☒ | 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 | Not | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) | |
124 Dvora HaNevi’a St., Tel Aviv, ISRAEL | 6944020 | |
(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 | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
PART I. | ||||||||||
Item 1. | ||||||||||
Consolidated Balance Sheets | 5 | |||||||||
6 | ||||||||||
Consolidated Statements of Comprehensive Income (loss) | 7 | |||||||||
Consolidated statements of changes in equity | 8 | |||||||||
Consolidated Statements of Cash Flows | 10 | |||||||||
Notes to Consolidated Financial Statements | 11 | |||||||||
Item 2. | ||||||||||
Item 3. | ||||||||||
Item 4. | ||||||||||
PART II. | ||||||||||
Item 1. | ||||||||||
Item 1A. | ||||||||||
Item 2. | ||||||||||
Item 3. | ||||||||||
Item 4. | ||||||||||
Item 5. | Other Information | 75 | ||||||||
Item 6. | Exhibits | 76 | ||||||||
Signatures | 77 |
ITEM 1. | FINANCIAL STATEMENTS |
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,045 | $ | 2,177 | ||||
Accounts receivables, net of allowance for credit losses of $119 million and $126 million as of September 30, 2021 and December 31, 2020 | 4,046 | 4,581 | ||||||
Inventories | 4,167 | 4,403 | ||||||
Prepaid expenses | 1,066 | 945 | ||||||
Other current assets | 805 | 710 | ||||||
Assets held for sale | 25 | 189 | ||||||
Total current assets | 12,154 | 13,005 | ||||||
Deferred income taxes | 622 | 695 | ||||||
Other non-current assets | 518 | 538 | ||||||
Property, plant and equipment, net | 6,040 | 6,296 | ||||||
Operating lease right-of-use | 507 | 559 | ||||||
Identifiable intangible assets, net | 7,832 | 8,923 | ||||||
Goodwill | 20,179 | 20,624 | ||||||
Total assets | $ | 47,851 | $ | 50,640 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 2,709 | $ | 3,188 | ||||
Sales reserves and allowances | 4,241 | 4,824 | ||||||
Accounts payables | 1,514 | 1,756 | ||||||
Employee-related obligations | 555 | 685 | ||||||
Accrued expenses | 2,035 | 1,780 | ||||||
Other current liabilities | 770 | 933 | ||||||
Total current liabilities | 11,825 | 13,164 | ||||||
Long-term liabilities: | ||||||||
Deferred income taxes | 910 | 964 | ||||||
Other taxes and long-term liabilities | 2,203 | 2,240 | ||||||
Senior notes and loans | 21,037 | 22,731 | ||||||
Operating lease liabilities | 425 | 479 | ||||||
Total long-term liabilities | 24,575 | 26,414 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Total liabilities | 36,400 | 39,579 | ||||||
Equity: | ||||||||
Teva shareholders’ equity: | ||||||||
Ordinary shares of NIS 0.10 par value per share; September 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 | 27,529 | 27,443 | ||||||
Accumulated deficit | (10,370 | ) | (10,946 | ) | ||||
Accumulated other comprehensive loss | (2,620 | ) | (2,399 | ) | ||||
Treasury shares as of September 30, 2021 and December 31, 2020 — 106 million ordinary shares | (4,128 | ) | (4,128 | ) | ||||
10,467 | 10,026 | |||||||
Non-controlling interests | 984 | 1,035 | ||||||
Total equity | 11,451 | 11,061 | ||||||
Total liabilities and equity | $ | 47,851 | $ | 50,640 | ||||
September 30, | December 31, | |||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,225 | $ | 2,165 | ||||
Accounts receivables, net of allowance for credit losses of $94 million and $90 million as of September 30, 2022 and December 31, 2021 | 3,730 | 4,529 | ||||||
Inventories | 3,859 | 3,818 | ||||||
Prepaid expenses | 1,045 | 1,075 | ||||||
Other current assets | 579 | 965 | ||||||
Assets held for sale | 16 | 19 | ||||||
Total current assets | 11,453 | 12,573 | ||||||
Deferred income taxes | 1,546 | 596 | ||||||
Other non-current assets | 438 | 515 | ||||||
Property, plant and equipment, net | 5,568 | 5,982 | ||||||
Operating lease right-of-use | 422 | 495 | ||||||
Identifiable intangible assets, net | 6,393 | 7,466 | ||||||
Goodwill | 18,433 | 20,040 | ||||||
Total assets | $ | 44,252 | $ | 47,666 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 2,769 | $ | 1,426 | ||||
Sales reserves and allowances | 3,648 | 4,241 | ||||||
Accounts payables | 1,635 | 1,686 | ||||||
Employee-related obligations | 496 | 563 | ||||||
Accrued expenses | 2,041 | 2,208 | ||||||
Other current liabilities | 945 | 903 | ||||||
Total current liabilities | 11,534 | 11,027 | ||||||
Long-term liabilities: | ||||||||
Deferred income taxes | 503 | 784 | ||||||
Other taxes and long-term liabilities | 3,846 | 2,578 | ||||||
Senior notes and loans | 18,497 | 21,617 | ||||||
Operating lease liabilities | 354 | 416 | ||||||
Total long-term liabilities | 23,200 | 25,395 | ||||||
Commitments and contingencies | ||||||||
Total liabilities | 34,734 | 36,422 | ||||||
Equity: | ||||||||
Teva shareholders’ equity: | ||||||||
Ordinary shares of NIS 0.10 par value per share; September 30, 2022 and December 31, 2021: authorized 2,495 million shares; issued 1,216 million shares and 1,209 million shares, respectively. | 57 | 57 | ||||||
Additional paid-in capital | 27,652 | 27,561 | ||||||
Accumulated deficit | (11,660 | ) | (10,529 | ) | ||||
Accumulated other comprehensive loss | (3,153 | ) | (2,683 | ) | ||||
Treasury shares as of September 30, 2022 and December 31, 2021: 106 million ordinary shares | (4,128 | ) | (4,128 | ) | ||||
8,767 | 10,278 | |||||||
Non-controlling interests | 751 | 966 | ||||||
Total equity | 9,519 | 11,244 | ||||||
Total liabilities and equity | $ | 44,252 | $ | 47,666 | ||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenues | $ | 3,887 | $ | 3,978 | $ | 11,778 | $ | 12,206 | ||||||||
Cost of sales | 2,093 | 2,126 | 6,234 | 6,528 | ||||||||||||
Gross profit | 1,794 | 1,852 | 5,544 | 5,678 | ||||||||||||
Research and development expenses | 222 | 258 | 723 | 704 | ||||||||||||
Selling and marketing expenses | 597 | 605 | 1,798 | 1,815 | ||||||||||||
General and administrative expenses | 291 | 279 | 822 | 846 | ||||||||||||
Intangible assets impairments | 21 | 509 | 295 | 1,278 | ||||||||||||
Goodwill impairment | 0 | 4,628 | 0 | 4,628 | ||||||||||||
Other assets impairments, restructuring and other items | 62 | (98 | ) | 227 | 404 | |||||||||||
Legal settlements and loss contingen c ies | 3 | 21 | 113 | 10 | ||||||||||||
Other income | (25 | ) | (8 | ) | (73 | ) | (30 | ) | ||||||||
Operating income (loss) | 623 | (4,342 | ) | 1,638 | (3,978 | ) | ||||||||||
Financial expenses, net | 241 | 117 | 805 | 565 | ||||||||||||
Income (loss) before income taxes | 382 | (4,459 | ) | 833 | (4,543 | ) | ||||||||||
Income taxes (benefit) | 76 | 16 | 235 | (147 | ) | |||||||||||
Share in (profits) losses of associated companies, net | 5 | (136 | ) | (9 | ) | (135 | ) | |||||||||
Net income (loss) | 302 | (4,340 | ) | 608 | (4,261 | ) | ||||||||||
Net income (loss) attributable to non-controlling interests | 11 | 10 | 32 | (121 | ) | |||||||||||
Net income (loss) attributable to Teva | 292 | (4,349 | ) | 576 | (4,140 | ) | ||||||||||
Earnings (loss) per share attributable to ordinary shareholders: | ||||||||||||||||
Basic | $ | 0.26 | $ | (3.97 | ) | $ | 0.52 | $ | (3.78 | ) | ||||||
Diluted | $ | 0.26 | $ | (3.97 | ) | $ | 0.52 | $ | (3.78 | ) | ||||||
Weighted average number of shares (in millions): | ||||||||||||||||
Basic | 1,103 | 1,096 | 1,102 | 1,095 | ||||||||||||
Diluted | 1,109 | 1,096 | 1,109 | 1,095 | ||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net revenues | $ | 3,595 | $ | 3,887 | $ | 11,041 | $ | 11,778 | ||||||||
Cost of sales | 1,926 | 2,093 | 5,839 | 6,234 | ||||||||||||
Gross profit | 1,669 | 1,794 | 5,203 | 5,544 | ||||||||||||
Research and development expenses | 175 | 222 | 628 | 723 | ||||||||||||
Selling and marketing expenses | 539 | 597 | 1,716 | 1,798 | ||||||||||||
General and administrative expenses | 283 | 291 | 892 | 822 | ||||||||||||
Intangible assets impairments | 24 | 21 | 223 | 295 | ||||||||||||
Goodwill impairment | — | — | 745 | — | ||||||||||||
Other assets impairments, restructuring and other items | 36 | 62 | 282 | 227 | ||||||||||||
Legal settlements and loss contingencies | 195 | 3 | 2,048 | 113 | ||||||||||||
Other income | (2 | ) | (25 | ) | (88 | ) | (73 | ) | ||||||||
Operating income (loss) | 419 | 623 | (1,244 | ) | 1,638 | |||||||||||
Financial expenses, net | 252 | 241 | 721 | 805 | ||||||||||||
Income (loss) before income taxes | 166 | 382 | (1,964 | ) | 833 | |||||||||||
Income taxes (benefit) | 107 | 76 | (792 | ) | 235 | |||||||||||
Share in (profits) losses of associated companies, net | 1 | 5 | (20 | ) | (9 | ) | ||||||||||
Net income (loss) | 58 | 302 | (1,152 | ) | 608 | |||||||||||
Net income (loss) attributable to non-controlling interests | 3 | 11 | (21 | ) | 32 | |||||||||||
Net income (loss) attributable to Teva | 56 | 292 | (1,132 | ) | 576 | |||||||||||
Earnings (loss) per share attributable to ordinary shareholders: | ||||||||||||||||
Basic | $ | 0.05 | $ | 0.26 | $ | (1.02 | ) | $ | 0.52 | |||||||
Diluted | $ | 0.05 | $ | 0.26 | $ | (1.02 | ) | $ | 0.52 | |||||||
Weighted average number of shares (in millions): | ||||||||||||||||
Basic | 1,111 | 1,103 | 1,109 | 1,102 | ||||||||||||
Diluted | 1,119 | 1,109 | 1,109 | 1,109 | ||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) | $ | 302 | $ | (4,340 | ) | $ | 608 | $ | (4,261 | ) | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Currency translation adjustment | (195 | ) | 70 | (325 | ) | (348 | ) | |||||||||
Unrealized gain (loss) from derivative financial instrum e nts, net | 7 | 9 | 21 | 46 | ||||||||||||
Unrealized loss on defined benefit plans | 1 | 0 | 2 | 0 | ||||||||||||
Total other comprehensive income (loss) | (187 | ) | 79 | (302 | ) | (302 | ) | |||||||||
Total comprehensive income (loss) | 115 | (4,261 | ) | 306 | (4,563 | ) | ||||||||||
Comprehensive income (loss) attributable to non-controlling interests | (3 | ) | 27 | (49 | ) | (92 | ) | |||||||||
Comprehensive income (loss) attributable to Teva | $ | 118 | $ | (4,288 | ) | $ | 355 | $ | (4,471 | ) | ||||||
Three months ended | Nine | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net income (loss) | $ | 58 | $ | 302 | $ | (1,152 | ) | $ | 608 | |||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Currency translation adjustment | (402 | ) | (195 | ) | (684 | ) | (325 | ) | ||||||||
Unrealized gain (loss) from derivative financial instruments, net | 7 | 7 | 21 | 21 | ||||||||||||
Unrealized loss on defined benefit plans | — | 1 | — | 2 | ||||||||||||
Total other comprehensive income (loss) | (395 | ) | (187 | ) | (663 | ) | (302 | ) | ||||||||
Total comprehensive income (loss) | (337 | ) | 115 | (1,815 | ) | 306 | ||||||||||
Comprehensive income (loss) attributable to non-controlling interests | (40 | ) | (3 | ) | (214 | ) | (49 | ) | ||||||||
Comprehensive income (loss) attributable to Teva | $ | (297 | ) | $ | 118 | $ | (1,601 | ) | $ | 355 | ||||||
