Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2023 |
Document Fiscal Period Focus | Q1 |
Document Quarterly Report | true |
Entity Registrant Name | TEVA PHARMACEUTICAL INDUSTRIES LIMITED |
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 | 1,120,405,816 |
Title of 12(b) Security | American Depositary Shares, each representing one Ordinary Share |
Trading Symbol | TEVA |
Security Exchange Name | NYSE |
Entity File Number | 001-16174 |
Entity Incorporation, State or Country Code | L3 |
Entity Tax Identification Number | 00-0000000 |
Entity Address, Address Line One | 124 Dvora HaNevi’a St. |
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, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 2,143 | $ 2,801 | |
Accounts receivables, net of allowance for credit losses of $88 million and $91 million as of March 31, 2023 and December 31, 2022 | 3,435 | 3,696 | |
Inventories | 4,118 | 3,833 | |
Prepaid expenses | 1,253 | 1,162 | |
Other current assets | 542 | 549 | |
Assets held for sale | 10 | 10 | |
Total current assets | 11,501 | 12,051 | |
Deferred income taxes | 1,572 | 1,453 | |
Other non-current assets | 450 | 441 | |
Property, plant and equipment, net | 5,751 | 5,739 | |
Operating lease right-of-use assets | 420 | 419 | |
Identifiable intangible assets, net | 5,964 | 6,270 | |
Goodwill | [1] | 17,799 | 17,633 |
Total assets | 43,456 | 44,006 | |
Current liabilities: | |||
Short-term debt | 1,023 | 2,109 | |
Sales reserves and allowances | 3,309 | 3,750 | |
Accounts payables | 2,381 | 1,887 | |
Employee-related obligations | 432 | 566 | |
Accrued expenses | 2,267 | 2,151 | |
Other current liabilities | 1,000 | 1,005 | |
Total current liabilities | 10,411 | 11,469 | |
Long-term liabilities: | |||
Deferred income taxes | 550 | 548 | |
Other taxes and long-term liabilities | 3,869 | 3,847 | |
Senior notes and loans | 19,668 | 19,103 | |
Operating lease liabilities | 345 | 349 | |
Total long-term liabilities | 24,433 | 23,846 | |
Commitments and contingencies, see note 10 | |||
Total liabilities | 34,844 | 35,315 | |
Teva shareholders' equity: | |||
Ordinary shares of NIS 0.10 par value per share; March 31, 2023 and December 31, 2022: authorized 2,495 million shares; issued 1,226 million shares and 1,217 million shares, respectively | 57 | 57 | |
Additional paid-in capital | 27,719 | 27,688 | |
Accumulated deficit | (13,086) | (12,882) | |
Accumulated other comprehensive loss | (2,701) | (2,838) | |
Treasury shares as of March 31, 2023 and December 31, 2022: 106 million ordinary shares | (4,128) | (4,128) | |
Stockholders' equity attributable to Teva shareholders | 7,860 | 7,897 | |
Non-controlling interests | 751 | 794 | |
Total equity | 8,612 | 8,691 | |
Total liabilities and equity | $ 43,456 | $ 44,006 | |
[1]Accumulated goodwill impairment as of March 31, 2023 and December 31, 2022 was approximately $27.6 billion. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Millions | Mar. 31, 2023 USD ($) shares | Mar. 31, 2023 ₪ / shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 ₪ / shares |
Allowance for credit losses | $ | $ 88 | $ 91 | ||
Common stock, par or stated value per share | ₪ / shares | ₪ 0.1 | ₪ 0.1 | ||
Ordinary shares, authorized | 2,495,000,000 | 2,495,000,000 | ||
Ordinary shares, issued | 1,226,000,000 | 1,217,000,000 | ||
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, 2023 | Mar. 31, 2022 | |
Net revenues | $ 3,661 | $ 3,661 |
Cost of sales | 2,079 | 1,921 |
Gross profit | 1,582 | 1,740 |
Research and development expenses | 234 | 225 |
Selling and marketing expenses | 546 | 584 |
General and administrative expenses | 296 | 296 |
Intangible assets impairments | 178 | 149 |
Other assets impairments, restructuring and other items | 96 | 128 |
Legal settlements and loss contingencies | 233 | 1,124 |
Other income | (2) | (52) |
Operating income (loss) | 2 | (713) |
Financial expenses, net | 260 | 258 |
Income (loss) before income taxes | (258) | (971) |
Income taxes (benefit) | (19) | 2 |
Share in (profits) losses of associated companies, net | (21) | |
Net income (loss) | (238) | (952) |
Net income (loss) attributable to non-controlling interests | (33) | 3 |
Net income (loss) attributable to Teva | $ (205) | $ (955) |
Earnings (loss) per share attributable to ordinary shareholders: | ||
Basic | $ (0.18) | $ (0.86) |
Diluted | $ (0.18) | $ (0.86) |
Weighted average number of shares (in millions): | ||
Basic | 1,115 | 1,107 |
Diluted | 1,115 | 1,107 |
Consolidated Statements of In_2
Consolidated Statements of Income (Loss) (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Maximum [Member] | |
Income loss from equity method investments | $ 0.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net income (loss) | $ (238) | $ (952) |
Other comprehensive income (loss), net of tax: | ||
Currency translation adjustment | 120 | (64) |
Unrealized gain (loss) from derivative financial instruments, net | 8 | 7 |
Unrealized loss on defined benefit plans | (1) | 0 |
Total other comprehensive income (loss) | 127 | (57) |
Total comprehensive income (loss) | (111) | (1,009) |
Comprehensive income (loss) attributable to non-controlling interests | (42) | (50) |
Comprehensive income (loss) attributable to Teva | $ (69) | $ (959) |
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, 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 | 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 | |||||||
Beginning balance at Dec. 31, 2022 | 8,691 | $ 57 | 27,688 | (12,882) | (2,838) | (4,128) | 7,897 | 794 |
Beginning balance, shares at Dec. 31, 2022 | 1,217 | |||||||
Net income (loss) | (238) | (205) | (205) | (33) | ||||
Other comprehensive income (loss) | 127 | 136 | 136 | (9) | ||||
Issuance of Shares, shares | 9 | |||||||
Stock-based compensation expense | 32 | 32 | 32 | |||||
Ending balance at Mar. 31, 2023 | $ 8,612 | $ 57 | $ 27,719 | $ (13,086) | $ (2,701) | $ (4,128) | $ 7,860 | $ 751 |
Ending balance, shares at Mar. 31, 2023 | 1,226 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
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, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net income (loss) | $ (238) | $ (952) |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||
Depreciation and amortization | 304 | 323 |
Impairment of long-lived assets and assets held for sale | 189 | 165 |
Net change in operating assets and liabilities | (364) | 559 |
Deferred income taxes – net and uncertain tax positions | (106) | (175) |
Stock-based compensation | 32 | 24 |
Other items | 34 | 30 |
Net loss (gain) from investments and from sale of long lived assets | 4 | (23) |
Net cash provided by (used in) operating activities | (145) | (49) |
Investing activities: | ||
Beneficial interest collected in exchange for securitized trade receivables | 323 | 305 |
Purchases of property, plant and equipment | (139) | (157) |
Proceeds from sale of business and long lived assets | 2 | 25 |
Acquisition of businesses, net of cash acquired | 0 | (7) |
Purchases of investments and other assets | (4) | (4) |
Other investing activities | (1) | (1) |
Net cash provided by (used in) investing activities | 181 | 161 |
Financing activities: | ||
Repayment of senior notes and loans and other long term liabilities | (3,152) | 0 |
Proceeds from senior notes, net of issuance costs | 2,451 | 0 |
Other financing activities | (5) | 2 |
Net cash provided by (used in) financing activities | (706) | 2 |
Translation adjustment on cash and cash equivalents | 12 | (62) |
Net change in cash, cash equivalents and restricted cash | (658) | 52 |
Balance of cash, cash equivalents and restricted cash at beginning of period | 2,834 | 2,198 |
Balance of cash, cash equivalents and restricted cash at end of period | 2,176 | 2,250 |
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: | ||
Cash and cash equivalents | 2,143 | 2,175 |
Restricted cash included in other current assets | 33 | 75 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 2,176 | 2,250 |
Non-cash financing and investing activities: | ||
Beneficial interest obtained in exchange for securitized accounts receivables | $ 334 | $ 299 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2023 | |
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 preparing the Company’s consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity and disclosure of contingent liabilities and assets at the dates of the financial statements and the reported amounts of revenues and expenses during the reported years. Actual results could differ from those estimates. In preparing the Company’s consolidated financial statements, management also considered the economic implications of inflation expectations on its critical and significant accounting estimates. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to determining the valuation and recoverability of IPR&D assets, marketed product rights and goodwill, assessing sales reserves and allowances in the United States, uncertain tax positions, valuation allowances and contingencies. These estimates could be In February 2022, Russia launched an invasion of Ukraine. As of the date of this Quarterly Report on Form 10-Q, of Teva’s results of operations for the three months ended March 31, 2023 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 September 2022, the FASB issued ASU 2022-04 405-50)”. In October 2021, the FASB issued ASU 2021-08 “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The Company adopted the new accounting standard effective January 1, 2023 and the guidance is applied prospectively to all business combinations with an acquisition date occurring on or after January 2023. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements, not yet adopted None. |
Certain transactions
Certain transactions | 3 Months Ended |
Mar. 31, 2023 | |
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 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 proposed biosimilars 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. Pursuant to a settlement agreement entered into in March 2022, regarding certain IP and trade secrets claims filed by Abbvie against Alvotech in relation to Alvotech’s proposed biosimilar to Humira ® ® ® ® Otsuka On May 12, 2017, Teva entered into a license and collaboration agreement with Otsuka Pharmaceutical Co. Ltd. (“Otsuka”) providing Otsuka with an exclusive license to develop and commercialize AJOVY in Japan. Otsuka paid Teva an upfront payment of $50 million in consideration for the transaction. In the third quarter of 2020, Otsuka submitted an application to obtain manufacturing and marketing approval for AJOVY in Japan and, as a result, paid Teva a milestone payment of $15 million, which was recognized as revenue in the third quarter of 2020. AJOVY was approved in Japan in June 2021 and launched on August 30, 2021. As a result of the launch, Otsuka paid Teva a milestone payment of $35 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. Takeda In December 2016, Teva entered into a license agreement with a subsidiary of Takeda Pharmaceutical Company Ltd. (“Takeda”), for the research, development, manufacture and commercialization of ATTENUKINE TM royalties. MedinCell In November 2013, Teva entered into an agreement with MedinCell for the development and commercialization of multiple long-acting injectable (“LAI”) products. Teva leads the clinical development and regulatory process and is responsible for commercialization of these products. The lead product is TV-46000). TM The second selected product candidate is olanzapine LAI (TEV-44749) (TEV-44749). Assets Held for Sale: General Assets held for sale as of March 31, 2023 and December 31, 2022 included certain manufacturing assets that were sold in the second quarter of 2023. The table below summarizes all of Teva’s assets included as held for sale as of March 31, 2023 and December 31, 2022: March 31, December 31, 2023 2022 (U.S. $ in millions) Inventories 2 2 Property, plant and equipment, net and others 18 18 Adjustments of assets held for sale to fair value (10 ) (10 ) Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 10 $ 10 |
Revenue from contracts with cus
Revenue from contracts with customers | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 North Europe International Other Total (U.S. $ in millions) Sale of goods 1,319 1,176 464 131 3,090 Licensing arrangements 23 14 5 1 43 Distribution 424 § 10 — 434 Other § (6 ) 13 87 95 $ 1,766 1,184 492 219 3,661 § Represents an amount less than $0.5 million. 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. 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 68% of the Company’s total SR&A as of March 31, 2023, with the Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S. $ in millions) Balance at January 1, 2023 $ 67 $ 1,575 $ 663 $ 991 $ 455 $ 66 $ 3,750 $ 3,817 Provisions related to sales made in current year period 80 1,003 142 1,855 73 25 3,098 3,178 Provisions related to sales made in prior periods — (7 ) (36 ) (9 ) 6 (1 ) (47 ) (47 ) Credits and payments (84 ) (1,127 ) (289 ) (1,973 ) (95 ) (21 ) (3,505 ) (3,589 ) Translation differences — 8 2 2 1 § 13 13 Balance at March 31, 2023 $ 63 $ 1,452 $ 482 $ 866 $ 440 $ 69 $ 3,309 $ 3,372 Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S. $ in millions) Balance at January 1, 2022 $ 68 $ 1,655 $ 854 $ 1,085 $ 535 $ 112 $ 4,241 $ 4,309 Provisions related to sales made in current year period 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 § Represents an amount less than $0.5 million. Pledged accounts receivables Accounts receivables, net of allowance for credit losses, include $434 million and $436 million as of March 31, 2023 and December 31, 2022, respectively, which are pledged to PNC Bank, National Association in connection with the U.S. securitization program entered into in November 2022. For further information on our securitization facilities, see note 10f to the consolidated financial statements for the year ended December 31, 2022, included in Teva’s Annual Report on Form 10-K. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventories | NOTE 4 – Inventories: Inventories, net of reserves, consisted of the following: March 31, December 31, 2023 2022 (U.S. $ in millions) Finished products $ 2,110 $ 1,987 Raw and packaging materials 1,205 1,059 Products in process 620 555 Materials in transit and payments on account 183 232 $ 4,118 $ 3,833 |
