Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Fiscal Year Focus | 2024 |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2024 |
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 | 1,132,640,597 |
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 Address, Address Line One | 124 Dvora HaNevi’a St |
Entity Tax Identification Number | 00-0000000 |
Entity Address, City or Town | Tel Aviv |
Entity Address, Postal Zip Code | 6944020 |
Entity Address, Country | IL |
City Area Code | +972 (3) |
Local Phone Number | 914-8213 |
Entity Filer Category | Large Accelerated Filer |
Smaller Reporting Company | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 2,991 | $ 3,226 | |
Accounts receivables, net of allowance for credit losses of $98 million and $95 million as of March 31, 2024 and December 31, 2023, respectively | 3,456 | 3,408 | |
Inventories | 3,949 | 4,021 | |
Prepaid expenses | 1,336 | 1,255 | |
Other current assets | 495 | 504 | |
Assets held for sale | 70 | 70 | |
Total current assets | 12,297 | 12,485 | |
Deferred income taxes | 1,960 | 1,812 | |
Other non-current assets | 470 | 470 | |
Property, plant and equipment, net | 5,618 | 5,750 | |
Operating lease right-of-use assets, net | 364 | 397 | |
Identifiable intangible assets, net | 5,056 | 5,387 | |
Goodwill | 17,007 | [1] | 17,177 |
Total assets | 42,773 | 43,479 | |
Current liabilities: | |||
Short-term debt | 3,060 | 1,672 | |
Sales reserves and allowances | 3,594 | 3,535 | |
Accounts payables | 2,439 | 2,602 | |
Employee-related obligations | 492 | 611 | |
Accrued expenses | 2,784 | 2,771 | |
Other current liabilities | 1,161 | 1,044 | |
Liabilities held for sale | 262 | 13 | |
Total current liabilities | 13,792 | 12,247 | |
Long-term liabilities: | |||
Deferred income taxes | 569 | 606 | |
Other taxes and long-term liabilities | 3,991 | 4,019 | |
Senior notes and loans | 16,584 | 18,161 | |
Operating lease liabilities | 294 | 320 | |
Total long-term liabilities | 21,438 | 23,106 | |
Commitments and contingencies, see note 10 | |||
Total liabilities | 35,230 | 35,353 | |
Teva shareholders' equity: | |||
Ordinary shares of NIS 0.10 par value per share; March 31, 2024 and December 31, 2023: authorized 2,495 million shares; issued 1,238 million shares and 1,227 million shares, respectively. | 58 | 57 | |
Additional paid-in capital | 27,796 | 27,807 | |
Accumulated deficit | (13,673) | (13,534) | |
Accumulated other comprehensive loss | (2,775) | (2,697) | |
Treasury shares as of March 31, 2024 and December 31, 2023: 106 million ordinary shares | (4,128) | (4,128) | |
Stockholders' equity attributable to Teva shareholders | 7,278 | 7,506 | |
Non-controlling interests | 265 | 620 | |
Total equity | 7,543 | 8,126 | |
Total liabilities and equity | $ 42,773 | $ 43,479 | |
[1]Cumulative goodwill impairment as of March 31, 2024 and December 31, 2023 was approximately $28.3 billion. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) shares in Millions, $ in Millions | Mar. 31, 2024 USD ($) shares | Mar. 31, 2024 ₪ / shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2023 ₪ / shares |
Allowance for credit losses | $ | $ 98 | $ 95 | ||
Common stock, par or stated value per share | ₪ / shares | ₪ 0.1 | ₪ 0.1 | ||
Ordinary shares, authorized | 2,495 | 2,495 | ||
Ordinary shares, issued | 1,238 | 1,227 | ||
Treasury shares | 106 | 106 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Net revenues | $ 3,819 | $ 3,661 | |
Cost of sales | 2,048 | 2,079 | |
Gross profit | 1,771 | 1,582 | |
Research and development expenses | 242 | 234 | |
Selling and marketing expenses | 608 | 546 | |
General and administrative expenses | 278 | 296 | |
Intangible assets impairments | 80 | 178 | |
Other assets impairments, restructuring and other items | [1] | 673 | 110 |
Legal settlements and loss contingencies | 106 | 233 | |
Other loss (income) | 1 | (2) | |
Operating income (loss) | [1] | (218) | (13) |
Financial expenses, net | 250 | 260 | |
Income (loss) before income taxes | [1] | (467) | (272) |
Income taxes (benefit) | (52) | (19) | |
Share in (profits) losses of associated companies, net | 4 | ||
Net income (loss) | (419) | (253) | |
Net income (loss) attributable to non-controlling interests | (280) | (33) | |
Net income (loss) attributable to Teva | $ (139) | $ (220) | |
Earnings (loss) per share attributable to ordinary shareholders: | |||
Basic | $ (0.12) | $ (0.2) | |
Diluted | $ (0.12) | $ (0.2) | |
Weighted average number of shares (in millions): | |||
Basic | 1,123 | 1,115 | |
Diluted | 1,123 | 1,115 | |
[1]The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1c. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net income (loss) | $ (419) | $ (253) |
Other comprehensive income (loss), net of tax: | ||
Currency translation adjustment | (123) | 120 |
Unrealized gain (loss) from derivative financial instruments, net | 7 | 8 |
Unrealized loss on defined benefit plans | (1) | (1) |
Total other comprehensive income (loss) | (117) | 127 |
Total comprehensive income (loss) | (536) | (126) |
Comprehensive income (loss) attributable to non-controlling interests | (322) | (42) |
Comprehensive income (loss) attributable to Teva | $ (214) | $ (84) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income loss from equity method investments | $ (4) | |
Maximum [Member] | ||
Income loss from equity method investments | $ 0.5 |
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, 2022 | $ 8,598 | $ 57 | $ 27,688 | $ (12,975) | $ (2,838) | $ (4,128) | $ 7,804 | $ 794 |
Beginning balance, shares at Dec. 31, 2022 | 1,217 | |||||||
Net Income (loss) | (253) | (220) | (220) | (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 | 8,504 | $ 57 | 27,719 | (13,194) | (2,701) | (4,128) | 7,752 | 751 |
Ending balance, shares at Mar. 31, 2023 | 1,226 | |||||||
Beginning balance at Dec. 31, 2023 | 8,126 | $ 57 | 27,807 | (13,534) | (2,697) | (4,128) | 7,506 | 620 |
Beginning balance, shares at Dec. 31, 2023 | 1,227 | |||||||
Net Income (loss) | (419) | (139) | (139) | (280) | ||||
Other comprehensive income (loss) | (117) | (75) | (75) | (42) | ||||
Issuance of Shares, value | 1 | $ 1 | 1 | |||||
Issuance of Shares, shares | 11 | |||||||
Stock-based compensation expense | 28 | 28 | 28 | |||||
Proceeds from exercise of options | 6 | 6 | 6 | |||||
Dividend to non-controlling interests | (18) | (18) | ||||||
Purchase of shares from non-controlling interests | (64) | (45) | (3) | (48) | (16) | |||
Ending balance at Mar. 31, 2024 | $ 7,543 | $ 58 | $ 27,796 | $ (13,673) | $ (2,775) | $ (4,128) | $ 7,278 | $ 265 |
Ending balance, shares at Mar. 31, 2024 | 1,238 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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, 2024 | Mar. 31, 2023 | |
Operating activities: | ||
Net income (loss) | $ (419) | $ (253) |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||
Depreciation and amortization | 272 | 304 |
Impairment of goodwill, long-lived assets and assets held for sale | 679 | 189 |
Net change in operating assets and liabilities | (497) | (349) |
Deferred income taxes – net and uncertain tax positions | (189) | (106) |
Stock-based compensation | 28 | 32 |
Other items | 2 | 34 |
Net loss (gain) from investments and from sale of long lived assets | 0 | 4 |
Net cash provided by (used in) operating activities | (124) | (145) |
Investing activities: | ||
Beneficial interest collected in exchange for securitized trade receivables | 295 | 323 |
Purchases of property, plant and equipment and intangible assets | (124) | (139) |
Proceeds from sale of business and long lived assets | 0 | 2 |
Acquisition of businesses, net of cash acquired | (15) | 0 |
Purchases of investments and other assets | (12) | (4) |
Other investing activities | 0 | (1) |
Net cash provided by (used in) investing activities | 144 | 181 |
Financing activities: | ||
Purchase of shares from non-controlling interests | (64) | 0 |
Dividends paid to non-controlling interests | (78) | 0 |
Repayment of senior notes and loans and other long term liabilities | 0 | (3,152) |
Proceeds from senior notes, net of issuance costs | 0 | 2,451 |
Other financing activities | (9) | (5) |
Net cash provided by (used in) financing activities | (151) | (706) |
Translation adjustment on cash and cash equivalents | (104) | 12 |
Net change in cash, cash equivalents and restricted cash | (236) | (658) |
Balance of cash, cash equivalents and restricted cash at beginning of period | 3,227 | 2,834 |
Balance of cash, cash equivalents and restricted cash at end of period | 2,991 | 2,176 |
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: | ||
Cash and cash equivalents | 2,991 | 2,143 |
Restricted cash included in other current assets | 0 | 33 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 2,991 | 2,176 |
Non-cash financing and investing activities: | ||
Beneficial interest obtained in exchange for securitized accounts receivables | $ 312 | $ 334 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (139) | $ (220) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 impacted by higher costs and the ability to pass on such higher costs to customers, which is highly uncertain. Government actions taken to address macroeconomic developments, as well as their economic impact on Teva’s third-party manufacturers and suppliers, customers and markets, could also impact such estimates and may change in future periods. In February 2022, Russia launched an invasion of Ukraine. As of the date of these consolidated financial statements, sustained conflict and disruption in the region is ongoing. Russia and Ukraine markets are included in Teva’s International Markets segment results. Teva has no manufacturing or R&D facilities in these markets. During the three months ended March 31, 2024, the impact of this conflict on Teva’s results of operation and financial condition continues to be immaterial. In October 2023, Israel was attacked by a terrorist organization and entered a state of war. As of the date of these consolidated financial statements, the war in Israel is ongoing and continues to evolve. Israel is included in Teva’s International Markets segment results. Teva’s global headquarters and several manufacturing and R&D facilities are located in Israel. Currently, such activities in Israel remain largely unaffected. Teva continues to maintain contingency plans with backup production locations for key products. During the three months ended March 31, 2024, the impact of this war on Teva’s results of operations and financial condition is immaterial, but such impact may increase, which could be material, as a result of the continuation, escalation or expansion of such war. Teva’s results of operations for the three months ended March 31, 2024 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 None. Recently issued accounting pronouncements, not yet adopted In December 2023, the FASB issued ASU 2023-09 2023-09 2023-09 In November 2023, the FASB issued ASU 2023-07 In October 2023, the FASB issued ASU 2023-06 S-X S-K 2023-06 c. Revision of Previously Reported Consolidated Financial Statements In connection with the preparation of the consolidated financial statements as of and for the year ended December 31, 2023, the Company identified errors in a single contingent consideration liability and related expenses in connection with estimated future royalty payments, along with corresponding deferred tax adjustments, that aggregated into an understatement of the contingent consideration liability of approximately $132 million, of which $98 million related to 2022 and $34 million related to 2023. These errors resulted from the exclusion of royalty payments that should have been included in the fair value re-measurement year-to-date The Company evaluated the errors, individually and in the aggregate, considering both qualitative and quantitative factors, and concluded that these errors did not have a material impact on any of the prior periods stated above. However, the aggregate amount of the prior period errors in 2022, would have been material to the consolidated financial statements for fiscal year 2023. Therefore, the Company has revised the prior periods impacted for these errors. The tables below present the impact of the revision on the line items within the Company’s consolidated financial statements for the relevant period: Three months ended March 31, 2023 U.S $ in millions (except per share amounts) (Unaudited) As previously reported Adjustment As revised Other asset impairments, restructuring and other items $ 96 15 110 Operating income (loss) 2 (15 ) (13 ) Income (loss) before income taxes (258 ) (15 ) (272 ) Income taxes (benefit) (19 ) § (19 ) Net income (loss) (238 ) (15 ) (253 ) Net income (loss) attributable to Teva (205 ) (15 ) (220 ) Earnings (loss) per share attributable to ordinary shareholders: Basic $ (0.18 ) (0.02 ) (0.20 ) Diluted $ (0.18 ) (0.02 ) (0.20 ) § Represents an amount less than $0.5 million. |
Certain transactions
Certain transactions | 3 Months Ended |
Mar. 31, 2024 | |
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. mAbxience In April 2024, Teva announced it entered into a strategic licensing agreement with mAbxience for a biosimilar candidate currently in development for the treatment of multiple oncology indications. Under the terms of the licensing agreement, mAbxience will develop and produce the biosimilar product and Teva will lead the regulatory processes and commercialization in multiple global markets, including Europe and the U.S. In April 2024, Teva paid mAbxience an upfront payment of $10 million, which will be recorded as R&D expenses in the second quarter of 2024. mAbxience may be eligible for future development, regulatory and commercial milestone payments, in an aggregate total amount of up to $142 million. Launch Therapeutics and Abingworth On March 28, 2024, Teva and Launch Therapeutics, Inc. (“Launch Therapeutics”) entered into a clinical collaboration agreement to further accelerate the clinical research program of Teva’s ICS-SABA (TEV-‘248). ICS-SABA (TEV-’248) Under the development funding agreement, Abingworth will provide Teva up to million to fund ongoing development costs for ICS-SABA (TEV-‘248). ICS-SABA (TEV-‘248) Biolojic Design On November 26, 2023, Teva entered into a license agreement with Biolojic Design Ltd. (“Biolojic”), pursuant to which Teva received exclusive rights to develop, manufacture and commercialize worldwide a BD9 multibody for the potential treatment of Atopic Dermatitis and Asthma. In exchange, Teva agreed to pay an upfront payment in an amount of million, which was recorded as an R&D expense in the fourth quarter of 2023 and was paid in January 2024. Biolojic may be eligible to receive additional development and commercial milestones payments of up to approximately million, over the next several years, based on the achievement of certain pre-clinical, Royalty Pharma On November 9, 2023, Teva entered into a funding agreement with Royalty Pharma plc. (“Royalty Pharma”) to further accelerate the clinical research program for Teva’s olanzapine LAI (TEV-’749). (TEV-‘749), (TEV-’749) Sanofi On October 3, 2023, Teva entered into an exclusive collaboration with Sanofi to co-develop co- (TEV-’574) 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, emrusolmin (TEV-’286) (TEV-’287). (TEV-’286) (TEV-’286) 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 ® ® Teva made upfront and milestone payments in an aggregate amount million in 2020, 2021 and 2023. Additionally, Teva recognized million of a milestone payment as R&D expenses in the first quarter of 2024, which was paid in April 2024. Additional development and commercial milestone payments of up to approximately million, as well as royalty payments, and milestone payments related to the amendment of the collaboration agreement entered into in July 2023, may be payable by Teva over the next few years. Teva and Alvotech will share revenue from the commercialization of these biosimilars. The amendment of the collaboration agreement entered into in July 2023 includes increased involvement by Teva regarding manufacturing and quality at Alvotech’s manufacturing facility. In connection with Teva’s amendment of its strategic partnership with Alvotech, on September 29, 2023, Alvotech issued $40 million of subordinated convertible bonds to Teva. On February 24, 2024, Alvotech and Teva announced that the FDA approved SIMLANDI ® ® With respect to the proposed biosimilar to Stelara ® On April 16, 2024, Alvotech and Teva announced that the FDA approved SELARSDI TM (ustekinumab-aekn) injection for subcutaneous use, as a biosimilar to Stelara ® 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 million in 2017. During the second quarter of 2022, Takeda initiated its Phase 2 study of modakafusp alfa (formerly TAK-573 or TEV ’573) and as a result paid Teva a milestone payment 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 risperidone LAI (formerly known as TV-46000). ® The second selected product candidate is olanzapine LAI (TEV-’749) (TEV-’749). Assets and Liabilities Held for Sale: General Assets and liabilities held for sale as of March 31, 2024 and December 2023, included certain businesses in Teva’s International Markets segment that are expected to be sold within the next year. In connection with the held for sale classification, in the first quarter of 2024, Teva recorded expenses of million due to an expected loss upon sale, including million of expected loss from reclassification of currency translation adjustments to the statements of income upon sale, in other assets impairments, restructuring and other items. See note 12. The table below summarizes all of Teva’s assets and liabilities included as held for sale as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 (U.S. $ in millions) Inventories 169 12 Accounts receivables 146 — Goodwill 78 30 Identifiable intangible assets, net 63 — Property, plant and equipment, net 13 5 Other current and non-current 65 23 Expected loss on sale* (464 ) — Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 70 $ 70 Accounts payables (92 ) — Other liabilities (57 ) (13 ) Expected loss on sale* (113 ) — Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets $ (262 ) $ (13 ) * Includes an expected loss from reclassification of currency translation adjustments to the consolidated statements of income (loss) upon sale |
