Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 818,686 | |
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 | 2,017 | |
Document Fiscal Period Focus | Q4 | |
Entity Common Stock Shares Outstanding | 1,123,402,689 | |
Entity Public Float | $ 1,016,877,139 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF INCOME | |||
Net revenues | $ 22,385,000,000 | $ 21,903,000,000 | $ 19,652,000,000 |
Cost of sales | 11,560,000,000 | 10,044,000,000 | 8,296,000,000 |
Gross profit | 10,825,000,000 | 11,859,000,000 | 11,356,000,000 |
Research and development expenses | 1,848,000,000 | 2,111,000,000 | 1,525,000,000 |
Selling and marketing expenses | 3,656,000,000 | 3,860,000,000 | 3,478,000,000 |
General and administrative expenses | 1,330,000,000 | 1,285,000,000 | 1,360,000,000 |
Other Asset Impairments, restructuring and other items | 5,074,000,000 | 1,419,000,000 | 1,176,000,000 |
Legal Settlements And Loss Contingencies | 500,000,000 | 899,000,000 | 631,000,000 |
Total Other Income | 1,199,000,000 | 769,000,000 | 166,000,000 |
Goodwill Impairment | 17,100,000,000 | 900,000,000 | 0 |
Operating (loss) income | (17,484,000,000) | 2,154,000,000 | 3,352,000,000 |
Financial expenses - net | 895,000,000 | 1,330,000,000 | 1,000,000,000 |
Income (loss) before income taxes | (18,379,000,000) | 824,000,000 | 2,352,000,000 |
Income taxes (Benefit) | (1,933,000,000) | 521,000,000 | 634,000,000 |
Share in (profits) losses of associated companies net | 3,000,000 | (8,000,000) | 121,000,000 |
Net income (loss) | (16,449,000,000) | 311,000,000 | 1,597,000,000 |
Net income (loss) attributable to non-controlling interests | (184,000,000) | (18,000,000) | 9,000,000 |
Net income (loss) attributable to Teva | (16,265,000,000) | 329,000,000 | 1,588,000,000 |
Accrued dividends on preferred shares | 260,000,000 | 261,000,000 | 15,000,000 |
Net income (loss) attributable to ordinary shareholders | $ (16,525,000,000) | $ 68,000,000 | $ 1,573,000,000 |
Earnings per share attributable to ordinary shareholders: | |||
Basic | $ (16.26) | $ 0.07 | $ 1.84 |
Diluted | $ (16.26) | $ 0.07 | $ 1.82 |
Weighted average number of shares (in millions): | |||
Basic | 1,016 | 955 | 855 |
Diluted | 1,016 | 961 | 864 |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Comprehensive Income [Abstract] | |||
Net income (loss) | $ (16,449,000,000) | $ 311,000,000 | $ 1,597,000,000 |
Other Comprehensive Income (Loss), Net Of Tax [Abstract] | |||
Currency translation adjustment | 1,516,000,000 | (445,000,000) | (1,102,000,000) |
Unrealized gain (loss) on derivative financial instruments, net | (140,000,000) | (477,000,000) | 135,000,000 |
Unrealized gain (loss) on available-for-sale securities, net | 3,000,000 | (319,000,000) | 319,000,000 |
Unrealized gain (loss) on defined benefit plans | (10,000,000) | (23,000,000) | 35,000,000 |
Total Other Comprehensive Income (Loss) | 1,369,000,000 | (1,264,000,000) | (613,000,000) |
Total Comprehensive Income (loss) | (15,080,000,000) | (953,000,000) | 984,000,000 |
Comprehensive income (loss) attributable to non-controlling interests | (121,000,000) | (78,000,000) | 8,000,000 |
Comprehensive income (loss) attributable to Teva | $ (14,959,000,000) | $ (875,000,000) | $ 976,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 963,000,000 | $ 988,000,000 |
Trade receivables | 7,128,000,000 | 7,523,000,000 |
Inventories | 4,924,000,000 | 4,954,000,000 |
Assets Held For Sale | 566,000,000 | 841,000,000 |
Prepaid Expenses | 1,100,000,000 | 1,629,000,000 |
Other Current Assets | 701,000,000 | 1,293,000,000 |
Total current assets | 15,382,000,000 | 17,228,000,000 |
Other non-current assets | 932,000,000 | 1,235,000,000 |
Deferred Income Taxes | 574,000,000 | 625,000,000 |
Property, plant and equipment, net | 7,673,000,000 | 8,073,000,000 |
Identifiable intangible assets, net | 17,640,000,000 | 21,487,000,000 |
Goodwill | 28,414,000,000 | 44,409,000,000 |
Total assets | 70,615,000,000 | 93,057,000,000 |
Current liabilities: | ||
Short-term debt | 3,646,000,000 | 3,276,000,000 |
Sales Reserves And Allowances | 7,881,000,000 | 7,839,000,000 |
Trade payables | 2,069,000,000 | 2,157,000,000 |
Employee Related Obligations | 549,000,000 | 859,000,000 |
Accrued Expenses | 3,014,000,000 | 3,405,000,000 |
Liabilities Held For Sale | 38,000,000 | 116,000,000 |
Other current liabilities | 724,000,000 | 836,000,000 |
Total current liabilities | 17,921,000,000 | 18,488,000,000 |
Long-term liabilities: | ||
Deferred income taxes | 3,277,000,000 | 5,413,000,000 |
Other taxes and long term liabilities | 1,843,000,000 | 1,639,000,000 |
Senior notes and loans | 28,829,000,000 | 32,524,000,000 |
Total long term liabilities | 33,949,000,000 | 39,576,000,000 |
Total liabilities | 51,870,000,000 | 58,064,000,000 |
Teva shareholders' equity: | ||
Preferred Shares | 3,631,000,000 | 3,620,000,000 |
Ordinary shares | 54,000,000 | 54,000,000 |
Additional paid-in capital | 23,479,000,000 | 23,409,000,000 |
Retained earnings | (3,803,000,000) | 13,607,000,000 |
Accumulated other comprehensive loss | (1,853,000,000) | (3,159,000,000) |
Treasury shares | (4,149,000,000) | (4,194,000,000) |
Stockholders' equity attributable to Teva shareholders | 17,359,000,000 | 33,337,000,000 |
Non-controlling interests | 1,386,000,000 | 1,656,000,000 |
Total equity | 18,745,000,000 | 34,993,000,000 |
Total liabilities and equity | $ 70,615,000,000 | $ 93,057,000,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Ordinary Shares Number of shares | Ordinary Shares Stated Value [Member] | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Total Tevas share holders equity | Noncontrolling Interest | MCPS |
Exercise Of Options By Employees And Vested RSUs | $ 388,000,000 | $ 0 | $ 225,000,000 | $ 163,000,000 | $ 388,000,000 | |||||
Exercise Of Options By Employees And Vested RSUs, shares | 5,000,000 | |||||||||
Ordinary shares issuance | 3,291,000,000 | 54,000,000 | 2,000,000 | 3,289,000,000 | 3,291,000,000 | |||||
Stock-based compensation expense | $ 117,000,000 | $ 117,000,000 | $ 117,000,000 | |||||||
Dividends To Ordinary Shareholders | (1,155,000,000) | $ (1,155,000,000) | (1,155,000,000) | |||||||
Purchase of treasury shares | (439,000,000) | (439,000,000) | (439,000,000) | |||||||
Accrued Dividends to preferred shareholders | (15,000,000) | (15,000,000) | (15,000,000) | |||||||
Balance at Dec. 31, 2014 | 23,355,000,000 | $ 50,000,000 | 14,121,000,000 | 14,436,000,000 | $ (1,343,000,000) | (3,951,000,000) | 23,313,000,000 | $ 42,000,000 | ||
Shares, balance at Preiod End at Dec. 31, 2015 | 1,016,000,000 | |||||||||
Balance at Dec. 31, 2015 | 29,927,000,000 | 52,000,000 | 17,757,000,000 | 14,851,000,000 | (1,955,000,000) | (4,227,000,000) | 29,769,000,000 | 158,000,000 | $ 3,291,000,000 | |
Total Comprehensive Income (loss) | 984,000,000 | 1,588,000,000 | (612,000,000) | 976,000,000 | 8,000,000 | |||||
Disposition Of Non Controlling Interests | 103,000,000 | 103,000,000 | ||||||||
Shares, balance at Period Start at Dec. 31, 2014 | 957,000,000 | |||||||||
Mcps Issuance | 3,291,000,000 | 3,291,000,000 | ||||||||
Other | 7,000,000 | $ 0 | 5,000,000 | (3,000,000) | 2,000,000 | 5,000,000 | ||||
Exercise Of Options By Employees And Vested RSUs | 35,000,000 | 0 | 2,000,000 | 33,000,000 | 35,000,000 | |||||
Exercise Of Options By Employees And Vested RSUs, shares | 1,000,000 | |||||||||
Ordinary shares issuance value | 5,391,000,000 | 2,000,000 | 5,389,000,000 | 5,391,000,000 | ||||||
Ordinary shares issuance | 106,000,000 | |||||||||
Stock-based compensation expense | 159,000,000 | 159,000,000 | 159,000,000 | |||||||
Dividends To Ordinary Shareholders | (1,303,000,000) | (1,303,000,000) | (1,303,000,000) | |||||||
Accrued Dividends to preferred shareholders | (261,000,000) | (261,000,000) | (261,000,000) | |||||||
Acquisition of non-controlling interests | 1,684,000,000 | 111,000,000 | 111,000,000 | 1,573,000,000 | ||||||
Shares, balance at Preiod End at Dec. 31, 2016 | 1,123,000,000 | |||||||||
Balance at Dec. 31, 2016 | 34,993,000,000 | 54,000,000 | 23,409,000,000 | 13,607,000,000 | (3,159,000,000) | (4,194,000,000) | 33,337,000,000 | 1,656,000,000 | 3,620,000,000 | |
Total Comprehensive Income (loss) | (953,000,000) | 329,000,000 | (1,204,000,000) | (875,000,000) | (78,000,000) | |||||
Shares, balance at Period Start at Dec. 31, 2015 | 1,016,000,000 | |||||||||
Mcps Issuance | 329,000,000 | 329,000,000 | 329,000,000 | |||||||
Other | (15,000,000) | $ 0 | (9,000,000) | (9,000,000) | (18,000,000) | 3,000,000 | ||||
Exercise Of Options By Employees And Vested RSUs | 0 | 0 | (45,000,000) | 45,000,000 | 0 | |||||
Exercise Of Options By Employees And Vested RSUs, shares | 1,000,000 | |||||||||
Stock-based compensation expense | 133,000,000 | 133,000,000 | 133,000,000 | |||||||
Dividends To Ordinary Shareholders | (901,000,000) | (901,000,000) | (901,000,000) | |||||||
Shares, balance at Preiod End at Dec. 31, 2017 | 1,124,000,000 | |||||||||
Balance at Dec. 31, 2017 | 18,745,000,000 | $ 54,000,000 | 23,479,000,000 | (3,803,000,000) | (1,853,000,000) | $ (4,149,000,000) | 17,359,000,000 | 1,386,000,000 | $ 3,631,000,000 | |
Total Comprehensive Income (loss) | (15,080,000,000) | (16,265,000,000) | $ 1,306,000,000 | (14,959,000,000) | (121,000,000) | |||||
Dividends To Preferred Shareholders | (249,000,000) | (249,000,000) | (249,000,000) | |||||||
Transactions With Non Controlling Interests | (111,000,000) | 0 | (111,000,000) | |||||||
Shares, balance at Period Start at Dec. 31, 2016 | 1,123,000,000 | |||||||||
Other | $ (40,000,000) | $ 0 | $ (7,000,000) | $ 5,000,000 | $ (2,000,000) | $ (38,000,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net income (loss) | $ (16,449,000,000) | $ 311,000,000 | $ 1,597,000,000 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation and amortization | 2,112,000,000 | 1,524,000,000 | 1,308,000,000 |
Net change in operating assets and liabilities | (363,000,000) | 1,219,000,000 | 967,000,000 |
Deferred Income Taxes Net And Uncertain Tax Positions | (2,331,000,000) | 15,000,000 | 237,000,000 |
Venezuela Deconsolidation Loss | 383,000,000 | 0 | 0 |
Research and development in process | 175,000,000 | 422,000,000 | 35,000,000 |
Venezuela impairment of net monetary assets | 42,000,000 | 603,000,000 | |
Impairment of long lived assets | 20,882,000,000 | 1,645,000,000 | 361,000,000 |
Impairment Of Equity Investment - Net | 0 | 124,000,000 | |
Stock-based compensation | 133,000,000 | 124,000,000 | 117,000,000 |
Other items | 13,000,000 | (14,000,000) | 146,000,000 |
Other-than-temporary impairment | 0 | 140,000,000 | 736,000,000 |
Net (gain) loss from sale of long-lived assets and investments | (1,090,000,000) | (764,000,000) | (86,000,000) |
Net cash provided by operating activities | 3,507,000,000 | 5,225,000,000 | 5,542,000,000 |
Investing activities: | |||
Acquisitions of businesses, net of cash acquired | 43,000,000 | (36,148,000,000) | (3,309,000,000) |
Purchases of property, plant and equipment | (874,000,000) | (901,000,000) | (772,000,000) |
Purchases of investments and other assets | (200,000,000) | (481,000,000) | (2,003,000,000) |
Proceeds from sales of long-lived assets and investments | 3,477,000,000 | 2,002,000,000 | 524,000,000 |
Other investing activities | (282,000,000) | (212,000,000) | (5,000,000) |
Net cash provided by (used in) investing activities | 2,164,000,000 | (35,740,000,000) | (5,565,000,000) |
Financing activities: | |||
Proceeds from issuance of ordinary shares, net of issuance costs | 0 | 329,000,000 | 3,291,000,000 |
Proceeds from issuance of mandatory convertible preferred shares, net of issuance costs | 0 | 329,000,000 | 3,291,000,000 |
Purchase of treasury shares | 0 | 0 | (439,000,000) |
Net change in short-term debt | (1,683,000,000) | 1,998,000,000 | 29,000,000 |
Dividends paid on ordinary shares | (901,000,000) | (1,303,000,000) | (1,155,000,000) |
Dividends paid on preferred shares | (260,000,000) | (255,000,000) | 0 |
Dividends Paid To Non Controlling Interest | (38,000,000) | 0 | 0 |
Proceeds from exercise of options by employees | 0 | 35,000,000 | 388,000,000 |
Proceeds from long-term loans and other long-term liabilities, net of issuance costs | 506,000,000 | 25,252,000,000 | 2,099,000,000 |
Repayment of long-term loans And Other Long Term Liabilities | (3,300,000,000) | (999,000,000) | (2,521,000,000) |
Other financing activities | (74,000,000) | (169,000,000) | (178,000,000) |
Net cash provided by (used in) financing activities | (5,750,000,000) | 25,217,000,000 | 4,805,000,000 |
Translation adjustment on cash and cash equivalents | 54,000,000 | (660,000,000) | (62,000,000) |
Net change in cash and cash equivalents | (25,000,000) | (5,958,000,000) | 4,720,000,000 |
Balance of cash and cash equivalents at beginning of period | 988,000,000 | 6,946,000,000 | 2,226,000,000 |
Balance of cash and cash equivalents at end of period | 963,000,000 | 988,000,000 | 6,946,000,000 |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for Interest | 795,000,000 | 290,000,000 | 243,000,000 |
Cash paid during the year for Income taxes, net of refunds | 106,000,000 | 341,000,000 | 802,000,000 |
Shares Issuance To Allergan plc for the Actavis Generics acquisition | 5,065,000,000 | 0 | |
Shares Transferred To Takeda As Part Of The Establishment Of Teva Takeda | 1,825,000,000 | 0 | |
Actavis Generics Contingent Consideration | 302,000,000 | 0 | |
Net change in operating assets and liabilities | |||
Trade Receivable | 514,000,000 | 343,000,000 | 763,000,000 |
Inventories | 199,000,000 | 372,000,000 | 129,000,000 |
Other current assets | 658,000,000 | (517,000,000) | 87,000,000 |
Trade payable accrued expenses employee related obligations and other current liabilities | (1,801,000,000) | 640,000,000 | (12,000,000) |
Inventory Step Up | 67,000,000 | 381,000,000 | 0 |
Net change in operating assets and liabilities | $ (363,000,000) | $ 1,219,000,000 | $ 967,000,000 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Basis Of Presentation And 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. Basis of presentation and u se of estimates The co nsolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In preparing the Company’s consolidated financial statements, management is required to make estimates and assumpt ions 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 purchase price allocation on acquisitions including determination of useful lives and contingent consideration; assessing c ompliance with debt covenants; determining the valuation and recoverability of intangible assets and goodwill; and assessing sales reserves and allowances, uncertain tax positions, valuation allowances, contingencies, inventory valuation and restructuring. Accounting for Venezuelan Operations Until November 30, 2017, the financial position and results of operations of Teva's Venezuelan business, conducted through a number of wholly-owned subsidiaries, were included in Teva's consolidated financial statements and reported under highly-inflationary accounting principles, with the functional currency of the U.S. dollar. Hyper-Inflation Venezuela has experienced hyper-inflation in recent years. The government of Venezuela currently has two official exchange rates: the DIPRO rate of 10 bolivars per U.S. dollar (which replaced the CENCOEX rate of 6.3 in March 2016) and the DICOM rate, which fluctuates and was 3,345 bolivars per U.S. dollar as of December 31, 2017. Following the announcement of the Venez uelan Central Bank and the Ministry for Banking and Finance of FX Regulation 35, effective March 10, 2016, the DIPRO rate was used to settle transactions involving the importation, manufacture and distribution of pharmaceutical products. Teva used the CENC OEX rate until March 2016 and then replaced it with the DIPRO rate to report its Venezuelan financial position, results of operations and cash flows, since it believed that the nature of its business operations in Venezuela, which include the importation, manufacture and distribution of pharmaceutical products, qualified for the most preferential rate permitted by law. In November 2016, the unofficial exchange rate continued to increase at an accelerated rate, indicating further economic distress. This, tog ether with a decrease in scope of transactions involving the importation, manufacture and distribution of pharmaceutical products that were settled using the DIPRO rate of 10 bolivars per dollar, led Teva to replace the official DIPRO rate it had used to r eport its Venezuelan financial position, results of operations and cash flows with a blended exchange rate of 273 bolivar per U.S. dollar. Teva began using this blended exchange rate as of December 1, 2016, which was determined based on a weighted average of the DIPRO and DICOM exchange rates affecting Teva's transactions. The blended rate was reviewed and updated on a quarterly basis. As a result of the developments described above, Teva impaired its monetary balance sheet items related to Venezuela twice in 2016, with a devaluation charge of $246 million in the first quarter of 2016, following introduction of the DIPRO rate, and an additional devaluation charge of $500 million in the fourth quarter of 2016, following Teva's decision to adopt a blended rate . In addition, Teva recorded $133 million in cost of sales, to adjust its inventory balance in Venezuela to reflect the U.S dollar net realizable value of the inventory. During February 2017 and again in May 2017, Teva updated its blended exchange rate to 380 and 640 bolivar per dollar, respectively. In the third quarter of 2017, Teva started to use the DICOM rate of 3,345 bolivar per dollar, which was not materially different from the blended rate that would have been used instead of the DICOM rate. Contr ol The evolving economic and political conditions in Venezuela, including increasingly restrictive currency exchange control regulations and reduced access to U.S. dollars through official currency exchange markets, resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar, which significantly impacted Teva's ability to effectively manage its Venezuelan businesses, including restrictions on the ability of the Venezuelan businesses to import certain raw ma terials to maintain normal production and to settle U.S. dollar-denominated obligations. The currency exchange restrictions, combined with other regulations that have limited Teva's ability to import certain raw materials, also increasingly constrained Tev a's ability to make and execute operational decisions regarding its businesses in Venezuela. In addition, the inability of the Venezuelan businesses to pay dividends, which remain subject to Venezuelan government approvals, restricted the ability to realiz e the earnings generated out of the Venezuelan businesses. Teva expects these conditions to continue for the foreseeable future. Furthermore, the fourth quarter of 2017 was the longest duration of time that Teva experienced without receiving any approvals , through regular conversion or auctions, from the government for new imports or payments for existing import liabilities. These approvals had been key to allowing management to continue the business at a level consistent with its plans. Without such appro vals, the Venezuelan business is unable to import materials at the price and quantity needed to continue its operations. In addition, since April 2017, the opposition party in Venezuela has organized protests on a daily basis and many of the marches and de monstrations have resulted in rioting and violence. This is a significant change from the spo r a dic protests previously and has impacted the ability of employees to arrive safely at their assigned work location and complete their tasks. The result is a significant decline in the units produced and available for sale. Teva attempted to identify alternative currency exchange mechanisms that would allow acc ess to U.S. dollars; however during the fourth quarter of 2017 the Company determined that the alternative was inconsistent and non-compliant with its business standards. Deconsolidation and impairment As a result of these factors, Teva concluded that a s of November 30, 2017, it did not meet the accounting criteria for control over its wholly-owned Venezuelan subsidiaries and that it no longer has significant influence over such subsidiaries. In its conclusion, Teva considered the FASB guidance in accord ance with ASC Topic 830 “Foreign Currency Matters” and ASC Topic 810 “Consolidation” regarding the propriety of implementing consolidation, for both the variable int erest entity ("VIE") and voting model, or equity method accounting when other than temporar y lack of exchangeability exists. The VIE model requires the primary beneficiary to demonstrate both the power to direct activities of the VIE that most significantly impact the VIE’s economic performance, and the obligation to absorb losses from or right to receive benefits of the VIE that could potentially be significant to the VIE. Based on the analysis above, Teva believes it holds neither power nor benefit over its Venezuelan subsidiaries. Furthermore, Teva has no material financial commitment to its Venezuela subsidiaries, such as liquidity arrangements, guarantees or other commitments or any other exposure to loss from its Venezuelan subsidiaries. Any potential material financial commitment in the future will be disclosed pursuant to the accounting r equirements. Therefore, effective November 30, 2017, Teva deconsolidated its Venezuelan subsidiaries and began accounting for its investments using the cost method of accounting. As of November 30, 2017, Teva’s net monetary balance sheet items in Venezuel a included approximately $ 1 3 million in cash. Accordingly, t he Company recorded a deconsolidation charge of $396 million under other asset impairments, restructuring and other items in connection with its subsidiaries in Venezuela, of which $326 million re sulted from reclassification of currency translation adjustments from accumulated other comprehensive income to the statement of income, relat ing mainly to Teva's generics medicines segment. The estimated fair value of the investments was immaterial based on expected future cash flow, considering ongoing hyper-inflation, economic and political uncertainty in Venezuela. The assigned values are considered Level 3 measurements within the fair value hierarchy. In future periods, Teva's financial results will include sales of finished goods to the Venezuelan subsidiaries to the extent cash payments will be received from these subsidiaries, while cost of sales will be recorded when goods are imported to Venezuela. The Venezuelan subsidiaries results were immater ial in terms of assets, liabilities, operating results and cash flows for the eleven months ended November 30, 2017. Teva will continue to monitor the conditions in Venezuela and their impact on its prospective accounting treatment and related disclosure s. Functional currency A major part of the Group’s operations is carried out by the Company in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”). 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 exc hange 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 (loss) in the consolidated statements of comprehensive income (loss). Pri nciples of consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries and VIE for which the Company is considered the primary beneficiary. For those consolidated subsidiaries where Teva owns less than 100%, the outside shareholders’ interests are shown as non-controlling interests in equity. Investments in affiliates over which the Company has significant influence but not a controlling interest, are carried on the equity basis. For VIEs, th e 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 on consolidat ion; profits from intercompany sales, not yet realized outside the Group, are also eliminated. b. New accounting pronouncements Recently adopted accounting pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance on goodwill impairment testing. The new guidance reduces the complexity of goodwill impairment tests by no longer requiring entities to determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Teva adopted the provisions of this update in the first quarter of 2017. Once impairment is recorded under the new guidance, additi onal impairment may occur if the fair value of the reporting unit continues to decline. The amount of goodwill impairment charges recorded in 2017 was determined in accordance with this new guidance. In January 2017, the FASB issued guidance on the differ entiation between acquisitions of assets and businesses. The new guidance dictates that, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiabl e assets, it should be treated as an acquisition or disposal of an asset. The new guidance also requires that to be considered a business, a set of integrated activities and assets must include, at a minimum, an input and a substantive process that togethe r significantly contribute to the ability to create outputs, without regard as to whether a market participant could replace missing elements. In addition, the new guidance narrows the definition of the term "output" to make it consistent with how outputs are described in the updated revenue recognition guidance. The guidance is effective for the fiscal year beginning on January 1, 2018, including interim periods within that year (early adoption is permitted). Teva adopted the provisions of this update in t he first quarter of 2017 with no impact on its consolidated financial statements. In November 2016, the FASB issued guidance on the treatment of restricted cash in the statements of cash flows. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for the fiscal year beginning on January 1, 2018, in cluding interim periods within that year (early adoption is permitted). Teva adopted the provisions of this update in the first quarter of 2017. The application of the guidance did not have a material impact on Teva's consolidated financial statements. In October 2016, the FASB issued guidance on accounting for consolidation of interests held through related parties that are under common control. The amended guidance designates the primary beneficiary of a VIE as the reporting entity that has a controlli ng financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. Teva adopted the provisions of this up date in the first quarter of 2017. The application of the guidance did not have a material impact on Teva’s consolidated financial statements. In October 2016, the FASB issued guidance on income taxes on intra-entity transfers. The guidance eliminates the exception to the recognition requirements under the standard for intra-entity transfers of an asset other than inventory. As a result, an entity should recognize the income tax consequences when the transfer of assets other than inventory occurs. Teva adopted the provisions of this update in the first quarter of 2017. The application of the guidance increased the deferred tax liabilities in the consolidated balance sheet by $31 million in the first quarter of 2017. Additionally, certain balance sheet it ems have been reclassified as of December 31, 2016 to conform to the current year presentation. Prepaid expenses and deferred income tax liabilities increased by $267 million and $198 million, respectively. Deferred income tax assets and other current liab ilities decreased by $100 million and $31 million, respectively. The consolidated statement of income was not affected. Recently issued accounting pronouncements, not yet adopted In August 2017, the FASB issued guidance for derivatives and hedging, which e xpands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance will be effective fo r fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (early adoption is permitted for any interim and annual financial statements that have not yet been issued). Teva is currently evaluating the potential ef fect of the guidance on its consolidated financial assets. In May 2017, the FASB issued guidance on changes to terms and conditions of share-based payment awards. The amendment provides guidance about which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting. The guidance is effective for the fiscal year beginning on January 1, 2018, including interim periods within that year. Teva does not anticipate that adoption of this guidance will have a ma terial impact on its consolidated financial statements. In February 2017, the FASB issued guidance on de-recognition of nonfinancial assets. The amendments address the recognition of gains and losses on the transfer (i.e., sale) of nonfinancial assets to c ounterparties other than customers. The guidance conforms de-recognition on nonfinancial assets with the model for transactions in the new revenue standard. The amendments are effective at the same time as the new revenue standard. The amendments are effec tive at the same time as the new revenue standard which means for public entities annual periods beginning after December 15, 2017 and interim periods therein with earlier adoption permitted. Teva does not anticipate that such guidance will have a material impact on its consolidated financial statements. In August 2016, the FASB issued guidance on statements of cash flows. The guidance addresses eight specific issues: debt prepayment or debt extinguishment costs; settlement of certain debt instruments; cont ingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies; distributions received from equity method investees; beneficial inte rest in securitization transactions; and separately identifiable cash flows and application of predominance principle. The guidance is effective for the fiscal year beginning on January 1, 2018, including interim periods within that year. The amendments sh ould be applied retrospectively . In connection with the Company's securitization program see note 16d regarding the likely impact of the adoption on Teva's consolidated financial statements. In June 2016, the FASB issued guidance on financial instrument s. The guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The g uidance will be effective for the fiscal year beginning on January 1, 2020, including interim periods within that year. Teva is currently evaluating the potential effect of the guidance on its consolidated financial statements. In February 2016, the FASB issued guidance on leases. The guidance requires entities to record lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. In September 2017, the FASB issued additional amendments providing clarifi cation and implementation guidance. The guidance will become effective for interim and annual periods beginning on January 1, 2019 (early adoption is permitted) and is required to be adopted at the earliest period presented using a modified retrospective a pproach. Although the Company is in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements, the Company expects there will be a material increase to assets and liabilities related to the recognition of new right-of-use assets and lease liabilities on the Company's balance sheet for leases currently classified as operating leases. In January 2016, the FASB issued guidance which updates cer tain aspects of recognition, measurement, presentation and disclosure of equity investments. The guidance requires entities to recognize changes in fair value in net income rather than in accumulated other comprehensive income. The guidance is effective fo r interim and annual periods beginning on January 1, 2018. Teva does not anticipate that such guidance will have a material impact on its consolidated financial statements. In May 2014, the FASB issued guidance on revenue from contracts with customers tha t will supersede most current revenue recognition guidance, including industry-specific guidance. Under the new standard, a good or service is transferred to the customer when (or as) the customer obtains control of the good or service, which differs from the risk and rewards approach under current guidance. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In March, April and May 2016, the FASB issued three additional updates regarding identifying performance obligations and licensing, certain principal versus agent considerations and various narrow scope improvements based on practical questions raised by users. In September 2017, the FASB issued additional amendments providing clarification and implementation guidance. The guidance may be adopted through either retr ospective application to all periods presented in the financial statements (full retrospective approach) or through a cumulative effect adjustment to retained earnings at the effective date (modified retrospective approach). The guidance is effective for t he fiscal periods beginning on January 1, 2018. Teva does not anticipate a material impact on its revenue recognition practices nor accumulated impact , following the adoption of the new guidance. Teva will adopt the new standard using the modified retrosp ective approach. c. Acquisitions: Teva's consolidated financial statements include the operations of an acquired business from the date of the acquisition's consummation. Acquired businesses are accounted for using the acquisition method of accounting , which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired in process research and development ("IPR&D") be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When Teva acquires net assets that do not constitute a business, as def ined under U.S. GAAP, no goodwill is recognized and acquired IPR&D is expensed. Contingent consideration incurred in a business combination is included as part of the acquisition price and recorded at a probability weighted assessment of their fair value a s of the acquisition date. The fair value of the contingent consideration is re-measured at each reporting period, with any adjustments in fair value recognized in earnings under impairments, restructuring and others. d. Collaborative arrangements: 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. The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to collaborative agreements as gross or net. If the Company is the principal participant in a transaction, revenues and costs are recorded on a gross basis; otherwise, revenues are recorded on a net basis. e. 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 equi ty 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 indica te the carrying amount may not be recoverable. Impairments on investee companies are recorded in the income statement under share in profits or losses of associated companies – net. f. Fair value measurement: The Company measures fair value and disc loses 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 acces sible 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: Un observable 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 an d minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. g. 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 o ther 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 t axes, 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. Rea lized 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 C ompany 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 rel ated to other factors is recognized in other comprehensive income. h. 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 investment in 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 . i. Trade receivables: Trade receivables are stated at their net realizable value. Th e allowance against gross trade receivable reflects the best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available i nformation. As of December 31, 2017 , and December 31, 201 6 , an allowance for doubtful debts of $232 million and $1 91 million, respectively, is reflected in net trade receivables. Trade receivables are written off after all reasonable means to collec t the full amount have been exhausted. j. Concentration of credit risks: Most of Teva’s cash and cash equivalents (which, along with investment in securities, totaled $ 1.1 b illion at December 31, 201 7 ) 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 United States ., has been significantly affected by consolidation among managed care providers, large pharmacy chains, wholesaling organizations and other buyer groups. The U.S. market constituted approximately 53% of Teva's consolidated revenues in 2017 . 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 colla teral. An appropriate allowance for doubtful accounts is included in the accounts and netted against trade receivables. k. Inventories: Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials, purchased products, manufactured finished products, products in process and capitalized production costs are determined predominantly on a standard cost basis, approximating average costs. Other methods which are utilized for determining the value of inven tories are moving average, cost basis and the first in first out method.Teva regularly reviews its inventories for impairment and reserves are established when necessary. 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. l. Long-lived assets: Teva's long-lived, non-current assets are comprised mainly of goodwill, identifiable intangible assets and property, plant and equipment. All long-lived assets are monitored for impairment indicators throughout the year. Impairment testing for goodwill and all identifiable intangible assets is performed at least annually. When necessary, charges for impairments of long-lived assets are recorded for the amount by whi ch the fair value is less than the carrying value of these assets. Goodwill Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any non-controlling interest in the acquiree, over the assigned fair values of the identifiable net assets acquired. Goodwill is not amortized, and is assigned to reporting units and tested for impairment at least on an annual basis, in the fourth quarter of the fiscal year. The goodwill impairment test is performed according to the following principles: 1. An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. 2. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying mount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized. An interim goodwill impairment test may be required in advance of the annual impairment test if events occur that indicate impairment might be present . For example, a substantial decline in the Company’s market capitaliza tion, unexpected adverse business conditio |
CERTAIN TRANSACTIONS
CERTAIN TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Certain Transactions [Abstract] | |