Identifiable Intangible Assets
Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Identifiable Intangible Assets | NOTE 5 – Identifiable intangible assets: Identifiable intangible assets consisted of the following: Gross carrying amount net of Accumulated amortization Net carrying amount March 31, December 31, March 31, December 31, March 31, December 31, 2023 2022 2023 2022 2023 2022 (U.S. $ in millions) Product rights $ 18,094 $ 18,067 $ 12,934 $ 12,630 $ 5,160 $ 5,437 Trade names 583 577 241 231 342 346 In process research and development 462 487 — — 462 487 Total $ 19,139 $ 19,131 $ 13,175 $ 12,861 $ 5,964 $ 6,270 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 in various therapeutic categories from various acquisitions with a weighted average life period of approximately 9 years. Amortization of intangible assets was $165 million and $200 million in the three months ended March 31, 2023 and 2022, respectively. IPR&D Teva’s IPR&D are assets that have not yet been approved in its major markets. 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, 2023 and 2022 were $178 million and $149 million, respectively. Impairments in the first quarter of 2023 consisted of: (a) Identifiable product rights of $159 million due to: (i) $112 million in Japan, mainly related to regulatory pricing reductions; and (ii) $47 million related to updated market assumptions regarding price and volume of products; and (b) IPR&D assets of $19 million, related to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date). 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. The fair value measurement of the impaired intangible assets in the first quarter of 2023 is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value h |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill | NOTE 6 – Goodwill: Changes in the carrying amount of goodwill for the period ended March 31, 2023 were as follows: North Europe International Other Total Teva’s Medis (U.S. $ in millions) Balance as of December 31, 2022 (1) $ 6,450 $ 8,302 $ 1,339 $ 1,293 $ 249 $ 17,633 Changes during the period: Translation differences 1 82 61 12 10 166 Balance as of March 31, 2023 (1) $ 6,451 $ 8,384 $ 1,400 $ 1,305 $ 259 $ 17,799 (1) Accumulated goodwill impairment as of March 31, 2023 and December 31, 2022 was approximately $27.6 billion. Teva operates its business through three reporting segments: North America, Europe and International Markets. Each of these business segments is a reporting unit. Additional reporting units include Teva’s production and sale of APIs to third parties (“Teva API”) and an out-licensing 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 begins 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. First Quarter Deve lo During the first quarter of 2023, management evaluated whether there were any 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 as of March 31, 2023. Management concluded that no triggering event had occurred and, therefore, no quantitative assessment was performed. Following the goodwill impairment charges recorded in the fourth quarter of 2022 in relation to Teva’s International Markets and Teva’s API reporting units, the carrying values of those reporting units equaled their fair value as of December 31, 2022. Additionally, as part of the quantitative analysis Teva conducted as part of its annual goodwill impairment test in the second quarter of 2022, it concluded that the estimated fair value of Teva’s Europe reporting unit exceeded its estimated carrying amount by 9%. Therefore, if business conditions or expectations were to change materially, it may be necessary to record further impairment charges to Teva’s International Markets, Teva’s Europe or Teva’s API reporting units in the future. |
Debt obligations
Debt obligations | 3 Months Ended |
Mar. 31, 2023 | |
Debt obligations | NOTE 7 – Debt obligations: a. Short-term debt: March 31, December 31, Interest rate as of March 31, 2023 Maturity 2023 2022 (U.S. $ in millions) Convertible senior debentures 0.25 % 2026 23 23 Current maturities of long-term liabilities 1,000 2,086 Total short-term debt $ 1,023 $ 2,109 Convertible senior debentures The principal amount of Teva’s 0.25% convertible senior debentures due 2026 was $23 million as of March 31, 2023 and December 31, 2022. 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: Interest rate as of March 31, 2023 Maturity March 31, December 31, (U.S. $ in millions) Senior notes EUR 1,500 million 1.13 % 2024 683 670 Sustainability-linked senior notes EUR 1,500 million (6)(*) 4.38 % 2030 1,635 1,606 Senior notes EUR 1,300 million (9) 1.25 % 2023 — 633 Sustainability-linked senior notes EUR 1,100 million (7)(*) 3.75 % 2027 1,199 1,177 Senior notes EUR 1,000 million (5) 6.00 % 2025 449 1,070 Senior notes EUR 900 million (5) 4.50 % 2025 541 963 Sustainability-linked senior notes EUR 800 million (1)(*) 7.38 % 2029 872 — Senior notes EUR 750 million 1.63 % 2028 814 800 Senior notes EUR 700 million 1.88 % 2027 762 748 Sustainability-linked senior notes EUR 500 million (2)(*) 7.88 % 2031 545 — Senior notes USD 3,500 million (5) 3.15 % 2026 3,374 3,496 Senior notes USD 3,000 million (5) 2.80 % 2023 1,000 1,453 Senior notes USD 2,000 million 4.10 % 2046 1,986 1,986 Senior notes USD 1,250 million (5) 6.00 % 2024 957 1,250 Senior notes USD 1,250 million 6.75 % 2028 1,250 1,250 Senior notes USD 1,000 million (5) 7.13 % 2025 427 1,000 Sustainability-linked senior notes USD 1,000 million (7)(*) 4.75 % 2027 1,000 1,000 Sustainability-linked senior notes USD 1,000 million (6)(*) 5.13 % 2029 1,000 1,000 Senior notes USD 789 million 6.15 % 2036 783 783 Sustainability-linked senior notes USD 600 million (3)(*) 7.88 % 2029 600 — Sustainability-linked senior notes USD 500 million (4)(*) 8.13 % 2031 500 — Senior notes CHF 350 million 1.00 % 2025 384 382 Total senior notes 20,761 21,266 Other long-term debt 1 1 Less current maturities (1,000 ) (2,086 ) Less debt issuance costs (8) (94 ) (78 ) Total senior notes and loans $ 19,668 $ 19,103 (1) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 800 million euro bearing 7.38% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% (2) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 500 million euro bearing 7.88% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% (3) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $600 million bearing 7.88% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% (4) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $500 million bearing 8.13% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% (5) In March 2023, Teva consummated a cash tender offer and extinguished $631 million aggregate principal amount of its 1,000 million euro 6% senior notes due in 2025; $432 million aggregate principal amount of its 900 million euro 4.5% senior notes due in 2025; $574 million aggregate principal amount of its $1,000 million 7.13% senior notes due in 2025; $454 million aggregate principal amount of its $3,000 million 2.8% senior notes due in 2023; $293 million aggregate principal amount of its $1,250 million 6% senior notes due in 2024 and $122 million aggregate principal amount of its $3,500 million 3.15% senior notes due in 2026. (6) If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.125%-0.375% (7) If Teva fails to achieve certain sustainability performance targets, a one-time 0.15%-0.45% (8) Debt issuance costs as of March 31, 2023 include $26 million in connection with the issuance of the sustainability-linked senior notes in March 2023, partially offset by $6 million acceleration of issuance costs related to the cash tender offer. (9) In March 2023, Teva repaid $646 million of its 1.25% 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. Teva’s debt as of March 31, 2023 was effectively denominated in the following currencies: 62% in U.S. dollars, 36% 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 its $1.8 billion unsecured syndicated sustainability-linked revolving credit facility entered into in April 2022, which was amended in February 2023 (“RCF”). The RCF has a maturity date of April 2026 one-year On February 6, 2023, the terms of the RCF were amended to update the Company’s maximum leverage ratio under the RCF for certain periods. Under the terms of the RCF, as amended, the Company’s leverage ratio shall not exceed 4.25x in the first, second and third quarters of 2023, 4.00x in the fourth quarter of 2023, 4.00x in the first, second and third quarters of 2024, and 3.50x in the fourth quarter of 2024 and onwards. The RCF can be used for general corporate purposes, including repaying existing debt. As of March 31, 2023 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 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, 2023 | |
Derivative Instruments and Hedging Activities | NOTE 8 – Derivative instruments and hedging activities: a. Foreign exchange risk management: In the first quarter The Company enters into forward exchange contracts and 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 its 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: euro, Swiss franc, Japanese yen, British pound, Russian ruble, Canadian dollar, Polish zloty, new Israeli shekel, Indian rupee and other 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 has in the past entered into cross-currency swaps and forward-contracts 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 the issuance of its 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 notional amounts for hedged items, when transactions are designated as hedge accounting: March 31, December 31, 2023 2022 (U.S. $ in millions) Cross-currency swap - cash flow hedge (1) $ 169 $ — The following table summarizes the classification and fair values of Fair value Designated as hedging instruments Not designated as hedging instruments March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Reported under (U.S. $ in millions) (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ — $ — $ 45 $ 29 Other non-current Cross-currency swap-cash flow hedge (1) § — — — Liability derivatives: Other current liabilities: Option and forward contracts — — (63 ) (101 ) § Represents an amount less than $0.5 million. The table below provides information regarding the location and amount of pre-tax (gains) losses from derivatives designated in cash flow hedging relationships: Financial expenses, net Other comprehensive income (loss) Three months ended, Three months ended, March 31, 2023 March 31, March 31, 2023 March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 260 $ 258 $ 127 $ (57 ) Cross-currency swaps - cash flow hedge (1) 1 — (2 ) — 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, March 31, March 31, March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 260 $ 258 $ (3,661 ) $ (3,661 ) Option and forward contracts (2) (13 ) (5 ) — — Option and forward contracts economic hedge (3) — — 6 (19 ) (1) On March 31, 2023, Teva entered into a cross currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen. (2) 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. (3) Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, Swiss franc, Japanese yen, British pound, Russian ruble, Canadian dollar, Polish zloty and several other currencies to protect its projected operating results for 2023. 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 2023, the negative impact from these derivatives recognized under revenues was $6 million. In the first quarter of 2022, the positive impact from these derivatives recognized under revenues 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. Termination of these transactions resulted in a loss position With respect to these forward-starting interest rate swaps and treasury lock agreements, losses of $11 million and $7 million were recognized under financial expenses, net, for each of the three months ended March 31, 2023 and 2022, respectively. |
Legal Settlements and Loss Cont