Teva shareholders’ equity | Teva shareholders’ equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares | 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 | 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) | (U.S. dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 1,209 | 57 | 27,503 | (10,662 | ) | (2,446 | ) | (4,128 | ) | 10,324 | 987 | 11,311 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 1,216 | 57 | 27,625 | (11,716 | ) | (2,801 | ) | (4,128 | ) | 9,037 | 791 | 9,828 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (loss) | 292 | 292 | 11 | 302 | 56 | 56 | 3 | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (174 | ) | (174 | ) | (13 | ) | (187 | ) | (352 | ) | (352 | ) | (43 | ) | (395 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Shares | * | * | * | * | * | * | * | * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 26 | 26 | 26 | 26 | 26 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 1,209 | $ | 57 | $ | 27,529 | $ | (10,370 | ) | $ | (2,620 | ) | $ | (4,128 | ) | $ | 10,467 | $ | 984 | $ | 11,451 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | 1,216 | $ | 57 | $ | 27,652 | $ | (11,660 | ) | $ | (3,153 | ) | $ | (4,128 | ) | $ | 8,767 | $ | 751 | $ | 9,519 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
* | 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 June 30, 2020 | 1,202 | 57 | 27,374 | (6,747 | ) | (2,703 | ) | (4,128 | ) | 13,852 | 972 | 14,824 | ||||||||||||||||||||||||
Net Income (loss) | (4,349 | ) | (4,349 | ) | 10 | (4,340 | ) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | 61 | 61 | 18 | 79 | ||||||||||||||||||||||||||||||||
Issuance of Shares | * | * | * | * | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 29 | 29 | 29 | |||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 1,202 | $ | 57 | $ | 27,403 | $ | (11,096 | ) | $ | (2,643 | ) | $ | (4,128 | ) | $ | 9,593 | $ | 999 | $ | 10,592 | ||||||||||||||||
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 June 30, 2021 | 1,209 | 57 | 27,503 | (10,662 | ) | (2,446 | ) | (4,128 | ) | 10,324 | 987 | 11,311 | ||||||||||||||||||||||||
Net Income (loss) | 292 | 292 | 11 | 302 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (174 | ) | (174 | ) | (13 | ) | (187 | ) | ||||||||||||||||||||||||||||
Issuance of Shares | * | * | * | * | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 26 | 26 | 26 | |||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 1,209 | $ | 57 | $ | 27,529 | $ | (10,370 | ) | $ | (2,620 | ) | $ | (4,128 | ) | $ | 10,467 | $ | 984 | $ | 11,451 | ||||||||||||||||
* | Represents an amount less than $0.5 million. |
Teva shareholders’ equity | Teva shareholders’ equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares | 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 | 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) | (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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 1,209 | 57 | 27,561 | (10,529 | ) | (2,683 | ) | (4,128 | ) | 10,278 | 966 | 11,244 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (loss) | 576 | 576 | 32 | 608 | (1,132 | ) | (1,132 | ) | (21 | ) | (1,152 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (221 | ) | (221 | ) | (81 | ) | (302 | ) | (470 | ) | (470 | ) | (193 | ) | (663 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Shares | 7 | * | * | * | 7 | * | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 86 | 86 | 86 | 88 | 88 | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 1,209 | $ | 57 | $ | 27,529 | $ | (10,370 | ) | $ | (2,620 | ) | $ | (4,128 | ) | $ | 10,467 | $ | 984 | $ | 11,451 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | 1,216 | $ | 57 | $ | 27,652 | $ | (11,660 | ) | $ | (3,153 | ) | $ | (4,128 | ) | $ | 8,767 | $ | 751 | $ | 9,519 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
* | 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) | (4,140 | ) | (4,140 | ) | (121 | ) | (4,261 | ) | ||||||||||||||||||||||||||||
Other comprehensive i n come(loss) | (331 | ) | (331 | ) | 29 | (302 | ) | |||||||||||||||||||||||||||||
Issuance of shares | 4 | * | * | * | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 91 | 91 | 91 | |||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 1,202 | $ | 57 | $ | 27,403 | $ | (11,096 | ) | $ | (2,643 | ) | $ | (4,128 | ) | $ | 9,593 | $ | 999 | $ | 10,592 | ||||||||||||||||
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) | 576 | 576 | 32 | 608 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (221 | ) | (221 | ) | (81 | ) | (302 | ) | ||||||||||||||||||||||||||||
Issuance of shares | 7 | * | * | * | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 86 | 86 | 86 | |||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 1,209 | $ | 57 | $ | 27,529 | $ | (10,370 | ) | $ | (2,620 | ) | $ | (4,128 | ) | $ | 10,467 | $ | 984 | $ | 11,451 | ||||||||||||||||
* | Represents an amount less than $0.5 million. |
Nine months ended | ||||||||
September 30, | ||||||||
2021 | 2020 | |||||||
Operating activities: | ||||||||
Net income (loss) | $ | 608 | $ | (4,261 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by o p erations: | ||||||||
Depreciation and amortization | 1,010 | 1,162 | ||||||
Impairment of long-lived assets and assets held for sale | 401 | 6,314 | ||||||
Net change in operating assets and liabilities | (1,881 | ) | (1,627 | ) | ||||
Deferred income taxes – net and uncertain tax positions | 13 | (656 | ) | |||||
Stock-based compensation | 86 | 91 | ||||||
Net loss (gain) from investments and from sale of long lived assets | 109 | (232 | ) | |||||
Research and development in process | 0 | 40 | ||||||
Other items | (4 | ) | 54 | |||||
Net cash provided by (used in) operating activities | 342 | 885 | ||||||
Investing activities: | ||||||||
Beneficial interest collected in exchange for securitized accounts receivables | 1,278 | 1,102 | ||||||
Purchases of property, plant and equipment | (409 | ) | (402 | ) | ||||
Proceeds from sale of business and long lived assets | 269 | 54 | ||||||
Proceeds from sale of investments | 172 | 12 | ||||||
Other investing activities | (33 | ) | (44 | ) | ||||
Net cash provided by investing activities | 1,277 | 722 | ||||||
Financing activities: | ||||||||
Repayment of senior notes and loans and other long-term liabilities | (1,475 | ) | (1,871 | ) | ||||
Proceeds from short term debt | 500 | 231 | ||||||
Repayment of short term debt | (200 | ) | (116 | ) | ||||
Redemption of convertible senior notes | (491 | ) | 0 | |||||
Other financing activities | (5 | ) | (4 | ) | ||||
Net cash used in financing activities | (1,671 | ) | (1,760 | ) | ||||
Translation adjustment on cash and cash equivalents | (80 | ) | 5 | |||||
Net change in cash and cash equivalents | (132 | ) | (148 | ) | ||||
Balance of cash and cash equivalents at beginning of period | 2,177 | 1,975 | ||||||
Balance of cash and cash equivalents at end of period | $ | 2,045 | $ | 1,827 | ||||
Non-cash financing and investing activities: | ||||||||
Beneficial interest obtained in exchange for securitized accounts receivables | $ | 1,310 | $ | 1,055 |
Nine months ended | ||||||||
September 30, | ||||||||
2022 | 2021 | |||||||
Operating activities: | ||||||||
Net income (loss) | $ | (1,152 | ) | $ | 608 | |||
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||||||||
Depreciation and amortization | 1,002 | 1,010 | ||||||
Impairment of goodwill, long-lived assets and assets held for sale | 1,002 | 401 | ||||||
Net change in operating assets and liabilities | 1,007 | (1,881 | ) | |||||
Deferred income taxes – net and uncertain tax positions | (1,214 | ) | 13 | |||||
Stock-based compensation | 88 | 86 | ||||||
Other items | (117 | ) | (4 | ) | ||||
Net loss (gain) from investments and from sale of long lived assets | 1 | 109 | ||||||
Net cash provided by (used in) operating activities | 617 | 342 | ||||||
Investing activities: | ||||||||
Beneficial interest collected in exchange for securitized trade receivables | 854 | 1,278 | ||||||
Purchases of property, plant and equipment | (406 | ) | (409 | ) | ||||
Proceeds from sale of business and long lived assets | 45 | 269 | ||||||
Acquisition of businesses, net of cash acquired | (7 | ) | — | |||||
Proceeds from sale of investments | 4 | 172 | ||||||
Purchases of investments and other assets | (2 | ) | (36 | ) | ||||
Other investing activities | — | 3 | ||||||
Net cash provided by (used in) investing activities | 488 | 1,277 | ||||||
Financing activities: | ||||||||
Redemption of convertible senior notes | — | (491 | ) | |||||
Proceeds from short term debt | — | 500 | ||||||
Repayment of short term debt | — | (200 | ) | |||||
Repayment of senior notes and loans | (661 | ) | (1,475 | ) | ||||
Other financing activities | (115 | ) | (5 | ) | ||||
Net cash provided by (used in) financing activities | (776 | ) | (1,671 | ) | ||||
Translation adjustment on cash and cash equivalents | (269 | ) | (80 | ) | ||||
Net change in cash, cash equivalents and restricted cash | 60 | (132 | ) | |||||
Balance of cash, cash equivalents and restricted cash at beginning of period | 2,198 | 2,177 | ||||||
Balance of cash, cash equivalents and restricted cash at end of period | $ | 2,258 | $ | 2,045 | ||||
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: | ||||||||
Cash and cash equivalents | 2,225 | 2,045 | ||||||
Restricted cash included in other current assets . . | 33 | — | ||||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 2,258 | 2,045 | ||||||
Non-cash financing and investing activities: | ||||||||
Beneficial interest obtained in exchange for securitized accounts receivables | $ | 883 | $ | 1,310 |
a. Basis of presentation |
b. Significant accounting policies |
September 30, | December 31, | |||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Inventories | — | 2 | ||||||
Property, plant and equipment, net and others | 46 | 86 | ||||||
Goodwill | — | 7 | ||||||
Adjustments of assets held for sale to fair value | (30 | ) | (76 | ) | ||||
Total assets of the disposal group classified as held for sale in the consolidated balance sheets | $ | 16 | $ | 19 | ||||
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets, recorded under accrued expenses and other long-term liabilities | $ | — | $ | (43 | ) | |||
Three months ended September 30, 2022 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 1,393 | 1,034 | 445 | 149 | 3,021 | |||||||||||||||
Licensing arrangements | 37 | 10 | 4 | 1 | 52 | |||||||||||||||
Distribution | 371 | § | 12 | — | 383 | |||||||||||||||
Other | 9 | 26 | 14 | 91 | 139 | |||||||||||||||
$ | 1,809 | $ | 1,069 | $ | 475 | $ | 241 | $ | 3,595 | |||||||||||
Three months ended September 30, 2021 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 1,487 | 1,197 | 495 | 160 | 3,340 | |||||||||||||||
Licensing arrangements | 22 | 11 | 4 | 1 | 38 | |||||||||||||||
Distribution | 363 | § | 15 | — | 378 | |||||||||||||||
