Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' |
Document Type | '20-F |
Document Period End Date | 31-Dec-13 |
Amendment Flag | 'true |
Amendment Description | 'N.A. |
Current Fiscal Year End Date | '--12-31 |
Entity Central Index Key | '0000818686 |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Large Accelerated Filer |
Entity Registrant Name | 'TEVA PHARMACEUTICAL INDUSTRIES LTD |
Trading Symbol | 'TEVA |
Entity Voluntary Filers | 'Yes |
Entity Well Known Seasoned Issuer | 'Yes |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q4 |
Entity Common Stock Shares Outstanding | 946,868,125 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF INCOME | ' | ' | ' |
Net revenues | $20,314 | $20,317 | $18,312 |
Cost of sales | 9,607 | 9,665 | 8,797 |
Gross profit | 10,707 | 10,652 | 9,515 |
Research and development expenses | 1,427 | 1,356 | 1,095 |
Selling and marketing expenses | 4,080 | 3,879 | 3,478 |
General and administrative expenses | 1,239 | 1,238 | 932 |
Legal Settlements And Loss Contingencies | 1,524 | 715 | 471 |
Impairments restructuring and others | 788 | 1,259 | 430 |
Operating income | 1,649 | 2,205 | 3,109 |
Financial expenses - net | 399 | 386 | 153 |
Income before income taxes | 1,250 | 1,819 | 2,956 |
Income taxes | -43 | -137 | 127 |
Share in losses of associated companies - net | 40 | 46 | 61 |
Net income | 1,253 | 1,910 | 2,768 |
Net income (loss) attributable to non-controlling interests | -16 | -53 | 9 |
Net income attributable to Teva | $1,269 | $1,963 | $2,759 |
Earnings per share attributable to Teva: | ' | ' | ' |
Basic | $1.49 | $2.25 | $3.10 |
Diluted | $1.49 | $2.25 | $3.09 |
Weighted average number of shares (in millions): | ' | ' | ' |
Basic | 849 | 872 | 890 |
Diluted | 850 | 873 | 893 |
COMPREHENSIVE_INCOME
COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $1,253 | $1,910 | $2,768 |
Other Comprehensive Income (Loss) Net Of Tax [Abstract] | ' | ' | ' |
Currency translation adjustment | -22 | 632 | -844 |
Unrealized gain (loss) on derivative financial instruments | -104 | -63 | 40 |
Unrealized gain (loss) from available-for-sale securities | 12 | 65 | -115 |
Gain (loss) on defined benefit plans | 42 | -60 | -23 |
Total Other Comprehensive Income (Loss) | -72 | 574 | -942 |
Total comprehensive income | 1,181 | 2,484 | 1,826 |
Comprehensive income (loss) attributable to the non-controlling interests | -14 | -51 | 6 |
Comprehensive income attributable to Teva | $1,195 | $2,535 | $1,820 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,038 | $2,879 |
Accounts receivable | 5,338 | 5,572 |
Inventories | 5,053 | 5,502 |
Deferred income taxes. | 1,084 | 1,142 |
Other Current Assets | 1,207 | 1,260 |
Total current assets | 13,720 | 16,355 |
Other non-current assets | 1,696 | 1,338 |
Property, plant and equipment, net | 6,635 | 6,315 |
Identifiable intangible assets, net | 6,476 | 7,745 |
Goodwill | 18,981 | 18,856 |
Total assets | 47,508 | 50,609 |
Current liabilities: | ' | ' |
Short-term debt | 1,804 | 3,006 |
Sales Reserves And Allowances | 4,918 | 4,934 |
Accounts payable and accruals | 3,317 | 3,376 |
Other current liabilities | 1,926 | 1,572 |
Total current liabilities | 11,965 | 12,888 |
Long-term liabilities: | ' | ' |
Deferred income taxes | 1,247 | 1,849 |
Other taxes and long term liabilities | 1,273 | 1,293 |
Senior notes and loans | 10,387 | 11,712 |
Total long term liabilities | 12,907 | 14,854 |
Total liabilities | 24,872 | 27,742 |
Teva shareholders' equity: | ' | ' |
Ordinary shares | 50 | 50 |
Additional paid-in capital | 13,628 | 13,474 |
Retained earnings | 12,535 | 12,346 |
Accumulated other comprehensive loss | -91 | -17 |
Treasury shares | -3,557 | -3,085 |
Stockholders' equity attributable to Teva shareholders | 22,565 | 22,768 |
Non-controlling interests | 71 | 99 |
Total equity | 22,636 | 22,867 |
Total liabilities and equity | $47,508 | $50,609 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (ILS) | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | |
CONSOLIDATED BALANCE SHEETS | ' |
Ordinary shares, authorized | 2,500 |
Ordinary shares, issued | 947 |
Treasury, shares | 99 |
Common Stock, Par or Stated Value Per Share | 0.1 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Ordinary Shares: Stated value or Number of shares | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Total Tevas share holders equity | Noncontrolling Interest |
In Millions, except Share data | ||||||||
Balance as of at Dec. 31, 2010 | $22,002 | $49 | $13,246 | $9,325 | $350 | $1,023 | $21,947 | $55 |
Shares, balance at Period Start at Dec. 31, 2010 | ' | 937,000,000 | ' | ' | ' | ' | ' | ' |
Comprehensive Income (loss) | 1,826 | ' | ' | 2,759 | -939 | ' | 1,820 | 6 |
Exercise of options and RSUs by employees | 71 | 0 | 71 | ' | ' | ' | 71 | ' |
Exercise of options and RSUs by employees, shares | ' | 3,000,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 91 | ' | 91 | ' | ' | ' | 91 | ' |
Dividends | -800 | ' | ' | -800 | ' | ' | -800 | ' |
Acquisition of non-controlling interest | -75 | ' | -55 | ' | ' | ' | -55 | -20 |
Disposition of non-controlling interests | -15 | ' | ' | ' | ' | ' | ' | -15 |
Conversion of convertible senior debentures | 12 | 0 | 12 | ' | ' | ' | 12 | ' |
Conversion of convertible senior debentures, shares | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Purchase of treasury shares | 901 | ' | ' | ' | ' | 901 | 901 | ' |
Other | 3 | 1 | 9 | ' | ' | ' | 10 | -7 |
Non controlling Interests arising from Business Combinations | 129 | ' | ' | ' | ' | ' | ' | 129 |
Balance at Period End at Dec. 31, 2011 | 22,343 | 50 | 13,374 | 11,284 | -589 | 1,924 | 22,195 | 148 |
Shares, balance at Preiod End at Dec. 31, 2011 | ' | 942,000,000 | ' | ' | ' | ' | ' | ' |
Comprehensive Income (loss) | 2,484 | ' | ' | 1,963 | 572 | ' | 2,535 | -51 |
Exercise of options and RSUs by employees | 14 | 0 | 14 | ' | ' | ' | 14 | ' |
Exercise of options and RSUs by employees, shares | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 82 | ' | 82 | ' | ' | ' | 82 | ' |
Dividends | -901 | ' | ' | -901 | ' | ' | -901 | ' |
Purchase of treasury shares | 1,161 | ' | ' | ' | ' | 1,161 | 1,161 | ' |
Other | 6 | 0 | 4 | ' | ' | ' | 4 | 2 |
Balance at Period End at Dec. 31, 2012 | 22,867 | 50 | 13,474 | 12,346 | -17 | 3,085 | 22,768 | 99 |
Shares, balance at Preiod End at Dec. 31, 2012 | ' | 944,000,000 | ' | ' | ' | ' | ' | ' |
Comprehensive Income (loss) | 1,181 | ' | ' | 1,269 | -74 | ' | 1,195 | -14 |
Exercise of options and RSUs by employees | 91 | 0 | 73 | ' | ' | 18 | 91 | ' |
Exercise of options and RSUs by employees, shares | ' | 3,000,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 64 | ' | 64 | ' | ' | ' | 64 | ' |
Dividends | -1,080 | ' | ' | -1,080 | ' | ' | -1,080 | ' |
Disposition of non-controlling interests | -12 | ' | ' | ' | ' | ' | ' | -12 |
Purchase of treasury shares | 497 | ' | ' | ' | ' | 497 | 497 | ' |
Other | 22 | 0 | 17 | ' | ' | 7 | 24 | -2 |
Balance at Period End at Dec. 31, 2013 | $22,636 | $50 | $13,628 | $12,535 | ($91) | $3,557 | $22,565 | $71 |
Shares, balance at Preiod End at Dec. 31, 2013 | ' | 947,000,000 | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOW (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income | $1,253 | $1,910 | $2,768 |
Adjustments to reconcile net income to net cash provided by operations: | ' | ' | ' |
Depreciation And Amortization | 1,642 | 1,708 | 1,069 |
Net change in operating assets and liabilities | 968 | 414 | 594 |
Deferred Income Taxes Net And Uncertain Tax Positions | -1,380 | -690 | -500 |
Research and development in process | 5 | 73 | 15 |
Impairment of long lived assets | 524 | 1,071 | 201 |
Stock-based compensation | 64 | 82 | 91 |
Other items | 143 | 7 | 103 |
Gain From Revaluation Of Investments | 0 | 0 | -135 |
Loss (gain) from sale of long lived assets and investments | 18 | -3 | -72 |
Net cash provided by operating activities | 3,237 | 4,572 | 4,134 |
Investing activities: | ' | ' | ' |
Acquisitions of subsidiaries, net of cash acquired | -39 | 0 | -6,561 |
Purchase of property, plant and equipment | -1,031 | -1,104 | -1,053 |
Purchase of investments and other assets | -160 | -201 | -217 |
Proceeds From Sales of Long Lived Assets And Investments | 187 | 264 | 279 |
Other investing activities | -104 | -93 | -49 |
Net cash used in investing activities | -1,147 | -1,134 | -7,601 |
Financing activities: | ' | ' | ' |
Proceeds From Senior Notes Net | 0 | 3,783 | 5,723 |
Purchase of treasury shares | -497 | -1,161 | -899 |
Net change in short-term debt | 384 | -2,492 | -124 |
Dividends paid | -1,089 | -855 | -800 |
Proceeds from exercise of options by employees | 91 | 14 | 71 |
Proceeds From Long Term Loans And Other Long Term Liabilities | 338 | 1,241 | 1,000 |
Redemption of convertible debentures | 0 | 0 | -814 |
Repayment of long-term loans And Other Long Term Liabilities | -3,133 | -2,213 | -751 |
Other financing activities | 23 | 5 | 5 |
Purchase of Non-controlling Interest | 0 | 0 | -75 |
Net cash provided by (used in) financing activities | -3,883 | -1,678 | 3,336 |
Translation adjustment on cash and cash equivalents | -48 | 23 | -21 |
Net change in cash and cash equivalents | -1,841 | 1,783 | -152 |
Balance of cash and cash equivalents at beginning of year | 2,879 | 1,096 | 1,248 |
Balance of cash and cash equivalents at end of year | 1,038 | 2,879 | 1,096 |
Supplemental disclosure of cash flow information | ' | ' | ' |
Interest paid | 331 | 297 | 230 |
Income taxes paid, net of refunds | 1,298 | 614 | 276 |
Amendment Sixty Nine And Tax Audits Payments | 790 | ' | ' |
Net change in operating assets and liabilities | ' | ' | ' |
Accounts receivable net of sales reserves and allowances | 85 | 936 | 701 |
Inventories | 399 | -511 | -762 |
Other current assets | 106 | -54 | -240 |
Accounts payable and accruals and other current liabilities | 378 | -19 | 543 |
Inventory Step Up | 0 | 62 | 352 |
Net change in operating assets and liabilities | $968 | $414 | $594 |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 0 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
NOTE 1—SIGNIFICANT ACCOUNTING POLICIES: | |
a. General: | |
Operations | |
Teva Pharmaceutical Industries Limited (the “Parent Company”), headquartered in Israel, together with its subsidiaries and associated companies (the “Company”, “Teva” or the “Group”), is engaged in the development, manufacturing, marketing and distribution of generic, specialty, and other pharmaceutical products. The majority of the Group's revenues are in the United States and Europe. The Group's main manufacturing facilities are located in Israel, Hungary, United States, Germany, Canada, Japan, Ireland, the United Kingdom, the Czech Republic, Croatia and Poland. | |
Accounting principles | |
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”). | |
Functional currency | |
A major part of the Group's operations is carried out by the Company and its subsidiaries in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”). | |
The functional currency of certain subsidiaries and associated companies is their local currency. The financial statements of those companies are included in the consolidated financial statements, translated into U.S. dollars. Assets and liabilities are translated at year-end exchange rates, while revenues and expenses are translated at monthly average exchange rates during the year. Differences resulting from translation are presented as other comprehensive income in the consolidated statements of comprehensive income. | |
The financial statements of subsidiaries in a highly inflationary economy are remeasured as if the functional currency was the U.S. dollar, Teva's reporting currency, using a translation rate determined by the country's official rate. A highly inflationary economy is one that has cumulative inflation of approximately 100 percent or more over a 3-year period. | |
Use of estimates in the preparation of financial statements | |
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reported years. Actual results could differ from those estimates. | |
As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to uncertain tax positions, valuation allowances, intangible assets, purchase price allocation on acquisitions, contingencies, restructuring, goodwill and sales and reserves allowances. | |
b. Principles of consolidation: | |
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries and Variable Interest Entities ("VIEs") for which the Company is considered the primary beneficiary. For VIEs, the Company performs an analysis to determine whether the variable interests give a controlling financial interest in a VIE; the Company periodically reassesses whether it controls its VIEs. | |
Intercompany transactions and balances are eliminated in consolidation; profits from intercompany sales, not yet realized outside the Group, are also eliminated. | |
c. Investee companies: | |
Investments in entities in which the Company has a significant influence are accounted for using the equity method and included within "other non-current assets." Under the equity method, the Company generally recognizes its proportionate share of comprehensive income or loss of the entity. Other non-marketable equity investments are carried at cost. The Company also reviews these investments for impairment whenever events indicate the carrying amount may not be recoverable. | |
d. Cash and cash equivalents: | |
All highly liquid investments, which include short-term bank deposits and money market instruments, that are not restricted as to withdrawal or use, and short-term debentures, the period to maturity of which did not exceed three months at the time of investment, are considered to be cash equivalents. | |
e. Inventories: | |
Inventories are valued at the lower of cost or market. Cost of raw and packaging materials and purchased products is determined mainly on a “moving average” basis. Cost of finished products and products in process is calculated assuming normal manufacturing capacity of the production facilities and determined as follows: the raw and packaging materials component—mainly on a “moving average” basis; the capitalized production costs component—mainly on an average basis over the production period. | |
Inventories acquired in a business combination are stepped-up to their estimated fair value and amortized to cost of sales as that inventory is sold. | |
f. Investment in securities: | |
Investment in securities consists mainly of debt and equity securities classified as available-for-sale and recorded at fair value. The fair value of quoted securities is based on current market value. When debt securities do not have an active market, fair value is determined using a valuation model. This model is based on reference to other instruments with similar characteristics, or a discounted cash flow analysis, or other pricing models making use of market inputs and relying as little as possible on entity-specific inputs. | |
Unrealized gains of available for sale securities, net of taxes, are reflected in other comprehensive income. Unrealized losses considered to be temporary are reflected in other comprehensive income; unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. Realized gains and losses for both debt and equity securities are included in financial expense, net. | |
The Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost, and for equity securities, the Company's ability and intent to hold the investment for the length of time necessary to allow for the recovery of the market value. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment recognized in earnings, recorded in financial expense, net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in other comprehensive income. | |
g. Long-lived assets: | |
Teva's long-lived, non-current assets are comprised mainly of goodwill, identifiable intangible assets and property, plant and equipment. Teva reviews its long-lived assets and performs detailed testing whenever potential impairment indicators are present. In addition, the Company performs impairment testing at the end of each year for goodwill and identifiable indefinite life intangible assets. | |
Goodwill | |
Goodwill reflects the excess of the consideration paid or transferred plus the fair value of contingent consideration and any non-controlling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed according to the following principles: | |
An initial qualitative assessment of the likelihood of impairment may be performed. If this step indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed. Teva waived this step during this year's annual testing and performed the first step of the test. | |
In step one of the impairment test, Teva compares the fair value of the reporting units to the carrying value of the reporting units. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. If the fair value is less than the carrying value of the reporting unit, Teva must perform the second step of the impairment test to measure the amount of the impairment. | |
In the second step, the reporting unit's fair value is allocated to all the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that simulates the business combination principles to derive an implied goodwill value. If the implied fair value of the reporting unit's goodwill is less than its carrying value, the difference is recorded as an impairment. | |
Identifiable intangible assets | |
Identifiable intangible assets are comprised of definite life intangible assets and indefinite life intangible assets. | |
Definite life intangible assets consist mainly of acquired product rights and other rights relating to products for which marketing approval was received from the U.S. Food and Drug Administration (“FDA”) or the equivalent agencies in other countries. These assets are amortized using mainly the straight-line method over their estimated period of useful life, or based on economic effect models, if more appropriate, which is determined by identifying the period in which substantially all of the cash flows are expected to be generated. Amortization of acquired developed products is recorded under cost of sales. Amortization of marketing and distribution rights is recorded under selling and marketing expenses. | |
For definite life intangibles, whenever impairment indicators are identified, Teva reconsiders the asset's estimated life, calculates the undiscounted value of the asset's cash flows and compares such value against the asset's carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value. | |
Indefinite life intangible assets are mainly comprised of research and development in-process. When testing for impairment, Teva determines the fair value of the asset and records an impairment loss if book value exceeds fair value. | |
Research and development in-process acquired in a business combination is capitalized as an indefinite life intangible asset until the related research and development efforts are either completed or abandoned. In the reporting period where they are treated as indefinite life intangible assets, they are not amortized but rather are tested for impairment. Upon completion of the related research and development efforts, management determines the remaining useful life of the intangible assets and amortizes them accordingly. In case of abandonment, the related research and development assets are impaired. | |
Property, plant and equipment | |
Property, plant and equipment are stated at cost, after deduction of the related investment grants, and depreciated using the straight-line method over the estimated useful life of the assets: buildings, mainly 40 years; machinery and equipment, between 15 to 20 years; and other assets, between 5 to 10 years. | |
For property, plant and equipment, whenever impairment indicators are identified, Teva reconsiders the asset's estimated life, calculates the undiscounted value of the asset's cash flows and compares such value against the asset's carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value. | |
h. Contingencies: | |
The Company and its subsidiaries are involved in various patent, product liability, commercial, government investigations, environmental claims and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies or contingent consideration acquired in a business combination, Teva records accruals for these types of contingencies to the extent that Teva concludes their occurrence is probable and that the related liabilities are estimable. When accruing these costs, the Company will recognize an accrual in the amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Teva records anticipated recoveries under existing insurance contracts that are virtually certain of occurring at the gross amount that is expected to be collected. Legal costs are expensed as incurred. | |
i. Uncertain tax positions: | |
We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. In addition, the Company classifies interest and penalties recognized in the financial statements relating to uncertain tax position under the income taxes line item. | |
j. Treasury shares: | |
Treasury shares are held by Teva's subsidiaries and presented as a reduction of Teva shareholders' equity and carried at their cost to Teva, under “Treasury shares”. | |
k. Stock-based compensation: | |
Teva recognizes the estimated fair value of share-based awards and restricted stock units (“RSUs”), net of estimated forfeitures, under stock-based compensation costs. | |
Teva measures compensation expense for share-based awards based on estimated fair values on the date of grant using the Black-Scholes option-pricing model. This option pricing model requires estimates as to the option's expected term and the price volatility of the underlying stock. | |
Teva measures compensation expense for the RSUs based on the market value of the underlying stock at the date of grant, less an estimate of dividends that will not accrue to the RSU holders prior to vesting. | |
l. Revenue recognition: | |
The Company recognizes revenues from product sales, including sales to distributors when persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed or determinable and collectability is reasonably assured. This generally occurs when products are shipped and title and risk and rewards for the products are transferred to the customer. | |
Revenues from product sales are recorded net of provisions for estimated chargebacks, rebates, returns, prompt pay discounts and other deductions, such as shelf stock adjustments, which can be reasonably estimated. When sales provisions are not considered reasonably estimable by Teva, the revenue is deferred to a future period when more information is available to evaluate the impact. | |
Provisions for chargebacks, rebates including Medicaid and other governmental program discounts, rebates and other promotional items, such as shelf stock adjustments, are included in “sales reserves and allowances” under “current liabilities”. These provisions are recognized concurrently with the sales of products. Prompt payment discounts are netted against “accounts receivable.” | |
Calculations for these deductions from sales are based on historical experience and the specific terms in the individual agreements. Chargebacks and rebates are the largest components of sales reserves and allowances. Provisions for chargebacks are determined using historical chargeback experience, or expected chargeback levels and wholesaler sales information for new products, which are compared to externally obtained distribution channel reports for reasonableness. Rebates are recognized based on contractual obligations in place at the time of sales with consideration given to relevant factors that may affect the payment as well as historical experience for estimated market activity. Shelf-stock adjustments are granted to customers based on the existing inventory of a customer following decreases in the invoice or contract price of the related product and are estimated based on expected market performance. Teva records a reserve for estimated sales returns by applying historical experience of customer returns to the amounts invoiced and the amount of returned products to be destroyed versus products that can be placed back in inventory for resale. | |
Revenue resulting from the achievement of milestone events stipulated in agreements is recognized when the milestone is achieved. Milestones are based upon the occurrence of a substantive element specified in the contract or as a measure of substantive progress towards completion under the contract. | |
Revenues from licensees, sales of licensed products and technology are recorded in accordance with the contract terms, when third-party sales can be reliably measured and collection of the funds is reasonably assured. | |
Revenues include royalty income and income from services, which amounted to $182 million, $438 million and $383 million in the years ended December 31, 2013, 2012 and 2011, respectively. | |
m. Research and development: | |
Research and development expenses are charged as incurred. Participations and grants in respect of research and development expenses are recognized as a reduction of research and development expenses as the related costs are incurred, or as the related milestone is met. Upfront fees received in connection with cooperation agreements are deferred and recognized over the period of the applicable agreements as a reduction of research and development expenses. | |
Advance payments for goods or services that will be used or rendered for future research and development activities are deferred and capitalized. Such amounts are recognized as an expense as the related goods are delivered or the services are performed. | |
Research and development in-process acquired as part of an asset purchase, which has not reached technological feasibility and has no alternative future use, is expensed as incurred. | |
n. Shipping and handling costs: | |
Shipping and handling costs, which are included in selling and marketing expenses, amounted to $232 million, $230 million and $236 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
o. Advertising expenses: | |
Advertising expenses are charged to income as incurred. Advertising expenses for the years ended December 31, 2013, 2012 and 2011 were $321 million, $337 million and $248 million, respectively. | |
p. Deferred income taxes: | |
Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. Deferred income tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting, or according to the expected reversal dates of the specific temporary differences where appropriate. | |
Deferred tax has not been provided on the following items: | |
(1) Taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company's intention to hold these investments, not to realize them. | |
(2) Amounts of tax-exempt income generated from the Company's current Approved Enterprises and unremitted earnings from foreign subsidiaries retained for reinvestment in the Group. See note 16f. | |
q. Earnings per share: | |
Basic earnings per share are computed by dividing the net income attributable to Teva by the weighted average number of ordinary shares (including fully vested RSUs) outstanding during the year, net of treasury shares. | |
In computing diluted earnings per share, basic earnings per share are adjusted to take into account the potential dilution that could occur upon: (i) the exercise of options and non-vested RSUs granted under employee stock compensation plans and one series of convertible senior debentures, using the treasury stock method; and (ii) the conversion of the remaining convertible senior debentures using the “if-converted” method, by adding to net income interest expense on the debentures and amortization of issuance costs, net of tax benefits, and by adding the weighted average number of shares issuable upon assumed conversion of the debentures. | |
r. Concentration of credit risks: | |
Most of Teva's cash and cash equivalents (which along with marketable securities amounted to $1.2 billion at December 31, 2013) were deposited with financially sound European, U.S. and Israeli banks and financial institutions and were comprised mainly of cash deposits. | |
The pharmaceutical industry, particularly in the U.S., has been significantly affected by consolidation among managed care providers, large pharmacy chains, wholesaling organizations and other buyer groups. The U.S. market constitutes approximately 51.5% of Teva's consolidated revenues and a relatively small portion of total trade accounts after netting sales reserves and allowances. The exposure of credit risks relating to other trade receivables is limited, due to the relatively large number of group customers and their wide geographic distribution. Teva performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral. An appropriate allowance for doubtful accounts is included in the accounts and netted against accounts receivable. | |
s. Derivatives and hedging: | |
The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, written and purchased currency options, cross-currency swap contracts and interest rate swap contracts). The transactions are designed to hedge the Company's currency and interest rate exposures. | |
The Company does not enter into derivative transactions for trading purposes. | |
Derivatives that do not qualify for hedge accounting are recognized on the balance sheet at their fair value, with changes in the fair value recognized as a component of “financial expenses - net” in the statements of income. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. | |
Derivatives that qualify as a fair value hedge are recognized on the balance sheet at their fair value, with changes in the fair value reported with the carrying amount of the hedged asset or liability. | |
For derivatives that qualify as cash-flow hedges, the effective portion of these derivatives' fair value is initially reported as a component of other comprehensive income. | |
For derivatives that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. | |
t. Fair value measurement: | |
The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |
The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | |
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |
Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data. | |
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers credit risk in its assessment of fair value. | |
u. Collaborative arrangements: | |
A Collaborative agreements are contractual arrangements in which the parties are active participants to the arrangement and are exposed to the significant risks and rewards that are dependent on the ultimate commercial success of the endeavor. See note 2. | |
The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to a collaborative agreement as gross or net. If the Company is the principal participant in a transaction, revenues are recorded on a gross basis; otherwise, revenues are recorded on a net basis. | |
v. Segment reporting: | |
Following the completion of certain organizational changes, the Company re-evaluated its organizational structure and determined that its business includes two reporting segments: generic and specialty medicines. The generics segment develops, manufactures, sells and distributes generic or branded generic medicines as well as active pharmaceutical ingredients ("API"). The specialty segment engages in the development, manufacture, sale and distribution of branded specialty medicines such as those for central nervous system, oncology and respiratory indications, as well as those marketed in the women's health and other specialty businesses. See note 21. | |
w. Restructuring: | |
Restructuring charges are initially recorded at fair value, and recognized in connection with restructuring programs designed to reduce the cost structure, increase efficiency and enhance competitiveness. Judgment is used when estimating the impact of restructuring plans, including future termination benefits and other exit costs to be incurred when the actions take place. Costs for one-time termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period. Actual results could vary from these estimates. | |
x. Reclassifications: | |
Certain comparative figures have been reclassified to conform to the current year presentation. | |
y. Recently issued accounting pronouncements: | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued guidance that requires that a non-recognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This net presentation is required unless a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset to settle any additional income tax that would result from the disallowance of the unrecognized tax benefit. This guidance is effective for fiscal years beginning after December 15, 2013, with early adoption permitted. Teva is assessing whether the adoption of this standard will have a material impact on its consolidated financial statements. | |
In March 2013, the FASB issued further guidance on accounting for the release of a cumulative translation adjustment into net income when a parent company either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets and provides guidance for the acquisition in stages of a controlling interest in a foreign entity. This guidance is effective for fiscal years beginning after December 15, 2013, with early adoption permitted. Teva believes that the adoption of this standard will not have a material impact on its consolidated financial statements. | |
In February 2013, the FASB issued guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, except for obligations addressed within existing guidance under U.S. generally accepted accounting principles. The update is effective for annual and interim reporting periods for fiscal years beginning after December 15, 2013, with early adoption permitted. Teva believes that the adoption of this standard will not have a material impact on its consolidated financial statements. | |
In January 2013, the FASB clarified that a previous update applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. This update was effective for annual and interim reporting periods for fiscal years beginning on or after January 1, 2013. Teva's adoption of this standard did not have a material impact on its consolidated financial statements. |
CERTAIN_TRANSACTIONS
CERTAIN TRANSACTIONS | 0 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Certain Transactions [Abstract] | ' | ||||||||
Certain Transactions | ' | ||||||||
NOTE 2 – CERTAIN TRANSACTIONS: | |||||||||
Business transactions: | |||||||||
NuPathe Inc.: | |||||||||
On January 21, 2014, Teva entered into a definitive agreement to purchase NuPathe Inc., for approximately $144 million, plus up to an additional $130 million if certain conditions are met. This transaction is expected to close in late February 2014. The future financial effect of this transaction is yet to be determined, but there was no effect on Teva's 2013 consolidated financial statements. | |||||||||
MicroDose Therapeutx: | |||||||||
On July 8, 2013, Teva fully acquired MicroDose Therapeutx, Inc. (“MicroDose”), a pharmaceutical and drug delivery company focused on inhalation technologies and products for lung diseases and infections. Under the terms of the agreement, Teva acquired all of MicroDose's outstanding shares for a cash payment at closing of $40 million. Teva is required to make additional payments upon the achievement of regulatory and development milestones, plus sales-based milestones and tiered royalty payments upon commercialization of the phase-2 MDT-637 candidate and an early stage asthma/COPD drug candidate. These potential additional payments were evaluated at a fair value of approximately $206 million as of the acquisition date. | |||||||||
Pro forma information giving effect to the acquisition has not been provided as the results would not be material. | |||||||||
Sale of animal health unit: | |||||||||
On September 14, 2012, Teva entered into an agreement to sell its U.S.-based animal health unit for up to $145 million. The consideration included an upfront payment of $60 million at closing and up to $85 million in milestone payments. The transaction closed in January 2013 and has not materially affected Teva's financial results. | |||||||||
South Korea venture: | |||||||||
In December 2012, Teva entered into an agreement with Handok Pharmaceutical Co. Ltd. (“Handok”), to form a business venture in South Korea, allowing Teva to gain entrance into the Korean pharmaceutical market. Under the agreement, Teva contributes its global resources, with responsibilities for manufacturing and supplying a wide range of affordable and innovative medicines, and Handok's primary responsibility is in sales and marketing, distribution, and regulatory affairs. Under the terms of the agreement, there is a voting split of 60% and 40% and a profit split of 51% and 49% to Teva and Handok, respectively. The Company consolidated the venture as it was determined to be the primary beneficiary of this variable interest entity. | |||||||||