Revenue from contracts with cus
Revenue from contracts with customers | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 United States Europe International Other activities Total (U.S.$ in millions) Sale of goods 1,321 1,252 566 128 3,267 Licensing arrangements 23 11 5 § 40 Distribution 381 § 9 — 391 Other § 9 16 97 121 $ 1,725 $ 1,272 $ 597 $ 225 $ 3,819 § Represents an amount less than $ 0.5 Three months ended March 31, 2023 United States Europe International Other activities Total (U.S.$ in millions) Sale of goods 1,230 1,176 553 131 3,090 Licensing arrangements 22 14 6 1 43 Distribution 424 § 10 — 434 Other § (6 ) 13 87 95 $ 1,677 $ 1,184 $ 581 $ 219 $ 3,661 § Represents an amount less than $ 0.5 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 66% of the Company’s total SR&A as of March 31, 2024, with the remaining balance primarily related to customers in Canada and Germany. The changes in SR&A for third-party sales for the three months ended March 31, 2024 and 2023 were as follows: Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total reserves Total (U.S.$ in millions) Balance at January 1, 2024 $ 61 $ 1,603 $ 540 $ 859 $ 436 $ 97 $ 3,535 $ 3,596 Provisions related to sales made in current year period 93 1,118 181 1,942 73 40 3,354 3,447 Provisions related to sales made in prior periods — 10 20 (11 ) (6 ) (1 ) 12 12 Credits and payments (87 ) (1,086 ) (171 ) (1,935 ) (67 ) (18 ) (3,277 ) (3,364 ) Translation differences — (17 ) (3 ) (5 ) (3 ) (2 ) (30 ) (30 ) Balance at March 31, 2024 $ 67 $ 1,628 $ 567 $ 850 $ 433 $ 116 $ 3,594 $ 3,661 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 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventories | NOTE 4 – Inventories: Inventories, net of reserves, consisted of the following: March 31, December 31, 2024 2023 (U.S. $ in millions) Finished products $ 2,238 $ 2,346 Raw and packaging materials 1,014 993 Products in process 508 500 Materials in transit and payments on account 189 183 $ 3,949 $ 4,021 |
Identifiable Intangible Assets
Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Identifiable Intangible Assets | NOTE 5 – Identifiable intangible assets: Identifiable intangible assets consisted of the following: Gross carrying amount Accumulated amortization Net carrying amount March 31, December 31, March 31, December 31, March 31, December 31, 2024 2023 2024 2023 2024 2023 (U.S. $ in millions) Product rights $ 16,261 $ 17,981 $ 11,846 $ 13,274 $ 4,415 $ 4,707 Trade names 576 583 276 269 300 314 In process research and development 341 366 — — 341 366 Total $ 17,178 $ 18,930 $ 12,122 $ 13,543 $ 5,056 $ 5,387 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 $152 million and $165 million in the three months ended March 31, 2024 and 2023, 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, 2024 and 2023 were $80 million and $178 million, respectively. Impairments in the first quarter of 2024 consisted of: (a) Identifiable product rights of $57 million , (b) IPR&D assets of $23 million, mainly related to generic pipeline products resulting from development progress and changes in other key valuation indications mainly in the U.S. (e.g., market size, competition assumptions, legal landscape and launch date). 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). The fair value measurement of the impaired intangible assets in the first quarter of 2024 is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The discount rate applied ranged from 8.5% to 10%. A probability of success factor ranging from 20% to 90% was used in the fair value calculation to reflect inherent regulatory and commercial risk of IPR&D. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill | NOTE 6 – Goodwill: Changes in the carrying amount of goodwill for the period ended March 31, 2024 were as follows: North United Europe International Other Total Teva’s Medis (U.S. $ in millions) Balance as of December 31, 2023 (1) $ 6,459 $ — $ 8,466 $ 675 $ 1,313 $ 265 $ 17,177 Goodwill allocation related to the shift of Canada to International Markets (6,459 ) 5,813 — 646 — — — Balance as of January 1, 2024 $ — $ 5,813 $ 8,466 $ 1,321 $ 1,313 $ 265 $ 17,177 Other changes during the period: Goodwill reclassified as assets held for sale — — — (48 ) — — (48 ) Translation differences — — (104 ) 6 (14 ) (10 ) (122 ) Balance as of March 31, 2024 (1) $ — $ 5,813 $ 8,362 $ 1,279 $ 1,299 $ 255 $ 17,007 (1) Cumulative goodwill impairment as of March 31, 2024 and December 31, 2023 was approximately $28.3 billion. Teva operates its business through three reporting segments: United States, 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 Developments As further discussed in note 15, as of January 1, 2024, Canada is reported as part of Teva’s International Markets segment and not as part of Teva’s North America segment, which has been renamed as Teva’s United States segment. As a result, Teva aligned its segment reporting and its reporting units in accordance with this change, and reallocated its goodwill to the adjusted reporting units using a relative fair value allocation. In conjunction with the goodwill reallocation, Teva performed a goodwill impairment test for the balances in its adjusted United States and International Markets reporting units and concluded that the fair value of each reporting unit was in excess of its carrying value. If business conditions or expectations (such as exchange rates, growth rates or discount rates) were to adversely change, it may be necessary to record impairment charges to Teva’s International Markets reporting unit in the future. During the first quarter of 2024, 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, 2024. Management concluded that no triggering event had occurred and, therefore, no quantitative assessment was performed. Following the quantitative assessment performed in relation to Teva’s API reporting unit in the fourth quarter of 2023, the excess of its estimated fair value over its estimated carrying amount was negligible. Additionally, as part of the quantitative analysis Teva conducted as part of its annual goodwill impairment test in the second quarter of 2023, it concluded that the estimated fair value of Teva’s Europe reporting unit exceeded its estimated carrying amount by 3%. |
Debt obligations
Debt obligations | 3 Months Ended |
Mar. 31, 2024 | |
Debt obligations | NOTE 7 – Debt obligations: a. Short-term debt: March 31, December 31, Interest rate as of March 31, Maturity 2024 2023 (U.S. $ in millions) Convertible senior debentures 0.25 % 2026 23 23 Current maturities of long-term liabilities 3,037 1,649 Total short-term debt $ 3,060 $ 1,672 Convertible senior debentures The principal amount of Teva’s 0.25% convertible senior debentures due in million as of March 31, 2024 and as of December 31, 2023. 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 Maturity March 31, 2024 December 31, (U.S. $ in millions) Senior notes EUR 1,500 million 1.13 % 2024 676 693 Sustainability-linked senior notes EUR 1,500 million (6)(*) 4.38 % 2030 1,620 1,656 Sustainability-linked senior notes EUR 1,100 million (7)(*) 3.75 % 2027 1,188 1,215 Senior notes EUR 1,000 million (5) 6.00 % 2025 443 453 Senior notes EUR 900 million (5) 4.50 % 2025 535 547 Sustainability-linked senior notes EUR 800 million (1)(*) 7.38 % 2029 864 884 Senior notes EUR 750 million 1.63 % 2028 806 826 Senior notes EUR 700 million 1.88 % 2027 757 771 Sustainability-linked senior notes EUR 500 million (2)(*) 7.88 % 2031 540 552 Senior notes USD 3,500 million (5) 3.15 % 2026 3,374 3,374 Senior notes USD 2,000 million 4.10 % 2046 1,986 1,986 Senior notes USD 1,250 million (5)(8) 6.00 % 2024 956 956 Senior notes USD 1,250 million 6.75 % 2028 1,250 1,250 Senior notes USD 1,000 million (5) 7.13 % 2025 427 427 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 600 600 Sustainability-linked senior notes USD 500 million (4)(*) 8.13 % 2031 500 500 Senior notes CHF 350 million 1.00 % 2025 390 416 Total senior notes 19,695 19,889 Other long-term debt — 1 Less current maturities (3,037 ) (1,649 ) Less debt issuance costs (74 ) (80 ) Total senior notes and loans $ 16,584 $ 18,161 (1) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 800 7.38 0.100 0.300 (2) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 500 7.88 0.100 0.300 (3) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $ 600 7.88 0.100 0.300 (4) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $ 500 8.13 0.100 0.300 (5) In March 2023, Teva consummated a cash tender offer and extinguished $ 631 1,000 6 432 900 4.5 2025 574 454 (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) In April 2024, Teva repaid $956 million of its 6% 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, 2024 was effectively denominated in the following currencies: 60% in U.S. dollars, 38% 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, as amended on February 6, 2023 and on May 3, 2024 (“RCF”). The RCF had an initial maturity date of April 2026 one-year On May 3, 2024, the terms of the RCF were amended to update the Company’s maximum permitted leverage ratio under the RCF for certain periods. Under the terms of the RCF, as amended , Under the RCF, as amended, the applicable margin used to calculate the interest rate under the RCF is linked to one sustainability performance target, the number of new regulatory submissions in low and middle-income countries. Proceeds from borrowings under the RCF can be used for general corporate purposes, including repaying existing debt. As of March 31, 2024, and as of the date of this Quarterly Report on Form 10-Q, 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, 2024 | |
Derivative Instruments and Hedging Activities | NOTE 8 – Derivative instruments and hedging activities: a. Foreign exchange risk management: In the first three months of 2024, approximately 50% of Teva’s revenues were denominated in currencies other than the U.S. dollar. As a result, Teva is subject to significant foreign currency risks. The Company enters into forward exchange contracts 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 and convertible debentures that bear fixed or variable interest rates, as well as a syndicated sustainability-linked revolving credit facility and securitization programs that bear a 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. As of March 31, 2024, all outstanding senior notes, sustainability-linked senior notes and convertible debentures bear a fixed interest rate. 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, 2024 2023 (U.S. $ in millions) Cross-currency swap - cash flow hedge (1) $ — $ 169 The following table summarizes the classification and fair values of derivative instruments: Fair value Designated as hedging instruments Not designated as hedging instruments March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Reported under (U.S. $ in millions) (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ — $ — $ 36 $ 38 Other non-current Cross-currency swap-cash flow hedge (1) — 8 — — Liability derivatives: Other current liabilities: Option and forward contracts — — (35 ) (39 ) The table below provides information regarding the location and amount of pre-tax Financial expenses, net Other comprehensive Three months ended, Three months ended, March 31, 2024 March 31, March 31, 2024 March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 250 $ 260 $ (117 ) $ 127 Cross-currency swaps - cash flow hedge (1) (8 ) 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, 2024 March 31, March 31, March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 250 $ 260 $ (3,819 ) $ (3,661 ) Option and forward contracts (2) (10 ) (13 ) — — Option and forward contracts economic hedge (3) — — (13 ) 6 (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. The agreement was terminated in the first quarter of 2024 and resulted in cash proceeds of $16 million. (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 some other currencies to protect its projected operating results for 2024. 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 2024, the positive impact from these derivatives recognized under revenues was $13 million. In the first quarter of 2023, the negative 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 of $493 million, which was recorded as other comprehensive income (loss) and is amortized under financial expenses, net over the life of the debt. With respect to these forward-starting interest rate swaps and treasury lock agreements, losses of $7 million and $11 million were recognized under financial expenses, net, for each of the three months ended March 31, 2024 and 2023, respectively. f. Securitization: U.S. securitization program On November 7, 2022, Teva and a bankruptcy-remote special purpose vehicle (“SPV”) entered into an accounts receivable securitization facility (“AR Facility”) with PNC Bank, National Association (“PNC”) with a three-year term. The AR Facility provided for purchases of accounts receivable by PNC in an amount of up to $1 billion through November 2023, and up to $500 million from November 2023 through November 2025. On June 30, 2023, the AR Facility agreement was amended to include an additional receivables purchaser under the agreement, in an amount of up to $250 million through November 2025. As a result, the total commitment of PNC was reduced to an amount of up to $750 million, effective June 30, 2023. Under the terms of the AR facility agreement, in November 2023, the total commitment of PNC was further reduced to an amount of up to $500 million through November 2025. On November 7, 2023, the SPV amended the agreement and increased the commitment amount to a maximum of $1 billion by including an additional receivables purchaser in an amount of up to $250 million through March 2024, which was then reduced by $125 million through November 2025. As a result, the commitment amount was reduced to a maximum of $875 million without any additional purchasers participating in the AR facility. Pledged accounts receivables In connection with the U.S. securitization program, accounts receivables, net of allowance for credit losses, include $391 million and $437 million as of March 31, 2024 and December 31, 2023, respectively, which are pledged by the SPV to PNC. g. Supplier Finance Program Obligation Teva maintains supply chain finance agreements with participating financial institutions. Under these agreements, participating suppliers may voluntarily elect to sell their accounts receivable with Teva to these financial institutions. Teva’s suppliers negotiate their financing agreements directly with the respective financial institutions and Teva is not a party to these agreements. Teva has no economic interest in its suppliers’ decisions to participate in the program and Teva pays the financial institutions the stated amount of confirmed invoices on the maturity dates, which is generally within 120 days from the date the invoice was received. The agreements with the financial institutions do not require Teva to provide assets pledged as security or other forms of guarantees for the supplier finance program. All outstanding amounts related to suppliers participating in the supplier finance program are recorded under accounts payables in Teva’s consolidated balance sheets. As of March 31, 2024 and December 31, 2023, respectively, $99 million and $108 million of accounts payables to suppliers |
