TEVA PHARMACEUTICAL INDUSTRIES LTD, 10-K filed on 2/12/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Jun. 30, 2023
Cover [Abstract]    
Document Type 10-K  
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Transition Report false  
Document Period End Date Dec. 31, 2023  
Document Fiscal Period Focus FY  
Document Annual 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 1,121,094,011  
Title of 12(b) Security American Depositary Shares, each representing one Ordinary Share  
Trading Symbol TEVA  
Security Exchange Name NYSE  
Entity File Number 001-16174  
Entity Incorporation, State or Country Code L3  
Entity Tax Identification Number 00-0000000  
Entity Address, Address Line One 124 Dvora HaNevi’a St.  
Entity Address, City or Town Tel Aviv  
Entity Address, Postal Zip Code 6944020  
Entity Address, Country IL  
City Area Code +972 (3)  
Local Phone Number 914-8213  
Entity Filer Category Large Accelerated Filer  
Smaller Reporting Company false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Public Float   $ 8,380
ICFR Auditor Attestation Flag true  
Auditor Name Kesselman & Kesselman  
Auditor Firm ID 1309  
Auditor Location Israel  
Document Financial Statement Error Correction [Flag] true  
Document Financial Statement Restatement Recovery Analysis [Flag] true  
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 3,226 $ 2,801
Accounts receivables, net of allowance for credit losses of $95 million and $91 million as of December 31, 2023 and December 31, 2022, respectively 3,408 3,696
Inventories 4,021 3,833
Prepaid expenses 1,255 1,162
Other current assets 504 549
Assets held for sale 70 10
Total current assets 12,485 12,051
Deferred income taxes 1,812 1,458
Other non-current assets 470 441
Property, plant and equipment, net 5,750 5,739
Operating lease right-of-use assets 397 419
Identifiable intangible assets, net 5,387 6,270
Goodwill [1] 17,177 17,633
Total assets 43,479 44,011
Current liabilities:    
Short-term debt 1,672 2,109
Sales reserves and allowances 3,535 3,750
Accounts payables 2,602 1,887
Employee-related obligations 611 566
Accrued expenses 2,771 2,151
Other current liabilities 1,056 1,005
Total current liabilities 12,247 11,469
Long-term liabilities:    
Deferred income taxes 606 548
Other taxes and long-term liabilities 4,019 3,945
Senior notes and loans 18,161 19,103
Operating lease liabilities 320 349
Total long-term liabilities 23,106 23,944
Commitments and contingencies, see note 12  
Total liabilities 35,353 35,413
Teva shareholders' equity:    
Ordinary shares of NIS 0.10 par value per share; December 31, 2023 and December 31, 2022: authorized 2,495 million shares; issued 1,227 million shares and 1,217 million shares, respectively 57 57
Additional paid-in capital 27,807 27,688
Accumulated deficit (13,534) (12,975)
Accumulated other comprehensive loss (2,697) (2,838)
Treasury shares as of December 31, 2023 and December 31, 2022: 106 million ordinary shares (4,128) (4,128)
Stockholders' equity attributable to Teva shareholders 7,506 7,804
Non-controlling interests 620 794
Total equity 8,126 8,598
Total liabilities and equity $ 43,479 $ 44,011
[1] Cumulative goodwill impairment as of December 31, 2023, December 31, 2022 and December 31, 2021 was approximately $28.3 billion, $27.6 billion and $25.6 billion respectively.
v3.24.0.1
Consolidated Balance Sheets (Parenthetical)
$ in Millions
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2023
₪ / shares
Dec. 31, 2022
USD ($)
shares
Dec. 31, 2022
₪ / shares
Allowance for credit losses | $ $ 95   $ 91  
Common stock, par or stated value per share | ₪ / shares   ₪ 0.1   ₪ 0.1
Ordinary shares, authorized 2,495,000,000   2,495,000,000  
Ordinary shares, issued 1,227,000,000   1,217,000,000  
Treasury shares 106,000,000   106,000,000  
v3.24.0.1
Consolidated Statements of Income (Loss) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Net revenues $ 15,846 $ 14,925 $ 15,878
Cost of sales 8,200 7,952 8,284
Gross profit 7,645 6,973 7,594
Research and development expenses, net 953 838 967
Selling and marketing expenses 2,336 2,265 2,429
General and administrative expenses 1,162 1,180 1,099
Intangible assets impairments 350 355 424
Goodwill impairment 700 2,045 0
Other asset impairments, restructuring and other items [1] 718 512 341
Legal settlements and loss contingencies 1,043 2,082 717
Other income (49) (107) (98)
Operating (loss) income [1] 433 (2,197) 1,716
Financial expenses – net 1,057 966 1,058
Income (loss) before income taxes [1],[2] (624) (3,163) 658
Income taxes (benefit) [2] (7) (643) 211
Share in (profits) losses of associated companies – net (2) (21) (9)
Net income (loss) (615) (2,499) 456
Net income (loss) attributable to non-controlling interests (56) (53) 39
Net income (loss) attributable to Teva $ (559) $ (2,446) $ 417
Earnings (loss) per share attributable to ordinary shareholders:      
Basic $ (0.5) $ (2.2) $ 0.38
Diluted $ (0.5) $ (2.2) $ 0.38
Weighted average number of shares (in millions):      
Basic 1,119 1,110 1,102
Diluted 1,119 1,110 1,107
[1] The data presented for 2022 have been revised to reflect a revision in relation to a contingent consideration liability and related expenses in the consolidated financial statements. See note 1b.
[2] The financial data presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Net income (loss) $ (615) $ (2,499) $ 456
Other comprehensive income (loss), net of tax:      
Currency translation adjustment 80 (356) (462)
Unrealized gain (loss) on derivative financial instruments, net 29 29 39
Unrealized gain (loss) on defined benefit plans, net (18) 57 32
Total other comprehensive income (loss) 91 (270) (391)
Total comprehensive income (loss) (524) (2,769) 65
Comprehensive income (loss) attributable to non-controlling interests (106) (169) (68)
Comprehensive income (loss) attributable to Teva $ (418) $ (2,600) $ 133
v3.24.0.1
Consolidated Statements of Changes in Equity - USD ($)
shares in Millions, $ in Millions
Total
Ordinary Shares [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Treasury Shares [Member]
Total Teva Shareholders' Equity [Member]
Non-controlling Interests [Member]
Beginning balance at Dec. 31, 2020 $ 11,061 $ 57 $ 27,443 $ (10,946) $ (2,399) $ (4,128) $ 10,026 $ 1,035
Beginning balance, shares at Dec. 31, 2020   1,202            
Net income (loss) 456     417     417 39
Other comprehensive income (loss) (391)       (283)   (283) (107)
Issuance of Shares, shares   7            
Stock-based compensation expense 119   119       119  
Transactions with non-controlling interests (2)             (2)
Ending balance at Dec. 31, 2021 11,244 $ 57 27,561 (10,529) (2,683) (4,128) 10,278 966
Ending balance, shares at Dec. 31, 2021   1,209            
Net income (loss) (2,499)     (2,446)     (2,446) (53)
Other comprehensive income (loss) (270)       (154)   (154) (116)
Issuance of Shares, value 1   1       1  
Issuance of Shares, shares   8            
Stock-based compensation expense 124   124       124  
Transactions with non-controlling interests (2)             (2)
Ending balance at Dec. 31, 2022 8,598 $ 57 27,688 (12,975) (2,838) (4,128) 7,804 794
Ending balance, shares at Dec. 31, 2022   1,217            
Beginning balance at Jun. 30, 2022 9,810              
Net income (loss) 63              
Ending balance at Sep. 30, 2022 9,506              
Net income (loss) (1,333)              
Ending balance at Dec. 31, 2022 8,598 $ 57 27,688 (12,975) (2,838) (4,128) 7,804 794
Ending balance, shares at Dec. 31, 2022   1,217            
Net income (loss) (253)              
Ending balance at Mar. 31, 2023 8,504              
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) (615)     (559)     (559) (56)
Other comprehensive income (loss) 91       141   141 (50)
Issuance of Shares, shares   10            
Stock-based compensation expense 121   121       121  
Dividend to non-controlling interests [1] (68)             (68)
Ending balance at Dec. 31, 2023 8,126 $ 57 27,807 (13,534) (2,697) (4,128) 7,506 620
Ending balance, shares at Dec. 31, 2023   1,227            
Beginning balance at Mar. 31, 2023 8,504              
Net income (loss) (905)              
Ending balance at Jun. 30, 2023 7,592              
Net income (loss) 78              
Ending balance at Sep. 30, 2023 7,387              
Ending balance at Dec. 31, 2023 $ 8,126 $ 57 $ 27,807 $ (13,534) $ (2,697) $ (4,128) $ 7,506 $ 620
Ending balance, shares at Dec. 31, 2023   1,227            
[1] Mainly in connection with a declaration of dividends to non-controlling interests in Teva’s joint venture in Japan.
v3.24.0.1
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Maximum [Member] | Ordinary Shares [Member]      
Exercise of options by employees and vested RSUs $ 0.5 $ 0.5 $ 0.5
v3.24.0.1
Consolidated Statements of Cash Flows
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Operating activities:      
Net income (loss) $ (615) $ (2,499) $ 456
Adjustments to reconcile net income (loss) to net cash provided by operations:      
Impairment of goodwill, long-lived assets and assets held for sale 1,078 2,447 584
Depreciation and amortization 1,153 1,308 1,330
Net change in operating assets and liabilities (72) 1,355 (1,701)
Deferred income taxes — net and uncertain tax positions (317) (1,064) (120)
Stock-based compensation 121 124 119
Research and development in process 0 0 10
Net loss (gain) from investments and from sale of business and long-lived assets (41) 10 104
Other items 61 (91) 16
Net cash provided by (used in) operating activities 1,368 1,590 798
Investing activities:      
Beneficial interest collected in exchange for securitized trade receivables 1,477 1,140 1,648
Purchases of property, plant and equipment and intangible assets (526) (548) (562)
Proceeds from sale of business and long-lived assets 68 68 311
Purchases of investments and other assets (46) (1) (47)
Proceeds from sale of investments 0 4 172
Acquisitions of businesses, net of cash acquired 0 (7) 0
Other investing activities (5) 0 1
Net cash provided by (used in) investing activities 968 656 1,523
Financing activities:      
Repayment of senior notes and loans and other long term liabilities (4,152) (1,369) (6,649)
Proceeds from senior notes, net of issuance costs 2,451 0 4,974
Proceeds from short term debt 700 0 700
Repayment of short term debt (700) 0 (700)
Redemption of convertible debentures 0 0 (491)
Other financing activities (212) (118) (6)
Net cash provided by (used in) financing activities (1,913) (1,487) (2,172)
Translation adjustment on cash and cash equivalents (30) (123) (128)
Net change in cash, cash equivalents and restricted cash 393 636 21
Balance of cash, cash equivalents and restricted cash at beginning of year 2,834 2,198 2,177
Balance of cash, cash equivalents and restricted cash at end of year 3,227 2,834 2,198
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets:      
Cash and cash equivalents 3,226 2,801 2,165
Restricted cash included in other current assets 1 33 33
Total cash, cash equivalents and restricted cash shown in the statement of cash flows 3,227 2,834 2,198
Non-cash financing and investing activities:      
Beneficial interest obtained in exchange for securitized trade receivables 1,446 1,189 1,635
Dividend declared to non-controlling interests 67 0 0
Cash paid during the year for:      
Interest 1,078 948 913
Income taxes, net of refunds 298 543 495
Net change in operating assets and liabilities:      
Other current assets (1,525) (828) (2,271)
Trade payables, accrued expenses, employee-related obligations and other liabilities 1,588 2,012 764
Trade receivables net of sales reserves and allowances 12 334 (574)
Inventories (147) (163) 380
Net Change In Items Comprising Supplemental Disclosure Of Cash Flow Information $ (72) $ 1,355 $ (1,701)
v3.24.0.1
Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
Significant Accounting Policies
NOTE 1 — Significant accounting policies:
a. General:
Operations
Teva Pharmaceutical Industries Limited (the “Parent Company”), headquartered in Israel, together with its subsidiaries and associated companies (the “Company,” “Teva” or the “Group”), is engaged in the development, manufacturing, marketing and distribution of generics, innovative medicines and biopharmaceuticals. The majority of the Group’s revenues are in the United States and Europe.
Basis of presentation and use of estimates
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).
In preparing the Company’s consolidated financial statements, management is required to make estimates and 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. 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. 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, contingent consideration 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.
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. As part of the Company’s annual goodwill analysis performed in the second quarter of 2023, it identified an increase in the discount rate, which led to a goodwill impairment charge in its International Markets reporting unit. This increase was due to an increase in certain components of the discount rate that were partially attributed to higher risk associated with country-specific characteristics of several countries, such as Russia, that might be a consequence of the conflict. Other than its impact on the goodwill impairment charge described above, during the year ended December 31, 2023, the impact of the Russia-Ukraine conflict on Teva’s results of operations and financial condition was immaterial. See also note 7.
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 year ended December 31, 2023, the impact of this war on Teva’s results of operations and financial condition was immaterial, but such impact may increase, which could be material, as a result of the continuation, escalation or expansion of such war.
 