Legal Settlements and Loss Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Legal Settlements and Loss Contingencies | NOTE 9 – Legal settlements and loss contingencies: In the first quarter of 2023, Teva recorded expenses of $233 million in legal settlements and loss contingencies, compared to $1,124 million in the first quarter of 2022. Expenses in the first quarter of 2023 were mainly related to estimated provision s As of March 31, 2023 and December 31, 2022, Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses and other taxes and long-term liabilities was $4,299 million and $4,186 million, respectively. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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 reasonably 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 obtaining 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 of the product 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”) filed claims against Teva in the U.S. 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®) in September 2007. A jury trial was held and the jury returned a verdict in GSK’s favor finding Teva liable for induced infringement, including willful infringement, and assessing damages of $ million, not including pre- or post-judgment interest or a multiplier for willfulness. Thereafter, the court overturned the jury verdict, finding no induced infringement by Teva and that Teva did not owe any damages. On August 5, 2021, the Court of Appeals for the Federal Circuit issued a two-to-one decision reinstating the $ million verdict and finding Teva liable for patent infringement. On February 11, 2022, the Court of Appeals for the Federal Circuit denied rehearing. Teva appealed this decision to the U.S. Supreme Court on July 11, 2022. In response to Teva’s certiorari 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 types of insurance, 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 certain or 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 to Teva by multiple API manufacturers, including 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, as discussed below. In addition, multiple lawsuits have been filed in connection with this matter. 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. The judge in the valsartan MDL ordered that the first trial, likely commencing in late 2023 or early 2024, will involve third-party payor economic loss claims via a class representative on behalf of several subclasses of payors against Teva and two other defendants. On February 8, 2023, the district court in the valsartan MDL entered an order that certified a series of subclasses on plaintiffs’ economic loss claims and granted in part and denied in part the certification of a medical monitoring class. Defendants sought permission for appellate review of that decision, which was denied. In the ranitidine MDL, the generic manufacturers’ motions to dismiss have been granted, although certain plaintiffs have appeals pending. In addition, on December 6, 2022, the court in the ranitidine MDL granted the brand defendants’ motions to exclude all of plaintiffs’ general causation experts and granted summary judgment to the brand defendants on that ground. 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. State court valsartan and losartan actions are pending in New Jersey and Delaware and are currently stayed. State court ranitidine cases naming Teva are pending in coordinated proceedings in California, Illinois, Pennsylvania and New York, with motions to dismiss pending in Illinois, Pennsylvania and New York on preemption and other grounds. In addition to the valsartan and ranitidine MDLs and coordinated state court proceedings, 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. Defendants’ motion to dismiss that complaint was granted in part and denied in part. 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., 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 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 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. The hearing for the appeal took place in December 2022 and a decision is pending. In December 2011, three groups of plaintiffs filed claims against 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 ® ® ® In February 2012, two purported classes of direct-purchaser plaintiffs filed claims against GSK and Teva in New Jersey federal court for alleged violations of the antitrust laws in connection with their settlement of patent litigation involving lamotrigine (generic Lamictal ® ® ® In April 2013, purported classes of direct purchasers of, and end payers for, Niaspan® (extended release niacin) filed claims against Teva and Abbott for violating the antitrust laws by entering into a settlement agreement in April 2005 to resolve patent litigation over the product. A multidistrict litigation has been established in the U.S. District Court for the Eastern District of Pennsylvania. Throughout 2015 and in January 2016, several individual direct-purchaser opt-out plaintiffs filed complaints with allegations nearly identical to those of the direct purchasers’ class. The court denied the indirect purchasers’ motion for class certification with prejudice, and on April 24, 2023, the denial was affirmed by the Court of Appeals for the Third Circuit. In October 2016, the District Attorney for Orange County, California, filed a similar complaint in California state court, alleging violations of state law and seeking restitution and civil penalties. Annual sales of Niaspan® were approximately ® 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 ® end-payers’ ® ® ® Putative classes of direct-purchaser and end-payer plaintiffs have filed antitrust lawsuits (which have since been coordinated in federal court in Delaware) against Amgen and Teva alleging that the January 2, 2019 settlement agreement between Amgen and Teva, resolving patent litigation over cinacalcet (generic Sensipar®), violated the antitrust laws. In March 2023, Teva moved for re-argument of its motion to certify the district court’s rulings denying Teva’s motion to dismiss in part for review by the U.S. Court of Appeals for the Third Circuit, and is awaiting the court’s decision. Annual sales of Sensipar® in the United States were approximately $ billion at the time Teva launched its generic version of Sensipar® in December 2018, and at the time of the January 2, 2019 settlement. 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 ® 1 ® 1 ® 1 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/or 2014 to resolve patent litigation relating to Teva’s generic versions of Viread ® ® ® . Plaintiffs allege that the settlement agreements contain improper reverse payments that delayed the availability of generic products, in violation of the federal antitrust laws and state law. On February 16, 2022, Teva moved to dismiss the claims by certain private plaintiffs but that motion was denied. However, Teva has successfully moved to limit the potential damages period as to certain private plaintiffs. Plaintiffs in the Northern District of California cases have abandoned any claim for damages relating to the Viread ® In October 2022, the New Mexico Supreme Court granted Teva’s petition for a writ of certiorari ® ® ® ® ® ® $ million, $ billion and $ million, respectively. 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. On October 10, 2022, the European Commission issued a Statement of Objections, which sets forth its preliminary allegations that Teva had engaged in anti-competitive practices. Teva now has the opportunity to formally respond to the European Commission’s allegations. Annual sales of COPAXONE in the European Economic Area for 2021 were approximately $373 million. 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., as well as the CMA’s subsequent investigation relating to an anti-competitive agreement with Waymade. On January 9, 2017, Teva completed the sale of Actavis UK to Accord Healthcare Limited, in connection with which Teva will indemnify Accord Healthcare for potential fines imposed by the CMA and/or damages awarded by a court against Actavis UK in relation to two of the three statements of objection from the CMA (dated December 16, 2016 and March 3, 2017), and resulting from conduct prior to the closing date of the sale. In addition, Teva agreed to indemnify Allergan against losses arising from this matter in the event of any such fines or damages. On October 6, 2021, Accord UK and Auden Mckenzie appealed the CMA’s decision. A provision for the estimated exposure for Teva related to the fines and/or damages has been recorded in the financial statements. The hearing for the appeal concluded in the first quarter of 2023, and a decision remains pending. 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 ® ® In November 2022, two complaints, one brought by Walgreen Co. and Kroger Specialty Pharmacy, Inc. and another by Fraternal Order of Police, Miami Lodge 20, Insurance Trust Fund and Jacksonville Police Officers and Fire Fighters Health Insurance Trust (collectively the “Walgreen and EPP complaints”), were filed in the United States District Court for the District of New Jersey against Teva and its marketing partner, Natco Pharma Limited (“Natco”), alleging violations of the antitrust laws in connection with their December 2015 settlement of patent litigation with Celgene Corporation (which was subsequently acquired by Bristol-Myers Squibb Company (“BMS”)) involving the drug Revlimid ® pre-trial Opt-Out In Re Revlimid & Thalomid Purchaser Antitrust Litigation 2:19-cv-7532-ES-MAH. ® On December 2, 2022, plaintiffs purporting to represent putative classes of indirect purchasers of EpiPen® (epinephrine injection) and Nuvigil® (armodafinil) filed a complaint in the United States District Court for the District of Kansas against Teva, Cephalon, and a former Teva executive. Teva owns the New Drug Application (“NDA”) for Nuvigil® and sold the brand product, for which generic entry occurred in 2016. Teva filed an ANDA to sell generic EpiPen®, which Teva launched in 2018, following receipt of FDA approval. The complaint alleges, among other things, that the defendants violated the federal antitrust laws, the Racketeer Influenced and Corrupt Organizations Act (“RICO Act”), and various state laws in connection with settlements resolving patent litigation relating to those products. Plaintiffs seek injunctive relief, compensatory and punitive damages, interest, attorneys’ fees and costs. On March 8, 2023, Teva filed a motion to dismiss the complaint, which is pending. Annual sales of Nuvigil® in the United States were approximately $ ® 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, co-defendant 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. 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. On December 9, 2021, the Court entered an order setting the schedule for the proceedings in the bellwether cases, which the Court later amended on October 13, 2022. This amended schedule does not include trial dates, but provides for the parties to complete briefing on motions for summary judgment in the third quarter of 2024. On June 7, 2022, the Court dismissed the attorneys’ general claims for monetary relief under federal law, concluding that the federal statute under which the attorneys general brought suit authorizes injunctive relief only. However, the attorneys general have pending claims for monetary relief under state law. On February 27, 2023, the Court largely denied defendants’ motions to dismiss the federal claims asserted by the attorneys general in their bellwether complaint. Another motion to dismiss, directed at that same complaint, and related to the state law claims asserted by the attorneys general, remains pending. Teva has settled with the states of Mississippi (in June 2021), Louisiana (in March 2022), Georgia (in September 2022), Arkansas (in October 2022) and Florida (in February 2023). Teva paid each state an amount proportional to its share of the national population (approximately $1,000,000 for each 1% share of the national population), and the states have dismissed their claims against Actavis and Teva USA, as well as certain former employees of Actavis and Teva USA, pursuant to these settlements. On March 30, 2022, the State of Alabama voluntarily dismissed all of its claims in the litigation, including its claims against Actavis and Teva USA, without prejudice. The territories of American Samoa and Guam have also voluntarily dismissed all of their claims in the litigation, including their claims against Actavis and Teva USA; American Samoa’s dismissal was without prejudice in July 2020, and Guam’s dismissal was with prejudice in February 2023. The most recent settlement with Florida follows the pattern reached in earlier settlements. Specifically, as mentioned above, Teva agreed to pay each state an amount proportional to its share of the national population. This, in addition to the status of ongoing negotiations with several other U.S. state attorneys general to settle on comparable terms, caused management to consider settlement of the claims filed by the remaining attorneys general to be probable, and management recorded an estimated provision in the third quarter of 2022, in accordance with Accounting Standards Codification 450 “Accounting for Contingencies.” 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 (the “DOJ PAP Complaint”). 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 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 DOJ PAP Complaint. Trial for this matter is currently scheduled for September 2023. On April 24, 2023, both parties filed summary judgment motions, which are currently pending. In the first quarter of 2023, Teva recognized a provision based on its offer to settle this matter. 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 DOJ PAP Complaint. On April 2, 2021, Teva filed a motion to dismiss Humana’s claims on the grounds that the claims are |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income taxes | NOTE 11 – Income taxes: In the first quarter of 2023, Teva recognized a tax benefit of $19 million, on pre-tax pre-tax The statutory Israeli corporate tax rate is 23% in 2023. 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 items. Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. A trial for this case is currently scheduled to begin in July 2023. A final and binding decision against Teva in this case may lead to a charge of $ The Israeli tax authorities (“ITA”) issued tax assessment decrees for 2008-2011, 2012 and 2013-2016, challenging the Company’s positions on several issues. Teva has protested the 2008-2011, 2012 and 2013-2016 decrees before the Central District Court in Israel. On April 17, 2023, the ITA issued a tax assessment for 2017-2020, challenging the Company’s positions on several issues. The Company intends to challenge the tax assessment for 2017-2020, as well. In October 2021, the Central District Court in Israel held in favor of the ITA with respect to 2008-2011 decrees. The case with respect to 2012-2016 remains pending with similar legal and other claims. Teva appealed this decision to the Israeli Supreme Court and expects the appeal hearing to begin in the second half of 2023. The tax liability resulting from the October 2021 Central District Court decision, with respect to the decrees for 2008-2011 and with regard to the similar legal claims in the related following years, was approximately $350 million, of which a portion has been and will continue to be paid during 2022 and 2023. 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, 2023 | |