Certain Transactions | NOTE 2 – C ERTAIN TRANSACTIONS : Business transactions: Actavis Generics and Anda acquisitions: On August 2, 2016, Teva consummated its acquisition of Allergan plc’s ("Allergan") worldwide generic pharmaceuticals business (“Actavis Generics”). At closing, Teva transferred to Allergan consideration of approximately $33.4 billion in cash and approximately 100.3 million Teva shares. The acquisition significantly expanded Teva’s generics product portfolio and pipeline, R&D capabilities and global operations network. On October 3, 2016, Teva consummated the acquisition of Anda Inc. (“Anda”), the fourth largest distributor of generic pharmaceuticals in the United States, from Allergan , for cash consideration of $500 million. The purchase is a transaction related to the Actavis Generics acquisition, and as such the purchase price accounting and related disclosures were treated on a combined basis. In July 2016, Teva completed debt issuances for an aggregate principal amount of $20.4 billio n, or $20.3 billion in net proceeds, consisting of senior notes with aggregate principal amounts of $15 billion, €4 billion and CHF 1 billion and maturities between two to 30 years. The effective average interest rate of these notes is 2.32% per annum. At the closing of the Actavis Generics acquisition, Teva borrowed $5 billion under its term loan facility with a syndicate of banks. The term facility is split into two tranches of $2.5 billion each, with the first tranche maturing in 2018 and the second tran che maturing in 2020 with payment installments each year. In addition, Teva terminated its $22 billion bridge loan credit agreement. S ee note 11 . Teva financed the cash consideration with the amounts mentioned above, in addition to approximately $8.1 billi on from cash on hand, including from its December 2015 equity offerings and borrowings under its syndicated revolving line of credit. Debt issuance and term loan facilities related costs of approximately $0.1 billion were incurred as part of the financing arrangements, and were capitalized under senior notes and loans in the consolidated balance sheets in 2016 . Total equity issuance costs of approximately $0.2 billion related to the transaction were offset against the proceeds received from the issuances. The following table summarizes the fair value of consideration transferred to acquire Actavis Generics and Anda: U.S. $ in millions Cash (1) $ 33,878 Ordinary shares (2) 5,065 Contingent consideration (3) 302 Equity based compensation 25 Total fair value of consideration transferred $ 39,270 (1) As a result of a working capital true up adjustment related to the Anda acquisition, a $42 million reduction in the fair value of the consideration transferred to acquire the businesses was reflected in the first quarter of 2017. The adjustment was settled during the second quarter of 2017 and impacted the statements of cash flows accordingly. ( 2 ) Represents approximately 100.3 million shares at a price per share of $50.50 at August 1, 2016, which has been adjusted for a lack of marketability discou nt factor of 5.8%. The shares issued to Allergan were subject to transfer restrictions that generally expired as of August 2, 2017. ( 3 ) The contingent consideration relates to sharing of profits of one specific product currently in development. Its fair v alue is based on the estimated future cash outflows, utilizing the same probability assessment that was applied on the related in-process research and development (“ IPR&D ”) . The table below summarizes the fair value estimates of the assets acquired , liabilities assumed and resulting goodwill. As the measurement period is now closed , the amounts were finalized during the second quarter of 2017: Preliminary values at December 31, 2016 Measurement period adjustments Values at June 30, 2017 (U.S. $ in millions) Cash and cash equivalents $ 84 $ - $ 84 Trade receivables (1) 3,211 (1) 3,210 Inventories 1,670 (6) 1,664 Other current assets (2) 2,050 (24) 2,026 Property, plant and equipment 1,370 (105) 1,265 Other non-current assets 24 - 24 Identifiable intangible assets: (3) Product rights (4) 8,640 (486) 8,154 Trade names 417 12 429 In-process research and development 5,006 611 5,617 Goodwill 24,192 961 25,153 Total assets acquired 46,664 962 47,626 Sales reserves and allowances 1,988 48 2,036 Trade payables 441 (3) 438 Employee related obligations 134 13 147 Accrued expenses (5) 920 124 1,044 Other current liabilities (6) 376 315 691 Deferred income taxes and other non-current liabilities (7) 3,493 507 4,000 Total liabilities assumed 7,352 1,004 8,356 Net assets acquired (8) $ 39,312 $ (42) $ 39,270 (1) As of the acquisition date, the fair value of trade receivables approximated the book value acquired. The gross contractual amount receivable was $3, 319 million, of which approximately $109 million was not expected to be collected. (2) Other current net assets related to divestitures were approximately $1,611 million. (3) The fair value adjustment estimate of identifiable intangible assets is determined using the “income approach , ” which is a valuation technique that estimate s the fai r value of an asset based on market participants’ expectations of the cash flows an asset would generate over its remaining useful life. ( 4 ) The estimated weighted average amortization period of the acquired product rights is 1 1 years. ( 5 ) In the ordinar y course of business, Actavis Generics incurred contingent and other liabilities. Except as specifically excluded by the relevant accounting standard, contingencies are required to be measured at fair value as of the acquisition date. A liability of $607 m illion for litigation matters was assumed by Teva in connection with the acquisition. See note 13 . ( 6 ) Changes in other current liabilities are mainly due to reassessment related to utilization of carryforward losses of $327 million. ( 7 ) Changes in deferred income taxes are mainly due to reassessment related to uncertain tax positions of approximately $297 million and changes related to re-allocation of intangibles assets to higher tax jurisdictions. ( 8 ) The reduction in the estimated fair value of the net assets acquired is a result of a working capital true up adjustment related to the Anda business. Goodwill is largely attributable to expected synergies following the acquisitions, as well as future economic benefits arising from ot her assets acquired that could not be separately recognized at this time. Goodwill is not deductible for tax purposes and was allocated to the generic medicines segment and other activities. See note 7. Purchase price allocated to intangibles primarily re presents developed products already marketed and IPR&D. Approximately $8.2 billion was allocated from the purchase price to developed products and $5.6 billion to IPR&D. For both developed products and IPR&D, net cash flows were discounted to present values, using a range of discount rates from 6% to 13 % . O ther assumptions reflect stage of development, nature and t iming of efforts for completion and other risks and uncertainties. Identifiable intangible assets were valued using a variation of the income approach known as the “Multi-Per iod Excess Earnings Approach.” This uses a forecast of expected cash flows, cash outflows and contributory charges for economic returns on tangible and intangible assets employed. IPR&D represents development in p rocess which as of the closing date, had substance, where process to date is more than insignificant but had not yet reached completeness. As it relates to this acquisition, Teva considered all products that had at least begun processing the testing to dem onstrate bioequivalence but had not yet received final approval from the Food and Drug Administration (“ FDA ”) to be part of IPR&D. There are approximately 2 5 0 products and/ or product group s included in this allocation. A probability of success factor was u sed to reflect inherent technological and regulatory risks. The measurement period adjustments related to the identifiable intangible assets acquired represent the impact of updated cash flow projections on the fair value of the assets. The updated project ions incorporated additional information obtained subsequent to the closing of the transaction, which included updated product and market based assumptions. The resulting reduction of amortization of product rights from the date of the acquisition’s consum mation is not material to the consolidated financial statements. The final cash consideration for the Actavis Generics acquisition was subject to certain net working capital adjustments. Following the terms of the agreement, Teva submitted an adjustment f or $1.4 billion with regards to a working capital true up as well as potential recoveries of purchase price related to certain tax items. On January 31, 2018, Teva and Allergan entered into a settlement agreement and mutual releases, providing that Allerga n will make a one-time payment of $700 million to Teva, which is expected to be paid during the first quarter of 2018. The Agreement also provides that Teva and Allergan will jointly dismiss the working capital dispute arbitration, as well as actual or pot ential claims under the Master Purchase Agreement, dated July 26, 2015, by and between Teva and Allergan, for breach of any representation, warranty or covenant (other than any breach of a post-closing covenant not known as of the date of the settlement ag reement). As the measurement period is now closed, this amount will be recorded as a gain in net income. In order to complete the Actavis Generics acquisition, Teva was required by the U.S. Federal Trade Commission (“FTC”) to divest certain Actavis Generics and Teva products. The sale of the Teva legacy products resulted in a net gain of $720 million which was recognized on other income in the consolidated statements of income in the third quarter of 2016. A portion of the divestiture was considered a sale of a business, for which the respective gain includes the disposal of the estimated fair value of goodwill associated with the business, which was $99 million. Proceeds from the sale of the Actavis Generics and Teva assets were approximately $527 mi llion and $1,218 million, respectively. Pro forma information has not been included since Teva believes that this information is not indicative of future results. Other transactions: In August 2017, Teva purchased an FDA priority review voucher from a third party for $150 million, which allowed Teva to accelerate the review period for fremanezumab, one of its key specialty assets, for the treatment of migraine. This amount was recorded in Teva’s consolidated statements of income as research and development expenses and reflected in cash flow used in investing activities . During the year ended December 31, 2016, Teva entered into other transactions for aggregate c ash consideration of $2.3 billion and non-cash consideration with a fair value of $1.8 billion. Goodwill recognized for these transactions is not deductible for tax purposes. Pro forma financial information for the following transactions was not significa nt, individually or collectively, when compared with Teva’s financial results. Japanese business venture On April 1, 2016, Teva and Takeda Pharmaceutical Company Limited ("Takeda") established Teva Takeda Yakuhin Ltd. (“Teva Takeda”), a new business ventur e in Japan. The business venture combined Teva's Japanese generics business with Takeda’s portfolio of off-patent products, leveraging Takeda's leading brand reputation and strong distribution presence in Japan with Teva’s expertise in supply chain, operat ional network, infrastructure and R&D, to meet the wide-ranging needs of patients and growing importance of generics in Japan through the provision of off-patent medicines. Teva assigned 49% in the business venture to Takeda in consideration of the contri bution of its off-patented products business in Japan. The business venture was consolidated in Teva's financial statements commencing April 1, 2016. Takeda’s interest in the business venture is accounted for under net income (loss) attributable to non-con trolling interests. The table below summarizes the fair value of the assets acquired, liabilities assumed and resulting goodwill, as finalized in the first quarter of 2017. Teva recorded net assets acquired of $1.8 billion and non-controlling interests of $1.6 billion, with the difference recorded under Teva shareholders’ equity. U.S. $ in millions Inventories $ 134 Identifiable intangible assets: Product and marketing rights (1) 1,491 Goodwill 698 Total assets acquired $ 2,323 Deferred income taxes 498 Total liabilities assumed 498 Net assets acquired $ 1,825 (1) The weighted average amortization period of the acquired product and marketing rights is approximately 15 years . In the second quarter of 2017, Teva Takeda purchased an additional portfolio of off-patent products from Takeda for approximately $255 million. This additional transaction was accounted as an asset acquisition and no goodwill was assigned to it. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized . Specifically, goodwill recorded as part of the Teva Takeda business venture is attributable to expected specific synergies and market benefits that could not be individually identified and separately recognized and was allocated to the generics segment . Rimsa On March 3, 2016, Teva completed the a cquisition of Representaciones e Investigaciones Médicas, S.A. de C.V. ("Rimsa"), a pharmaceutical manufacturing and distribution company in Mexico, for $2.3 billion, in a cash free, debt free set of transactions. Teva financed the transaction using cash o n hand. Following the closing of the acquisition, Teva identified issues concerning Rimsa’s pre-acquisition quality, manufacturing and other practices, at which point the C ompany began an assessment of the extent and cost of remediation required to return its products to the market. In September 2016, two lawsuits were filed: a pre-emptive suit by the Rimsa sellers against Teva, and Teva’s lawsuit alleging fraud and breach of contract against the Rimsa sellers. The Rimsa sellers subsequently dismissed their lawsuit, and the dismissal was approved by court order on December 20, 2016. Teva's breach of contract claim against the Rimsa sellers remains outstanding. During the fourth quarter of 2016 , Teva completed its assessment of the implications of the identi fied issues on the intended synergies and integration of the acquisition, resulting in a comprehensive remediation plan and an impairment test over the goodwill acquired. As a result of the alleged fraud, and given the required level of senior management' s attention to execute the remediation plan, Teva concluded that the rarity of the circumstances warranted the evaluation of Rimsa as a separate reporting unit. Accordingly, in 2016 goodwill resulting from the Rimsa acquisition was teste d for impairment at this level, and an impairment of $900 million on goodwill was recorded . Teva continues to monitor the execution of the remediation plan and related milestones. Critical to the plan are the timing and costs to remediate the f acility and its product files . As all files required revalidation efforts in order to commence sales, all were classified as IPR&D. In the second quarter and the fourth quarter of 2017, Teva recorded $43 million and $110 million impairment, respectively, for IPR&D related to Rimsa. If i t is determined that remediation will not be completed within the expected timeframe, Teva may conclude that additional impairment is necessary. The table below summarizes the fair value of the assets acquired and liabilities assumed and resulting goodwill , prior to any goodwill impairments. The amounts were finalized in the first quarter of 2017 . U.S. $ in millions Current assets (1) $ 97 Other non-current assets 144 Identifiable intangible assets: In-process research and development (2) 338 Goodwill 1,933 Total assets acquired $ 2,512 Current liabilities 123 Deferred taxes and other non-current liabilities 68 Total liabilities assumed 191 Net assets acquired $ 2,321 (1) As of the acquisition date, the fair value of trade receivables approximated the book value acquired. The gross contractual amount receivable was $47 million, of which $3 million was not expected to be collected. (2) The value of research and development in-process was calculated using cash flow projections discounted for the inherent risk in the projects. Goodwill attributable to the acquisition following the updated valuations represents the expected benefits from Teva's increased presence in the Mexican market and was allocated to the generics operating segment. Assets and Liabilities Held For Sale: Generics Assets in U.K. and Ireland In order to complete the Actavis Generics acquisition, Teva was required by the U.S. Federal Trade Commission ("FTC") and the European Commission to divest certain Actavis Generics and Teva products. On October 5, 2016, Teva entered into an agreement to sell certain assets and operations of Actavis Generics in the United Kingdom and Ireland. The transaction closed on January 9, 2017. Net proceeds from the sale of the assets amounted to $677 million. As a result of the devaluation of the British pound, the transactional currency, against the U.S. dollar, a capital loss of $52 million was recognized during the period in G&A expenses. The currency translation impact was reclassified to t he statements of income out of accumulated other comprehensive income. See note 14 e . Global Women's Health and Other Products During September 2017, Teva entered into several agreements to sell certain non-core specialty products. PARAGARD®, PLAN B ONE-ST EP® and Other Women’s Health Products On November 1, 2017, Teva completed the sale of PARAGARD ® a copper releasing intrauterine contraceptive manufactured and sold in the United States, to CooperSurgical for $1.1 billion in cash. Additionally, on November 2, 2017, Teva completed the sale of Plan B One-Step® and Teva’s value brands of emergency contraception to Foundation Consumer Healthcare for $675 million in cash. As a result of these transactions, the Company recognized a net gain on sale of approximatel y $1. 1 billion in the fourth quarter of 2017 within other income in the consolidated statement of (loss) income. The costs to sell for these divestitures of approximately $15 million were recognized concurrently and included as a reduction to the net gain on sale. Certain Women's Health and Other Specialty Products On September 17, 2017, Teva entere d into a definitive agreement under which CVC Capital Partners Fund VI will acquire a portfolio of products for $703 million in cash. The portfolio of products, which is marketed and sold outside of the United States, includes the women's health products O VALEAP ® , ZOELY ® , SEASONIQUE ® , COLPOTROPHINE ® and other specialty products such as ACTONEL ® . On January 31, 2018, Teva completed the sale of the portfolio of products to CVC Capital Partners Fund VI. As of December 31, 2017, the Company accounted for this transaction as assets and liabilities held for sale and determined that the fair value less cost to sell exceeded the carrying value of the business. The Company included as part of the held for sale assets $275 million of goodwill, which is the estimated fair value of goodwill associated with the divested business. The Company determined that the sale of its global women's health businesses in connection with both pending and completed transactions did not constitute a strategic shift and that it did not and will not have a major effect on its operations and financial results. Accordingly, the operations associated with the transactions are not reported as discontinued operations. The table below summarizes the major classes of assets and liabilities incl uded as held for sale as of December 31, 2017 and December 31, 2016: December 31, 2017 December 31, 2016 (U.S. $ in millions) Trade receivables $ - $ 59 Inventories 39 63 Other current assets - 1 Deferred income taxes - 7 Property, plant and equipment, net 16 36 Identifiable intangible assets, net 236 675 Goodwill 275 - Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 566 $ 841 Trade payables and accrued expenses $ - $ 83 Other current liabilities - 10 Other taxes and long-term liabilities 38 23 Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets $ 38 $ 116 d . Other significant 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 s or business risks. The Company’s most significant agreements of this nature are summarized below. Alder BioPharmaceuticals ® On January 8, 2018, Teva signed a global license agreement with Alder BioPharmaceuticals ("Alder") . The agreement validates Teva’s I P and resolves Alder’s opposition to Teva’s European p atent, with respect to anti-calcitonin gene-related peptide (CGRP) antibodies including the w ithdraw al of Alder's appeal before the European Patent Office . Under the terms of the agreement, Alder will r eceive a non-exclusive license to Teva’s anti-CGRP antibodies patent portfolio to develop, manufacture and commercialize eptinezumab in the U.S. and worldwide, excluding Japan and Korea. Teva will receive a $ 25 million upfront payment . The agreement stipulates a dditional milestone payments to Teva of up to $ 175 million , as well as future royalties. AUSTEDO ® On September, 19, 2017, Teva entered into a partnership agreement with Nuvelution Pharma, Inc. (“Nuvelution”) for development of AUSTEDO for the treatment of Tourette syndrome in pediatric patients in the United States. Nuvelution will fund and manage clinical development, driving all operational aspects of the phase 3 program, and Teva will lead the regulatory process and be responsible for commercializati on. Upon FDA approval of AUSTEDO for the treatment of Tourette syndrome, Teva will pay Nuvelution a pre-agreed amount as compensation for their contribution to the partnership. Otsuka On May 12, 2017, Teva entered into a license and collaboration agreement with Otsuka Pharmaceutical Co. Ltd. (“ Otsuka ”) , providing Otsuka with an exclusive license to conduct phase 2 and 3 clinical trials for fremanezumab in Japan and, if approved, to comm ercialize the product in Japan. Otsuka paid Teva an upfront payment of $50 million in consideration for the transaction. Teva may receive additional milestone payments upon filing with Japanese regulatory authorities, receipt of regulatory approval and ach ievement of certain revenue targets. Otsuka will also pay Teva royalties on fremanezumab sales in Japan. AttenukineTM In December 2016, Teva entered into a license agreement for research, development, manufacture and commercializing of Attenukine TM with a subsidiary of Takeda. Teva received a $30 million upfront payment . The agreement stipulates a dditional milestone payments to Teva of up to $280 million , as well as future royalties. Ninlaro® In November 2016, Teva entered into an agreement to sell its royalties a nd other rights in Ninlaro ® (ixazomib) to a subsidiary of Takeda, for a $150 million upfront payment to Teva and an additional $150 million payment based on sales during 2017 . Teva was entitled to these royalties pur suant to an agreement from 2014 assigning the Ninlaro ® patents to an affiliate of Takeda in consideration of milestone payments and sales royalties. In the first six months of 2017, Teva received payments in the amount of $ 150 million , which were recognized as revenue for the period . Ce lltrion In October 2016, Teva and Celltrion, Inc. ("Celltrion") entered into a collaborative agreement to commercialize two of Celltrion’s biosimilar products in development for the U.S. and Canadian markets. Teva paid Celltrion $160 million, of which up t o $60 million is refundable or creditable under certain circumstances. Teva and Celltrion will share the profit from the commercialization of these products. Regeneron In September 2016, Teva and Regeneron Pharmaceuticals, Inc. ("Regeneron") entered into a collaborative agreement to develop and commercialize Regeneron’s pain medication product, fasinumab. Teva and Regeneron share equally in the global commercial rights t o this product, as well as ongoing associated research and development costs of approximately $1 billion. Teva made an upfront payment of $250 million to Reg eneron as part of the agreement and additional milestone payments of $25 million and $35 million in the second quarter of 2017 and January 2018, respectively. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurement | NOTE 3 – FAIR VALUE MEASUREMENT: Financial items carried at fair value as of December 31, 2017 and 2016 are classified in the tables below in one of the three categories described in note 1f: December 31, 2017 Level 1 Level 2 Level 3 Total U.S. $ in millions Cash and cash equivalents: Money markets $ 5 $ - $ - $ 5 Cash, deposits and other 958 - - 958 Investment in securities: Equity securities 65 - - 65 Structured investment vehicles - - - - Other, mainly debt securities 14 - 18 32 Derivatives: Asset derivatives - options and forward contracts - 17 - 17 Asset derivatives - cross-currency swaps - 25 - 25 Liabilities derivatives - options and forward contracts - (15) - (15) Liabilities derivatives - interest rate and cross-currency swaps - (98) - (98) Contingent consideration* - - (735) (735) Total $ 1,042 $ (71) $ (717) $ 254 December 31, 2016 Level 1 Level 2 Level 3 Total U.S. $ in millions Cash and cash equivalents: Money markets $ 24 $ - $ - $ 24 Cash, deposits and other 964 - - 964 Investment in securities: Equity securities 842 - - 842 Structured investment vehicles - 89 - 89 Other, mainly debt securities 14 - 17 31 Derivatives: Asset derivatives - options and forward contracts - 10 - 10 Asset derivatives - cross-currency swaps - 88 - 88 Liability derivatives - options and forward contracts - (17) - (17) Liability derivatives - interest rate swaps - (2) - (2) Contingent consideration* - - (828) (828) Total $ 1,844 $ 168 $ (811) $ 1,201 Contingent consideration represents liabilities recorded at fair value in connection with acquisitions . Teva determined the fair value 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 fa ir 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 regardi ng 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. The contingent consideration is evaluated quarterly or more frequently if circumstances dictate. Changes in the fair value of contingent consideration are recorded in earnings under other asset i mpairment s, restructuring and other item s . 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, December 31, 2017 2016 U.S. $ in millions Fair value at the beginning of the period $ (811) $ (811) Investment in debt securities - 16 Translation differences (17) 18 Additional contingent consideration resulting from: Actavis Generics acquisition - (302) Adjustments to provisions for contingent consideration: Actavis Generics transaction (35) - Labrys acquisition (40) (6) Eagle transaction (178) (179) MicroDose acquisition 89 (8) Cephalon acquisition 10 (12) NuPathe transaction - 122 Settlement of contingent consideration: Labrys acquisition 100 25 Eagle transaction 165 115 Cephalon acquisition - 205 Gecko acquisition - 6 Fair value at the end of the period $ (717) $ (811) Teva’s financial instruments consist mainly of cash and cash equivalents, investments in securities, current and non-current receivables, short-term credit, accounts pa ya ble and accruals, loans and senior notes, convertible senior debentures and derivatives. The fair value of the financial instruments included in working capital and non-current receivab les 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. Financial instruments not measured at fair value Financial instruments measured on a basis other than fair value are mostly comprised of senior notes and convertible senior debentures (see note 11), and are presented in the below table in terms of fair value: Estimated fair value* December 31, 2017 2016 (U.S. $ in millions) Senior notes included under long-term liabilities $ 23,459 $ 26,456 Senior notes and convertible senior debentures included under short-term liabilities 2,713 569 Fair value at the end of the period $ 26,172 $ 27,025 * The fair value was estimated based on quoted market prices, where available. |
INVESTMENT IN SECURITIES
INVESTMENT IN SECURITIES | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Securities [Abstract] | |
Marketable Securities | NOTE 4— INVESTMENT IN SECURITIES: Available-for-sale securities: Available-for-sale securities are c omprised mainly of debt securities and equity securities. Investments in securities are classified based on the initial maturity as well as the intended time of realization. At December 31, 2017 and 2016 , the fair value, amortized cost and gross unrealized holding gains and losses of such securities were as follows : Fair value Amortized cost Gross unrealized holding gains Gross unrealized holding losses (U.S. $ in millions) December 31, 2017 $ 102 $ 103 $ 19 $ 20 December 31, 2016 $ 986 $ 985 $ 44 $ 43 In the second quarter of 2016, Teva recorded an impairment of $99 million on its investment in Mesoblast. During the third and fourth quarter of 2016, Teva sold and settled approximately five million of its Mylan shares , for an a verage price of $39.3 per share, for an aggregate cash consideration of approximately $202 million. Consequently, Teva recorded a $5 million net loss under financial expenses-net. As of December 31, 2016, following the decision to treat the investment as held for sale, the de cline in fair value of the remaining Mylan shares was considered to be other-than-temporary and recorded as an expense in the consolidated statements of income . Consequently, Teva recorded an additional $37 million loss under financial expenses-net, reflec ting the difference between the book value and fair value of the shares as of December 31, 2016. In the first quarter of 2017, Teva settled the remaining balance of approximately seventeen million Mylan shares for an average price of $40.2 per share for an aggregate cash consideration of approximately $702 million. Consequently Teva recorded a $36 million net gain under financial expenses-net . See note 17. Investments in securities are presented in the balance sheet as follows: December 31, 2017 2016 (U.S. $ in millions) Other current assets $ 14 $ 679 Other non-current assets 83 283 Cash and cash equivalents, mainly money market funds 5 24 $ 102 $ 986 b. Contractual maturities: The contractual maturities of debt securities are as follows: December 31, 2017 (U.S. $ in millions) 2018 $ 19 2021 and thereafter 18 $ 37 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | NOTE 5—INVENTORIES: Inventories, net of reserves, consisted of the following: December 31, 2017 2016 (U.S. $ in millions) Finished products $ 2,689 $ 2,832 Raw and packaging materials 1,454 1,385 Products in process 597 538 Materials in transit and payments on account 184 199 $ 4,924 $ 4,954 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 (U.S. $ in millions) Machinery and equipment $ 5,809 $ 5,748 Buildings 3,329 3,331 Computer equipment and other assets 2,016 1,774 Payments on account 634 634 Land* 390 439 12,178 11,926 Less—accumulated depreciation 4,505 3,853 $ 7,673 $ 8,073 * Land includes long-term leasehold rights in various locations, with useful lives of between 30 and 99 years. Depreciation expenses were $632 million, $501 million and $449 million in the years ended December 31, 2017, 2016 and 2015, respectively. During the years ended December 31, 2017, 2016 and 2015, Teva had impairments of property, plant and equipment in the amount of $544 million, $149 million and $96 million, respectively. Refer to note 18. Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure . These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts , Teva recognized a loss of $82 million, a loss of $7 million and a gain of $26 million under financial expenses - net for the years ended December 31, 2017 , 2016 and 2015 respect ively. Such losses and gains offset the revaluation of the balance sheet items also recorded under financial expenses—net. With respect to the interest rate and cross-currency swap agreeme nts, Teva recognized gains of $6 million, $15 million and $27 milli on under financial expenses - net for the years ended December 31, 2017 , 2016 and 2015 , respectively. Such gains mainly reflect the differences between the fixed interest rate and the floating interest rate. Commencing in the third q uarter of 2015, Teva entered into forward starting interest rate swap and treasury lock agreements designated as cash flow hedges of the U.S. dollar debt issuance in July 2016, with respect to $3.75 billion and $1.5 billion notional amounts, respectively. These agreements hedged the variability in anticipated future interest payments due to possible changes in the benchmark interest rate between the date the agreements were entered into and the actual date of the U.S. dollar debt issuance in July 2016 (in c onnection with the closing of the Actavis Generics acquisition). See note 11. Certain of the forward starting interest rate swaps and treasury lock agreements matured during the first half of 2016. In July 2016, in connection with the debt issuances, Teva terminated the remaining forward starting interest rate swaps and treasury lock agreements. The termination of these transactions resulted in a loss position of $493 million, of which $242 million were settled on October 7, 2016 and the remaining amount wa s settled in January 2017. The change in fair value of these instruments recorded in other comprehensive income (loss) will be amortized under financial expenses-net over the life of the debt. Such losses mainly reflect the changes in the benchmark interes t rate between the date the agreements were entered into and the actual date of the U.S. debt issuance in July 2016. With respect to the forward starting interest rate swaps and treasury lock agreem ents, losses of $27 million and $12 million were recogniz ed under financial expenses-net for the ye ars ended December 31, 2017 and 2016 respectively In the third quarter of 2016, Teva terminated interest rate swap agreements designated as fair value hedge relating to its 2.95% senior notes due 2022 with respect to $844 million notional amount and its 3.65% senior notes due 2021 with respect to $450 million notional amount. Settlement of these transactions resulted in a gain position of $41 million. The fair value hedge accounting adjustments of thes e instruments, which are recorded under senior notes and loans, are amortized under financial expenses-net over the life of the debt. With respect to the interest rate swap agreements , gain s of $7 million and $2 million were recognized under financial exp enses-net for the year s ended December 31, 2017 and 2016 respectively. In the fourth quarter of 2016, Teva entered into interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500 million maturing in 2020. These cross currency swaps were designated as a n et investment hedge of Teva ’ s foreign subsidiaries euro denominated net assets, in order to reduce the risk of adverse exchange rate fluctuations. With respect to these cross currency swap agreements, Teva recognized gains of $13 million under financial e xpenses-net for the year ended December 31, 2017 . d . Securitization: In April 2011, Teva established a trade receivables securitization program to sell trade receivables to BNP Paribas Bank (“BNP"). Under the program Teva (on a consolidated basis) receives, as purchase price for the receivables sold by it, an initial cash purchase price and the right to receive a deferred purchase price ("DPP"). On an individual seller basis, each Teva subsidiary sells receivables to BNP for an amount equal to their nominal amount. BNP then immediately on-sells such receivables to a bankruptcy-remote special-purpose entity (“SPE”), for an amount equal to the nominal amount of such trade receivables. The SPE then on-sells such receivables to a conduit sponso red by BNP (“the conduit”) for an initial cash purchase price (equal to the nominal amount of such receivables less a discount) and the right to r eceive a DPP . The SPE is a VIE for which Teva is considered to be the primary beneficiary. The SPE’s sole bus iness consists of the purchase of receivables from Teva subsidiaries and the subsequent transfer of such receivables to the conduit. Although the SPE is included in Teva’s consolidated financial statements, it is a separate legal entity with separate cred itors. The conduit and other designated creditors of the SPE are entitled, both before and upon the SPE's liquidation, to be paid out of the SPE's assets prior to the DPP payable to Teva. The assets of the SPE are not available to pay creditors of Teva or its subsidiaries. This program expires on August 23, 2018 but can be renewed with consent from the parties to the program up to August 31, 2021 or any other date agreed between the parties. Once sold to BNP, the relevant Teva subsidiary as seller has no retained interests in the receivables sold and they are unavailable to the relevant seller should the relevant seller become insolvent. The conduit has all the rights in the securitized trade receivables, including the right to pledge or dispose of such re ceivables. Consequently, receivables sold under this agreement are de-recognized from Teva's consolidated balance sheets. The portion of the purchase price for the receivables which is not paid in cash by the conduit is a DPP asset. The conduit pays the SP E the DPP from collections received by the conduit from the securitized trade receivables (after paying senior costs and expenses, including the conduit’s debt service obligations), which the SPE then pays to Teva .The DPP asset represents a beneficial inte rest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The DPP asset is included in other current assets on Teva's Consolidated Balance Sheet. Teva has collection and administrative responsibilities for th e sold receivables. The fair value of these servicing arrangements as well as the fees earned was immaterial. The proceeds from these sales of receivables are included in cash from operating activities in the consolidated statement of cash flows. In August 2016, the FASB issued guidance on statements of cash flows (see note 1b). In connection with beneficial interest in the securitization program, early adoption of the new guidance would have resulted in a reclassification of approximately $1. 3 billion from net cash provided by operating activities to investment activities for the year ended December 31, 2017. The Company expects this amount to increase going forward based on expected changes in DPP terms and the volume of the securitization program. DPP a sset as of D ecember 31, 2017 and 2016 was $261 million and $220 million, res pectively . As of December 31, 2017 and 2016, the balance of Teva's securitized assets sold were $ 799 million and $621 million, respectively. The following table summarizes the sold receivables outstanding balance net of DPP asset under the outstanding securitization program: |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill [Abstract] | |
Goodwill Disclosure [Text Block] | NOTE 7—GOODWILL: The changes in the carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016 were as follows: Generics Specialty Other Total (U.S. $ in millions) Balance as of January 1, 2016 $ 8,465 $ 9,420 $ 1,140 $ 19,025 Changes during year: Goodwill acquired and adjustments (1) 25,767 (29) 1,091 26,829 Goodwill disposed (2) (99) (99) Goodwill impairment (3) (900) (900) Translation differences (370) (68) (8) (446) Balance as of December 31, 2016 $ 32,863 $ 9,323 $ 2,223 $ 44,409 Changes during year: Goodwill adjustments (1) 1,480 (560) 920 Goodwill disposed (2) (7) (690) (697) Goodwill impairment (4) (16,500) (600) (17,100) Goodwill reclassified as assets held for sale (5) - (275) (275) Translation differences 1,028 106 23 1,157 Balance as of December 31, 2017 $ 18,864 $ 8,464 $ 1,086 $ 28,414 (1) Goodwill recognized as part of the Actavis Generics, Anda, Takeda and Rimsa transactions in 2016. Goodwill adjustments in the current period represent measurement period adjustments on goodwill acquired in 2016. (2) Goodwill on divestiture of Teva Generic products as part of Actavis Generics acquisition and the U.S. Women's Health divestiture. (3) Represents Rimsa goodwill impairment. See note 2 for additional information. (4) Goodwill impairment is mainly attributable to the U.S. generics reporting unit. (5) Represent amounts related to the anticipated divestitures of the non U.S. women's health products. See note 2 for additional information. Following the acquisition of Actavis Generics, Teva conducted an analysis of its business segments, which resulted in a change to Teva's segment reporting and goodwill assignment in the fourth quarter of 2016. Teva reallocated goodwill to its adjusted reporting units using a relative fair value approach. Pursuant to the Company's policy, Teva conducted its annual impairment test during the fourth quarter of 2017, in conjunction with the preparation of its 2018 annual operating plan ("AOP"). The AOP was used as a base for a long range plan model, incorporating the impact of the restructuring plan that was announced on December 14, 2017. See note 18. Teva determines the fair value of its reporting units using a weighting of fair values derived fro m the income approach. The income approach is a forward-looking approach to estimating fair value. Within the income approach, the method that was used is the discounted cash flow method. Teva commenced with a forecast of all the expected net cash flows as sociated with the reporting units, which include the application of a terminal value, and then applied a discount rate to arrive at a net present value amount. Cash flow projections are based on Teva’s estimates of revenue growth rates and operating margin s, taking into consideration industry and market conditions, which are reflective of market participants. The discount rate used is based on the weighted-average cost of capital adjusted for the relevant risk associated with country-specific characteristic s. Considering the steep decline in Teva's market capitalization in the second half of 2017 and considering additional adverse developments in its businesses during the fourth quarter of 2017, which are further described below, Teva recorded a goodwill imp airment of $11.0 billion in the fourth quarter, mainly attributable to goodwill associated with its U.S. generics reporting unit, in addition to the $6.1 billion goodwill impairment that was recorded during the second quarter of 2017. Generics reporting u nits U.S. generics reporting unit During the second quarter of 2017, Teva identified certain developments in the U.S. market, which negatively impacted Teva's outlook for its U.S. generics business. These developments included: (i) additional pricing press ure in the U.S. generics market as a result of customer consolidation into larger buying groups to extract further price reductions; (ii) accelerated FDA approval of additional generic versions of off-patent medicines, resulting in increased competition fo r these products; and (iii) delays in launches of certain of Teva new generic products. These developments caused Teva to revisit its assumptions supporting the cash flow projections for its U.S. generics reporting unit, including: (i) the expected duratio n and depth of price erosion and certain revenue growth assumptions; (ii) the associated operating profit margins; and (iii) the long term growth rate. In estimating the discounted cash flow value of Teva's U.S. generics reporting unit as of the second quarter of 2017, Teva used the following key assumptions: Teva expected revenue and operating profits to continue to decline in 2018 and 2019, as its ability to successfully launch new generic products was not expected to offset or exceed the price and vol ume erosion for its existing portfolio prior to 2020, following which time, in 2020 and 2021, Teva expected to return to moderate growth. Teva assumed a terminal growth rate of 2% for the coming years, in line with recent general outlook, at the time, for the U.S. generics market. The resulting cash flow amounts were discounted using a weighted average cost of capital ("WACC") of 6.8%. Based on the second quarter revised discounted cash flows analysis, Teva recorded a goodwill impairment of $6.1 billion re lated to its U.S. generics reporting unit. During the third quarter of 2017, Teva adjusted the projections for its U.S. generics reporting unit to reflect a potentially beneficial event, offset by further pricing pressure in the U.S. generics market, and concluded that no additional impairment was required. During the fourth quarter of 2017, Teva noted further deterioration in the U.S. generics market and economic environment and further limitations on Teva's ability to influence generic medicines pricing in the long term and a decrease in value from future launches: Pricing challenges due to customer consolidation . In prior periods, it appeared to be reasonable that as price erosion in the generics market continued, other manufacturers would exit particu lar generic markets, resulting in opportunities to eventually reduce overall erosion with price increases for certain products with decreasing competition after the exit of other manufacturers. However, increasing consolidation among purchasers of generic medicines, particularly Group Purchasing Organizations ("GPOs"), has led to three such GPOs representing approximately 80% of generics purchases in the United States. This led to a continuation and increase in the trend of “lowest price” tenders. Therefore , it now appears likely that there will be few, if any, opportunities to increase prices even when other generics manufacturers exit a market. Pricing challenges due to government regulation . There is an increasing trend of enacting and proposing state-le vel legislation in the United States imposing penalties and/or restricting price increases, making pricing more challenging. The inconsistent rules across states add to the complexity of how to make decisions about the best economic outcome to maximize pro fit on a given generic product and the most restrictive law will likely restrict Teva’s business practices nationwide, as marketing, sales and pricing are typically not administered on a state-by-state basis. Restrictive bills have passed in at least seven states, including high-population states such as California and New York, and bills are in the process of being re-submitted in ten additional states where they were previously rejected, with approximately half of them already passed and/or submitted for vote by January 2018. Increasing generic approvals . The FDA is approving more generic formulations than they have in the past, which is affecting the value of already launched products. On January 3, 2018, the FDA commissioner announced new steps to facili tate efficient generic drug review to enhance competition, promote access and lower drug prices. The commissioner also stated that the FDA had several record-breaking months for the number of generic medicines approved, including November 2017, when it app roved the highest number of generic medicines in the FDA’s history. Being the first to market a generic version of a product, and particularly as the only company authorized to sell during the 180-day period of exclusivity in the U.S. market, can substanti ally increase sales, profits and profitability in the period following the introduction of such a product and prior to a competitor’s introduction of an equivalent product. Even after the exclusivity period ends, there is often continuing benefit from havi ng the first generic product in the market. Pricing is generally higher during periods of limited competition. The FDA has also limited the availability of exclusive or semi-exclusive periods for new products with an increase in shared first to file awards , which reduces the economic benefit from being first-to-file for generic approvals. In contrast to the FDA's accelerated approval of additional generic versions of off-patent medicines, the rate of FDA approval for a generic version of originator drugs without generic competition has not significantly increased. Thus, Teva's ability to launch profitable new products has not benefited from the FDA’s increased focus on approving generic applications. Additionally, much of Teva’s future pipeline is concentr ated in complex or unique products coupled with devices, which take longer time for FDA approval. Originator strategies to maintain market share . Originator companies increasingly engage in strategies beyond authorized generics, to maintain market share of their originator drugs, reducing the value of newly launched complex or novel generics. Changes to traditional distribution model . The traditional model for distribution of pharmaceutical products is also undergoing disruption as a result of the entry or potential entry of new competitors and significant mergers among key industry participants, which Teva believes will limit its future growth in the U.S. generics market. For example: (i) in January 2018, several major hospital groups announced a plan t o form a non- profit company that will provide U.S. hospitals with a number of generic drugs; (ii) in January 2018, Amazon Inc., Berkshire Hathaway Inc. and JPMorgan Chase & Co. announced that they plan to join forces by forming an independent health care company for their combined one million U.S. employees; and (iii) the consolidation resulting from the merger announced in December 2017 between CVS Health and Aetna, if consummated, is expected to create a vertically integrated organization with increased control over the physician and pharmacy networks and, ultimately, over which medicines are sold to patients. Each of these events has the potential to drive further price erosion and limit the growth opportunities for Teva's U.S. generics unit. U.S. tax reform . Recently-enacted U.S. tax reform legislation is expected to limit Teva's ability to achieve targeted tax efficiencies compared to prior estimates. See note15. In response to these developments, Teva's recently appointed President and Chief Executi ve Officer, Kåre Schultz, and the management team that was reorganized under him, announced a comprehensive restructuring plan in December 2017, aimed to increase the profitability of Teva’s U.S. generics business, among other things. This plan focuses on discontinuation of loss generating products and reductions of infrastructure costs, by closing facilities and executing divestments, as well as a reduction in R&D expenditures, focusing on fewer, more profitable opportunities to launch new generic medicine s. In addition, Teva further evaluated its assumptions and approach to valuing its pipeline and related projections. Due to the increased risks and variables now impacting generics launches, Teva, with the assistance of a global consulting firm, used a "Mo nte Carlo" model to simulate the different outcomes for launch value to better predict the estimated value to be derived. As a result of the factors discussed above, Teva adjusted certain of its assumptions used in its cash flow projections in the fourth quarter of 2017 to determine the fair value of its U.S. generics reporting unit. In comparison to previous periods, Teva expects less revenues and profitability from newly launched products as well as larger pricing declines. As a result, Teva estimates a longer period will pass before it returns to revenue and profitability growth in its U.S. generics reporting unit. The resulting cash flow amounts were discounted using a slightly increased rate of 7.3% compared to prior quarters, reflecting market partic ipants' assumptions regarding increased uncertainties in the U.S. generics market. Teva still assumes a terminal growth rate of 2%. Based on the new estimates incorporating all of the above factors, Teva recorded a goodwill impairment of $10.4 billion rel ated to its U.S. generics reporting unit in the fourth quarter of 2017. The aggregate goodwill impairment related to Teva's U.S. generics reporting unit in 2017 was $16.5 billion. If Teva holds all other assumptions constant, a reduction in the terminal v alue growth rate by 0.1% or an increase in discount rate by 0.1% would each result in an additional impairment of approximately $190 million and $230 million, respectively. If the conditions in the U.S. generics market continue to deteriorate more than anticipated, or if Teva is unable to execute its strategies or anticipated plans, it may be necessary to record further impairment charges in the future. Other reporting units within generics Teva concluded that the fair value of each of its remaining rep orting units within its generics medicines segment continues to be in excess of its carrying value. The remaining goodwill allocated to these reporting units was approximately $13 .4 billion as of December 31, 2017. For these reporting units, the percentage excess of estimated fair value over carrying value, as of December 31, 2017, was 4 5.6 % for Teva's Rimsa reporting unit, 4.6 % for the European generics reporting unit and 4 .1 % for the ROW generics reporting unit. Teva determined that the European and ROW generics reporting units are at risk of goodwill impairment in the future, due to the narrow margin between fair value and carrying value and also based on the sensitivity of the calculation of potential forecast revisions and/or changes in strategy in the business. The resulting cash flow amounts for European generics reporting unit were discounted using a rate of 8.4% reflecting market participants' assumptions regarding increased uncertainties and country-specific characteristics with a terminal growth r ate of 1.8%. If Teva holds all other assumptions constant, a reduction in the terminal value growth rate by 0.5% or an increase in discount rate by 0.4% would each result in impairment. The goodwill allocated to this reporting unit was $8. 2 billion as of D ecember 31, 2017. The resulting cash flow amounts for ROW generics reporting unit were discounted using a rate of 8.8% reflecting market participants' assumptions regarding increased uncertainties and country-specific characteristics with a terminal growt h rate of 3.5%. If Teva holds all other assumptions constant, a reduction in the terminal value growth rate by 0.3% or an increase in discount rate by 0.2% would each result in impairment. The goodwill allocated to this reporting unit was $4. 3 billion as o f December 31, 2017. In determining the fair value of these reporting units, Teva used a discounted cash flow analysis and applied the following key assumptions: expected revenue growth and operating profit margins including an estimate for price erosion a nd discount rate, among others. If market conditions continue to deteriorate, or if Teva is unable to execute its strategies, it may be necessary to record further impairments in the future. Specialty reporting unit Teva adjusted its projections for its s pecialty reporting unit to reflect significant events that took place during 2017, mainly the FDA approval of a generic version of COPAXONE and the subsequent launch at risk of a competing product in the U.S. market, as well as the unfavorable clinical tri al result for laquinimod and the favorable clinical trial results for AUSTEDO and fremanezumab. Teva reflected the expected implications of these developments in the cash flow projections and discounted the adjusted cash flow amounts by adding an additiona l risk premium of 2.3% to the discount rate of 7.3%, which Teva uses for most of its worldwide operations, applying a market participant view, to reflect the increased uncertainties in its specialty business. The percentage difference between estimated fai r value and estimated carrying value for the specialty reporting unit is 68.5 %, following the impact of the above mentioned events. Other reporting unit Teva's other reporting unit consists primarily of its U.S. distribution business, Anda, which is negative ly impacted by the outlook for generics, as revised in the fourth quarter of 2017. See "—U.S. generics reporting unit" above. Accordingly, management reduced the projected growth of this business, resulting in an impairment of $600 million. Market Capitalization Teva analyzed the aggregate fair value of its reporting units as compared to its market capitalization in order to assess the reasonableness of the results of its cash flow projections used for its goodwill impairment analysis. The market ca pitalization was based on the outstanding shares and expected dilution from mandatory convertible preferred shares, multiplied by the average market share price for the 30 days following the restructuring plan announcement on December 14, 2017. Reflecting the recent adverse developments in its cash flow projections as described above, Teva assessed its fair value, net of debt, to be higher than both its equity value of $19 billion and its market capitalization of $21 billion, as of December 31, 2017. Manage ment believes that its fair value assessment is reasonably supported by the current market capitalization. Management will continue to monitor business conditions and will also consider future developments in its market capitalization when assessing whether additional goodwill impairment is required in future periods |