 
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.
Functional currency
A major part of the Group’s operations is carried out by the Company in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”).
The functional currency of certain subsidiaries and associated companies is their local currency. The financial statements of those companies are included in the consolidated financial statements, translated into U.S. dollars. Assets and liabilities are translated at
year-end
exchange rates, while revenues and expenses are translated at monthly average exchange rates during the year. Differences resulting from translation are presented as other comprehensive income (loss) in the consolidated statements of comprehensive income (loss).
In the event of a divestiture of a foreign subsidiary, the related foreign currency translation results net of related income taxes are reversed from equity to income. Foreign currency exchange gains and losses are included in net income (loss).
Principles of consolidation
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, joint ventures and variable interest entities (“VIEs”) for which the Company is considered the primary beneficiary. For those consolidated entities where Teva owns less than 100%, the outside shareholders’ interests are shown as
non-controlling
interests
 
in equity. Investments in affiliates over which the Company has significant influence but not a controlling interest, are carried on the equity basis.
For VIEs, the Company performs an analysis to determine whether the variable interests give a controlling financial interest in a VIE. The Company periodically reassesses whether it controls its VIEs.
Intercompany transactions and balances are eliminated on consolidation; profits from intercompany sales, not yet realized outside the Group, are also eliminated.
 
b.
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
calculation of the contingent consideration liability as of and for the year ended December 31, 2022, and the quarterly and
year-to-date
periods ended June 30, September 30 and December 31, 2022, and March 31, June 30 and September 30, 2023. These errors did not impact the Company’s actual royalty payments, as well as total cash flows from operating activities, financing activities and investing activities in the periods stated above.
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 impact of the revision on the Company’s unaudited quarterly financial data for 2023 and 2022 is presented in note 22.
 
 
The tables below present the impact of the revision on the line items within the Company’s consolidated financial statements as of and for the year ended December 31, 2022:
 
Consolidated Statements of Income
(loss)
  
Year ended December 31, 2022
 
 
Consolidated Balance Sheets
  
December 31, 2022
 
 
  
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
  
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
  
U.S $ in millions (except per share
amounts)
 
 
 
  
U.S $ in millions (except per share
amounts)
 
Other asset impairments, restructuring and other items
  
$
414
 
 
 
98
 
 
 
512
 
 
Deferred income taxes
  
$
1,453
 
 
 
5
 
 
 
1,458
 
Operating income (loss)
  
 
(2,099
) 
 
 
(98
) 
 
 
(2,197
) 
 
Total assets
  
 
44,006
 
 
 
5
 
 
 
44,011
 
Income (loss) before income taxes
  
 
(3,065
) 
 
 
(98
) 
 
 
(3,163
) 
 
Other taxes and long-term liabilities
  
 
3,847
 
 
 
98
 
 
 
3,945
 
Income taxes (benefit)
  
 
(638
) 
 
 
(5
) 
 
 
(643
) 
 
Total long-term liabilities
  
 
23,846
 
 
 
98
 
 
 
23,944
 
Net income (loss)
  
 
(2,406
) 
 
 
(93
) 
 
 
(2,499
) 
 
Total liabilities
  
 
35,315
 
 
 
98
 
 
 
35,413
 
Net income (loss) attributable to Teva
  
 
(2,353
) 
 
 
(93
) 
 
 
(2,446
) 
 
Teva shareholders’ equity:
  
 
 
Earnings (loss) per share attributable to ordinary shareholders:
  
 
 
 
Accumulated deficit
  
 
(12,882
) 
 
 
(93
) 
 
 
(12,975
) 
Basic
  
$
(2.12
) 
 
 
(0.08
) 
 
 
(2.20
) 
 
Total equity
  
 
8,691
 
 
 
(93
) 
 
 
8,598
 
Diluted
  
$
(2.12
) 
 
 
(0.08
) 
 
 
(2.20
) 
 
Total liabilities and equity
  
$
44,006
 
 
 
5
 
 
 
44,011
 
 
c.
New accounting pronouncements
Recently adopted accounting pronouncements
In September 2022, the FASB issued ASU
2022-04
“Liabilities — Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations (Subtopic
405-50)”.
This guidance is intended to address requests from stakeholders for information about an entity’s use of supplier finance programs and their effect on the entity’s working capital, liquidity and cash flows. The guidance is effective for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information requirement, which is effective for the fiscal years beginning after December 15, 2023. For further information, see note 10g.
In October 2021, the FASB issued ASU
2021-08
“Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The Company adopted the new accounting standard effective January 1, 2023 and the guidance was applied prospectively to all business combinations with an acquisition date occurring on or after January 2023. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.
Recently issued accounting pronouncements, not yet adopted
In December 2023, the FASB issued ASU
2023-09
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU
2023-09
address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and
 
 
in foreign jurisdictions. ASU
2023-09
is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
In November 2023, the FASB issued ASU
2023-07
“Segment Reporting: Improvements to Reportable Segment Disclosures”. This guidance expands public entities’ segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments are required to be applied retrospectively to all prior periods presented in an entity’s financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements related disclosures.
In October 2023, the FASB issued ASU
2023-06
“Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” which incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification topics, allow investors to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from
Regulation S-X
or
Regulation S-K
becomes effective, with early adoption prohibited. The amendments in this ASU should be applied prospectively. The Company does not expect ASU
2023-06
will have a material impact to its consolidated financial statements.
 
d.
Acquisitions:
Teva’s consolidated financial statements include the operations of acquired businesses from the date of the acquisition’s consummation. Acquired businesses are accounted for using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired IPR&D be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When Teva acquires net assets that do not constitute a business, as defined under U.S. GAAP, no goodwill is recognized and acquired IPR&D is expensed unless it has an alternative future use.
Contingent consideration incurred in a business combination is included as part of the acquisition price and recorded at a probability weighted assessment of its fair value as of the acquisition date. The fair value of the contingent consideration is
re-measured
at each reporting period, with any adjustments in fair value recognized in earnings under other asset impairments, restructuring and other items.
 
e.
Collaborative arrangements:
Collaborative arrangements are contractual arrangements in which the parties are active participants to the arrangement and are exposed to the significant risks and rewards that are dependent on the ultimate commercial success of the endeavor.
 
 
The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to collaborative agreements as gross or net. If the Company is the principal participant in a transaction, revenues and costs are recorded on a gross basis; otherwise, revenues and costs are recorded on a net basis.
Cost reimbursements to the collaborative partner or payments received from the collaborative partner to share these costs pursuant to the terms of the collaborative arrangements are recorded as research and development expenses.
 
f.
Equity investments:
The Company measures equity investments at fair value with changes in fair value recognized in net income. The Company accounts for equity investments that do not have a readily determinable fair value as cost method investments under the measurement alternative to the extent such investments are not subject to consolidation or the equity method. Under the measurement alternative, these financial instruments are carried at cost, less any impairment (assessed quarterly for triggering events), adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. In addition, income is recognized when dividends are received only to the extent they are distributed from net accumulated earnings of the investee. Otherwise, such distributions are considered returns of investment and are recorded as a reduction of the cost of the investment. The Company accounts for equity investments as current when the Company has the intent and ability to sell such assets within the next twelve months.
 
g.
Fair value measurement:
The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.
 
h.
Investment in debt securities:
Investment in securities consists of debt securities classified as
available-for-sale
and recorded at fair value. The fair value of quoted securities is based on their current market value. When debt securities do not have an active market, fair value is determined using a valuation model. This model is based on reference to other instruments with similar characteristics, a discounted cash flow analysis or other pricing models making use of market inputs and relying as little as possible on entity-specific inputs.

 
 
Unrealized gains and losses for
available-for-sale
securities are excluded from earnings and reported net of the related tax effect in the accumulated other comprehensive income component of shareholders’ equity. The Current Expected Credit Loss (CECL) methodology requires the Company to estimate lifetime expected credit losses for all
available-for-sale
debt securities in an unrealized loss position. When estimating a security’s probability of default and the recovery rate, the Company assesses the security’s credit indicators, including credit ratings. If the assessment indicates that an expected credit loss exists, the Company determines the portion of the unrealized loss attributable to credit deterioration and records an allowance for the expected credit loss through the Consolidated Statements of Income. Unrealized gains and any portion of a security’s unrealized loss attributable to
non-credit
losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax.
 
i.
Cash and cash equivalents:
All highly liquid investments, which include short-term bank deposits and money market instruments, that are not restricted as to withdrawal or use, and investment in short-term debentures, the period to maturity of which did not exceed three months at the time of investment, are considered to be cash equivalents.
 
j.
Restricted cash:
Restricted cash represents amounts which are legally restricted to withdrawal or usage and is presented in the Consolidated Balance Sheet under other current assets.
 
k.
Accounts Receivables:
Accounts receivable have been reduced by an allowance for doubtful accounts. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations.
Write-off
activity and recoveries for the periods presented were not material.
 
l.
Concentration of credit risks:
Most of Teva’s cash and cash equivalents, along with investment in securities, at December 31, 2023 were deposited with European, U.S. and Israeli banks and financial institutions and were comprised mainly of cash deposits.
The U.S. market constituted approximately 51% of Teva’s consolidated revenues in 2023. The exposure of credit risks relating to other trade receivables outside the U.S. is limited, due to the relatively large number of group customers and their wide geographic distribution. Teva performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral and from time to time the Company may choose to purchase trade credit insurance.
 
m.
Inventories:
Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials, purchased products, manufactured finished products, products in process and capitalized production costs are determined predominantly on a standard cost basis, approximating actual costs. Other methods which are utilized

 
for determining the value of inventories are moving average, cost basis and the first in first out method. Teva regularly reviews its inventories for obsolescence and other impairment risks and reserves are established when necessary.
Inventories acquired in a business combination are
stepped-up
to their estimated fair value and amortized to cost of sales as that inventory is sold.
 
n.
Long-lived assets:
Teva’s long-lived,
non-current
assets are comprised mainly of goodwill, identifiable intangible assets, property, plant and equipment, and operating lease
right-of-use
(“ROU”) assets. All long-lived assets are monitored for impairment indicators throughout the year. Impairment testing for goodwill and all indefinite-lived intangible assets is performed at least annually. When necessary, charges for impairments of long-lived assets, other than goodwill, are recorded for the amount by which the fair value is less than the carrying value of these assets.
Goodwill
Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any
non-controlling
interest in the acquiree, over the assigned fair values of the identifiable net assets acquired. Goodwill is not amortized, and is assigned to reporting units and tested for impairment at least on an annual basis, in the second quarter of the fiscal year.
The goodwill impairment test is performed according to the following principles:
 
