☒ | 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 | No t Applicable | ||
(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 Ordinary Share | TEVA | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
☐ | ||||||
Smaller reporting company | ☐ | |||||
Emerging growth company | ||||||
☐ | ||||||
PART I. | |||||||
Item 1. | 5 | ||||||
Item 2. | |||||||
Item 3. | |||||||
Item 4. | |||||||
76 | |||||||
PART II. | |||||||
77 | |||||||
Item 1. | |||||||
Item 1A. | |||||||
Item 2. | 77 | ||||||
Item 3. | 77 | ||||||
Item 4. | 77 | ||||||
Item 5. | 77 | ||||||
Item 6. | 78 | ||||||
79 |
pandemic and associated costs therewith; effectiveness of our optimization efforts; our ability to attract, hire and retain highly skilled personnel; manufacturing or quality control problems; interruptions in our supply chain; disruptions of information technology systems; breaches of our data security; variations in intellectual property laws; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism; costs and delays resulting from the extensive pharmaceutical regulation to which we are subject or delays in governmental processing time due to travel and work restrictions caused by the COVID-19 pandemic; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; significant sales to a limited number of customers; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets; |
ITEM 1. | FINANCIAL STATEMENTS |
June 30, | December 31, | |||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,402 | $ | 1,975 | ||||
Accounts receivables, net of allowance for credit losses of $129 million and $135 million as of June 30, 2020 and December 31, 2019 | 4,545 | 5,676 | ||||||
Inventories | 4,361 | 4,422 | ||||||
Prepaid expenses | 956 | 870 | ||||||
Other current assets | 448 | 434 | ||||||
Assets held for sale | 69 | 87 | ||||||
Total current assets | 12,781 | 13,464 | ||||||
Deferred income taxes | 483 | 386 | ||||||
Other non-current assets | 560 | 591 | ||||||
Property, plant and equipment, net | 6,122 | 6,436 | ||||||
Operating lease right-of-use | 489 | 514 | ||||||
Identifiable intangible assets, net | 9,940 | 11,232 | ||||||
Goodwill | 24,616 | 24,846 | ||||||
Total assets | $ | 54,991 | $ | 57,470 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 1,649 | $ | 2,345 | ||||
Sales reserves and allowances | 5,201 | 6,159 | ||||||
Accounts payables | 1,606 | 1,718 | ||||||
Employee-related obligations | 544 | 693 | ||||||
Accrued expenses | 1,755 | 1,869 | ||||||
Other current liabilities | 995 | 889 | ||||||
Total current liabilities | 11,751 | 13,674 | ||||||
Long-term liabilities: | ||||||||
Deferred income taxes | 975 | 1,096 | ||||||
Other taxes and long-term liabilities | 2,411 | 2,640 | ||||||
Senior notes and loans | 24,616 | 24,562 | ||||||
Operating lease liabilities | 414 | 435 | ||||||
Total long-term liabilities | 28,417 | 28,733 | ||||||
Commitments and contingencies | ||||||||
Total liabilities | 40,167 | 42,407 | ||||||
Equity: | ||||||||
Teva shareholders’ equity: | ||||||||
Ordinary shares of NIS | 57 | 56 | ||||||
Additional paid-in capital | 27,374 | 27,312 | ||||||
Accumulated deficit | (6,747 | ) | (6,956 | ) | ||||
Accumulated other comprehensive loss | (2,703 | ) | (2,312 | ) | ||||
Treasury shares as of June 30, 2020 and December 31, 2019 — 107 million ordinary shares and 106 million ordinary shares, respectively | (4,128 | ) | (4,128 | ) | ||||
13,852 | 13,972 | |||||||
Non-controlling interests | 972 | 1,091 | ||||||
Total equity | 14,824 | 15,063 | ||||||
Total liabilities and equity | $ | 54,991 | $ | 57,470 | ||||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,436 | $ | 2,177 | ||||
Accounts receivables, net of allowance for credit losses of $120 million and $126 million as of June 30, 2021 and December 31, 2020 | 4,488 | 4,581 | ||||||
Inventories | 4,362 | 4,403 | ||||||
Prepaid expenses | 1,022 | 945 | ||||||
Other current assets | 484 | 710 | ||||||
Assets held for sale | 29 | 189 | ||||||
Total current assets | 12,822 | 13,005 | ||||||
Deferred income taxes | 645 | 695 | ||||||
Other non-current assets | 530 | 538 | ||||||
Property, plant and equipment, net | 6,127 | 6,296 | ||||||
Operating lease right-of-use | 531 | 559 | ||||||
Identifiable intangible assets, net | 8,120 | 8,923 | ||||||
Goodwill | 20,421 | 20,624 | ||||||
Total assets | $ | 49,195 | $ | 50,640 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 3,530 | $ | 3,188 | ||||
Sales reserves and allowances | 4,453 | 4,824 | ||||||
Accounts payables | 1,551 | 1,756 | ||||||
Employee-related obligations | 511 | 685 | ||||||
Accrued expenses | 1,807 | 1,780 | ||||||
Other current liabilities | 838 | 933 | ||||||
Total current liabilities | 12,691 | 13,164 | ||||||
Long-term liabilities: | ||||||||
Deferred income taxes | 932 | 964 | ||||||
Other taxes and long-term liabilities | 2,215 | 2,240 | ||||||
Senior notes and loans | 21,602 | 22,731 | ||||||
Operating lease liabilities | 444 | 479 | ||||||
Total long-term liabilities | 25,193 | 26,414 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Total liabilities | 37,884 | 39,579 | ||||||
Equity: | ||||||||
Teva shareholders’ equity: | ||||||||
Ordinary shares of NIS 0.10 par value per share; June 30, 2021 and December 31, 2020: authorized 2,495 million shares; issued 1,209 million shares and 1,202 million shares, respectively | 57 | 57 | ||||||
Additional paid-in capital | 27,503 | 27,443 | ||||||
Accumulated deficit | (10,662 | ) | (10,946 | ) | ||||
Accumulated other comprehensive loss | (2,446 | ) | (2,399 | ) | ||||
Treasury shares as of June 30, 2021 and December 31, 2020 — 106 million ordinary shares | (4,128 | ) | (4,128 | ) | ||||
10,324 | 10,026 | |||||||
Non-controlling interests | 987 | 1,035 | ||||||
Total equity | 11,311 | 11,061 | ||||||
Total liabilities and equity | $ | 49,195 | $ | 50,640 | ||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net revenues | $ | 3,870 | $ | 4,177 | $ | 8,227 | $ | 8,326 | ||||||||
Cost of sales | 2,107 | 2,284 | 4,402 | 4,577 | ||||||||||||
Gross profit | 1,763 | 1,893 | 3,826 | 3,749 | ||||||||||||
Research and development expenses | 225 | 276 | 446 | 537 | ||||||||||||
Selling and marketing expenses | 597 | 666 | 1,210 | 1,313 | ||||||||||||
General and administrative expenses | 264 | 296 | 567 | 589 | ||||||||||||
Intangible assets impairments | 120 | 561 | 768 | 1,030 | ||||||||||||
Other assets impairments, restructuring and other items | 381 | 101 | 502 | 103 | ||||||||||||
Legal settlements and loss contingencies | 13 | 646 | (12 | ) | 703 | |||||||||||
Other income | (9 | ) | (9 | ) | (22 | ) | (15 | ) | ||||||||
Operating (loss) income | 173 | (644 | ) | 364 | (510 | ) | ||||||||||
Financial expenses, net | 223 | 206 | 448 | 425 | ||||||||||||
Income (loss) before income taxes | (51 | ) | (850 | ) | (84 | ) | (934 | ) | ||||||||
Income taxes (benefit) | (104 | ) | (179 | ) | (163 | ) | (170 | ) | ||||||||
Share in (profits) losses of associated companies, net | — | — | — | 4 | ||||||||||||
Net income (loss) | 53 | (671 | ) | 78 | (768 | ) | ||||||||||
Net income (loss) attributable to non-controlling interests | (87 | ) | 18 | (131 | ) | 26 | ||||||||||
Net income (loss) attributable to Teva | 140 | (689 | ) | 209 | (794 | ) | ||||||||||
Earnings (loss) per share attributable to ordinary shareholders: | ||||||||||||||||
Basic | $ | 0.13 | $ | (0.63 | ) | $ | 0.19 | $ | (0.73 | ) | ||||||
Diluted | $ | 0.13 | $ | (0.63 | ) | $ | 0.19 | $ | (0.73 | ) | ||||||
Weighted average number of shares (in millions): | ||||||||||||||||
Basic | 1,096 | 1,092 | 1,095 | 1,091 | ||||||||||||
Diluted | 1,100 | 1,092 | 1,098 | 1,091 | ||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenues | $ | 3,910 | $ | 3,870 | $ | 7,892 | $ | 8,227 | ||||||||
Cost of sales | 2,037 | 2,107 | 4,141 | 4,402 | ||||||||||||
Gross profit | 1,873 | 1,763 | 3,750 | 3,826 | ||||||||||||
Research and development expenses | 248 | 225 | 501 | 446 | ||||||||||||
Selling and marketing expenses | 615 | 597 | 1,200 | 1,210 | ||||||||||||
General and administrative expenses | 242 | 264 | 532 | 567 | ||||||||||||
Intangible assets impairments | 195 | 120 | 274 | 768 | ||||||||||||
Other assets impairments, restructuring and other items | 28 | 381 | 165 | 502 | ||||||||||||
Legal settlements and loss contingencies | 6 | 13 | 110 | (12 | ) | |||||||||||
Other income | (43 | ) | (9 | ) | (48 | ) | (22 | ) | ||||||||
Operating income (loss) | 582 | 173 | 1,015 | 364 | ||||||||||||
Financial expenses, net | 274 | 223 | 564 | 448 | ||||||||||||
Income (loss) before income taxes | 308 | (51 | ) | 451 | (84 | ) | ||||||||||
Income taxes (benefit) | 98 | (104 | ) | 159 | (163 | ) | ||||||||||
Share in (profits) losses of associated companies, net | (11 | ) | 0 | (14 | ) | 0 | ||||||||||
Net income (loss) | 221 | 53 | 306 | 78 | ||||||||||||
Net income (loss) attributable to non-controlling interests | 14 | (87 | ) | 21 | (131 | ) | ||||||||||
Net income (loss) attributable to Teva | 207 | 140 | 284 | 209 | ||||||||||||
Earnings (loss) per share attributable to ordinary shareholders: | ||||||||||||||||
Basic | $ | 0.19 | $ | 0.13 | $ | 0.26 | $ | 0.19 | ||||||||
Diluted | $ | 0.19 | $ | 0.13 | $ | 0.26 | $ | 0.19 | ||||||||
Weighted average number of shares (in millions): | ||||||||||||||||
Basic | 1,103 | 1,096 | 1,101 | 1,095 | ||||||||||||
Diluted | 1,109 | 1,100 | 1,108 | 1,098 | ||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) | $ | 53 | $ | (671 | ) | $ | 78 | $ | (768 | ) | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Currency translation adjustment | 144 | 86 | (416 | ) | 133 | |||||||||||
Unrealized gain (loss) from derivative financial instruments | 7 | (10 | ) | 37 | 37 | |||||||||||
Unrealized gain from available-for-sale | — | 1 | — | 1 | ||||||||||||
Unrealized loss on defined benefit plans | — | (1 | ) | — | (1 | ) | ||||||||||
Total other comprehensive income (loss) | 151 | 76 | (379 | ) | 170 | |||||||||||
Total comprehensive income (loss) | 204 | (595 | ) | (301 | ) | (598 | ) | |||||||||
Comprehensive income (loss) attributable to non-controlling interests | (85 | ) | 47 | (119 | ) | 49 | ||||||||||
Comprehensive income (loss) attributable to Teva | $ | 289 | $ | (642 | ) | $ | (182 | ) | $ | (647 | ) | |||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) | $ | 221 | $ | 53 | $ | 306 | $ | 78 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Currency translation adjustment | 79 | 144 | (130 | ) | (416 | ) | ||||||||||
Unrealized gain (loss) from derivative financial instruments, net | 7 | 7 | 14 | 37 | ||||||||||||
Unrealized loss on defined benefit plans | 1 | 0 | 1 | 0 | ||||||||||||
Total other comprehensive income (loss) | 87 | 151 | (115 | ) | (379 | ) | ||||||||||
Total comprehensive income (loss) | 308 | 204 | 191 | (301 | ) | |||||||||||
Comprehensive income (loss) attributable to non-controlling interests | 13 | (85 | ) | (47 | ) | (119 | ) | |||||||||
Comprehensive income (loss) attributable to Teva | $ | 295 | $ | 289 | $ | 238 | $ | (182 | ) | |||||||
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 March 31, 2020 | 1,201 | 56 | 27,342 | (6,887 | ) | (2,852 | ) | (4,128 | ) | 13,531 | 1,057 | 14,588 | ||||||||||||||||||||||||
Net Income (loss) | 140 | 140 | (87 | ) | 53 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 149 | 149 | 2 | 151 | ||||||||||||||||||||||||||||||||