Legal Settlements and Loss Cont
Legal Settlements and Loss Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Legal Settlements and Loss Contingencies | NOTE 9 – Legal settlements and loss contingencies: In the first quarter of 2024, Teva recorded expenses of $106 million in legal settlements and loss contingencies, compared to $233 million in the first quarter of 2023. Expenses in the first quarter of 2024 were mainly related to an update to the estimated settlement provision for the opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments), as well as an update to the estimated provision for the U.S. DOJ patient assistance program litigation. Expenses in the first quarter of 2023 were mainly related to estimated provisions recorded in connection with the U.S. DOJ patient assistance program litigation and the reverse-payment antitrust litigation over certain HIV medicines, as well as an update to the estimated settlement provision related to the remaining opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments). As of March 31, 2024 and December 31, 2023, Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses and other taxes and long-term liabilities was $4,669 million and $4,771 million, respectively. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 consolidated 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 legal counsel, no material provisions have been made regarding the matters disclosed in this note, except as noted below. Litigation outcomes and contingencies are unpredictable, and substantial damages or other relief may be awarded. 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 consolidated 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 began selling its carvedilol tablets (the generic version of GSK’s Coreg ® pre- In January 2021, Teva initiated a patent invalidity action against the compound patent and Supplementary Protection Certificate (“SPC”) asserted to cover Bristol-Myers Squibb Company’s (“BMS”) Eliquis ® ® 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 were 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. 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 against Teva and other manufacturers, including one MDL in the U.S. District Court for the District of New Jersey related to, with respect to Teva, valsartan and losartan, and another MDL in the U.S. District Court for the Southern District of Florida related to ranitidine. The claims against Teva in these MDLs include individual personal injury and/or product liability claims, economic damages claims brought by consumers and end payors as putative class actions, and medical monitoring class claims. The district court in the valsartan MDL certified a series of subclasses on plaintiffs’ economic loss claims as well as a medical monitoring class and ordered that the first trial, which was scheduled to commence on March 18, 2024, will include third-party payor economic loss claims brought by a class representative on behalf of several subclasses of payors against Teva and two other defendants. However, the trial date has been delayed. The claims against Teva and other generic manufacturers in the ranitidine MDL have been dismissed on preemption grounds but are subject to appeal. The district court in the ranitidine MDL also excluded all of plaintiffs’ general causation experts and granted summary judgment to the brand defendants on preemption grounds and later applied that general causation ruling to all defendants. This ruling is on appeal in the Eleventh Circuit Court of Appeals. Certain generic manufacturers, including Teva, have also been named in state court actions asserting allegations similar to those in the aforementioned MDLs. In particular, state court valsartan and losartan actions are pending in New Jersey and Delaware and are currently stayed, with the exception of a single-plaintiff case originally filed in the MDL alleging non-cancer In addition to the valsartan and ranitidine MDLs and coordinated state court proceedings, Teva has been named in a consolidated proceeding pending in the U.S. 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. The parties are now engaged in discovery related to the surviving metformin claims. Teva was recently named in a related proceeding pending in the same district brought by end payors also seeking economic damages on behalf of a purported class of end payors who purchased Teva’s, as well as other generic manufacturers’, metformin products. Teva, along with the other defendants, have moved to dismiss the claims in this related proceeding, and the parties are discussing consolidation with the original proceeding for discovery and pretrial purposes only. 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 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 the U.S. District Court for the District of New Jersey for alleged violations of the antitrust laws in connection with their February 2005 settlement of patent litigation involving lamotrigine (generic Lamictal ® ® ® In April 2013, purported classes of direct purchasers of, and end payers for, Niaspan ® opt-out re-hearing. ® ® In August 2019, certain direct-purchaser plaintiffs filed claims in federal court in Philadelphia against Teva and its affiliates alleging that the September 2006 patent litigation settlement relating to AndroGel ® 1 ® 1 ® Between September 1, 2020 and December 20, 2020, plaintiffs purporting to represent putative classes of direct and indirect purchasers and opt-out ® ® ® 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, and a judgment was issued on October 18, 2023 rejecting Teva’s grounds of appeal. 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. On January 4, 2024, Teva appealed the October 2023 judgment to the European Court of Justice. 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 (the “New Mexico litigation”). Between September 2021 and April 2022, several private plaintiffs including retailers and health insurance providers filed similar claims in various courts, which were all removed and/or consolidated into the U.S. District Court for the Northern District of California (the “California litigation”). 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 ® ® ® ® ® ® ® ® ® ® In March 2021, 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 June 29, 2021, Mylan Pharmaceuticals (“Mylan”) filed claims against Teva in the U.S. District Court for the District of New Jersey. On March 11, 2022 and March 15, 2022, purported purchasers of COPAXONE filed claims against Teva in the U.S. District Court for the District of New Jersey on behalf of themselves and similarly situated direct and indirect purchasers of COPAXONE. On August 22, 2022, additional purported purchasers of COPAXONE sued Teva in the U.S. District Court for the District of Vermont on behalf of themselves and similarly situated indirect purchasers of COPAXONE. The complaints variously assert claims for alleged violations of the Lanham Act, state and federal unfair competition and monopolization laws, tortious interference, trade libel, and a violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO Act”). Additionally, plaintiffs claim Teva was involved in an unlawful scheme to delay and hinder generic competition concerning COPAXONE sales. Plaintiffs seek damages for lost profits and expenses, disgorgement, restitution, treble damages, attorneys’ fees and costs, and injunctive relief. Teva moved to dismiss all of the complaints, and on January 22, 2024, Teva’s motion to dismiss the complaint in the District of Vermont was granted as to certain state law claims but was otherwise denied. Decisions on Teva’s remaining motions to dismiss are pending. 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, 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 (previously Actavis UK) and Auden Mckenzie appealed the CMA’s decision. The hearing for the appeal concluded in the first quarter of 2023, with partial judgments handed down on September 18, 2023 and March 8, 2024. The last part of the judgment was handed down on April 29, 2024. The CMA launched an appeal to the Court of Appeal in respect of certain aspects of the second judgment. A provision for the estimated exposure for Teva related to the fines and/or damages has been recorded in the financial statements. In August 2021, a plaintiff purporting to represent a class of direct purchasers filed a putative class action suit in the U.S. 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 ® end-payors end-payor In November 2022, two complaints filed by plaintiffs purporting to represent retailer purchasers and a putative class of end-payor ® pre-trial Opt-Out ® On December 2, 2022, plaintiffs purporting to represent putative classes of indirect purchasers of EpiPen ® ® ® ® In May 2023, certain end-payor ® 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. The indictment alleged that Teva USA had participated in three separate conspiracies with other generic drug manufacturers to maintain and fix prices, allocate customers, and other alleged antitrust offenses concerning the sale of generic drugs. The indictment identified the following generic drugs: pravastatin, carbamazepine, clotrimazole, etodolac (IR and ER), fluocinonide (cream, e-cream, 3-year 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. 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, which was subsequently amended to include 49 states, as well as the District of Columbia and Puerto Rico as plaintiffs, and to add new allegations and state law claims against both Actavis and Teva. On May 10, 2019, most of these attorneys general filed another antitrust complaint against Actavis, Teva and other companies and individuals, which was subsequently amended on November 1, 2019, alleging that Teva was at the center of a conspiracy in the generic pharmaceutical industry and asserting that Teva and others fixed prices, rigged bids, and allocated customers and market share with respect to certain products. On June 10, 2020, most of the same states, with the addition of the U.S. Virgin Islands, filed a third complaint in the U.S. District Court for the District of Connecticut naming, among other defendants, Actavis, in a similar complaint relating to dermatological generics products, and that complaint was later amended to, among other things, add California as a plaintiff. In the various complaints described above, which also include claims against certain former employees of Actavis and Teva USA, 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 were transferred to the generic drug multidistrict litigation in the Eastern District of Pennsylvania (“Pennsylvania MDL”). On May 7, 2021, the Court chose the attorneys’ general third complaint filed on June 10, 2020, as subsequently amended, to serve as a bellwether complaint in the Pennsylvania MDL, along with certain complaints filed by private plaintiffs. The schedule set by the Court to govern the bellwether cases 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 related to the state law claims asserted by the attorneys general in their bellwether complaint remains pending. The attorneys general have also moved for their complaints to be remanded to the U.S. District Court for the District of Connecticut, and that motion 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), Florida (in February 2023), and Kentucky (in June 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. These settlements, 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. The States of Alabama (in March 2022) and Hawaii (in August 2023) and the territories of American Samoa (in July 2020) and Guam (in February 2023) have all voluntarily dismissed all of their claims in the litigation against Actavis and Teva USA. The dismissals by Alabama, Hawaii and Guam were with prejudice and the dismissal by American Samoa was without prejudice. Beginning on March 2, 2016, and continuing through July 2023, 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 opt-out writ of mandamus 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. 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 causes of action under the federal False Claims Act and for unjust enrichment (the “DOJ PAP Complaint”). It is alleged that Teva’s donations to certain 501(c)(3) charities that provided financial assistance to multiple sclerosis patients violated the Anti-Kickback Statute. On April 24, 2023, both parties filed summary judgment motions, and on July 14, 2023 the court denied Teva’s motion and granted the DOJ’s motion, adopting the DOJ’s positions on materiality, causation, and damages. Under that ruling, if the DOJ can prove that any specific claim for reimbursement resulted from an illegal kickback, then the DOJ will be entitled to recover the full amount of that claim as damages. The DOJ is seeking a maximum of over $1 billion in damages, which would automatically be trebled in the event of an adverse verdict, and Teva would also be subject to mandatory statutory penalties for each false claim, the amount of which (potentially billions of U.S. dollars in additional penalties, at the high end) will be determined by the court within a statutory range. On August 14, 2023, the district court granted Teva’s motion to certify the summary judgment ruling for an immediate appeal and stayed the trial that was scheduled to start in September 2023, while Teva seeks an appeal as to the causation standard that should govern the case. On November 17, 2023, the First Circuit Court of Appeals granted Teva’s petition to appeal the summary judgment ruling, and on February 20, 2024, Teva filed its opening brief with the First Circuit Court of Appeals. In the first quarter of 2024, Teva updated its provision based on its offer to settle this matter. Additionally, on January 8, 2021, Humana, Inc. (“Humana”) filed an action against Teva in the U.S. District Court for the Middle District of Florida based on the allegations raised in the DOJ PAP Complaint. Teva’s motion to dismiss Humana’s claims was denied as moot in May 2023 in light of the amended complaint filed by Humana in May 2023. In June 2023, Teva filed a joint motion to dismiss, together with co-defendant In April 2021, a city and county in Washington filed claims against Teva in the U.S. District Court for the Western District of Washington for alleged violations of the RICO Act, Washington’s Consumer Protection Act, and unjust enrichment concerning Teva’s sale of COPAXONE. Plaintiffs purport to represent a nationwide class of health plans and a subclass of Washington-based health plans that purchased and/or reimbursed health plan members for COPAXONE. Plaintiffs allege that Teva engaged in several fraudulent schemes that resulted in plaintiffs and the putative class members purchasing and/or reimbursing plan members for additional prescriptions of COPAXONE and/or at inflated COPAXONE prices. Plaintiffs seek treble damages for the excess reimbursements and inflated costs, as well as injunctive relief. On November 17, 2021, Teva moved to dismiss the suit, on the grounds that plaintiffs’ claims are barred by the applicable statutes of limitations and the direct purchaser rule, suffer from jurisdictional defects, and fail to plausibly allege fraud or other elements of their claims. On