  1.
An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.
 
  2.
If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying mount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized.
An interim goodwill impairment test may be required in advance or after of the annual impairment test if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. For example, a substantial decline in the Company’s market capitalization, unexpected adverse business conditions, economic factors and unanticipated competitive activities may indicate that an interim impairment test is required. In the event that the Company’s market capitalization declines below its book value, the Company considers the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists.
Identifiable intangible assets
Identifiable intangible assets are comprised of definite life intangible assets and indefinite life intangible assets.
Definite life intangible assets consist mainly of acquired product rights and other rights relating to products for which marketing approval was received from the U.S. Food and Drug Administration (“FDA”) or the equivalent agencies in other countries. These assets are amortized mainly using the straight-line method over their estimated period of useful life, or based on economic benefit models, if more appropriate, which is determined by identifying the period and manner in which substantially all of the cash flows are expected to be

 
generated. Amortization of acquired developed products is recorded under cost of sales. Amortization of marketing and distribution rights is recorded under selling and marketing (“S&M”) expenses when separable.
Indefinite life intangible assets are mainly comprised of IPR&D assets. Teva monitors these assets for items such as research and development progress and for indicators of fair value change such as level of expected competition and or pricing, to identify any triggering events.
IPR&D acquired in a business combination is capitalized as an indefinite life intangible asset until the related research and development efforts are either completed or abandoned. In the reporting periods where they are treated as indefinite life intangible assets, they are not amortized but rather are monitored triggering events and tested for impairment at least on an annual basis, in the second quarter of the fiscal year. Upon completion of the related research and development efforts, management determines the useful life of the intangible assets and amortizes them accordingly. In case of abandonment or a reduction in the expected realizable value of the asset, the related research and development assets are impaired.
Whenever impairment indicators are identified for definite life intangible assets, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s or asset group’s cash flows and compares such value against the asset’s or asset group’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value based on the discounted cash flows.
For indefinite life intangible assets, Teva performs an impairment test annually in the second quarter and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Teva determines the fair value of the asset based on discounted cash flows and records an impairment loss if its book value exceeds fair value.
In determining the estimated fair value of identifiable intangible assets, Teva utilized a discounted cash flow model. The key assumptions within the model related to forecasting future revenue and operating income, an appropriate discount rate and an appropriate terminal value based on the nature of the long-lived asset. The Company’s updated forecasts of net cash flows for the impaired assets reflect, among others, the following: (i) for IPR&D assets, the impact of changes to the development programs, the projected development and regulatory timeframes and the risks associated with these assets; and (ii) for product rights, pricing and volume projections, as well as patent life and any significant changes to the competitive environment.
Property, plant and equipment
Property, plant and equipment are stated at cost, after deduction of the related investment grants, and depreciated using the straight-line method over the estimated useful life of the assets: buildings, mainly 40 years; machinery and equipment, mainly 20 years; and other assets, between 5 to 10 years.
For property, plant and equipment and lease
right-of-use
assets, whenever impairment indicators are identified, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s cash flows and compares such value against the asset’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value.
Lease
right-of-use
(ROU) assets
See note 8 and note 1ee for further discussion.

 
o.
Contingencies:
The Company is involved in various patent, product liability, commercial, government investigations, environmental claims and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies, contingent consideration, other contingent liabilities incurred or acquired in a business combination, Teva records accruals for these types of contingencies to the extent that Teva concludes their occurrence is probable and that the related liabilities are reasonably estimable. When accruing these costs, the Company will recognize an accrual in the amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Teva records anticipated recoveries under existing insurance contracts that are probable of occurring at the gross amount that is expected to be collected. When applicable, the Company classifies the effect that the passage of time had on the net present value of a discounted legal accrual as legal expenses. Legal costs are expensed as incurred.
The Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved.
 
p.
Treasury shares:
Treasury shares are presented as a reduction of Teva shareholders’ equity and carried at their cost to Teva, under treasury shares.
 
q.
Stock-based compensation:
Teva recognizes stock based compensation for the estimated fair value of share-based awards, restricted share units (“RSUs”) and performance share units (“PSUs”).
Teva measures compensation expense for share-based awards based on estimated fair values on the date of grant using the Black-Scholes option-pricing model. This option pricing model requires estimates as to the share-based award’s expected term and the price volatility of the underlying stock. Teva amortizes the value of share-based awards to expense over the vesting period on a straight-line basis.
Teva measures compensation expense for RSUs and PSUs based on the market value of the underlying stock at the date of grant, less the present value of expected dividends not received during the vesting period, if applicable. Teva amortizes the value of RSUs to expense over the vesting period on a straight-line basis. The compensation expense for PSUs is recognized only if it is probable that the performance condition will be achieved.
Teva records forfeitures for share-based awards, RSUs and PSUs as they occur. If an employee forfeits an award because he fails to complete the requisite service period, the Company will reverse the compensation cost previously recognized in the period the award is forfeited.
 
r.
Deferred income taxes:
Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. In
 
 
determining whether a valuation allowance is needed, Teva considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. Deferred income tax liabilities and assets are classified as
non-current.
Tax has not been provided on the following items:
 
  1.
Taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. The determination of the amount of related unrecognized deferred tax liability is not practicable.
 
  2.
Amounts of
tax-exempt
income generated from the Company’s current Approved Enterprises and unremitted earnings from foreign subsidiaries retained for reinvestment in the Group. See note 13f.
 
s.
Uncertain tax positions:
Teva recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. Teva regularly
re-evaluates
its tax positions based on developments in its tax audits, statute of limitations expirations, changes in tax laws and new information that can affect the technical merits and change the assessment of Teva’s ability to sustain the tax benefit. In addition, the Company classifies interest and penalties recognized in the financial statements relating to uncertain tax position under the income taxes line item.
Provisions for uncertain tax positions, whereas Teva has net operating losses to offset additional income taxes that would result from the settlement of the tax position, are presented as a reduction of the deferred tax assets for such net operating loss.
 
t.
Derivatives and hedging:
The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, currency options, cross-currency swap contracts, interest rate swap contracts and treasury locks). The transactions are designed to hedge the Company’s currency and interest rate exposures. The Company does not enter into derivative transactions for trading purposes.
Derivative instruments are recognized on the balance sheet at their fair value.
For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recognized in financial expenses, net in the statements of income in the period that the changes in fair value occur.
For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings.
For derivative instruments that are designated as
net-investment
hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income. The effective
 
 
portion is determined by looking into changes in spot exchange rate. The change in fair value attributable to changes other than those due to fluctuations in the spot exchange rate are excluded from the assessment of hedge effectiveness and are recognized in the statement of income under financial expenses, net.
For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging.
Derivative instruments that do not qualify for hedge accounting are recognized on the balance sheet at their fair value, with changes in the fair value recognized as a component of financial expenses, net in the statements of income. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
 
u.
Revenue recognition:
A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.
Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes.
The amount of consideration to which Teva expects to be entitled varies as a result of rebates, chargebacks, returns and other sales reserves and allowances (“SR&A”) that the Company offers to its customers and their customers, as well as the occurrence or nonoccurrence of future events, including milestone events. A minimum amount of variable consideration is recorded by the Company concurrently with the satisfaction of performance obligations to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimates of variable consideration are based on historical experience and the specific terms in the individual agreements (which the Company believes approximates expected value). Rebates and chargebacks are the largest components of SR&A. If a minimum cannot be reasonably estimated, such revenue may be deferred to a future period when better information is available. For further description of SR&A components and how they are estimated, see “Variable Consideration” below.
Shipping and handling costs, after control of the product has transferred to a customer, are accounted for as a fulfillment cost and are recorded under S&M expenses.
Teva does not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms to customers are, on average, between thirty and ninety days.
The Company generally recognizes the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The
 
 
costs are recorded under S&M expenses. Similarly, Teva does not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less.

Nature of revenue streams
Revenue from sales of goods, including sales to distributors is recognized when the customer obtains control of the product. This generally occurs when products are shipped once the Company has a present right to payment and legal title, and risk and rewards of ownership are obtained by the customer.
Licensing arrangements performance obligations generally include intellectual property (“IP”) rights, certain R&D and contract manufacturing services. The Company accounts for IP rights and services separately if they are distinct – i.e. if they are separately identifiable from other items in the arrangement and if the customer can benefit from them on their own or with other resources that are readily available to the customer. The consideration is allocated between IP rights and services based on their relative stand-alone selling prices.
Revenue for distinct IP rights is accounted for based on the nature of the promise to grant the license. In determining whether the Company’s promise is to provide a right to access its IP or a right to use its IP, the Company considers the nature of the IP to which the customer will have rights. IP is either functional IP which has significant standalone functionality or symbolic IP which does not have significant standalone functionality. Revenue from functional IP is recognized at the point in time when control of the distinct license is transferred to the customer. Revenue from symbolic IP is recognized over the access period to the Company’s IP.
Revenue from sales based milestones and royalties promised in exchange for a license of IP is recognized only when, or as, the later of subsequent sale or the performance obligation to which some or all of the sales-based royalty has been allocated, is satisfied.
Distribution revenues are derived from sales of third-party products for which the Company acts as distributor, mostly in the United States via Anda and in Israel via Salomon Levin and Elstein Ltd. (SLE). In the United States, the Company is generally the principal in these arrangements and therefore records revenue on a gross basis as it controls the promised goods before transferring these goods to the customer. In Israel, the Company is the agent in these arrangements and therefore records revenue on a net basis as it has no discretion in establishing prices for any specified goods or services, limited inventory risk and is not primarily responsible for contract fulfillment. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Other revenues are primarily comprised of contract manufacturing services, sales of IP rights, sales of medical devices and other miscellaneous items. Revenue is recognized when the customer obtains control of such rights or products. This generally occurs when products are shipped, once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Trade receivables and contract liabilities
Trade receivables are presented net of allowance for credit losses, which include amounts billed and currently due from customers.
Contract liabilities are mainly comprised of deferred revenues (defined as obligations to provide products or services to customers when payment has been made in advance and delivery or performance has not yet occurred), which were immaterial as of December 31, 2023 and 2022.
 
 
Variable consideration
Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables.
The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated:
Rebates
Rebates are primarily related to volume incentives and are offered to key customers to promote loyalty. These rebate programs provide that, upon the attainment of
pre-established
volumes or the attainment of revenue milestones for a specified period, the customer receives a rebate. Since rebates are contractually agreed upon, they are estimated based on the specific terms in each agreement based on historical trends and expected sales. Externally obtained inventory levels and expected sales usage by contract are evaluated in relation to estimates made for rebates payable to indirect customers and managed care agreements.
Medicaid and Other Governmental Rebates
Pharmaceutical manufacturers whose products are covered by the Medicaid program are required to provide a rebate to each state as a percentage of their average manufacturer’s price for generic products dispensed and “best price” for innovative products dispensed. Many states have also implemented supplemental rebate programs that obligate manufacturers to pay rebates in excess of those required under federal law. The Company estimates these rebates based on historical trends of rebates paid, as well as on changes in wholesaler inventory levels and increases or decreases in sales.
Chargebacks
The Company has arrangements with various third parties, such as managed care organizations and drug store chains, establishing prices for certain of Teva’s products. While these arrangements are made between the Company and the customers, the customers independently select a wholesaler from which they purchase the products. Alternatively, certain wholesalers may enter into agreements with the customers, with Teva’s concurrence, which establish the pricing for certain products which the wholesalers provide. Under either arrangement, Teva will issue a credit (referred to as a “chargeback”) to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract prices. Provisions for chargebacks involve estimates of contract prices of over 2,000 products and multiple contracts with multiple wholesalers. Provisions for chargebacks involve estimates of usage by retailers and other indirect buyers with varying contract prices for multiple wholesalers. The provision for chargebacks varies in relation to changes in product mix, pricing and the level of inventory at the wholesalers and, therefore, will not necessarily fluctuate in proportion to an increase or decrease in sales. Provisions for estimating chargebacks are calculated using historical chargeback experience and/or expected chargeback levels for new products and anticipated pricing changes. Teva considers current and expected price competition when evaluating the provision for chargebacks. Chargeback provisions are compared to externally obtained distribution channel reports for reasonableness. The Company regularly monitors the provision for chargebacks and makes adjustments when the Company believes that actual chargebacks may differ from estimated provisions.
 