Issuance of Shares | 1 | * | * | * | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 32 | 32 | 32 | |||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 1,202 | $ | 57 | $ | 27,374 | $ | (6,747 | ) | $ | (2,703 | ) | $ | (4,128 | ) | $ | 13,852 | $ | 972 | $ | 14,824 | ||||||||||||||||
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 March 31, 2019 | 1,198 | 56 | 27,234 | (6,063 | ) | (2,359 | ) | (4,137 | ) | 14,732 | 1,089 | 15,821 | ||||||||||||||||||||||||
Net Income (loss) | (689 | ) | (689 | ) | 18 | (671 | ) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | 47 | 47 | 29 | 76 | ||||||||||||||||||||||||||||||||
Issuance of Shares | * | * | ||||||||||||||||||||||||||||||||||
Issuance of Treasury Shares | (6 | ) | 9 | 3 | 3 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | 32 | 32 | 32 | |||||||||||||||||||||||||||||||||
Other | (2 | ) | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||
Transactions with non-controlling | (8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 1,198 | $ | 56 | $ | 27,258 | $ | (6,752 | ) | $ | (2,312 | ) | $ | (4,128 | ) | $ | 14,122 | $ | 1,128 | $ | 15,251 | ||||||||||||||||
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 | ||||||||||||||||||||||||
Net Income (loss) | 209 | 209 | (131 | ) | 78 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (391 | ) | (391 | ) | 12 | (379 | ) | |||||||||||||||||||||||||||||
Issuance of Shares | 4 | * | * | * | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 62 | 62 | 62 | |||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 1,202 | $ | 57 | $ | 27,374 | $ | (6,747 | ) | $ | (2,703 | ) | $ | (4,128 | ) | $ | 13,852 | $ | 972 | $ | 14,824 | ||||||||||||||||
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 | ||||||||||||||||||||||||
Net I ncome (loss) | (794 | ) | (794 | ) | 26 | (768 | ) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | 147 | 147 | 23 | 170 | ||||||||||||||||||||||||||||||||
Issuance of shares | 2 | * | * | |||||||||||||||||||||||||||||||||
Issuance of Treasury Shares | (8 | ) | 14 | 6 | 6 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | 64 | 64 | 64 | |||||||||||||||||||||||||||||||||
Transactions with non-controlling interests | (8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||
Other | (8 | ) | (8 | ) | (8 | ) | ||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 1,198 | $ | 56 | $ | 27,258 | $ | (6,752 | ) | $ | (2,312 | ) | $ | (4,128 | ) | $ | 14,122 | $ | 1,128 | $ | 15,251 | ||||||||||||||||
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 March 31, 2021 | 1,208 | 57 | 27,474 | (10,869 | ) | (2,534 | ) | (4,128 | ) | 10,000 | 975 | 10,975 | ||||||||||||||||||||||||
Net Income (loss) | 207 | 207 | 14 | 221 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 88 | 88 | (1 | ) | 87 | |||||||||||||||||||||||||||||||
Issuance of Shares | 01 | 0* | 0* | 0* | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 29 | 29 | 0 | 29 | ||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 1,209 | $ | 57 | $ | 27,503 | $ | (10,662 | ) | $ | (2,446 | ) | $ | (4,128 | ) | $ | 10,324 | $ | 987 | $ | 11,311 | ||||||||||||||||
* | Represents an amount less than $0.5 million. |
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 March 31, 2020 | 1,201 | 56 | 27,342 | (6,887 | ) | (2,852 | ) | (4,128 | ) | 13,531 | 1,057 | 14,588 | ||||||||||||||||||||||||
Net Income (loss) | 140 | 140 | (87 | ) | 53 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 149 | 149 | 2 | 151 | ||||||||||||||||||||||||||||||||
Issuance of Shares | 1 | 0* | 0* | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | 32 | 32 | 32 | |||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 1,202 | $ | 57 | $ | 27,374 | $ | (6,747 | ) | $ | (2,703 | ) | $ | (4,128 | ) | $ | 13,852 | $ | 972 | $ | 14,824 | ||||||||||||||||
* | Represents an amount less than $0.5 million. |
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, 2020 | 1,202 | 57 | 27,443 | (10,946 | ) | (2,399 | ) | (4,128 | ) | 10,026 | 1,035 | 11,061 | ||||||||||||||||||||||||
Net Income (loss) | 284 | 284 | 21 | 306 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (47 | ) | (47 | ) | (68 | ) | (115 | ) | ||||||||||||||||||||||||||||
Issuance of Shares | 6 | 0* | 0* | 0* | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 60 | 60 | 0 | 60 | ||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 1,209 | $ | 57 | $ | 27,503 | $ | (10,662 | ) | $ | (2,446 | ) | $ | (4,128 | ) | $ | 10,324 | $ | 987 | $ | 11,311 | ||||||||||||||||
* | Represents an amount less than $0.5 million. |
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 | ||||||||||||||||||||||||
Net Income (loss) | 209 | 209 | (131 | ) | 78 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (391 | ) | (391 | ) | 12 | (379 | ) | |||||||||||||||||||||||||||||
Issuance of shares | 4 | 0* | 0* | 0* | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 62 | 62 | 62 | |||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 1,202 | $ | 57 | $ | 27,374 | $ | (6,747 | ) | $ | (2,703 | ) | $ | (4,128 | ) | $ | 13,852 | $ | 972 | $ | 14,824 | ||||||||||||||||
* | Represents an amount less than $0.5 million. |
Six months ended June 30, | ||||||||
2020 | 2019 | |||||||
Operating activities: | ||||||||
Net income (loss) | $ | 78 | $ | (768 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||||||||
Depreciation and amortization | 781 | 893 | ||||||
Impairment of long-lived assets and assets held for sale | 1,120 | 1,097 | ||||||
Net change in operating assets and liabilities | (1,002 | ) | (1,056 | ) | ||||
Deferred income taxes – net and uncertain tax positions | (502 | ) | (362 | ) | ||||
Stock-based compensation | 62 | 64 | ||||||
Net loss (gain) from sale of investments and long-lived assets | 24 | 6 | ||||||
Other items | 17 | 11 | ||||||
Net cash provided by (used in) operating activities | 578 | (115 | ) | |||||
Investing activities: | ||||||||
Beneficial interest collected in exchange for securitized accounts receivables | 769 | 746 | ||||||
Purchases of property, plant and equipment | (259 | ) | (237 | ) | ||||
Proceeds from sale of long lived assets | 45 | 134 | ||||||
Other investing activities | 10 | 58 | ||||||
Net cash provided by investing activities | 565 | 701 | ||||||
Financing activities: | ||||||||
Repayment of senior notes and loans and other long-term liabilities | (700 | ) | (157 | ) | ||||
Tax withholding payments made on shares and dividends | — | (52 | ) | |||||
Other financing activities | (3 | ) | (15 | ) | ||||
Net cash used in financing activities | (703 | ) | (224 | ) | ||||
Translation adjustment on cash and cash equivalents | (13 | ) | 21 | |||||
Net change in cash and cash equivalents | 427 | 383 | ||||||
Balance of cash and cash equivalents at beginning of period | 1,975 | 1,782 | ||||||
Balance of cash and cash equivalents at end of period | $ | 2,402 | $ | 2,165 | ||||
Non-cash financing and investing activities: | ||||||||
Beneficial interest obtained in exchange for securitized accounts receivables | $ | 728 | $ | 770 |
Six months ended | ||||||||
June 30, | ||||||||
2021 | 2020 | |||||||
Operating activities: | ||||||||
Net income (loss) | $ | 306 | $ | 78 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||||||||
Depreciation and amortization | 681 | 781 | ||||||
Impairment of long-lived assets and assets held for sale | 354 | 1,120 | ||||||
Net change in operating assets and liabilities | (1,679 | ) | (1,002 | ) | ||||
Deferred income taxes – net and uncertain tax positions | 5 | (502 | ) | |||||
Stock-based compensation | 60 | 62 | ||||||
Net loss (gain) from investments and from sale of long lived assets | 93 | 24 | ||||||
Other items | (7 | ) | 17 | |||||
Net cash provided by (used in) operating activities | (187 | ) | 578 | |||||
Investing activities: | ||||||||
Beneficial interest collected in exchange for securitized accounts receivables | 881 | 769 | ||||||
Purchases of property, plant and equipment | (263 | ) | (259 | ) | ||||
Proceeds from sale of business and long lived assets | 254 | 45 | ||||||
Proceeds from sale of investments | 153 | 9 | ||||||
Other investing activities | (36 | ) | 1 | |||||
Net cash provided by investing activities | 989 | 565 | ||||||
Financing activities: | ||||||||
Repayment of senior notes and loans and other long-term liabilities | 0 | (700 | ) | |||||
Redemption of convertible senior notes | (491 | ) | 0 | |||||
Other financing activities | (3 | ) | (3 | ) | ||||
Net cash used in financing activities | (494 | ) | (703 | ) | ||||
Translation adjustment on cash and cash equivalents | (49 | ) | (13 | ) | ||||
Net change in cash and cash equivalents | 259 | 427 | ||||||
Balance of cash and cash equivalents at beginning of period | 2,177 | 1,975 | ||||||
Balance of cash and cash equivalents at end of period | $ | 2,436 | $ | 2,402 | ||||
Non-cash financing and investing activities: | ||||||||
Beneficial interest obtained in exchange for securitized accounts receivables | $ | 878 | $ | 728 |
a. | Basis of presentation |
b. | Significant accounting policies |
Net revenues | Cost of sales | |||||||||||||||||||||||||||
As reported | Adjustment | As revised | As reported | Adjustment | As revised | |||||||||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||||||||||
201 9 | Q1 | 4,295 | (146 | ) | 4,149 | 2,440 | (146 | ) | 2,293 | |||||||||||||||||||
Q2 | 4,337 | (159 | ) | 4,177 | 2,443 | (159 | ) | 2,284 | ||||||||||||||||||||
Total | 8,632 | (306 | ) | 8,326 | 4,883 | (306 | ) | 4,577 |
June 30, | December 31, | |||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Inventories | 154 | — | ||||||
Property, plant and equipment, net and others | 176 | 98 | ||||||
Goodwill | 11 | — | ||||||
Adjustments of assets held for sale to fair value | (272 | ) | (11 | ) | ||||
Total assets of the disposal group classified as held for sale in the consolidated balance sheets | $ | 69 | $ | 87 | ||||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Inventories | 7 | 146 | ||||||
Property, plant and equipment, net and others | 55 | 312 | ||||||
Goodwill | 9 | 27 | ||||||
Adjustments of assets held for sale to fair value | (42 | ) | (296 | ) | ||||
Total assets of the disposal group classified as held for sale in the consolidated balance sheets | $ | 29 | $ | 189 | ||||
Three months ended June 30, 2020 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 1,658 | 1,000 | 457 | 211 | 3,326 | |||||||||||||||
Licensing arrangements | 17 | 3 | 1 | 1 | 22 | |||||||||||||||
Distribution | 374 | — | 7 | — | 381 | |||||||||||||||
Other | (2 | ) | (2 | ) | 23 | 123 | 141 | |||||||||||||
$ | 2,047 | $ | 1,001 | $ | 488 | $ | 335 | $ | 3,870 | |||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 1,621 | 1,185 | 462 | 198 | 3,465 | |||||||||||||||
Licensing arrangements | 9 | 7 | 2 | 1 | 19 | |||||||||||||||
Distribution | 316 | 0§ | 15 | 0 | 330 | |||||||||||||||
Other | (2) | (8 | ) | 7 | 99 | 96 | ||||||||||||||
$ | 1,943 | $ | 1,184 | $ | 485 | $ | 298 | $ | 3,910 | |||||||||||
Three months ended June 30, 2019 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 1,686 | 1,173 | 526 | 204 | 3,588 | |||||||||||||||
Licensing arrangements | 35 | 10 | 2 | 1 | 48 | |||||||||||||||
Distribution | 351 | § | 4 | — | 354 | |||||||||||||||
Other | — | § | 49 | 137 | 186 | |||||||||||||||
$ | 2,071 | $ | 1,183 | $ | 582 | $ | 342 | $ | 4,177 | |||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 1,658 | 1,000 | 457 | 211 | 3,326 | |||||||||||||||
