Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2022shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2022 |
Document Fiscal Period Focus | Q1 |
Document Quarterly Report | true |
Entity Registrant Name | TEVA PHARMACEUTICAL INDUSTRIES LTD |
Entity Central Index Key | 0000818686 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 1,110,352,397 |
Title of 12(b) Security | American Depositary Shares, each representing one Ordinary Share |
Trading Symbol | TEVA |
Security Exchange Name | NYSE |
Entity Incorporation, State or Country Code | L3 |
Entity File Number | 001-16174 |
Entity Address, Address Line One | 124 Dvora HaNevi’a St. |
Entity Tax Identification Number | 00-0000000 |
Entity Address, City or Town | Tel Aviv |
Entity Address, Postal Zip Code | 6944020 |
Entity Address, Country | IL |
City Area Code | +972 (3) |
Local Phone Number | 914-8213 |
Entity Filer Category | Large Accelerated Filer |
Smaller Reporting Company | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 2,175 | $ 2,165 | |
Accounts receivables, net of allowance for credit losses of $91 million and $90 million as of March 31, 2022 and December 31, 2021 | 4,253 | 4,529 | |
Inventories | 4,012 | 3,818 | |
Prepaid expenses | 1,064 | 1,075 | |
Other current assets | 933 | 965 | |
Assets held for sale | 13 | 19 | |
Total current assets | 12,451 | 12,573 | |
Deferred income taxes | 637 | 596 | |
Other non-current assets | 472 | 515 | |
Property, plant and equipment, net | 5,932 | 5,982 | |
Operating lease right-of-use assets | 464 | 495 | |
Identifiable intangible assets, net | 7,116 | 7,466 | |
Goodwill | [1] | 19,986 | 20,040 |
Total assets | 47,059 | 47,666 | |
Current liabilities: | |||
Short-term debt | 2,077 | 1,426 | |
Sales reserves and allowances | 3,807 | 4,241 | |
Accounts payables | 1,750 | 1,686 | |
Employee-related obligations | 481 | 563 | |
Accrued expenses | 2,597 | 2,208 | |
Other current liabilities | 900 | 903 | |
Total current liabilities | 11,613 | 11,027 | |
Long-term liabilities: | |||
Deferred income taxes | 666 | 784 | |
Other taxes and long-term liabilities | 3,288 | 2,578 | |
Senior notes and loans | 20,840 | 21,617 | |
Operating lease liabilities | 393 | 416 | |
Total long-term liabilities | 25,186 | 25,395 | |
Commitments and contingencies, see note 10 | |||
Total liabilities | 36,799 | 36,422 | |
Teva shareholders' equity: | |||
Ordinary shares of NIS 0.10 par value per share; March 31, 2022 and December 31, 2021: authorized 2,495 million shares; issued 1,216 million shares and 1,209 million shares, respectively. | 57 | 57 | |
Additional paid-in capital | 27,587 | 27,561 | |
Accumulated deficit | (11,484) | (10,529) | |
Accumulated other comprehensive loss | (2,687) | (2,683) | |
Treasury shares as of March 31, 2022 and December 31, 2021: 106 million ordinary shares | (4,128) | (4,128) | |
Stockholders' equity attributable to Teva shareholders | 9,344 | 10,278 | |
Non-controlling interests | 916 | 966 | |
Total equity | 10,260 | 11,244 | |
Total liabilities and equity | $ 47,059 | $ 47,666 | |
[1] | Accumulated goodwill impairment as of March 31, 2022 and December 31, 2021 was approximately $25.6 billion. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Millions | Mar. 31, 2022USD ($)shares | Mar. 31, 2022SFr / shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2021SFr / shares |
Allowance for credit losses | $ | $ 91 | $ 90 | ||
Common stock, par or stated value per share | SFr / shares | SFr 0.10 | SFr 0.10 | ||
Ordinary shares, authorized | 2,495,000,000 | 2,495,000,000 | ||
Ordinary shares, issued | 1,216,000,000 | 1,209,000,000 | ||
Treasury shares | 106,000,000 | 106,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net revenues | $ 3,661 | $ 3,982 |
Cost of sales | 1,921 | 2,104 |
Gross profit | 1,740 | 1,878 |
Research and development expenses | 225 | 254 |
Selling and marketing expenses | 584 | 585 |
General and administrative expenses | 296 | 290 |
Intangible assets impairments | 149 | 79 |
Other asset impairments, restructuring and other items | 128 | 137 |
Legal settlements and loss contingencies | 1,124 | 104 |
Other income | (52) | (5) |
Operating income (loss) | (713) | 434 |
Financial expenses, net | 258 | 290 |
Income (loss) before income taxes | (971) | 144 |
Income taxes (benefit) | 2 | 62 |
Share in (profits) losses of associated companies, net | (21) | (3) |
Net income (loss) | (952) | 84 |
Net income (loss) attributable to non-controlling interests | 3 | 7 |
Net income (loss) attributable to Teva | $ (955) | $ 77 |
Earnings (loss) per share attributable to ordinary shareholders: | ||
Basic | $ (0.86) | $ 0.07 |
Diluted | $ (0.86) | $ 0.07 |
Weighted average number of shares (in millions): | ||
Basic | 1,107 | 1,099 |
Diluted | 1,107 | 1,107 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income (loss) | $ (952) | $ 84 |
Other comprehensive income (loss), net of tax: | ||
Currency translation adjustment | (64) | (208) |
Unrealized gain (loss) from derivative financial instruments, net | 7 | 7 |
Total other comprehensive income (loss) | (57) | (201) |
Total comprehensive income (loss) | (1,009) | (117) |
Comprehensive income (loss) attributable to non-controlling interests | (50) | (60) |
Comprehensive income (loss) attributable to Teva | $ (959) | $ (57) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Shares [Member] | Total Teva Shareholders' Equity [Member] | Non-controlling Interests [Member] | |
Beginning balance at Dec. 31, 2020 | $ 11,061 | $ 57 | $ 27,443 | $ (10,946) | $ (2,399) | $ (4,128) | $ 10,026 | $ 1,035 | |
Beginning balance, shares at Dec. 31, 2020 | 1,202 | ||||||||
Net Income (loss) | 84 | 77 | 77 | 7 | |||||
Other comprehensive income (loss) | (201) | (134) | (134) | (67) | |||||
Issuance of Shares, shares | [1] | 6 | |||||||
Stock-based compensation expense | 31 | 31 | 31 | ||||||
Ending balance at Mar. 31, 2021 | 10,975 | $ 57 | 27,474 | (10,869) | (2,534) | (4,128) | 10,000 | 975 | |
Ending balance, shares at Mar. 31, 2021 | 1,208 | ||||||||
Beginning balance at Dec. 31, 2021 | 11,244 | $ 57 | 27,561 | (10,529) | (2,683) | (4,128) | 10,278 | 966 | |
Beginning balance, shares at Dec. 31, 2021 | 1,209 | ||||||||
Net Income (loss) | (952) | (955) | (955) | 3 | |||||
Other comprehensive income (loss) | (57) | (4) | (4) | (53) | |||||
Issuance of Shares, value | 1 | 1 | 1 | ||||||
Issuance of Shares, shares | [1] | 7 | |||||||
Stock-based compensation expense | 24 | 24 | 24 | ||||||
Ending balance at Mar. 31, 2022 | $ 10,260 | $ 57 | $ 27,587 | $ (11,484) | $ (2,687) | $ (4,128) | $ 9,344 | $ 916 | |
Ending balance, shares at Mar. 31, 2022 | 1,216 | ||||||||
[1] | Represents an amount less than $0.5 million. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Maximum [Member] | Ordinary Shares [Member] | ||
Exercise of options by employees and vested RSUs | $ 0.5 | $ 0.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities: | ||
Net income (loss) | $ (952) | $ 84 |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||
Depreciation and amortization | 323 | 376 |
Impairment of long-lived assets and assets held for sale | 165 | 127 |
Net change in operating assets and liabilities | 559 | (1,076) |
Deferred income taxes – net and uncertain tax positions | (175) | (11) |
Stock-based compensation | 24 | 31 |
Other items | 30 | (10) |
Net loss (gain) from investments and from sale of long lived assets | (23) | 74 |
Net cash provided by (used in) operating activities | (49) | (405) |
Investing activities: | ||
Beneficial interest collected in exchange for securitized trade receivables | 305 | 476 |
Proceeds from sale of business and long lived assets | 25 | 138 |
Acquisition of businesses, net of cash acquired | (7) | 0 |
Purchases of property, plant and equipment | (157) | (150) |
Purchases of investments and other assets | (4) | (2) |
Proceeds from sale of investments | 0 | 46 |
Other investing activities | (1) | 0 |
Net cash provided by (used in) investing activities | 161 | 508 |
Financing activities: | ||
Redemption of convertible senior notes | 0 | (491) |
Other financing activities | 2 | (2) |
Net cash provided by (used in) financing activities | 2 | (493) |
Translation adjustment on cash and cash equivalents | (62) | (44) |
Net change in cash, cash equivalents and restricted cash | 52 | (434) |
Balance of cash, cash equivalents and restricted cash at beginning of period | 2,198 | 2,177 |
Balance of cash, cash equivalents and restricted cash at end of period | 2,250 | 1,743 |
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: | ||
Cash and cash equivalents | 2,175 | 1,743 |
Restricted cash included in other current assets | 75 | 0 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 2,250 | 1,743 |
Non-cash financing and investing activities: | ||
Beneficial interest obtained in exchange for securitized accounts receivables | $ 299 | $ 488 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2022 | |
Basis of Presentation [Abstract] | |
Basis of presentation | Note 1 – Basis of presentation: a. 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 normal and 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 year-end In the process of preparing the consolidated financial statements, management makes estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities. The inputs into Teva’s judgments and estimates also consider the economic implications of the COVID-19 COVID-19 COVID-19 In February 2022, Russia launched an invasion of Ukraine. As of the date of this Quarterly Report on Form 10-Q, The results of operations for the three months ended March 31, 2022 are not necessarily indicative of results that could be expected for the entire fiscal year. Certain amounts in the consolidated financial statements and associated notes may not add up due to rounding. All percentages have been calculated using unrounded amounts. b. Significant accounting policies Recently adopted accounting pronouncements In August 2020, the FASB issued ASU 2020-06 470-20) In March 2020, the FASB issued ASU 2020-04 Recently issued accounting pronouncements, not yet adopted In November 2021, the FASB issued ASU 2021-10 transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2021. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In October 2021, the FASB issued ASU 2021-08 |
Certain transactions
Certain transactions | 3 Months Ended |
Mar. 31, 2022 | |
Certain transactions | NOTE 2 – Certain transactions: 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. MODAG In October 2021, Teva announced a license agreement with MODAG GmbH (“Modag”) that will provide Teva an exclusive global license to develop, manufacture and commercialize Modag’s lead compound (TEV-56286) (TEV-56287). TEV-56286 TEV-56286. of $10 million to Modag that was recorded as R&D expense. Modag may be eligible for future development milestone payments, totaling an aggregate amount of up to million, as well as future commercial milestones and royalties. Alvotech In August 2020, Teva entered into an agreement with biopharmaceutical company Alvotech for the exclusive commercialization in the U.S. of five biosimilar product candidates. The initial pipeline for this collaboration contains biosimilar candidates addressing multiple therapeutic areas, including a proposed biosimilar to Humira ® million, as well as royalty payments, may be payable by Teva over the next few years. Teva and Alvotech will share profit from the commercialization of these biosimilars. In March 2021, Abbvie sued Alvotech for allegedly misappropriating confidential information relating to Humira ® ® ® ® ® Eli Lilly and Alder BioPharmaceuticals In December 2018, Teva entered into an agreement with Eli Lilly & Co. (“Lilly”) resolving the European Patent Office opposition they had filed against Teva’s AJOVY ® On January 8, 2018, Teva signed a global license agreement with Alder BioPharmaceuticals (“Alder”). The agreement validates Teva’s intellectual property 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 received a non-exclusive 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 million, which was recognized as revenue in the third quarter of 2021. Teva may receive additional milestone payments upon achievement of certain revenue targets. Otsuka also pays Teva royalties on AJOVY sales in Japan. 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 in the global commercial rights to this product (excluding Japan, Korea and nine other Asian countries), 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 and additional payments for achievement of development milestones in an aggregate amount of $120 million were paid during 2017 and 2018. The agreement stipulates additional development and commercial milestone payments of up to $2,230 million, as well as future royalties. Currently, all non-essential MedinCell In November 2013, Teva entered into an agreement with MedinCell for the development and commercialization of multiple long-acting injectable products. The lead product candidate selected was risperidone LAI (TV-46000) the FDA to address their recommendations. Assets and Liabilities Held For Sale: General Assets and liabilities held for sale as of March 31, 2022 included certain manufacturing assets that are expected to be sold within the next year. Assets and liabilities held for sale as of December 31, 2021 included certain manufacturing assets sold during the first quarter of 2022, and certain assets that are expected to be sold during 2022. The table below summarizes all Teva assets and liabilities included as held for sale as of March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 (U.S. $ in millions) Inventories $ — $ 2 Property, plant and equipment, net and others 64 86 Goodwill — 7 Adjustments of assets held for sale to fair value (51 ) (76 ) Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 13 $ 19 Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets, recorded under accrued expenses and other long-term liabilities $ (60 ) $ (43 ) |
Revenue from contracts with cus
Revenue from contracts with customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from contracts with customers | NOTE 3 – Revenue from contracts with customers: Disaggregation of revenue The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 15. Three months ended March 31, 2022 North Europe International Other Total (U.S. $ in millions) Sale of goods 1,377 1,134 445 180 3,136 Licensing arrangements 21 12 4 1 38 Distribution 342 § 16 — 358 Other (2 ) 9 27 95 129 $ 1,737 $ 1,156 $ 492 $ 275 $ 3,661 § Represents an amount less than $0.5 million. Three months ended March 31, 2021 North Europe International Other Total (U.S. $ in millions) Sale of goods 1,668 1,178 440 177 3,463 Licensing arrangements 32 14 3 1 49 Distribution 289 § 19 — 308 Other § 22 28 111 162 $ 1,989 $ 1,214 $ 490 $ 289 $ 3,982 § Represents an amount less than $0.5 million. Variable consideration Variable consideration mainly includes sales reserves and allowances (“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 accounts receivables. The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. SR&A to U.S. customers comprised approximately 73% of the Company’s total SR&A as of March 31, 2022, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the three months ended March 31, 2022 and 2021 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, 2021 $ 68 $ 1,655 $ 854 $ 1,085 $ 535 $ 112 $ 4,241 $ 4,309 Provisions related to sales made in current year 82 928 198 1,814 58 90 3,088 3,170 Provisions related to sales made in prior periods — (90 ) 26 (8 ) (14 ) (1 ) (87 ) (87 ) Credits and payments (88 ) (1,037 ) (270 ) (1,940 ) (110 ) (73 ) (3,430 ) (3,518 ) Translation differences — (3 ) (1 ) — — (1 ) (5 ) (5 ) Balance at March 31, 2022 $ 62 1,453 $ 807 $ 951 $ 469 $ 127 $ 3,807 $ 3,869 Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S.$ in millions) Balance at December 31, 2020 $ 80 $ 2,054 $ 828 $ 1,108 $ 686 $ 148 $ 4,824 $ 4,904 Provisions related to sales made in current year 100 1,126 164 2,043 76 23 3,432 3,532 Provisions related to sales made in prior periods — (55 ) (11 ) 6 (40 ) (17 ) (117 ) (117 ) Credits and payments (102 ) (1,210 ) (188 ) (1,987 ) (101 ) (40 ) (3,526 ) (3,628 ) Translation differences — (17 ) (4 ) (3 ) (3 ) (2 ) (29 ) (29 ) Balance at March 31, 2021 $ 78 $ 1,898 $ 789 $ 1,167 $ 618 $ 112 $ 4,584 $ 4,662 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | NOTE 4 – Inventories: Inventories, net of reserves, consisted of the following: March 31, December 31, 2022 2021 (U.S. $ in millions) Finished products $ 1,985 $ 1,932 Raw and packaging materials 1,256 1,136 Products in process 593 587 Materials in transit and payments on account 178 163 Total $ 4,012 $ 3,818 |