The new consolidated venture had an immaterial effect on Teva's 2013 and 2012 financial results. | |||||||||
Acquisition of Neurosearch A/S assets: | |||||||||
On October 25, 2012, Teva acquired from NeuroSearch A/S (“NeuroSearch”), a Danish company, the rights, assets and obligations relating to Huntexil® (pridopidine/ACR16), a drug candidate being developed for the symptomatic treatment of hand movement, balance and gait disturbances in Huntington's disease. Under the agreement, Teva paid NeuroSearch approximately $26 million. Regulatory and commercialization milestone payments may result in additional payments of approximately $10 million to NeuroSearch. | |||||||||
PGT Healthcare: | |||||||||
In November 2011, Teva formed PGT Healthcare, a consumer healthcare joint venture with The Procter & Gamble Company (“P&G”). Headquartered in Geneva, Switzerland, the joint venture focuses on branded OTC medicines in categories such as cough/cold and allergy, digestive wellness, vitamins, minerals and supplements, analgesics and skin medications, and operates in all markets outside North America. Its leading brands are Vicks®, Metamucil®, Pepto-Bismol®, and ratiopharm. The joint venture may also develop new brands for the North American market and certain global markets. PGT Healthcare's strengths include P&G's strong brand-building, consumer-led innovation and go-to-market capabilities; Teva's broad geographic reach, experience in R&D, regulatory and manufacturing expertise and extensive portfolio of products, and each company's scale and operational efficiencies. | |||||||||
We own 49% of the joint venture, and P&G holds a controlling financial interest of 51%. The Company recognizes profits of the joint venture based on Teva's ownership percentage. The joint venture has certain independent operations and contracts for other services from its two partners in an effort to leverage their scale and capabilities and thereby maximize efficiencies. Such services include research and development, manufacturing, sales and distribution, administration and other services, provided under agreements with the joint venture. The partners have certain rights to terminate the joint venture after seven years and earlier under other circumstances. As of December 2012, the OTC products of Cephalon (Mepha) were included in the joint venture. No significant changes occurred in 2013. | |||||||||
Cephalon acquisition: | |||||||||
In October 2011, Teva acquired Cephalon, Inc. ("Cephalon") for total cash consideration of $6.5 billion. Cephalon was a global biopharmaceutical company with a strong marketed portfolio and a pipeline of branded products. The acquisition diversified Teva's specialty portfolio and enhanced Teva's late-stage innovative pipeline. | |||||||||
The acquisition was financed by borrowing under credit facilities and by the issuance of long term debt. | |||||||||
At the closing, Cephalon had two outstanding series of convertible debt: $820 million of 2.0% notes due 2015 and $500 million of 2.5% notes due 2014. Both series became convertible as a result of the acquisition. The aggregate amount payable upon conversion was approximately $2.1 billion. By the end of 2011, holders of effectively 100% of Cephalon's convertible debt had submitted their debt for conversion. | |||||||||
Cephalon's results of operations and balance sheet were included in Teva's consolidated reports commencing October 2011. Pro forma results for the year of acquisition are shown below. | |||||||||
At the closing, Cephalon had contingent consideration liabilities related to future milestones payments due to the acquisition of Gemin X Pharmaceuticals, Inc. in April 2011, the acquisition of Ception Therapeutics, Inc. in February 2010, the acquisition of BioAssets Development Corporation in November 2009, and the inclusion of Alba Therapeutics Corporation in February 2011. The aggregate fair value amount of Cephalon's contingent consideration liabilities at the date of the Cephalon acquisition was $171 million. See note 3 for the contingent consideration amounts as of December 31, 2013. | |||||||||
<> | |||||||||
Of the purchase price, $1,296 million was allocated to the estimated fair value of purchased research and development in-process that, as of the closing date of the acquisition, had not reached technological feasibility. | |||||||||
<>Research and development in-process related to ten products. A probability of success factor was used to reflect inherent technological and regulatory risks. The net cash inflows were discounted to present values, using a discount rate of 13% and other assumptions, which take into account the stage of completion, nature and timing of efforts for completion, risks and uncertainties, among other key factors, which vary among the individual products. Material net cash inflows are expected to commence during 2015. During 2013 and 2012, six of these ten products have been impaired as disclosed in note 20, and Synribo® (omacetaxine) was launched during 2012. | |||||||||
Product rights and <>purchased research and development in process were valued using a variation of the income approach known as the “Multi-Period Excess Earnings Approach”. This method utilized a forecast of expected cash inflows (including adjustments, as appropriate, for regulatory and commercial risks), cash outflows and contributory charges for economic returns on tangible and intangible assets employed. | |||||||||
<>An amount of $2,555 million of the purchase price was allocated to existing products. The Company is amortizing existing products over a range of periods between 6.5 to 12 years. The excess of cost of acquisition over the fair value of net tangible and identifiable intangible assets on acquisition amounted to $3,279 million, and represented goodwill, which is primarily due to the expected synergies and economies of scale. | |||||||||
Below are certain unaudited pro forma combined statement of income data for the year ended December 31, 2011, as if the acquisition of Cephalon had occurred on January 1, 2010 after giving effect to: (a) purchase accounting adjustments, including amortization of identifiable intangible assets; (b) the exclusion of $288 million of nonrecurring expense related to inventory step up; (c) estimated additional finance expenses due to: (i) borrowings under credit facilities from banks in connection with the acquisition; (ii) the issuance of senior notes in connection with the acquisition; (iii) elimination of Cephalon's equity investment mark-to-market effect (an exclusion of income of $198 million supplemental pro forma net income); and (iv) elimination of Cephalon's finance expense relating to convertible debentures; (d) pharmaceutical products divested as part of the regulatory requirements for approving the deal; (e) elimination of intercompany sales; (f) elimination of net revenues related to the divestiture of certain overlapping products; (g) elimination of net revenues and income related to Cephalon's divested businesses (Middle East, Africa, Latin America and Asia); and (h) certain adjustments with regards to the amortization of Cephalon's Provigil® product. | |||||||||
This unaudited pro forma financial information is not necessarily indicative of the combined results that would have been attained had the acquisition taken place at the beginning of 2010, nor is it necessarily indicative of future results. | |||||||||
Year ended December 31, | |||||||||
2011 | |||||||||
(U.S. $ in millions, except earnings per share) | |||||||||
(Unaudited) | |||||||||
Net revenues | $ | 20,443 | |||||||
Net income attributable to Teva | $ | 2,681 | |||||||
Earnings per share: | |||||||||
Basic | $ | 3.01 | |||||||
Diluted | $ | 3 | |||||||
Transactions in Japan: | |||||||||
In September 2011, Teva acquired all non-controlling interests of its investment in Taisho, as well as gained 100% control on its former equity investment in Teva-Kowa, for a total purchase price of $150 million. This acquisition, together with the Taiyo acquisition described below, enabled Teva to expand its Japanese operations. | |||||||||
In July 2011, Teva acquired all of Taiyo Pharmaceutical Industry Co. Ltd.'s (“Taiyo”) outstanding shares for $1,092 million in cash. Taiyo had developed a large portfolio of generic products in Japan with over 550 marketed products, and its advanced production facilities enabled it to produce a wide range of dosage forms on a large scale. | |||||||||
The acquisition consideration was attributed to net assets on the basis of the fair value of assets acquired and liabilities assumed based on an appraisal performed by management, which included a number of factors, supported by independent appraisers. Taiyo's results of operations were included in Teva's consolidated financial statements commencing July 2011. | |||||||||
Since April 2012, the majority of Teva's Japan-based companies have operated under a single company – Teva Seiyaku. | |||||||||
CureTech: | |||||||||
In September 2011, Teva exercised an option to invest $19 million in CureTech Ltd. (“CureTech”), a biotechnology company. The Company also agreed to make further investments in CureTech's research and development activities. | |||||||||
In January 2013, Teva announced the termination of the collaboration with CureTech, sold its entire position and deconsolidated as of December 31, 2013. | |||||||||
Laboratoire Theramex acquisition: | |||||||||
In January 2011, Teva completed the acquisition of Laboratoire Theramex (“Theramex”), Merck KGaA's European-based women's health business, for €267 million in cash (approximately $355 million) and certain limited performance-based milestone payments. Theramex has a broad portfolio of women's health and gynecology products sold in over 50 countries, primarily France and Italy. | |||||||||
Corporación Infarmasa acquisition: | |||||||||
In January 2011, Teva acquired Corporación Infarmasa (“Infarmasa”), a top ten pharmaceutical company in Peru, from The Rohatyn Group and Altra Investments. Infarmasa manufactures and commercializes branded and unbranded generic drugs, primarily corticosteroids, antihistamines, analgesics and antibiotics. Infarmasa's product offerings have enhanced Teva's portfolio in the market, especially in the area of antibiotics, where Infarmasa has the leading brand in Peru. | |||||||||
Significant collaborative agreements: | |||||||||
<>The Company has entered into alliances and other arrangements with third parties to acquire rights to products it does not have, to access markets it does not operate in and to otherwise share development cost or business risks. The Company's most significant agreements of this nature are summarized below. < | |||||||||
< With Xenon: | |||||||||
On December 11, 2012, Teva entered into a collaborative development and exclusive worldwide license for XEN402 with Xenon Pharmaceuticals Inc. (“Xenon”). XEN402 is currently in clinical development for a variety of painful disorders. Under the agreement, Teva paid Xenon an upfront fee of $41 million. In addition, Teva may be required to pay development, regulatory and sales-based milestones of up to $335 million. Xenon is also entitled to royalties on sales and has an option to participate in commercialization in the United States. | |||||||||
With Lonza: | |||||||||
<>On January 20, 2009, Teva signed a definitive agreement with Lonza Group Ltd. to establish a joint venture to develop, manufacture and market a number of affordable, effective and safe generic equivalents of a selected portfolio of biologic pharmaceuticals. The joint venture commenced activities in May 2009. | |||||||||
Both companies announced the discontinuance of their collaboration for the development, manufacturing and marketing of biosimilars. No final agreement was reached by the end of 2013. Each of Teva and Lonza Group Ltd. had a 50% stake in the joint venture and recorded its share of the joint venture under share in losses of associated companies-net. | |||||||||
<><>With Sanofi: | |||||||||
Teva has an agreement with Sanofi that had provided for the marketing of Copaxone® in Europe and other markets. Copaxone® was co-promoted with Sanofi in Germany, France, Spain, the Netherlands and Belgium, and was marketed solely by Sanofi in certain other European markets, Australia and New Zealand. In 2010, Teva assumed the distribution and marketing responsibilities for Copaxone® in the United Kingdom, the Czech Republic and Poland. On February 1, 2012, Teva assumed the marketing responsibilities for Copaxone® in all other European countries, and also in Australia and New Zealand effective March 1, 2012. Following termination, Sanofi is entitled to an agreed-upon termination consideration of 6% of the in-market sales of Copaxone® in the applicable countries for an additional two-year period. Although Teva has recorded higher revenues as a result of this change, the Company also became responsible for certain marketing and administrative expenses, which are no longer shared with Sanofi. | |||||||||
Agreements with related parties: | |||||||||
As described above, in December 2012, Teva entered into a collaborative development and exclusive worldwide license agreement with Xenon for its compound XEN402. Dr. Michael Hayden, Teva's President of Global R&D and Chief Scientific Officer, is the founder, a minority shareholder and a member of the board of directors of Xenon. In order to avoid potential conflicts of interest, Teva has established certain procedures to exclude Dr. Hayden from any involvement in Teva's decision-making related to Xenon. | |||||||||
In September 2011, Teva entered into an agreement with CoCrystal Discovery, Inc. (now merged with Biozone Pharmaceuticals, Inc.), a company focusing on the discovery and development of novel therapeutics, utilizing an innovative drug discovery technology. Under the agreement, Teva will fund the company's R&D under the Research Agreement by investing into the company up to two tranches of $7.5 million each per target (the latter one being discretionary). The first tranche was invested by Teva in 2011. Dr. Phillip Frost, Chairman of the Board of Directors of Teva, and Prof. Roger Kornberg, a member of Teva's Board of Directors until August 2013, are both direct and indirect shareholders in and members of the board of directors of Biozone Pharmaceuticals. Prof. Kornberg is also Chief Scientific Officer of Biozone Pharmaceuticals. | |||||||||
CTG Weld Limited, a privately owned contract research organization, has rendered services to Teva in connection with clinical trials since 2002. In 2011, Chaim Hurvitz, a director of Teva, invested in, and became a member of the board of directors of, CTG Weld. In 2011, Teva engaged CTG Weld in connection with certain clinical studies, for overall payments of €2.1 million. In 2013 and 2012, Teva paid CTG Weld approximately €0.8 million and €1.3 million, respectively, in connection with various clinical studies. | |||||||||
Teva leases 13,500 square feet of office space located in Miami, Florida from an entity controlled by Dr. Frost, Teva's Chairman of the Board. The term of the lease extends until April 2015, with options to renew for two additional three-year terms. Annual rent was $305,000 until April 1, 2012, $412,000 until March 31, 2013 and is currently $431,442 until March 31, 2014, increasing 4% per year for the remainder of the initial term and each renewal term. The office space includes offices Teva provides Dr. Frost in his capacity as Chairman of the Board. |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 0 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Measurement [Abstract] | ' | ||||||||||||
Fair Value Measurement | ' | ||||||||||||
NOTE 3 – FAIR VALUE MEASUREMENT: | |||||||||||||
Financial items carried at fair value as of December 31, 2013 and 2012 are classified in the tables below in one of the three categories described in note 1t: | |||||||||||||
31-Dec-13 | |||||||||||||
(U.S. $ in millions) | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash and cash equivalents: | |||||||||||||
Money markets | $ | 9 | $ | — | $ | — | $ | 9 | |||||
Cash deposits and other | 1,029 | — | — | 1,029 | |||||||||
Marketable securities: | |||||||||||||
Auction rate securities | — | — | 18 | 18 | |||||||||
Equity securities | 70 | — | — | 70 | |||||||||
Structured investment vehicles | — | 89 | — | 89 | |||||||||
Other | 29 | — | 1 | 30 | |||||||||
Derivatives: | |||||||||||||
Liability derivatives - mainly options and forward contracts | — | -17 | — | -17 | |||||||||
Interest rate and cross - currency swaps (liabilities) | — | -436 | — | -436 | |||||||||
Asset derivatives - mainly options and forward contracts | — | 28 | — | 28 | |||||||||
Interest rate swaps (assets) | — | 2 | — | 2 | |||||||||
Contingent consideration * | — | — | -366 | -366 | |||||||||
Total | $ | 1,137 | $ | -334 | $ | -347 | $ | 456 | |||||
31-Dec-12 | |||||||||||||
(U.S. $ in millions) | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash and cash equivalents: | |||||||||||||
Money markets | $ | 331 | $ | — | $ | — | $ | 331 | |||||
Cash deposits and other | 2,548 | — | — | 2,548 | |||||||||
Marketable securities: | |||||||||||||
Auction rate securities | — | — | 32 | 32 | |||||||||
Equity securities | 72 | — | — | 72 | |||||||||
Structured investment vehicles | — | 100 | — | 100 | |||||||||
Other | 5 | — | 1 | 6 | |||||||||
Derivatives: | |||||||||||||
Liability derivatives - mainly options and forward contracts | — | -29 | — | -29 | |||||||||
Interest rate and cross-currency swaps (liabilities) | — | -109 | — | -109 | |||||||||
Asset derivatives - mainly options and forward contracts | — | 20 | — | 20 | |||||||||
Interest rate swaps (assets) | — | 4 | — | 4 | |||||||||
Contingent consideration * | — | — | -131 | -131 | |||||||||
Total | $ | 2,956 | $ | -14 | $ | -98 | $ | 2,844 | |||||
__________________________ | |||||||||||||
* Contingent consideration represents either liabilities or assets recorded at fair value as part of transactions entered into by Cephalon, or in connection with the MicroDose acquisition or sale of our animal health unit. | |||||||||||||
Teva determined the fair value of the liability or asset of contingent consideration based on a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration is based on several factors, such as: the cash flows projected from the success of unapproved product candidates; the probability of success for product candidates including risks associated with uncertainty regarding achievement and payment of milestone events; the time and resources needed to complete the development and approval of product candidates; the life of the potential commercialized products and associated risks of obtaining regulatory approvals in the U.S. and Europe and the discount rate for fair value measurement. | |||||||||||||
Significant changes in unobservable inputs, mainly the probability of success and cash flows projected, could result in material changes to the contingent consideration liability. | |||||||||||||
The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs. | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(U.S. $ in millions) | |||||||||||||
Carrying value as of January 1 | $ | -98 | $ | -139 | |||||||||
Amount realized | -16 | -10 | |||||||||||
Contingent consideration in connection with Cephalon acquisition | -12 | 40 | |||||||||||
Contingent consideration in connection with MicroDose acquisition | -232 | - | |||||||||||
Contingent consideration in connection with the sale of our animal health unit | 8 | - | |||||||||||
Net change to fair value: | |||||||||||||
Included in earnings - finance expense - net | 1 | 4 | |||||||||||
Included in other comprehensive income (loss) | 2 | 7 | |||||||||||
Carrying value as of December 31 | $ | -347 | $ | -98 | |||||||||
Financial instruments not measured at fair value | |||||||||||||
Teva's financial instruments consist mainly of cash and cash equivalents, marketable securities, current and non-current receivables, short-term credit, accounts payable and accruals, long-term loans and other long-term senior notes and loans, convertible senior debentures and derivatives. | |||||||||||||
The fair value of the financial instruments included in working capital and non-current receivables approximates their carrying value. The fair value of long-term bank loans mostly approximates their carrying value, since they bear interest at rates close to the prevailing market rates. | |||||||||||||
The fair value of the financial instruments that are presented on a basis other than fair value is presented in the below table: | |||||||||||||
Estimated fair value* | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(U.S. $ in millions) | |||||||||||||
Senior notes included under long-term liabilities | $ | -8,656 | $ | -10,494 | |||||||||
Senior notes and convertible senior debentures included under short-term liabilities | -1,308 | -2,870 | |||||||||||
Fair value at the end of the period | $ | -9,964 | $ | -13,364 | |||||||||
* The fair value was estimated based on quoted market prices, where available. |
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 0 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||
Marketable Securities | ' | |||||||||||
NOTE 4—INVESTMENT IN SECURITIES: | ||||||||||||
Available-for-sale securities | ||||||||||||
Available-for-sale securities are comprised mainly of debt securities, equity securities and money market funds. | ||||||||||||
At December 31, 2013 and 2012, the fair value, amortized cost and gross unrealized holding gains and losses of such securities are as follows: | ||||||||||||
Fair value | Amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | |||||||||
(U.S. $ in millions) | ||||||||||||
31-Dec-13 | $ | 216 | $ | 213 | $ | 25 | $ | 22 | ||||
31-Dec-12 | $ | 541 | $ | 533 | $ | 27 | $ | 19 | ||||
Investments in securities are classified based on the initial maturity as well as the intended time of realization. | ||||||||||||
Investments in securities are presented in the balance sheet as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(U.S. $ in millions) | ||||||||||||
Other non-current assets | $ | 179 | $ | 205 | ||||||||
Other current assets | 28 | 5 | ||||||||||
Cash and cash equivalents, mainly money market funds | 9 | 331 | ||||||||||
$ | 216 | $ | 541 | |||||||||
b. | Contractual maturities | |||||||||||
The contractual maturities of debt securities are as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | ||||||||||||
(U.S. $ in millions) | ||||||||||||
2014 | $ | 37 | ||||||||||
2015 | 0 | |||||||||||
2016 | 1 | |||||||||||
2017 | 0 | |||||||||||
2018 | 0 | |||||||||||
2019 and thereafter | 108 | |||||||||||
$ | 146 |
INVENTORIES
INVENTORIES | 0 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories [Abstract] | ' | |||||||
Inventories | ' | |||||||
NOTE 5—INVENTORIES: | ||||||||
Inventories, net of reserves, consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(U.S. $ in millions) | ||||||||
Finished products | $ | 2,567 | $ | 2,871 | ||||
Raw and packaging materials | 1,576 | 1,754 | ||||||
Products in process | 715 | 751 | ||||||
Materials in transit and payments on account | 195 | 126 | ||||||
$ | 5,053 | $ | 5,502 |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 0 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property Plant And Equipment [Abstract] | ' | |||||||||
Property, Plant and Equipment | ' | |||||||||
NOTE 6—PROPERTY, PLANT AND EQUIPMENT: | ||||||||||
Property, plant and equipment, net, consisted of the following: | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
(U.S. $ in millions) | ||||||||||
Machinery and equipment | $ | 4,633 | $ | 4,220 | ||||||
Buildings | 2,635 | 2,521 | ||||||||
Computer equipment and other assets | 1,310 | 1,196 | ||||||||
Payments on account | 716 | 726 | ||||||||
Land* | 446 | 475 | ||||||||
9,740 | 9,138 | |||||||||
Less—accumulated depreciation | 3,105 | 2,823 | ||||||||
$ | 6,635 | $ | 6,315 | |||||||
* | Land includes long-term leasehold rights in various locations, with useful lives of between 30 and 99 years. | |||||||||
Depreciation expenses were $458 million, $428 million and $358 million in the years ended December 31, 2013, 2012 and 2011, respectively. During the years ended December 31, 2013 and 2012, Teva had impairments of property, plant and equipment in the amount of $61 million and $190 million, respectively. See note 20. |
GOODWILL_DISCLOSURE
GOODWILL DISCLOSURE | 0 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Goodwill [Abstract] | ' | |||||||||||||
Goodwill Disclosure | ' | |||||||||||||
NOTE 7—GOODWILL: | ||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||||
2013 | 2012 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||
Balance as of January 1 | $ | 18,856 | $ | 18,293 | ||||||||||
Changes during year: | ||||||||||||||
Goodwill acquired | 50 | 302 | ||||||||||||
Translation differences and other | 75 | 261 | ||||||||||||
Balance as of December 31 | $ | 18,981 | $ | 18,856 | ||||||||||
Following Teva's reorganized structure, as defined in note 21, the Company has reassigned its goodwill to the newly defined reporting units. The carrying amount of goodwill per segment is as follows: | ||||||||||||||
31-Dec-13 | ||||||||||||||
(U.S. $ in millions) | ||||||||||||||
Generics | Specialty | Other* | Total | |||||||||||
Balance as of December 31 | $ | 9,088 | $ | 8,668 | $ | 1,225 | $ | 18,981 | ||||||
* Includes primarily Teva's OTC business activity and distribution of third party products. | ||||||||||||||
<><As of December 31, 2013, 2012 and 2011, the Company determined that there was no impairment with respect to goodwill. |
IDENTIFIABLE_INTANGIBLE_ASSET
IDENTIFIABLE INTANGIBLE ASSET | 0 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Identifiable Intangible Asset [Abstract] | ' | |||||||||||||||||||
Identifiable Intangible Asset [Text Block] | ' | |||||||||||||||||||
NOTE 8 - IDENTIFIABLE INTANGIBLE ASSETS: | ||||||||||||||||||||
Identifiable intangible assets consisted of the following: | ||||||||||||||||||||
Original amount net of impairment | Accumulated amortization | Amortized balance | ||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Product rights | $ | 10,037 | $ | 9,983 | $ | 4,601 | $ | 3,429 | $ | 5,436 | $ | 6,554 | ||||||||
Trade names | 270 | 258 | 55 | 55 | 215 | 203 | ||||||||||||||
Research and development in process | 825 | 988 | 0 | 0 | 825 | 988 | ||||||||||||||
Total | $ | 11,132 | $ | 11,229 | $ | 4,656 | $ | 3,484 | $ | 6,476 | $ | 7,745 | ||||||||
Product rights and trade names are assets presented at amortized cost. These assets represent a portfolio of pharmaceutical products from various categories with a weighted average life of approximately 10 years. Amortization of intangible assets amounted to $1,180 million, $1,272 million and $707 million in the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||
Teva's in process research and development are assets that have not yet been approved in major markets. Teva's in process research and development is comprised mainly of the following assets: Revascor ® (Cephalon) - $258 million; Cinquil (Cephalon) - $215 million; LAMA BAI (MicroDose) - $140 million; and MDT637 (MicroDose) - $107 million. In-process research and development carry intrinsic risks that the asset might not succeed in advanced phases and will be impaired in future periods. | ||||||||||||||||||||
<><><>Impairment of identifiable intangible assets amounted to $393 million, $858 million and $143 million in the years ended December 31, 2013, 2012 and 2011, respectively. See note 20. | ||||||||||||||||||||
<><><>As of December 31, 2013, the estimated aggregate amortization of intangible assets for the years 2014 to 2018 is as follows: 2014—$1,071 million; 2015—$836 million; 2016—$730 million; 2017—$715 million and 2018—$656 million. |
SHORT_TERM_DEBT
SHORT TERM DEBT | 0 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Short Term Debt [Abstract] | ' | |||||||
Short Term Debt | ' | |||||||
NOTE 9—SHORT-TERM DEBT: | ||||||||
a. | Short-term debt: | December 31, | ||||||
2013 | 2012 | |||||||
(U.S. $ in millions) | ||||||||
Banks and financial institutions | $ | 458 | $ | 45 | ||||
Convertible debentures (see note 13) | 530 | 530 | ||||||
Current maturities of long-term liabilities | 816 | 2,431 | ||||||
Total | $ | 1,804 | $ | 3,006 | ||||
<>Short-term debt has an earliest date of repayment within 12 months. | ||||||||
Bank loans had a weighted average interest rate of 0.9% and 1.5% at December 31, 2013 and 2012, respectively. | ||||||||
b. Line of credit: | ||||||||
In December 2012, the Company entered into a five-year $3.0 billion unsecured syndicated credit facility, which replaced the previous $2.5 billion facility. As of December 31, 2013, Teva utilized $205 million of the above credit facility, which was subsequently repaid. | ||||||||
SALES_RESEARVES_AND_ALLOWANCES
SALES RESEARVES AND ALLOWANCES | 0 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Sales Researves And Allowancess [Abstract] | ' | ||||||||
Sales Researves And Allowancess [Text Block] | ' | ||||||||
NOTE 10—SALES RESERVES AND ALLOWANCES: | |||||||||
Sales reserves and allowances consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(U.S. $ in millions) | |||||||||
Rebates | $ | 3,090 | $ | 2,983 | |||||
Chargebacks | 1,114 | 1,273 | |||||||
Returns | 573 | 506 | |||||||
Other | 141 | 172 | |||||||
$ | 4,918 | $ | 4,934 | ||||||
LONG_TERM_EMPLOYEE_RELATED_OBL
LONG TERM EMPLOYEE RELATED OBLIGATIONS | 0 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Long Term Employee Related Obligations [Abstract] | ' | |||||||
Long Term Employee Related Obligations | ' | |||||||
NOTE 11—LONG-TERM EMPLOYEE-RELATED OBLIGATIONS: | ||||||||
a. | Long-term employee-related obligations consisted of the following: | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(U.S. $ in millions) | ||||||||
Accrued severance obligations | $ | 132 | $ | 135 | ||||
Defined benefit plans | 149 | 160 | ||||||
Total | $ | 281 | $ | 295 | ||||
<>As of December 31, 2013 and 2012, the Group had $156 million and $134 million, respectively, deposited in funds managed by financial institutions that are earmarked by management to cover severance pay liability mainly in respect of Israeli employees. Such deposits are not considered to be “plan assets” and are therefore included in long-term investments and receivables. | ||||||||
Most of the change resulted from actuarial updates, as well as from exiting from several defined benefit plans in several countries. | ||||||||
<>The Company expects to contribute approximately $118 million in 2014 to the pension funds and insurance companies in respect of its severance and pension pay obligations. | ||||||||
<>The main terms of the different arrangements with employees are described in b. below. | ||||||||
<>b. Terms of arrangements: | ||||||||
<><><Israel | ||||||||
Israeli law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The Parent Company and its Israeli subsidiaries make ongoing deposits into employee pension plans to fund their severance liabilities. According to the general collective pension agreement in Israel, Company deposits with respect to employees who were employed by the Company after the agreement took effect are made in lieu of the Company's severance liability, therefore no obligation is provided for in the financial statements. Severance pay liabilities with respect to employees who were employed by the Parent Company and its Israeli subsidiaries prior to the collective pension agreement effective date, as well as employees who have special contractual arrangements, are provided for in the financial statements based upon the number of years of service and the latest monthly salary. | ||||||||
<><>Europe | ||||||||
Many of the employees in the Company's European subsidiaries are entitled to a retirement grant when they leave. In the consolidated financial statements, the liability of the subsidiaries is accrued, based on the length of service and remuneration of each employee at the balance sheet date. Other employees in Europe are entitled to a pension according to a defined benefit scheme providing benefits based on final or average pensionable pay or according to a hybrid pension scheme that provides retirement benefits on a defined benefit and a defined contribution basis. Independent certified actuaries value these schemes and determine the rates of contribution payable. Pension costs for the defined benefit section of the scheme are accounted for on the basis of charging the expected cost of providing pensions over the period during which the subsidiaries benefit from the employees' services. The Company uses December 31 as the measurement date for defined benefit plans. | ||||||||
<><>North America<> | ||||||||
The Company's North American subsidiaries mainly provide various defined contribution plans for the benefit of their employees. Under these plans, contributions are based on specified percentages of pay. Additionally, a multi-employer plan is maintained in accordance with various union agreements. | ||||||||
<><>Latin America<> | ||||||||
The majority of the employees in Latin America are entitled to severance under local law. The severance payments are calculated based on service term and employee remuneration, and accruals are maintained to reflect these amounts. | ||||||||
<>The Company expects to pay the following future minimum benefits to its employees: $15 million in 2014; $10 million in 2015; $10 million in 2016; $12 million in 2017; $14 million in 2018 and $79 million between 2019 to 2023. These amounts do not include amounts that might be paid to employees who cease working with the Company before their normal retirement age. |
SENIOR_NOTES_AND_LOANS
SENIOR NOTES AND LOANS | 0 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Senior Notes and Loans [Abstract] | ' | ||||||||
Senior Notes and Loans | ' | ||||||||
NOTE 12—SENIOR NOTES AND LOANS: | |||||||||
a. | Senior notes and loans consisted of the following: | ||||||||
Interest rate as of December 31, 2013 | December 31, | ||||||||
2013 | 2012 | ||||||||
% | (U.S. $ in millions) | ||||||||
Senior notes (1) | 2.8 | $ | 9,517 | $ | 12,152 | ||||
Loans, mainly from banks (2)(4) | 0.3 to 2.3 | 1,671 | 1,976 | ||||||
Debentures (4) | 7.2 | 15 | 15 | ||||||
11,203 | 14,143 | ||||||||
Less - current portion (included under “short-term debt”) | -816 | -2,431 | |||||||
$ | 10,387 | $ | 11,712 | ||||||
The decrease from December 31, 2012 to December 31, 2013 was mainly due to the repayment of debt, consisting of: | |||||||||
$1 billion principal amount of Teva's 1.7% senior notes due 2014 prepaid during the first quarter of 2013. | |||||||||
$500 million principal amount of Teva's 5.55% senior notes due 2016 prepaid during the first quarter of 2013. | |||||||||
Repayment at maturity in May 2013 of the $200 million floating rate senior notes issued in November 2011 as part of the financing of the Cephalon acquisition. | |||||||||
Repayment at maturity in November 2013 of the $1.1 billion floating rate senior notes issued in November 2011 as part of the financing of the Cephalon acquisition. | |||||||||
The balance as of December 31, 2013 and 2012 is mainly comprised of: | |||||||||
Loans from the European Investment Bank (EIB) in the amount of $168 million (denominated in Euro) and $410 million (denominated in Euro (mainly) and USD), respectively. The loans are due in 2015 and bear interest determined on the basis of Euro LIBOR (mainly) and USD LIBOR. | |||||||||
A ¥100.5 billion senior unsecured fixed rate term loan credit agreement for 5 and 7 years with interest rates of 0.99% and 1.42%, respectively. In April 2012, Teva drew down the entire amount available under the facility and repaid the borrowings used to finance the acquisition of Taiyo (approximately $1 billion). | |||||||||
Debt raised in Japan in the amount of $207 million and $376 million, respectively, mainly related to the Taiyo ayo acquisition comprised of bank loans, capital leases and other loans. | |||||||||
A ¥35 billion senior unsecured five-year term loan, borrowed in December 2013, by a Japanese subsidiary of the Company, bearing interest of JPY LIBOR + 0.3% (approximately $0.3 billion). | |||||||||
In January 2014, Teva entered into a $1.0 billion term loan agreement with a term of five years. The loan bears interest of LIBOR+1.1%. | |||||||||
Certain loan agreements and debentures contain restrictive covenants, mainly the requirement to maintain certain financial ratios. As of December 31, 2013, the Company met all financial covenants. | |||||||||
The above includes derivative instruments defined as hedge accounting- see note 17. | |||||||||