Licensing arrangements | 17 | 3 | 1 | 1 | 22 | |||||||||||||||
Distribution | 374 | 0 | 7 | 0 | 381 | |||||||||||||||
Other | (2) | (2 | ) | 23 | 123 | 141 | ||||||||||||||
$ | 2,047 | $ | 1,001 | $ | 488 | $ | 335 | $ | 3,870 | |||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||
North America | Europe | International Markets | Other | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 3,283 | 2,370 | 939 | 388 | 6,981 | |||||||||||||||
Licensing arrangements | 42 | 15 | 4 | 2 | 63 | |||||||||||||||
Distribution | 800 | 2 | 13 | — | 815 | |||||||||||||||
Other | 4 | 17 | 97 | 252 | 369 | |||||||||||||||
$ | 4,129 | $ | 2,404 | $ | 1,053 | $ | 642 | $ | 8,227 | |||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||
North America | Europe | International Markets | Other | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 3,324 | 2,433 | 994 | 390 | 7,141 | |||||||||||||||
Licensing arrangements | 65 | 15 | 2 | 3 | 85 | |||||||||||||||
Distribution | 729 | § | 10 | — | 739 | |||||||||||||||
Other | — | § | 97 | 264 | 362 | |||||||||||||||
$ | 4,118 | $ | 2,448 | $ | 1,103 | $ | 657 | $ | 8,326 | |||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 3,289 | 2,363 | 902 | 374 | 6,928 | |||||||||||||||
Licensing arrangements | 40 | 21 | 5 | 2 | 68 | |||||||||||||||
Distribution | 605 | 0§ | 34 | 0 | 639 | |||||||||||||||
Other | (2) | 14 | 35 | 210 | 257 | |||||||||||||||
$ | 3,932 | $ | 2,398 | $ | 975 | $ | 587 | $ | 7,892 | |||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 3,283 | 2,370 | 939 | 388 | 6,981 | |||||||||||||||
Licensing arrangements | 42 | 15 | 4 | 2 | 63 | |||||||||||||||
Distribution | 800 | 2 | 13 | 0 | 815 | |||||||||||||||
Other | 4 | 17 | 97 | 252 | 369 | |||||||||||||||
$ | 4,129 | $ | 2,404 | $ | 1,053 | $ | 642 | $ | 8,227 | |||||||||||
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 | 193 | 2,588 | 434 | 4,325 | 216 | 50 | 7,613 | 7,806 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods | — | (191 | ) | (105 | ) | (15 | ) | 18 | — | (293 | ) | (293 | ) | |||||||||||||||||||
Credits and payments | (206 | ) | (3,064 | ) | (505 | ) | (4,416 | ) | (211 | ) | (64 | ) | (8,260 | ) | (8,466 | ) | ||||||||||||||||
Translation differences | — | (9 | ) | — | (2 | ) | (2 | ) | (5 | ) | (18 | ) | (18 | ) | ||||||||||||||||||
Balance at June 30 , 2020 | $ | 74 | 2,219 | $ | 933 | $ | 1,234 | $ | 658 | $ | 157 | $ | 5,201 | $ | 5,275 | |||||||||||||||||
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 | 229 | 2,651 | 548 | 4,822 | 148 | 213 | 8,382 | 8,611 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods | — | 7 | — | (5 | ) | 3 | (4 | ) | 1 | 1 | ||||||||||||||||||||||
Credits and payments | (242 | ) | (2,975 | ) | (739 | ) | (4,936 | ) | (196 | ) | (206 | ) | (9,052 | ) | (9,294 | ) | ||||||||||||||||
Translation differences | — | 4 | — | 2 | 2 | 4 | 12 | 12 | ||||||||||||||||||||||||
Balance at June 30 , 2019 | $ | 162 | 2,693 | $ | 1,170 | $ | 1,413 | $ | 595 | $ | 183 | $ | 6,054 | $ | 6,216 | |||||||||||||||||
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, 2020 | $ | 80 | $ | 2,054 | $ | 828 | $ | 1,108 | $ | 686 | $ | 148 | $ | 4,824 | $ | 4,904 | ||||||||||||||||
Provisions related to sales made in current year | 192 | 391 | 3,995 | 143 | 177 | 6,845 | 7,037 | |||||||||||||||||||||||||
Provisions related to sales made in prior periods | (5 | ) | (82 | ) | (35 | ) | (11 | ) | (40 | ) | (23 | ) | (191 | ) | (196 | ) | ||||||||||||||||
Credits and payments | (196 | ) | (2,355 | ) | (362 | ) | (3,934 | ) | (186 | ) | (176 | ) | (7,013 | ) | (7,209 | ) | ||||||||||||||||
Translation differences | — | (8 | ) | (3 | ) | (1 | ) | (1 | ) | 1 | (12 | ) | (12 | ) | ||||||||||||||||||
Balance at June 30, 2021 | $ | 71 | 1,748 | $ | 819 | $ | 1,157 | $ | 602 | $ | 127 | $ | 4,453 | $ | 4,524 | |||||||||||||||||
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 | 193 | 2,588 | 434 | 4,325 | 216 | 50 | 7,613 | 7,806 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods | — | (191 | ) | (105 | ) | (15 | ) | 18 | — | (293 | ) | (293 | ) | |||||||||||||||||||
Credits and payments | (206 | ) | (3,064 | ) | (505 | ) | (4,416 | ) | (211 | ) | (64 | ) | (8,260 | ) | (8,466 | ) | ||||||||||||||||
Translation differences | — | (9 | ) | — | (2 | ) | (2 | ) | (5 | ) | (18 | ) | (18 | ) | ||||||||||||||||||
Balance at June 30, 2020 | $ | 74 | 2,219 | $ | 933 | $ | 1,234 | $ | 658 | $ | 157 | $ | 5,201 | $ | 5,275 | |||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||
(U.S. $ in millions) | ||||||||
Finished products | $ | 2,281 | $ | 2,504 | ||||
Raw and packaging materials | 1,282 | 1,183 | ||||||
Products in process | 618 | 583 | ||||||
Materials in transit and payments on account | 179 | 151 | ||||||
Total | $ | 4,361 | $ | 4,422 | ||||
June 30, 2021 | December 31, 2020 | |||||||
(U.S. $ in millions) | ||||||||
Finished products | $ | 2,223 | $ | 2,378 | ||||
Raw and packaging materials | 1,333 | 1,231 | ||||||
Products in process | 642 | 605 | ||||||
Materials in transit and payments on account | 164 | 189 | ||||||
Total | $ | 4,362 | $ | 4,403 | ||||
Gross carrying amount net | Accumulated amortization | Net carrying amount | ||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||||||
Product rights | $ | 19,386 | $ | 19,663 | $ | 11,252 | $ | 10,640 | $ | 8,134 | $ | 9,023 | ||||||||||||
Trade names | 599 | 600 | 144 | 126 | 455 | 474 | ||||||||||||||||||
In process research and development | 1,352 | 1,735 | — | — | 1,352 | 1,735 | ||||||||||||||||||
Total | $ | 21,336 | $ | 21,998 | $ | 11,396 | $ | 10,766 | $ | 9,940 | $ | 11,232 | ||||||||||||
Gross carrying amount net of impairment | Accumulated amortization | Net carrying amount | ||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||||||
Product rights | $ | 19,226 | $ | 19,650 | $ | 12,171 | $ | 12,094 | $ | 7,055 | $ | 7,556 | ||||||||||||
Trade names | 648 | 621 | 219 | 165 | 429 | 456 | ||||||||||||||||||
In process research and development | 636 | 911 | — | — | 636 | 911 | ||||||||||||||||||
Total | $ | 20,510 | $ | 21,182 | $ | 12,390 | $ | 12,259 | $ | 8,120 | $ | 8,923 | ||||||||||||
(a) | Identifiable product rights of $168 million due to: (i) $30 million related to lenalidomide (generic equivalent of Revlimid ® ), resulting from modified competition assumptions as a result of settlements between the innovator and other generic filers, and (ii) $138 million, mainly related to updated market assumptions regarding price and volume of products acquired from Actavis Generics that are primarily marketed in the United States; and |
(b) | IPR&D assets of $27 million due to generic pipeline products acquired from Actavis Generics resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date) in the United States. |
(a) | Identifiable product rights of $103 million, mainly due to updated market assumptions regarding price and volume of products acquired from Actavis |
(b) | IPR&D assets of $17 million, mainly due to generic pipeline products acquired from Actavis Genericsresulting from |
development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date or discount rate) |
(a) | Identifiable product rights of $196 million due to: (i) $30 million related to lenalidomide (generic equivalent of Revlimid ® ), resulting from modified competition assumptions as a result of settlements between the innovator and other generic filers, and (ii) $166 million, mainly related to updated market assumptions regarding price and volume of products acquired from Actavis Generics that are primarily marketed in the United States; and |
(b) | IPR&D assets of $78 million, resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date) in the United |
Identifiable product rights of $420 million, mainly due to: (i) $232 million due to updated market assumptions regarding price and volume of products acquired from Actavis Generics; and (ii) $165Japan in connection with ongoing regulatory pricing reductions and generic |
(b) | IPR&D assets of resulting from |
North America | Europe | International Markets | Other | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Balance as of December 31, 2019 (1) | $ | 11,091 | $ | 8,536 | $ | 2,532 | $ | 2,687 | $ | 24,846 | ||||||||||
Changes during the period: | ||||||||||||||||||||
Goodwill reclassified as assets held for sale | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Translation differences | (17 | ) | (33 | ) | (169 | ) | — | (219 | ) | |||||||||||
Balance as of June 30, 2020 (1) | $ | 11,074 | $ | 8,503 | $ | 2,352 | $ | 2,687 | $ | 24,616 | ||||||||||
North America | Europe | International Markets | Other | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Balance as of December 31, 2020 (1) | $ | 6,473 | $ | 9,102 | $ | 2,362 | $ | 2,687 | $ | 20,624 | ||||||||||
Changes during the period: | ||||||||||||||||||||
Goodwill reclassified as assets held for sale | (7 | ) | (7 | ) | ||||||||||||||||
Translation differences | 12 | (198 | ) | (10 | ) | (196 | ) | |||||||||||||
Balance as of June 30, 2021 (1) | $ | 6,485 | $ | 8,897 | $ | 2,352 | $ | 2,687 | $ | 20,421 | ||||||||||
(1) | Accumulated goodwill impairment as of June 30, |
Weighted average interest rate as of June 30, 2021 | Maturity | June 30, 2021 | December 31, 2020 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Convertible senior debentures | 0.25 | % | 2026 | $ | 23 | $ | 514 | |||||||||
Current maturities of long-term liabilities (1) | 3,507 | 2,674 | ||||||||||||||
Total short-term debt | $ | 3,530 | $ | 3,188 | ||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||
Weighted average interest rate as of June 30, 2020 | Maturity | |||||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Convertible debentures | 0.25% | 2026 | $ | 514 | $ | 514 | ||||||||||
Current maturities of long-term liabilities (1) | 1,136 | 1,831 | ||||||||||||||
Total short-term debt | $ | 1,649 | $ | 2,345 | ||||||||||||
(1) | In July repaid 1,475 million of its % senior |
Weighted average interest rate as of June 30, 2021 | Maturity | June 30, 2021 | December 31, 2020 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Senior notes EUR 1,500 million | 1.13 | % | 2024 | $ | 1,780 | $ | 1,839 | |||||||||
Senior notes EUR 1,300 million | 1.25 | % | 2023 | 1,544 | 1,595 | |||||||||||
Senior notes EUR 1,000 million | 6.00 | % | 2025 | 1,190 | 1,230 | |||||||||||
Senior notes EUR 900 million | 4.50 | % | 2025 | 1,071 | 1,107 | |||||||||||
Senior notes EUR 750 million | 1.63 | % | 2028 | 885 | 916 | |||||||||||
Senior notes EUR 700 million | 3.25 | % | 2022 | 832 | 861 | |||||||||||
Senior notes EUR 700 million | 1.88 | % | 2027 | 832 | 860 | |||||||||||
Senior notes USD 3,500 million | 3.15 | % | 2026 | 3,495 | 3,495 | |||||||||||
Senior notes USD 1,475 million (1) | 2.20 | % | 2021 | 1,474 | 1,472 | |||||||||||
Senior notes USD 3,000 million | 2.80 | % | 2023 | 2,997 | 2,996 | |||||||||||
Senior notes USD 2,000 million | 4.10 | % | 2046 | 1,986 | 1,986 | |||||||||||
Senior notes USD 1,250 million | 6.00 | % | 2024 | 1,250 | 1,250 | |||||||||||
Senior notes USD 1,250 million | 6.75 | % | 2028 | 1,250 | 1,250 | |||||||||||
Senior notes USD 1,000 million | 7.13 | % | 2025 | 1,000 | 1,000 | |||||||||||
Senior notes USD 844 million | 2.95 | % | 2022 | 851 | 853 | |||||||||||
Senior notes USD 789 million | 6.15 | % | 2036 | 783 | 783 | |||||||||||
Senior notes USD 613 million | 3.65 | % | 2021 | 614 | 616 | |||||||||||