Identifiable Intangible Assets
Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Identifiable Intangible Assets | NOTE 5 – Identifiable intangible assets: Identifiable intangible assets consisted of the following: Gross carrying amount net Accumulated amortization Net carrying amount March 31, December 31, March 31, December 31, March 31, December 31, 2022 2021 2022 2021 2022 2021 (U.S. $ in millions) Product rights $ 18,544 $ 18,815 $ 12,383 $ 12,318 $ 6,161 $ 6,497 Trade names 588 590 206 198 382 392 In process research and development 573 577 — — 573 577 Total $ 19,705 $ 19,982 $ 12,589 $ 12,516 $ 7,116 $ 7,466 Product rights and trade names Product rights and trade names are assets presented at amortized cost. Product rights and trade names represent a portfolio of pharmaceutical products from various therapeutic categories from various acquisitions with a weighted average life of approximately 10 years. Amortization of intangible assets was $200 million and $242 million in the three months ended March 31, 2022 and 2021, respectively. IPR&D Teva’s IPR&D are assets that have not yet been approved in major markets. Teva’s IPR&D is comprised mainly of various generic products from the Actavis Generics acquisition of $542 million. IPR&D carries intrinsic risks that the asset might not succeed in advanced phases and may be impaired in future periods. Intangible assets impairments Impairments of long-lived intangible assets for the three months ended March 31, 2022 and 2021, were $149 million and $79 million, respectively. Impairments in the first quarter of 2022 consisted primarily of identifiable product rights of $129 million related to updated market assumptions regarding price and volume of products acquired from Actavis Generics. Impairments in the first quarter of 2021 consisted of: (a) IPR&D assets of $51 million related to generic pipeline products acquired from Actavis Generics resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date) in the United States; and (b) Identifiable product rights of $28 million related to updated market assumptions regarding price and volume of products acquired from Actavis Generics that are primarily marketed in the United States. The fair value measurement of the impaired i gible assets in the first months of is based on significant unobservable inputs in the market and thus represents a Level measurement within the fair value hierarchy. The discount rate applied ranged from % to %. A probability of success factor ranging from % to % was used in the fair value calculation to reflect inherent regulatory and commercial risk of IPR&D. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill | NOTE 6 – Goodwill: The changes in the carrying amount of goodwill for the period ended March 31, 2022 were as follows: North America Europe International Other Total (U.S. $ in millions) Balance as of December 31, 2021 (1) $ 6,474 $ 8,544 $ 2,328 $ 2,694 $ 20,040 Changes during the period: Goodwill acquired 12 12 Translation differences 9 (85 ) 34 (24 ) (66 ) Balance as of March 31, 2022 (1) $ 6,483 $ 8,459 $ 2,362 $ 2,682 $ 19,986 (1) Accumulated goodwill impairment as of March 31, 2022 and December 31, 2021 was approximately $25.6 billion. Teva determines the fair value of its reporting units using the income approach. The income approach is a forward-looking approach for estimating fair value. Within the income approach, the method used is the discounted cash flow method. Teva starts 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 applies 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 weighted average cost of capital (WACC), adjusted for the relevant risk associated with country-specific and business-specific characteristics. If any of these expectations were to vary materially from Teva’s assumptions, Teva may record an impairment of goodwill allocated to these reporting units in the future. The current projections related to AUSTEDO and the resolution of the opioid and price fixing litigation in North America are significant assumptions in Teva’s future projections. Additionally, certain parts of its business volumes, particularly in Europe, were impacted by the COVID-19 COVID-19 During the first quarter of 2022, management assessed developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount. Based on this assessment, management concluded that it was not more likely than not that the fair value of any of the reporting units was below its carrying value as of March 31, 2022 and, therefore, no quantitative assessment was performed. Changes to Teva’s current assessment regarding the impact of the COVID-19 pandemic on its projections and its long-term forecast related to AUSTEDO could result in future impairments. |
Debt obligations
Debt obligations | 3 Months Ended |
Mar. 31, 2022 | |
Debt obligations | NOTE 7 – Debt obligations: a. Short-term debt: March 31, December 31, Weighted average interest Maturity 2022 2021 (U.S. $ in millions) Convertible senior debentures 0.25 % 2026 23 23 Current maturities of long-term liabilities (1) 2,054 1,403 Total short-term debt $ 2,077 $ 1,426 (1) In April 2022, Teva repaid $302 million of its 3.25% senior notes at maturity. Convertible senior debentures The principal amount of Teva’s 0.25% convertible senior debentures due 2026 was $23 million as of March 31, 2022 and December 31, 2021. These convertible senior debentures include a “net share settlement” feature according to which the principal amount will be paid in cash and in case of conversion, only the residual conversion value above the principal amount will be paid in Teva shares. Due to the “net share settlement” feature, exercisable at any time, these convertible senior debentures are classified in the Balance Sheet under short-term debt. b. Long-term debt: Weighted average interest Maturity March 31, December 31, (U.S. $ in millions) Senior notes EUR 1,500 million 1.13 % 2024 698 708 Sustainability-linked senior notes EUR 1,500 million (1)(*) 4.38 % 2030 1,674 1,699 Senior notes EUR 1,300 million 1.25 % 2023 660 670 Sustainability-linked senior notes EUR 1,100 million (2)(*) 3.75 % 2027 1,228 1,246 Senior notes EUR 1,000 million 6.00 % 2025 1,117 1,134 Senior notes EUR 900 million 4.50 % 2025 1,004 1,020 Senior notes EUR 750 million 1.63 % 2028 833 844 Senior notes EUR 700 million (3) 3.25 % 2022 302 307 Senior notes EUR 700 million 1.88 % 2027 780 792 Senior notes USD 3,500 million 3.15 % 2026 3,496 3,496 Senior notes USD 3,000 million 2.80 % 2023 1,453 1,453 Senior notes USD 2,000 million 4.10 % 2046 1,986 1,986 Senior notes USD 1,250 million 6.00 % 2024 1,250 1,250 Senior notes USD 1,250 million 6.75 % 2028 1,250 1,250 Senior notes USD 1,000 million 7.13 % 2025 1,000 1,000 Sustainability-linked senior notes USD 1,000 million (2)(*) 4.75 % 2027 1,000 1,000 Sustainability-linked senior notes USD 1,000 million (1)(*) 5.13 % 2029 1,000 1,000 Senior notes USD 844 million 2.95 % 2022 714 715 Senior notes USD 789 million 6.15 % 2036 783 783 Senior notes CHF 350 million 0.50 % 2022 378 382 Senior notes CHF 350 million 1.00 % 2025 380 383 Total senior notes 22,985 23,118 Other long-term debt 2 2 Less current maturities (2,054 ) (1,403 ) Less debt issuance costs (93 ) (100 ) Total senior notes and loans $ 20,840 $ 21,617 (1) If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.125%-0.375% (2) If Teva fails to achieve certain sustainability performance targets, a one-time 0.15%-0.45% (3) In April 2022, Teva repaid $302 million of its 3.25% senior notes at maturity. * Interest rate adjustments and a potential one-time 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, if any. The long-term debt outlined in the above table is generally redeemable at any time at varying redemption prices plus accrued and unpaid interest. Long-term debt as of March 31, 2022 is effectively denominated in the following currencies: 63% in U.S. dollar, 35% in euro and 2% in Swiss franc. Teva’s principal sources of short-term liquidity are its cash on hand, existing cash investments, liquid securities and available credit facilities, primarily , as of March 31, 2022, its $2.3 billion unsecured syndicated revolving credit facility entered into in April 2019, which was replaced in April 2022 (“RCF”). In April 2022, Teva entered into an unsecured syndicated sustainability-linked revolving credit facility of $1.8 billion with a maturity date of April 2026 Under the terms of the RCF, the leverage ratio shall not exceed 4.50x in the second and third quarters of 2022, 4.25x in the fourth quarter of 2022, 4.00x in the first, second and third quarters of 2023, 3.75x in the fourth quarter of 2023 and 3.50x in 2024 and onwards. The RCF can be used for general corporate purposes, including repaying existing debt. As of March 31, 2022 and as of the date of this Quarterly Report on Form 10-Q, no amounts were outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date the financial statements are issued. Under specified circumstances, including non-compliance with any of the covenants described above and the unavailability of any waiver, amendment or other modification thereto, the Company will not be able to borrow under the RCF. Additionally, violations of the covenants, under the above-mentioned circumstances, would result in an event of default in all borrowings under the RCF and, when greater than a specified threshold amount as set forth in each series of senior notes and sustainability-linked senior notes is outstanding, could lead to an event of default under the Company’s senior notes and sustainability-linked senior notes due to cross acceleration provisions. Teva expects that it will continue to have sufficient cash resources to support its debt service payments and all other financial obligations within one year from the date that the financial statements are issued. |
Derivative instruments and hedg
Derivative instruments and hedging activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities | NOTE 8 – Derivative instruments and hedging activities: a. Foreign exchange risk management: In the first three months of 2022, approximately 48% of Teva’s revenues were denominated in currencies other than the U.S. dollar. As a result, Teva is subject to significant foreign currency risks. The Company enters into forward exchange contracts, purchases and writes options in order to hedge the currency exposure on balance sheet items, revenues and expenses. In addition, the Company takes measures to reduce exposure by using natural hedging. The Company also acts to offset risks in opposite directions among the subsidiaries within Teva. The currency hedged items are usually denominated in the following main currencies: the euro, the Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar, the Polish zloty, the Indian rupee and other European and Latin American currencies. Depending on market conditions, foreign currency risk is also managed through the use of foreign currency debt. The Company may choose to hedge against possible fluctuations in foreign subsidiaries net assets (“net investment hedge”) and entered into cross currency swaps and forward contracts in the past in order to hedge such an exposure. Most of the counterparties to the derivatives are major banks and the Company is monitoring the associated inherent credit risks. The Company does not enter into derivative transactions for trading purposes. b. Interest risk management: The Company raises capital through various debt instruments, including senior notes, sustainability-linked senior notes, bank loans, convertible debentures and syndicated revolving credit facility that bear a fixed or variable interest rate. In some cases, the Company has swapped from a fixed to a variable interest rate (“fair value hedge”) and from a fixed to a fixed interest rate with an exchange from a currency other than the functional currency (“cash flow hedge”), thereby reducing overall interest expenses or hedging risks associated with interest rate fluctuations. c. Bifurcated embedded derivatives: Upon issuance of sustainability-linked senior notes, Teva recognized embedded derivatives related to interest rate adjustments and a potential one-time low-to-middle-income d. Derivative instruments outstanding: The following table summarizes the classification and fair values of derivative instruments: Fair value Not designated as hedging instruments March 31, 2022 December 31, 2021 Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ 56 $ 30 Liability derivatives: Other current liabilities: Option and forward contracts (31 ) (23 ) The table below provides information regarding the location and amount of pre-tax Financial expenses, net Net revenues Three months ended, Three months ended, March 31, 2022 March 31, March 31, 2022 March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 258 $ 290 $ (3,661 ) $ (3,982 ) Option and forward contracts (1) (5 ) (70 ) — — Option and forward contracts economic hedge (2) — — (19 ) (28 ) (1) Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net. (2) Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar and some other currencies to protect its projected operating results for 2021 and 2022. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. In the first quarter of 2022, the positive impact from these derivatives recognized under revenues was $19 million. In the first quarter of 2021, the positive impact from these derivatives recognized under revenues was $28 million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. e. Amortizations due to terminated derivative instruments: Forward starting interest rate swaps and treasury lock agreements In 2015, Teva entered into forward starting interest rate swaps and treasury lock agreements to protect the Company from interest rate fluctuations in connection with a future debt issuance the Company was planning. These forward starting interest rate swaps and treasury lock agreements were terminated in July 2016 upon the debt issuance. The termination of these transactions resulted in a loss position of $493 million, which was recorded in other comprehensive income (loss) and is amortized under financial expenses, net over the life of the debt. With respect to these forward starting interest rate swaps and treasury lock agreements, losses of $7 million and $8 million were recognized under financial expenses, net for each of the three months ended March 31, 2022 and 2021, respectively. Fair value hedge In the third quarter of 2016, Teva terminated interest rate swap agreements designated as a fair value hedge relating to its 2.95% senior notes due 2022 with respect to $844 million notional amount and its 3.65% senior notes due 2021 with respect to $450 million notional amount. Settlement of these transactions resulted in a gain position of $41 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense. In the third quarter of 2019, Teva terminated $500 million interest rate swap agreements designated as a fair value hedge relating to its 2.8% senior notes due 2023 with respect to $3,000 million notional amount. Settlement of these transactions resulted in cash proceeds of $10 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt. Cash flow hedge In the fourth quarter of 2019, Teva terminated $588 million cross-currency swap agreements against its outstanding 3.65% senior notes maturing in November 2021. Settlement of these transactions resulted in cash proceeds of $95 million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt. With respect to the interest rate swap and cross-currency swap agreements, a |
Legal Settlements and Loss Cont