Other assets impairments, restructuring and other items | NOTE 12 – Other assets impairments, restructuring and other items: Three months ended March 31, 2023 2022 (U.S. $ in millions) Impairments $ 10 $ 16 Contingent consideration 20 33 Restructuring 56 57 Other 9 21 Total $ 96 $ 128 (1) Including impairments related to exit and disposal activities. Impairments Impairments of tangible assets for the three months ended March 31, 2023 and 2022 were $10 million and $16 million, respectively. 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, 2023, Teva recorded an expense of $20 million for contingent consideration, compared to an expense of $33 million in the three months ended March 31, 2022. The expense in the first three months of 2023 was mainly related to a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales and a change in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid ® ® Restructuring In the three months ended March 31, 2023, Teva recorded $56 million of restructuring expenses, compared to $57 million in the three months ended March 31, 2022. The expenses for the three months ended March 31, 2023 and March 31, 2022 were primarily related to network consolidation activities. The following tables provide the components of restructuring costs: Three months ended March 31, 2023 2022 (U.S. $ in millions) Restructuring Employee termination $ 23 $ 52 Other 33 5 Total $ 56 $ 57 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, 2023 $ (112 ) $ (7 ) $ (119 ) Provision (23 ) (33 ) (56 ) Utilization and other* 25 27 52 Balance as of March 31, 2023 $ (110 ) $ (13 ) $ (123 ) 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 ) * Includes adjustments for foreign currency translation. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022, no account was taken of 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 for the three months ended March 31, 2023 and 2022 were 1,115 million and 1,107 million shares, respectively. Basic and diluted loss per share was $0.18 for the three months ended March 31, 2023, compared to basic and diluted loss per share of $0.86 for the three months ended March 31, 2022. |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022, net of taxes $ (2,514 ) $ (295 ) $ (28 ) $ (2,838 ) Other comprehensive income (loss) before reclassifications 122 — — 122 Amounts reclassified to the statements of income — 8 (1 ) 7 Net other comprehensive income (loss) before tax 122 8 (1 ) 129 Corresponding income tax 7 — — 7 Net other comprehensive income (loss) after tax* 129 8 (1 ) 136 Balance as of March 31, 2023, net of taxes $ (2,385 ) $ (287 ) $ (29 ) $ (2,701 ) * Amounts do not include a $9 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, 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 |
Segments
Segments | 3 Months Ended |
Mar. 31, 2023 | |
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. Currently, Teva’s newly appointed CEO is reviewing its strategy and organizational structure. Any changes in strategy may lead to a reevaluation of the Company’s segments and goodwill allocation to reporting units, as well as fair value attributable to its reporting units. See note 3 and note 6. a. Segment information: Three months ended March 31, 2023 North America Europe International Markets (U.S. $ in millions) Revenues $ 1,766 $ 1,184 $ 492 Gross profit 812 655 262 R&D expenses 156 53 20 S&M expenses 223 187 98 G&A expenses 102 70 31 Other income (1 ) § (1 ) Segment profit $ 332 $ 345 $ 114 § Represents an amount less than $0.5 million. 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. 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, 2023 and 2022: Three months ended March 31, 2023 2022 (U.S. $ in millions) North America profit $ 332 $ 402 Europe profit 345 381 International Markets profit 114 179 Total reportable segments profit 791 962 Profit (loss) of other activities (6 ) 52 Total segments profit 785 1,013 Amounts not allocated to segments: Amortization 165 200 Other assets impairments, restructuring and other items 96 128 Intangible assets impairments 178 149 Legal settlements and loss contingencies 233 1,124 Other unallocated amounts 112 127 Consolidated operating income (loss) 2 (713 ) Financial expenses, net 260 258 Consolidated income (loss) before income taxes $ (258 ) $ (971 ) 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, 2023 and 2022: North America Three months ended March 31, 2023 2022 (U.S. $ in millions) Generic products $ 824 $ 899 AJOVY 49 36 AUSTEDO 170 154 BENDEKA ® ® 63 82 COPAXONE 76 86 Anda 424 342 Other 160 139 Total $ 1,766 $ 1,737 Europe Three months ended March 31, 2023 2022 (U.S. $ in millions) Generic products $ 932 $ 876 AJOVY 36 30 COPAXONE 59 72 Respiratory products 68 71 Other 89 107 Total $ 1,184 $ 1,156 International markets Three months ended March 31, 2023 2022 (U.S. $ in millions) Generic products $ 400 $ 388 AJOVY 10 6 COPAXONE 12 10 Other 70 88 Total $ 492 $ 492 |
Fair value measurement
Fair value measurement | 3 Months Ended |
Mar. 31, 2023 | |
Fair value measurement | NOTE 16 – Fair value measurement: Financial items carried at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 are classified in the tables below in one of the three categories of fair value levels: March 31, 2023 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 702 $ — $ — $ 702 Cash, deposits and other 1,441 — — 1,441 Investment in securities: Equity securities 10 — — 10 Other 6 — 1 7 Restricted cash 33 — — 33 Derivatives: Asset derivatives Options and forward contracts — 45 — 45 Cross currency interest rate swaps — § — Liability derivatives Options and forward contracts — (63 ) — (63 ) Bifurcated embedded derivatives — — § — Contingent consideration* — — (148 ) (148 ) Total $ 2,192 $ (18 ) $ (147 ) $ 2,027 December 31, 2022 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 1,222 $ — $ — $ 1,222 Cash, deposits and other 1,579 — — 1,579 Investment in securities: Equity securities 9 — — 9 Other 5 — 1 6 Restricted cash 33 — — 33 Derivatives: Asset derivatives — 29 — 29 Liability derivatives Options and forward contracts — (101 ) — (101 ) Bifurcated embedded derivatives — — § — Contingent consideration* $ — — (153 ) (153 ) Total 2,848 $ (73 ) $ (152 ) $ 2,624 § 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 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 contingent consideration is based on several factors, such as cash flows projected from the success of unapproved product candidates; probability of success of product candidates, including risks associated with uncertainty regarding achievement and payment of milestone events; time and resources required to complete the development and approval of product candidates; life of the potential commercialized products and associated risks with 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 risks of the contingent payments and IPR&D. The discount rate applied ranged from 8.5% to 11%. The weighted average discount rate, calculated based on the relative fair value of Teva’s contingent consideration liabilities, was 8.95%. Contingent consideration is evaluated quarterly, or more frequently, if circumstances dictate. Changes in the fair value of contingent consideration are recorded in the 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 the 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 $ (152 ) (175 ) Bifurcated embedded derivatives § § Adjustments to provisions for contingent consideration: Actavis Generics transaction (9 ) (31 ) Eagle transaction (11 ) (2 ) Novetide transaction (1 ) — Settlement of contingent consideration: Actavis Generics transaction 2 — Eagle transaction 21 23 Novetide transaction 2 Additional contingent consideration resulting from Novetide acquisition* — (11 ) Fair value at the end of the period $ (148 ) $ (196 ) § 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, 2023 2022 (U.S. $ in millions) Senior notes and sustainability-linked senior notes included under senior notes and loans $ 18,007 $ 16,694 Senior notes and convertible senior debentures included under short-term debt 1,013 2,075 Total $ 19,020 $ 18,769 * The fair value was estimated based on quoted market prices. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Recently adopted and issued accounting pronouncements | Recently adopted accounting pronouncements In September 2022, the FASB issued ASU 2022-04 405-50)”. In October 2021, the FASB issued ASU 2021-08 “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The Company adopted the new accounting standard effective January 1, 2023 and the guidance is applied prospectively to all business combinations with an acquisition date occurring on or after January 2023. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Recently issued accounting pronouncements, not yet adopted | Recently issued accounting pronouncements, not yet adopted None. |
Certain transactions (Tables)
Certain transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Major Classes of Assets and Liabilities Included as Held for Sale | The table below summarizes all of Teva’s assets included as held for sale as of March 31, 2023 and December 31, 2022: March 31, December 31, 2023 2022 (U.S. $ in millions) Inventories 2 2 Property, plant and equipment, net and others 18 18 Adjustments of assets held for sale to fair value (10 ) (10 ) Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 10 $ 10 |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 North Europe International Other Total (U.S. $ in millions) Sale of goods 1,319 1,176 464 131 3,090 Licensing arrangements 23 14 5 1 43 Distribution 424 § 10 — 434 Other § (6 ) 13 87 95 $ 1,766 1,184 492 219 3,661 § Represents an amount less than $0.5 million. 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. |
Summary of Sales Reserves and Allowances | Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S. $ in millions) Balance at January 1, 2023 $ 67 $ 1,575 $ 663 $ 991 $ 455 $ 66 $ 3,750 $ 3,817 Provisions related to sales made in current year period 80 1,003 142 1,855 73 25 3,098 3,178 Provisions related to sales made in prior periods — (7 ) (36 ) (9 ) 6 (1 ) (47 ) (47 ) Credits and payments (84 ) (1,127 ) (289 ) (1,973 ) (95 ) (21 ) (3,505 ) (3,589 ) Translation differences — 8 2 2 1 § 13 13 Balance at March 31, 2023 $ 63 $ 1,452 $ 482 $ 866 $ 440 $ 69 $ 3,309 $ 3,372 Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S. $ in millions) Balance at January 1, 2022 $ 68 $ 1,655 $ 854 $ 1,085 $ 535 $ 112 $ 4,241 $ 4,309 Provisions related to sales made in current year period 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 § Represents an amount less than $0.5 million. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Inventories | Inventories, net of reserves, consisted of the following: March 31, December 31, 2023 2022 (U.S. $ in millions) Finished products $ 2,110 $ 1,987 Raw and packaging materials 1,205 1,059 Products in process 620 555 Materials in transit and payments on account 183 232 $ 4,118 $ 3,833 |
Identifiable Intangible Assets
Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Identifiable Intangible Assets | Identifiable intangible assets consisted of the following: Gross carrying amount net of Accumulated amortization Net carrying amount March 31, December 31, March 31, December 31, March 31, December 31, 2023 2022 2023 2022 2023 2022 (U.S. $ in millions) Product rights $ 18,094 $ 18,067 $ 12,934 $ 12,630 $ 5,160 $ 5,437 Trade names 583 577 241 231 342 346 In process research and development 462 487 — — 462 487 Total $ 19,139 $ 19,131 $ 13,175 $ 12,861 $ 5,964 $ 6,270 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Changes in the Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill for the period ended March 31, 2023 were as follows: North Europe International Other Total Teva’s Medis (U.S. $ in millions) Balance as of December 31, 2022 (1) $ 6,450 $ 8,302 $ 1,339 $ 1,293 $ 249 $ 17,633 Changes during the period: Translation differences 1 82 61 12 10 166 Balance as of March 31, 2023 (1) $ 6,451 $ 8,384 $ 1,400 $ 1,305 $ 259 $ 17,799 (1) Accumulated goodwill impairment as of March 31, 2023 and December 31, 2022 was approximately $27.6 billion. |
Debt obligations (Tables)
Debt obligations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Schedule of Short-term Debt | a. Short-term debt: March 31, December 31, Interest rate as of March 31, 2023 Maturity 2023 2022 (U.S. $ in millions) Convertible senior debentures 0.25 % 2026 23 23 Current maturities of long-term liabilities 1,000 2,086 Total short-term debt $ 1,023 $ 2,109 |
Schedule of Senior Notes and Loans | b. Long-term debt: Interest rate as of March 31, 2023 Maturity March 31, December 31, (U.S. $ in millions) Senior notes EUR 1,500 million 1.13 % 2024 683 670 Sustainability-linked senior notes EUR 1,500 million (6)(*) 4.38 % 2030 1,635 1,606 Senior notes EUR 1,300 million (9) 1.25 % 2023 — 633 Sustainability-linked senior notes EUR 1,100 million (7)(*) 3.75 % 2027 1,199 1,177 Senior notes EUR 1,000 million (5) 6.00 % 2025 449 1,070 Senior notes EUR 900 million (5) 4.50 % 2025 541 963 Sustainability-linked senior notes EUR 800 million (1)(*) 7.38 % 2029 872 — Senior notes EUR 750 million 1.63 % 2028 814 800 Senior notes EUR 700 million 1.88 % 2027 762 748 Sustainability-linked senior notes EUR 500 million (2)(*) 7.88 % 2031 545 — Senior notes USD 3,500 million (5) 3.15 % 2026 3,374 3,496 Senior notes USD 3,000 million (5) 2.80 % 2023 1,000 1,453 Senior notes USD 2,000 million 4.10 % 2046 1,986 1,986 Senior notes USD 1,250 million (5) 6.00 % 2024 957 1,250 Senior notes USD 1,250 million 6.75 % 2028 1,250 1,250 Senior notes USD 1,000 million (5) 7.13 % 2025 427 1,000 Sustainability-linked senior notes USD 1,000 million (7)(*) 4.75 % 2027 1,000 1,000 Sustainability-linked senior notes USD 1,000 million (6)(*) 5.13 % 2029 1,000 1,000 Senior notes USD 789 million 6.15 % 2036 783 783 Sustainability-linked senior notes USD 600 million (3)(*) 7.88 % 2029 600 — Sustainability-linked senior notes USD 500 million (4)(*) 8.13 % 2031 500 — Senior notes CHF 350 million 1.00 % 2025 384 382 Total senior notes 20,761 21,266 Other long-term debt 1 1 Less current maturities (1,000 ) (2,086 ) Less debt issuance costs (8) (94 ) (78 ) Total senior notes and loans $ 19,668 $ 19,103 (1) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 800 million euro bearing 7.38% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% (2) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 500 million euro bearing 7.88% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% (3) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $600 million bearing 7.88% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% (4) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $500 million bearing 8.13% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% (5) In March 2023, Teva consummated a cash tender offer and extinguished $631 million aggregate principal amount of its 1,000 million euro 6% senior notes due in 2025; $432 million aggregate principal amount of its 900 million euro 4.5% senior notes due in 2025; $574 million aggregate principal amount of its $1,000 million 7.13% senior notes due in 2025; $454 million aggregate principal amount of its $3,000 million 2.8% senior notes due in 2023; $293 million aggregate principal amount of its $1,250 million 6% senior notes due in 2024 and $122 million aggregate principal amount of its $3,500 million 3.15% senior notes due in 2026. (6) If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.125%-0.375% (7) If Teva fails to achieve certain sustainability performance targets, a one-time 0.15%-0.45% (8) Debt issuance costs as of March 31, 2023 include $26 million in connection with the issuance of the sustainability-linked senior notes in March 2023, partially offset by $6 million acceleration of issuance costs related to the cash tender offer. (9) In March 2023, Teva repaid $646 million of its 1.25% 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, 2023 | |