IDENTIFIABLE INTANGIBLE ASSET
IDENTIFIABLE INTANGIBLE ASSET | 12 Months Ended |
Dec. 31, 2017 | |
Identifiable Intangible Asset [Abstract] | |
Identifiable Intangible Asset [Text Block] | NOTE 8 - IDENTIFIABLE INTANGIBLE ASSETS: Identifiable intangible assets consisted of the following: Gross carrying amount net of impairment Accumulated amortization Net carrying amount December 31, 2017 2016 2017 2016 2017 2016 (U.S. $ in millions) Product rights $ 21,011 $ 18,180 $ 8,276 $ 6,460 $ 12,735 $ 11,720 Trade names 617 625 55 41 562 584 In-process research and development 4,343 9,183 - - 4,343 9,183 Total $ 25,971 $ 27,988 $ 8,331 $ 6,501 $ 17,640 $ 21,487 W henever impairment indicators are identified for definite life intangible assets, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the assets or asset group’s cash flows and compares such value against the asset’s or asset group’s carrying amount . If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value based on the discounted cash flows by applying an appropriate discount rate that reflects the risk factors associ ated with the cash flow streams. The more significant estimates and assumptions inherent in the estimate of the fair value of identifiable intangible assets include all assumptions associated with forecasting product profitability, including sales and cos t to sell projections, research and development expenditure for ongoing support of product rights or continued development of IPR&D, estimated useful lives and IPR&D expected launch dates. Additionally, for IPR&D assets the risk of failure has been factore d into the fair value measure. Impairment of identifiable intangible assets amounted to 3,238 million, $589 million and $265 million in the years ended December 31, 2017 , 2016 and 2015 , respectively , and are recor ded in earnings under other asset i mpai rments, restructuring and other items . See note 18 . Product rights and trade names Product rights and trade names are assets presente d at amortized cost . These assets represent a portfolio of pharmaceutical products from various categories with a weighted average life of approximately 1 1 years . Amortization of intangible assets amounted to $1,444 million, $993 million and $838 million in the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , the estimated aggregate amortization of intangible assets for the years 2018 to 2022 is as follows: 2018 — $1,309 million; 2019 — $1,246 million ; 2020 — $1,218 million; 2021 — $1,071 million and 2022 — $1,109 million. These estimates do not include the impact of IPR&D that is expected to be successfully completed and reclassified to product rights . IPR& D Teva's IPR&D are assets that have not yet been approved in major markets. Teva's IPR&D is comprised mainly of the following acquisitions and related assets: various generic products (Actavis Generics) - $ 3,535 million; LBR-101 (Labrys) - $444 million; various generic products (Rimsa) - $ 153 million and SD 809 – multiple indications and SDJ60 idiopathic pulmonary fibrosis (Austedo ) - $211 million . IPR&D carry intrinsic risks that the asset might not succeed in advanced phases and may be impaired in futur e periods. Additional changes to research and development intangibles relate to reclassification to product rights following regulatory approvals, mainly AUSTEDO in 2017, and impairments of assets due to adverse development events, changes in projected launch date or changes in commercial projections related to products under development . An amount of $1.3 billion was reclassified from IPR&D to product rights in connection with AUSTEDO , upon receipt of regulatory approval in the second quarter of 2017. In the third qu arter of 2017, an additional amount of $1.7 billion was reclassified from IPR&D to product rights in connection with the regulatory approval of AUSTEDO for a second indication. |
SALES RESERVES AND ALLOWANCES
SALES RESERVES AND ALLOWANCES | 12 Months Ended |
Dec. 31, 2017 | |
Revenue Recognition [Abstract] | |
Revenue Recognition [Text Block] | NOTE 9—SALES RESERVES AND ALLOWANCES: Sales reserves and allowances consisted of the following: December 31, 2017 2016 (U.S. $ in millions) Rebates $ 3,077 $ 3,482 Medicaid and other governmental allowances 1,908 1,729 Chargebacks 1,849 1,584 Returns 780 844 Other 267 200 $ 7,881 $ 7,839 |
LONG TERM EMPLOYEE RELATED OBLI
LONG TERM EMPLOYEE RELATED OBLIGATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Long Term Employee Related Obligations [Abstract] | |
Long Term Employee Related Obligations | NOTE 10—LONG-TERM EMPLOYEE-RELATED OBLIGATIONS: a. Long-term employee-related obligations consisted of the following: December 31, 2017 2016 (U.S. $ in millions) Accrued severance obligations $ 91 $ 120 Defined benefit plans 182 197 Total $ 273 $ 317 As of December 31, 2017 and 2016 , the Group had $149 million and $152 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 ben efit plans in several countries. The Company expects to expense an approximate contribution of $156 million in 2018 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 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 circumst ances. 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 we re 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, a s 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 the Company . In the consolidated financial statements, the liability of the European subsidiaries is acc rued , 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 acco rding 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 ben efit 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 C ompany uses December 31 as the measurement date for defin ed 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 employe e remuneration , and accruals are maintained to reflec t these amounts. In some Latin American countries it is Teva 's practice to offer retirement health benefits to qualifying employees. Based on the specific plan requirements , benefits accruals are maintai ned to reflect the estimated amounts or adjusted if future plans are modified . The Company expects to pay the following future minimum ben efits to its employees: $7 million in 2018 ; $7 million in 2019 ; $8 million in 2020 ; $9 million in 2021 ; $10 million in 2022 and $53 million between 20 23 to 20 27 . These amounts do not include amounts that may be paid to employees who cease working with the Company before their normal retirement age |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Debt Obligations [Abstract] | |
Senior Notes and Loans | NOTE 11—DEBT OBLIGATIONS: a. Short-term debt: December 31, Weighted average interest rate as of December 31, 2017 Maturity 2017 2016 (U.S. $ in millions) Term loan JPY 28.3 billion JPY LIBOR+0.25% 2018 $ 251 - Bank and financial institutions 11.67% 2018 1 15 Revolving credit facility LIBOR+1.1375% 2017 $ - $ 1,240 Term loan GBP 510 million GBP LIBOR + 0.7% 2017 - 629 Term loan JPY 8.0 billion JPY LIBOR+0.223% 2017 - 68 Convertible debentures 0.25% 2026 514 514 Current maturities of long-term liabilities 2,880 810 Total short term debt $ 3,646 $ 3,276 Line of credit: In November 2015 , the Company entered into a $ 3 billion five-year unsecured syndicated credit facility (which was increase d to $4.5 billion upon closing of the Actavis Generics acquisition , see note 2 ) . In February 2018 the facility was decreased to $3 billion. This revolving line of credit was not utilized as of December 31, 2017 . C onvertible senior debentures Teva 0.25% convertible senior debentures , due 2026, principal amount as of December 31, 2017 and 2016 were $514 million . 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 principa l amount will be paid in Teva shares. Due to the “net share settlement” feature, exercisable at any time, these convertible senior debentures are classified in the balance sheet under short-term debt. Holders of the convertible debentures will be able to c ause Teva to redeem the debentures on February 1, 2021 b. Long-term debt includes the following: Weighted average interest rate as of December 31, 2017 Maturity December 31, 2017 December 31, 2016 % (U.S. $ in millions) Senior notes EUR 1,750 million (1) 0.38% 2020 $ 2,095 $ 1,834 Senior notes EUR 1,500 million (1) 1.13% 2024 1,788 1,566 Senior notes EUR 1,300 million 1.25% 2023 1,550 1,357 Senior notes EUR 1,000 million 2.88% 2019 1,199 1,050 Senior notes EUR 750 million (1) 1.63% 2028 891 780 Senior notes EUR 700 million 1.88% 2027 837 733 Senior notes USD 3,500 million (2) 3.15% 2026 3,492 3,491 Senior notes USD 3,000 million (2) 2.20% 2021 2,996 2,995 Senior notes USD 3,000 million (2), (3) 2.80% 2023 2,992 2,991 Senior notes USD 2,000 million (2) 1.70% 2019 2,000 2,000 Senior notes USD 2,000 million (2) 4.10% 2046 1,984 1,984 Senior notes USD 1,500 million (2) 1.40% 2018 1,500 1,498 Senior notes USD 844 million (4) 2.95% 2022 864 868 Senior notes USD 789 million 6.15% 2036 781 781 Senior notes USD 700 million 2.25% 2020 700 700 Senior notes USD 613 million (4) 3.65% 2021 624 626 Senior notes USD 588 million 3.65% 2021 587 587 Senior notes CHF 450 million 1.50% 2018 461 442 Senior notes CHF 350 million (5) 0.50% 2022 360 344 Senior notes CHF 350 million (5) 1.00% 2025 360 345 Senior notes CHF 300 million (5) 0.13% 2018 308 295 Fair value hedge accounting adjustments (2) (2) Total senior notes 28,367 27,265 Term loan USD 2.5 billion (6) LIBOR +1.1375% 2018 285 2,500 Term loan USD 2.5 billion (6) LIBOR +1.50% 2017-2020 2,000 2,500 Term loan JPY 58.5 billion (7) JPY LIBOR +0.55% 2022 519 - Term loan JPY 65 billion (8) 0.99% 2017 - 560 Term loan JPY 35 billion 1.42% 2019 311 299 Term loan JPY 35 billion JPY LIBOR +0.3% 2018 311 299 Total loans 3,426 6,158 Debentures USD 15 million 7.20% 2018 15 15 Other 7.46% 2026 5 9 Total debentures and others 20 24 Less current maturities (2,880) (810) Derivative instruments 2 2 Less debt issuance costs (106) (115) Total long-term debt $ 28,829 $ 32,524 Certain of Teva’s loan agreements include restrictive covenants, including the requirement to maintain compliance with a net debt to EBITDA ratio, which becomes more restrictive over time. Approximately $3.7 billion of Teva’s debt is subject to such covenants and, under specified circumstances, including non-compliance with such covenants and the unavailability of any waiver, amendment or other modification thereto and the expiration of any applicable grace period thereto , substantially all other debt could be negatively impacted by non-compliance with such covenants. As of December 31, 2017, Teva was in compliance with all applicable financial ratios. Teva continues to take steps to reduce its debt levels and improve profitability to ensure continual compliance with the financial maintenance covenants. Based on its current forecast for the next twelve months from the date of issuance of these financial statements, Teva expects to remain in compliance with these financial covenants after taking into con sideration the effect of implementation of certain cost-efficiency initiatives, such as rationalization of its plants, selling and marketing, general and administrative and research and development spend, which would allow Teva to continue to comply with t he financial covenants. Teva has amended such covenants in the past, including the net debt to EBITDA ratio covenant to permit a higher ratio, most recently on February 1, 2018. Although Teva has successfully negotiated amendments to its loan agreements i n the past, Teva cannot guarantee that it will be able to amend such agreements on terms satisfactory to it, or at all, if required to maintain compliance in the future. If Teva experiences lower than required earnings and cash flows to continue to maintai n compliance and efforts could not be successfully completed on commercially acceptable terms, Teva may curtail additional planned spending, may divest additional assets in order to generate enough cash to meet its debt requirements and all other financial obligations. (1) In July 2016, in connection with the anticipated closing of the Actavis Generics acquisition, Teva Pharmaceutical Finance Netherlands II B.V., a Teva finance subsidiary, issued senior notes in an aggregate principal amount of €4.0 billio n. (2) In July 2016, in connection with the anticipated closing of the Actavis Generics acquisition, Teva Pharmaceutical Finance Netherlands III B.V., a Teva finance subsidiary, issued senior notes in an aggregate principal amount of $15.0 billion. (3) In the fourth quarter of 2016, Teva entered into interest rate swap agreements designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. (4) In November 2016, Teva repaid at ma turity $950 million principal amount of its 2.4% fixed rate senior notes. (5 ) In July 2016, in connection with the anticipated closing of the Actavis Generics acquisition, Teva Pharmaceutical Finance Netherlands IV B.V., a Teva f inance subsidiary, issued senior notes in an aggregate principal amount of CHF 1.0 billion. (6 ) In August 2016, upon closing of the Actavis Generics acquisition, Teva borrowed $5 billion under its term loan facilities with a syndicate of banks. The term facilities consists of two tranches of $2.5 billion each, with the first tranche maturing in full in 2018 and the second tranche maturing in 2020 with payment installments each year (10% to be repaid in each of 2017 and 2018, 20% to be repaid in 2019 and the remaining 60% to be repaid in 2020). In November 2017 Teva prepaid $2.2 billion principle amount of its first tranche term loan maturing in 2018. In August 2017 Teva repaid at maturity $250 milli on principle amount of its second tranche term loan 2017 payment instalment. In September and November 2017 Teva prepaid $170 million and $80 million respectively, principle amount of its second tranche term loan 2018 payment instalment. (7 ) In March 2017 Teva entered into a JPY 86.8 billion term loan agreement with a syndicate of banks, consisting of two tranches, JPY 58.5 billion with five years maturity and JPY 28.3 billion with one year maturity with an optional six month extension recorded under short -term debt. (8 ) In April 2017 Teva repaid at maturity JPY 65.5 billion principle amount of its 0.99% term loan. Long term debt was issued by several indirect wholly-owned subsidiaries of the Company and is fully and unconditionally guaranteed by the Com pany as to payment of all principal, interest, discount and additional amounts (as defined), if any. Long term debt as of December 31, 2017 is effectively denominated (taking into consideration cross currency swap agreements) in the following currenci es: U.S. dollar 64%, euro 31%, Japanese yen 3% and Swiss franc 2%. Certain loan agreements and debentures contain restrictive covenants, mainly the requirement to maintain certain financial ratios. As of December 31, 2017 , the Company met all financia l covenants. The Company and certain subsidiari es entered i nto negative pledge agree ments 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 wit hout the prior consent of the banks, to maintain certain financial ratios and to fulfill other restrictions, as stipulated by the agreements The required annual principal payments of long-term debt, excluding debt issuance cost as of December 31, 2017, starting with the year 2019, are as follows: December 31, 2017 (U.S. $ in millions) 2019 $ 4,010 2020 4,295 2021 4,207 2022 1,743 2023 and thereafter 14,680 $ 28,935 |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Dec. 31, 2017 | |
Convertible Senior Debentures [Abstract] | |
Convertible Senior Debentures | NOTE 12—Other income: Year ended December, 31 2017 2016 2015 (U.S. $ in millions) Gains on divestitures(1) $ 1,083 $ 720 $ 45 Gain on litigation settlements(2) 83 20 25 Gain on sale of assets 11 10 44 Other, net 22 19 52 Total other income $ 1,199 $ 769 $ 166 (1) Gain related to the divestment of women's health products in 2017 and certain Actavis Generics and Teva products in 2016, in order to comply with FTC and EU commission requirements following Actavis Generics acquisition. See note 2. (2) Mainly due to legal recovery income in Canada. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | NOTE 13—COMMITMENTS AND CONTINGENCIES: Commitments: Preferred dividends : As to dividends in respect of mandatory convertible preferred shares, see note 14b. Operating leases: As of December 31, 2017 , minimum future rentals under operating leases of buildings, machinery and equipment for periods in excess of one year were as follows: 2018 — $160 million ; 2019 — $132 million ; 2020 — $100 million ; 2021 — $73 million ; 2022 — $51 million ; 2023 and thereafter— $75 million . The lease fees expensed in each of the years ended December 31, 2017 , 2016 and 2015 were $200 million , $164 million and $122 million , respectively. Royalty commitments: The Company is committed to pay 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. Royalty expenses are reported in cost of goods sold if related to the acquisition of a product , and if not are included in sales and marketing expenses. The royalty expense in each of the years ended Dec ember 31, 2017 , 2016 and 2015 were $956 million , $814 million and $911 million , respectively. Milestone commitments: The Company is committed to pay ing milestone payments which are contingent upon the achieveme nt of certain regulatory milestones and sales targets. A s of December 31, 2017 , 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 $407 million . Contingencies: General From time to time, Teva and/or its subsidiaries are subject to claims for damages and/or equitable relief arising in the ordinary course of business. In addition, as described below, in large part as a result of the nature of its business, Teva is frequently subject to litigation. Teva generally believes that it has meritorious defenses to the actions brought against it and vigorously pursues the defense or settlement of each such action. Except as described below, Teva does not cu rrently have a reasonable basis to estimate the loss, or range of loss, that is reasonably possible with respect to matters disclosed in this note. Teva records a provision in its financial statements to the extent that it concludes that a contingent liab ility is probable and the amount thereof is estimable. Based upon the status of the cases described below, management’s assessments of the likelihood of damages, and the advice of counsel, no provisions have been made regarding the matters disclosed in thi s note, except as noted below. Litigation outcomes and contingencies are unpredictable, and excessive verdicts can occur. Accordingly, management’s assessments involve complex judgments about future events and often rely heavily on estimates and assumption s. I f one or more of such proceedings described below were to result in final judgments against Teva, such judgments could be material to its results of operations and cash flows in a given period. In addition, Teva incurs significant legal fees and relat ed 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 circumstance s be required to indemnify, and may be indemnified by, in unspecified amounts, the parties to such agreements against third-party claims. Among other things, Teva’s agreements with third parties may require Teva to indemnify them, or require them to indemn ify Teva, for the costs and damages incurred in connection with product liability claims, in specified or unspecified amounts. Except as otherwise noted, all of the litigation matters disclosed below involve claims arising in the United States. Except as otherwise noted, all third party sales figures given below are based on IQVIA (formerly IMS Health Inc.) data. Intellectual Property Litigation From time to time, Teva seeks to develop generic versions of patent-protected pharmaceuticals for sale prior t o 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 amend ed. 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 l itigation 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 certai n circumstances, elect to market a generic version even though litigation is still pending. To the extent Teva elects to proceed in this manner, it could face substantial liability for patent infringement if the final court decision is adverse to Teva, whi ch could be material to its results of operations and cash flows in a given period. The general rule for damages in patent infringement cases in the United States is that the patentee should be compensated by no less than a reasonable royalty, and it may also be able in certain circumstances to be compensated for its lost profits. The amount of a reasonable royalty award would generally be calculated based on the sales of Teva’s product. The amount of lost profits would generally be based on the lost sales of the patentee’s product. In addition, the patentee may seek consequential damages as well as enhanced damages of up to three times the profits lost by the patent holder for willful infringement, although courts have typically awarded much lower multiple s. 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 exp iration 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 infring ement are generally not available. In December 2012, Endo International (“Endo”) sued Actavis Inc. and Actavis South Atlantic LLC (collectively “Actavis”), subsidiaries of Teva, in New York federal court for infringement of patents expiring in 2023 (the “ Endo Patents”). The lawsuit followed the launch by Actavis of its 7.5 mg and 15 mg oxymorphone extended-release tablets, which were the AB-rated generic versions of the original formulation of Endo’s Opana ® ER. According to Endo’s annual report, Opana ® ER had net sales of approximately $299 million for the twelve months ended December 31, 2012. In September 2013, Actavis launched additional strengths of its product. In August 2015, the court found two of the Endo Patents valid and infringed, and on April 29 , 2016, enjoined Actavis from selling its oxymorphone ER products. Actavis has appealed these rulings. In addition, in November 2014, Endo and Mallinckrodt sued Actavis in Delaware federal court, alleging that sales of the Actavis oxymorphone ER products i nfringe another patent that expires in 2029, which Endo had licensed from Mallinckrodt (the “Mallinckrodt Patent”). Trial in that case took place in February 2017, and in August 2017, the Delaware court issued a decision finding the Mallinckrodt Patent val id and infringed. Actavis is appealing this ruling as well. On August 17, 2017, Actavis, Endo, and Mallinckrodt entered into a partial settlement agreement, which resolved any damages claim arising from Actavis’ past sales. However, Actavis’ appeals of the findings of validity and infringement of the Endo Patents and the Mallinckrodt Patent remain pending. A provision has been included in the financial statements for this matter. In July 2014, GlaxoSmithKline (“GSK”) sued Teva in Delaware federal court for infringement of a patent expiring in June 2015 directed to using carvedilol in a specified manner to decrease the risk of mortality in patients with congestive heart failure. Teva and eight other generic producers began selling their carvedilol tablets (th e generic version of GSK’s Coreg ® ) in September 2007. Teva vigorously disputed GSK’s claims on the merits and also disputed the amount and nature of GSK’s alleged damages. A seven-day jury trial began on June 12, 2017. On June 20, 2017, the jury returned a verdict in GSK’s favor finding Teva liable for induced infringement, including willful infringement, and assessing damages of $235.5 million, not including pre- or post-judgment interest. Teva has filed post-trial motions for judgment as a matter of law a sking the court to overturn the jury verdict on inducement, invalidity, and the award of lost profits damages, and GSK has filed post-trial motions asking the court to increase the damages amount in light of the willful infringement finding and to set the interest rate(s) to be applied to the total damages amount. A hearing on post-trial motions was held on October 26, 2017, and the parties await the court ’s ruling on the motions. At a later date, a separate bench trial will be held by the court to address Teva’s legal and equitable defenses, which could either bar or limit GSK’s claims and damages. Depending on the outcome of such trial, Teva may decide to appeal. Even if Teva is found liable for infringement, Teva would be permitted to continue selling its carvedilol products as the patent-in-suit has expired. A provision has been included in the financial statements for this matter. In 2014, Teva Canada succeeded in its challenge of the bortezomib (the generic equivalent of Velcade ® ) product and mannitol ester patents under the Patented Medicines (Notice Of Compliance) Regulations (“PM(NOC)”). Teva commenced sales in the first quarter of 2015. At the time of Teva’s launch, annual sales of Velcade were approximately 94 million Canadian dollars. Teva commenc ed an action under Section 8 of PM(NOC) to recover damages for being kept off of the market during the PM(NOC) proceedings. Janssen and Millennium filed a counter claim for infringement of the same two patents as well as a patent covering a process to prep are bortezomib. The product patent expired in October 2015; the other patents expire in January 2022 and March 2025. On December 20, 2017, Teva entered into an agreement with Janssen and Millenium which limits the damages payable by either party depending on the outcome of the infringement/impeachment action. As a result, the most Janssen and Millenium could recover is 200 million Canadian dollars (approximately $159 million) plus post-judgment interest. The trial, which is limited to the issue of patent va lidity and infringement , began on January 29, 2018 and is ongoing. In addition to the potential damages that could be awarded, if Janssen and Millenium ultimately were successful in their allegations of patent infringement, Teva could be enjoined from furt her sales of its bortezomib product. Product Liability Litigation Teva’s business inherently exposes it to potential product liability claims. Teva maintains a program of insurance, which may include commercial insurance, self-insurance (including direct risk retention), or a combination of both approaches, in amounts and on terms that it believes are reasonable and prudent in light of its business and related risks. However, Teva sells, and will continue to sell, pharmaceuticals that are not covered by i ts product liability insurance; in addition, it may be subject to claims for which insurance coverage is denied as well as claims that exceed its policy limits. Product liability coverage for pharmaceutical companies is becoming more expensive and increasi ngly difficult to obtain. As a result, Teva may not be able to obtain the type and amount of commercial insurance it desires, or any commercial insurance on reasonable terms, in all of its markets. Teva and/or its subsidiaries, including Watson Laboratori es, Inc. (“Watson”) and Actavis Elizabeth LLC (“Actavis Elizabeth”), 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 long-term use of metoclopramide (the generic form of Reglan ® ). In the beginning of 2018, plaintiffs reached the agreed upon participation threshold percentage and settlement was p aid in January 2018. 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 do se. 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. In October 2015, Actavi s Elizabeth reached an agreement in principle to resolve the vast majority of the cases pending against it. In January 2017, Teva and/or its other subsidiaries involved in the litigation also reached an agreement to resolve the vast majority of the cases p ending against them, subject to participation by a certain percentage of plaintiffs. At the beginning of 2018, plaintiffs met the participation threshold, and over 99% of the cases will be dismissed with prejudice. A provision has been included in the fina ncial statements for these matters. 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 agreeme nts in which Teva obtained a license to market a generic version of the drug, often years before the patents expire. Teva and its subsidiaries have increasingly been named as defendants in cases that allege antitrust violations arising from such settlemen t agreements. The plaintiffs in these cases, which are usually direct and indirect purchasers of pharmaceutical products, and often assert claims on behalf of classes of all direct and indirect purchasers, typically allege that (1) Teva received something of value from the innovator in exchange for an agreement to delay generic entry, and (2) significant savings could have been realized if there had been no settlement agreement and generic competition had commenced earlier. These class action cases seek var ious forms of injunctive and monetary relief, including damages based on the difference between the brand price and what the generic price allegedly would have been and disgorgement of profits, which are automatically trebled under the relevant statutes, p lus attorneys’ fees and costs. The alleged damages generally depend on the size of the branded market and the length of the alleged delay, and can be substantial – potentially measured in multiples of the annual brand sales – particularly where the alleged delays are lengthy or branded drugs with annual sales in the billions of dollars are involved. Teva believes that its settlement agreements are lawful and serve to increase competition, and has defended them vigorously. In Teva’s experience to date, thes e cases have typically settled for a fraction of the high end of the damages sought, although there can be no assurance that such outcomes will continue. In June 2013, the 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 determin e whether it violates the antitrust laws. This new test has resulted in increased scrutiny of Teva’s patent settlements, additional action by the FTC and state and local authorities, and an increased risk of liability in Teva’s currently pending antitrust litigations. In April 2006, certain subsidiaries of Teva were named in a class action lawsuit filed in the U.S. District Court for the Eastern District of Pennsylvania. The case alleges that the settlement agreements entered into between Cephalon, Inc., now a Teva subsidiary (“Cephalon”), and various generic pharmaceutical companies in late 2005 and early 2006 to resolve patent litigation involving certain finished modafinil products (marketed as PROVIGIL ® ) were unlawful because they had the effect of exc luding generic competition. The case also alleges that Cephalon improperly asserted its PROVIGIL patent against the generic pharmaceutical companies. 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 (the “Direct Purchaser Class”). Similar allegations were made in other complaints, including those filed on behalf of a proposed class of end payer s of PRO VIGIL (the “End Payer Class”), by certain individual end payer s, by certain retail chain pharmacies and by Apotex, Inc. (collectively, these cases are referred to as the “Philadelphia Modafinil Action”). Separately, Apotex challenged Cephalon’s PROVIGIL pa tent, and in October 2011, the Court found the patent to be invalid and unenforceable based on inequitable conduct. This decision was affirmed on appeal in April 2013. Teva has either settled or reached agreements in principle to settle with all of the pla intiffs in the Philadelphia Modafinil Action. However, one of the end payer s, United Healthcare Services, took the position that it is not bound by the settlement that was agreed to on its behalf and brought a separate action in Minnesota federal court, wh ich has been transferred to the U.S. District Court for the Eastern District of Pennsylvania, where Teva has also filed suit to enforce the settlement. The suit to enforce the settlement has been scheduled for trial beginning on April 23, 2018. Additional ly, Cephalon and Teva have reached a settlement with 48 state attorneys general, which was approved by the court on November 7, 2016. Certain other claimants, including the State of California, have given notices of potential claims related to these settle ment agreements. Teva has produced documents in response to two subpoenas issued by the California Attorney General’s office as part of its ongoing investigation of generic competition to PROVIGIL . In May 2015, Cephalon entered into a consent decree with the FTC under which the FTC dismissed its claims against Cephalon in the FTC Modafinil Action in exchange for payment of $1.2 billion (less set-offs for prior settlements) by Cephalon and Teva into a settlement fund. Under the consent decree, Teva also agr eed to certain injunctive relief with respect to the types of settlement agreements Teva may enter into to resolve patent litigation in the United States for a period of ten years. The settlement fund does not cover any judgments or settlements outside the United States. Following an investigation initiated by the European Commission in April 2011 regarding a modafinil patent settlement in Europe, the Commission issued a Statement of Objections in July 2017 against both Cephalon and Teva alleging that the 2005 settlement agreement between the parties had the object and effect of hindering the entry of generic modafinil. Teva submitted its defense in writing and will also have the right to request an oral hearing before the Commission makes its final decisio n. The sales of modafinil in the European Economic Area during the last full year of the alleged infringement amounted to EUR 46.5 million. In January 2009, the FTC and the State of California filed a complaint for injunctive relief in California federal court alleging that a September 2006 patent lawsuit settlement between Watson and Solvay Pharmaceuticals, Inc. (“Solvay”) relating to AndroGel ® 1% (testosterone gel) violated the antitrust laws . Additional lawsuits alleging similar claims were later filed by private plaintiffs (including plaintiffs purporting to represent classes of similarly situated claimants as well as direct purchaser plaintiffs filing separately), and the various actions were consolidated in a multidistrict litigation in Georgia federa l court. Discovery in these actions is now closed; the defendants filed various summary judgment motions on September 29, 2017, which plaintiffs opposed on December 12, 2017. Annual sales of AndroGel ® 1% at the time of the settlement were approximately $35 0 million, and annual sales of the AndroGel franchise (AndroGel ® 1% and AndroGel ® 1.62%) were approximately $140 million and $1.05 billion, respectively, at the time Actavis launched its generic version of AndroGel ® 1% in November 2015. Teva subsidiaries Barr Laboratories, Inc. (“Barr”) and The Rugby Group (“Rugby”) were sued in actions in California, Kansas and Florida state courts by plaintiffs alleging that a January 1997 patent litigation settlement agreement between Barr, Rugby (then a subsidiary of S anofi Aventis) and Bayer Corporation concerning the antibiotic ciprofloxacin was anticompetitive and violated state antitrust and consumer protection laws. In addition, Rugby is also named as a defendant in a Tennessee action. All of the litigation relatin g to such patent litigation settlement agreement have either settled or are inactive. In the California case, the trial court granted defendants’ summary judgment motions, and in May 2015, the California Supreme Court reversed and remanded the case to the trial court for a rule of reason inquiry. On January 18, 2017, Barr agreed to settle with plaintiffs for $225 million and a provision has been included in the financial statements. On April 21, 2017, the court granted final approval of the settlement. Two class members who have objected to the settlement have filed an appeal of the court’s ruling granting final approval. In December 2011, three groups of plaintiffs sued Wyeth and Teva for alleged violations of the antitrust laws in connection with their se ttlement of patent litigation involving extended release venlafaxine (generic Effexor ® XR) 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 pharm acies in the United States District Court for the District of New Jersey. The plaintiffs claim that the settlement agreement between Wyeth and Teva unlawfully delayed generic entry. In October 2014, the court granted Teva’s motion to dismiss in the direct purchaser cases, after which the parties agreed that the court’s reasoning applied equally to the indirect purchaser cases. Plaintiffs appealed, and on August 21, 2017, the Third Circuit reversed the district court’s decision and remanded for further proce edings. On November 20, 2017, Teva and Wyeth filed a petition for a writ of certiorari in the United States Supreme Court , which remains pending, and litigation has resumed before the district court. Annual sales of Effexor ® XR were approximately $2.6 bill ion 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 GSK and Teva in New Jersey federal court for alleged violations of the antitrust laws in connection with their settlement of patent litigation involving lamotrigine (generic Lamictal ® ) entered into in February 2005. The plaintiffs claim that the settlement agreement unlawfully delayed generic entry and seek unspecified damages. In December 20 12, the court dismissed the case. In January 2014, the court denied the direct purchaser plaintiffs’ motion for reconsideration and affirmed its original dismissal. In June 2015, the Third Circuit reversed and remanded for further proceedings. On February 19, 2016, Teva and GSK filed a petition for a writ of certiorari in the United States Supreme Court, which was denied on November 7, 2016. In the meantime, litigation resumed before the district court. Annual sales of Lamictal ® were approximately $950 mill ion at the time of the settlement, and approximately $2.3 billion at the time generic competition commenced in July 2008. In April 2013, purported classes of direct purchasers of, and end payer s 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 U.S. District Court for the Eastern District of Pennsylvania. Thro ughout 2015 and in January 2016, several individual direct purchaser opt-out plaintiffs filed complaints with allegations nearly identical to those of the direct purchaser class. In October 2016, the District Attorney for Orange County, California, filed a similar complaint, which has since been amended, in California state court alleging violations of state law. Further proceedings in the California action have been stayed pending resolution of Defendants’ petition for writ of mandate or prohibition filed with the Court of Appeal, Fourth Appellate District, which seeks an order vacating the Superior Court’s denial of Defendants’ motion to strike all claims for restitution and civil penalties to the extent they are not limited to alleged activity in Orange C ounty. 