 
Other Promotional Arrangements
Other promotional or incentive arrangements are periodically offered to customers, specifically related to the launch of products or other targeted promotions. Provisions are made in the period for which the Company can estimate the incentive earned by the customer, in accordance with the contractual terms. The Company regularly monitors the provision for other promotional arrangements and makes adjustments when it believes that the actual provision may differ from the estimated provisions.
Shelf Stock Adjustments
The custom in the pharmaceutical industry is generally to grant customers a shelf stock adjustment based on the customers’ existing inventory contemporaneously with decreases in the market price of the related product. The most significant of these relate to products for which an exclusive or semi-exclusive period exists. Provisions for price reductions depend on future events, including price competition, new competitive launches and the level of customer inventories at the time of the price decline. Teva regularly monitors the competitive factors that influence the pricing of its products and customer inventory levels and adjust these estimates where appropriate.
Returns
Returns primarily relate to customer returns of expired products which, the customer has the right to return up to one year following the expiration date. Such returned products are destroyed and credits and/or refunds are issued to the customer for the value of the returns. Accordingly, no returned assets are recoded in connection with those products. The returns provision is estimated by applying a historical return rate to the amounts of revenue estimated to be subject to returns. Revenue subject to returns is estimated based on the lag time from time of sale to date of return. The estimated lag time is developed by analyzing historical experience. Additionally, The Company considers specific factors, such as estimated levels of inventory in the distribution channel, product dating and expiration, size and maturity of launch, entrance of new competitors, changes in formularies or packaging and any changes to customer terms, for determining the overall expected levels of returns.
Prompt Pay Discounts
Prompt pay discounts are offered to most customers to encourage timely payment. Discounts are estimated at the time of invoice based on historical discounts in relation to sales. Prompt pay discounts are almost always utilized by customers. As a result, the actual discounts do not vary significantly from the estimated amount.
 
v.
Research and development:
Research and development expenses are charged to statement of income (loss) as incurred. Participations and grants in respect of research and development expenses are recognized as a reduction of research and development expenses as the related costs are incurred, or as the related milestone is met.
Advance payments for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as an expense as the related goods are used or the services are rendered.
Research and development
in-process
acquired as part of an asset purchase, which has not reached technological feasibility and has no alternative future use, is expensed as incurred.
 
 
The Company accounts for grants received to perform research and development services in accordance with
ASC 730-20,
Research and Development Arrangements. At the inception of the grant, the Company performs an assessment as to whether the grant is a liability or a contract to perform research and development services for others. If Teva is obligated to repay the grant funds to the grantor regardless of the outcome of the research and development activities, then it is required to estimate and recognize that liability. Alternatively, if Teva is not required to repay, or if it is required to repay the grant funds only if the research and development activities are successful, then the grant agreement is accounted for as a contract to perform research and development services for others, in which case, a reduction of research and development costs is recognized when the related research and development expenses are incurred.
 
w.
Shipping and handling costs:
Shipping and handling costs to end customers, which are included in S&M expenses, were $124 million, $118 million and $111 million for the years ended December 31, 2023, 2022 and 2021, respectively.
 
x.
Advertising costs:
Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2023, 2022 and 2021 were $162 million, $168 million and $246 million, respectively.
 
y.
Restructuring:
Restructuring provisions are recognized for the direct expenditures arising from restructuring initiatives, where the plans are sufficiently detailed and where appropriate communication to those affected has been made.
Costs for
one-time
termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period.
Contractual termination benefits are provided to employees when employment is terminated due to an event specified in the provisions of an existing plan or agreement. A liability is recorded and the expense is recognized when it is probable that employees will be entitled to the benefits and the amount is reasonably estimable.
Special termination benefits arise when the Company offers, for a short period of time, to provide certain additional benefits to employees electing voluntary termination. A liability is recorded and the expense is recognized in the period the employees irrevocably accept the offer and the amount of the termination liability is reasonably estimable.
 
z.
Segment reporting:
The Company’s business includes three reporting segments based on three geographical areas:
 
  (a)
North America segment, which includes the United States and Canada.
 
  (b)
Europe segment, which includes the European Union, the United Kingdom and certain other European countries.
 
  (c)
International Markets segment, which includes all countries in which Teva operates other than those in the North America and Europe segments.
Each business segment manages the entire product portfolio in its region, including generic products, innovative medicines and
over-the-counter
(“OTC”) products.
 
 
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
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis.
 
aa.
Earnings per share:
Basic earnings (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 RSUs and PSUs during the period, net of treasury shares.
In computing diluted earnings per share, basic earnings per share are adjusted to take into account the potential dilution that could occur upon: (i) the exercise of options and
non-vested
RSUs and PSUs granted under employee stock compensation plans and convertible senior debentures, using the treasury stock method; and (ii) the conversion of the remaining convertible senior debentures using the
“if-converted”
method, by adding to net income interest expense on the debentures and amortization of issuance costs, net of tax benefits, and by adding the weighted average number of shares issuable upon assumed conversion of the debentures.
 
bb.
Securitization and factoring
Teva accounts for transfers of its trade receivable as sales when it has surrendered control over the related assets in accordance with ASC Topic 860 “Transfer and Servicing” of Financial Assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the balance sheet at fair value. Refer to note 10f.
 
cc.
Divestitures
The Company nets the proceeds on the divestitures of businesses and tangible assets with the carrying amount of the related assets and records gain or loss on sale within other income. Any contingent payments that are potentially due to the Company as a result of these divestitures are recorded when it is probable that a significant reversal of income will not occur, or in the case of a business, when such payments are realizable. For divestures of businesses, including divestitures of products that qualify as a business, the Company reflects the relative fair value of goodwill associated with the businesses in the determination of gain or loss on sale.
 
dd.
Debt instruments
Debt instruments are initially recognized at the fair value of the consideration received. Debt issuance costs are recorded on the consolidated balance sheet as a reduction of liability. They are subsequently recognized at amortized cost using the effective interest method. Debt may be considered extinguished when it has been modified and the terms of the new debt instruments and old debt instruments are “substantially different” (as defined in the debt modification guidance in ASC
470-50
“Debt—Modifications and Extinguishments”). The Company classifies the current portion of long term debt as
non-current
liabilities on the balance sheet when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC
470-50
“Debt”.
 
ee.
Leases
Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC
842-10-25-2.
If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva
 
 
classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally, 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset.
Operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in the consolidated balance sheet. Finance leases are included in property, plant and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheet.
ROU assets represent Teva’s right to use an underlying asset for the lease term and lease liabilities represent Teva’s obligation to make lease payments arising from the lease. Operating lease ROU and finance lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, which may include options to extend or terminate the lease, when it is reasonably certain at the commencement date whether the Company will or will not exercise the option to renew or terminate the lease. Teva uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments.
For finance leases, Teva recognizes interest on the lease liability separately from amortization of the assets in the consolidated statement of income. For operating leases, lease expenses are recognized on a straight-line basis over the lease term.
Teva elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, Teva does not recognize ROU assets or lease liabilities, but recognizes lease expenses over the lease term on a straight line basis. Teva also elected the practical expedient to not separate lease and
non-lease
components for all of Teva’s leases, other than leases of real estate.
Lease terms will include options to extend or terminate the lease when it is reasonably certain that Teva will either exercise or not exercise the option to renew or terminate the lease.
Teva’s lease agreements have remaining lease terms ranging from 1 year to 76 years. Some of these agreements include options to extend the leases for up to 10 years and some include options to terminate the leases immediately. Certain leases also include options to purchase the leased property.
The depreciable life of leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset reasonably certain of exercise.
Some of Teva’s vehicle lease agreements include rental payments based on the actual usage of the vehicles and other lease agreements include rental payments adjusted periodically for inflation. Teva’s lease agreements do not contain any material residual value guarantees.
Teva rents out or subleases certain assets to third parties, which has an immaterial impact on Teva’s consolidated financial statements.
v3.24.0.1
Certain transactions
 12 Months Ended
Dec. 31, 2023
Certain transactions
NOTE 2 – Certain transactions:
The Company has entered into alliances and other arrangements with third parties to acquire rights to products it does not have, to access markets it does not operate in and to otherwise share development costs or business risks. The Company’s most significant agreements of this nature are summarized below.
 
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 $
10
 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 $
500
 million, over the next several years, based on the achievement of certain
pre-clinical,
clinical and regulatory milestones, with the majority of the payments based on future revenue achievements.
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).
Under the terms of the funding agreement, Royalty Pharma will provide Teva up to $100 million to fund ongoing development costs for olanzapine LAI (TEV-‘749), and Royalty Pharma and Teva have a mutual option to increase the total funding amount to $125 million. In exchange and subject to regulatory approval, Teva will pay Royalty Pharma a milestone payment in the amount actually funded by Royalty Pharma, paid over 5 years, in addition to royalties upon commercialization. Teva will continue to lead the development and commercialization of the product globally. During the fourth quarter of 2023, Teva recorded $35 million as reimbursement for R&D expenses in connection with this agreement. Olanzapine LAI
(TEV-’749)
is currently in Phase 3 for the treatment of schizophrenia (see also MedinCell transaction below).
Sanofi
On October 3, 2023, Teva entered into an exclusive collaboration with Sanofi to
co-develop
and
co-commercialize
Teva’s anti-TL1A
(TEV-’574)
asset, a novel anti-TL1A therapy for the treatment of ulcerative colitis and Crohn’s disease, two types of inflammatory bowel disease, which is currently in Phase 2b clinical trials. Under the terms of the collaboration agreement, in partial consideration of the licenses granted to Sanofi, Teva received an upfront payment of $500 million in the fourth quarter of 2023, which was recognized as revenues. Additionally, Teva may receive up to $1 billion in development and launch milestones. Each company will equally share the remaining development costs globally and net profits and losses in major markets, with other markets subject to a royalty arrangement, and Sanofi will lead the development of the Phase 3 program. Teva will lead commercialization of the product in Europe, Israel and specified other countries, and Sanofi will lead commercialization in North America, Japan, other parts of Asia and the rest of the world.
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)
and a related compound
(TEV-’287).
Emrusolmin
(TEV-’286)
was initially developed for the treatment of Multiple System Atrophy (“MSA”) and Parkinson’s disease, and has the potential to be applied to other treatments for neurodegenerative disorders, such as Alzheimer’s disease. A Phase 1b clinical trial for emrusolmin
(TEV-’286)
was completed and Teva expects to initiate a Phase 2 clinical trial in the coming months. In the fourth quarter of 2021, Teva made an upfront payment of $10 million to Modag, which was recorded as an R&D expense. Modag may be eligible for future development milestone payments, totaling an aggregate amount of up to $30 million, as well as future commercial milestones and royalties.
 