Summary of Notional Amounts for Hedged Items | The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting: March 31, December 31, 2023 2022 (U.S. $ in millions) Cross-currency swap - cash flow hedge (1) $ 169 $ — |
Summary of Classification and Fair Values of Derivative Instruments | The following table summarizes the classification and fair values of Fair value Designated as hedging instruments Not designated as hedging instruments March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Reported under (U.S. $ in millions) (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ — $ — $ 45 $ 29 Other non-current Cross-currency swap-cash flow hedge (1) § — — — Liability derivatives: Other current liabilities: Option and forward contracts — — (63 ) (101 ) § Represents an amount less than $0.5 million. |
Derivatives Not Designated as Hedging Instruments | 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, March 31, March 31, March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 260 $ 258 $ (3,661 ) $ (3,661 ) Option and forward contracts (2) (13 ) (5 ) — — Option and forward contracts economic hedge (3) — — 6 (19 ) |
Summary Of Pre-tax (gains) losses from Derivatives Designated in Cash Flow Hedging Relationships | The table below provides information regarding the location and amount of pre-tax (gains) losses from derivatives designated in cash flow hedging relationships: Financial expenses, net Other comprehensive income (loss) Three months ended, Three months ended, March 31, 2023 March 31, March 31, 2023 March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 260 $ 258 $ 127 $ (57 ) Cross-currency swaps - cash flow hedge (1) 1 — (2 ) — |
Commitments and contingencies (
Commitments and contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Material Details Of Individual Settlements | Date Jurisdiction Settlement * Payment Settlement Product Product WAC Value and Term June 7, 2019 Oklahoma $72.3 million (paid) 1 year N/A N/A December 27, 2019 Cuyahoga County, OH $12.4 million (paid) 2.5 years buprenorphine naloxone (generic Suboxone ® $15.5 million (3 years) December 27, 2019 Summit County, OH $7.6 million (paid) 2.5 years buprenorphine naloxone (generic Suboxone ® $9.5 million (3 years) January 18, 2022 Louisiana $15 million 18 years buprenorphine naloxone (generic Suboxone ® $3 million (1 year) February 4, 2022 Texas $131.5 million 15 years naloxone hydrochloride (generic Narcan®) $75 million (10 years) March 21, 2022 Rhode Island $21 million 13 years naloxone hydrochloride (generic Narcan ® buprenorphine naloxone (generic Suboxone ® $78.5 million (10 years) March 30, 2022 Florida $177.1 million 15 years naloxone hydrochloride (generic Narcan®) $84 million (10 years) July 12, 2022 San Francisco $19.5 million 13 years naloxone hydrochloride (generic Narcan®) $20 million (10 years) September 19, 2022 West Virginia $75.4 million 15 years naloxone hydrochloride (generic Narcan®) $27 million (10 years) November 3, 2022 New York $313.3 million ** 18 years N/A N/A February 24, 2023 Tribes $108.3 million 13 years naloxone hydrochloride (generic Narcan®) $25 million (10 years) * Amounts exclude attorneys’ fees and costs, except New York. ** Not including cash payment and attorneys’ fees allocated under the nationwide settlement. |
Other assets impairments, res_2
Other assets impairments, restructuring and other items (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Schedule of Other Assets Impairments, Restructuring and Other Items | Three months ended March 31, 2023 2022 (U.S. $ in millions) Impairments $ 10 $ 16 Contingent consideration 20 33 Restructuring 56 57 Other 9 21 Total $ 96 $ 128 (1) Including impairments related to exit and disposal activities. |
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, 2023 2022 (U.S. $ in millions) Restructuring Employee termination $ 23 $ 52 Other 33 5 Total $ 56 $ 57 |
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, 2023 $ (112 ) $ (7 ) $ (119 ) Provision (23 ) (33 ) (56 ) Utilization and other* 25 27 52 Balance as of March 31, 2023 $ (110 ) $ (13 ) $ (123 ) 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 ) * Includes adjustments for foreign currency translation. |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022, net of taxes $ (2,514 ) $ (295 ) $ (28 ) $ (2,838 ) Other comprehensive income (loss) before reclassifications 122 — — 122 Amounts reclassified to the statements of income — 8 (1 ) 7 Net other comprehensive income (loss) before tax 122 8 (1 ) 129 Corresponding income tax 7 — — 7 Net other comprehensive income (loss) after tax* 129 8 (1 ) 136 Balance as of March 31, 2023, net of taxes $ (2,385 ) $ (287 ) $ (29 ) $ (2,701 ) * Amounts do not include a $9 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, 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 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Segment Profit | a. Segment information: Three months ended March 31, 2023 North America Europe International Markets (U.S. $ in millions) Revenues $ 1,766 $ 1,184 $ 492 Gross profit 812 655 262 R&D expenses 156 53 20 S&M expenses 223 187 98 G&A expenses 102 70 31 Other income (1 ) § (1 ) Segment profit $ 332 $ 345 $ 114 § Represents an amount less than $0.5 million. 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. |
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, 2023 and 2022: Three months ended March 31, 2023 2022 (U.S. $ in millions) North America profit $ 332 $ 402 Europe profit 345 381 International Markets profit 114 179 Total reportable segments profit 791 962 Profit (loss) of other activities (6 ) 52 Total segments profit 785 1,013 Amounts not allocated to segments: Amortization 165 200 Other assets impairments, restructuring and other items 96 128 Intangible assets impairments 178 149 Legal settlements and loss contingencies 233 1,124 Other unallocated amounts 112 127 Consolidated operating income (loss) 2 (713 ) Financial expenses, net 260 258 Consolidated income (loss) before income taxes $ (258 ) $ (971 ) |
Schedule of Net Sales by Product Line | The following tables present revenues by major products and activities for the three months ended March 31, 2023 and 2022: North America Three months ended March 31, 2023 2022 (U.S. $ in millions) Generic products $ 824 $ 899 AJOVY 49 36 AUSTEDO 170 154 BENDEKA ® ® 63 82 COPAXONE 76 86 Anda 424 342 Other 160 139 Total $ 1,766 $ 1,737 Europe Three months ended March 31, 2023 2022 (U.S. $ in millions) Generic products $ 932 $ 876 AJOVY 36 30 COPAXONE 59 72 Respiratory products 68 71 Other 89 107 Total $ 1,184 $ 1,156 International markets Three months ended March 31, 2023 2022 (U.S. $ in millions) Generic products $ 400 $ 388 AJOVY 10 6 COPAXONE 12 10 Other 70 88 Total $ 492 $ 492 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Financial Items Carried at Fair Value | Financial items carried at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 are classified in the tables below in one of the three categories of fair value levels: March 31, 2023 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 702 $ — $ — $ 702 Cash, deposits and other 1,441 — — 1,441 Investment in securities: Equity securities 10 — — 10 Other 6 — 1 7 Restricted cash 33 — — 33 Derivatives: Asset derivatives Options and forward contracts — 45 — 45 Cross currency interest rate swaps — § — Liability derivatives Options and forward contracts — (63 ) — (63 ) Bifurcated embedded derivatives — — § — Contingent consideration* — — (148 ) (148 ) Total $ 2,192 $ (18 ) $ (147 ) $ 2,027 December 31, 2022 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 1,222 $ — $ — $ 1,222 Cash, deposits and other 1,579 — — 1,579 Investment in securities: Equity securities 9 — — 9 Other 5 — 1 6 Restricted cash 33 — — 33 Derivatives: Asset derivatives — 29 — 29 Liability derivatives Options and forward contracts — (101 ) — (101 ) Bifurcated embedded derivatives — — § — Contingent consideration* $ — — (153 ) (153 ) Total 2,848 $ (73 ) $ (152 ) $ 2,624 § 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 the 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 $ (152 ) (175 ) Bifurcated embedded derivatives § § Adjustments to provisions for contingent consideration: Actavis Generics transaction (9 ) (31 ) Eagle transaction (11 ) (2 ) Novetide transaction (1 ) — Settlement of contingent consideration: Actavis Generics transaction 2 — Eagle transaction 21 23 Novetide transaction 2 Additional contingent consideration resulting from Novetide acquisition* — (11 ) Fair value at the end of the period $ (148 ) $ (196 ) § 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. |
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, 2023 2022 (U.S. $ in millions) Senior notes and sustainability-linked senior notes included under senior notes and loans $ 18,007 $ 16,694 Senior notes and convertible senior debentures included under short-term debt 1,013 2,075 Total $ 19,020 $ 18,769 * The fair value was estimated based on quoted market prices. |
Certain Transactions - Other Tr
Certain Transactions - Other Transactions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||||||||
May 12, 2017 | Oct. 31, 2021 | Aug. 31, 2021 | Dec. 31, 2016 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Otsuka [Member] | ||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||
Upfront payment | $ 50 | |||||||||
Milestone payment | $ 35 | $ 15 | ||||||||
Takeda [Member] | ||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||
Upfront payment | $ 30 | |||||||||
Milestone payment | 20 | $ 25 | ||||||||
Collaborative agreement milestone payments | $ 519 | |||||||||
Alvotech [Member] | ||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||
Collaborative agreement milestone payments | $ 400 | |||||||||
MedinCell [Member] | ||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||
Milestone payment | $ 3 | |||||||||
Collaborative agreement milestone payments | $ 105 | |||||||||
MODAG [Member] | ||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||||||||
License agreement potential aggregate milestone payments amount | $ 30 | |||||||||
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 | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Business Combinations [Abstract] | ||
Inventories | $ 2 | $ 2 |
Property, plant and equipment, net and others | 18 | 18 |
Adjustments of assets held for sale to fair value | (10) | |
Total assets of the disposal group classified as held for sale in the consolidated balance sheets | $ 10 | $ 10 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Pledged to PNC Bank, National Association in connection with the U.S. securitization program entered into in November 2022 [Member] | Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | ||
Revenue Recognition [Line Items] | ||
Accounts receivable from securitization | $ 434 | $ 436 |
United States [Member] | ||
Revenue Recognition [Line Items] | ||
Percentage sales reserves and allowances to U.S. customers | 68% |
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, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 3,661 | $ 3,661 |
Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3,090 | 3,136 |
Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 43 | 38 |
Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 434 | 358 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 95 | 129 |
International Markets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 492 | 492 |
International Markets [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 464 | 445 |
International Markets [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5 | 4 |
International Markets [Member] | Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 10 | 16 |
International Markets [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 13 | 27 |
Other activities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 219 | 275 |
Other activities [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 131 | 180 |
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 | 87 | 95 |
North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,766 | 1,737 |
North America [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,319 | 1,377 |
North America [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 23 | 21 |
North America [Member] | Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 424 | 342 |
North America [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | (2) | |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,184 | 1,156 |
Europe [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,176 | 1,134 |
Europe [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 14 | 12 |
Europe [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ (6) | $ 9 |