Other | 2 | 11 | 15 | 102 | 130 | |||||||||||||||
$ | 1,875 | $ | 1,220 | $ | 530 | $ | 262 | $ | 3,887 | |||||||||||
Nine months ended September 30, 2022 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 4,308 | 3,295 | 1,338 | 505 | 9,447 | |||||||||||||||
Licensing arrangements | 111 | 36 | 12 | 3 | 162 | |||||||||||||||
Distribution | 1,021 | 1 | 38 | — | 1,060 | |||||||||||||||
Other | 10 | 65 | 33 | 266 | 373 | |||||||||||||||
$ | 5,450 | $ | 3,396 | $ | 1,422 | $ | 773 | 11,041 | ||||||||||||
Nine months ended September 30, 2021 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 4,776 | 3,560 | 1,397 | 534 | 10,268 | |||||||||||||||
Licensing arrangements | 62 | 32 | 9 | 3 | 106 | |||||||||||||||
Distribution | 968 | § | 49 | — | 1,018 | |||||||||||||||
Other | § | 25 | 50 | 312 | 387 | |||||||||||||||
$ | 5,807 | $ | 3,618 | $ | 1,505 | $ | 849 | $ | 11,778 | |||||||||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Inventories | 7 | 146 | ||||||
Property, plant and equipment, net and others | 32 | 312 | ||||||
Goodwill | 13 | 27 | ||||||
Adjustments of assets held for sale to fair value | (27 | ) | (296 | ) | ||||
Total assets of the disposal group classified as held for sale in the consolidated balance sheets | $ | 25 | $ | 189 | ||||
Three months ended September 30, 2021 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 1,487 | 1,197 | 495 | 160 | 3,340 | |||||||||||||||
Licensing arrangements | 22 | 11 | 4 | 1 | 38 | |||||||||||||||
Distribution | 363 | § | 15 | 0 | 378 | |||||||||||||||
Other | 2 | 11 | 15 | 102 | 130 | |||||||||||||||
$ | 1,875 | $ | 1,220 | $ | 530 | $ | 262 | $ | 3,887 | |||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 1,660 | 1,116 | 478 | 173 | 3,427 | |||||||||||||||
Licensing arrangements | 17 | 7 | 2 | 1 | 27 | |||||||||||||||
Distribution | 341 | § | 9 | 0 | 350 | |||||||||||||||
Other | (1) | (8 | ) | 41 | 142 | 174 | ||||||||||||||
$ | 2,017 | $ | 1,116 | $ | 529 | $ | 316 | $ | 3,978 | |||||||||||
Nine months ended September 30, 2021 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 4,776 | 3,560 | 1,397 | 534 | 10,268 | |||||||||||||||
Licensing arrangements | 62 | 32 | 9 | 3 | 106 | |||||||||||||||
Distribution | 968 | § | 49 | 0 | 1,018 | |||||||||||||||
Other | § | 25 | 50 | 312 | 387 | |||||||||||||||
$ | 5,807 | $ | 3,618 | $ | 1,505 | $ | 849 | 11,778 | ||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||
North America | Europe | International Markets | Other activities | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Sale of goods | 4,943 | 3,487 | 1,417 | 561 | 10,408 | |||||||||||||||
Licensing arrangements | 59 | 22 | 6 | 3 | 90 | |||||||||||||||
Distribution | 1,141 | 3 | 21 | 0 | 1,165 | |||||||||||||||
Other | 3 | 9 | 138 | 394 | 543 | |||||||||||||||
$ | 6,146 | $ | 3,520 | $ | 1,582 | $ | 957 | $ | 12,206 | |||||||||||
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 | 285 | 3,060 | 617 | 5,949 | 207 | 246 | 10,079 | 10,364 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods | (5 | ) | (94 | ) | (46 | ) | (31 | ) | (53 | ) | (25 | ) | (249 | ) | (254 | ) | ||||||||||||||||
Credits and payments | (293 | ) | (3,286 | ) | (595 | ) | (5,983 | ) | (265 | ) | (247 | ) | (10,376 | ) | (10,669 | ) | ||||||||||||||||
Translation differences | 0 | (22 | ) | (5 | ) | (4 | ) | (4 | ) | (2 | ) | (37 | ) | (37 | ) | |||||||||||||||||
Balance at September 30, 2021 | $ | 67 | 1,712 | $ | 799 | $ | 1,039 | $ | 571 | $ | 120 | $ | 4,241 | $ | 4,308 | |||||||||||||||||
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, 2021 | $ | 68 | $ | 1,655 | $ | 854 | $ | 1,085 | $ | 535 | $ | 112 | $ | 4,241 | $ | 4,309 | ||||||||||||||||
Provisions related to sales made in current year | 269 | 2,832 | 684 | 5,656 | 219 | 226 | 9,617 | 9,886 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods | — | (103 | ) | (15 | ) | (28 | ) | (9 | ) | (3 | ) | (158 | ) | (158 | ) | |||||||||||||||||
Credits and payments | (285 | ) | (2,845 | ) | (762 | ) | (5,826 | ) | (300 | ) | (213 | ) | (9,946 | ) | (10,231 | ) | ||||||||||||||||
Translation differences | — | (66 | ) | (11 | ) | (17 | ) | (8 | ) | (4 | ) | (106 | ) | (106 | ) | |||||||||||||||||
Balance at September 30, 2022 | $ | 52 | 1,473 | $ | 750 | $ | 870 | $ | 437 | $ | 118 | $ | 3,648 | $ | 3,700 | |||||||||||||||||
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 | 285 | 3,060 | 617 | 5,949 | 207 | 246 | 10,079 | 10,364 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods | (5 | ) | (94 | ) | (46 | ) | (31 | ) | (53 | ) | (25 | ) | (249 | ) | (254 | ) | ||||||||||||||||
Credits and payments | (293 | ) | (3,286 | ) | (595 | ) | (5,983 | ) | (265 | ) | (247 | ) | (10,376 | ) | (10,669 | ) | ||||||||||||||||
Translation differences | — | (22 | ) | (5 | ) | (4 | ) | (4 | ) | (2 | ) | (37 | ) | (37 | ) | |||||||||||||||||
Balance at September 30, 2021 | $ | 67 | $ | 1,712 | $ | 799 | $ | 1,039 | $ | 571 | $ | 120 | $ | 4,241 | $ | 4,308 | ||||||||||||||||
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 | 285 | 3,649 | 566 | 6,268 | 299 | 55 | 10,837 | 11,122 | ||||||||||||||||||||||||
Provisions related to sales made in prior periods | — | (192 | ) | (116 | ) | (33 | ) | (11 | ) | 2 | (350 | ) | (350 | ) | ||||||||||||||||||
Credits and payments | (298 | ) | (4,224 | ) | (650 | ) | (6,418 | ) | (289 | ) | (79 | ) | (11,660 | ) | (11,958 | ) | ||||||||||||||||
Translation differences | — | 10 | 4 | 2 | 0 | (4 | ) | 12 | 12 | |||||||||||||||||||||||
Balance at September 30, 2020 | $ | 74 | $ | 2,138 | $ | 913 | $ | 1,161 | $ | 636 | $ | 150 | $ | 4,998 | $ | 5,072 | ||||||||||||||||
September 30, 2021 | December 31, 2020 | |||||||
(U.S. $ in millions) | ||||||||
Finished products | $ | 2,089 | $ | 2,378 | ||||
Raw and packaging materials | 1,285 | 1,231 | ||||||
Products in process | 631 | 605 | ||||||
Materials in transit and payments on account | 161 | 189 | ||||||
Total | $ | 4,167 | $ | 4,403 | ||||
September 30, | December 31, | |||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Finished products | $ | 1,801 | $ | 1,932 | ||||
Raw and packaging materials | 1,292 | 1,136 | ||||||
Products in process | 606 | 587 | ||||||
Materials in transit and payments on account | 160 | 163 | ||||||
Total | $ | 3,859 | $ | 3,818 | ||||
Gross carrying amount net of impairment | Accumulated amortization | Net carrying amount | ||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||||||
Product rights | $ | 19,034 | $ | 19,650 | $ | 12,234 | $ | 12,094 | $ | 6,800 | $ | 7,556 | ||||||||||||
Trade names | 635 | 621 | 226 | 165 | 409 | 456 | ||||||||||||||||||
In process research and development | 623 | 911 | 0 | — | 623 | 911 | ||||||||||||||||||
Total | $ | 20,292 | $ | 21,182 | $ | 12,460 | $ | 12,259 | $ | 7,832 | $ | 8,923 | ||||||||||||
Gross carrying amount net of impairment | Accumulated amortization | Net carrying amount | ||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||||||
Product rights | $ | 17,599 | $ | 18,815 | $ | 12,050 | $ | 12,318 | $ | 5,548 | $ | 6,497 | ||||||||||||
Trade names | 556 | 590 | 216 | 198 | 340 | 392 | ||||||||||||||||||
In process research and development | 505 | 577 | — | — | 505 | 577 | ||||||||||||||||||
Total | $ | 18,660 | $ | 19,982 | $ | 12,267 | $ | 12,516 | $ | 6,393 | $ | 7,466 | ||||||||||||
(a) | Identifiable product rights of $169 million related to updated market assumptions regarding price and volume of products acquired from Actavis Generics, and |
(b) | IPR&D assets of and launch date). |
(a) | Identifiable product rights and trade names of $209 million due to: (i) ® )and (ii) $179 million, mainly related to updated market assumptions regarding price and |
(b) | IPR&D assets of $86 million, |
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 | ) | (6 | ) | (13 | ) | ||||||||||||||
Translation differences | 0 | (388 | ) | (44 | ) | (432 | ) | |||||||||||||
Balance as of September 30, 2021 (1) | $ | 6,473 | $ | 8,707 | $ | 2,318 | $ | 2,681 | $ | 20,179 | ||||||||||
North America | Europe | International Markets | Other | Total | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Balance as of December 31, 2021 (1) | $ | 6,474 | $ | 8,544 | $ | 2,328 | $ | 2,694 | $ | 20,040 | ||||||||||
Changes during the period: | ||||||||||||||||||||
Goodwill impairment | — | — | (479 | ) | (266 | ) | (745 | ) | ||||||||||||
Goodwill acquired | 12 | 12 | ||||||||||||||||||
Translation differences | (27 | ) | (559 | ) | (67 | ) | (221 | ) | (874 | ) | ||||||||||
Balance as of September 30, 2022 (1) | $ | 6,447 | $ | 7,985 | $ | 1,782 | $ | 2,219 | $ | 18,433 | ||||||||||
(1) | Accumulated goodwill impairment as of September 30, $25.6 billion, respectively. |
September 30 , | December 31, | |||||||||||||||
Weighted average interest rate as of September 30, 2021 | Maturity | 2021 | 2020 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Convertible senior debentures | 0.25 | % | 2026 | 23 | 514 | |||||||||||
Revolving Credit Facility(1) | LIBOR+1.75 | % | 300 | 0 | ||||||||||||
Current maturities of long-term liabilities | 2,386 | 2,674 | ||||||||||||||
Total short-term debt | $ | 2,709 | $ | 3,188 | ||||||||||||
September 30, | December 31, | |||||||||||||||
Weighted average interest rate as of September 30, 2022 | Maturity | 2022 | 2021 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Convertible senior debentures | 0.25 | % | 2026 | 23 | 23 | |||||||||||
Current maturities of long-term liabilities | 2,746 | 1,403 | ||||||||||||||
Total short-term debt | $ | 2,769 | $ | 1,426 | ||||||||||||
Weighted average interest rate as of September 30, 2021 | Maturity | September 30, 2021 | December 31, 2020 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Senior notes EUR 1,500 million | 1.13 | % | 2024 | 1,735 | 1,839 | |||||||||||
Senior notes EUR 1,300 million | 1.25 | % | 2023 | 1,505 | 1,595 | |||||||||||
Senior notes EUR 1,000 million | 6.00 | % | 2025 | 1,160 | 1,230 | |||||||||||
Senior notes EUR 900 million | 4.50 | % | 2025 | 1,044 | 1,107 | |||||||||||
Senior notes EUR 750 million | 1.63 | % | 2028 | 864 | 916 | |||||||||||
Senior notes EUR 700 million | 3.25 | % | 2022 | 812 | 861 | |||||||||||
Senior notes EUR 700 million | 1.88 | % | 2027 | 810 | 860 | |||||||||||
Senior notes USD 3,500 million | 3.15 | % | 2026 | 3,495 | 3,495 | |||||||||||
Senior notes USD 1,475 million (1) | 2.20 | % | 2021 | 0 | 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 |
Weighted average interest rate as of September 30, 2022 | Maturity | September 30, 2022 | December 31, 2021 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Senior notes EUR 1,500 million | 1.13 | % | 2024 | 614 | 708 | |||||||||||
Sustainability-linked senior notes EUR 1,500 million (1)(*) | 4.38 | % | 2030 | 1472 | 1,699 | |||||||||||
Senior notes EUR 1,300 million | 1.25 | % | 2023 | 578 | 670 | |||||||||||