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. In November 2013, a putative class action was filed in Pennsylvania federal court against Actavis, Inc. and certain of its affiliates, alleging that Watson’s 2012 patent lawsuit settlement with Endo Pharmaceuticals Inc. relating to Lidoderm ® (lidocaine transdermal patches) violated the antitrust laws. Additional lawsuits c ontaining similar allegations followed on behalf of other classes of putative direct purchaser and end-payer plaintiffs, and the cases have been consolidated as a multidistrict litigation in federal court in California. Defendants moved to dismiss, and in November 2014, the court granted the motions in part but denied them with respect to the claims under Section 1 of the Sherman Act. Plaintiffs then filed amended consolidated complaints in December 2014, and additional complaints have followed from retaile rs acting in their individual capacities. On February 21, 2017, the court granted both the indirect purchaser plaintiffs’ and the direct purchaser plaintiffs’ motions for class certification. Discovery in these cases is now closed . In January 2018, we reac hed agreements in principle with the various plaintiff groups to settle the multidistrict litigation. The FTC has also filed suit to challenge the Lidoderm ® settlement, initially bringing antitrust claims against Watson, Endo, and Allergan in Pennsylvania federal court in March 2016. The FTC voluntarily dismissed those claims in October 2016, but in January 2017, it re-filed the claims, along with a stipulated order for permanent injunction, to settle its claims against Endo, in the same California federal court in which the private multidistrict litigation referenced above, is pending. On February 3, 2017, the State of California filed a complaint against Allergan and Watson, and that complaint has also been assigned to the California court presiding over t he multidistrict litigation. After the FTC dismissed its claims in Pennsylvania, but before it re-filed them in California, Watson and Allergan filed suit against the FTC in the same Pennsylvania federal court where the agency had initially brought its law suit, seeking a declaratory judgment that the FTC’s claims are not authorized by statute, or, in the alternative, that the FTC does not have statutory authority to pursue a disgorgement remedy. That declaratory judgment action remains pending, and on March 28, 2017, the court in California stayed the FTC’s claims against Allergan and Watson pending there, and on October 27, 2017, entered a stipulation staying the State of California’s claims against Allergan and Watson, pending the outcome of the declarator y judgment action in Pennsylvania. Annual sales of Lidoderm ® at the time of the settlement were approximately $1.2 billion, and were approximately $1.4 billion at the time Actavis launched its generic version in September 2013. Since November 2013, numero us lawsuits have been filed in various federal courts by purported classes of end payer s for, and direct purchasers of, Aggrenox ® (dipyridamole/aspirin tablets) against Boehringer Ingelheim (“BI”), the innovator, and several Teva subsidiaries. The lawsuits allege, among other things, that the settlement agreement between BI and Barr entered into in August 2008 violated the antitrust laws. A multidistrict litigation has been established in the U.S. District Court for the District of Connecticut. Teva and BI’ s motion to dismiss was denied in March 2015. On April 11, 2017, the Orange County District Attorney filed a complaint for violations of California’s Unfair Competition Law based on the Aggrenox ® patent litigation settlement. Annual sales of Aggrenox ® were approximately $340 million at the time of the settlement and approximately $455 million at the time generic competition began in July 2015. Teva has settled with the putative class of direct purchasers. Th e settlement was approved by the Court on December 18, 2017. Teva has also settled with the opt out direct purchaser plaintiffs. On January 8, 2018 , Teva reached an agreement to settle with the end payer class plaintiffs. That settlement has been filed for preliminary approval. A provision has been includ ed in the financial statements for this matter. Since January 2014, numerous lawsuits have been filed in the U.S. District Court for the Southern District of New York by purported classes of end payer s for and direct purchasers of Actos ® and Acto plus Met ® (pioglitazone and pioglitazone plus metformin) against Takeda, the innovator, and several generic manufacturers, including Teva, Actavis and Watson. The lawsuits allege, among other things, that the settlement agreements between Takeda and the generic ma nufacturers (including Takeda’s December 2010 settlement agreement with Teva) violated the antitrust laws. The Court dismissed the end payer lawsuits against all defendants in September 2015. In October 2015, the end payer s appealed that ruling, and on Mar ch 22, 2016, a stipulation was filed dismissing Teva and the other generic defendants from the appeal. On February 8, 2017, the Court of Appeals for the Second Circuit affirmed the dismissal in part and vacated and remanded the dismissal in part with respe ct to the claims against Takeda. The direct purchasers’ case had been stayed pending resolution of the appeal in the end payer matter, and the direct purchasers amended their complaint for a second time after the Second Circuit’s decision. Defendants had m oved to dismiss the direct purchasers’ original complaint and supplemental briefing on that motion based on the new allegations in the amended complaint was completed on June 29, 2017. At the time of the settlement, annual sales of Actos ® were approximatel y $3.7 billion and annual sales of ACTO plus 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 ACTO plus Met ® were approximately $430 m illion. In June 2014, two groups of end payer s sued AstraZeneca and Teva, as well as Ranbaxy and Dr. Reddy’s, in the Philadelphia Court of Common Pleas for violating the antitrust laws by entering into settlement agreements to resolve the esomeprazole (ge neric Nexium ® ) patent litiga |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | NOTE 1 4 —EQUITY: a. Ordinary shares and ADSs As of December 31, 2017 , Teva had approximately 1.1 b illio n ordinary shares issued (same as December 31, 2016 ). Teva ordinary shares are traded on the T el-Aviv Stock Exchange and on the New York Stock Exchange , in the form of American Deposit a ry Shares ( “ ADSs ” ) , each of which represents one ordinary share . On December 8, 2015, the Company completed an offering of 54 million ADSs at $62.50 per share. The net proceeds from the offering of $3.3 billion, together with the net proceeds of $3.3 billion from the mandatory convertible preferred shares offering referred to below, were used to finance a portion of the cash consideration payable in connection with the Actavis Generics acquisition an d related fees and expenses, to finance the Rimsa acquisition and for other general corporate purposes. On January 6, 2016, Teva sold an additional 5.4 million ADSs , pursuant to the underwriters' exercise in full of their overallotment option . As a result , Teva received an additional $329 million in net proceeds, for an aggregate of approximately $3.62 billion including the initial closing. On August 2, 2016, Teva issued approximately 100.3 million Teva shares to Allergan in connection with the closing of the Actavis Generics acquisition. b. Mandatory convertible preferred shares O n December 8, 2015, Teva completed an offering of 3,375,000 of its 7% mandatory convertible preferred shares. The mandatory convertible preferred shares have no voting rights and rank senior to Teva's ordinary shares with respect to dividends and distributions upon liquidation, winding-up or dissolution . Dividends on the mandatory convertible preferred shares are payable on a cumulative basis when, as and if declared by Teva's boar d of directors at an annual rate of 7% on the liquidation preference of $1,000.00 per mandatory convertible preferred share. Declared dividends will be paid in cash on March 15, June 15, September 15 and December 15 of each year, through and including Dece mber 15, 2018. Dividends accumulate from the most recent date as to which dividends have been paid or, if no dividends have been paid, from the first original issue date and, to the extent legally permitted and declared by the board of directors, such div idend will be paid in cash on each dividend payment date; provided that any undeclared or unpaid dividends will continue to accumulate. So long as any m andatory c onvertible p referred s hare remains outstanding, no dividend or distribution shall be declared or paid on Teva's ordinary shares, ADSs or any other class or series of junior shares, and none of Teva's ordinary shares, ADSs or any other class or series of junior shares shall be purchased, redeemed or otherwise acquired for consideration by Teva or an y of Teva's subsidiaries unless all accumulated and unpaid dividends for all preceding dividend periods have been declared and paid upon, or a sufficient sum of cash has been set apart for the payment of such dividends to all outstanding m andatory c onverti ble p referred s hares. Each mandatory convertible preferred share will automatically convert on December 15, 2018 ( the " mandatory conversion date") into between 13.3 and 16.0 ADSs, subject to anti-dilution adjustments. At any time prior to the mandatory con version date, other than during a fundamental change conversion period as defined, holders of the mandatory convertible preferred shares may elect to convert each mandatory convertible preferred share into ADSs at the minimum conversion rate of 13.3 ADSs p er mandatory convertible preferred share, subject to anti-dilution adjustments. In addition, holders may elect to convert their mandatory convertible preferred shares during a specified period beginning on the fundamental change effective date, in which c ase such mandatory convertible preferred shares will be converted into ADSs at the fundamental change conversion rate and converting holders will also be entitled to receive a fundamental change dividend make-whole amount and any accumulated but unpaid div idends. On January 6, 2016, Teva sold an additional 337,500 mandatory convertible preferred shares pursuant to the underwriters exercise in full of their overallotment option. As a result, Teva received an additional $329 million in net proceeds, for an aggregate of approximately $3.62 billion including the initial closing. These additional 337,500 mandatory convertible preferred shares accumulated dividends from December 8, 2015. Share repurchase program In December 2011, Teva's Board of Directors authorized it to re purchase up to an aggregate amount of $3.0 billion of its ordinary shares/ADSs, of which $1.3 billion remained available for purchase. In October 2014, the Board of Directors authorized Teva to increase its share repurchase program by $1.7 billion to $3.0 billion, of which $2.1 billion remained available as of December 31, 2017 . Teva did not repurchase any of its shares during 2017 and currently cannot do so due to its accumulated deficit. The repurchase program has no time limit. Repurchases may be commenced or suspended at any time, subject to applicable law. The following table summarizes the shares repurchased and the amount Teva spent on these repurchases: Year ended December 31, 2017 2016 2015 (in millions) Amount spent on shares repurchased $ - $ - $ 439 Number of shares repurchased - - 7.7 c . Stock-based compensation plans: Stock-based compensation plans are comprised of employee stock option s , RSUs, PSUs, 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 2010 Long-Term Equity-Based Incentive Plan was approved by Teva's shareholders, under which 70 million equiva lent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant. The 2010 Plan expired on June 28, 2015 (except with respect to awards outstanding on that date), and no additional awards under the 2010 Plan may be made . On September 3, 2015, the Teva 2015 Long-Term Equity-Based Incentive Plan was approved by Teva's shareholders, under which 43.7 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for g rant. On April 18, 2016, Teva's shareholders approved an increase of an additional 33.3 million equivalent share units to the share reserve of Teva's 2015 Long-Term Equity-Based Incentive Plan, so that 77 million equivalent share units, including options e xercisable into ordinary shares, RSUs and PSUs, are approved for grant. On July 13, 2017, Teva's shareholders approved an increase of an additional 65 million equivalent share units to the share reserve of Teva's 2015 Long-Term Equity-Based Incentive Plan, so that 142 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, are approved for grant. As of December 31, 2017 , 99.4 million equivalent share units remain available for future awards. In the past, Teva h ad 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, RSUs and PSUs is generally from 1 to 4 years from the date of grant. The rights of the ordinary shares obtained from the exercise of options, RSUs or PSUs are identical to those of the other ordinary shares of th e Company. The contractual term of these options is primarily for seven years in prior plans and ten years for options granted under the 2010 and 2015 plans described above. Status of options A summary of the status of the options as of December 31, 2017 , 2016 and 2015 , and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercis able in respect thereof). Year ended December 31, 2017 2016 2015 Number (in thousands) Weighted average exercise price Number (in thousands) Weighted average exercise price Number (in thousands) Weighted average exercise price Balance outstanding at begining of year 32,789 $50.71 25,233 $49.69 26,733 $45.91 Changes during the year: Granted 15,467 32.08 10,895 53.21 7,655 59.82 Exercised (7) 17.44 (766) 44.24 (8,127) 46.88 Forfeited (4,953) 47.92 (1,382) 54.09 (1,028) 48.96 Expired (175) 59.81 (1,191) 52.79 - Balance outstanding at end of year 43,121 44.32 32,789 50.71 25,233 49.69 Balance exercisable at end of year 19,129 47.94 14,468 46.06 11,299 44.67 The weighted average fair value of options granted during the years was generally estimated by using the Black-Scholes option-pricing model as follows: Year ended December 31, 2017 2016 2015 Weighted average fair value $5.7 $9.4 $10.9 The fair value of these options was estimated on the date of grant, based on the following weighted average assumptions: Year ended December 31, 2017 2016 2015 Dividend yield 3.7% 2.6% 2.3% Expected volatility 29% 25% 24% Risk-free interest rate 2.1% 1.4% 1.8% Expected term 5 years 5 years 5 years The expected term was estimated based on the weighted average period for which 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 optio ns 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, 2017 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 millions) Number of shares $ Years $ $- - $- - - - - Lower than $15.01 592 11.40 9.85 4.5 $15.01 - $25.00 1,462 16.97 9.70 2.9 $25.01 - $35.00 12,018 34.63 9.17 - $35.01 - $45.00 7,281 40.49 4.63 - $45.01 - $55.00 14,864 50.99 6.75 - $55.01 - $65.00 6,891 59.42 7.29 - $65.01 - $70.00 13 66.67 3.21 - Total 43,121 44.32 7.30 7.4 (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 millions) Number of shares $ Years $ $- - $- $15.01 - $25.00 11 17.33 5.23 * $25.01 - $35.00 1 25.76 5.94 - $35.01 - $45.00 7,054 40.54 4.53 - $45.01 - $55.00 8,944 49.68 5.82 - $55.01 - $65.00 3,105 59.82 7.21 - $65.01 - $70.00 14 66.67 3.21 - Total 19,129 47.94 5.57 * * Represents an amount less than 0.5 million. The aggregate intrinsic value in the above tables represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $18.95 on December 31, 2017 , 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. As of December 31, 2017 , there was a limited amount of options exercisable that were in-the-money. The total intrinsic value of options exercised during the years ended December 31, 2017 was a limited amount , based on the Company’s average stock price of $25.62 . The total intrinsic value of options exercised during the years ended December 31, 2016 and 2015 was $5 mil lion and $120 million, respectively, based on the Company’s average stock price of $50.96 and $61.66 during the years then ended, respectively . Status of non-vested RSUs The fair value of RSUs and PSUs is estimated based on the market value of the Company’s stock on the date of award grant , less an estimate of dividends that will not accrue to RSU and PSU holders prior to vesting. The following table summarizes information about the number of RSUs and PSUs issued and outstanding: Year ended December 31, 2017 2016 2015 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 4,636 $45.15 2,551 $51.43 2,466 $43.05 Granted 5,461 20.10 3,193 40.78 1,519 56.75 Vested (1,884) 39.63 (830) 45.79 (1,112) 41.04 Forfeited (745) 42.84 (278) 46.08 (322) 48.27 Balance outstanding at end of year 7,468 27.95 4,636 45.15 2,551 51.43 The Company expenses compensation costs based on the grant-date fair value. For the years ended December 31, 2017 , 2016 and 2015 , the Company recorded stock-based compensation costs as follows: Year ended December 31, 2017 2016 2015 (U.S. $ in millions) Employee stock options $ 64 $ 56 $ 62 RSUs and PSUs 69 66 55 Total stock-based compensation expense 133 122 117 Tax effect on stock-based compensation expense 24 26 19 Net effect $ 109 $ 96 $ 98 The total unrecognized compensation cost before tax on employee stock options and RSU /PSUs amounted to $126 million and $14 8 million, respectively, at December 31, 2017 , and is expected to be recognized over a weighted average period of approximately 1.6 year s. d. Dividends: Commencing in April 2015 , d ividends on our ordinary shares were declared in U.S. dollars . Dividends paid per share in the years ended December 31, 2017 , 2016 and 2015 were $0.85 , $1.36 and $1.36 , respect ively. In addition, d ividend s paid on our mandatory convertible preferred shares per share in the year s ended December 31, 2017 and 2016 were $70 and $ 71.56, respectively . As part of our restructuring plan, in December 2017, Teva announced an immediate suspension of dividends on its ordinary shares and ADSs and that dividends on the company mandatory convertible preferred shares will be evaluated on a quarterly basis per current practice. e. A ccumulated other comprehensive income (loss ): The components of accumulated other comprehensive loss attributable to Teva are presented in the table below: Net Unrealized Gains/(Losses) Benefit Plans Foreign currency translation adjustments Available-for-sale securities Derivative financial instruments Actuarial gains/(losses) and prior service (costs)/credits Total Balance, January 1, 2015 (1,283) (7) 40 (93) (1,343) Other comprehensive income/(loss) before reclassifications (1,131) (413) 137 33 (1,374) Amounts reclassified to the statements of income 24 737 (2) 4 763 Net other comprehensive income/(loss) before tax (1,107) 324 135 37 (611) Corresponding income tax 6 (5) - (2) (1) Net other comprehensive income/(loss) after tax* (1,101) 319 135 35 (612) Balance, December 31, 2015 (2,384) 312 175 (58) (1,955) Other comprehensive income/(loss) before reclassifications (355) (456) (491) (26) (1,328) Amounts reclassified to the statements of income 3 140 14 (6) 151 Net other comprehensive income/(loss) before tax (352) (316) (477) (32) (1,177) Corresponding income tax (33) (3) - 9 (27) Net other comprehensive income/(loss) after tax* (385) (319) (477) (23) (1,204) Balance, December 31, 2016 (2,769) (7) (302) (81) (3,159) Other comprehensive income/(loss) before reclassifications 1,075 64 (167) (3) 969 Amounts reclassified to the statements of income 378 (66) 27 (5) 334 Net other comprehensive income/(loss) before tax 1,453 (2) (140) (8) 1,303 Corresponding income tax - 5 - (2) 3 Net other comprehensive income/(loss) after tax* 1,453 3 (140) (10) 1,306 Balance, December 31, 2017 (1,316) (4) (442) (91) (1,853) *Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $63 million loss in 2017, $60 million loss in 2016 and $1 million loss in 2015 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Absract] | |
Income Taxes | NOTE 15—INCOME TAXES: a. Income before income taxes: Year ended December 31, 2017 2016 2015 (U.S. $ in millions) Parent Company and its Israeli subsidiaries $ 1,451 $ 1,516 $ 1,932 Non-Israeli subsidiaries (19,830) (692) 420 $ (18,379) $ 824 $ 2,352 b. Income taxes: Year ended December 31, 2017 2016 2015 (U.S. $ in millions) In Israel $ 96 $ 209 $ 149 Outside Israel (2,029) 312 485 $ (1,933) $ 521 $ 634 Current $ 373 $ 481 $ 298 Deferred (2,306) 40 336 $ (1,933) $ 521 $ 634 2017 2016 2015 (U.S. $ in millions) Income (loss) before income taxes $ (18,379) $ 824 $ 2,352 Statutory tax rate in Israel 24.0% 25.0% 26.5% Theoretical provision for income taxes $ (4,411) $ 206 $ 623 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 (253) (212) (337) Non-Israeli subsidiaries, including impairments (*) 3,817 546 447 U.S. Tax Cuts and Jobs Act effect (1,061) Increase (decrease) in other uncertain tax positions—net (25) (19) (99) Effective consolidated income taxes $ (1,933) $ 521 $ 634 * Income before income taxes includes goodwill impairment in non-Israeli subsidiaries that did not have a corresponding tax effect. 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 . c. Deferred income taxes: December 31, 2017 2016 Long-term deferred tax assets (liabilities)—net: (U.S. $ in millions) Inventory related(*) $ 40 $ 46 Sales reserves and allowances 201 311 Provision for legal settlements 171 232 Intangible assets (**) (3,132) (5,569) Carryforward losses and deductions and credits (***) 1,485 1,922 Property, plant and equipment (231) (312) Provisions for employee related obligations 142 108 Other 125 163 (1,199) (3,099) Valuation allowance—in respect of carryforward losses and deductions that may not be utilized (**) (1,504) (1,689) $ (2,703) $ (4,788) * Following the implementation of ASU 2016-16, the 2016 deferred taxes associated with the intra-entity transfers of inventory have been reclassified and presented under Prepaid expenses. ** The decrease in deferred tax liability is mainly due to impairment, amortization and changes in statutory tax rate following the enactment of Tax Cuts and Jobs Act. *** The amounts are shown after reduction for unrecognized tax benefits of $26 million and $23 million as of December 31, 2017 and 2016, respectively. This amount represents the tax effect of gross carryforward losses and deductions with the following expirations: 2018-2020 — $277 million; 2021-2027 — $465 million; 2028 and thereafter — $167 million. The remaining balance—$602 million—can be utilized with no expiration date. The deferred income taxes are reflected in the balance sheets among: December 31, 2017 2016 (U.S. $ in millions) Long-term assets—deferred income taxes 574 625 Long-term liabilities—deferred income taxes (3,277) (5,413) $ (2,703) $ (4,788) Balances are presented under long term deferred taxes, due to the implementation of ASU 2015-17. The 2016 deferred taxes associated with intra-entity transfers of inventory have been reclassified and presented under Prepaid expenses. 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 Compan y’s foreign subsidiaries. See n ote 1 5f . Year ended December 31, 2017 2016 2015 (U.S. $ in millions) Balance at the beginning of the year $ 734 $ 648 $ 713 Increase (decrease) related to prior year tax positions, net 56 23 (6) Increase related to current year tax positions 26 71 43 Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations (56) (103) (99) Liabilities assumed in acquisitions 273 101 - Other 1 (6) (3) Balance at the end of the year $ 1,034 $ 734 $ 648 Uncertain tax positions, mainly of a long-term nature, included accrued potential penalties and interest of $112 million, $83 million and $101 million as of December 31, 2017 , 2016 and 2015 , respectively. The total amount of interest and penalties reflected in the consolidated statements of income was a net increase of $29 million for the year ended December 31, 2017 , a net decrease of $18 million for the year ended December 31, 2016 and a net increase of $14 million for the year ended December 31, 2015 . Substantially all the above uncertain tax benefits, if recognized, would reduce Teva's annual effective tax rate. Teva does not expect un certain 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: Teva file s 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 200 7 . In 2013, Teva settled the 200 5 -2007 income tax as sessment 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 have be e n implemented in the audit of tax years 2008-2011, and are reflected in the provisions. T he Israeli tax authorities issued tax assessmen t decree s for 2008- 2012 , challe nging the Company's positions on several issues. Teva has protested the 2008-2012 decree s . 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 main ly through tax year 2008. 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 regu lations are subject to interpretation and tax litigation is inherently uncertain, these assessments can involve a series of complex judgments regarding future events. Incentives Applicable until 2013 Under the incentives regime applicable to the Company u ntil 2013, industrial projects of Teva and certain of its Israeli subsidiaries were eligible for “Approved Enterprise” status. Most of the projects in Israel have been granted Approved Enterprise status under the "alternative" tax benefit track which offe red tax exemption on undistributed income for a period of two to ten years, depending on the location of the enterprise. Upon distribution of such exempt income, the distributing company is subject to corporate tax at the rate ordinarily applicable to the Approved Enterprise’s income . Amendment 69 to the Investment Law Pursuant to Amendment 69 to the Investment Law (“Amendment 69”), a company that elected by November 11, 2013 to pay a corporate tax rate as set forth in that amendment (rather than the tax r ate applicable to Approved Enterprise income) with respect to undistributed exempt income accumulated by the company up until December 31, 2011 is entitled to distribute a dividend from such income without being required to pay additional corporate tax wit h 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. Teva invested the entire required amount in 2013. During 2013, Teva applied the provisions of Amendme nt 69 to certain exempt profits Teva accrued prior to 2012. Consequently, Teva paid $577 million in corporate tax on exempt income of $9.4 billion. Part of this income was distributed as dividends during 2013-2017, while the remainder is available to be di stributed as dividends in future years with no additional corporate tax liability. Incentives Applicable starting 2014 : The Incentives Regime – Amendment 68 to the Investment Law Under Amendment 68 to the Investment Law, which Teva started applying in 201 4, upon an irrevocable election made by a company, a uniform corporate tax rate will apply to all qualifying industrial income of such company (“Preferred Enterprise”), as opposed to the previous law’s incentives, which were limited to income from Approved Enterprises during the benefits period. Under the law, when the election is made, the uniform tax rate for 2014 until 2016 was 9% in areas in Israel designated as Development Zone A and 16% elsewhere in Israel. The uniform tax rate for Development Zone A, as of January 1, 2017, is 7.5% (as part of changes enacted in Amendment 73, as described below). The profits of these “Preferred Enterprise” will be freely distributable as dividends, subject to a 20% or lower withholding tax, under an applicable tax trea ty. Certain “Special Preferred Enterprises” 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 Preferred En terprises,” the approval of three governmental authorities in Israel is required. The New Technological Enterprise Incentives Regime – Amendment 73 to the Investment Law Starting 2017, part of the Company taxable income in Israel is entitled to a preferr ed 6% tax rate under Amendment 73 to the Investment Law . The new incentives regime applies to "Preferred Technological Enterprises" that meet certain conditions, including, inter alia: Investment of at least 7% of income, or at least NIS 75 million (approximately $19 million) in R&D activities; and One of the following: At least 20% of the workforce (or at least 200 employees) are employed in R&D; A venture capital investment approximately equivalent to at least $2 million was previously made in th e company; or Growth in sales or workforce by an average of 25% over the three years preceding the tax year. A "Special Preferred Technological Enterprise" is an enterprise that meets, inter alia conditions 1 and 2 above, and in addition has total annual c onsolidated revenues above NIS 10 billion (approximately $2.5 billion). Preferred Technological Enterprises are subject to a corporate tax rate of 7.5% on their income derived from intellectual property in areas in Israel designated as zona A and 12% else where, while Special Preferred Technological Enterprises are subject to 6% on such income. The withholding tax on dividends from these enterprises is 4% to foreign companies (or a lower rate under a tax treaty, if applicable). Income not eligible for Pref erred E nterprise benefits is taxed at the regular corporate tax rate , which was 24 % in 2017 . Starting January 2018, the regular corporate tax rate in Israel was reduced to 23%. 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. Applyin g these regulations reduce s the effect of U.S. dollar – NIS exchange rate 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 op erate in several jurisdictions outside Israel , some of which benefit from tax incentives such as reduced tax rates, investment tax credits and accelerated deductions. U.S. Tax reform On December 22, 2017, the U . S . enacted the Tax Cuts and Jobs Act (the " Act"), which among other provisions, reduced the U . S . corporate tax rate fr om 35% to 21%, effective January 1, 2018 . At December 31 , 2017, the Company has not completed its accounting for the tax effects of enactment of the Act; however the Company has ma de reasonable estimate s of the effects on its existing deferred tax balances and the one- time deemed repatriation tax for which provisional amounts have been recorded. The Company re-measured certain of its U.S. deferred tax assets and liabilities, based o n the rates at which they are expected to reverse in the future . The estimated tax benefit recorded related to the re-measurement of the deferred tax balance was $1.2 billion. The one-time deemed repatriation tax is based on the post-19 86 earnings and pro fits for which the Company has previously deferred from U . S . income taxes and is payable over 8 years. The Company recorded a provisional amount for its one-time deemed repatriation tax liability of Teva U . S . related to its foreign subsidiaries, resulting in an increase in income tax expense of $112 million. The aforesaid provisional amounts are based on the Company's initial analysis of the Act as of December 31, 2017. Given the significant complexity of the Act, anticipated guidance from the U.S. Treasury about implementing the Act, the potential for additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board related to the Act, as well as additional analysis a nd revisions to be conducted by the Company, these estimates may be adjusted during 2018. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities [Absract] | |
Financial Instruments and Risk Management | NOTE 16 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES: a. Foreign exchange risk management: In 2017 , approximately 44% of Teva's revenues were denominated in currencies other than the U.S. dollar . As a result, Teva is subject to significant foreign currency risks. The Company enters int o forward exchange contracts, purchases and writes options in order to hedge the c urrency exposure on balance sheet items. In a ddition, the Company takes measures to re duce 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 new Israeli shekel (NIS), the euro (EUR), the Swiss franc (CHF), the Japanese yen (JPY), the British pound (GBP), Canadian dollar (CAD) , the Polish zloty ( PLN ) , the Russian ruble ( RUB ) , other European currencies, the Mexican peso (MXN) and other Latin American currencies. Depending on market condition s, foreign currency risk also is managed through the use of foreign currency debt. The Company may hedge against possible fluctuations in foreign subsidiaries net assets (“net investment hedge”) . In these cases, the Company may use cross currency swaps and forward contracts . The counterparties to the derivatives are compr ised mainly of major banks and the Company is monitoring the associated inherent credit risks. The Company does not enter into derivative transactions for trading purposes. b . Interest risk management: The Company raises capital through various debt instruments, including straight notes that bear a fixed or variable interest rate, bank loans, securitizations and convertible debentures. In some cases, the Company has swapped from a fixed to a floating interes t rate (“fair value hedge”) and from a fixed to a fixed interest rate with an exchange from a currency other than the functional currency (“cash flow hedge”), thereby reducing overall interest expenses or hedging risks associated with interest rate fluctua tions. c. Derivative instrument disclosure: The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting: December 31, 2017 2016 (U.S. $ in millions) Cross-currency swap - cash flow hedge $ 588 $ 588 Interest rate swap - fair value hedge 500 500 Cross-currency swap—net investment hedge 1,000 - The following table summarizes the classification and fair values of derivative instruments: Fair value Designated as hedging instruments Not designated as hedging instruments December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ $ $ 17 $ 10 Other non-current assets: Cross-currency swaps - cash flow hedge 25 88 - Liability derivatives: Other current liabilities: Option and forward contracts (15) (17) Other taxes and long-term liabilities: Cross currency swaps—net investment hedge (96) Senior notes and loans: Interest rate swaps - fair value hedge (2) (2) - As of and for the year ended December 31, 2017 2016 (U.S. $ in millions) Sold receivables at the beginning of the year $ 621 $ 445 Proceeds from sale of receivables 4,944 3,784 Cash collections (remitted to the owner of the receivables) (4,863) (3,660) Effect of currency exchange rate changes 97 52 Sold receivables at the end of the year $ 799 $ 621 |
FINANCIAL EXPENSES NET
FINANCIAL EXPENSES NET | 12 Months Ended |
Dec. 31, 2017 | |
Financial Expenses Net [Abstract] | |
Financial Expenses - Net | NOTE 17—FINANCIAL EXPENSES- NET: Year ended December, 31 2017 2016 2015 (U.S. $ in millions) Venezuela devaluation (1) $ 42 $ 746 $ - Interest expenses and other bank charges 875 546 270 Income from investments (84) (51) (34) Foreign exchange (gains) losses - net 65 (49) (9) Other, net (2) (3) 2 142 Other-than-temporary impairment (3) - 136 631 Total finance expense — net $ 895 $ 1,330 $ 1,000 (1) For further information regarding the Venezuela devaluation, refer to note 1a. (2) Expenses in 2015 were comprised mainly of expenses relating to the debt tender offer and the termination of related swap agreements. (3) Other-than-temporary impairment in 2015 relates mainly to the Company holdings in Mylan shares. |
OTHER EXPENSES
OTHER EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Impairment [Abstract] | |
Restructuring And Impairment | NOTE 18—OTHER EXPENSES: a. Other assets impairments, restructuring and other items: Other assets impairments, restructuring and other items consisted of the following: Year ended December 31, 2017 2016 2015 (U.S. $ in millions) Impairment of long-lived assets (see notes 6 and 8) (1) $ 3,782 $ 746 $ 361 Contingent consideration (see note 3) 154 83 399 Acquisition, integration and related costs 105 261 221 Restructuring 535 245 183 Venezuela deconsolidation charge* 396 - - Other 102 84 12 Total $ 5,074 $ 1,419 $ 1,176 * Refer to note 1. (1) Including impairments related to exit and disposal activities 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 ot her 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, p ricing and volume projections as well as patent life and any significant changes to the competitive environment. As a result of Teva's plant rationalization acceleration, following the two year restructuring plan that was announced on December 14, 2017, to the extent the Company will change its plans on any given asset and/or the assumptions underlying such plan, there could be additional impairments in the future. In 2017 we recorded expenses of $5 .1 billion for impairments, restructuring and others, compa red to $1.4 billion of such expenses in 2016. The expenses in 2017 consisted of: Impairments of long-lived assets in 2017 were $3.8 billion, comprised of: (a) Identifiable IPR&D of $1. 6 billion, primarily comprised of: (i) $8 38 million related to revaluation of generics products acquired from Actavis due to development progress, changes in other key valuation indications (market size, legal landscape or launch date); (ii) $390 million related to discontinued Actavis Generics pro ducts; (iii) $1 53 million related to discontinued Rimsa projects; and (iv) $188 million related to discontinued specialty products in the United States primarily LAMA/LABA from Microdose, in addition to reduction in value of reziluzamab following the resu lts of the recent phase 3 clinical trial; (b) Identifiable product rights of $1.6 billion, primarily comprised of: (i) $ 5 83 million related to revaluation of Actavis Generics product rights in the United States (ii) $523 million related to Teva Takeda prod uct and marketing rights for certain products; (iii) $ 3 9 0 million related to Actavis Generics product rights in Europe and ROW; and (iv) $47 million related to termination of V ANTRELA product rights in the United States. Impairments of identifiable intangible assets were $589 million and $265 million in 2016 and 2015, respectively. ( c ) Impairments of property, plant a nd equipment were $544 million comprised of: ( 1 ) $382 million related to restructuring costs, mainly comprising: I. $156 million related to the planned closure of Teva’s facilities in Jerusalem, Israel; II. $144 million primarily related to plant and R&D rationalizations in Puerto Rico, New Jersey and Canada; and III. $69 million related to discontinued manufacturing activities at the Godollo, Hungary site during 2017, following company’s decision in the second quarter of 2017 to divest or close this facility. Teva previously recorded an impairment of $80 million for this facility in the fourth quarter of 2016. ( 2 ) Other impairment costs, mainly: I. $62 million re lated to site closures in Japan ; and II. $42 million related to the sale of company’s Ra'anana, Israel site. Property, plant and equipment impairment w as $ 14 9 million and $ 96 million in 2016 and 2015, respectively. Following an FDA audit of Teva’s active pharmaceutical ingredient (“API”) production facility in China in September 2016, Teva received a warning letter from the FDA in April 2017. Teva has undertake n corrective actions to address both the specific concerns raised by investigators as well as the underlying causes of those concerns and resumed shipments from this facility in May 2017. Teva has requested that the FDA conduct a follow-up inspection to cl ose the warning letter. Contingent consideration In 2017 , Teva recorded $154 million of contingent consideration expenses, compared to $83 million in 2016 . The expenses in 2017 consisted mainly of $178 million rela ted to BENDEKA in connection with royalty accruals, $40 million related to re-evaluation of a Labrys project, partially offset by a $89 million reversal of contingent consideration related to a cancelled LAMA/LABA (MicroDose) project. Acquisition, integra tion and related costs In 2017, Teva recorded $105 million of acquisition and integration expenses, compared to $261 million in 2016. The expenses in 2017 mainly consisted of expenses related to the acquisition and integration of Actavis Generics. Restructuring In 2017 , Teva recorded $535 million of restructuring expenses, compared to $245 million in 2016 . The expenses in 2017 were primarily related to Teca network restructuring plan, which seeks to further o ptimize and consolidate its manufacturing footprint and restructure its generic R&D network. In addition Teva incurred restructuring expenses in connection with the acquisition of Actavis Generics. In addition Teva recorded $ 382 million impairment of PP&E related to restructuring costs as detailed in " — Impairments" above. The following table provides the components of costs associated with Teva's restructuring plan including costs related to exit and disposal activities: Year ended December 31, 2017 2016 2015 (U.S. $ in millions) Restructuring Employee termination $ 443 $ 211 $ 183 Other 92 34 - Total $ 535 $ 245 $ 183 The following table provides the components of and changes in the Company's restructuring accruals: Employee termination costs Other Total (U.S. $ in millions ) Balance as of January 1, 2016 $ (105) $ (10) $ (115) Provision (211) (34) (245) Utilization and other* 172 35 207 Balance as of December 31, 2016 $ (144) $ (9) $ (153) Provision (443) (92) (535) Utilization and other* 293 84 377 Balance as of December 31, 2017 $ (294) $ (17) $ (311) * Includes adjustments for foreign currency translation. On December 14, 2017, Teva’s President and CEO announced the launch of comprehensive two year restructuring plan (the "Plan") in order to restore the Company's financial security and stabiliz e its business. The P lan is intended to reduce Teva’s total cost base by $3 billion by the end of 2019, out of an estimated cost base of $16.1 billion in 2017 . More than half of the reduction is expected to be achieved by the end of 2018. The company expects to record a restructuring charge as a result of the impl e mentation of the P lan in 2018, mainly related to employee termination benefit costs , with additional charges possible following decisions on closures or divestments of manufacturing plants, R&D facilities, headquarters and other office locations . The P lan will focus on: • The immediate implementation of the new unified and simplified organizational structure, announced on November 27, 2017, which is intended to deliver cost savings and increase internal efficiencies. • Optimizat ion of the global generics portfolio, specifically in the United States, through price adjustments and/or product discontinuations. Restructuring of the Company’s manufacturing and supply network, including the closures or divestments of a significant numb er of manufacturing plants in the United States, Europe, Israel and Growth Markets • Closures or divestments of a significant number of R&D facilities, headquarters and other office locations across all geographies . • A thorough review of all R&D programs in order to prioritize core projects while maintaining a substantial pipeline. These steps are expected to result in the reduction of 14,000 positions globally (approximately 25% of Teva’s total workforce as of December 31, 2017) by the end of 2019. b . Share in profits or losses of associated companies–net: Share in profits or losses of associated companies – net, were a loss of $3 million in 201 7 , a gain of $8 million in 2016, and a loss of $121 million in 2015 respectively. |
LEGAL SETTLEMENTS
LEGAL SETTLEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Legal [Abstract] | |
Legal [TextBlock] | NOTE 19 —LEGAL SETTLEMENTS AND LOSS CONTINGENCIES: Legal settlements and loss contingencies for 2017 amounted to $500 million, compared to $899 million and $631 million in 2016 and 2015 , respectively. The 2017 expense primarily consisted of reserve for the carvedilol jury trial loss established in Q2 2017 . The expenses in 2016 primarily consisted of a $519 million provision established in connection with the FCPA settlement with the DOJ and SEC and a $225 million provision established in connection with the ciprofloxacin settlement . As of December 31, 201 7 and 2016, accrued amount s for legal settlements and loss contingencies of $ 1.2 billion an d $1. 5 billion , respectively, a re recorded in accrued expenses . |
