982 | (9 | %) | ||||||
2019 | 2018 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 2,145 | 100 | % | $ | 2,265 | 100 | % | ||||||||
Gross profit | 877 | 40.9 | % | 942 | 41.6 | % | ||||||||||
R&D expenses | 66 | 3.1 | % | 70 | 3.1 | % | ||||||||||
S&M expenses | 348 | 16.2 | % | 384 | 16.9 | % | ||||||||||
G&A expenses | 102 | 4.7 | % | 115 | 5.1 | % | ||||||||||
Other (income) expense | (2 | ) | § | (11 | ) | § | ||||||||||
Segment profit* | $ | 363 | | 16.9 | % | $ | 384 | 16.9 | % | |||||||
Nine months ended September 30, | Percentage Change 2018-2019 | |||||||||||
2019 | 2018 | |||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 1,404 | $ | 1,523 | (8 | %) | ||||||
COPAXONE | 46 | 52 | (12 | %) | ||||||||
Distribution | 491 | 456 | 8 | % | ||||||||
Other | 204 | 233 | (13 | %) | ||||||||
Total | $ | 2,145 | $ | 2,265 | (5 | %) | ||||||
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
(U.S. $ in millions) | ||||||||
North America profit | $ | 1,566 | $ | 2,286 | ||||
Europe profit | 1,060 | 1,020 | ||||||
International Markets profit | 363 | 384 | ||||||
Total segments profit | 2,989 | 3,690 | ||||||
Profit (loss) of other activities | 92 | 87 | ||||||
3,081 | 3,777 | |||||||
Amounts not allocated to segments: | ||||||||
Amortization | 823 | 909 | ||||||
Other asset impairments, restructuring and other items | 263 | 834 | ||||||
Goodwill impairment | — | 300 | ||||||
Intangible asset impairments | 1,206 | 1,246 | ||||||
Gain on divestitures, net of divestitures related costs | (12 | ) | (114 | ) | ||||
Other R&D expenses | (7 | ) | 82 | |||||
Costs related to regulatory actions taken in facilities | 28 | 6 | ||||||
Legal settlements and loss contingencies | 1,171 | (1,239 | ) | |||||
Other unallocated amounts | 201 | 226 | ||||||
Consolidated operating income (loss) | (591 | ) | 1,527 | |||||
Financial expenses, net | 635 | 736 | ||||||
Consolidated income (loss) before income taxes | $ | (1,226 | ) | $ | 791 | |||
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluded for non-GAAP measurement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Amorti- zation of purchased intangible assets | Legal settlements and loss contingencies | Impair- ment of long- lived assets | Restruc- turing costs | Costs related to regulatory actions taken in facilities | Equity compens- ation | Contin- gent conside- ration | Gain on sale of business | Other non GAAP items | Other items | Corres- ponding tax effect | Non GAAP | ||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 2,435 | 220 | 11 | 7 | 35 | 2,162 | ||||||||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 240 | 5 | (7 | ) | 242 | |||||||||||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 595 | 35 | 9 | 551 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 285 | 14 | 1 | 270 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (14 | ) | (3 | ) | (11 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 468 | 468 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 160 | 28 | 61 | 51 | 21 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairment | 177 | 177 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 211 | 3 | 208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | 11 | (172 | ) | 183 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share in losses of associated companies – net | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | 7 | (12) | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | 255 | 468 | 204 | 61 | 11 | 35 | 51 | (3 | ) | 51 | (9 | ) | (172 | ) | ||||||||||||||||||||||||||||||||||||||||||
EPS—Basic | (0.29 | ) | 0.87 | 0.58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS—Diluted | (0.29 | ) | 0.87 | 0.58 |
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||
Excluded for non-GAAP measurement | ||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Amortization of purchased intangible assets | Legal settlements and loss contingencies | Impairment of long lived assets | Other R&D expenses | Restructuring costs | Costs related to regulatory actions taken in facilities | Equity compensation | Contingent consideration | Other non- GAAP items | Other items | Non-GAAP | |||||||||||||||||||||||||||||||||||||
Cost of sales | 2,294 | 223 | 4 | 6 | 15 | 2,046 | ||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 221 | (4 | ) | 5 | — | 221 | ||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 613 | 35 | 9 | — | 570 | |||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 304 | 10 | 4 | 290 | ||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (13 | ) | 0 | (13 | ) | |||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | (25 | ) | (25 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 121 | 75 | 39 | 6 | 1 | — | ||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairments | 649 | 649 | — | |||||||||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 224 | 11 | 213 | |||||||||||||||||||||||||||||||||||||||||||||
Income taxes | (59 | ) | (234 | ) | 175 | |||||||||||||||||||||||||||||||||||||||||||
Share in losses of associated companies – net | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | (44 | ) | (63 | ) | 20 | |||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | 258 | (25 | ) | 724 | (4 | ) | 39 | 4 | 30 | 6 | 20 | (286 | ) | |||||||||||||||||||||||||||||||||||
EPS - Basic | 0.06 | 0.70 | 0.76 | |||||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | 0.06 | 0.70 | 0.76 |
Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluded for non-GAAP measurement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Amorti- zation of purchased intangible assets | Legal settlements and loss contingencies | Impair- ment of long- lived assets | Other R&D expenses | Acquisition, integration and related expenses | Restru- cturing costs | Costs related to regulatory actions taken in facilities | Equity compens- ation | Contin- gent conside- ration | Other non GAAP items | Other items | Corres- ponding tax effect | Non GAAP | |||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 2,552 | 246 | 1 | 7 | 30 | 2,268 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 311 | 60 | 7 | 1 | 243 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 699 | 51 | 14 | 634 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 309 | 17 | 8 | 284 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (35) | (31 | ) | (4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 19 | 19 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 139 | 2 | 4 | 88 | 29 | 16 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairment | 519 | 519 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 229 | (7 | ) | 236 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | (26) | (111 | ) | 85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share in losses of associated companies – net | 10 | 9 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | 11 | (12 | ) | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | 297 | 19 | 521 | 60 | 4 | 88 | 1 | 45 | 29 | 24 | (10 | ) | (111 | ) | ||||||||||||||||||||||||||||||||||||||||||||