Sustainability-linked senior notes EUR 1,100 million (2)(*) | �� | 3.75 | % | 2027 | 1080 | 1,246 | ||||||||||
Senior notes EUR 1,000 million | 6.00 | % | 2025 | 983 | 1,134 | |||||||||||
Senior notes EUR 900 million | 4.50 | % | 2025 | 883 | 1,020 | |||||||||||
Senior notes EUR 750 million | 1.63 | % | 2028 | 733 | 844 | |||||||||||
Senior notes EUR 700 million (3) | 3.25 | % | 2022 | — | 307 | |||||||||||
Senior notes EUR 700 million | 1.88 | % | 2027 | 686 | 792 | |||||||||||
Senior notes USD 3,500 million | 3.15 | % | 2026 | 3,496 | 3,496 | |||||||||||
Senior notes USD 3,000 million | 2.80 | % | 2023 | 1,453 | 1,453 | |||||||||||
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 | |||||||||||
Sustainability-linked senior notes USD 1,000 million (2)(*) | 4.75 | % | 2027 | 1,000 | 1,000 | |||||||||||
Sustainability-linked senior notes USD 1,000 million (1)(*) | 5.13 | % | 2029 | 1,000 | 1,000 | |||||||||||
Senior notes USD 844 million | 2.95 | % | 2022 | 715 | 715 | |||||||||||
Senior notes USD 789 million | 6.15 | % | 2036 | 783 | 783 | |||||||||||
Senior notes CHF 350 million (4) | 0.50 | % | 2022 | — | 382 | |||||||||||
Senior notes CHF 350 million | 1.00 | % | 2025 | 360 | 383 | |||||||||||
Total senior notes | 21,322 | 23,118 | ||||||||||||||
Other long-term debt | 2 | 2 | ||||||||||||||
Less current maturities | (2,746 | ) | (1,403 | ) | ||||||||||||
Less debt issuance costs | (81 | ) | (100 | ) | ||||||||||||
Total senior notes and loans | $ | 18,497 | $ | 21,617 | ||||||||||||
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 | 586 | 586 | |||||||||||
Senior notes CHF 350 million | 0.50 | % | 2022 | 374 | 397 | |||||||||||
Senior notes CHF 350 million | 1.00 | % | 2025 | 375 | 398 | |||||||||||
Total senior notes | 23,491 | 25,490 | ||||||||||||||
Other long-term debt | 1.23 | % | 2026 | 2 | 1 | |||||||||||
Less current maturities | (2,386 | ) | (2,674 | ) | ||||||||||||
Less debt issuance costs | (69 | ) | (86 | ) | ||||||||||||
Total senior notes and loans | $ | 21,037 | $ | 22,731 | ||||||||||||
(1) | If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.125%-0.375% per annum, from and including May 9, 2026. |
(2) | If Teva fails to achieve certain sustainability performance targets, a one-time premium payment of0.15%-0.45% out of the principal amount will be paid at maturity or upon earlier redemption, if such redemption is on or after May 9, 2026. |
(3) | In repaid 296 million of its |
(4) | In July 2022, Teva repaid $ 365 million of its 0.50% senior notes at maturity. |
(*) | Interest rate adjustments and a potential one-time premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 8c. |
Fair value | ||||||||
Not designated as hedging instruments | ||||||||
September 30, 2021 | December 31, 2020 | |||||||
Reported under | (U.S. $ in millions) | |||||||
Asset derivatives: | ||||||||
Other current assets: | ||||||||
Option and forward contracts | $ | 45 | $ | 24 | ||||
Liability derivatives: | ||||||||
Other current liabilities: | ||||||||
Option and forward contracts | (23 | ) | (79 | ) |
Fair value | ||||||||
Not designated as hedging instruments | ||||||||
September 30, 2022 | December 31, 2021 | |||||||
Reported under | (U.S. $ in millions) | |||||||
Asset derivatives: | ||||||||
Other current assets: | ||||||||
Option and forward contracts | $ | 94 | $ | 30 | ||||
Liability derivatives: | ||||||||
Other current liabilities: | ||||||||
Option and forward contracts | (53 | ) | (23 | ) |
Financial expenses, net | Other comprehensive income (loss) | |||||||||||||||
Three months ended, | Three months ended, | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 241 | $ | 117 | $ | (187 | ) | $ | 79 | |||||||
Cross-currency swaps—net investment hedge (1) | 0 | 0 | 0 | 0 |
Financial expenses, net | Other comprehensive income (loss) | |||||||||||||||
Nine months ended, | Nine months ended, | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 805 | $ | 565 | $ | (302 | ) | $ | (302 | ) | ||||||
Cross-currency swaps—net investment hedge (1) | 0 | (2 | ) | 0 | (21 | ) |
Financial expenses, net | Net revenues | |||||||||||||||
Three months ended, | Three months ended, | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 241 | $ | 117 | $ | (3,887 | ) | $ | (3,978 | ) | ||||||
Option and forward contracts (2) | (9 | ) | 40 | 0— | 0— | |||||||||||
Option and forward contracts economic hedge (3) | 0— | 0— | (16 | ) | 3 |
Financial expenses, net | Net revenues | |||||||||||||||
Three months ended, | Three months ended, | |||||||||||||||
September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 252 | $ | 241 | $ | (3,595 | ) | $ | (3,887 | ) | ||||||
Option and forward contracts (1) | (6 | ) | (9 | ) | — | — | ||||||||||
Option and forward contracts economic hedge (2) | — | — | (34 | ) | (16 | ) |
Financial expenses, net | Net revenues | |||||||||||||||
Nine months ended, | Nine months ended, | |||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 805 | $ | 565 | $ | (11,778 | ) | $ | (12,206 | ) | ||||||
Option and forward contracts (2) | (51 | ) | 78 | 0— | 0— | |||||||||||
Option and forward contracts economic hedge (3) | 0— | 0— | (29 | ) | (37 | ) |
Financial expenses, net | Net revenues | |||||||||||||||
Nine months ended, | Nine months ended, | |||||||||||||||
September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||
Reported under | (U.S. $ in millions) | |||||||||||||||
Line items in which effects of hedges are recorded | $ | 721 | $ | 805 | $ | (11,041 | ) | $ | (11,778 | ) | ||||||
Option and forward contracts (1) | (48 | ) | (51 | ) | — | — | ||||||||||
Option and forward contracts economic hedge (2) | — | — | (69 | ) | (29 | ) |
(1) |
Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net. |
Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, , Polish zloty and some other currencies to protect its projected operating results for 2 and 3 . These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. In of cash flows. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Impairments of long-lived tangible assets (1) | $ | 26 | $ | 56 | $ | 106 | $ | 408 | ||||||||
Contingent consideration | 9 | (179 | ) | (7 | ) | (96 | ) | |||||||||
Restructuring | 28 | 9 | 96 | 82 | ||||||||||||
Other | (1 | ) | 15 | 32 | 10 | |||||||||||
Total | $ | 62 | $ | (98 | ) | $ | 227 | $ | 404 | |||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
Impairments of long-lived tangible assets (1) | $ | 4 | $ | 26 | $ | 34 | $ | 106 | ||||||||
Contingent consideration | 6 | 9 | 100 | (7 | ) | |||||||||||
Restructuring | 25 | 28 | 117 | 96 | ||||||||||||
Other | 1 | (1 | ) | 31 | 32 | |||||||||||
Total | $ | 36 | $ | 62 | $ | 282 | $ | 227 | ||||||||
(1) | Including impairments related to exit and disposal |
Three months ended September 30, | ||||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | 24 | $ | 3 | ||||
Other | 4 | 7 | ||||||
Total | $ | 28 | $ | 9 | ||||
Nine months ended September 30, | ||||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | 84 | $ | 39 | ||||
Other | 12 | 43 | ||||||
Total | $ | 96 | $ | 82 | ||||
Three months ended September 30, | ||||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | 32 | $ | 24 | ||||
Other | (7 | ) | 4 | |||||
Total | $ | 25 | $ | 28 | ||||
Nine months ended September 30, | ||||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Restructuring | ||||||||
Employee termination | $ | 95 | $ | 84 | ||||
Other | 22 | 12 | ||||||
Total | $ | 117 | $ | 96 | ||||
Employee termination costs | Other | Total | ||||||||||
(U.S. $ in millions ) | ||||||||||||
Balance as of January 1, 2021 | $ | (115 | ) | $ | (7 | ) | $ | (122 | ) | |||
Provision | (84 | ) | (12 | ) | (96 | ) | ||||||
Utilization and other* | 78 | 12 | 90 | |||||||||
Balance as of September 30, 2021 | $ | (121 | ) | $ | (7 | ) | $ | (128 | ) | |||
Employee termination costs | Other | Total | ||||||||||
(U.S. $ in millions ) | ||||||||||||
Balance as of January 1, 2022 | $ | (131 | ) | $ | (7 | ) | $ | (138 | ) | |||
Provision | (95 | ) | (22 | ) | (117 | ) | ||||||
Utilization and other* | 114 | 22 | 136 | |||||||||
Balance as of September 30, 2022 | $ | (112 | ) | $ | (7 | ) | $ | (119 | ) | |||
Employee termination costs | Other | Total | ||||||||||
(U.S. $ in millions ) | ||||||||||||
Balance as of January 1, 2020 | $ | (208 | ) | $ | (7 | ) | $ | (215 | ) | |||
Provision | (39 | ) | (43 | ) | (82 | ) | ||||||
Utilization and other* | 145 | 43 | 188 | |||||||||
Balance as of September 30, 2020 | $ | (102 | ) | $ | (7 | ) | $ | (109 | ) | |||
Employee termination costs | Other | Total | ||||||||||
(U.S. $ in millions ) | ||||||||||||
Balance as of January 1, 2021 | $ | (115 | ) | $ | (7 | ) | $ | (122 | ) | |||
Provision | (84 | ) | (12 | ) | (96 | ) | ||||||
Utilization and other* | 78 | 12 | 90 | |||||||||
Balance as of September 30, 2021 | $ | (121 | ) | $ | (7 | ) | $ | (128 | ) | |||
* | 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 | (270 | ) | — | — | (270 | ) | ||||||||||
Amounts reclassified to the statements of income | — | 27 | 2 | 29 | ||||||||||||
Net other comprehensive income (loss) before tax | (270 | ) | 27 | 2 | (241 | ) | ||||||||||
Corresponding income tax | 26 | (6 | ) | — | 20 | |||||||||||
Net other comprehensive income (loss) after tax* | (244 | ) | 21 | 2 | (221 | ) | ||||||||||
Balance as of September 30, 2021, net of taxes | $ | (2,163 | ) | $ | (342 | ) | $ | (115 | ) | $ | (2,620 | ) | ||||
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, 2021, net of taxes | $ | (2,274 | ) | $ | (324 | ) | $ | (85 | ) | $ | (2,683 | ) | ||||
Other comprehensive income (loss) before reclassifications | (438 | ) | — | — | (438 | ) | ||||||||||
Amounts reclassified to the statements of income | — | 21 | — | 21 | ||||||||||||
Net other comprehensive income (loss) before tax | (438 | ) | 21 | — | (417 | ) | ||||||||||
Corresponding income tax | (53 | ) | — | — | (53 | ) | ||||||||||
Net other comprehensive income (loss) after tax* | (491 | ) | 21 | — | (470 | ) | ||||||||||
Balance as of September 30, 2022, net of taxes | $ | (2,765 | ) | $ | (303 | ) | $ | (85 | ) | $ | (3,153 | ) | ||||
* | Amounts do not include a 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 | (418 | ) | 20 | — | (398 | ) | ||||||||||
Amounts reclassified to the statements of income | — | 26 | — | 26 | ||||||||||||
Net other comprehensive income (loss) before tax | (418 | ) | 46 | — | (372 | ) | ||||||||||
Corresponding income tax | 41 | — | — | 41 | ||||||||||||
Net other comprehensive income (loss) after tax* | (377 | ) | 46 | — | (331 | ) | ||||||||||
Balance as of September 30, 2020, net of taxes | $ | (2,171 | ) | $ | (374 | ) | $ | (98 | ) | $ | (2,643 | ) | ||||
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 | (270 | ) | — | — | (270 | ) | ||||||||||
Amounts reclassified to the statements of income | — | 27 | 2 | 29 | ||||||||||||