March 9, 2023, the court held a hearing on the motion to dismiss, and a decision remains pending. On December 1, 2022, Teva received a civil subpoena from the U.S. Attorney’s office in Boston, Massachusetts requesting certain documents related to the sale and marketing of AUSTEDO ® Opioids Litigation Since May 2014, more than 3,500 complaints have been filed in both state and federal courts with respect to opioid sales and distribution against various Teva affiliates, along with several other pharmaceutical companies, by a number of cities, counties, states, other governmental agencies, tribes and private plaintiffs (including through putative class actions), the vast majority of which have been resolved. The remaining, non-settled ® ® In addition, over 950 personal injury plaintiffs, including various putative class actions of individuals, have asserted personal injury and wrongful death claims in over 600 complaints, nearly all of which are consolidated in the MDL Opioid Proceeding. Furthermore, approximately 100 personal injury complaints have named Anda, Inc. (and other distributors and manufacturers) alleging that Anda failed to develop and implement systems sufficient to identify suspicious orders of opioid products and prevent the abuse and diversion of such products to individuals who used them for other than legitimate medical purposes. Plaintiffs seek a variety of remedies, including restitution, civil penalties, disgorgement of profits, treble damages, attorneys’ fees and injunctive relief. Certain plaintiffs assert that the measure of damages is the entirety of the costs associated with addressing the abuse of opioids and opioid addiction and certain plaintiffs specify multiple billions of dollars in the aggregate as alleged damages. The individual personal injury plaintiffs further seek non-economic In July 2022, Teva, the working group of States’ Attorneys General (the “Working Group”), the Multi-District Litigation Plaintiffs’ Executive Committee (“PEC”), and counsel for Native American tribes (“Tribes”) reached an agreement in principle on the financial terms of nationwide settlements similar in structure to the nationwide settlements of other defendants that were announced in July 2021. During the third quarter of 2022, Teva and Allergan resolved their dispute with respect to Teva’s indemnification obligations. In November 2022, Teva, Allergan, the Working Group and PEC, and representatives for the Tribes, finalized the terms of their respective proposed opioids nationwide settlement agreements. In January 2023, Teva confirm |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income taxes | NOTE 11 – Income taxes: In the first quarter of 2024, Teva recognized a tax benefit of $52 million, on a pre-tax pre-tax Co-operation The statutory Israeli corporate tax rate is 23% in 2024. Teva’s tax rate differs from the Israeli statutory tax rate, mainly due to generation of profits in various jurisdictions in which tax rates are different than the Israeli tax rate, tax benefits in Israel and other countries, as well as infrequent or non-recurring 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 ongoing. A final and binding decision against Teva in this case may lead to a charge of $126 million. 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, which the Company intends to challenge. In October 2021, the Central District Court in Israel held in favor of the ITA with respect to 2008-2011 decrees. Teva appealed this decision to the Israeli Supreme Court, and the hearing was held in March 2024, which decision remains pending. On December 6, 2023, the Central District Court issued a partial judgment on the 2012-2016 decrees, to apply the court’s findings in the judgment for the 2008-2011 decrees on the overlapping issues. The case with respect to the other issues under dispute for the 2012-2016 decrees remains pending. The next court hearing is scheduled for September 18, 2024. The tax liability resulting from the October 2021 and the December 2023 Central District Court decisions, with respect to the decrees for 2008-2011 and 2012-2016 was approximately $350 million, of which a portion has been paid during 2022 and 2023, with the remainder to be paid during 2024 and 2025. Teva believes it has adequately provided for all of its uncertain tax positions, including those items currently under dispute, however, adverse results could be material. The OECD introduced Base Erosion and Profit Shifting (“BEPS”) Pillar Two rules that impose a global minimum tax rate of 15% for large multinational corporations. On December 12, 2022, the EU Council announced that EU member states had reached an agreement to implement the minimum taxation component of 15% of the OECD’s reform of international taxation. Other countries have also enacted or are expected to enact legislation to be effective as early as January 1, 2024, with general implementation of a global minimum tax by January 1, 2025. Teva has evaluated the potential impact on its 2024 consolidated financial statements and related disclosures and does not expect Pillar Two to have a material impact on its effective tax rate or consolidated financial statements in the foreseeable future. |
Other assets impairments, restr
Other assets impairments, restructuring and other items | 3 Months Ended |
Mar. 31, 2024 | |
Other assets impairments, restructuring and other items | NOTE 12 – Other assets impairments, restructuring and other items: Three months ended March 31, 2024 2023 (U.S. $ in millions) Impair $ 599 $ 10 Contingent consideration (2) 79 35 Restructuring 13 56 Other (18 ) 9 Total $ 673 $ 110 (1) Including expenses (2) The contingent consideration presented in the table above for the three months ended March 31, 2023 has been revised as discussed in note 1c. Impairments Impairments of tangible assets for the three months ended March 31, 2024 and 2023 were $599 million and $10 million, respectively. The expense 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 ongoing network consolidation activities and its Pivot to Growth strategy. Contingent consideration In the three months ended March 31, 2024, Teva recorded an expense of $79 million for contingent consideration, compared to an expense of $35 million in the three months ended March 31, 2023. The expense in the first three months of 2024 and 2023 was mainly related to 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, 2024, Teva recorded $13 million of restructuring expenses, compared to $56 million in the three months ended March 31, 2023. Expenses for the three months ended March 31, 2024 and 2023 were primarily related to network consolidation activities. The following tables provide the components of the Company’s restructuring costs: Three months ended March 31, 2024 2023 (U.S. $ in millions) Restructuring Employee termination $ 7 $ 23 Other 6 33 Total $ 13 $ 56 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, 2024 $ (75 ) $ (7 ) $ (82 ) Provision (7 ) (6 ) (13 ) Utilization and other* 32 7 39 Balance as of March 31, 2024 $ (50 ) $ (6 ) $ (57 ) 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 ) * Includes adjustments for foreign currency translation. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023, 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, 2024 and 2023 were 1,123 million and 1,115 million shares, respectively. Basic and diluted loss per share was $0.12 for the three months ended March 31, 2024, compared to basic and diluted loss per share of $0.20 for the three months ended March 31, 2023. Basic and diluted loss per share for the three months ended March 31, 2023 was revised as discussed in note 1c. |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023, net of taxes $ (2,384 ) $ (266 ) $ (46 ) $ (2,697 ) Other comprehensive income (loss) before reclassifications (89 ) — — (89 ) Amounts reclassified to the statements of income — 7 (1 ) 6 Net other comprehensive income (loss) before tax (89 ) 7 (1 ) (83 ) Corresponding income tax 5 — — 5 Net other comprehensive income (loss) after tax* (84 ) 7 (1 ) (78 ) Balance as of March 31, 2024, net of taxes $ (2,468 ) $ (259 ) $ (47 ) $ (2,775 ) * Amounts do not include a $42 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, 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 |
Segments
Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segments | NOTE 15 – Segments: Teva operates its business and reports its financial results in three segments: (a) United States segment. (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 the United States and countries included 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 United States, 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. Based on such review, in May 2023 Teva launched its new Pivot to Growth strategy. Any additional 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. In conjunction with a recent shift in executive management responsibilities and in alignment with Teva’s Pivot to Growth strategy, Teva decided that Canada is no longer included as part of Teva’s North America segment as of January 1, 2024. From that date Canada is reported as part of the Company’s International Markets segment and Teva’s North America segment has been renamed the United States segment. Teva aligned its internal financial and segment reporting and its reporting units in accordance with this change effective January 1, 2024. Prior period amounts have been recast to conform to the reporting structure for the current year. On January 31, 2024, Teva announced that it intends to divest its API business (including its R&D, manufacturing and commercial activities) through a sale, which divestment is expected to be completed in the first half of 2025. The intention to divest is in alignment with Teva’s Pivot to Growth strategy. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or that a divestiture will be agreed or completed at all. a. Segment information: Three months ended March 31, 2024 United States Europe International Markets (U.S. $ in millions) Revenues $ 1,725 $ 1,272 $ 597 Gross profit 858 738 297 R&D expenses 154 56 28 S&M expenses 261 194 118 G&A expenses 93 65 35 Other income 1 1 § Segment profit $ 350 $ 423 $ 117 § Represents an amount less than $0.5 million. Three months ended March 31, 2023 United States Europe International Markets (U.S. $ in millions) Revenues $ 1,677 $ 1,184 $ 581 Gross profit 789 655 285 R&D expenses 149 53 27 S&M expenses 207 187 113 G&A expenses 95 70 38 Other income § § (1 ) Segment profit $ 338 $ 345 $ 108 § 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, 2024 and 2023: Three months ended 2024 2023 (U.S. $ in millions) United States profit $ 350 $ 338 Europe profit 423 345 International Markets profit 117 108 Total reportable segments profit 890 791 Profit (loss) of other activities 2 (6 ) Total segments profit 892 785 Amounts not allocated to segments: Amortization 152 165 Other assets impairments, restructuring and other items * 673 110 Intangible assets impairments 80 178 Legal settlements and loss contingencies 106 233 Other unallocated amounts 99 112 Consolidated operating income (loss) * (218 ) (13 ) Financial expenses, net 250 260 Consolidated income (loss) before income taxes * $ (467 ) $ (272 ) * The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1c. 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, 2024 and 2023: United States Three months ended March 31, 2024 2023 (U.S. $ in millions) Generic products $ 808 $ 747 AJOVY ® 45 46 AUSTEDO 282 170 BENDEKA ® ® 46 62 COPAXONE 30 71 Anda 381 424 Other 133 158 Total $ 1,725 $ 1,677 Europe Three months ended March 31, 2024 2023 (U.S. $ in millions) Generic products $ 1,004 $ 932 AJOVY 51 36 COPAXONE 57 59 Respiratory products 66 68 Other 94 89 Total $ 1,272 $ 1,184 International markets Three months ended March 31, 2024 2023 (U.S. $ in millions) Generic products $ 477 $ 477 AJOVY 17 13 COPAXONE 12 17 Other 91 74 Total $ 597 $ 581 |
Fair value measurement
Fair value measurement | 3 Months Ended |
Mar. 31, 2024 | |
Fair value measurement | NOTE 16 – Fair value measurement: Financial items carried at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 are classified in the tables below in one of the three categories of fair value levels: March 31, 2024 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 1,574 $ — $ — $ 1,574 Cash, deposits and other 1,417 — — 1,417 Investment in securities: Investment in convertible bond — — 40 40 Equity securities 8 — — 8 Other 3 — — 3 Derivatives: Asset derivatives Options and forward contracts — 36 — 36 Liability derivatives Options and forward contracts — (35 ) — (35 ) Bifurcated embedded derivatives — — § — Contingent consideration* — — (567 ) (567 ) Total $ 3,002 $ 1 $ (527 ) $ 2,476 December 31, 2023 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 1,704 $ — $ — $ 1,704 Cash, deposits and other 1,522 — — 1,522 Investment in securities: Investment in convertible bond security 40 40 Equity securities 7 — — 7 Other 1 — — 1 Restricted cash 1 — — 1 Derivatives: Asset derivatives: Options and forward contracts — 38 — 38 Cross-currency interest rate swap 8 8 Liability derivatives: Options and forward contracts — (39 ) — (39 ) Bifurcated embedded derivatives — — § — Contingent consideration* $ — — (517 ) (517 ) Total 3,235 $ 7 $ (477 ) $ 2,765 § 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. 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 8.8%. 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. A change of the discount rate by 1% would have not resulted in material changes to the contingent consideration liabilities. The investment in convertible bond security is accounted for as available for sale with changes in fair value reflected in other comprehensive income. As of March 31, 2024, the fair value of the conversion option is negligible. The following table summarizes the activity for the financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs: Three months ended March 31, 2024 Three months ended March 31, 2023 (U.S. $ in millions) Fair value at the beginning of the period $ (477 ) (250 ) Bifurcated embedded derivatives § § Adjustments to provisions for contingent consideration: Allergan transaction* (64 ) (24 ) Eagle transaction (14 ) (11 ) Novetide transaction (1 ) (1 ) Settlement of contingent consideration: Allergan transaction 13 2 Eagle transaction 15 21 Novetide transaction 1 2 Fair value at the end of the period $ (527 ) $ (261 ) § Represents an amount less than $0.5 million. * The financial data presented in the tables above with respect to adjustments to provisions for contingent consideration related to Allergan for the three months ended March 31, 2023 have been revised as discussed in note 1c. 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, 2024 2023 (U.S. $ in millions) Senior notes and sustainability-linked senior notes included under senior notes and loans $ 15,786 $ 17,214 Senior notes and convertible senior debentures included under short-term debt 3,051 1,651 Total $ 18,837 $ 18,865 * The fair value was estimated based on quoted market prices. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements None. |
Recently issued accounting pronouncements, not yet adopted | Recently issued accounting pronouncements, not yet adopted In December 2023, the FASB issued ASU 2023-09 2023-09 2023-09 In November 2023, the FASB issued ASU 2023-07 In October 2023, the FASB issued ASU 2023-06 S-X S-K 2023-06 |