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, 2023 | Mar. 31, 2022 | |
Revenue Recognition [Line Items] | ||
Balance at beginning of period | $ 3,817 | $ 4,309 |
Provisions related to sales made in current year period | 3,178 | 3,170 |
Provisions related to sales made in prior periods | (47) | (87) |
Credits and payments | (3,589) | (3,518) |
Translation differences | 13 | (5) |
Balance at end of period | 3,372 | 3,869 |
Reserves Included in Accounts Receivable, net [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 67 | 68 |
Provisions related to sales made in current year period | 80 | 82 |
Provisions related to sales made in prior periods | 0 | |
Credits and payments | (84) | (88) |
Translation differences | 0 | |
Balance at end of period | 63 | 62 |
Rebates [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 1,575 | 1,655 |
Provisions related to sales made in current year period | 1,003 | 928 |
Provisions related to sales made in prior periods | (7) | (90) |
Credits and payments | (1,127) | (1,037) |
Translation differences | 8 | (3) |
Balance at end of period | 1,452 | 1,453 |
Medicaid and other governmental allowances [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 663 | 854 |
Provisions related to sales made in current year period | 142 | 198 |
Provisions related to sales made in prior periods | (36) | 26 |
Credits and payments | (289) | (270) |
Translation differences | 2 | (1) |
Balance at end of period | 482 | 807 |
Chargebacks [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 991 | 1,085 |
Provisions related to sales made in current year period | 1,855 | 1,814 |
Provisions related to sales made in prior periods | (9) | (8) |
Credits and payments | (1,973) | (1,940) |
Translation differences | 2 | 0 |
Balance at end of period | 866 | 951 |
Returns [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 455 | 535 |
Provisions related to sales made in current year period | 73 | 58 |
Provisions related to sales made in prior periods | 6 | (14) |
Credits and payments | (95) | (110) |
Translation differences | 1 | 0 |
Balance at end of period | 440 | 469 |
Other [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 66 | 112 |
Provisions related to sales made in current year period | 25 | 90 |
Provisions related to sales made in prior periods | (1) | (1) |
Credits and payments | (21) | (73) |
Translation differences | (1) | |
Balance at end of period | 69 | 127 |
Total reserves included in sales reserves and allowances [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 3,750 | 4,241 |
Provisions related to sales made in current year period | 3,098 | 3,088 |
Provisions related to sales made in prior periods | (47) | (87) |
Credits and payments | (3,505) | (3,430) |
Translation differences | 13 | (5) |
Balance at end of period | $ 3,309 | $ 3,807 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventories [Line Items] | ||
Finished products | $ 2,110 | $ 1,987 |
Raw and packaging materials | 1,205 | 1,059 |
Products in process | 620 | 555 |
Materials in transit and payments on account | 183 | 232 |
Total | $ 4,118 | $ 3,833 |
Identifiable Intangible Asset_2
Identifiable Intangible Assets - Summary of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | $ 19,139 | $ 19,131 |
Accumulated amortization | 13,175 | 12,861 |
Net carrying amount | 5,964 | 6,270 |
Product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 18,094 | 18,067 |
Accumulated amortization | 12,934 | 12,630 |
Net carrying amount | 5,160 | 5,437 |
Trade names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 583 | 577 |
Accumulated amortization | 241 | 231 |
Net carrying amount | 342 | 346 |
In process research and development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 462 | 487 |
Net carrying amount | $ 462 | $ 487 |
Identifiable Intangible Asset_3
Identifiable Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets useful life | 9 years | |
Amortization of intangible assets | $ 165 | $ 200 |
Impairment of intangible assets excluding goodwill | $ 178 | $ 149 |
Minimum [Member] | Measurement input, discount rate [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 8.5 | |
Maximum [Member] | Measurement input, discount rate [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 11 | |
In process research and development [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 8.5 | |
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 | 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 | 90 | |
In process research and development [Member] | Generic Pipeline Products [Member] | Development Progress And Changes In Other Key Valuation Assumptions [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | $ 19 | |
Identifiable product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | 159 | |
Identifiable product rights [Member] | Regulatory Price And Volume Of Products [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | 47 | |
Identifiable product rights [Member] | Lenalidomide Product [Member] | Price And Volume Of Products [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | 129 | |
Japan [Member] | Identifiable product rights [Member] | Updated Market Assumptions [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets excluding goodwill | $ 112 |
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, 2023 USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance | $ 17,633 | [1] |
Translation differences | 166 | |
Ending balance | 17,799 | [1] |
North America [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 6,450 | [1] |
Translation differences | 1 | |
Ending balance | 6,451 | [1] |
Europe [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 8,302 | [1] |
Translation differences | 82 | |
Ending balance | 8,384 | [1] |
International Markets [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 1,339 | [1] |
Translation differences | 61 | |
Ending balance | 1,400 | [1] |
Other [Member] | Medis Reporting Unit [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 249 | [1] |
Translation differences | 10 | |
Ending balance | 259 | [1] |
Other [Member] | Tevas API Reporting Unit [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 1,293 | [1] |
Translation differences | 12 | |
Ending balance | $ 1,305 | [1] |
[1]Accumulated goodwill impairment as of March 31, 2023 and December 31, 2022 was approximately $27.6 billion. |
Goodwill - Summary of Changes_2
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - USD ($) $ in Billions | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Accumulated goodwill impairment | $ 27.6 | $ 27.6 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | Jun. 30, 2022 |
Europe Reporting Unit [Member] | |
Goodwill [Line Items] | |
Reporting unit percentage of fair value in excess of carrying amount | 9% |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Current maturities of long-term liabilities | $ 1,000 | $ 2,086 |
Total short-term debt | $ 1,023 | 2,109 |
Convertible senior debentures [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.25% | |
Maturity | 2026 | |
Convertible senior debentures | $ 23 | $ 23 |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Senior Notes and Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | ||
Debt Instrument [Line Items] | |||
Total senior notes | $ 20,761 | $ 21,266 | |
Less current maturities | (1,000) | (2,086) | |
Less debt issuance costs | [1] | (94) | (78) |
Total senior notes and loans | 19,668 | 19,103 | |
Other Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Total senior notes and loans | $ 1 | 1 | |
Senior notes EUR 1,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.13% | ||
Maturity | 2024 | ||
Total senior notes | $ 683 | 670 | |
Sustainability-linked senior notes EUR 1,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [2],[3] | 4.38% | |
Maturity | [2],[3] | 2030 | |
Total senior notes | [2],[3] | $ 1,635 | 1,606 |
Senior notes EUR 1,300 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [4] | 1.25% | |
Maturity | [4] | 2023 | |
Total senior notes | [4] | $ 0 | 633 |
Sustainability-linked senior notes EUR 1,100 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [3],[5] | 3.75% | |
Maturity | [3],[5] | 2027 | |
Total senior notes | [3],[5] | $ 1,199 | 1,177 |
Senior notes EUR 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [6] | 6% | |
Maturity | [6] | 2025 | |
Total senior notes | [6] | $ 449 | 1,070 |
Senior notes EUR 900 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [6] | 4.50% | |
Maturity | [6] | 2025 | |
Total senior notes | [6] | $ 541 | 963 |
Senior notes EUR 750 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.63% | ||
Maturity | 2028 | ||
Total senior notes | $ 814 | 800 | |
Senior notes EUR 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.88% | ||
Maturity | 2027 | ||
Total senior notes | $ 762 | 748 | |
Senior notes USD 3,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [6] | 3.15% | |
Maturity | [6] | 2026 | |
Total senior notes | [6] | $ 3,374 | 3,496 |
Senior notes USD 3,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [6] | 2.80% | |
Maturity | [6] | 2023 | |
Total senior notes | [6] | $ 1,000 | 1,453 |
Senior notes USD 2,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.10% | ||
Maturity | 2046 | ||
Total senior notes | $ 1,986 | 1,986 | |
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [6] | 6% | |
Maturity | [6] | 2024 | |
Total senior notes | [6] | $ 957 | 1,250 |
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.75% | ||
Maturity | 2028 | ||
Total senior notes | $ 1,250 | 1,250 | |
Senior notes USD 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [6] | 7.13% | |
Maturity | [6] | 2025 | |
Total senior notes | [6] | $ 427 | 1,000 |
Sustainability-linked senior notes USD 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [3],[5] | 4.75% | |
Maturity | [3],[5] | 2027 | |
Total senior notes | [3],[5] | $ 1,000 | 1,000 |
Sustainability-linked senior notes USD 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | [2],[3] | 5.13% | |
Maturity | [2],[3] | 2029 | |
Total senior notes | [2],[3] | $ 1,000 | 1,000 |
Senior notes USD 789 million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.15% | ||
Maturity | 2036 | ||
Total senior notes | $ 783 | 783 | |
Senior notes CHF 350 Million [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1% | ||
Maturity | 2025 | ||
Total senior notes | $ 384 | 382 | |
Sustainability-linked senior notes USD 500 million | |||
Debt Instrument [Line Items] | |||
Interest rate | [3],[7] | 8.13% | |
Maturity | [3],[7] | 2031 | |
Total senior notes | [3],[7] | $ 500 | 0 |
Sustainability-linked senior notes USD 600 million | |||
Debt Instrument [Line Items] | |||
Interest rate | [3],[8] | 7.88% | |
Maturity | [3],[8] | 2029 | |
Total senior notes | [3],[8] | $ 600 | 0 |
Sustainability-linked senior notes EUR 500 million | |||
Debt Instrument [Line Items] | |||
Interest rate | [3],[9] | 7.88% | |
Maturity | [3],[9] | 2031 | |
Total senior notes | [3],[9] | $ 545 | 0 |
Sustainability-linked senior notes EUR 800 million | |||
Debt Instrument [Line Items] | |||
Interest rate | [3],[10] | 7.38% | |
Maturity | [3],[10] | 2029 | |
Total senior notes | [3],[10] | $ 872 | $ 0 |
[1]Debt issuance costs as of March 31, 2023 include $26 million in connection with the issuance of the sustainability-linked senior notes in March 2023, partially offset by $6 million acceleration of issuance costs related to the cash tender offer.[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 8c.[4]In March 2023, Teva repaid $646 million of its 1.25% senior notes at maturity.[5]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.[6]In March 2023, Teva consummated a cash tender offer and extinguished $630 million aggregate principal amount of its 1,000 million euro 6% senior notes due in 2025; $432 million aggregate principal amount of its 900 million euro 4.5% senior notes due in 2025; $573 million aggregate principal amount of its $1,000 million 7.13% senior notes due in 2025; $453 million aggregate principal amount of its $3,000 million 2.8% senior notes due in 2023; $293 million aggregate principal amount of its $1,250 million 6% senior notes due in 2024 and $122 million aggregate principal amount of its $3,500 million 3.15% senior notes due in 2026.[7]In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $500 million bearing 8.13% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026.[8]In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $600 million bearing 7.88% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026.[9]In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 500 million euro bearing 7.88% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026.[10]In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 800 million euro bearing 7.38% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026. |
Debt Obligations - Schedule o_3
Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail) - 3 months ended Mar. 31, 2023 SFr in Millions | USD ($) | EUR (€) | USD ($) | CHF (SFr) |
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes repaid amount | $ 646,000,000 | |||
Senior notes maturity percentage | 1.25% | 1.25% | 1.25% | |
Senior notes EUR 1,500 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | € | € 1,500,000,000 | |||
Sustainability-linked senior notes EUR 1,500 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | € | 1,500,000,000 | |||
Senior notes EUR 1,300 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | € | 1,300,000,000 | |||
Senior notes EUR 900 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 900,000,000 | $ 900,000,000 | ||
Debt instrument principal amount of debt extinguished | $ 432,000,000 | |||
Senior notes EUR 750 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | € | 750,000,000 | |||
Senior notes EUR 700 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | € | 700,000,000 | |||
Senior notes EUR 1,000 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,000,000,000 | 1,000,000,000 | ||
Debt instrument principal amount of debt extinguished | 631,000,000 | |||
Senior notes USD 1,000 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,000,000,000 | |||
