Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 30, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | TEVA | |
Entity Registrant Name | TEVA PHARMACEUTICAL INDUSTRIES LTD | |
Entity Central Index Key | 818,686 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock Shares Outstanding | 1,018,711,443 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,875 | $ 963 |
Trade receivables | 5,665 | 7,128 |
Inventories | 4,866 | 4,924 |
Prepaid expenses | 911 | 1,100 |
Other current assets | 483 | 701 |
Assets held for sale | 81 | 566 |
Total current assets | 13,881 | 15,382 |
Deferred income taxes | 427 | 574 |
Other non-current assets | 722 | 932 |
Property, plant and equipment, net | 7,101 | 7,673 |
Identifiable intangible assets, net | 15,345 | 17,640 |
Goodwill | 27,585 | 28,414 |
Total assets | 65,061 | 70,615 |
Current liabilities: | ||
Short-term debt | 2,673 | 3,646 |
Sales reserves and allowances | 6,701 | 7,881 |
Trade payables | 1,626 | 2,069 |
Employee-related obligations | 712 | 549 |
Accrued expenses | 2,232 | 3,014 |
Other current liabilities | 886 | 724 |
Liabilities held for sale | 38 | |
Total current liabilities | 14,830 | 17,921 |
Long-term liabilities: | ||
Deferred income taxes | 2,478 | 3,277 |
Other taxes and long-term liabilities | 1,803 | 1,843 |
Senior notes and loans | 26,816 | 28,829 |
Total long-term liabilities | 31,097 | 33,949 |
Commitments and contingencies, see note 16 | ||
Total liabilities | 45,927 | 51,870 |
Teva shareholders' equity: | ||
Preferred shares of NIS 0.10 par value per mandatory convertible preferred share; September 30, 2018 and December 31, 2017: authorized 5.0 million shares; issued 3.7 million shares | 3,825 | 3,631 |
Ordinary shares of NIS 0.10 par value per share; September 30, 2018 and December 31, 2017: authorized 2,495 million shares; issued 1,125 million shares and 1,124 million shares, respectively | 54 | 54 |
Additional paid-in capital | 23,404 | 23,479 |
Accumulated deficit | (3,072) | (3,808) |
Accumulated other comprehensive loss | (2,335) | (1,848) |
Treasury shares as of September 30, 2018 and December 31, 2017 - 106 million ordinary shares and 107 million ordinary shares, respectively | (4,146) | (4,149) |
Stockholders' equity attributable to Teva shareholders | 17,730 | 17,359 |
Non-controlling interests | 1,404 | 1,386 |
Total equity | 19,134 | 18,745 |
Total liabilities and equity | $ 65,061 | $ 70,615 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Preferred stock par or stated value per share | ₪ 0.10 | ₪ 0.10 |
Preferred stock shares, authorized | 5,000,000 | 5,000,000 |
Preferred stock shares, issued | 3,700,000 | 3,700,000 |
Common stock, par or stated value per share | ₪ 0.10 | ₪ 0.10 |
Ordinary shares, authorized | 2,495,000,000 | 2,495,000,000 |
Ordinary shares, issued | 1,125,000,000 | 1,124,000,000 |
Treasury shares | 106,000,000 | 107,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net revenues | $ 4,529 | $ 5,617 | $ 14,295 | $ 16,987 |
Cost of sales | 2,508 | 2,967 | 7,865 | 8,643 |
Gross profit | 2,021 | 2,650 | 6,430 | 8,344 |
Research and development expenses | 311 | 531 | 918 | 1,432 |
Selling and marketing expenses | 743 | 843 | 2,224 | 2,745 |
General and administrative expenses | 309 | 372 | 954 | 1,101 |
Other asset impairments, restructuring and other items | 658 | 550 | 2,080 | 1,209 |
Goodwill impairment | 300 | 6,100 | ||
Legal settlements and loss contingencies | 19 | (20) | (1,239) | 324 |
Other income | (35) | (4) | (334) | (100) |
Operating income (loss) | 16 | 378 | 1,527 | (4,467) |
Financial expenses, net | 229 | 259 | 736 | 704 |
Income (loss) before income taxes | (213) | 119 | 791 | (5,171) |
Tax benefits | (26) | (494) | (56) | (462) |
Share in losses of associated companies, net | 10 | 3 | 76 | 10 |
Net income (loss) | (197) | 610 | 771 | (4,719) |
Net income attributable to non-controlling interests | 11 | 15 | 35 | 11 |
Net income (loss) attributable to Teva | (208) | 595 | 736 | (4,730) |
Dividends on preferred shares | 65 | 65 | 195 | 195 |
Net income (loss) attributable to ordinary shareholders | $ (273) | $ 530 | $ 541 | $ (4,925) |
Earnings (loss) per share attributable to ordinary shareholders: | ||||
Basic | $ (0.27) | $ 0.52 | $ 0.53 | $ (4.85) |
Diluted | $ (0.27) | $ 0.52 | $ 0.53 | $ (4.85) |
Weighted average number of shares (in millions): | ||||
Basic | 1,018 | 1,017 | 1,018 | 1,016 |
Diluted | 1,018 | 1,017 | 1,020 | 1,016 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income (loss) | $ (197) | $ 610 | $ 771 | $ (4,719) |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustment | (105) | 264 | (577) | 1,136 |
Unrealized gain (loss) from derivative financial instruments | 19 | (49) | 75 | (118) |
Unrealized gain (loss) from available-for-sale securities | 1 | (17) | 20 | |
Unrealized gain (loss) on defined benefit plans | 1 | 1 | (12) | |
Total other comprehensive income (loss) | (84) | 199 | (502) | 1,026 |
Total comprehensive income (loss) | (281) | 809 | 269 | (3,693) |
Comprehensive income (loss) attributable to non-controlling interests | (26) | 11 | 20 | 75 |
Comprehensive income (loss) attributable to Teva | $ (255) | $ 798 | $ 249 | $ (3,768) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities: | ||
Net income (loss) | $ 771 | $ (4,719) |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||
Net change in operating assets and liabilities | (1,521) | (1,717) |
Depreciation and amortization | 1,460 | 1,584 |
Impairment of long-lived assets | 1,501 | 564 |
Deferred income taxes, net and uncertain tax positions | (650) | (733) |
Goodwill impairment | 300 | 6,100 |
Stock-based compensation | 122 | 106 |
Impairment of equity investment | 103 | |
Research and development in process | 54 | 175 |
Net gain from sale of long-lived assets and investments | (53) | (48) |
Other items | (8) | 9 |
Venezuela impairment of net monetary assets | 45 | |
Net cash provided by operating activities | 2,079 | 1,366 |
Investing activities: | ||
Beneficial interest collected in exchange for securitized trade receivables | 1,372 | 962 |
Proceeds from sales of business, investments and long-lived assets | 880 | 1,607 |
Purchases of property, plant and equipment | (438) | (607) |
Purchases of investments and other assets | (56) | (194) |
Other investing activities | 34 | (277) |
Acquisitions of subsidiaries, net of cash acquired | 43 | |
Net cash provided by investing activities | 1,792 | 1,534 |
Financing activities: | ||
Repayment of senior notes and loans and other long-term liabilities | (6,989) | (1,005) |
Proceeds from senior notes and loans, net of issuance costs | 4,434 | 507 |
Net change in short-term debt | (262) | (1,630) |
Other financing activities | (13) | (69) |
Dividends paid on ordinary shares | (12) | (814) |
Dividends paid on preferred shares | (10) | (195) |
Dividends paid to non-controlling interests | (38) | |
Net cash used in financing activities | (2,852) | (3,244) |
Translation adjustment on cash and cash equivalents | (107) | 36 |
Net change in cash and cash equivalents | 912 | (308) |
Balance of cash and cash equivalents at beginning of period | 963 | 988 |
Balance of cash and cash equivalents at end of period | 1,875 | 680 |
Non-cash financing and investing activities: | ||
Beneficial interest obtained in exchange for securitized trade receivables | $ 1,345 | $ 911 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2018 | |
Basis of presentation | Note 1 – Basis of presentation: The accompanying unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements. In the opinion of management, the financial statements reflect all recurring adjustments necessary to fairly state the financial position and results of operations of Teva. The information included in this Quarterly Report on Form 10-Q 10-K |
Significant accounting policies
Significant accounting policies | 9 Months Ended |
Sep. 30, 2018 | |
Significant accounting policies | Note 2 – Significant accounting policies: Recently adopted accounting pronouncements On January 1, 2018, Teva adopted the new accounting standard ASC 606, Revenue from Contracts with Customers, and all the related amendments (“new revenue standard”) to all contracts using the modified retrospective method. The cumulative effect of initially applying the new revenue standard was immaterial. See note 9 for further discussion. 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 adopted the provisions of this update in the first quarter of 2018. The impact that this new standard has on Teva’s financial statements after adoption will depend on any future modification of share-based compensation. In February 2017, the FASB issued guidance on de-recognition de-recognition 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; contingent 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 interest in securitization transactions; and separately identifiable cash flows and application of predominance principle. The amendments should be applied retrospectively. Teva adopted the provisions of this update in the first quarter of 2018. This resulted in the reclassification of $962 million of beneficial interest in securitization transactions from operating activities to investing activities for the nine month period ended September 30, 2017. In January 2016, the FASB issued guidance which updates certain 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. Teva adopted the provisions of this update in the first quarter of 2018. Following the adoption, the Company recorded a $5 million opening balance reclassification from accumulated other comprehensive loss to retained earnings. See note 10. Recently issued accounting pronouncements, not yet adopted In August 2018, the FASB issued guidance that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use In August 2018, the FASB issued guidance that removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Certain disclosures required by this guidance will need to be applied on a retrospective basis and others on a prospective basis. The guidance will be effective for fiscal years beginning after December 15, 2019, although early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In July 2018, the FASB issued a codification improvement, which does not prescribe any new accounting guidance, but instead provides minor improvements and clarifications to various FASB accounting guidance. Certain updates are applicable immediately while others provide for a transition period until the next fiscal year beginning after December 15, 2018. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In June 2018, the FASB issued guidance which simplifies the accounting for non-employee In February 2018, the FASB issued guidance on the reclassification of certain tax effects from accumulated other comprehensive income. The guidance allows reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. This guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company does not expect that the adoption of this guidance will have a significant impact on its consolidated financial statements. In August 2017, the FASB issued guidance on derivatives and hedging, which expands and refines hedge accounting for both non-financial In June 2016, the FASB issued guidance on financial instruments. 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 guidance 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 clarification and implementation guidance. The guidance will become effective for interim and annual periods beginning on January 1, 2019 (early adoption is permitted). In January 2018, the FASB issued an update that permits an entity to elect an optional transition practical expedient to not evaluate land easements that existed or expired before the entity’s adoption of the new standard and that were not previously accounted for as leases. In July 2018, the FASB issued both codification improvements, which clarify how to apply certain aspects of the new lease standard and an update. The update provided to either adopt at the earliest period presented using a modified retrospective approach, or to continue applying the guidance under the current lease standard in the comparative periods presented in the consolidated financial statements. Companies that elect this option would record a cumulative-effect adjustment to the opening balance of retained earnings on the date of adoption. The Company expects to apply the guidance using the cumulative-effect approach, thereby applying the new guidance at the effective date, without adjusting the comparative periods and, if necessary, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company is performing a comprehensive evaluation of the impact of the adoption of this guidance, which includes assessing the Company’s lease portfolio, implementation of a new enterprise-wide lease management system to meet reporting requirements, assessing the impact to business processes and implementation of internal controls over financial reporting and related disclosure requirements. The Company is working closely with the software system developer, as the timely readiness of the lease software system is critical to ensure an efficient and effective adoption of the standard. Although the Company has not finalized its 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 |
Certain transactions
Certain transactions | 9 Months Ended |
Sep. 30, 2018 | |
Certain transactions | NOTE 3 – Certain transactions: Business acquisitions: 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. 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. 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 for $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 for which Allergan made a one-time Rimsa On March 3, 2016, Teva completed the acquisition 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 on hand. Following the closing of the acquisition, Teva identified issues concerning Rimsa’s pre-acquisition pre-emptive On February 15, 2018, Teva and the Rimsa sellers entered into a settlement agreement and mutual releases on the breach of contract claim for which the sellers made a one-time Assets and Liabilities Held For Sale: Certain Women’s Health and Other Specialty Products On September 17, 2017, Teva entered into a definitive agreement under which CVC Capital Partners Fund VI would 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 OVALEAP ® ® ® ® ® 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 disposed $329 million of goodwill associated with the divested business. On January 31, 2018, Teva completed the sale of the portfolio of products to CVC Capital Partners Fund VI. As a result of these transactions, the Company recognized a net gain on sale of approximately $93 million in the first quarter of 2018 within other income in the consolidated statement of income. The transaction expenses for these divestitures of approximately $2 million were recognized concurrently and included as a reduction to the net gain on sale. The Company determined that the sale of its global women’s health businesses 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 included as held for sale as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 (U.S. $ in millions) Inventories — 39 Property, plant and equipment, net (*) 41 16 Identifiable intangible assets, net — 236 Goodwill (*) 40 275 Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 81 $ 566 Other taxes and long-term liabilities — 38 Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets $ — $ 38 (*) Mainly comprised of certain facilities in Israel. 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 costs or business risks. The Company’s most significant agreements of this nature are summarized below. PGT Healthcare Partnership In April 2018, Teva signed a separation agreement with the Procter & Gamble Company (“P&G”) to terminate Teva’s joint venture with P&G, PGT Healthcare partnership (“PGT”) which the two companies established in 2011 to market over-the-counter The separation became effective on July 1, 2018. As part of the separation, Teva transferred to P&G the shares it held in New Chapter Inc. and ownership rights in an OTC plant located in India. Teva will continue to provide certain services to P&G after the separation for a transition period. During the first quarter of 2018, Teva classified the plant in India as an asset held for sale and recorded an impairment of $64 million under other asset impairments, restructuring and other items. In addition, Teva recorded a write-down of $94 million of its investment in New Chapter Inc. under share in losses of associated companies. During September 2018, Teva and P&G completed the final net asset distribution as part of the dissolution and Teva recorded a gain of $50 million to reflect the cash payment received from P&G to settle the dissolution. Alder BioPharmaceuticals On January 8, 2018, Teva signed a global license agreement with Alder BioPharmaceuticals (“Alder”). The agreement validates Teva’s IP and resolves Alder’s opposition to Teva’s European patent with respect to anti-calcitonin gene-related peptide (CGRP) antibodies, including the withdrawal of Alder’s appeal before the European Patent Office. Under the terms of the agreement, Alder will receive a non-exclusive 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 commercialization. Upon and subject to FDA approval of AUSTEDO for the treatment of Tourette syndrome, Teva will pay Nuvelution a pre-agreed 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 commercialize 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 achievement of certain revenue targets. Otsuka will also pay Teva royalties on fremanezumab sales in Japan. Attenukine TM In December 2016, Teva entered into a license agreement for research, development, manufacture and commercializing of Attenukine TM Ninlaro ® In November 2016, Teva entered into an agreement to sell its royalties and other rights in Ninlaro ® ® Celltrion 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 to $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 to this product, as well as ongoing associated R&D costs of approximately $1 billion. Teva made an upfront payment of $250 million to Regeneron in the third quarter of 2016 as part of the agreement. Milestone payments of $25 million and $35 million were paid in the second quarter of 2017 and the first quarter of 2018, respectively, and a provision of $60 million was recorded in the third quarter of 2018. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventories | NOTE 4 – Inventories: Inventories, net of reserves, consisted of the following: September 30, December 31, (U.S. $ in millions) Finished products $ 2,679 $ 2,689 Raw and packaging materials 1,395 1,454 Products in process 609 597 Materials in transit and payments on account 183 184 $ 4,866 $ 4,924 |
Property, plant and equipment
Property, plant and equipment | 9 Months Ended |
Sep. 30, 2018 | |
Property, plant and equipment | NOTE 5 – Property, plant and equipment: Property, plant and equipment, net, consisted of the following: September 30, December 31, (U.S. $ in millions) Machinery and equipment $ 5,783 $ 5,809 Buildings 3,179 3,329 Computer equipment and other assets 2,115 2,016 Payments on account 538 634 Land (1) 361 390 11,976 12,178 Less—accumulated depreciation 4,875 4,505 $ 7,101 $ 7,673 (1) Land includes long-term leasehold rights in various locations, with useful lives between 30 and 99 years. |
Identifiable intangible assets
Identifiable intangible assets | 9 Months Ended |
Sep. 30, 2018 | |