Net other comprehensive income (loss) before tax | (270 | ) | 27 | 2 | (241 | ) | ||||||||||
Corresponding income tax | 26 | (6 | ) | — | 20 | |||||||||||
Net other comprehensive income (loss) after tax* | (244 | ) | 21 | 2 | (221 | ) | ||||||||||
Balance as of September 30, 2021, net of taxes | $ | (2,163 | ) | $ | (342 | ) | $ | (115 | ) | $ | (2,620 | ) | ||||
* | Amounts do not include a n $81million non-controlling interests. |
(a) | North America segment, which includes the United States and Canada. |
(b) | Europe segment, which includes the European Union, the United Kingdom and certain other European countries. |
(c) | International Markets segment, which includes all countries other than those in the North America and Europe segments. |
Three months ended September 30, | ||||||||||||
2021 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 1,875 | $ | 1,220 | $ | 530 | ||||||
Gross profit | 967 | 714 | 296 | |||||||||
R&D expenses | 146 | 55 | 16 | |||||||||
S&M expenses | 250 | 204 | 102 | |||||||||
G&A expenses | 121 | 64 | 29 | |||||||||
Other income | (7 | ) | (2 | ) | (2 | ) | ||||||
Segment profit | $ | 458 | $ | 394 | $ | 152 | ||||||
Three months ended September 30, | ||||||||||||
2022 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 1,809 | $ | 1,069 | $ | 475 | ||||||
Gross profit | 942 | 634 | 252 | |||||||||
R&D expenses | 111 | 44 | 15 | |||||||||
S&M expenses | 232 | 169 | 97 | |||||||||
G&A expenses | 122 | 61 | 30 | |||||||||
Other income | § | § | (2 | ) | ||||||||
Segment profit | $ | 477 | $ | 360 | $ | 112 | ||||||
Three months ended September 30, | ||||||||||||
2020 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 2,017 | $ | 1,116 | $ | 529 | ||||||
Gross profit | 1,056 | 637 | 275 | |||||||||
R&D expenses | 155 | 60 | 17 | |||||||||
S&M expenses | 250 | 200 | 101 | |||||||||
G&A expenses | 97 | 66 | 33 | |||||||||
Other income | (5 | ) | (1 | ) | (1 | ) | ||||||
Segment profit | $ | 560 | $ | 312 | $ | 125 | ||||||
§ | Represents an amount less than $0.5 million. |
Three months ended September 30, | ||||||||||||
2021 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 1,875 | $ | 1,220 | $ | 530 | ||||||
Gross profit | 967 | 714 | 296 | |||||||||
R&D expenses | 146 | 55 | 16 | |||||||||
S&M expenses | 250 | 204 | 102 | |||||||||
G&A expenses | 121 | 64 | 29 | |||||||||
Other income | (7 | ) | (2 | ) | (2 | ) | ||||||
Segment profit | $ | 458 | $ | 394 | $ | 152 | ||||||
Nine months ended September 30, | ||||||||||||
2022 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 5,450 | $ | 3,396 | $ | 1,422 | ||||||
Gross profit | 2,841 | 2,031 | 780 | |||||||||
R&D expenses | 401 | 157 | 54 | |||||||||
S&M expenses | 733 | 561 | 293 | |||||||||
G&A expenses | 361 | 183 | 89 | |||||||||
Other income | (12 | ) | (1 | ) | (43 | ) | ||||||
Segment profit | $ | 1,359 | $ | 1,130 | $ | 386 | ||||||
Nine months ended September 30, | ||||||||||||
2021 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 5,807 | $ | 3,618 | $ | 1,505 | ||||||
Gross profit | 3,081 | 2,063 | 826 | |||||||||
R&D expenses | 467 | 184 | 51 | |||||||||
S&M expenses | 734 | 628 | 303 | |||||||||
G&A expenses | 338 | 180 | 79 | |||||||||
Other income | (14 | ) | (3 | ) | (5 | ) | ||||||
Segment profit | $ | 1,556 | $ | 1,074 | $ | 398 | ||||||
Nine months ended September 30, | ||||||||||||
2021 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 5,807 | $ | 3,618 | $ | 1,505 | ||||||
Gross profit | 3,081 | 2,063 | 826 | |||||||||
R&D expenses | 467 | 184 | 51 | |||||||||
S&M expenses | 734 | 628 | 303 | |||||||||
G&A expenses | 338 | 180 | 79 | |||||||||
Other income | (14 | ) | (3 | ) | (5 | ) | ||||||
Segment profit | $ | 1,556 | $ | 1,074 | $ | 398 | ||||||
Nine months ended September 30, | ||||||||||||
2020 | ||||||||||||
North America | Europe | International Markets | ||||||||||
(U.S. $ in millions) | ||||||||||||
Revenues | $ | 6,146 | $ | 3,520 | $ | 1,582 | ||||||
Gross profit | 3,208 | 2,009 | 828 | |||||||||
R&D expenses | 455 | 180 | 51 | |||||||||
S&M expenses | 755 | 590 | 312 | |||||||||
G&A expenses | 325 | 184 | 96 | |||||||||
Other income | (9 | ) | (3 | ) | (10 | ) | ||||||
Segment profit | $ | 1,682 | $ | 1,058 | $ | 378 | ||||||
. | Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
North America profit | $ | 458 | $ | 560 | $ | 1,556 | $ | 1,682 | ||||||||
Europe profit | 394 | 312 | 1,074 | 1,058 | ||||||||||||
International Markets prof i t | 152 | 125 | 398 | 378 | ||||||||||||
Total reportable segments profit | 1,004 | 997 | 3,028 | 3,118 | ||||||||||||
Profit of other activities | 38 | 28 | 125 | 130 | ||||||||||||
Total segments profit | 1,042 | 1,025 | 3,153 | 3,248 | ||||||||||||
Amounts not allocated to segments: | ||||||||||||||||
Amortization | 199 | 251 | 613 | 758 | ||||||||||||
Other assets impairments, restructuring and other items | 62 | (98 | ) | 227 | 404 | |||||||||||
Goodwill impairment | 0 | 4,628 | 0 | 4,628 | ||||||||||||
Intangible asset impairments | 21 | 509 | 295 | 1,278 | ||||||||||||
Legal settlements and loss contingencies | 3 | 21 | 113 | 10 | ||||||||||||
Other unallocated amounts | 134 | 55 | 266 | 148 | ||||||||||||
Consolidated operating income (loss) | 623 | (4,342 | ) | 1,638 | (3,978 | ) | ||||||||||
Financial expenses, net | 241 | 117 | 805 | 565 | ||||||||||||
Consolidated income (loss) before income taxes | $ | 382 | $ | (4,459 | ) | $ | 833 | $ | (4,543 | ) | ||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
North America profit | $ | 477 | $ | 458 | $ | 1,359 | $ | 1,556 | ||||||||
Europe profit | 360 | 394 | 1,130 | 1,074 | ||||||||||||
International Markets profit | 112 | 152 | 386 | 398 | ||||||||||||
Total reportable segments profit | 949 | 1,004 | 2,875 | 3,028 | ||||||||||||
Profit of other activities | 29 | 38 | 135 | 125 | ||||||||||||
Total segments profit | 977 | 1,042 | 3,010 | 3,153 | ||||||||||||
Amounts not allocated to segments: | ||||||||||||||||
Amortization | 165 | 199 | 576 | 613 | ||||||||||||
Other assets impairments, restructuring and other items | 36 | 62 | 282 | 227 | ||||||||||||
Goodwill impairment | — | — | 745 | — | ||||||||||||
Intangible assets impairments | 24 | 21 | 223 | 295 | ||||||||||||
Legal settlements and loss contingencies | 195 | 3 | 2,048 | 113 | ||||||||||||
Other unallocated amounts | 139 | 134 | 379 | 266 | ||||||||||||
Consolidated operating income (loss) | 419 | 623 | (1,244 | ) | 1,638 | |||||||||||
Financial expenses, net | 252 | 241 | 721 | 805 | ||||||||||||
Consolidated income (loss) before income taxes | $ | 166 | $ | 382 | $ | (1,964 | ) | $ | 833 | |||||||
North America | Three months ended September 30, | |||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 806 | $ | 859 | ||||
AJOVY | 57 | 46 | ||||||
AUSTEDO | 260 | 201 | ||||||
BENDEKA ® /TREANDA® | 77 | 95 | ||||||
COPAXONE | 105 | 133 | ||||||
Anda | 371 | 363 | ||||||
Other | 133 | 178 | ||||||
Total | $ | 1,809 | $ | 1,875 | ||||
North America | Nine months ended September 30, | |||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 2,731 | $ | 2,864 | ||||
AJOVY | 142 | 123 | ||||||
AUSTEDO | 618 | 520 | ||||||
BENDEKA/TREANDA | 241 | 292 | ||||||
COPAXONE | 285 | 448 | ||||||
Anda | 1,021 | 968 | ||||||
Other | 411 | 592 | ||||||
Total | $ | 5,450 | $ | 5,807 | ||||
Europe | Three months ended September 30, | |||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 803 | $ | 895 | ||||
AJOVY | 30 | 23 | ||||||
COPAXONE | 63 | 95 | ||||||
Respiratory products | 62 | 85 | ||||||
Other | 111 | 122 | ||||||
Total | $ | 1,069 | $ | 1,220 | ||||
North America | Three months ended September 30, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 859 | $ | 928 | ||||
AJOVY | 46 | 35 | ||||||
AUSTEDO | 201 | 168 | ||||||
BENDEKA ® /TREANDA® | 95 | 105 | ||||||
COPAXONE | 133 | 236 | ||||||
ProAir ® * | 31 | 50 | ||||||
Anda | 363 | 341 | ||||||
Other | 146 | 155 | ||||||
Total | $ | 1,875 | $ | 2,017 | ||||
North America | Nine months ended September 30, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 2,864 | $ | 2,804 | ||||
AJOVY | 123 | 98 | ||||||
AUSTEDO | 520 | 451 | ||||||
BENDEKA/TREANDA | 292 | 313 | ||||||
COPAXONE | 448 | 671 | ||||||
ProAir* | 140 | 175 | ||||||
Anda | 968 | 1,141 | ||||||
Other | 451 | 493 | ||||||
Total | $ | 5,807 | $ | 6,146 | ||||
Europe | Nine months ended September 30, | |||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 2,552 | $ | 2,637 | ||||
AJOVY | 90 | 58 | ||||||
COPAXONE | 207 | 296 | ||||||
Respiratory products | 198 | 263 | ||||||
Other | 349 | 364 | ||||||
Total | $ | 3,396 | $ | 3,618 | ||||
International markets | Three months ended September 30, | |||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 393 | $ | 412 | ||||
AJOVY | 6 | 39 | ||||||
COPAXONE | 9 | 10 | ||||||
Other | 67 | 69 | ||||||
Total | $ | 475 | $ | 530 | ||||
International markets | Nine months ended September 30, | |||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 1,175 | $ | 1,211 | ||||
AJOVY | 22 | 46 | ||||||
COPAXONE | 29 | 29 | ||||||
Other | 195 | 219 | ||||||
Total | $ | 1,422 | $ | 1,505 | ||||
Europe | Three months ended September 30, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 895 | $ | 824 | ||||
AJOVY | 23 | 8 | ||||||
COPAXONE | 95 | 101 | ||||||
Respiratory products | 85 | 77 | ||||||
Other | 122 | 106 | ||||||
Total | $ | 1,220 | $ | 1,116 | ||||
Europe | Nine months ended September 30, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 2,637 | $ | 2,593 | ||||
AJOVY | 58 | 17 | ||||||
COPAXONE | 296 | 294 | ||||||
Respiratory products | 263 | 263 | ||||||
Other | 364 | 352 | ||||||
Total | $ | 3,618 | $ | 3,520 | ||||
International markets | Three months ended September 30, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 412 | $ | 429 | ||||
AJOV Y | 39 | 16 | ||||||
COPAXONE | 10 | 14 | ||||||
Other | 69 | 71 | ||||||
Total | $ | 530 | $ | 529 | ||||
International markets | Nine months ended September 30, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Generic products | $ | 1,211 | $ | 1,304 | ||||
AJOV Y | 46 | 17 | ||||||
COPAXONE | 29 | 38 | ||||||
Other | 219 | 224 | ||||||
Total | $ | 1,505 | $ | 1,582 | ||||
September 30, 2021 | September 30, 2022 | |||||||||||||||||||||||||||||||
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 | $ | 325 | $ | — | $ | — | $ | 325 | $ | 897 | $ | — | $ | — | $ | 897 | ||||||||||||||||
Cash, deposits and other | 1,720 | — | — | 1,720 | 1,328 | — | — | 1,328 | ||||||||||||||||||||||||
Investment in securities: | ||||||||||||||||||||||||||||||||
Equity securities | 18 | — | — | 18 | 9 | — | — | 9 | ||||||||||||||||||||||||
Other, mainly debt securities | 5 | — | 1 | 6 | ||||||||||||||||||||||||||||
Other | 5 | — | 1 | 6 | ||||||||||||||||||||||||||||
Restricted cash | 33 | — | — | 33 | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||