b. The Company and certain subsidiaries entered into negative pledge agreements with certain banks and institutional investors. Under the agreements, the Company and such subsidiaries have undertaken not to register floating charges on assets in favor of any third parties without the prior consent of the banks, to maintain certain financial ratios and to fulfill other restrictions, as stipulated by the agreements. | |||||||||
c. The required annual principal payments of long-term debt as of December 31, 2013, starting with the year 2015, are as follows: | |||||||||
December 31, | |||||||||
2013 | |||||||||
(U.S. $ in millions) | |||||||||
2015 | $ | 1,331 | |||||||
2016 | 985 | ||||||||
2017 | 648 | ||||||||
2018 | 875 | ||||||||
2019 and thereafter | 6,548 | ||||||||
$ | 10,387 | ||||||||
CONVERTIBLE_SENIOR_DEBENTURES
CONVERTIBLE SENIOR DEBENTURES | 0 Months Ended |
Dec. 31, 2013 | |
Convertible Senior Debentures [Abstract] | ' |
Convertible Senior Debentures | ' |
NOTE 13—CONVERTIBLE SENIOR DEBENTURES: | |
Convertible senior debentures amounted to $530 million at both December 31, 2013 and 2012, comprised primarily of the 0.25% convertible senior debentures due 2026. These convertible senior debentures include a “net share settlement” feature according to which the principal amount will be paid in cash and in case of conversion, only the residual conversion value above the principal amount will be paid in Teva shares. Due to the “net share settlement” feature, exercisable at any time, these convertible senior debentures are classified in the balance sheet under short-term debt. The earliest redemption by its holders is February 1, 2016. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 0 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
NOTE 14—COMMITMENTS AND CONTINGENCIES: | |
a. Commitments: | |
Operating leases: | |
As of December 31, 2013, minimum future rentals under operating leases of buildings, machinery and equipment for periods in excess of one year were as follows: 2014—$117 million; 2015—$94 million; 2016—$76 million; 2017—$53 million; 2018—$36 million; 2019 and thereafter—$76 million. | |
The lease fees expensed in each of the years ended December 31, 2013, 2012 and 2011 were $117 million, $132 million and $115 million, respectively, of which less than $0.5 million was to related parties in each of the years ended December 31, 2013, 2012 and 2011. | |
Royalty commitments: | |
The Company is committed to paying royalties to owners of know-how, partners in alliances and other certain arrangements and to parties that financed research and development, at a wide range of rates as a percentage of sales or of the gross margin of certain products, as defined in the underlying agreements. | |
Milestone commitments: | |
The Company is committed to paying milestone payments, usually as part of business transactions. Such payments are contingent upon the achievement of certain regulatory milestones and sales targets. As of December 31, 2013, were all milestones and targets, for compounds in Phase II and more advanced stages of development, to be achieved, the total contingent payments could reach an aggregate of up to approximately $1.3 billion. | |
b. Contingencies: | |
General | |
From time to time, Teva and/or its subsidiaries are subject to claims for damages and/or equitable relief arising in the ordinary course of business. In addition, as described below, in large part as a result of the nature of its business, Teva is frequently subject to litigation. Teva believes that it has meritorious defenses to all actions brought against it and vigorously pursues the defense or settlement of each such action. Except as described below, Teva does not currently have a reasonable basis to estimate the loss, or range of loss, that is reasonably possible with respect to actions disclosed in this note. | |
Teva records a provision in its financial statements to the extent that it concludes that a contingent liability is probable and the amount thereof is estimable. Based upon the status of these cases, management's assessments of the likelihood of damages, and the advice of counsel, no provisions have been made regarding the matters disclosed in this note, except as noted below. Because litigation outcomes and contingencies are unpredictable, and because excessive verdicts can occur, these assessments involve complex judgments about future events and can rely heavily on estimates and assumptions. | |
Based on currently available information, Teva believes that none of the proceedings brought against it described below is likely to have a material adverse effect on its financial condition. However, if one or more of such proceedings were to result in final judgments against Teva, such judgments could be material to its results of operations and cash flow in a given period. In addition, Teva incurs significant legal fees and related expenses in the course of defending its positions even if the facts and circumstances of a particular litigation do not give rise to a provision in the financial statements. | |
In connection with third-party agreements, Teva may under certain circumstances be required to indemnify, and may be indemnified by, in unspecified amounts, the parties to such agreements against third-party claims. Teva's agreements with third parties may require Teva to indemnify them, or require them to indemnify Teva, for the costs and damages incurred in connection with product liability claims, in specified or unspecified amounts. | |
Except as otherwise noted, all of the litigation matters disclosed below involve claims arising in the United States. All third-party sales figures given below are based on IMS data. | |
Intellectual Property Matters | |
From time to time, Teva seeks to develop generic versions of patent-protected pharmaceuticals for sale prior to patent expiration in various markets. In the United States, to obtain approval for most generics prior to the expiration of the originator's patents, Teva must challenge the patents under the procedures set forth in the Hatch-Waxman Act of 1984, as amended. To the extent that Teva seeks to utilize such patent challenge procedures, Teva is and expects to be involved in patent litigation regarding the validity, enforceability or infringement of the originator's patents. Teva may also be involved in patent litigation involving the extent to which its product or manufacturing process techniques may infringe other originator or third-party patents. | |
Additionally, depending upon a complex analysis of a variety of legal and commercial factors, Teva may, in certain circumstances, elect to market a generic version even though litigation is still pending. This could be before any court decision is rendered or while an appeal of a lower court decision is pending. To the extent Teva elects to proceed in this manner, it could face substantial liability for patent infringement if the final court decision is adverse to Teva. | |
The general rule for damages in patent infringement cases in the United States is that the patentee should be compensated by no less than a reasonable royalty, and it may also be able in certain circumstances to be compensated for its lost profits. The amount of a reasonable royalty award would be calculated based on the sales of Teva's generic product. The amount of lost profits would be based on the lost sales of the branded product. The launch of an authorized generic and other generic competition may be relevant to the damages calculation. In addition, the patentee may seek consequential damages as well as enhanced damages of up to three times the profits lost by the patent holder for willful infringement, although courts have typically awarded much lower multiples. | |
Teva is also involved in litigation regarding patents in other countries where it does business, particularly in Europe, where Teva has in recent years increased the number of launches of its generic versions of branded pharmaceuticals prior to the expiration of the innovator's patents. The laws concerning generic pharmaceuticals and patents differ from country to country. Damages for patent infringement in Europe may include lost profits or a reasonable royalty, but enhanced damages for willful infringement are generally not available. | |
In December 2007, Teva commenced sales of its 20 mg and 40 mg pantoprazole sodium tablets, which are the AB-rated generic versions of Wyeth's Protonix®. Wyeth sued Teva for patent infringement, and in April 2010, a jury returned a verdict finding that the patent, which Teva had infringed, was valid. In June 2013, Teva entered into a settlement agreement with Wyeth, under which Teva agreed to pay $1.6 billion to Wyeth. Teva has paid $1 billion to date, and will pay the remainder in 2014. Teva believes that it may have up to approximately $560 million of net insurance coverage available to defray the payments, subject to recovery from the insurance carriers, which are disputing both their obligation to cover and the claimed limits of coverage. | |
Product Liability Matters | |
Teva's business inherently exposes it to potential product liability claims. As Teva's portfolio of available medicines continues to expand, the number of product liability claims asserted against Teva has increased. Teva maintains product liability insurance coverage in amounts and with terms that it believes are reasonable and prudent in light of its business and related risks. However, Teva sells, and will continue to sell, pharmaceuticals that are not covered by insurance; in addition, it may be subject to claims for which insurance coverage is denied as well as claims that exceed its policy limits. Product liability coverage for pharmaceutical companies is becoming more expensive and increasingly difficult to obtain. As a result, Teva may not be able to obtain the type and amount of coverage it desires. | |
In June 2011, the United States Supreme Court held, in Pliva, Inc. v. Mensing, one of the metoclopramide cases mentioned below, that federal law preempts state law product liability claims brought against generic pharmaceutical manufacturers under a “failure to warn” theory. On June 24, 2013, the United States Supreme Court held, in Mutual Pharmaceutical Company, Inc. v. Bartlett, that “design defect” claims against a generic manufacturer are also preempted by federal law because they are essentially failure to warn claims and therefore are preempted on the same grounds as the claims in Mensing. Teva believes that these decisions are likely to reduce its aggregate exposure in currently pending product liability lawsuits involving generic products, including those described below, although the extent of such reduction is uncertain at this time. | |
Teva and/or its subsidiaries have been named as defendants in approximately 4,000 product liability lawsuits brought against them and other manufacturers by approximately 4,400 plaintiffs claiming injuries (including allegations of neurological disorders, such as tardive dyskinesia) from the use of metoclopramide (the generic form of Reglan®). Certain of these claims are covered by insurance. For over 20 years, the FDA-approved label for metoclopramide has contained warning language about the risk of tardive dyskinesia, and that the risk of developing the disorder increases with duration of treatment and total cumulative dose. In February 2009, the FDA announced that manufacturers of metoclopramide would be required to revise the label, including the addition of a “black box” warning about the risk of tardive dyskinesia resulting from long-term usage. The cases of approximately 500 of the plaintiffs have been dismissed or otherwise resolved to date. Teva expects to be dismissed from at least some of the remaining cases on the basis that some plaintiffs cannot demonstrate that they used a Teva product. | |
Approximately 40% of the plaintiffs are parties to cases against Teva that are part of a mass tort proceeding in the Philadelphia Court of Common Pleas. In addition, there are mass tort proceedings under way in state courts in California and New Jersey. All of the cases in the Philadelphia court have been stayed with respect to the generic defendants pending resolution of appeals regarding whether the claims should be dismissed due to federal preemption. On July 29, 2013, the Pennsylvania Superior Court affirmed in part and reversed in part the trial court's denial of the generic defendants' preemption motion. This ruling substantially allows the cases to proceed. Teva has sought further review of this decision. | |
In the California litigation, which now includes about half of the total plaintiffs, the defendants' motion to dismiss has been denied. In the New Jersey proceeding, the trial court granted the defendants' motion to dismiss, on federal preemption grounds, all claims other than those based on an alleged failure to timely update the label. Teva appealed the trial court's decision to allow the update claims to proceed, and the New Jersey Supreme Court has ordered the New Jersey appellate court to hear the appeal. Several cases in which Pliva, Inc., a subsidiary of Teva is a defendant, including cases pending in the New Jersey mass tort proceeding are, or may be, scheduled for trial later this year. Pliva has moved for a stay of the cases in the New Jersey mass tort proceeding while the appeal is pending. | |
Competition Matters | |
As part of its generic pharmaceuticals business, Teva has challenged a number of patents covering branded pharmaceuticals, some of which are among the most widely-prescribed and well-known drugs on the market. Many of Teva's patent challenges have resulted in litigation relating to Teva's attempts to market generic versions of such pharmaceuticals under the federal Hatch-Waxman Act. Some of this litigation has been resolved through settlement agreements in which Teva obtained a license to market a generic version of the drug, often years before the patents expire. Occasionally, Teva and its subsidiaries have been named as defendants in cases that allege antitrust violations arising from such settlement agreements. Teva believes that its settlement agreements are lawful and serve to increase competition, and intends to defend them vigorously. However, the plaintiffs in these cases typically allege (1) that Teva received something of value from the innovator in exchange for an agreement to delay generic entry, and (2) that they would have realized significant savings if there had been no settlement and competition had commenced earlier. These cases seek various forms of injunctive and monetary relief, including damages based on the difference between the brand price and what the generic price allegedly would have been, and disgorgement of profits, trebled under the relevant statutes, plus attorneys' fees and costs. The damages allegedly caused by the alleged delays in generic entry generally depend on the size of the branded market and the length of the alleged delay, and can be substantial, particularly where the alleged delays are lengthy or branded drugs with sales in the billions of dollars are involved. Nonetheless, as in the modafinil opt-out case described below, many such cases may be resolved through settlement for amounts considerably less than the damages initially alleged. | |
On June 17, 2013, the United States Supreme Court held, in Federal Trade Commission v. Actavis, Inc. (the “AndroGel case”), that a rule of reason test should be applied in analyzing whether such settlements potentially violate the federal antitrust laws. The Supreme Court held that a trial court must analyze each agreement in its entirety in order to determine whether it violates the antitrust laws. This new test may lead to increased scrutiny of Teva's patent settlements, additional administrative action by the Federal Trade Commission (“FTC”), and an increased risk of liability in Teva's currently pending antitrust litigations. | |
In April 2006, certain subsidiaries of Teva were named in a class action lawsuit filed in the United States District Court for the Eastern District of Pennsylvania. The case alleges that the settlement agreements involving finished modafinil products (the generic version of Provigil®) that Cephalon, Inc., a Teva subsidiary (“Cephalon”) entered into with various generic pharmaceutical companies in late 2005 and early 2006 were unlawful because they had the effect of excluding generic competition. The first lawsuit was brought by King Drug Company of Florence, Inc. on behalf of itself and as a proposed class action on behalf of any other person or entity that purchased Provigil® directly from Cephalon from January 2006 until the alleged unlawful conduct ceases. The first generic modafinil product was launched in March 2012. Similar allegations have been made in a number of additional complaints, including those filed on behalf of proposed classes of direct and indirect purchasers, by an individual indirect purchaser, by certain retail chain pharmacies and by Apotex, Inc. Annual sales of Provigil® were approximately $500 million at the time of the settlement agreements, and approximately $1 billion when the first generic modafinil product was launched in March 2012. | |
In February 2008, following an investigation, the FTC sued Cephalon, alleging that Cephalon violated Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive acts or practices in the marketplace, by unlawfully maintaining a monopoly in the sale of Provigil® and improperly excluding generic competition. In March 2010, the District Court denied defendants' motions to dismiss the federal antitrust claims and some of the related state law claims. Because the FTC lawsuit does not currently seek monetary damages, and no fines or penalties have been asserted against Cephalon, no provision has been recorded for this matter. On December 9, 2013, the FTC filed a motion seeking to add Teva as a defendant and indicated that it intends to seek disgorgement of profits as an equitable remedy, although it has not yet amended its complaint to include a request for disgorgement. Teva contends that the FTC is not entitled as a matter of law to seek disgorgement. | |
In May 2010, an independent pharmacy in Ohio filed suit with the same allegations. This case has been transferred to the Eastern District of Pennsylvania. | |
Teva has settled with certain of the retail chain pharmacies (representing approximately half of the direct purchases of Provigil® from Cephalon) and, given the significant similarities in the claims asserted and damages claimed by certain other purchaser plaintiffs, has concluded that a provision for certain other parts of the litigation is warranted. Accordingly, management recorded a provision of $495 million in the financial statements in the second quarter of 2013 for these matters. Management expects that the settlement demands of the remaining parties could be significantly higher, and there can be no assurance that Teva will be able to reach settlements with the remaining parties on these terms. | |
In October 2011, the District Court hearing the antitrust cases described above, as well as patent claims brought by plaintiff Apotex, issued its decision regarding Apotex's invalidity claims, finding a Cephalon patent to be invalid based on obviousness, among other things, and unenforceable based on inequitable conduct. In March 2012, the District Court ruled that Apotex's product does not infringe Cephalon's patent. On April 8, 2013, the United States Court of Appeals for the Federal Circuit affirmed the District Court's rulings of invalidity and inequitable conduct. The plaintiffs in the antitrust case have filed motions for summary judgment asking the District Court (1) to apply the inequitable conduct and invalidity findings to the antitrust cases in an effort to establish antitrust liability, and (2) to find a conspiracy between and among Cephalon and the generic companies. Teva has opposed those motions and moved for summary judgment, asserting that the FTC's case against Cephalon is moot and that the conspiracy claims should be dismissed. Oral argument on plaintiffs' motion for summary judgment with respect to the inequitable conduct and invalidity findings was heard on January 22, 2014. | |
In April 2011, the European Commission opened a formal investigation against both Cephalon and Teva to assess whether the 2005 settlement agreement between the parties might have had the object or effect of hindering the entry of generic modafinil. The opening of proceedings indicates that the Commission will investigate the case as a matter of priority, but does not mean that there has been a definitive finding of violation of law. | |
Barr Laboratories, Inc., a subsidiary of Teva (“Barr”), is a defendant in actions in California, Florida and Kansas alleging that a January 1997 patent litigation settlement agreement between Barr and Bayer Corporation was anticompetitive and violated state antitrust and consumer protection laws. An earlier federal multidistrict action regarding the same settlement agreement was effectively ended by a final court decision in the company's favor. In the California case, the trial court granted defendants' summary judgment motions, and the California Court of Appeal affirmed in October 2011. The plaintiffs petitioned for review by the California Supreme Court, which decided to hear the appeal, but then suspended the case before completion of briefing, pending the United States Supreme Court's disposition of the AndroGel case. The trial court granted final approval for a $74 million class settlement with Bayer and the California Supreme Court has requested supplemental briefs by April 24, 2014 addressing the effect of the AndroGel case on plaintiffs' appeal of the grant of summary judgment for the remaining defendants in this case, and for any amicus briefs. Based on the plaintiffs' expert testimony in the now-terminated federal multidistrict litigation, estimated sales of ciprofloxacin in California were approximately $500 million during the alleged damages period. The Kansas and Florida actions are in relatively early stages. In the Kansas action, class certification briefing will be concluded by August 22, 2014; no schedule has been set in the Florida action. | |
In December 2011, three groups of plaintiffs sued Wyeth and Teva for alleged violations of the antitrust laws in connection with their settlement of patent litigation involving extended release venlafaxine (generic Effexor® ER) entered into in November 2005. The cases were filed by a purported class of direct purchasers, by a purported class of indirect purchasers and by certain chain pharmacies. The plaintiffs claim that the settlement agreement between Wyeth and Teva unlawfully delayed generic entry. Teva filed motions to dismiss in April 2012. The case was stayed pending the decision in the AndroGel case, and has now been re-opened. The defendants' motions to dismiss were heard on September 10, 2013. Annual sales of Effexor® ER were approximately $2.6 billion at the time of settlement and at the time generic versions were launched in July 2010. | |
In February 2012, two purported classes of direct-purchaser plaintiffs sued GlaxoSmithKline (“GSK”) and Teva for alleged violations of the antitrust laws in connection with their settlement of patent litigation involving lamotrigine (generic Lamictal®) entered into in February 2005. In August 2012, a purported class of indirect purchaser plaintiffs filed a nearly identical complaint against GSK and Teva. The plaintiffs claim that the settlement agreement unlawfully delayed generic entry and seek unspecified damages. In December 2012, the District Court dismissed the cases. The plaintiffs' appeal was stayed pending the decision in the AndroGel case and was remanded for further proceedings. On January 24, 2014, the District Court denied the direct purchaser plaintiffs' motion for reconsideration and affirmed its original dismissal of the cases. The direct purchaser plaintiffs have filed a notice of appeal of this ruling. The indirect purchaser plaintiffs' motion is still pending. Annual sales of Lamictal® were approximately $950 million at the time of the settlement, and approximately $2.3 billion at the time generic competition commenced in July 2008. | |
Starting in September 2012, plaintiffs in 11 cases, including overlapping purported class actions, sued AstraZeneca and Teva, as well as Ranbaxy and Dr. Reddy's, for violating the antitrust laws by entering into settlement agreements to resolve the esomeprazole (generic Nexium®) patent litigation. Teva entered into its settlement agreement in January 2010. These cases have been consolidated and transferred to the United States District Court for the District of Massachusetts. The defendants' motions to dismiss were denied on April 18, 2013. Summary judgment motions were heard on January 21, 2014. The judge denied defendants' motion regarding an overarching conspiracy and took the other motions under advisement. A jury trial on liability, which is expected to last approximately six weeks, is scheduled to begin in March 2014. If the jury returns a verdict of liability, a separate trial on damages will be scheduled. Annual sales of Nexium® were approximately $6.3 billion at the time the Teva settlement agreement was entered into, and annual sales are currently approximately $6 billion. | |
In January 2013, GSK filed a lawsuit against Teva for violations of the Lanham Act in the marketing of its Budeprion XL 300 mg product. The lawsuit alleges that Teva made false representations in claiming that Budeprion XL 300 mg was bioequivalent to GSK's Wellbutrin® XL 300 mg and “implicitly communicated” that the product was as safe and efficacious as GSK's product. At the time Teva began selling Budeprion XL 300 mg, annual sales of Wellbutrin® XL 300 mg were approximately $1 billion. In April 2013, Teva filed a motion to dismiss the complaint on the grounds that GSK cannot retroactively challenge through the Lanham Act a determination of bioequivalence made by the FDA, and that Teva's alleged statements were not false or misleading as a matter of law. | |
In April 2013, purported classes of direct purchasers of and end payors for Niaspan® (extended release niacin) sued Teva and Abbott for violating the antitrust laws by entering into a settlement agreement in April 2005 to resolve patent litigation over the product. A multidistrict litigation has been established in the United States District Court for the Eastern District of Pennsylvania. Annual sales of Niaspan® were approximately $416 million at the time of the settlement and approximately $1.1 billion at the time generic competition commenced in September 2013. | |
Starting in July 2013, 12 lawsuits have been filed in several United States District Courts by purported classes of end payors for, and direct purchasers of, Solodyn® ER (minocycline hydrochloride) against Medicis, the innovator, and several generic manufacturers, including Teva. The lawsuits allege, among other things, that the settlement agreements between Medicis and the generic manufacturers violated the antitrust laws. Teva entered into its agreement with Medicis in March 2009. The parties have filed motions for the creation of a multidistrict litigation, and those motions are pending. Annual sales of Solodyn® ER were approximately $380 million at the time Teva settled, and approximately $765 million at the time generic competition entered the market on a permanent basis in November 2011. | |
Starting in November 2013, 20 lawsuits have been filed in several United States District Courts by purported classes of end payors for, and direct purchasers of, Aggrenox® (dipyridamole/aspirin tablets) against Boehringer Ingelheim (“BI”), the innovator, and several Teva entities. The lawsuits allege, among other things, that the settlement agreement between BI and Barr entered into in August 2008 violated the antitrust laws. The parties have filed motions for the creation of a multidistrict litigation, and those motions are pending. Annual sales of Aggrenox® were approximately $340 million at the time of the settlement, and are approximately $470 million at the current time. | |
In January 2014, three lawsuits were filed in the United States District Court for the Southern District of New York by purported classes of end payors for Actos® and Actoplus Met® (pioglitazone and pioglitazone plus metformin) against Takeda, the innovator, and several generic manufacturers, including Teva. The lawsuits allege, among other things, that the settlement agreements between Takeda and the generic manufacturers violated the antitrust laws. Teva entered into its agreement with Takeda in December 2010. At the time of the settlement, annual sales of Actos® were approximately $3.7 billion and annual sales of Actoplus Met® were approximately $500 million. At the time generic competition commenced in August 2012, annual sales of Actos® were approximately $2.8 billion and annual sales of Actoplus Met® were approximately $430 million. | |
Government Investigations, Pricing and Other Investigations | |
Teva is involved in government investigations and litigation arising from the marketing and promotion of its specialty pharmaceutical products in the United States. Many of these investigations originate through what are known as qui tam complaints, in which the government reviews a complaint filed under seal by a whistleblower (a “relator”) that alleges violations of the federal False Claims Act. The government considers whether to investigate the allegations and will, in many cases, issue subpoenas requesting documents and other information, including conducting witness interviews. The government must decide whether to intervene and pursue the claims as the plaintiff. Once a decision is made by the government, the complaint is unsealed. If the government decides not to intervene, then the relator may decide to pursue the lawsuit on his own without the active participation of the government. | |
Under the federal False Claims Act, the government (or relators who pursue the claims without the participation of the government in the case) may seek to recover up to three times the amount of damages in addition to a civil penalty of $5,500 to $11,000 for each allegedly false claim submitted to the government for payment. Generally speaking, these cases take several years for the investigation to be completed and, ultimately, to be resolved (either through litigation or settlement) after the complaint is unsealed. In addition, some states have pursued investigations under state false claims statutes or consumer protection laws, either in conjunction with a government investigation or separately. There is often collateral litigation that arises from public disclosures of government investigations, including the filing of class action lawsuits by third party payors or by shareholders alleging violations of the securities laws. | |
A number of state attorneys general and others have filed various actions against Teva and/or certain of its subsidiaries in the United States (collectively, the “Teva parties”) relating to reimbursements or drug price reporting under Medicaid or other programs. Such price reporting is alleged to have caused governments and others to pay inflated reimbursements for covered drugs. The Teva parties have reached settlements in most of these cases, and remain parties to litigation in Illinois and Wisconsin. A provision for the cases has been included in the financial statements. Trial in the Illinois case concluded in the fourth quarter of 2013, and the court has asked for post-trial briefing and argument. The State of Illinois is seeking approximately $100 million in compensatory damages. Any such damages ultimately awarded by the court are subject to automatic trebling. In addition, the state is seeking unspecified statutory penalties that could range, depending on the method used for calculation, from a de minimis amount to well over $100 million. Teva denies any liability, and will argue that even if the court finds liability, compensatory damages and penalties should be significantly less than the amount sought by the state. | |
Several qui tam complaints have been unsealed in recent years as a result of government decisions not to participate in the cases. The following is a summary of certain government investigations, qui tam actions and related matters. | |
In December 2009, the United States District Court for the District of Massachusetts unsealed a complaint alleging that numerous drug manufacturers, including certain Teva subsidiaries, violated the federal False Claims Act in connection with Medicaid reimbursement for certain vitamins, dietary supplements and DESI products that were allegedly ineligible for reimbursement. The Department of Justice declined to join in the matter. The defendants, including Teva, filed a motion to dismiss, which was granted on February 25, 2013. The plaintiffs' deadline to appeal the dismissal has not yet expired. | |
On September 11, 2013, the State of Louisiana filed a complaint seeking unspecified damages against 54 pharmaceutical companies, including several Teva subsidiaries. The complaint asserts that each of the defendants allegedly defrauded the state by falsely representing that its products were FDA-approved drugs, which allegedly caused the state Medicaid program to pay millions of dollars in reimbursement claims for products that it would not otherwise have covered. | |
Cephalon received and has responded to subpoenas related to Treanda®, Nuvigil® and Fentora®. In March 2013, a federal False Claims Act complaint filed against Cephalon in the United States District Court for the Southern District of New York was unsealed. The complaint alleges off-label promotion of Treanda® and Fentora®. Although the government declined to intervene, the relator is proceeding with the matter and has filed a second amended complaint. Cephalon has filed several motions to dismiss the case, which are pending. In January 2014, a separate federal False Claims Act complaint that had been filed against Cephalon and Takeda Pharmaceuticals in the United States District Court for the Eastern District of Pennsylvania was served on Cephalon. The government has declined to intervene and the relator is proceeding with the matter. The complaint alleges off-label promotion of Fentora®, Nuvigil®, Amrix® and Provigil®. | |
Cephalon continues to defend against putative class action and other complaints relating to allegations of off-label promotion of Actiq®, Fentora®, Provigil® and Gabitril®. Cephalon is a defendant in a putative class action filed in the United States District Court for the Eastern District of Pennsylvania in which plaintiffs, third party payors, allege approximately $700 million in losses resulting from the promotion and prescription of Actiq® for uses not approved by the FDA despite the availability of allegedly less expensive pain management drugs that were more appropriate for patients' conditions. A hearing on the plaintiffs' motion for class certification was held on July 24, 2013. If the court grants certification, a jury trial will be scheduled. | |
In December 2013, a putative class action on behalf of third party payors was filed in the United States District Court for the Eastern District of Pennsylvania alleging off-label promotion of Fentora®. Cephalon is defending a separate law suit with similar off-label claims involving Provigil® and Gabitril®. Cephalon is also a defendant in a lawsuit filed by the State of South Carolina alleging violations of the state's unfair trade practices law and common law in connection with the alleged off-label promotion of Actiq®, Provigil® and Gabitril®. | |
On January 8, 2014, Teva received a civil investigative demand from the United States Attorney for the Southern District of New York seeking documents and information from January 1, 2006 to the present related to sales, marketing and promotion of Copaxone® and Azilect®. The demand states that the government is investigating possible civil violations of the federal False Claims Act. Teva is in the process of complying with the subpoena. | |
Beginning in 2012, Teva received subpoenas and informal document requests from the Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”) to produce documents with respect to compliance with the U.S. Foreign Corrupt Practices Act (the “FCPA”) in certain countries. Teva has provided and will continue to provide documents and other information to the SEC and the DOJ, and is cooperating with the government in their investigations of these matters. Teva is also conducting a voluntary worldwide investigation into certain business practices that may have FCPA implications and has engaged independent counsel to assist in its investigation. In the course of its investigation, which is continuing, Teva has identified issues in Russia, certain Eastern European countries, certain Latin American countries and other countries where it conducts business that could rise to the level of FCPA violations and/or violations of local law. Teva has brought these issues to the attention of the SEC and the DOJ. No conclusion can be drawn at this time as to any likely outcomes in these matters. | |