Identifiable intangible assets | NOTE 6 – Identifiable intangible assets: Identifiable intangible assets consisted of the following: Gross carrying amount net of Accumulated amortization Net carrying amount September 30, December 31, September 30, December 31, September 30, December 31, 2018 2017 2018 2017 2018 2017 (U.S. $ in millions) Product rights $ 21,094 $ 21,011 $ 9,132 $ 8,276 $ 11,962 $ 12,735 Trade names 610 617 82 55 528 562 Research and development in process 2,855 4,343 — — 2,855 4,343 Total $ 24,559 $ 25,971 $ 9,214 $ 8,331 $ 15,345 $ 17,640 Product rights and trade names are assets presented at amortized cost. These assets represent a portfolio of pharmaceutical products from various categories with a weighted average amortization life of approximately 11 years. Amortization of intangible assets was $297 million and $357 million for the three months ended September 30, 2018 and 2017, respectively and $909 million and $1,088 million for the nine months ended September 30, 2018 and 2017, respectively. Amortization is recorded under cost of sales or S&M expenses, depending on the nature of the asset. The fair value of acquired identifiable intangible assets is generally determined using an income approach. This method starts with a forecast of all expected future net cash flows associated with the asset and then adjusts the forecast to present value by applying an appropriate discount rate that reflects the risk factors associated with the cash flow streams. 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 then calculates, if required, the discounted value of cash flow by applying an appropriate discount rate to the undiscounted cash flow streams. Teva then 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 carrying value over fair value based on the discounted cash flows. 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 cost to sell projections, R&D 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 factored into the fair value measure. Impairment of identifiable intangible assets of $519 million and $355 million for the three months ended September 30, 2018 and 2017, respectively and $1,246 million and $409 million for the nine months ended September 30, 2018 and 2017, respectively. Impairments of identifiable intangible assets are recorded in earnings under other asset impairments, restructuring and other items. See note 14. Additional reductions to IPR&D intangibles relate to reclassification to product rights following regulatory approvals of generic products and impairments of assets due to development status, changes in projected launch date or changes in commercial projections related to products under development. In the first nine months of 2018, Teva reclassified approximately $553 million relating to certain products from IPR&D to product rights following regulatory approval, mainly $444 million in connection with AJOVY (fremanezumab) and $103 million in connection with mesalamine. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill | NOTE 7 – Goodwill: The changes in the carrying amount of goodwill for the period ended September 30, 2018 were as follows: Generics Specialty Other Total North Europe International Other Total (U.S. $ in millions) (U.S. $ in millions) Balance as of December 31, (1) $ 18,864 $ 8,464 $ 1,086 $ 28,414 $ — $ — $ — $ — $ — Relative fair value allocation (18,864 ) (8,464 ) (1,086 ) (28,414 ) 11,144 9,001 5,404 2,865 28,414 Balance as of January — — — — 11,144 9,001 5,404 2,865 28,414 Goodwill impairment (3) — — — — — — (300 ) — (300 ) Goodwill disposal (2) — — — — — (65 ) (14 ) — (79 ) Goodwill reclassified as assets to held for — — — — — — — (40 ) (40 ) Translation differences — — — — (21 ) (338 ) (50 ) (1 ) (410 ) Balance as of September (1) $ — $ — $ — $ — $ 11,123 $ 8,598 $ 5,040 $ 2,824 $ 27,585 (1) Accumulated goodwill impairment as of September 30, 2018 and December 31, 2017 was approximately $18.3 billion and $18.0 billion, respectively. (2) Due to the divestment of the women’s health business, the sale of Actavis Brazil and other activity. (3) Due to the goodwill impairment related to the Rimsa and/or Mexico reporting unit. In November 2017, Teva announced a new organizational structure and leadership changes to enable strategic alignment across its portfolios, regions and functions. Teva now operates its business through three segments: North America, Europe and International Markets. The purpose of the new structure is to enable stronger alignment and integration between operations, commercial regions, R&D and Teva’s global marketing and portfolio function, in order to optimize its product lifecycle across the therapeutic areas. Teva began reporting its financial results under this structure in the first quarter of 2018. In addition to these three segments, Teva has other activities, primarily the sale of active pharmaceutical ingredients (“API”) to third parties and certain contract manufacturing services. See note 17. Following the announcement of its new organizational structure and leadership changes in November 2017, Teva conducted an analysis of its business segments, which led to changes in Teva’s identified reporting units, operating and reporting segments. As a result, on January 1, 2018, Teva reallocated its goodwill to the adjusted reporting units using a relative fair value allocation. In conjunction with the goodwill reallocation, Teva performed a goodwill impairment test for the balances in its adjusted reporting units, utilizing the same annual operating plan (“AOP”) and long range plan model that were used in its 2017 annual impairment test; the Company concluded that the fair value of each reporting unit was in excess of its carrying value. During the first quarter of 2018, Teva identified an increase in certain components of the weighted average cost of capital (“WACC”), such as an increase in the risk free interest and the unlevered beta. The Company addressed these changes in rates as an indication for impairment and performed an additional impairment test as of March 31, 2018. Based on its revised analysis, Teva recorded a goodwill impairment of $180 million related to its Rimsa reporting unit in the first quarter of 2018. The remaining goodwill allocated to this reporting unit was $706 million as of March 31, 2018. This impairment was driven by the change in fair value, including the discount rate updated for the WACC change noted above, and the change in allocated net assets to the reporting unit. See note 3. In the second quarter of 2018, the Company completed its long-range planning (“LRP”) process. The LRP is part of Teva’s internal financial planning and budgeting processes and is discussed and reviewed by Teva’s management and its board of directors. Certain events and changes in circumstances, reflected in the LRP, indicated that it was more likely than not that the carrying value of certain reporting units exceeded their fair value: • Historically, Rimsa had been carved out as a separate reporting unit due to the significant operational challenges. Teva wanted to ensure that any impairment related to Rimsa would be recorded, by separating it from the International Markets reporting unit. During the second quarter of 2018, Rimsa and Teva Mexico substantially completed the integration process and as a result Teva decided to utilize the combined Mexico reporting unit for goodwill impairment testing, as opposed to “Rimsa only” in prior periods. • Following the integration, and although the remediation plan is progressing in connection with Rimsa legacy products, Teva estimates that the recovery time will be longer than initially planned, specifically in connection with the time to regain lost market share. As a result, the Company recorded an additional goodwill impairment charge of $120 million related to its Mexico reporting unit in the second quarter of 2018. • Additionally, the Company identified further developments with respect to legislation proposed by the Russian Ministry of Health. The draft legislation includes, among other items, amendments in the mechanism of regulating prices for vital and essential medicines. The suggested amendments triggered a public discussion between authorities and pharmaceutical companies, which ended in the second quarter of 2018, followed by an internal discussion by the relevant authorities. The estimated impact of developments and uncertainties with respect to the final legislation in Russia were reflected in the LRP and triggered an impairment test for the International Markets reporting unit and related intangible assets, significantly decreasing the difference between the estimated fair value and estimated carrying value of the reporting unit, from 6% to 2%; however no impairment was recorded. • After assessing the totality of relevant events and circumstances, Teva determined that, as of the second quarter of 2018, it is not more likely than not that the fair value of its remaining reporting units is less than their carrying amount. In light of the integration and the progress toward operational remediation in Rimsa as discussed above, Teva concluded that commencing July 1, 2018, it would no longer view Mexico separately from the International Markets reporting unit and accordingly will no longer perform impairment testing on Mexico as a separate reporting unit. During the third quarter of 2018, Teva identified an increase in the risk free interest rate, which caused an increase in WACC. In addition, certain currencies in countries included in Teva’s International Markets reporting unit experienced significant devaluations. Teva addressed these events as an indication for impairment and performed an additional impairment test for the International Markets and Europe reporting units as of September 30, 2018. Teva assumed that the currency devaluations would cause price increases of its imported goods to those countries which would not be completely offset by corresponding price adjustments to the selling price of Teva’s goods. These changes decreased the difference between the estimated fair value and estimated carrying value of the International Markets reporting unit from 2% to 1% and of the Europe reporting unit from 6% to 4%, however, no impairment charge was recorded for either reporting unit. In the third quarter of 2018, the fair value exceeded the estimated carrying value by 36% and 43% for North America and Other reporting units, respectively. Based on current macro-economic developments and capital markets assumptions and holding all other assumptions constant, an increase in the risk free interest rate of 0.5% would result in an increase to Teva’s WACC by approximately the same amount and consequently in a change in fair value of the International Markets reporting unit of $653 million, resulting in an impairment of $605 million. In addition, the same change in the Europe reporting unit would result in a change in fair value of $871 million, resulting in an impairment of $243 million. Teva determines the fair value of its reporting units using a weighting of fair values derived from the income approach. The income approach is a forward-looking approach for estimating fair value and utilizes the 2018 remaining year forecast, projections for growth off that base with an associated price erosion, as well as terminal growth rate. Within the income approach, the method that was used is the discounted cash flow method. Teva started with a forecast of all the expected net cash flows associated with the reporting unit, which includes 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 margins, taking into consideration industry and market conditions. The discount rate used is based on the WACC, adjusted for the relevant risk associated with country-specific characteristics. If any of these expectations were to vary materially from Teva’s assumptions, Teva could face impairment of goodwill allocated to these reporting units in the future. |
Earnings (Loss) per share
Earnings (Loss) per share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings (Loss) per share | NOTE 8 – Earnings (Loss) per share: Basic earnings and loss per share are computed by dividing net results attributable to Teva’s ordinary shareholders by the weighted average number of ordinary shares outstanding (including fully vested restricted share units (“RSUs”)) during the period, net of treasury shares. In computing the diluted loss per share for the three months ended September 30, 2018, no account was taken of the potential dilution by the assumed exercise of employee stock options and non-vested non-vested Additionally, no account was taken of the potential dilution by the mandatory convertible preferred shares, amounting to 66 million (including shares that may be issued due to unpaid dividends to date) for the three months ended September 30, 2018 and 59 million for the three months ended September 30, 2017, as well as for the convertible senior debentures for the respective periods, since both had an anti-dilutive effect on earnings (loss) per share. Diluted earnings per share for the nine months ended September 30, 2018 take into account the potential dilution that could occur upon the exercise of options and non-vested non-vested Additionally, no account was taken of the potential dilution by the mandatory convertible preferred shares, amounting to 68 million (including shares that may be issued due to unpaid dividends to date) for the nine months ended September 30, 2018 and 59 million for the nine months ended September 30, 2017, as well as for the convertible senior debentures for the respective periods, since both had an anti-dilutive effect on earnings (loss) per share. |
Revenue from contracts with cus
Revenue from contracts with customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from contracts with customers | NOTE 9 – Revenue from contracts with customers: On January 1, 2018, Teva adopted the new revenue standard to all contracts using the modified retrospective method. The cumulative effect of initially applying the new revenue standard was immaterial. Revenue recognition prior to the adoption of the new revenue standard Please refer to note 1 to the consolidated financial statements and critical accounting policies included in Teva’s Annual Report on Form 10-K Revenue recognition following the adoption of the new revenue standard A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes. The amount of consideration to which Teva expects to be entitled varies as a result of rebates, chargebacks, returns and other sales reserve and allowances (“SR&A”) the Company offers its customers and their customers, as well as the occurrence or nonoccurrence of future events, including milestone events. A minimum amount of variable consideration is recorded concurrently with the satisfaction of performance obligations to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimates of variable consideration are based on historical experience and the specific terms in the individual agreements (which the Company believes approximates expected value). Rebates and chargebacks are the largest components of SR&A. For further description of SR&A components and how they are estimated, see “Variable Consideration” below. Shipping and handling costs after control over a product has transferred to a customer are accounted for as a fulfillment cost and are recorded under S&M expenses. Teva does not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms to customers are in average between thirty and ninety days. The Company generally recognizes the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The costs are recorded under S&M expenses. Similarly, Teva does not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less. Disaggregation of revenue The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues see note 17. Three months ended September 30, 2018 North America Europe International Other activities Total (U.S. $ in millions) Sale of goods 1,902 1,210 525 166 3,803 Licensing arrangements 29 1 — 2 32 Distribution 333 1 149 — 483 Other 1 — 52 158 211 $ 2,265 $ 1,212 $ 726 $ 326 $ 4,529 Three months ended September 30, 2017 North America Europe International Other activities Total (U.S. $ in millions) Sale of goods 2,724 1,321 672 168 4,885 Licensing arrangements 25 — 1 1 27 Distribution 294 59 146 — 499 Other — — 63 143 206 $ 3,043 $ 1,380 $ 882 $ 312 $ 5,617 Nine months ended September 30, 2018 North America Europe International Other activities Total (U.S. $ in millions) Sale of goods 5,983 3,956 1,617 526 12,082 Licensing arrangements 91 19 21 6 137 Distribution 984 7 456 — 1,447 Other 1 — 171 457 629 $ 7,059 $ 3,982 $ 2,265 $ 989 $ 14,295 Nine months ended September 30, 2017 North America Europe International Other activities Total (U.S. $ in millions) Sale of goods 8,338 3,848 1,862 567 14,615 Licensing arrangements 249 2 36 4 291 Distribution 864 166 406 — 1,436 Other 1 — 181 463 645 $ 9,452 $ 4,016 $ 2,485 $ 1,034 $ 16,987 Nature of revenue streams Revenue from sales of goods, including sales to distributors is recognized when the customer obtains control of the product. This generally occurs when products are shipped once the Company has a present right to payment and legal title, and risk and rewards of ownership are obtained by the customer. Licensing arrangements performance obligations generally include intellectual property (“IP”) rights, certain R&D and contract manufacturing services. The Company accounts for IP rights and services separately if they are distinct – i.e. if they are separately identifiable from other items in the arrangement and if the customer can benefit from them on their own or with other resources that are readily available to the customer. The consideration is allocated between IP rights and services based on their relative stand-alone selling prices. Revenue for distinct IP rights is accounted for based on the nature of the promise to grant the license. In determining whether the Company’s promise is to provide a right to access its IP or a right to use its IP, the Company considers the nature of the IP to which the customer will have rights. IP is either functional IP which has significant standalone functionality or symbolic IP which does not have significant standalone functionality. Revenue from functional IP is recognized at the point in time when control of the distinct license is transferred to the customer, when the Company has a present right to payment and risks and rewards of ownership are transferred to the customer. Revenue from symbolic IP is recognized over the access period to the Company’s IP. Revenue from sales based milestones and royalties promised in exchange for a license of IP is recognized only when, or as, the later of subsequent sale or the performance obligation to which some or all of the sales-based royalty has been allocated, is satisfied. Revenues from licensing arrangements included royalty income of $31 million and $27 million for the three months ended September 30, 2018 and 2017, respectively. Revenues from licensing arrangements included royalty income of $82 million and $239 million for the nine months ended September 30, 2018 and 2017, respectively. The amounts recognized in 2017 include royalty income resulting from the Ninlaro ® Distribution revenues are derived from sales of third-party products for which the Company acts as distributor, mostly in the United States via Anda and in Israel. The Company is the principal in these arrangements and therefore records revenue on a gross basis as it controls the promised goods before transferring these goods to the customer. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title, and risk and rewards of ownership are obtained by the customer. Other revenues are primarily comprised of contract manufacturing services, sales of medical devices, and other miscellaneous items. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer. Contract assets and liabilities Contract assets are mainly comprised of trade receivables net of allowance for doubtful debts, which includes amounts billed and currently due from customers. Contract liabilities are mainly comprised of deferred revenues which were immaterial as of September 30, 2018 and December 31, 2017, respectively. Variable consideration Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables. The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated: Rebates Rebates are primarily related to volume incentives and are offered to key customers to promote loyalty. These rebate programs provide that, upon the attainment of pre-established Medicaid and Other Governmental Rebates Pharmaceutical manufacturers whose products are covered by the Medicaid program are required to provide a rebate to each state as a percentage of their average manufacturer’s price for the products dispensed. Many states have also implemented supplemental rebate programs that obligate manufacturers to pay rebates in excess of those required under federal law. The Company estimates these rebates based on historical trends of rebates paid, as well as on changes in wholesaler inventory levels and increases or decreases in sales. Chargebacks The Company has arrangements with various third parties, such as managed care organizations and drug store chains, establishing prices for certain of Teva’s products. While these arrangements are made between the Company and the customers, the customers independently select a wholesaler from which they purchase the products. Alternatively, certain wholesalers may enter into agreements with the customers, with Teva’s concurrence, which establish the pricing for certain products which the wholesalers provide. Under either arrangement, Teva will issue a credit (referred to as a “chargeback”) to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract price. Provisions for chargebacks involve estimates of contract prices of over 2,000 products and multiple contracts with multiple wholesalers. The provision for chargebacks varies in relation to changes in product mix, pricing and the level of inventory at the wholesalers and therefore will not necessarily fluctuate in proportion to an increase or decrease in sales. Provisions for estimating chargebacks are calculated using historical chargeback experience and/or expected chargeback levels for new products and anticipated pricing changes. Teva considers current and expected price competition when evaluating the provision for chargebacks. Chargeback provisions are compared to externally obtained distribution channel reports for reasonableness. The Company regularly monitors the provision for chargebacks and makes adjustments when the Company believes that actual chargebacks may differ from estimated provisions. Other Promotional Arrangements Other promotional or incentive arrangements are periodically offered to customers, specifically related to the launch of products or other targeted promotions. Provisions are made in the period for which the Company can estimate the incentive earned by the customer, in accordance with the contractual terms. The Company regularly monitors the provision for other promotional arrangements and makes adjustments when Teva believes that the actual provision may differ from the estimated provisions. Shelf Stock Adjustments The custom in the pharmaceutical industry is generally to grant customers a shelf stock adjustment based on the customers’ existing inventory contemporaneously with decreases in the market price of the related product. The most significant of these relate to products for which an exclusive or semi-exclusive period exists. Provisions for price reductions depend on future events, including price competition, new competitive launches and the level of customer inventories at the time of the price decline. Teva regularly monitors the competitive factors that influence the pricing of its products and customer inventory levels and adjust these estimates where appropriate. Returns Returns primarily relate to customer returns of expired products which, the customer has the right to return up to one year following the expiration date. Such returned products are destroyed and credits and/or refunds are issued to the customer for the value of the returns. Accordingly, no returned assets are recoded in connection with those products. The returns provision is estimated by applying a historical return rate to the amounts of revenue estimated to be subject to returns. Revenue subject to returns is estimated based on the lag time from time of sale to date of return. The estimated lag time is developed by analyzing historical experience. Additionally, The Company considers specific factors, such as levels of inventory in the distribution channel, product dating and expiration, size and maturity of launch, entrance of new competitors, changes in formularies or packaging and any changes to customer terms, for determining the overall expected levels of returns. Prompt Pay Discounts Prompt pay discounts are offered to most customers to encourage timely payment. Discounts are estimated at the time of invoice based on historical discounts in relation to sales. Prompt pay discounts are almost always utilized by customers. As a result, the actual discounts do not vary significantly from the estimated amount. SR&A to U.S. customers comprised approximately 84% of the Company’s total SR&A as of September 30, 2018, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the period ended September 30, 2018 were as follows: Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S.$ in millions) Balance at December 31, 2017 $ 196 $ 3,077 $ 1,908 $ 1,849 $ 780 $ 267 $ 7,881 $ 8,077 Provisions related to sales made in current year period 380 4,956 931 7,738 232 309 14,166 14,546 Provisions related to sales made in prior periods 7 (39 ) 17 3 21 (19 ) (17 ) (10 ) Credits and payments (412 ) (5,082 ) (1,288 ) (8,203 ) (364 ) (354 ) (15,291 ) (15,703 ) Translation differences — (20 ) (4 ) (3 ) (4 ) (7 ) (38 ) (38 ) Balance at September 30, 2018 $ 171 2,892 $ 1,564 $ 1,384 $ 665 $ 196 $ 6,701 $ 6,872 |