Asset derivatives—options and forward contracts | — | 45 | — | 45 | — | 94 | — | 94 | ||||||||||||||||||||||||
Liability derivatives—options and forward contracts | — | (23 | ) | — | (23 | ) | ||||||||||||||||||||||||||
Contingent consideration** | — | — | (187 | ) | (187 | ) | ||||||||||||||||||||||||||
Liability derivatives: | ||||||||||||||||||||||||||||||||
Options and forward contracts | — | (53 | ) | — | (53 | ) | ||||||||||||||||||||||||||
Bifurcated embedded derivatives | — | — | § | — | ||||||||||||||||||||||||||||
Contingent consideration* | — | — | (113 | ) | (113 | ) | ||||||||||||||||||||||||||
Total | $ | 2,068 | $ | 22 | $ | (186 | ) | $ | 1,904 | $ | 2,272 | $ | 41 | $ | (112 | ) | $ | 2,201 | ||||||||||||||
December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Money markets | $ | 367 | $ | — | $ | — | $ | 367 | ||||||||
Cash, deposits and other | 1,810 | — | — | 1,810 | ||||||||||||
Investment in securities: | ||||||||||||||||
Equity securities* | 25 | 259 | — | 284 | ||||||||||||
Other, mainly debt securities | 5 | — | 10 | 15 | ||||||||||||
Derivatives: | ||||||||||||||||
Asset derivatives—options and forward contracts | — | 24 | — | 24 | ||||||||||||
Liability derivatives—options and forward contracts | — | (79 | ) | — | (79 | ) | ||||||||||
Contingent consideration** | — | — | (268 | ) | (268 | ) | ||||||||||
Total | $ | 2,207 | $ | 204 | $ | (258 | ) | $ | 2,153 | |||||||
December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(U.S. $ in millions) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Money markets | $ | 220 | $ | — | $ | — | $ | 220 | ||||||||
Cash, deposits and other | 1,945 | — | — | 1,945 | ||||||||||||
Investment in securities: | ||||||||||||||||
Equity securities | 18 | — | — | 18 | ||||||||||||
Other | 6 | — | 1 | 7 | ||||||||||||
Restricted cash | 33 | — | — | 33 | ||||||||||||
Derivatives: | ||||||||||||||||
Asset derivatives—options and forward contracts | — | 30 | — | 30 | ||||||||||||
Liability derivatives: | ||||||||||||||||
Options and forward contracts | — | (23 | ) | — | (23 | ) | ||||||||||
Bifurcated embedded derivatives | — | — | § | — | ||||||||||||
Contingent consideration* | — | — | (176 | ) | (176 | ) | ||||||||||
Total | $ | 2,222 | $ | 7 | $ | (175 | ) | $ | 2,054 | |||||||
* | Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. |
Nine months ended September 30, 2021 | Nine months ended September 30, 2020 | |||||||
(U.S. $ in millions) | ||||||||
Fair value at the beginning of the period | $ | (258 | ) | (448 | ) | |||
Transfer into Level 3- equity securities | — | 179 | ||||||
Revaluation of equity securities | — | 118 | ||||||
Redemption of debt securities | (9 | ) | — | |||||
Revaluation of debt securities | — | (3 | ) | |||||
Adjustments to provisions for contingent consideration: | ||||||||
Actavis Generics transaction | 21 | 161 | ||||||
Eagle transaction | (14 | ) | (65 | ) | ||||
Settlement of contingent consideration: | ||||||||
Eagle transaction | 74 | 85 | ||||||
Fair value at the end of the period | $ | (186 | ) | $ | 27 | |||
Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | |||||||
(U.S. $ in millions) | ||||||||
Fair value at the beginning of the period | $ | (175 | ) | (258 | ) | |||
Redemption of debt securities | — | (9 | ) | |||||
Bifurcated embedded derivatives | § | — | ||||||
Adjustments to provisions for contingent consideration: | ||||||||
Actavis Generics transaction | (98 | ) | 21 | |||||
Eagle transaction | (2 | ) | (14 | ) | ||||
Settlement of contingent consideration: | ||||||||
Actavis Generics transaction | 106 | — | ||||||
Eagle transaction | 68 | 74 | ||||||
Additional contingent consideration resulting from Novetide acquisition* | (11 | ) | — | |||||
Fair value at the end of the period | $ | (112 | ) | $ | (186 | ) | ||
§ | Represents an amount less than $0.5 million. |
* | In January 2022, Teva acquired 100% ownership of Novetide Ltd. (“Novetide”), which was previously accounted for as “investment in associated companies”. This transaction was accounted for as a business combination. Total consideration for the transaction included cash and certain contingent royalty payments through 2034. As part of the transaction, Teva recognized a gain under “Share in (profits) losses of associated companies, net”, reflecting the difference between the book value of its investment in Novetide and its fair value as of the date Teva completed its acquisition. |
Estimated fair value* | ||||||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
Senior notes included under senior notes and loans | $ | 21,018 | $ | 22,684 | ||||
Senior notes and convertible senior debentures included under short-term debt | 2,413 | 3,207 | ||||||
Total | $ | 23,431 | $ | 25,891 | ||||
Estimated fair value* | ||||||||
September 30, | December 31, | |||||||
2022 | 2021 | |||||||
(U.S. $ in millions) | ||||||||
Senior notes and sustainability-linked senior notes included under senior notes and loans | $ | 15,552 | $ | 21,477 | ||||
Senior notes and convertible senior debentures included under short-term debt | 2,710 | 1,426 | ||||||
Total | $ | 18,262 | $ | 22,903 | ||||
* | 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 September 30, | ||||||||||||||||||||||||||||||||
Three months ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | (U.S. $ in millions / % of Segment Revenues) | |||||||||||||||||||||||||||||||
Revenues | $ | 1,875 | 100 | % | $ | 2,017 | 100 | % | $ | 1,809 | 100 | % | $ | 1,875 | 100 | % | ||||||||||||||||
Gross profit | 967 | 51.6 | % | 1,056 | 52.4 | % | 942 | 52.1 | % | 967 | 51.6 | % | ||||||||||||||||||||
R&D expenses | 146 | 7.8 | % | 155 | 7.7 | % | 111 | 6.1 | % | 146 | 7.8 | % | ||||||||||||||||||||
S&M expenses | 250 | 13.3 | % | 250 | 12.4 | % | 232 | 12.8 | % | 250 | 13.3 | % | ||||||||||||||||||||
G&A expenses | 121 | 6.4 | % | 97 | 4.8 | % | 122 | 6.8 | % | 121 | 6.4 | % | ||||||||||||||||||||
Other income | (7 | ) | § | (5 | ) | § | § | § | (7 | ) | § | |||||||||||||||||||||
Segment profit* | $ | 458 | 24.4 | % | $ | 560 | 27.7 | % | $ | 477 | 26.3 | % | $ | 458 | 24.4 | % | ||||||||||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than $0.5 million or 0.5% |
Three months ended September 30, | Percentage Change | |||||||||||||||||||||||
Three months ended September 30, | Percentage Change | 2022 | 2021 | 2022-2021 | ||||||||||||||||||||
2021 | 2020 | 2020-2021 | ||||||||||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||||||||||
Generic products | $ | 859 | $ | 928 | (7 | %) | $ | 806 | $ | 859 | (6 | %) | ||||||||||||
AJOVY | 46 | 35 | 31 | % | 57 | 46 | 23 | % | ||||||||||||||||
AUSTEDO | 201 | 168 | 19 | % | 260 | 201 | 30 | % | ||||||||||||||||
BENDEKA/TREANDA | 95 | 105 | (9 | %) | 77 | 95 | (20 | %) | ||||||||||||||||
COPAXONE | 133 | 236 | (44 | %) | 105 | 133 | (21 | %) | ||||||||||||||||
ProAir* | 31 | 50 | (37 | %) | ||||||||||||||||||||
Anda | 363 | 341 | 7 | % | 371 | 363 | 2 | % | ||||||||||||||||
Other | 146 | 155 | (5 | %) | 133 | 178 | (25 | %) | ||||||||||||||||
Total | $ | 1,875 | $ | 2,017 | (7 | %) | $ | 1,809 | $ | 1,875 | (4 | %) | ||||||||||||
49 |
Product Name | Brand Name | Launch Date | Total Annual U.S. Branded Sales at Time of Launch (U.S. $ in millions (IQVIA)) * | |||||
Levothyroxine Sodium Tablets USP, 25 mcg, 50 mcg, 75 mcg, 88 mcg, 100 mcg, 112 mcg, 125 mcg, 137 mcg, 150 mcg, 175 mcg, 200 mcg and 300 mcg | Synthroid ® tablets | September | $ | 2,035 | ||||
Tacrolimus Ointment | Protopic ® Ointment | September | $ | 79.9 | ||||
Pantoprazole Sodium for Injection | Protonix ® I.V. for Injection | September | $ | 76.5 | ||||
Mycophenolate Mofetil Tablets 500mg | CellCept ® Tablets | September | $ | 67.8 | ||||
Nitrofurantoin Capsules, USP (Monohydrate/Macrocrystals) 100mg | Macrobid ® | September | $ | 54.5 | ||||
Icosapent Ethyl Capsules 500mg | Vascepa ® Capsules | September | $ | 21.1 |
* | The figures presented are for the twelve months ended in the calendar quarter immediately prior to our launch or re-launch. |
Generic Name | Brand Name | Total Annual U.S. Branded Market (U.S. $ in millions (IQVIA)) * | ||||
Methylnaltrexone Bromide Subcutaneous Injection | Relistor ® | $ | 18 | |||
Tasimelteon Caps | Hetlioz ® | $ | 1 |
Generic Name | Brand Name | Total Annual U.S. Branded Sales at Time of Launch (U.S. $ in millions (IQVIA)) * | ||||
Dasatinib Tablets, 20 mg, 50 mg, 70 mg, 80 mg, 100 mg and 140 mg | Sprycel ® | $ | 1,569 | |||
Dapagliflozin/ Metformin Tablets | Xigduo XR ® | $ | 560 | |||
Paclitaxel Protein-Bound Particles for Injectable Suspension, 100 mg/vial ** | N/A | No Data |
* | The figures presented are for the twelve months ended in the calendar quarter immediately prior to our launch or re-launch. |
** | Teva’s Paclitaxel is a 505(b)(2) product, was filed as an NDA and is not bioequivalent to a brand product. |
Three months ended September 30, | ||||||||||||||||||||||||||||||||
Three months ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | (U.S. $ in millions / % of Segment Revenues) | |||||||||||||||||||||||||||||||
Revenues | $ | 1,220 | 100 | % | $ | 1,116 | 100 | % | $ | 1,069 | 100 | % | $ | 1,220 | 100 | % | ||||||||||||||||
Gross profit | 714 | 58.6 | % | 637 | 57.1 | % | 634 | 59.3 | % | 714 | 58.6 | % | ||||||||||||||||||||
R&D expenses | 55 | 4.5 | % | 60 | 5.4 | % | 44 | 4.1 | % | 55 | 4.5 | % | ||||||||||||||||||||
S&M expenses | 204 | 16.7 | % | 200 | 17.9 | % | 169 | 15.8 | % | 204 | 16.7 | % | ||||||||||||||||||||
G&A expenses | 64 | 5.2 | % | 66 | 5.9 | % | 61 | 5.7 | % | 64 | 5.2 | % | ||||||||||||||||||||
Other income | (2 | ) | § | (1 | ) | § | § | § | (2 | ) | § | |||||||||||||||||||||
Segment profit* | $ | 394 | 32.3 | % | $ | 312 | 28.0 | % | $ | 360 | 33.7 | % | $ | 394 | 32.3 | % | ||||||||||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than |
Three months ended September 30, | Percentage Change | |||||||||||||||||||||||
Three months ended September 30, | Percentage Change | 2022 | 2021 | 2022-2021 | ||||||||||||||||||||
2021 | 2020 | 2020-2021 | ||||||||||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||||||||||
Generic products | $ | 895 | $ | 824 | 9 | % | $ | 803 | $ | 895 | (10 | %) | ||||||||||||
AJOVY | 23 | 8 | 180 | % | 30 | 23 | 31 | % | ||||||||||||||||
COPAXONE | 95 | 101 | (6 | %) | 63 | 95 | (34 | %) | ||||||||||||||||
Respiratory products | 85 | 77 | 10 | % | 62 | 85 | (27 | %) | ||||||||||||||||
Other | 122 | 106 | 15 | % | 111 | 122 | (9 | %) | ||||||||||||||||
Total | $ | 1,220 | $ | 1,116 | 9 | % | $ | 1,069 | $ | 1,220 | (12 | %) | ||||||||||||
Three months ended September 30, | ||||||||||||||||||||||||||||||||
Three months ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | (U.S. $ in millions / % of Segment Revenues) | |||||||||||||||||||||||||||||||
Revenues | $ | 530 | 100% | $ | 529 | 100% | $ | 475 | 100 | % | $ | 530 | 100 | % | ||||||||||||||||||