Debt instrument principal amount of debt extinguished | 574,000,000 | |||
Senior notes USD 3,500 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 3,500,000,000 | |||
Debt instrument principal amount of debt extinguished | 122,000,000 | |||
Senior notes USD 3,000 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 3,000,000,000 | |||
Debt instrument principal amount of debt extinguished | 454,000,000 | |||
Senior notes USD 2,000 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 2,000,000,000 | |||
Senior notes USD 1,250 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,250,000,000 | |||
Senior notes USD 1,250 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,250,000,000 | |||
Debt instrument principal amount of debt extinguished | $ 293,000,000 | |||
Senior notes USD 789 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 789,000,000 | |||
Senior notes CHF 350 Million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | SFr | SFr 350 | |||
Sustainability-linked senior notes EUR 1,100 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | € | 1,100,000,000 | |||
Sustainability-linked senior notes USD 1,000 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,000,000,000 | |||
Sustainability-linked senior notes USD 1,000 million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | 1,000,000,000 | |||
Sustainiability Senior Linked Notes Two Thousand Twenty Nine And Two Thousand And Thirty One One And Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument accumulated amortization | 6,000,000 | |||
Debt issuance costs gross | $ 26,000,000 | |||
Sustainability-linked senior notes EUR 800 million | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | € | € 800,000,000 | |||
Debt instrument month of maturity | 2029-09 | |||
Long term debt bearing fixed interest rate percentage | 7.38% | 7.38% | 7.38% | |
Sustainability-linked senior notes EUR 800 million | Maximum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.30% | |||
Sustainability-linked senior notes EUR 800 million | Minimum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.10% | |||
Sustainability-linked senior notes EUR 500 million | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | € | € 500,000,000 | |||
Debt instrument month of maturity | 2031-09 | |||
Long term debt bearing fixed interest rate percentage | 7.88% | 7.88% | 7.88% | |
Sustainability-linked senior notes EUR 500 million | Maximum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.30% | |||
Sustainability-linked senior notes EUR 500 million | Minimum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.10% | |||
Sustainability-linked senior notes USD 600 million | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 600,000,000 | |||
Debt instrument month of maturity | 2029-09 | |||
Long term debt bearing fixed interest rate percentage | 7.88% | 7.88% | 7.88% | |
Sustainability-linked senior notes USD 600 million | Maximum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.30% | |||
Sustainability-linked senior notes USD 600 million | Minimum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.10% | |||
Sustainability-linked senior notes USD 500 million | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 500,000,000 | |||
Debt instrument month of maturity | 2031-09 | |||
Long term debt bearing fixed interest rate percentage | 8.13% | 8.13% | 8.13% | |
Sustainability-linked senior notes USD 500 million | Maximum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.30% | |||
Sustainability-linked senior notes USD 500 million | Minimum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.10% | |||
Interest Rate Increase [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Maturity Date | May 09, 2026 | |||
Interest Rate Increase [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.375% | |||
Interest Rate Increase [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.125% | |||
One Time Premium Payment [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Maturity Date | May 09, 2026 | |||
One Time Premium Payment [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.45% | |||
One Time Premium Payment [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.15% |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||||||
Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||||||
Long term debt currency portion USD | 62% | ||||||||
Long term debt currency portion EUR | 36% | ||||||||
Long term debt currency portion CHF | 2% | ||||||||
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, 2023 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. | ||||||||
Long Term Debt Payable Under Revolving Credit Facility | $ 0 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,800 | ||||||||
Revolving Credit Facility [Member] | Amended Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage Ratio | 4.25 | ||||||||
Revolving Credit Facility [Member] | Amended Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage Ratio | 3.50 | 4.00 | 4.00 | 4.00 | 4.00 | 4.25 | 4.25 | ||
Unsecured Syndicated Revolving Credi tFacility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Maturity Date | Apr. 30, 2026 | ||||||||
Line of credit extension period | one-year |
Derivative instruments and he_3
Derivative instruments and hedging activities - Summary of Notional Amounts for Hedged Items (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Designated as Hedging Instrument [Member] | Cross Currency Swap Cash Flow Hedge [Member] | |||
Disclosure In Tabular Form Of Notional Amount Of Derivatives Designated As Hedging Instruments [Line Items] | |||
Cross-currency swap - cash flow hedge | [1] | $ 169 | $ 0 |
[1]On March 31, 2023, Teva entered into a cross currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen. |
Derivative instruments and he_4
Derivative instruments and hedging activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | $ 0 | $ 0 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | 0 | 0 |
Designated as Hedging Instrument [Member] | Cross Currency Swap Cash Flow Hedge [Member] | Other Non-current Assets [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | (63) | (101) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | 45 | 29 |
Not Designated as Hedging Instrument [Member] | Cross Currency Swap Cash Flow Hedge [Member] | Other Non-current Assets [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | $ 0 | $ 0 |
Derivative instruments and he_5
Derivative instruments and hedging activities - Summary Of Pre-tax (gains) losses from Derivatives Designated in Cash Flow Hedging Relationships (Detail) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Disclosure In Tabular Form Of Pretax Gain Loss Cash Flow Hedging Instruments [Line Items] | |||
Other comprehensive income (loss) | $ 127 | $ (57) | |
Cross Currency Swap Cash Flow Hedge [Member] | |||
Disclosure In Tabular Form Of Pretax Gain Loss Cash Flow Hedging Instruments [Line Items] | |||
Other comprehensive income (loss) | [1] | (2) | 0 |
Financial Expenses Net [Member] | |||
Disclosure In Tabular Form Of Pretax Gain Loss Cash Flow Hedging Instruments [Line Items] | |||
Financial expenses, net | 260 | 258 | |
Financial Expenses Net [Member] | Cross Currency Swap Cash Flow Hedge [Member] | |||
Disclosure In Tabular Form Of Pretax Gain Loss Cash Flow Hedging Instruments [Line Items] | |||
Financial expenses, net | [1] | $ 1 | $ 0 |
[1]On March 31, 2023, Teva entered into a cross currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen. |
Derivative instruments and he_6
Derivative instruments and hedging activities - Schedule of Other Derivatives Not Designated As Hedging Instruments Statements of Financial Performance And Financial Position Location (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Net Revenues [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ (3,661) | $ (3,661) | |
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] | 6 | (19) |
Financial expenses [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | 260 | 258 | |
Financial expenses [Member] | Not Designated as Hedging Instrument, Trading [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | [1] | (13) | (5) |
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, Swiss franc, Japanese yen, British pound, Russian ruble, Canadian dollar, Polish zloty and several other currencies to protect its projected operating results for 2023. 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 2023, the negative impact from these derivatives recognized under revenues was $6 million. In the first quarter of 2022, the positive impact from these derivatives recognized under revenues was $19 million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. Cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. |
Derivative instruments and he_7
Derivative instruments and hedging activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative [Line Items] | ||
Revenues other than USD | 50% | |
Teva other comprehensive loss | $ 493 | |
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | |
Forward starting interest rate swaps and treasury lock agreements losses | $ 11 | $ 7 |
Derivative, Gain on Derivative | $ 6 | $ 19 |
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest |
Legal Settlements and Loss Co_2
Legal Settlements and Loss Contingencies - Additional Information (Detail) € in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | |
Loss Contingencies [Line Items] | ||||
Legal settlements and loss contingencies, expense | $ 233 | $ 1,124 | ||
Accrued amount for legal settlements and loss contingencies | $ 4,299 | $ 4,186 | € 60.5 |
Commitments and Contingencies -
Commitments and Contingencies - Contingencies - Additional Information (Detail) € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 48 Months Ended | |||||||||||||||||
Dec. 31, 2022 USD ($) | Nov. 30, 2022 USD ($) | Nov. 09, 2022 USD ($) | Aug. 05, 2021 USD ($) | Jul. 21, 2021 USD ($) | Sep. 30, 2013 USD ($) | Apr. 30, 2013 USD ($) | Aug. 31, 2012 USD ($) | Dec. 31, 2010 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2017 USD ($) | Aug. 21, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Jul. 08, 2021 USD ($) | Aug. 31, 2019 USD ($) | Jul. 31, 2008 USD ($) | Feb. 28, 2005 USD ($) | |
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 | $ 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 | ||||||||||||||||||||
Litigation settlement amount | $ 4,250,000,000 | |||||||||||||||||||||
Annual Sales Of Sensipar | $ 1,400,000,000 | |||||||||||||||||||||
Litigation settlement amount awarded distribution period | 13 years | |||||||||||||||||||||
Annual sales of Copaxone | $ 373,000,000 | |||||||||||||||||||||
Generic modafinil, and imposed fines amount | $ 4,186,000,000 | 4,299,000,000 | $ 4,186,000,000 | € 60.5 | ||||||||||||||||||
Loss Contingency Accrual, Provision | $ 235,500,000 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Litigation Settlement Amount Distributable In Kind | $ 1,200,000,000 | |||||||||||||||||||||
Accrual for Environmental Loss Contingencies | $ 300,000 | |||||||||||||||||||||
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Liabilities, Current | |||||||||||||||||||||
Loss Contingencies On Environmental Laws Penalty | $ 1,400,000 | |||||||||||||||||||||
Percentage of the population of the participating states | 98% | |||||||||||||||||||||
Percentage of the litigating subdivisions have chosen to participate in Teva's nationwide settlement | 99% | |||||||||||||||||||||
Annual Sales Of Revlimid | $ 3,500,000,000 | |||||||||||||||||||||
Annual Sales At The Time Of Nuvigil Entered Into First Settlement Of With AN ANDA Filer | 300,000,000 | |||||||||||||||||||||
Annual Sales Of EpiPen | 600,000,000 | |||||||||||||||||||||
Loss Contingency Claims Dismissed Value Paid To Each State Proportional To Its Share Of National Population | $ 1,000,000 | |||||||||||||||||||||
Percentage Of Share Of The National Population | 1% | |||||||||||||||||||||
Percentgae of amount in cash settlement | 20% | |||||||||||||||||||||
Litigation Settlement Amount Distributable in cash | $ 240,000,000 | |||||||||||||||||||||
Loss Contingency, Damages Awarded, Value | $ 176,500,000 | |||||||||||||||||||||
Four Other Defendants Other Than Teva [Member] | ||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||
Loss contingency payment | $ 26,000,000,000 | |||||||||||||||||||||
Nationwide Settlement [Member] | Four Other Defendants Other Than Teva [Member] | ||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||
Litigation settlement amount awarded distribution period | 18 years | |||||||||||||||||||||
Europe [Member] | ||||||||||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||||||||||
Damage claimed | $ 50,000,000 | |||||||||||||||||||||
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 |
Commitments and contingencies_2
Commitments and contingencies - Schedule Of Material Details Of Individual Settlements (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) | ||
LOUISIANA | ||
Loss Contingencies [Line Items] | ||
Date | January 18, 2022 | |
Jurisdiction | Louisiana | |
Payment | $ 15 | [1] |
Payment Term | 18 years | |
Settlement Product | buprenorphine naloxone (generic Suboxone®) | |
Product WAC Value | $ 3 | |
Product WAC Term | 1 year | |
OKLAHOMA | ||
Loss Contingencies [Line Items] | ||
Date | June 7, 2019 | |
Jurisdiction | Oklahoma | |
Payment | $ 72.3 | [1] |
Payment Term | 1 year | |
TEXAS | ||
Loss Contingencies [Line Items] | ||
Date | February 4, 2022 | |
Jurisdiction | Texas | |
Payment | $ 131.5 | [1] |
Payment Term | 15 years | |
Settlement Product | naloxone hydrochloride (generic Narcan®) | |
Product WAC Value | $ 75 | |
Product WAC Term | 10 years | |
WEST VIRGINIA | ||
Loss Contingencies [Line Items] | ||
Date | September 19, 2022 | |
Jurisdiction | West Virginia | |
Payment | $ 75.4 | [1] |
Payment Term | 15 years | |
Settlement Product | naloxone hydrochloride (generic Narcan®) | |
Product WAC Value | $ 27 | |
Product WAC Term | 10 years | |
NEW YORK | ||
Loss Contingencies [Line Items] | ||
Date | November 3, 2022 | |
Jurisdiction | New York | |
Payment | $ 313.3 | [1],[2] |
Payment Term | 18 years | |
Settlement Product | N/A | |