Accumulated other comprehensive
Accumulated other comprehensive loss | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated other comprehensive loss | NOTE 10 – Accumulated other comprehensive loss: The components of, and changes within, accumulated other comprehensive losses attributable to Teva are presented in the table below: Net Unrealized Gains/(Losses) Benefit Plans Foreign Available-for- Derivative Actuarial Total (U.S.$ in millions) Balance as of December 31, 2017 * $ (1,316 ) $ 1 $ (442 ) $ (91 ) $ (1,848 ) Other comprehensive income (loss) before reclassifications (562 ) — 54 — (508 ) Amounts reclassified to the statements of income — 21 2 23 Net other comprehensive income (loss) before tax (562 ) — 75 2 (485 ) Corresponding income tax — — — (2 ) (2 ) Net other comprehensive income (loss) after tax ** (562 ) — 75 — (487 ) Balance as of September 30, 2018 $ (1,878 ) $ 1 $ (367 ) $ (91 ) $ (2,335 ) * Following the adoption of ASU 2016-01, ** Amounts do not include a $15 million gain from foreign currency translation adjustments attributable to non-controlling Net Unrealized Gains/(Losses) Benefit Plans Foreign Available-for- Derivative Actuarial Total (U.S.$ in millions) Balance, December 31, 2016 $ (2,769 ) $ (7 ) $ (302 ) $ (81 ) $ (3,159 ) Other comprehensive income (loss) before reclassifications 1,124 56 (138 ) (9 ) 1,033 Amounts reclassified to the statements of income (52 ) (41 ) 20 2 (71 ) Net other comprehensive income (loss) before tax 1,072 15 (118 ) (7 ) 962 Corresponding income tax — 5 — (5 ) — Net other comprehensive income (loss) after tax * 1,072 20 (118 ) (12 ) 962 Balance, September 30, 2017 $ (1,697 ) $ 13 $ (420 ) $ (93 ) $ (2,197 ) * Amounts do not include a $64 million gain from foreign currency translation adjustments attributable to non-controlling |
Debt obligations
Debt obligations | 9 Months Ended |
Sep. 30, 2018 | |
Debt obligations | NOTE 11 – Debt obligations: Short-term debt: Weighted average interest rate as of Maturity September 30, December 31, (U.S. $ in millions) Term loan JPY 28.3 billion (5) JPY LIBOR+0.25% 2018 $ — $ 251 Convertible debentures 0.25% 2026 * 514 514 Other 9.37% 2018 1 1 Current maturities of long-term liabilities 2,158 2,880 Total short term debt $ 2,673 $ 3,646 * Net-share Senior notes and loans: Weighted average interest Maturity September 30, December 31, % (U.S. $ in millions) Senior notes EUR 1,660 million (8) 0.38% 2020 $ 1,924 $ 2,095 Senior notes EUR 1,500 million 1.13% 2024 1,731 1,788 Senior notes EUR 1,300 million 1.25% 2023 1,501 1,550 Senior notes EUR 1,000 million (3) 2.88% 2019 — 1,199 Senior notes EUR 900 million (1) 4.50% 2025 1,045 — Senior notes EUR 750 million 1.63% 2028 863 891 Senior notes EUR 700 million (1) 3.25% 2022 812 — Senior notes EUR 700 million 1.88% 2027 810 837 Senior notes USD 3,500 million 3.15% 2026 3,493 3,492 Senior notes USD 3,000 million 2.20% 2021 2,997 2,996 Senior notes USD 3,000 million 2.80% 2023 2,993 2,992 Senior notes USD 1,700 million (8) 1.70% 2019 1,700 2,000 Senior notes USD 2,000 million 4.10% 2046 1,984 1,984 Senior notes USD 1,500 million (3) 1.40% 2018 — 1,500 Senior notes USD 1,250 million (2) 6.00% 2024 1,250 — Senior notes USD 1,250 million (2) 6.75% 2028 1,250 — Senior notes USD 844 million 2.95% 2022 862 864 Senior notes USD 789 million 6.15% 2036 782 781 Senior notes USD 700 million 2.25% 2020 700 700 Senior notes USD 613 million 3.65% 2021 622 624 Senior notes USD 588 million 3.65% 2021 587 587 Senior notes CHF 450 million 1.50% 2018 458 461 Senior notes CHF 350 million 0.50% 2022 357 360 Senior notes CHF 350 million 1.00% 2025 357 360 Senior notes CHF 300 million (9) 0.13% 2018 — 308 Fair value hedge accounting adjustments (24 ) (2 ) Total senior notes 29,054 28,367 Term loan USD 2.5 billion (4) LIBOR +1.1375% 2018 — 285 Term loan USD 2.5 billion (4) LIBOR +1.50% 2017-2020 — 2,000 Term loan JPY 58.5 billion (5) JPY LIBOR +0.55% 2022 — 519 Term loan JPY 35 billion (6) 1.42% 2019 — 311 Term loan JPY 35 billion (6) JPY LIBOR +0.3% 2018 — 311 Total loans — 3,426 Debentures USD 15 million (7) 7.20% 2018 — 15 Other 7.78% 2026 6 5 Total debentures and others 6 20 Less current maturities (2,158 ) (2,880 ) Derivative instruments 24 2 Less debt issuance costs (110 ) (106 ) Total senior notes and loans $ 26,816 $ 28,829 (1) In March 2018, Teva Pharmaceutical Finance Netherlands II B.V., a Teva finance subsidiary, issued senior notes in an aggregate principal amount of €1.6 billion. (2) In March 2018, Teva Pharmaceutical Finance Netherlands III B.V., a Teva finance subsidiary, issued senior notes in an aggregate principal amount of $2.5 billion. (3) In March 2018, Teva redeemed in full its $1.5 billion 1.4% senior notes due in July 2018 and its €1.0 billion 2.88% senior notes due in April 2019. (4) During the first quarter of 2018, Teva prepaid approximately $2.3 billion principal amount of the remaining term loan facilities. (5) During the first quarter of 2018, Teva prepaid in full JPY 86.8 billion principal amount of the outstanding term loan facilities of which JPY 28.3 billion were in short-term debt as of December 31, 2017. (6) During the first quarter of 2018, Teva prepaid in full JPY 70 billion of its 1.42% and JPY LIBOR+0.3% outstanding term loans. (7) During the first quarter of 2018, Teva prepaid in full $15 million of its outstanding debentures. (8) In September 2018, Teva consummated a cash tender offer for certain of its outstanding senior notes. As a result of the offer, Teva redeemed $300 million aggregate principal amount of its 1.7% senior notes and €90 million principal amount of its 0.38% senior notes. (9) In July 2018, Teva repaid at maturity CHF 300 million of its 0.13% senior notes. Long term debt was issued by several indirect wholly-owned subsidiaries of the Company and is fully and unconditionally guaranteed by the Company as to payment of all principal, interest, discount and additional amounts (as defined), if any. Long term debt as of September 30, 2018 is effectively denominated (taking into consideration cross currency swap agreements) in the following currencies: U.S. dollar 63%, euro 34% and Swiss franc 3%. Teva’s principal sources of short-term liquidity are its existing cash investments, liquid securities and available credit facilities, primarily its $3 billion syndicated revolving credit facility (“RCF”), which was not utilized as of September 30, 2018, as well as internally generated funds. In connection with the requirements of the RCF, the Company entered into negative pledge agreements with certain banks and institutional investors. Under the agreements, the Company and its subsidiaries have undertaken not to register floating charges on assets in favor of any third parties without the prior consent of the banks, to maintain certain financial ratios, including the requirement to maintain compliance with a net debt to EBITDA ratio, which becomes more restrictive over time, and to fulfill other restrictions, as stipulated by the agreements. As of September 30, 2018, the Company did not have any outstanding debt under the RCF, which is its only debt subject to the net debt to EBITDA covenant. Assuming utilization of the RCF, and under specified circumstances, including non-compliance non-compliance |
Fair value measurement_
Fair value measurement: | 9 Months Ended |
Sep. 30, 2018 | |
Fair value measurement: | NOTE 12 – Fair value measurement: Teva’s financial instruments consist mainly of cash and cash equivalents, investment in securities, current and non-current non-current The fair value of the financial instruments included in working capital and non-current Financial instruments measured at fair value The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible, and considers counterparty credit risk in its assessment of fair value. There were no transfers between Level 1, Level 2 and Level 3 during the first nine months of 2018. Financial items carried at fair value as of September 30, 2018 and December 31, 2017 are classified in the tables below in one of the three categories described above: September 30, 2018 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 302 $ — $ — $ 302 Cash, deposits and other 1,573 — — 1,573 Investment in securities: Equity securities 53 — — 53 Other, mainly debt securities 2 — 18 20 Derivatives: Asset derivatives—options and forward contracts — 23 — 23 Asset derivatives—cross currency swaps — 42 — 42 Liabilities derivatives—options and forward contracts — (14 ) — (14 ) Liabilities derivatives—interest rate and cross-currency swaps — (82 ) — (82 ) Contingent consideration* — — (717 ) (717 ) Total $ 1,930 $ (31 ) $ (699 ) $ 1,200 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 Other, mainly debt securities 14 — 18 32 Derivatives: Asset derivatives—options and forward contracts — 17 — 17 Asset derivatives—cross-currency swaps — 25 — 25 Liability 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 * Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. Teva determined the fair value of the liability for the contingent consideration based on a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration is based on several factors, such as: the cash flows projected from the success of unapproved product candidates; the probability of success of product candidates, including risks associated with uncertainty regarding achievement and payment of milestone events; the time and resources needed to complete the development and approval of product candidates; the life of the potential commercialized products and associated risks of obtaining regulatory approvals in the U.S. and Europe, and the risk adjusted 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. 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: Nine months ended (U.S. $ in millions) Fair value at the beginning of the period $ (717 ) Adjustments to provisions for contingent consideration: Actavis Generics transaction (21 ) Labrys transaction (17 ) Eagle transaction (46 ) Settlement of contingent consideration: Eagle transaction 102 Fair value at the end of the period $ (699 ) Financial instruments not measured at fair value Financial instruments measured on a basis other than fair value mostly consist of senior notes and convertible senior debentures and are presented in the table below in terms of fair value: Estimated fair value* September 30, December 31, 2018 2017 (U.S. $ in millions) Senior notes included under senior notes and loans $ 24,775 $ 23,459 Senior notes and convertible senior debentures included under short-term debt 2,614 2,713 Total $ 27,389 $ 26,172 * The fair value was estimated based on quoted market prices, where available. |
Derivative instruments and hedg
Derivative instruments and hedging activities: | 9 Months Ended |
Sep. 30, 2018 | |
Derivative instruments and hedging activities: | NOTE 13 – Derivative instruments and hedging activities: The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting: September 30, December 31, (U.S. $ in millions) Cross-currency swap—cash flow hedge $ 588 $ 588 Cross-currency swap—net investment hedge 1,000 1,000 Interest rate swap—fair value hedge 500 500 The following table summarizes the classification and fair values of derivative instruments: Fair value Designated as hedging Not designated as hedging September 30, December 31, September 30, December 31, Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ — $ — $ 23 $ 17 Other non-current Cross-currency swaps—cash flow hedge 42 25 — — Liability derivatives: Other current liabilities: Option and forward contracts — — (14 ) (15 ) Other taxes and long-term liabilities: Cross-currency swaps—net investment hedge (58 ) (96 ) — — Senior notes and loans: Interest rate swaps—fair value hedge (24 ) (2 ) — — Derivatives on foreign exchange contracts mainly hedge Teva’s balance sheet items from currency exposure but are not designated as hedging instruments for accounting purposes. With respect to such derivatives, gains of $11 million and losses of $72 million were recognized under financial expenses, net for the nine months ended September 30, 2018 and 2017, respectively, and gains of $6 million and losses of $14 million were recognized under financial expenses, net for the three months ended September 30, 2018 and 2017, respectively. Such losses and gains offset the revaluation of the balance sheet items which is also recorded under financial expenses, net. During the second quarter of 2018, the Company entered into option contracts and designed these transactions to limit the exposure of foreign exchange fluctuations on the euro denominated revenues with respect to the quarter for which such instruments are purchased. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as economic hedge. These derivative instruments are recognized on the balance sheet at their fair value, with changes in the fair value recognized under the same line item in the statements of income as the underlying exposure being hedged. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. During the third quarter of 2018, the impact of such derivative instruments was immaterial. With respect to the interest rate and cross-currency swap agreements, gains of $1 million and $4 million were recognized under financial expenses, net for the nine months ended September 30, 2018 and 2017, respectively, and gains of $0.5 million and $1 million were recognized under financial expenses, net for the three months ended September 30, 2018 and 2017, respectively. Such gains mainly reflect the differences between the fixed interest rate and the floating interest rate. Commencing in the third quarter 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 connection with the closing of the Actavis Generics acquisition). Certain of the forward starting interest rate swaps and treasury lock agreements matured during the first half of 2016. In July 2016, 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 was settled in January 2017. The change in fair value of these instruments recorded as part of other comprehensive income is amortized under financial expenses, net over the life of the debt. Such losses mainly reflect the changes in the benchmark interest 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 agreements, losses of $21 million and $20 million were recognized under financial expenses, net for the nine months ended September 30, 2018 and 2017, respectively, and losses of $7 million were recognized under financial expenses, net for each of the three months ended September 30, 2018 and 2017. In the third quarter of 2016, Teva terminated interest rate swap agreements designated as fair value hedge relating to certain senior notes. Settlement of these transactions resulted in a gain position of $41 million. The fair value hedge accounting adjustments of these instruments recorded under senior notes and loans will be amortized under financial expenses, net over the life of the debt. With respect to these terminated interest rate swap agreements, gains of $5 million were recognized under financial expenses, net for both the nine months ended September 30, 2018 and 2017, and gains of $2 million were recognized under financial expenses, net for both the three months ended September 30, 2018 and 2017. In the fourth quarter of 2016, Teva entered into an interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement maturing in 2020 with a notional amount of $500 million. These cross currency swaps were designated as a net investment hedge of Teva’s euro denominated net assets, in order to reduce the risk of adverse exchange rate fluctuations. The effective portion of the hedge will be determined by looking into changes in spot exchange rate. The change in fair value of the cross currency swap attributable to changes other than those due to fluctuations in the spot exchange rates are excluded from the assessment of hedge effectiveness and are reported directly in the statement of income. With respect to these cross currency swap agreements, gains of $22 million and $8 million were recognized under financial expenses, net for the nine months ended September 30, 2018 and 2017, respectively, and gains of $6 million and $4 million were recognized under financial expenses, net for the three months ended September 30, 2018 and 2017, respectively. |
Other asset impairments, restru
Other asset impairments, restructuring and other items | 9 Months Ended |
Sep. 30, 2018 | |
Other asset impairments, restructuring and other items | NOTE 14 – Other asset impairments, restructuring and other items: Other impairments, restructuring and other items consisted of the following: Three months ended Nine months ended 2018 2017 2018 2017 (U.S. $ in millions) Restructuring expenses $ 88 $ 72 $ 442 $ 300 Integration and acquisition expenses 4 31 9 87 Contingent consideration 29 18 84 179 Impairments of long-lived assets 521 408 1,501 564 Other 16 21 44 79 Total $ 658 $ 550 $ 2,080 $ 1,209 In determining the estimated fair value of 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 WACC 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 others, the following: (i) for IPR&D 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, pricing 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 in December, 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. Impairments • Impairments of long-lived intangible assets in the third quarter of 2018 were $519 million, mainly consisting of: a) IPR&D assets of $306 million, mainly related to revaluation of generic products acquired from Actavis Generics due to development progress and changes in other key valuation indications (e.g., market size, legal landscape, launch date or discount rate). b) Identifiable product rights of $185 million, mainly due to updated market assumptions regarding price and volume of products acquired from Actavis Generics currently marketed in the United States and supply constraints. • Impairments of property, plant and equipment of $2 million. • Impairments of long-lived intangible assets in the first nine months of 2018 were $1,246 million, mainly consisting of: a) IPR&D assets of $867 million, mainly related to revaluation of generic products acquired from Actavis Generics due to development progress and changes in other key valuation indications (e.g., market size, legal landscape, launch date or discount rate). b) Identifiable product rights of $328 million due to updated market assumptions regarding price and volume of products acquired from Actavis Generics currently marketed in the United States and supply constraints. • Impairments of property, plant and equipment in the first nine months of 2018 were $255 million, mainly consisting of: a) $155 million related to the restructuring plan, including: • $113 million related to site closures in Israel; and • $42 million related to the consolidation of headquarters and distribution sites in the United States. b) Other impairment costs, mainly $64 million related to a plant located in India in connection with the P&G separation agreement. See note 3. Restructuring In the three months ended September 30, 2018, Teva recorded $88 million of restructuring expenses, compared to $72 million in the three months ended September 30, 2017. In the first nine months of 2018, Teva recorded $442 million of restructuring expenses, compared to $300 million in the first nine months of 2017. The expenses in the first nine months of 2018 were primarily related to headcount reductions across all functions. Since the announcement of its restructuring plan, Teva reduced its global headcount by approximately 9,100 full-time-equivalent employees. During the three months ended September 30, 2018, Teva recorded a $2 million impairment of property, plant and equipment related to restructuring costs. During the first nine months of 2018 Teva recorded a $155 million impairment of property, plant and equipment related to restructuring costs as detailed in “— Impairments” above. The following tables provide the components of costs associated with Teva’s restructuring plan, including other costs associated with Teva’s restructuring plan and recorded under different items: Three months ended September 30, 2018 2017 (U.S. $ in millions) Restructuring Employee termination $ 62 $ 54 Other 26 18 Total $ 88 $ 72 Three months ended September 30, 2018 2017 (U.S. $ in millions) Other Cost of sales $ 8 $ 3 Selling and marketing expenses — 3 Other items 16 — Nine months ended September 30, 2018 2017 (U.S. $ in millions) Restructuring Employee termination $ 380 $ 228 Other 62 72 Total $ 442 $ 300 Nine months ended September 30, 2018 2017 (U.S. $ in millions) Other Cost of sales $ 23 $ 5 Selling and marketing expenses — 3 Other items 54 — The following table provides the components of and changes in the Company’s restructuring accruals: Employee Other Total (U.S. $ in millions) Balance as of January 1, 2018 $ (294 ) $ (17 ) $ (311 ) Provision (380 ) (62 ) (442 ) Utilization and other* 418 51 469 Balance as of September 30, 2018 $ (256 ) $ (28 ) $ (284 ) * Includes adjustments for foreign currency translation. In July 2018, the FDA completed an inspection of Teva’s manufacturing plant in Davie, Florida in the United States and issued a Form FDA-483 In July 2018, Teva announced the voluntary recall of valsartan and certain combination valsartan medicines in various countries due to the detection of trace amounts of an unexpected impurity in the API provided by a third party supplier, Zhejiang Huahai Pharmaceutical (“Zhejiang”), used in the production of such medicines. On September 28, 2018, the FDA issued an import ban on all APIs and other drug products made by Zhejiang in its Chuannan site into the United States. On the same date, the EU authorities issued to Zhejiang a statement of non-compliance |