SEGMENTS
SEGMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | NOTE 20 – SEGMENTS: Teva has two reportable segments: generic and specialty medicines. The generic medicines segment develops, manufactures, sells and distributes generic or branded generic medicines. This segment includes Teva's over-the-counter ("OTC") business, including PGT, Teva's consumer healthcare joint venture with P&G. Also included in this segment is Teva's API manufacturing businesses. The specialty medicines segment engages in the development, manufacture, sale and di stribution of branded specialty medicines, most significantly in the core therapeutic areas of central nervous system medicines and respiratory medicines, as well as other therapeutic areas, such as oncology, women’s health and selected other areas. Teva' s other activities include the distribution of pharmaceutical products mainly in the United States, Israel and Hungary, the sale of medical devices and contract manufacturing services related to products divested in connection with the Actavis Generics a cquisition and other miscellaneous items. Following the Actavis Generics and Anda acquisitions in 2016 , Teva conducted an analysis of its business segments, resulting in a change to Teva's segment reporting and goodwill assignment. Teva’s management reasse ssed its organizational structure and concluded that in order to enhance its managers’ accountability and gain better control over all activities, its reporting segments will be reorganized as follows, commencing in the fourth quarter of 2016: The generic medicines segment includes all of Teva ’s legacy generics activities , with the addition of: All Actavis Generics activities, excluding contract manufacturing services related to products divested in connection with the Actavis Generics acquisition ; and Teva’s OTC business. The specialty medicines segment includes all of Teva ’s specialty activity without any change. Other non-segment activities include other business activities (excluding the OTC business), with the addition of: Contract manufacturing se rvices related to products divested in connection with the Actavis Generics acquisition; and Anda’s distribution activity. All the above changes have been reflected in retroactive revision of prior period segment information . Teva's chief executive officer, who is the chief operating decision maker (“CODM”), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the two identified reportable se gments, namely generic and specialty medicines to make decisions about resources to be allocated to the segments and assess their performance. Segment profit is comprised of gross profit for the segment, less R&D and S&M expenses related to the segment. Se gment profit does not include G&A expenses, amortization, research and development in process, inventory step up and certain other items . Beginning in 2015, expenses related to equity compensation are excluded from our segment results. Beginning in 2016, o ur OTC business is included in our generic medicines segment. The data presented ha s been conformed to reflect these changes for all relevant periods. Teva manages its assets on a company basis, not by segments, as many of its assets are shared or commingl ed. Teva's CODM does not regularly review asset in formation by reportable segment and therefore Teva does not report asset information by repo rtable segment. During the fourth quarter of 2017, Teva announced a new organizational structure and leadership changes. . Under this new structure, Teva's commercial business will no longer have two separate global groups for generics and specialty medicines, and will be integrated into one commercial organization, operating through three regions – North America, E urope and Growth Markets. Each region will manage the entire portfolio of Teva's medicines – including generics, specialty and OTC. The former Generic R&D and Specialty R&D organizations will be combined into one global group with overall responsibility f or all R&D activities – generic s , specialty and biologic s . As a result of the changes in structure and operations in late 2017 and early in 2018, the Company is evaluating necessary future changes to its internal financial reporting system, to better alig n the internal reporting with the Company ’s business going forward. I t is anticipated that the transition to the new business structure will be completed in the first quarter of 2018, at which point management will reorganize its operations and reporting structure and begin to allocate resources to its operations under the new segment structure . a. Segment information: Generics Specialty Year ended December 31, Year ended December 31, 2017 2016 2015 2017 2016 2015 (U.S.$ in millions) Revenues $ 12,257 $ 11,990 $ 10,540 $ 7,914 $ 8,674 $ 8,338 Gross profit 5,115 5,696 4,903 6,877 7,558 7,200 R&D expenses 702 659 519 884 998 918 S&M expenses 1,584 1,727 1,459 1,660 1,899 1,921 Segment profit $ 2,829 $ 3,310 $ 2,925 $ 4,333 $ 4,661 $ 4,361 Year ended December 31, 2017 2016 2015 U.S.$ in millions Generic medicines profit 2,829 3,310 2,925 Specialty medicines profit 4,333 4,661 4,361 Total segment profit 7,162 7,971 7,286 Profit of other activities 86 68 75 7,248 8,039 7,361 Amounts not allocated to segments: Amortization 1,444 993 838 General and administrative expenses 1,330 1,285 1,360 Other assets impairments, restructuring and others items** 5,074 1,419 1,176 Goodwill impairment 17,100 900 - Inventory step-up 67 383 - Other R&D expenses 221 426 69 Costs related to regulatory actions taken in facilities 47 153 36 Legal settlements and loss contingencies 500 899 631 Gain on sales of business (1,083) (720) (45) Other unallocated amounts* 32 147 (56) Consolidated operating income (loss) (17,484) 2,154 3,352 Financial expenses - net 895 1,330 1,000 Consolidated income (loss) before income taxes $ (18,379) $ 824 $ 2,352 * Including for 2016, $133 million in inventory-related expenses in connection with the devaluation in venezuela. ** Including for 2017, $396 million related to Venezuela deconsolidation charge. b. Segment revenues by geographic area: Year ended December 31, 2017 2016 2015 (U.S.$ in millions) Generic Medicines United States $ 5,036 $ 4,556 $ 4,795 Europe 3,994 3,563 3,146 Rest of the World 3,227 3,871 2,599 Total Generic Medicines 12,257 11,990 10,540 Specialty Medicines United States 5,686 6,724 6,442 Europe 1,780 1,598 1,518 Rest of the World 448 352 378 Total Specialty Medicines 7,914 8,674 8,338 Other Revenues United States 1,251 369 12 Europe 308 248 226 Rest of the World 655 622 536 Total Other Revenues 2,214 1,239 774 Total Revenues $ 22,385 $ 21,903 $ 19,652 * We define our European region as the European Union and certain other European countries. Our revenues from external customers attributed to Israel were less than 5% of our consolidated revenues in the years ended December 31, 2017, 2016 and 2015, respectively. c. Net revenues from specialty medicines were as follows: Year ended December 31, 2017 2016 2015 (U.S. $ in millions) CNS $ 4,426 $ 5,283 $ 5,213 Copaxone® 3,801 4,223 4,023 Azilect® 170 410 384 Nuvigil® 61 200 373 Respiratory 1,270 1,274 1,129 ProAir® 501 565 549 Qvar® 361 462 392 Oncology 1,135 1,139 1,201 Treanda® 658 661 741 Women's health 426 458 461 Other Specialty* 657 520 334 Total Specialty Medicines $ 7,914 $ 8,674 $ 8,338 * Includes the $150 million royalty payment from the Ninlaro® transaction in 2017. It is impractical to present revenues by product for our generic medicines segment. A significant portion of Teva’s revenues, and a higher proportion of the profits, come from the manufacture and sale of patent-protected pharmaceuticals. Many of Teva’s 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, Teva no longer has patent exclusivity on t hese products, and subject to regulatory approval, generic pharmaceutical manufacturers are able to produce and market similar (or purportedly similar) products and sell them for a lower price. The commencement of generic competition, even in the form of non-equivale nt 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 Teva’s results of operations and financial condition. In particular, Teva relies heavily on sales of COPAXONE , its leading specialty medicine. In October 2017, the FDA approved a generic version of COPAXONE 40 mg/mL and a second generic version of COPAXONE 20 mg/mL. A hybrid version of COPAXONE 40 mg/mL was approved in the European Union (“EU”). Any substantial reduction in the number of patients taking treated with COPAXONE due to existing or potential new generic versions would likely have a material adverse effect on Teva’s financ ial results and cash flow s . COPAXONE 40 mg/mL is protected by five U.S. Orange Book patents that expire in 2030. These patents have been challenged in proceedings in the United States. We are appealing certain adverse U.S. District Court and Patent Trial and Appeal Board decisions to defend these patents in the United States. At least one competitor has obtained final FDA approval and has launched its generic version of COPAXONE 40 mg/mL. This launch, prior to final resolution of the pending patent litigat ion, should be considered an “at-risk” launch, which means that if the pending litigation is resolved in our favor, the company selling this generic medicine could face significant damages claims and other potential remedies. COPAXONE 40 mg/mL is also prot ected by one European patent expiring in 2030. This patent is being challenged in Italy and Norway and has been opposed at the European Patent Office. The U.K. High Court found this patent invalid and our application for permission to appeal this decision was rejected. Teva's multiple sclerosis ( “MS”) franchise includes COPAXONE products and laquinimod. The profitability of the multiple sclerosis MS franchise is comprised based on of COPAXONE revenues and minus cost of goods sold as well as S&M and R&D expenses related to the MS f ranchise. It does not include G&A expenses, amortization and certain other items. The profit ability of the multiple sclerosis MS franchise as a percentage of COPAXONE revenues was 80.6% , 81.3% and 76.7% in 2017 , 2016 and 2015 , respectively. The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2017, 2016 and 2015. Percentage of Third Party Net Sales 2017 2016 2015 McKesson Corporation 16% 15% 20% AmerisourceBergen Corporation 15% 19% 20% Most of Teva's revenues from these customers were in the United States. e. Property, plant and equipment—by geographical location were as follows: December 31, 2017 2016 (U.S. $ in millions) Israel $ 2,180 $ 2,323 United States 1,109 1,135 Croatia 561 542 Germany 423 337 Japan 376 427 Hungary 368 422 Other 2,656 2,887 Total property, plant and equipment $ 7,673 $ 8,073 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 21—EARNINGS (LOSS) PER SHARE: The net income attributable to Teva and the weighted average number of ordinary shares used in computation of basic and diluted earnings per share for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 (U.S. $ in millions, except share data) Net income (loss) used for the computation of diluted earnings per share $ (16,525) $ 68 $ 1,573 Weighted average number of shares used in the computation of basic earnings per share 1,016 955 855 Add: Additional shares from the assumed exercise of employee stock options and unvested RSUs - 3 5 Weighted average number of additional shares issued upon the assumed conversion of convertible senior debentures - 3 4 Weighted average number of shares used in the computation of diluted earnings per share 1,016 961 864 In computing dilutive earnings or loss per share for the years ended December 31, 2017 , 2016 and 2015 , no account was taken of the potential dilution of the assumed exercise of employee stock options, RSUs and PSUs amounting to 38 million, 4 million and 1 million weighte d average shares, respectively, since they had an anti-dilutive effect on earnings per share. Additionally, in computing dilutive earnings per share for the year s ended December 31, 201 7 and 2016 , no account was tak en of the potential dilution of the mandatory convertible preferred shares amounting to 59 million weighted average shares , since they had an anti-dilutive effect on earnings (loss) per share . |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data [TextBlock] | NOTE 22 – SELECTED QUARTERLY FINANCIAL DATA ( UNAUDITED) : The following table presents selected unaudited quarterly financial data for 2017 and 2016: 2017* 4th quarter** 3rd quarter 2nd quarter** 1st quarter U.S dollars in milions (except per share amounts) Net revenues 5,459 5,611 5,720 5,650 Gross profit 2,542 2,644 2,855 2,839 Net income (11,730) 610 (5,970) 641 Net income (loss) attributable to Teva (11,535) 595 (5,970) 645 Net income (loss) attributable to ordinary shareholders (11,600) 530 (6,035) 580 Earning per share attributable to ordinary shareholders: Basic (11.41) 0.52 (5.94) 0.57 Diluted (11.41) 0.52 (5.94) 0.57 2016 4th quarter 3rd quarter 2nd quarter 1st quarter U.S dollars in milions (except per share amounts) Net revenues 6,492 5,563 5,038 4,810 Gross profit 3,390 2,801 2,877 2,791 Net income (974) 410 242 633 Net income (loss) attributable to Teva (973) 412 254 636 Net income (loss) attributable to ordinary shareholders (1,038) 348 188 570 Earning per share attributable to ordinary shareholders: Basic (1.02) 0.35 0.21 0.62 Diluted (1.02) 0.35 0.20 0.62 * Certain comparative figures in 2017 have been reclassified to conform to the fourth quarter presentation. **Losses in the second and fourth quarters of 2017 were primarily due to our goodwill impairments of $6.1 billion and $11 billion, respectively. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 (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, 2017 $ 191 $ 12 $ 51 $ (22) $ 232 Year ended December 31, 2016 $ 146 $ 5 $ 61 $ (21) $ 191 Year ended December 31, 2015 $ 149 $ 18 $ (6) $ (15) $ 146 Allowance in respect of carryforward tax losses: Year ended December 31, 2017 $ 1,690 $ 173 $ 390 $ (748) $ 1,505 Year ended December 31, 2016 $ 760 $ 135 $ 1,137 $ -342 $ 1,690 Year ended December 31, 2015 $ 671 $ 249 $ 1 $ -161 $ 760 |
SIGNIFICANT ACCOUNTING POLICI30
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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. Basis of presentation and u se of estimates The co nsolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In preparing the Company’s consolidated financial statements, management is required to make estimates and assumpt ions 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 purchase price allocation on acquisitions including determination of useful lives and contingent consideration; assessing c ompliance with debt covenants; determining the valuation and recoverability of intangible assets and goodwill; and assessing sales reserves and allowances, uncertain tax positions, valuation allowances, contingencies, inventory valuation and restructuring. |
Principles of consolidation | Pri nciples of consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries and VIE for which the Company is considered the primary beneficiary. For those consolidated subsidiaries where Teva owns less than 100%, the outside shareholders’ interests are shown as non-controlling interests in equity. Investments in affiliates over which the Company has significant influence but not a controlling interest, are carried on the equity basis. For VIEs, th e 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 on consolidat ion; profits from intercompany sales, not yet realized outside the Group, are also eliminated. |
Investee companies | e. 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 equi ty 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 indica te the carrying amount may not be recoverable. Impairments on investee companies are recorded in the income statement under share in profits or losses of associated companies – net. |
Cash and cash equivalents | h. 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 investment in 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 | k. Inventories: Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials, purchased products, manufactured finished products, products in process and capitalized production costs are determined predominantly on a standard cost basis, approximating average costs. Other methods which are utilized for determining the value of inven tories are moving average, cost basis and the first in first out method.Teva regularly reviews its inventories for impairment and reserves are established when necessary. 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. |
Investment In Securities | g. 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 o ther 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 t axes, 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. Rea lized 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 C ompany 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 rel ated to other factors is recognized in other comprehensive income. |
Impairment in value of long-lived assets | l. Long-lived assets: Teva's long-lived, non-current assets are comprised mainly of goodwill, identifiable intangible assets and property, plant and equipment. All long-lived assets are monitored for impairment indicators throughout the year. Impairment testing for goodwill and all identifiable intangible assets is performed at least annually. When necessary, charges for impairments of long-lived assets are recorded for the amount by whi ch the fair value is less than the carrying value of these assets. |
Goodwill and indefinite life intangible assets | Goodwill Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any non-controlling interest in the acquiree, over the assigned fair values of the identifiable net assets acquired. Goodwill is not amortized, and is assigned to reporting units and tested for impairment at least on an annual basis, in the fourth quarter of the fiscal year. The goodwill impairment test is performed according to the following principles: 1. An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. 2. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying mount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized. An interim goodwill impairment test may be required in advance of the annual impairment test if events occur that indicate impairment might be present . For example, a substantial decline in the Company’s market capitaliza tion, unexpected adverse business conditions, economic factors and unanticipated competitive activities may indicate that an interim impairment test is required . In the event that the Comp any’s market capitalization decline s below its book value, the Compa ny consider s the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists |
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 equi valent 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 benefit models, if more appropriate, which is determined by identifying the period and man ner 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 w hen separable . Whenever impairment indicators are identified for definite life intangible assets, Teva reconsiders the asset's estimated life, calculates the undiscounted value of the asset's or asset group's cash flows and compares such value against the asset's or asset group's carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value based on the discounted cash flows. I ndefinite life intangible assets are mainly comprised of research and development in-process assets. Teva monitors these assets for items such as research and development milestones and progress to identify any triggering events. Annually or when triggerin g events are present, Teva determines the fair value of the asset based on discounted cash flows and records an impairment loss if book value exceeds fair value. IPR&D acquired in a business combination is capitalized as an indefinite life intangible asse t 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 monitored triggering events and tested for im pairment. Upon completion of the related research and development efforts, management determines the 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 | Pro perty, 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; machiner y and equipment, mainly 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. |
Contingencies | m. Contingencies: The Company is involved in various pa tent, 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 , contingent consid eration, other contingen t liabilities incurred or 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, t he 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. T eva records anticipated recoveries under existing insurance contracts that are probable of occurring at the gross amount that is expected to be collected. Legal costs are expensed as incurred. |
Uncertain Tax Position | q. Uncertain tax positions: Teva recognizes 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 st atements for a particular tax position is based on the largest benefit that is more likely than not to be realized. Teva regularly re-evaluates its tax positions based on developments in its tax audits, statute of limitations expirations, changes in tax la ws and new information that can affect the technical merits and change the assessment of Teva's ability to sustain the tax benefit. In addition, the Company classifies interest and penalties recognized in the financial statements relating to uncertain tax position under the income taxes line item. Provisions for uncertain tax positions, whereas Teva has net operating losses to offset additional income taxes that would result from the settlement of the tax position, are presented as a reduction of the deferr ed tax assets for such net operating loss |
Treasury shares | n. Treasury shares: Treasury shares are held by Teva's s ubsidiaries and presented as a reduction of Teva shareholders’ equity and carried at their cost to Teva, under treasury shares. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | o. Stock-based compensation: Teva recognizes the estimated fair value of share-based awards, restricted share units (“RSU s”) and performance share units ("PSUs") under stock-based compensation costs. The compensation expense for PSUs is recognized only if it is probable that the performance condition will be achieved. 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 e xpense for the RSUs and PSUs 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 and PSU holders prior to vesting. |
Revenue recognition | s. 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 o ccurs 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 deducti ons, 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. Provisio ns for chargebacks, rebates including Medicaid and other governmental program discounts and other promotional items, such as shelf stock adjustments, are included in sales reserves and allowances (“SR&A”). These provisions are recognized concurrently with the sales of products. Prompt payment discounts are netted against trade receivable s. Calculations for these deductions from sales are based on historical experience and the specific terms in the individual agreements. Chargebacks and rebates are th e largest components of sales reserves and allowances. Provisions for chargebacks are determined using historical chargeback experience and expected chargeback levels and wholesaler sales information for 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 m arket 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 on the occurrence of a substantive element specified in the contract or as a measure of substantive progress toward completion u nder 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. Royalty revenue is recognized as a component of net revenues in accordance with the terms of their respective contractual agreements when collectability is reasonably assured and when revenue can be reasonably measured. Revenues included royalty income and income from servic es of $394 million , $343 million and $140 million in the years ended December 31, 201 7 , 201 6 and 201 5 , respectively |
Research and development expenses | t. Research and development: Research and development expenses are charged to income 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 . 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. |
Shipping and handling costs | u. Shipping and handling costs: Shipping and handling costs, which are included in selling and marketing expenses, were $164 million , $134 million and $127 million for the years ended December 31, 201 7 , 201 6 and 201 5 , respectively. |
Advertising expenses | v. Advertising costs : Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 201 7 , 201 6 and 201 5 were $318 million , $312 million and $297 million , respectively. |
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 rea lized. In determining whether a valuation allowance is needed, Teva considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation a llowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. Deferred income tax liabilities and asset s are classified as non-current. Deferred tax has not been provided on the following items: 1. T axes 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. The determination of the amount of related unrecognized deferred tax liability is not practicable. 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 15f |
Earnings per share | y. Earnings per share: Basic earnings per share are computed by dividing the net income attributable to ordinary shareholders by the weighted average number of ordinary shares (including fully vested RSUs and PSUs) outstanding during the y ear, 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 and PSUs granted under employee stock compensation plans and one series of convertible senior debentures, using the treasury stock method; (ii) the conversion of the remaining convertible senior debentures using the “if-converted” method, by adding to net income interest expense on the d ebentures 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; and (iii) the conversion of the mandatory convertible preferred shares using the “if- converted” method by adding to net income attributable to ordinary shareholders the dividends on the preferred shares and by adding the weighted average number of shares issuable upon assumed conversion of the mandatory convertible preferred shares. |
Concentration of credit risks | j. Concentration of credit risks: Most of Teva’s cash and cash equivalents (which, along with investment in securities, totaled $ 1.1 b illion at December 31, 201 7 ) 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 United States ., has been significantly affected by consolidation among managed care providers, large pharmacy chains, wholesaling organizations and other buyer groups. The U.S. market constituted approximately 53% of Teva's consolidated revenues in 2017 . 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 colla teral. An appropriate allowance for doubtful accounts is included in the accounts and netted against trade receivables. |
Derivative | r. Derivatives and hedging: The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, currency options, cross-currency swap contracts, interest rate s wap contracts and treasury locks). 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. Derivative instruments are recognized on the balance sheet at their fair value. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recogni zed in financial expenses—net in the statements of income in the period that the changes in fair value occur. For derivative instruments that are designated and qualify as a cash-flow hedge, the effective portion of the gain or loss on the derivative instr ument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings. The remainin g gain or loss on the derivative instrument (i.e., the ineffective portion), if any, is recognized in the statement of income during the current period. For derivative instruments that are designated as net-investment hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income . T h e effective portion is determined by looking into changes in spot exchange rate. The change in fair value attributable to changes other than those due to fluctuations in the spot exchange rate are excluded from the assessment of hedg e effectiveness and are recognized in the statement of income under financial expenses-net. For derivative instruments that qualify for hedge accounting, the cash flows associ ated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging. Derivative instruments 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 cas h flows from operating activities in the consolidated statements of cash flows. |
Fair value measurement | f. Fair value measurement: The Company measures fair value and disc loses 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 acces sible 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: Un observable 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 an d minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. |
Collaborative arrangements | d. Collaborative arrangements: 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. The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to collaborative agreements as gross or net. If the Company is the principal participant in a transaction, revenues and costs are recorded on a gross basis; otherwise, revenues are recorded on a net basis. |
Segment reporting | x. Segment reporting: The Company's 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") and over-the-counter medicines. The specialty segment engages in the development, manufacture, sale and distribution of branded specialty medicines such as those for central nervous system and respiratory indications, as well as those marketed in the women’s health, oncology and other specialty businesses. During the fourth quarter of 2017 the Company announced a new orga nizational structure and leadership changes. The Company is evaluating the resulting changes to its internal financial reporting and segment reporting starting in 2018 to align its reporting with how the Company will manage its business going forward. See note 20 |
Reclassifications | bb. Reclassifications: Certain comparative figures have been reclassified to conform to the current year presentation |
Recently issued accounting pronouncements | b. New accounting pronouncements Recently adopted accounting pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance on goodwill impairment testing. The new guidance reduces the complexity of goodwill impairment tests by no longer requiring entities to determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Teva adopted the provisions of this update in the first quarter of 2017. Once impairment is recorded under the new guidance, additi onal impairment may occur if the fair value of the reporting unit continues to decline. The amount of goodwill impairment charges recorded in 2017 was determined in accordance with this new guidance. In January 2017, the FASB issued guidance on the differ entiation between acquisitions of assets and businesses. The new guidance dictates that, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiabl e assets, it should be treated as an acquisition or disposal of an asset. The new guidance also requires that to be considered a business, a set of integrated activities and assets must include, at a minimum, an input and a substantive process that togethe r significantly contribute to the ability to create outputs, without regard as to whether a market participant could replace missing elements. In addition, the new guidance narrows the definition of the term "output" to make it consistent with how outputs are described in the updated revenue recognition guidance. The guidance is effective for the fiscal year beginning on January 1, 2018, including interim periods within that year (early adoption is permitted). Teva adopted the provisions of this update in t he first quarter of 2017 with no impact on its consolidated financial statements. In November 2016, the FASB issued guidance on the treatment of restricted cash in the statements of cash flows. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for the fiscal year beginning on January 1, 2018, in cluding interim periods within that year (early adoption is permitted). Teva adopted the provisions of this update in the first quarter of 2017. The application of the guidance did not have a material impact on Teva's consolidated financial statements. In October 2016, the FASB issued guidance on accounting for consolidation of interests held through related parties that are under common control. The amended guidance designates the primary beneficiary of a VIE as the reporting entity that has a controlli ng financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. Teva adopted the provisions of this up date in the first quarter of 2017. The application of the guidance did not have a material impact on Teva’s consolidated financial statements. In October 2016, the FASB issued guidance on income taxes on intra-entity transfers. The guidance eliminates the exception to the recognition requirements under the standard for intra-entity transfers of an asset other than inventory. As a result, an entity should recognize the income tax consequences when the transfer of assets other than inventory occurs. Teva adopted the provisions of this update in the first quarter of 2017. The application of the guidance increased the deferred tax liabilities in the consolidated balance sheet by $31 million in the first quarter of 2017. Additionally, certain balance sheet it ems have been reclassified as of December 31, 2016 to conform to the current year presentation. Prepaid expenses and deferred income tax liabilities increased by $267 million and $198 million, respectively. Deferred income tax assets and other current liab ilities decreased by $100 million and $31 million, respectively. The consolidated statement of income was not affected. Recently issued accounting pronouncements, not yet adopted In August 2017, the FASB issued guidance for derivatives and hedging, which e xpands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance will be effective fo r fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (early adoption is permitted for any interim and annual financial statements that have not yet been issued). Teva is currently evaluating the potential ef fect of the guidance on its consolidated financial assets. In May 2017, the FASB issued guidance on changes to terms and conditions of share-based payment awards. The amendment provides guidance about which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting. The guidance is effective for the fiscal year beginning on January 1, 2018, including interim periods within that year. Teva does not anticipate that adoption of this guidance will have a ma terial impact on its consolidated financial statements. In February 2017, the FASB issued guidance on de-recognition of nonfinancial assets. The amendments address the recognition of gains and losses on the transfer (i.e., sale) of nonfinancial assets to c ounterparties other than customers. The guidance conforms de-recognition on nonfinancial assets with the model for transactions in the new revenue standard. The amendments are effective at the same time as the new revenue standard. The amendments are effec tive at the same time as the new revenue standard which means for public entities annual periods beginning after December 15, 2017 and interim periods therein with earlier adoption permitted. Teva does not anticipate that such guidance will have a material impact on its consolidated financial statements. In August 2016, the FASB issued guidance on statements of cash flows. The guidance addresses eight specific issues: debt prepayment or debt extinguishment costs; settlement of certain debt instruments; cont ingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies; distributions received from equity method investees; beneficial inte rest in securitization transactions; and separately identifiable cash flows and application of predominance principle. The guidance is effective for the fiscal year beginning on January 1, 2018, including interim periods within that year. The amendments sh ould be applied retrospectively . In connection with the Company's securitization program see note 16d regarding the likely impact of the adoption on Teva's consolidated financial statements. In June 2016, the FASB issued guidance on financial instrument s. The guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The g uidance will be effective for the fiscal year beginning on January 1, 2020, including interim periods within that year. Teva is currently evaluating the potential effect of the guidance on its consolidated financial statements. In February 2016, the FASB issued guidance on leases. The guidance requires entities to record lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. In September 2017, the FASB issued additional amendments providing clarifi cation and implementation guidance. The guidance will become effective for interim and annual periods beginning on January 1, 2019 (early adoption is permitted) and is required to be adopted at the earliest period presented using a modified retrospective a pproach. Although the Company is in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements, the Company expects there will be a material increase to assets and liabilities related to the recognition of new right-of-use assets and lease liabilities on the Company's balance sheet for leases currently classified as operating leases. In January 2016, the FASB issued guidance which updates cer tain aspects of recognition, measurement, presentation and disclosure of equity investments. The guidance requires entities to recognize changes in fair value in net income rather than in accumulated other comprehensive income. The guidance is effective fo r interim and annual periods beginning on January 1, 2018. Teva does not anticipate that such guidance will have a material impact on its consolidated financial statements. In May 2014, the FASB issued guidance on revenue from contracts with customers tha t will supersede most current revenue recognition guidance, including industry-specific guidance. Under the new standard, a good or service is transferred to the customer when (or as) the customer obtains control of the good or service, which differs from the risk and rewards approach under current guidance. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In March, April and May 2016, the FASB issued three additional updates regarding identifying performance obligations and licensing, certain principal versus agent considerations and various narrow scope improvements based on practical questions raised by users. In September 2017, the FASB issued additional amendments providing clarification and implementation guidance. The guidance may be adopted through either retr ospective application to all periods presented in the financial statements (full retrospective approach) or through a cumulative effect adjustment to retained earnings at the effective date (modified retrospective approach). The guidance is effective for t he fiscal periods beginning on January 1, 2018. Teva does not anticipate a material impact on its revenue recognition practices nor accumulated impact , following the adoption of the new guidance. Teva will adopt the new standard using the modified retrosp ective approach. |
Acquisition | c. Acquisitions: Teva's consolidated financial statements include the operations of an acquired business from the date of the acquisition's consummation. Acquired businesses are accounted for using the acquisition method of accounting , which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired in process research and development ("IPR&D") be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When Teva acquires net assets that do not constitute a business, as def ined under U.S. GAAP, no goodwill is recognized and acquired IPR&D is expensed. Contingent consideration incurred in a business combination is included as part of the acquisition price and recorded at a probability weighted assessment of their fair value a s of the acquisition date. The fair value of the contingent consideration is re-measured at each reporting period, with any adjustments in fair value recognized in earnings under impairments, restructuring and others. |
Trade Receivbles | i. Trade receivables: Trade receivables are stated at their net realizable value. Th e allowance against gross trade receivable reflects the best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available i nformation. As of December 31, 2017 , and December 31, 201 6 , an allowance for doubtful debts of $232 million and $1 91 million, respectively, is reflected in net trade receivables. Trade receivables are written off after all reasonable means to collec t the full amount have been exhausted. |
Restructuring. | w. Restructuring: Restructuring provisions are recognized for the direct expenditures arising from restructuring initiatives , where the plans are sufficiently detailed and where appropriate communication to those affected has been ma de . 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. Contractual termination benefits are provided to emplo yees when employment is terminated due to an event specified in the provisions of an existing plan or agreement. A liability is recorded and the expense is recognized when it is probable that employees will be entitled to the benefits and the amount is rea sonably estimable. Special termination benefits arise when the Company offers, for a short period of time, to provide certain additional benefits to employees electing voluntary termination. A liability is recorded and the expense is recognized in the period the employees irrevocably accept the offer and the amount of the termination liability is reasonably estimable. |