FLORIDA | ||
Loss Contingencies [Line Items] | ||
Date | March 30, 2022 | |
Jurisdiction | Florida | |
Payment | $ 177.1 | [1] |
Payment Term | 15 years | |
Settlement Product | naloxone hydrochloride (generic Narcan®) | |
Product WAC Value | $ 84 | |
Product WAC Term | 10 years | |
RHODE ISLAND | ||
Loss Contingencies [Line Items] | ||
Date | March 21, 2022 | |
Jurisdiction | Rhode Island | |
Payment | $ 21 | [1] |
Payment Term | 13 years | |
Settlement Product | naloxone hydrochloride (generic Narcan®) and buprenorphine naloxone (generic Suboxone®) | |
Product WAC Value | $ 78.5 | |
Product WAC Term | 10 years | |
Cuyahoga County, OH [Member] | ||
Loss Contingencies [Line Items] | ||
Date | December 27, 2019 | |
Jurisdiction | Cuyahoga County, OH | |
Payment | $ 12.4 | [1] |
Payment Term | 2.5 years | |
Settlement Product | buprenorphine naloxone (generic Suboxone®) | |
Product WAC Value | $ 15.5 | |
Product WAC Term | 3 years | |
Summit County, OH [Member] | ||
Loss Contingencies [Line Items] | ||
Date | December 27, 2019 | |
Jurisdiction | Summit County, OH | |
Payment | $ 7.6 | [1] |
Payment Term | 2.5 years | |
Settlement Product | buprenorphine naloxone (generic Suboxone®) | |
Product WAC Value | $ 9.5 | |
Product WAC Term | 3 years | |
San Francisco [Member] | ||
Loss Contingencies [Line Items] | ||
Date | July 12, 2022 | |
Jurisdiction | San Francisco | |
Payment | $ 19.5 | [1] |
Payment Term | 13 years | |
Settlement Product | naloxone hydrochloride (generic Narcan®) | |
Product WAC Value | $ 20 | |
Product WAC Term | 10 years | |
Tribes [Member] | ||
Loss Contingencies [Line Items] | ||
Date | February 24, 2023 | |
Jurisdiction | Tribes | |
Payment | $ 108.3 | [1] |
Payment Term | 13 years | |
Settlement Product | naloxone hydrochloride (generic Narcan®) | |
Product WAC Value | $ 25 | |
Product WAC Term | 10 years | |
[1]Amounts exclude attorneys’ fees and costs, except New York.[2]Not including cash payment and attorneys’ fees allocated under the nationwide settlement. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax [Line Items] | |||
Expected impairment of income tax benefit | $ 128 | ||
Tax Expense | (19) | $ 2 | |
Pre tax income | $ (258) | $ (971) | |
Israel Tax Authority [Member] | |||
Income Tax [Line Items] | |||
Statutory tax rate in Israel | 23% | ||
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 | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Restructuring and Impairment Costs [Line Items] | ||||
Impairments of long-lived tangible assets | [1] | $ 10 | $ 16 | |
Contingent consideration | 20 | 33 | ||
Restructuring | 56 | 57 | ||
Other | 9 | 21 | ||
Total | $ 96 | $ 128 | ||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Consolidated operating income (loss) | |||
[1]Including impairments related to exit and disposal activities. |
Other assets impairments, res_4
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, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 56 | $ 57 |
Employee termination [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 23 | 52 |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 33 | $ 5 |
Other assets impairments, res_5
Other assets impairments, restructuring and other items - Summary of Restructuring Accruals (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | $ (119) | $ (138) | |
Provision | (56) | (57) | |
Utilization and other | [1] | 52 | 65 |
Ending balance | (123) | (130) | |
Employee termination costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | (112) | (131) | |
Provision | (23) | (52) | |
Utilization and other | [1] | 25 | 59 |
Ending balance | (110) | (124) | |
Other Exit and Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | (7) | (7) | |
Provision | (33) | (5) | |
Utilization and other | [1] | 27 | 6 |
Ending balance | $ (13) | $ (6) | |
[1]Includes adjustments for foreign currency translation. |
Other assets impairments, res_6
Other assets impairments, restructuring and other items - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring and Impairment Costs [Line Items] | ||
Impairments of property, plant and equipment | $ 10 | $ 16 |
Business combination contingent consideration arrangements change in amount of contingent consideration liability | 20 | 33 |
Restructuring costs | $ 56 | $ 57 |
Earnings (Loss) per Share - Add
Earnings (Loss) per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Earnings per share, Basic | $ (0.18) | $ (0.86) |
Earnings per share, Diluted | $ (0.18) | $ (0.86) |
Weighted average number of shares outstanding, diluted | 1,115,000,000 | 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, 2023 | Mar. 31, 2022 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | $ (2,838) | ||||
Ending Balance | (2,701) | ||||
Foreign Currency Translation Adjustments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (2,514) | $ (2,274) | |||
Other comprehensive income (loss) before reclassifications | 122 | (4) | |||
Net other comprehensive income (loss) before tax | 122 | (4) | |||
Corresponding income tax | 7 | (7) | |||
Net other comprehensive income (loss) after tax | 129 | [1] | (11) | [2] | |
Ending Balance | (2,385) | (2,285) | |||
Derivative Financial Instruments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (295) | (324) | |||
Amounts reclassified to the statements of income | 8 | 7 | |||
Net other comprehensive income (loss) before tax | 8 | 7 | |||
Net other comprehensive income (loss) after tax | 8 | [1] | 7 | [2] | |
Ending Balance | (287) | (317) | |||
Benefit Plans [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (28) | (85) | |||
Amounts reclassified to the statements of income | (1) | ||||
Net other comprehensive income (loss) before tax | (1) | ||||
Net other comprehensive income (loss) after tax | [1] | (1) | |||
Ending Balance | (29) | (85) | |||
AOCI Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (2,838) | (2,683) | |||
Other comprehensive income (loss) before reclassifications | 122 | (4) | |||
Amounts reclassified to the statements of income | 7 | 7 | |||
Net other comprehensive income (loss) before tax | 129 | 3 | |||
Corresponding income tax | 7 | (7) | |||
Net other comprehensive income (loss) after tax | 136 | [1] | (4) | [2] | |
Ending Balance | $ (2,701) | $ (2,687) | |||
[1]Amounts do not include a $9 million loss from foreign currency translation adjustments attributable to non-controlling interests.[2]Amounts do not include a $53 million loss from foreign currency translation adjustments attributable to non-controlling interests. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Standards Update 2016-01 [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation attributable to non-controlling interests | $ 9 | $ 53 |
Segments - Summary of Segment P
Segments - Summary of Segment Profit (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | $ 3,661 | $ 3,661 |
Gross profit | 1,582 | 1,740 |
R&D expenses | 234 | 225 |
S&M expenses | 546 | 584 |
G&A expenses | 296 | 296 |
Segment profit | 2 | (713) |
North America [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 1,766 | 1,737 |
Gross profit | 812 | 890 |
R&D expenses | 156 | 143 |
S&M expenses | 223 | 245 |
G&A expenses | 102 | 112 |
Other income | (1) | (11) |
Segment profit | 332 | 402 |
Europe [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 1,184 | 1,156 |
Gross profit | 655 | 694 |
R&D expenses | 53 | 58 |
S&M expenses | 187 | 196 |
G&A expenses | 70 | 59 |
Segment profit | 345 | 381 |
International Markets [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 492 | 492 |
Gross profit | 262 | 286 |
R&D expenses | 20 | 20 |
S&M expenses | 98 | 97 |
G&A expenses | 31 | 29 |
Other income | (1) | (40) |
Segment profit | $ 114 | $ 179 |
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, 2023 | Mar. 31, 2022 | |
Amounts allocated to segments: | ||
Segments profit | $ 2 | $ (713) |
Amounts not allocated to segments: | ||
Amortization | 165 | 200 |
Other asset impairments, restructuring and other items | 96 | 128 |
Intangible asset impairments | 178 | 149 |
Legal settlements and loss contingencies | 233 | 1,124 |
Other unallocated amounts | 112 | 127 |
Consolidated operating income (loss) | 2 | (713) |
Financial expenses, net | 260 | 258 |
Income (loss) before income taxes | (258) | (971) |
North America [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 332 | 402 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 332 | 402 |
Europe [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 345 | 381 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 345 | 381 |
International Markets [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 114 | 179 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 114 | 179 |
Corporate Segment [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 791 | 962 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | 791 | 962 |
Other Segments [Member] | ||
Amounts allocated to segments: | ||
Segments profit | (6) | 52 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | (6) | 52 |
Segments and Other Activities [Member] | ||
Amounts allocated to segments: | ||
Segments profit | 785 | 1,013 |
Amounts not allocated to segments: | ||
Consolidated operating income (loss) | $ 785 | $ 1,013 |
Segments - Schedule of Revenues
Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Product Information [Line Items] | ||
Revenues | $ 3,661 | $ 3,661 |
North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 1,766 | 1,737 |
Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 1,184 | 1,156 |
International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 492 | 492 |
Generic products [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 824 | 899 |
Generic products [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 932 | 876 |
Generic products [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 400 | 388 |
AJOVY [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 49 | 36 |
AJOVY [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 36 | 30 |
AJOVY [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 10 | 6 |
AUSTEDO [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 170 | 154 |
BENDEKA® and TREANDA® [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 63 | 82 |
COPAXONE [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 76 | 86 |
COPAXONE [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 59 | 72 |
COPAXONE [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 12 | 10 |
Anda [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 424 | 342 |
Respiratory Product [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 68 | 71 |
Other [Member] | North America [Member] | ||
Product Information [Line Items] | ||
Revenues | 160 | 139 |
Other [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 89 | 107 |
Other [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | $ 70 | $ 88 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 Segment | |
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, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash | $ 33 | $ 33 | |
Contingent consideration | [1] | (148) | (153) |
Total | $ 2,027 | $ 2,624 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current | |
Asset Derivatives - Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | $ 45 | $ 29 | |
Liabilities Derivatives Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | (63) | (101) | |
Money Markets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 702 | 1,222 | |
Cash, Deposits and Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 1,441 | 1,579 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 10 | 9 | |
Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 7 | 6 | |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash | 33 | 33 | |
Total | 2,192 | 2,848 | |
Level 1 [Member] | Money Markets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 702 | 1,222 | |
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 | 1,441 | 1,579 | |
Level 1 [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 10 | 9 | |
Level 1 [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 6 | 5 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | (18) | (73) | |
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 45 | 29 | |
Level 2 [Member] | Liabilities Derivatives Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | (101) | ||
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | [1] | (148) | (153) |
Total | (147) | (152) | |
Level 3 [Member] | Bifurcated embedded derivatives [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 0 | 0 | |
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, 2023 |
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 | 11 |
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 | 8.5 |
Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Business combination, contingent consideration, liability, measurement input | 8.95 |
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, 2023 | Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value at the beginning of the period | $ (152) | $ (175) |
Bifurcated embedded derivatives | 0 | 0 |
Fair value at the end of the period | (148) | (196) |
Nove Tide Acquisition [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Redemption of debt securities | (11) | |
Actavis Generics [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Actavis Generics transaction | (9) | (31) |
Settlement of contingent consideration | 2 | |
Eagle Transaction [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjustments to provisions for contingent consideration | (11) | (2) |
Settlement of contingent consideration | 21 | $ 23 |
Novetide Transaction [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjustments to provisions for contingent consideration | (1) | |
Settlement of contingent consideration | $ 2 |
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% |
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, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 19,020 | $ 18,769 |
Senior Notes And Sustainability Linked Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 18,007 | 16,694 |
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 | $ 1,013 | $ 2,075 |