Legal settlements and loss cont
Legal settlements and loss contingencies: | 9 Months Ended |
Sep. 30, 2018 | |
Legal settlements and loss contingencies: | NOTE 15 – Legal settlements and loss contingencies: In the third quarter of 2018, the Company recorded expenses of $19 million for legal settlements and loss contingencies, compared to income of $20 million in the third quarter of 2017. In the first nine months of 2018, Teva recorded income of $1,239 million in connection with legal settlements, compared to an expense of $324 million in the first nine months of 2017. The income in the first nine months of 2018 consisted primarily of the working capital adjustment with Allergan, the Rimsa settlement and reversal of the reserve recorded in the second quarter of 2017 with respect to the carvedilol patent litigation. As of September 30, 2018 and December 31, 2017 Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses was $663 million and $1,232 million, respectively. |
Commitments and Contingencies_
Commitments and Contingencies: | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies: | NOTE 16 – Commitments and 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 currently 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 liability 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 this 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 assumptions. Teva continuously reviews the matters described below and may, from time to time, remove previously disclosed matters that the Company has determined no longer meet the materiality threshold for disclosure. If 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 related expenses in the course of defending its positions even if the facts and circumstances of a particular litigation do not give rise to a provision in the financial statements. In connection with third-party agreements, Teva may under certain circumstances be required to indemnify, and may be indemnified by, in unspecified amounts, the parties to such agreements against third-party claims. Among other things, Teva’s agreements with third parties may require Teva to indemnify them, or require them to indemnify Teva, for the costs and damages incurred in connection with product liability claims, in specified or unspecified amounts. Except as otherwise noted, all of the litigation matters disclosed below involve claims arising in the United States. 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 to patent expiration in various markets. In the United States, to obtain approval for most generics prior to the expiration of the originator’s patents, Teva must challenge the patents under the procedures set forth in the Hatch-Waxman Act of 1984, as amended. To the extent that Teva seeks to utilize such patent challenge procedures, Teva is and expects to be involved in patent litigation regarding the validity, enforceability or infringement of the originator’s patents. Teva may also be involved in patent litigation involving the extent to which its product or manufacturing process techniques may infringe other originator or third-party patents. Additionally, depending upon a complex analysis of a variety of legal and commercial factors, Teva may, in certain circumstances, elect to market a generic version even though litigation is still pending. 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, which 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 multiples. Teva is also involved in litigation regarding patents in other countries where it does business, particularly in Europe, where Teva has in recent years increased the number of launches of its generic versions of branded pharmaceuticals prior to the expiration of the innovator’s patents. The laws concerning generic pharmaceuticals and patents differ from country to country. Damages for patent infringement in Europe may include lost profits or a reasonable royalty, but enhanced damages for willful infringement are generally not available. In 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 (the generic version of GSK’s Coreg ® pre- In 2014, Teva Canada succeeded in its challenge of the bortezomib (the generic equivalent of Velcade ® On July 8, 2011, Helsinn sued Teva over its filing of an ANDA to market a generic version of palonosetron IV solution (the generic equivalent of Aloxi ® ® 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 its 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 increasingly 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. Competition Matters As part of its generic pharmaceuticals business, Teva has challenged a number of patents covering branded pharmaceuticals, some of which are among the most widely-prescribed and well-known drugs on the market. Many of Teva’s patent challenges have resulted in litigation relating to Teva’s attempts to market generic versions of such pharmaceuticals under the federal Hatch-Waxman Act. Some of this litigation has been resolved through settlement agreements in which Teva obtained a license to market a generic version of the drug, often years before the patents expire. Teva and its subsidiaries have increasingly been named as defendants in cases that allege antitrust violations arising from such settlement 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 various forms of injunctive and monetary relief, including damages based on the difference between the brand price and what the generic price allegedly would have been and disgorgement of profits, which are automatically trebled under the relevant statutes, plus 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, these 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 determine 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 ® 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 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 an oral hearing was held. No final decision regarding infringement has yet been taken by the Commission. 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 Pharmaceuticals, Inc. (“Watson”), now a Teva subsidiary, and Solvay Pharmaceuticals, Inc. (“Solvay”) relating to AndroGel ® ® ® ® ® In December 2011, three groups of plaintiffs sued Wyeth and Teva for alleged violations of the antitrust laws in connection with their settlement of patent litigation involving extended release venlafaxine (generic Effexor ® ® 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 ® ® In April 2013, purported classes of direct purchasers of, and end payers for, Niaspan ® opt-out ® 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 ® end-payer end-payer ® re-filed ® Since November 2013, numerous lawsuits have been filed in various federal courts by purported classes of end payers for, and direct purchasers of, Aggrenox ® ® opt-out opt-out Opt-outs ® 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 payers for and direct purchasers of Actos ® ® ® ® ® ® In June 2014, two groups of end payers 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 (generic Nexium ® non-settling In September 2014, the FTC sued AbbVie Inc. and certain of its affiliates (“AbbVie”) as well as Teva in the U.S. District Court for the Eastern District of Pennsylvania alleging that they violated the antitrust laws when they entered into a settlement agreement to resolve the AndroGel ® ® Since May 2015, two lawsuits have been filed in the U.S. District Court for the Southern District of New York by a purported class of direct purchasers of, and a purported class of end payers for, Namenda IR ® ® On March 8, 2016 and April 11, 2016, certain Actavis subsidiaries in the United Kingdom, including Auden Mckenzie Holdings Limited, received notices from the U.K. Competition and Markets Authority (“CMA”) that it had launched formal investigations under Section 25 of the Competition Act of 1998 (“Competition Act”) into suspected breaches of competition law in connection with the supply of 10mg and 20mg hydrocortisone tablets. On December 16, 2016, the CMA issued a statement of objections (a provisional finding of infringement of the Competition Act) in respect of certain allegations against Actavis UK and Allergan, which was later reissued to include certain Auden Mckenzie entities. A response was submitted and an oral hearing was held. On December 18, 2017, the CMA issued a Statement of Draft Penalty Calculation. A response was submitted and an oral hearing was held. No final decision regarding infringement of competition law has yet been issued by the CMA. On March 3, 2017, the CMA issued a second statement of objection in respect of certain additional allegations (relating to the same products and covering part of the same time period as for the first statement of objections) against Actavis UK, Allergan, and a number of other companies, which was later reissued to include certain Auden Mckenzie entities. A response was submitted and an oral hearing was held. On January 9, 2017, Teva completed the sale of Actavis UK to Accord Healthcare Limited, pursuant to which Teva will indemnify Accord Healthcare for potential fines imposed by the CMA and/or damages awarded by a court against Actavis UK as a result of the investigations in respect of conduct prior to the closing date of the sale. In the event of any such fines or damages, Teva expects to assert claims, including claims for breach of warranty, against the sellers of Auden Mckenzie. The terms of the purchase agreement may preclude a full recovery by Teva. A liability for this matter has been recorded in purchase accounting related to the acquisition of Actavis Generics. Further to the Master Purchase Agreement with Allergan whereby Teva agreed to indemnify Allergan for liabilities related to acquired assets, Teva agreed with Allergan to settle and release Teva’s indemnity claim and Allergan’s potential losses arising from the CMA in connection with this matter, pursuant to the agreement the parties entered into on January 31, 2018. See note 3. In November 2016, three putative indirect purchaser class actions were filed in federal courts in Wisconsin, Massachusetts and Florida against Shire U.S., Inc. and Shire LLC (collectively, “Shire”) and Actavis, alleging that Shire’s 2013 patent litigation settlement with Actavis related to the ADHD drug Intuniv ® ® Government Investigations and Litigation Relating to Pricing and Marketing Teva is involved in government investigations and litigation arising from the marketing and promotion of its pharmaceutical products in the United States. Many of these investigations originate through what are known as qui tam A number of state attorneys general have filed various actions against Teva and/or certain of its subsidiaries, including certain Actavis subsidiaries, relating to reimbursements or drug price reporting under Medicaid or other programs. Such price reporting is alleged to have caused states and others to pay inflated reimbursements for covered drugs. Teva and its subsidiaries have reached settlements in most of these cases. On October 4, 2018, Teva settled longstanding litigation filed by the State of Illinois against subsidiaries of Teva and Watson for a total settlement amount of $135 million, to be paid over time through January 2020. Teva accepted the settlement while denying any liability with respect to the claims made by the state. Pending the final settlement payment, the Illinois litigation is stayed. In August 2013, judgment was entered in a separate case brought by the State of Mississippi against Watson, pursuant to which Watson was ordered to pay compensatory damages amounting to $12.4 million. In March of 2014, the Mississippi court amended the judgment to also include punitive damages in the amount of $17.9 million. The judgment was affirmed in all respects by the Mississippi Supreme Court in January of 2018 and has since been satisfied in full. The Actavis subsidiaries remain parties to active litigation in Utah where previously dismissed claims against Watson are now on appeal. A provision for these cases has been included in the financial statements. Several qui tam qui tam In January 2014, Teva received a civil investigative demand from the U.S. Attorney for the Southern District of New York seeking documents and information from January 1, 2006 related to sales, marketing and promotion of COPAXONE and AZILECT, focusing on educational and speaker programs. The demand states that the government is investigating possible civil violations of the federal False Claims Act. In March 2015, the docket in this matter and a False Claims Act civil qui tam qui tam In January 2014, a qui tam qui tam In May 2017, a qui tam qui tam Beginning in May 2014, various complaints were filed with respect to opioid sales and distribution against various Teva affiliates, along with several other pharmaceutical companies, by a number of cities, counties, states and agencies across the country. There are actions currently pending against Teva and its affiliates that have been brought by various states, subdivisions and state agencies in both state and federal courts. Most of the federal cases have been consolidated into a multidistrict litigation in the Northern District of Ohio (“MDL Proceeding”). In addition to the complaints filed by states, state agencies and political subdivisions, over 1,500 total lawsuits have been filed in various states, both in state and federal courts. Most of the federal class action cases, as well as state cases that have been removed, have been consolidated into the MDL Proceeding. Complaints asserting claims under similar provisions of different state law, generally contend that the defendants allegedly engaged in improper marketing and distribution of opioids, including ACTIQ ® On June 21, 2016, Teva USA received a subpoena from the Antitrust Division of the DOJ seeking documents and other information relating to the marketing and pricing of certain Teva USA generic products and communications with competitors about such products. Actavis received a similar subpoena in June 2015. Teva and Actavis are cooperating fully with the DOJ subpoena requests. On July 12, 2016, Teva USA received a subpoena from the Connecticut Attorney General seeking documents and other information relating to potential state antitrust law violations. In 2015, Actavis received a similar subpoena from the Connecticut Attorney General. On December 15, 2016, a civil action was brought by the attorneys general of twenty states against Teva USA and several other companies asserting claims under federal antitrust law (specifically, section 1 of the Sherman Act) alleging price fixing of generic products in the United States. An amended complaint was filed on March 1, 2017 adding twenty additional states to the named plaintiffs and adding supplemental state law claims. The states seek a finding that the defendants’ actions violated federal antitrust law, and state antitrust and consumer protection laws, as well as injunctive relief, disgorgement, damages on behalf of various state and governmental entities and consumers, civil penalties and costs. On August 3, 2017, the Judicial Panel on Multidistrict Litigation (“JPML”) transferred this action to the generic drug multidistrict litigation pending in federal court in Pennsylvania, which is discussed in greater detail below. On July 17, 2017, a new complaint was filed in the District Court of Connecticut on behalf of four additional states – Arkansas, Missouri, New Mexico and West Virginia, as well as the District of Columbia. These plaintiffs were not previously party to the State Attorney General action that commenced in December 2016. This complaint, which the JPML has also transferred to the generic drug multidistrict litigation discussed below, makes the same factual allegations and claims that are at issue in the earlier State Attorneys General complaint. On October 31, 2017 the attorneys general of 45 states plus Puerto Rico and the District of Columbia filed a motion for leave to file an amended complaint in this action. The proposed amended complaint names Actavis and Teva as defendants, and adds new allegations and claims to those appearing in the prior complaints. Defendants have opposed the motion. On June 5, 2018, the District Court for the Eastern District of Pennsylvania granted the attorneys general’s motion to amend. Beginning on March 2, 2016, numerous complaints have been filed in the United States on behalf of putative classes of direct and indirect purchasers of several generic drug products, as well as several individual direct purchaser opt-out non-merits In May 2018, Teva received a civil investigative demand from the DOJ Civil Division, pursuant to the federal False Claims Act, seeking documents and information produced since January 1, 2009 relevant to the Civil Division’s investigation concerning allegations that generic pharmaceutical manufacturers, including Teva, engaged in market allocation and price-fixing agreements, paid illegal remuneration, and caused false claims to be submitted in violation of the False Claims Act. Teva is cooperating fully with this subpoena. On March 21, 2017, Teva received a subpoena from the U.S. Attorney’s office in Boston, Massachusetts requesting documents related to Teva’s donations to patient assistance programs. Teva is cooperating fully in responding to the subpoena. In December 2016, Teva resolved certain claims under the U.S. Foreign Corrupt Practices Act (“FCPA”) with the SEC and the DOJ, as more fully described in Teva’s 2017 Annual Report. The settlement included a fine, disgorgement and prejudgment interest; a three-year deferred prosecution agreement (“DPA”) for Teva; a guilty plea by Teva’s Russian subsidiary to criminal charges of violations of the anti-bribery provisions of the FCPA; consent to entry of a final judgment against Teva resolving civil claims of violations of the anti-bribery, internal controls and books and records provisions of the FCPA; and the retention of an independent compliance monitor for a period of three years. If, during the term of the DPA (approximately three years, unless extended), the DOJ determines that Teva has committed a felony under federal law, provided deliberately false or misleading information or otherwise breached the DPA, Teva could be subject to prosecution and additional fines or penalties, including the deferred charges. Following the above resolution with the SEC and DOJ, Teva has had requests for documents and information from various Russian government entities. In addition, on January 14, 2018, Teva entered into an arrangement for the Contingent Cessation of Proceedings pursuant to the Israeli Securities Law with the Government of Israel that ended the investigation of the Israeli government into the conduct that was subject to the FCPA investigation, and provided a payment of approximately $22 million. Shareholder Litigation On November 6, 2016 and December 27, 2016, two putative securities class actions were filed in the U.S. District Court for the Central District of California against Teva and certain of its current and former officers and directors. After those two lawsuits were consolidated and transferred to the U.S. District Court for the District of Connecticut, the court appointed the Ontario Teachers’ Pension Plan Board as lead plaintiff (the “Ontario Teachers Securities Litigation”). The lead plaintiff then filed a consolidated amended complaint. On December 1, 2017, Teva and the current and former officer and director defendants subsequently filed motions to dismiss the consolidated amended complaint, with prejudice. On April 3, 2018, the court granted the motions to dismiss without prejudice. Lead plaintiff filed a second amended complaint on June 22, 2018, purportedly on behalf of purchasers of Teva’s securities between February 6, 2014 and August 3, 2017. The second complaint asserts that Teva and certain of its current and former officers and directors violated federal securities laws in connection with Teva’s alleged failure to disclose pricing strategies for various drugs in its generic drug portfolio and by making allegedly false or misleading statements in certain offering materials issued during the class period. The second complaint seeks unspecified damages, legal fees, interest, and costs. Teva and the current and former officer and director defendants filed motions to dismiss the second complaint on September 14, 2018. Lead plaintiff’s opposition to the motions to dismiss is due on November 9, 2018. On July 17, 2017, a lawsuit was filed in the U.S. District Court for the Southern District of Ohio derivatively on behalf of the Teva Employee Stock Purchase Plan, and alternatively as a putative class action lawsuit on behalf of individuals who purchased Teva stock through that plan. That lawsuit seeks unspecified damages, legal fees, interest and costs. The complaint alleges that Teva failed to maintain adequate financial controls based on the facts underpinning Teva’s FCPA DPA and also based on allegations substantially similar to those in the Ontario Teachers Securities Litigation. On November 29, 2017, the court granted Teva’s motion to transfer the litigation to the U.S. District Court for the District of Connecticut where the Ontario Teachers Securities Litigation is pending. On February 12, 2018, the district court stayed the case pending resolution of the motions to dismiss filed in the consolidated putative securities class action described above. On August 3, 2017, a securities lawsuit was filed in the U.S. District Court for the District of Connecticut by OZ ELS Master Fund, Ltd. and related entities. The complaint asserts that Teva and certain of its current and former officers violated the federal securities laws in connection with Teva’s alleged failure to disclose Teva’s participation in an alleged anticompetitive scheme to fix prices and allocate markets for generic drugs in the United States. On August 30, 2017, the court entered an order deferring all deadlines pending the resolution of the motions to dismiss filed in the Ontario Teachers Securities Litigation described above. On August 21 and 30, 2017, each of Elliot Grodko and Barry Baker filed a putative securities class action in the U.S. District Court for the