Accounting For Venezuelan Operations | Accounting for Venezuelan Operations Until November 30, 2017, the financial position and results of operations of Teva's Venezuelan business, conducted through a number of wholly-owned subsidiaries, were included in Teva's consolidated financial statements and reported under highly-inflationary accounting principles, with the functional currency of the U.S. dollar. Hyper-Inflation Venezuela has experienced hyper-inflation in recent years. The government of Venezuela currently has two official exchange rates: the DIPRO rate of 10 bolivars per U.S. dollar (which replaced the CENCOEX rate of 6.3 in March 2016) and the DICOM rate, which fluctuates and was 3,345 bolivars per U.S. dollar as of December 31, 2017. Following the announcement of the Venez uelan Central Bank and the Ministry for Banking and Finance of FX Regulation 35, effective March 10, 2016, the DIPRO rate was used to settle transactions involving the importation, manufacture and distribution of pharmaceutical products. Teva used the CENC OEX rate until March 2016 and then replaced it with the DIPRO rate to report its Venezuelan financial position, results of operations and cash flows, since it believed that the nature of its business operations in Venezuela, which include the importation, manufacture and distribution of pharmaceutical products, qualified for the most preferential rate permitted by law. In November 2016, the unofficial exchange rate continued to increase at an accelerated rate, indicating further economic distress. This, tog ether with a decrease in scope of transactions involving the importation, manufacture and distribution of pharmaceutical products that were settled using the DIPRO rate of 10 bolivars per dollar, led Teva to replace the official DIPRO rate it had used to r eport its Venezuelan financial position, results of operations and cash flows with a blended exchange rate of 273 bolivar per U.S. dollar. Teva began using this blended exchange rate as of December 1, 2016, which was determined based on a weighted average of the DIPRO and DICOM exchange rates affecting Teva's transactions. The blended rate was reviewed and updated on a quarterly basis. As a result of the developments described above, Teva impaired its monetary balance sheet items related to Venezuela twice in 2016, with a devaluation charge of $246 million in the first quarter of 2016, following introduction of the DIPRO rate, and an additional devaluation charge of $500 million in the fourth quarter of 2016, following Teva's decision to adopt a blended rate . In addition, Teva recorded $133 million in cost of sales, to adjust its inventory balance in Venezuela to reflect the U.S dollar net realizable value of the inventory. During February 2017 and again in May 2017, Teva updated its blended exchange rate to 380 and 640 bolivar per dollar, respectively. In the third quarter of 2017, Teva started to use the DICOM rate of 3,345 bolivar per dollar, which was not materially different from the blended rate that would have been used instead of the DICOM rate. Contr ol The evolving economic and political conditions in Venezuela, including increasingly restrictive currency exchange control regulations and reduced access to U.S. dollars through official currency exchange markets, resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar, which significantly impacted Teva's ability to effectively manage its Venezuelan businesses, including restrictions on the ability of the Venezuelan businesses to import certain raw ma terials to maintain normal production and to settle U.S. dollar-denominated obligations. The currency exchange restrictions, combined with other regulations that have limited Teva's ability to import certain raw materials, also increasingly constrained Tev a's ability to make and execute operational decisions regarding its businesses in Venezuela. In addition, the inability of the Venezuelan businesses to pay dividends, which remain subject to Venezuelan government approvals, restricted the ability to realiz e the earnings generated out of the Venezuelan businesses. Teva expects these conditions to continue for the foreseeable future. Furthermore, the fourth quarter of 2017 was the longest duration of time that Teva experienced without receiving any approvals , through regular conversion or auctions, from the government for new imports or payments for existing import liabilities. These approvals had been key to allowing management to continue the business at a level consistent with its plans. Without such appro vals, the Venezuelan business is unable to import materials at the price and quantity needed to continue its operations. In addition, since April 2017, the opposition party in Venezuela has organized protests on a daily basis and many of the marches and de monstrations have resulted in rioting and violence. This is a significant change from the spo r a dic protests previously and has impacted the ability of employees to arrive safely at their assigned work location and complete their tasks. The result is a significant decline in the units produced and available for sale. Teva attempted to identify alternative currency exchange mechanisms that would allow acc ess to U.S. dollars; however during the fourth quarter of 2017 the Company determined that the alternative was inconsistent and non-compliant with its business standards. Deconsolidation and impairment As a result of these factors, Teva concluded that a s of November 30, 2017, it did not meet the accounting criteria for control over its wholly-owned Venezuelan subsidiaries and that it no longer has significant influence over such subsidiaries. In its conclusion, Teva considered the FASB guidance in accord ance with ASC Topic 830 “Foreign Currency Matters” and ASC Topic 810 “Consolidation” regarding the propriety of implementing consolidation, for both the variable int erest entity ("VIE") and voting model, or equity method accounting when other than temporar y lack of exchangeability exists. The VIE model requires the primary beneficiary to demonstrate both the power to direct activities of the VIE that most significantly impact the VIE’s economic performance, and the obligation to absorb losses from or right to receive benefits of the VIE that could potentially be significant to the VIE. Based on the analysis above, Teva believes it holds neither power nor benefit over its Venezuelan subsidiaries. Furthermore, Teva has no material financial commitment to its Venezuela subsidiaries, such as liquidity arrangements, guarantees or other commitments or any other exposure to loss from its Venezuelan subsidiaries. Any potential material financial commitment in the future will be disclosed pursuant to the accounting r equirements. Therefore, effective November 30, 2017, Teva deconsolidated its Venezuelan subsidiaries and began accounting for its investments using the cost method of accounting. As of November 30, 2017, Teva’s net monetary balance sheet items in Venezuel a included approximately $ 1 3 million in cash. Accordingly, t he Company recorded a deconsolidation charge of $396 million under other asset impairments, restructuring and other items in connection with its subsidiaries in Venezuela, of which $326 million re sulted from reclassification of currency translation adjustments from accumulated other comprehensive income to the statement of income, relat ing mainly to Teva's generics medicines segment. The estimated fair value of the investments was immaterial based on expected future cash flow, considering ongoing hyper-inflation, economic and political uncertainty in Venezuela. The assigned values are considered Level 3 measurements within the fair value hierarchy. In future periods, Teva's financial results will include sales of finished goods to the Venezuelan subsidiaries to the extent cash payments will be received from these subsidiaries, while cost of sales will be recorded when goods are imported to Venezuela. The Venezuelan subsidiaries results were immater ial in terms of assets, liabilities, operating results and cash flows for the eleven months ended November 30, 2017. Teva will continue to monitor the conditions in Venezuela and their impact on its prospective accounting treatment and related disclosure s. Functional currency A major part of the Group’s operations is carried out by the Company in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”). 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 exc hange 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 (loss) in the consolidated statements of comprehensive income (loss). |
Securitization | z. Securitization Teva accounts for transfers of certain of its trade receivable as sales when it has surrendered control over the related assets in accordance with ASC Topic 860 "Transfer and Servicing" of Financial Assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the balance sheet at fair value. Refer to note 16d |
Divestitures | aa. Divestitures: The Company nets the proceeds on the divestitures of products with the carrying amount of the related assets and record s gain or loss on sale within other income . Any contingent payments that are potentially due to the Company as a result of these divestitures are recorded when realizable. For divestures of businesses, including divestitures of products that qualify as a b usiness, the Company reflects the relative fair value of goodwill associated with the businesses in the determination of gain or loss on sale |
CERTAIN TRANSACTIONS (Tables)
CERTAIN TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Certain Transactions Tables [Abstract] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | U.S. $ in millions Cash (1) $ 33,878 Ordinary shares (2) 5,065 Contingent consideration (3) 302 Equity based compensation 25 Total fair value of consideration transferred $ 39,270 Preliminary values at December 31, 2016 Measurement period adjustments Values at June 30, 2017 (U.S. $ in millions) Cash and cash equivalents $ 84 $ - $ 84 Trade receivables (1) 3,211 (1) 3,210 Inventories 1,670 (6) 1,664 Other current assets (2) 2,050 (24) 2,026 Property, plant and equipment 1,370 (105) 1,265 Other non-current assets 24 - 24 Identifiable intangible assets: (3) Product rights (4) 8,640 (486) 8,154 Trade names 417 12 429 In-process research and development 5,006 611 5,617 Goodwill 24,192 961 25,153 Total assets acquired 46,664 962 47,626 Sales reserves and allowances 1,988 48 2,036 Trade payables 441 (3) 438 Employee related obligations 134 13 147 Accrued expenses (5) 920 124 1,044 Other current liabilities (6) 376 315 691 Deferred income taxes and other non-current liabilities (7) 3,493 507 4,000 Total liabilities assumed 7,352 1,004 8,356 Net assets acquired (8) $ 39,312 $ (42) $ 39,270 U.S. $ in millions Inventories $ 134 Identifiable intangible assets: Product and marketing rights (1) 1,491 Goodwill 698 Total assets acquired $ 2,323 Deferred income taxes 498 Total liabilities assumed 498 Net assets acquired $ 1,825 U.S. $ in millions Current assets (1) $ 97 Other non-current assets 144 Identifiable intangible assets: In-process research and development (2) 338 Goodwill 1,933 Total assets acquired $ 2,512 Current liabilities 123 Deferred taxes and other non-current liabilities 68 Total liabilities assumed 191 Net assets acquired $ 2,321 December 31, 2017 December 31, 2016 (U.S. $ in millions) Trade receivables $ - $ 59 Inventories 39 63 Other current assets - 1 Deferred income taxes - 7 Property, plant and equipment, net 16 36 Identifiable intangible assets, net 236 675 Goodwill 275 - Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 566 $ 841 Trade payables and accrued expenses $ - $ 83 Other current liabilities - 10 Other taxes and long-term liabilities 38 23 Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets $ 38 $ 116 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurement Tables [Abstract] | |
Financial items carried at fair value | December 31, 2017 Level 1 Level 2 Level 3 Total U.S. $ in millions Cash and cash equivalents: Money markets $ 5 $ - $ - $ 5 Cash, deposits and other 958 - - 958 Investment in securities: Equity securities 65 - - 65 Structured investment vehicles - - - - Other, mainly debt securities 14 - 18 32 Derivatives: Asset derivatives - options and forward contracts - 17 - 17 Asset derivatives - cross-currency swaps - 25 - 25 Liabilities derivatives - options and forward contracts - (15) - (15) Liabilities derivatives - interest rate and cross-currency swaps - (98) - (98) Contingent consideration* - - (735) (735) Total $ 1,042 $ (71) $ (717) $ 254 December 31, 2016 Level 1 Level 2 Level 3 Total U.S. $ in millions Cash and cash equivalents: Money markets $ 24 $ - $ - $ 24 Cash, deposits and other 964 - - 964 Investment in securities: Equity securities 842 - - 842 Structured investment vehicles - 89 - 89 Other, mainly debt securities 14 - 17 31 Derivatives: Asset derivatives - options and forward contracts - 10 - 10 Asset derivatives - cross-currency swaps - 88 - 88 Liability derivatives - options and forward contracts - (17) - (17) Liability derivatives - interest rate swaps - (2) - (2) Contingent consideration* - - (828) (828) Total $ 1,844 $ 168 $ (811) $ 1,201 The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs. December 31, December 31, 2017 2016 U.S. $ in millions Fair value at the beginning of the period $ (811) $ (811) Investment in debt securities - 16 Translation differences (17) 18 Additional contingent consideration resulting from: Actavis Generics acquisition - (302) Adjustments to provisions for contingent consideration: Actavis Generics transaction (35) - Labrys acquisition (40) (6) Eagle transaction (178) (179) MicroDose acquisition 89 (8) Cephalon acquisition 10 (12) NuPathe transaction - 122 Settlement of contingent consideration: Labrys acquisition 100 25 Eagle transaction 165 115 Cephalon acquisition - 205 Gecko acquisition - 6 Fair value at the end of the period $ (717) $ (811) Financial instruments measured on a basis other than fair value are mostly comprised of senior notes and convertible senior debentures (see note 11), and are presented in the below table in terms of fair value: Estimated fair value* December 31, 2017 2016 (U.S. $ in millions) Senior notes included under long-term liabilities $ 23,459 $ 26,456 Senior notes and convertible senior debentures included under short-term liabilities 2,713 569 Fair value at the end of the period $ 26,172 $ 27,025 * The fair value was estimated based on quoted market prices, where available. |
INVESTMENT IN SECURITIES (Table
INVESTMENT IN SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Securities Tables [Abstract] | |
AvailableForSaleSecuritiesTextBlock | Fair value Amortized cost Gross unrealized holding gains Gross unrealized holding losses (U.S. $ in millions) December 31, 2017 $ 102 $ 103 $ 19 $ 20 December 31, 2016 $ 986 $ 985 $ 44 $ 43 December 31, 2017 2016 (U.S. $ in millions) Other current assets $ 14 $ 679 Other non-current assets 83 283 Cash and cash equivalents, mainly money market funds 5 24 $ 102 $ 986 |
Marketable securities | b. Contractual maturities: The contractual maturities of debt securities are as follows: December 31, 2017 (U.S. $ in millions) 2018 $ 19 2021 and thereafter 18 $ 37 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories Tables [Abstract] | |
Inventory current | NOTE 5—INVENTORIES: Inventories, net of reserves, consisted of the following: December 31, 2017 2016 (U.S. $ in millions) Finished products $ 2,689 $ 2,832 Raw and packaging materials 1,454 1,385 Products in process 597 538 Materials in transit and payments on account 184 199 $ 4,924 $ 4,954 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment Tables [Abstract] | |
Property Plant And Equipment TextBlock | NOTE 6—PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment, net, consisted of the following: December 31, 2017 2016 (U.S. $ in millions) Machinery and equipment $ 5,809 $ 5,748 Buildings 3,329 3,331 Computer equipment and other assets 2,016 1,774 Payments on account 634 634 Land* 390 439 12,178 11,926 Less—accumulated depreciation 4,505 3,853 $ 7,673 $ 8,073 * Land includes long-term leasehold rights in various locations, with useful lives of between 30 and 99 years. Depreciation expenses were $632 million, $501 million and $449 million in the years ended December 31, 2017, 2016 and 2015, respectively. During the years ended December 31, 2017, 2016 and 2015, Teva had impairments of property, plant and equipment in the amount of $544 million, $149 million and $96 million, respectively. Refer to note 18. |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill [Abstract] | |
Schedule Of Goodwill [Text Block] | NOTE 7—GOODWILL: The changes in the carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016 were as follows: Generics Specialty Other Total (U.S. $ in millions) Balance as of January 1, 2016 $ 8,465 $ 9,420 $ 1,140 $ 19,025 Changes during year: Goodwill acquired and adjustments (1) 25,767 (29) 1,091 26,829 Goodwill disposed (2) (99) (99) Goodwill impairment (3) (900) (900) Translation differences (370) (68) (8) (446) Balance as of December 31, 2016 $ 32,863 $ 9,323 $ 2,223 $ 44,409 Changes during year: Goodwill adjustments (1) 1,480 (560) 920 Goodwill disposed (2) (7) (690) (697) Goodwill impairment (4) (16,500) (600) (17,100) Goodwill reclassified as assets held for sale (5) - (275) (275) Translation differences 1,028 106 23 1,157 Balance as of December 31, 2017 $ 18,864 $ 8,464 $ 1,086 $ 28,414 (1) Goodwill recognized as part of the Actavis Generics, Anda, Takeda and Rimsa transactions in 2016. Goodwill adjustments in the current period represent measurement period adjustments on goodwill acquired in 2016. (2) Goodwill on divestiture of Teva Generic products as part of Actavis Generics acquisition and the U.S. Women's Health divestiture. (3) Represents Rimsa goodwill impairment. See note 2 for additional information. (4) Goodwill impairment is mainly attributable to the U.S. generics reporting unit. (5) Represent amounts related to the anticipated divestitures of the non U.S. women's health products. See note 2 for additional information. |
IDENTIFIABLE INTANGIBLE ASSET (
IDENTIFIABLE INTANGIBLE ASSET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Identifiable Intangible Asset [Abstract] | |
Identifiable Intangible Asset [Table Text Block] | NOTE 8 - IDENTIFIABLE INTANGIBLE ASSETS: Identifiable intangible assets consisted of the following: Gross carrying amount net of impairment Accumulated amortization Net carrying amount December 31, 2017 2016 2017 2016 2017 2016 (U.S. $ in millions) Product rights $ 21,011 $ 18,180 $ 8,276 $ 6,460 $ 12,735 $ 11,720 Trade names 617 625 55 41 562 584 In-process research and development 4,343 9,183 - - 4,343 9,183 Total $ 25,971 $ 27,988 $ 8,331 $ 6,501 $ 17,640 $ 21,487 |
SALES RESERVES AND ALLOWANCES (
SALES RESERVES AND ALLOWANCES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Revenue Recognition [Abstract] | |
Sales Reserves And Allowances Current [TextBlock] | NOTE 9—SALES RESERVES AND ALLOWANCES: Sales reserves and allowances consisted of the following: December 31, 2017 2016 (U.S. $ in millions) Rebates $ 3,077 $ 3,482 Medicaid and other governmental allowances 1,908 1,729 Chargebacks 1,849 1,584 Returns 780 844 Other 267 200 $ 7,881 $ 7,839 |
LONG TERM EMPLOYEE RELATED OB39
LONG TERM EMPLOYEE RELATED OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long Term Employee Related Obligations Tables [Abstract] | |
Long-term employee-related obligations | NOTE 10—LONG-TERM EMPLOYEE-RELATED OBLIGATIONS: a. Long-term employee-related obligations consisted of the following: December 31, 2017 2016 (U.S. $ in millions) Accrued severance obligations $ 91 $ 120 Defined benefit plans 182 197 Total $ 273 $ 317 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Senior Notes And Loans Tables [Abstract] | |
Schedule of senior notes and loans | NOTE 11—DEBT OBLIGATIONS: a. Short-term debt: December 31, Weighted average interest rate as of December 31, 2017 Maturity 2017 2016 (U.S. $ in millions) Term loan JPY 28.3 billion JPY LIBOR+0.25% 2018 $ 251 - Bank and financial institutions 11.67% 2018 1 15 Revolving credit facility LIBOR+1.1375% 2017 $ - $ 1,240 Term loan GBP 510 million GBP LIBOR + 0.7% 2017 - 629 Term loan JPY 8.0 billion JPY LIBOR+0.223% 2017 - 68 Convertible debentures 0.25% 2026 514 514 Current maturities of long-term liabilities 2,880 810 Total short term debt $ 3,646 $ 3,276 b. Long-term debt includes the following: Weighted average interest rate as of December 31, 2017 Maturity December 31, 2017 December 31, 2016 % (U.S. $ in millions) Senior notes EUR 1,750 million (1) 0.38% 2020 $ 2,095 $ 1,834 Senior notes EUR 1,500 million (1) 1.13% 2024 1,788 1,566 Senior notes EUR 1,300 million 1.25% 2023 1,550 1,357 Senior notes EUR 1,000 million 2.88% 2019 1,199 1,050 Senior notes EUR 750 million (1) 1.63% 2028 891 780 Senior notes EUR 700 million 1.88% 2027 837 733 Senior notes USD 3,500 million (2) 3.15% 2026 3,492 3,491 Senior notes USD 3,000 million (2) 2.20% 2021 2,996 2,995 Senior notes USD 3,000 million (2), (3) 2.80% 2023 2,992 2,991 Senior notes USD 2,000 million (2) 1.70% 2019 2,000 2,000 Senior notes USD 2,000 million (2) 4.10% 2046 1,984 1,984 Senior notes USD 1,500 million (2) 1.40% 2018 1,500 1,498 Senior notes USD 844 million (4) 2.95% 2022 864 868 Senior notes USD 789 million 6.15% 2036 781 781 Senior notes USD 700 million 2.25% 2020 700 700 Senior notes USD 613 million (4) 3.65% 2021 624 626 Senior notes USD 588 million 3.65% 2021 587 587 Senior notes CHF 450 million 1.50% 2018 461 442 Senior notes CHF 350 million (5) 0.50% 2022 360 344 Senior notes CHF 350 million (5) 1.00% 2025 360 345 Senior notes CHF 300 million (5) 0.13% 2018 308 295 Fair value hedge accounting adjustments (2) (2) Total senior notes 28,367 27,265 Term loan USD 2.5 billion (6) LIBOR +1.1375% 2018 285 2,500 Term loan USD 2.5 billion (6) LIBOR +1.50% 2017-2020 2,000 2,500 Term loan JPY 58.5 billion (7) JPY LIBOR +0.55% 2022 519 - Term loan JPY 65 billion (8) 0.99% 2017 - 560 Term loan JPY 35 billion 1.42% 2019 311 299 Term loan JPY 35 billion JPY LIBOR +0.3% 2018 311 299 Total loans 3,426 6,158 Debentures USD 15 million 7.20% 2018 15 15 Other 7.46% 2026 5 9 Total debentures and others 20 24 Less current maturities (2,880) (810) Derivative instruments 2 2 Less debt issuance costs (106) (115) Total long-term debt $ 28,829 $ 32,524 The required annual principal payments of long-term debt, excluding debt issuance cost as of December 31, 2017, starting with the year 2019, are as follows: December 31, 2017 (U.S. $ in millions) 2019 $ 4,010 2020 4,295 2021 4,207 2022 1,743 2023 and thereafter 14,680 $ 28,935 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Convertible Senior Debentures Tables [Abstract] | |
Schedule of the main terms of convertible senior debenturs | NOTE 12—Other income: Year ended December, 31 2017 2016 2015 (U.S. $ in millions) Gains on divestitures(1) $ 1,083 $ 720 $ 45 Gain on litigation settlements(2) 83 20 25 Gain on sale of assets 11 10 44 Other, net 22 19 52 Total other income $ 1,199 $ 769 $ 166 (1) Gain related to the divestment of women's health products in 2017 and certain Actavis Generics and Teva products in 2016, in order to comply with FTC and EU commission requirements following Actavis Generics acquisition. See note 2. (2) Mainly due to legal recovery income in Canada. |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Tables [Abstract] | |
Status of option plans | Year ended December 31, 2017 2016 2015 Number (in thousands) Weighted average exercise price Number (in thousands) Weighted average exercise price Number (in thousands) Weighted average exercise price Balance outstanding at begining of year 32,789 $50.71 25,233 $49.69 26,733 $45.91 Changes during the year: Granted 15,467 32.08 10,895 53.21 7,655 59.82 Exercised (7) 17.44 (766) 44.24 (8,127) 46.88 Forfeited (4,953) 47.92 (1,382) 54.09 (1,028) 48.96 Expired (175) 59.81 (1,191) 52.79 - Balance outstanding at end of year 43,121 44.32 32,789 50.71 25,233 49.69 Balance exercisable at end of year 19,129 47.94 14,468 46.06 11,299 44.67 |
Schedule of ordinary shares issued upon outstanding options | The following tables summarize information at December 31, 2017 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 millions) Number of shares $ Years $ $- - $- - - - - Lower than $15.01 592 11.40 9.85 4.5 $15.01 - $25.00 1,462 16.97 9.70 2.9 $25.01 - $35.00 12,018 34.63 9.17 - $35.01 - $45.00 7,281 40.49 4.63 - $45.01 - $55.00 14,864 50.99 6.75 - $55.01 - $65.00 6,891 59.42 7.29 - $65.01 - $70.00 13 66.67 3.21 - Total 43,121 44.32 7.30 7.4 |
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 millions) Number of shares $ Years $ $- - $- $15.01 - $25.00 11 17.33 5.23 * $25.01 - $35.00 1 25.76 5.94 - $35.01 - $45.00 7,054 40.54 4.53 - $45.01 - $55.00 8,944 49.68 5.82 - $55.01 - $65.00 3,105 59.82 7.21 - $65.01 - $70.00 14 66.67 3.21 - Total 19,129 47.94 5.57 * * Represents an amount less than 0.5 million. |
Schedule of the number of RSUs issued and outstanding | Year ended December 31, 2017 2016 2015 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 4,636 $45.15 2,551 $51.43 2,466 $43.05 Granted 5,461 20.10 3,193 40.78 1,519 56.75 Vested (1,884) 39.63 (830) 45.79 (1,112) 41.04 Forfeited (745) 42.84 (278) 46.08 (322) 48.27 Balance outstanding at end of year 7,468 27.95 4,636 45.15 2,551 51.43 |
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 generally estimated by using the Black-Scholes option-pricing model as follows: Year ended December 31, 2017 2016 2015 Weighted average fair value $5.7 $9.4 $10.9 The fair value of these options was estimated on the date of grant, based on the following weighted average assumptions: Year ended December 31, 2017 2016 2015 Dividend yield 3.7% 2.6% 2.3% Expected volatility 29% 25% 24% Risk-free interest rate 2.1% 1.4% 1.8% Expected term 5 years 5 years 5 years Year ended December 31, 2017 2016 2015 (U.S. $ in millions) Employee stock options $ 64 $ 56 $ 62 RSUs and PSUs 69 66 55 Total stock-based compensation expense 133 122 117 Tax effect on stock-based compensation expense 24 26 19 Net effect $ 109 $ 96 $ 98 |
Treasury Stock Shares Acquired [Table Text Block] | Year ended December 31, 2017 2016 2015 (in millions) Amount spent on shares repurchased $ - $ - $ 439 Number of shares repurchased - - 7.7 |
Accumulated Other Comprehensive Income/(Loss) (net of tax) | Net Unrealized Gains/(Losses) Benefit Plans Foreign currency translation adjustments Available-for-sale securities Derivative financial instruments Actuarial gains/(losses) and prior service (costs)/credits Total Balance, January 1, 2015 (1,283) (7) 40 (93) (1,343) Other comprehensive income/(loss) before reclassifications (1,131) (413) 137 33 (1,374) Amounts reclassified to the statements of income 24 737 (2) 4 763 Net other comprehensive income/(loss) before tax (1,107) 324 135 37 (611) Corresponding income tax 6 (5) - (2) (1) Net other comprehensive income/(loss) after tax* (1,101) 319 135 35 (612) Balance, December 31, 2015 (2,384) 312 175 (58) (1,955) Other comprehensive income/(loss) before reclassifications (355) (456) (491) (26) (1,328) Amounts reclassified to the statements of income 3 140 14 (6) 151 Net other comprehensive income/(loss) before tax (352) (316) (477) (32) (1,177) Corresponding income tax (33) (3) - 9 (27) Net other comprehensive income/(loss) after tax* (385) (319) (477) (23) (1,204) Balance, December 31, 2016 (2,769) (7) (302) (81) (3,159) Other comprehensive income/(loss) before reclassifications 1,075 64 (167) (3) 969 Amounts reclassified to the statements of income 378 (66) 27 (5) 334 Net other comprehensive income/(loss) before tax 1,453 (2) (140) (8) 1,303 Corresponding income tax - 5 - (2) 3 Net other comprehensive income/(loss) after tax* 1,453 3 (140) (10) 1,306 Balance, December 31, 2017 (1,316) (4) (442) (91) (1,853) *Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $63 million loss in 2017, $60 million loss in 2016 and $1 million loss in 2015 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Absract] | |
Schedule of income before income taxes | NOTE 15—INCOME TAXES: a. Income before income taxes: Year ended December 31, 2017 2016 2015 (U.S. $ in millions) Parent Company and its Israeli subsidiaries $ 1,451 $ 1,516 $ 1,932 Non-Israeli subsidiaries (19,830) (692) 420 $ (18,379) $ 824 $ 2,352 |
Schedule of the provision for income taxes | b. Income taxes: Year ended December 31, 2017 2016 2015 (U.S. $ in millions) In Israel $ 96 $ 209 $ 149 Outside Israel (2,029) 312 485 $ (1,933) $ 521 $ 634 Current $ 373 $ 481 $ 298 Deferred (2,306) 40 336 $ (1,933) $ 521 $ 634 |
Accumulated Other Comprehensive Income/(Loss) (net of tax) | 2017 2016 2015 (U.S. $ in millions) Income (loss) before income taxes $ (18,379) $ 824 $ 2,352 Statutory tax rate in Israel 24.0% 25.0% 26.5% Theoretical provision for income taxes $ (4,411) $ 206 $ 623 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 (253) (212) (337) Non-Israeli subsidiaries, including impairments (*) 3,817 546 447 U.S. Tax Cuts and Jobs Act effect (1,061) Increase (decrease) in other uncertain tax positions—net (25) (19) (99) Effective consolidated income taxes $ (1,933) $ 521 $ 634 * Income before income taxes includes goodwill impairment in non-Israeli subsidiaries that did not have a corresponding tax effect. |
Schedule of deferred income taxes | c. Deferred income taxes: December 31, 2017 2016 Long-term deferred tax assets (liabilities)—net: (U.S. $ in millions) Inventory related(*) $ 40 $ 46 Sales reserves and allowances 201 311 Provision for legal settlements 171 232 Intangible assets (**) (3,132) (5,569) Carryforward losses and deductions and credits (***) 1,485 1,922 Property, plant and equipment (231) (312) Provisions for employee related obligations 142 108 Other 125 163 (1,199) (3,099) Valuation allowance—in respect of carryforward losses and deductions that may not be utilized (**) (1,504) (1,689) $ (2,703) $ (4,788) * Following the implementation of ASU 2016-16, the 2016 deferred taxes associated with the intra-entity transfers of inventory have been reclassified and presented under Prepaid expenses. ** The decrease in deferred tax liability is mainly due to impairment, amortization and changes in statutory tax rate following the enactment of Tax Cuts and Jobs Act. *** The amounts are shown after reduction for unrecognized tax benefits of $26 million and $23 million as of December 31, 2017 and 2016, respectively. This amount represents the tax effect of gross carryforward losses and deductions with the following expirations: 2018-2020 — $277 million; 2021-2027 — $465 million; 2028 and thereafter — $167 million. The remaining balance—$602 million—can be utilized with no expiration date. |
ScheduleOfDeferredTaxAssetsAndLiabilitiesByReportCaption[Table] | The deferred income taxes are reflected in the balance sheets among: December 31, 2017 2016 (U.S. $ in millions) Long-term assets—deferred income taxes 574 625 Long-term liabilities—deferred income taxes (3,277) (5,413) $ (2,703) $ (4,788) Balances are presented under long term deferred taxes, due to the implementation of ASU 2015-17. The 2016 deferred taxes associated with intra-entity transfers of inventory have been reclassified and presented under Prepaid expenses. |
Schedule of unrecognized tax benefits | Year ended December 31, 2017 2016 2015 (U.S. $ in millions) Balance at the beginning of the year $ 734 $ 648 $ 713 Increase (decrease) related to prior year tax positions, net 56 23 (6) Increase related to current year tax positions 26 71 43 Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations (56) (103) (99) Liabilities assumed in acquisitions 273 101 - Other 1 (6) (3) Balance at the end of the year $ 1,034 $ 734 $ 648 |
DERIVATIVE INSTRUMENTS AND HE44
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments And Risk Management Tables [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | c. Derivative instrument disclosure: The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting: December 31, 2017 2016 (U.S. $ in millions) Cross-currency swap - cash flow hedge $ 588 $ 588 Interest rate swap - fair value hedge 500 500 Cross-currency swap—net investment hedge 1,000 - The following table summarizes the classification and fair values of derivative instruments: Fair value Designated as hedging instruments Not designated as hedging instruments December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ $ $ 17 $ 10 Other non-current assets: Cross-currency swaps - cash flow hedge 25 88 - Liability derivatives: Other current liabilities: Option and forward contracts (15) (17) Other taxes and long-term liabilities: Cross currency swaps—net investment hedge (96) Senior notes and loans: Interest rate swaps - fair value hedge (2) (2) - |
Schedule of Accounts Receivable Securitization | As of and for the year ended December 31, 2017 2016 (U.S. $ in millions) Sold receivables at the beginning of the year $ 621 $ 445 Proceeds from sale of receivables 4,944 3,784 Cash collections (remitted to the owner of the receivables) (4,863) (3,660) Effect of currency exchange rate changes 97 52 Sold receivables at the end of the year $ 799 $ 621 |
FINANCIAL EXPENSES NET (Tables)
FINANCIAL EXPENSES NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Expenses Net Tables [Abstract] | |
Schedule of financial expenses | NOTE 17—FINANCIAL EXPENSES- NET: Year ended December, 31 2017 2016 2015 (U.S. $ in millions) Venezuela devaluation (1) $ 42 $ 746 $ - Interest expenses and other bank charges 875 546 270 Income from investments (84) (51) (34) Foreign exchange (gains) losses - net 65 (49) (9) Other, net (2) (3) 2 142 Other-than-temporary impairment (3) - 136 631 Total finance expense — net $ 895 $ 1,330 $ 1,000 (1) For further information regarding the Venezuela devaluation, refer to note 1a. (2) Expenses in 2015 were comprised mainly of expenses relating to the debt tender offer and the termination of related swap agreements. (3) Other-than-temporary impairment in 2015 relates mainly to the Company holdings in Mylan shares. |
OTHER EXPENSES (Tables)
OTHER EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Impairment [Abstract] | |
Schedule Of Restructuring Reserve By Type Of Cost [TextBlock] | NOTE 18—OTHER EXPENSES: a. Other assets impairments, restructuring and other items: Other assets impairments, restructuring and other items consisted of the following: Year ended December 31, 2017 2016 2015 (U.S. $ in millions) Impairment of long-lived assets (see notes 6 and 8) (1) $ 3,782 $ 746 $ 361 Contingent consideration (see note 3) 154 83 399 Acquisition, integration and related costs 105 261 221 Restructuring 535 245 183 Venezuela deconsolidation charge* 396 - - Other 102 84 12 Total $ 5,074 $ 1,419 $ 1,176 * Refer to note 1. Year ended December 31, 2017 2016 2015 (U.S. $ in millions) Restructuring Employee termination $ 443 $ 211 $ 183 Other 92 34 - Total $ 535 $ 245 $ 183 The following table provides the components of and changes in the Company's restructuring accruals: Employee termination costs Other Total (U.S. $ in millions ) Balance as of January 1, 2016 $ (105) $ (10) $ (115) Provision (211) (34) (245) Utilization and other* 172 35 207 Balance as of December 31, 2016 $ (144) $ (9) $ (153) Provision (443) (92) (535) Utilization and other* 293 84 377 Balance as of December 31, 2017 $ (294) $ (17) $ (311) * Includes adjustments for foreign currency translation. |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Year ended December 31, 2017 2016 2015 U.S.$ in millions Generic medicines profit 2,829 3,310 2,925 Specialty medicines profit 4,333 4,661 4,361 Total segment profit 7,162 7,971 7,286 Profit of other activities 86 68 75 7,248 8,039 7,361 Amounts not allocated to segments: Amortization 1,444 993 838 General and administrative expenses 1,330 1,285 1,360 Other assets impairments, restructuring and others items** 5,074 1,419 1,176 Goodwill impairment 17,100 900 - Inventory step-up 67 383 - Other R&D expenses 221 426 69 Costs related to regulatory actions taken in facilities 47 153 36 Legal settlements and loss contingencies 500 899 631 Gain on sales of business (1,083) (720) (45) Other unallocated amounts* 32 147 (56) Consolidated operating income (loss) (17,484) 2,154 3,352 Financial expenses - net 895 1,330 1,000 Consolidated income (loss) before income taxes $ (18,379) $ 824 $ 2,352 * Including for 2016, $133 million in inventory-related expenses in connection with the devaluation in venezuela. ** Including for 2017, $396 million related to Venezuela deconsolidation charge. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | a. Segment information: Generics Specialty Year ended December 31, Year ended December 31, 2017 2016 2015 2017 2016 2015 (U.S.$ in millions) Revenues $ 12,257 $ 11,990 $ 10,540 $ 7,914 $ 8,674 $ 8,338 Gross profit 5,115 5,696 4,903 6,877 7,558 7,200 R&D expenses 702 659 519 884 998 918 S&M expenses 1,584 1,727 1,459 1,660 1,899 1,921 Segment profit $ 2,829 $ 3,310 $ 2,925 $ 4,333 $ 4,661 $ 4,361 b. Segment revenues by geographic area: Year ended December 31, 2017 2016 2015 (U.S.$ in millions) Generic Medicines United States $ 5,036 $ 4,556 $ 4,795 Europe 3,994 3,563 3,146 Rest of the World 3,227 3,871 2,599 Total Generic Medicines 12,257 11,990 10,540 Specialty Medicines United States 5,686 6,724 6,442 Europe 1,780 1,598 1,518 Rest of the World 448 352 378 Total Specialty Medicines 7,914 8,674 8,338 Other Revenues United States 1,251 369 12 Europe 308 248 226 Rest of the World 655 622 536 Total Other Revenues 2,214 1,239 774 Total Revenues $ 22,385 $ 21,903 $ 19,652 * We define our European region as the European Union and certain other European countries. Our revenues from external customers attributed to Israel were less than 5% of our consolidated revenues in the years ended December 31, 2017, 2016 and 2015, respectively. |
Schedule of net sales by product line | c. Net revenues from specialty medicines were as follows: Year ended December 31, 2017 2016 2015 (U.S. $ in millions) CNS $ 4,426 $ 5,283 $ 5,213 Copaxone® 3,801 4,223 4,023 Azilect® 170 410 384 Nuvigil® 61 200 373 Respiratory 1,270 1,274 1,129 ProAir® 501 565 549 Qvar® 361 462 392 Oncology 1,135 1,139 1,201 Treanda® 658 661 741 Women's health 426 458 461 Other Specialty* 657 520 334 Total Specialty Medicines $ 7,914 $ 8,674 $ 8,338 * Includes the $150 million royalty payment from the Ninlaro® transaction in 2017. |
Schedule of sales percentage by therapeutic category | The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2017, 2016 and 2015. Percentage of Third Party Net Sales 2017 2016 2015 McKesson Corporation 16% 15% 20% AmerisourceBergen Corporation 15% 19% 20% Most of Teva's revenues from these customers were in the United States. |
Schedule of PPE by geographical area | e. Property, plant and equipment—by geographical location were as follows: December 31, 2017 2016 (U.S. $ in millions) Israel $ 2,180 $ 2,323 United States 1,109 1,135 Croatia 561 542 Germany 423 337 Japan 376 427 Hungary 368 422 Other 2,656 2,887 Total property, plant and equipment $ 7,673 $ 8,073 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share Tables [Abstract] | |
Schedule of earnings per share | NOTE 21—EARNINGS (LOSS) PER SHARE: The net income attributable to Teva and the weighted average number of ordinary shares used in computation of basic and diluted earnings per share for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 (U.S. $ in millions, except share data) Net income (loss) used for the computation of diluted earnings per share $ (16,525) $ 68 $ 1,573 |
Schedule of weighted average number of shares | Weighted average number of shares used in the computation of basic earnings per share 1,016 955 855 Add: Additional shares from the assumed exercise of employee stock options and unvested RSUs - 3 5 Weighted average number of additional shares issued upon the assumed conversion of convertible senior debentures - 3 4 Weighted average number of shares used in the computation of diluted earnings per share 1,016 961 864 |
SELECTED QUARTERLY FINANCIAL 49
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data Table [TextBlock] | 2017* 4th quarter** 3rd quarter 2nd quarter** 1st quarter U.S dollars in milions (except per share amounts) Net revenues 5,459 5,611 5,720 5,650 Gross profit 2,542 2,644 2,855 2,839 Net income (11,730) 610 (5,970) 641 Net income (loss) attributable to Teva (11,535) 595 (5,970) 645 Net income (loss) attributable to ordinary shareholders (11,600) 530 (6,035) 580 Earning per share attributable to ordinary shareholders: Basic (11.41) 0.52 (5.94) 0.57 Diluted (11.41) 0.52 (5.94) 0.57 2016 4th quarter 3rd quarter 2nd quarter 1st quarter U.S dollars in milions (except per share amounts) Net revenues 6,492 5,563 5,038 4,810 Gross profit 3,390 2,801 2,877 2,791 Net income (974) 410 242 633 Net income (loss) attributable to Teva (973) 412 254 636 Net income (loss) attributable to ordinary shareholders (1,038) 348 188 570 Earning per share attributable to ordinary shareholders: Basic (1.02) 0.35 0.21 0.62 Diluted (1.02) 0.35 0.20 0.62 * Certain comparative figures in 2017 have been reclassified to conform to the fourth quarter presentation. **Losses in the second and fourth quarters of 2017 were primarily due to our goodwill impairments of $6.1 billion and $11 billion, respectively. |
SCHEDULE II VALUATION AND QUA50
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 (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, 2017 $ 191 $ 12 $ 51 $ (22) $ 232 Year ended December 31, 2016 $ 146 $ 5 $ 61 $ (21) $ 191 Year ended December 31, 2015 $ 149 $ 18 $ (6) $ (15) $ 146 Allowance in respect of carryforward tax losses: Year ended December 31, 2017 $ 1,690 $ 173 $ 390 $ (748) $ 1,505 Year ended December 31, 2016 $ 760 $ 135 $ 1,137 $ -342 $ 1,690 Year ended December 31, 2015 $ 671 $ 249 $ 1 $ -161 $ 760 |
SIGNIFICANT ACCOUNTING POLICI51
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 30, 2017USD ($) | |
Significant Accounting Policies [Abstract] | ||||
Percentage of consolidated sales in North America | 5300.00% | |||
Shipping and handling costs, which are included in selling and marketing expenses | $ 164,000,000 | $ 134,000,000 | $ 127,000,000 | |
Advertising expense | 318,000,000 | 312,000,000 | 297,000,000 | |
Property Plant And Equipment [Line Items] | ||||
Other Revenue | 394,000,000 | 343,000,000 | $ 140,000,000 | |
Allowance For Doubtful Accounts Receivable | 232,000,000 | 191,000,000 | ||
Venezuela Inventory Balance Adjustments | 133,000,000 | |||
Venezuela cash | $ 13,000,000 | |||
Venezuela Deconsolidation | 396,000,000 | |||
Venezuela Deconsolidation Currency Adjustments | $ 326,000,000 | |||
Venezuela Devaluation Charge | 246,000,000 | |||
Venezuela Devaluation Charge2 | 500,000,000 | |||
Deferred Tax Short Term Reclassed [Abstract] | ||||
Application Of Intra Entity Transfers Deferred Taxes | 31,000,000 | |||
Application Of Guidance On Prepaid Expenses | 267,000,000 | |||
Application Of Guidance On Deferred Income Tax Liabilities | 198,000,000 | |||
Application Of Guidance On Deferred Income Tax Assets | (100,000,000) | |||
Application Of Guidance On Accrued Expenses Decreased | $ 31,000,000 | |||
Cash Deposited With Financially Sound European Us And Israeli Banks And Financial Institutions | $ 1,100,000,000 | |||
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 | |||
Other Machinery And Equipment [Member] | Maximum [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property Plant And Equipment Useful Life | 20 years | |||
Other Capitalized Property Plant And Equipment [Member] | Minimum [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property Plant And Equipment Useful Life | 5 years | |||
Other Capitalized Property Plant And Equipment [Member] | Maximum [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property Plant And Equipment Useful Life | 10 years |
CERTAIN TRANSACTIONS (Details)
CERTAIN TRANSACTIONS (Details) € in Billions, SFr in Billions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016CHF (SFr) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | |
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Japanese Business Venture Minority Interest | $ 1,600,000,000 | |||||
Fda Priority Review Voucher | 150,000,000 | |||||
Allergan One Time Payment To Teva | $ 700,000,000 | |||||
Debt Issuance And Term Loan Facilities Related | $ 100,000,000 | |||||
Rimsa [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Gross Contractual Amount Receivable | 47,000,000 | |||||
Receivable Not Expected To Be Collected | 3,000,000 | |||||
IPR And D Impairment | $ 43,000,000 | 110,000,000 | ||||
Actavis [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Payments To Acquire Businesses Gross | 39,270,000,000 | |||||
Proceeds From Issuance Of Debt | 20,400,000,000 | |||||
Net Debt Proceeds | 20,300,000,000 | |||||
Cash Consideration | 33,400,000,000 | |||||
Cash On Hand Consideration | 8,100,000,000 | |||||
Total Equity Issuance Costs | 200,000,000 | |||||
Gross Contractual Amount Receivable | 3,319,000,000 | |||||
Receivable Not Expected To Be Collected | 109,000,000 | |||||
Litigation Matters Assumed By Teva | 607,000,000 | |||||
Working Capital Adjustments | $ 1,611,000,000 | |||||
Proceeds From Sale Of The Assets | 527,000,000 | |||||
Shares Adjusted DiscountRate | 5.80% | |||||
Net Proceeds From Ftc Divest | $ 677,000,000 | |||||
Capital Loss From Ftc Divest | 52,000,000 | |||||
Reassessment Of Carry forward Losses | 327,000,000 | |||||
Reassessment To Uncertain Tax Positions | 297,000,000 | |||||
Cash Consideration Working Capital TrueUp | $ 1,400,000,000 | |||||
Actavis Therty Year Notes [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
The Effective average interest rate of the newly issued notes | 2.32% | |||||
Actavis Debt Issuances Cur Dolar [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Proceeds From Issuance Of Debt | 15,000,000,000 | |||||
Actavis Debt Issuances Cur Euro [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Proceeds From Issuance Of Debt | € | € 4 | |||||
Actavis Debt Issuances Cur Chf [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Proceeds From Issuance Of Debt | SFr | SFr 1 | |||||
Anda [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Cash Consideration | 500,000,000 | |||||
Consideration Adjustment | $ 43,000,000 | |||||
Other Treansactions [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Non Cash Consideration | 1,800,000,000 | |||||
Regeneron [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Research And Development Costs | 1,000,000,000 | |||||
Upfront Payment | 250,000,000 | |||||
Collaborative Agreement Milestone Payments | 35,000,000 | $ 25,000,000 | ||||
Celltrion [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Refundable Payment | 60,000,000 | |||||
Total Associated Cost | 160,000,000 | |||||
Takeda [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Purchases From | 255,000,000 | |||||
Otsuka [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Upfront Payment | $ 50,000,000 | |||||
First Traches [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Term Loan Facility | 2,500,000,000 | |||||
Bridge Loan [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Term Loan Facility | 22,000,000,000 | |||||