Revision of Previously Reported Consolidated Financial Statements | c. Revision of Previously Reported Consolidated Financial Statements In connection with the preparation of the consolidated financial statements as of and for the year ended December 31, 2023, the Company identified errors in a single contingent consideration liability and related expenses in connection with estimated future royalty payments, along with corresponding deferred tax adjustments, that aggregated into an understatement of the contingent consideration liability of approximately $132 million, of which $98 million related to 2022 and $34 million related to 2023. These errors resulted from the exclusion of royalty payments that should have been included in the fair value re-measurement year-to-date The Company evaluated the errors, individually and in the aggregate, considering both qualitative and quantitative factors, and concluded that these errors did not have a material impact on any of the prior periods stated above. However, the aggregate amount of the prior period errors in 2022, would have been material to the consolidated financial statements for fiscal year 2023. Therefore, the Company has revised the prior periods impacted for these errors. The tables below present the impact of the revision on the line items within the Company’s consolidated financial statements for the relevant period: Three months ended March 31, 2023 U.S $ in millions (except per share amounts) (Unaudited) As previously reported Adjustment As revised Other asset impairments, restructuring and other items $ 96 15 110 Operating income (loss) 2 (15 ) (13 ) Income (loss) before income taxes (258 ) (15 ) (272 ) Income taxes (benefit) (19 ) § (19 ) Net income (loss) (238 ) (15 ) (253 ) Net income (loss) attributable to Teva (205 ) (15 ) (220 ) Earnings (loss) per share attributable to ordinary shareholders: Basic $ (0.18 ) (0.02 ) (0.20 ) Diluted $ (0.18 ) (0.02 ) (0.20 ) § Represents an amount less than $0.5 million. |
Basis of presentation (Tables)
Basis of presentation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule Of Impact Of Restatement On Certain Line Items And Balance Sheet | The tables below present the impact of the revision on the line items within the Company’s consolidated financial statements for the relevant period: Three months ended March 31, 2023 U.S $ in millions (except per share amounts) (Unaudited) As previously reported Adjustment As revised Other asset impairments, restructuring and other items $ 96 15 110 Operating income (loss) 2 (15 ) (13 ) Income (loss) before income taxes (258 ) (15 ) (272 ) Income taxes (benefit) (19 ) § (19 ) Net income (loss) (238 ) (15 ) (253 ) Net income (loss) attributable to Teva (205 ) (15 ) (220 ) Earnings (loss) per share attributable to ordinary shareholders: Basic $ (0.18 ) (0.02 ) (0.20 ) Diluted $ (0.18 ) (0.02 ) (0.20 ) § Represents an amount less than $0.5 million. |
Certain transactions (Tables)
Certain transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Major Classes of Assets and Liabilities Included as Held for Sale | The table below summarizes all of Teva’s assets and liabilities included as held for sale as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 (U.S. $ in millions) Inventories 169 12 Accounts receivables 146 — Goodwill 78 30 Identifiable intangible assets, net 63 — Property, plant and equipment, net 13 5 Other current and non-current 65 23 Expected loss on sale* (464 ) — Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 70 $ 70 Accounts payables (92 ) — Other liabilities (57 ) (13 ) Expected loss on sale* (113 ) — Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets $ (262 ) $ (13 ) * Includes an expected loss from reclassification of currency translation adjustments to the consolidated statements of income (loss) upon sale |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 United States Europe International Other activities Total (U.S.$ in millions) Sale of goods 1,321 1,252 566 128 3,267 Licensing arrangements 23 11 5 § 40 Distribution 381 § 9 — 391 Other § 9 16 97 121 $ 1,725 $ 1,272 $ 597 $ 225 $ 3,819 § Represents an amount less than $ 0.5 Three months ended March 31, 2023 United States Europe International Other activities Total (U.S.$ in millions) Sale of goods 1,230 1,176 553 131 3,090 Licensing arrangements 22 14 6 1 43 Distribution 424 § 10 — 434 Other § (6 ) 13 87 95 $ 1,677 $ 1,184 $ 581 $ 219 $ 3,661 § Represents an amount less than $ 0.5 |
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, 2024 $ 61 $ 1,603 $ 540 $ 859 $ 436 $ 97 $ 3,535 $ 3,596 Provisions related to sales made in current year period 93 1,118 181 1,942 73 40 3,354 3,447 Provisions related to sales made in prior periods — 10 20 (11 ) (6 ) (1 ) 12 12 Credits and payments (87 ) (1,086 ) (171 ) (1,935 ) (67 ) (18 ) (3,277 ) (3,364 ) Translation differences — (17 ) (3 ) (5 ) (3 ) (2 ) (30 ) (30 ) Balance at March 31, 2024 $ 67 $ 1,628 $ 567 $ 850 $ 433 $ 116 $ 3,594 $ 3,661 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 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Inventories | Inventories, net of reserves, consisted of the following: March 31, December 31, 2024 2023 (U.S. $ in millions) Finished products $ 2,238 $ 2,346 Raw and packaging materials 1,014 993 Products in process 508 500 Materials in transit and payments on account 189 183 $ 3,949 $ 4,021 |
Identifiable Intangible Assets
Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Identifiable Intangible Assets | Identifiable intangible assets consisted of the following: Gross carrying amount Accumulated amortization Net carrying amount March 31, December 31, March 31, December 31, March 31, December 31, 2024 2023 2024 2023 2024 2023 (U.S. $ in millions) Product rights $ 16,261 $ 17,981 $ 11,846 $ 13,274 $ 4,415 $ 4,707 Trade names 576 583 276 269 300 314 In process research and development 341 366 — — 341 366 Total $ 17,178 $ 18,930 $ 12,122 $ 13,543 $ 5,056 $ 5,387 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Changes in the Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill for the period ended March 31, 2024 were as follows: North United Europe International Other Total Teva’s Medis (U.S. $ in millions) Balance as of December 31, 2023 (1) $ 6,459 $ — $ 8,466 $ 675 $ 1,313 $ 265 $ 17,177 Goodwill allocation related to the shift of Canada to International Markets (6,459 ) 5,813 — 646 — — — Balance as of January 1, 2024 $ — $ 5,813 $ 8,466 $ 1,321 $ 1,313 $ 265 $ 17,177 Other changes during the period: Goodwill reclassified as assets held for sale — — — (48 ) — — (48 ) Translation differences — — (104 ) 6 (14 ) (10 ) (122 ) Balance as of March 31, 2024 (1) $ — $ 5,813 $ 8,362 $ 1,279 $ 1,299 $ 255 $ 17,007 (1) Cumulative goodwill impairment as of March 31, 2024 and December 31, 2023 was approximately $28.3 billion. |
Debt obligations (Tables)
Debt obligations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Schedule of Short-term Debt | a. Short-term debt: March 31, December 31, Interest rate as of March 31, Maturity 2024 2023 (U.S. $ in millions) Convertible senior debentures 0.25 % 2026 23 23 Current maturities of long-term liabilities 3,037 1,649 Total short-term debt $ 3,060 $ 1,672 |
Schedule of Senior Notes and Loans | b. Long-term debt: Interest rate as of March Maturity March 31, 2024 December 31, (U.S. $ in millions) Senior notes EUR 1,500 million 1.13 % 2024 676 693 Sustainability-linked senior notes EUR 1,500 million (6)(*) 4.38 % 2030 1,620 1,656 Sustainability-linked senior notes EUR 1,100 million (7)(*) 3.75 % 2027 1,188 1,215 Senior notes EUR 1,000 million (5) 6.00 % 2025 443 453 Senior notes EUR 900 million (5) 4.50 % 2025 535 547 Sustainability-linked senior notes EUR 800 million (1)(*) 7.38 % 2029 864 884 Senior notes EUR 750 million 1.63 % 2028 806 826 Senior notes EUR 700 million 1.88 % 2027 757 771 Sustainability-linked senior notes EUR 500 million (2)(*) 7.88 % 2031 540 552 Senior notes USD 3,500 million (5) 3.15 % 2026 3,374 3,374 Senior notes USD 2,000 million 4.10 % 2046 1,986 1,986 Senior notes USD 1,250 million (5)(8) 6.00 % 2024 956 956 Senior notes USD 1,250 million 6.75 % 2028 1,250 1,250 Senior notes USD 1,000 million (5) 7.13 % 2025 427 427 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 600 600 Sustainability-linked senior notes USD 500 million (4)(*) 8.13 % 2031 500 500 Senior notes CHF 350 million 1.00 % 2025 390 416 Total senior notes 19,695 19,889 Other long-term debt — 1 Less current maturities (3,037 ) (1,649 ) Less debt issuance costs (74 ) (80 ) Total senior notes and loans $ 16,584 $ 18,161 (1) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 800 7.38 0.100 0.300 (2) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 500 7.88 0.100 0.300 (3) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $ 600 7.88 0.100 0.300 (4) In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $ 500 8.13 0.100 0.300 (5) In March 2023, Teva consummated a cash tender offer and extinguished $ 631 1,000 6 432 900 4.5 2025 574 454 (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) In April 2024, Teva repaid $956 million of its 6% 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, 2024 | |
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, 2024 2023 (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 derivative instruments: Fair value Designated as hedging instruments Not designated as hedging instruments March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Reported under (U.S. $ in millions) (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ — $ — $ 36 $ 38 Other non-current Cross-currency swap-cash flow hedge (1) — 8 — — Liability derivatives: Other current liabilities: Option and forward contracts — — (35 ) (39 ) |
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 Financial expenses, net Other comprehensive Three months ended, Three months ended, March 31, 2024 March 31, March 31, 2024 March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 250 $ 260 $ (117 ) $ 127 Cross-currency swaps - cash flow hedge (1) (8 ) 1 1 (2 ) |
Summary of Pre-tax (Gains) Losses From Derivatives Not Designated in 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, 2024 March 31, March 31, March 31, Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 250 $ 260 $ (3,819 ) $ (3,661 ) Option and forward contracts (2) (10 ) (13 ) — — Option and forward contracts economic hedge (3) — — (13 ) 6 |
Other assets impairments, res_2
Other assets impairments, restructuring and other items (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Schedule of Other Assets Impairments, Restructuring and Other Items | Three months ended March 31, 2024 2023 (U.S. $ in millions) Impair $ 599 $ 10 Contingent consideration (2) 79 35 Restructuring 13 56 Other (18 ) 9 Total $ 673 $ 110 (1) Including expenses (2) The contingent consideration presented in the table above for the three months ended March 31, 2023 has been revised as discussed in note 1c. |
Summary of Restructuring Plan Including Costs Related to Exit and Disposal | The following tables provide the components of the Company’s restructuring costs: Three months ended March 31, 2024 2023 (U.S. $ in millions) Restructuring Employee termination $ 7 $ 23 Other 6 33 Total $ 13 $ 56 |
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, 2024 $ (75 ) $ (7 ) $ (82 ) Provision (7 ) (6 ) (13 ) Utilization and other* 32 7 39 Balance as of March 31, 2024 $ (50 ) $ (6 ) $ (57 ) 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 ) * Includes adjustments for foreign currency translation. |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023, net of taxes $ (2,384 ) $ (266 ) $ (46 ) $ (2,697 ) Other comprehensive income (loss) before reclassifications (89 ) — — (89 ) Amounts reclassified to the statements of income — 7 (1 ) 6 Net other comprehensive income (loss) before tax (89 ) 7 (1 ) (83 ) Corresponding income tax 5 — — 5 Net other comprehensive income (loss) after tax* (84 ) 7 (1 ) (78 ) Balance as of March 31, 2024, net of taxes $ (2,468 ) $ (259 ) $ (47 ) $ (2,775 ) * Amounts do not include a $42 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, 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 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Segment Profit | a. Segment information: Three months ended March 31, 2024 United States Europe International Markets (U.S. $ in millions) Revenues $ 1,725 $ 1,272 $ 597 Gross profit 858 738 297 R&D expenses 154 56 28 S&M expenses 261 194 118 G&A expenses 93 65 35 Other income 1 1 § Segment profit $ 350 $ 423 $ 117 § Represents an amount less than $0.5 million. Three months ended March 31, 2023 United States Europe International Markets (U.S. $ in millions) Revenues $ 1,677 $ 1,184 $ 581 Gross profit 789 655 285 R&D expenses 149 53 27 S&M expenses 207 187 113 G&A expenses 95 70 38 Other income § § (1 ) Segment profit $ 338 $ 345 $ 108 § 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, 2024 and 2023: Three months ended 2024 2023 (U.S. $ in millions) United States profit $ 350 $ 338 Europe profit 423 345 International Markets profit 117 108 Total reportable segments profit 890 791 Profit (loss) of other activities 2 (6 ) Total segments profit 892 785 Amounts not allocated to segments: Amortization 152 165 Other assets impairments, restructuring and other items * 673 110 Intangible assets impairments 80 178 Legal settlements and loss contingencies 106 233 Other unallocated amounts 99 112 Consolidated operating income (loss) * (218 ) (13 ) Financial expenses, net 250 260 Consolidated income (loss) before income taxes * $ (467 ) $ (272 ) * The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1c. |
Schedule of Net Sales by Product Line | The following tables present revenues by major products and activities for the three months ended March 31, 2024 and 2023: United States Three months ended March 31, 2024 2023 (U.S. $ in millions) Generic products $ 808 $ 747 AJOVY ® 45 46 AUSTEDO 282 170 BENDEKA ® ® 46 62 COPAXONE 30 71 Anda 381 424 Other 133 158 Total $ 1,725 $ 1,677 Europe Three months ended March 31, 2024 2023 (U.S. $ in millions) Generic products $ 1,004 $ 932 AJOVY 51 36 COPAXONE 57 59 Respiratory products 66 68 Other 94 89 Total $ 1,272 $ 1,184 International markets Three months ended March 31, 2024 2023 (U.S. $ in millions) Generic products $ 477 $ 477 AJOVY 17 13 COPAXONE 12 17 Other 91 74 Total $ 597 $ 581 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Financial Items Carried at Fair Value | Financial items carried at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 are classified in the tables below in one of the three categories of fair value levels: March 31, 2024 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 1,574 $ — $ — $ 1,574 Cash, deposits and other 1,417 — — 1,417 Investment in securities: Investment in convertible bond — — 40 40 Equity securities 8 — — 8 Other 3 — — 3 Derivatives: Asset derivatives Options and forward contracts — 36 — 36 Liability derivatives Options and forward contracts — (35 ) — (35 ) Bifurcated embedded derivatives — — § — Contingent consideration* — — (567 ) (567 ) Total $ 3,002 $ 1 $ (527 ) $ 2,476 December 31, 2023 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 1,704 $ — $ — $ 1,704 Cash, deposits and other 1,522 — — 1,522 Investment in securities: Investment in convertible bond security 40 40 Equity securities 7 — — 7 Other 1 — — 1 Restricted cash 1 — — 1 Derivatives: Asset derivatives: Options and forward contracts — 38 — 38 Cross-currency interest rate swap 8 8 Liability derivatives: Options and forward contracts — (39 ) — (39 ) Bifurcated embedded derivatives — — § — Contingent consideration* $ — — (517 ) (517 ) Total 3,235 $ 7 $ (477 ) $ 2,765 § 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 ended March 31, 2024 Three months ended March 31, 2023 (U.S. $ in millions) Fair value at the beginning of the period $ (477 ) (250 ) Bifurcated embedded derivatives § § Adjustments to provisions for contingent consideration: Allergan transaction* (64 ) (24 ) Eagle transaction (14 ) (11 ) Novetide transaction (1 ) (1 ) Settlement of contingent consideration: Allergan transaction 13 2 Eagle transaction 15 21 Novetide transaction 1 2 Fair value at the end of the period $ (527 ) $ (261 ) § Represents an amount less than $0.5 million. * The financial data presented in the tables above with respect to adjustments to provisions for contingent consideration related to Allergan for the three months ended March 31, 2023 have been revised as discussed in note 1c. |
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, 2024 2023 (U.S. $ in millions) Senior notes and sustainability-linked senior notes included under senior notes and loans $ 15,786 $ 17,214 Senior notes and convertible senior debentures included under short-term debt 3,051 1,651 Total $ 18,837 $ 18,865 * The fair value was estimated based on quoted market prices. |
Basis of presentation - Additio
Basis of presentation - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2024 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Business combination contingent consideration | [1] | $ 517 | $ 567 | |
Restatement adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Contingent consideration related expenses | $ 34 | $ 98 | ||