Eastern District of Pennsylvania purportedly on behalf of purchasers of Teva’s securities between November 15, 2016 and August 2, 2017 seeking unspecified damages, legal fees, interest, and costs. The complaints allege that Teva and certain of its current and former officers violated the federal securities laws and Israeli securities laws by making false and misleading statements in connection with Teva’s acquisition and integration of Actavis Generics. On November 1, 2017, the court consolidated the Baker and Grodko cases. On April 10, 2018, the court granted Teva’s motion to transfer the consolidated action to the District of Connecticut where the Ontario Teachers Securities Litigation is currently pending. Between August and October 2018, four complaints were filed against Teva and current and former officer and director defendants seeking unspecified compensatory and rescissory damages, legal fees, costs and expenses. The allegations in these complaints are substantially similar to the allegations in the Ontario Teachers Securities Litigation, but have been brought on behalf of plaintiffs that have “opted out” of the putative class in the Ontario Teachers Securities Litigation. The plaintiffs in these “opt-out” Motions to approve derivative actions against certain past and present directors and officers have been filed in Israel with respect to alleged negligence and recklessness with respect to the acquisition of the Rimsa business and the acquisition of Actavis Generics. Motions for document disclosure prior to initiating derivative actions were filed with respect to dividend distribution, executive compensation and several patent settlement agreements. Motions to approve securities class actions against Teva and certain of its current and former directors and officers were filed in Israel based on allegations of improper disclosure of the above-mentioned pricing investigation, as well as lack of disclosure of negative developments in the generic sector, including price erosion with respect to Teva’s products. Other motions were filed in Israel to approve a derivative action, discovery and a class action related to claims regarding Teva’s above-mentioned FCPA resolution with the SEC and DOJ. Environmental Matters Teva or its subsidiaries are party to a number of environmental proceedings, or have received claims, including under the federal Superfund law or other federal, provincial or state and local laws, imposing liability for alleged noncompliance, or for the investigation and remediation of releases of hazardous substances and for natural resource damages. Many of these proceedings and claims seek to require the generators of hazardous wastes disposed of at a third party-owned site, or the party responsible for a release of hazardous substances that impacted a site, to investigate and clean the site or to pay or reimburse others for such activities, including for oversight by governmental authorities and any related damages to natural resources. Teva or its subsidiaries have received claims, or been made a party to these proceedings, along with others, as an alleged generator of wastes that were disposed of or treated at third-party waste disposal sites, or as a result of an alleged release from one of Teva’s facilities or former facilities. Although liability among the responsible parties, under certain circumstances, may be joint and several, these proceedings are frequently resolved so that the allocation of clean-up clean-up clean-up Other Matters On February 1, 2018, former shareholders of Ception Therapeutics, Inc., a company that was acquired by and merged into Cephalon in 2010, prior to Cephalon’s acquisition by Teva, filed breach of contract and other related claims against the Company, Teva USA and Cephalon in the Delaware Court of Chancery. Among other things, the plaintiffs allege that Cephalon breached the terms of the 2010 Ception-Cephalon merger agreement by failing to exercise commercially reasonable efforts to develop and commercialize CINQAIR ® |
Segments_
Segments: | 9 Months Ended |
Sep. 30, 2018 | |
Segments: | NOTE 17 – Segments: In November 2017, Teva announced a new organizational structure and leadership changes to enable strategic alignment across its portfolios, regions and functions. Teva now operates its business through three segments: North America, Europe and International Markets. The purpose of the new structure is to enable stronger alignment and integration between operations, commercial regions, R&D and Teva’s global marketing and portfolio function, in order to optimize its product lifecycle across the therapeutic areas. The Company began reporting its financial results under this structure in the first quarter of 2018. In addition to these three segments, Teva has other activities, primarily the sale of API to third parties and certain contract manufacturing services. All the above changes were reflected through retroactive revision of prior period segment information. Since 2013 and until December 31, 2017, Teva had two reportable segments: generic and specialty medicines. The generic medicines segment included Teva’s OTC and API businesses. Teva’s other activities included distribution activities, sales of medical devices and certain contract manufacturing operation (“CMO”) services. Teva now operates its business and reports its financial results in three segments: (a) North America segment, which includes the United States and Canada. (b) Europe segment, which includes the European Union and certain other European countries. (c) International Markets segment, which includes all countries other than those in the North America and Europe segments. Teva’s Chief Executive Officer (“CEO”), 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 three identified reportable segments, namely North America, Europe and International Markets, 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 expenses, S&M expenses, G&A expenses and other income related to the segment. Segment profit does not include amortization and certain other items. Teva manages its assets on a company basis, not by segments, as many of its assets are shared or commingled. Teva’s CODM does not regularly review asset information by reportable segment and, therefore, Teva does not report asset information by reportable segment. Teva’s CEO may review its strategy and organizational structure. Any changes in strategy may lead to a reevaluation of the Company’s segments and goodwill allocation to reporting units, as well as fair value attributable to its reporting units. See note 7. a. Segment information: North America Europe International Markets Three months ended September 30, 2018 2017 2018 2017 2018 2017 (U.S. $ in millions) Revenues $ 2,265 $ 3,043 $ 1,212 $ 1,380 $ 726 $ 882 Gross profit 1,232 1,833 683 721 301 351 R&D expenses 158 230 62 101 21 35 S&M expenses 301 325 249 289 120 158 G&A expenses 128 149 74 90 37 51 Other income (loss) (4 ) (1 ) 1 — — (3 ) Segment profit $ 649 $ 1,130 $ 297 $ 241 $ 123 $ 110 North America Europe International Markets Nine months ended September 30, 2018 2017 2018 2017 2018 2017 (U.S. $ in millions) Revenues $ 7,059 $ 9,452 $ 3,982 $ 4,016 $ 2,265 $ 2,485 Gross profit 3,867 5,971 2,211 2,147 942 1,043 R&D expenses 528 777 208 312 70 129 S&M expenses 902 1,158 741 864 384 503 G&A expenses 357 432 243 258 115 144 Other income (206 ) (82 ) (1 ) (15 ) (11 ) (4 ) Segment profit $ 2,286 $ 3,686 $ 1,020 $ 728 $ 384 $ 271 Three months ended Nine months ended 2018 2017 2018 2017 (U.S. $ in millions) (U.S. $ in millions) North America profit $ 649 $ 1,130 $ 2,286 $ 3,686 Europe profit 297 241 1,020 728 International Markets profit 123 110 384 271 Total segment profit 1,069 1,481 3,690 4,685 Profit (loss) of other activities 35 (11 ) 87 3 1,104 1,470 3,777 4,688 Amounts not allocated to segments: Amortization 297 357 909 1,088 Other asset impairments, restructuring and other items 658 550 2,080 1,209 Goodwill impairment — — 300 6,100 Gain on divestitures, net of divestitures related costs (31 ) — (114 ) — Inventory step-up — — — 67 Other R&D expenses 60 150 82 176 Costs related to regulatory actions taken in facilities 1 (1 ) 6 48 Legal settlements and loss contingencies 19 (20 ) (1,239 ) 324 Other unallocated amounts 84 56 226 143 Consolidated operating income (loss) 16 378 1,527 (4,467 ) Financial expenses, net 229 259 736 704 Consolidated income (loss) before income taxes $ (213 ) $ 119 $ 791 $ (5,171 ) b. Segment revenues by major products and activities: The following tables present revenues by major products and activities for the nine and three months ended September 30, 2018 and 2017: Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 (U.S. $ in millions) (U.S. $ in millions) North America segment Generic products $ 922 $ 1,233 $ 2,957 $ 3,979 COPAXONE 463 819 1,403 2,475 BENDEKA / TREANDA 161 179 502 498 ProAir 107 155 352 399 QVAR 36 83 173 265 AUSTEDO 62 6 136 8 Distribution 333 294 984 864 Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 (U.S. $ in millions) (U.S. $ in millions) Europe segment Generic products $ 845 $ 871 $ 2,749 $ 2,543 COPAXONE 124 150 417 440 Respiratory products 93 90 312 258 Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 (U.S. $ in millions) (U.S. $ in millions) International Markets segment Generic products $ 498 $ 629 $ 1,523 $ 1,720 COPAXONE 14 18 52 65 Distribution 149 146 456 406 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 these 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-equivalent |
Other income_
Other income: | 9 Months Ended |
Sep. 30, 2018 | |
Other income: | NOTE 18 – Other income: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (U.S. $ in millions) (U.S. $ in millions) Gain on divestitures, net of divestitures related costs (1) $ 31 — $ 114 — Section 8 and similar payments (2) 1 — 195 83 Gain on sale of assets 1 — 9 — Other, net 2 4 16 17 Total other income $ 35 $ 4 $ 334 $ 100 (1) Mainly related to the divestment of the women’s health business and the PGT dissolution in 2018. See note 3. (2) Section 8 of the Patented Medicines (Notice of Compliance) Regulation relates to recoveries of lost revenue related to patent infringement proceedings in Canada. |
Income Taxes_
Income Taxes: | 9 Months Ended |
Sep. 30, 2018 | |
Income Taxes: | NOTE 19 – Income Taxes: In the third quarter of 2018, Teva recognized a tax benefit of $26 million, or 12%, on pre-tax pre-tax one-time In the first nine months of 2018, Teva recognized a tax benefit of $56 million on pre-tax pre-tax one-time The Company recognized the income tax effects of the Tax Cuts and Jobs Act (“TCJA”) in its audited consolidated financial statements included in the Company’s Annual Report on Form 10-K one-time on-going non-US The statutory Israeli corporate tax rate is 23% in 2018. Teva’s tax rate differs from the Israeli statutory tax rate, mainly due to generation of profits in various jurisdictions in which tax rates are different than the Israeli tax rate, tax benefits in Israel and other countries, as well as infrequent or nonrecurring items. |
Significant accounting polici_2
Significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Recently adopted and issued accounting pronouncements | Recently adopted accounting pronouncements On January 1, 2018, Teva adopted the new accounting standard ASC 606, Revenue from Contracts with Customers, and all the related amendments (“new revenue standard”) to all contracts using the modified retrospective method. The cumulative effect of initially applying the new revenue standard was immaterial. See note 9 for further discussion. 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 adopted the provisions of this update in the first quarter of 2018. The impact that this new standard has on Teva’s financial statements after adoption will depend on any future modification of share-based compensation. In February 2017, the FASB issued guidance on de-recognition de-recognition 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; contingent 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 interest in securitization transactions; and separately identifiable cash flows and application of predominance principle. The amendments should be applied retrospectively. Teva adopted the provisions of this update in the first quarter of 2018. This resulted in the reclassification of $962 million of beneficial interest in securitization transactions from operating activities to investing activities for the nine month period ended September 30, 2017. In January 2016, the FASB issued guidance which updates certain 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. Teva adopted the provisions of this update in the first quarter of 2018. Following the adoption, the Company recorded a $5 million opening balance reclassification from accumulated other comprehensive loss to retained earnings. See note 10. Recently issued accounting pronouncements, not yet adopted In August 2018, the FASB issued guidance that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use In August 2018, the FASB issued guidance that removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Certain disclosures required by this guidance will need to be applied on a retrospective basis and others on a prospective basis. The guidance will be effective for fiscal years beginning after December 15, 2019, although early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In July 2018, the FASB issued a codification improvement, which does not prescribe any new accounting guidance, but instead provides minor improvements and clarifications to various FASB accounting guidance. Certain updates are applicable immediately while others provide for a transition period until the next fiscal year beginning after December 15, 2018. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In June 2018, the FASB issued guidance which simplifies the accounting for non-employee In February 2018, the FASB issued guidance on the reclassification of certain tax effects from accumulated other comprehensive income. The guidance allows reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. This guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company does not expect that the adoption of this guidance will have a significant impact on its consolidated financial statements. In August 2017, the FASB issued guidance on derivatives and hedging, which expands and refines hedge accounting for both non-financial In June 2016, the FASB issued guidance on financial instruments. 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 guidance 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 clarification and implementation guidance. The guidance will become effective for interim and annual periods beginning on January 1, 2019 (early adoption is permitted). In January 2018, the FASB issued an update that permits an entity to elect an optional transition practical expedient to not evaluate land easements that existed or expired before the entity’s adoption of the new standard and that were not previously accounted for as leases. In July 2018, the FASB issued both codification improvements, which clarify how to apply certain aspects of the new lease standard and an update. The update provided to either adopt at the earliest period presented using a modified retrospective approach, or to continue applying the guidance under the current lease standard in the comparative periods presented in the consolidated financial statements. Companies that elect this option would record a cumulative-effect adjustment to the opening balance of retained earnings on the date of adoption. The Company expects to apply the guidance using the cumulative-effect approach, thereby applying the new guidance at the effective date, without adjusting the comparative periods and, if necessary, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company is performing a comprehensive evaluation of the impact of the adoption of this guidance, which includes assessing the Company’s lease portfolio, implementation of a new enterprise-wide lease management system to meet reporting requirements, assessing the impact to business processes and implementation of internal controls over financial reporting and related disclosure requirements. The Company is working closely with the software system developer, as the timely readiness of the lease software system is critical to ensure an efficient and effective adoption of the standard. Although the Company has not finalized its 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 |
Certain transactions (Tables)
Certain transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Major Classes of Assets and Liabilities Included as Held for Sale | The table below summarizes the major classes of assets and liabilities included as held for sale as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 (U.S. $ in millions) Inventories — 39 Property, plant and equipment, net (*) 41 16 Identifiable intangible assets, net — 236 Goodwill (*) 40 275 Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 81 $ 566 Other taxes and long-term liabilities — 38 Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets $ — $ 38 (*) Mainly comprised of certain facilities in Israel. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Inventories | Inventories, net of reserves, consisted of the following: September 30, December 31, (U.S. $ in millions) Finished products $ 2,679 $ 2,689 Raw and packaging materials 1,395 1,454 Products in process 609 597 Materials in transit and payments on account 183 184 $ 4,866 $ 4,924 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Property, Plant and Equipment, Net | Property, plant and equipment, net, consisted of the following: September 30, December 31, (U.S. $ in millions) Machinery and equipment $ 5,783 $ 5,809 Buildings 3,179 3,329 Computer equipment and other assets 2,115 2,016 Payments on account 538 634 Land (1) 361 390 11,976 12,178 Less—accumulated depreciation 4,875 4,505 $ 7,101 $ 7,673 (1) Land includes long-term leasehold rights in various locations, with useful lives between 30 and 99 years. |
Identifiable intangible assets
Identifiable intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Identifiable intangible assets | Identifiable intangible assets consisted of the following: Gross carrying amount net of Accumulated amortization Net carrying amount September 30, December 31, September 30, December 31, September 30, December 31, 2018 2017 2018 2017 2018 2017 (U.S. $ in millions) Product rights $ 21,094 $ 21,011 $ 9,132 $ 8,276 $ 11,962 $ 12,735 Trade names 610 617 82 55 528 562 Research and development in process 2,855 4,343 — — 2,855 4,343 Total $ 24,559 $ 25,971 $ 9,214 $ 8,331 $ 15,345 $ 17,640 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the period ended September 30, 2018 were as follows: Generics Specialty Other Total North Europe International Other Total (U.S. $ in millions) (U.S. $ in millions) Balance as of December 31, (1) $ 18,864 $ 8,464 $ 1,086 $ 28,414 $ — $ — $ — $ — $ — Relative fair value allocation (18,864 ) (8,464 ) (1,086 ) (28,414 ) 11,144 9,001 5,404 2,865 28,414 Balance as of January — — — — 11,144 9,001 5,404 2,865 28,414 Goodwill impairment (3) — — — — — — (300 ) — (300 ) Goodwill disposal (2) — — — — — (65 ) (14 ) — (79 ) Goodwill reclassified as assets to held for — — — — — — — (40 ) (40 ) Translation differences — — — — (21 ) (338 ) (50 ) (1 ) (410 ) Balance as of September (1) $ — $ — $ — $ — $ 11,123 $ 8,598 $ 5,040 $ 2,824 $ 27,585 (1) Accumulated goodwill impairment as of September 30, 2018 and December 31, 2017 was approximately $18.3 billion and $18.0 billion, respectively. (2) Due to the divestment of the women’s health business, the sale of Actavis Brazil and other activity. (3) Due to the goodwill impairment related to the Rimsa and/or Mexico reporting unit. |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of disaggregates revenues by major revenue streams | The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues see note 17. Three months ended September 30, 2018 North America Europe International Other activities Total (U.S. $ in millions) Sale of goods 1,902 1,210 525 166 3,803 Licensing arrangements 29 1 — 2 32 Distribution 333 1 149 — 483 Other 1 — 52 158 211 $ 2,265 $ 1,212 $ 726 $ 326 $ 4,529 Three months ended September 30, 2017 North America Europe International Other activities Total (U.S. $ in millions) Sale of goods 2,724 1,321 672 168 4,885 Licensing arrangements 25 — 1 1 27 Distribution 294 59 146 — 499 Other — — 63 143 206 $ 3,043 $ 1,380 $ 882 $ 312 $ 5,617 Nine months ended September 30, 2018 North America Europe International Other activities Total (U.S. $ in millions) Sale of goods 5,983 3,956 1,617 526 12,082 Licensing arrangements 91 19 21 6 137 Distribution 984 7 456 — 1,447 Other 1 — 171 457 629 $ 7,059 $ 3,982 $ 2,265 $ 989 $ 14,295 Nine months ended September 30, 2017 North America Europe International Other activities Total (U.S. $ in millions) Sale of goods 8,338 3,848 1,862 567 14,615 Licensing arrangements 249 2 36 4 291 Distribution 864 166 406 — 1,436 Other 1 — 181 463 645 $ 9,452 $ 4,016 $ 2,485 $ 1,034 $ 16,987 |
Summary of Sales Reserves and Allowances | SR&A to U.S. customers comprised approximately 84% of the Company’s total SR&A as of September 30, 2018, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the period ended September 30, 2018 were as follows: Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S.$ in millions) Balance at December 31, 2017 $ 196 $ 3,077 $ 1,908 $ 1,849 $ 780 $ 267 $ 7,881 $ 8,077 Provisions related to sales made in current year period 380 4,956 931 7,738 232 309 14,166 14,546 Provisions related to sales made in prior periods 7 (39 ) 17 3 21 (19 ) (17 ) (10 ) Credits and payments (412 ) (5,082 ) (1,288 ) (8,203 ) (364 ) (354 ) (15,291 ) (15,703 ) Translation differences — (20 ) (4 ) (3 ) (4 ) (7 ) (38 ) (38 ) Balance at September 30, 2018 $ 171 2,892 $ 1,564 $ 1,384 $ 665 $ 196 $ 6,701 $ 6,872 |
Accumulated other comprehensi_2