Legal Settlements and Loss Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Legal Settlements and Loss Contingencies | NOTE 9 – Legal settlements and loss contingencies: In the first quarter of 2022, Teva recorded expenses of $1,124 million in legal settlements and loss contingencies, compared to $104 million in the first quarter of 2021. The expenses in the first quarter of 2022 were mainly related to an update of the estimated settlement provision recorded in connection with the remaining opioid cases. The expenses in the first quarter of 2021 were mainly due to the provision for the carvedilol patent litigation. As of March 31, 2022 and December 31, 2021, Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses and other taxes and long-term liabilities was $3,762 million and $2,710 million, respectively. In connection with Teva’s provision for legal settlements and loss contingencies as of March 31, 2022 and December 31, 2021, related to the Ontario Teachers Securities Litigation, Teva also recognized an insurance receivable. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and contingencies | NOTE 10 – 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. 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 where the exposures were fully resolved in the prior year, or determined to no longer meet the materiality threshold for disclosure, or were substantially resolved. 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 data. Intellectual Property Litigation From time to time, Teva seeks to develop generic and biosimilar versions of patent-protected pharmaceuticals and biopharmaceuticals 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. For many biosimilar products that are covered by patents, Teva participates in the “patent dance” procedures of the Biologics Price Competition and Innovation Act (BPCIA), which allow for the challenge to originator patents prior to biosimilar product approval. 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 or biosimilar 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. Teva could also be sued for patent infringement outside of the context of the Hatch-Waxman Act or BPCIA. For example, Teva could be sued for patent infringement after commencing sales of a product. This type of litigation can involve any of Teva’s pharmaceutical products, not just its generic and biosimilar products. 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. 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 the District Court for the District of Delaware for infringement of a patent 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- two-to-one In October 2016, Adapt and Emergent Biosciences Inc. (“EBSI”) sued Teva in the District Court for the District of New Jersey, asserting infringement of its patents expiring in 2035, as a result of Teva’s filing of its Abbreviated New Drug Application (“ANDA”) seeking to market a generic version of Narcan ® ® ® 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 insurance it desires, or any insurance on reasonable terms, in all of its markets. Teva and its subsidiaries are parties to litigation relating to previously unknown nitrosamine impurities discovered in certain products. The discovery led to a global recall of single and combination valsartan medicines around the world starting in July 2018 and to subsequent recalls on other products. The nitrosamine impurities in valsartan are allegedly found in the active pharmaceutical ingredient (“API”) supplied by multiple API manufacturers. Teva’s products allegedly at issue in the various nitrosamine-related litigations pending in the United States include valsartan, losartan, metformin and ranitidine. There are currently two Multi-District Litigations (“MDL”) pending in the United States District Courts against Teva and numerous other manufacturers. One MDL is pending in the United States District Court for the District of New Jersey for valsartan, losartan and irbesartan. Teva is not named in complaints with respect to irbesartan. The second MDL is pending in the United States District Court for the Southern District of Florida for ranitidine. The lawsuits against Teva in the MDLs consist of individual personal injury and/or product liability claims and economic damages claims brought by consumers and end payors on behalf of purported classes of other consumers and end payors as well as medical monitoring class claims. Defendants’ motions to dismiss in the valsartan, losartan and irbesartan MDL were denied in part and granted in part and plaintiffs have filed amended complaints. In the ranitidine MDL, the generics manufacturers’ motions to dismiss have been granted, although certain plaintiffs have appeals pending. Teva, as well as other generic manufacturers, is also named in several state court actions asserting allegations similar to those in the ranitidine MDL and the valsartan and losartan MDL. The state court valsartan and losartan actions are pending in New Jersey and Delaware and are currently stayed. The state court ranitidine cases naming Teva are pending in California, Illinois and Pennsylvania. One ranitidine case pending in Madison County, Illinois currently has a trial date scheduled for August 2022. In addition to these MDLs, Teva has also been named in a consolidated proceeding pending in the United States District Court for the District of New Jersey brought by individuals and end payors seeking economic damages on behalf of purported classes of consumers and end payors who purchased Teva’s, as well as other generic manufacturers’ metformin products. Defendants’ motion to dismiss the plaintiffs’ amended metformin complaint from June 2021, was granted without prejudice with respect to the consumer economic loss plaintiffs and granted in part and denied in part with respect to the end payor plaintiffs. Plaintiffs were granted leave to file a second amended complaint. In June 2021, Teva was named in one personal injury metformin case seeking monetary damages, which has been removed to federal court in Florida. Teva’s motion to dismiss the Florida plaintiff’s amended complaint was granted and the Florida plaintiff was granted leave to file a second amended complaint. Similar lawsuits are pending in Canada and Germany. 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 been named as defendants in cases that allege antitrust violations arising from such settlement agreements. The plaintiffs in these cases are usually direct and indirect purchasers of pharmaceutical products, some of whom assert claims on behalf of classes of all direct and indirect purchasers, and they typically allege that (i) Teva received something of value from the innovator in exchange for an agreement to delay generic entry, and (ii) significant savings could have been realized if there had been no settlement agreement and generic competition had commenced earlier. These plaintiffs 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 often automatically tripled 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 U.S. Supreme Court held, in Federal Trade Commission (“FTC”) 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 May 2015, Cephalon Inc., a Teva subsidiary (“Cephalon”), entered into a consent decree with the FTC (the “Modafinil Consent Decree”) under which the FTC dismissed antitrust claims against Cephalon related to certain finished modafinil products (marketed as PROVIGIL ® by certain restrictions and limitations, for a period of ten years, when entering into settlement agreements to resolve patent litigation in the United States. Those restrictions and limitations were further refined in connection with the settlement of other unrelated FTC antitrust lawsuits and the term of the Modafinil Consent Decree was extended until 2029. In November 2020, the European Commission issued a final decision in its proceedings against both Cephalon and Teva, finding that the 2005 settlement agreement between the parties had the object and effect of hindering the entry of generic modafinil, and imposed fines totaling euro 60.5 million on Teva and Cephalon. Teva and Cephalon filed an appeal against the decision in February 2021. A provision for this matter was included in the financial statements. Teva has provided the European Commission with a bank guarantee in the amount of the imposed fines. In August 2019, certain direct-purchaser plaintiffs filed claims in federal court in Philadelphia naming Teva and its affiliates as defendants alleging that certain patent litigation settlement agreements relating to AndroGel ® ® $350 million at the time of the earlier Watson/Solvay settlement and approximately $140 million at the time Actavis launched its generic version of AndroGel ® 1 In December 2011, three groups of plaintiffs sued Wyeth and Teva for alleged violations of the antitrust laws in connection with their November 2005 settlement of patent litigation involving extended release venlafaxine (generic Effexor XR ® ® $2.6 billion at the time of settlement and at the time Teva launched its generic version of Effexor XR ® 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 ® ® approximately $950 million at the time of the settlement and approximately $2.3 billion at the time Teva launched its generic version of Lamictal ® In April 2013, purported classes of direct purchasers of, and end payers for, Niaspan ® opt-out ® ® 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 ® manufacturers violated the antitrust laws. The court dismissed the end-payers’ ® ® ® Putative classes of direct-purchaser and end-payer ® ® ® On July 15, 2021, the U.K. Competition and Markets Authority (“CMA”) issued a decision imposing fines for breaches of U.K. competition law by Allergan, Actavis UK and Auden Mckenzie and a number of other companies in connection with the supply of 10mg and 20mg hydrocortisone tablets in the U.K. The decision combines the CMA’s three prior investigations into the supply of hydrocortisone tablets in the U.K. and encompasses those allegations which were subject to prior statements of objections (a provisional finding of breach of the Competition Act), in particular those under case 50277-1 50277-2 In March 2021, following the 2019 European Commission’s inspection of Teva and subsequent request for information, the European Commission opened a formal antitrust investigation to assess whether Teva may have abused a dominant position by delaying the market entry and uptake of medicines that compete with COPAXONE. Annual sales of COPAXONE in the European Economic Area for 2021 were approximately $373 million. Between September 1, 2020 and December 20, 2020, separate plaintiffs purporting to represent putative classes of direct and indirect purchasers and opt-out ® ® ® In February 2021, the State of New Mexico filed a lawsuit against Teva and certain other defendants related to various medicines used to treat HIV. Between September and December 2021, several private plaintiffs including retailers and health insurance providers filed similar claims in federal court in the Northern District of California and in the District of Minnesota. As they relate to Teva, the lawsuits challenge settlement agreements Teva entered into with Gilead in 2013 and 2014 to resolve patent litigation relating to Teva’s generic versions of Viread ® ® ® ® ® Atripla ® ® ® ® In August 2021, a plaintiff filed a putative class action suit in the United States District Court for the Eastern District of Pennsylvania against Takeda and several generic manufacturers, including Watson and Teva, alleging violations of the antitrust laws in connection with their settlement of patent litigation involving colchicine tablets (generic Colcrys ® motion-to-dismiss ® 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. In 2015 and 2016, Actavis and Teva USA each respectively received subpoenas from the U.S. Department of Justice (“DOJ”) Antitrust Division seeking documents and other information relating to the marketing and pricing of certain Teva USA generic products and communications with competitors about such products. On August 25, 2020, a federal grand jury in the Eastern District of Pennsylvania returned a three count indictment charging Teva USA with criminal felony Sherman Act violations. See No. 20-cr-200 E-Cream, 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. An adverse resolution of this matter may include fines, penalties, financial forfeiture and compliance conditions. In 2015 and 2016, Actavis and Teva USA each respectively received a subpoena from the Connecticut Attorney General seeking documents and other information relating to potential state antitrust law violations. Subsequently, 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 alleging price fixing of generic products in the United States. That complaint was later amended to add new states as named plaintiffs, as well as new allegations and new state law claims, and on June 18, 2018, the attorneys general of 49 states plus Puerto Rico and the District of Columbia filed a consolidated amended complaint against Actavis and Teva, as well as other companies and individuals. On May 10, 2019, most (though not all) of these attorneys general filed another antitrust complaint against Actavis, Teva and other companies and individuals, alleging price-fixing and market allocation with respect to additional generic products. On November 1, 2019, the state attorneys general filed an amended complaint, bringing the total number of plaintiff states and territories to 54. The amended complaint alleges that Teva was at the center of a conspiracy in the generic pharmaceutical industry, and asserts that Teva and others fixed prices, rigged bids, and allocated customers and market share with respect to certain additional products. On June 10, 2020, most, but not all, of the same states, with the addition of the U.S. Virgin Islands, filed a third complaint in the District of Connecticut naming, among other defendants, Actavis, but not Teva USA, in a similar complaint relating to dermatological generics products. On September 9, 2021, the states’ attorneys general amended their third complaint to, among other things, add California as a plaintiff. In the various complaints described above, 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. All such complaints have been transferred to the generic drug multidistrict litigation in the Eastern District of Pennsylvania (“Pennsylvania MDL”). On July 13, 2020, the court overseeing the Pennsylvania MDL chose the attorneys’ general November 1, 2019 amended complaint, referenced above, along with certain complaints filed by private plaintiffs, to proceed first in the litigation as bellwether complaints. Teva moved the court to reconsider that ruling. On February 9, 2021, Teva’s motion to reconsider that ruling was granted, and on May 7, 2021, the Court chose the attorneys’ general third complaint filed on June 10, 2020 and subsequently amended to serve as a bellwether complaint in the Pennsylvania MDL, along with certain complaints filed by private plaintiffs. Teva settled with the State of Mississippi for $925,000 in June 2021 and with the State of Louisiana for $1,450,000 in March 2022. Pursuant to these settlements, both states have dismissed their claims against Actavis and Teva USA, as well as certain former employees of Actavis and Teva USA. On December 9, 2021, the Court entered an order setting the schedule for the proceedings in the bellwether cases. The order did not include trial dates, but provides for the parties to complete briefing on motions for summary judgement in early 2024. Beginning on March 2, 2016, and continuing through December 2020, 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 and indirect purchaser opt-out In March 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. Subsequently, in August 2020, the U.S. Attorney’s office in Boston, Massachusetts brought a civil action in the U.S. District Court for the District of Massachusetts alleging violations of the federal Anti-Kickback Statute, and asserting causes of action under the federal False Claims Act and state law. It is alleged that Teva caused the submission of false claims to Medicare through Teva’s donations to bona fide independent charities that provide financial assistance to patients. An adverse judgment may involve damages, civil penalties and injunctive remedies. On October 19, 2020, Teva filed a motion to dismiss the complaint on the grounds that it fails to state a claim. On September 10, 2021, the Court granted Teva’s motion to dismiss the unjust enrichment claim and denied the remainder of the motion. On October 15, 2021, Teva filed an answer to the complaint. The proceeding is in early stages. Additionally, on January 8, 2021, Humana, Inc. filed an action against Teva in the United States District Court for the Middle District of Florida based on the allegations raised in the August 2020 complaint filed by the U.S. Attorney’s Office in Boston. On April 2, 2021, Teva filed a motion to dismiss the