Shareholder Litigation | |
On December 18, 2013, a putative class action securities lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of Teva's securities between January 1, 2012 and October 29, 2013. The complaint alleges that Teva and certain directors and officers violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and that the individual defendants violated Section 20 of the Exchange Act, by making false and misleading statements that failed to disclose the existence of significant internal discord between Teva's board of directors and senior management concerning execution of Teva's strategies, including implementation of a cost reduction program. The plaintiff is seeking unspecified compensatory damages and reimbursement for litigation expenses. | |
Environmental Matters | |
Teva is party to a number of proceedings, including some brought pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (commonly known as the Superfund law) or other national, federal, provincial or state and local laws imposing liability for alleged noncompliance with various environmental laws and regulations or for the investigation and remediation of releases of hazardous substances and for natural resource damages. Many of these proceedings seek to require the generators of hazardous wastes disposed of at a third-party-owned site, or the party responsible for a release of hazardous substances into the environment that impacted a site, to investigate and clean up the site or to pay for such activities, including for oversight by governmental authorities, the response costs associated with such oversight and any related damages to natural resources. Teva has been made a party to these proceedings, along with other potentially responsible parties, as an alleged generator of wastes that were disposed of or treated at third-party waste disposal sites, or as a result of an alleged release from one of Teva's facilities or former facilities that may have adversely impacted the environment. | |
In many of these cases, the government or private litigants allege that the responsible parties are jointly and severally liable for the investigation and cleanup costs. Although the liability among the responsible parties may be joint and several, these proceedings are frequently resolved so that the allocation of cleanup and other costs among the parties reflects the relative contributions of the parties to the site conditions and takes into account other pertinent factors. Teva's potential liability varies greatly at each of the sites in the proceedings; for some sites the costs of the investigation, cleanup and natural resource damages have not yet been determined, and for others Teva's allocable share of liability has not been determined. At other sites, Teva has been paying a share of the costs, the amounts of which have not been, and are not expected to be, material. Teva has taken an active role in identifying those costs, to the extent they are identifiable and estimable, which do not include reductions for potential recoveries of cleanup costs from insurers, indemnitors, former site owners or operators or other potentially responsible parties. In addition, enforcement proceedings relating to alleged federal and state regulatory violations at some of Teva's facilities have resulted, or may result, in the imposition of significant penalties (in amounts not expected to materially adversely affect Teva's results of operations) and the recovery of certain state costs and natural resource damages, and have required, or may require, that corrective measures and enhanced compliance measures be implemented. |
EQUITY
EQUITY | 0 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Equity | ' | |||||||||||||||||||
<>NOTE 15—EQUITY: | ||||||||||||||||||||
<>a. Share capital: | ||||||||||||||||||||
<>As of December 31, 2013, there were 947 million ordinary shares issued (December 31, 2012—944 million). Teva shares are traded on the Tel-Aviv Stock Exchange (“TASE”) and, in the form of American Depositary Shares, each of which represents one ordinary share, on the New York Stock Exchange in the United States. | ||||||||||||||||||||
In December 2011, Teva's board of directors authorized the Company to repurchase up to an aggregate of $3 billion of its ordinary shares and American Depositary Shares, of which, as of December 31, 2013, $1.33 billion remain available for repurchases. This repurchase authorization has no time limit. Repurchases may be commenced or suspended at any time or from time to time. | ||||||||||||||||||||
The following table summarizes the shares repurchased and the amount Teva spent on these repurchases: | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Amount spent on shares repurchased | $ | 497 | $ | 1,161 | $ | 899 | ||||||||||||||
Number of shares repurchased | 12.8 | 28.1 | 19.6 | |||||||||||||||||
b. Registered offerings: | ||||||||||||||||||||
<>In December 2011, the Company filed a shelf registration statement with the U.S. Securities and Exchange Commission. Under this registration statement, Teva may, from time to time, sell shares, debt securities and/or any other securities described in the registration statement in one or more offerings. | ||||||||||||||||||||
<>c. Stock-based compensation plans: | ||||||||||||||||||||
<>Stock-based compensation plans are comprised of employee stock option plans and restricted stock units (“RSUs”) and other equity-based awards to employees, officers and directors. The purpose of the plans is to enable the Company to attract and retain qualified personnel and to motivate such persons by providing them with equity participation in the Company. | ||||||||||||||||||||
On June 29, 2010, the Teva Long-Term Equity-Based Incentive Plan was approved by the shareholders, under which 70 million equivalent stock units, including both options exercisable into ordinary shares and RSUs, were approved for grant. As of December 31, 2013, 29 million equivalent stock units remained available for future awards. | ||||||||||||||||||||
In the past, Teva had various employee stock and incentive plans under which stock options and other share-based awards were granted. Stock options and other share-based awards granted under such prior plans continue in accordance with the terms of the respective plans. | ||||||||||||||||||||
<>The vesting period of the outstanding options and RSUs is generally 1 to 4 years from the date of grant. The rights of the ordinary shares obtained from the exercise of options or RSUs are identical to those of the other ordinary shares of the Company. The contractual term of these options is primarily for seven years in prior plans and ten years for options granted under the 2010 plan described above. | ||||||||||||||||||||
<>Status of options | ||||||||||||||||||||
<>A summary of the status of the options as of December 31, 2013, 2012 and 2011, and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercisable in respect thereof). | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Number (in thousands) | Weighted average exercise price | Number (in thousands) | Weighted average exercise price | Number (in thousands) | Weighted average exercise price | |||||||||||||||
$ | $ | $ | ||||||||||||||||||
Balance outstanding at beginning of year | 36,580 | 44.4 | 33,298 | 44.92 | 28,164 | 44.77 | ||||||||||||||
Changes during the year: | ||||||||||||||||||||
Granted | 1,701 | 38.37 | 7,231 | 40.5 | 9,550 | 42.56 | ||||||||||||||
Exercised | -2,797 | 32.17 | -704 | 33.36 | -2,295 | 30.21 | ||||||||||||||
Forfeited | -3,003 | 45.51 | -3,245 | 44.76 | -2,121 | 48.61 | ||||||||||||||
Balance outstanding at end of year | 32,481 | 45.05 | 36,580 | 44.4 | 33,298 | 44.92 | ||||||||||||||
Balance exercisable at end of year | 17,082 | 47.3 | 14,230 | 44.3 | 11,456 | 41.01 | ||||||||||||||
The weighted average fair value of options granted during the years was estimated by using the Black-Scholes option-pricing model: | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Weighted average fair value | $6.60 | $7.40 | $9.20 | |||||||||||||||||
The fair value of these options was estimated on the date of grant, based on the following weighted average assumptions: | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Dividend yield | 3.30% | 2.60% | 2.00% | |||||||||||||||||
Expected volatility | 23% | 24% | 27% | |||||||||||||||||
Risk-free interest rate | 2.10% | 1.30% | 1.30% | |||||||||||||||||
Expected life term | 9 years | 8 years | 6 years | |||||||||||||||||
The expected term was estimated based on the weighted average period the options granted are expected to be outstanding taking into consideration the current vesting of options and the historical exercise patterns of existing options. The expected volatility assumption used is based on a blend of the historical and implied volatility of the Company's stock. The risk-free interest rate used is based on the yield of U.S. Treasuries with a maturity closest to the expected term of the options granted. The dividend yield assumption reflects the expected dividend yield based on historical dividends and expected dividend growth. | ||||||||||||||||||||
The following tables summarize information at December 31, 2013 regarding the number of ordinary shares issuable upon (1) outstanding options and (2) vested options: | ||||||||||||||||||||
(1) Number of ordinary shares issuable upon exercise of outstanding options | ||||||||||||||||||||
Range of exercise prices | Balance at end of period (in thousands) | Weighted average exercise price | Weighted average remaining life | Aggregate intrinsic value (in thousands) | ||||||||||||||||
Number of shares | $ | Years | $ | |||||||||||||||||
$ - | - | $ - | - | - | - | - | ||||||||||||||
$ - | - | $ - | - | - | - | - | ||||||||||||||
$10.00 | - | $35.10 | 9 | 20.97 | 0.5 | 165 | ||||||||||||||
$35.11 | - | $40.10 | 6,195 | 38.7 | 9.01 | 8,549 | ||||||||||||||
$40.11 | - | $45.10 | 13,587 | 42.32 | 5.43 | - | ||||||||||||||
$45.11 | - | $50.10 | 5,634 | 48.31 | 6.45 | - | ||||||||||||||
$50.11 | - | $55.10 | 6,428 | 52.54 | 3.37 | - | ||||||||||||||
$55.11 | - | $65.00 | 628 | 60.92 | 3.15 | - | ||||||||||||||
Total | 32,481 | 45.05 | 5.84 | 8,714 | ||||||||||||||||
(2) Number of ordinary shares issuable upon exercise of vested options | ||||||||||||||||||||
Range of exercise prices | Balance at end of period (in thousands) | Weighted average exercise price | Weighted average remaining life | Aggregate intrinsic value (in thousands) | ||||||||||||||||
Number of shares | $ | Years | $ | |||||||||||||||||
$ - | - | $ - | - | - | - | - | ||||||||||||||
$ - | - | $ - | - | - | - | - | ||||||||||||||
$10.00 | - | $35.10 | 9 | 20.97 | 0.5 | 165 | ||||||||||||||
$35.11 | - | $40.10 | 1,233 | 38.85 | 8.73 | 1,517 | ||||||||||||||
$40.11 | - | $45.10 | 6,530 | 42.65 | 2.67 | - | ||||||||||||||
$45.11 | - | $50.10 | 3,074 | 48.47 | 5.76 | - | ||||||||||||||
$50.11 | - | $55.10 | 5,852 | 52.78 | 3.04 | - | ||||||||||||||
$55.11 | - | $65.00 | 384 | 61.04 | 3.15 | - | ||||||||||||||
Total | 17,082 | 47.3 | 3.8 | 1,682 | ||||||||||||||||
<>The aggregate intrinsic value in the above tables represents the total pre-tax intrinsic value, based on the Company's closing stock price of $40.08 on December 31, 2013, less the weighted average exercise price in each range. This represents the potential amount receivable by the option holders had all option holders exercised their options as of such date. The total number of in-the-money options exercisable as of December 31, 2013 was 1.2 million. | ||||||||||||||||||||
<>The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $19 million, $6 million and $35 million, respectively, based on the Company's average stock price of $38.99, $41.63 and $45.49 during the years then ended, respectively. | ||||||||||||||||||||
<>Status of non-vested RSUs | ||||||||||||||||||||
<>The fair value of RSUs is estimated based on the market value of the Company's stock on the date of award, less an estimate of dividends that will not accrue to RSU holders prior to vesting. | ||||||||||||||||||||
<>The following table summarizes information about the number of RSUs issued and outstanding: | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Number (in thousands) | Weighted average grant date fair value $ | Number (in thousands) | Weighted average grant date fair value$ | Number (in thousands) | Weighted average grant date fair value $ | |||||||||||||||
Balance outstanding at beginning of year | 3,744 | 41.04 | 3,093 | 43.23 | 2,290 | 45.78 | ||||||||||||||
Granted | 289 | 35.8 | 1,320 | 38 | 1,295 | 39.41 | ||||||||||||||
Vested | -1,222 | 41.04 | -519 | 45.65 | -389 | 44.43 | ||||||||||||||
Forfeited | -299 | 40.98 | -150 | 43.97 | -103 | 45.49 | ||||||||||||||
Balance outstanding at end of year | 2,512 | 40.48 | 3,744 | 41.04 | 3,093 | 43.23 | ||||||||||||||
<>The Company has expensed compensation costs, net of estimated forfeitures, based on the grant-date fair value. For the years ended December 31, 2013, 2012 and 2011, the Company recorded stock-based compensation costs as follows: | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Employee stock options | $ | 40 | $ | 58 | $ | 63 | ||||||||||||||
Restricted stock units (“RSUs”) | 24 | 24 | 28 | |||||||||||||||||
Total stock-based compensation expense | 64 | 82 | 91 | |||||||||||||||||
Tax effect on stock-based compensation expense | 14 | 13 | 13 | |||||||||||||||||
Net effect | $ | 50 | $ | 69 | $ | 78 | ||||||||||||||
<>The total unrecognized compensation cost before tax on employee stock options and RSUs amounted to $83 million and $64 million, respectively, at December 31, 2013, and is expected to be recognized over a weighted average period of 1.1 years for stock options and a weighted average period of 1.2 years for RSUs. | ||||||||||||||||||||
<>d. Dividends and accumulated other comprehensive income (loss): <><><<><><>Divid | ||||||||||||||||||||
Dividends are declared in New Israeli Shekels (“NIS”), and paid in NIS and USD. Dividends paid per share in the years ended December 31, 2013, 2012 and 2011 were $1.28, $1.03 and $0.89, respectively. Subsequent to December 31, 2013, the Company declared an additional dividend of 1.21 NIS per share in respect of the fourth quarter of 2013. | ||||||||||||||||||||
The components of accumulated other comprehensive loss attributable to Teva are presented in the table below: | ||||||||||||||||||||
<><><> | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Currency translation adjustment, net of tax | $ | 151 | $ | 175 | $ | -455 | ||||||||||||||
Unrealized loss from available-for-sale securities, net of tax | 5 | -7 | -72 | |||||||||||||||||
Unrealized loss from cash flow hedge | -197 | -93 | -30 | |||||||||||||||||
Defined benefit plans, net of tax | -50 | -92 | -32 | |||||||||||||||||
Accumulated other comprehensive loss attributable to Teva | $ | -91 | $ | -17 | $ | -589 | ||||||||||||||
The following table presents the changes in the components of accumulated other comprehensive loss for the year ended December 31, 2013: | ||||||||||||||||||||
Currency translation adjustment | Unrealized gain (loss) from available-for-sale securities | Unrealized (gain) loss from cash flow hedge | Defined benefit plan items | Total accumulated other comprehensive loss | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | $ | -46 | $ | 18 | $ | -111 | $ | 20 | $ | -119 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss before tax: | ||||||||||||||||||||
Currency translation adjustment, included in financial expenses - net | 17 | 17 | ||||||||||||||||||
Gains on marketable securities, included in financial expenses - net | -6 | -6 | ||||||||||||||||||
Loss on derivative financial instruments, included in net revenues | 7 | 7 | ||||||||||||||||||
Loss on defined benefit plans, included in various statement of income items ** | 24 | 24 | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss before tax | 17 | -6 | 7 | 24 | 42 | |||||||||||||||
Net other comprehensive income (loss) before tax | -29 | 12 | -104 | 44 | -77 | |||||||||||||||
Income tax related to items of other comprehensive income (loss) | 5 | * | * | -2 | 3 | |||||||||||||||
Net other comprehensive income (loss) after tax | $ | -24 | $ | 12 | $ | -104 | $ | 42 | $ | -74 | ||||||||||
* Represents an amount of less than $0.5 million. | ||||||||||||||||||||
** Affected mostly general and administrative expenses, as well as cost of sales, research and development expenses, and sales and marketing expenses. |
INCOME_TAXES
INCOME TAXES | 0 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes [Absract] | ' | ||||||||||
Income Taxes | ' | ||||||||||
NOTE 16—INCOME TAXES: | |||||||||||
a. | Income before income taxes is comprised of the following: | ||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
The Parent Company and its Israeli subsidiaries | $ | 1,303 | $ | 1,660 | $ | 2,051 | |||||
Non-Israeli subsidiaries | -53 | 159 | 905 | ||||||||
$ | 1,250 | $ | 1,819 | $ | 2,956 | ||||||
b. | Income taxes: | ||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
In Israel | $ | 197 | $ | 5 | $ | 71 | |||||
Outside Israel | -240 | -142 | 56 | ||||||||
$ | -43 | $ | -137 | $ | 127 | ||||||
Current | $ | 1,096 | $ | 564 | $ | 689 | |||||
Deferred | -1,139 | -701 | -562 | ||||||||
$ | -43 | $ | -137 | $ | 127 | ||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
Income before income taxes | $ | 1,250 | $ | 1,819 | $ | 2,956 | |||||
Statutory tax rate in Israel | 25% | 25% | 24% | ||||||||
Theoretical provision for income taxes | $ | 313 | $ | 455 | $ | 709 | |||||
Increase (decrease) in effective tax rate due to: | |||||||||||
The Parent Company and its Israeli subsidiaries - | |||||||||||
Mainly tax benefits arising from reduced tax rates under benefit programs | -535 | -520 | -501 | ||||||||
Amendment 69 payments and finalization of prior years' tax audits, net of decrease of related uncertain tax positions | 248 | - | - | ||||||||
Non-Israeli subsidiaries | -275 | -83 | -143 | ||||||||
Increase in other uncertain tax positions—net | 206 | 11 | 62 | ||||||||
Effective consolidated income taxes | $ | -43 | $ | -137 | $ | 127 | |||||
The effective tax rate is the result of a variety of factors, including the geographic mix and type of products sold during the year, different effective tax rates applicable to non-Israeli subsidiaries that have tax rates above Teva's average tax rates, the impact of impairment, restructuring and legal settlement charges and adjustments to valuation allowances on deferred tax assets on such subsidiaries, as well as the Company's election to adopt Amendment 69, see note 16f. Tax benefits resulting from mergers between subsidiaries and incentive programs to which Teva's subsidiaries are entitled further reduced the effective tax rate for 2013. The finalization of 2005-2007 tax audits and the tax payment under Amendment 69 of the Investment Law in 2013 have increased the tax charges in 2013 attributable to the Parent Company and its Israeli subsidiaries. | |||||||||||
c. | Deferred income taxes: | ||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
(U.S. $ in millions) | |||||||||||
Short-term deferred tax assets—net: | |||||||||||
Inventory related* | $ | 405 | $ | 359 | |||||||
Sales reserves and allowances | 321 | 300 | |||||||||
Provision for legal settlements | 235 | 128 | |||||||||
Carryforward losses and deductions* | 179 | 242 | |||||||||
Provisions for employee-related obligations | 81 | 79 | |||||||||
Other | 75 | 20 | |||||||||
1,296 | 1,128 | ||||||||||
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized | -249 | -5 | |||||||||
$ | 1,047 | $ | 1,123 | ||||||||
Long-term deferred tax assets (liabilities)—net: | |||||||||||
Intangible assets | $ | -1,412 | $ | -1,883 | |||||||
Carryforward losses and deductions** | 1,415 | 949 | |||||||||
Property, plant and equipment | -181 | -122 | |||||||||
Provisions for employee related obligations | 19 | 14 | |||||||||
Other | 60 | 24 | |||||||||
-99 | -1,018 | ||||||||||
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized | -542 | -721 | |||||||||
$ | -641 | $ | -1,739 | ||||||||
$ | 406 | $ | -616 | ||||||||
* | Reclassified amounts in 2012. | ||||||||||
** | This amount represents the tax effect of carry forward losses and deductions with the following expirations: 2015-2016 — $382 million; 2017-2023 — $246 million; 2024 and thereafter — $188 million. The remaining balance—$599 million—can be utilized with no expiration date. | ||||||||||
The deferred income taxes are reflected in the balance sheets among: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(U.S. $ in millions) | |||||||||||
Current assets—deferred income taxes | $ | 1,084 | $ | 1,142 | |||||||
Current liabilities—other current liabilities | -37 | -19 | |||||||||
Other non-current assets | 606 | 110 | |||||||||
Long-term liabilities—deferred income taxes | -1,247 | -1,849 | |||||||||
$ | 406 | $ | -616 | ||||||||
Deferred taxes have not been provided for tax-exempt profits earned by the Company from Approved Enterprises through December 31, 2013 (except to the extent released due to payments made in 2013 under Amendment 69 of the Investment Law, as described below), as the Company intends to permanently reinvest these profits and does not currently foresee a need to distribute dividends out of these earnings. For the same reason, deferred taxes have not been provided for distributions of income from the Company's foreign subsidiaries. See Note 16f. | |||||||||||
d. Uncertain tax positions: | |||||||||||
<>The following table summarizes the activity of Teva's unrecognized tax benefits: | |||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
Balance at the beginning of the year | $ | 903 | $ | 907 | $ | 795 | |||||
Decrease related to prior year tax positions, net | 29 | -10 | -45 | ||||||||
Increase related to current year tax positions | 176 | 151 | 131 | ||||||||
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations | -461 | -146 | -20 | ||||||||
Liabilities assumed in acquisitions | 0 | 0 | 52 | ||||||||
Other | 18 | 1 | -6 | ||||||||
Balance at the end of the year | $ | 665 | $ | 903 | $ | 907 | |||||
Uncertain tax positions, mainly of a long-term nature, included accrued potential penalties and interest of $75 million, $144 million and $115 million, at December 31, 2013, 2012 and 2011, respectively. The total amount of interest and penalties in the consolidated statements of income was a net release of $69 million for the year ended December 31, 2013 and a net increase of $29 million and $21 million for the years ended December 31, 2012 and 2011, respectively. Substantially all the above uncertain tax benefits, if recognized, would reduce Teva's annual effective tax rate. Teva does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities, the likelihood and timing of which is difficult to estimate. | |||||||||||
<>e. Tax assessments: | |||||||||||
<>We file income tax returns in various jurisdictions with varying statutes of limitations. The Parent Company and its subsidiaries in Israel have received final tax assessments through tax year 2007. | |||||||||||
In 2013, Teva settled the 2005-2007 income tax assessments with the Israeli tax authorities, paying $213 million. No further taxes are due in relation to these years. Certain guidelines which were set pursuant to the agreement reached in relation to the 2005-2007 assessment will also be implemented in the audit of tax years 2008-2011, and are reflected in the provisions. | |||||||||||
Following the audit of Teva's 2008 Israeli corporate tax returns, the Israeli tax authorities issued a tax assessment, challenging the Company's positions on several issues. Teva has protested the assessment. The Company believes it has adequately provided for these items and that any adverse results would have an immaterial impact on Teva's financial statements. | |||||||||||
The Company's subsidiaries in North America and Europe have received final tax assessments mainly through tax year 2005. | |||||||||||
<>f. Basis of taxation: | |||||||||||
<>The Company and its subsidiaries are subject to tax in many jurisdictions, and a certain degree of estimation is required in recording the assets and liabilities related to income taxes. The Company believes that its accruals for tax liabilities are adequate for all open years. The Company considers various factors in making these assessments, including past history, recent interpretations of tax law, and the specifics of each matter. Because tax regulations are subject to interpretation and tax litigation is inherently uncertain, these assessments can involve a series of complex judgments regarding future events. | |||||||||||
<>Most of the Parent Company's industrial projects and those of several of its Israeli subsidiaries have been granted “Approved Enterprise” status under the Israeli Law for the Encouragement of Capital Investments ("Investment Law"). For the vast majority of such Approved Enterprises, the companies elected to apply for alternative tax benefits – i.e., the waiver of government grants in return for tax exemptions on undistributed income. Upon distribution of such exempt income, the distributing company will be subject to corporate tax at the rate ordinarily applicable to the Approved Enterprise's income. Such tax exemption on undistributed income applies for a limited period of between two to ten years, depending upon the location of the enterprise. During the remainder of the benefits period (generally until the expiration of ten years), a corporate tax rate not exceeding 25% is applied. One Approved Enterprise of an Israeli subsidiary enjoyed special benefits under the "Strategic Investment Track"; income accrued under this track during the benefits period was exempt from tax, and dividends distributed from such income are also exempt from Israeli tax. | |||||||||||
Teva is a foreign investors company, or FIC, as defined by the Israeli Investment Law. Under the incentives regime that applied to Teva until 2013, FICs were entitled to further reductions in the tax rate normally applicable to Approved Enterprises. Depending on the foreign ownership in each tax year, the tax rate ranged between 10% (when foreign ownership exceeded 90%) to 25% (when the foreign ownership was below 49%). | |||||||||||
Pursuant to Amendment 69 to the Israeli Investment Law ("Amendment 69"), a company that elected by November 11, 2013 to pay a reduced corporate tax rate as set forth in that amendment (rather than the regular corporate tax rate applicable to Approved Enterprise income) with respect to undistributed exempt income accumulated by the company until December 31, 2011 is entitled to distribute a dividend from such income without being required to pay additional corporate tax with respect to such dividend. A company that has so elected must make certain qualified investments in Israel over the five-year period commencing in 2013. A company that has elected to apply the amendment cannot withdraw from its election. | |||||||||||
During 2013, Teva applied the provisions of Amendment 69 to certain exempt profits accrued prior to 2012 by Teva and one of its Israeli subsidiaries. Consequently, the Company paid $577 million corporate tax on exempt income of billion. Part of this income was distributed as dividends during 2013, while the remainder is available to be distributed as dividends in future years with no additional corporate tax liability. As a result, Teva is required to invest $286 million in its industrial enterprises in Israel over a five year period. Such investment may be in the form of the acquisition of industrial assets (excluding real estate assets), investment in R&D in Israel, or payroll payments to new employees to be hired by the enterprise. | |||||||||||
The amount of tax-exempt profits earned by the Company from Approved Enterprises through December 31, 2013 that were not released under Amendment 69 is approximately $9.7 billion, and the tax that would have been payable had the Company distributed dividends out of that income is approximately $1.5 billion. However, deferred taxes have not been provided for such tax-exempt income, as the Company intends to permanently reinvest these profits and does not currently foresee a need to distribute dividends out of these earnings (see note 1p). | |||||||||||
Likewise, the Company intends to reinvest, rather than distribute, dividends from the income of its foreign subsidiaries. An assessment of the tax that would have been payable had the Company's foreign subsidiaries distributed their income to the Company is not practicable because of the multiple levels of corporate ownership and multiple tax jurisdictions involved in each hypothetical dividend distribution. | |||||||||||
Income not eligible for Approved Enterprise benefits is taxed at a regular rate, which was 25% in 2013 (increased to 26.5% in 2014 and onwards). | |||||||||||
Under an amendment 68 to the Israeli Investment Law ("Amendment 68"), upon an irrevocable election made by a company, a uniform corporate tax rate will apply to all qualifying industrial income of such company ("Industrial Company"), as opposed to the previous law's incentives, which were limited to income from Approved Enterprises during their benefits period. Under the law, when the election is made, the uniform tax rate (for 2014 and on) will be 9% in areas in Israel designated as Development Zone A and 16% elsewhere in Israel. The profits of these Industrial Companies will be freely distributable as dividends, subject to a withholding tax of 20% or lower, under an applicable tax treaty. “Special Industrial Companies” that meet more stringent criteria (significant investment, R&D or employment thresholds) will enjoy further reduced tax rates of 5% in Zone A and 8% elsewhere. In order to be classified as a "Special Industrial Company", the approval of three governmental authorities in Israel is required. | |||||||||||
Teva intends to apply the new incentives regime under Amendment 68 to its qualifying Israeli operations starting in 2014, and believes it will qualify as an "Industrial Company" under the new law. | |||||||||||
The Parent Company and its Israeli subsidiaries elected to compute their taxable income in accordance with Income Tax Regulations (Rules for Accounting for Foreign Investors Companies and Certain Partnerships and Setting their Taxable Income), 1986. Accordingly, the taxable income or loss is calculated in U.S. dollars. Applying these regulations reduces the effect of foreign exchange rate (of NIS against the U.S. dollar) on the Company's Israeli taxable income. | |||||||||||
<>Non-Israeli subsidiaries are taxed according to the tax laws in their respective country of residence. Certain manufacturing subsidiaries operate in several jurisdictions outside Israel, some of which benefit from tax incentives such as reduced tax rates, investment tax credits and accelerated deductions. | |||||||||||
FINANCIAL_INSTRUMENTS_AND_RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 0 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Financial Instruments And Risk Management Abstract] | ' | ||||||||||||
Financial Instruments and Risk Management | ' | ||||||||||||
<>NOTE 17 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES: | |||||||||||||
<>< Foreign exchange risk management: | |||||||||||||
The Group enters into forward exchange contracts in non-functional currencies and purchases and writes non-functional currency options in order to hedge the currency exposure on identifiable balance sheet items. In addition, the Group takes steps to reduce exposure by using “natural” hedging. The Company also acts to offset risks in opposite directions among the companies in the Group. The currency hedged items are usually denominated in the following main currencies: the euro (EUR), Hungarian forint (HUF), British pound (GBP), new Israeli shekel (NIS), Canadian dollar (CAD), Croatian kuna (HRK), Russian ruble (RUB), Czech koruna (CZK) and Swiss franc (CHF). The writing of options is part of a comprehensive currency hedging strategy. | |||||||||||||
<>The counterparties to the derivatives are comprised mainly of major banks and, in light of the current financial environment, the Company is monitoring the associated inherent credit risks. The Company does not enter into derivative transactions for trading purposes. | |||||||||||||
<><> | |||||||||||||
b. Derivative instrument disclosure: | |||||||||||||
The following table summarizes the notional amounts for hedged items, for transactions designated as hedge accounting: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(U.S. $ in millions) | |||||||||||||
Interest rate swap - cash flow hedge | $ | - | $ | 1,100 | |||||||||
Interest rate swap - fair value hedge | 2,500 | 1,550 | |||||||||||
Cross currency swap - cash flow hedge | 1,875 | 1,875 | |||||||||||
Forecasted transactions - cash flow hedge | 300 | 200 | |||||||||||
The following table summarizes the classification and fair values of derivative instruments: | |||||||||||||
Fair value | |||||||||||||
December 31, | |||||||||||||
Reported under | 2013 | 2012 | |||||||||||
(U.S. $ in millions) | |||||||||||||
Asset derivatives - interest rate swap - fair value hedge designated as hedging instruments | Other current assets | $ | 2 | $ | 4 | ||||||||
Liability derivatives - interest rate swap - cash flow hedge designated as hedging instruments | Other current liabilities | - | -4 | ||||||||||
Liability derivatives - interest rate swap - fair value hedge designated as hedging instruments | Senior notes and loans | -233 | -14 | ||||||||||
Liability derivatives - cross currency swap - cash flow hedge designated as hedging instruments | Senior notes and loans | -203 | -91 | ||||||||||
Liability derivatives, comprising mainly option and forward contracts, not designated as hedging instruments | Other current liabilities | -17 | -29 | ||||||||||
Asset derivatives, comprising mainly option and forward contracts, not designated as hedging instruments | Other current assets | 28 | 20 | ||||||||||
Derivatives on foreign exchange contracts hedge Teva's balance sheet items from currency exposure but are not designated as hedging instruments for accounting purposes. With respect to such derivatives, gains of $76 million and losses of $45 million were recognized under financial expenses - net for the years ended December 31, 2013 and 2012, respectively. Such losses offset the revaluation of the balance sheet items also booked under financial expenses—net. | |||||||||||||
With respect to the interest rate and cross-currency swap agreements, gains of $35 million and $18 million were recognized under financial expenses - net for the years ended December 31, 2013 and 2012, respectively. Such gains mainly reflect the differences between the fixed interest rate and the floating interest rate. | |||||||||||||
c. Securitization: | |||||||||||||
In April 2011, Teva established an accounts receivable securitization program with BNP Paribas Bank ("BNP Paribas"). Under the program, Teva sells, on an ongoing basis, certain accounts receivable and the right to the collections on those accounts receivable to BNP Paribas. | |||||||||||||
Once sold to BNP Paribas, the accounts receivable and rights to collection are separate and distinct from Teva's own assets. These assets are unavailable to Teva's creditors should Teva become insolvent. BNP Paribas has all the rights ensuing from the sale of the securitized accounts receivable, including the right to pledge or exchange the assets it received. Consequently, the accounts receivable in Teva's consolidated balance sheets is presented net of the securitized receivables. | |||||||||||||
As of December 31, 2013 and 2012, the balance of Teva's securitized assets sold amounted to $590 million and $535 million, respectively. Gains and losses related to these transactions were immaterial for the three years ended December 31, 2013. | |||||||||||||
The following table summarizes the net balance outstanding due to outstanding securitization programs: | |||||||||||||
As of and for the year ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(U.S. $ in millions) | |||||||||||||
Sold receivables at the beginning of the year | $ | 535 | $ | 435 | |||||||||
Proceeds from sale of receivables | 3,662 | 3,491 | |||||||||||
Cash collections (remitted to the owner of the receivables) | -3,635 | -3,393 | |||||||||||