Senior notes USD 588 million | 3.65 | % | 2021 | 588 | 586 | |||||||||||
Senior notes CHF 350 million | 0.50 | % | 2022 | 380 | 397 | |||||||||||
Senior notes CHF 350 million | 1.00 | % | 2025 | 381 | 398 | |||||||||||
Total senior notes | 25,183 | 25,490 | ||||||||||||||
Other long-term debt | 1.10 | % | 2026 | 1 | 1 | |||||||||||
Less current maturities | (3,507 | ) | (2,674 | ) | ||||||||||||
Less debt issuance costs | (75 | ) | (86 | ) | ||||||||||||
Total senior notes and loans | $ | 21,602 | $ | 22,731 | ||||||||||||
( 1) | In July 2021, Teva repaid $ 1,475 million of its 2.2% senior notes at maturity. |
Weighted average interest rate as of June 30, 2020 | Maturity | June 30, 2020 | December 31, 2019 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Senior notes EUR 1,010 million (1) | 0.38 | % | 2020 | 1,136 | 1,131 | |||||||||||
Senior notes EUR 1,500 million | 1.13 | % | 2024 | 1,680 | 1,673 | |||||||||||
Senior notes EUR 1,300 million | 1.25 | % | 2023 | 1,457 | 1,451 | |||||||||||
Senior notes EUR 1,000 million | 6.00 | % | 2025 | 1,124 | 1,120 | |||||||||||
Senior notes EUR 900 million | 4.50 | % | 2025 | 1,012 | 1,008 | |||||||||||
Senior notes EUR 750 million | 1.63 | % | 2028 | 837 | 833 | |||||||||||
Senior notes EUR 700 million | 3.25 | % | 2022 | 787 | 784 | |||||||||||
Senior notes EUR 700 million | 1.88 | % | 2027 | 786 | 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 (2) | 2.25 | % | 2020 | 0 | 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 | 368 | 361 | |||||||||||
Senior notes CHF 350 million | 1.00 | % | 2025 | 368 | 362 | |||||||||||
Total senior notes | 25,846 | 26,496 | ||||||||||||||
Other long-term debt | 1.13 | % | 2026 | 1 | 1 | |||||||||||
Less current maturities | (1,136 | ) | (1,831 | ) | ||||||||||||
Less debt issuance costs | (94 | ) | (103 | ) | ||||||||||||
Total senior notes and loans | $ | 24,616 | $ | 24,562 | ||||||||||||
June 30, | December 31, | |||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Cross-currency swap - net investment hedge | $ | — | $ | 1,000 | ||||
Fair value | ||||||||||||||||
Designated as hedging instruments | Not designated as hedging instruments | |||||||||||||||
June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Asset derivatives: | ||||||||||||||||
Other current assets: | ||||||||||||||||
Option and forward contracts | $ | — | $ | — | $ | 40 | $ | 32 | ||||||||
Liability derivatives: | ||||||||||||||||
Other current liabilities: | ||||||||||||||||
Cross-currency swaps - net investment hedge | — | (22 | ) | — | — | |||||||||||
Option and forward contracts | — | — | (52 | ) | (41 | ) |
Fair value | ||||||||
Not designated as hedging instruments | ||||||||
June 30, 2021 | December 31, 2020 | |||||||
Reported under | (U.S. $ in millions) | |||||||
Asset derivatives: | ||||||||
Other current assets: | ||||||||
Option and forward contracts | $ | 30 | $ | 24 | ||||
Liability derivatives: | ||||||||
Other current liabilities: | ||||||||
Option and forward contracts | (25 | ) | (79 | ) |
Financial expenses, net | ||||||||||||||||
Three months ended, | Three months ended, | |||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 223 | $ | 206 | $ | 151 | $ | 76 | ||||||||
Cross-currency swaps - cash flow hedge | — | (1 | ) | — | 4 | |||||||||||
Cross-currency swaps - net investment hedge (2) | — | (7 | ) | — | 14 | |||||||||||
Interest rate swaps - fair value hedge (3) | — | 1 | — | — |
Financial expenses, net | Other comprehensive income (loss) | |||||||||||||||
Six months ended, | Six months ended, | |||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 448 | $ | 425 | $ | (379 | ) | $ | 170 | |||||||
Cross-currency swaps - cash flow hedge (1) | — | (1 | ) | — | (15 | ) | ||||||||||
Cross-currency swaps - net investment hedge (2) | (2 | ) | (15 | ) | (21 | ) | (6 ) | |||||||||
Interest rate swaps - fair value hedge (3) | — | 1 | — | — |
Financial expenses, net | Other comprehensive income (loss) | |||||||||||||||
Three months ended, | Three months ended, | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 274 | $ | 223 | $ | 87 | $ | 151 | ||||||||
Cross-currency swaps - net investment hedge (1) | 0 | 0 | 0 | 0 |
Financial expenses, net | Other comprehensive income (loss) | |||||||||||||||
Six months ended, | Six months ended, | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are r e corded | $ | 564 | $ | 448 | $ | (115 | ) | $ | (379 | ) | ||||||
Cross-currency swaps - net investment hedge (1) | 0 | (2 | ) | 0 | (21 | ) |
Financial expenses, net | Net revenues | Financial expenses, net | Net revenues | |||||||||||||||||||||||||||||
Three months ended, | Three months ended, | Three months ended, | Three months ended, | |||||||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||
Reported under | (U.S. $ in millions) | (U.S. $ in millions) | ||||||||||||||||||||||||||||||
Line items in which effects of hedges are recorded | $ | 223 | $ | 206 | $ | (3,870 | ) | $ | (4,177 | ) | $ | 274 | $ | 223 | $ | (3,910 | ) | $ | (3,870 | ) | ||||||||||||
Option and forward contracts | 13 | 34 | — | — | 27 | 13 | 0— | 0— | ||||||||||||||||||||||||
Option and forward contracts economic hedge | — | — | 20 | 4 | 0— | 0— | 15 | 20 |
Financial expenses, net | Net revenues | |||||||||||||||
Six months ended, | Six months ended, | |||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 448 | $ | 425 | $ | (8,227 | ) | $ | (8,326 | ) | ||||||
Option and forward contracts (4) | 37 | (7 | ) | — | — | |||||||||||
Option and forward contracts Economic hedge (5) | — | — | (40 | ) | 4 |
Financial expenses, net | Net revenues | |||||||||||||||
Six months ended, | Six months ended, | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 564 | $ | 448 | $ | (7,892 | ) | $ | (8,227 | ) | ||||||
Option and forward contracts (2) | (43 | ) | 37 | 0— | 0— | |||||||||||
Option and forward contracts economic hedge (3 ) | 0— | 0— | (13 | ) | (40 | ) |
(1) |
In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500 million maturing in 2020. These cross currency swaps were designated as a net investment hedge of Teva’s foreign subsidiaries euro denominated net assets, in order to reduce the risk of adverse exchange rate fluctuations. With respect to these cross currency swap agreements, Teva recognized gains which mainly reflect the differences between the float-for-float |
Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net . |
Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar and some other currencies to protect its projected operating results for an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. In 2020, Teva recognized a loss of $27 million in relation with the 2021 hedging program Teva entered into in the second half of 2020. In the first six months of 2021, the positive impact from these derivatives recognized under revenues was $13 million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Impairments of long-lived tangible assets (1) | $ | 277 | $ | 48 | $ | 352 | $ | 68 | ||||||||
Contingent consideration | 76 | 24 | 83 | (47 | ) | |||||||||||
Restructuring | 33 | 47 | 73 | 79 | ||||||||||||
Other | (6 | ) | (18 | ) | (5 | ) | 3 | |||||||||
Total | $ | 381 | $ | 101 | $ | 502 | $ | 103 | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Impairments of long-lived tangible assets (1) | $ | 32 | $ | 277 | $ | 80 | $ | 352 | ||||||||
Contingent consideration | (19 | ) | 76 | (16 | ) | 83 | ||||||||||
Restructuring | (13 | ) | 33 | 69 | 73 | |||||||||||
Other | 28 | (6 | ) | 33 | (5 | ) | ||||||||||
Total | $ | 28 | $ | 381 | $ | 165 | $ | 502 | ||||||||
(1) | Including impairments related to exit and disposal activities |
Three months ended June 30, | ||||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | (19 | ) | $ | 3 | |||
Other | 6 | 30 | ||||||
Total | $ | (13 | ) | $ | 33 | |||
Three months ended June 30, | ||||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | 3 | $ | 36 | ||||
Other | 30 | 11 | ||||||
Total | $ | 33 | $ | 47 | ||||
Six months ended June 30, | ||||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | 36 | $ | 56 | ||||
Other | 36 | 23 | ||||||
Total | $ | 73 | $ | 79 | ||||
Six months ended June 30, | ||||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | 61 | $ | 36 | ||||
Other | 8 | 36 | ||||||
Total | $ | 69 | $ | 73 | ||||
Employee termination costs | Other | Total | ||||||||||
(U.S. $ in millions ) | ||||||||||||
Balance as of January 1, 2021 | $ | (115 | ) | $ | (7 | ) | $ | (122 | ) | |||
Provision | (61 | ) | (8 | ) | (69 | ) | ||||||
Utilization and other* | 56 | 8 | 64 | |||||||||
Balance as of June 30, 2021 | $ | (120 | ) | $ | (7 | ) | $ | (127 | ) | |||
Employee termination costs | Other | Total | ||||||||||
(U.S. $ in millions ) | ||||||||||||
Balance as of January 1, 2020 | $ | (208 | ) | $ | (7 | ) | $ | (215 | ) | |||
Provision | (36 | ) | (36 | ) | (73 | ) | ||||||
Utilization and other* | 114 | 36 | 150 | |||||||||
Balance as of June 30, 2020 | $ | (130 | ) | $ | (7 | ) | $ | (137 | ) | |||
* | Includes adjustments for foreign currency translation. |
Net Unrealized Gains (Losses) | Benefit Plans | |||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Actuarial gains (losses) and prior service (costs) credits | Total | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Balance as of December 31, 2020, net of taxes | $ | (1,919 | ) | $ | (363 | ) | $ | (117 | ) | $ | (2,399 | ) | ||||
Other comprehensive income (loss) before reclassifications | (77 | ) | — | — | (77 | ) | ||||||||||
Amounts reclassified to the statements of income | — | 18 | 1 | 19 | ||||||||||||
Net other comprehensive income (loss) before tax | (77 | ) | 18 | 1 | (58 | ) | ||||||||||
Corresponding income tax | 15 | (4 | ) | — | 11 | |||||||||||
Net other comprehensive income (loss) after tax* | (62 | ) | 14 | 1 | (47 | ) | ||||||||||
Balance as of June 30, 2021, net of taxes | $ | (1,981 | ) | $ | (349 | ) | $ | (116 | ) | $ | (2,446 | ) | ||||
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 | (428 | ) | — | 19 | — | (409 | ) | |||||||||||||
Amounts reclassified to the statements of income | — | — | 18 | — | 18 | |||||||||||||||
Net other comprehensive income (loss) before tax | (428 | ) | — | 37 | — | (391 | ) | |||||||||||||
Net other comprehensive income (loss) after tax* | (428 | ) | — | 37 | — | (391 | ) | |||||||||||||
Balance as of June 30, 2020 | $ | (2,222 | ) | $ | — | $ | (383 | ) | $ | (98 | ) | $ | (2,703 | ) | ||||||
* | Amounts do not include a $68 million loss from foreign currency translation adjustments attributable to non-controlling interests. |
Net Unrealized Gains (Losses) | Benefit Plans | |||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Actuarial gains (losses) and prior service (costs) credits | Total | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Balance as of December 31, 2019, net of taxes | $ | (1,794 | ) | $ | (420 | ) | $ | (98 | ) | $ | (2,312 | ) | ||||
Other comprehensive income (loss) before reclassifications | (432 | ) | 19 | — | (413 | ) | ||||||||||
Amounts reclassified to the statements of income | — | 18 | — | 18 | ||||||||||||
Net other comprehensive income (loss) before tax | (432 | ) | 37 | — | (395 | ) | ||||||||||
Corresponding income tax | 4 | — | — | 4 | ||||||||||||
Net other comprehensive income (loss) after tax* | (428 | ) | 37 | — | (391 | ) | ||||||||||