claims on the grounds that the claims are time-barred and/or insufficiently pled, and that motion remains pending. In April 2021, a city and county in Washington sued Teva in the United States District Court for the Western District of Washington for alleged violations of the Racketeer Influenced and Corrupt Organizations Act, Washington’s Consumer Protection Act, and unjust enrichment concerning Teva’s sale of COPAXONE. Plaintiffs purport to represent a nationwide class of health plans and a subclass of Washington-based health plans that purchased and/or reimbursed health plan members for COPAXONE. Plaintiffs allege that Teva engaged in several fraudulent schemes that resulted in plaintiffs and the putative class members purchasing and/or reimbursing plan members for additional prescriptions of COPAXONE and/or at inflated COPAXONE prices. Plaintiffs seek treble damages for the excess reimbursements and inflated costs, as well as injunctive relief. On September 28, 2021, plaintiffs filed an amended complaint. On November 17, 2021, Teva moved to dismiss the suit, on the grounds that plaintiffs’ claims are barred by the applicable statutes of limitations and the direct purchaser rule, suffer from jurisdictional defects, and fail to plausibly allege fraud or other elements of their claims. That motion remains pending. On June 29, 2021, Mylan Pharmaceuticals (“Mylan”) sued Teva in the District Court for the District of New Jersey. On March 11, 2022 and March 15, 2022, FWK Holdings, LLC, KPH Healthcare Servs., Inc. d/b/a Kinney Drugs, Inc., Meijer Inc., Meijer Distribution, Inc., Labor-Management Healthcare Fund, the Mayor and City Council of Baltimore, and the New York State Teamsters Council Health and Hospital Fund sued Teva in the District Court for the District of New Jersey on behalf of themselves and others similarly situated direct and indirect purchasers of COPAXONE. The complaints assert claims for alleged violations of the Lanham Act, state and federal unfair competition and monopolization laws, tortious interference, trade libel, and a violation of the Racketeer Influenced and Corrupt Organizations Act. Plaintiffs claim Teva was involved in an unlawful scheme to delay and hinder generic competition concerning COPAXONE sales. Plaintiffs seek damages for lost profits and expenses, disgorgement, restitution, treble damages, attorneys’ fees and costs, and injunctive relief. Teva has moved to dismiss the complaint filed by Mylan on the grounds, among others, that none of its challenged conduct violates the law. That motion remains pending, and Teva’s deadline to answer or move to dismiss the remaining complaints is June 15, 2022. Opioids Litigation Since May 2014, more than 3,500 complaints have been 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, other governmental agencies, tribes and private plaintiffs (including various putative class actions of individuals) 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 Opioid Proceeding”) and many of the cases filed in state court have been removed to federal court and consolidated into the MDL Opioid Proceeding. Two cases that were included in the MDL Opioid Proceeding were transferred back to federal district court for additional discovery, pre-trial No. 14-cv-04361 No. 18-cv-07591-CRB ® ® non-personal non-economic On April 19, 2021, a bench trial in California (The People of the State of California, acting by and through Santa Clara County Counsel James R. Williams, et. al. v. Purdue Pharma L.P., et. al.) commenced against Teva and other defendants focused on the marketing of branded opioids. On December 14, 2021, the court issued its final judgment in favor of the defendants on all claims. Teva expects that the plaintiffs will appeal this judgment. On June 29, 2021, a jury trial in New York ( In re Opioid Litigation In May 2019, Teva settled the Oklahoma litigation brought by the Oklahoma Attorney General (State of Oklahoma, ex. rel. Mike Hunter, Attorney General of Oklahoma vs. Purdue Pharma L.P., et. al.) for $85 million. The settlement did not include any admission of violation of law for any of the claims or allegations made. As the Company demonstrated a willingness to settle part of the litigation, for accounting purposes, management considered a portion of opioid-related cases as probable and, as such, recorded an estimated provision in the second quarter of 2019. Given the relatively early stage of the cases, management viewed no amount within the range to be the most likely outcome. Therefore, management recorded a provision for the reasonably estimable minimum amount in the assessed range for such opioid-related cases in accordance with Accounting Standards Codification 450 “Accounting for Contingencies.” Additionally, on October 21, 2019, Teva reached a settlement with the two plaintiffs in the MDL Opioid Proceeding that was scheduled for trial for the Track One case, Cuyahoga and Summit Counties of Ohio. Under the terms of the settlement, Teva agreed to provide the two counties with opioid treatment medication, buprenorphine naloxone (sublingual tablets), known by the brand name Suboxone ® Also on October 21, 2019, Teva and certain other defendants reached an agreement in principle with a group of Attorneys General for a nationwide settlement. This nationwide settlement was designed to provide a mechanism by which the Company attempts to seek resolution of remaining potential and pending opioid claims by both the U.S. states and political subdivisions (i.e., counties, tribes and other plaintiffs) thereof. On July 21, 2021, it was announced that four other defendants (not including Teva) have reached a nationwide settlement, subject to certain conditions, which includes payment of up to approximately $26 billion spread over up to 18 years. During the passage of time since then, the Company has continued to negotiate the terms and conditions of a nationwide settlement. There remain many complex financial and legal issues still outstanding, including indemnification claims by Allergan against the Company, arising from the acquisition of the Actavis Generics business, which makes the timing of any outcome uncertain. In that regard, Allergan is also in settlement negotiations over various opioid matters and has asked Teva, pursuant to indemnification provisions in agreements between Teva and Allergan arising from Teva’s acquisition of the Actavis generics business, to contribute to those settlements. On December 8, 2021, Allergan reached a settlement in the New York opioids litigation. Allergan has indicated that it may seek indemnification from Teva for a significant portion of that New York settlement, and that it could initiate arbitration proceedings to resolve the dispute. Teva disputes that, under the circumstances, Teva is obligated to provide indemnification in connection with Allergan’s New York settlement. On September 28, 2021, Teva reached an agreement with the Attorney General of Louisiana that settles the state’s opioid-related claims. The agreement was contingent that all political subdivisions of Louisiana will formally release Teva as part of the settlement, which Teva was advised has occurred by the Attorney General of Louisiana. Under the terms of the settlement, Teva will pay Louisiana $15 million over an 18-year On February 4, 2022, the Company reached an agreement with the Attorney General of the State of Texas that settles Texas’ and its subdivisions opioid-related claims. On March 10, 2022, Texas confirmed that at least 96% of the population of subdivisions will formally release Teva as part of the settlement. Under the terms of the settlement, Teva will pay Texas $150 million over a 15-year ® 10 On March 21, 2022, Teva reached an agreement with the Attorney General of Rhode Island that settles Rhode Island’s and its subdivisions’ opioid-related claims. Under the terms of the settlement, Teva will pay Rhode Island $21 million over 13 years, in addition to attorneys’ fees and costs, and will provide generic Narcan ® ® 10 On |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income taxes | NOTE 11 – Income taxes: In the first quarter of 2022, Teva recognized a tax expense pre-tax loss pre-tax Teva’s tax rate for the first quarter of 2022 was mainly affected by legal settlement charges , adjustments to valuation allowances on deferred tax assets and interest expense disallowances. The statutory Israeli corporate tax rate is 23% in 2022. 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, interest expense disallowances, tax benefits in Israel and other countries, as well as infrequent or non-recurring Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. Trial in this case is scheduled to begin in July 2022. A final and binding decision against Teva in this case may lead to an impairment of $138 million. The Israeli tax authorities issued tax assessment decrees for 2008-2012 and 2013-2016, challenging the Company’s positions on several issues. Teva has protested the 2008-2012 and 2013-2016 decrees before the Central District Court in Israel. In October 2021, the Central District Court in Israel held in favor of the Israeli tax authorities with respect to 2008-2011 decrees. The case with respect to 2012-2016 remains pending with similar legal claims. The October 2021 Central District Court decision found that Teva has a tax liability to the Israeli government for 2008-2011 of approximately $350 million, of which a portion will be paid in cash during 2022 and 2023, and the remaining portion will be offset by carried forward losses that Teva would otherwise be entitled to. Teva appealed the decision to the Israeli Supreme Court and expects the appeal hearings to start in the second half of 2022. The Company believes it has adequately provided for all of its uncertain tax positions, including those items currently under dispute, however, adverse results could be material. |
Other assets impairments, restr
Other assets impairments, restructuring and other items | 3 Months Ended |
Mar. 31, 2022 | |
Other assets impairments, restructuring and other items | NOTE 12 – Other assets impairments, restructuring and other items: Three months ended March 31, 2022 2021 (U.S. $ in millions) Impairments of long-lived tangible assets (1) $ 16 $ 48 Contingent consideration 33 3 Restructuring 57 81 Other 21 4 Total $ 128 $ 137 (1) Including impairments related to exit and disposal activities . Impairments Impairments of tangible assets for the three months ended March 31, 2022 and 2021 were $16 million and $48 million, respectively. The impairment for the three months ended March 31, 2022 was mainly related to certain assets in North America. The impairment for the three months ended March 31, 2021 was mainly related to certain assets in Europe. Teva may record additional impairments in the future, to the extent it changes its plans on any given asset and/or the assumptions underlying such plans, as a result of its network consolidation activities. Contingent consideration In the three months ended March 31, 2022, Teva recorded an expense of $33 million for contingent consideration, compared to an expense of $3 million in the three months ended March 31, 2021. The expense in the first three months of 2022 was mainly related to a change in the estimated future royalty payments in connection with lenalidomide (generic equivalent of Revlimid ® Restructuring In the three months ended March 31, 2022, Teva recorded $57 million of restructuring expenses, compared to $81 million of restructuring expenses in the three months ended March 31, 2021. The expenses for the three months ended March 31, 2022 and March 31, 2021 were primarily related to network consolidation activities and residual expenses of the restructuring plan announced in 2017. The following tables provide the components of restructuring costs: Three months ended March 31, 2022 2021 (U.S. $ in millions) Restructuring Employee termination $ 52 $ 79 Other 5 2 Total $ 57 $ 81 The following table provides the components of and changes in the Company’s restructuring accruals: Employee termination Other Total (U.S. $ in millions ) Balance as of January 1, 2022 $ (131 ) $ (7 ) $ (138 ) Provision (52 ) (5 ) (57 ) Utilization and other* 59 6 65 Balance as of March 31, 2022 $ (124 ) $ (6 ) $ (130 ) Employee termination Other Total (U.S. $ in millions ) Balance as of January 1, 2021 $ (115 ) $ (7 ) $ (122 ) Provision (79 ) (2 ) (81 ) Utilization and other* 33 2 35 Balance as of March 31, 2021 $ (161 ) $ (7 ) $ (168 ) * Includes adjustments for foreign currency translation. Significant regulatory and other events 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 a previously unknown nitrosamine impurity called NDMA found in valsartan API supplied by Zhejiang Huahai Pharmaceuticals Co. Ltd. (“Huahai”). Since July 2018, Teva has been actively engaged with global regulatory authorities in reviewing its sartan and other products to determine whether NDMA and/or other related nitrosamine impurities are present in specific products. Where necessary, Teva has initiated additional voluntary recalls. In December 2019, Teva reached a settlement with Huahai resolving Teva’s claims related to certain sartan API supplied by Huahai. Under the settlement agreement, Huahai agreed to compensate Teva for some of its direct losses and provide it with prospective cost reductions for API. The settlement does not release Huahai from liability for any losses Teva may incur as a result of third party personal injury or product liability claims relating to the sartan API at issue. In addition, multiple lawsuits have been filed in connection with this matter, which may lead to additional customer penalties, impairments and litigation costs. In the second quarter of 2020, Teva’s operations in its manufacturing facilities in Goa, India were temporarily suspended due to a water supply issue. During the second half of 2020, Teva completed partial remediation of this issue and restarted limited supply from its Goa facilities. The site experienced some additional delays in the first quarter of 2021 due to labor related issues, but the situation stabilized during the second quarter of 2021. The water supply remediation is expected to be completed during the second quarter of 2022, and in the meantime the site is operating under an interim water solution without any material impact expected on compliance and supply capacity. The impact to Teva’s financial results for the three months ended March 31, 2022 was immaterial. In June 2021, the Company temporarily paused manufacturing at its Irvine, California facility in the United States, and suspended release of product from the facility pending completion of an open manufacturing investigation. In July 2021, the FDA initiated an establishment inspection at the facility. On August 18, 2021, the Company issued field alert reports to the FDA for products manufactured at the Irvine facility and put Irvine manufactured products in Teva’s distribution center on hold. On August 20, 2021, the FDA completed its inspection and issued a Form FDA-483 concerns in a manner consistent with current good manufacturing practice (“CGMP”) requirements, and was in discussions with the FDA Drug Shortage Staff (DSS) and FDA Office of Manufacturing Quality (OMQ) to recommence distribution, release and manufacture of certain medically necessary products from the site under defined controls and protocols. On March 22, 2022, the Company announced its decision to permanently cease all manufacturing activities and to close the site, and to transfer certain products to other facilities. Teva will remain in contact with the FDA regarding the status of the Irvine, California site to ensure that the Company continues to comply with all relevant CGMP requirements, particularly those involved with product transfers to other sites within the Teva network. If Teva is unable to address FDA inspection issues satisfactorily, it could be subject to additional regulatory actions. Teva has considered these developments and, as of March 31, 2022, recorded $54 million costs in its financial statements related to this matter. Teva will continue to assess potential financial implications, including loss of revenues, impairments, inventory write offs, customer penalties, costs of additional remediation and/or FDA enforcement actions. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings (Loss) per Share | NOTE 13 – Earnings (Loss) per share: Basic earnings and loss per share are computed by dividing net income (loss) attributable to Teva’s ordinary shareholders by the weighted average number of ordinary shares outstanding (including fully vested restricted share units (“RSUs”) and performance share units (“PSUs”) during the period, net of treasury shares. In computing diluted loss per share for the three months ended March 31, 2022, no account was taken of the potential dilution that could occur upon the exercise of options and non-vested In computing diluted earnings per share for the three months ended March 31, 2021, basic earnings per share were adjusted to take into account the potential dilution that could occur upon the exercise of options and non-vested The weighted average diluted shares outstanding used for the fully diluted share calculations both the three months ended March 31, 2022 and 2021 were 1,107 million shares. Basic and diluted los s was |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated other comprehensive income (loss) | NOTE 14 – Accumulated other comprehensive income (loss): The components of, and changes within, accumulated other comprehensive income (loss) attributable to Teva are presented in the table below: Net Unrealized Gains (Losses) Benefit Plans Foreign Derivative Actuarial gains Total (U.S. $ in millions) Balance as of December 31, 2021, net of taxes $ (2,274 ) $ (324 ) $ (85 ) $ (2,683 ) Other comprehensive income (loss) before reclassifications (4 ) — — (4 ) Amounts reclassified to the statements of income — 7 7 Net other comprehensive income (loss) before tax (4 ) 7 — 3 Corresponding income tax (7 ) — — (7 ) Net other comprehensive income (loss) after tax* (11 ) 7 — (4 ) Balance as of March 31, 2022, net of taxes $ (2,285 ) $ (317 ) $ (85 ) $ (2,687 ) * Amounts do not include a $53 million loss from foreign currency translation adjustments attributable to non-controlling Net Unrealized Gains (Losses) Benefit Plans Foreign Derivative Actuarial gains Total (U.S. $ in millions) Balance as of December 31, 2020, net of taxes $ (1,919 ) $ (363 ) $ (117 ) $ (2,399 ) Other comprehensive income (loss) before reclassifications (174 ) — (174 ) Amounts reclassified to the statements of income — 9 — 9 Net other comprehensive income (loss) before tax (174 ) 9 — (165 ) Corresponding income tax 33 (2 ) — 31 Net other comprehensive income (loss) after tax* (141 ) 7 — (134 ) Balance as of March 31, 2021, net of taxes $ (2,060 ) $ (356 ) $ (117 ) $ (2,534 ) * Amounts do not include a $67 million loss non-controlling |
Segments
Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segments | NOTE 15 – Segments: Teva 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, the United Kingdom and certain other European countries. (c) International Markets segment, which includes all countries other than those in the North America and Europe segments. In addition to these three segments, Teva has other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing 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 from time to time. 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 3 and note 6. a. Segment information: Three months ended March 31, 2022 North America Europe International Markets (U.S. $ in millions) Revenues $ 1,737 $ 1,156 $ 492 Gross profit 890 694 286 R&D expenses 143 58 20 S&M expenses 245 196 97 G&A expenses 112 59 29 Other income (11 ) § (40 ) Segment profit $ 402 $ 381 $ 179 § Represents an amount less than $0.5 million. Three months ended March 31, 2021 North America Europe International Markets (U.S. $ in millions) Revenues $ 1,989 $ 1,214 $ 490 Gross profit 1,074 688 260 R&D expenses 160 66 18 S&M expenses 229 214 96 G&A expenses 111 70 26 Other income (3 ) § (2 ) Segment profit $ 577 $ 338 $ 122 § Represents an amount less than $0.5 million. The following table presents a reconciliation of Teva’s segment profits to its consolidated operating income (loss) and to consolidated income (loss) before income taxes for the three months ended March 31, 2022 and 2021: Three months ended March 31, 2022 2021 (U.S. $ in millions) North America profit $ 402 $ 577 Europe profit 381 338 International Markets profit 179 122 Total reportable segments profit 962 1,036 Profit of other activities 52 41 Total segments profit 1,013 1,077 Amounts not allocated to segments: Amortization 200 242 Other assets impairments, restructuring and other items 128 137 Intangible asset s 149 79 Legal settlements and loss contingencies 1,124 104 Other unallocated amounts 127 82 Consolidated operating income (loss) (713 ) 434 Financial expenses, net 258 290 Consolidated income (loss) before income taxes $ (971 ) $ 144 b. Segment revenues by major products and activities: The following tables present revenues by major products and activities for the three months ended March 31, 2022 and 2021: North America Three months ended March 31, 2022 2021 (U.S. $ in millions) Generic products $ 899 $ 1,053 AJOVY 36 31 AUSTEDO 154 146 BENDEKA ® ® 82 91 COPAXONE 86 164 Anda 342 289 Other 139 215 Total $ 1,737 $ 1,989 Europe Three months ended March 31, 2022 2021 (U.S. $ in millions) Generic products $ 876 $ 865 AJOVY 30 16 COPAXONE 72 100 Respiratory products 71 93 Other 107 140 Total $ 1,156 $ 1,214 International markets Three months ended March 31, 2022 2021 (U.S. $ in millions) Generic products $ 388 $ 392 AJOVY 6 1 COPAXONE 10 12 Other 88 85 Total $ 492 $ 490 |
Fair value measurement
Fair value measurement | 3 Months Ended |
Mar. 31, 2022 | |
Fair value measurement | NOTE 16 – Fair value measurement: Financial items carried at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 are classified in the tables below in one of the three categories of fair value levels: March 31, 2022 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 276 $ — $ — $ 276 Cash, deposits and other 1,899 — — 1,899 Investment in securities: Equity securities 16 — — 16 Other 6 — 1 7 Restricted cash 75 — — 75 Derivatives: Asset derivatives—options and forward contracts — 56 — 56 Liability derivatives: Options and forward contracts — (31 ) — (31 ) Bifurcated embedded derivatives — — § — Contingent consideration* — — (197 ) (197 ) Total $ 2,272 $ 25 $ (196 ) $ 2,101 December 31, 2021 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 220 $ — $ — $ 220 Cash, deposits and other 1,945 — — 1,945 Investment in securities: Equity securities 18 — — 18 Other 6 — 1 7 Restricted cash 33 — — 33 Derivatives: Asset derivatives—options and forward contracts — 30 — 30 Liability derivatives: Options and forward contracts — (23 ) — (23 ) Bifurcated embedded derivatives — — § — Contingent consideration* — — (176 ) (176 ) Total $ 2,222 $ 7 $ (175 ) $ 2,054 § Represents an amount less than $0.5 million. * Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. Teva determined the fair value of the liabilities 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 United States and Europe, and the risk adjusted discount rate for fair value measurement. A probability of success factor of 100% was used in the fair value calculation to reflect inherent regulatory and commercial risk of the contingent payments and IPR&D. The discount rate applied ranged from 7.3% to 10.7%. The weighted average discount rate, calculated based on the relative fair value of Teva’s contingent consideration liabilities, was 7.7%. The contingent consideration is evaluated quarterly, or more frequently, if circumstances dictate. Changes in the fair value of contingent consideration are recorded in consolidated statements of income. Significant changes in unobservable inputs, mainly the probability of success and cash flows projected, could result in material changes to the contingent consideration liabilities. The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs: Three months Three months (U.S. $ in millions) Fair value at the beginning of the period $ (175 ) (258 ) Redemption of debt securities — (9 ) Bifurcated embedded derivatives § — Adjustments to provisions for contingent consideration: Actavis Generics transaction (31 ) (3 ) Eagle transaction (2 ) — Settlement of contingent consideration: Eagle transaction 23 25 Additional contingent consideration resulting from Novetide acquisition* (11 ) — Fair value at the end of the period $ (196 ) $ (245 ) § Represents an amount less than $0.5 million. * In January 2022, Teva acquired 100% ownership of Novetide Ltd. (“Novetide”), which was previously accounted for as “investment in associated companies”. This transaction was accounted for as a business combination. Total consideration for the transaction included cash and certain contingent royalty payments through 2034. As part of the transaction, Teva recognized a gain under “Share in (profits) losses of associated companies, net”, reflecting the difference between the book value of its investment in Novetide and its fair value as of the date Teva completed its acquisition. 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 (see note 7) and are presented in the table below in terms of fair value (level 1 inputs): Estimated fair value* March 31, December 31, 2022 2021 (U.S. $ in millions) Senior notes and sustainability-linked senior notes included under senior notes and loans $ 19,858 $ 21,477 Senior notes and convertible senior debentures included under short-term debt 2,067 1,426 Total $ 21,925 $ 22,903 * The fair value was estimated based on quoted market prices. |
Basis of presentation (Policies
Basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Recently adopted and issued accounting pronouncements | Recently adopted accounting pronouncements In August 2020, the FASB issued ASU 2020-06 470-20) In March 2020, the FASB issued ASU 2020-04 |
Recently issued accounting pronouncements, not yet adopted | Recently issued accounting pronouncements, not yet adopted In November 2021, the FASB issued ASU 2021-10 transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2021. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In October 2021, the FASB issued ASU 2021-08 |
Certain transactions (Tables)
Certain transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Major Classes of Assets and Liabilities Included as Held for Sale | The table below summarizes all Teva assets and liabilities included as held for sale as of March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 (U.S. $ in millions) Inventories $ — $ 2 Property, plant and equipment, net and others 64 86 Goodwill — 7 Adjustments of assets held for sale to fair value (51 ) (76 ) Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 13 $ 19 Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets, recorded under accrued expenses and other long-term liabilities $ (60 ) $ (43 ) |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 15. Three months ended March 31, 2022 North Europe International Other Total (U.S. $ in millions) Sale of goods 1,377 1,134 445 180 3,136 Licensing arrangements 21 12 4 1 38 Distribution 342 § 16 — 358 Other (2 ) 9 27 95 129 $ 1,737 $ 1,156 $ 492 $ 275 $ 3,661 § Represents an amount less than $0.5 million. Three months ended March 31, 2021 North Europe International Other Total (U.S. $ in millions) Sale of goods 1,668 1,178 440 177 3,463 Licensing arrangements 32 14 3 1 49 Distribution 289 § 19 — 308 Other § 22 28 111 162 $ 1,989 $ 1,214 $ 490 $ 289 $ 3,982 § Represents an amount less than $0.5 million. |
Summary of Sales Reserves and Allowances | The changes in SR&A for third-party sales for the three months ended March 31, 2022 and 2021 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, 2021 $ 68 $ 1,655 $ 854 $ 1,085 $ 535 $ 112 $ 4,241 $ 4,309 Provisions related to sales made in current year 82 928 198 1,814 58 90 3,088 3,170 Provisions related to sales made in prior periods — (90 ) 26 (8 ) (14 ) (1 ) (87 ) (87 ) Credits and payments (88 ) (1,037 ) (270 ) (1,940 ) (110 ) (73 ) (3,430 ) (3,518 ) Translation differences — (3 ) (1 ) — — (1 ) (5 ) (5 ) Balance at March 31, 2022 $ 62 1,453 $ 807 $ 951 $ 469 $ 127 $ 3,807 $ 3,869 Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S.$ in millions) Balance at December 31, 2020 $ 80 $ 2,054 $ 828 $ 1,108 $ 686 $ 148 $ 4,824 $ 4,904 Provisions related to sales made in current year 100 1,126 164 2,043 76 23 3,432 3,532 Provisions related to sales made in prior periods — (55 ) (11 ) 6 (40 ) (17 ) (117 ) (117 ) Credits and payments (102 ) (1,210 ) (188 ) (1,987 ) (101 ) (40 ) (3,526 ) (3,628 ) Translation differences — (17 ) (4 ) (3 ) (3 ) (2 ) (29 ) (29 ) Balance at March 31, 2021 $ 78 $ 1,898 $ 789 $ 1,167 $ 618 $ 112 $ 4,584 $ 4,662 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Inventories | Inventories, net of reserves, consisted of the following: March 31, December 31, 2022 2021 (U.S. $ in millions) Finished products $ 1,985 $ 1,932 Raw and packaging materials 1,256 1,136 Products in process 593 587 Materials in transit and payments on account 178 163 Total $ 4,012 $ 3,818 |
Identifiable Intangible Assets
Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Identifiable Intangible Assets | Identifiable intangible assets consisted of the following: Gross carrying amount net Accumulated amortization Net carrying amount March 31, December 31, March 31, December 31, March 31, December 31, 2022 2021 2022 2021 2022 2021 (U.S. $ in millions) Product rights $ 18,544 $ 18,815 $ 12,383 $ 12,318 $ 6,161 $ 6,497 Trade names 588 590 206 198 382 392 In process research and development 573 577 — — 573 577 Total $ 19,705 $ 19,982 $ 12,589 $ 12,516 $ 7,116 $ 7,466 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Changes in the Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill for the period ended March 31, 2022 were as follows: North America Europe International Other Total (U.S. $ in millions) Balance as of December 31, 2021 (1) $ 6,474 $ 8,544 $ 2,328 $ 2,694 $ 20,040 Changes during the period: Goodwill acquired 12 12 Translation differences 9 (85 ) 34 (24 ) (66 ) Balance as of March 31, 2022 (1) $ 6,483 $ 8,459 $ 2,362 $ 2,682 $ 19,986 (1) Accumulated goodwill impairment as of March 31, 2022 and December 31, 2021 was approximately $25.6 billion. |
Debt obligations (Tables)
Debt obligations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Schedule of Short-term Debt | a. Short-term debt: March 31, December 31, Weighted average interest Maturity 2022 2021 (U.S. $ in millions) Convertible senior debentures 0.25 % 2026 23 23 Current maturities of long-term liabilities (1) 2,054 1,403 Total short-term debt $ 2,077 $ 1,426 (1) In April 2022, Teva repaid $302 million of its 3.25% senior notes at maturity. |
Schedule of Senior Notes and Loans | b. Long-term debt: Weighted average interest Maturity March 31, December 31, (U.S. $ in millions) Senior notes EUR 1,500 million 1.13 % 2024 698 708 Sustainability-linked senior notes EUR 1,500 million (1)(*) 4.38 % 2030 1,674 1,699 Senior notes EUR 1,300 million 1.25 % 2023 660 670 Sustainability-linked senior notes EUR 1,100 million (2)(*) 3.75 % 2027 1,228 1,246 Senior notes EUR 1,000 million 6.00 % 2025 1,117 1,134 Senior notes EUR 900 million 4.50 % 2025 1,004 1,020 Senior notes EUR 750 million 1.63 % 2028 833 844 Senior notes EUR 700 million (3) 3.25 % 2022 302 307 Senior notes EUR 700 million 1.88 % 2027 780 792 Senior notes USD 3,500 million 3.15 % 2026 3,496 3,496 Senior notes USD 3,000 million 2.80 % 2023 1,453 1,453 Senior notes USD 2,000 million 4.10 % 2046 1,986 1,986 Senior notes USD 1,250 million 6.00 % 2024 1,250 1,250 Senior notes USD 1,250 million 6.75 % 2028 1,250 1,250 Senior notes USD 1,000 million 7.13 % 2025 1,000 1,000 Sustainability-linked senior notes USD 1,000 million (2)(*) 4.75 % 2027 1,000 1,000 Sustainability-linked senior notes USD 1,000 million (1)(*) 5.13 % 2029 1,000 1,000 Senior notes USD 844 million 2.95 % 2022 714 715 Senior notes USD 789 million 6.15 % 2036 783 783 Senior notes CHF 350 million 0.50 % 2022 378 382 Senior notes CHF 350 million 1.00 % 2025 380 383 Total senior notes 22,985 23,118 Other long-term debt 2 2 Less current maturities (2,054 ) (1,403 ) Less debt issuance costs (93 ) (100 ) Total senior notes and loans $ 20,840 $ 21,617 (1) If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.125%-0.375% (2) If Teva fails to achieve certain sustainability performance targets, a one-time 0.15%-0.45% (3) In April 2022, Teva repaid $302 million of its 3.25% senior notes at maturity. * Interest rate adjustments and a potential one-time |
Derivative instruments and he_2