 
Alvotech
In August 2020, Teva entered into an agreement with biopharmaceutical company Alvotech for the exclusive commercialization in the U.S. of five biosimilar product candidates. The initial pipeline for this collaboration contains biosimilar candidates addressing multiple therapeutic areas, including proposed biosimilars to Humira
®
(adalimumab) and Stelara
®
(ustekinumab). Under the terms of the agreement, Alvotech is responsible for the development, registration and supply of the biosimilar product candidates and Teva will exclusively commercialize the products in the U.S. In July 2023, Alvotech and Teva amended their collaboration agreement, adding two new biosimilar candidates as well as line extensions of two current biosimilar candidates to their partnership.
Teva made an upfront payment in the third quarter of 2020 and additional upfront and milestone payments in the second quarter of 2021 and January 2023, each of which were recorded as R&D expenses, the latter in the fourth quarter of 2022. Additional development and commercial milestone payments of up to approximately $400 million, 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 profit 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.
With respect to the proposed biosimilar to Humira
®
, Alvotech and Teva may sell it in the U.S. once U.S. regulatory approval is obtained after Alvotech addresses the FDA’s comments included in the complete response letters (“CRLs”) from September and December 2022 and from April and June 2023, stating that the application could not be approved at the time based on deficiencies associated with Alvotech’s manufacturing facility. On September 20, 2023, Alvotech announced that the FDA had accepted for review its resubmitted Biologics License Application (“BLA”) for the proposed biosimilar to Humira
®
. On January 19, 2024, Alvotech announced that the reinspection of its facility by the FDA, which started on January 10, 2024, has been concluded. Following the FDA inspection, Alvotech received a form 483 with one observation.
With respect to the proposed biosimilar to Stelara
®
, on June 12, 2023, Alvotech and Teva reached a settlement and license agreement with Johnson & Johnson, granting a licensed entry date in the U.S. no later than February 21, 2025, provided that U.S. regulatory approval is obtained by that date. On October 17, 2023, Alvotech announced that it had received a CRL from the FDA in respect of its proposed biosimilar to Stelara
®
, based upon the deficiencies associated with its manufacturing facility referred to above. Alvotech subsequently noted on November 28, 2023 that a resubmitted BLA for the proposed biosimilar to Stelara
®
had been accepted by the FDA with a Biosimilar User Fee Act (BsUFA) goal date of April 16, 2024. Approval of the BLA is also subject to a satisfactory outcome of the FDA’s reinspection of Alvotech’s facility as referred to above.
Otsuka
On May 12, 2017, Teva entered into a license and collaboration agreement with Otsuka Pharmaceutical Co. Ltd. (“Otsuka”) providing Otsuka with an exclusive license to develop and commercialize AJOVY in Japan. Otsuka paid Teva an upfront payment of $50 million in consideration for the transaction. In the third quarter of 2020, Otsuka submitted an application to obtain manufacturing and marketing approval for AJOVY in Japan and, as a result, paid Teva a milestone payment of $15 million, which was recognized as revenue in the third quarter of 2020. AJOVY was approved in Japan in June 2021 and launched on August 30, 2021. As a result of the launch, Otsuka paid Teva a milestone payment of $35 million, which was recognized as revenue in the third
quarter of 2021. Teva may receive additional milestone payments upon achievement of certain revenue targets. Otsuka also pays Teva royalties on AJOVY sales in Japan.
Takeda
In December 2016, Teva entered into a license agreement with a subsidiary of Takeda Pharmaceutical Company Ltd. (“Takeda”), for the research, development, manufacture and commercialization of ATTENUKINE
TM
technology. Teva received a $30 million upfront payment and a milestone payment of $20 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 of $25 million, which was recognized as revenue in the second quarter of 2022. In the fourth quarter of 2023, Takeda discontinued further internal development of modakafusp alfa and informed Teva that it is assessing options, including possible sublicensing. The license agreement stipulates additional milestone payments to Teva of up to $519 million with respect to this product candidate, as well as future royalties.
MedinCell
In November 2013, Teva entered into an agreement with MedinCell for the development and commercialization of multiple long-acting injectable (“LAI”) products. Teva leads the clinical development and regulatory process and is responsible for commercialization of these products. The lead product is risperidone LAI (formerly known as
TV-46000).
On April 28, 2023, the FDA approved UZEDY (risperidone) extended-release injectable suspension for the treatment of schizophrenia in adults, which was launched in the U.S. in May 2023. MedinCell may be eligible for future sales-based milestones of up to $105 million in respect of UZEDY. Teva will also pay MedinCell royalties on net sales.
The second selected product candidate is olanzapine LAI
(TEV-’749)
for the treatment of schizophrenia. In the third quarter of 2022, Teva decided to progress development of the product to Phase 3 and, as a result, paid a $3 million milestone payment to MedinCell, which was recognized as R&D expenses. MedinCell may become eligible for further milestones and royalties on sales of olanzapine LAI
(TEV-’749).
Assets and Liabilities Held For Sale:
General
Assets held for sale as of December 31, 2023 included businesses that are expected to be sold within the next year. Assets held for sale as of December 31, 2022 included certain manufacturing assets that were sold during the second and third quarters of 2023. The table below summarizes all of Teva’s assets and liabilities included as held for sale as of December 31, 2023 and December 31, 2022:
 
 
 
 
 
 
 
 
 
 
    
December 31,
2023
     
December 31,
2022
  
    
(U.S. $ in millions)
  
Inventories
    $ 12      $ 2  
Property, plant and equipment, net and others
      28        18  
Goodwill
      30        —   
Adjustments of assets held for sale to fair value
      —         (10 ) 
    
 
 
     
 
 
  
Total assets of the disposal group classified as held for sale in the consolidated balance sheets
    $ 70      $ 10  
    
 
 
     
 
 
  
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets, recorded under other current liabilities
    $ (13 )     $ —   
    
 
 
     
 
 
  
v3.24.0.1
Revenue from contracts with customers
 12 Months Ended
Dec. 31, 2023
Revenue from contracts with customers
NOTE 3 – Revenue from contracts with customers:
Disaggregation of revenue
The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 19.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December 31, 2023
  
    
North
America
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,944        4,631        1,840        565        12,979  
Licensing arrangements *
      601        51        24        5        681  
Distribution
      1,577        §        38        —         1,615  
Other**
      2        155        56        357        570  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
     $ 8,124      $ 4,837      $ 1,958      $ 926      $ 15,846  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Revenues from licensing arrangements in North America segment were mainly comprised of $500 million upfront payment received in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
**
“Other” revenues in Europe segment mainly related to the sale of certain product rights.
§
Represents an amount less than $
0.5 
million.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December 31, 2022
  
    
North
America
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,834        4,455        1,806        671        12,766  
Licensing arrangements
      139        51        19        4        212  
Distribution
      1,471        1        46        —         1,519  
Other
      8        18        33        370        428  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
     $ 7,452      $ 4,525      $ 1,903      $ 1,045      $ 14,925  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   
    
Year ended December 31, 2021
  
    
North
America
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      6,394        4,807        1,889        739        13,829  
Licensing arrangements
      92        50        13        4        160  
Distribution
      1,323        1        65        —         1,390  
Other
      (1)        27        65        408        500  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
     $ 7,809      $ 4,886      $ 2,032      $ 1,151      $ 15,878  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Variable consideration
Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables.
The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. For description of the nature of each deduction and how provisions are estimated see note 1.
 
SR&A to U.S. customers comprised approximately 65% of the Company’s total SR&A as of December 31, 2023, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the years ended December 31, 2023 and 2022 were as follows:
 
   
Sales Reserves and Allowances
  
   
Reserves
included in
Accounts
Receivable, net
    
Rebates
    
Medicaid and
other
governmental
allowances
    
Chargebacks
    
Returns
    
Other
    
Total
reserves
included in
Sales
Reserves
and
Allowances
    
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
     354       4,015       654       7,579       264       109       12,621       12,975  
Provisions related to sales made in prior periods
     —        (31 )      (33 )      (54 )      17       —        (101 )      (101 ) 
Credits and payments
     (360 )      (3,974 )      (748 )      (7,662 )      (304 )      (77 )      (12,765 )      (13,125 ) 
Translation differences
     —        18       4       5       4       (1 )      30       30  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2023
   $ 61     $ 1,603     $ 540     $ 859     $ 436     $ 97     $ 3,535     $ 3,596  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
   
Sales Reserves and Allowances
  
   
Reserves
included in
Accounts
Receivable, net
    
Rebates
    
Medicaid and
other
governmental
allowances
    
Chargebacks
    
Returns
    
Other
    
Total
reserves
included in
Sales
Reserves
and
Allowances
    
Total
  
   
(U.S.$ in millions)
  
Balance at January 1, 2022
   $ 68     $ 1,655     $ 854     $ 1,085     $ 535     $ 112     $ 4,241     $ 4,309  
Provisions related to sales made in current year period
     363       3,823       871       7,819       317       85       12,915       13,278  
Provisions related to sales made in prior periods
     —        (69 )      (35 )      (44 )      (3 )      (51 )      (202 )      (202 ) 
Credits and payments
     (364 )      (3,798 )      (1,023 )      (7,861 )      (390 )      (77 )      (13,149 )      (13,513 ) 
Translation differences
     —        (36 )      (4 )      (8 )      (4 )      (3 )      (55 )      (55 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2022
   $ 67     $ 1,575     $ 663     $ 991     $ 455     $ 66     $ 3,750     $ 3,817  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Allowance for credit losses
Accounts receivables are recognized net of allowance for credit losses. Allowances for credit losses were $95 million and $91 million as of December 31, 2023 and December 31, 2022, respectively.
Pledged accounts receivables
Accounts receivables, net of allowance for credit losses, include $437 million and $436 million as of December 31, 2023 and December 31, 2022, respectively, which are pledged in connection with the U.S. securitization program entered into in November 2022. See note 10f.
v3.24.0.1
Inventories
 12 Months Ended
Dec. 31, 2023
Inventories
NOTE 4 —Inventories:
Inventories, net of reserves, consisted of the following:
 
    
December 31,
  
    
 2023 
     
 2022 
  
    
(U.S. $ in millions)
  
Finished products
    $ 2,346      $ 1,987  
Raw and packaging materials
      993        1,059  
Products in process
      500        555  
Materials in transit and payments on account
      183        232  
  
 
 
     
 
 
  
   $ 4,021      $ 3,833  
  
 
 
     
 
 
  
v3.24.0.1
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment
NOTE 5 —Property, plant and equipment:
Property, plant and equipment, net, consisted of the following:
 
    
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
  
Machinery and equipment
    $ 4,807      $ 5,026  
Buildings
      2,488        2,463  
Computer equipment and other assets
      2,419        2,323  
Assets under construction and payments on account
      1,427        1,199  
Land
      246        246  
  
 
 
     
 
 
  
     11,387        11,257  
Less- accumulated depreciation
      (5,637 )       (5,518 ) 
  
 
 
     
 
 
  
   $ 5,750      $ 5,739  
  
 
 
     
 
 
  
Depreciation expenses were $537 million, $576 million and $528 million in the years ended December 31, 2023, 2022 and 2021, respectively. During the years ended December 31, 2023, 2022 and 2021, Teva recorded impairments of property, plant and equipment in the amount of $28 million, $47 million and $160 million, respectively. See note 15.
v3.24.0.1
Identifiable Intangible Assets
 12 Months Ended
Dec. 31, 2023
Identifiable Intangible Assets
NOTE 6—Identifiable intangible assets:
Identifiable intangible assets consisted of the following:
 
    
Gross carrying
amount net of
impairment
     
Accumulated
amortization
     
Net carrying amount
  
    
December 31,
  
    
 2023 
     
 2022 
     
2023
     
2022
     
 2023 
     
 2022 
  
    
(U.S. $ in millions)
  
Product rights
    $ 17,981      $ 18,067      $ 13,274      $ 12,630      $ 4,707      $ 5,437  
Trade names
      583        577        269        231        314        346  
In-process
research and development (IPR&D)
      366        487        —         —         366        487  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 18,930      $ 19,131      $ 13,543      $ 12,861      $ 5,387      $ 6,270  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
Product rights and trade names
Product rights and trade names are assets presented at amortized cost. Product rights and trade names represent a portfolio of pharmaceutical products from various categories with a weighted average life of approximately 9 years. Amortization of intangible assets was $616 million, $732 million and $802 million in the years ended December 31, 2023, 2022 and 2021, respectively.
As of December 31, 2023, the estimated aggregate amortization of intangible assets for the years 2024 to 2028 is as follows: 2024—$503 million; 2025—$460 million; 2026—$462 million; 2027—$451 million and 2028—$398 million. These estimates do not include the impact of IPR&D that is expected to be successfully completed and reclassified to product rights.
IPR&D
Teva’s IPR&D are assets that have not yet been approved in major markets. IPR&D carries intrinsic risks that the asset might not succeed in advanced phases and may be impaired in future periods.
Intangible assets impairment
Impairments of identifiable intangible assets were $350 million, $355 million and $424 million in the years ended December 31, 2023, 2022 and 2021, respectively. These amounts are recorded in the statement of income (loss) under intangible assets impairments.
The fair value measurement of the impaired intangible assets in 2023 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.
Impairments in 2023 consisted of:
 
  (a)
Identifiable product rights of $260 million due to: (i) $148 million related to updated market assumptions regarding price and volume of products; and (ii) $112 million in Japan, mainly related to regulatory pricing reductions; and
 
  (b)
IPR&D assets of $90 million, mainly related to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).
Impairments in 2022 consisted of:
 
  (a)
Identifiable product rights of $310 million due to: (i) $256 million related to updated market assumptions regarding price and volume of products, and (ii) $54 million related to a change in Teva’s commercial plans regarding a certain program, as part of portfolio optimization efforts, which also included an inventory
write-off
of $108 million; and
 