Accumulated other comprehensive loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Components and Changes Within, Accumulated Other Comprehensive Losses | The components of, and changes within, accumulated other comprehensive losses attributable to Teva are presented in the table below: Net Unrealized Gains/(Losses) Benefit Plans Foreign Available-for- Derivative Actuarial Total (U.S.$ in millions) Balance as of December 31, 2017 * $ (1,316 ) $ 1 $ (442 ) $ (91 ) $ (1,848 ) Other comprehensive income (loss) before reclassifications (562 ) — 54 — (508 ) Amounts reclassified to the statements of income — 21 2 23 Net other comprehensive income (loss) before tax (562 ) — 75 2 (485 ) Corresponding income tax — — — (2 ) (2 ) Net other comprehensive income (loss) after tax ** (562 ) — 75 — (487 ) Balance as of September 30, 2018 $ (1,878 ) $ 1 $ (367 ) $ (91 ) $ (2,335 ) * Following the adoption of ASU 2016-01, ** Amounts do not include a $15 million gain from foreign currency translation adjustments attributable to non-controlling Net Unrealized Gains/(Losses) Benefit Plans Foreign Available-for- Derivative Actuarial Total (U.S.$ in millions) Balance, December 31, 2016 $ (2,769 ) $ (7 ) $ (302 ) $ (81 ) $ (3,159 ) Other comprehensive income (loss) before reclassifications 1,124 56 (138 ) (9 ) 1,033 Amounts reclassified to the statements of income (52 ) (41 ) 20 2 (71 ) Net other comprehensive income (loss) before tax 1,072 15 (118 ) (7 ) 962 Corresponding income tax — 5 — (5 ) — Net other comprehensive income (loss) after tax * 1,072 20 (118 ) (12 ) 962 Balance, September 30, 2017 $ (1,697 ) $ 13 $ (420 ) $ (93 ) $ (2,197 ) * Amounts do not include a $64 million gain from foreign currency translation adjustments attributable to non-controlling |
Debt obligations (Tables)
Debt obligations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Short-term Debt | Short-term debt: Weighted average interest rate as of Maturity September 30, December 31, (U.S. $ in millions) Term loan JPY 28.3 billion (5) JPY LIBOR+0.25% 2018 $ — $ 251 Convertible debentures 0.25% 2026 * 514 514 Other 9.37% 2018 1 1 Current maturities of long-term liabilities 2,158 2,880 Total short term debt $ 2,673 $ 3,646 * Net-share |
Schedule of Senior Notes and Loans | Senior notes and loans: Weighted average interest Maturity September 30, December 31, % (U.S. $ in millions) Senior notes EUR 1,660 million (8) 0.38% 2020 $ 1,924 $ 2,095 Senior notes EUR 1,500 million 1.13% 2024 1,731 1,788 Senior notes EUR 1,300 million 1.25% 2023 1,501 1,550 Senior notes EUR 1,000 million (3) 2.88% 2019 — 1,199 Senior notes EUR 900 million (1) 4.50% 2025 1,045 — Senior notes EUR 750 million 1.63% 2028 863 891 Senior notes EUR 700 million (1) 3.25% 2022 812 — Senior notes EUR 700 million 1.88% 2027 810 837 Senior notes USD 3,500 million 3.15% 2026 3,493 3,492 Senior notes USD 3,000 million 2.20% 2021 2,997 2,996 Senior notes USD 3,000 million 2.80% 2023 2,993 2,992 Senior notes USD 1,700 million (8) 1.70% 2019 1,700 2,000 Senior notes USD 2,000 million 4.10% 2046 1,984 1,984 Senior notes USD 1,500 million (3) 1.40% 2018 — 1,500 Senior notes USD 1,250 million (2) 6.00% 2024 1,250 — Senior notes USD 1,250 million (2) 6.75% 2028 1,250 — Senior notes USD 844 million 2.95% 2022 862 864 Senior notes USD 789 million 6.15% 2036 782 781 Senior notes USD 700 million 2.25% 2020 700 700 Senior notes USD 613 million 3.65% 2021 622 624 Senior notes USD 588 million 3.65% 2021 587 587 Senior notes CHF 450 million 1.50% 2018 458 461 Senior notes CHF 350 million 0.50% 2022 357 360 Senior notes CHF 350 million 1.00% 2025 357 360 Senior notes CHF 300 million (9) 0.13% 2018 — 308 Fair value hedge accounting adjustments (24 ) (2 ) Total senior notes 29,054 28,367 Term loan USD 2.5 billion (4) LIBOR +1.1375% 2018 — 285 Term loan USD 2.5 billion (4) LIBOR +1.50% 2017-2020 — 2,000 Term loan JPY 58.5 billion (5) JPY LIBOR +0.55% 2022 — 519 Term loan JPY 35 billion (6) 1.42% 2019 — 311 Term loan JPY 35 billion (6) JPY LIBOR +0.3% 2018 — 311 Total loans — 3,426 Debentures USD 15 million (7) 7.20% 2018 — 15 Other 7.78% 2026 6 5 Total debentures and others 6 20 Less current maturities (2,158 ) (2,880 ) Derivative instruments 24 2 Less debt issuance costs (110 ) (106 ) Total senior notes and loans $ 26,816 $ 28,829 (1) In March 2018, Teva Pharmaceutical Finance Netherlands II B.V., a Teva finance subsidiary, issued senior notes in an aggregate principal amount of €1.6 billion. (2) In March 2018, Teva Pharmaceutical Finance Netherlands III B.V., a Teva finance subsidiary, issued senior notes in an aggregate principal amount of $2.5 billion. (3) In March 2018, Teva redeemed in full its $1.5 billion 1.4% senior notes due in July 2018 and its €1.0 billion 2.88% senior notes due in April 2019. (4) During the first quarter of 2018, Teva prepaid approximately $2.3 billion principal amount of the remaining term loan facilities. (5) During the first quarter of 2018, Teva prepaid in full JPY 86.8 billion principal amount of the outstanding term loan facilities of which JPY 28.3 billion were in short-term debt as of December 31, 2017. (6) During the first quarter of 2018, Teva prepaid in full JPY 70 billion of its 1.42% and JPY LIBOR+0.3% outstanding term loans. (7) During the first quarter of 2018, Teva prepaid in full $15 million of its outstanding debentures. (8) In September 2018, Teva consummated a cash tender offer for certain of its outstanding senior notes. As a result of the offer, Teva redeemed $300 million aggregate principal amount of its 1.7% senior notes and €90 million principal amount of its 0.38% senior notes. (9) In July 2018, Teva repaid at maturity CHF 300 million of its 0.13% senior notes. |
Fair value measurement_ (Tables
Fair value measurement: (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Financial Items Carried at Fair Value | Financial items carried at fair value as of September 30, 2018 and December 31, 2017 are classified in the tables below in one of the three categories described above: September 30, 2018 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 302 $ — $ — $ 302 Cash, deposits and other 1,573 — — 1,573 Investment in securities: Equity securities 53 — — 53 Other, mainly debt securities 2 — 18 20 Derivatives: Asset derivatives—options and forward contracts — 23 — 23 Asset derivatives—cross currency swaps — 42 — 42 Liabilities derivatives—options and forward contracts — (14 ) — (14 ) Liabilities derivatives—interest rate and cross-currency swaps — (82 ) — (82 ) Contingent consideration* — — (717 ) (717 ) Total $ 1,930 $ (31 ) $ (699 ) $ 1,200 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 Other, mainly debt securities 14 — 18 32 Derivatives: Asset derivatives—options and forward contracts — 17 — 17 Asset derivatives—cross-currency swaps — 25 — 25 Liability 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 * Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. |
Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs | The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs: Nine months ended (U.S. $ in millions) Fair value at the beginning of the period $ (717 ) Adjustments to provisions for contingent consideration: Actavis Generics transaction (21 ) Labrys transaction (17 ) Eagle transaction (46 ) Settlement of contingent consideration: Eagle transaction 102 Fair value at the end of the period $ (699 ) |
Summary of Financial Instrument Measured on a Basis Other Than Fair Value | Financial instruments measured on a basis other than fair value mostly consist of senior notes and convertible senior debentures and are presented in the table below in terms of fair value: Estimated fair value* September 30, December 31, 2018 2017 (U.S. $ in millions) Senior notes included under senior notes and loans $ 24,775 $ 23,459 Senior notes and convertible senior debentures included under short-term debt 2,614 2,713 Total $ 27,389 $ 26,172 * The fair value was estimated based on quoted market prices, where available. |
Derivative instruments and he_2
Derivative instruments and hedging activities: (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Notional Amounts for Hedged Items, Designated as Hedge Accounting | The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting: September 30, December 31, (U.S. $ in millions) Cross-currency swap—cash flow hedge $ 588 $ 588 Cross-currency swap—net investment hedge 1,000 1,000 Interest rate swap—fair value hedge 500 500 |
Summary of Classification and Fair Values of Derivative Instruments | The following table summarizes the classification and fair values of derivative instruments: Fair value Designated as hedging Not designated as hedging September 30, December 31, September 30, December 31, Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ — $ — $ 23 $ 17 Other non-current Cross-currency swaps—cash flow hedge 42 25 — — Liability derivatives: Other current liabilities: Option and forward contracts — — (14 ) (15 ) Other taxes and long-term liabilities: Cross-currency swaps—net investment hedge (58 ) (96 ) — — Senior notes and loans: Interest rate swaps—fair value hedge (24 ) (2 ) — — |
Other asset impairments, rest_2
Other asset impairments, restructuring and other items (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of other impairments, restructuring and other items | Other impairments, restructuring and other items consisted of the following: Three months ended Nine months ended 2018 2017 2018 2017 (U.S. $ in millions) Restructuring expenses $ 88 $ 72 $ 442 $ 300 Integration and acquisition expenses 4 31 9 87 Contingent consideration 29 18 84 179 Impairments of long-lived assets 521 408 1,501 564 Other 16 21 44 79 Total $ 658 $ 550 $ 2,080 $ 1,209 |
Components of costs associated with restructuring plan including costs related to exit and disposal activities | The following tables provide the components of costs associated with Teva’s restructuring plan, including other costs associated with Teva’s restructuring plan and recorded under different items: Three months ended September 30, 2018 2017 (U.S. $ in millions) Restructuring Employee termination $ 62 $ 54 Other 26 18 Total $ 88 $ 72 Three months ended September 30, 2018 2017 (U.S. $ in millions) Other Cost of sales $ 8 $ 3 Selling and marketing expenses — 3 Other items 16 — Nine months ended September 30, 2018 2017 (U.S. $ in millions) Restructuring Employee termination $ 380 $ 228 Other 62 72 Total $ 442 $ 300 Nine months ended September 30, 2018 2017 (U.S. $ in millions) Other Cost of sales $ 23 $ 5 Selling and marketing expenses — 3 Other items 54 — |
Components of and Changes in Company's Restructuring Accruals | The following table provides the components of and changes in the Company’s restructuring accruals: Employee Other Total (U.S. $ in millions) Balance as of January 1, 2018 $ (294 ) $ (17 ) $ (311 ) Provision (380 ) (62 ) (442 ) Utilization and other* 418 51 469 Balance as of September 30, 2018 $ (256 ) $ (28 ) $ (284 ) * Includes adjustments for foreign currency translation. |
Segments_ (Tables)
Segments: (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment information | a. Segment information: North America Europe International Markets Three months ended September 30, 2018 2017 2018 2017 2018 2017 (U.S. $ in millions) Revenues $ 2,265 $ 3,043 $ 1,212 $ 1,380 $ 726 $ 882 Gross profit 1,232 1,833 683 721 301 351 R&D expenses 158 230 62 101 21 35 S&M expenses 301 325 249 289 120 158 G&A expenses 128 149 74 90 37 51 Other income (loss) (4 ) (1 ) 1 — — (3 ) Segment profit $ 649 $ 1,130 $ 297 $ 241 $ 123 $ 110 North America Europe International Markets Nine months ended September 30, 2018 2017 2018 2017 2018 2017 (U.S. $ in millions) Revenues $ 7,059 $ 9,452 $ 3,982 $ 4,016 $ 2,265 $ 2,485 Gross profit 3,867 5,971 2,211 2,147 942 1,043 R&D expenses 528 777 208 312 70 129 S&M expenses 902 1,158 741 864 384 503 G&A expenses 357 432 243 258 115 144 Other income (206 ) (82 ) (1 ) (15 ) (11 ) (4 ) Segment profit $ 2,286 $ 3,686 $ 1,020 $ 728 $ 384 $ 271 Three months ended Nine months ended 2018 2017 2018 2017 (U.S. $ in millions) (U.S. $ in millions) North America profit $ 649 $ 1,130 $ 2,286 $ 3,686 Europe profit 297 241 1,020 728 International Markets profit 123 110 384 271 Total segment profit 1,069 1,481 3,690 4,685 Profit (loss) of other activities 35 (11 ) 87 3 1,104 1,470 3,777 4,688 Amounts not allocated to segments: Amortization 297 357 909 1,088 Other asset impairments, restructuring and other items 658 550 2,080 1,209 Goodwill impairment — — 300 6,100 Gain on divestitures, net of divestitures related costs (31 ) — (114 ) — Inventory step-up — — — 67 Other R&D expenses 60 150 82 176 Costs related to regulatory actions taken in facilities 1 (1 ) 6 48 Legal settlements and loss contingencies 19 (20 ) (1,239 ) 324 Other unallocated amounts 84 56 226 143 Consolidated operating income (loss) 16 378 1,527 (4,467 ) Financial expenses, net 229 259 736 704 Consolidated income (loss) before income taxes $ (213 ) $ 119 $ 791 $ (5,171 ) |
Schedule of Net Sales by Product Line | Segment revenues by major products and activities: The following tables present revenues by major products and activities for the nine and three months ended September 30, 2018 and 2017: Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 (U.S. $ in millions) (U.S. $ in millions) North America segment Generic products $ 922 $ 1,233 $ 2,957 $ 3,979 COPAXONE 463 819 1,403 2,475 BENDEKA / TREANDA 161 179 502 498 ProAir 107 155 352 399 QVAR 36 83 173 265 AUSTEDO 62 6 136 8 Distribution 333 294 984 864 Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 (U.S. $ in millions) (U.S. $ in millions) Europe segment Generic products $ 845 $ 871 $ 2,749 $ 2,543 COPAXONE 124 150 417 440 Respiratory products 93 90 312 258 Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 (U.S. $ in millions) (U.S. $ in millions) International Markets segment Generic products $ 498 $ 629 $ 1,523 $ 1,720 COPAXONE 14 18 52 65 Distribution 149 146 456 406 |
Other income_ (Tables)
Other income: (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Other Income | Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (U.S. $ in millions) (U.S. $ in millions) Gain on divestitures, net of divestitures related costs (1) $ 31 — $ 114 — Section 8 and similar payments (2) 1 — 195 83 Gain on sale of assets 1 — 9 — Other, net 2 4 16 17 Total other income $ 35 $ 4 $ 334 $ 100 (1) Mainly related to the divestment of the women’s health business and the PGT dissolution in 2018. See note 3. (2) Section 8 of the Patented Medicines (Notice of Compliance) Regulation relates to recoveries of lost revenue related to patent infringement proceedings in Canada. |
Significant accounting polici_3
Significant accounting policies - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Significant Accounting Policies [Line Items] | ||
Net cash provided by operating activities | $ 2,079 | $ 1,366 |
Net cash provided by investing activities | 1,792 | 1,534 |
Accounting Standards Update 2016-15 [Member] | ||
Significant Accounting Policies [Line Items] | ||
Net cash provided by operating activities | (962) | |
Net cash provided by investing activities | $ 962 | |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Significant Accounting Policies [Line Items] | ||
New accounting principle adoption | (5) | |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Significant Accounting Policies [Line Items] | ||
New accounting principle adoption | $ 5 |
Certain Transactions - Business
Certain Transactions - Business Acquisitions - Additional Information (Detail) shares in Millions, $ in Millions | Jan. 31, 2018USD ($) | Jan. 08, 2018USD ($) | May 12, 2017USD ($) | Oct. 03, 2016USD ($) | Aug. 02, 2016USD ($)shares | Mar. 03, 2016USD ($) | Dec. 31, 2016USD ($) | Nov. 30, 2016USD ($) | Sep. 30, 2016USD ($)Lawsuit | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 17, 2017USD ($) | Oct. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||
Net gain on sale | $ 31 | $ 114 | ||||||||||||||||
Impairment of equity investment | 103 | |||||||||||||||||
Other Income | 35 | $ 4 | 334 | $ 100 | ||||||||||||||
Allergan plc [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Allergan one time payment to Teva | $ 703 | |||||||||||||||||
P&G [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Other Income | 50 | |||||||||||||||||
Women Health [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 329 | |||||||||||||||||
Net gain on sale | 93 | |||||||||||||||||
Cost of sale of business | $ 2 | |||||||||||||||||
Women Health [Member] | CVC Capital Partners Fund VI [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Sale agreement with CVC capital partners fund VI | $ 703 | |||||||||||||||||
Actavis [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash consideration | $ 33,400 | |||||||||||||||||
Shares issued as consideration for the acquisition | shares | 100.3 | |||||||||||||||||
Cash consideration working capital true up | 1,400 | 1,400 | ||||||||||||||||
Anda [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash consideration | $ 500 | |||||||||||||||||
Rimsa [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash consideration | $ 2,300 | |||||||||||||||||
Number of lawsuits filed | Lawsuit | 2 | |||||||||||||||||
Alder [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Upfront payment | $ 25 | |||||||||||||||||
Collaborative agreement milestone payments | $ 175 | |||||||||||||||||
Otsuka [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Upfront payment | $ 50 | |||||||||||||||||
Attenukine [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Upfront payment | $ 30 | |||||||||||||||||
Additional considerations | $ 280 | |||||||||||||||||
Ninlaro [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Upfront payment | $ 150 | |||||||||||||||||
Payment | $ 150 | |||||||||||||||||
Celltrion [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Refundable payment | $ 60 | |||||||||||||||||
Total associated cost | $ 160 | |||||||||||||||||
Regeneron [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Upfront payment | $ 250 | |||||||||||||||||
Collaborative agreement milestone payments | $ 35 | $ 25 | ||||||||||||||||
Research and development costs | $ 1,000 | |||||||||||||||||
Collaborative agreement, provision for milestone payments | $ 60 | $ 60 | ||||||||||||||||
New Chapter Inc [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Impairment of equity investment | 94 | |||||||||||||||||
India [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Impairment | $ 64 |
Certain Transactions - Busine_2
Certain Transactions - Business Acquisitions - Summary of Major Classes of Assets and Liabilities Included as Held for Sale (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventories | $ 4,866 | $ 4,924 |
Property, plant and equipment, net | 7,101 | 7,673 |
Goodwill | 27,585 | 28,414 |
Total assets | 65,061 | 70,615 |
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets | 45,927 | 51,870 |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventories | 39 | |
Property, plant and equipment, net | 41 | 16 |
Identifiable intangible assets, net | 236 | |
Goodwill | 40 | 275 |
Total assets | $ 81 | 566 |
Other taxes and long-term liabilities | 38 | |
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets | $ 38 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventories [Line Items] | ||
Finished products | $ 2,679 | $ 2,689 |
Raw and packaging materials | 1,395 | 1,454 |
Products in process | 609 | 597 |
Materials in transit and payments on account | 183 | 184 |
Inventories | $ 4,866 | $ 4,924 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | $ 5,783 | $ 5,809 |
Buildings | 3,179 | 3,329 |
Computer equipment and other assets | 2,115 | 2,016 |
Payments on account | 538 | 634 |
Land | 361 | 390 |
Subtotal | 11,976 | 12,178 |
Less-accumulated depreciation | 4,875 | 4,505 |
Property, Plant and Equipment, Net, Total | $ 7,101 | $ 7,673 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment, Net (Parenthetical) (Detail) - Leasehold Improvements [Member] | 9 Months Ended |
Sep. 30, 2018 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Capitalized land lease estimated useful lives maximum | 30 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Capitalized land lease estimated useful lives maximum | 99 years |
Identifiable Intangible Asset_2
Identifiable Intangible Assets - Schedule of Finite Lived Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | $ 24,559 | $ 25,971 |
Accumulated amortization | 9,214 | 8,331 |
Net carrying amount | 15,345 | 17,640 |
Identifiable product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 21,094 | 21,011 |
Accumulated amortization | 9,132 | 8,276 |
Net carrying amount | 11,962 | 12,735 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 610 | 617 |
Accumulated amortization | 82 | 55 |
Net carrying amount | 528 | 562 |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 2,855 | 4,343 |
Net carrying amount | $ 2,855 | $ 4,343 |
Identifiable Intangible Asset_3
Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets useful life | 11 years | |||
Amortization of intangible assets | $ 297 | $ 357 | $ 909 | $ 1,088 |
Impairment of intangible assets excluding goodwill | $ 519 | $ 355 | 1,246 | $ 409 |
IPR&D to product rights | 553 | |||
Mesalamine [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
IPR&D to product rights | 103 | |||
Fremanezumab [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
IPR&D to product rights | $ 444 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||||
Beginning balance | $ 28,414 | $ 28,414 | |||
Goodwill impairment | (300) | $ (6,100) | |||
Ending balance | $ 27,585 | 27,585 | $ 28,414 | ||
Europe [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | 0 | ||||
International Markets [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | 0 | 0 | |||
Operating Segments [Member] | |||||
Goodwill [Line Items] | |||||
Beginning balance | 28,414 | 28,414 | |||
Relative fair value allocation | (28,414) | ||||
Operating Segments [Member] | Generics [Member] | |||||
Goodwill [Line Items] | |||||
Beginning balance | 18,864 | 18,864 | |||
Relative fair value allocation | (18,864) | ||||
Operating Segments [Member] | Specialty [Member] | |||||
Goodwill [Line Items] | |||||
Beginning balance | 8,464 | 8,464 | |||
Relative fair value allocation | (8,464) | ||||
Operating Segments [Member] | Other Segments [Member] | |||||
Goodwill [Line Items] | |||||
Beginning balance | $ 1,086 | 1,086 | |||
Relative fair value allocation | (1,086) | ||||
Reportable Geographical Components [Member] | |||||
Goodwill [Line Items] | |||||
Beginning balance | 28,414 | 28,414 | |||
Goodwill impairment | (300) | ||||
Relative fair value allocation | 28,414 | ||||
Goodwill disposal | (79) | ||||
Goodwill reclassified as assets to held for sale | (40) | ||||