Derivative instruments and hedging activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Classification and Fair Values of Derivative Instruments | The following table summarizes the classification and fair values of derivative instruments: Fair value Not designated as hedging instruments March 31, 2022 December 31, 2021 Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ 56 $ 30 Liability derivatives: Other current liabilities: Option and forward contracts (31 ) (23 ) |
Information Regarding The Location And Amount Of Pretax (Gains) Losses Of Derivatives Designated In Fair Value Or Cash Flow Hedging Relationships | The table below provides information regarding the location and amount of pre-tax Financial expenses, net Net revenues Three months ended, Three months ended, March 31, 2022 March 31, March 31, 2022 March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 258 $ 290 $ (3,661 ) $ (3,982 ) Option and forward contracts (1) (5 ) (70 ) — — Option and forward contracts economic hedge (2) — — (19 ) (28 ) (1) Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net. (2) Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar and some other currencies to protect its projected operating results for 2021 and 2022. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. In the first quarter of 2022, the positive impact from these derivatives recognized under revenues was $19 million. In the first quarter of 2021, the positive impact from these derivatives recognized under revenues was $28 million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. |
Other assets impairments, res_2
Other assets impairments, restructuring and other items (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Schedule of Other Assets Impairments, Restructuring and Other Items | Three months ended March 31, 2022 2021 (U.S. $ in millions) Impairments of long-lived tangible assets (1) $ 16 $ 48 Contingent consideration 33 3 Restructuring 57 81 Other 21 4 Total $ 128 $ 137 |
Summary of Restructuring Plan Including Costs Related to Exit and Disposal | The following tables provide the components of restructuring costs: Three months ended March 31, 2022 2021 (U.S. $ in millions) Restructuring Employee termination $ 52 $ 79 Other 5 2 Total $ 57 $ 81 |
Summary of Restructuring Accruals | The following table provides the components of and changes in the Company’s restructuring accruals: Employee termination Other Total (U.S. $ in millions ) Balance as of January 1, 2022 $ (131 ) $ (7 ) $ (138 ) Provision (52 ) (5 ) (57 ) Utilization and other* 59 6 65 Balance as of March 31, 2022 $ (124 ) $ (6 ) $ (130 ) Employee termination Other Total (U.S. $ in millions ) Balance as of January 1, 2021 $ (115 ) $ (7 ) $ (122 ) Provision (79 ) (2 ) (81 ) Utilization and other* 33 2 35 Balance as of March 31, 2021 $ (161 ) $ (7 ) $ (168 ) |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income/(Loss) (Net of Tax) | The components of, and changes within, accumulated other comprehensive income (loss) attributable to Teva are presented in the table below: Net Unrealized Gains (Losses) Benefit Plans Foreign Derivative Actuarial gains Total (U.S. $ in millions) Balance as of December 31, 2021, net of taxes $ (2,274 ) $ (324 ) $ (85 ) $ (2,683 ) Other comprehensive income (loss) before reclassifications (4 ) — — (4 ) Amounts reclassified to the statements of income — 7 7 Net other comprehensive income (loss) before tax (4 ) 7 — 3 Corresponding income tax (7 ) — — (7 ) Net other comprehensive income (loss) after tax* (11 ) 7 — (4 ) Balance as of March 31, 2022, net of taxes $ (2,285 ) $ (317 ) $ (85 ) $ (2,687 ) * Amounts do not include a $53 million loss from foreign currency translation adjustments attributable to non-controlling Net Unrealized Gains (Losses) Benefit Plans Foreign Derivative Actuarial gains Total (U.S. $ in millions) Balance as of December 31, 2020, net of taxes $ (1,919 ) $ (363 ) $ (117 ) $ (2,399 ) Other comprehensive income (loss) before reclassifications (174 ) — (174 ) Amounts reclassified to the statements of income — 9 — 9 Net other comprehensive income (loss) before tax (174 ) 9 — (165 ) Corresponding income tax 33 (2 ) — 31 Net other comprehensive income (loss) after tax* (141 ) 7 — (134 ) Balance as of March 31, 2021, net of taxes $ (2,060 ) $ (356 ) $ (117 ) $ (2,534 ) * Amounts do not include a $67 million loss non-controlling |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Segment Profit | Three months ended March 31, 2022 North America Europe International Markets (U.S. $ in millions) Revenues $ 1,737 $ 1,156 $ 492 Gross profit 890 694 286 R&D expenses 143 58 20 S&M expenses 245 196 97 G&A expenses 112 59 29 Other income (11 ) § (40 ) Segment profit $ 402 $ 381 $ 179 § Represents an amount less than $0.5 million. Three months ended March 31, 2021 North America Europe International Markets (U.S. $ in millions) Revenues $ 1,989 $ 1,214 $ 490 Gross profit 1,074 688 260 R&D expenses 160 66 18 S&M expenses 229 214 96 G&A expenses 111 70 26 Other income (3 ) § (2 ) Segment profit $ 577 $ 338 $ 122 § Represents an amount less than $0.5 million. |
Schedule Of Consolidated Income Before Income Tax | The following table presents a reconciliation of Teva’s segment profits to its consolidated operating income (loss) and to consolidated income (loss) before income taxes for the three months ended March 31, 2022 and 2021: Three months ended March 31, 2022 2021 (U.S. $ in millions) North America profit $ 402 $ 577 Europe profit 381 338 International Markets profit 179 122 Total reportable segments profit 962 1,036 Profit of other activities 52 41 Total segments profit 1,013 1,077 Amounts not allocated to segments: Amortization 200 242 Other assets impairments, restructuring and other items 128 137 Intangible asset s 149 79 Legal settlements and loss contingencies 1,124 104 Other unallocated amounts 127 82 Consolidated operating income (loss) (713 ) 434 Financial expenses, net 258 290 Consolidated income (loss) before income taxes $ (971 ) $ 144 |
Schedule of Net Sales by Product Line | North America Three months ended March 31, 2022 2021 (U.S. $ in millions) Generic products $ 899 $ 1,053 AJOVY 36 31 AUSTEDO 154 146 BENDEKA ® ® 82 91 COPAXONE 86 164 Anda 342 289 Other 139 215 Total $ 1,737 $ 1,989 Europe Three months ended March 31, 2022 2021 (U.S. $ in millions) Generic products $ 876 $ 865 AJOVY 30 16 COPAXONE 72 100 Respiratory products 71 93 Other 107 140 Total $ 1,156 $ 1,214 International markets Three months ended March 31, 2022 2021 (U.S. $ in millions) Generic products $ 388 $ 392 AJOVY 6 1 COPAXONE 10 12 Other 88 85 Total $ 492 $ 490 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Financial Items Carried at Fair Value | Financial items carried at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 are classified in the tables below in one of the three categories of fair value levels: March 31, 2022 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 276 $ — $ — $ 276 Cash, deposits and other 1,899 — — 1,899 Investment in securities: Equity securities 16 — — 16 Other 6 — 1 7 Restricted cash 75 — — 75 Derivatives: Asset derivatives—options and forward contracts — 56 — 56 Liability derivatives: Options and forward contracts — (31 ) — (31 ) Bifurcated embedded derivatives — — § — Contingent consideration* — — (197 ) (197 ) Total $ 2,272 $ 25 $ (196 ) $ 2,101 December 31, 2021 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 220 $ — $ — $ 220 Cash, deposits and other 1,945 — — 1,945 Investment in securities: Equity securities 18 — — 18 Other 6 — 1 7 Restricted cash 33 — — 33 Derivatives: Asset derivatives—options and forward contracts — 30 — 30 Liability derivatives: Options and forward contracts — (23 ) — (23 ) Bifurcated embedded derivatives — — § — Contingent consideration* — — (176 ) (176 ) Total $ 2,222 $ 7 $ (175 ) $ 2,054 § Represents an amount less than $0.5 million. * 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: Three months Three months (U.S. $ in millions) Fair value at the beginning of the period $ (175 ) (258 ) Redemption of debt securities — (9 ) Bifurcated embedded derivatives § — Adjustments to provisions for contingent consideration: Actavis Generics transaction (31 ) (3 ) Eagle transaction (2 ) — Settlement of contingent consideration: Eagle transaction 23 25 Additional contingent consideration resulting from Novetide acquisition* (11 ) — Fair value at the end of the period $ (196 ) $ (245 ) |
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 (see note 7) and are presented in the table below in terms of fair value (level 1 inputs): Estimated fair value* March 31, December 31, 2022 2021 (U.S. $ in millions) Senior notes and sustainability-linked senior notes included under senior notes and loans $ 19,858 $ 21,477 Senior notes and convertible senior debentures included under short-term debt 2,067 1,426 Total $ 21,925 $ 22,903 * The fair value was estimated based on quoted market prices. |
Certain Transactions - Other Tr
Certain Transactions - Other Transactions - Additional Information (Detail) - USD ($) $ in Millions | Jan. 08, 2018 | May 12, 2017 | Oct. 31, 2021 | Aug. 31, 2021 | Sep. 30, 2016 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Alder [Member] | |||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||
Upfront payment | $ 25 | ||||||||||||
Milestone payment | $ 25 | ||||||||||||
Collaborative agreement milestone payments | $ 150 | ||||||||||||
Otsuka [Member] | |||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||
Upfront payment | $ 50 | ||||||||||||
Milestone payment | $ 35 | $ 15 | |||||||||||
Regeneron [Member] | |||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||
Upfront payment | $ 250 | ||||||||||||
Collaborative agreement milestone payments | $ 2,230 | $ 120 | $ 120 | ||||||||||
Research and development costs | $ 1,000 | ||||||||||||
Alvotech [Member] | |||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||
Collaborative agreement milestone payments | $ 455 | ||||||||||||
MedinCell [Member] | |||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||
Collaborative agreement milestone payments | $ 112 | ||||||||||||
MODAG [Member] | |||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||
License agreement potential aggregate milestone payments amount | $ 70 | ||||||||||||
MODAG [Member] | Research and Development Expense [Member] | |||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||
Milestone payment | $ 10 |
Certain Transactions - Business
Certain Transactions - Business Acquisitions - Summary of Major Classes of Assets and Liabilities Included as Held for Sale (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Business Combinations [Abstract] | ||
Inventories | $ 0 | $ 2 |
Property, plant and equipment, net and others | 64 | 86 |
Goodwill | 0 | 7 |
Adjustments of assets held for sale to fair value | (51) | (76) |
Total assets of the disposal group classified as held for sale in the consolidated balance sheets | 13 | 19 |
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets, recorded under accrued expenses and other long-term liabilities | $ (60) | $ (43) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022 | |
United States [Member] | |
Revenue Recognition [Line Items] | |
Percentage sales reserves and allowances to U.S. customers | 73.00% |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 3,661 | $ 3,982 |
Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3,136 | 3,463 |
Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 38 | 49 |
Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 358 | 308 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 129 | 162 |
International Markets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 492 | 490 |
International Markets [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 445 | 440 |
International Markets [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4 | 3 |
International Markets [Member] | Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 16 | 19 |
International Markets [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 27 | 28 |
Other activities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 275 | 289 |
Other activities [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 180 | 177 |
Other activities [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1 | 1 |
Other activities [Member] | Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Other activities [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 95 | 111 |
North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,737 | 1,989 |
North America [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,377 | 1,668 |
North America [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 21 | 32 |
North America [Member] | Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 342 | 289 |
North America [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | (2) | |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,156 | 1,214 |
Europe [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,134 | 1,178 |
Europe [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 12 | 14 |
Europe [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 9 | $ 22 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Sales Reserves and Allowances (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue Recognition [Line Items] | ||
Balance at beginning of period | $ 4,309 | $ 4,904 |
Provisions related to sales made in current year | 3,170 | 3,532 |
Provisions related to sales made in prior periods | (87) | (117) |
Credits and payments | (3,518) | (3,628) |
Translation differences | (5) | (29) |
Balance at end of period | 3,869 | 4,662 |
Reserves Included in Accounts Receivable, Net [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 68 | 80 |
Provisions related to sales made in current year | 82 | 100 |
Credits and payments | (88) | (102) |
Balance at end of period | 62 | 78 |
Rebates [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 1,655 | 2,054 |
Provisions related to sales made in current year | 928 | 1,126 |
Provisions related to sales made in prior periods | (90) | (55) |
Credits and payments | (1,037) | (1,210) |
Translation differences | (3) | (17) |
Balance at end of period | 1,453 | 1,898 |
Medicaid and Other Governmental Allowances [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 854 | 828 |
Provisions related to sales made in current year | 198 | 164 |
Provisions related to sales made in prior periods | 26 | (11) |
Credits and payments | (270) | (188) |
Translation differences | (1) | (4) |
Balance at end of period | 807 | 789 |
Chargebacks [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 1,085 | 1,108 |
Provisions related to sales made in current year | 1,814 | 2,043 |
Provisions related to sales made in prior periods | (8) | 6 |
Credits and payments | (1,940) | (1,987) |
Translation differences | (3) | |
Balance at end of period | 951 | 1,167 |
Returns [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 535 | 686 |
Provisions related to sales made in current year | 58 | 76 |
Provisions related to sales made in prior periods | (14) | (40) |
Credits and payments | (110) | (101) |
Translation differences | (3) | |
Balance at end of period | 469 | 618 |
Other [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 112 | 148 |
Provisions related to sales made in current year | 90 | 23 |
Provisions related to sales made in prior periods | (1) | (17) |
Credits and payments | (73) | (40) |
Translation differences | (1) | (2) |
Balance at end of period | 127 | 112 |
Total Reserves Included in Sales Reserves and Allowances [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 4,241 | 4,824 |
Provisions related to sales made in current year | 3,088 | 3,432 |
Provisions related to sales made in prior periods | (87) | (117) |
Credits and payments | (3,430) | (3,526) |
Translation differences | (5) | (29) |
Balance at end of period | $ 3,807 | $ 4,584 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories [Line Items] | ||
Finished products | $ 1,985 | $ 1,932 |
Raw and packaging materials | 1,256 | 1,136 |
Products in process | 593 | 587 |
Materials in transit and payments on account | 178 | 163 |
Total | $ 4,012 | $ 3,818 |
Identifiable Intangible Asset_2
Identifiable Intangible Assets - Summary of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | $ 19,705 | $ 19,982 |
Accumulated amortization | 12,589 | 12,516 |
Net carrying amount | 7,116 | 7,466 |