Second Traches [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Term Loan Facility | 2,500,000,000 | |||||
Alder [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Upfront Payment | 25,000,000 | |||||
Collaborative Agreement Milestone Payments | $ 175,000,000 | |||||
Teva Assets [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Net Gain Teva From Products | 720,000,000 | |||||
Goodwill Disposal | 99,000,000 | |||||
Proceeds From Sale Of The Assets | 1,218,000,000 | |||||
Ninlaro [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Upfront Payment | 150,000,000 | |||||
Payment | 150,000,000 | |||||
Both Traches [Member] | ||||||
Noncash Or Part Noncash Acquisitions [Line Items] | ||||||
Term Loan Facility | $ 5,000,000,000 |
CERTAIN TRANSACTIONS (Details 1
CERTAIN TRANSACTIONS (Details 1) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
BusinessCombinationConsiderationTransferredAbstract | |||||
Goodwill Impairment | $ 11,000 | $ 6,100 | $ 17,100 | $ 900 | $ 0 |
Japanese Venture [Member] | |||||
BusinessCombinationConsiderationTransferredAbstract | |||||
Net Assets Acquired | $ 1,800 | ||||
Rimsa [Member] | |||||
BusinessCombinationConsiderationTransferredAbstract | |||||
Goodwill Impairment | 900 | ||||
Actavis [Member] | |||||
BusinessCombinationConsiderationTransferredAbstract | |||||
Shares issued as consideration for the acquisition | 100.3 | ||||
Price Per Share Transferred | $ 50.5 | $ 50.5 | |||
Purchase Price Allocated To Developed Products | $ 8,200 | $ 8,200 | |||
Purchase Price Allocated To Iprd | 5,600 | $ 5,600 | |||
Discount Rate Description | 6% to 13% | ||||
Attenukine [Member] | |||||
BusinessCombinationConsiderationTransferredAbstract | |||||
Upfrontp Pyment | $ 30 | ||||
Additional Considerations | $ 280 | $ 280 |
CERTAIN TRANSACTIONS (Details 4
CERTAIN TRANSACTIONS (Details 4) | 12 Months Ended |
Dec. 31, 2017 | |
Takeda [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Collaborative Arrangement, Rights and Obligations | Teva assigned 49% in the business venture to Takeda in consideration of the contribution of its off-patented products business in Japan. The business venture will be consolidated in Teva's financial statements commencing April 1, 2016, and is expected to increase Teva's sales in the Japanese market. Takeda’s interest in the business venture will be accounted for under “net income (loss) attributable to non-controlling interests.” |
Actavis Generics [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
LineOfCreditFacilityDescription | At the closing of the acquisition, Teva borrowed $5 billion under its term loan facility with a syndicate of banks. The term facility is split into two tranches of $2.5 billion each, with the first tranche maturing in full after three years and the second tranche maturing in five years with payment installments each year (see note 11). In addition, Teva terminated its $22 billion bridge loan credit agreement. |
CERTAIN TRANSACTIONS (Details 6
CERTAIN TRANSACTIONS (Details 6) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Cash To Acquire Businesses Acquisition | $ 33,878,000,000 | |
BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable | 5,065,000,000 | |
Business Combination Consideration Transferred Equity Based Compensation | 25,000,000 | |
Contingent Consideration 2 | 302,000,000 | |
Total fair value of consideration transferred | 39,270,000,000 | |
Cost Of Sale Of Business | $ 15,000,000 | |
plan B sale agreement | 675,000,000 | |
Rimsa PPA [Member] | ||
Business Acquisition [Line Items] | ||
Other non-current assets. | 144,000,000 | |
Other Current Assets. | 97,000,000 | |
In-process research and development | 338,000,000 | |
Goodwil | 1,933,000,000 | |
Total assets acquired | 2,512,000,000 | |
Deferred income taxes and other non-current liabilities | 68,000,000 | |
Other Current Liabilities | 123,000,000 | |
Total liabilities assumed | 191,000,000 | |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Net | 2,321,000,000 | |
Takeda PPA [Member] | ||
Business Acquisition [Line Items] | ||
Inventories. | 134,000,000 | |
Goodwil | 698,000,000 | |
Product Rights | 1,491,000,000 | |
Total assets acquired | 2,323,000,000 | |
Deferred income taxes and other non-current liabilities | 498,000,000 | |
Total liabilities assumed | 498,000,000 | |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Net | 1,825,000,000 | |
Actavis PPA [Member] | ||
Business Acquisition [Line Items] | ||
Inventories. | 1,664,000,000 | |
Trade Receivable | 3,210,000,000 | |
Property Plant And Equipment | 1,265,000,000 | |
Cash and cash equivalents | 84,000,000 | |
Other non-current assets. | 24,000,000 | |
Other Current Assets. | 2,026,000,000 | |
In-process research and development | 5,617,000,000 | |
Goodwil | 25,153,000,000 | |
Product Rights | 8,154,000,000 | |
Trade names / customer relationships | 429,000,000 | |
Total assets acquired | 47,626,000,000 | |
Sales Reserves And Allowances. | 2,036,000,000 | |
EmployeeRelatedObligationsAcquisition. | 147,000,000 | |
Trade Payables | 438,000,000 | |
Accrued expenses. | 1,044,000,000 | |
Deferred income taxes and other non-current liabilities | 4,000,000,000 | |
Other Current Liabilities | 691,000,000 | |
Total liabilities assumed | 8,356,000,000 | |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Net | 39,270,000,000 | |
Actavis Held For Sale [Member] | ||
Business Acquisition [Line Items] | ||
Trade receivables. | 0 | 59,000,000 |
Inventory Held For Sale | 39,000,000 | 63,000,000 |
Other Current Asset HeldForSale | 0 | 1,000,000 |
Deferred income taxes. | 0 | 7,000,000 |
Other Non Current Asset Held For Sale | 275,000,000 | 0 |
Assets Held For Sale Property Plant And Equipments | 16,000,000 | 36,000,000 |
Identifiable Intangible Assets Net Held For Sale | 236,000,000 | 675,000,000 |
Total Assets Of The Disposal Group Classified As Held For Sale In The Consolidated Balance Sheets | 566,000,000 | 841,000,000 |
Account Payable And Accruals Held For Sale | 0 | 83,000,000 |
Other current liabilities. | 0 | 10,000,000 |
Other Taxes AndLong Term Liabilities Held For Sale | 38,000,000 | 23,000,000 |
Total Liabilities Of The Disposal Group Classified As Held For Sale In The Consolidated Balance Sheet | 38,000,000 | 116,000,000 |
Actavis Preliminary Values [Member] | ||
Business Acquisition [Line Items] | ||
Inventories. | 1,670,000,000 | |
Trade Receivable | 3,211,000,000 | |
Property Plant And Equipment | 1,370,000,000 | |
Cash and cash equivalents | 84,000,000 | |
Other non-current assets. | 24,000,000 | |
Other Current Assets. | 2,050,000,000 | |
In-process research and development | 5,006,000,000 | |
Goodwil | 24,192,000,000 | |
Product Rights | 8,640,000,000 | |
Trade names / customer relationships | 417,000,000 | |
Total assets acquired | 46,664,000,000 | |
Sales Reserves And Allowances. | 1,988,000,000 | |
EmployeeRelatedObligationsAcquisition. | 134,000,000 | |
Trade Payables | 441,000,000 | |
Accrued expenses. | 920,000,000 | |
Deferred income taxes and other non-current liabilities | 3,493,000,000 | |
Other Current Liabilities | 376,000,000 | |
Total liabilities assumed | 7,352,000,000 | |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Net | $ 39,312,000,000 | |
Actavis Measurement Period Adjustments [Member] | ||
Business Acquisition [Line Items] | ||
Inventories. | (6,000,000) | |
Trade Receivable | (1,000,000) | |
Property Plant And Equipment | (105,000,000) | |
Cash and cash equivalents | 0 | |
Other non-current assets. | 0 | |
Other Current Assets. | (24,000,000) | |
In-process research and development | 611,000,000 | |
Goodwil | 961,000,000 | |
Product Rights | (486,000,000) | |
Trade names / customer relationships | 12,000,000 | |
Total assets acquired | 962,000,000 | |
Sales Reserves And Allowances. | 48,000,000 | |
EmployeeRelatedObligationsAcquisition. | 13,000,000 | |
Trade Payables | (3,000,000) | |
Accrued expenses. | 124,000,000 | |
Deferred income taxes and other non-current liabilities | 507,000,000 | |
Other Current Liabilities | 315,000,000 | |
Total liabilities assumed | 1,004,000,000 | |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Net | (42,000,000) | |
Women Health [Member] | ||
Business Acquisition [Line Items] | ||
Sale Agreement With Cvc Capital Partners FundVi | 703,000,000 | |
Paragard Sale Agreement | $ 1,100,000,000 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments carried at fair value [Line Items] | ||
Total | $ 254 | $ 1,201 |
Options And Forward Contracts Derivative Liabilities [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Liabilities | 15 | 17 |
Asset Derivatives [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Asset | 17 | 10 |
ContingentConsiderationClassifiedAsAssetsOrLiabilitesFairValueDisclosure | (735) | (828) |
Level 1 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Total | 1,042 | 1,844 |
Level 1 [Member] | Options And Forward Contracts Derivative Liabilities [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Liabilities | 0 | 0 |
Level 1 [Member] | Asset Derivatives [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Asset | 0 | 0 |
ContingentConsiderationClassifiedAsAssetsOrLiabilitesFairValueDisclosure | 0 | 0 |
Level 2 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Total | (71) | 168 |
Level 2 [Member] | Options And Forward Contracts Derivative Liabilities [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Liabilities | 15 | 17 |
Level 2 [Member] | Asset Derivatives [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Asset | 17 | 10 |
ContingentConsiderationClassifiedAsAssetsOrLiabilitesFairValueDisclosure | 0 | 0 |
Level 3 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Total | (717) | (811) |
Level 3 [Member] | Options And Forward Contracts Derivative Liabilities [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Liabilities | 0 | 0 |
Level 3 [Member] | Asset Derivatives [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Asset | 0 | 0 |
ContingentConsiderationClassifiedAsAssetsOrLiabilitesFairValueDisclosure | (735) | (828) |
Money Market Funds [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Cash And Cash Equivalents Fair Value Disclosure | 5 | 24 |
Money Market Funds [Member] | Level 1 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Cash And Cash Equivalents Fair Value Disclosure | 5 | 24 |
Money Market Funds [Member] | Level 2 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Cash And Cash Equivalents Fair Value Disclosure | 0 | 0 |
Money Market Funds [Member] | Level 3 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Cash And Cash Equivalents Fair Value Disclosure | 0 | 0 |
Demand Deposits [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Cash And Cash Equivalents Fair Value Disclosure | 958 | 964 |
Demand Deposits [Member] | Level 1 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Cash And Cash Equivalents Fair Value Disclosure | 958 | 964 |
Demand Deposits [Member] | Level 2 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Cash And Cash Equivalents Fair Value Disclosure | 0 | 0 |
Demand Deposits [Member] | Level 3 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Cash And Cash Equivalents Fair Value Disclosure | 0 | 0 |
Auction Rate Securities [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | |
Auction Rate Securities [Member] | Level 1 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | |
Auction Rate Securities [Member] | Level 2 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | |
Auction Rate Securities [Member] | Level 3 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | |
Structured Finance [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | 89 |
Structured Finance [Member] | Level 1 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | 0 |
Structured Finance [Member] | Level 2 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | 89 |
Structured Finance [Member] | Level 3 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | 0 |
Other Debt Obligations [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 32 | 31 |
Other Debt Obligations [Member] | Level 1 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 14 | 14 |
Other Debt Obligations [Member] | Level 2 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | 0 |
Other Debt Obligations [Member] | Level 3 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 18 | 17 |
Interest Rate Swap [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Asset | 25 | 88 |
Interest Rate Swap [Member] | Level 1 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Asset | 0 | 0 |
Interest Rate Swap [Member] | Level 2 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Asset | 25 | 88 |
Interest Rate Swap [Member] | Level 3 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Asset | 0 | 0 |
Equity Securities [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 65 | 842 |
Equity Securities [Member] | Level 1 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 65 | 842 |
Equity Securities [Member] | Level 2 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | 0 |
Equity Securities [Member] | Level 3 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Investment in securities | 0 | 0 |
Cross Currency Interest Rate Contract [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Liabilities | 98 | 2 |
Cross Currency Interest Rate Contract [Member] | Level 1 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Liabilities | 0 | 0 |
Cross Currency Interest Rate Contract [Member] | Level 2 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Liabilities | 98 | 2 |
Cross Currency Interest Rate Contract [Member] | Level 3 [Member] | ||
Financial instruments carried at fair value [Line Items] | ||
Derivatives - Liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT (Detai57
FAIR VALUE MEASUREMENT (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair value of financial liabilities measured using Level 3 inputs | ||
Investment In Debt Securities | $ 0 | $ 16,000,000 |
Forein Currency Translation Differences | (17,000,000) | 18,000,000 |
Other net change to fair value [Abstract] | ||
Carrying value | (717,000,000) | (811,000,000) |
Cephalon [Member] | ||
Changes in contingent consideration [Abstract] | ||
Changes in contingent consideration | 10,000,000 | (12,000,000) |
Other net change to fair value [Abstract] | ||
Other net change to fair value - Included in earnings | 0 | 205,000,000 |
Microdose [Member] | ||
Changes in contingent consideration [Abstract] | ||
Changes in contingent consideration | 89,000,000 | (8,000,000) |
Nu Pathe [Member] | ||
Changes in contingent consideration [Abstract] | ||
Changes in contingent consideration | 0 | 122,000,000 |
Eagle Transaction [Member] | ||
Changes in contingent consideration [Abstract] | ||
Changes in contingent consideration | (178,000,000) | (179,000,000) |
Other net change to fair value [Abstract] | ||
Other net change to fair value - Included in earnings | 165,000,000 | 115,000,000 |
Gecko [Member] | ||
Other net change to fair value [Abstract] | ||
Other net change to fair value - Included in earnings | 0 | 6,000,000 |
Actavis Generic [Member] | ||
Changes in contingent consideration [Abstract] | ||
Changes in contingent consideration | (35,000,000) | |
Labrys Transaction [Member] | ||
Changes in contingent consideration [Abstract] | ||
Changes in contingent consideration | (40,000,000) | (6,000,000) |
Other net change to fair value [Abstract] | ||
Other net change to fair value - Included in earnings | 100,000,000 | 25,000,000 |
Actavis Generic [Member] | ||
Contingent consideration resulting from [Abstract] | ||
Contingent consideration resulting from | $ 0 | $ (302,000,000) |
FAIR VALUE MEASUREMENT (Detai58
FAIR VALUE MEASUREMENT (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instrument measured on a basis other than fair value [Abstract] | ||
Fair value at the end of the period | $ 26,172 | $ 27,025 |
SeniorNotes And Convertible Senior Debentures [Member] | ||
Financial instrument measured on a basis other than fair value [Abstract] | ||
Fair value at the end of the period | 2,713 | 569 |
Senior Note Issues [Member] | ||
Financial instrument measured on a basis other than fair value [Abstract] | ||
Fair value at the end of the period | $ 23,459 | $ 26,456 |
INVESTMENT IN SECURITIES (Detai
INVESTMENT IN SECURITIES (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Marketable Securities [Abstract] | |||
Available-for sale securities - Fair value | $ 102,000,000 | $ 102,000,000 | $ 986,000,000 |
Cost | 103,000,000 | $ 103,000,000 | 985,000,000 |
Gross unrealized holding gains | 19,000,000 | 44,000,000 | |
Gross unrealized holding losses | $ 20,000,000 | 43,000,000 | |
Company Average Share Price | $ 25.62 | $ 25.62 | |
Money Market Funds [Member] | |||
Marketable Securities [Abstract] | |||
Available-for sale securities - Fair value | $ 5,000,000 | $ 5,000,000 | 24,000,000 |
Mylan Shares [Member] | |||
Marketable Securities [Abstract] | |||
Cash Consideration | 702,000,000 | 202,000,000 | |
Mesoblast [Member] | |||
Marketable Securities [Abstract] | |||
Impairment | 99,000,000 | ||
Mylan [Member] | |||
Marketable Securities [Abstract] | |||
Net Gain (loss) Mylan | $ 36,000,000 | $ 36,000,000 | (5,000,000) |
Additional Loss | $ 37,000,000 | ||
Company Average Share Price | $ 40.2 | $ 40.2 | $ 39.3 |
Deferred Taxes And Other Current Assets [Member] | |||
Marketable Securities [Abstract] | |||
Available-for sale securities - Fair value | $ 14,000,000 | $ 14,000,000 | $ 679,000,000 |
Long Term Investments And Receivables [Member] | |||
Marketable Securities [Abstract] | |||
Available-for sale securities - Fair value | $ 83,000,000 | $ 83,000,000 | $ 283,000,000 |
INVESTMENT IN SECURITIES (Det60
INVESTMENT IN SECURITIES (Details1) | Dec. 31, 2017USD ($) |
Contractual maturities of debt securities | |
2,018 | $ 19,000,000 |
2021 and thereafter | 18,000,000 |
Total maturities of available-for-sale securities, at fair value | $ 37,000,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Raw and packaging materials | $ 1,454,000,000 | $ 1,385,000,000 |
Products in process | 597,000,000 | 538,000,000 |
Finished products | 2,689,000,000 | 2,832,000,000 |
Materials in transit and payments on account | 184,000,000 | 199,000,000 |
Inventories | $ 4,924,000,000 | $ 4,954,000,000 |
PROPERTY, PLANT AND EQUIPMENT62
PROPERTY, PLANT AND EQUIPMENT (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Property Plant and Equipment Net [Abstract] | |||
Land owned or held under long-term leases | $ 390,000,000 | $ 439,000,000 | |
Buildings | 3,329,000,000 | 3,331,000,000 | |
Machinery and equipment | 5,809,000,000 | 5,748,000,000 | |
Computer equipment and other assets | 2,016,000,000 | 1,774,000,000 | |
Payments on account | 634,000,000 | 634,000,000 | |
Subtotal | 12,178,000,000 | 11,926,000,000 | |
Less-accumulated depreciation | 4,505,000,000 | 3,853,000,000 | |
Property, Plant and Equipment, Net, Total | 7,673,000,000 | 8,073,000,000 | |
Depreciation expense for the year | 632,000,000 | 501,000,000 | $ 449,000,000 |
Impairment charge during the year on property, plant and equipment | $ 544,000,000 | $ 149,000,000 | $ 96,000,000 |
Capitalized Land Lease Estimated Useful Lives Minimum | 30 | ||
Capitalized Land Lease Estimated Useful Lives Maximum | 99 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill Roll Forward [Line Items] | |||||
Goodwill, balance as of January 1 | $ 44,409,000,000 | $ 19,025,000,000 | |||
Net additions from acquisitions and adjustments of previously recorded business combinations | 26,829,000,000 | ||||
Goodwill Translation Adjustments | 1,157,000,000 | (446,000,000) | |||
Goodwill acquired | 920,000,000 | ||||
Goodwill Impairment. | (17,100,000,000) | (900,000,000) | |||
Goodwill Disposed | (697,000,000) | (99,000,000) | |||
Goodwill Reclassification | (275,000,000) | ||||
Goodwill, balance as of December 31 | $ 28,414,000,000 | 28,414,000,000 | 44,409,000,000 | $ 19,025,000,000 | |
Goodwill Reduced | $ (17,100,000,000) | (900,000,000) | |||
Assumed Terminal Growth Rate Us Generics | 200.00% | ||||
Discounted Rate US Generic | 730.00% | 680.00% | 730.00% | ||
Equity Value | $ 19,000,000,000 | $ 19,000,000,000 | |||
Market Capitalization | 21,000,000,000 | 21,000,000,000 | |||
Good Will Impairment Loss Us Distribution | 560,000,000 | ||||
Goodwill Impairment Loss Us Generics | 10,400,000,000 | 16,500,000,000 | |||
Goodwill Impairment | 11,000,000,000 | $ 6,100,000,000 | $ 17,100,000,000 | 900,000,000 | 0 |
Projections Assumptions Us Generics | If Teva holds all other assumptions constant, a reduction in the terminal value growth rate by 0.1% or an increase in discount rate by 0.1% would each result in an additional impairment of approximately $190 million and $230 million, respectively. | ||||
Projections Assumptions Other Generics | Teva concluded that the fair value of each of its remaining reporting units within its generics medicines segment continues to be in excess of its carrying value. The remaining goodwill allocated to these reporting units was approximately $13.4 billion as of December 31, 2017. For these reporting units, the percentage excess of estimated fair value over carrying value, as of December 31, 2017, was 45.6% for Teva's Rimsa reporting unit, 4.6% for the European generics reporting unit and 4.1% for the ROW generics reporting unit. | ||||
Projections Assumptions Row Generics | The resulting cash flow amounts for European generics reporting unit were discounted using a rate of 8.4% reflecting market participants' assumptions regarding increased uncertainties and country-specific characteristics with a terminal growth rate of 1.8%. If Teva holds all other assumptions constant, a reduction in the terminal value growth rate by 0.5% or an increase in discount rate by 0.4% would each result in impairment. The goodwill allocated to this reporting unit was $8.2 billion as of December 31, 2017. | ||||
Projections Assumptions Europe Generics | The resulting cash flow amounts for ROW generics reporting unit were discounted using a rate of 8.8% reflecting market participants' assumptions regarding increased uncertainties and country-specific characteristics with a terminal growth rate of 3.5%. If Teva holds all other assumptions constant, a reduction in the terminal value growth rate by 0.3% or an increase in discount rate by 0.2% would each result in impairment. The goodwill allocated to this reporting unit was $4.3 billion as of December 31, 2017. | ||||
Projections Assumptions Specialty | Teva adjusted its projections for its specialty reporting unit to reflect significant events that took place during 2017, mainly the FDA approval of a generic version of COPAXONE and the subsequent launch at risk of a competing product in the U.S. market, as well as the unfavorable clinical trial result for laquinimod and the favorable clinical trial results for AUSTEDO and fremanezumab. Teva reflected the expected implications of these developments in the cash flow projections and discounted the adjusted cash flow amounts by adding an additional risk premium of 2.3% to the discount rate of 7.3%, which Teva uses for most of its worldwide operations, applying a market participant view, to reflect the increased uncertainties in its specialty business. | ||||
Generics [Member] | |||||
Goodwill Roll Forward [Line Items] | |||||
Goodwill, balance as of January 1 | $ 32,863,000,000 | 8,465,000,000 | |||
Net additions from acquisitions and adjustments of previously recorded business combinations | 25,767,000,000 | ||||
Goodwill Translation Adjustments | 1,028,000,000 | (370,000,000) | |||
Goodwill acquired | 1,480,000,000 | (900,000,000) | |||
Goodwill Impairment. | (16,500,000,000) | ||||
Goodwill Disposed | (7,000,000) | (99,000,000) | |||
Goodwill, balance as of December 31 | 18,864,000,000 | 18,864,000,000 | 32,863,000,000 | 8,465,000,000 | |
Goodwill Reduced | (16,500,000,000) | ||||
Specialty [Member] | |||||
Goodwill Roll Forward [Line Items] | |||||
Goodwill, balance as of January 1 | 9,323,000,000 | 9,420,000,000 | |||
Net additions from acquisitions and adjustments of previously recorded business combinations | (29,000,000) | ||||
Goodwill Translation Adjustments | 106,000,000 | (68,000,000) | |||
Goodwill Disposed | (690,000,000) | ||||
Goodwill Reclassification | (275,000,000) | ||||
Goodwill, balance as of December 31 | 8,464,000,000 | 8,464,000,000 | 9,323,000,000 | 9,420,000,000 | |
Other Good Will [Member] | |||||
Goodwill Roll Forward [Line Items] | |||||
Goodwill, balance as of January 1 | 2,223,000,000 | 1,140,000,000 | |||
Net additions from acquisitions and adjustments of previously recorded business combinations | 1,091,000,000 | ||||
Goodwill Translation Adjustments | 23,000,000 | (8,000,000) | |||
Goodwill acquired | (560,000,000) | ||||
Goodwill Impairment. | (600,000,000) | ||||
Goodwill, balance as of December 31 | $ 1,086,000,000 | 1,086,000,000 | $ 2,223,000,000 | $ 1,140,000,000 | |
Goodwill Reduced | $ (600,000,000) |
IDENTIFIABLE INTANGIBLE ASSET64
IDENTIFIABLE INTANGIBLE ASSET (Details) - USD ($) | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Estimated aggregate amortization of intangible assets | |||||
2,018 | $ 1,309,000,000 | ||||
2,019 | 1,246,000,000 | ||||
2,020 | 1,218,000,000 | ||||
2,021 | 1,071,000,000 | ||||
2,022 | 1,109,000,000 | ||||
Product rights, at cost | 21,011,000,000 | $ 18,180,000,000 | |||
Finite Lived Trade Names Gross | 617,000,000 | 625,000,000 | |||
Research and development in process gross | 4,343,000,000 | 9,183,000,000 | |||
Intangible assets, gross, excluding goodwill | 25,971,000,000 | 27,988,000,000 | |||
Product rights, accumulated amortization | 8,276,000,000 | 6,460,000,000 | |||
Finite Lived Trade Names Accumulated Amortization | 55,000,000 | 41,000,000 | |||
Intangible assets accumulated amortization | 8,331,000,000 | 6,501,000,000 | |||
Products rights net | 12,735,000,000 | 11,720,000,000 | |||
Trade Names Net | 562,000,000 | 584,000,000 | |||
Research and development in process net | 4,343,000,000 | 9,183,000,000 | |||
Intangible assets, net (excluding goodwill) total | 17,640,000,000 | 21,487,000,000 | |||
Impairment of intangible assets Excluding Goodwill | 3,238,000,000 | 589,000,000 | $ 265,000,000 | ||
Amortization Of Intangible Assets | 1,444,000,000 | 993,000,000 | $ 838,000,000 | ||
AcquiredIndefiniteLivedIntangibleAssetsLineItems | |||||
Business Combination Recognized Identifiable Assets AcquiredAndLiabilitiesAssumedInProcessResearchAndDevelopmentNet | 4,343,000,000 | $ 9,183,000,000 | |||
Reclassified From IPRD To Product Rights [Line Items] | |||||
IPR&D To Product Rights | $ 1,300,000,000 | $ 1,700,000,000 | |||
Testim Gel And Sildenafil Tablets [Member] | |||||
Reclassified From IPRD To Product Rights [Line Items] | |||||
IPR&D To Product Rights | 45,000,000 | ||||
Labrys [Member] | |||||
Estimated aggregate amortization of intangible assets | |||||
Research and development in process net | 444,000,000 | ||||
AcquiredIndefiniteLivedIntangibleAssetsLineItems | |||||
Business Combination Recognized Identifiable Assets AcquiredAndLiabilitiesAssumedInProcessResearchAndDevelopmentNet | 444,000,000 | ||||
Actavis Generics [Member] | |||||
Estimated aggregate amortization of intangible assets | |||||
Research and development in process net | 3,535,000,000 | ||||
AcquiredIndefiniteLivedIntangibleAssetsLineItems | |||||
Business Combination Recognized Identifiable Assets AcquiredAndLiabilitiesAssumedInProcessResearchAndDevelopmentNet | 3,535,000,000 | ||||
Rimsa [Member] | |||||
Estimated aggregate amortization of intangible assets | |||||
Research and development in process net | 153,000,000 | ||||
AcquiredIndefiniteLivedIntangibleAssetsLineItems | |||||
Business Combination Recognized Identifiable Assets AcquiredAndLiabilitiesAssumedInProcessResearchAndDevelopmentNet | 153,000,000 | ||||
Austedo [Member] | |||||
Estimated aggregate amortization of intangible assets | |||||
Research and development in process net | 211,000,000 | ||||
AcquiredIndefiniteLivedIntangibleAssetsLineItems | |||||
Business Combination Recognized Identifiable Assets AcquiredAndLiabilitiesAssumedInProcessResearchAndDevelopmentNet | $ 211,000,000 |
SALES RESERVES AND ALLOWANCES65
SALES RESERVES AND ALLOWANCES (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Revenue Recognition [Abstract] | ||
Rebates | $ 3,077,000,000 | $ 3,482,000,000 |
Chargebacks | 1,849,000,000 | 1,584,000,000 |
Returns | 780,000,000 | 844,000,000 |
Other | 267,000,000 | 200,000,000 |
Medicaid | 1,908,000,000 | 1,729,000,000 |
Sales Reserves And Allowances | $ 7,881,000,000 | $ 7,839,000,000 |
LONG TERM EMPLOYEE RELATED OB66
LONG TERM EMPLOYEE RELATED OBLIGATIONS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Employee-related obligations long-term | ||
Accrued Severance Obligation | $ 91 | $ 120 |
Defined benefit plans | 182 | 197 |
Total | 273 | 317 |
Employee-related obligations information | ||
Long-term investments earmarked for severance pay liabilities in Israel | 149 | $ 152 |
Expected contributions to the pension funds | 156 | |
Future minimum benefit payments | ||
2,018 | 7 | |
2,019 | 7 | |
2,020 | 8 | |
2,021 | 9 | |
2,022 | 10 | |
2023 - 2027 | $ 53 |
DEBT OBLIGATIONS (Details)
DEBT OBLIGATIONS (Details) $ in Millions | Dec. 31, 2017USD ($) |
Maturities Of Long Term Debt [Abstract] | |
2,018 | $ 4,010 |
2,019 | 4,295 |
2,020 | 4,207 |
2,021 | 1,743 |
2022 and thereafter | 14,680 |
Long Term Debt Exclude Issuance Cost | $ 28,935 |
DEBT OBLIGATIONS (Details 1)
DEBT OBLIGATIONS (Details 1) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt Instrument Maturity Date | Jan. 1, 2026 | |
Senior Notes | $ 28,367,000,000 | $ 27,265,000,000 |
Term Loans | 3,426,000,000 | 6,158,000,000 |
Long Term Debentures | 20,000,000 | 24,000,000 |
Less current maturities | (2,880,000,000) | (810,000,000) |
Derivative Instruments | 2,000,000 | 2,000,000 |
Less Debt Issuance Cost | (106,000,000) | (115,000,000) |
Total Long Term Debt | $ 28,829,000,000 | 32,524,000,000 |
Term Loan JPY35 Billion Libor Plus | JPY LIBOR +0.3% | |
Term Loan USD 2 Point 5 Billion Libor Plus | LIBOR +1.1375% | |
Term Loan USD 2 Point 5 Billion2 Libor Plus | LIBOR +1.50% | |
Term Loan JPY 55 Libor Plus | JPY LIBOR +0.55% | |
Subsidiary Senior Notes Due 2020 One [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 38.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes EUR 1,750 million (1)................................ | |
Senior Notes | $ 2,095,000,000 | 1,834,000,000 |
Subsidiary Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 113.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes EUR 1,500 million (1)................................ | |
Senior Notes | $ 1,788,000,000 | 1,566,000,000 |
Subsidiary Senior Notes Due 2023 One [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 125.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes EUR 1,300 million...................................... | |
Senior Notes | $ 1,550,000,000 | 1,357,000,000 |
Subsidiary Senior Notes Due 2019 One [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 288.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes EUR 1,000 million...................................... | |
Senior Notes | $ 1,199,000,000 | 1,050,000,000 |
Subsidiary Senior Notes Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 163.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes EUR 750 million (1)................................... | |
Senior Notes | $ 891,000,000 | 780,000,000 |
Subsidiary Senior Notes Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 188.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes EUR 700 million......................................... | |
Senior Notes | $ 837,000,000 | 733,000,000 |
Subsidiary Senior Notes Due 2026 One [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 315.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 3,500 million (2)................................ | |
Senior Notes | $ 3,492,000,000 | 3,491,000,000 |
Subsidiary Senior Notes Due 2021 One [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 220.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 3,000 million (2)................................ | |
Senior Notes | $ 2,996,000,000 | 2,995,000,000 |
Subsidiary Senior Notes Due 2023 Two [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 280.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 3,000 million (2), (3)......................... | |
Senior Notes | $ 2,992,000,000 | 2,991,000,000 |
Subsidiary Senior Notes Due 2019 Two [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 170.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 2,000 million (2)................................ | |
Senior Notes | $ 2,000,000,000 | 2,000,000,000 |
Subsidiary Senior Notes Due 2046 [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 410.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 2,000 million (2)................................ | |
Senior Notes | $ 1,984,000,000 | 1,984,000,000 |
Subsidiary Senior Notes Due 2018 One [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 140.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 1,500 million (2)................................ | |
Senior Notes | $ 1,500,000,000 | 1,498,000,000 |
Subsidiary Senior Notes Due 2022 One [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 295.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 844 million (4)................................... | |
Senior Notes | $ 864,000,000 | 868,000,000 |
Subsidiary Senior Notes Due 2036 One [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 615.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 789 million........................................ | |
Senior Notes | $ 781,000,000 | 781,000,000 |
Subsidiary Senior Notes Due 2020 Two [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 225.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 700 million........................................ | |
Senior Notes | $ 700,000,000 | 700,000,000 |
Subsidiary Senior Notes Due 2021 Two [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 365.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 613 million (4)................................... | |
Senior Notes | $ 624,000,000 | 626,000,000 |
Subsidiary Senior Notes Due 2021 Tree [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 365.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes USD 588 million ....................................... | |
Senior Notes | $ 587,000,000 | 587,000,000 |
Subsidiary Senior Notes Due 2018 Two [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 150.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes CHF 450 million ........................................ | |
Senior Notes | $ 461,000,000 | 442,000,000 |
Subsidiary Senior Notes Due 2022 Two [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 50.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes CHF 350 million (5).................................. | |
Senior Notes | $ 360,000,000 | 344,000,000 |
SubsidiarySeniorNotesDue2025 [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 100.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes CHF 350 million (5)................................... | |
Senior Notes | $ 360,000,000 | 345,000,000 |
Subsidiary Senior Notes Due 2018 Four [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 13.00% | |
Debt Instrument Description Of Variable Rate Basis | Senior notes CHF 300 million (5)................................... | |
Senior Notes | $ 308,000,000 | 295,000,000 |
Hedge Accounting Adjustments [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Description Of Variable Rate Basis | Fair value hedge accounting adjustments................... | |
Senior Notes | $ (2,000,000) | (2,000,000) |
Long Credit Agreement 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Description Of Variable Rate Basis | Term loan USD 2.5 billion (6)......................................... | |
Term Loans | $ 285,000,000 | 2,500,000,000 |
Long Credit Agreement 2019 One [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 142.00% | |
Debt Instrument Description Of Variable Rate Basis | Term loan USD 2.5 billion (6)......................................... | |
Term Loans | $ 2,000,000,000 | 2,500,000,000 |
Long Credit Agreement 2017 [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 99.00% | |
Debt Instrument Description Of Variable Rate Basis | Term loan JPY 65 billion (8)............................................ | |
Term Loans | $ 0 | 560,000,000 |
Long Credit Agreement 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Term Loans | $ 311,000,000 | 299,000,000 |
Long Credit Agreement 2019 Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Description Of Variable Rate Basis | Term loan JPY 35 billion................................................. | |
Long Term Debentures 2018 [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 30.00% | |
Debt Instrument Description Of Variable Rate Basis | Term loan JPY 35 billion................................................. | |
Term Loans | $ 311,000,000 | 299,000,000 |
Debentures 2018 [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 720.00% | |
Debt Instrument Description Of Variable Rate Basis | Debentures USD 15 million............................................ | |
Long Term Debentures | $ 15,000,000 | 15,000,000 |
Other Debentures 2026 [Member] | ||
Debt Instrument [Line Items] | ||
The Effective average interest rate of the newly issued notes | 746.00% | |
Debt Instrument Description Of Variable Rate Basis | Other.................................................................................. | |
Long Term Debentures | $ 5,000,000 | 9,000,000 |
Long Credit Agreement 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Description Of Variable Rate Basis | Term loan JPY 58.5 billion (7)......................................... | |
Term Loans | $ 519,000,000 | $ 0 |
DEBT OBLIGATIONS (Details 2)
DEBT OBLIGATIONS (Details 2) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Current Additional Information | ||
Debt Instrument Maturity Date | Jan. 1, 2026 | |
Debt Current | ||
Revolving Credit Facility | $ 0 | $ 1,240,000,000 |
Term loan GBP | 0 | 629,000,000 |
Term loan JPY1 | 0 | 68,000,000 |
Term loan JPY2 | 251,000,000 | 0 |
Bank and financial institutions | 1,000,000 | 15,000,000 |
Principal amount currently outstanding on the debt instruments | 514,000,000 | 514,000,000 |
Current maturities of long term liabilities | 2,880,000,000 | 810,000,000 |
Debt, Current, Total | $ 3,646,000,000 | $ 3,276,000,000 |
Convertible Debt [Member] | ||
Debt Current Additional Information | ||
Weighted average interest rate | 25.00% |
DEBT OBLIGATIONS (Details 3)
DEBT OBLIGATIONS (Details 3) $ in Millions, € in Billions, ¥ in Billions, SFr in Billions | Dec. 31, 2017JPY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016CHF (SFr) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Nov. 30, 2015USD ($) |
Senior Notes And Loans [Line Items] | ||||||||||
Debt Instrument Maturity Date | Jan. 1, 2026 | |||||||||
Line Of Credit Facility | $ 3,000 | $ 4,500 | $ 3,000 | |||||||
Senior Notes | $ 28,367 | $ 27,265 | ||||||||
Fixed Rate Senior Notes | 240.00% | 240.00% | 240.00% | |||||||
Term Loan USD 2 Point 5 B | $ 2,500 | |||||||||
Long Term Debt Currency Portion USD | 6400.00% | 6400.00% | 6400.00% | |||||||
Long Term Debt Currency Portion EUR | 3100.00% | 3100.00% | 3100.00% | |||||||
Long Term Debt Currency Portion CHF | 200.00% | 200.00% | 200.00% | |||||||
Long Term Debt Currency Portion JPY | 300.00% | 300.00% | 300.00% | |||||||
Loan Payment PrePaid1 | $ 250 | |||||||||
Loan Payment PrePaid2 | 170 | |||||||||
Loan Payment Repaid | 80 | |||||||||
Syndicate Of Banks Loan | ¥ | ¥ 86.8 | ¥ 86.8 | ||||||||
Syndicate Of Banks Loan 5 Years | ¥ | 58.5 | 58.5 | ||||||||
Syndicate Of Banks Loan 1 Year | ¥ | ¥ 28.3 | 28.3 | ||||||||
Debt Subject To Covenants | $ 3,700 | |||||||||
Senior Notes Three Point Sixty Five Percent Maturing 2021 [Member] | ||||||||||
Senior Notes And Loans [Line Items] | ||||||||||
Senio Notes Rate | 365.00% | 365.00% | 365.00% | |||||||
JPY [Member] | ||||||||||
Senior Notes And Loans [Line Items] | ||||||||||
Repayments Of Debt | ¥ | ¥ 65.5 | |||||||||
The Effective average interest rate of the newly issued notes | 99.00% | 99.00% | 99.00% | |||||||
Swiss Franc [Member] | ||||||||||
Senior Notes And Loans [Line Items] | ||||||||||
Senior Notes | SFr | SFr 1 | |||||||||
Actavis Generics Acquisition [Member] | ||||||||||
Senior Notes And Loans [Line Items] | ||||||||||
Senior Notes | $ 5,000 | |||||||||
Netherland BV [Member] | ||||||||||
Senior Notes And Loans [Line Items] | ||||||||||
Repayments Of Debt | $ 950 | |||||||||
Senior Notes | € 4 | 15,000 | ||||||||
Senior Notes Until 2021 [Member] | ||||||||||
Senior Notes And Loans [Line Items] | ||||||||||
Senior Notes | 450 | |||||||||
Senior Notes Until 2022 [Member] | ||||||||||
Senior Notes And Loans [Line Items] | ||||||||||
Senior Notes | $ 844 | |||||||||
Senio Notes Rate | 295.00% | 295.00% | 295.00% | |||||||
Senior Notes Until 2023 [Member] | ||||||||||
Senior Notes And Loans [Line Items] | ||||||||||
Senior Notes | $ 500 | |||||||||
Senio Notes Rate | 280.00% | 280.00% | 280.00% | |||||||
Repaid In 2017 [Member] | ||||||||||
Senior Notes And Loans [Line Items] | ||||||||||
Repayments Of Debt | $ 2,200 | |||||||||
Term Loan USD Installments Rate | 1000.00% | 1000.00% | 1000.00% | |||||||
Repaid In 2019 [Member] | ||||||||||
Senior Notes And Loans [Line Items] | ||||||||||
Term Loan USD Installments Rate | 2000.00% | 2000.00% | 2000.00% |
OTHER INCOME (Details 1)
OTHER INCOME (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income [Line Items] | |||
Gains On Divestitures | $ 1,083,000,000 | $ 720,000,000 | $ 45,000,000 |
Gain On Litigation Settlements | 83,000,000 | 20,000,000 | 25,000,000 |
GainOnSaleOfAssets | 11,000,000 | 10,000,000 | 44,000,000 |
Other Income Net | 22,000,000 | 19,000,000 | 52,000,000 |
Other Income | $ 1,199,000,000 | $ 769,000,000 | $ 166,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Products Or Service [Domain] | GSK [Member] | |
Damages Assessment | $ 235.5 |
Teva And Subsidiaries [Member] | |
Approximate number of product liability cases | 4,000 |
Approximate Number Of Plaintiffs Claiming Injuries | 4,400 |
EQUITY (Details)
EQUITY (Details) - USD ($) | Jan. 06, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2011 | Apr. 30, 2016 | Dec. 31, 2014 | Oct. 02, 2014 | Oct. 01, 2014 |
Common stock | |||||||||
Purchase of treasury shares | $ 0 | $ 0 | $ 439,000,000 | ||||||
Treasury Stock Shares Acquired | 0 | 0 | 7,700,000 | ||||||
Stock Repurchase Program, Authorized Amount | $ 2,100,000,000 | $ 1,300,000,000 | $ 3,000,000,000 | $ 1,700,000,000 | |||||
Ordinary shares issuance ADSs | 3,291,000,000 | ||||||||
Proceeds from issuance of mandatory convertible preferred shares, net of issuance costs ADSs | $ 329,000,000 | $ 0 | $ 329,000,000 | $ 3,291,000,000 | |||||
Aggregate Proceeds From Issuance Of Preferred Stock And Preference Stock | $ 3,620,000,000 | ||||||||
Convertible Preferred Stock Terms Of Conversion | 13.3 and 16.0000 | ||||||||
Convertible Preferred Stock Shares Issued Upon Conversion | 337,500 | 3,375,000 | |||||||
Preferred Stock Dividend Rate Per Dollar Amount | $ 1,000 | ||||||||
Share Price | $ 18.95 | $ 62.5 | |||||||
Equivalent Share Units Approval For Grant | 65,000,000 | 43,700,000 | 77,000,000 | ||||||
Adss Offering | 5,400,000 | 54,000,000 | |||||||
Shares Transferred To Allergan | 100,300,000 | ||||||||
Convertible Preferred Shares Rate | 700.00% | ||||||||
Accrued Dividednds Payable | $ 11,000,000 | ||||||||
Dividend Mandatory Convertible Preferred Shares | $ 70 | $ 71.56 | |||||||
Proceeds From Issuance Or Sale Of Equity Ads | $ 3,300,000,000 | ||||||||
Proceeds From Issuance Or Sale Of EquityC onvertible PreferredShares | 3,300,000,000 | ||||||||
Dividend Declared Mandatory Convertible Preferred Shares | $ 17,500,000 | ||||||||
Foreign Currency Translation Attributable To Noncontrolling Interests | $ 63,000,000 | $ 60,000,000 | 1,000,000 | ||||||
Company Average Share Price | $ 25.62 | ||||||||
Shares Outstanding | 1,100,000,000 | ||||||||
Share Increase | 33,300,000 | ||||||||
Equivalent Share Units Forfuture Grants | 99,400,000 | ||||||||
Stock Repurchase Program, Authorized Amount During period | $ 3,000,000,000 | ||||||||
Treasury stock | |||||||||
Treasury stock, value | 439,000,000 | ||||||||
Retained earnings | |||||||||
Dividends declared and paid | $ 0.85 | $ 1.36 | $ 1.36 | ||||||
Other Comprehensive Income (Loss), Net Of Tax [Abstract] | |||||||||
Currency translation adjustment, net of tax | $ (1,316,000,000) | $ (2,769,000,000) | (2,384,000,000) | $ (1,283,000,000) | |||||
Unrealized gain (loss) from available-for-sale securities, net of tax | (4,000,000) | (7,000,000) | 312,000,000 | (7,000,000) | |||||
Unrealized loss from cash flow hedge | (442,000,000) | (302,000,000) | 175,000,000 | 40,000,000 | |||||
Accumulated Other Comprehensive Income Loss Other Adjustments | (91,000,000) | (81,000,000) | (58,000,000) | (93,000,000) | |||||