  (b)
IPR&D assets of $45 million, due to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).
Impairments in 2021 consisted of:
 
  (a)
Identifiable product rights and trade names of $297 million due to: (i) $267 million, mainly related to updated market assumptions regarding price and volume of products acquired from Actavis
 
  Generics that are primarily marketed in the United States, and, (ii) $30 million related to lenalidomide (generic equivalent of Revlimid
®
), resulting from modified competition assumptions as a result of settlements between the innovator and other generic filers; and
 
  (b)
IPR&D assets of $127 million, mainly due to generic pipeline products acquired from Actavis Generics resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date) in the United States.
v3.24.0.1
Goodwill
 12 Months Ended
Dec. 31, 2023
Goodwill
NOTE 7 – Goodwill:
Changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 were as follows:
 
                     
Other
        
   
North
America
    
Europe
    
International
Markets
    
Teva’s API
    
Medis
    
Total
  
   
(U.S. $ in millions)
        
Balance as of December 31, 2021 (1)
   $ 6,474     $ 8,544     $ 2,328     $ 2,417     $ 277     $ 20,040  
Changes during the period:
            
Goodwill impairment
     —        —        (979 )      (1,066 )      —        (2,045 ) 
Goodwill acquired
     —        —        —        12       —        12  
Translation differences
     (24 )      (242 )      (10 )      (70 )      (28 )      (374 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2022 (1)
   $ 6,450     $ 8,302     $ 1,339     $ 1,293     $ 249     $ 17,633  
Changes during the period:
            
Goodwill impairment
     —        —        (700 )      —        —        (700 ) 
Goodwill reclassified as assets held for sale
     —        —        (30 )      —        —        (30 ) 
Translation differences
     9       164       66       20       16       275  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2023 (1)
   $ 6,459     $ 8,466     $ 675     $ 1,313     $ 265     $ 17,177  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
Cumulative goodwill impairment as of December 31, 2023, December 31, 2022 and December 31, 2021 was approximately $28.3 billion, $27.6 billion and $25.6 billion respectively.
Teva operates its business through three reporting segments: North America, Europe and International Markets. Each of these business segments is a reporting unit. Additional reporting units include Teva’s production and sale of APIs to third parties (“Teva API”) and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis. Teva’s API and Medis reporting units are included under “Other” in the table above. See note 19 for additional segment information.
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
During the first quarter of 2023, management evaluated whether there were any developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount as of March 31, 2023. Management concluded that no triggering event had occurred and, therefore, no quantitative assessment was performed.
Following the goodwill impairment charges recorded in the fourth quarter of 2022 in relation to Teva’s International Markets and Teva’s API reporting units, the carrying values of those reporting units equaled their fair value as of December 31, 2022. Additionally, as part of the quantitative analysis Teva conducted as part of its annual goodwill impairment test in the second quarter of 2022, it concluded that the estimated fair value of Teva’s Europe reporting unit exceeded its estimated carrying amount by 9%.
Second Quarter Developments
Pursuant to Company policy, Teva conducted the annual goodwill impairment test for all reporting units during the second quarter of 2023. Management considered all information available, including information gathered from its latest long-range planning (“LRP”) process and annual operating plan (“AOP”), which are parts of Teva’s internal financial planning and budgeting processes, as well as Teva’s newly launched “Pivot to Growth” strategy. The LRP, the AOP and Teva’s Pivot to Growth strategy were discussed and reviewed by Teva’s management and its board of directors.
Additionally, Teva conducted a quantitative analysis of all reporting units as part of its annual goodwill impairment test with the assistance of an independent valuation expert.
Based on this quantitative analysis, in the second quarter of 2023, Teva recorded a goodwill impairment charge of $700 million related to its International Markets reporting unit, mainly due to an increase in the discount rate due to higher risk associated with country-specific characteristics of several countries.
Following the goodwill impairment charge recorded in relation to Teva’s International Markets reporting unit, the carrying value of this reporting unit equaled its fair value as of June 30, 2023. Therefore, if business conditions or expectations were to change materially, it may be necessary to record further impairment charges to Teva’s International Markets reporting unit in the future.
The excess of the estimated fair value of Teva’s API reporting unit over its estimated carrying amount as of June 30, 2023, was negligible. Therefore, if business conditions or expectations were to change materially, it may be necessary to record impairment charges to Teva’s API reporting unit in the future.
The estimated fair value of Teva’s Europe reporting unit exceeds its estimated carrying amount by 3% based on a terminal growth rate of 1.56% and a discount rate of 9.96%. If Teva holds all other assumptions constant, a reduction in the terminal growth rate of 0.25% to 1.31% or an increase in the discount rate of 0.25% to 10.21% would result in a reduction of the excess of fair value over carrying amount with respect to Teva’s Europe reporting unit to 1%.
Teva’s North America and Medis reporting units have fair values in excess of 10% over their respective book values as of June 30, 2023.
Teva noted its market capitalization has been below management’s assessment of the aggregated fair value of the Company’s reporting units. However, as of June 30, 2023, the Company’s market capitalization plus a reasonable control premium exceeded its book value.
 
Third Quarter Developments
During the third quarter of 2023, management evaluated whether there were any developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount as of September 30, 2023. Management concluded that no triggering event had occurred and, therefore, no quantitative assessment was performed.
Fourth Quarter Developments
During the fourth quarter of 2023, Teva completed its AOP process. The AOP was used as a base for an update of the LRP and Teva’s Pivot to Growth strategy, incorporating the changes for future years in the fair value model.
Additionally, management evaluated whether there were any developments that occurred during the quarter to determine if it is more likely than not that the fair value of any of its reporting units was below its carrying amount as of December 31, 2023.
Management noted the following main triggering events during the fourth quarter for its International Markets reporting unit and its Teva’s API reporting unit: (i) fluctuations in exchange rates between certain currencies in which Teva operates in its International Markets reporting unit, and the U.S. dollar, are expected to significantly lower projected operating results; and (ii) updated assumptions supporting the cash flow projections of Teva’s API reporting unit, including certain revenue growth assumptions, and the associated operating profit margins, mainly resulting from changes in market conditions.
Management performed a quantitative assessment in the fourth quarter of 2023, which resulted in no recognition of a goodwill impairment.
Following the quantitative assessment performed in relation to Teva’s International Markets reporting unit, the excess of its estimated fair value over its estimated carrying amount as of December 31, 2023, was 6%, based on a terminal growth rate of 1.79% and a discount rate of 12.23%. If Teva holds all other assumptions constant, a reduction in the terminal growth rate of 0.25% to 1.54% or an increase in the discount rate of 0.25% to 12.48% would result in a reduction of the excess of fair value over carrying amount with respect to Teva’s International Markets reporting unit to 4%.
Following the quantitative assessment performed in relation to Teva’s API reporting unit, the excess of its estimated fair value over its estimated carrying amount as of December 31, 2023, was negligible. Therefore, if business conditions or expectations (such as growth rate or discount rate) were to adversely change, it may be necessary to record impairment charges to Teva’s API reporting unit in the future.
With respect to the remaining reporting units, management concluded that it was not more likely than not that the fair value of any of the reporting units was below its carrying amounts as of December 31, 2023 and, therefore, no quantitative assessment was performed.
v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases
NOTE 8 – Leases:
The components of operating lease cost for the years ended December 31, 2023, 2022 and 2021 were as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating lease cost:
         
Fixed payments and variable payments that depend on an index or rate
    $ 132      $ 142      $ 135  
Variable lease payments not included in the lease liability
      5        4        4  
Short-term lease cost
      3        2        2  
  
 
 
     
 
 
     
 
 
  
   $ 139      $ 148      $ 141  
  
 
 
     
 
 
     
 
 
  
Supplemental cash flow information related to operating leases was as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Cash paid for amounts included in the measurement of lease liabilities:
         
Operating cash flows from operating leases
    $ 141      $ 140      $ 143  
Right-of-use
assets obtained in exchange for lease obligations
(non-cash):
         
Operating leases
    $ 121      $ 81      $ 81  
Supplemental balance sheet information related to operating leases was as follows:
 
    
December 31,
     
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating leases:
      
Operating lease ROU assets
    $ 397      $ 419  
  
 
 
     
 
 
  
Other current liabilities
      97        93  
Operating
lease
liabilities
      320        349  
  
 
 
     
 
 
  
Total operating lease liabilities
    $ 417      $ 442  
  
 
 
     
 
 
  
 
    
December 31,
    
December 31,
  
    
2023
    
2022
  
Weighted average remaining lease term
     
Operating leases
      6.1 years       6.8 years  
Weighted average discount rate
     
Operating leases
      6.0 %      5.6 % 
Maturities of operating lease liabilities were as follows:
 
    
December 31,
  
    
2023
  
    
(U.S. $ in millions)
  
2024
    $ 116  
2025
      98  
2026
      80  
2027
      62  
2028 and thereafter
      140  
  
 
 
  
Total operating lease payments
    $ 496  
  
 
 
  
Less: imputed interest
      79  
  
 
 
  
Present value of lease liabilities
    $ 417  
  
 
 
  
As of December 31, 2023, Teva’s total
finance lease assets
and
finance lease liabilities
were $32 million and $23 million, respectively. As of December 31, 2022, total
finance lease assets
and
finance lease liabilities
were $29 million and $22 million, respectively. The difference between those amounts is mainly due to prepaid payments.
v3.24.0.1
Debt obligations
 12 Months Ended
Dec. 31, 2023
Debt obligations
NOTE 9—Debt obligations:
 
a.
Short-term debt:
 
                 
December 31,
  
    
Weighted average
interest rate as of
December 31, 2023
    
Maturity
     
2023
     
2022
  
                 
(U.S. $ in millions)
  
Convertible debentures
      0.25 %      2026      $ 23      $ 23  
Current maturities of long-term liabilities
 
      1,649        2,086  
       
 
 
     
 
 
  
Total short term debt
 
    $ 1,672      $ 2,109  
Convertible senior debentures
The principal amount of Teva’s 0.25% convertible senior debentures due 2026 was $23 million as of December 31, 2023 and December 31, 2022. These convertible senior debentures include a “net share settlement” feature according to which the principal amount will be paid in cash and in case of conversion, only the residual conversion value above the principal amount will be paid in Teva shares. Due to the “net share settlement” feature, exercisable at any time, these convertible senior debentures are classified in the Balance Sheet under short-term debt.
 
b.
Long-term debt:
 
   
Interest rate as of
December 31,
2023
    
Maturity
    
December 31,
2023
    
December 31,
2022
  
               
(U.S. $ in millions)
  
Senior notes EUR 1,500 million
     1.13 %      2024       693       670  
Sustainability-linked senior notes EUR 1,500 million (6)(*)
     4.38 %      2030       1,656       1,606  
Senior notes EUR 1,300 million (9)
     1.25 %      2023       —        633  
Sustainability-linked senior notes EUR 1,100 million (7)(*)
     3.75 %      2027       1,215       1,177  
Senior notes EUR 1,000 million (5)
     6.00 %      2025       453       1,070  
Senior notes EUR 900 million (5)
     4.50 %      2025       547       963  
Sustainability-linked senior notes EUR 800 million (1)(*)
     7.38 %      2029       884       —   
Senior notes EUR 750 million
     1.63 %      2028       826       800  
Senior notes EUR 700 million
     1.88 %      2027       771       748  
Sustainability-linked senior notes EUR 500 million (2)(*)
     7.88 %      2031       552       —   
Senior notes USD 3,500 million (5)
     3.15 %      2026       3,374       3,496  
Senior notes USD 3,000 million (5)(10)
     2.80 %      2023       —        1,453  
Senior notes USD 2,000 million
     4.10 %      2046       1,986       1,986  
Senior notes USD 1,250 million (5)
     6.00 %      2024       956       1,250  
Senior notes USD 1,250 million
     6.75 %      2028       1,250       1,250  
Senior notes USD 1,000 million (5)
     7.13 %      2025       427       1,000  
Sustainability-linked senior notes USD 1,000 million (7)(*)
     4.75 %      2027       1,000       1,000  
Sustainability-linked senior notes USD 1,000 million (6)(*)
     5.13 %      2029       1,000       1,000  
Senior notes USD 789 million
     6.15 %      2036       783       783  
Sustainability-linked senior notes USD 600 million (3)(*)
     7.88 %      2029       600       —   
Sustainability-linked senior notes USD 500 million (4)(*)
     8.13 %      2031       500       —   
Senior notes CHF 350 million
     1.00 %      2025       416       382  
     