Balance as of June 30, 2020, net of taxes | $ | (2,222 | ) | $ | (383 | ) | $ | (98 | ) | $ | (2,703 | ) | ||||
* | Amounts do not include a $12 million gain from foreign currency translation adjustments attributable tonon-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 | 110 | 1 | 22 | * | * | 133 | ||||||||||||||
Amounts reclassified to the statements of income | — | — | 15 | — | 15 | |||||||||||||||
Net other comprehensive income (loss) before tax | 110 | 1 | 37 | * | * | 148 | ||||||||||||||
Net other comprehensive income (loss) after tax* | 110 | 1 | 37 | (1 | ) | 147 | ||||||||||||||
Balance as of June 30, 2019 | $ | (1,768 | ) | $ | 2 | $ | (467 | ) | $ | (79 | ) | $ | (2,312 | ) | ||||||
(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 i ca and Europe segments. |
Three months ended June 30, | ||||||||||||
2020 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 2,047 | $ | 1,001 | $ | 488 | ||||||
Gross profit | 1,090 | 548 | 247 | |||||||||
R&D expenses | 154 | 65 | 19 | |||||||||
S&M expenses | 254 | 188 | 105 | |||||||||
G&A expenses | 110 | 52 | 29 | |||||||||
Other (income) expenses | (2 | ) | (1 | ) | (2 | ) | ||||||
Segment profit | $ | 573 | $ | 244 | $ | 97 | ||||||
Three months ended June 30, | ||||||||||||
2019 | ||||||||||||
North America | Europe | International Market s* | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 2,071 | $ | 1,183 | $ | 582 | ||||||
Gross profit | 1,067 | 674 | 312 | |||||||||
R&D expenses | 175 | 70 | 24 | |||||||||
S&M expenses | 269 | 216 | 119 | |||||||||
G&A expenses | 117 | 70 | 34 | |||||||||
Other (income) expenses | 2 | 1 | (1 | ) | ||||||||
Segment profit | $ | 504 | $ | 316 | $ | 136 | ||||||
Six months ended June 30, | ||||||||||||
2020 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 4,129 | $ | 2,404 | $ | 1,053 | ||||||
Gross profit | 2,152 | 1,371 | 552 | |||||||||
R&D expenses | 300 | 120 | 34 | |||||||||
S&M expenses | 505 | 390 | 211 | |||||||||
G&A expenses | 228 | 118 | 63 | |||||||||
Other (income) expenses | (4 | ) | (2 | ) | (8 | ) | ||||||
Segment profit | $ | 1,123 | $ | 746 | $ | 253 | ||||||
Three months ended June 30, | ||||||||||||
2021 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 1,943 | $ | 1,184 | $ | 485 | ||||||
Gross profit | 1,040 | 661 | 270 | |||||||||
R&D expenses | 162 | 63 | 18 | |||||||||
S&M expenses | 255 | 209 | 105 | |||||||||
G&A expenses | 106 | 47 | 25 | |||||||||
Other income | (5 | ) | 0§ | (1 | ) | |||||||
Segment profit | $ | 521 | $ | 343 | $ | 123 | ||||||
Six months ended June 30, | ||||||||||||
2019 | ||||||||||||
North America | Europe | International Markets* | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 4,118 | $ | 2,448 | $ | 1,103 | ||||||
Gross profit | 2,107 | 1,404 | 582 | |||||||||
R&D expenses | 340 | 136 | 46 | |||||||||
S&M expenses | 537 | 431 | 234 | |||||||||
G&A expenses | 230 | 119 | 70 | |||||||||
Other (income) expenses | (2 | ) | (1 | ) | (1 | ) | ||||||
Segment profit | $ | 1,001 | $ | 719 | $ | 233 | ||||||
Three months ended June 30, | ||||||||||||
2020 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 2,047 | $ | 1,001 | $ | 488 | ||||||
Gross profit | 1,090 | 548 | 247 | |||||||||
R&D expenses | 154 | 65 | 19 | |||||||||
S&M expenses | 254 | 188 | 105 | |||||||||
G&A expenses | 110 | 52 | 29 | |||||||||
Other income | (2 | ) | (1 | ) | (2 | ) | ||||||
Segment profit | $ | 573 | $ | 244 | $ | 97 | ||||||
Six months ended June 30, | ||||||||||||
2021 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 3,932 | $ | 2,398 | $ | 975 | ||||||
Gross profit | 2,114 | 1,349 | 530 | |||||||||
R&D expenses | 322 | 129 | 35 | |||||||||
S&M expenses | 483 | 424 | 201 | |||||||||
G&A expenses | 218 | 117 | 51 | |||||||||
Other income | (7 | ) | (1 | ) | (3 | ) | ||||||
Segment profit | $ | 1,098 | $ | 680 | $ | 245 | ||||||
40 |
Six months ended June 30, | ||||||||||||
2020 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 4,129 | $ | 2,404 | $ | 1,053 | ||||||
Gross profit | 2,152 | 1,371 | 552 | |||||||||
R&D expenses | 300 | 120 | 34 | |||||||||
S&M expenses | 505 | 390 | 211 | |||||||||
G&A expenses | 228 | 118 | 63 | |||||||||
Other income | (4 | ) | (2 | ) | (8 | ) | ||||||
Segment profit | $ | 1,123 | $ | 746 | $ | 253 | ||||||
Three months ended | Six months ended | |||||||||||||||||||||||||||||||
. | Three months ended | Six months ended | ||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | (U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||||||||||||||||
North America profit | $ | 573 | $ | 504 | $ | 1,123 | $ | 1,001 | $ | 521 | $ | 573 | $ | 1,098 | $ | 1,123 | ||||||||||||||||
Europe profit | 244 | 316 | 746 | 719 | 343 | 244 | 680 | 746 | ||||||||||||||||||||||||
International Markets profit | 97 | 136 | 253 | 233 | 123 | 97 | 245 | 253 | ||||||||||||||||||||||||
Total reportable segments profit | 914 | 956 | 2,121 | 1,954 | 987 | 914 | 2,023 | 2,121 | ||||||||||||||||||||||||
Profit of other activities | 66 | 55 | 102 | 76 | 47 | 66 | 87 | 102 | ||||||||||||||||||||||||
Total segments profit | 979 | 1,011 | 2,223 | 2,029 | 1,034 | 979 | 2,111 | 2,223 | ||||||||||||||||||||||||
Amounts not allocated to segments: | ||||||||||||||||||||||||||||||||
Amortization | 249 | 285 | 507 | 568 | 173 | 249 | 414 | 507 | ||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 381 | 101 | 502 | 103 | 28 | 381 | 165 | 502 | ||||||||||||||||||||||||
Goodwill impairment | — | — | — | — | ||||||||||||||||||||||||||||
Intangible asset impairments | 120 | 561 | 768 | 1,030 | 195 | 120 | 274 | 768 | ||||||||||||||||||||||||
Legal settlements and loss contingencies | 13 | 646 | (12 | ) | 703 | 6 | 13 | 110 | (12 | ) | ||||||||||||||||||||||
Other unallocated amounts | 44 | 62 | 93 | 136 | 50 | 44 | 132 | 93 | ||||||||||||||||||||||||
Consolidated operating income (loss) | 173 | (644 | ) | 364 | (510 | ) | 582 | 173 | 1,015 | 364 | ||||||||||||||||||||||
Financial expenses, net | 223 | 206 | 448 | 425 | 274 | 223 | 564 | 448 | ||||||||||||||||||||||||
Consolidated income (loss) before income taxes | $ | (51 | ) | $ | (850 | ) | $ | (84 | ) | $ | (934 | ) | $ | 308 | $ | (51 | ) | $ | 451 | $ | (84 | ) | ||||||||||
North America | Three months ended June 30, | Three months ended June 30, | ||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Generic products | $ | 923 | $ | 946 | $ | 951 | $ | 923 | ||||||||
AJOVY | 34 | 23 | 46 | 34 | ||||||||||||
AUSTEDO | 161 | 96 | 174 | 161 | ||||||||||||
BENDEKA/TREANDA | 103 | 125 | ||||||||||||||
BENDEKA ® /TREANDA® | 106 | 103 | ||||||||||||||
COPAXONE | 238 | 274 | 152 | 238 | ||||||||||||
ProAir* | 66 | 65 | ||||||||||||||
QVAR | 51 | 60 | ||||||||||||||
ProAir ® * | 55 | 66 | ||||||||||||||
Anda | 374 | 351 | 316 | 374 | ||||||||||||
Other | 96 | 131 | 144 | 147 | ||||||||||||
Total | $ | 2,047 | $ | 2,071 | $ | 1,943 | $ | 2,047 | ||||||||
* | Does not include revenues from the ProAir authorized generic, which are included under generic products. |
North America | Six months ended | Six months ended June 30, | ||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Generic products | $ | 1,875 | $ | 1,913 | $ | 2,004 | $ | 1,875 | ||||||||
AJOVY | 63 | 43 | 77 | 63 | ||||||||||||
AUSTEDO | 283 | 171 | 320 | 283 | ||||||||||||
BENDEKA/TREANDA | 208 | 247 | 197 | 208 | ||||||||||||
COPAXONE | 435 | 482 | 315 | 435 | ||||||||||||
ProAir* | 125 | 123 | 109 | 125 | ||||||||||||
QVAR | 97 | 124 | ||||||||||||||
Anda | 800 | 729 | 605 | 800 | ||||||||||||
Other | 242 | 286 | 305 | 338 | ||||||||||||
Total | $ | 4,129 | $ | 4,118 | $ | 3,932 | $ | 4,129 | ||||||||
* | Does not include revenues from the ProAir authorized generic, which are included under generic products. |
Europe | Three months ended June 30, | |||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 737 | $ | 844 | ||||
COPAXONE | 84 | 107 | ||||||
Respiratory products | 80 | 89 | ||||||
AJOVY | 5 | 1 | ||||||
Other | 95 | 142 | ||||||
Total | $ | 1,001 | $ | 1,183 | ||||
Europe | Three months ended June 30, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 878 | $ | 737 | ||||
AJOVY | 19 | 5 | ||||||
COPAXONE | 100 | 84 | ||||||
Respiratory products | 85 | 80 | ||||||
Other | 102 | 95 | ||||||
Total | $ | 1,184 | $ | 1,001 | ||||
Europe | Six months ended June 30, | |||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 1,769 | $ | 1,763 | ||||
COPAXONE | 193 | 221 | ||||||
Respiratory products | 186 | 181 | ||||||
AJOVY | 9 | 1 | ||||||
Other | 246 | 282 | ||||||
Total | $ | 2,404 | $ | 2,448 | ||||
International Markets | Three months ended June 30, | |||||||
2020 | 2019* | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 426 | $ | 489 | ||||
COPAXONE | 12 | 13 | ||||||
Other | 50 | 80 | ||||||
Total | $ | 488 | $ | 582 | ||||
Europe | Six months ended June 30, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 1,742 | $ | 1,769 | ||||
AJOVY | 35 | 9 | ||||||
COPAXONE | 201 | 193 | ||||||
Respiratory products | 179 | 186 | ||||||
Other | 242 | 246 | ||||||
Total | $ | 2,398 | $ | 2,404 | ||||
International markets | Three months ended June 30, | |||||||
2021 | 2020 | |||||||
(U.S. $ in | ||||||||
Generic products | $ | 407 | $ | 426 | ||||
COPAXONE | 7 | 12 | ||||||
Other | 71 | 50 | ||||||
Total | $ | 485 | $ | 488 | ||||
International Markets | Six months ended June 30, | |||||||
2020 | 2019* | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 875 | $ | 930 | ||||
COPAXONE | 23 | 27 | ||||||
Other | 154 | 147 | ||||||
Total | $ | 1,053 | $ | 1,103 | ||||
International markets | Six months ended June 30, | |||||||
2021 | 2020 | |||||||
(U.S. $ in | ||||||||
Generic products | $ | 799 | $ | 875 | ||||
COPAXONE | 19 | 23 | ||||||
Other | 157 | 154 | ||||||
Total | $ | 975 | $ | 1,053 | ||||
June 30, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Money markets | $ | 607 | $ | — | $ | — | $ | 607 | ||||||||
Cash, deposits and other | 1,795 | — | — | 1,795 | ||||||||||||
Investment in securities: | ||||||||||||||||
Equity securities | 15 | — | — | 15 | ||||||||||||
Other, mainly debt securities | 1 | — | 13 | 14 | ||||||||||||
Derivatives: | ||||||||||||||||
Asset derivatives—options and forward contracts | — | 40 | — | 40 | ||||||||||||
Liability derivatives—options and forward contracts | — | (52 | ) | — | (52 | ) | ||||||||||
Contingent consideration* | — | — | (484 | ) | (484 | ) | ||||||||||
Total | $ | 2,418 | $ | (12 | ) | $ | (471 | ) | $ | 1,935 | ||||||
June 30, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Money markets | $ | 278 | $ | — | $ | — | $ | 278 | ||||||||
Cash, deposits and other | 2,158 | — | — | 2,158 | ||||||||||||
Investment in securities: | ||||||||||||||||
Equity securities* | 35 | — | — | 35 | ||||||||||||
Other, mainly debt securities | 5 | — | 1 | 6 | ||||||||||||
Derivatives: | ||||||||||||||||
Asset derivatives—options and forward contracts | — | 30 | — | 30 | ||||||||||||
Liability derivatives—options and forward contracts | — | (25 | ) | — | (25 | ) | ||||||||||
Contingent consideration** | — | — | (205 | ) | (205 | ) | ||||||||||
Total | $ | 2,476 | $ | 5 | $ | (204 | ) | $ | 2,277 | |||||||
December 31, 2019 | December 31, 2020 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||
Money markets | $ | 577 | $ | — | $ | — | $ | 577 | $ | 367 | $ | — | $ | — | $ | 367 | ||||||||||||||||
Cash, deposits and other | 1,398 | — | — | 1,398 | 1,810 | — | — | 1,810 | ||||||||||||||||||||||||
Investment in securities: | ||||||||||||||||||||||||||||||||