Effect of currency exchange rate changes | 28 | 2 | |||||||||||
Sold receivables at the end of the year | $ | 590 | $ | 535 |
FINANCIAL_EXPENSES_NET
FINANCIAL EXPENSES NET | 0 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Financial Expenses Net [Abstract] | ' | ||||||||||
Financial Expenses - Net | ' | ||||||||||
NOTE 18—FINANCIAL EXPENSES- NET: | |||||||||||
Year ended December, 31 | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
Interest expenses and other bank charges | $ | 314 | $ | 355 | $ | 234 | |||||
Foreign exchange losses - net | 8 | 25 | 16 | ||||||||
Income from investments | -32 | -26 | -44 | ||||||||
Gain from interest rate swap transaction | - | - | -53 | ||||||||
Expenses mainly from senior notes prepayment | 109 | 32 | - | ||||||||
Total finance expense — net | $ | 399 | $ | 386 | $ | 153 | |||||
LEGAL_SETTLEMENTS_IMPAIRMENT_R
LEGAL SETTLEMENTS, IMPAIRMENT, RESTRUCTURING AND ACQUISITION COSTS | 0 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Legal Settlements Impairment Restructuring And Acquisition Costs [Abstract] | ' | ||||||||||
Legal Settlements, Impairment, Restructuring and Acquisition Costs | ' | ||||||||||
NOTE 19—LEGAL SETTLEMENTS AND LOSS CONTINGENCIES: | |||||||||||
Legal settlements and loss contingencies for 2013 amounted to $1.5 billion, compared to $715 million in 2012. The 2013 expenses are composed mainly of additional charges of $930 million relating to the settlement of the pantoprazole patent litigation and $495 million relating to the modafinil antitrust litigation. |
RESTRUCTURING_AND_IMPAIRMENTS
RESTRUCTURING AND IMPAIRMENTS | 0 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Restructuring And Impairment [Abstract] | ' | ||||||||||
Restructuring And Impairment | ' | ||||||||||
NOTE 20—IMPAIRMENTS, RESTRUCTURING AND OTHERS: | |||||||||||
Impairments, restructuring and others consisted of the following: | |||||||||||
Year ended December 31 , | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
Impairment of long-lived assets (see also notes 6 and 8) | $ | 524 | $ | 1,071 | $ | 201 | |||||
Restructuring | 201 | 221 | 192 | ||||||||
Contingent consideration | 36 | -40 | - | ||||||||
Acquisition costs and other expenses | 27 | 7 | 37 | ||||||||
Total | $ | 788 | $ | 1,259 | $ | 430 | |||||
Impairments | |||||||||||
In determining the estimated fair value of the long-lived assets, Teva utilized a discounted cash flow model. The key assumptions within the model related to forecasting future revenue and operating income, an appropriate weighted average cost of capital, and an appropriate terminal value based on the nature of the long-lived asset. The Company's updated forecasts of net cash flows for the impaired assets reflect, among other things, the following: (i) for research and development in-process assets, the impact of changes to the development programs, the projected development and regulatory timeframes and the risks associated with these assets; and (ii) for product rights, an increased competitive environment. | |||||||||||
Charges for impairments, restructuring and others in 2013 amounted to $788 million, compared to $1.3 billion for 2012. | |||||||||||
Impairment of long-lived assets in 2013 amounted to $524 million, comprised of: | |||||||||||
1. Identifiable intangible assets - $393 million: | |||||||||||
a. Product rights impairment of $227 million are comprised mainly of a $112 million impairment due to current market conditions and supply chain challenges in Japan, product rights impairment of $41 million of multiple products in Europe, and a $23 million impairment of product rights for Cenestin® related to API constraints. Impairments of product rights for the year ended December 31, 2012 were $233 million. | |||||||||||
b. In-process R&D impairments of $166 million are comprised mainly of a $99 million impairment of armodafinil (Nuvigil®) for the treatment of bi-polar disorder following the negative results of the third pivotal clinical trial and a $54 million impairment of Zoely® following negative Phase III trial results. Impairment of in-process R&D for the year ended December 31, 2012 amounted to $625 million. | |||||||||||
2. Non-current investments of $70 million mainly comprised of Mediwound for $25 million and Andromeda for $15 million. Impairments of non-current investments for the year ended December 31, 2012 amounted to $23 million. | |||||||||||
3. Property, plant and equipment - $61 million, based on management decisions regarding their expected use, which triggered a reassessment of fair value. In 2012, property, plant and equipment impairment was $190 million. | |||||||||||
Restructuring | |||||||||||
For the year ended December 31, 2013, Teva recorded $201 million of restructuring expenses, compared to $221 million for the year ended December 31, 2012. | |||||||||||
In October 2013, management announced the acceleration of its company-wide cost-savings plan, which will include several initiatives including a reduction in the number of employees. Most costs are likely to be incurred throughout 2014 as the details of the plan are finalized and accounting criteria for expense recognition are met. | |||||||||||
Contingent consideration | |||||||||||
For the year ended December 31, 2013, Teva recorded a contingent consideration expense of $36 million mainly due to changes in evaluation factors on in-process R&D purchased in the Cephalon acquisition, compared to a contingent consideration benefit of $40 million recorded mainly as a result of impairing long-lived assets during 2012, which decreased associated milestone payment liabilities, previously recorded in connection with the Cephalon acquisition. |
SEGMENTS
SEGMENTS | 0 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||
Segment Reporting Disclosure | ' | |||||||||||||||||
<>NOTE 21 – SEGMENTS: <><>< | ||||||||||||||||||
Financial reports to Teva's chief operating decision maker ("CODM") evolve over time as Teva's business develops, as well as following major acquisitions. Since 2009, Teva had reported under a notion of a “One Teva.” During 2013, Teva completed a comprehensive review of its strategy, organizational and business structure and implemented changes to support the new strategy. | ||||||||||||||||||
Following the recent changes, Teva determined that its business includes two reportable segments: generic and specialty medicines. The generics segment develops, manufactures, sells and distributes generic or branded generic medicines as well as active pharmaceutical ingredients ("API"). The specialty segment engages in the development, manufacture, sale and distribution of branded specialty medicines such as those for central nervous system, oncology and respiratory indications, as well as those marketed in the women's health and other specialty businesses. | ||||||||||||||||||
Teva's other activities include the over the counter ("OTC") medicines business, distribution activity mainly in Israel and Hungary, medical devices and until January 2013, animal health. The OTC activity is primarily conducted through a joint venture with The Procter & Gamble Company, which combines Teva's production capabilities and market reach with Procter & Gamble's marketing expertise and expansive global platform. | ||||||||||||||||||
Teva's chief executive officer, who is the CODM, reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the two identified reportable segments, namely generic and specialty medicines, and revenues by geographical markets. | ||||||||||||||||||
The accounting policies of the individual segments are the same as those described in the summary of significant accounting policies in note 1 to the consolidated financial statements. | ||||||||||||||||||
Segment profitability is comprised of gross profit for the segment, less S&M and R&D expenses related to the segment. Segment profitability does not include G&A expenses, amortization and non-recurring items. | ||||||||||||||||||
Teva manages its assets on a total company basis, not by segments, as many of its assets are shared or commingled. Teva's CODM does not regularly review asset information by operating segment, and therefore Teva does not report asset information by operating segment. | ||||||||||||||||||
In 2014, Teva's new chief executive officer is anticipated to review the Company's strategy and organizational structure. Any changes in strategy may lead to a reevaluation of Teva's current segments and goodwill assignment. | ||||||||||||||||||
a. Segment information: | ||||||||||||||||||
Generics | Specialty | |||||||||||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
(U.S.$ in millions) | (U.S.$ in millions) | |||||||||||||||||
Revenues | $ | 9,906 | $ | 10,385 | $ | 10,196 | $ | 8,402 | $ | 8,150 | $ | 6,493 | ||||||
Gross profit | 4,095 | 4,518 | 4,605 | 7,326 | 7,173 | 5,622 | ||||||||||||
R&D expenses | 494 | 485 | 459 | 909 | 793 | 616 | ||||||||||||
S&M expenses | 1,945 | 1,971 | 2,087 | 1,850 | 1,686 | 1,099 | ||||||||||||
Segment profitability | $ | 1,656 | $ | 2,062 | $ | 2,059 | $ | 4,567 | $ | 4,694 | $ | 3,907 | ||||||
Year ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(U.S.$ in millions) | ||||||||||||||||||
Generic medicines profitability | $ | 1,656 | $ | 2,062 | $ | 2,059 | ||||||||||||
Specialty medicines profitability | 4,567 | 4,694 | 3,907 | |||||||||||||||
Total segment profitability | 6,223 | 6,756 | 5,966 | |||||||||||||||
Profitability of other activities | 214 | 197 | 219 | |||||||||||||||
Total profitability | 6,437 | 6,953 | 6,185 | |||||||||||||||
Amounts not allocated to segments: | ||||||||||||||||||
Amortization | 1,180 | 1,272 | 707 | |||||||||||||||
General and administrative expenses | 1,239 | 1,238 | 932 | |||||||||||||||
Legal settlements and loss contingencies | 1,524 | 715 | 471 | |||||||||||||||
Impairments, restructuring and others | 788 | 1,259 | 430 | |||||||||||||||
Other unallocated amounts | 57 | 264 | 536 | |||||||||||||||
Consolidated operating income | 1,649 | 2,205 | 3,109 | |||||||||||||||
Financial expenses - net | 399 | 386 | 153 | |||||||||||||||
Consolidated income before income taxes | $ | 1,250 | $ | 1,819 | $ | 2,956 | ||||||||||||
b. | Segment revenues by geographic area: | |||||||||||||||||
Year ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(U.S.$ in millions) | ||||||||||||||||||
Generic Medicines | ||||||||||||||||||
United States | $ | 4,181 | $ | 4,381 | $ | 3,957 | ||||||||||||
Europe* | 3,485 | 3,482 | 3,929 | |||||||||||||||
Rest of the World | 2,240 | 2,522 | 2,310 | |||||||||||||||
Total Generic Medicines | 9,906 | 10,385 | 10,196 | |||||||||||||||
Specialty Medicines | ||||||||||||||||||
United States | 6,026 | 5,857 | 4,804 | |||||||||||||||
Europe* | 1,706 | 1,575 | 1,108 | |||||||||||||||
Rest of the World | 670 | 718 | 581 | |||||||||||||||
Total Specialty | 8,402 | 8,150 | 6,493 | |||||||||||||||
Other Revenues | ||||||||||||||||||
United States | 254 | 200 | 39 | |||||||||||||||
Europe* | 797 | 741 | 760 | |||||||||||||||
Rest of the World | 955 | 841 | 824 | |||||||||||||||
Total Other Revenues | 2,006 | 1,782 | 1,623 | |||||||||||||||
Total Revenues | $ | 20,314 | $ | 20,317 | $ | 18,312 | ||||||||||||
* | All members of the European Union, Switzerland, Norway, Albania and the countries of former Yugoslavia. | |||||||||||||||||
c. Net revenues from specialty medicines were as follows: | ||||||||||||||||||
Year ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||
CNS | $ | 5,505 | $ | 5,464 | $ | 4,412 | ||||||||||||
Copaxone® | 4,328 | 3,996 | 3,570 | |||||||||||||||
Azilect® | 371 | 330 | 290 | |||||||||||||||
Nuvigil® | 320 | 347 | 86 | |||||||||||||||
Provigil® | 91 | 417 | 350 | |||||||||||||||
Oncology | 982 | 860 | 268 | |||||||||||||||
Treanda® | 709 | 608 | 131 | |||||||||||||||
Respiratory | 905 | 856 | 878 | |||||||||||||||
ProAir® | 429 | 406 | 436 | |||||||||||||||
Qvar® | 328 | 297 | 305 | |||||||||||||||
Women's health | 463 | 448 | 438 | |||||||||||||||
Other Specialty | 547 | 522 | 497 | |||||||||||||||
Total Specialty Medicines | $ | 8,402 | $ | 8,150 | $ | 6,493 | ||||||||||||
A significant portion of our revenues, and a higher proportion of our profits, come from the manufacture and sale of patent-protected pharmaceuticals. Many of our specialty medicines are covered by several patents that expire at different times. Nevertheless, once patent protection has expired, or has been lost prior to the expiration date as a result of a legal challenge, we no longer have patent exclusivity on these products, and subject to regulatory approval, generic pharmaceutical manufacturers are able to produce similar (or purportedly similar) products and sell them for a lower price. The commencement of generic competition, even in the form of non-equivalent products, can result in a substantial decrease in revenues for a particular specialty medicine in a very short time. Any such expiration or loss of intellectual property rights could therefore significantly adversely affect our results of operations and financial condition. | ||||||||||||||||||
In particular, as a result of a successful patent challenge in the United States, we are facing the loss of U.S. patent exclusivity in May 2014 for Copaxone®, our leading specialty medicine. As a result, we may face generic competition in the United States for the 20mg version as early as May 2014. We are in discussions with the FDA regarding clinical trial requirements for any proposed generic version of Copaxone®, and we are not aware of the imminent approval of such a product. Nonetheless, the introduction of any generic competition (even a purported generic) for Copaxone® would likely have a material adverse effect on our financial results and cash flow. Moreover, our business strategy for Copaxone® relies heavily on the successful introduction of a three-times-a-week product and the migration of a substantial percentage of current daily Copaxone® patients to this new version. The failure to achieve our objectives for the new version would likely have a material adverse effect on our financial results and cash flow. | ||||||||||||||||||
In 2013, revenues from Copaxone® were approximately $3.2 billion in the U.S. (approximately 30% of our total 2013 U.S. revenues) and approximately $1.1 billion in markets outside the U.S. (approximately 11% of our total 2013 non-U.S. revenues). | ||||||||||||||||||
Our multiple sclerosis franchise includes our Copaxone® products and laquinimod (a developmental compound for the treatment of MS). The profitability of our multiple sclerosis franchise is comprised of Copaxone® revenues and cost of goods sold as well as S&M and R&D expenses related to our MS franchise. It does not include G&A expenses, amortization and non-recurring items. Our MS franchise profitability was $3.3 billion $3.0 billion and $2.8 billion in 2013, 2012 and 2011, respectively. | ||||||||||||||||||
<>Supplemental data - major customers: | ||||||||||||||||||
The percentages of total consolidated revenues for the years ended December 31, 2013, 2012 and 2011 to one customer were 17%, 16% and 14%, respectively. The percentage of total consolidated revenues for another customer accounted for 13% for the year ended December 31, 2013. Most of Teva's revenues from these customers were made in the United States. The balance due from the Company's largest customer accounted for 23% of the gross trade accounts receivable at December 31, 2013. Sales reserves and allowances on these balances are recorded in current liabilities (refer to note 1l). | ||||||||||||||||||
e. | Property, plant and equipment—by geographical location were as follows: | |||||||||||||||||
December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||
Israel | $ | 1,834 | $ | 1,649 | $ | 1,459 | ||||||||||||
United States | 852 | 896 | 1,053 | |||||||||||||||
Hungary | 526 | 498 | 388 | |||||||||||||||
Japan | 492 | 644 | 765 | |||||||||||||||
Croatia | 479 | 415 | 311 | |||||||||||||||
Germany | 403 | 367 | 317 | |||||||||||||||
Other | 2,049 | 1,846 | 1,654 | |||||||||||||||
Total property, plant and equipment | $ | 6,635 | $ | 6,315 | $ | 5,947 | ||||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 0 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Earnings Per Share | ' | |||||||||
NOTE 22—EARNINGS PER SHARE: | ||||||||||
The net income attributable to Teva and the weighted average number of shares used in computation of basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011 are as follows: | ||||||||||
2013 | 2012 | 2011 | ||||||||
(U.S. $ in millions) | ||||||||||
Net income attributable to Teva | $ | 1,269 | $ | 1,963 | $ | 2,759 | ||||
Net income used for the computation of diluted earnings per share | $ | 1,269 | $ | 1,963 | $ | 2,759 | ||||
Weighted average number of shares used in the computation of basic earnings per share | 849 | 872 | 890 | |||||||
Add: | ||||||||||
Additional shares from the assumed exercise of employee stock options and unvested RSUs | 1 | 1 | 2 | |||||||
Weighted average number of additional shares issued upon the assumed conversion of convertible senior debentures | * | * | 1 | |||||||
Weighted average number of shares used in the computation of diluted earnings per share | 850 | 873 | 893 | |||||||
* Represents an amount of less than 0.5 million. | ||||||||||
In computing dilutive earnings per share for the years ended December 31, 2013, 2012 and 2011, no account was taken of the potential dilution of the assumed exercise of employee stock options, amounting to 7 million, 6 million and 4 million weighted average shares, respectively, since they had an anti-dilutive effect on earnings per share. | ||||||||||
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 0 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule Of Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||
Schedule of Valuation and Qualifying Accounts | ' | ||||||||||||||||
TEVA PHARMACEUTICAL INDUSTRIES LIMITED | |||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
Three Years Ended December 31, 2013 | |||||||||||||||||
(U.S. $ in millions) | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Balance at beginning of period | Charged to costs and expenses | Charged to other accounts | Deductions | Balance at end of period | |||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||
Year ended December 31, 2013 | $ | 145 | $ | 44 | $ | 3 | $ | -5 | $ | 187 | |||||||
Year ended December 31, 2012 | $ | 116 | $ | 32 | $ | 5 | $ | -8 | $ | 145 | |||||||
Year ended December 31, 2011 | $ | 126 | $ | 20 | $ | -6 | $ | -24 | $ | 116 | |||||||
Allowance in respect of carryforward tax losses: | |||||||||||||||||
Year ended December 31, 2013 | $ | 726 | $ | 182 | $ | 0 | $ | -117 | $ | 791 | |||||||
Year ended December 31, 2012 | $ | 452 | $ | 384 | $ | 2 | $ | -112 | $ | 726 | |||||||
Year ended December 31, 2011 | $ | 211 | $ | 124 | $ | 198 | $ | -81 | $ | 452 |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 0 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies [Abstract] | ' |
General | ' |
a. General: | |
Operations | |
Teva Pharmaceutical Industries Limited (the “Parent Company”), headquartered in Israel, together with its subsidiaries and associated companies (the “Company”, “Teva” or the “Group”), is engaged in the development, manufacturing, marketing and distribution of generic, specialty, and other pharmaceutical products. The majority of the Group's revenues are in the United States and Europe. The Group's main manufacturing facilities are located in Israel, Hungary, United States, Germany, Canada, Japan, Ireland, the United Kingdom, the Czech Republic, Croatia and Poland. | |
Accounting principles | |
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”). | |
Functional currency | |
A major part of the Group's operations is carried out by the Company and its subsidiaries in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”). | |
The functional currency of certain subsidiaries and associated companies is their local currency. The financial statements of those companies are included in the consolidated financial statements, translated into U.S. dollars. Assets and liabilities are translated at year-end exchange rates, while revenues and expenses are translated at monthly average exchange rates during the year. Differences resulting from translation are presented as other comprehensive income in the consolidated statements of comprehensive income. | |
The financial statements of subsidiaries in a highly inflationary economy are remeasured as if the functional currency was the U.S. dollar, Teva's reporting currency, using a translation rate determined by the country's official rate. A highly inflationary economy is one that has cumulative inflation of approximately 100 percent or more over a 3-year period. | |
Use of estimates in the preparation of financial statements | |
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reported years. Actual results could differ from those estimates. | |
As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to uncertain tax positions, valuation allowances, intangible assets, purchase price allocation on acquisitions, contingencies, restructuring, goodwill and sales and reserves allowances. | |
Principles of consolidation | ' |
b. Principles of consolidation: | |
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries and Variable Interest Entities ("VIEs") for which the Company is considered the primary beneficiary. For VIEs, the Company performs an analysis to determine whether the variable interests give a controlling financial interest in a VIE; the Company periodically reassesses whether it controls its VIEs. | |
Intercompany transactions and balances are eliminated in consolidation; profits from intercompany sales, not yet realized outside the Group, are also eliminated. | |
Investee companies | ' |
c. Investee companies: | |
Investments in entities in which the Company has a significant influence are accounted for using the equity method and included within "other non-current assets." Under the equity method, the Company generally recognizes its proportionate share of comprehensive income or loss of the entity. Other non-marketable equity investments are carried at cost. The Company also reviews these investments for impairment whenever events indicate the carrying amount may not be recoverable. | |
Cash and cash equivalents | ' |
d. Cash and cash equivalents: | |
All highly liquid investments, which include short-term bank deposits and money market instruments, that are not restricted as to withdrawal or use, and short-term debentures, the period to maturity of which did not exceed three months at the time of investment, are considered to be cash equivalents. | |
Inventories Policy | ' |
e. Inventories: | |
Inventories are valued at the lower of cost or market. Cost of raw and packaging materials and purchased products is determined mainly on a “moving average” basis. Cost of finished products and products in process is calculated assuming normal manufacturing capacity of the production facilities and determined as follows: the raw and packaging materials component—mainly on a “moving average” basis; the capitalized production costs component—mainly on an average basis over the production period. | |
Inventories acquired in a business combination are stepped-up to their estimated fair value and amortized to cost of sales as that inventory is sold. | |
Marketable securities | ' |
f. Investment in securities: | |
Investment in securities consists mainly of debt and equity securities classified as available-for-sale and recorded at fair value. The fair value of quoted securities is based on current market value. When debt securities do not have an active market, fair value is determined using a valuation model. This model is based on reference to other instruments with similar characteristics, or a discounted cash flow analysis, or other pricing models making use of market inputs and relying as little as possible on entity-specific inputs. | |
Unrealized gains of available for sale securities, net of taxes, are reflected in other comprehensive income. Unrealized losses considered to be temporary are reflected in other comprehensive income; unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. Realized gains and losses for both debt and equity securities are included in financial expense, net. | |
The Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost, and for equity securities, the Company's ability and intent to hold the investment for the length of time necessary to allow for the recovery of the market value. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment recognized in earnings, recorded in financial expense, net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in other comprehensive income. | |
Property, plant and equipment | ' |
Property, plant and equipment | |
Property, plant and equipment are stated at cost, after deduction of the related investment grants, and depreciated using the straight-line method over the estimated useful life of the assets: buildings, mainly 40 years; machinery and equipment, between 15 to 20 years; and other assets, between 5 to 10 years. | |
For property, plant and equipment, whenever impairment indicators are identified, Teva reconsiders the asset's estimated life, calculates the undiscounted value of the asset's cash flows and compares such value against the asset's carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value. | |
Goodwill and indefinite life intangible assets | ' |
g. Long-lived assets: | |
Teva's long-lived, non-current assets are comprised mainly of goodwill, identifiable intangible assets and property, plant and equipment. Teva reviews its long-lived assets and performs detailed testing whenever potential impairment indicators are present. In addition, the Company performs impairment testing at the end of each year for goodwill and identifiable indefinite life intangible assets. | |
Goodwill | |
Goodwill reflects the excess of the consideration paid or transferred plus the fair value of contingent consideration and any non-controlling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed according to the following principles: | |
An initial qualitative assessment of the likelihood of impairment may be performed. If this step indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed. Teva waived this step during this year's annual testing and performed the first step of the test. | |
In step one of the impairment test, Teva compares the fair value of the reporting units to the carrying value of the reporting units. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. If the fair value is less than the carrying value of the reporting unit, Teva must perform the second step of the impairment test to measure the amount of the impairment. | |
In the second step, the reporting unit's fair value is allocated to all the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that simulates the business combination principles to derive an implied goodwill value. If the implied fair value of the reporting unit's goodwill is less than its carrying value, the difference is recorded as an impairment. | |
Definite life intangible assets | ' |
Identifiable intangible assets | |
Identifiable intangible assets are comprised of definite life intangible assets and indefinite life intangible assets. | |
Definite life intangible assets consist mainly of acquired product rights and other rights relating to products for which marketing approval was received from the U.S. Food and Drug Administration (“FDA”) or the equivalent agencies in other countries. These assets are amortized using mainly the straight-line method over their estimated period of useful life, or based on economic effect models, if more appropriate, which is determined by identifying the period in which substantially all of the cash flows are expected to be generated. Amortization of acquired developed products is recorded under cost of sales. Amortization of marketing and distribution rights is recorded under selling and marketing expenses. | |
For definite life intangibles, whenever impairment indicators are identified, Teva reconsiders the asset's estimated life, calculates the undiscounted value of the asset's cash flows and compares such value against the asset's carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value. | |
Indefinite life intangible assets are mainly comprised of research and development in-process. When testing for impairment, Teva determines the fair value of the asset and records an impairment loss if book value exceeds fair value. | |
Research and development in-process acquired in a business combination is capitalized as an indefinite life intangible asset until the related research and development efforts are either completed or abandoned. In the reporting period where they are treated as indefinite life intangible assets, they are not amortized but rather are tested for impairment. Upon completion of the related research and development efforts, management determines the remaining useful life of the intangible assets and amortizes them accordingly. In case of abandonment, the related research and development assets are impaired. | |
Treasury shares | ' |
j. Treasury shares: | |
Treasury shares are held by Teva's subsidiaries and presented as a reduction of Teva shareholders' equity and carried at their cost to Teva, under “Treasury shares”. | |
Contingencies | ' |
h. Contingencies: | |
The Company and its subsidiaries are involved in various patent, product liability, commercial, government investigations, environmental claims and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies or contingent consideration acquired in a business combination, Teva records accruals for these types of contingencies to the extent that Teva concludes their occurrence is probable and that the related liabilities are estimable. When accruing these costs, the Company will recognize an accrual in the amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Teva records anticipated recoveries under existing insurance contracts that are virtually certain of occurring at the gross amount that is expected to be collected. Legal costs are expensed as incurred. | |
Tax contingencies | ' |
i. Uncertain tax positions: | |
We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. In addition, the Company classifies interest and penalties recognized in the financial statements relating to uncertain tax position under the income taxes line item. | |
Revenue recognition | ' |
l. Revenue recognition: | |
The Company recognizes revenues from product sales, including sales to distributors when persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed or determinable and collectability is reasonably assured. This generally occurs when products are shipped and title and risk and rewards for the products are transferred to the customer. | |
Revenues from product sales are recorded net of provisions for estimated chargebacks, rebates, returns, prompt pay discounts and other deductions, such as shelf stock adjustments, which can be reasonably estimated. When sales provisions are not considered reasonably estimable by Teva, the revenue is deferred to a future period when more information is available to evaluate the impact. | |
Provisions for chargebacks, rebates including Medicaid and other governmental program discounts, rebates and other promotional items, such as shelf stock adjustments, are included in “sales reserves and allowances” under “current liabilities”. These provisions are recognized concurrently with the sales of products. Prompt payment discounts are netted against “accounts receivable.” | |
Calculations for these deductions from sales are based on historical experience and the specific terms in the individual agreements. Chargebacks and rebates are the largest components of sales reserves and allowances. Provisions for chargebacks are determined using historical chargeback experience, or expected chargeback levels and wholesaler sales information for new products, which are compared to externally obtained distribution channel reports for reasonableness. Rebates are recognized based on contractual obligations in place at the time of sales with consideration given to relevant factors that may affect the payment as well as historical experience for estimated market activity. Shelf-stock adjustments are granted to customers based on the existing inventory of a customer following decreases in the invoice or contract price of the related product and are estimated based on expected market performance. Teva records a reserve for estimated sales returns by applying historical experience of customer returns to the amounts invoiced and the amount of returned products to be destroyed versus products that can be placed back in inventory for resale. | |
Revenue resulting from the achievement of milestone events stipulated in agreements is recognized when the milestone is achieved. Milestones are based upon the occurrence of a substantive element specified in the contract or as a measure of substantive progress towards completion under the contract. | |
Revenues from licensees, sales of licensed products and technology are recorded in accordance with the contract terms, when third-party sales can be reliably measured and collection of the funds is reasonably assured. | |
Revenues include royalty income and income from services, which amounted to $182 million, $438 million and $383 million in the years ended December 31, 2013, 2012 and 2011, respectively. | |
Research and development expenses | ' |
m. Research and development: | |
Research and development expenses are charged as incurred. Participations and grants in respect of research and development expenses are recognized as a reduction of research and development expenses as the related costs are incurred, or as the related milestone is met. Upfront fees received in connection with cooperation agreements are deferred and recognized over the period of the applicable agreements as a reduction of research and development expenses. | |
Advance payments for goods or services that will be used or rendered for future research and development activities are deferred and capitalized. Such amounts are recognized as an expense as the related goods are delivered or the services are performed. | |
Research and development in-process acquired as part of an asset purchase, which has not reached technological feasibility and has no alternative future use, is expensed as incurred. | |
Income taxes | ' |
p. Deferred income taxes: | |
Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. Deferred income tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting, or according to the expected reversal dates of the specific temporary differences where appropriate. | |
Deferred tax has not been provided on the following items: | |
(1) Taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company's intention to hold these investments, not to realize them. | |
(2) Amounts of tax-exempt income generated from the Company's current Approved Enterprises and unremitted earnings from foreign subsidiaries retained for reinvestment in the Group. See note 16f. | |
Concentration of credit risks | ' |
r. Concentration of credit risks: | |
Most of Teva's cash and cash equivalents (which along with marketable securities amounted to $1.2 billion at December 31, 2013) were deposited with financially sound European, U.S. and Israeli banks and financial institutions and were comprised mainly of cash deposits. | |
The pharmaceutical industry, particularly in the U.S., has been significantly affected by consolidation among managed care providers, large pharmacy chains, wholesaling organizations and other buyer groups. The U.S. market constitutes approximately 51.5% of Teva's consolidated revenues and a relatively small portion of total trade accounts after netting sales reserves and allowances. The exposure of credit risks relating to other trade receivables is limited, due to the relatively large number of group customers and their wide geographic distribution. Teva performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral. An appropriate allowance for doubtful accounts is included in the accounts and netted against accounts receivable. | |
Derivative | ' |
s. Derivatives and hedging: | |
The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, written and purchased currency options, cross-currency swap contracts and interest rate swap contracts). The transactions are designed to hedge the Company's currency and interest rate exposures. | |
The Company does not enter into derivative transactions for trading purposes. | |
Derivatives that do not qualify for hedge accounting are recognized on the balance sheet at their fair value, with changes in the fair value recognized as a component of “financial expenses - net” in the statements of income. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. | |