Gross profit | 296 | 55.9% | 275 | 52.0% | 252 | 53.0 | % | 296 | 55.9 | % | ||||||||||||||||||||||
R&D expenses | 16 | 3.0% | 17 | 3.2% | 15 | 3.2 | % | 16 | 3.0 | % | ||||||||||||||||||||||
S&M expenses | 102 | 19.2% | 101 | 19.1% | 97 | 20.5 | % | 102 | 19.2 | % | ||||||||||||||||||||||
G&A expenses | 29 | 5.4% | 33 | 6.3% | 30 | 6.2 | % | 29 | 5.4 | % | ||||||||||||||||||||||
Other income | (2 | ) | § | (1 | ) | § | (2 | ) | § | (2 | ) | § | ||||||||||||||||||||
Segment profit* | $ | 152 | 28.8% | $ | 125 | 23.6% | $ | 112 | 23.5 | % | $ | 152 | 28.8 | % | ||||||||||||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than 0.5%. |
Three months ended September 30, | Percentage Change | |||||||||||||||||||||||
Three months ended September 30, | Percentage Change | 2022 | 2021 | 2022-2021 | ||||||||||||||||||||
2021 | 2020 | 2020-2021 | ||||||||||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||||||||||
Generic products | $ | 412 | $ | 429 | (4 | %) | $ | 393 | $ | 412 | (5 | %) | ||||||||||||
AJOVY | 39 | 16 | 145 | % | 6 | 39 | (85 | %) | ||||||||||||||||
COPAXONE | 10 | 14 | (30 | %) | 9 | 10 | (4 | %) | ||||||||||||||||
Other | 69 | 71 | (3%) | 67 | 69 | (2 | %) | |||||||||||||||||
Total | $ | 530 | $ | 529 | § | $ | 475 | $ | 530 | (10 | %) | |||||||||||||
Phase 2 | Phase 3 | Pre-Submission | Under Regulatory Review | |||||
Neuroscience | Deutetrabenazine Dyskinesia in Cerebral Palsy (September 2019) | Risperidone LAI Schizophrenia (1) | ||||||
TEV-44749 LAISchizophrenia (September 2022) | ||||||||
Immunology | TEV-48574 Inflammatory Bowel Disease | |||||||
Other | Digihaler ® (budesonide and formoterol fumarate dihydrate) (EU) | |||||||
Digihaler ® (beclomethasone dipropionate HFA)(U.S.) |
(1) | Developed under a license agreement with MedinCell. In August 2021, the FDA accepted the NDA for risperidone LAI, based on phase 3 data from two pivotal studies. In April 2022, the FDA issued a Complete Response Letter (“CRL”) regarding the NDA for risperidone LAI. We resubmitted the NDA in October 2022 and await the FDA’s response. |
. | Three months ended | |||||||||||||||
Three months ended | ||||||||||||||||
September 30, | ||||||||||||||||
September 30, | 2022 | 2021 | ||||||||||||||
2021 | 2020 | |||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
North America profit | $ | 458 | $ | 560 | $ | 477 | $ | 458 | ||||||||
Europe profit | 394 | 312 | 360 | 394 | ||||||||||||
International Markets profit | 152 | 125 | 112 | 152 | ||||||||||||
Total reportable segments profit | 1,004 | 997 | 949 | 1,004 | ||||||||||||
Profit of other activities | 38 | 28 | 29 | 38 | ||||||||||||
Total segments profit | 1,042 | 1,025 | 977 | 1,042 | ||||||||||||
Amounts not allocated to segments: | ||||||||||||||||
Amortization | 199 | 251 | 165 | 199 | ||||||||||||
Other assets impairments, restructuring and other items | 62 | (98 | ) | 36 | 62 | |||||||||||
Goodwill impairment | — | 4,628 | — | — | ||||||||||||
Intangible asset impairments | 21 | 509 | ||||||||||||||
Intangible assets impairments | 24 | 21 | ||||||||||||||
Legal settlements and loss contingencies | 3 | 21 | 195 | 3 | ||||||||||||
Other unallocated amounts | 134 | 55 | 139 | 134 | ||||||||||||
Consolidated operating income (loss) | 623 | (4,342 | ) | 419 | 623 | |||||||||||
Financial expenses, net | 241 | 117 | 252 | 241 | ||||||||||||
Consolidated income (loss) before income taxes | $ | 382 | $ | (4,459 | ) | $ | 166 | $ | 382 | |||||||
Nine months ended September 30, | ||||||||||||||||||||||||||||||||
Nine months ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | (U.S. $ in millions / % of Segment Revenues) | |||||||||||||||||||||||||||||||
Revenues | $ | 5,807 | 100 | % | $ | 6,146 | 100 | % | $ | 5,450 | 100 | % | $ | 5,807 | 100 | % | ||||||||||||||||
Gross profit | 3,081 | 53.1 | % | 3,208 | 52.2 | % | 2,841 | 52.1 | % | 3,081 | 53.1 | % | ||||||||||||||||||||
R&D expenses | 467 | 8.1 | % | 455 | 7.4 | % | 401 | 7.4 | % | 467 | 8.1 | % | ||||||||||||||||||||
S&M expenses | 734 | 12.6 | % | 755 | 12.3 | % | 733 | 13.4 | % | 734 | 12.6 | % | ||||||||||||||||||||
G&A expenses | 338 | 5.8 | % | 325 | 5.3 | % | 361 | 6.6 | % | 338 | 5.8 | % | ||||||||||||||||||||
Other income | (14 | ) | § | (9 | ) | § | (12 | ) | § | (14 | ) | § | ||||||||||||||||||||
Segment profit* | $ | 1,556 | 26.8 | % | $ | 1,682 | 27.4 | % | $ | 1,359 | 24.9 | % | $ | 1,556 | 26.8 | % | ||||||||||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than 0.5%. |
Nine months ended September 30, | Percentage Change | |||||||||||
2021 | 2020 | 2020-2021 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 2,864 | $ | 2,804 | 2 | % | ||||||
AJOVY | 123 | 98 | 25 | % | ||||||||
AUSTEDO | 520 | 451 | 15 | % | ||||||||
BENDEKA/TREANDA | 292 | 313 | (7 | %) | ||||||||
COPAXONE | 448 | 671 | (33 | %) | ||||||||
ProAir* | 140 | 175 | (20 | %) | ||||||||
Anda | 968 | 1,141 | (15 | %) | ||||||||
Other | 451 | 493 | (8 | %) | ||||||||
Total | $ | 5,807 | $ | 6,146 | (6 | %) | ||||||
Nine months ended September 30, | Percentage Change 2022-2021 | |||||||||||
2022 | 2021 | |||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 2,731 | $ | 2,864 | (5 | %) | ||||||
AJOVY | 142 | 123 | 16 | % | ||||||||
AUSTEDO | 618 | 520 | 19 | % | ||||||||
BENDEKA/TREANDA | 241 | 292 | (17 | %) | ||||||||
COPAXONE | 285 | 448 | (36 | %) | ||||||||
Anda | 1,021 | 968 | 5 | % | ||||||||
Other | 411 | 592 | (31 | %) | ||||||||
Total | $ | 5,450 | $ | 5,807 | (6 | %) | ||||||
Nine months ended September 30, | ||||||||||||||||||||||||||||||||
Nine months ended September 30, | 2022 | 2021 | ||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | (U.S. $ in millions / % of Segment Revenues) | |||||||||||||||||||||||||||||||
Revenues | $ | 3,618 | 100% | $3,520 | 100% | $ | 3,396 | 100 | % | $ | 3,618 | 100 | % | |||||||||||||||||||
Gross profit | 2,063 | 57.0% | 2,009 | 57.1% | 2,031 | 59.8 | % | 2,063 | 57.0 | % | ||||||||||||||||||||||
R&D expenses | 184 | 5.1% | 180 | 5.1% | 157 | 4.6 | % | 184 | 5.1 | % | ||||||||||||||||||||||
S&M expenses | 628 | 17.3% | 590 | 16.8% | 561 | 16.5 | % | 628 | 17.3 | % | ||||||||||||||||||||||
G&A expenses | 180 | 5.0% | 184 | 5.2% | 183 | 5.4 | % | 180 | 5.0 | % | ||||||||||||||||||||||
Other (income) expense | (3) | § | (3) | § | (1 | ) | § | (3 | ) | § | ||||||||||||||||||||||
Segment profit* | $ | 1,074 | 29.7% | $1,058 | 30.1% | $ | 1,130 | 33.3 | % | $ | 1,074 | 29.7 | % | |||||||||||||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than 0.5%. |
Nine months ended September 30, | Percentage Change | |||||||||||
2021 | 2020 | 2020-2021 | ||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 2,637 | $ | 2,593 | 2 | % | ||||||
AJOVY | 58 | 17 | 232 | % | ||||||||
COPAXONE | 296 | 294 | 1 | % | ||||||||
Respiratory products | 263 | 263 | § | |||||||||
Other | 364 | 352 | 3 | % | ||||||||
Total | $ | 3,618 | $ | 3,520 | 3 | % | ||||||
Nine months ended September 30, | Percentage Change 2022-2021 | |||||||||||
2022 | 2021 | |||||||||||
(U.S. $ in millions) | ||||||||||||
Generic products | $ | 2,552 | $ | 2,637 | (3 | %) | ||||||
AJOVY | 90 | 58 | 55 | % | ||||||||
COPAXONE | 207 | 296 | (30 | %) | ||||||||
Respiratory products | 198 | 263 | (25 | %) | ||||||||
Other | 349 | 364 | (4 | %) | ||||||||
Total | $ | 3,396 | $ | 3,618 | (6 | %) | ||||||
2022 | 2021 | |||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
(U.S. $ in millions / % of Segment Revenues) | (U.S. $ in millions / % of Segment Revenues) | |||||||||||||||||||||||||||||||
Revenues | $ | 1,505 | 100 | % | $ | 1,582 | 100 | % | $ | 1,422 | 100 | % | $ | 1,505 | 100 | % | ||||||||||||||||
Gross profit | 826 | 54.9 | % | 828 | 52.3 | % | 780 | 54.9 | % | 826 | 54.9 | % | ||||||||||||||||||||
R&D expenses | 51 | 3.4 | % | 51 | 3.3 | % | 54 | 3.8 | % | 51 | 3.4 | % | ||||||||||||||||||||
S&M expenses | 303 | 20.1 | % | 312 | 19.7 | % | 293 | 20.6 | % | 303 | 20.1 | % | ||||||||||||||||||||
G&A expenses | 79 | 5.3 | % | 96 | 6.1 | % | 89 | 6.3 | % | 79 | 5.3 | % | ||||||||||||||||||||
Other (income) expense | (5 | ) | § | (10 | ) | (0.6 | %) | (43 | ) | (3.0 | %) | (5 | ) | § | ||||||||||||||||||
Segment profit* | $ | 398 | 26.4% | $ | 378 | 23.9% | $ | 386 | 27.2 | % | $ | 398 | 26.4 | % | ||||||||||||||||||
* | Segment profit does not include amortization and certain other items. |
§ | Represents an amount less than 0.5%. |
Nine months ended September 30, | Percentage Change 2022-2021 | |||||||||||||||||||||||
Nine months ended September 30, | Percentage Change | 2022 | 2021 | |||||||||||||||||||||
2021 | 2020 | 2020-2021 | ||||||||||||||||||||||
(U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||||||||||
Generic products | $ | 1,211 | $ | 1,304 | (7 | %) | $ | 1,175 | $ | 1,211 | (3 | %) | ||||||||||||
AJOVY | 46 | 17 | 170 | % | 22 | 46 | (51 | %) | ||||||||||||||||
COPAXONE | 29 | 38 | (23 | %) | 29 | 29 | 1 | % | ||||||||||||||||
Other | 219 | 224 | (2 | %) | 195 | 219 | (11 | %) | ||||||||||||||||
Total | $ | 1,505 | $ | 1,582 | (5 | %) | $ | 1,422 | $ | 1,505 | (6 | %) | ||||||||||||
Nine months ended | ||||||||
September 30, | ||||||||
2021 | 2020 | |||||||
(U.S. $ in millions) | ||||||||
North America profit | $ | 1,556 | $ | 1,682 | ||||
Europe profit | 1,074 | 1,058 | ||||||
International Markets profit | 398 | 378 | ||||||
Total reportable segments profit | 3,028 | 3,118 | ||||||
Profit of other activities | 125 | 130 | ||||||
Total segments profit | 3,153 | 3,248 | ||||||
Amounts not allocated to segments: | ||||||||
Amortization | 613 | 758 | ||||||
Other assets impairments, restructuring and other items | 227 | 404 | ||||||
Goodwill impairment | — | 4,628 |
Nine months ended September 30, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
(U.S. $ in millions) | ||||||||||||||||
North America profit | $ | 1,359 | $ | 1,556 | ||||||||||||
Europe profit | 1,130 | 1,074 | ||||||||||||||
International Markets profit | 386 | 398 | ||||||||||||||
Total reportable segments profit | 2,875 | 3,028 | ||||||||||||||
Profit of other activities | 135 | 125 | ||||||||||||||
Total segments profit | 3,010 | 3,153 | ||||||||||||||
Amounts not allocated to segments: | ||||||||||||||||
Amortization | 576 | 613 | ||||||||||||||
Other assets impairments, restructuring and other items | 282 | 227 | ||||||||||||||
Goodwill impairment | 745 | — | ||||||||||||||
Intangible asset impairments | 295 | 1,278 | 223 | 295 | ||||||||||||
Legal settlements and loss contingencies | 113 | 10 | 2,048 | 113 | ||||||||||||
Other unallocated amounts | 266 | 148 | 379 | 266 | ||||||||||||
Consolidated operating income (loss) | 1,638 | (3,978 | ) | (1,244 | ) | 1,638 | ||||||||||
Financial expenses, net | 805 | 565 | 721 | 805 | ||||||||||||
Consolidated income (loss) before income taxes | $ | 833 | $ | (4,543 | ) | $ | (1,964 | ) | $ | 833 | ||||||
Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