Product rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 18,544 | 18,815 |
Accumulated amortization | 12,383 | 12,318 |
Net carrying amount | 6,161 | 6,497 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 588 | 590 |
Accumulated amortization | 206 | 198 |
Net carrying amount | 382 | 392 |
In process research and development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 573 | 577 |
Net carrying amount | $ 573 | $ 577 |
Identifiable Intangible Asset_3
Identifiable Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets useful life | 10 years | |
Amortization of intangible assets | $ 200 | $ 242 |
Impairment of intangible assets excluding goodwill | $ 149 | 79 |
Minimum [Member] | Measurement input, discount rate [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 7.3 | |
Maximum [Member] | Measurement input, discount rate [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 10.7 | |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | 51 | |
In Process Research and Development [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.0725 | |
In Process Research and Development [Member] | Minimum [Member] | Measurement input, discount rate [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 20 | |
In Process Research and Development [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.10 | |
In Process Research and Development [Member] | Maximum [Member] | Measurement input, discount rate [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 100 | |
Actavis [Member] | In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination recognized identifiable assets | $ 542 | |
Actavis [Member] | Identifiable product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | $ 129 | |
United States [Member] | Actavis [Member] | Identifiable product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | $ 28 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance | $ 20,040 | [1] |
Goodwill acquired | 12 | |
Translation differences | (66) | |
Ending balance | 19,986 | [1] |
North America [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 6,474 | [1] |
Translation differences | 9 | |
Ending balance | 6,483 | [1] |
Europe [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 8,544 | [1] |
Translation differences | (85) | |
Ending balance | 8,459 | [1] |
International Markets [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 2,328 | [1] |
Translation differences | 34 | |
Ending balance | 2,362 | [1] |
Other [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 2,694 | [1] |
Goodwill acquired | 12 | |
Translation differences | (24) | |
Ending balance | $ 2,682 | [1] |
[1] | Accumulated goodwill impairment as of March 31, 2022 and December 31, 2021 was approximately $25.6 billion. |
Goodwill - Summary of Changes_2
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - USD ($) $ in Billions | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill [Line Items] | ||
Accumulated goodwill impairment | $ 25.6 | $ 25.6 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | |||
Current maturities of long-term liabilities | [1] | $ 2,054 | $ 1,403 |
Total short term debt | $ 2,077 | 1,426 | |
Convertible senior debentures [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 0.25% | ||
Maturity | 2026 | ||
Short-term borrowings | $ 23 | $ 23 | |
[1] | In April 2022, Teva repaid $302 million of its 3.25% senior notes at maturity. |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Short-term Debt (Parenthetical) (Detail) - Senior Notes [Member] - Subsequent Event [Member] $ in Millions | Apr. 30, 2022USD ($) |
Debt Instrument [Line Items] | |
Senior notes repaid amount | $ 302 |
Senior notes maturity percentage | 3.25% |
Debt Obligations - Schedule o_3
Debt Obligations - Schedule of Senior Notes and Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | |||
Total senior notes | $ 22,985 | $ 23,118 | |
Less current maturities | [1] | (2,054) | (1,403) |
Less debt issuance costs | (93) | (100) | |
Total senior notes and loans | 20,840 | 21,617 | |
Other Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Total senior notes and loans | $ 2 | 2 | |
Senior notes EUR 1,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.13% | ||
Maturity | 2024 | ||
Total senior notes | $ 698 | 708 | |
Sustainability-linked senior notes EUR 1,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [2],[3] | 4.38% | |
Maturity | [2],[3] | 2030 | |
Total senior notes | [2],[3] | $ 1,674 | 1,699 |
Senior notes EUR 1,300 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.25% | ||
Maturity | 2023 | ||
Total senior notes | $ 660 | 670 | |
Sustainability-linked senior notes EUR 1,100 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [3],[4] | 3.75% | |
Maturity | [3],[4] | 2027 | |
Total senior notes | [3],[4] | $ 1,228 | 1,246 |
Senior notes EUR 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.00% | ||
Maturity | 2025 | ||
Total senior notes | $ 1,117 | 1,134 | |
Senior notes EUR 900 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 4.50% | ||
Maturity | 2025 | ||
Total senior notes | $ 1,004 | 1,020 | |
Senior notes EUR 750 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.63% | ||
Maturity | 2028 | ||
Total senior notes | $ 833 | 844 | |
Senior notes EUR 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [1] | 3.25% | |
Maturity | [1] | 2022 | |
Total senior notes | [1] | $ 302 | 307 |
Senior notes USD 3,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.15% | ||
Maturity | 2026 | ||
Total senior notes | $ 3,496 | 3,496 | |
Senior notes EUR 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.88% | ||
Maturity | 2027 | ||
Total senior notes | $ 780 | 792 | |
Senior notes USD 3,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.80% | ||
Maturity | 2023 | ||
Total senior notes | $ 1,453 | 1,453 | |
Senior notes USD 2,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 4.10% | ||
Maturity | 2046 | ||
Total senior notes | $ 1,986 | 1,986 | |
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.00% | ||
Maturity | 2024 | ||
Total senior notes | $ 1,250 | 1,250 | |
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.75% | ||
Maturity | 2028 | ||
Total senior notes | $ 1,250 | 1,250 | |
Senior notes USD 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 7.13% | ||
Maturity | 2025 | ||
Total senior notes | $ 1,000 | 1,000 | |
Sustainability-linked senior notes USD 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [3],[4] | 4.75% | |
Maturity | [3],[4] | 2027 | |
Total senior notes | [3],[4] | $ 1,000 | 1,000 |
Sustainability-linked senior notes USD 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [2],[3] | 5.13% | |
Maturity | [2],[3] | 2029 | |
Total senior notes | [2],[3] | $ 1,000 | 1,000 |
Senior notes USD 844 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 2.95% | ||
Maturity | 2022 | ||
Total senior notes | $ 714 | 715 | |
Senior notes USD 789 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.15% | ||
Maturity | 2036 | ||
Total senior notes | $ 783 | 783 | |
Senior notes CHF 350 Million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 0.50% | ||
Maturity | 2022 | ||
Total senior notes | $ 378 | 382 | |
Senior notes CHF 350 Million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.00% | ||
Maturity | 2025 | ||
Total senior notes | $ 380 | $ 383 | |
[1] | In April 2022, Teva repaid $302 million of its 3.25% senior notes at maturity. | ||
[2] | If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.125%-0.375% per annum, from and including May 9, 2026. | ||
[3] | Interest rate adjustments and a potential one-time premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 8d. | ||
[4] | If Teva fails to achieve certain sustainability performance targets, a one-time premium payment of 0.15%-0.45% out of the principal amount will be paid at maturity or upon earlier redemption, if such redemption is on or after May 9, 2026. |
Debt Obligations - Schedule o_4
Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail) € in Millions, SFr in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2022USD ($) | Apr. 30, 2022USD ($) | Mar. 31, 2022EUR (€) | Mar. 31, 2022CHF (SFr) | |
Subsequent Event [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes repaid amount | $ 302 | |||
Senior notes maturity percentage | 3.25% | |||
Senior notes EUR 1,500 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | € | € 1,500 | |||
Sustainability-linked senior notes EUR 1,500 million | ||||
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 | |||
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 2,000 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 2,000 | |||
Senior notes USD 1,250 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,250 | |||
Senior notes USD 1,250 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,250 | |||
Senior notes USD 1,000 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,000 | |||
Sustainability-linked senior notes USD 1,000 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,000 | |||
Sustainability-linked senior notes USD 1,000 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,000 | |||
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 CHF 350 Million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | SFr | SFr 350 | |||
Senior notes CHF 350 Million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | SFr | SFr 350 | |||
Senior notes EUR 1,100 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | € | € 1,100 | |||
Interest Rate Increase [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Maturity Date | May 9, 2026 | |||
Interest Rate Increase [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.125% | |||
Interest Rate Increase [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.375% | |||
One Time Premium Payment [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Maturity Date | May 9, 2026 | |||
One Time Premium Payment [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.15% | |||
One Time Premium Payment [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.45% |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2024 | Apr. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||||||
Long term debt currency portion USD | 63.00% | ||||||||||
Long term debt currency portion EUR | 35.00% | ||||||||||
Long term debt currency portion CHF | 2.00% | ||||||||||
Convertible Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount currently outstanding on the debt instruments | $ 23 | $ 23 | |||||||||
Weighted average interest rate | 0.25% | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Covenant Description | The RCF can be used for general corporate purposes, including repaying existing debt. As of March 31, 2022 and as of the date of this Quarterly Report on Form 10-Q, no amounts were outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date the financial statements are issued. | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,300 | ||||||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Leverage Ratio | 3.75 | 4.00 | 4.00 | 4.00 | 4.25 | 4.50 | 4.50 | 3.50 | |||
Unsecured Syndicated Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1.8 | ||||||||||
Debt Instrument, Maturity Date | Apr. 30, 2026 | ||||||||||
Line Of Credit Extention Period | one-year |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - Not Designated as Hedging Instrument [Member] - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts Payable [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | $ (31) | $ (23) |
Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | $ 56 | $ 30 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule Of Other Derivatives Not Designated As Hedging Instruments Statements OfFinancial Performance And Financial Position Location (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Net Revenues [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ (3,661) | $ (3,982) | |
Net Revenues [Member] | Not Designated as Hedging Instrument, Trading [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [1] | 0 | 0 |
Net Revenues [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [2] | (19) | (28) |
Financial expenses [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | 258 | 290 | |
Financial expenses [Member] | Not Designated as Hedging Instrument, Trading [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [1] | (5) | (70) |
Financial expenses [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [2] | $ 0 | $ 0 |
[1] | Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net. | ||
[2] | Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar and some other currencies to protect its projected operating results for 2021 and 2022. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. In the first quarter of 2022, the positive impact from these derivatives recognized under revenues was[ $31] million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2016 | Dec. 31, 2019 | Sep. 30, 2019 | |
Derivative [Line Items] | |||||
Revenues other than USD | 48.00% | ||||
Teva other comprehensive loss | $ 493 | ||||
Forward starting interest rate swaps and treasury lock agreements losses | 7 | $ 8 | |||
Interest Rate Swap Loss | 1 | ||||
Gain Loss From Currency Swap | 0 | ||||
Cost of sales [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Gain on Derivative | $ 19 | $ 28 | |||
Senior Notes Due 2023 Two [Member] | |||||
Derivative [Line Items] | |||||
Notional amount hedge debt | $ 3,000 | $ 500 | |||
Previously hedge debt rate | 2.80% | ||||
Cash received on settlement of position | $ 10 | ||||
Derivative, Fair Value Hedge, Included in Effectiveness, Gain (Loss) | 41 | ||||
Senior Notes Due 2022 [Member] | |||||
Derivative [Line Items] | |||||
Notional amount hedge debt | $ 844 | ||||
Previously hedge debt rate | 2.95% | ||||
Senior Notes Due 2021 [Member] | |||||
Derivative [Line Items] | |||||
Notional amount hedge debt | $ 450 | $ 588 | |||
Previously hedge debt rate | 3.65% | ||||
Cash received on settlement of position | $ 95 | ||||
Senior Notes Due 2021 Two [Member] | |||||
Derivative [Line Items] | |||||
Previously hedge debt rate | 3.65% |
Legal Settlements and Loss Co_2
Legal Settlements and Loss Contingencies - Additional Information (Detail) € in Millions, $ in Millions | Jan. 27, 2022USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022EUR (€) | Dec. 31, 2021USD ($) |
Loss Contingencies [Line Items] | |||||
Legal settlements and loss contingencies, expense | $ 420 | $ 1,124 | $ 104 | ||
Accrued amount for legal settlements and loss contingencies | $ 3,762 | € 60.5 | $ 2,710 | ||
Settlement On Account Of Product Liability [Member] | United States [Member] | |||||
Loss Contingencies [Line Items] | |||||
Restructuring expense and income | The expenses in the first quarter of 2022 were mainly related to an update of the estimated settlement provision recorded in connection with the remaining opioid cases. | The expenses in the first quarter of 2021 were mainly due to the provision for the carvedilol patent litigation. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions | Mar. 30, 2022USD ($) | Mar. 21, 2022USD ($) | Feb. 04, 2022USD ($) | Jan. 27, 2022USD ($) | Aug. 05, 2021USD ($) | Jul. 21, 2021USD ($) | Feb. 11, 2021USD ($) | Oct. 21, 2019USD ($) | May 31, 2019USD ($) | Sep. 30, 2013USD ($) | Apr. 30, 2013USD ($) | Aug. 31, 2012USD ($) | Dec. 31, 2010USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2014USD ($) | Aug. 21, 2021USD ($) | Mar. 31, 2022EUR (€) | Jul. 08, 2021USD ($) | Jun. 30, 2021USD ($) | Aug. 31, 2019USD ($) | Jul. 31, 2008USD ($) | Feb. 28, 2005USD ($) |
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Damages assessment | $ 235,500,000 | |||||||||||||||||||||||||
Annual sales at the time of settlement | 700,000,000 | $ 350,000,000 | ||||||||||||||||||||||||
Annual sales of Effexor | $ 2,600,000,000 | |||||||||||||||||||||||||
Annual sales of Lamictal | $ 2,300,000,000 | $ 950,000,000 | ||||||||||||||||||||||||
Annual sales of Niaspan | $ 1,100,000,000 | $ 416,000,000 | ||||||||||||||||||||||||
Annual sales of Actos | $ 2,800,000,000 | $ 3,700,000,000 | ||||||||||||||||||||||||
Annual sales of Acto plus | $ 430,000,000 | $ 500,000,000 | ||||||||||||||||||||||||
Annual Sales Of Sensipar | $ 1,400,000,000 | |||||||||||||||||||||||||
Annual sales of Copaxone | $ 373,000,000 | |||||||||||||||||||||||||
Generic modafinil, and imposed fines amount | 3,762,000,000 | $ 2,710,000,000 | € 60.5 | |||||||||||||||||||||||
Loss Contingency Accrual, Provision | $ 235,500,000 | |||||||||||||||||||||||||