Derivatives that qualify as a fair value hedge are recognized on the balance sheet at their fair value, with changes in the fair value reported with the carrying amount of the hedged asset or liability. | |
For derivatives that qualify as cash-flow hedges, the effective portion of these derivatives' fair value is initially reported as a component of other comprehensive income. | |
For derivatives that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of cash flows from the underlying hedged items that these derivatives are hedging. | |
Earnings per share | ' |
q. Earnings per share: | |
Basic earnings per share are computed by dividing the net income attributable to Teva by the weighted average number of ordinary shares (including fully vested RSUs) outstanding during the year, net of treasury shares. | |
In computing diluted earnings per share, basic earnings per share are adjusted to take into account the potential dilution that could occur upon: (i) the exercise of options and non-vested RSUs granted under employee stock compensation plans and one series of convertible senior debentures, using the treasury stock method; and (ii) the conversion of the remaining convertible senior debentures using the “if-converted” method, by adding to net income interest expense on the debentures and amortization of issuance costs, net of tax benefits, and by adding the weighted average number of shares issuable upon assumed conversion of the debentures. | |
Shipping and handling costs | ' |
n. Shipping and handling costs: | |
Shipping and handling costs, which are included in selling and marketing expenses, amounted to $232 million, $230 million and $236 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Advertising expenses | ' |
o. Advertising expenses: | |
Advertising expenses are charged to income as incurred. Advertising expenses for the years ended December 31, 2013, 2012 and 2011 were $321 million, $337 million and $248 million, respectively. | |
Reclassifications | ' |
x. Reclassifications: | |
Certain comparative figures have been reclassified to conform to the current year presentation. | |
Fair value measurement | ' |
t. Fair value measurement: | |
The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |
The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | |
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |
Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data. | |
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers credit risk in its assessment of fair value. | |
Collaborative arrangements | ' |
u. Collaborative arrangements: | |
A Collaborative agreements are contractual arrangements in which the parties are active participants to the arrangement and are exposed to the significant risks and rewards that are dependent on the ultimate commercial success of the endeavor. See note 2. | |
The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to a collaborative agreement as gross or net. If the Company is the principal participant in a transaction, revenues are recorded on a gross basis; otherwise, revenues are recorded on a net basis. | |
Segment reporting | ' |
v. Segment reporting: | |
Following the completion of certain organizational changes, the Company re-evaluated its organizational structure and determined that its business includes two reporting segments: generic and specialty medicines. The generics segment develops, manufactures, sells and distributes generic or branded generic medicines as well as active pharmaceutical ingredients ("API"). The specialty segment engages in the development, manufacture, sale and distribution of branded specialty medicines such as those for central nervous system, oncology and respiratory indications, as well as those marketed in the women's health and other specialty businesses. See note 21. | |
Recently issued accounting pronouncements | ' |
y. Recently issued accounting pronouncements: | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued guidance that requires that a non-recognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This net presentation is required unless a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset to settle any additional income tax that would result from the disallowance of the unrecognized tax benefit. This guidance is effective for fiscal years beginning after December 15, 2013, with early adoption permitted. Teva is assessing whether the adoption of this standard will have a material impact on its consolidated financial statements. | |
In March 2013, the FASB issued further guidance on accounting for the release of a cumulative translation adjustment into net income when a parent company either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets and provides guidance for the acquisition in stages of a controlling interest in a foreign entity. This guidance is effective for fiscal years beginning after December 15, 2013, with early adoption permitted. Teva believes that the adoption of this standard will not have a material impact on its consolidated financial statements. | |
In February 2013, the FASB issued guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, except for obligations addressed within existing guidance under U.S. generally accepted accounting principles. The update is effective for annual and interim reporting periods for fiscal years beginning after December 15, 2013, with early adoption permitted. Teva believes that the adoption of this standard will not have a material impact on its consolidated financial statements. | |
In January 2013, the FASB clarified that a previous update applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. This update was effective for annual and interim reporting periods for fiscal years beginning on or after January 1, 2013. Teva's adoption of this standard did not have a material impact on its consolidated financial statements. | |
Costs associated with exit or disposal activities or restructurings | ' |
w. Restructuring: | |
Restructuring charges are initially recorded at fair value, and recognized in connection with restructuring programs designed to reduce the cost structure, increase efficiency and enhance competitiveness. Judgment is used when estimating the impact of restructuring plans, including future termination benefits and other exit costs to be incurred when the actions take place. Costs for one-time termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period. Actual results could vary from these estimates. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
k. Stock-based compensation: | |
Teva recognizes the estimated fair value of share-based awards and restricted stock units (“RSUs”), net of estimated forfeitures, under stock-based compensation costs. | |
Teva measures compensation expense for share-based awards based on estimated fair values on the date of grant using the Black-Scholes option-pricing model. This option pricing model requires estimates as to the option's expected term and the price volatility of the underlying stock. | |
Teva measures compensation expense for the RSUs based on the market value of the underlying stock at the date of grant, less an estimate of dividends that will not accrue to the RSU holders prior to vesting. |
CERTAIN_TRANSACTIONS_Tables
CERTAIN TRANSACTIONS (Tables) | 0 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Certain Transactions Tables [Abstract] | ' | ||||||||
Pro forma financial information | ' | ||||||||
Year ended December 31, | |||||||||
2011 | |||||||||
(U.S. $ in millions, except earnings per share) | |||||||||
(Unaudited) | |||||||||
Net revenues | $ | 20,443 | |||||||
Net income attributable to Teva | $ | 2,681 | |||||||
Earnings per share: | |||||||||
Basic | $ | 3.01 | |||||||
Diluted | $ | 3 |
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 0 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Measurement Tables [Abstract] | ' | ||||||||||||
Financial items carried at fair value | ' | ||||||||||||
31-Dec-13 | |||||||||||||
(U.S. $ in millions) | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash and cash equivalents: | |||||||||||||
Money markets | $ | 9 | $ | — | $ | — | $ | 9 | |||||
Cash deposits and other | 1,029 | — | — | 1,029 | |||||||||
Marketable securities: | |||||||||||||
Auction rate securities | — | — | 18 | 18 | |||||||||
Equity securities | 70 | — | — | 70 | |||||||||
Structured investment vehicles | — | 89 | — | 89 | |||||||||
Other | 29 | — | 1 | 30 | |||||||||
Derivatives: | |||||||||||||
Liability derivatives - mainly options and forward contracts | — | -17 | — | -17 | |||||||||
Interest rate and cross - currency swaps (liabilities) | — | -436 | — | -436 | |||||||||
Asset derivatives - mainly options and forward contracts | — | 28 | — | 28 | |||||||||
Interest rate swaps (assets) | — | 2 | — | 2 | |||||||||
Contingent consideration * | — | — | -366 | -366 | |||||||||
Total | $ | 1,137 | $ | -334 | $ | -347 | $ | 456 | |||||
31-Dec-12 | |||||||||||||
(U.S. $ in millions) | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Cash and cash equivalents: | |||||||||||||
Money markets | $ | 331 | $ | — | $ | — | $ | 331 | |||||
Cash deposits and other | 2,548 | — | — | 2,548 | |||||||||
Marketable securities: | |||||||||||||
Auction rate securities | — | — | 32 | 32 | |||||||||
Equity securities | 72 | — | — | 72 | |||||||||
Structured investment vehicles | — | 100 | — | 100 | |||||||||
Other | 5 | — | 1 | 6 | |||||||||
Derivatives: | |||||||||||||
Liability derivatives - mainly options and forward contracts | — | -29 | — | -29 | |||||||||
Interest rate and cross-currency swaps (liabilities) | — | -109 | — | -109 | |||||||||
Asset derivatives - mainly options and forward contracts | — | 20 | — | 20 | |||||||||
Interest rate swaps (assets) | — | 4 | — | 4 | |||||||||
Contingent consideration * | — | — | -131 | -131 | |||||||||
Total | $ | 2,956 | $ | -14 | $ | -98 | $ | 2,844 | |||||
The fair value of the financial instruments that are presented on a basis other than fair value is presented in the below table: | |||||||||||||
Estimated fair value* | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(U.S. $ in millions) | |||||||||||||
Senior notes included under long-term liabilities | $ | -8,656 | $ | -10,494 | |||||||||
Senior notes and convertible senior debentures included under short-term liabilities | -1,308 | -2,870 | |||||||||||
Fair value at the end of the period | $ | -9,964 | $ | -13,364 | |||||||||
* The fair value was estimated based on quoted market prices, where available. | |||||||||||||
Activity for financial assets estimated utilizing Level 3 inputs | ' | ||||||||||||
The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs. | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(U.S. $ in millions) | |||||||||||||
Carrying value as of January 1 | $ | -98 | $ | -139 | |||||||||
Amount realized | -16 | -10 | |||||||||||
Contingent consideration in connection with Cephalon acquisition | -12 | 40 | |||||||||||
Contingent consideration in connection with MicroDose acquisition | -232 | - | |||||||||||
Contingent consideration in connection with the sale of our animal health unit | 8 | - | |||||||||||
Net change to fair value: | |||||||||||||
Included in earnings - finance expense - net | 1 | 4 | |||||||||||
Included in other comprehensive income (loss) | 2 | 7 | |||||||||||
Carrying value as of December 31 | $ | -347 | $ | -98 |
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 0 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Marketable Securities Tables [Abstract] | ' | |||||||||||
Available-for-sale securities | ' | |||||||||||
Fair value | Amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | |||||||||
(U.S. $ in millions) | ||||||||||||
31-Dec-13 | $ | 216 | $ | 213 | $ | 25 | $ | 22 | ||||
31-Dec-12 | $ | 541 | $ | 533 | $ | 27 | $ | 19 | ||||
Marketable securities | ' | |||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(U.S. $ in millions) | ||||||||||||
Other non-current assets | $ | 179 | $ | 205 | ||||||||
Other current assets | 28 | 5 | ||||||||||
Cash and cash equivalents, mainly money market funds | 9 | 331 | ||||||||||
$ | 216 | $ | 541 | |||||||||
Contractual maturities of debt securities | ' | |||||||||||
b. | Contractual maturities | |||||||||||
The contractual maturities of debt securities are as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | ||||||||||||
(U.S. $ in millions) | ||||||||||||
2014 | $ | 37 | ||||||||||
2015 | 0 | |||||||||||
2016 | 1 | |||||||||||
2017 | 0 | |||||||||||
2018 | 0 | |||||||||||
2019 and thereafter | 108 | |||||||||||
$ | 146 |
INVENTORIES_Tables
INVENTORIES (Tables) | 0 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories Tables [Abstract] | ' | |||||||
Inventory current | ' | |||||||
NOTE 5—INVENTORIES: | ||||||||
Inventories, net of reserves, consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(U.S. $ in millions) | ||||||||
Finished products | $ | 2,567 | $ | 2,871 | ||||
Raw and packaging materials | 1,576 | 1,754 | ||||||
Products in process | 715 | 751 | ||||||
Materials in transit and payments on account | 195 | 126 | ||||||
$ | 5,053 | $ | 5,502 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 0 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property Plant And Equipment Tables [Abstract] | ' | |||||||||
Property, plant and equipment, net | ' | |||||||||
NOTE 6—PROPERTY, PLANT AND EQUIPMENT: | ||||||||||
Property, plant and equipment, net, consisted of the following: | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
(U.S. $ in millions) | ||||||||||
Machinery and equipment | $ | 4,633 | $ | 4,220 | ||||||
Buildings | 2,635 | 2,521 | ||||||||
Computer equipment and other assets | 1,310 | 1,196 | ||||||||
Payments on account | 716 | 726 | ||||||||
Land* | 446 | 475 | ||||||||
9,740 | 9,138 | |||||||||
Less—accumulated depreciation | 3,105 | 2,823 | ||||||||
$ | 6,635 | $ | 6,315 | |||||||
* | Land includes long-term leasehold rights in various locations, with useful lives of between 30 and 99 years. | |||||||||
Depreciation expenses were $458 million, $428 million and $358 million in the years ended December 31, 2013, 2012 and 2011, respectively. During the years ended December 31, 2013 and 2012, Teva had impairments of property, plant and equipment in the amount of $61 million and $190 million, respectively. See note 20. |
GOODWILL_DISCLOSURE_Tables
GOODWILL DISCLOSURE (Tables) | 0 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Goodwill [Abstract] | ' | |||||||||||||
Schedule of goodwill | ' | |||||||||||||
NOTE 7—GOODWILL: | ||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||||
2013 | 2012 | |||||||||||||
(U.S. $ in millions) | ||||||||||||||
Balance as of January 1 | $ | 18,856 | $ | 18,293 | ||||||||||
Changes during year: | ||||||||||||||
Goodwill acquired | 50 | 302 | ||||||||||||
Translation differences and other | 75 | 261 | ||||||||||||
Balance as of December 31 | $ | 18,981 | $ | 18,856 | ||||||||||
Following Teva's reorganized structure, as defined in note 21, the Company has reassigned its goodwill to the newly defined reporting units. The carrying amount of goodwill per segment is as follows: | ||||||||||||||
31-Dec-13 | ||||||||||||||
(U.S. $ in millions) | ||||||||||||||
Generics | Specialty | Other* | Total | |||||||||||
Balance as of December 31 | $ | 9,088 | $ | 8,668 | $ | 1,225 | $ | 18,981 | ||||||
* Includes primarily Teva's OTC business activity and distribution of third party products. |
IDENTIFIABLE_INTANGIBLE_ASSET_
IDENTIFIABLE INTANGIBLE ASSET (Tables) | 0 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Identifiable Intangible Asset [Abstract] | ' | |||||||||||||||||||
Identifiable Intangible Asset [Table Text Block] | ' | |||||||||||||||||||
NOTE 8 - IDENTIFIABLE INTANGIBLE ASSETS: | ||||||||||||||||||||
Identifiable intangible assets consisted of the following: | ||||||||||||||||||||
Original amount net of impairment | Accumulated amortization | Amortized balance | ||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Product rights | $ | 10,037 | $ | 9,983 | $ | 4,601 | $ | 3,429 | $ | 5,436 | $ | 6,554 | ||||||||
Trade names | 270 | 258 | 55 | 55 | 215 | 203 | ||||||||||||||
Research and development in process | 825 | 988 | 0 | 0 | 825 | 988 | ||||||||||||||
Total | $ | 11,132 | $ | 11,229 | $ | 4,656 | $ | 3,484 | $ | 6,476 | $ | 7,745 |
SHORT_TERM_DEBT_Tables
SHORT TERM DEBT (Tables) | 0 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Short Term Debt Tables [Abstract] | ' | |||||||
Schedule of short term debt | ' | |||||||
NOTE 9—SHORT-TERM DEBT: | ||||||||
a. | Short-term debt: | December 31, | ||||||
2013 | 2012 | |||||||
(U.S. $ in millions) | ||||||||
Banks and financial institutions | $ | 458 | $ | 45 | ||||
Convertible debentures (see note 13) | 530 | 530 | ||||||
Current maturities of long-term liabilities | 816 | 2,431 | ||||||
Total | $ | 1,804 | $ | 3,006 |
SALE_RESERVES_AND_ALLOWENCES_T
SALE RESERVES AND ALLOWENCES (Tables) | 0 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Sales Researves And Allowancess [Abstract] | ' | ||||||||
Sales Researves And Allowancess [Table Text Block] | ' | ||||||||
NOTE 10—SALES RESERVES AND ALLOWANCES: | |||||||||
Sales reserves and allowances consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(U.S. $ in millions) | |||||||||
Rebates | $ | 3,090 | $ | 2,983 | |||||
Chargebacks | 1,114 | 1,273 | |||||||
Returns | 573 | 506 | |||||||
Other | 141 | 172 | |||||||
$ | 4,918 | $ | 4,934 | ||||||
LONG_TERM_EMPLOYEE_RELATED_OBL1
LONG TERM EMPLOYEE RELATED OBLIGATIONS (Tables) | 0 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Long Term Employee Related Obligations Tables [Abstract] | ' | |||||||
Long-term employee-related obligations | ' | |||||||
NOTE 11—LONG-TERM EMPLOYEE-RELATED OBLIGATIONS: | ||||||||
a. | Long-term employee-related obligations consisted of the following: | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(U.S. $ in millions) | ||||||||
Accrued severance obligations | $ | 132 | $ | 135 | ||||
Defined benefit plans | 149 | 160 | ||||||
Total | $ | 281 | $ | 295 |
SENIOR_NOTES_AND_LOANS_Tables
SENIOR NOTES AND LOANS (Tables) | 0 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Senior Notes And Loans Tables [Abstract] | ' | ||||||||
Schedule of senior notes and loans | ' | ||||||||
NOTE 12—SENIOR NOTES AND LOANS: | |||||||||
a. | Senior notes and loans consisted of the following: | ||||||||
Interest rate as of December 31, 2013 | December 31, | ||||||||
2013 | 2012 | ||||||||
% | (U.S. $ in millions) | ||||||||
Senior notes (1) | 2.8 | $ | 9,517 | $ | 12,152 | ||||
Loans, mainly from banks (2)(4) | 0.3 to 2.3 | 1,671 | 1,976 | ||||||
Debentures (4) | 7.2 | 15 | 15 | ||||||
11,203 | 14,143 | ||||||||
Less - current portion (included under “short-term debt”) | -816 | -2,431 | |||||||
$ | 10,387 | $ | 11,712 | ||||||
c. The required annual principal payments of long-term debt as of December 31, 2013, starting with the year 2015, are as follows: | |||||||||
December 31, | |||||||||
2013 | |||||||||
(U.S. $ in millions) | |||||||||
2015 | $ | 1,331 | |||||||
2016 | 985 | ||||||||
2017 | 648 | ||||||||
2018 | 875 | ||||||||
2019 and thereafter | 6,548 | ||||||||
$ | 10,387 | ||||||||
EQUITY_Tables
EQUITY (Tables) | 0 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Equity Tables [Abstract] | ' | |||||||||||||||||||
Schedule of ordinary shares issued upon outstanding options | ' | |||||||||||||||||||
The following tables summarize information at December 31, 2013 regarding the number of ordinary shares issuable upon (1) outstanding options and (2) vested options: | ||||||||||||||||||||
(1) Number of ordinary shares issuable upon exercise of outstanding options | ||||||||||||||||||||
Range of exercise prices | Balance at end of period (in thousands) | Weighted average exercise price | Weighted average remaining life | Aggregate intrinsic value (in thousands) | ||||||||||||||||
Number of shares | $ | Years | $ | |||||||||||||||||
$ - | - | $ - | - | - | - | - | ||||||||||||||
$ - | - | $ - | - | - | - | - | ||||||||||||||
$10.00 | - | $35.10 | 9 | 20.97 | 0.5 | 165 | ||||||||||||||
$35.11 | - | $40.10 | 6,195 | 38.7 | 9.01 | 8,549 | ||||||||||||||
$40.11 | - | $45.10 | 13,587 | 42.32 | 5.43 | - | ||||||||||||||
$45.11 | - | $50.10 | 5,634 | 48.31 | 6.45 | - | ||||||||||||||
$50.11 | - | $55.10 | 6,428 | 52.54 | 3.37 | - | ||||||||||||||
$55.11 | - | $65.00 | 628 | 60.92 | 3.15 | - | ||||||||||||||
Total | 32,481 | 45.05 | 5.84 | 8,714 | ||||||||||||||||
Schedule of ordinary shares issued upon vested options | ' | |||||||||||||||||||
(2) Number of ordinary shares issuable upon exercise of vested options | ||||||||||||||||||||
Range of exercise prices | Balance at end of period (in thousands) | Weighted average exercise price | Weighted average remaining life | Aggregate intrinsic value (in thousands) | ||||||||||||||||
Number of shares | $ | Years | $ | |||||||||||||||||
$ - | - | $ - | - | - | - | - | ||||||||||||||
$ - | - | $ - | - | - | - | - | ||||||||||||||
$10.00 | - | $35.10 | 9 | 20.97 | 0.5 | 165 | ||||||||||||||
$35.11 | - | $40.10 | 1,233 | 38.85 | 8.73 | 1,517 | ||||||||||||||
$40.11 | - | $45.10 | 6,530 | 42.65 | 2.67 | - | ||||||||||||||
$45.11 | - | $50.10 | 3,074 | 48.47 | 5.76 | - | ||||||||||||||
$50.11 | - | $55.10 | 5,852 | 52.78 | 3.04 | - | ||||||||||||||
$55.11 | - | $65.00 | 384 | 61.04 | 3.15 | - | ||||||||||||||
Total | 17,082 | 47.3 | 3.8 | 1,682 | ||||||||||||||||
Components of accumulated other comprehensive income (loss) | ' | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Currency translation adjustment, net of tax | $ | 151 | $ | 175 | $ | -455 | ||||||||||||||
Unrealized loss from available-for-sale securities, net of tax | 5 | -7 | -72 | |||||||||||||||||
Unrealized loss from cash flow hedge | -197 | -93 | -30 | |||||||||||||||||
Defined benefit plans, net of tax | -50 | -92 | -32 | |||||||||||||||||
Accumulated other comprehensive loss attributable to Teva | $ | -91 | $ | -17 | $ | -589 | ||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | ' | |||||||||||||||||||
The weighted average fair value of options granted during the years was estimated by using the Black-Scholes option-pricing model: | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Weighted average fair value | $6.60 | $7.40 | $9.20 | |||||||||||||||||
The fair value of these options was estimated on the date of grant, based on the following weighted average assumptions: | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Dividend yield | 3.30% | 2.60% | 2.00% | |||||||||||||||||
Expected volatility | 23% | 24% | 27% | |||||||||||||||||
Risk-free interest rate | 2.10% | 1.30% | 1.30% | |||||||||||||||||
Expected life term | 9 years | 8 years | 6 years | |||||||||||||||||
Treasury Stock Shares Acquired [Table Text Block] | ' | |||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Amount spent on shares repurchased | $ | 497 | $ | 1,161 | $ | 899 | ||||||||||||||
Number of shares repurchased | 12.8 | 28.1 | 19.6 | |||||||||||||||||
Accumulated Other Comprehensive Income/(Loss) (net of tax) | ' | |||||||||||||||||||
The following table presents the changes in the components of accumulated other comprehensive loss for the year ended December 31, 2013: | ||||||||||||||||||||
Currency translation adjustment | Unrealized gain (loss) from available-for-sale securities | Unrealized (gain) loss from cash flow hedge | Defined benefit plan items | Total accumulated other comprehensive loss | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | $ | -46 | $ | 18 | $ | -111 | $ | 20 | $ | -119 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss before tax: | ||||||||||||||||||||
Currency translation adjustment, included in financial expenses - net | 17 | 17 | ||||||||||||||||||
Gains on marketable securities, included in financial expenses - net | -6 | -6 | ||||||||||||||||||
Loss on derivative financial instruments, included in net revenues | 7 | 7 | ||||||||||||||||||
Loss on defined benefit plans, included in various statement of income items ** | 24 | 24 | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss before tax | 17 | -6 | 7 | 24 | 42 | |||||||||||||||
Net other comprehensive income (loss) before tax | -29 | 12 | -104 | 44 | -77 | |||||||||||||||
Income tax related to items of other comprehensive income (loss) | 5 | * | * | -2 | 3 | |||||||||||||||
Net other comprehensive income (loss) after tax | $ | -24 | $ | 12 | $ | -104 | $ | 42 | $ | -74 | ||||||||||
* Represents an amount of less than $0.5 million. | ||||||||||||||||||||
** Affected mostly general and administrative expenses, as well as cost of sales, research and development expenses, and sales and marketing expenses. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 0 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes [Absract] | ' | ||||||||||
Schedule of income before income taxes | ' | ||||||||||
NOTE 16—INCOME TAXES: | |||||||||||
a. | Income before income taxes is comprised of the following: | ||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
The Parent Company and its Israeli subsidiaries | $ | 1,303 | $ | 1,660 | $ | 2,051 | |||||
Non-Israeli subsidiaries | -53 | 159 | 905 | ||||||||
$ | 1,250 | $ | 1,819 | $ | 2,956 | ||||||
Schedule of the provision for income taxes | ' | ||||||||||
b. | Income taxes: | ||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
In Israel | $ | 197 | $ | 5 | $ | 71 | |||||
Outside Israel | -240 | -142 | 56 | ||||||||
$ | -43 | $ | -137 | $ | 127 | ||||||
Current | $ | 1,096 | $ | 564 | $ | 689 | |||||
Deferred | -1,139 | -701 | -562 | ||||||||
$ | -43 | $ | -137 | $ | 127 | ||||||
Accumulated Other Comprehensive Income/(Loss) (net of tax) | ' | ||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
Income before income taxes | $ | 1,250 | $ | 1,819 | $ | 2,956 | |||||
Statutory tax rate in Israel | 25% | 25% | 24% | ||||||||
Theoretical provision for income taxes | $ | 313 | $ | 455 | $ | 709 | |||||
Increase (decrease) in effective tax rate due to: | |||||||||||
The Parent Company and its Israeli subsidiaries - | |||||||||||
Mainly tax benefits arising from reduced tax rates under benefit programs | -535 | -520 | -501 | ||||||||
Amendment 69 payments and finalization of prior years' tax audits, net of decrease of related uncertain tax positions | 248 | - | - | ||||||||
Non-Israeli subsidiaries | -275 | -83 | -143 | ||||||||
Increase in other uncertain tax positions—net | 206 | 11 | 62 | ||||||||
Effective consolidated income taxes | $ | -43 | $ | -137 | $ | 127 | |||||
Schedule of deferred income taxes | ' | ||||||||||
c. | Deferred income taxes: | ||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
(U.S. $ in millions) | |||||||||||
Short-term deferred tax assets—net: | |||||||||||
Inventory related* | $ | 405 | $ | 359 | |||||||
Sales reserves and allowances | 321 | 300 | |||||||||
Provision for legal settlements | 235 | 128 | |||||||||
Carryforward losses and deductions* | 179 | 242 | |||||||||
Provisions for employee-related obligations | 81 | 79 | |||||||||
Other | 75 | 20 | |||||||||
1,296 | 1,128 | ||||||||||
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized | -249 | -5 | |||||||||
$ | 1,047 | $ | 1,123 | ||||||||
Long-term deferred tax assets (liabilities)—net: | |||||||||||
Intangible assets | $ | -1,412 | $ | -1,883 | |||||||
Carryforward losses and deductions** | 1,415 | 949 | |||||||||
Property, plant and equipment | -181 | -122 | |||||||||
Provisions for employee related obligations | 19 | 14 | |||||||||
Other | 60 | 24 | |||||||||
-99 | -1,018 | ||||||||||
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized | -542 | -721 | |||||||||
$ | -641 | $ | -1,739 | ||||||||
$ | 406 | $ | -616 | ||||||||
* | Reclassified amounts in 2012. | ||||||||||
** | This amount represents the tax effect of carry forward losses and deductions with the following expirations: 2015-2016 — $382 million; 2017-2023 — $246 million; 2024 and thereafter — $188 million. The remaining balance—$599 million—can be utilized with no expiration date. | ||||||||||
Schedule of deferred income taxes by report caption | ' | ||||||||||
The deferred income taxes are reflected in the balance sheets among: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(U.S. $ in millions) | |||||||||||
Current assets—deferred income taxes | $ | 1,084 | $ | 1,142 | |||||||
Current liabilities—other current liabilities | -37 | -19 | |||||||||
Other non-current assets | 606 | 110 | |||||||||
Long-term liabilities—deferred income taxes | -1,247 | -1,849 | |||||||||
$ | 406 | $ | -616 | ||||||||
Schedule of unrecognized tax benefits | ' | ||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
Balance at the beginning of the year | $ | 903 | $ | 907 | $ | 795 | |||||
Decrease related to prior year tax positions, net | 29 | -10 | -45 | ||||||||
Increase related to current year tax positions | 176 | 151 | 131 | ||||||||
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations | -461 | -146 | -20 | ||||||||
Liabilities assumed in acquisitions | 0 | 0 | 52 | ||||||||
Other | 18 | 1 | -6 | ||||||||
Balance at the end of the year | $ | 665 | $ | 903 | $ | 907 | |||||
FINANCIAL_INSTRUMENTS_AND_RISK1
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables) | 0 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities [Absract] | ' | ||||||||||||
Schedule of Accounts Receivable Securitization | ' | ||||||||||||
The following table summarizes the net balance outstanding due to outstanding securitization programs: | |||||||||||||
As of and for the year ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(U.S. $ in millions) | |||||||||||||
Sold receivables at the beginning of the year | $ | 535 | $ | 435 | |||||||||
Proceeds from sale of receivables | 3,662 | 3,491 | |||||||||||
Cash collections (remitted to the owner of the receivables) | -3,635 | -3,393 | |||||||||||
Effect of currency exchange rate changes | 28 | 2 | |||||||||||
Sold receivables at the end of the year | $ | 590 | $ | 535 | |||||||||
Financial Instruments And Risk Management Tables [Abstract[ | ' | ||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | ||||||||||||
b. Derivative instrument disclosure: | |||||||||||||
The following table summarizes the notional amounts for hedged items, for transactions designated as hedge accounting: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(U.S. $ in millions) | |||||||||||||
Interest rate swap - cash flow hedge | $ | - | $ | 1,100 | |||||||||
Interest rate swap - fair value hedge | 2,500 | 1,550 | |||||||||||
Cross currency swap - cash flow hedge | 1,875 | 1,875 | |||||||||||
Forecasted transactions - cash flow hedge | 300 | 200 | |||||||||||
The following table summarizes the classification and fair values of derivative instruments: | |||||||||||||
Fair value | |||||||||||||
December 31, | |||||||||||||
Reported under | 2013 | 2012 | |||||||||||
(U.S. $ in millions) | |||||||||||||
Asset derivatives - interest rate swap - fair value hedge designated as hedging instruments | Other current assets | $ | 2 | $ | 4 | ||||||||
Liability derivatives - interest rate swap - cash flow hedge designated as hedging instruments | Other current liabilities | - | -4 | ||||||||||
Liability derivatives - interest rate swap - fair value hedge designated as hedging instruments | Senior notes and loans | -233 | -14 | ||||||||||
Liability derivatives - cross currency swap - cash flow hedge designated as hedging instruments | Senior notes and loans | -203 | -91 | ||||||||||
Liability derivatives, comprising mainly option and forward contracts, not designated as hedging instruments | Other current liabilities | -17 | -29 | ||||||||||
Asset derivatives, comprising mainly option and forward contracts, not designated as hedging instruments | Other current assets | 28 | 20 |
FINANCIAL_EXPENSES_NET_Tables
FINANCIAL EXPENSES NET (Tables) | 0 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Financial Expenses Net Tables [Abstract] | ' | ||||||||||
Schedule of financial expenses | ' | ||||||||||
NOTE 18—FINANCIAL EXPENSES- NET: | |||||||||||
Year ended December, 31 | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
Interest expenses and other bank charges | $ | 314 | $ | 355 | $ | 234 | |||||
Foreign exchange losses - net | 8 | 25 | 16 | ||||||||
Income from investments | -32 | -26 | -44 | ||||||||
Gain from interest rate swap transaction | - | - | -53 | ||||||||
Expenses mainly from senior notes prepayment | 109 | 32 | - | ||||||||
Total finance expense — net | $ | 399 | $ | 386 | $ | 153 | |||||
LEGAL_SETTLEMENTS_Tables
LEGAL SETTLEMENTS (Tables) | 0 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Legal Settlements Acquisition And Restructuring Expenses And Impairment Tables [Abstract] | ' | ||||||||||
Legal settlements, impairment and restructuring charges | ' | ||||||||||
NOTE 19—LEGAL SETTLEMENTS AND LOSS CONTINGENCIES: |
RESTRUCTURING_AND_IMPAIRMENTS_
RESTRUCTURING AND IMPAIRMENTS (Tables) | 0 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Restructuring And Impairment [Abstract] | ' | ||||||||||
Schedule Of Restructuring Reserve By Type Of Cost [TextBlock] | ' | ||||||||||
NOTE 20—IMPAIRMENTS, RESTRUCTURING AND OTHERS: | |||||||||||
Impairments, restructuring and others consisted of the following: | |||||||||||
Year ended December 31 , | |||||||||||
2013 | 2012 | 2011 | |||||||||
(U.S. $ in millions) | |||||||||||
Impairment of long-lived assets (see also notes 6 and 8) | $ | 524 | $ | 1,071 | $ | 201 | |||||
Restructuring | 201 | 221 | 192 | ||||||||
Contingent consideration | 36 | -40 | - | ||||||||
Acquisition costs and other expenses | 27 | 7 | 37 | ||||||||
Total | $ | 788 | $ | 1,259 | $ | 430 |
SEGMENTS_Tables
SEGMENTS (Tables) | 0 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | |||||||||||||||||
a. Segment information: | ||||||||||||||||||
Generics | Specialty | |||||||||||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
(U.S.$ in millions) | (U.S.$ in millions) | |||||||||||||||||
Revenues | $ | 9,906 | $ | 10,385 | $ | 10,196 | $ | 8,402 | $ | 8,150 | $ | 6,493 | ||||||
Gross profit | 4,095 | 4,518 | 4,605 | 7,326 | 7,173 | 5,622 | ||||||||||||
R&D expenses | 494 | 485 | 459 | 909 | 793 | 616 | ||||||||||||
S&M expenses | 1,945 | 1,971 | 2,087 | 1,850 | 1,686 | 1,099 | ||||||||||||
Segment profitability | $ | 1,656 | $ | 2,062 | $ | 2,059 | $ | 4,567 | $ | 4,694 | $ | 3,907 | ||||||
Year ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(U.S.$ in millions) | ||||||||||||||||||
Generic medicines profitability | $ | 1,656 | $ | 2,062 | $ | 2,059 | ||||||||||||
Specialty medicines profitability | 4,567 | 4,694 | 3,907 | |||||||||||||||
Total segment profitability | 6,223 | 6,756 | 5,966 | |||||||||||||||
Profitability of other activities | 214 | 197 | 219 | |||||||||||||||
Total profitability | 6,437 | 6,953 | 6,185 | |||||||||||||||
Amounts not allocated to segments: | ||||||||||||||||||
Amortization | 1,180 | 1,272 | 707 | |||||||||||||||
General and administrative expenses | 1,239 | 1,238 | 932 | |||||||||||||||
Legal settlements and loss contingencies | 1,524 | 715 | 471 | |||||||||||||||
Impairments, restructuring and others | 788 | 1,259 | 430 | |||||||||||||||
Other unallocated amounts | 57 | 264 | 536 | |||||||||||||||
Consolidated operating income | 1,649 | 2,205 | 3,109 | |||||||||||||||
Financial expenses - net | 399 | 386 | 153 | |||||||||||||||
Consolidated income before income taxes | $ | 1,250 | $ | 1,819 | $ | 2,956 | ||||||||||||
b. | Segment revenues by geographic area: | |||||||||||||||||
Year ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(U.S.$ in millions) | ||||||||||||||||||
Generic Medicines | ||||||||||||||||||
United States | $ | 4,181 | $ | 4,381 | $ | 3,957 | ||||||||||||
Europe* | 3,485 | 3,482 | 3,929 | |||||||||||||||
Rest of the World | 2,240 | 2,522 | 2,310 | |||||||||||||||
Total Generic Medicines | 9,906 | 10,385 | 10,196 | |||||||||||||||
Specialty Medicines | ||||||||||||||||||
United States | 6,026 | 5,857 | 4,804 | |||||||||||||||
Europe* | 1,706 | 1,575 | 1,108 | |||||||||||||||
Rest of the World | 670 | 718 | 581 | |||||||||||||||
Total Specialty | 8,402 | 8,150 | 6,493 | |||||||||||||||
Other Revenues | ||||||||||||||||||
United States | 254 | 200 | 39 | |||||||||||||||
Europe* | 797 | 741 | 760 | |||||||||||||||
Rest of the World | 955 | 841 | 824 | |||||||||||||||
Total Other Revenues | 2,006 | 1,782 | 1,623 | |||||||||||||||
Total Revenues | $ | 20,314 | $ | 20,317 | $ | 18,312 | ||||||||||||
* | All members of the European Union, Switzerland, Norway, Albania and the countries of former Yugoslavia. | |||||||||||||||||
Schedule of net sales by product line | ' | |||||||||||||||||
c. Net revenues from specialty medicines were as follows: | ||||||||||||||||||
Year ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||
CNS | $ | 5,505 | $ | 5,464 | $ | 4,412 | ||||||||||||
Copaxone® | 4,328 | 3,996 | 3,570 | |||||||||||||||