Equity securities | 42 | — | — | 42 | ||||||||||||||||||||||||||||
Equity securities* | 25 | 259 | — | 284 | ||||||||||||||||||||||||||||
Other, mainly debt securities | 2 | — | 12 | 14 | 5 | — | 10 | 15 | ||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||
Asset derivatives—options and forward contracts | — | 32 | — | 32 | — | 24 | — | 24 | ||||||||||||||||||||||||
Liability derivatives—options and forward contracts | — | (41 | ) | — | (41 | ) | — | (79 | ) | — | (79 | ) | ||||||||||||||||||||
Liability derivatives—interest rate and cross-currency swaps | — | (22 | ) | — | (22 | ) | ||||||||||||||||||||||||||
Contingent consideration* | — | — | (460 | ) | (460 | ) | ||||||||||||||||||||||||||
Contingent consideration** | — | — | (268 | ) | (268 | ) | ||||||||||||||||||||||||||
Total | $ | 2,019 | $ | (31 | ) | $ | (448 | ) | $ | 1,540 | $ | 2,207 | $ | 204 | $ | (258 | ) | $ | 2,153 | |||||||||||||
* | During the first quarter of 2021, Teva’s shares in American Well Corporation (“American Well”) moved from a Level 2 measurement to a Level 1 measurement within the fair value hierarchy, since they are no longer subject to a sale restriction. As of June 30, 2021, Teva sold most of its holdings in American Well, and subsequently sold its remaining holdings. |
* | Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. |
Six months ended June 30, 2020 | ||||
(U.S. $ in millions) | ||||
Fair value at the beginning of the period | $ | (448 | ) | |
Revaluation of debt securitie s | 1 | |||
Adjustments to provisions for contingent consideration: | ||||
Actavis Generics transaction | (15 | ) | ||
Eagle transaction | (67 | ) | ||
Settlement of contingent consideration: | ||||
Eagle transactio n | 58 | |||
Fair value at the end of the perio d | $ | (471 | ) | |
Six months ended June 30, 2021 | Six months ended June 30, 2020 | |||||||
(U.S. $ in millions) | ||||||||
Fair value at the beginning of the period | $ | (258 | ) | (448 | ) | |||
Redemption of debt securities | (9 | ) | — | |||||
Revaluation of debt securities | — | 1 | ||||||
Adjustments to provisions for contingent consideration: | ||||||||
Actavis Generics transaction | 22 | (15 | ) | |||||
Eagle transaction | (7 | ) | (67 | ) | ||||
Settlement of contingent consideration: | ||||||||
Eagle transaction | 48 | 58 | ||||||
Fair value at the end of the period | $ | (204 | ) | $ | (471 | ) |
Fair value* | Estimated fair value* | |||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Senior notes included under senior notes and loans | $ | 23,131 | $ | 22,686 | $ | 21,449 | $ | 22,684 | ||||||||
Senior notes and convertible senior debentures included under short-term debt | 1,595 | 2,318 | 3,548 | 3,207 | ||||||||||||
Total | $ | 24,726 | $ | 25,004 | $ | 24,997 | $ | 25,891 | ||||||||
* | The fair value was estimated based on quoted market prices. |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three months ended June 30, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 2,047 | 100 | % | $ | 2,071 | 100.0 | % | ||||||||
Gross profit | 1,090 | 53.3 | % | 1,067 | 51.5 | % | ||||||||||
R&D expenses | 154 | 7.5 | % | 175 | 8.5 | % | ||||||||||
S&M expenses | 254 | 12.4 | % | 269 | 13.0 | % | ||||||||||
G&A expenses | 110 | 5.4 | % | 117 | 5.6 | % | ||||||||||
Other (income) expense | (2 | ) | § | 2 | § | |||||||||||
Segment profit* | $ | 573 | 28.0 | % | $ | 504 | 24.3 | % | ||||||||
Three months ended June 30, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 1,943 | 100 | % | $ | 2,047 | 100 | % | ||||||||
Gross profit | 1,040 | 53.5 | % | 1,090 | 53.3 | % | ||||||||||
R&D expenses | 162 | 8.4 | % | 154 | 7.5 | % | ||||||||||
S&M expenses | 255 | 13.1 | % | 254 | 12.4 | % | ||||||||||
G&A expenses | 106 | 5.5 | % | 110 | 5.4 | % | ||||||||||
Other income | (5 | ) | § | (2 | ) | § | ||||||||||
Segment profit* | $ | 521 | 26.8 | % | $ | 573 | 28.0 | % | ||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than 0.5%. |
Three months ended June 30, | Percentage Change | |||||||||||
2020 | 2019 | 2019-2020 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 923 | $ | 946 | (2 | %) | ||||||
AJOVY | 34 | 23 | 50 | % | ||||||||
AUSTEDO | 161 | 96 | 67 | % | ||||||||
BENDEKA/TREANDA | 103 | 125 | (18 | %) | ||||||||
COPAXONE | 238 | 274 | (13 | %) | ||||||||
ProAir* | 66 | 65 | 2 | % | ||||||||
QVAR | 51 | 60 | (15 | %) | ||||||||
Anda | 374 | 351 | 7 | % | ||||||||
Other | 96 | 131 | (27 | %) | ||||||||
Total | $ | 2,047 | $ | 2,071 | (1 | %) | ||||||
Three months ended June 30, | Percentage Change | |||||||||||
2021 | 2020 | 2020-2021 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 951 | $ | 923 | 3 | % | ||||||
AJOVY | 46 | 34 | 32 | % | ||||||||
AUSTEDO | 174 | 161 | 8 | % | ||||||||
BENDEKA/TREANDA | 106 | 103 | 3 | % | ||||||||
COPAXONE | 152 | 238 | (36 | %) | ||||||||
ProAir* | 55 | 66 | (16 | %) | ||||||||
Anda | 316 | 374 | (16 | %) | ||||||||
Other | 144 | 147 | (2 | %) | ||||||||
Total | $ | 1,943 | $ | 2,047 | (5 | %) | ||||||
* | Does not include revenues from the ProAir authorized generic, which are included under generic products. |
Product Name | Brand Name | Launch Date | Total Annual U.S. Branded Sales at Time of Launch (U.S. $ in millions (IQVIA)) * | |||||
Deferasirox Tablets, 180mg | Jadenu ® | April | $ | 53 | ||||
Romidepsin Injection, 27.5 mg/5.5 mL (5 mg/mL) | ** | April | — | |||||
Vigabatrin for Oral Solution, USP, 500mg | Sabril ® | May | $ | 254 | ||||
Everolimus Tablets, 2.5mg, 5mg & 7.5mg | Afinitor ® | June | $ | 401 |
Product Name | Brand Name | Launch Date | Total Annual U.S. Branded Sales at Time of Launch (U.S. $ in millions (IQVIA)) * | |||||||
Mesalamine Suppositories | Canasa ® | April | $ | 66 | ||||||
Isotretinoin Capsules, USP | Absorica ® | April | $ | 156 | ||||||
Erythromycin Tablets, USP | n/a | May | $ | 45 | ||||||
Tiopronin Tablets | Thiola ® | May | $ | 81 | ** | |||||
Ivermectin Cream, 1% | Soolantra ® | June | $ | 111 | ||||||
Formoterol Fumarate Inhalation Solution | Perforomist | ® | June | $ | 300 |
* | The figures presented are for the twelve months ended in the calendar quarter immediately prior to our launch or re-launch. |
** | 10-K for the year ended December 31, 2020. |
Generic Name | Brand Name | Total Annual U.S. Branded Sales at Time of Launch (U.S. $ in millions (IQVIA)) * | ||||
Eliglustat Capsules, 84mg | Cerdelga ® | $ | 111 | |||
Icosapent Capsules, 500mg & 1000mg | Vascepa ® | $ | 972 | |||
Macitentan Tablets, 10mg | Opsumit ® | $ | 590 | |||
Pemetrexed Disodium Injection, 100mg vial | Alimta ® | $ | 255 |
Generic Name | Brand Name | Total Annual U.S. Branded Market (U.S. $ in millions (IQVIA)) * | ||||||
Lenalidomide Capsules, 2.5 mg and 20 mg | Revlimid | ® | $ | 179 | ||||
Pimavanserin Capsules, 34 mg | Nuplazid | ® | $ | 173 |
* | The figures presented are for the twelve months ended in the calendar quarter immediately prior to our launch or re-launch. |
(date entered phase 3) Fremanezumab Fibromyalgia | Fasinumab | |||||||
Osteoarthritic Pain (March 2016) (1) | ||||||||
TEV-48574 Respiratory | ||||||||
TEV-53275 Respiratory | ||||||||
Small Molecules | Deutetrabenazine (September 2019) | Risperidone LAI Schizophrenia (2) | ||||||
Digital Respiratory | Digihaler ® (budesonide and formoterol fumarate dihydrate) (EU) | |||||||
QVAR ® Digihaler® (beclomethasone dipropionate HFA) (U.S.) |
(1) | Developed in collaboration with Regeneron Pharmaceuticals, Inc. (“Regeneron”). co-primary endpoints for fasinumab 1 mg monthly were achieved. Fasinumab 1 mg monthly demonstrated significant improvements in pain and physical function over placebo at week 16 and week 24, respectively. Fasinumab 1 mg monthly also showed nominally significant benefits in physical function in two trials and pain in one trial, when compared to the maximumFDA-approved prescription doses ofnon-steroidal anti-inflammatory drugs for osteoarthritis. The FACT OA1 trial included an additional treatment arm, fasinumab 1 mg every two months, which showed numerical benefit over placebo, but did not reach statistical significance. In initial safety analyses from the phase 3 trials, there was an increase in arthropathies reported with fasinumab. In asub-group of patients from one phase 3 long-term safety trial, there was an increase in joint replacement with fasinumab 1 mg monthly treatment during theoff-drug follow-up period, although this increase was not seen in the other trials to date. |
(2) | In January 2021, we announced positive results for a phase 3 clinical trial | |||||||
Three months ended June 30, | ||||||||||||
2020 | 2019 | |||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||
Revenues | $ | 1,001 | 100% | $ | 1,183 | 100% | ||||||
Gross profit | 548 | 54.7% | 674 | 56.9% | ||||||||
R&D expenses | 65 | 6.5% | 70 | 5.9% | ||||||||
S&M expenses | 188 | 18.8% | 216 | 18.3% | ||||||||
G&A expenses | 52 | 5.2% | 70 | 5.9% | ||||||||
Other (income) expense | (1 | ) | § | 1 | § | |||||||
Segment profit* | $ | 244 | 24.3% | $ | 316 | 26.7% | ||||||
Three months ended June 30, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 1,184 | 100% | $1,001 | 100% | |||||||||||
Gross profit | 661 | 55.8% | 548 | 54.7% | ||||||||||||
R&D expenses | 63 | 5.3% | 65 | 6.5% | ||||||||||||
S&M expenses | 209 | 17.7% | 188 | 18.8% | ||||||||||||
G&A expenses | 47 | 4.0% | 52 | 5.2% | ||||||||||||
Other income | § | § | (1) | § | ||||||||||||
Segment profit* | $ | 343 | 28.9% | $244 | 24.3% | |||||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than $1 million or 0.5% |
Three months ended June 30, | Percentage Change | Three months ended June 30, | Percentage Change | |||||||||||||||||||||
2020 | 2019 | 2019-2020 | 2021 | 2020 | 2020-2021 | |||||||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||||||||||
Generic products | $ | 737 | $ | 844 | (13 | %) | $ | 878 | $ | 737 | 19 | % | ||||||||||||
AJOVY | 19 | 5 | 302 | % | ||||||||||||||||||||
COPAXONE | 84 | 107 | (21 | %) | 100 | 84 | 19 | % | ||||||||||||||||
Respiratory products | 80 | 89 | (11 | %) | 85 | 80 | 7 | % | ||||||||||||||||
AJOVY | 5 | 1 | 477 | % | ||||||||||||||||||||
Other | 95 | 142 | (33 | %) | 102 | 95 | 7 | % | ||||||||||||||||
Total | $ | 1,001 | $ | 1,183 | (15 | %) | $ | 1,184 | $ | 1,001 | 18 | % | ||||||||||||
Three months ended June 30, | ||||||||||||||||
2020 | 2019** | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 488 | 100 | % | $ | 582 | 100 | % | ||||||||
Gross profit | 247 | 50.8 | % | 312 | 53.7 | % | ||||||||||
R&D expenses | 19 | 3.9 | % | 24 | 4.0 | % | ||||||||||
S&M expenses | 105 | 21.4 | % | 119 | 20.5 | % | ||||||||||
G&A expenses | 29 | 6.0 | % | 34 | 5.9 | % | ||||||||||
Other (income) expense | (2 | ) | § | (1 | ) | § | ||||||||||
Segment profit* | $ | 97 | 19.9 | % | $ | 136 | 23.4 | % | ||||||||
Three months ended June 30, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 485 | 100% | $ | 488 | 100% | ||||||||||
Gross profit | 270 | 55.7% | 247 | 50.8% | ||||||||||||
R&D expenses | 18 | 3.6% | 19 | 3.9% | ||||||||||||
S&M expenses | 105 | 21.7% | 105 | 21.4% | ||||||||||||
G&A expenses | 25 | 5.1% | 29 | 6.0% | ||||||||||||
Other income | (1 | ) | § | (2 | ) | § | ||||||||||
Segment profit* | $ | 123 | 25.5% | $ | 97 | 19.9% | ||||||||||
* | Segment profit does not include amortization and certain other items. |
Three months ended June 30, | Percentage Change | |||||||||||