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 revenues | 3,887 | 3,887 | ||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 2,093 | 175 | 5 | 5 | 104 | 1,804 | ||||||||||||||||||||||||||||||||||||||
Gross profit | 1,794 | 175 | 5 | 5 | 104 | 2,083 | ||||||||||||||||||||||||||||||||||||||
Gross profit margin | 46.2 | % | 53.6 | % | ||||||||||||||||||||||||||||||||||||||||
R&D expenses | 222 | 4 | 217 | |||||||||||||||||||||||||||||||||||||||||
S&M expenses | 597 | 24 | 7 | 567 | ||||||||||||||||||||||||||||||||||||||||
G&A expenses | 291 | 10 | 6 | 275 | ||||||||||||||||||||||||||||||||||||||||
Other income | (25 | ) | (7 | ) | (18 | ) | ||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 3 | 3 | — | |||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 62 | 26 | 28 | 9 | (1 | ) | — | |||||||||||||||||||||||||||||||||||||
Intangible assets impairments | 21 | 21 | — | |||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 623 | 199 | 3 | 47 | 28 | 5 | 26 | 9 | 103 | 1,042 | ||||||||||||||||||||||||||||||||||
Financial expenses, net | 241 | 6 | 235 | |||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 382 | 199 | 3 | 47 | 28 | 5 | 26 | 9 | 103 | 6 | 807 | |||||||||||||||||||||||||||||||||
Income taxes | 76 | (62 | ) | 137 | ||||||||||||||||||||||||||||||||||||||||
Share in (profits) losses of associated companies – net | 5 | 0 | 4 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 302 | 199 | 3 | 47 | 28 | 5 | 26 | 9 | 103 | (56 | ) | 665 | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | 11 | (4 | ) | 14 | ||||||||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Teva | 292 | 199 | 3 | 47 | 28 | 5 | 26 | 9 | 103 | (60 | ) | 651 | ||||||||||||||||||||||||||||||||
EPS - Basic | 0.26 | 0.33 | 0.59 | |||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | 0.26 | 0.32 | 0.59 |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
($ in millions except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income (loss) attributable to Teva | ($) | 56 | 292 | ($) | (1,132) | 576 | ||||||||||
Increase (decrease) for excluded items: | ||||||||||||||||
Amortization of purchased intangible assets | 165 | 199 | 576 | 613 | ||||||||||||
Legal settlements and loss contingencies | 195 | 3 | 2,048 | 113 | ||||||||||||
Goodwill impairment | — | — | 745 | — | ||||||||||||
Impairment of long-lived assets | 28 | 47 | 257 | 401 | ||||||||||||
Other R&D expenses | — | — | — | 5 | ||||||||||||
Restructuring costs | 25 | 28 | 117 | 96 | ||||||||||||
Costs related to regulatory actions taken in facilities | 2 | 5 | 6 | 17 | ||||||||||||
Equity compensation | 26 | 26 | 88 | 86 | ||||||||||||
Contingent consideration | 6 | 9 | 100 | (7 | ) | |||||||||||
Gain on sale of business | — | (7 | ) | (31 | ) | (44 | ) | |||||||||
Accelerated depreciation | 45 | 4 | 78 | 13 | ||||||||||||
Financial expenses | 14 | 6 | 48 | 104 | ||||||||||||
Share in profits (losses) of associated companies – net | — | — | (22 | ) | (1 | ) | ||||||||||
Items attributable to non-controlling interests | (4 | ) | (4 | ) | (54 | ) | (10 | ) | ||||||||
Other non-GAAP items* | 67 | 105 | 268 | 220 | ||||||||||||
Corresponding tax effects and unusual tax items | 33 | (62 | ) | (1,072 | ) | (182 | ) | |||||||||
Non-GAAP net income attributable to Teva | ($) | 658 | 651 | ($) | 2,021 | 2,001 | ||||||||||
Diluted earnings (loss) per share attributable to Teva | ($) | 0.05 | 0.26 | ($) | (1.02) | 0.52 | ||||||||||
EPS difference** | 0.54 | 0.32 | 2.83 | 1.29 | ||||||||||||
Diluted Non-GAAP EPS attributable to Teva** | ($) | 0.59 | 0.59 | ($) | 1.81 | 1.81 |
* | 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, |
Three Months Ended September 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 | Goodwill impairment | 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 | 3,978 | 3,978 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 2,126 | 221 | 6 | 7 | (2 | ) | 1,894 | |||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 1,852 | 221 | 6 | 7 | (2 | ) | 2,084 | |||||||||||||||||||||||||||||||||||||||||||||
Gross profit margin | 46.6 | % | 52.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 258 | 21 | 5 | 233 | ||||||||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 605 | 31 | 8 | 566 | ||||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 279 | 10 | — | 269 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other income | (8 | ) | — | (8 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 21 | 21 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | (98 | ) | 56 | 9 | (179 | ) | 15 | — | ||||||||||||||||||||||||||||||||||||||||||||
Intangible assets impairments | 509 | 509 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment | 4,628 | 4,628 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | (4,342 | ) | 251 | 21 | 4,628 | 565 | 21 | 9 | 6 | 30 | (179 | ) | 14 | 1,025 | ||||||||||||||||||||||||||||||||||||||
Financial expenses, net | 117 | (124 | ) | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (4,459 | ) | 251 | 21 | 4,628 | 565 | 21 | 9 | 6 | 30 | (179 | ) | 14 | (124 | ) | 784 | ||||||||||||||||||||||||||||||||||||
Income taxes | 16 | (117 | ) | 133 | ||||||||||||||||||||||||||||||||||||||||||||||||
Share in profit (losses)of associated companies – net | (136 | ) | (134 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (4,340 | ) | 251 | 21 | 4,628 | 565 | 21 | 9 | 6 | 30 | (179 | ) | 14 | (375 | ) | 652 | ||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | 10 | (6 | ) | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Teva | (4,349 | ) | 251 | 21 | 4,628 | 565 | 21 | 9 | 6 | 30 | (179 | ) | 14 | (381 | ) | 637 | ||||||||||||||||||||||||||||||||||||
EPS - Basic | (3.97 | ) | 4.55 | 0.58 | ||||||||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | (3.97 | ) | 4.55 | 0.58 |
** | non-GAAP non-GAAP net income attributable to non-GAAP diluted weighted average number of non-GAAP diluted weighted average number of shares for the three months ended September 30, 2022, and non-GAAP diluted weighted average number of shares for the |
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
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 | 11,778 | 11,778 | ||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 6,234 | 538 | 17 | 17 | 195 | 5,467 | ||||||||||||||||||||||||||||||||||||||
Gross profit | 5,544 | 538 | 17 | 17 | 195 | 6,311 | ||||||||||||||||||||||||||||||||||||||
Gross profit margin | 47.1 | % | 53.6 | % | ||||||||||||||||||||||||||||||||||||||||
R&D expenses | 723 | 14 | 5 | 704 | ||||||||||||||||||||||||||||||||||||||||
S&M expenses | 1,798 | 76 | 24 | — | 1,698 | |||||||||||||||||||||||||||||||||||||||
G&A expenses | 822 | 31 | 7 | 785 | ||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (73 | ) | (44 | ) | (29 | ) | ||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 113 | 113 | — | |||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 227 | 106 | 96 | (7 | ) | 32 | — | |||||||||||||||||||||||||||||||||||||
Intangible assets impairment | 295 | 295 | — | |||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 1,638 | 613 | 113 | 401 | 96 | 17 | 86 | (7 | ) | 194 | 3,153 | |||||||||||||||||||||||||||||||||
Financial expenses, net | 805 | 104 | 701 | |||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 833 | 613 | 113 | 401 | 96 | 17 | 86 | (7 | ) | 194 | 104 | 2,452 | ||||||||||||||||||||||||||||||||
Income taxes | 235 | (182 | ) | 417 | ||||||||||||||||||||||||||||||||||||||||
Share in (profits) losses of associated companies – net | (9 | ) | (1 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | 608 | 613 | 113 | 401 | 96 | 17 | 86 | (7 | ) | 194 | (79 | ) | 2,042 | |||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | 32 | (10 | ) | 42 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Teva | 576 | 613 | 113 | 401 | 96 | 17 | 86 | (7 | ) | 194 | (90 | ) | 2,001 | |||||||||||||||||||||||||||||||
EPS - Basic | 0.52 | 1.29 | 1.82 | |||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | 0.52 | 1.29 | 1.81 |
Nine months ended September 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 | Goodwill impairment | 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 | 12,206 | 12,206 | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 6,528 | 663 | 17 | 19 | 30 | 5,799 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit | 5,678 | 663 | 17 | 19 | 30 | 6,407 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit margin | 46.5 | % | 52.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
R&D expenses | 704 | 14 | 3 | 687 | ||||||||||||||||||||||||||||||||||||||||||||
S&M expenses | 1,815 | 95 | 25 | 1,695 | ||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | 846 | 31 | 12 | 803 | ||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense | (30 | ) | (3 | ) | (27 | ) | ||||||||||||||||||||||||||||||||||||||||||
Legal settlements and loss contingencies | 10 | 10 | — | |||||||||||||||||||||||||||||||||||||||||||||
Other assets impairments, restructuring and other items | 404 | 408 | 82 | (96 | ) | 10 | — | |||||||||||||||||||||||||||||||||||||||||
Intangible assets impairment | 1,278 | 1,278 | — | |||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment | 4,628 | 4,628 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | (3,978 | ) | 758 | 10 | 4,628 | 1,686 | 82 | 17 | 90 | (96 | ) | 52 | — | 3,248 | ||||||||||||||||||||||||||||||||||
Financial expenses, net | 565 | (118 | ) | 683 | ||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (4,543 | ) | 758 | 10 | 4,628 | 1,686 | 82 | 17 | 90 | (96 | ) | 52 | (118 | ) | 2,565 | |||||||||||||||||||||||||||||||||
Income taxes | (147 | ) | (583 | ) | 436 | |||||||||||||||||||||||||||||||||||||||||||
Share in losses of associated companies – net | (135 | ) | (134 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Teva | (4,261 | ) | 758 | 10 | 4,628 | 1,686 | 82 | 17 | 90 | (96 | ) | 52 | (835 | ) | 2,130 | |||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interests | (121 | ) | (174 | ) | 53 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (4,140 | ) | 758 | 10 | 4,628 | 1,686 | 82 | 17 | 90 | (96 | ) | 52 | (1,009 | ) | 2,077 | |||||||||||||||||||||||||||||||||
EPS - Basic | (3.78 | ) | 5.68 | 1.90 | ||||||||||||||||||||||||||||||||||||||||||||
EPS - Diluted | (3.78 | ) | 5.67 | 1.89 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
31.1 | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 * | |
31.2 | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 * | |
32 | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 * | |
101.INS | Inline XBRL Taxonomy Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
TEVA PHARMACEUTICAL INDUSTRIES LIMITED | ||||||
Date: | By: | /s/ Eli Kalif | ||||
Name: | Eli Kalif | |||||
Title: | Executive Vice President, Chief Financial Officer (Duly Authorized Officer) |