Business combination contingent consideration | $ 132 | |||
[1]Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. |
Basis of presentation - Schedul
Basis of presentation - Schedule of Impact of Restatement on Certain Line Items and Balance Sheet (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Other asset impairments, restructuring and other items | [1] | $ 673 | $ 110 |
Operating income (loss) | [1] | (218) | (13) |
Income (loss) before income taxes | [1] | (467) | (272) |
Income taxes (benefit) | (52) | (19) | |
Net income (loss) | (419) | (253) | |
Net income (loss) attributable to Teva | $ (139) | $ (220) | |
Earnings (loss) per share attributable to ordinary shareholders: | |||
Basic | $ (0.12) | $ (0.2) | |
Diluted | $ (0.12) | $ (0.2) | |
As previously reported [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Other asset impairments, restructuring and other items | $ 96 | ||
Operating income (loss) | 2 | ||
Income (loss) before income taxes | (258) | ||
Income taxes (benefit) | (19) | ||
Net income (loss) | (238) | ||
Net income (loss) attributable to Teva | $ (205) | ||
Earnings (loss) per share attributable to ordinary shareholders: | |||
Basic | $ (0.18) | ||
Diluted | $ (0.18) | ||
Adjustment [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Other asset impairments, restructuring and other items | $ 15 | ||
Operating income (loss) | (15) | ||
Income (loss) before income taxes | (15) | ||
Net income (loss) | (15) | ||
Net income (loss) attributable to Teva | $ (15) | ||
Earnings (loss) per share attributable to ordinary shareholders: | |||
Basic | $ (0.02) | ||
Diluted | $ (0.02) | ||
[1]The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1c. |
Basis of presentation - Sched_2
Basis of presentation - Schedule of Impact of Restatement on Certain Line Items and Balance Sheet (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income (Loss) from equity method investments | $ (4) | |
Maximum [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income (Loss) from equity method investments | $ 0.5 |
Certain Transactions - Other Tr
Certain Transactions - Other Transactions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Nov. 26, 2023 | Nov. 09, 2023 | Jun. 12, 2023 | Oct. 31, 2021 | Aug. 31, 2021 | Dec. 31, 2016 | Dec. 31, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 28, 2024 | Oct. 03, 2023 | Sep. 29, 2023 | |
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | $ 369 | ||||||||||||||||||
Other commitment | $ 150 | ||||||||||||||||||
Other Asset Impairment Charges | 577 | ||||||||||||||||||
Additional milestone payment payable | 150 | ||||||||||||||||||
Sanofi [Member] | Collaborative Arrangement [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Milestone payment receivable | $ 500 | ||||||||||||||||||
Development and launch milestone payment receivable | $ 1,000 | ||||||||||||||||||
Johnson And Johnson [Member] | Settlement And License Agreement Alvotech And Teva [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Maximum entry date for granting license entry | Feb. 21, 2025 | ||||||||||||||||||
Biolojic Design Ltd [Member] | Collaborative Arrangement [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Additional development and milestone payments receivable | 500 | ||||||||||||||||||
Biolojic Design Ltd [Member] | Research and Development Expense [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Milestone payment | $ 10 | ||||||||||||||||||
Royalty Pharma [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Collaborative agreement milestone payments | $ 100 | ||||||||||||||||||
Term of royalty payment | 5 years | ||||||||||||||||||
Collaborative agreement milestone amount increase | $ 125 | ||||||||||||||||||
Royalty Pharma [Member] | Research and Development Expense [Member] | Collaborative Arrangement [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Reimbursement of research and development expenses incurred | $ 27 | $ 35 | |||||||||||||||||
Takeda [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Upfront payment | $ 30 | ||||||||||||||||||
Milestone payment | $ 20 | $ 25 | |||||||||||||||||
Alvotech [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Collaborative agreement milestone payments | $ 400 | ||||||||||||||||||
Aggregate upfront and milestone payments | $ 78 | $ 78 | $ 78 | ||||||||||||||||
Cost of the investment | $ 40 | ||||||||||||||||||
Alvotech [Member] | Research and Development Expense [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Milestone payment | $ 22 | ||||||||||||||||||
mAbxience [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Collaborative agreement milestone payments | $ 142 | ||||||||||||||||||
mAbxience [Member] | Research and Development Expense [Member] | |||||||||||||||||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||||||||||||||||
Milestone payment | $ 10 | ||||||||||||||||||
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 | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Business Combinations [Abstract] | ||
Inventories | $ 169 | $ 12 |
Accounts receivables | 146 | 0 |
Goodwill | 78 | 30 |
Identifiable intangible assets, net | 63 | 0 |
Property, plant and equipment, net and others | 13 | 5 |
Other current and non-current assets | 65 | 23 |
Expected loss on sale | (464) | 0 |
Total assets of the disposal group classified as held for sale in the consolidated balance sheet | 70 | 70 |
Accounts payables | (92) | 0 |
Other liabilities | (57) | (13) |
Expected loss on sale | (113) | 0 |
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets, recorded under other current liabilities | $ (262) | $ (13) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2024 | |
United States [Member] | |
Revenue Recognition [Line Items] | |
Percentage sales reserves and allowances to U.S. customers | 66% |
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, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 3,819 | $ 3,661 |
Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3,267 | 3,090 |
Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 40 | 43 |
Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 391 | 434 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 121 | 95 |
International Markets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 597 | 581 |
International Markets [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 566 | 553 |
International Markets [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5 | 6 |
International Markets [Member] | Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 9 | 10 |
International Markets [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 16 | 13 |
Other activities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 225 | 219 |
Other activities [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 128 | 131 |
Other activities [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 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 | 97 | 87 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,272 | 1,184 |
Europe [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,252 | 1,176 |
Europe [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 11 | 14 |
Europe [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 9 | (6) |
United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,725 | 1,677 |
United States [Member] | Sale of Goods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,321 | 1,230 |
United States [Member] | Licensing Arrangements [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 23 | 22 |
United States [Member] | Distribution [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 381 | $ 424 |
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, 2024 | Mar. 31, 2023 | |
Revenue Recognition [Line Items] | ||
Balance at beginning of period | $ 3,596 | $ 3,817 |
Provisions related to sales made in current year period | 3,447 | 3,178 |
Provisions related to sales made in prior periods | 12 | (47) |
Credits and payments | (3,364) | (3,589) |
Translation differences | (30) | 13 |
Balance at end of period | 3,661 | 3,372 |
Reserves Included in Accounts Receivable, net [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 61 | 67 |
Provisions related to sales made in current year period | 93 | 80 |
Provisions related to sales made in prior periods | 0 | |
Credits and payments | (87) | (84) |
Translation differences | 0 | |
Balance at end of period | 67 | 63 |
Rebates [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 1,603 | 1,575 |
Provisions related to sales made in current year period | 1,118 | 1,003 |
Provisions related to sales made in prior periods | 10 | (7) |
Credits and payments | (1,086) | (1,127) |
Translation differences | (17) | 8 |
Balance at end of period | 1,628 | 1,452 |
Medicaid and other governmental allowances [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 540 | 663 |
Provisions related to sales made in current year period | 181 | 142 |
Provisions related to sales made in prior periods | 20 | (36) |
Credits and payments | (171) | (289) |
Translation differences | (3) | 2 |
Balance at end of period | 567 | 482 |
Chargebacks [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 859 | 991 |
Provisions related to sales made in current year period | 1,942 | 1,855 |
Provisions related to sales made in prior periods | (11) | (9) |
Credits and payments | (1,935) | (1,973) |
Translation differences | (5) | 2 |
Balance at end of period | 850 | 866 |
Returns [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 436 | 455 |
Provisions related to sales made in current year period | 73 | 73 |
Provisions related to sales made in prior periods | (6) | 6 |
Credits and payments | (67) | (95) |
Translation differences | (3) | 1 |
Balance at end of period | 433 | 440 |
Other [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 97 | 66 |
Provisions related to sales made in current year period | 40 | 25 |
Provisions related to sales made in prior periods | (1) | (1) |
Credits and payments | (18) | (21) |
Translation differences | (2) | |
Balance at end of period | 116 | 69 |
Total reserves included in sales reserves and allowances [Member] | ||
Revenue Recognition [Line Items] | ||
Balance at beginning of period | 3,535 | 3,750 |
Provisions related to sales made in current year period | 3,354 | 3,098 |
Provisions related to sales made in prior periods | 12 | (47) |
Credits and payments | (3,277) | (3,505) |
Translation differences | (30) | 13 |
Balance at end of period | $ 3,594 | $ 3,309 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventories [Line Items] | ||
Finished products | $ 2,238 | $ 2,346 |
Raw and packaging materials | 1,014 | 993 |
Products in process | 508 | 500 |
Materials in transit and payments on account | 189 | 183 |
Total | $ 3,949 | $ 4,021 |
Identifiable Intangible Asset_2
Identifiable Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 | Sep. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets useful life | 9 years | |||
Amortization of intangible assets | $ 152 | $ 165 | ||
Impairment of intangible assets excluding goodwill | $ 80 | 178 | ||
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 | $ 23 | 19 | ||
Identifiable product rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets excluding goodwill | $ 57 | 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 | |||
Japan [Member] | Identifiable product rights [Member] | Updated Market Assumptions [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets excluding goodwill | $ 112 |
Identifiable Intangible Asset_3
Identifiable Intangible Assets - Summary of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | $ 17,178 | $ 18,930 |
Accumulated amortization | 12,122 | 13,543 |
Net carrying amount | 5,056 | 5,387 |
Product rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 16,261 | 17,981 |
Accumulated amortization | 11,846 | 13,274 |
Net carrying amount | 4,415 | 4,707 |
Trade names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 576 | 583 |
Accumulated amortization | 276 | 269 |
Net carrying amount | 300 | 314 |
In process research and development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount net of impairment | 341 | 366 |
Accumulated amortization | 0 | 0 |
Net carrying amount | $ 341 | $ 366 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | |||
Goodwill [Line Items] | ||||
Beginning balance | $ 17,177 | $ 17,177 | [1] | |
Goodwill allocation related to the shift of Canada to International Markets | 0 | |||
Goodwill reclassified as assets held for sale | (48) | |||
Translation differences | (122) | |||
Ending balance | 17,007 | [1] | 17,177 | |
North America [Member] | ||||
Goodwill [Line Items] | ||||
Beginning balance | 0 | 6,459 | [1] | |
Goodwill allocation related to the shift of Canada to International Markets | (6,459) | |||
Goodwill reclassified as assets held for sale | 0 | |||
Translation differences | 0 | |||
Ending balance | 0 | [1] | 0 | |
Europe [Member] | ||||
Goodwill [Line Items] | ||||
Beginning balance | 8,466 | 8,466 | [1] | |
Goodwill allocation related to the shift of Canada to International Markets | 0 | |||
Goodwill reclassified as assets held for sale | 0 | |||
Translation differences | (104) | |||
Ending balance | 8,362 | [1] | 8,466 | |
International Markets [Member] | ||||
Goodwill [Line Items] | ||||
Beginning balance | 1,321 | 675 | [1] | |
Goodwill allocation related to the shift of Canada to International Markets | 646 | |||
Goodwill reclassified as assets held for sale | (48) | |||
Translation differences | 6 | |||
Ending balance | 1,279 | [1] | 1,321 | |
Other [Member] | Medis Reporting Units [Member] | ||||
Goodwill [Line Items] | ||||
Beginning balance | 265 | 265 | [1] | |
Goodwill allocation related to the shift of Canada to International Markets | 0 | |||
Goodwill reclassified as assets held for sale | 0 | |||
Translation differences | (10) | |||
Ending balance | 255 | [1] | 265 | |
Other [Member] | Tevas API Reporting Unit [Member] | ||||
Goodwill [Line Items] | ||||
Beginning balance | 1,313 | 1,313 | [1] | |
Goodwill allocation related to the shift of Canada to International Markets | 0 | |||
Goodwill reclassified as assets held for sale | 0 | |||
Translation differences | (14) | |||
Ending balance | 1,299 | [1] | 1,313 | |
United States [Member] | ||||
Goodwill [Line Items] | ||||
Beginning balance | 5,813 | 0 | [1] | |
Goodwill allocation related to the shift of Canada to International Markets | 5,813 | |||
Goodwill reclassified as assets held for sale | 0 | |||
Translation differences | 0 | |||
Ending balance | $ 5,813 | [1] | $ 5,813 | |
[1]Cumulative goodwill impairment as of March 31, 2024 and December 31, 2023 was approximately $28.3 billion. |
Goodwill - Summary of Changes_2
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - USD ($) $ in Billions | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill [Line Items] | ||
Accumulated goodwill impairment | $ 28.3 | $ 28.3 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | Jun. 30, 2022 |
Tevas Europe Reporting Unit [Member] | |
Goodwill [Line Items] | |
Reporting unit percentage of fair value in excess of carrying amount | 3% |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Current maturities of long-term liabilities | $ 3,037 | $ 1,649 |
Total short-term debt | $ 3,060 | 1,672 |
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, 2024 | Dec. 31, 2023 | ||
Debt Instrument [Line Items] | |||
Total senior notes | $ 19,695 | $ 19,889 | |
Less current maturities | (3,037) | (1,649) | |
Less debt issuance costs | [1] | (74) | (80) |
Total senior notes and loans | 16,584 | 18,161 | |
Other Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Total senior notes and loans | $ 0 | 1 | |
Senior notes EUR 1,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.13% | ||
Maturity | 2024 | ||
Total senior notes | $ 676 | 693 | |
Sustainability-linked senior notes EUR 1,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [2],[3] | 4.38% | |
Maturity | [2],[3] | 2030 | |
Total senior notes | [2],[3] | $ 1,620 | 1,656 |
Sustainability-linked senior notes EUR 1,100 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [3],[4] | 3.75% | |
Maturity | [3],[4] | 2027 | |
Total senior notes | [3],[4] | $ 1,188 | 1,215 |
Senior notes EUR 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [5] | 6% | |
Maturity | [5] | 2025 | |
Total senior notes | [5] | $ 443 | 453 |
Senior notes EUR 900 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [5] | 4.50% | |