Azilect® | 371 | 330 | 290 | |||||||||||||||
Nuvigil® | 320 | 347 | 86 | |||||||||||||||
Provigil® | 91 | 417 | 350 | |||||||||||||||
Oncology | 982 | 860 | 268 | |||||||||||||||
Treanda® | 709 | 608 | 131 | |||||||||||||||
Respiratory | 905 | 856 | 878 | |||||||||||||||
ProAir® | 429 | 406 | 436 | |||||||||||||||
Qvar® | 328 | 297 | 305 | |||||||||||||||
Women's health | 463 | 448 | 438 | |||||||||||||||
Other Specialty | 547 | 522 | 497 | |||||||||||||||
Total Specialty Medicines | $ | 8,402 | $ | 8,150 | $ | 6,493 | ||||||||||||
Schedule of PPE by geographical area | ' | |||||||||||||||||
e. | Property, plant and equipment—by geographical location were as follows: | |||||||||||||||||
December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(U.S. $ in millions) | ||||||||||||||||||
Israel | $ | 1,834 | $ | 1,649 | $ | 1,459 | ||||||||||||
United States | 852 | 896 | 1,053 | |||||||||||||||
Hungary | 526 | 498 | 388 | |||||||||||||||
Japan | 492 | 644 | 765 | |||||||||||||||
Croatia | 479 | 415 | 311 | |||||||||||||||
Germany | 403 | 367 | 317 | |||||||||||||||
Other | 2,049 | 1,846 | 1,654 | |||||||||||||||
Total property, plant and equipment | $ | 6,635 | $ | 6,315 | $ | 5,947 | ||||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 0 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings Per Share Tables [Abstract] | ' | |||||||||
Schedule of earnings per share | ' | |||||||||
NOTE 22—EARNINGS PER SHARE: | ||||||||||
The net income attributable to Teva and the weighted average number of shares used in computation of basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011 are as follows: | ||||||||||
2013 | 2012 | 2011 | ||||||||
(U.S. $ in millions) | ||||||||||
Net income attributable to Teva | $ | 1,269 | $ | 1,963 | $ | 2,759 | ||||
Net income used for the computation of diluted earnings per share | $ | 1,269 | $ | 1,963 | $ | 2,759 | ||||
Schedule of weighted average number of shares | ' | |||||||||
Weighted average number of shares used in the computation of basic earnings per share | 849 | 872 | 890 | |||||||
Add: | ||||||||||
Additional shares from the assumed exercise of employee stock options and unvested RSUs | 1 | 1 | 2 | |||||||
Weighted average number of additional shares issued upon the assumed conversion of convertible senior debentures | * | * | 1 | |||||||
Weighted average number of shares used in the computation of diluted earnings per share | 850 | 873 | 893 | |||||||
* Represents an amount of less than 0.5 million. |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Tables) | 0 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule Of Valuation And Qualifying Accounts Tables [Abstract] | ' | ||||||||||||||||
Schedule Of Valuation And Qualifying Accounts Disclosure Table [Text Block] | ' | ||||||||||||||||
TEVA PHARMACEUTICAL INDUSTRIES LIMITED | |||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
Three Years Ended December 31, 2013 | |||||||||||||||||
(U.S. $ in millions) | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Balance at beginning of period | Charged to costs and expenses | Charged to other accounts | Deductions | Balance at end of period | |||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||
Year ended December 31, 2013 | $ | 145 | $ | 44 | $ | 3 | $ | -5 | $ | 187 | |||||||
Year ended December 31, 2012 | $ | 116 | $ | 32 | $ | 5 | $ | -8 | $ | 145 | |||||||
Year ended December 31, 2011 | $ | 126 | $ | 20 | $ | -6 | $ | -24 | $ | 116 | |||||||
Allowance in respect of carryforward tax losses: | |||||||||||||||||
Year ended December 31, 2013 | $ | 726 | $ | 182 | $ | 0 | $ | -117 | $ | 791 | |||||||
Year ended December 31, 2012 | $ | 452 | $ | 384 | $ | 2 | $ | -112 | $ | 726 | |||||||
Year ended December 31, 2011 | $ | 211 | $ | 124 | $ | 198 | $ | -81 | $ | 452 |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Significant Accounting Policies [Abstract] | ' | ' | ' | ' |
Percentage of consolidated sales in North America | 51.50% | ' | ' | ' |
Shipping and handling costs, which are included in selling and marketing expenses | ' | $232,000,000 | $230,000,000 | $236,000,000 |
Advertising expense | ' | 321,000,000 | 337,000,000 | 248,000,000 |
Property Plant And Equipment [Line Items] | ' | ' | ' | ' |
Other Revenue | ' | 182,000,000 | 438,000,000 | 383,000,000 |
Cash And Cash Equivalents And Marketable Securities Deposited In Banks And Financial Institutions | $1,200,000,000 | $1,200,000,000 | ' | ' |
Building [Member] | ' | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' | ' |
Property Plant And Equipment Useful Life Mainly | 40 | ' | ' | ' |
Other Machinery And Equipment [Member] | Minimum [Member] | ' | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' | ' |
Property Plant And Equipment Useful Life | ' | '15 years 12 months 31 days | ' | ' |
Other Machinery And Equipment [Member] | Maximum [Member] | ' | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' | ' |
Property Plant And Equipment Useful Life | ' | '20 years 12 months 31 days | ' | ' |
Other Capitalized Property Plant And Equipment [Member] | Minimum [Member] | ' | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' | ' |
Property Plant And Equipment Useful Life | ' | '5 years 12 months 31 days | ' | ' |
Other Capitalized Property Plant And Equipment [Member] | Maximum [Member] | ' | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' | ' |
Property Plant And Equipment Useful Life | ' | '10 years 12 months 31 days | ' | ' |
CERTAIN_TRANSACTIONS_Details
CERTAIN TRANSACTIONS (Details) (USD $) | Oct. 14, 2011 | Feb. 22, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | NuPathe [Member] | Microdose Therpeutix [Member] | Neurosearch [Member] | |
Noncash Or Part Noncash Acquisitions [Line Items] | ' | ' | ' | ' |
Business Acquisition Effective Date Of Acquisition1 | ' | 21-Jan-14 | ' | ' |
Total consideration | $6,500 | ' | ' | ' |
Portion of purchase price paid in cash | ' | ' | $206 | $10 |
CERTAIN_TRANSACTIONS_Details_1
CERTAIN TRANSACTIONS (Details 1) | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 14, 2011 | Jan. 05, 2011 | Jan. 05, 2011 | Oct. 26, 2011 | Oct. 14, 2011 | Oct. 14, 2011 | Oct. 14, 2011 | Jul. 14, 2011 | Sep. 28, 2011 | Sep. 26, 2011 | Jul. 09, 2013 | Feb. 22, 2014 |
USD ($) | USD ($) | USD ($) | Laboratoire Theramex [Member] | Laboratoire Theramex [Member] | Infarmasa [Member] | Cephalon [Member] | Cephalon [Member] | Cephalon [Member] | Taiyo [Member] | Curetech [Member] | Japanese Venture [Member] | Microdose Therpeutix [Member] | NuPathe [Member] | |
USD ($) | EUR (€) | USD ($) | Convertibledebtissuedtwoprecentdue 2015 [Member] | Convertibledebtissuedtwopointfiveprecentdue 2014 [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||
USD ($) | USD ($) | |||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition Effective Date Of Acquisition1 | ' | ' | ' | 1-Jan-11 | 1-Jan-11 | 1-Jan-11 | 1-Oct-11 | ' | ' | 1-Jul-11 | 9-Jan-11 | 1-Sep-11 | 8-Jul-13 | ' |
Business Acquisition Cost Of Acquired Entity Purchase Price [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price in US dollars | ' | ' | $6,500,000,000 | $355,000,000 | ' | ' | ' | ' | ' | $1,092,000,000 | ' | $150,000,000 | $40,000,000 | $144,000,000 |
Purchase price in a currency other than US dollars | ' | ' | ' | ' | 267,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of purchase price paid in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,000,000 |
Business Acquisition, Percentage of Voting Interests Acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Equity Method Investment Additional Investment Option Exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' | ' |
Debt Conversion Original Debt Amount 2010 | ' | ' | ' | ' | ' | ' | ' | 820,000,000 | 500,000,000 | ' | ' | ' | ' | ' |
Convertible Debt Aggregate Amount Conversion | ' | ' | ' | ' | ' | ' | 2,100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Identifiable intangible asset - existing product rights | ' | ' | 2,555,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development in-process | ' | ' | 1,296,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | 3,279,000,000 | ' | ' | ' | ' | ' | ' | ' |
Non-controlling interests | $71,000,000 | $99,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional Business Combination Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite Lived Intangible Assets Weighted Useful Life Max | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' |
CERTAIN_TRANSACTIONS_Details_2
CERTAIN TRANSACTIONS (Details 2) (Cephalon [Member], USD $) | 0 Months Ended | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Oct. 14, 2011 | Dec. 31, 2012 |
Cephalon [Member] | ' | ' |
Business Acquisition Pro Forma Information [Line Items] | ' | ' |
Net sales | ' | $20,443 |
Net income attributable to Teva | ' | $2,681 |
Earnings per share-Basic | ' | $3.01 |
Earnings per share-Diluted | ' | $3 |
Business Acquisition, Pro Forma Information, Description | 'Below are certain unaudited pro forma combined statement of income data for the year ended December 31, 2011, as if the acquisition of Cephalon had occurred on January 1, 2010 after giving effect to: (a) purchase accounting adjustments, including amortization of identifiable intangible assets; (b) the exclusion of $288 million of nonrecurring expense related to inventory step up; (c) estimated additional finance expenses due to: (i) borrowings under credit facilities from banks in connection with the acquisition; (ii) the issuance of senior notes in connection with the acquisition; (iii) elimination of Cephalon’s equity investment mark-to-market effect (an exclusion of income of $198 million supplemental pro forma net income); and (iv) elimination of Cephalon’s finance expense relating to convertible debentures; (d) pharmaceutical products divested as part of the regulatory requirements for approving the deal; (e) elimination of intercompany sales; (f) elimination of net revenues related to the divestiture of certain overlapping products; (g) elimination of net revenues and income related to Cephalon’s divested businesses (Middle East, Africa, Latin America and Asia); and (h) certain adjustments with regards to the amortization of Cephalon’s Provigil® product. This unaudited pro forma financial information is not necessarily indicative of the combined results that would have been attained had the acquisition taken place at the beginning of 2010, nor is it necessarily indicative of future results. | ' |
CERTAIN_TRANSACTIONS_Details_3
CERTAIN TRANSACTIONS (Details 3) (USD $) | Oct. 14, 2011 | Jul. 14, 2011 |
In Millions, unless otherwise specified | Taiyo [Member] | |
Business Acquisition [Line Items] | ' | ' |
Research and development in-process | $1,296 | ' |
The high end of the estimated after tax discount rates used in determining the present value of the probability adjusted incremental cash flows expected to be generated by the IPR&D acquired in a business combination | 13.00% | ' |
Number Of Marketed Generics Products In Japan | ' | 550 |
CERTAIN_TRANSACTIONS_Details_4
CERTAIN TRANSACTIONS (Details 4) (USD $) | 0 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Schedule Of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Related Party Transaction Expenses From Transactions With Related Party | $431,442 | $412,000 | $305,000 | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Research and Development Asset Acquired Other than Through Business Combination, Written-off | ' | ' | ' | $26,000,000 |
Xenon [Member] | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Collaborative Arrangement, Rights and Obligations | ' | 'Under the agreement, Teva paid Xenon an upfront fee of $41 million. In addition, Teva may be required to pay development, regulatory and sales-based milestones of up to $335 million. Xenon is also entitled to royalties on sales and has an option to participate in commercialization in the United States. | ' | ' |
South Korea Venture [Member] | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Collaborative Arrangement, Nature and Purpose | 'Teva contributes its global resources, with responsibilities for manufacturing and supplying a wide range of affordable and innovative medicines, and Handok’s primary responsibility is in sales and marketing, distribution, and regulatory affairs. | ' | ' | ' |
Collaborative Arrangement, Rights and Obligations | 'Under the terms of the agreement, there is a voting split of 60% and 40% and a profit split of 51% and 49% to Teva and Handok, respectively. | ' | ' | ' |
PGT [Member] | ' | ' | ' | ' |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' |
Collaborative Arrangement, Rights and Obligations | 'We own 49% of the joint venture, and P&G holds a controlling financial interest of 51%. The Company recognizes profits of the joint venture based on Teva's ownership percentage | ' | ' | ' |
Teva Lonza [Member] | ' | ' | ' | ' |
Schedule Of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Percentage owned by Teva | ' | 50.00% | ' | ' |
CERTAIN_TRANSACTIONS_Details_5
CERTAIN TRANSACTIONS (Details 5) (USD $) | Dec. 31, 2013 |
In Billions, unless otherwise specified | |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Business Acquisition, Contingent Consideration, Potential Cash Payment | $1.30 |
CERTAIN_TRANSACTIONS_Details_6
CERTAIN TRANSACTIONS (Details 6) | 0 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 14, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 02, 2011 | Sep. 14, 2012 | |
USD ($) | USD ($) | USD ($) | USD ($) | Ctg Weld [Member] | Ctg Weld [Member] | CoCrystal [ Member] | Animal Health Business [Member] | |
EUR (€) | EUR (€) | USD ($) | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition Purchase Price Allocation In Process Research And Development | ' | ' | ' | $1,296,000,000 | ' | ' | ' | ' |
Business Acquisition Purchase Price Allocation Amortizable Intangible Assets Existing Product Rights | ' | ' | ' | 2,555,000,000 | ' | ' | ' | ' |
Related Party Transaction Expenses From Transactions With Related Party | 431,442 | 412,000 | 305,000 | ' | 800,000 | 1,300,000 | ' | ' |
Date Of Investment Agreement | ' | ' | ' | ' | ' | ' | 'In September 2011, Teva entered into an agreement with CoCrystal Discovery, Inc. (now merged with Biozone Pharmaceuticals, Inc.), a company focusing on the discovery and development of novel therapeutics, utilizing an innovative drug discovery technology. Under the agreement, Teva will fund the company’s R&D under the Research Agreement by investing into the company up to two tranches of $7.5 million each per target (the latter one being discretionary). The first tranche was invested by Teva in 2011. Dr. Phillip Frost, Chairman of the Board of Directors of Teva, and Prof. Roger Kornberg, a member of Teva's Board of Directors until August 2013, are both direct and indirect shareholders in and members of the board of directors of Biozone Pharmaceuticals. Prof. Kornberg is also Chief Scientific Officer of Biozone Pharmaceuticals. | ' |
Divestiture Group Maximum Selling Price | ' | ' | ' | ' | ' | ' | ' | 145,000,000 |
Noncash Or Part Noncash Divestiture Amount Of Consideration Receivable | ' | ' | ' | ' | ' | ' | ' | 60,000,000 |
Remaining Noncash Or Part Noncash Divestiture Amount Of Consideration Receivabl | ' | ' | ' | ' | ' | ' | ' | $85,000,000 |
FAIR_VALUE_MEASUREMENT_Details
FAIR VALUE MEASUREMENT (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Total | $456 | $2,844 | ' | ' | ' |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value [Abstract] | ' | ' | ' | ' | ' |
Carrying value | ' | ' | -98 | -139 | ' |
Amount realized | -16 | -10 | ' | ' | ' |
Net Change In Fair Value Of Level 3 Assets [Abstract] | ' | ' | ' | ' | ' |
Fair Value Assets Measured On Recurring Basis Gain Loss Included in earnings financial income | 1 | 4 | ' | ' | ' |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain LossI ncluded In Other Comprehensive Income Loss | 2 | 7 | ' | ' | ' |
Carrying value | -347 | -98 | -347 | -98 | -139 |
Fair value of the senior notes, convertible senior debentures and interest rate swap agreements | ' | ' | -8,656 | -10,494 | ' |
Fair value of the interest rate swap agreements | ' | ' | 0 | ' | 0 |
Fair value convertible senior debentures and derivatives liabilities | ' | ' | -1,308 | -2,870 | ' |
Fair value, option, credit risk, gains (losses) on assets | ' | ' | 2 | ' | 5 |
Carrying Value Of Senior Notes Included Under Long And Short Term Liabilities And Convertibale Senior Debentures | ' | ' | -9,964 | -13,364 | ' |
Contingent Consideration In Connection With Cephalon Acquisition | -12 | 40 | -12 | 40 | ' |
Contingent Consideration In Connection With Microdose Acquisition | -232 | ' | -232 | ' | ' |
Contingent Consideration In Connection With Animal Health Acquisition | 8 | ' | 8 | ' | ' |
Level 1 [Member] | ' | ' | ' | ' | ' |
Total | 1,137 | 2,956 | ' | ' | ' |
Level 2 [Member] | ' | ' | ' | ' | ' |
Total | -334 | -14 | ' | ' | ' |
Level 3 [Member] | ' | ' | ' | ' | ' |
Total | -347 | -98 | ' | ' | ' |
Money Market Funds [Member] | ' | ' | ' | ' | ' |
Cash And Cash Equivalents Fair Value Disclosure | 9 | 331 | 9 | 331 | ' |
Money Market Funds [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Cash And Cash Equivalents Fair Value Disclosure | 9 | 331 | 9 | 331 | ' |
Money Market Funds [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Cash And Cash Equivalents Fair Value Disclosure | 0 | ' | 0 | ' | ' |
Money Market Funds [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Cash And Cash Equivalents Fair Value Disclosure | 0 | 0 | 0 | 0 | ' |
Demand Deposits [Member] | ' | ' | ' | ' | ' |
Cash And Cash Equivalents Fair Value Disclosure | 1,029 | 2,548 | 1,029 | 2,548 | ' |
Demand Deposits [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Cash And Cash Equivalents Fair Value Disclosure | 1,029 | 2,548 | 1,029 | 2,548 | ' |
Demand Deposits [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Cash And Cash Equivalents Fair Value Disclosure | 0 | 0 | 0 | 0 | ' |
Demand Deposits [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Cash And Cash Equivalents Fair Value Disclosure | 0 | 0 | 0 | 0 | ' |
Auction Rate Securities [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 18 | 32 | 18 | 32 | ' |
Auction Rate Securities [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 0 | 0 | 0 | 0 | ' |
Auction Rate Securities [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 0 | 0 | 0 | 0 | ' |
Auction Rate Securities [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 18 | 32 | 18 | 32 | ' |
Structured Finance [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 89 | 100 | 89 | 100 | ' |
Structured Finance [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 0 | 0 | 0 | 0 | ' |
Structured Finance [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 89 | 100 | 89 | 100 | ' |
Structured Finance [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 0 | 0 | 0 | 0 | ' |
Other Debt Obligations [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 30 | 6 | 30 | 6 | ' |
Other Debt Obligations [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 29 | 5 | 29 | 5 | ' |
Other Debt Obligations [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Cash And Cash Equivalents Fair Value Disclosure | ' | 0 | ' | 0 | ' |
Investments Fair Value Disclosure | 0 | 0 | 0 | 0 | ' |
Other Debt Obligations [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 1 | 1 | 1 | 1 | ' |
Liability Derivatives [Member] | ' | ' | ' | ' | ' |
Derivatives-net | 17 | 29 | 17 | 29 | ' |
Liability Derivatives [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Derivatives-net | 0 | 0 | 0 | 0 | ' |
Liability Derivatives [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Derivatives-net | 17 | 29 | 17 | 29 | ' |
Liability Derivatives [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Derivatives-net | 0 | 0 | 0 | 0 | ' |
Interest Rate Swap [Member] | ' | ' | ' | ' | ' |
Derivatives-net | 436 | 109 | 436 | 109 | ' |
Derivatives-net | 2 | 4 | 2 | 4 | ' |
Interest Rate Swap [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Derivatives-net | 0 | 0 | 0 | 0 | ' |
Derivatives-net | 0 | 0 | 0 | 0 | ' |
Interest Rate Swap [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Derivatives-net | 436 | 109 | 436 | 109 | ' |
Derivatives-net | 2 | 4 | 2 | 4 | ' |
Interest Rate Swap [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Derivatives-net | 0 | 0 | 0 | 0 | ' |
Derivatives-net | 0 | 0 | 0 | 0 | ' |
Asset Derivatives [Member] | ' | ' | ' | ' | ' |
Derivatives-net | -28 | -20 | -28 | -20 | ' |
Derivative Fair Value Of Derivative Asset | 0 | ' | 0 | ' | 0 |
Asset Derivatives [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Derivatives-net | 0 | 0 | 0 | 0 | ' |
Asset Derivatives [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Derivatives-net | -28 | -20 | -28 | -20 | ' |
Asset Derivatives [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Derivatives-net | 0 | 0 | 0 | 0 | ' |
Equity Securities [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 70 | 72 | 70 | 72 | ' |
Equity Securities [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 70 | 72 | 70 | 72 | ' |
Equity Securities [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 0 | 0 | 0 | 0 | ' |
Equity Securities [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Investments Fair Value Disclosure | 0 | 0 | 0 | 0 | ' |
Business Acquisition Contingent Consideration [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration, at Fair Value | -366 | -131 | -366 | -131 | ' |
Business Acquisition Contingent Consideration [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration, at Fair Value | 0 | 0 | 0 | 0 | ' |
Business Acquisition Contingent Consideration [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration, at Fair Value | 0 | 0 | 0 | 0 | ' |
Business Acquisition Contingent Consideration [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration, at Fair Value | ($366) | ($131) | ($366) | ($131) | ' |
MARKETABLE_SECURITIES_Details
MARKETABLE SECURITIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Marketable Securities [Abstract] | ' | ' |
Fair value | $216 | $541 |
Cost | 213 | 533 |
Gross unrealized holding gains | 25 | 27 |
Gross unrealized holding losses | 22 | 19 |
Available-for-sale securities by report caption | ' | ' |
Cash and cash equivalents | 9 | 331 |
Short-term investments | 28 | 5 |
Other non-current | 179 | 205 |
Fair value | 216 | 541 |
Contractual maturities of debt securities | ' | ' |
2014 | 37 | ' |
2016 | 1 | ' |
2017 | 0 | ' |
2018 | 0 | ' |
2019 and thereafter | 108 | ' |
Total maturities of available-for-sale securities, at fair value | 146 | ' |
2015 | $0 | ' |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw and packaging materials | $1,576 | $1,754 |
Products in process | 715 | 751 |
Finished products | 2,567 | 2,871 |
Materials in transit and payments on account | 195 | 126 |
Inventories | $5,053 | $5,502 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant and Equipment Net [Abstract] | ' | ' | ' |
Land owned or held under long-term leases | $446 | $475 | ' |
Buildings | 2,635 | 2,521 | ' |
Machinery and equipment | 4,633 | 4,220 | ' |
Computer equipment and other assets | 1,310 | 1,196 | ' |
Payments on account | 716 | 726 | ' |
Subtotal | 9,740 | 9,138 | ' |
Less-accumulated depreciation | 3,105 | 2,823 | ' |
Property, Plant and Equipment, Net, Total | 6,635 | 6,315 | 5,947 |
Depreciation expense for the year | 458 | 428 | 358 |
Impairment charge during the year on property, plant and equipment | $61 | $190 | ' |
Capitalized Land Lease Estimated Useful Lives Minimum | 30 | ' | ' |
Capitalized Land Lease Estimated Useful Lives Maximum | 99 | ' | ' |
Building [Member] | ' | ' | ' |
Change in Accounting Estimate [Line Items] | ' | ' | ' |
Change in Accounting Estimate, Description | 'the estimated useful life of buildings was changed from a range of 25 to 50 years to an aggregate useful life of 40 years | ' | ' |
Machinery and Equipment [Member] | ' | ' | ' |
Change in Accounting Estimate [Line Items] | ' | ' | ' |
Change in Accounting Estimate, Description | 'the estimated useful life of machinery was changed to a range of useful life of 15 to 20 years from a range of 7 to 15 years | ' | ' |
GOODWILL_DISCLOSURE_Details
GOODWILL DISCLOSURE (Details) (USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill Roll Forward [Line Items] | ' | ' | ' |
Goodwill, balance as of January 1 | ' | ' | $18,293 |
Translation Differences And Other | 75 | 261 | ' |
Goodwill acquired | 50 | 302 | ' |
Goodwill, balance as of December 31 | 18,981 | 18,856 | 18,293 |
Generics [Member] | ' | ' | ' |
Goodwill Roll Forward [Line Items] | ' | ' | ' |
Goodwill, balance as of December 31 | 9,088 | ' | ' |
Specialty [Member] | ' | ' | ' |
Goodwill Roll Forward [Line Items] | ' | ' | ' |
Goodwill, balance as of December 31 | 8,668 | ' | ' |
Other Good Will [Member] | ' | ' | ' |
Goodwill Roll Forward [Line Items] | ' | ' | ' |
Goodwill, balance as of December 31 | $1,225 | ' | ' |
IDENTIFIABLE_INTANGIBLE_ASSET_1
IDENTIFIABLE INTANGIBLE ASSET (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible Assets [Abstract] | ' | ' | ' |
Product rights, at cost | $10,037 | $9,983 | ' |
Finite Lived Trade Names Gross | 270 | 258 | ' |
Research and development in process gross | 825 | 988 | ' |
Intangible assets, gross, excluding goodwill | 11,132 | 11,229 | ' |
Product rights, accumulated amortization | 4,601 | 3,429 | ' |
Finite Lived Trade Names Accumulated Amortization | 55 | 55 | ' |
Intangible assets accumulated amortization | 4,656 | 3,484 | ' |
Products rights net | 5,436 | 6,554 | ' |
Trade Names Net | 215 | 203 | ' |
Research and development in process net | 825 | 988 | ' |
Intangible assets, net (excluding goodwill) total | 6,476 | 7,745 | ' |
Intangible assets charges against earnings | ' | ' | ' |
Amortization Of Intangible Assets | 1,180 | 1,272 | 707 |
Impairment of intangible assets | 393 | 858 | 143 |
Estimated aggregate amortization of intangible assets | ' | ' | ' |
2014 | 1,071 | ' | ' |
2015 | 836 | ' | ' |
2016 | 730 | ' | ' |
2017 | 715 | ' | ' |
2018 | 656 | ' | ' |
AcquiredIndefiniteLivedIntangibleAssetsLineItems | ' | ' | ' |
Research and development in process net | 825 | 988 | ' |
Revascor Cephalon [Member] | ' | ' | ' |
Intangible Assets [Abstract] | ' | ' | ' |
Research and development in process net | 258 | ' | ' |
AcquiredIndefiniteLivedIntangibleAssetsLineItems | ' | ' | ' |
Research and development in process net | 258 | ' | ' |
Cinquil Cephalon [Member] | ' | ' | ' |
Intangible Assets [Abstract] | ' | ' | ' |
Research and development in process net | 215 | ' | ' |
AcquiredIndefiniteLivedIntangibleAssetsLineItems | ' | ' | ' |
Research and development in process net | 215 | ' | ' |
Lama Laba Microdose [Member] | ' | ' | ' |
Intangible Assets [Abstract] | ' | ' | ' |
Research and development in process net | 140 | ' | ' |
AcquiredIndefiniteLivedIntangibleAssetsLineItems | ' | ' | ' |
Research and development in process net | 140 | ' | ' |
MDT637 Microdose [Member] | ' | ' | ' |
Intangible Assets [Abstract] | ' | ' | ' |
Research and development in process net | 107 | ' | ' |
AcquiredIndefiniteLivedIntangibleAssetsLineItems | ' | ' | ' |
Research and development in process net | $107 | ' | ' |
SHORT_TERM_DEBT_Details
SHORT TERM DEBT (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Current | ' | ' |
Bank loans, overdrafts and financial institution loans | $458 | $45 |
Principal amount currently outstanding on the debt instrument | 530 | 530 |
Current portion of long term senior notes and loans | 816 | 2,431 |
Debt, Current, Total | $1,804 | $3,006 |
Debt Current Additional Information | ' | ' |
Weighted average interest rate | 0.90% | 1.50% |
SHORT_TERM_DEBT_Details1
SHORT TERM DEBT (Details1) (USD $) | 0 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Line Of Credit Facility [Line Items] | ' | ' |
Bank loans, overdrafts and financial institution loans | $45,000,000 | $458,000,000 |
Syndicated Credit Facility [Member] | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' |
Line Of Credit Termination Terms | 'five-year | ' |
Line Of Credit Facility Maximum Borrowing Capacity | 3,000,000,000 | ' |
Bank loans, overdrafts and financial institution loans | ' | 205,000,000 |
Bilateral Revolving Lines Of Credit [Member] | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' |
Line Of Credit Facility Maximum Borrowing Capacity | $2,500,000,000 | ' |
SALES_RESEARVES_AND_ALLOWANCES1
SALES RESEARVES AND ALLOWANCES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Sales Researves And Allowancess [Abstract] | ' | ' |
Rebates | $3,090 | $2,983 |
Chargebacks | 1,114 | 1,273 |
Returns | 573 | 506 |
Other | 141 | 172 |
Sales Reserves And Allowances | $4,918 | $4,934 |
LONG_TERM_EMPLOYEE_RELATED_OBL2
LONG TERM EMPLOYEE RELATED OBLIGATIONS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Employee-related obligations long-term | ' | ' |
Accrued severance pay | $132 | $135 |
Defined benefit plans | 149 | 160 |
Total | 281 | 295 |
Employee-related obligations information | ' | ' |
Long-term investments earmarked for severance pay liabilities in Israel | 156 | 134 |
Expected contributions to the pension funds | 118 | ' |
Future minimum benefit payments | ' | ' |
2014 | 15 | ' |
2015 | 10 | ' |
2016 | 10 | ' |
2017 | 12 | ' |
2018 | 14 | ' |
2019-2023 | $79 | ' |
SENIOR_NOTES_AND_LOANS_Details
SENIOR NOTES AND LOANS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2013 | Nov. 30, 2013 | 31-May-13 |
In Millions, unless otherwise specified | One Point Seven Senior Notes Due 2014 [Member] | Five point fifty five senior notes Due 2016 [Member] | Floating Rate Senior Notes Issued Nov 2011 [Member] | Floating Rate Senior Notes Issued Nov 2011 [Member] | |||
Long Term Debt By Components Alternative [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Credit facilities | $0 | $0 | ' | ' | ' | ' | ' |
Senior notes | 9,517 | 12,152 | ' | ' | ' | ' | ' |
Loans, mainly from banks | 1,671 | 1,976 | 1,000 | ' | ' | ' | ' |
Debentures | 15 | 15 | ' | ' | ' | ' | ' |
Total long-term debt | 11,203 | 14,143 | ' | ' | ' | ' | ' |
Current Portion Long Term Debt | -816 | -2,431 | ' | ' | ' | ' | ' |
Notes and Loans, Noncurrent, Total | 10,387 | 11,712 | ' | ' | ' | ' | ' |
Maturities Of Long Term Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' |
2015 | 1,331 | ' | ' | ' | ' | ' | ' |
2016 | 985 | ' | ' | ' | ' | ' | ' |
2017 | 648 | ' | ' | ' | ' | ' | ' |
2018 | 875 | ' | ' | ' | ' | ' | ' |
2019 and thereafter | 6,548 | ' | ' | ' | ' | ' | ' |
Total Long Term Debt Maturities Repayments Of Principal | 10,387 | ' | ' | ' | ' | ' | ' |
Senior Notes Additional Information [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Fair Value Of The Interest Rate Swap Transactions Terminated | 27 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Annual Principal Payment | ' | ' | ' | $1,000 | $500 | $1,100 | $200 |
SENIOR_NOTES_AND_LOANS_Details1
SENIOR NOTES AND LOANS (Details 1) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Senior Notes Issue One [Member] | Syndicated Loan [Member] | Syndicated Loan [Member] | Bank Loan Two [Member] | Bank Loan Two [Member] | Long Credit Agreement 2017 [Member] | Long Credit Agreement 2019 [Member] | Senior Unsecured Fix Rate Credit Agreement [Member] | Senior Unsecure Five Years Term Loan [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | JPY (¥) | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument stated interest rate percentage | 7.20% | ' | ' | ' | ' | ' | ' | 0.99% | 1.42% | ' | ' |
Debt instrument effective interest rate percentage at period end, low end of range | ' | ' | 0.50% | 1.00% | ' | ' | ' | ' | ' | ' | ' |
Debt instrument effective interest rate percentage at period end, high end of range | ' | ' | 6.20% | 2.50% | ' | ' | ' | ' | ' | ' | ' |
Interest rate information | ' | ' | ' | ' | ' | 'denominated in Euro (mainly) and USD | ' | ' | 'The loan bears interest of LIBOR+1.1%. | 'fixed rate term loan credit agreement for 5 and 7 years with interest rates of 0.99% and 1.42%, respectively | 'bearing interest of JPY LIBOR + 0.3% (approximately $0.3 billion). |
Original principal amount of debt instrument | ' | ' | ' | $207 | $376 | $168 | $410 | ' | $1,000 | ¥ 100,500 | ¥ 35,000 |
Principal amount currently outstanding on the debt instrument | $530 | $530 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONVERTIBLE_SENIOR_DEBENTURES_
CONVERTIBLE SENIOR DEBENTURES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Principal amount currently outstanding on the debt instrument | $530 | $530 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jan. 31, 2013 | Aug. 31, 2012 | Nov. 30, 2011 | Oct. 31, 2011 | Jul. 07, 2010 | Jan. 31, 2010 | Mar. 31, 2009 | Aug. 31, 2008 | Nov. 30, 2005 | Apr. 30, 2005 | Jan. 31, 1997 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Mar. 31, 2012 | Jul. 31, 2008 | Feb. 28, 2005 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | |
Teva And Subsidiaries [Member] | Teva And Subsidiaries [Member] | Teva And Subsidiaries [Member] | ||||||||||||||||||||||
Teva Parental Medicines Inc [Member] | Astra Zeneca And Teva [Member] | |||||||||||||||||||||||
Operating Leases Future Minimum Payments Due Abstract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | $117,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $117,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 94,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 76,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 53,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 36,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2019 and thereafter | 76,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases Related Parties Expense | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease And Rental Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117,000,000 | 132,000,000 | 115,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration, Potential Cash Payment | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statement [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate number of product liability cases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' |
Approximate number of cases that have been dismissed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' |
Parties To Tort Proceeding Cases Against Teva In Philadelphia Court | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' |
Plaintiffs CasesIncluding Overlapping Purported Class Action | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 |
Intellectual Property Matters [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pantoprazole Insurance Coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 560,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pantoprazole Settlement Agreement Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Wyeths Protonix Settlement Payment To Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual sales of Provigil | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' |
Annual Sales of Effexor | ' | ' | ' | ' | ' | ' | 2,600,000,000 | ' | ' | ' | 2,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Sales of Lamictal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000,000 | 950,000,000 | ' | ' | ' |
Ciprofloxacin Plaintiffs Proposed Settlement With Bayer | ' | ' | ' | ' | ' | 74,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Sales of Ciprofloxacin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Sales of Nexium | ' | ' | ' | ' | ' | ' | ' | 6,300,000,000 | ' | ' | ' | ' | ' | 6,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Sales of Niaspan | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 416,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Sales of Solodyn | ' | ' | ' | ' | 765,000,000 | ' | ' | ' | 380,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Sales Of Aggrenox | ' | ' | ' | ' | ' | ' | ' | ' | ' | 340,000,000 | ' | ' | ' | 470,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Sales Of Actos | ' | ' | ' | 2,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000,000 | ' | ' | ' | ' | ' | ' | ' |
Annual Sales Of Actoplus | ' | ' | ' | 430,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' |
CivilPenaltyForEachAllegedlyFalseClaimSubmittedRange | 'Under the federal False Claims Act, the government (or relators who pursue the claims without the participation of the government in the case) may seek to recover up to three times the amount of damages in addition to a civil penalty of $5,500 to $11,000 for each allegedly false claim submitted to the government for payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Under the federal False Claims Act, the government (or relators who pursue the claims without the participation of the government in the case) may seek to recover up to three times the amount of damages in addition to a civil penalty of $5,500 to $11,000 for each allegedly false claim submitted to the government for payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cephalon Losses Resulting From The Promotion and Prescription of Actiq | 700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensatory Damages For The State of Illonois | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Sales Of Wellbutrin | ' | ' | $1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EQUITY_Details