EPS—Basic | (0.27) | 0.95 | 0.68 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS—Diluted | (0.27) | 0.95 | 0.68 |
Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluded for non-GAAP measurement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Amortization of purchased intangible assets | Legal settlements and loss contingencies | Impairment of long lived assets | Acquisition, integration and related expenses | Restructuring costs | Costs related to regulatory actions taken in facilities | Equity compensation | Contingent consideration | Other non- GAAP items | Other items | Corresponding tax effect | Unusual tax item* | Non- GAAP | |||||||||||||||||||||||||||||||||||||||||||
Cost of sales** | 2,293 | 248 | 4 | 7 | 35 | 1,999 | ||||||||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 261 | 6 | — | 255 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 648 | 35 | 10 | 602 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 292 | 12 | — | 280 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (6 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 57 | 57 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 1 | 20 | 2 | 32 | (71 | ) | 19 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairments | 469 | 469 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 218 | (2 | ) | 220 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | 9 | (177 | ) | 61 | 125 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share in losses of associated companies – net | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | 8 | (8 | ) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | 283 | 57 | 489 | 2 | 32 | 4 | 34 | (71 | ) | 54 | (10 | ) | (177 | ) | 61 | |||||||||||||||||||||||||||||||||||||||||
EPS - Basic | (0.10 | ) | 0.70 | 0.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | (0.10 | ) | 0.70 | 0.60 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluded for non-GAAP measurement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Amorti- zation of purchased intangible assets | Legal settlements and loss contin- gencies | Impair- ment of long- lived assets | Acquisition, integration and related expenses | Restruc- turing costs | Costs related to regulatory actions taken in facilities | Equity compens- ation | Contin- gent consider- ation | Gain on sale of business | Other non GAAP items | Other items | Corres- ponding tax effect | Unusual tax item* | Non GAAP | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 7,318 | 717 | 28 | 21 | 96 | 6,456 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 778 | 17 | (7 | ) | 768 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 1,908 | 105 | 29 | 1,774 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 873 | 37 | 836 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (29) | (12 | ) | (17 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 1,171 | 1,171 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 263 | 96 | 2 | 140 | 4 | 22 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairment | 1,206 | 1,206 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 635 | 9 | 626 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | (159) | (662 | ) | 61 | 442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share in losses of associated companies – net | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | 33 | (28 | ) | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | 823 | 1,171 | 1,302 | 2 | 140 | 28 | 104 | 4 | (12 | ) | 111 | (19 | ) | (662 | ) | 61 | ||||||||||||||||||||||||||||||||||||||||||||
EPS—Basic | (1.02) | 2.80 | 1.78 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS—Diluted | (1.02) | 2.80 | 1.78 |
* | Interest disallowance as a result of the U.S. Tax Cuts and Jobs Act. |
** | The data presented for prior periods have been revised to reflect a revision in the presentation of net revenues and cost of sales in the consolidated financial statements. See note 1c to our consolidated financial statements for additional information. |
Nine months ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluded for non-GAAP measurement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Amorti- zation of purchased intangible assets | Good will impai rment | Legal settle ments and loss conting encies | Impair- ment of long- lived assets | Other R&D expenses | Acquisition, integration and related expenses | Restruct- uring costs | Costs related to regulatory actions taken in facilities | Equity compen- sation | Contin gent consider- ation | Gain on sale of business | Other non GAAP items | Other items | Corres- ponding tax effect | Non GAAP | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 7,970 | 771 | 6 | 22 | 94 | 7,077 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 918 | 82 | 21 | 2 | 813 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 2,119 | 138 | 35 | (4 | ) | 1,950 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 954 | 44 | 12 | 898 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (334 | ) | (114 | ) | (220 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | (1,239 | ) | (1,239 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 834 | 255 | 9 | 442 | 84 | 44 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairment | 1,246 | 1,246 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment | 300 | 300 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 736 | 59 | 677 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | (56 | ) | (479 | ) | 423 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share in losses of associated companies – net | 76 | 103 | (27 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | 35 | (32 | ) | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | �� | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | 909 | 300 | (1,239 | ) | 1,501 | 82 | 9 | 442 | 6 | 122 | 84 | (114 | ) | 148 | 130 | (479 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
EPS—Basic | 0.53 | 1.87 | 2.40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS—Diluted | 0.53 | 1.86 | 2.39 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
31.1 | ||||
31.2 | ||||
32 | ||||
101.INS | ||||
101.SCH | ||||
101.CAL | ||||
101.DEF | ||||
101.LAB | ||||
101.PRE | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
TEVA PHARMACEUTICAL INDUSTRIES LIMITED | ||||||
Date: | By: | /s/ | ||||
Name: | ||||||
Title: | Executive Vice President, Chief Financial Officer (Duly Authorized Officer) |