 
 
    
 
 
  
Total senior notes
 
     19,889       21,266  
Other long-term debt
 
     1       1  
Less current maturities
 
     (1,649 )      (2,086 ) 
Less debt issuance costs (8)
 
     (80 )      (78 ) 
 
 
 
    
 
 
  
Total senior notes and loans
 
   $ 18,161     $ 19,103  
 
 
 
    
 
 
  
 
(1)
In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 800 million euro bearing 7.38% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.100%-0.300%
per annum, from and including September 15, 2026.
(2)
In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 500 million euro bearing 7.88% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.100%-0.300%
per annum, from and including September 15, 2026.
(3)
In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $600 million bearing 7.88% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.100%-0.300%
per annum, from and including September 15, 2026.
(4)
In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $500 million bearing 8.13% annual interest and due September 2031. If Teva fails to achieve certain
 
 
  sustainability performance targets, the interest rate shall increase by
0.100%-0.300%
per annum, from and including September 15, 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)
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.
(7)
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.
(8)
Debt issuance costs as of December 31, 2023 include $26 million in connection with the issuance of the sustainability-linked senior notes in March 2023, partially offset by $6 million acceleration of issuance costs related to the cash tender offer.
(9)
In March 2023, Teva repaid $646 million of its 1.25% senior notes at maturity.
(10)
In July 2023, Teva repaid $1,000 million of its 2.8% senior notes at maturity.
*
Interest rate adjustments and a potential
one-time
premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 10c.
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 December 31, 2023 was effectively denominated in the following currencies: U.S. dollar 60%, euro 38% and Swiss franc 2%.
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 in February 2023 (“RCF”).
The RCF has a maturity date of
April 2026
, with two
one-year
extension options. The RCF contains certain covenants, including certain limitations on incurring liens and indebtedness and maintenance of certain financial ratios, including a maximum leverage ratio, which becomes more restrictive over time. In addition, the RCF is linked to two sustainability performance targets: (i) the Company’s S&P ESG Score and (ii) number of new regulatory submissions in low and middle-income countries. The RCF margin may increase or decrease depending on the Company’s sustainability performance.
On February 6, 2023, the terms of the RCF were amended to update the Company’s maximum leverage ratio under the RCF for certain periods. Under the terms of the RCF, as amended, the Company’s leverage ratio shall not exceed 4.00x in the fourth quarter of 2023, 4.00x in the first, second and third quarters of 2024, and 3.50x in the fourth quarter of 2024 and onwards.
The RCF can be used for general corporate purposes, including repaying existing debt. In July 2023, a total amount of $700 million was withdrawn under the RCF, of which $200 million was repaid in September 2023 and the remaining amount of $500 million was repaid in the fourth quarter of 2023. As of December 31, 2023, and as
of the date of this Annual Report on Form
10-K,
no amounts were outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date the financial statements are issued.
Under specified circumstances, including
non-compliance
with any of the covenants described above and the unavailability of any waiver, amendment or other modification thereto, the Company will not be able to borrow under the RCF. Additionally, violations of the covenants, under the above-mentioned circumstances, would result in an event of default in all borrowings under the RCF and, when greater than a specified threshold amount as set forth in each series of senior notes and sustainability-linked senior notes is outstanding, could lead to an event of default under the Company’s senior notes and sustainability-linked senior notes due to cross-acceleration provisions.
Teva expects that it will continue to have sufficient cash resources to support its debt service payments and all other financial obligations within one year from the date that the financial statements are issued.
As of December 31, 2023, the required annual principal payments of long-term debt (excluding debt issuance costs), including convertible senior debentures, starting from the year 2025, are as follows:
 
 
  
December 31,
2023
 
 
  
(U.S. $ in millions)
 
2025
    $ 1,843  
2026*
      3,397  
2027
      2,986  
2028
      2,076  
2029 and thereafter
      7,961  
    
 
 
  
     $ 18,263  
    
 
 
  
 
*
Including $23 million convertible notes. See note 9a.
v3.24.0.1
Derivative instruments and hedging activities
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities
NOTE 10—Derivative instruments and hedging activities:
 
a.
Foreign exchange risk management:
In 2023, approximately 47% 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 the past in order to hedge such an exposure.
 
Most of the counterparties to the derivatives are major banks and the Company is monitoring the associated inherent credit risks. The Company does not enter into derivative transactions for trading purposes.
 
b.
Interest risk management:
The Company raises capital through various debt instruments, including senior notes, sustainability-linked senior notes, bank loans 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 December 31, 2023, all outstanding senior notes, sustainability-linked senior notes and convertible debentures bear a fixed interest rate.
 
c.
Bifurcated embedded derivatives:
Upon issuance of sustainability-linked senior notes, Teva recognized embedded derivatives related to interest rate adjustments and a potential
one-time
premium payment upon failure to achieve certain sustainability performance targets, such as access to medicines in
low-to-middle-income
countries and absolute greenhouse gas emissions reduction, which were bifurcated and are accounted for separately as derivative financial instruments. As of December 31, 2023 the fair value of these derivative instruments is negligible.
 
d.
Derivative instrument outstanding:
The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting:
 
 
 
 
 
 
 
 
 
 
    
December 31,

2023
     
December 31,

2022
  
    
(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
  
    
December 31,

2023
     
December 31,

2022
     
December 31,

2023
    
December 31,

2022
  
Reported under
   
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Asset derivatives:
                                   
Other current assets:
                                   
Option and forward contracts
    $ —       $ —       $ 38     $ 29  
Other
non-current
assets:
                                   
Cross-currency swaps - cash flow hedge (1)
      8        —         —        —   
Liability derivatives:
                                   
Other current liabilities:
                                   
Option and forward contracts
    $ —       $ —       $ (39 )    $ (101 ) 
 
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives designated in fair value or cash flow hedging relationships:
 
Reported under
   
Financial expenses, net
     
Other comprehensive

income (loss)
  
    
Year ended December 31,
     
Year ended December 31,
  
    
 2023 
    
 2022 
     
 2021 
     
 2023 
     
 2022 
    
 2021 
  
    
(U.S. $ in millions)
  
Line items in which effects of hedges are recorded
    $ 1,057     $ 966      $ 1,058      $ 91      $ (270 )    $ (391 ) 
Cross-currency swaps - cash flow hedge (1)
      (11 )      —         —         1        —        —   
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives not designated as hedging instruments:
 
Reported under
   
Financial expenses, net
    
Net revenues
  
    
Year ended December 31,
    
Year ended December 31,
  
    
 2023 
    
 2022 
    
 2021 
    
 2023 
    
 2022 
    
 2021 
  
    
(U.S. $ in millions)
  
Line items in which effects of hedges are recorded
    $ 1,057     $ 966     $ 1,058     $ (15,846 )    $ (14,925 )    $ (15,878 ) 
Option and forward contracts (2)
      (54 )      (12 )      (45 )      —        —        —   
Option and forward contracts economic hedge (3)
      —        —        —        2       (11 )      (31 ) 
 
(1)
On March 31, 2023, Teva entered into a cross-currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen.
(2)
Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net.
(3)
Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, Swiss franc, Japanese yen, British pound, Russian ruble, Canadian dollar, Polish zloty and some other currencies to protect its projected operating results for 2023 and 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 2023, the negative impact from these derivatives recognized under revenues was $2 million. In 2022, the positive impact from these derivatives recognized under
revenues
was $11 million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. Cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
 
e.
Amortizations due to terminated derivative instruments:
Forward starting interest rate swaps and treasury lock agreements
In 2015, Teva entered into forward starting interest rate swaps and treasury lock agreements to protect the Company from interest rate fluctuations in connection with a future debt issuance the Company was planning. These forward starting interest rate swaps and treasury lock agreements were terminated in July 2016 upon the debt issuance. The termination of these transactions resulted in a loss
position
of $493 million, which was recorded in other comprehensive income (loss) and is amortized under financial expenses, net over the life of the debt.
With respect to these forward starting interest rate swaps and treasury lock agreements, losses of $31 million, $30 million and $37 million were recognized under financial expenses, net for the years ended December 31, 2023, 2022 and 2021, 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 initially 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, provided that the SPV may increase the commitment amount up to $1 billion if additional credit providers participate in the AR facility.
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, increasing the commitment size to $750 million from November 2023 to November 2025.
On November 7, 2023, the SPV amended the AR Facility agreement by including an additional receivables purchaser and increased the commitment in an amount of up to $250 million, to $1 billion through March 2024, and in an amount of $125 million, to $875 million from March 2024 through November 2025. The SPV may amend the agreement and increase the commitment amount up to $1 billion from March 2024 through November 2025 if additional commitments are provided under the AR facility.
Under the AR Facility, Teva’s subsidiaries continuously sell their accounts receivables, originated in the U.S., to the SPV and the SPV
on-sells
them to the receivables purchasers.
The SPV is a variable interest entity (“VIE”) for which Teva is considered to be the primary beneficiary. The SPV’s sole business consists of the purchase of receivables from Teva’s subsidiaries and the subsequent transfer of such receivables to the receivables purchasers.
Although the SPV is included in Teva’s consolidated financial statements, it is a separate legal entity with separate creditors. The assets of the SPV are not available to pay creditors of Teva or its subsidiaries.
Upon the transfer of ownership and control of the receivables to the SPV, Teva and its subsidiaries have no retained interests in the receivables sold, and they become unavailable to Teva’s creditors should the relevant seller become insolvent.
 
Teva has collection and administrative responsibilities for the receivables sold to the SPV. The fair value of these servicing arrangements as well as the fees earned was immaterial.
The Company accounts for receivables sold from the SPV to the receivables purchasers as a sale of financial assets under ASC 860 and derecognizes the trade receivables from the Company’s Consolidated Balance Sheet.
The total balance of accounts receivables sold to the receivables purchasers and derecognized by the SPV, as of December 31, 2023 and 2022, was $864 million and $820 million, respectively. In addition to the accounts receivables sold, as of December 31, 2023 and 2022, an amount of $437 million and $436 million of the SPV’s accounts receivables was pledged by the SPV as a seller guarantee, and is included under “Accounts receivables, net”, in the Consolidated Balance Sheet.
In the years ended December 31, 2023 and 2022, Teva received proceeds of $861 million and $820 million, respectively, under the AR facility, which are included in cash from operating activities in the Consolidated Statements of Cash Flows for the year ended December 31, 2023 and 2022, respectively.
EU securitization program
In April 2011, Teva established a trade receivables securitization program (the “EU securitization program”) to sell accounts receivables, mainly originated in Europe, to BNP Paribas Bank (“BNP”). Under the EU securitization program, Teva, on a consolidated basis through its participating subsidiaries, receives an initial cash purchase price and the right to a deferred purchase price (“DPP”), according to the purchase price for the receivables sold by it.
On an individual seller basis, each Teva subsidiary participating in the EU securitization program sells receivables to BNP at their nominal amount. BNP then immediately
on-sells
such receivables at their nominal amount to a bankruptcy-remote special-purpose entity (“SPE”), which in turn sells such receivables to a conduit sponsored by BNP (“the conduit”) for an initial cash purchase price (equal to the nominal amount of such receivables less a discount) and the right to receive a DPP.
The SPE is a VIE for which Teva is considered to be the primary beneficiary. The SPE’s sole business consists of the purchase of receivables from Teva subsidiaries and the subsequent sale of such receivables to the conduit.
Although the SPE is included in Teva’s consolidated financial statements, it is a separate legal entity with separate creditors. The conduit and other designated creditors of the SPE are entitled, both before and upon the SPE’s liquidation, to be paid out of the SPE’s assets prior to the DPP payable to Teva. The SPE’s assets are not available to pay Teva’s or its subsidiaries’ creditors.
In August 2021, Teva extended the EU securitization program by an additional five years, to August 2026.
Once a Teva subsidiary sells receivables to BNP, such subsidiary does not retain any interests in the receivables sold and does not have access to such receivables upon its insolvency. The conduit has all the rights in the securitized trade receivables, including the right to pledge or dispose such receivables. Consequently, receivables sold under this agreement are
de-recognized
from Teva’s Consolidated Balance Sheet.
The portion of the purchase price for the receivables which is not paid in cash by the conduit is a DPP asset. The conduit pays the SPE the DPP from collections received by the conduit from the securitized trade receivables
 