Comprehensive income attributable to Teva | $ (1,853,000,000) | $ (3,159,000,000) | $ (1,955,000,000) | $ (1,343,000,000) |
EQUITY (Details 1)
EQUITY (Details 1) | 12 Months Ended |
Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingRights | The vesting period of the outstanding options, RSUs and PSUs is generally 1 to 4 years from the date of grant. The rights of the ordinary shares obtained from the exercise of options, RSUs or PSUs 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 | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||||
The total Unrecognized Compensation Cost Before Tax on Employee Stock Rsus | $ 142,000,000 | |||
The total Unrecognized Compensation Cost Before Tax on Employee Stock Options | $ 126,000,000 | |||
Options granted WA fair value | $ 5.7 | $ 9.4 | $ 10.9 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology Abstract | ||||
Dividend yield | 370.00% | 260.00% | 230.00% | |
Expected volatility | 2900.00% | 2500.00% | 2400.00% | |
Risk-free interest rate (in dollar terms) | 210.00% | 140.00% | 180.00% | |
Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1 | 5 years | 5 years | 5 years | |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract | ||||
Closing stock price | $ 36.25 | |||
The total intrinsic value of options exercised during the years | $ 5,000,000 | $ 120,000,000 | ||
Average market price of Teva's ordinary shares during the year | $ 50.96 | $ 61.66 | ||
Stock Options Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||||
Balance outstanding at beginning of year | 32,789,000 | 25,233,000 | 26,733,000 | |
Granted | 15,467,000 | 10,895,000 | 7,655,000 | |
Exercise Of Options By Employees And Vested RSUs, shares | (7,000) | (766,000) | (8,127,000) | |
Forfeited | (4,953,000) | (1,382,000) | (1,028,000) | |
Expired. | (175,000) | (1,191,000) | ||
Balance outstanding at end of year | 43,121,000 | 32,789,000 | 25,233,000 | |
Weighted average exercise price | $ 44.32 | $ 50.71 | $ 49.69 | $ 45.91 |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology Abstract | ||||
Options exercisable at end of year | 19,129,000 | 14,468,000 | 11,299,000 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract | ||||
Weighted average exercise price | $ 47.94 | $ 46.06 | $ 44.67 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested [Roll Forward] | ||||
Granted | 32.08 | 53.21 | 59.82 | |
Vested | 17.44 | 44.24 | 46.88 | |
Forfeited | 47.92 | 54.09 | $ 48.96 | |
Expired | $ 59.81 | $ 52.79 | ||
Employee Service Share Based Compensation Aggregate Disclosures Abstract | ||||
Restricted stock units RSUs | $ 64,000,000 | $ 56,000,000 | $ 62,000,000 | |
Restricted Stock Units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested [Roll Forward] | ||||
RSUs outstanding at beginning of year | 4,636,000 | 2,551,000 | 2,466,000 | |
Granted | 5,461,000 | 3,193,000 | 1,519,000 | |
Vested | (1,884,000) | (830,000) | (1,112,000) | |
Forfeited | (745,000) | (278,000) | (322,000) | |
RSUs outstanding at end of year | 7,468,000 | 4,636,000 | 2,551,000 | |
Weighted-average grant date fair value per share - RSUs at beginning of year | $ 45.15 | $ 51.43 | $ 43.05 | |
Granted | 20.1 | 40.78 | 56.75 | |
Vested | 39.63 | 45.79 | 41.04 | |
Forfeited | 42.84 | 46.08 | 48.27 | |
Weighted-average grant date fair value per share - RSUs at end of year | $ 27.95 | $ 45.15 | $ 51.43 | |
Employee Service Share Based Compensation Aggregate Disclosures Abstract | ||||
Restricted stock units RSUs | $ 69,000,000 | $ 66,000,000 | $ 55,000,000 | |
Omnibus Long Term Share Incentive Plan [Member] | ||||
Employee Service Share Based Compensation Aggregate Disclosures Abstract | ||||
Restricted stock units RSUs | 133,000,000 | 122,000,000 | 117,000,000 | |
Tax effect on stock-based compensation expense | 24,000,000 | 26,000,000 | 19,000,000 | |
Net effect | $ 109,000,000 | $ 96,000,000 | $ 98,000,000 |
EQUITY (Details 3)
EQUITY (Details 3) | Dec. 31, 2017USD ($)$ / sharesshares |
Number of ordinary shares issuable upon exercise of outstanding options | |
Number of shares | shares | 43,121,000 |
Weighted average exercise price | $ / shares | $ 44.32 |
Weighted average remaining life | 7.3 |
Aggregate intrinsic value | $ 7,400,000 |
Number of ordinary shares issuable upon exercise of vested options | |
Number of shares | shares | 19,129,000 |
Weighted average exercise price | $ / shares | $ 47.94 |
Weighted average remaining life | 5.57 |
Exercise Price Range One [Member] | |
Number of ordinary shares issuable upon exercise of outstanding options | |
Number of shares | shares | 592,000 |
Weighted average exercise price | $ / shares | $ 11.4 |
Weighted average remaining life | 9.85 |
Aggregate intrinsic value | $ 4,500,000 |
Number of ordinary shares issuable upon exercise of vested options | |
Number of shares | shares | 3,105,000 |
Weighted average exercise price | $ / shares | $ 59.82 |
Weighted average remaining life | 7.21 |
Aggregate intrinsic value | $ 0 |
Exercise Price Range Two [Member] | |
Number of ordinary shares issuable upon exercise of outstanding options | |
Number of shares | shares | 1,462,000 |
Weighted average exercise price | $ / shares | $ 16.97 |
Weighted average remaining life | 9.7 |
Aggregate intrinsic value | $ 2,900,000 |
Number of ordinary shares issuable upon exercise of vested options | |
Weighted average exercise price | $ / shares | $ 0 |
Weighted average remaining life | 0 |
Exercise Price Range Three [Member] | |
Number of ordinary shares issuable upon exercise of outstanding options | |
Number of shares | shares | 12,018,000 |
Weighted average exercise price | $ / shares | $ 34.63 |
Weighted average remaining life | 9.17 |
Aggregate intrinsic value | $ 0 |
Number of ordinary shares issuable upon exercise of vested options | |
Number of shares | shares | 8,944,000 |
Weighted average exercise price | $ / shares | $ 49.68 |
Weighted average remaining life | 5.82 |
Aggregate intrinsic value | $ 0 |
Exercise Price Range Four [Member] | |
Number of ordinary shares issuable upon exercise of outstanding options | |
Number of shares | shares | 7,281,000 |
Weighted average exercise price | $ / shares | $ 40.49 |
Weighted average remaining life | 4.63 |
Aggregate intrinsic value | $ 0 |
Exercise Price Range Five [Member] | |
Number of ordinary shares issuable upon exercise of outstanding options | |
Number of shares | shares | 14,864,000 |
Weighted average exercise price | $ / shares | $ 50.99 |
Weighted average remaining life | 6.75 |
Aggregate intrinsic value | $ 0 |
Number of ordinary shares issuable upon exercise of vested options | |
Number of shares | shares | 11,000 |
Weighted average exercise price | $ / shares | $ 17.33 |
Weighted average remaining life | 5.23 |
Aggregate intrinsic value | $ 0 |
Exercise Price Range Six [Member] | |
Number of ordinary shares issuable upon exercise of outstanding options | |
Number of shares | shares | 6,891,000 |
Weighted average exercise price | $ / shares | $ 59.42 |
Weighted average remaining life | 7.29 |
Aggregate intrinsic value | $ 0 |
Number of ordinary shares issuable upon exercise of vested options | |
Number of shares | shares | 1,000 |
Weighted average exercise price | $ / shares | $ 25.76 |
Weighted average remaining life | 5.94 |
Aggregate intrinsic value | $ 0 |
Exercise Price Range Seven [Member] | |
Number of ordinary shares issuable upon exercise of outstanding options | |
Number of shares | shares | 13,000 |
Weighted average exercise price | $ / shares | $ 66.67 |
Weighted average remaining life | 3.21 |
Aggregate intrinsic value | $ 0 |
Number of ordinary shares issuable upon exercise of vested options | |
Number of shares | shares | 7,054,000 |
Weighted average exercise price | $ / shares | $ 40.54 |
Weighted average remaining life | 4.53 |
Aggregate intrinsic value | $ 0 |
Exercise Price Range Eight [Member] | |
Number of ordinary shares issuable upon exercise of vested options | |
Number of shares | shares | 14,000 |
Weighted average exercise price | $ / shares | $ 66.67 |
Weighted average remaining life | 3.21 |
Aggregate intrinsic value | $ 0 |
EQUITY (Details 4)
EQUITY (Details 4) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Currency translation adjustment [Abstract] | |||
Other comprehensive income (loss) before reclassifications, currency translation adjustments | $ 1,075,000,000 | $ (355,000,000) | $ (1,131,000,000) |
Amounts reclassified from accumulated other comprehensive loss before tax, currency translation adjustments | 378,000,000 | 3,000,000 | 24,000,000 |
Net other comprehensive income (loss) before tax, currency translation adjustments | 1,453,000,000 | (352,000,000) | (1,107,000,000) |
Income tax related to items of other comprehensive income (loss), currency translation adjustments | 0 | (33,000,000) | 6,000,000 |
Net other comprehensive income (loss) after tax, currency translation adjustment | 1,453,000,000 | (385,000,000) | (1,101,000,000) |
Unrealized gain (loss) from available-for-sale securities | |||
Other comprehensive income (loss) before reclassifications, available-for-sale-securities | 64,000,000 | (456,000,000) | (413,000,000) |
Gains on marketable securities, included in financial expenses - net | (66,000,000) | 140,000,000 | 737,000,000 |
Net other comprehensive income (loss) before tax, available-for-sale-securities | (2,000,000) | (316,000,000) | 324,000,000 |
Income tax related to items of other comprehensive income (loss), available-for-sale-securities | 5,000,000 | (3,000,000) | (5,000,000) |
Net other comprehensive income (loss) after tax, available-for-sale-securities | 3,000,000 | (319,000,000) | 319,000,000 |
Unrealized gain (loss) on derivative financial instruments | |||
Other comprehensive income (loss) before reclassifications, cash flow hedges | (167,000,000) | (491,000,000) | 137,000,000 |
Loss on derivative financial instruments, included in net revenues | 27,000,000 | 14,000,000 | (2,000,000) |
Net other comprehensive income (loss) before tax, cash flow hedges | (140,000,000) | (477,000,000) | 135,000,000 |
Income tax related to items of other comprehensive income (loss), cash flow hedges | 0 | 0 | 0 |
Net other comprehensive income (loss) after tax, cash flow hedges | (140,000,000) | (477,000,000) | 135,000,000 |
Defined benefit plan items | |||
Other comprehensive income (loss) before reclassifications, defined benefit plan | (3,000,000) | (26,000,000) | 33,000,000 |
Loss on defined benefit plans, included in various statement of income items | (5,000,000) | (6,000,000) | 4,000,000 |
Net other comprehensive income (loss) before tax, defined benefit plan | (8,000,000) | (32,000,000) | 37,000,000 |
Income tax related to items of other comprehensive income (loss), defined benefit plan | (2,000,000) | 9,000,000 | (2,000,000) |
Net other comprehensive income (loss) after tax, defined benefit plan | (10,000,000) | (23,000,000) | 35,000,000 |
Other comprehensive income (loss) before reclassifications | 969,000,000 | (1,328,000,000) | (1,374,000,000) |
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | |||
Amounts reclassified from accumulated other comprehensive loss before tax, currency translation adjustments | 378,000,000 | 3,000,000 | 24,000,000 |
Gains on marketable securities, included in financial expenses - net | (66,000,000) | 140,000,000 | 737,000,000 |
Loss on derivative financial instruments, included in net revenues | 27,000,000 | 14,000,000 | (2,000,000) |
Loss on defined benefit plans, included in various statement of income items | (5,000,000) | (6,000,000) | 4,000,000 |
Amounts reclassified from accumulated other comprehensive loss before tax | 334,000,000 | 151,000,000 | 763,000,000 |
Net other comprehensive income (loss) before tax | 1,303,000,000 | (1,177,000,000) | (611,000,000) |
Income tax related to items of other comprehensive income (loss) | 3,000,000 | (27,000,000) | (1,000,000) |
Net other comprehensive income (loss) after tax | $ 1,306,000,000 | $ (1,204,000,000) | $ (612,000,000) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments | ||||||
The Company and its Israeli subsidiaries | $ 1,451,000,000 | $ 1,516,000,000 | $ 1,932,000,000 | |||
Non-Israeli subsidiaries | (19,830,000,000) | (692,000,000) | 420,000,000 | |||
Income (loss) before income taxes | (18,379,000,000) | 824,000,000 | 2,352,000,000 | |||
UTP Due To NOLs ST | $ 26,000,000 | $ 23,000,000 | 26,000,000 | 23,000,000 | ||
Amendment Payment69 | 577,000,000 | 577,000,000 | ||||
Exempt Income | 9,400,000,000 | 9,400,000,000 | ||||
Tax Benefit Related To Tax Cuts And Jobs Act | 1,200,000,000 | |||||
Foreign Subsidiaries Tax Expense Related To Tax Cuts And Jobs Act | 112,000,000 | |||||
Us Tax Cuts And Jobs Act Effect | 1,061,000,000 | |||||
Income Tax Expense Benefit Continuing Operations By Jurisdiction | ||||||
In Israel | 96,000,000 | 209,000,000 | 149,000,000 | |||
Outside Israel | (2,029,000,000) | 312,000,000 | 485,000,000 | |||
Income Tax Expense (Benefit), Total | (1,933,000,000) | 521,000,000 | 634,000,000 | |||
Federal Income Tax Expense Benefit Continuing Operations | ||||||
Current | 373,000,000 | 481,000,000 | 298,000,000 | |||
Deferred Income Tax Expense Benefit | (2,306,000,000) | 40,000,000 | 336,000,000 | |||
Income taxes (Benefit) | $ (1,933,000,000) | $ 521,000,000 | $ 634,000,000 | |||
Effective Income Tax Rate Reconciliation | ||||||
Statutory tax rate in Israel | 24.00% | 25.00% | 26.50% | |||
Long-term deferred tax assets (liabilities)-net: | ||||||
Inventory Related | 40,000,000 | 46,000,000 | $ 40,000,000 | $ 46,000,000 | ||
Sales Reserves And Allowance | 201,000,000 | 311,000,000 | 201,000,000 | 311,000,000 | ||
Provision For Legal Settlements | 171,000,000 | 232,000,000 | 171,000,000 | 232,000,000 | ||
Deferred Tax Liabilities Property Plant And Equipment | (231,000,000) | (312,000,000) | (231,000,000) | (312,000,000) | ||
Intangible assets | (3,132,000,000) | (5,569,000,000) | (3,132,000,000) | (5,569,000,000) | ||
Provisions for employee related obligations, noncurrent | 142,000,000 | 108,000,000 | 142,000,000 | 108,000,000 | ||
Carryforward losses and deductions, noncurrent | 1,485,000,000 | 1,922,000,000 | 1,485,000,000 | 1,922,000,000 | ||
Other | (125,000,000) | (163,000,000) | (125,000,000) | (163,000,000) | ||
Long-term deferred tax assets (liabilities)-gross | (1,199,000,000) | (3,099,000,000) | (1,199,000,000) | (3,099,000,000) | ||
Deferred Tax Assets Valuation Allowance Noncurrent | (1,504,000,000) | (1,689,000,000) | (1,504,000,000) | (1,689,000,000) | ||
Long-term deferred tax assets (liabilities)-net | (2,703,000,000) | (4,788,000,000) | (2,703,000,000) | (4,788,000,000) | ||
Deferred tax assets (liabilities) - net | (2,703,000,000) | (4,788,000,000) | (2,703,000,000) | (4,788,000,000) | ||
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | ||||||
Balance at the beginning of the year | 734,000,000 | 648,000,000 | $ 713,000,000 | |||
Increase related to prior year tax positions, net | 56,000,000 | 23,000,000 | (6,000,000) | |||
Increase related to current year tax positions | 26,000,000 | 71,000,000 | 43,000,000 | |||
Tax assessments settlements | (56,000,000) | (103,000,000) | (99,000,000) | |||
Acquisition | 273,000,000 | 101,000,000 | 0 | |||
Other | 1,000,000 | (6,000,000) | (3,000,000) | |||
Balance at the end of the year | 1,034,000,000 | 734,000,000 | $ 648,000,000 | 1,034,000,000 | 734,000,000 | 648,000,000 |
Future Federal Statutory Tax Rate | ||||||
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense | 29,000,000 | (18,000,000) | 14,000,000 | |||
Balance of accrued potential penalties and interest in unrecognized tax benefits | 112,000,000 | 83,000,000 | 101,000,000 | 112,000,000 | 83,000,000 | 101,000,000 |
Income Tax Contingency [Line Items] | ||||||
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense | $ 29,000,000 | $ (18,000,000) | $ 14,000,000 | |||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||
Income before income taxes | $ (18,379,000,000) | $ 824,000,000 | $ 2,352,000,000 | |||
Statutory tax rate in Israel | 24.00% | 25.00% | 26.50% | |||
Theoretical provision for income taxes | $ (4,411,000,000) | $ 206,000,000 | $ 623,000,000 | |||
Increase (decrease) in effective tax rate due to: | ||||||
IncomeTaxReconciliationChangeInEnactedTaxRate | (253,000,000) | (212,000,000) | (337,000,000) | |||
IncomeTaxReconciliationOtherAdjustments | 0 | 0 | 0 | |||
IncomeTaxReconciliationForeignIncomeTaxRateDifferential | 3,817,000,000 | 546,000,000 | 447,000,000 | |||
IncomeTaxReconciliationTaxContingencies | (25,000,000) | (19,000,000) | (99,000,000) | |||
Income Tax Expense (Benefit), Total | $ (1,933,000,000) | $ 521,000,000 | 634,000,000 | |||
Year 2007 [Member] | ||||||
Future Federal Statutory Tax Rate | ||||||
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) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Tax Carryforwards And Deductions Expiration Period One [Member] | |
Other Tax Carryforward [Line Items] | |
First year in period | Jan. 1, 2018 |
Tax effect of unspecified carryforward losses and deductions | $ 277 |
Tax Carryforwards And Deductions Expiration Period Two [Member] | |
Other Tax Carryforward [Line Items] | |
First year in period | Jan. 1, 2021 |
Tax effect of unspecified carryforward losses and deductions | $ 465 |
Tax Carryforwards And Deductions No Expiration [Member] | |
Other Tax Carryforward [Line Items] | |
Tax effect of unspecified carryforward losses and deductions | 167 |
Tax Carryforwards And Deductions Indefinite [Member] | |
Other Tax Carryforward [Line Items] | |
Tax effect of unspecified carryforward losses and deductions | $ 602 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Taxes By Report [Line Items] | ||
Deferred tax assets (liabilities) - net | $ (2,703) | $ (4,788) |
Other Assets Deferred Taxes And Deferred Charges [Member] | ||
Deferred Taxes By Report [Line Items] | ||
Deferred tax assets (liabilities) - net | 574 | 625 |
Deferred income taxes [Member] | ||
Deferred Taxes By Report [Line Items] | ||
Deferred tax assets (liabilities) - net | $ (3,277) | $ (5,413) |
DERIVATIVE INSTRUMENTS AND HE81
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Settlement Gain Position | $ 41,000,000 | |
Interest Rate Swap Gain | $ 7,000,000 | 2,000,000 |
Revenues Other Than USD | 4400.00% | |
Gain From Currency Swap | $ 13,000,000 | |
Deferred Purchase Asset | 261,000,000 | 220,000,000 |
Proceeds from Accounts Receivable Securitization | 4,944,000,000 | 3,784,000,000 |
Transactions Termination Loss Settled | 242,000,000 | |
Forward Starting Interest Rate Swaps And Treasury Lock AgreementsLosses | 27,000,000 | $ 12,000,000 |
Reclassification To Investment Activities | $ 1,300,000,000 | |
Senior Notes Due 2022 [Member] | ||
Derivative [Line Items] | ||
Previously Hedge Debt Rate | 295.00% | |
Notional Amount Hedge Debt | $ 844,000,000 | |
Senior Notes Due 2021 [Member] | ||
Derivative [Line Items] | ||
Previously Hedge Debt Rate | 365.00% | |
Notional Amount Hedge Debt | $ 450,000,000 | |
Senior Notes Due 2023 Two[Member] | ||
Derivative [Line Items] | ||
Previously Hedge Debt Rate | 280.00% | |
Notional Amount Hedge Debt | $ 500,000,000 |
DERIVATIVE INSTRUMENTS AND HE82
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 1) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Swap [Member] | Other Current Liabilities [Member] | Designated As Hedging Instrument [Member] | Fair Value Hedging [Member] | ||
Derivative Liability, Fair Value, Net [Abstract] | ||
Derivative Fair Value Of Derivative Liability | $ (2,000,000) | $ (2,000,000) |
Swap [Member] | Accounts Payable [Member] | Designated As Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative Asset, Fair Value, Net [Abstract] | ||
Derivative Fair Value Of Derivative Asset | 25,000,000 | 88,000,000 |
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 | 17,000,000 | 10,000,000 |
Foreign Exchange Contract [Member] | Accounts Payable [Member] | Nondesignated [Member] | ||
Derivative Liability, Fair Value, Net [Abstract] | ||
Derivative Fair Value Of Derivative Liability | (15,000,000) | $ (17,000,000) |
Cross Currency Interest Rate Contract [Member] | Accounts Payable [Member] | Designated As Hedging Instrument [Member] | ||
Derivative Liability, Fair Value, Net [Abstract] | ||
Derivative Fair Value Of Derivative Liability | $ (96,000,000) |
DERIVATIVE INSTRUMENTS AND HE83
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) - Financial Expenses Net [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign Exchange Contract [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) recognized in earnings for the period on derivative contracts | $ (82) | $ (7) | $ 26 |
Interst Rate And Cross Currency Swap [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (loss) recognized in earnings for the period on derivative contracts | $ 6 | $ 15 | $ 27 |
DERIVATIVE INSTRUMENTS AND HE84
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 3) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Interest Rate Swap [Member] | Designated As Hedging Instrument [Member] | Fair Value Hedging [Member] | ||||
Derivative [Line Items] | ||||
Derivative Notional Amount | $ 500 | $ 500 | ||
Cross Currency Interest Rate Contract [Member] | Designated As Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Derivative Notional Amount | 588 | 588 | ||
Cross Currency Interest Rate Contract Forecasted Work Plan Exposure [Member] | Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Derivative Notional Amount | $ 500 | $ 500 | ||
Cross Currency Interest Rate Contract Forecasted Work Plan Exposure [Member] | Designated As Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Derivative Notional Amount | $ 1,000 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE85
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 4) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities [Absract] | |||
Sold receivables at the beginning of the year | $ 621,000,000 | $ 445,000,000 | |
Proceeds from sale of receivables | 4,944,000,000 | 3,784,000,000 | |
Cash collections (remitted to the owner of the receivables) | (4,863,000,000) | (3,660,000,000) | |
Effect of currency exchange rate changes | 97,000,000 | 52,000,000 | |
Sold receivables at the end of the year | $ 799,000,000 | 621,000,000 | $ 445,000,000 |
Cash Flow Hedge Of Anticipated Future Debt Issuance | 1,500,000,000 | $ 3,750,000,000 | |
Teva Other Comprehensive Loss | $ 493,000,000 |
FINANCIAL EXPENSES NET (Details
FINANCIAL EXPENSES NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial Expenses Net [Abstract] | |||
Venezuela Devaluation | $ (42) | $ (746) | |
Income from investments | 84 | 51 | $ 34 |
Interest expense and other bank charges | (875) | (546) | (270) |
Losses from hedging transactions in connection with the ratiopharm acquisition | 0 | 0 | 0 |
Foreign exchange (gains) losses - net | (65) | 49 | 9 |
Other Than Temporary Impairment of Securities | 0 | (136) | (631) |
Gain From Interest Rate Swap Transaction | 0 | 0 | |
Other- mainly debt tender offer and termination of related swap agreements | 3 | (2) | (142) |
Financial expenses-net | $ (895) | $ (1,330) | $ (1,000) |
OTHER EXPENSES (Details)
OTHER EXPENSES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impairment [Line Items] | |||
Impairment of intangible assets | $ 3,238,000,000 | $ 589,000,000 | $ 265,000,000 |
Impairment charge during the year on property, plant and equipment | 544,000,000 | 149,000,000 | 96,000,000 |
Business Combination Contingent Consideration Arrangements Change In Amount O fContingent Consideration Liability | 154,000,000 | 83,000,000 | 399,000,000 |
Impairment of long-lived assets | 3,782,000,000 | 746,000,000 | 361,000,000 |
Contingent Consideration | (40,000,000) | ||
Acquisition costs | 105,000,000 | 261,000,000 | 221,000,000 |
Other expenses | 102,000,000 | 84,000,000 | 12,000,000 |
Restructuring | 535,000,000 | 245,000,000 | 183,000,000 |
Total | 5,074,000,000 | 1,419,000,000 | 1,176,000,000 |
Venezuela Deconsolidation Charge | 396,000,000 | 0 | 0 |
Restructuring Plan Cost Reduction | 3,000,000,000 | ||
Estimated Base Costs And Expenses | $ 16,100,000,000 | ||
Positions Reduction | 14,000 | ||
Other Asset Impairments, restructuring and other items | $ 5,074,000,000 | 1,419,000,000 | 1,176,000,000 |
Asset Impairment Charges longlived Assets | 3,800,000,000 | 589,000,000 | 265,000,000 |
Share in profits (losses) of associated companies net | (3,000,000) | 8,000,000 | $ (121,000,000) |
Impairments Restructuring And Others2 | 5,100,000,000 | ||
Identifiable Ipr And D [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 1,600,000,000 | ||
Products Acquired From Actavis [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 838,000,000 | ||
Discontinued Actavis Products [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 390,000,000 | ||
Discontinued Rimsa Projects [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 153,000,000 | ||
Discontinued Specialty Products [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 188,000,000 | ||
Product Rights [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 1,600,000,000 | ||
Actavis Us Product Rights Revaluation [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 583,000,000 | ||
Teva Takeda Product Rights [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 523,000,000 | ||
Actavis Eu And Row Product Rights [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 390,000,000 | ||
Actavis Us Product Rights Termination [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 47,000,000 | ||
Pp And E [Member] | |||
Impairment [Line Items] | |||
Restructuring | 382,000,000 | ||
Pp And E Jerusalem [Member] | |||
Impairment [Line Items] | |||
Restructuring | 156,000,000 | ||
Pp And E Pr Nj And Canada [Member] | |||
Impairment [Line Items] | |||
Restructuring | 144,000,000 | ||
Pp And E Godollo [Member] | |||
Impairment [Line Items] | |||
Restructuring | 69,000,000 | $ 80,000,000 | |
Pp And E Japan [Member] | |||
Impairment [Line Items] | |||
Restructuring | 62,000,000 | ||
Pp And E Raanana [Member] | |||
Impairment [Line Items] | |||
Assets Impairment Charges | 42,000,000 | ||
Expenses Related To Bendeka [Member] | |||
Impairment [Line Items] | |||
Business Combination Contingent Consideration Arrangements Change In Amount O fContingent Consideration Liability | 178,000,000 | ||
Expenses Related To Lama Laba [Member] | |||
Impairment [Line Items] | |||
Business Combination Contingent Consideration Arrangements Change In Amount O fContingent Consideration Liability | $ 89,000,000 |
OTHER EXPENSES (Details 1)
OTHER EXPENSES (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Exit And Disposal Costs [Line Items] | |||
Restructuring Charges | $ 535 | $ 245 | $ 183 |
Utilization And Other | 377 | 207 | |
Restructuring Reserve End Period | (311) | (153) | (115) |
Employee Termination [Member] | |||
Exit And Disposal Costs [Line Items] | |||
Restructuring Charges | (443) | (211) | (183) |
Utilization And Other | 293 | 172 | |
Restructuring Reserve End Period | (294) | (144) | (105) |
Other Exit And Disposal [Member] | |||
Exit And Disposal Costs [Line Items] | |||
Restructuring Charges | (92) | (34) | |
Utilization And Other | 84 | 35 | |
Restructuring Reserve End Period | $ (17) | $ (9) | $ (10) |
LEGAL SETTLEMENTS (Details)
LEGAL SETTLEMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impairment Of Long Lived Assets And Contingent Consideration [Abstract] | |||
Legal Settlements Acquisition And Restructuring And Impairment | $ 500 | $ 899 | $ 631 |
Accrued Amount Legal Sttlement | 1,200 | 1,500 | |
Fcpa Settlements | 519 | ||
Ciprofloxacin Settlement | $ 225 | $ 225 |
SEGMENTS (Details)
SEGMENTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 5,459,000,000 | $ 5,611,000,000 | $ 5,720,000,000 | $ 5,650,000,000 | $ 6,492,000,000 | $ 5,563,000,000 | $ 5,038,000,000 | $ 4,810,000,000 | $ 22,385,000,000 | $ 21,903,000,000 | $ 19,652,000,000 |
Gross profit | $ 2,542,000,000 | $ 2,644,000,000 | $ 2,855,000,000 | $ 2,839,000,000 | $ 3,390,000,000 | $ 2,801,000,000 | $ 2,877,000,000 | $ 2,791,000,000 | 10,825,000,000 | 11,859,000,000 | 11,356,000,000 |
Research and development expenses | 1,848,000,000 | 2,111,000,000 | 1,525,000,000 | ||||||||
Selling and marketing expenses | 3,656,000,000 | 3,860,000,000 | 3,478,000,000 | ||||||||
Segments Profitability | (17,484,000,000) | 2,154,000,000 | 3,352,000,000 | ||||||||
Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segments Profitability | 7,162,000,000 | 7,971,000,000 | 7,286,000,000 | ||||||||
Generics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 12,257,000,000 | 11,990,000,000 | 10,540,000,000 | ||||||||
Gross profit | 5,115,000,000 | 5,696,000,000 | 4,903,000,000 | ||||||||
Research and development expenses | 702,000,000 | 659,000,000 | 519,000,000 | ||||||||
Selling and marketing expenses | 1,584,000,000 | 1,727,000,000 | 1,459,000,000 | ||||||||
Segments Profitability | 2,829,000,000 | 3,310,000,000 | 2,925,000,000 | ||||||||
Specialty [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,914,000,000 | 8,674,000,000 | 8,338,000,000 | ||||||||
Gross profit | 6,877,000,000 | 7,558,000,000 | 7,200,000,000 | ||||||||
Research and development expenses | 884,000,000 | 998,000,000 | 918,000,000 | ||||||||
Selling and marketing expenses | 1,660,000,000 | 1,899,000,000 | 1,921,000,000 | ||||||||
Segments Profitability | $ 4,333,000,000 | $ 4,661,000,000 | $ 4,361,000,000 |
SEGMENTS (Details 1)
SEGMENTS (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segments Profitability | $ (17,484,000,000) | $ 2,154,000,000 | $ 3,352,000,000 |
Amounts not allocated to segments [Abstract] | |||
Depreciation and amortization | 2,112,000,000 | 1,524,000,000 | 1,308,000,000 |
General and administrative expenses | 1,330,000,000 | 1,285,000,000 | 1,360,000,000 |
Impairments Restructuring And Others | 5,074,000,000 | 1,419,000,000 | 1,176,000,000 |
Inventory Step Up | 67,000,000 | 381,000,000 | 0 |
Legal Settlements And Loss Contingencies | 500,000,000 | 899,000,000 | 631,000,000 |
Venezuela Deconsolidation Charge | 396,000,000 | 0 | 0 |
Financial expenses - net | (895,000,000) | (1,330,000,000) | (1,000,000,000) |
Income before income taxes | (18,379,000,000) | 824,000,000 | 2,352,000,000 |
Segments and Other activities [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segments Profitability | 7,248,000,000 | 8,039,000,000 | 7,361,000,000 |
Segments [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segments Profitability | 7,162,000,000 | 7,971,000,000 | 7,286,000,000 |
Generics [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segments Profitability | 2,829,000,000 | 3,310,000,000 | 2,925,000,000 |
Specialty [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segments Profitability | 4,333,000,000 | 4,661,000,000 | 4,361,000,000 |
All Other Segments [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segments Profitability | 86,000,000 | 68,000,000 | 75,000,000 |
Segment Reconciling Items [Member] | |||
Amounts not allocated to segments [Abstract] | |||
Depreciation and amortization | 1,444,000,000 | 993,000,000 | 838,000,000 |
General and administrative expenses | 1,330,000,000 | 1,285,000,000 | 1,360,000,000 |
Impairments Restructuring And Others | 5,074,000,000 | 1,419,000,000 | 1,176,000,000 |
Goodwil Impairments | 17,100,000,000 | 900,000,000 | 0 |
Inventory Step Up | 67,000,000 | 383,000,000 | 0 |
Purchase Of Research And Development In Process | 221,000,000 | 426,000,000 | 69,000,000 |
Costs Related To Regulatory Actions Taken In Facilities | 47,000,000 | 153,000,000 | 36,000,000 |
Legal Settlements And Loss Contingencies | 500,000,000 | 899,000,000 | 631,000,000 |
Gain On Sales Of Bbusiness And Llong Llived Assets | (1,083,000,000) | (720,000,000) | (45,000,000) |
Otehr Unallocated Amounts | $ 32,000,000 | $ 147,000,000 | $ (56,000,000) |
SEGMENTS (Details 2)
SEGMENTS (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | $ 5,459 | $ 5,611 | $ 5,720 | $ 5,650 | $ 6,492 | $ 5,563 | $ 5,038 | $ 4,810 | $ 22,385 | $ 21,903 | $ 19,652 |
Generics [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 12,257 | 11,990 | 10,540 | ||||||||
Branded [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 7,914 | 8,674 | 8,338 | ||||||||
Other Products [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 2,214 | 1,239 | 774 | ||||||||
Us Group One [Member] | Generics [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 5,036 | 4,556 | 4,795 | ||||||||
Us Group One [Member] | Branded [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 5,686 | 6,724 | 6,442 | ||||||||
Us Group One [Member] | Other Products [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 1,251 | 369 | 12 | ||||||||
Europe Group Two [Member] | Generics [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 3,994 | 3,563 | 3,146 | ||||||||
Europe Group Two [Member] | Branded [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 1,780 | 1,598 | 1,518 | ||||||||
Europe Group Two [Member] | Other Products [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 308 | 248 | 226 | ||||||||
Rest Of The World [Member] | Generics [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 3,227 | 3,871 | 2,599 | ||||||||
Rest Of The World [Member] | Branded [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | 448 | 352 | 378 | ||||||||
Rest Of The World [Member] | Other Products [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales by geographic area | $ 655 | $ 622 | $ 536 |
SEGMENTS (Details 3)
SEGMENTS (Details 3) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Product Information [Line Items] | |||||||||||
Net revenues | $ 5,459,000,000 | $ 5,611,000,000 | $ 5,720,000,000 | $ 5,650,000,000 | $ 6,492,000,000 | $ 5,563,000,000 | $ 5,038,000,000 | $ 4,810,000,000 | $ 22,385,000,000 | $ 21,903,000,000 | $ 19,652,000,000 |
Branded CNS [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 4,426,000,000 | 5,283,000,000 | 5,213,000,000 | ||||||||
Branded Respiratory Products [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 1,270,000,000 | 1,274,000,000 | 1,129,000,000 | ||||||||
Branded Womens Health Products [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 426,000,000 | 458,000,000 | 461,000,000 | ||||||||
Branded Oncology Products [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 1,135,000,000 | 1,139,000,000 | 1,201,000,000 | ||||||||
Other Branded Products [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 657,000,000 | 520,000,000 | 334,000,000 | ||||||||
Branded C N S Copaxone [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 3,801,000,000 | 4,223,000,000 | 4,023,000,000 | ||||||||
Branded C N S Azilect [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 170,000,000 | 410,000,000 | 384,000,000 | ||||||||
Branded C N S Nuvigil [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 61,000,000 | 200,000,000 | 373,000,000 | ||||||||
Branded Respiratory Proair [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 501,000,000 | 565,000,000 | 549,000,000 | ||||||||
Branded Respiratory Qvar [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 361,000,000 | 462,000,000 | 392,000,000 | ||||||||
Branded Oncology Treanda and Bendeka [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 658,000,000 | 661,000,000 | 741,000,000 | ||||||||
Branded [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | 7,914,000,000 | $ 8,674,000,000 | $ 8,338,000,000 | ||||||||
Ninlaro1 [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net revenues | $ 150,000,000 |
SEGMENTS (Details 4)
SEGMENTS (Details 4) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property, plant and equipment, net | $ 7,673,000,000 | $ 8,073,000,000 | |
Customer1 [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Third Party Net Sales Present | 1600.00% | 1500.00% | 2000.00% |
Customer2 [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Third Party Net Sales Present | 1500.00% | 1900.00% | 2000.00% |
Israel [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property, plant and equipment, net | $ 2,180,000,000 | $ 2,323,000,000 | |
United States [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property, plant and equipment, net | 1,109,000,000 | 1,135,000,000 | |
Croatia [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property, plant and equipment, net | 561,000,000 | 542,000,000 | |
Hungary [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property, plant and equipment, net | 376,000,000 | 427,000,000 | |
Germany [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property, plant and equipment, net | 423,000,000 | 337,000,000 | |
Japan [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property, plant and equipment, net | 368,000,000 | 422,000,000 | |
Other Countries [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property, plant and equipment, net | $ 2,656,000,000 | $ 2,887,000,000 |
SEGMENTS (Details 5)
SEGMENTS (Details 5) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||
Percentage Of Copaxone Revenues Of Total Non US | 0.00% | ||
Profitability Of MS As A Percentage Of Copaxone Revenues | 8060.00% | 8130.00% | 7670.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Income And Weighted Average Number Of Shares Used In Computation Of Basic And Diluted Earnings Per Share [Abstract] | |||
Net income used for the computation of diluted earnings per share | $ (16,525,000,000) | $ 68,000,000 | $ 1,573,000,000 |
Weighted average number of shares used in the computation of basic earnings per share | 1,016,000,000 | 955,000,000 | 855,000,000 |
Additional shares from the assumed exercise of employee stock options and unvested RSU's | 0 | 3,000,000 | 5,000,000 |
Weighted average number of additional shares issued upon the assumed conversion of convertible senior debentures | 0 | 3,000,000 | 4,000,000 |
Net income attributable to ordinary shareholders | $ (16,525,000,000) | $ 68,000,000 | $ 1,573,000,000 |
Assumed Exercise Of Employees | $ 38,000,000 | $ 4,000,000 | $ 1,000,000 |
Ordinary And Special Shares Outstanding [Abstract] | |||
Weighted Average Of Mandatory Convertible Preferred Shares | 59,000,000 |
SELECTED QUARTERLY FINANCIAL 97
SELECTED QUARTERLY FINANCIAL DATA (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Selected Quarterly Financial Data [Abstract] | |||||||||||
Net revenues | $ 5,459,000,000 | $ 5,611,000,000 | $ 5,720,000,000 | $ 5,650,000,000 | $ 6,492,000,000 | $ 5,563,000,000 | $ 5,038,000,000 | $ 4,810,000,000 | $ 22,385,000,000 | $ 21,903,000,000 | $ 19,652,000,000 |
Gross profit | 2,542,000,000 | 2,644,000,000 | 2,855,000,000 | 2,839,000,000 | 3,390,000,000 | 2,801,000,000 | 2,877,000,000 | 2,791,000,000 | $ 10,825,000,000 | $ 11,859,000,000 | $ 11,356,000,000 |
Net income Qtd | (11,730,000,000) | 610,000,000 | (5,970,000,000) | 641,000,000 | (974,000,000) | 410,000,000 | 242,000,000 | 633,000,000 | |||
Net income attributable to ordinary shareholders Qtd | $ (11,535,000,000) | $ 595,000,000 | $ (5,970,000,000) | $ 645,000,000 | $ (973,000,000) | $ 412,000,000 | $ 254,000,000 | $ 636,000,000 | |||
Earnings per share attributable to ordinary shareholders: | |||||||||||
Basic | $ (11.41) | $ 0.52 | $ (5.94) | $ 0.57 | $ (1.02) | $ 0.35 | $ 0.21 | $ 0.62 | $ (16.26) | $ 0.07 | $ 1.84 |
Diluted | $ (11.41) | $ 0.52 | $ (5.94) | $ 0.57 | $ (1.02) | $ 0.35 | $ 0.2 | $ 0.62 | $ (16.26) | $ 0.07 | $ 1.82 |
Goodwill Impairment | $ 11,000,000,000 | $ 6,100,000,000 | $ 17,100,000,000 | $ 900,000,000 | $ 0 |
SCHEDULE II VALUATION AND QUA98
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance For Doubtful Accounts Current Member | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Charged to costs and expenses | $ 12 | $ 5 | $ 18 | |
Charged to other accounts | 51 | 61 | (6) | |
Deductions | (22) | (21) | (15) | |
ValuationAllowancesAndReservesBalance | 232 | 191 | 146 | $ 149 |
Valuation Allowance Tax Carryforward Losses And Deductions [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Charged to costs and expenses | 173 | 135 | 249 | |
Charged to other accounts | 390 | 1,137 | 1 | |
Deductions | (748) | (342) | (161) | |
ValuationAllowancesAndReservesBalance | $ 1,505 | $ 1,690 | $ 760 | $ 671 |
Uncategorized Items - teva-2017
Label | Element | Value |
Annual Sales Of Lidoderm | teva_AnnualSalesOfLidoderm | $ 1,200,000,000 |
Annual Sales Of Lidoderm | teva_AnnualSalesOfLidoderm | $ 1,400,000,000 |
Arrangement for the Contingent Cessation of Proceedings pursuant to the Israeli Securities Law | teva_ArrangementForTheContingentCessationOfProceedingsPursuantToTheIsraeliSecuritiesLaw | $ 75,000,000 |
Arrangement for the Contingent Cessation of Proceedings pursuant to the Israeli Securities Law | teva_ArrangementForTheContingentCessationOfProceedingsPursuantToTheIsraeliSecuritiesLaw | $ 22,000,000 |
Compensatory Damages For The State of Illonois | teva_CompensatoryDamagesForStateOfIllonois | 100,000,000 |
CINQAIR Plaintiffs Claim Damages | teva_CinqairPlaintiffsClaimDamages | 200,000,000 |
Compensatory Damages And Penalties | teva_CompensatoryDamagesAndPenalties | 12,400,000 |
Annual Sales of Effexor | teva_AnnualSalesOfEffexor | 2,600,000,000 |
Milestone Contingent Payments | teva_MilestoneContingentPayments | 407,000,000 |
Actavis Generics Contingent Consideration | teva_ActavisContingentConsideration | 0 |
Royalty Expense | us-gaap_RoyaltyExpense | 956,000,000 |
Royalty Expense | us-gaap_RoyaltyExpense | 814,000,000 |
Royalty Expense | us-gaap_RoyaltyExpense | 911,000,000 |
Shares Transferred To Takeda As Part Of The Establishment Of Teva Takeda | teva_SharesTransferredToTakeda | 0 |
Nexium Settlement Payment | teva_NexiumSettlementPayment | 24,000,000 |
Annual Sales Of Aggrenox | teva_AnnualSalesOfAggrenox | 340,000,000 |
Annual Sales Of Aggrenox | teva_AnnualSalesOfAggrenox | 455,000,000 |
Annual Sales Of Actos | teva_AnnualSalesOfActos | 3,700,000,000 |
Annual Sales Of Actos | teva_AnnualSalesOfActos | 2,800,000,000 |
Milestones Payable to the Former Shareholders of Ception EUR | teva_MilestonesPayableToTheFormerShareholdersOfCeptionEur | 50,000,000 |
Annual Sales Of Intuniv | teva_AnnualSalesOfIntuniv | 335,000,000 |
Annual Sales Of Intuniv | teva_AnnualSalesOfIntuniv | 327,000,000 |
Operating Leases Future Minimum Payments Due In Four Years | us-gaap_OperatingLeasesFutureMinimumPaymentsDueInFourYears | 73,000,000 |
Opana Net Sales | teva_OpanaNetSales | 299,000,000 |
Annual Sales of Lamictal | teva_AnnualSalesOfLamictal | 950,000,000 |
Annual Sales of Lamictal | teva_AnnualSalesOfLamictal | 2,300,000,000 |
Operating Leases Future Minimum Payments Due Current | us-gaap_OperatingLeasesFutureMinimumPaymentsDueCurrent | 160,000,000 |
Rugby Stettlement | teva_RugbyStettlement | 225,000,000 |
Punitive Damages | teva_PunitiveDamages | 17,900,000 |
Andro Gel Annual Sales | teva_AndroGelAnnualSales | 1,050,000,000 |
Annual Sales Of Actoplus | teva_AnnualSalesOfActoplus | 500,000,000 |
Annual Sales Of Actoplus | teva_AnnualSalesOfActoplus | 430,000,000 |
Shares Issuance To Allergan plc for the Actavis Generics acquisition | teva_SharesIssuedToPurchaseActavisGenerics | 0 |
Annual Sales Of Androgel | teva_AnnualSalesOfAndrogel | $ 140,000,000 |
Modafinil Euro Sales | teva_Modafinileurosales | $ 46,500,000 |
Operating Leases Future Minimum Payments Due In Five Years | us-gaap_OperatingLeasesFutureMinimumPaymentsDueInFiveYears | $ 51,000,000 |
Fcpa Settlement | teva_FcpaSettlement | 519,000,000 |
Annual Sales Of Namebda | teva_AnnualSalesOfNamebda | 1,400,000,000 |
Annual Sales Of Namebda | teva_AnnualSalesOfNamebda | 1,100,000,000 |
Annual Sales Of Androgel At The Time Of Sttlement | teva_AnnualSalesOfAndrogelAtTimeOfSttlement | 350,000,000 |
Annual Sales of Niaspan | teva_AnnualSalesOfNiaspan | 416,000,000 |
Annual Sales of Niaspan | teva_AnnualSalesOfNiaspan | $ 1,100,000,000 |
Max Damages Payable With Janssen And Millenium | teva_MaxDamagesPayableWithJanssenAndMillenium | $ 200,000,000 |
Lease And Rental Expense | us-gaap_LeaseAndRentalExpense | $ 200,000,000 |
Lease And Rental Expense | us-gaap_LeaseAndRentalExpense | 164,000,000 |
Lease And Rental Expense | us-gaap_LeaseAndRentalExpense | 122,000,000 |
Operating Leases Future Minimum Payments Due In Three Years | us-gaap_OperatingLeasesFutureMinimumPaymentsDueInThreeYears | 100,000,000 |
Operating Leases Future Minimum Payments Due In Two Years | us-gaap_OperatingLeasesFutureMinimumPaymentsDueInTwoYears | 132,000,000 |
Modafinil Payment | teva_ModafinilPayment | $ 1,200,000,000 |
Annual Sale of Velcade | teva_AnnualSaleOfVelcade | $ 94,000,000 |
Operating Leases Future Minimum Payments Due Thereafter | us-gaap_OperatingLeasesFutureMinimumPaymentsDueThereafter | $ 75,000,000 |
Milestones Payable to the Former Shareholders of Ception US | teva_MilestonesPayableToTheFormerShareholdersOfCeptionUs | $ 150,000,000 |
Past Employee Stock And Incentived Plans [Member] | ||
Number of equivalent stock units approved for grants under the plan | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized | 70,000,000 |
Number of equivalent stock units approved for grants under the plan | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized | 43,700,000 |