Maturity | [5] | 2025 | |
Total senior notes | [5] | $ 535 | 547 |
Sustainability-linked senior notes EUR 800 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [3],[6] | 7.38% | |
Maturity | [3],[6] | 2029 | |
Total senior notes | [3],[6] | $ 864 | 884 |
Senior notes EUR 750 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.63% | ||
Maturity | 2028 | ||
Total senior notes | $ 806 | 826 | |
Senior notes EUR 700 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1.88% | ||
Maturity | 2027 | ||
Total senior notes | $ 757 | 771 | |
Sustainability-linked senior notes EUR 500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [3],[7] | 7.88% | |
Maturity | [3],[7] | 2031 | |
Total senior notes | [3],[7] | $ 540 | 552 |
Senior notes USD 3,500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [5] | 3.15% | |
Maturity | [5] | 2026 | |
Total senior notes | [5] | $ 3,374 | 3,374 |
Senior notes USD 2,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 4.10% | ||
Maturity | 2046 | ||
Total senior notes | $ 1,986 | 1,986 | |
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [5],[8] | 6% | |
Maturity | [5],[8] | 2024 | |
Total senior notes | [5],[8] | $ 956 | 956 |
Senior notes USD 1,250 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.75% | ||
Maturity | 2028 | ||
Total senior notes | $ 1,250 | 1,250 | |
Senior notes USD 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [5] | 7.13% | |
Maturity | [5] | 2025 | |
Total senior notes | [5] | $ 427 | 427 |
Sustainability-linked senior notes USD 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [3],[4] | 4.75% | |
Maturity | [3],[4] | 2027 | |
Total senior notes | [3],[4] | $ 1,000 | 1,000 |
Sustainability-linked senior notes USD 1,000 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [2],[3] | 5.13% | |
Maturity | [2],[3] | 2029 | |
Total senior notes | [2],[3] | $ 1,000 | 1,000 |
Sustainability-linked senior notes USD 600 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [3],[9] | 7.88% | |
Maturity | [3],[9] | 2029 | |
Total senior notes | [3],[9] | $ 600 | 600 |
Senior notes USD 789 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 6.15% | ||
Maturity | 2036 | ||
Total senior notes | $ 783 | 783 | |
Sustainability-linked senior notes USD 500 million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | [3],[10] | 8.13% | |
Maturity | [3],[10] | 2031 | |
Total senior notes | [3],[10] | $ 500 | 500 |
Senior notes CHF 350 Million [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 1% | ||
Maturity | 2025 | ||
Total senior notes | $ 390 | $ 416 | |
[1]Debt issuance costs as of March 31, 2024 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]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.[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]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.[7]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.[8]In April 2024, Teva repaid $956 million of its 6% senior notes at maturity.[9]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.[10]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. |
Debt Obligations - Schedule o_3
Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) | ||
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes repaid amount | $ 956 | |
Senior notes maturity percentage | 6% | |
Senior notes EUR 1,500 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,500 | |
Debt Instrument Maturity Year | 2024 | |
Debt instrument, interest rate, effective percentage | 1.13% | |
Senior notes EUR 750 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 750 | |
Debt Instrument Maturity Year | 2028 | |
Debt instrument, interest rate, effective percentage | 1.63% | |
Senior notes EUR 700 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 700 | |
Debt Instrument Maturity Year | 2027 | |
Debt instrument, interest rate, effective percentage | 1.88% | |
Senior notes EUR 1,000 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,000 | |
Debt Instrument Maturity Year | 2025 | [1] |
Debt instrument, interest rate, effective percentage | 6% | [1] |
Debt instrument principal amount of debt extinguished | $ 631 | |
Senior notes EUR 900 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 900 | |
Debt Instrument Maturity Year | 2025 | [1] |
Debt instrument, interest rate, effective percentage | 4.50% | [1] |
Debt instrument principal amount of debt extinguished | $ 432 | |
Senior notes USD 1,000 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,000 | |
Debt Instrument Maturity Year | 2025 | [1] |
Debt instrument, interest rate, effective percentage | 7.13% | [1] |
Debt instrument principal amount of debt extinguished | $ 574 | |
Senior notes USD 3,500 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 3,500 | |
Debt Instrument Maturity Year | 2026 | [1] |
Debt instrument, interest rate, effective percentage | 3.15% | [1] |
Debt instrument principal amount of debt extinguished | $ 122 | |
Senior notes USD 3,000 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 3,000 | |
Debt instrument, interest rate, effective percentage | 2.80% | |
Debt instrument principal amount of debt extinguished | $ 454 | |
Senior notes USD 2,000 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 2,000 | |
Debt Instrument Maturity Year | 2046 | |
Debt instrument, interest rate, effective percentage | 4.10% | |
Senior notes USD 1,250 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,250 | |
Debt Instrument Maturity Year | 2024 | [1],[2] |
Debt instrument, interest rate, effective percentage | 6% | [1],[2] |
Debt instrument principal amount of debt extinguished | $ 293 | |
Senior notes USD 1,250 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,250 | |
Debt Instrument Maturity Year | 2028 | |
Debt instrument, interest rate, effective percentage | 6.75% | |
Senior notes USD 789 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 789 | |
Debt Instrument Maturity Year | 2036 | |
Debt instrument, interest rate, effective percentage | 6.15% | |
Senior notes CHF 350 Million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 350 | |
Debt Instrument Maturity Year | 2025 | |
Debt instrument, interest rate, effective percentage | 1% | |
Sustainability-linked senior notes EUR 1,500 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,500 | |
Debt Instrument Maturity Year | 2030 | [3],[4] |
Debt instrument, interest rate, effective percentage | 4.38% | [3],[4] |
Sustainability-linked senior notes EUR 1,100 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,100 | |
Debt Instrument Maturity Year | 2027 | [4],[5] |
Debt instrument, interest rate, effective percentage | 3.75% | [4],[5] |
Sustainability-linked senior notes USD 1,000 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,000 | |
Debt Instrument Maturity Year | 2027 | [4],[5] |
Debt instrument, interest rate, effective percentage | 4.75% | [4],[5] |
Sustainability Senior Linked Loans Due Two Thousand And Thirty One Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 500 | |
Debt instrument month of maturity | 2031-09 | |
Long term debt bearing fixed interest rate percentage | 8.13% | |
Sustainability Senior Linked Loans Due Two Thousand And Thirty One Two [Member] | Maximum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.30% | |
Sustainability Senior Linked Loans Due Two Thousand And Thirty One Two [Member] | 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 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 600 | |
Debt Instrument Maturity Year | 2029 | [4],[6] |
Debt instrument, interest rate, effective percentage | 7.88% | [4],[6] |
Debt instrument month of maturity | 2029-09 | |
Long term debt bearing fixed interest rate percentage | 7.88% | |
Sustainability-linked senior notes USD 600 million [Member] | 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 [Member] | 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 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 500 | |
Debt instrument month of maturity | 2031-09 | |
Long term debt bearing fixed interest rate percentage | 7.88% | |
Sustainability-linked senior notes EUR 500 million [Member] | 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 [Member] | 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 800 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 800 | |
Debt instrument month of maturity | 2029-09 | |
Long term debt bearing fixed interest rate percentage | 7.38% | |
Sustainability-linked senior notes EUR 800 million [Member] | 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 [Member] | 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 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 500 | |
Debt Instrument Maturity Year | 2031 | [4],[7] |
Debt instrument, interest rate, effective percentage | 8.13% | [4],[7] |
Sustainability-linked senior notes USD 1,000 million [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,000 | |
Debt Instrument Maturity Year | 2029 | [4],[8] |
Debt instrument, interest rate, effective percentage | 7.38% | [4],[8] |
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% | |
[1]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.[2]In April 2024, Teva repaid $956 million of its 6% senior notes at maturity.[3]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.[4]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.[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 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.[7]In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $500 million bearing 8.13% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026.[8]In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 800 million euro bearing 7.38% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026. |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2027 | Dec. 31, 2026 | Sep. 30, 2026 | Jun. 30, 2026 | Mar. 31, 2026 | Mar. 31, 2024 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||||||||
Long term debt currency portion USD | 60% | ||||||||
Long term debt currency portion EUR | 38% | ||||||||
Long term debt currency portion CHF | 2% | ||||||||
Debt Instrument, Covenant Description | Proceeds from borrowings under the RCF can be used for general corporate purposes, including repaying existing debt. As of March 31, 2024, 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. | ||||||||
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] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,800 | ||||||||
Debt Instrument, Maturity Date | Apr. 30, 2026 | ||||||||
Line of credit extension period | one-year | ||||||||
Revolving Credit Facility [Member] | Amended Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage Ratio | 3.50 | 3.75 | 3.75 | 3.75 | 4.00 | 4.00 | 4.00 |
Derivative instruments and he_3
Derivative instruments and hedging activities - Summary of Notional Amounts for Hedged Items (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
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] | $ 0 | $ 169 |
[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. The agreement was terminated in the first quarter of 2024 and resulted in cash proceeds of $16 million. |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
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] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Liability 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 | 8 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Asset derivatives | 36 | 38 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Liability derivatives | (35) | (39) |
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, 2024 | Mar. 31, 2023 | |
Other Comprehensive Income [Member] | ||
Derivative [Line Items] | ||
Other comprehensive income (loss) | $ (117) | $ 127 |
Financial expenses [Member] | ||
Derivative [Line Items] | ||
Financial expenses, net | 250 | 260 |
Cross Currency Swap Cash Flow Hedge [Member] | Other Comprehensive Income [Member] | ||
Derivative [Line Items] | ||
Other comprehensive income (loss) | 1 | (2) |
Cross Currency Swap Cash Flow Hedge [Member] | Financial expenses [Member] | ||
Derivative [Line Items] | ||
Financial expenses, net | $ (8) | $ 1 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Summary of Pre-tax (Gains) Losses From Derivatives Not Designated in as Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Revenues [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ (3,819) | $ (3,661) |
Net Revenues [Member] | Not Designated as Hedging Instrument, Trading [Member] | ||
Derivative [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | 0 | 0 |
Net Revenues [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | (13) | 6 |
Financial expenses [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | 250 | 260 |
Financial expenses [Member] | Not Designated as Hedging Instrument, Trading [Member] | ||
Derivative [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | (10) | (13) |
Financial expenses [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 0 | $ 0 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||||||
Nov. 07, 2023 | Sep. 30, 2023 | Nov. 07, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Jul. 11, 2022 | |
Derivative [Line Items] | |||||||||
Revenues other than USD | 50% | ||||||||
Derivative, negative impact | $ 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 | $ 7 | $ 11 | |||||||
Derivative, Gain on Derivative | 13 | $ 6 | |||||||
Derivative, Cash Received on Hedge | 16 | ||||||||
Accounts Receivable, Net, Current | $ 3,456 | $ 3,408 | |||||||
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Liabilities | ||||||||
Supplier finance program obligation | $ 99 | $ 108 | |||||||
Derivative notional amount decrease | $ 125 | ||||||||
Accounts Receivable Securitization Facility [Member] | |||||||||
Derivative [Line Items] | |||||||||
Accounts Receivable, Net, Current | $ 391 | $ 437 | |||||||
Accounts Receivable Securitization Facility [Member] | Mizuho Bank [Member] | November 2025 [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ 250 | ||||||||
Accounts Receivable Securitization Facility [Member] | Mizuho Bank [Member] | November 2023 [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ 750 | ||||||||
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount increase | 250 | ||||||||
Derivative notional amount | $ 1,000 | $ 875 | |||||||
Derivatives term of contract | 3 years | ||||||||
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | November 2025 [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount decrease | $ 500 | $ 500 | |||||||
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | November 2023 [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ 1,000 |
Legal Settlements and Loss Co_2
Legal Settlements and Loss Contingencies - Additional Information (Detail) € in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | |
Loss Contingencies [Line Items] | ||||
Legal settlements and loss contingencies, expenses | $ 106 | $ 233 | ||
Accrued amount for legal settlements and loss contingencies | $ 4,669 | $ 4,771 | € 60.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 48 Months Ended | ||||||||||||||
Dec. 31, 2023 USD ($) | Nov. 09, 2022 USD ($) | Jun. 02, 2022 USD ($) | Jul. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2013 USD ($) | Apr. 30, 2013 USD ($) | Mar. 31, 2024 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2014 USD ($) | Aug. 21, 2022 USD ($) | Mar. 28, 2024 USD ($) | Aug. 21, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Jul. 08, 2021 USD ($) | Aug. 31, 2019 USD ($) | Jul. 31, 2008 USD ($) | Feb. 28, 2005 USD ($) | |
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Annual sales at the time of settlement | $ 700,000,000 | $ 350,000,000 | |||||||||||||||||
Annual sales of Effexor | $ 2,600,000,000 | ||||||||||||||||||
Annual sales of Lamictal | $ 2,300,000,000 | $ 950,000,000 | |||||||||||||||||
Annual sales of Niaspan | $ 1,100,000,000 | $ 416,000,000 | |||||||||||||||||
Litigation settlement amount | $ 4,250,000,000 | ||||||||||||||||||
Litigation settlement amount awarded distribution period | 13 years | ||||||||||||||||||
Annual sales of Copaxone | $ 373,000,000 | ||||||||||||||||||
Generic modafinil, and imposed fines amount | $ 4,771,000,000 | 4,669,000,000 | $ 4,771,000,000 | € 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 | ||||||||||||||||||
Litigation Settlement Amount Distributable In Kind | 1,200,000,000 | ||||||||||||||||||