2020 | 2019* | 2019-2020 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 426 | $ | 489 | (13 | %) | ||||||
COPAXONE | 12 | 13 | (13 | %) | ||||||||
Other | 50 | 80 | (38 | %) | ||||||||
Total | $ | 488 | $ | 582 | (16 | %) | ||||||
Three months ended June 30, | Percentage Change | |||||||||||
2021 | 2020 | 2020-2021 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 407 | $ | 426 | (5 | %) | ||||||
COPAXONE | 7 | 12 | (35 | %) | ||||||||
Other | 71 | 50 | 42 | % | ||||||||
Total | $ | 485 | $ | 488 | (1 | %) | ||||||
Three months ended | ||||||||||||||||
. | Three months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
North America profit | $ | 573 | $ | 504 | $ | 521 | $ | 573 | ||||||||
Europe profit | 244 | 316 | 343 | 244 | ||||||||||||
International Markets profit | 97 | 136 | 123 | 97 | ||||||||||||
Total reportable segments profit | 914 | 956 | 987 | 914 | ||||||||||||
Profit of other activities | 66 | 55 | 47 | 66 | ||||||||||||
Total segments profit | 979 | 1,011 | 1,034 | 979 | ||||||||||||
Amounts not allocated to segments: | ||||||||||||||||
Amortization | 249 | 285 | 173 | 249 | ||||||||||||
Other assets impairments, restructuring and other items | 381 | 101 | 28 | 381 | ||||||||||||
Goodwill impairment | — | — | ||||||||||||||
Intangible asset impairments | 120 | 561 | 195 | 120 | ||||||||||||
Legal settlements and loss contingencies | 13 | 646 | 6 | 13 | ||||||||||||
Other unallocated amounts | 44 | 62 | 50 | 44 | ||||||||||||
Consolidated operating income (loss) | 173 | (644 | ) | 582 | 173 | |||||||||||
Financial expenses, net | 223 | 206 | 274 | 223 | ||||||||||||
Consolidated income (loss) before income taxes | $ | (51 | ) | $ | (850 | ) | $ | 308 | $ | (51 | ) | |||||
Six months ended June 30, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 4,129 | 100 | % | $ | 4,118 | 100.0 | % | ||||||||
Gross profit | 2,152 | 52.1 | % | 2,107 | 51.2 | % | ||||||||||
R&D expenses | 300 | 7.3 | % | 340 | 8.3 | % | ||||||||||
S&M expenses | 505 | 12.2 | % | 537 | 13.0 | % | ||||||||||
G&A expenses | 228 | 5.5 | % | 230 | 5.6 | % | ||||||||||
Other (income) expense | (4 | ) | § | (2 | ) | § | ||||||||||
Segment profit* | $ | 1,123 | 27.2 | % | $ | 1,001 | 24.3 | % | ||||||||
Six months ended June 30, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 3,932 | 100 | % | $ | 4,129 | 100 | % | ||||||||
Gross profit | 2,114 | 53.8 | % | 2,152 | 52.1 | % | ||||||||||
R&D expenses | 322 | 8.2 | % | 300 | 7.3 | % | ||||||||||
S&M expenses | 483 | 12.3 | % | 505 | 12.2 | % | ||||||||||
G&A expenses | 218 | 5.5 | % | 228 | 5.5 | % | ||||||||||
Other income | (7 | ) | § | (4 | ) | § | ||||||||||
Segment profit* | $ | 1,098 | 27.9 | % | $ | 1,123 | 27.2 | % | ||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than 0.5%. |
Six months ended June 30, | Percentage Change | |||||||||||
2020 | 2019 | 2019-2020 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 1,875 | $ | 1,913 | (2 | %) | ||||||
AJOVY | 63 | 43 | 47 | % | ||||||||
AUSTEDO | 283 | 171 | 66 | % | ||||||||
BENDEKA/TREANDA | 208 | 247 | (16 | %) | ||||||||
COPAXONE | 435 | 482 | (10 | %) | ||||||||
ProAir* | 125 | 123 | 2 | % | ||||||||
QVAR | 97 | 124 | (22 | %) | ||||||||
Anda | 800 | 729 | 10 | % | ||||||||
Other | 242 | 286 | (16 | %) | ||||||||
Total | $ | 4,129 | $ | 4,118 | § | |||||||
Six months ended June 30, | Percentage Change | |||||||||||
2021 | 2020 | 2020-2021 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 2,004 | $ | 1,875 | 7 | % | ||||||
AJOVY | 77 | 63 | 21 | % | ||||||||
AUSTEDO | 320 | 283 | 13 | % | ||||||||
BENDEKA/TREANDA | 197 | 208 | (6 | %) | ||||||||
COPAXONE | 315 | 435 | (28 | %) | ||||||||
ProAir* | 109 | 125 | (13 | %) | ||||||||
Anda | 605 | 800 | (24 | %) | ||||||||
Other | 305 | 338 | (10 | %) | ||||||||
Total | $ | 3,932 | $ | 4,129 | (5 | %) | ||||||
* | Does not include revenues from the ProAir authorized generic, which are included under generic products. |
Six months ended June 30, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 2,404 | 100 | % | $ | 2,448 | 100 | % | ||||||||
Gross profit | 1,371 | 57.1 | % | 1,404 | 57.4 | % | ||||||||||
R&D expenses | 120 | 5.0 | % | 136 | 5.5 | % | ||||||||||
S&M expenses | 390 | 16.2 | % | 431 | 17.6 | % | ||||||||||
G&A expenses | 118 | 4.9 | % | 119 | 4.9 | % | ||||||||||
Other (income) expense | (2 | ) | § | (1 | ) | § | ||||||||||
Segment profit* | $ | 746 | 31.0 | % | $ | 719 | 29.4 | % | ||||||||
Six months ended June 30, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 2,398 | 100 | % | $ | 2,404 | 100 | % | ||||||||
Gross profit | 1,349 | 56.2 | % | 1,371 | 57.0 | % | ||||||||||
R&D expenses | 129 | 5.4 | % | 120 | 5.0 | % | ||||||||||
S&M expenses | 424 | 17.7 | % | 390 | 16.2 | % | ||||||||||
G&A expenses | 117 | 4.9 | % | 118 | 4.9 | % | ||||||||||
Other (income) expense | (1 | ) | § | (2 | ) | § | ||||||||||
Segment profit* | $ | 680 | 28.4 | % | $ | 746 | 31.0 | % | ||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than 0.5%. |
Six months ended June 30, | ||||||||
2020 | 2019 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 1,769 | $ | 1,763 | ||||
COPAXONE | 193 | 221 | ||||||
Respiratory products | 186 | 181 | ||||||
AJOVY | 9 | 1 | ||||||
Other | 246 | 282 | ||||||
Total | $ | 2,404 | $ | 2,448 | ||||
Six months ended June 30, | ||||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 1,742 | $ | 1,769 | ||||
AJOVY | 35 | 9 | ||||||
COPAXONE | 201 | 193 | ||||||
Respiratory products | 179 | 186 | ||||||
Other | 242 | 246 | ||||||
Total | $ | 2,398 | $ | 2,404 | ||||
Six months ended June 30, | ||||||||||||||||
2020 | 2019** | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 1,053 | 100 | % | $ | 1,103 | 100 | % | ||||||||
Gross profit | 552 | 52.5 | % | 582 | 52.7 | % | ||||||||||
R&D expenses | 34 | 3.3 | % | 46 | 4.1 | % | ||||||||||
S&M expenses | 211 | 20.0 | % | 234 | 21.2 | % | ||||||||||
G&A expenses | 63 | 6.0 | % | 70 | 6.4 | % | ||||||||||
Other (income) expense | (8 | ) | (0.8 | %) | (1 | ) | § | |||||||||
Segment profit* | $ | 253 | 24.0 | % | $ | 233 | 21.1 | % | ||||||||
2021 | 2020 | |||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | ||||||||||||||||
Revenues | $ | 975 | 100 | % | $ | 1,053 | 100 | % | ||||||||
Gross profit | 530 | 54.4 | % | 552 | 52.5 | % | ||||||||||
R&D expenses | 35 | 3.6 | % | 34 | 3.3 | % | ||||||||||
S&M expenses | 201 | 20.7 | % | 211 | 20.0 | % | ||||||||||
G&A expenses | 51 | 5.2 | % | 63 | 6.0 | % | ||||||||||
Other (income) expense | (3 | ) | § | (8 | ) | (0.8 | %) | |||||||||
Segment profit* | $ | 245 | 25.2 | % | $ | 253 | 24.0 | % | ||||||||
* | Segment profit does not include amortization and certain other items. |
Six months ended June 30, | ||||||||
2020 | 2019* | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 875 | $ | 930 | ||||
COPAXONE | 23 | 27 | ||||||
Other | 154 | 147 | ||||||
Total | $ | 1,053 | $ | 1,103 | ||||
Six months ended June 30, | Percentage Change | |||||||||||
2021 | 2020 | 2020-2021 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 799 | $ | 875 | (9 | %) | ||||||
COPAXONE | 19 | 23 | (18 | %) | ||||||||
Other | 157 | 154 | 2 | % | ||||||||
Total | $ | 975 | $ | 1,053 | (7 | %) | ||||||
Six months ended June 30, | ||||||||||||||||
. | Six months ended June 30, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
(U.S.$ in millions) | (U.S. $ in millions) | |||||||||||||||
North America profit | $ | 1,123 | $ | 1,001 | $ | 1,098 | $ | 1,123 | ||||||||
Europe profit | 746 | 719 | 680 | 746 | ||||||||||||
International Markets profit | 253 | 233 | 245 | 253 | ||||||||||||
Total reportable segments profit | 2,121 | 1,954 | 2,023 | 2,121 | ||||||||||||
Profit (loss) of other activities | 102 | 76 | ||||||||||||||
Profit of other activities | 87 | 102 | ||||||||||||||
Total segments profit | 2,223 | 2,029 | 2,111 | 2,223 | ||||||||||||
Amounts not allocated to segments: | ||||||||||||||||
Amortization | 507 | 568 | 414 | 507 | ||||||||||||
Other asset impairments, restructuring and other items | 502 | 103 | ||||||||||||||
Other assets impairments, restructuring and other items | 165 | 502 | ||||||||||||||
Goodwill impairment | — | — | ||||||||||||||
Intangible asset impairments | 768 | 1,030 | 274 | 768 | ||||||||||||
Legal settlements and loss contingencies | (12 | ) | 703 | 110 | (12 | ) | ||||||||||
Other unallocated amounts | 93 | 136 | 132 | 93 | ||||||||||||
Consolidated operating income (loss) | 364 | (510 | ) | 1,015 | 364 | |||||||||||
Financial expenses, net | 448 | 425 | 564 | 448 | ||||||||||||
Consolidated income (loss) before income taxes | $ | (84 | ) | $ | (934 | ) | $ | 451 | $ | (84 | ) | |||||
Three Months Ended June 30, 2020 | Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | U.S. $ and shares in millions (except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Excluded for non-GAAP measurement | Non-GAAP | GAAP | Excluded for non-GAAP measurement | Non-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 | Amortization of purchased intangible assets | Legal settlements and loss contingencies | Impairment of long lived assets | Restructuring costs | Costs related to regulatory actions taken in facilities | Equity compensation | Contingent consideration | Other non-GAAP items* | Other items | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 3,910 | 3,910 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 2,107 | 219 | 6 | 6 | 16 | 1,859 | 2,037 | 148 | 8 | 6 | 50 | 1,826 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 1,873 | 148 | 8 | 6 | 50 | 2,084 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit margin | 47.9 | % | 53.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 225 | (13 | ) | 5 | 233 | 248 | 5 | 243 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 597 | 30 | 8 | 559 | 615 | 25 | 8 | 582 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 264 | 11 | 8 | 245 | 242 | 11 | 231 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (9 | ) | (4 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | (43 | ) | (37 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 13 | 13 | — | 6 | 6 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 381 | 277 | 33 | 76 | (6 | ) | — | 28 | 32 | (13 | ) | (19 | ) | 28 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairments | 120 | 120 | — | 195 | 195 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 582 | 173 | 6 | 226 | (13 | ) | 8 | 29 | (19 | ) | 42 | 1,034 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 223 | (5 | ) | 229 | 274 | 34 | 240 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 308 | 173 | 6 | 226 | (13 | ) | 8 | 29 | (19 | ) | 42 | 34 | 794 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | (104 | ) | (231 | ) | 128 | 98 | (36 | ) | 133 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share in (profits) losses of associated companies – net | (11 | ) | (3 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 221 | 173 | 6 | 226 | (13 | ) | 8 | 29 | (19 | ) | 42 | (5 | ) | 669 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | (87 | ) | (105 | ) | 19 | 14 | (3 | ) | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | 249 | 13 | 396 | (13 | ) | 33 | 6 | 30 | 76 | 15 | (342 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Teva | 207 | 173 | 6 | 226 | (13 | ) | 8 | 29 | (19 | ) | 42 | (8 | ) | 651 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS - Basic | 0.13 | 0.42 | 0.55 | 0.19 | 0.40 | 0.59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | 0.13 | 0.42 | 0.55 | 0.19 | 0.40 | 0.59 |
* | Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, such as certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events. |
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Excluded for non-GAAP measurement | Non-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 | |||||||||||||||||||||||||||||||||||||||
Net revenues | 3,870 | 3,870 | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 2,107 | 219 | 6 | 6 | 16 | 1,859 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit | 1,763 | 219 | 6 | 6 | 16 | 2,011 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit margin | 45.5 | % | 52.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 225 | (13 | ) | 5 | 233 | |||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 597 | 30 | 8 | 559 | ||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 264 | 11 | 8 | 245 | ||||||||||||||||||||||||||||||||||||||||||||
Other income | (9 | ) | (4 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 13 | 13 | — | |||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 381 | 277 | 33 | 76 | (6 | ) | — | |||||||||||||||||||||||||||||||||||||||||
Intangible assets impairments | 120 | 120 | — | |||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 173 | 249 | 13 | 396 | (13 | ) | 33 | 6 | 30 | 76 | 14 | 979 | ||||||||||||||||||||||||||||||||||||
Financial expenses, net | 223 | (5 | ) | 229 | ||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (51 | ) | 249 | 13 | 396 | (13 | ) | 33 | 6 | 30 | 76 | 14 | (5 | ) | 751 | |||||||||||||||||||||||||||||||||
Income taxes | (104 | ) | (231 | ) | 128 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 53 | 249 | 13 | 396 | (13 | ) | 33 | 6 | 30 | 76 | 14 | (237 | ) | 623 | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | (87 | ) | (105 | ) | 19 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Teva | 140 | 249 | 13 | 396 | (13 | ) | 33 | 6 | 30 | 76 | 14 | (342 | ) | 605 | ||||||||||||||||||||||||||||||||||
EPS - Basic | 0.13 | 0.42 | 0.55 | |||||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | 0.13 | 0.42 | 0.55 |
* | Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, such as certain accelerated depreciation expenses and inventory write offs, primarily related to the rationalization of our plants and other unusual events. |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | U.S. $ and shares in millions (except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Excluded for non-GAAP measurement | Non-GAAP | GAAP | Excluded for non-GAAP measurement | Non-GAAP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | Legal settlements and loss contingencies | Impairment of long lived assets | Restructuring costs | Costs related to regulatory actions taken in facilities | Equity compensation | Contingent consideration | Gain on sale of business | Other non-GAAP items | Other items | Corresponding tax effect | Amortization of purchased intangible assets | Legal settlements and loss contingencies | Impairment of long -lived assets | Restructuring costs | Costs related to regulatory actions taken in facilities | Equity compensation | Contingent consideration | Other non-GAAP items* | Other items | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales* | 2,284 | 249 | 12 | 7 | 26 | 1,989 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | 7,892 | 7,892 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 4,141 | 363 | 13 | 12 | 91 | 3,663 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 3,750 | 363 | 13 | 12 | 91 | 4,228 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit margin | 47.5 | % | 53.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 276 | 6 | 271 | 501 | 10 | 5 | 487 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 666 | 35 | 10 | 621 | 1,200 | 52 | 18 | — | 1,131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 296 | 12 | (2 | ) | 286 | 532 | 21 | 0 | 510 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (9 | ) | (9 | ) | — | (48 | ) | (37 | ) | (11 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 646 | 646 | — | 110 | 110 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 101 | 48 | 47 | 24 | (18 | ) | — | 165 | 80 | 69 | (16 | ) | 33 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairments | 561 | 561 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairment | 274 | 274 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 1,015 | 414 | 110 | 354 | 69 | 13 | 60 | (16 | ) | 92 | 2,111 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 206 | 8 | 198 | 564 | 98 | 467 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 451 | 414 | 110 | 354 | 69 | 13 | 60 | (16 | ) | 92 | 98 | 1,644 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | (179 | ) | (312 | ) | 134 | 159 | (120 | ) | 280 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share in (profits) losses of associated companies – net | (14 | ) | (1 | ) | (13 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 306 | 414 | 110 | 354 | 69 | 13 | 60 | (16 | ) | 92 | (24 | ) | 1,377 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | 18 | (8 | ) | 26 | 21 | (6 | ) | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | 285 | 646 | 609 | 47 | 12 | 35 | 24 | (9 | ) | 6 | — | (312 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Teva | 284 | 414 | 110 | 354 | 69 | 13 | 60 | (16 | ) | 92 | (30 | ) | 1,350 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS - Basic | (0.63 | ) | 1.23 | 0.60 | 0.26 | 0.97 | 1.23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | (0.63 | ) | 1.23 | 0.60 | 0.26 | 0.96 | 1.22 |
* | Other other unusual events. |
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Excluded for non-GAAP measurement | Non GAAP | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | Legal settlements and loss contingencies | Impairment of long- lived assets | Restructuring costs | Costs related to regulatory actions taken in facilities | Equity compensation | Contingent consideration | Other non GAAP items | Other items | Corresponding tax effect | |||||||||||||||||||||||||||||||||||||||
Cost of sales | 4,402 | 443 | 11 | 12 | 32 | 3,905 | ||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 446 | 9 | (17 | ) | 454 | |||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 1,210 | 64 | 17 | 1,129 | ||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 567 | 21 | 12 | 535 | ||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (22 | ) | (3 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | (12 | ) | (12 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 502 | 352 | 73 | 83 | (5 | ) | — | |||||||||||||||||||||||||||||||||||||||||
Intangible assets impairment | 768 | 768 | — | |||||||||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 448 | 6 | 442 | |||||||||||||||||||||||||||||||||||||||||||||
Income taxes | (163 | ) | (465 | ) | 303 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | (131 | ) | (169 | ) | 38 | |||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | 507 | (12 | ) | 1,121 | 73 | 11 | 60 | 83 | 18 | (163 | ) | (465 | ) | |||||||||||||||||||||||||||||||||||
EPS - Basic | 0.19 | 1.12 | 1.32 | |||||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | 0.19 | 1.12 | 1.31 |
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||
GAAP | Excluded for non-GAAP measurement | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangible assets | Legal settlements and loss contingencies | Impairment of long- lived assets | Restructuring costs | Costs related to regulatory actions taken in facilities | Equity compensation | Contingent consideration | Other non-GAAP items* | Other items | ||||||||||||||||||||||||||||||||||||
Net revenue | 8,227 | 8,227 | ||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 4,402 | 443 | 11 | 12 | 32 | 3,905 | ||||||||||||||||||||||||||||||||||||||
Gross profit | 3,826 | 443 | 11 | 12 | 32 | 4,322 | ||||||||||||||||||||||||||||||||||||||
Gross profit margin | 46.5 | % | 52.5 | % | ||||||||||||||||||||||||||||||||||||||||
R&D expenses | 446 | 9 | (17 | ) | 454 | |||||||||||||||||||||||||||||||||||||||
S&M expenses | 1,210 | 64 | 17 | 1,129 | ||||||||||||||||||||||||||||||||||||||||
G&A expenses | 567 | 21 | 12 | 535 | ||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (22 | ) | (3 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | (12 | ) | (12 | ) | — | |||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 502 | 352 | 73 | 83 | (5 | ) | — | |||||||||||||||||||||||||||||||||||||
Intangible assets impairment | 768 | 768 | — | |||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 364 | 507 | (12 | ) | 1,121 | 73 | 11 | 60 | 83 | 18 | — | 2,223 | ||||||||||||||||||||||||||||||||
Financial expenses, net | 448 | 6 | 442 | |||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (84 | ) | 507 | (12 | ) | 1,121 | 73 | 11 | 60 | 83 | 18 | 6 | 1,781 | |||||||||||||||||||||||||||||||
Income taxes | (163 | ) | (465 | ) | 303 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) attributtible to Teva | 78 | 507 | (12 | ) | 1,121 | 73 | 11 | 60 | 83 | 18 | (460 | ) | 1,478 | |||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | (131 | ) | (169 | ) | 38 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | 209 | 507 | (12 | ) | 1,121 | 73 | 11 | 60 | 83 | 18 | (629 | ) | 1,440 | |||||||||||||||||||||||||||||||
EPS - Basic | 0.19 | 1.32 | ||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | 0.19 | 1.31 |
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. $ and shares in millions (except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Excluded for non-GAAP measurement | Non 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 | Gain on sale of business | Other non GAAP items | Other items | Corresponding tax effect | Unusual tax item* | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales** | 4,577 | 497 | 16 | 14 | 61 | 3,988 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 537 | 11 | 525 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 1,313 | 71 | 20 | 1,223 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 589 | 24 | (1 | ) | 566 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (15 | ) | (9 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 703 | 703 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 103 | 68 | 2 | 79 | (47 | ) | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairment | 1,030 | 1,030 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 425 | 6 | 419 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corresponding tax effect | (170 | ) | (490 | ) | 61 | 259 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share in losses of associated companies – net | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | 26 | (16 | ) | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reconciled items | 568 | 703 | 1,098 | 2 | 79 | 16 | 69 | (47 | ) | (9 | ) | 60 | (10 | ) | (490 | ) | 61 | |||||||||||||||||||||||||||||||||||||||||||
EPS - Basic | (0.73 | ) | 1.93 | 1.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | (0.73 | ) | 1.93 | 1.20 |
* | Other other unusual events. |
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 |
* | Filed herewith. |
TEVA PHARMACEUTICAL INDUSTRIES LIMITED | ||||||
Date: | By: | /s/ Eli Kalif | ||||
Name: | Eli Kalif | |||||
Title: | Executive Vice President, Chief Financial Officer (Duly Authorized Officer) |