Annual sales of Narcan | $ 434,000,000 | |||||||||||||||||||||||||
Annual sales of the time of settlement of viread | 582,000,000 | |||||||||||||||||||||||||
Annual sales of the time of settlement of Truvada | 2,400,000,000 | |||||||||||||||||||||||||
Annual sales of the time of settlement of Atripla | 2,900,000,000 | |||||||||||||||||||||||||
Annual sales of the time of New launch of viread | 728,000,000 | |||||||||||||||||||||||||
Annual sales of the time of New launch of Truvada | 2,100,000,000 | |||||||||||||||||||||||||
Annual sales of the time of New launch of Atripla | 444,000,000 | |||||||||||||||||||||||||
Annual sales of Colcrys | 187,000,000 | |||||||||||||||||||||||||
Loss Contingency Claims Dismissed Value | $ 925,000 | |||||||||||||||||||||||||
Litigation Settlement, Expense | $ 420,000,000 | 1,124,000,000 | $ 104,000,000 | |||||||||||||||||||||||
Accrual for Environmental Loss Contingencies | 300,000,000 | |||||||||||||||||||||||||
Loss Contingencies On Environmental Laws Penalty | $ 1,400,000 | |||||||||||||||||||||||||
Percentage of population of subdivisions will formally release as a part of settlement | 96 | |||||||||||||||||||||||||
Attorney General Of Louisana [Member] | ||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Litigation Settlement Amount DistributableIn Kind | $ 75,000,000 | $ 3,000,000 | ||||||||||||||||||||||||
Attorney General of Rhode Island [Member] | ||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Litigation settlement amount | $ 21,000,000 | |||||||||||||||||||||||||
Litigation settlement amount awarded cash amount distribution period | 13 years | |||||||||||||||||||||||||
Litigation Settlement Amount DistributableIn Kind | $ 78,500,000 | |||||||||||||||||||||||||
Attorney General of Florida [Member] | ||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Litigation settlement amount | $ 177,000,000 | |||||||||||||||||||||||||
Litigation settlement amount awarded cash amount distribution period | 15 years | |||||||||||||||||||||||||
Litigation Settlement Amount DistributableIn Kind | $ 84,000,000 | |||||||||||||||||||||||||
Four Other Defendants Other Than Teva Member | ||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Loss contingency payment | $ 26,000,000,000 | |||||||||||||||||||||||||
Litigation settlement amount awarded distribution period | 18 years | |||||||||||||||||||||||||
Opioid Litigation [Member] | ||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Litigation settlement amount | $ 150,000,000 | $ 15,000,000 | $ 25,000,000 | $ 85,000,000 | ||||||||||||||||||||||
Litigation settlement amount awarded cash amount | $ 20,000,000 | |||||||||||||||||||||||||
Litigation settlement amount awarded cash amount distribution period | 15 years | 18 years | ||||||||||||||||||||||||
Europe [Member] | ||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Damage claimed | $ 50,000,000 | |||||||||||||||||||||||||
LOUISIANA | ||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Loss Contingency Claims Dismissed Value | $ 1,450,000 | |||||||||||||||||||||||||
Eosinophilic Esophagitis [Member] | ||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Damage claimed | 200,000,000 | |||||||||||||||||||||||||
Eosinophilic Esophagitis [Member] | United States [Member] | ||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Damage claimed | $ 150,000,000 | |||||||||||||||||||||||||
AndroGel Rate at 1% [Member] | ||||||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||||||
Annual sales at the time of settlement | $ 140,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax [Line Items] | |||
Expected impairment of income tax benefit | $ 138 | ||
Income tax expense (benefit) | 2 | $ 62 | |
Pre-tax income (loss) | $ (971) | $ 144 | |
Israel Tax Authority [Member] | |||
Income Tax [Line Items] | |||
Statutory tax rate in Israel | 23.00% | ||
Israel Tax Authority [Member] | Tax Year 2008 To 2011 [Member] | |||
Income Tax [Line Items] | |||
Income Tax Examination, Estimate of Possible Loss | $ 350 |
Other assets impairments, res_3
Other assets impairments, restructuring and other items - Schedule of Other Assets Impairments, Restructuring and Other Items (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Restructuring and Impairment Costs [Line Items] | |||
Impairments of long-lived tangible assets | [1] | $ 16 | $ 48 |
Contingent consideration (see note 20) | 33 | 3 | |
Restructuring | 57 | 81 | |
Other | 21 | 4 | |
Total | $ 128 | $ 137 | |
[1] | Including impairments related to exit and disposal activities |
Other assets impairments, res_4
Other assets impairments, restructuring and other items - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring and Impairment Costs [Line Items] | ||
Impairments of property, plant and equipment | $ 16 | $ 48 |
Business combination contingent consideration arrangements change in amount of contingent consideration liability | 33 | 3 |
Restructuring costs | 57 | $ 81 |
Development Expense | $ 54 |
Other assets impairments, res_5
Other assets impairments, restructuring and other items - Components of costs associated with restructuring plan including costs related to exit and disposal activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 57 | $ 81 |
Employee termination [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 52 | 79 |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 5 | $ 2 |
Other assets impairments, res_6
Other assets impairments, restructuring and other items - Summary of Restructuring Accruals (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | $ (138) | $ (122) | |
Provision | (57) | (81) | |
Utilization and other | [1] | 65 | 35 |
Ending balance | (130) | (168) | |
Employee termination costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | (131) | (115) | |
Provision | (52) | (79) | |
Utilization and other | [1] | 59 | 33 |
Ending balance | (124) | (161) | |
Other Exit and Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | (7) | (7) | |
Provision | (5) | (2) | |
Utilization and other | [1] | 6 | 2 |
Ending balance | $ (6) | $ (7) | |
[1] | Includes adjustments for foreign currency translation. |
Earnings (Loss) per Share - Add
Earnings (Loss) per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Basic and diluted earnings per share | $ 0.86 | $ 0.07 |
Weighted Average Number of Shares Outstanding, Diluted | 1,107,000,000 | 1,107,000,000 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average shares with anti-dilutive effect on earnings per share | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | $ (2,683) | ||||
Ending Balance | (2,687) | ||||
Foreign Currency Translation Adjustments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (2,274) | $ (1,919) | |||
Other comprehensive income (loss) before reclassifications | (4) | (174) | |||
Net other comprehensive income (loss) before tax | (4) | (174) | |||
Corresponding income tax | (7) | 33 | |||
Net other comprehensive income (loss) after tax | (11) | [1] | (141) | [2] | |
Ending Balance | (2,285) | (2,060) | |||
Derivative Financial Instruments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (324) | (363) | |||
Amounts reclassified to the statements of income | 7 | 9 | |||
Net other comprehensive income (loss) before tax | 7 | 9 | |||
Corresponding income tax | (2) | ||||
Net other comprehensive income (loss) after tax | 7 | [1] | 7 | [2] | |
Ending Balance | (317) | (356) | |||
Benefit Plans [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (85) | (117) | |||
Net other comprehensive income (loss) before tax | 0 | ||||
Net other comprehensive income (loss) after tax | [1] | 0 | |||
Ending Balance | (85) | (117) | |||
AOCI Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (2,683) | (2,399) | |||
Other comprehensive income (loss) before reclassifications | (4) | (174) | |||
Amounts reclassified to the statements of income | 7 | 9 | |||
Net other comprehensive income (loss) before tax | 3 | (165) | |||
Corresponding income tax | (7) | 31 | |||
Net other comprehensive income (loss) after tax | (4) | [1] | (134) | [2] | |
Ending Balance | $ (2,687) | $ (2,534) | |||
[1] | Amounts do not include a $53 million loss from foreign currency translation adjustments attributable to non-controlling interests. | ||||
[2] | Amounts do not include a $67 million loss from foreign currency translation adjustments attributable to non-controlling interests. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Standards Update 2016-01 [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation attributable to non-controlling interests | $ 67 | |
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 | $ 53 |
Segments - Summary of Segment P
Segments - Summary of Segment Profit (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | $ 3,661 | $ 3,982 |
Gross profit | 1,740 | 1,878 |
R&D expenses | 225 | 254 |
S&M expenses | 584 | 585 |
G&A expenses | 296 | 290 |
Segment profit | (713) | 434 |
North America [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 1,737 | 1,989 |
Gross profit | 890 | 1,074 |
R&D expenses | 143 | 160 |
S&M expenses | 245 | 229 |
G&A expenses | 112 | 111 |
Other (income) expense | (11) | (3) |
Segment profit | 402 | 577 |
Europe [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 1,156 | 1,214 |
Gross profit | 694 | 688 |
R&D expenses | 58 | 66 |
S&M expenses | 196 | 214 |
G&A expenses | 59 | 70 |
Segment profit | 381 | 338 |
International Markets [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 492 | 490 |
Gross profit | 286 | 260 |
R&D expenses | 20 | 18 |
S&M expenses | 97 | 96 |
G&A expenses | 29 | 26 |
Other (income) expense | (40) | (2) |
Segment profit | $ 179 | $ 122 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Amounts allocated to segments: | ||
Segments profit | $ (713) | $ 434 |
Amounts not allocated to segments: | ||
Amortization | 200 | 242 |
Other asset impairments, restructuring and other items | 128 | 137 |
Intangible assets impairments | 149 | 79 |
Legal settlements and loss contingencies | 1,124 | 104 |
Other unallocated amounts | 127 | 82 |
Consolidated operating income (loss) | (713) | 434 |
Financial expenses, net | 258 | 290 |
Income (loss) before income taxes | (971) | 144 |
North America [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 402 | 577 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 402 | 577 |
Europe [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 381 | 338 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 381 | 338 |
International Markets [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 179 | 122 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 179 | 122 |
Corporate Segment [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 962 | 1,036 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 962 | 1,036 |
Other Segments [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 52 | 41 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 52 | 41 |
Segments and Other Activities [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 1,013 | 1,077 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | $ 1,013 | $ 1,077 |
Segments - Schedule of Revenues
Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Product Information [Line Items] | ||
Revenues | $ 3,661 | $ 3,982 |
North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 1,737 | 1,989 |
Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 1,156 | 1,214 |
International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 492 | 490 |
Generic products [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 899 | 1,053 |
Generic products [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 876 | 865 |
Generic products [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 388 | 392 |
COPAXONE [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 86 | 164 |
COPAXONE [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 72 | 100 |
COPAXONE [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 10 | 12 |
BENDEKA and TREANDA [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 82 | 91 |
AJOVY [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 36 | 31 |
AJOVY [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 30 | 16 |
AJOVY [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 6 | 1 |
AUSTEDO [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 154 | 146 |
Respiratory Product [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 71 | 93 |
Anda [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 342 | 289 |
Other [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 139 | 215 |
Other [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 107 | 140 |
Other [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | $ 88 | $ 85 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Items Carried at Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash | $ 75 | $ 33 | |
Contingent consideration | [1] | (197) | (176) |
Total | 2,101 | 2,054 | |
Asset Derivatives - Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 56 | 30 | |
Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 0 | 0 | |
Liability Derivatives Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | (31) | (23) | |
Money Markets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 276 | 220 | |
Cash, Deposits and Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 1,899 | 1,945 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 16 | 18 | |
Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 7 | 7 | |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash | 75 | 33 | |
Total | 2,272 | 2,222 | |
Level 1 [Member] | Money Markets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 276 | 220 | |
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 | 1,899 | 1,945 | |
Level 1 [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 16 | 18 | |
Level 1 [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 6 | 6 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 25 | 7 | |
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 56 | 30 | |
Level 2 [Member] | Liability Derivatives Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | (31) | (23) | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | [1] | (197) | (176) |
Total | (196) | (175) | |
Level 3 [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | $ 1 | $ 1 | |
[1] | Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. |
Fair value measurement - Additi
Fair value measurement - Additional Information (Detail) | Mar. 31, 2022 |
Measurement input probability of success [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Business combination, contingent consideration, liability, measurement input | 100 |
Maximum [Member] | Measurement input, discount rate [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Business combination, contingent consideration, liability, measurement input | 10.7 |
Minimum [Member] | Measurement input, discount rate [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Business combination, contingent consideration, liability, measurement input | 7.3 |
Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Business combination, contingent consideration, liability, measurement input | 7.7 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value at the beginning of the period | $ (175) | $ (258) |
Redemption of debt securities | 0 | (9) |
Bifurcated embedded derivatives | 0 | |
Fair value at the end of the period | (196) | (245) |
Nove tide Acquisition [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Redemption of debt securities | (11) | 0 |
Actavis Generics [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Actavis Generics transaction | (31) | (3) |
Eagle Transaction [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjustments to provisions for contingent consideration | (2) | 0 |
Settlement of contingent consideration | $ 23 | $ 25 |
Fair Value Measurement - Summ_3
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Parenthetical) (Detail) | Jan. 01, 2022 |
Nove tide Acquisition [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Business acquisition, Percentage of voting interests acquired | 100.00% |
Fair Value Measurement - Summ_4
Fair Value Measurement - Summary of Financial Instrument Measured on a Basis Other Than Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 21,925 | $ 22,903 |
Senior Notes And Sustainability Linked Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 19,858 | 21,477 |
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 | $ 2,067 | $ 1,426 |