Translation differences | (410) | ||||
Ending balance | 27,585 | 27,585 | 28,414 | ||
Reportable Geographical Components [Member] | Other Segments [Member] | |||||
Goodwill [Line Items] | |||||
Beginning balance | 2,865 | 2,865 | |||
Relative fair value allocation | 2,865 | ||||
Goodwill reclassified as assets to held for sale | (40) | ||||
Translation differences | (1) | ||||
Ending balance | 2,824 | 2,824 | 2,865 | ||
Reportable Geographical Components [Member] | North America [Member] | |||||
Goodwill [Line Items] | |||||
Beginning balance | 11,144 | 11,144 | |||
Relative fair value allocation | 11,144 | ||||
Translation differences | (21) | ||||
Ending balance | 11,123 | 11,123 | 11,144 | ||
Reportable Geographical Components [Member] | Europe [Member] | |||||
Goodwill [Line Items] | |||||
Beginning balance | 9,001 | 9,001 | |||
Relative fair value allocation | 9,001 | ||||
Goodwill disposal | (65) | ||||
Translation differences | (338) | ||||
Ending balance | 8,598 | 8,598 | 9,001 | ||
Reportable Geographical Components [Member] | International Markets [Member] | |||||
Goodwill [Line Items] | |||||
Beginning balance | $ 5,404 | 5,404 | |||
Goodwill impairment | (300) | ||||
Relative fair value allocation | 5,404 | ||||
Goodwill disposal | (14) | ||||
Translation differences | (50) | ||||
Ending balance | $ 5,040 | $ 5,040 | $ 5,404 |
Goodwill - Schedule of Change_2
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Parenthetical) (Detail) - USD ($) $ in Billions | Sep. 30, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Accumulated goodwill impairment | $ 18.3 | $ 18 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($)Segment | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Goodwill [Line Items] | |||||||
Number of operating segments | Segment | 3 | ||||||
Goodwill impairment | $ 300 | $ 6,100 | |||||
Remaining goodwill allocated to reporting unit | $ 27,585 | $ 27,585 | $ 28,414 | ||||
Possible increase in risk free interest rate | 0.50% | 0.50% | |||||
Europe [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment | $ 0 | ||||||
Risk of change in fair value due to change in risk free interest rate | $ 871 | ||||||
Risk of impairment loss due to change in risk free interest rate | 243 | ||||||
International Markets [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment | $ 0 | $ 0 | |||||
Risk of change in fair value due to change in risk free interest rate | 653 | ||||||
Risk of impairment loss due to change in risk free interest rate | $ 605 | ||||||
North America [Member] | |||||||
Goodwill [Line Items] | |||||||
Percentage difference between estimated fair value and estimated carrying value | 36.00% | 36.00% | |||||
Other Segments [Member] | |||||||
Goodwill [Line Items] | |||||||
Percentage difference between estimated fair value and estimated carrying value | 43.00% | 43.00% | |||||
Rimsa [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment | $ 180 | ||||||
Remaining goodwill allocated to reporting unit | $ 706 | ||||||
Mexico [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill impairment | $ 120 | ||||||
Maximum [Member] | Europe [Member] | |||||||
Goodwill [Line Items] | |||||||
Percentage difference between estimated fair value and estimated carrying value | 6.00% | 6.00% | |||||
Maximum [Member] | International Markets [Member] | |||||||
Goodwill [Line Items] | |||||||
Percentage difference between estimated fair value and estimated carrying value | 2.00% | 6.00% | 6.00% | 2.00% | |||
Minimum [Member] | Europe [Member] | |||||||
Goodwill [Line Items] | |||||||
Percentage difference between estimated fair value and estimated carrying value | 4.00% | 4.00% | |||||
Minimum [Member] | International Markets [Member] | |||||||
Goodwill [Line Items] | |||||||
Percentage difference between estimated fair value and estimated carrying value | 1.00% | 2.00% | 2.00% | 1.00% |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted average of mandatory convertible preferred shares | 66 | 59 | 68 | 59 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue Recognition [Line Items] | ||||
Royalty income | $ 31 | $ 27 | $ 82 | $ 239 |
United States [Member] | ||||
Revenue Recognition [Line Items] | ||||
Percentage sales reserves and allowances to U.S. customers | 84.00% | |||
Minimum [Member] | ||||
Revenue Recognition [Line Items] | ||||
Credit terms to customers | 30 days | |||
Maximum [Member] | ||||
Revenue Recognition [Line Items] | ||||
Credit terms to customers | 90 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 4,529 | $ 5,617 | $ 14,295 | $ 16,987 |
Sale of Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,803 | 4,885 | 12,082 | 14,615 |
Licensing Arrangements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 32 | 27 | 137 | 291 |
Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 483 | 499 | 1,447 | 1,436 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 211 | 206 | 629 | 645 |
International Markets [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 726 | 882 | 2,265 | 2,485 |
International Markets [Member] | Sale of Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 525 | 672 | 1,617 | 1,862 |
International Markets [Member] | Licensing Arrangements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1 | 21 | 36 | |
International Markets [Member] | Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 149 | 146 | 456 | 406 |
International Markets [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 52 | 63 | 171 | 181 |
Other Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 326 | 312 | 989 | 1,034 |
Other Activities [Member] | Sale of Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 166 | 168 | 526 | 567 |
Other Activities [Member] | Licensing Arrangements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2 | 1 | 6 | 4 |
Other Activities [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 158 | 143 | 457 | 463 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,265 | 3,043 | 7,059 | 9,452 |
North America [Member] | Sale of Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,902 | 2,724 | 5,983 | 8,338 |
North America [Member] | Licensing Arrangements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 29 | 25 | 91 | 249 |
North America [Member] | Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 333 | 294 | 984 | 864 |
North America [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1 | 1 | 1 | |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,212 | 1,380 | 3,982 | 4,016 |
Europe [Member] | Sale of Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,210 | 1,321 | 3,956 | 3,848 |
Europe [Member] | Licensing Arrangements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1 | 19 | 2 | |
Europe [Member] | Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1 | $ 59 | $ 7 | $ 166 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Sales Reserves and Allowances (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue Recognition [Line Items] | |
Sales reserves and allowances, beginning balance | $ 8,077 |
Provisions related to sales made in current year period | 14,546 |
Provisions related to sales made in prior periods | (10) |
Credits and payments | (15,703) |
Translation differences | (38) |
Sales reserves and allowances, ending balance | 6,872 |
Reserves Included in Accounts Receivable, Net [Member] | |
Revenue Recognition [Line Items] | |
Sales reserves and allowances, beginning balance | 196 |
Provisions related to sales made in current year period | 380 |
Provisions related to sales made in prior periods | 7 |
Credits and payments | (412) |
Sales reserves and allowances, ending balance | 171 |
Rebates [Member] | |
Revenue Recognition [Line Items] | |
Sales reserves and allowances, beginning balance | 3,077 |
Provisions related to sales made in current year period | 4,956 |
Provisions related to sales made in prior periods | (39) |
Credits and payments | (5,082) |
Translation differences | (20) |
Sales reserves and allowances, ending balance | 2,892 |
Medicaid and Other Governmental Allowances [Member] | |
Revenue Recognition [Line Items] | |
Sales reserves and allowances, beginning balance | 1,908 |
Provisions related to sales made in current year period | 931 |
Provisions related to sales made in prior periods | 17 |
Credits and payments | (1,288) |
Translation differences | (4) |
Sales reserves and allowances, ending balance | 1,564 |
Chargebacks [Member] | |
Revenue Recognition [Line Items] | |
Sales reserves and allowances, beginning balance | 1,849 |
Provisions related to sales made in current year period | 7,738 |
Provisions related to sales made in prior periods | 3 |
Credits and payments | (8,203) |
Translation differences | (3) |
Sales reserves and allowances, ending balance | 1,384 |
Returns [Member] | |
Revenue Recognition [Line Items] | |
Sales reserves and allowances, beginning balance | 780 |
Provisions related to sales made in current year period | 232 |
Provisions related to sales made in prior periods | 21 |
Credits and payments | (364) |
Translation differences | (4) |
Sales reserves and allowances, ending balance | 665 |
Other [Member] | |
Revenue Recognition [Line Items] | |
Sales reserves and allowances, beginning balance | 267 |
Provisions related to sales made in current year period | 309 |
Provisions related to sales made in prior periods | (19) |
Credits and payments | (354) |
Translation differences | (7) |
Sales reserves and allowances, ending balance | 196 |
Total Reserves Included in Sales Reserves and Allowances [Member] | |
Revenue Recognition [Line Items] | |
Sales reserves and allowances, beginning balance | 7,881 |
Provisions related to sales made in current year period | 14,166 |
Provisions related to sales made in prior periods | (17) |
Credits and payments | (15,291) |
Translation differences | (38) |
Sales reserves and allowances, ending balance | $ 6,701 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Loss) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 17,359 | |
Ending Balance | 17,730 | |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1,316) | $ (2,769) |
Other comprehensive income (loss) before reclassifications | (562) | 1,124 |
Amounts reclassified to the statements of income | (52) | |
Net other comprehensive income (loss) before tax | (562) | 1,072 |
Net other comprehensive income (loss) after tax | (562) | 1,072 |
Ending Balance | (1,878) | (1,697) |
Available-for-sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 1 | (7) |
Other comprehensive income (loss) before reclassifications | 56 | |
Amounts reclassified to the statements of income | (41) | |
Net other comprehensive income (loss) before tax | 15 | |
Corresponding income tax | 5 | |
Net other comprehensive income (loss) after tax | 20 | |
Ending Balance | 1 | 13 |
Derivative Financial Instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (442) | (302) |
Other comprehensive income (loss) before reclassifications | 54 | (138) |
Amounts reclassified to the statements of income | 21 | 20 |
Net other comprehensive income (loss) before tax | 75 | (118) |
Net other comprehensive income (loss) after tax | 75 | (118) |
Ending Balance | (367) | (420) |
Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (91) | (81) |
Other comprehensive income (loss) before reclassifications | (9) | |
Amounts reclassified to the statements of income | 2 | 2 |
Net other comprehensive income (loss) before tax | 2 | (7) |
Corresponding income tax | (2) | (5) |
Net other comprehensive income (loss) after tax | (12) | |
Ending Balance | (91) | (93) |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1,848) | (3,159) |
Other comprehensive income (loss) before reclassifications | (508) | 1,033 |
Amounts reclassified to the statements of income | 23 | (71) |
Net other comprehensive income (loss) before tax | (485) | 962 |
Corresponding income tax | (2) | |
Net other comprehensive income (loss) after tax | (487) | 962 |
Ending Balance | $ (2,335) | $ (2,197) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income/(Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Foreign Currency Translation Adjustments Attributable to Non-controlling Interests [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation attributable to non-controlling interests | $ 15 | $ 64 |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Opening balance reclassification | 5 | |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Opening balance reclassification | $ (5) |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Current maturities of long-term liabilities | $ 2,158 | $ 2,880 |
Total short term debt | $ 2,673 | 3,646 |
Term loan JPY 28.3 billion [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2,018 | |
Short-term borrowings | $ 251 | |
Term loan JPY 28.3 billion [Member] | London Interbank Offered Rate (LIBOR) [Member] | Japan, Yen | ||
Debt Instrument [Line Items] | ||
Description of Variable Rate Basis | JPY LIBOR+0.25% | |
Basis Spread on Variable Rate | 0.25% | |
Convertible debentures [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 0.25% | |
Maturity | 2,026 | |
Short-term borrowings | $ 514 | $ 514 |
Short Term Debt Other [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 9.37% | |
Maturity | 2,018 | |
Short-term borrowings | $ 1 | $ 1 |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Short-term Debt (Parenthetical) (Detail) ¥ in Billions | Sep. 30, 2018JPY (¥) |
Term loan JPY 28.3 billion [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | ¥ 28.3 |
Debt Obligations - Schedule o_3
Debt Obligations - Schedule of Senior Notes and Loans (Detail) $ in Millions, ¥ in Billions | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017JPY (¥) | |
Debt Instrument [Line Items] | |||
Total senior notes | $ 29,054 | $ 28,367 | |
Total loans | 3,426 | ||
Other | 6 | 20 | |
Less current maturities | (2,158) | (2,880) | |
Derivative instruments | 24 | 2 | |
Less debt issuance costs | (110) | (106) | |
Total senior notes and loans | $ 26,816 | 28,829 | |
'Senior notes EUR 1,750 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 0.38% | ||
Maturity | 2,020 | ||
Total senior notes | $ 1,924 | 2,095 | |
Senior notes EUR 1,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.13% | ||
Maturity | 2,024 | ||
Total senior notes | $ 1,731 | 1,788 | |
Senior notes EUR 1,300 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.25% | ||
Maturity | 2,023 | ||
Total senior notes | $ 1,501 | 1,550 | |
Senior notes EUR 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.88% | ||
Maturity | 2,019 | ||
Total senior notes | 1,199 | ||
Senior notes EUR 900 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 4.50% | ||
Maturity | 2,025 | ||
Total senior notes | $ 1,045 | ||
Senior notes EUR 750 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.63% | ||
Maturity | 2,028 | ||
Total senior notes | $ 863 | 891 | |
Senior notes EUR 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.25% | ||
Maturity | 2,022 | ||
Total senior notes | $ 812 | ||
Senior notes EUR 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.88% | ||
Maturity | 2,027 | ||
Total senior notes | $ 810 | 837 | |
Senior notes USD 3,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.15% | ||
Maturity | 2,026 | ||
Total senior notes | $ 3,493 | 3,492 | |
Senior notes USD 3,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.20% | ||
Maturity | 2,021 | ||
Total senior notes | $ 2,997 | 2,996 | |
Senior notes USD 3,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.80% | ||
Maturity | 2,023 | ||
Total senior notes | $ 2,993 | 2,992 | |
'Senior notes USD 2,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.70% | ||
Maturity | 2,019 | ||
Total senior notes | $ 1,700 | 2,000 | |
Senior notes USD 2,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 4.10% | ||
Maturity | 2,046 | ||
Total senior notes | $ 1,984 | 1,984 | |
Senior notes USD 1,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.40% | ||
Maturity | 2,018 | ||
Total senior notes | 1,500 | ||
Senior notes USD 1250 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.00% | ||
Maturity | 2,024 | ||
Total senior notes | $ 1,250 | ||
Senior notes USD 1250 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.75% | ||
Maturity | 2,028 | ||
Total senior notes | $ 1,250 | ||
Senior notes USD 844 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.95% | ||
Maturity | 2,022 | ||
Total senior notes | $ 862 | 864 | |
Senior notes USD 789 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.15% | ||
Maturity | 2,036 | ||
Total senior notes | $ 782 | 781 | |
Senior notes USD 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.25% | ||
Maturity | 2,020 | ||
Total senior notes | $ 700 | 700 | |
Senior notes USD 613 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.65% | ||
Maturity | 2,021 | ||
Total senior notes | $ 622 | 624 | |
Senior notes USD 588 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.65% | ||
Maturity | 2,021 | ||
Total senior notes | $ 587 | 587 | |
Senior notes CHF 450 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.50% | ||
Maturity | 2,018 | ||
Total senior notes | $ 458 | 461 | |
Senior notes CHF 350 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 0.50% | ||
Maturity | 2,022 | ||
Total senior notes | $ 357 | 360 | |
Senior notes CHF 350 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.00% | ||
Maturity | 2,025 | ||
Total senior notes | $ 357 | 360 | |
Senior notes CHF 300 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 0.13% | ||
Maturity | 2,018 | ||
Total senior notes | 308 | ||
Hedge Accounting Adjustments [Member] | |||
Debt Instrument [Line Items] | |||
Total senior notes | $ (24) | (2) | |
Term loan USD 2.5 billion [Member] | |||
Debt Instrument [Line Items] | |||
Maturity | 2,018 | ||
Total loans | 285 | ||
Term loan USD 2.5 billion [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Description of Variable Rate Basis | LIBOR +1.1375% | ||
Basis Spread on Variable Rate | 1.1375% | ||
Term loan USD 2.5 billion [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Start | 2,017 | ||
Maturity End | 2,020 | ||
Total loans | 2,000 | ||
Term loan USD 2.5 billion [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Description of Variable Rate Basis | LIBOR +1.50% | ||
Basis Spread on Variable Rate | 1.50% | ||
Term loan JPY 58.5 billion [Member] | |||
Debt Instrument [Line Items] | |||
Maturity | 2,022 | ||
Total loans | 519 | ||
Less current maturities | ¥ | ¥ (28.3) | ||
Term loan JPY 58.5 billion [Member] | London Interbank Offered Rate (LIBOR) [Member] | Japan, Yen | |||
Debt Instrument [Line Items] | |||
Description of Variable Rate Basis | JPY LIBOR +0.55% | ||
Basis Spread on Variable Rate | 0.55% | ||
Term loan JPY 35 billion [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.42% | ||
Maturity | 2,019 | ||
Total loans | 311 | ||
Term loan JPY 35 billion [Member] | |||
Debt Instrument [Line Items] | |||
Maturity | 2,018 | ||
Total loans | 311 | ||
Term loan JPY 35 billion [Member] | London Interbank Offered Rate (LIBOR) [Member] | Japan, Yen | |||
Debt Instrument [Line Items] | |||
Description of Variable Rate Basis | JPY LIBOR +0.3% | ||
Basis Spread on Variable Rate | 0.30% | ||
Debentures USD 15 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 7.20% | ||
Maturity | 2,018 | ||
Other | 15 | ||
Other Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 7.78% | ||
Maturity | 2,026 | ||
Other | $ 6 | $ 5 |
Debt Obligations - Schedule o_4
Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail) € in Millions, SFr in Millions, $ in Millions, ¥ in Billions | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018JPY (¥) | Sep. 30, 2018CHF (SFr) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) |
'Senior notes EUR 1,750 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | € | € 1,660 | |||||
Senior notes EUR 1,500 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | € | 1,500 | |||||
Senior notes EUR 1,300 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | € | 1,300 | |||||
Senior notes EUR 1,000 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | € | 1,000 | € 1,000 | ||||
Senior notes EUR 900 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | € | 900 | |||||
Senior notes EUR 750 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | € | 750 | |||||
Senior notes EUR 700 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | € | 700 | |||||
Senior notes EUR 700 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | € | € 700 | |||||
Senior notes USD 3,500 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | $ 3,500 | |||||
Senior notes USD 3,000 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 3,000 | |||||
Senior notes USD 3,000 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 3,000 | |||||
'Senior notes USD 2,000 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 1,700 | |||||
Senior notes USD 2,000 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 2,000 | |||||
Senior notes USD 1,500 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 1,500 | $ 1,500 | ||||
Senior notes USD 1250 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 1,250 | |||||
Senior notes USD 1250 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 1,250 | |||||
Senior notes USD 844 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 844 | |||||
Senior notes USD 789 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 789 | |||||
Senior notes USD 700 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 700 | |||||
Senior notes USD 613 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 613 | |||||
Senior notes USD 588 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 588 | |||||
Senior notes CHF 450 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | SFr | SFr 450 | |||||
Senior notes CHF 350 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | SFr | 350 | |||||
Senior notes CHF 350 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | SFr | 350 | |||||
Senior notes CHF 300 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | SFr | SFr 300 | |||||
Term loan USD 2.5 billion [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 2,500 | |||||
Term loan USD 2.5 billion [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 2,500 | |||||
Term loan JPY 58.5 billion [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | ¥ | ¥ 58.5 | |||||
Term loan JPY 35 billion [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | ¥ | 35 | |||||