EQUITY (Details) | 0 Months Ended | 12 Months Ended | ||||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | USD ($) | USD ($) | ILS | USD ($) | USD ($) | |
Common stock | ' | ' | ' | ' | ' | ' |
Ordinary shares, issued | 947 | ' | 947 | 947 | 944 | ' |
Purchase of treasury shares | ' | ' | $497,000,000 | ' | $1,161,000,000 | $899,000,000 |
Treasury Stock Shares Acquired | ' | ' | 12.8 | 12.8 | 28.1 | 19.6 |
Stock Repurchase Program, Authorized Amount | 1,330,000,000 | 3,000,000,000 | ' | ' | ' | ' |
Treasury stock | ' | ' | ' | ' | ' | ' |
Treasury stock, value | ' | ' | -497,000,000 | ' | -1,161,000,000 | -901,000,000 |
Retained earnings | ' | ' | ' | ' | ' | ' |
Dividends declared and paid | ' | ' | $1.28 | ' | $1.03 | $0.89 |
Additional dividends declared | ' | ' | ' | 1.21 | ' | ' |
Other Comprehensive Income (Loss) Net Of Tax [Abstract] | ' | ' | ' | ' | ' | ' |
Currency translation adjustment, net of tax | 151,000,000 | -455,000,000 | 151,000,000 | ' | 175,000,000 | -455,000,000 |
Unrealized gain (loss) from available-for-sale securities, net of tax | 5,000,000 | -72,000,000 | 5,000,000 | ' | -7,000,000 | -72,000,000 |
Unrealized loss from cash flow hedge | -197,000,000 | -30,000,000 | -197,000,000 | ' | -93,000,000 | -30,000,000 |
Accumulatedothercomprehensiveincomelossotheradjustments | -50,000,000 | -32,000,000 | -50,000,000 | ' | -92,000,000 | -32,000,000 |
Comprehensive income attributable to Teva | ($91,000,000) | ($589,000,000) | ($91,000,000) | ' | ($17,000,000) | ($589,000,000) |
EQUITY_Details_1
EQUITY (Details 1) | 0 Months Ended |
Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingRights | '<>The vesting period of the outstanding options and RSUs is generally 1 to 4 years from the date of grant. The rights of the ordinary shares obtained from the exercise of options or RSUs are identical to those of the other ordinary shares of the Company. The contractual term of these options is primarily for seven years in prior plans and ten years for options granted under the 2010 plan described above. |
EQUITY_Details_2
EQUITY (Details 2) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ' | ' | ' | ' |
Options granted WA fair value | $6.60 | $7.40 | $9.20 | ' |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology Abstract | ' | ' | ' | ' |
Dividend yield | 3.30% | 2.60% | 2.00% | ' |
Expected volatility | 23.00% | 24.00% | 27.00% | ' |
Risk-free interest rate (in dollar terms) | 2.10% | 1.30% | 1.30% | ' |
Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1 | '9 years 12 months 31 days | '8 years 12 months 31 days | '6 years 12 months 31 days | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract | ' | ' | ' | ' |
Closing stock price | $40.08 | ' | ' | ' |
The total number of exercisable options that are in-the-money as of December 31, 2010 | 3,400,000 | ' | ' | ' |
The total intrinsic value of options exercised during the years | $19 | $6 | $35 | ' |
Average market price of Teva's ordinary shares during the year | $38.99 | $41.63 | $45.49 | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested [Roll Forward] | ' | ' | ' | ' |
Employee Service Share Based Compensation Nonvested Award Total Compensation Cost Not Yet Recognized Period For Recognition R S Us | 1.2 | ' | ' | ' |
Employee Service Share Based Compensation Nonvested Award Total Compensation Cost Not Yet Recognized Period For Recognition Stock Option | 1.1 | ' | ' | ' |
Stock Options Plan [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ' | ' | ' | ' |
Balance outstanding at beginning of year | 36,580,000 | 33,298,000 | 28,164,000 | ' |
Granted | 1,701,000 | 7,231,000 | 9,550,000 | ' |
Exercise of options and RSUs by employees, shares | -2,797,000 | -704,000 | -2,295,000 | ' |
Forfeited | -3,003,000 | -3,245,000 | -2,121,000 | ' |
Balance outstanding at end of year | 32,481,000 | 36,580,000 | 33,298,000 | ' |
Weighted average exercise price | $45.05 | $44.40 | $44.92 | $44.77 |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology Abstract | ' | ' | ' | ' |
Options exercisable at end of year | 17,082,000 | 14,230,000 | 11,456,000 | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract | ' | ' | ' | ' |
Weighted average exercise price | $47.30 | $44.30 | $41.01 | ' |
The total unrecognized compensation cost before tax on employee stock options and RSUs | 83 | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested [Roll Forward] | ' | ' | ' | ' |
Granted | $38.37 | $40.50 | $42.56 | ' |
Vested | $32.17 | $33.36 | $30.21 | ' |
Forfeited | $45.51 | $44.76 | $48.61 | ' |
The total unrecognized compensation cost before tax on employee stock options and RSUs | 83 | ' | ' | ' |
Employee Service Share Based Compensation Aggregate Disclosures Abstract | ' | ' | ' | ' |
Restricted stock units RSUs | 40 | 58 | 63 | ' |
Restricted Stock Units [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract | ' | ' | ' | ' |
The total unrecognized compensation cost before tax on employee stock options and RSUs | 64 | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested [Roll Forward] | ' | ' | ' | ' |
RSUs outstanding at beginning of year | 3,744,000,000 | 3,093,000,000 | 2,290,000,000 | ' |
Granted | 289,000,000 | 1,320,000,000 | 1,295,000,000 | ' |
Vested | -1,222,000,000 | -519,000,000 | -389,000,000 | ' |
Forfeited | -299,000,000 | -150,000,000 | -103,000,000 | ' |
RSUs outstanding at end of year | 2,512,000,000 | 3,744,000,000 | 3,093,000,000 | ' |
Weighted-average grant date fair value per share - RSUs at beginning of year | $41.04 | $43.23 | $45.78 | ' |
Granted | $35.80 | $38 | $39.41 | ' |
Vested | $41.04 | $45.65 | $44.43 | ' |
Forfeited | $40.98 | $43.97 | $45.49 | ' |
Weighted-average grant date fair value per share - RSUs at end of year | $40.48 | $41.04 | $43.23 | ' |
The total unrecognized compensation cost before tax on employee stock options and RSUs | 64 | ' | ' | ' |
Employee Service Share Based Compensation Aggregate Disclosures Abstract | ' | ' | ' | ' |
Restricted stock units RSUs | 24 | 24 | 28 | ' |
Omnibus Long Term Share Incentive Plan [Member] | ' | ' | ' | ' |
Employee Service Share Based Compensation Aggregate Disclosures Abstract | ' | ' | ' | ' |
Restricted stock units RSUs | 64 | 82 | 91 | ' |
Tax effect on stock-based compensation expense | 14 | 13 | 13 | ' |
Net effect | $50 | $69 | $78 | ' |
EQUITY_Details_3
EQUITY (Details 3) (USD $) | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | |
Number of ordinary shares issuable upon exercise of outstanding options | ' |
Number of shares | 32,481 |
Weighted average exercise price | $45.05 |
Weighted average remaining life | 5.84 |
Aggregate intrinsic value | $8,714 |
Number of ordinary shares issuable upon exercise of vested options | ' |
Number of shares | 17,082 |
Weighted average exercise price | $47.30 |
Weighted average remaining life | 3.8 |
Aggregate intrinsic value | 1,682 |
Exercise Price Range One [Member] | ' |
Number of ordinary shares issuable upon exercise of outstanding options | ' |
Number of shares | 0 |
Weighted average exercise price | $0 |
Weighted average remaining life | 0 |
Aggregate intrinsic value | 0 |
Number of ordinary shares issuable upon exercise of vested options | ' |
Number of shares | 0 |
Weighted average exercise price | $0 |
Weighted average remaining life | 0 |
Aggregate intrinsic value | 0 |
Exercise Price Range Two [Member] | ' |
Number of ordinary shares issuable upon exercise of outstanding options | ' |
Number of shares | 0 |
Weighted average exercise price | $0 |
Weighted average remaining life | 0 |
Aggregate intrinsic value | 0 |
Number of ordinary shares issuable upon exercise of vested options | ' |
Number of shares | 0 |
Weighted average exercise price | $0 |
Weighted average remaining life | 0 |
Aggregate intrinsic value | 0 |
Exercise Price Range Three [Member] | ' |
Number of ordinary shares issuable upon exercise of outstanding options | ' |
Number of shares | 9 |
Weighted average exercise price | $20.97 |
Weighted average remaining life | 0.5 |
Aggregate intrinsic value | 165 |
Number of ordinary shares issuable upon exercise of vested options | ' |
Number of shares | 9 |
Weighted average exercise price | $20.97 |
Weighted average remaining life | 0.5 |
Aggregate intrinsic value | 165 |
Exercise Price Range Four [Member] | ' |
Number of ordinary shares issuable upon exercise of outstanding options | ' |
Number of shares | 6,195 |
Weighted average exercise price | $38.70 |
Weighted average remaining life | 9.01 |
Aggregate intrinsic value | 8,549 |
Number of ordinary shares issuable upon exercise of vested options | ' |
Number of shares | 1,233 |
Weighted average exercise price | $38.85 |
Weighted average remaining life | 8.73 |
Aggregate intrinsic value | 1,517 |
Exercise Price Range Five [Member] | ' |
Number of ordinary shares issuable upon exercise of outstanding options | ' |
Number of shares | 13,587 |
Weighted average exercise price | $42.32 |
Weighted average remaining life | 5.43 |
Aggregate intrinsic value | 0 |
Number of ordinary shares issuable upon exercise of vested options | ' |
Number of shares | 6,530 |
Weighted average exercise price | $42.65 |
Weighted average remaining life | 2.67 |
Aggregate intrinsic value | 0 |
Exercise Price Range Six [Member] | ' |
Number of ordinary shares issuable upon exercise of outstanding options | ' |
Number of shares | 5,634 |
Weighted average exercise price | $48.31 |
Weighted average remaining life | 6.45 |
Aggregate intrinsic value | 0 |
Number of ordinary shares issuable upon exercise of vested options | ' |
Number of shares | 3,074 |
Weighted average exercise price | $48.47 |
Weighted average remaining life | 5.76 |
Aggregate intrinsic value | 0 |
Exercise Price Range Seven [Member] | ' |
Number of ordinary shares issuable upon exercise of outstanding options | ' |
Number of shares | 6,428 |
Weighted average exercise price | $52.54 |
Weighted average remaining life | 3.37 |
Aggregate intrinsic value | 0 |
Number of ordinary shares issuable upon exercise of vested options | ' |
Number of shares | 5,852 |
Weighted average exercise price | $52.78 |
Weighted average remaining life | 3.04 |
Aggregate intrinsic value | 0 |
Exercise Price Range Eight [Member] | ' |
Number of ordinary shares issuable upon exercise of outstanding options | ' |
Number of shares | 628 |
Weighted average exercise price | $60.92 |
Weighted average remaining life | 3.15 |
Aggregate intrinsic value | 0 |
Number of ordinary shares issuable upon exercise of vested options | ' |
Number of shares | 384 |
Weighted average exercise price | $61.04 |
Weighted average remaining life | 3.15 |
Aggregate intrinsic value | $0 |
EQUITY_Details_4
EQUITY (Details 4) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Currency translation adjustment [Abstract] | ' |
Other comprehensive income (loss) before reclassifications, currency translation adjustments | ($46) |
Currency translation adjustment, included in financial expenses - net | 17 |
Net other comprehensive income (loss) before tax, currency translation adjustments | -29 |
Income tax related to items of other comprehensive income (loss), currency translation adjustments | 5 |
Net other comprehensive income (loss) after tax, currency translation adjustment | -24 |
Unrealized gain (loss) from available-for-sale securities | ' |
Other comprehensive income (loss) before reclassifications, available-for-sale-securities | 18 |
Gains on marketable securities, included in financial expenses - net | -6 |
Net other comprehensive income (loss) before tax, available-for-sale-securities | 12 |
Income tax related to items of other comprehensive income (loss), available-for-sale-securities | 0 |
Net other comprehensive income (loss) after tax, available-for-sale-securities | 12 |
Unrealized (gain) loss from cash flow hedge | ' |
Other comprehensive income (loss) before reclassifications, cash flow hedges | -111 |
Loss on derivative financial instruments, included in net revenues | 7 |
Net other comprehensive income (loss) before tax, cash flow hedges | -104 |
Income tax related to items of other comprehensive income (loss), cash flow hedges | 0 |
Net other comprehensive income (loss) after tax, cash flow hedges | -104 |
Defined benefit plan items | ' |
Other comprehensive income (loss) before reclassifications, defined benefit plan | 20 |
Loss on defined benefit plans, included in various statement of income items | 24 |
Net other comprehensive income (loss) before tax, defined benefit plan | -44 |
Income tax related to items of other comprehensive income (loss), defined benefit plan | 2 |
Net other comprehensive income (loss) after tax, defined benefit plan | -42 |
Changes in the components of accumulated other comprehensive loss: | ' |
Other comprehensive income (loss) before reclassifications | -119 |
Amounts reclassified from accumulated other comprehensive loss before tax: | ' |
Currency translation adjustment, included in financial expenses - net | 17 |
Gains on marketable securities, included in financial expenses - net | -6 |
Loss on derivative financial instruments, included in net revenues | 7 |
Loss on defined benefit plans, included in various statement of income items | 24 |
Amounts reclassified from accumulated other comprehensive loss before tax | 42 |
Net other comprehensive income (loss) before tax | -77 |
Income tax related to items of other comprehensive income (loss) | 3 |
Net other comprehensive income (loss) after tax | ($74) |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments | ' | ' | ' | ' | ' | ' | ' |
The Company and its Israeli subsidiaries | ' | ' | ' | $1,303,000,000 | $1,660,000,000 | $2,051,000,000 | ' |
Non-Israeli subsidiaries | ' | ' | ' | -53,000,000 | 159,000,000 | 905,000,000 | ' |
Income before income taxes | ' | ' | ' | 1,250,000,000 | 1,819,000,000 | 2,956,000,000 | ' |
Effect of acquired research and development in process on non-Israeli companies | ' | ' | ' | ' | ' | ' | 1,402,000,000 |
Income Tax Expense Benefit Continuing Operations By Jurisdiction | ' | ' | ' | ' | ' | ' | ' |
In Israel | ' | ' | ' | 197,000,000 | 5,000,000 | 71,000,000 | ' |
Outside Israel | ' | ' | ' | -240,000,000 | -142,000,000 | 56,000,000 | ' |
Income Tax Expense (Benefit), Total | ' | ' | ' | -43,000,000 | -137,000,000 | 127,000,000 | ' |
Federal Income Tax Expense Benefit Continuing Operations | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | 1,096,000,000 | 564,000,000 | 689,000,000 | ' |
Deferred income taxes-net and uncertain tax positions | ' | ' | ' | -1,139,000,000 | -701,000,000 | -562,000,000 | ' |
Income taxes | ' | ' | ' | -43,000,000 | -137,000,000 | 127,000,000 | ' |
Effective Income Tax Rate Reconciliation | ' | ' | ' | ' | ' | ' | ' |
Statutory tax rate in Israel | ' | ' | ' | 25.00% | 25.00% | 24.00% | ' |
Amendment Sixty Nine Payments | 286,000,000 | ' | ' | 577,000,000 | ' | ' | ' |
Short-term deferred tax assets (liabilities)-net: | ' | ' | ' | ' | ' | ' | ' |
Inventory related | 405,000,000 | 359,000,000 | ' | 405,000,000 | 359,000,000 | ' | ' |
Sales reserves and allowances | 321,000,000 | 300,000,000 | ' | 321,000,000 | 300,000,000 | ' | ' |
Provisions for employee-related obligations, current | 179,000,000 | 242,000,000 | ' | 179,000,000 | 242,000,000 | ' | ' |
Carryforward losses and deductions, current | 81,000,000 | 79,000,000 | ' | 81,000,000 | 79,000,000 | ' | ' |
Provision for legal settlements | 235,000,000 | 128,000,000 | ' | 235,000,000 | 128,000,000 | ' | ' |
Other | 75,000,000 | 20,000,000 | ' | 75,000,000 | 20,000,000 | ' | ' |
Short-term deferred tax assets (liabilities)-gross | 1,296,000,000 | 1,128,000,000 | ' | 1,296,000,000 | 1,128,000,000 | ' | ' |
Valuation allowance-in respect of carryforward losses and deductions that may not be utilized | -249,000,000 | -5,000,000 | ' | -249,000,000 | -5,000,000 | ' | ' |
Short-term deferred tax assets (liabilities)-net | 1,047,000,000 | 1,123,000,000 | ' | 1,047,000,000 | 1,123,000,000 | ' | ' |
Long-term deferred tax assets (liabilities)-net: | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Liabilities Property Plant And Equipment | -181,000,000 | -122,000,000 | ' | -181,000,000 | -122,000,000 | ' | ' |
Intangible assets | -1,412,000,000 | -1,883,000,000 | ' | -1,412,000,000 | -1,883,000,000 | ' | ' |
Provisions for employee related obligations, noncurrent | 19,000,000 | 14,000,000 | ' | 19,000,000 | 14,000,000 | ' | ' |
Carryforward losses and deductions, noncurrent | 1,415,000,000 | 949,000,000 | ' | 1,415,000,000 | 949,000,000 | ' | ' |
Other | 60,000,000 | 24,000,000 | ' | 60,000,000 | 24,000,000 | ' | ' |
Long-term deferred tax assets (liabilities)-gross | -99,000,000 | -1,018,000,000 | ' | -99,000,000 | -1,018,000,000 | ' | ' |
Deferred Tax Assets Valuation Allowance Noncurrent | -542,000,000 | -721,000,000 | ' | -542,000,000 | -721,000,000 | ' | ' |
Long-term deferred tax assets (liabilities)-net | -641,000,000 | -1,739,000,000 | ' | -641,000,000 | -1,739,000,000 | ' | ' |
Deferred tax assets (liabilities) - net | 406,000,000 | -616,000,000 | ' | 406,000,000 | -616,000,000 | ' | ' |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the year | ' | ' | ' | 903,000,000 | 907,000,000 | 795,000,000 | ' |
Increase related to prior year tax positions, net | ' | ' | ' | 29,000,000 | -10,000,000 | -45,000,000 | ' |
Increase related to current year tax positions | ' | ' | ' | 176,000,000 | 151,000,000 | 131,000,000 | ' |
Tax assessments settlements | ' | ' | ' | -461,000,000 | -146,000,000 | -20,000,000 | ' |
Acquisition | ' | ' | ' | 0 | 0 | 52,000,000 | ' |
Other | ' | ' | ' | 18,000,000 | 1,000,000 | -6,000,000 | ' |
Balance at the end of the year | 665,000,000 | 903,000,000 | 907,000,000 | 665,000,000 | 903,000,000 | 907,000,000 | 795,000,000 |
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense | 69,000,000 | 29,000,000 | 21,000,000 | ' | ' | ' | ' |
Balance of accrued potential penalties and interest in unrecognized tax benefits | 75,000,000 | 144,000,000 | 115,000,000 | 75,000,000 | 144,000,000 | 115,000,000 | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense | 69,000,000 | 29,000,000 | 21,000,000 | ' | ' | ' | ' |
Amount Of Tax Exempt Profit Earned By Company From Approved Enterprises | ' | ' | ' | 9,700,000,000 | ' | ' | ' |
Tax Payable Refer To Distributed Dividends | ' | ' | ' | 1,500,000,000 | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes | ' | ' | ' | 1,250,000,000 | 1,819,000,000 | 2,956,000,000 | ' |
Statutory tax rate in Israel | ' | ' | ' | 25.00% | 25.00% | 24.00% | ' |
Theoretical provision for income taxes | ' | ' | ' | 313,000,000 | 455,000,000 | 709,000,000 | ' |
Increase (decrease) in effective tax rate due to: | ' | ' | ' | ' | ' | ' | ' |
IncomeTaxReconciliationChangeInEnactedTaxRate | ' | ' | ' | -535,000,000 | -520,000,000 | -501,000,000 | ' |
IncomeTaxReconciliationOtherAdjustments | ' | ' | ' | 248,000,000 | 0 | 0 | ' |
IncomeTaxReconciliationForeignIncomeTaxRateDifferential | ' | ' | ' | -275,000,000 | -83,000,000 | -143,000,000 | ' |
IncomeTaxReconciliationTaxContingencies | ' | ' | ' | 206,000,000 | 11,000,000 | 62,000,000 | ' |
Income taxes | ' | ' | ' | -43,000,000 | -137,000,000 | 127,000,000 | ' |
Year 2007 [Member] | ' | ' | ' | ' | ' | ' | ' |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense | 213,000,000 | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense | $213,000,000 | ' | ' | ' | ' | ' | ' |
INCOME_TAXESs_Details_1
INCOME TAXESs (Details 1) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Tax Carryforwards And Deductions Expiration Period One [Member] | ' |
Other Tax Carryforward [Line Items] | ' |
First year in period | 1-Jan-15 |
Last year in period | 31-Dec-16 |
Tax effect of unspecified carryforward losses and deductions | $382 |
Tax Carryforwards And Deductions Expiration Period Two [Member] | ' |
Other Tax Carryforward [Line Items] | ' |
First year in period | 1-Jan-17 |
Last year in period | 31-Dec-23 |
Tax effect of unspecified carryforward losses and deductions | 246 |
Tax Carryforwards And Deductions No Expiration [Member] | ' |
Other Tax Carryforward [Line Items] | ' |
Tax effect of unspecified carryforward losses and deductions | 188 |
Tax Carryforwards And Deductions Indefinite [Member] | ' |
Other Tax Carryforward [Line Items] | ' |
Tax effect of unspecified carryforward losses and deductions | $599 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Taxes By Report [Line Items] | ' | ' |
Deferred tax assets (liabilities) - net | $406 | ($616) |
Prepaid Expenses And Other Current Assets [Member] | ' | ' |
Deferred Taxes By Report [Line Items] | ' | ' |
Deferred tax assets (liabilities) - net | 1,084 | 1,142 |
Other Current Liabilities [Member] | ' | ' |
Deferred Taxes By Report [Line Items] | ' | ' |
Deferred tax assets (liabilities) - net | -37 | -19 |
Other Assets Deferred Taxes And Deferred Charges [Member] | ' | ' |
Deferred Taxes By Report [Line Items] | ' | ' |
Deferred tax assets (liabilities) - net | 606 | 110 |
Deferred income taxes [Member] | ' | ' |
Deferred Taxes By Report [Line Items] | ' | ' |
Deferred tax assets (liabilities) - net | ($1,247) | ($1,849) |
FINANCIAL_INSTRUMENTS_AND_RISK2
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | ' | ' | ' | ' |
Stated interest rate on Senior Notes due 2016 | 7.20% | ' | 7.20% | ' |
Proceeds from Accounts Receivable Securitization | $590 | $535 | $3,662 | $3,491 |
FINANCIAL_INSTRUMENTS_AND_RISK3
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Swap [Member] | Senior Notes And Loans [Member] | Designated As Hedging Instrument [Member] | ' | ' |
Derivative Liability, Fair Value, Net [Abstract] | ' | ' |
Derivative Fair Value Of Derivative Liability | ($203) | ($91) |
Foreign Exchange Contract [Member] | Deferred Taxes And Other Current Assets [Member] | Nondesignated [Member] | ' | ' |
Derivative Asset, Fair Value, Net [Abstract] | ' | ' |
Derivative Fair Value Of Derivative Asset | 28 | 20 |
Foreign Exchange Contract [Member] | Accounts Payable [Member] | Nondesignated [Member] | ' | ' |
Derivative Liability, Fair Value, Net [Abstract] | ' | ' |
Derivative Fair Value Of Derivative Liability | -17 | -29 |
Interest Rate Swap [Member] | Long Term Investments And Receivables [Member] | Designated As Hedging Instrument [Member] | ' | ' |
Derivative Asset, Fair Value, Net [Abstract] | ' | ' |
Derivative Fair Value Of Derivative Asset | 2 | 4 |
Interest Rate Swap [Member] | Senior Notes And Loans [Member] | Designated As Hedging Instrument [Member] | ' | ' |
Derivative Liability, Fair Value, Net [Abstract] | ' | ' |
Derivative Fair Value Of Derivative Liability | -233 | -14 |
Interest Rate Swap [Member] | Accounts Payable [Member] | Designated As Hedging Instrument [Member] | ' | ' |
Derivative Liability, Fair Value, Net [Abstract] | ' | ' |
Derivative Fair Value Of Derivative Liability | $0 | ($4) |
FINANCIAL_INSTRUMENTS_AND_RISK4
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 2) (USD $) | Oct. 14, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Swap [Member] | Swap [Member] | |
Financial Expenses Net [Member] | Financial Expenses Net [Member] | Financial Expenses Net [Member] | Financial Expenses Net [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ' |
Gain (loss) recognized in earnings for the period on derivative contracts | ' | ($76) | ($45) | $35 | $18 |
Purchase price in US dollars | $6,500 | ' | ' | ' | ' |
FINANCIAL_INSTRUMENTS_AND_RISK5
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Interest Rate Swap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
InterestRateCashFlowHedgeDerivativeAtFairValueNet | $0 | $1,100 |
InterestRateFairValueHedgeDerivativeAtFairValueNet | 2,500 | 1,550 |
Cross Currency Interest Rate Contract [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
InterestRateCashFlowHedgeDerivativeAtFairValueNet | 1,875 | 1,875 |
Cross Currency Interest Rate Contract Forecasted Work Plan Exposure [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
InterestRateCashFlowHedgeDerivativeAtFairValueNet | $300 | $200 |
FINANCIAL_INSTRUMENTS_AND_RISK6
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 4) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities [Absract] | ' | ' | ' | ' |
Sold receivables at the beginning of the year | ' | ' | $535 | $435 |
Proceeds from sale of receivables | 590 | 535 | 3,662 | 3,491 |
Cash collections (remitted to the owner of the receivables) | ' | ' | 3,635 | 3,393 |
Effect of currency exchange rate changes | ' | ' | 28 | 2 |
Sold receivables at the end of the year | $590 | $535 | $590 | $535 |
FINANCIAL_EXPENSES_NET_Details
FINANCIAL EXPENSES NET (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial Expenses Net [Abstract] | ' | ' | ' |
Income from investments | $32 | $26 | $44 |
Interest expense and other bank charges | -314 | -355 | -234 |
Losses from hedging transactions in connection with the ratiopharm acquisition | 0 | 0 | 0 |
Foreign Currency Transaction (Gain) Losses - net | -8 | -25 | -16 |
Settlement received on auction rate securities portfolio | -109 | -32 | 0 |
Other Than Temporary Impairment of Securities | 0 | 0 | 0 |
Gain From Interest Rate Swap Transaction | 0 | ' | 53 |
Financial expenses-net | ($399) | ($386) | ($153) |
LEGAL_SETTLEMENTS_IMPAIRMENT_R1
LEGAL SETTLEMENTS, IMPAIRMENT, RESTRUCTURING AND ACQUISITION COSTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Impairment Of Long Lived Assets And Contingent Consideration [Abstract] | ' | ' | ' |
Loss Contingency | $495 | $670 | $30 |
Legal settlements | 1,029 | 45 | 441 |
Total | 1,524 | 715 | 471 |
LitigationSettlementExpenseForPantoprazoleLitigation | $930 | ' | ' |
RESTRUCTURING_AND_IMPAIRMENT_D
RESTRUCTURING AND IMPAIRMENT (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Impairment [Line Items] | ' | ' | ' |
Impairment of intangible assets | $393 | $858 | $143 |
Impairment of Intangible Assets, Finite-lived | 227 | 233 | ' |
ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill | 166 | 625 | ' |
Non Current Investments Impairment | 70 | 23 | ' |
Impairment charge during the year on property, plant and equipment | 61 | 190 | ' |
Impairment Restructuring And Others [Abstract] | ' | ' | ' |
Impairment of long-lived assets | 524 | 1,071 | 201 |
Contingent Consideration | 36 | -40 | 0 |
Merger And Acquisition Costs | 27 | 7 | 37 |
Restructuring expenses | 201 | 221 | 192 |
Impairment And Restructuring | 788 | 1,259 | 430 |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Charges made | 201 | 221 | 192 |
Charges made | 201 | 221 | 192 |
Nuvigil [Member] | ' | ' | ' |
Impairment [Line Items] | ' | ' | ' |
ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill | 99 | ' | ' |
Zoely [Member] | ' | ' | ' |
Impairment [Line Items] | ' | ' | ' |
ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill | 54 | ' | ' |
Cenestin [Member] | ' | ' | ' |
Impairment [Line Items] | ' | ' | ' |
Impairment of Intangible Assets, Finite-lived | 23 | ' | ' |
Europe [Member] | ' | ' | ' |
Impairment [Line Items] | ' | ' | ' |
Impairment of Intangible Assets, Finite-lived | 41 | ' | ' |
Mediwound [Member] | ' | ' | ' |
Impairment [Line Items] | ' | ' | ' |
Non Current Investments Impairment | 25 | ' | ' |
Andromeda [Member] | ' | ' | ' |
Impairment [Line Items] | ' | ' | ' |
Non Current Investments Impairment | 15 | ' | ' |
currentMarketAndSupplyChainConditions [Member] | ' | ' | ' |
Impairment [Line Items] | ' | ' | ' |
Impairment of Intangible Assets, Finite-lived | $112 | ' | ' |
SEGMENTS_Details
SEGMENTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | $20,314 | $20,317 | $18,312 |
Gross profit | 10,707 | 10,652 | 9,515 |
Research and development expenses | 1,427 | 1,356 | 1,095 |
Selling and marketing expenses | 4,080 | 3,879 | 3,478 |
Segments Profitability | 1,649 | 2,205 | 3,109 |
Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Segments Profitability | 6,223 | 6,756 | 5,966 |
Generics [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 9,906 | 10,385 | 10,196 |
Gross profit | 4,095 | 4,518 | 4,605 |
Research and development expenses | 494 | 485 | 459 |
Selling and marketing expenses | 1,945 | 1,971 | 2,087 |
Segments Profitability | 1,656 | 2,062 | 2,059 |
Specialty [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 8,402 | 8,150 | 6,493 |
Gross profit | 7,326 | 7,173 | 5,622 |
Research and development expenses | 909 | 793 | 616 |
Selling and marketing expenses | 1,850 | 1,686 | 1,099 |
Segments Profitability | $4,567 | $4,694 | $3,907 |
SEGMENTS_Details_1
SEGMENTS (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Segments Profitability | $1,649 | $2,205 | $3,109 |
Amounts not allocated to segments [Abstract] | ' | ' | ' |
Depreciation And Amortization | 1,642 | 1,708 | 1,069 |
General and administrative expenses | 1,239 | 1,238 | 932 |
Legal Settlements And Loss Contingencies | 1,524 | 715 | 471 |
Impairments Restructuring And Others | 788 | 1,259 | 430 |
Financial expenses - net | -399 | -386 | -153 |
Income before income taxes | 1,250 | 1,819 | 2,956 |
Segments and Other activities [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Segments Profitability | 6,437 | 6,953 | 6,185 |
Segments [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Segments Profitability | 6,223 | 6,756 | 5,966 |
Generics [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Segments Profitability | 1,656 | 2,062 | 2,059 |
Specialty [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Segments Profitability | 4,567 | 4,694 | 3,907 |
All Other Segments [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Segments Profitability | 214 | 197 | 219 |
Segment Reconciling Items [Member] | ' | ' | ' |
Amounts not allocated to segments [Abstract] | ' | ' | ' |
Depreciation And Amortization | 1,180 | 1,272 | 707 |
General and administrative expenses | 1,239 | 1,238 | 932 |
Legal Settlements And Loss Contingencies | 1,524 | 715 | 471 |
Impairments Restructuring And Others | 788 | 1,259 | 430 |
Otehr Unallocated Amounts | $57 | $264 | $536 |
SEGMENTS_Details_2
SEGMENTS (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | $20,314 | $20,317 | $18,312 |
Information About Major Customers And Products [Abstract] | ' | ' | ' |
The net sales to the Companys largest customer as a percentage of total net sales | 17.00% | 16.00% | 14.00% |
Percentage Of Total Receivables For Largest Customer | 2.00% | ' | ' |
Percentage of Total Revenue for Another Customer | 13.00% | ' | ' |
Segment Geographical Groups Of Countries Group One Member | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 9,906 | 10,385 | 10,196 |
Segment Geographical Groups Of Countries Group One Member | Generics [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 4,181 | 4,381 | 3,957 |
Segment Geographical Groups Of Countries Group One Member | Branded [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 3,485 | 3,482 | 3,929 |
Segment Geographical Groups Of Countries Group One Member | Other Products [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 2,240 | 2,522 | 2,310 |
Segment Geographical Groups Of Countries Group Two Member | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 8,402 | 8,150 | 6,493 |
Segment Geographical Groups Of Countries Group Two Member | Generics [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 6,026 | 5,857 | 4,804 |
Segment Geographical Groups Of Countries Group Two Member | Branded [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 1,706 | 1,575 | 1,108 |
Segment Geographical Groups Of Countries Group Two Member | Other Products [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 670 | 718 | 581 |
Segment Geographical Groups Of Countries Group Three [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 2,006 | 1,782 | 1,623 |
Segment Geographical Groups Of Countries Group Three [Member] | Generics [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 254 | 200 | 39 |
Segment Geographical Groups Of Countries Group Three [Member] | Branded [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | 797 | 741 | 760 |
Segment Geographical Groups Of Countries Group Three [Member] | Other Products [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Net sales by geographic area | $955 | $841 | $824 |
SEGMENTS_Details_3
SEGMENTS (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Product Information [Line Items] | ' | ' | ' |
Net revenues | $20,314 | $20,317 | $18,312 |
Branded CNS [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 5,505 | 5,464 | 4,412 |
Branded Respiratory Products [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 905 | 856 | 878 |
Branded Womens Health Products [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 463 | 448 | 438 |
Branded Oncology Products [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 982 | 860 | 268 |
Other Branded Products [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 547 | 522 | 497 |
Branded C N S Copaxone [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 4,328 | 3,996 | 3,570 |
Branded C N S Provigil [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 91 | 417 | 350 |
Branded C N S Azilect [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 371 | 330 | 290 |
Branded C N S Nuvigil [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 320 | 347 | 86 |
Branded Respiratory Proair [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 429 | 406 | 436 |
Branded Respiratory Qvar [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 328 | 297 | 305 |
Branded Oncology Treanda [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | 709 | 608 | 131 |
Branded [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Net revenues | $8,402 | $8,150 | $6,493 |
SEGMENTS_Details_4
SEGMENTS (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | $6,635 | $6,315 | $5,947 |
Israel [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | 1,834 | 1,649 | 1,459 |
United States [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | 852 | 896 | 1,053 |
Croatia [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | 479 | 415 | 311 |
Hungary [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | 492 | 644 | 765 |
Germany [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | 403 | 367 | 317 |
Japan [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | 526 | 498 | 388 |
Other Countries [Member] | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Property, plant and equipment, net | $2,049 | $1,846 | $1,654 |
SEGMENTS_Details_5
SEGMENTS (Details 5) (USD $) | 12 Months Ended | ||
In Billions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting [Abstract] | ' | ' | ' |
CopaxoneUS revenues | $3.20 | ' | ' |
Percentage Of CopaxoneRevenues Of Total US | 30.00% | ' | ' |
Copaxone Outside US Revenues | 1.1 | ' | ' |
Percentage Of Copaxone Revenues Of Total Non US | 11.00% | ' | ' |
Profitability Of MS | $3.30 | $3 | $2.80 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income And Weighted Average Number Of Shares Used In Computation Of Basic And Diluted Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' |
Net income attributable to Teva | ' | ' | ' | $1,269 | $1,963 | $2,759 |
Interest expense on convertible senior debentures, and issuance costs, net of tax benefits | ' | ' | ' | 0 | 0 | 0 |
Net income used for the computation of diluted earnings per share | ' | ' | ' | $1,269 | $1,963 | $2,759 |
Weighted average number of shares used in the computation of basic earnings per share | ' | ' | ' | 849 | 872 | 890 |
Additional shares from the assumed exercise of employee stock options and unvested RSU's | ' | ' | ' | 1 | 1 | 2 |
Weighted average number of additional shares issued upon the assumed conversion of convertible senior debentures | ' | ' | ' | 0 | 0 | 1 |
Weighted average number of shares used in the computation of diluted earnings per share | 7 | 6 | 4 | 850 | 873 | 893 |
Ordinary And Special Shares Outstanding [Abstract] | ' | ' | ' | ' | ' | ' |
Ordinary shares - issued | 947 | 944 | ' | 947 | 944 | ' |
Treasury, shares | 99 | 87 | ' | 99 | 87 | ' |
SCHEDULE_II_VALUATION_AND_QUAL2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Allowance For Doubtful Accounts Current Member | ' | ' | ' | ' |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | ' |
Charged to costs and expenses | $44 | $32 | $20 | ' |
Charged to other accounts | 3 | 5 | -6 | ' |
Deductions | -5 | -8 | -24 | ' |
Ending balance | 187 | 145 | 116 | 126 |
Valuation Allowance Tax Carryforward Losses And Deductions [Member] | ' | ' | ' | ' |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | ' |
Charged to costs and expenses | 182 | 384 | 124 | ' |
Charged to other accounts | 0 | 2 | 198 | ' |
Deductions | -117 | -112 | -81 | ' |
Ending balance | $791 | $726 | $452 | $211 |