Accrual for Environmental Loss Contingencies | $ 300,000,000,000 | ||||||||||||||||||
Loss Contingencies On Environmental Laws Penalty | $ 1,400,000 | ||||||||||||||||||
Percentage of the litigating subdivisions have chosen to participate in Teva's nationwide settlement | 99% | ||||||||||||||||||
Other commitment | $ 150,000,000 | ||||||||||||||||||
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 | ||||||||||||||||||
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 | ||||||||||||||||||
NEVADA | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Loss Contingency, Settlement Agreement Terms | 20 years | ||||||||||||||||||
Payment | $ 193,000,000 | ||||||||||||||||||
Maximum [Member] | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Damage claimed | $ 1,000,000,000 | ||||||||||||||||||
Deferred Prosecution Agreement With U.S. Department of Justice [Member] | Donation of Clotrimazole and Tobramycin [Member] | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Other commitment | $ 50,000,000 | ||||||||||||||||||
Deferred Prosecution Agreement With U.S. Department of Justice [Member] | Fine for Violating the Antitrust Laws [Member] | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Other commitment, to be paid, year five | 135,000,000 | ||||||||||||||||||
Other commitment to pay for each year | 22,500,000 | ||||||||||||||||||
Other commitment | $ 225,000,000 | ||||||||||||||||||
Opioid Litigation [Member] | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Loss contingency accrual, product liability, undiscounted, to be paid, year five | 393,000,000 | ||||||||||||||||||
Loss contingency accrual, product liability, undiscounted, to be paid, year four | 374,000,000 | ||||||||||||||||||
Loss contingency accrual, product liability, undiscounted, to be paid, year three | 368,000,000 | ||||||||||||||||||
Loss contingency accrual, product liability, undiscounted, to be paid, year two | 364,000,000 | ||||||||||||||||||
Loss contingency accrual, product liability, undiscounted, to be paid, year one | 418,000,000 | ||||||||||||||||||
Modafinil Settlement Agreement [Member] | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Loss contingency aggregate payments paid | $ 74,000,000 | ||||||||||||||||||
Ontario Teachers Securities Litigation [Member] | Settled Litigation [Member] | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Litigation settlement amount | $ 420,000,000 | ||||||||||||||||||
Litigation With US Hospitals And Other Healthcare Providers [Member] | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Litigation settlement amount | $ 126,000,000 | ||||||||||||||||||
Litigation settlement amount awarded distribution period | 18 years | ||||||||||||||||||
Product WAC Value | $ 49,000,000 | ||||||||||||||||||
Product WAC Term | 7 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 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Oct. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 12, 2022 | ||
Income Tax [Line Items] | ||||||
Expected impairment of income tax benefit | $ 126 | |||||
Tax benefit | (52) | $ (19) | ||||
Pre-tax income (loss) | [1] | $ (467) | $ (272) | |||
Minimum tax rate | 15% | 15% | ||||
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 | |||||
[1]The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1c. |
Other assets impairments, res_3
Other assets impairments, restructuring and other items - Schedule of Other Assets Impairments, Restructuring and Other Items (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Restructuring and Impairment Costs [Line Items] | |||
Impairments of long-lived tangible assets | [1] | $ 599 | $ 10 |
Contingent consideration | [2] | 79 | 35 |
Restructuring | 13 | 56 | |
Other | (18) | 9 | |
Total | $ 673 | $ 110 | |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other assets impairments, restructuring and other items | ||
[1]Including expenses related to exit and disposal activities.[2]The contingent consideration presented in the table above for the three months ended March 31, 2023 has been revised as discussed in note 1c. |
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, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 13 | $ 56 |
Employee termination [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 7 | 23 |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 6 | $ 33 |
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, 2024 | Mar. 31, 2023 | ||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | $ (82) | $ (119) | |
Provision | (13) | (56) | |
Utilization and other | [1] | 39 | 52 |
Ending balance | (57) | (123) | |
Employee termination costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | (75) | (112) | |
Provision | (7) | (23) | |
Utilization and other | [1] | 32 | 25 |
Ending balance | (50) | (110) | |
Other Exit and Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | (7) | (7) | |
Provision | (6) | (33) | |
Utilization and other | [1] | 7 | 27 |
Ending balance | $ (6) | $ (13) | |
[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, 2024 | Mar. 31, 2023 | ||
Restructuring and Impairment Costs [Line Items] | |||
Impairments of property, plant and equipment | $ 599 | $ 10 | |
Business combination contingent consideration arrangements change in amount of contingent consideration liability | [1] | 79 | 35 |
Restructuring costs | $ 13 | $ 56 | |
[1]The contingent consideration presented in the table above for the three months ended March 31, 2023 has been revised as discussed in note 1c. |
Earnings (Loss) per Share - Add
Earnings (Loss) per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Basic | $ (0.12) | $ (0.2) |
Diluted | $ (0.12) | $ (0.2) |
Weighted average number of shares used in the computation of diluted earnings (loss) per share | 1,123,000,000 | 1,115,000,000 |
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, 2024 | Mar. 31, 2023 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ (2,697) | |||
Ending Balance | (2,775) | |||
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (2,384) | $ (2,514) | ||
Other comprehensive income (loss) before reclassifications | (89) | 122 | ||
Net other comprehensive income/(loss) before tax | (89) | 122 | ||
Corresponding income tax | 5 | 7 | ||
Net other comprehensive income/(loss) after tax | (84) | [1] | 129 | [2] |
Ending Balance | (2,468) | (2,385) | ||
Derivative Financial Instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (266) | (295) | ||
Other comprehensive income (loss) before reclassifications | 0 | |||
Amounts reclassified to the statements of income | 7 | 8 | ||
Net other comprehensive income/(loss) before tax | 7 | 8 | ||
Net other comprehensive income/(loss) after tax | 7 | [1] | 8 | [2] |
Ending Balance | (259) | (287) | ||
Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (46) | (28) | ||
Amounts reclassified to the statements of income | (1) | (1) | ||
Net other comprehensive income/(loss) before tax | (1) | (1) | ||
Net other comprehensive income/(loss) after tax | (1) | [1] | (1) | [2] |
Ending Balance | (47) | (29) | ||
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (2,697) | (2,838) | ||
Other comprehensive income (loss) before reclassifications | (89) | 122 | ||
Amounts reclassified to the statements of income | 6 | 7 | ||
Net other comprehensive income/(loss) before tax | (83) | 129 | ||
Corresponding income tax | 5 | 7 | ||
Net other comprehensive income/(loss) after tax | (78) | [1] | 136 | [2] |
Ending Balance | $ (2,775) | $ (2,701) | ||
[1]Amounts do not include a $42 million loss from foreign currency translation adjustments attributable to non-controlling interests.[2]Amounts do not include a $9 million loss from foreign currency translation adjustments attributable to non-controlling interests. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation attributable to non-controlling interests | $ 42 | $ 9 |
Segments - Summary of Segment P
Segments - Summary of Segment Profit (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Amounts Allocated To Segments [Abstract] | |||
Consolidated operating income (loss) | [1] | $ (218) | $ (13) |
Amounts Not Allocated To Segments [Abstract] | |||
Amortization | 152 | 165 | |
Other asset impairments, restructuring and other items | [1] | 673 | 110 |
Intangible assets impairments | 80 | 178 | |
Legal settlements and loss contingencies | 106 | 233 | |
Other Unallocated Amounts | 99 | 112 | |
Revenues | 3,819 | 3,661 | |
Gross profit | 1,771 | 1,582 | |
R&D expenses | 242 | 234 | |
S&M expenses | 608 | 546 | |
G&A expenses | 278 | 296 | |
Segment profit | [1] | (218) | (13) |
Financial expenses, net | 250 | 260 | |
Consolidated income (loss) before income taxes | [1] | (467) | (272) |
Europe [Member] | |||
Amounts Allocated To Segments [Abstract] | |||
Consolidated operating income (loss) | 423 | 345 | |
Amounts Not Allocated To Segments [Abstract] | |||
Revenues | 1,272 | 1,184 | |
Gross profit | 738 | 655 | |
R&D expenses | 56 | 53 | |
S&M expenses | 194 | 187 | |
G&A expenses | 65 | 70 | |
Other (income) expense | 1 | ||
Segment profit | 423 | 345 | |
International Markets [Member] | |||
Amounts Allocated To Segments [Abstract] | |||
Consolidated operating income (loss) | 117 | 108 | |
Amounts Not Allocated To Segments [Abstract] | |||
Revenues | 597 | 581 | |
Gross profit | 297 | 285 | |
R&D expenses | 28 | 27 | |
S&M expenses | 118 | 113 | |
G&A expenses | 35 | 38 | |
Other (income) expense | (1) | ||
Segment profit | 117 | 108 | |
United States [Member] | |||
Amounts Allocated To Segments [Abstract] | |||
Consolidated operating income (loss) | 350 | 338 | |
Amounts Not Allocated To Segments [Abstract] | |||
Revenues | 1,725 | 1,677 | |
Gross profit | 858 | 789 | |
R&D expenses | 154 | 149 | |
S&M expenses | 261 | 207 | |
G&A expenses | 93 | 95 | |
Other (income) expense | 1 | ||
Segment profit | 350 | 338 | |
Segments and Other Activities [Member] | |||
Amounts Allocated To Segments [Abstract] | |||
Consolidated operating income (loss) | 892 | 785 | |
Amounts Not Allocated To Segments [Abstract] | |||
Segment profit | 892 | 785 | |
Other Segments [Member] | |||
Amounts Allocated To Segments [Abstract] | |||
Consolidated operating income (loss) | 2 | (6) | |
Amounts Not Allocated To Segments [Abstract] | |||
Segment profit | 2 | (6) | |
Corporate Segment [Member] | |||
Amounts Allocated To Segments [Abstract] | |||
Consolidated operating income (loss) | 890 | 791 | |
Amounts Not Allocated To Segments [Abstract] | |||
Segment profit | $ 890 | $ 791 | |
[1]The data presented for the prior period have been revised to reflect a revision in the presentation of these items in the consolidated financial statements. For additional information see note 1c. |
Segments - Schedule of Revenues
Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Product Information [Line Items] | ||
Revenues | $ 3,819 | $ 3,661 |
Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 1,272 | 1,184 |
International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 597 | 581 |
United States [Member] | ||
Product Information [Line Items] | ||
Revenues | 1,725 | 1,677 |
Generic products [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 1,004 | 932 |
Generic products [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 477 | 477 |
Generic products [Member] | United States [Member] | ||
Product Information [Line Items] | ||
Revenues | 808 | 747 |
AJOVY [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 51 | 36 |
AJOVY [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 17 | 13 |
AJOVY [Member] | United States [Member] | ||
Product Information [Line Items] | ||
Revenues | 45 | 46 |
AUSTEDO [Member] | United States [Member] | ||
Product Information [Line Items] | ||
Revenues | 282 | 170 |
BENDEKA and TREANDA [Member] | United States [Member] | ||
Product Information [Line Items] | ||
Revenues | 46 | 62 |
COPAXONE [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 57 | 59 |
COPAXONE [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 12 | 17 |
COPAXONE [Member] | United States [Member] | ||
Product Information [Line Items] | ||
Revenues | 30 | 71 |
Anda [Member] | United States [Member] | ||
Product Information [Line Items] | ||
Revenues | 381 | 424 |
Respiratory Product [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 66 | 68 |
Other [Member] | Europe [Member] | ||
Product Information [Line Items] | ||
Revenues | 94 | 89 |
Other [Member] | International Markets [Member] | ||
Product Information [Line Items] | ||
Revenues | 91 | 74 |
Other [Member] | United States [Member] | ||
Product Information [Line Items] | ||
Revenues | $ 133 | $ 158 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2024 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, 2024 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | $ 8 | ||
Contingent consideration | [1] | $ (567) | (517) |
Total | 2,476 | $ 2,765 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | ||
Asset Derivatives - Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 36 | $ 38 | |
Convertible Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 40 | 40 | |
Liabilities Derivatives Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | (35) | (39) | |
Money Markets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 1,574 | 1,704 | |
Cash, Deposits and Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 1,417 | 1,522 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 8 | 7 | |
Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 3 | 1 | |
Restricted Cash [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash | 1 | ||
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 3,002 | 3,235 | |
Level 1 [Member] | Money Markets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 1,574 | 1,704 | |
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 | 1,417 | 1,522 | |
Level 1 [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 8 | 7 | |
Level 1 [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | 3 | 1 | |
Level 1 [Member] | Restricted Cash [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash | 1 | ||
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 8 | ||
Total | 1 | 7 | |
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | 36 | 38 | |
Level 2 [Member] | Liabilities Derivatives Options and Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | (35) | (39) | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | [1] | (567) | (517) |
Total | (527) | (477) | |
Level 3 [Member] | Convertible Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | $ 40 | 40 | |
Level 3 [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in securities | $ 0 | ||
[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, 2024 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Percentage of increase decrease in contingent consideration liabilities | 1% |
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 | 8.8 |
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, 2024 | Mar. 31, 2023 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value at the beginning of the period | $ (477) | $ (250) | |
Fair value at the end of the period | (527) | (261) | |
Allergan transaction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjustments to provisions for contingent consideration | [1] | (64) | (24) |
Settlement of contingent consideration | 13 | 2 | |
Eagle Transaction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjustments to provisions for contingent consideration | (14) | (11) | |
Settlement of contingent consideration | 15 | 21 | |
Novetide transaction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjustments to provisions for contingent consideration | (1) | (1) | |
Settlement of contingent consideration | $ 1 | $ 2 | |
[1]The financial data presented in the tables above with respect to adjustments to provisions for contingent consideration related to Allergan for the three months ended March 31, 2023 have been revised as discussed in note 1c. |
Fair Value Measurement - Summ_3
Fair Value Measurement - Summary of Financial Instrument Measured on a Basis Other Than Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | [1] | $ 18,837 | $ 18,865 |
Senior Notes And Sustainability Linked Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | [1] | 15,786 | 17,214 |
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] | $ 3,051 | $ 1,651 |
[1]The fair value was estimated based on quoted market prices. |