Term loan JPY 35 billion [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | ¥ | ¥ 35 | |||||
Debentures USD 15 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | $ 15 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions, SFr in Millions, $ in Millions, ¥ in Billions | 1 Months Ended | 3 Months Ended | |||||||||
Jul. 31, 2018CHF (SFr) | Mar. 31, 2018USD ($) | Mar. 31, 2018JPY (¥) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018JPY (¥) | Sep. 30, 2018CHF (SFr) | Mar. 31, 2018EUR (€) | Mar. 31, 2018JPY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017JPY (¥) | |
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 29,054 | $ 28,367 | |||||||||
Short-term debt | $ 2,158 | 2,880 | |||||||||
Long term debt currency portion USD | 63.00% | 63.00% | 63.00% | 63.00% | |||||||
Long term debt currency portion EUR | 34.00% | 34.00% | 34.00% | 34.00% | |||||||
Long term debt currency portion CHF | 3.00% | 3.00% | 3.00% | 3.00% | |||||||
Netherlands II B.V. [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 2,500 | € 1,600 | |||||||||
Senior notes USD 1,500 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | 1,500 | ||||||||||
Debt instrument face amount | 1,500 | $ 1,500 | |||||||||
Senior notes EUR 1,000 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | 1,199 | ||||||||||
Debt instrument face amount | € | € 1,000 | € 1,000 | |||||||||
Term Loan Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayment of debt | 2,300 | ||||||||||
Term loan JPY 58.5 billion [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | ¥ | ¥ 58.5 | ||||||||||
Loan payment prepaid | ¥ | ¥ 86.8 | ||||||||||
Short-term debt | ¥ | ¥ 28.3 | ||||||||||
Term loan JPY 35 billion due 2018 and 2019 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayment of debt | ¥ | ¥ 70 | ||||||||||
Debentures USD 15 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | 15 | ||||||||||
Loan payment prepaid | $ 15 | ||||||||||
Senior notes CHF 300 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | 308 | ||||||||||
Debt instrument face amount | SFr | SFr 300 | ||||||||||
Repayment of debt | SFr | SFr 300 | ||||||||||
'Senior notes USD 2,000 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | 1,700 | 2,000 | |||||||||
Debt instrument face amount | 1,700 | ||||||||||
Debt instrument redeemed amount | 300 | ||||||||||
'Senior notes EUR 1,750 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | 1,924 | $ 2,095 | |||||||||
Debt instrument face amount | € | 1,660 | ||||||||||
Debt instrument redeemed amount | € | € 90 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Revolving credit facility | $ 3,000 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Items Carried at Fair Value (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ (717) | $ (735) |
Total | 1,200 | 254 |
Asset Derivatives - Options and Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 23 | 17 |
Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (82) | (98) |
Liabilities Derivatives Options and Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (14) | (15) |
Money Markets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 302 | 5 |
Cash, Deposits and Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,573 | 958 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in securities | 53 | 65 |
Other, Mainly Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in securities | 20 | 32 |
Asset Derivatives - Cross Currency Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 42 | 25 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,930 | 1,042 |
Level 1 [Member] | Money Markets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 302 | 5 |
Level 1 [Member] | Cash, Deposits and Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,573 | 958 |
Level 1 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in securities | 53 | 65 |
Level 1 [Member] | Other, Mainly Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in securities | 2 | 14 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | (31) | (71) |
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 23 | 17 |
Level 2 [Member] | Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (82) | (98) |
Level 2 [Member] | Liabilities Derivatives Options and Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (14) | (15) |
Level 2 [Member] | Asset Derivatives - Cross Currency Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 42 | 25 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | (717) | (735) |
Total | (699) | (717) |
Level 3 [Member] | Other, Mainly Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in securities | $ 18 | $ 18 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value at the beginning of the period | $ (717) |
Fair value at the end of the period | (699) |
Actavis Generics Transaction [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Adjustments to provisions for contingent consideration | (21) |
Labrys Transaction [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Adjustments to provisions for contingent consideration | (17) |
Eagle Transaction [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Adjustments to provisions for contingent consideration | (46) |
Settlement of contingent consideration | $ 102 |
Fair Value Measurement - Summ_3
Fair Value Measurement - Summary of Financial Instrument Measured on a Basis Other Than Fair Value (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 27,389 | $ 26,172 |
Senior Notes Included Under Senior Notes and Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 24,775 | 23,459 |
Senior Notes and Convertible Senior Debentures Included Under Short-Term Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 2,614 | $ 2,713 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Summary of Notional Amounts for Hedged Items, Designated as Hedge Accounting (Detail) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | Cash Flow Hedge [Member] | ||
Derivative [Line Items] | ||
Notional amounts of hedge | $ 588 | $ 588 |
Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | Net Investment Hedge [Member] | ||
Derivative [Line Items] | ||
Notional amounts of hedge | 1,000 | 1,000 |
Asset Derivatives - Options and Forward Contracts [Member] | Fair Value Hedge [Member] | ||
Derivative [Line Items] | ||
Notional amounts of hedge | $ 500 | $ 500 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Designated as Hedging Instrument [Member] | Swap [Member] | Accounts Payable [Member] | Cash Flow Hedge [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | $ 42 | $ 25 |
Designated as Hedging Instrument [Member] | Swap [Member] | Other Current Liabilities [Member] | Fair Value Hedge [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | (24) | (2) |
Designated as Hedging Instrument [Member] | Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | Accounts Payable [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | (58) | (96) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Non-current Assets [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | 23 | 17 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accounts Payable [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | $ (14) | $ (15) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jul. 31, 2016 | |
Derivative [Line Items] | |||||||||
Teva other comprehensive loss | $ 493 | ||||||||
Transactions Termination Loss Settled | 242 | ||||||||
Forward starting interest rate swaps and treasury lock agreements losses | $ 7 | $ 7 | 21 | $ 20 | |||||
Settlement gain position | $ 41 | ||||||||
Interest rate swap gain | 2 | 2 | 5 | 5 | |||||
Gain From Currency Swap | 6 | 4 | 22 | 8 | |||||
Senior Notes Due 2023 Two [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount hedge debt | $ 500 | ||||||||
Previously hedge debt rate | 2.80% | ||||||||
Foreign Exchange Contract [Member] | Financial Expenses Net [Member] | |||||||||
Derivative [Line Items] | |||||||||
Gain (loss) recognized in earnings for the period on derivative contracts | 6 | 14 | 11 | 72 | |||||
Interest Rate and Cross Currency Swap [Member] | Financial Expenses Net [Member] | |||||||||
Derivative [Line Items] | |||||||||
Gain (loss) recognized in earnings for the period on derivative contracts | $ 0.5 | $ 1 | $ 1 | $ 4 | |||||
Senior Notes Due 2022 [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount hedge debt | $ 500 | $ 500 | |||||||
Asset Derivatives - Options and Forward Contracts [Member] | Cash Flow Hedge [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount hedge debt | $ 3,750 | ||||||||
Treasury Lock [Member] | Cash Flow Hedge [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount hedge debt | $ 1,500 |
Other Impairments, Restructurin
Other Impairments, Restructuring and Other Items - Summary of Impairments, Restructuring and Others (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 88 | $ 72 | $ 442 | $ 300 |
Integration and acquisition expenses | 4 | 31 | 9 | 87 |
Contingent consideration | 29 | 18 | 84 | 179 |
Impairments of long-lived assets | 521 | 408 | 1,501 | 564 |
Other | 16 | 21 | 44 | 79 |
Total | $ 658 | $ 550 | $ 2,080 | $ 1,209 |
Other Impairments, Restructur_2
Other Impairments, Restructuring and Other Items - Additional Information (Detail) Positions in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)Positions | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Positions | Sep. 30, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring plan period | 2 years | |||
Recall and inventory reserves cost | $ 46 | |||
Impairments of long-lived intangible assets | $ 519 | $ 355 | 1,246 | $ 409 |
Impairments of property, plant and equipment | 2 | 255 | ||
Restructuring cost | 88 | 72 | 442 | 300 |
Impairments | $ 521 | $ 408 | $ 1,501 | $ 564 |
Number of positions eliminated | Positions | 9,100 | 9,100 | ||
Restructuring Cost [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairments of property, plant and equipment | $ 2 | $ 155 | ||
India [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairments | 64 | |||
Facility Exit Costs And Other Related Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 155 | |||
Facility Exit Costs And Other Related Restructuring [Member] | Israel [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 113 | |||
Headquarters and Distribution Sites Consolidation [Member] | United States [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 42 | |||
Identifiable product rights [Member] | United States [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairments of long-lived intangible assets | 185 | 328 | ||
In Process Research and Development [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairments of long-lived intangible assets | $ 306 | $ 867 |
Other Impairments, Restructur_3
Other Impairments, Restructuring and Other Items - Summary of Restructuring Charges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 88 | $ 72 | $ 442 | $ 300 |
Employee Termination [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 62 | 54 | 380 | 226 |
Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 26 | 18 | 62 | 72 |
Cost of Sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring charges | 8 | 3 | 23 | 5 |
Selling and Marketing Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring charges | $ 3 | $ 3 | ||
Other Items [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring charges | $ 16 | $ 54 |
Other Impairments, Restructur_4
Other Impairments, Restructuring and Other Items - Components of and Changes in Company's Restructuring Accruals (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | $ (311) | |||
Provision | $ (88) | $ (72) | (442) | $ (300) |
Utilization and other | 469 | |||
Ending balance | (284) | (284) | ||
Employee Termination [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | (294) | |||
Provision | (62) | (54) | (380) | (226) |
Utilization and other | 418 | |||
Ending balance | (256) | (256) | ||
Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance | (17) | |||
Provision | (26) | $ (18) | (62) | $ (72) |
Utilization and other | 51 | |||
Ending balance | $ (28) | $ (28) |
Legal Settlements and Loss Co_2
Legal Settlements and Loss Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||||
Legal settlements and loss contingencies, expenses | $ 19 | $ 20 | |||
Legal settlements and loss contingencies, gain (loss) | $ 1,239 | $ (324) | |||
Accrued amount for legal settlements and loss contingencies | $ 663 | $ 663 | $ 1,232 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions, $ in Millions, $ in Millions | Oct. 04, 2018USD ($) | Jun. 27, 2018CAD ($) | Aug. 21, 2017USD ($) | Jul. 15, 2015USD ($) | Jun. 30, 2018USD ($) | Nov. 30, 2017USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2013USD ($) | Aug. 31, 2012USD ($) | Dec. 31, 2010USD ($) | Nov. 30, 2009USD ($) | Aug. 31, 2008USD ($) | Apr. 30, 2005USD ($) | Mar. 31, 2015CAD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018CAD ($) | Jun. 20, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2015USD ($) | Mar. 31, 2014USD ($) | Nov. 30, 2013USD ($) | Aug. 31, 2013USD ($) | Jan. 31, 2009USD ($) | Jul. 31, 2008USD ($) | Feb. 28, 2005USD ($) |
Commitment And Contingencies [Line Items] | |||||||||||||||||||||||||||
Damages assessment | $ 235.5 | ||||||||||||||||||||||||||
Sales | $ 94 | ||||||||||||||||||||||||||
Brand sales | $ 459 | ||||||||||||||||||||||||||
Modafinil payment | $ 1,200 | ||||||||||||||||||||||||||
Modafinil Euro sales | € | € 46.5 | ||||||||||||||||||||||||||
Annual sales at the time of settlement | $ 350 | ||||||||||||||||||||||||||
Annual sales of Effexor | $ 2,600 | ||||||||||||||||||||||||||
Annual sales of Lamictal | $ 2,300 | $ 950 | |||||||||||||||||||||||||
Annual sales of Niaspan | $ 1,100 | $ 416 | |||||||||||||||||||||||||
Annual sales of Lidoderm | $ 1,400 | $ 1,200 | |||||||||||||||||||||||||
Annual sales of Aggrenox | $ 455 | $ 340 | |||||||||||||||||||||||||
Annual sales of Actos | $ 2,800 | $ 3,700 | |||||||||||||||||||||||||
Annual sales of Acto plus | $ 430 | $ 500 | |||||||||||||||||||||||||
Nexium settlement payment | $ 24 | ||||||||||||||||||||||||||
Annual sales of Namenda | $ 1,100 | $ 1,400 | |||||||||||||||||||||||||
Annual sales of Intuniv | $ 327 | $ 335 | |||||||||||||||||||||||||
Compensatory Damages And Penalties | $ 12.4 | ||||||||||||||||||||||||||
Punitive Damages | $ 17.9 | ||||||||||||||||||||||||||
Eosinophilic Esophagitis [Member] | |||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||||||||||
Damage claimed | $ 200 | ||||||||||||||||||||||||||
Israel [Member] | |||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||||||||||
Loss contingency payment | 22 | ||||||||||||||||||||||||||
United States [Member] | Eosinophilic Esophagitis [Member] | |||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||||||||||
Damage claimed | 150 | ||||||||||||||||||||||||||
Europe [Member] | Eosinophilic Esophagitis [Member] | |||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||||||||||
Damage claimed | 50 | ||||||||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||||||||||
Litigation settlement amount | $ 135 | ||||||||||||||||||||||||||
AndroGel Rate at 1% [Member] | |||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||||||||||
Annual sales at the time of settlement | 140 | ||||||||||||||||||||||||||
AndroGel Rate at 1.62% [Member] | |||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||||||||||
Annual sales at the time of settlement | $ 1,050 | ||||||||||||||||||||||||||
AbbVie [Member] | |||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||||||||||
Litigation settlement awarded from other party | $ 448 | ||||||||||||||||||||||||||
Janssen and Millennium [Member] | |||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||||||||||
Maximum damages payable | $ 159 | $ 200 | |||||||||||||||||||||||||
Litigation settlement awarded from other party | $ 5 |
Segments - Additional Informati
Segments - Additional Information (Detail) - Segment | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 3 | 2 |
Segments - Summary of Segment P
Segments - Summary of Segment Profit (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Gross profit | $ 2,021 | $ 2,650 | $ 6,430 | $ 8,344 |
R&D expenses | (311) | (531) | (918) | (1,432) |
S&M expenses | (743) | (843) | (2,224) | (2,745) |
G&A expenses | (309) | (372) | (954) | (1,101) |
Segment profit | 16 | 378 | 1,527 | (4,467) |
North America [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 2,265 | 3,043 | 7,059 | 9,452 |
Gross profit | 1,232 | 1,833 | 3,867 | 5,971 |
R&D expenses | 158 | 230 | 528 | 777 |
S&M expenses | 301 | 325 | 902 | 1,158 |
G&A expenses | 128 | 149 | 357 | 432 |
Other income | (4) | (1) | (206) | (82) |
Segment profit | 649 | 1,130 | 2,286 | 3,686 |
Europe [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 1,212 | 1,380 | 3,982 | 4,016 |
Gross profit | 683 | 721 | 2,211 | 2,147 |
R&D expenses | 62 | 101 | 208 | 312 |
S&M expenses | 250 | 289 | 741 | 864 |
G&A expenses | 73 | 90 | 243 | 258 |
Other income | 1 | (1) | (15) | |
Segment profit | 297 | 241 | 1,020 | 728 |
International Markets [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 726 | 882 | 2,265 | 2,485 |
Gross profit | 301 | 351 | 942 | 1,043 |
R&D expenses | 21 | 35 | 70 | 129 |
S&M expenses | 120 | 158 | 384 | 503 |
G&A expenses | 37 | 51 | 115 | 144 |
Other income | (3) | (11) | (4) | |
Segment profit | $ 123 | $ 110 | $ 384 | $ 271 |
Segments - Summary of Profit by
Segments - Summary of Profit by Segments and Reconciliation of Segments Profit to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amounts allocated to segments: | |||||
Segment profit | $ 16 | $ 378 | $ 1,527 | $ (4,467) | |
Amounts not allocated to segments: | |||||
Amortization | 297 | 357 | 909 | 1,088 | |
Other asset impairments, restructuring and other items | 658 | 550 | 2,080 | 1,209 | |
Goodwill impairment | 300 | 6,100 | |||
Gain (loss) on divestitures, net of divestitures related costs | (31) | (114) | |||
Inventory step-up | 67 | ||||
Other R&D expenses | 60 | 150 | 82 | 176 | |
Costs related to regulatory actions taken in facilities | 1 | (1) | 6 | 48 | |
Legal settlements and loss contingencies | 19 | (20) | (1,239) | 324 | |
Other unallocated amounts | 84 | 56 | 226 | 143 | |
Consolidated operating income (loss) | 16 | 378 | 1,527 | (4,467) | |
Financial expenses, net | 229 | 259 | 736 | 704 | |
Consolidated income (loss) before income taxes | (213) | 119 | 791 | (5,171) | |
North America [Member] | |||||
Amounts allocated to segments: | |||||
Segment profit | 649 | 1,130 | 2,286 | 3,686 | |
Amounts not allocated to segments: | |||||
Consolidated operating income (loss) | 649 | 1,130 | 2,286 | 3,686 | |
Europe [Member] | |||||
Amounts allocated to segments: | |||||
Segment profit | 297 | 241 | 1,020 | 728 | |
Amounts not allocated to segments: | |||||
Goodwill impairment | 0 | ||||
Consolidated operating income (loss) | 297 | 241 | 1,020 | 728 | |
International Markets [Member] | |||||
Amounts allocated to segments: | |||||
Segment profit | 123 | 110 | 384 | 271 | |
Amounts not allocated to segments: | |||||
Goodwill impairment | 0 | $ 0 | |||
Consolidated operating income (loss) | 123 | 110 | 384 | 271 | |
Corporate Segment [Member] | |||||
Amounts allocated to segments: | |||||
Segment profit | 1,069 | 1,481 | 3,690 | 4,685 | |
Amounts not allocated to segments: | |||||
Consolidated operating income (loss) | 1,069 | 1,481 | 3,690 | 4,685 | |
Other Segments [Member] | |||||
Amounts allocated to segments: | |||||
Segment profit | 35 | (11) | 87 | 3 | |
Amounts not allocated to segments: | |||||
Consolidated operating income (loss) | 35 | (11) | 87 | 3 | |
Segments and Other Activities [Member] | |||||
Amounts allocated to segments: | |||||
Segment profit | 1,104 | 1,470 | 3,777 | 4,688 | |
Amounts not allocated to segments: | |||||
Consolidated operating income (loss) | $ 1,104 | $ 1,470 | $ 3,777 | $ 4,688 |
Segments - Schedule of Revenues
Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
North America [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 2,265 | $ 3,043 | $ 7,059 | $ 9,452 |
Europe [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 1,212 | 1,380 | 3,982 | 4,016 |
International Markets [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 726 | 882 | 2,265 | 2,485 |
Generic products [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 922 | 1,233 | 2,957 | 3,979 |
Generic products [Member] | Europe [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 845 | 871 | 2,749 | 2,543 |
Generic products [Member] | International Markets [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 498 | 629 | 1,523 | 1,720 |
COPAXONE [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 463 | 819 | 1,403 | 2,475 |
COPAXONE [Member] | Europe [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 124 | 150 | 417 | 440 |
COPAXONE [Member] | International Markets [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 14 | 18 | 52 | 65 |
BENDEKA and TREANDA [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 161 | 179 | 502 | 498 |
ProAir [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 107 | 155 | 352 | 399 |
QVAR [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 36 | 83 | 173 | 265 |
AUSTEDO [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 62 | 6 | 136 | 8 |
Distribution [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 333 | 294 | 984 | 864 |
Distribution [Member] | International Markets [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 149 | 146 | 456 | 406 |
Respiratory Product [Member] | Europe [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 93 | $ 90 | $ 312 | $ 258 |
Other Income - Schedule of Othe
Other Income - Schedule of Other Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Income [Line Items] | ||||
Gain on divestitures, net of divestitures related costs | $ 31 | $ 114 | ||
Section 8 and similar payments | 1 | 195 | $ 83 | |
Gain on sale of assets | 1 | 9 | ||
Other, net | 2 | $ 4 | 16 | 17 |
Total other income | $ 35 | $ 4 | $ 334 | $ 100 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||||
Income taxes expense (benefit) | $ (26) | $ (494) | $ (56) | $ (462) | |
Income taxes percentage on pre-tax income (loss) | 12.00% | ||||
Pre-tax income (loss) | $ (213) | $ 119 | $ 791 | $ (5,171) | |
Provisional estimate for one-time deemed repatriation tax liability | $ 112 | ||||
Provision for income tax | $ 40 | ||||
Israel Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Statutory Israeli corporate tax rate | 23.00% |