(after paying senior costs and expenses, including the conduit’s debt service obligations), which the SPE then pays to Teva. The DPP asset represents a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The DPP asset is included in other current assets on Teva’s Consolidated Balance Sheet.
Teva has collection and administrative responsibilities for the sold receivables. The fair value of these servicing arrangements as well as the fees earned was immaterial.
The DPP asset as of December 31, 2023 and 2022 was $247 million and $270 million, respectively.
As of December 31, 2023 and 2022, the outstanding principal amount of receivables sold, net of DPP, was $686 million and $636 million, respectively.
The following table summarizes the change in the sold receivables outstanding balance, net of DPP, under the outstanding securitization program:
 
 
 
 
 
 
 
 
 
 
    
As of and for the year ended
December 31,
  
    
 2023 
     
 2022 
  
    
(U.S. $ in millions)
  
Sold receivables at the beginning of the year
    $ 636      $ 685  
Proceeds from sale of receivables
      4,391        4,653  
Cash collections (remitted to the owner of the receivables)
      (4,365 )       (4,665 ) 
Effect of currency exchange rate changes
      24        (37 ) 
    
 
 
     
 
 
  
Sold receivables at the end of the year
    $ 686      $ 636  
    
 
 
     
 
 
  
 
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 December 31, 2023 and December 31, 2022, the outstanding
accounts payables to suppliers
participating in these supplier finance programs were $108 million and $34 million, respectively.
v3.24.0.1
Legal Settlements and Loss Contingencies
 12 Months Ended
Dec. 31, 2023
Legal Settlements and Loss Contingencies
NOTE 11—Legal settlements and loss contingencies:
Legal settlements and loss contingencies in 2023 were expenses of $1,043 million, compared to expenses of $2,082 million in 2022 and expenses of $717 million in 2021. Expenses in 2023 were mainly related to an estimated provision for the U.S. DOJ patient assistance program litigation, an update to the estimated settlement provision for the opioid cases, the provision for the settlement of the U.S. DOJ criminal antitrust charges on the marketing and pricing of certain Teva USA generic products, and the provision for the settlement of the reverse-payment antitrust litigation over certain HIV medicines.
 
Legal settlements and loss contingencies in 2022 were mainly related to updates of the estimated settlement provision recorded in connection with the remaining opioid cases.
Legal settlements and loss contingencies in 2021 were mainly related to an update of the estimated settlement provision recorded in connection with the remaining opioid cases, the provision for the carvedilol patent litigation as well as a liability which was substantially offset by insurance receivable related to the Ontario Teachers Securities Litigation discussed in note 12b.
As of December 31, 2023 and 2022, Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses and other taxes and long-term liabilities was $4,771 million and $4,186 million, respectively.
v3.24.0.1
Commitments and contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and contingencies
NOTE 12—Commitments and contingencies:
 
a.
Commitments:
Royalty commitments:
The Company is committed to pay royalties to owners of
know-how,
partners in alliances and other certain arrangements and to parties that financed research and development, at a wide range of rates as a percentage of sales or of the gross margin of certain products, as defined in the underlying agreements.
Royalty expenses in each of the years ended December 31, 2023, 2022 and 2021 were $543 million, $560 million and $522 million, respectively.
Milestone commitments:
Teva has committed to make potential future milestone payments to third parties under various agreements. These payments are contingent upon the occurrence of certain future events and, given the nature of these events, it is unclear when, if ever, Teva may be required to pay such amounts. As of December 31, 2023, if all development milestones and targets, for compounds in phase 2 and more advanced stages of development, are achieved, the total contingent payments could reach an aggregate amount of up to $20 million. Additional contingent payments are owed upon achievement of product approval or launch milestones.
 
b.
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
®
) in September 2007. The Court of Appeals for the Federal Circuit reinstated the $235.5 million jury verdict, not including
pre-
or post-judgment interest, finding Teva liable for patent infringement. The U.S. Supreme Court denied Teva’s appeal for a rehearing. The case has been remanded to the district court for further proceedings on Teva’s other legal and equitable defenses that have not yet been considered by the district court. Teva recognized a provision based on its offer to settle the matter.
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
®
(apixaban). In May 2022, the U.K. High Court held that the compound patent and SPC are invalid and Teva began selling its generic version of Eliquis
®
(apixaban). In May 2023, the U.K. Court of Appeal upheld this decision and denied BMS’s request to appeal to the U.K. Supreme Court. On October 31, 2023, the U.K. Supreme Court denied BMS’s application for further review, making the decision to revoke the compound patent and SPC final. Separately, in February 2021, Teva initiated a patent invalidity action against the formulation patents, which are also under opposition at the European Patent Office (“EPO”). On July 15, 2022, the U.K. High Court held that these formulation patents were invalid but granted permission to appeal, which was subsequently stayed pending the outcome of the opposition at the EPO to one of the formulation patents. On December 21, 2023, the EPO’s Technical Board of Appeal held its hearing on the opposition, and a written decision is expected in several months.
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 has ordered that the first trial commence on March 18, 2024, which 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. The claims against the generic manufacturers (including Teva) 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
injuries, which was later refiled in a New Jersey state court in October 2022 and is in the very initial stages of discovery. State court ranitidine cases naming Teva are also pending in coordinated proceedings in California and Pennsylvania. Teva was recently dismissed from all ranitidine claims pending in Illinois based on preemption grounds, which plaintiffs could appeal.
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 individuals and end payors also 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. Teva, along with the other defendants, will be moving to dismiss the claims in this related proceeding. Similar lawsuits are pending in Canada and Germany.
Competition Matters
As part of its generic pharmaceuticals business, Teva has challenged a number of patents covering branded pharmaceuticals, some of which are among the most widely-prescribed and well-known drugs on the market. Many of Teva’s patent challenges have resulted in litigation relating to Teva’s attempts to market generic versions of such pharmaceuticals under the federal Hatch-Waxman Act. Some of this litigation has been resolved through settlement agreements in which Teva obtained a license to market a generic version of the drug, often years before the patents expire.
Teva and its subsidiaries have been named as defendants in cases that allege antitrust violations arising from such settlement agreements. The plaintiffs in these cases are usually direct and indirect purchasers of pharmaceutical products, some of whom assert claims on behalf of classes of all direct and indirect purchasers, and they typically allege that (i) Teva received something of value from the innovator in exchange for an agreement to delay generic entry, and (ii) significant savings could have been realized if there had been no settlement agreement and generic competition had commenced earlier. These plaintiffs seek various forms of injunctive and monetary relief, including damages based on the difference between the brand price and what the generic price allegedly would have been and disgorgement of profits, which are often automatically tripled under the relevant statutes, plus attorneys’ fees and costs. The alleged damages generally depend on the size of the branded market and the length of the alleged delay, and can be substantial, potentially measured in multiples of the annual brand sales, particularly where the alleged delays are lengthy or branded drugs with annual sales in the billions of dollars are involved.
 
Teva believes that its settlement agreements are lawful and serve to increase competition, and has defended them vigorously. In Teva’s experience to date, these cases have typically settled for a fraction of the high end of the damages sought, although there can be no assurance that such outcomes will continue.
In June 2013, the U.S. Supreme Court held, in Federal Trade Commission (“FTC”) v. Actavis, Inc., that a rule of reason test should be applied in analyzing whether such settlements potentially violate the federal antitrust laws. The Supreme Court held that a trial court must analyze each agreement in its entirety in order to determine whether it violates the antitrust laws. This test has resulted in increased scrutiny of Teva’s patent settlements, additional action by the FTC and state and local authorities, and an increased risk of liability in Teva’s currently pending antitrust litigations.
In November 2020, the European Commission issued a final decision in its proceedings against both Cephalon and Teva, finding that the 2005 settlement agreement between the parties had the object and effect of hindering the entry of generic modafinil, and imposed fines totaling euro 60.5 million on Teva and Cephalon. Teva and Cephalon filed an appeal against the decision in February 2021, 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.
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
®
). The cases were filed by a purported class of direct purchasers, by a purported class of indirect purchasers and by certain chain pharmacies in the U.S. District Court for the District of New Jersey. The plaintiffs claim that the settlement agreement between Wyeth and Teva unlawfully delayed generic entry. In March 2020, the district court temporarily stayed discovery and referred the case to mediation, and discovery remains stayed. Annual sales of Effexor XR
®
were approximately $2.6 billion at the time of settlement and at the time Teva launched its generic version of Effexor XR
®
in July 2010.
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
®
). The plaintiffs claimed that the settlement agreement unlawfully delayed generic entry and sought unspecified damages. On February 1, 2023, the court denied plaintiffs’ renewed motion for class certification. During February 2023, a number of direct purchasers who would otherwise have been members of the proposed class had it been certified, filed suit as individual plaintiffs, which action was transferred to the U.S. District Court for the District of New Jersey. Annual sales of Lamictal
®
were approximately $950 million at the time of the settlement and approximately $2.3 billion at the time Teva launched its generic version of Lamictal
®
in July 2008.
In April 2013, purported classes of direct purchasers of, and end payers for, Niaspan
®
(extended release niacin) filed claims against Teva and Abbott for violating the antitrust laws by entering into a settlement agreement in April 2005 to resolve patent litigation over the product. A multidistrict litigation has been established in the U.S. District Court for the Eastern District of Pennsylvania. Throughout 2015 and in January 2016, several individual direct-purchaser
opt-out
plaintiffs filed complaints with allegations nearly identical to those of the direct purchasers’ class. The court denied the indirect purchasers’ motion for class certification with prejudice, and on April 24, 2023, the denial was affirmed by the Court of Appeals for the Third Circuit. On June 5, 2023, the Court of Appeals for the Third Circuit denied the indirect purchasers’ petition for
re-hearing.
In October 2016, the District Attorney for Orange County, California, filed a similar complaint in California state court, alleging violations of state law and seeking restitution and civil penalties. Annual sales of Niaspan
®
were approximately $416 million at the time of the settlement and approximately $1.1 billion at the time Teva launched its generic version of Niaspan
®
in September 2013.
 
Since January 2014, numerous lawsuits have been filed in the U.S. District Court for the Southern District of New York by purported classes of
end-payers
for, and direct-purchasers of, Actos
®
and Actoplus Met
®
(pioglitazone and pioglitazone plus metformin) against Takeda, the innovator, and several generic manufacturers, including Teva, Actavis and Watson Pharmaceuticals, Inc. (“Watson”). The lawsuits allege, among other things, that the settlement agreements between Takeda and the generic manufacturers violated the antitrust laws. The court dismissed the
end-payers’
lawsuits against all defendants in September 2015. On February 8, 2017, the Court of Appeals for the Second Circuit affirmed the dismissal in part and vacated and remanded the dismissal in part with respect to the claims against Takeda. On October 8, 2019, the district court dismissed, with prejudice, the direct purchasers’ claims against the generic manufacturers, including Teva, Actavis, and Watson. At the time of Teva’s settlement, annual sales of Actos
®
and Actoplus Met
®
were approximately $3.7 billion and approximately $500 million, respectively. At the time Teva launched its authorized generic version of Actos
®
and Actoplus Met
®
in August 2012, annual sales of Actos
®
and Actoplus Met
®
were approximately $2.8 billion and approximately $430 million, respectively.
Putative classes of direct-purchaser and
end-payer
plaintiffs have filed antitrust lawsuits (which have since been coordinated in federal court in Delaware) against Amgen and Teva alleging that the settlement agreement between Amgen and Teva dated January 2, 2019, resolving patent litigation over cinacalcet (generic Sensipar
®
), violated antitrust laws. In June 2023, the U.S. Court of Appeals for the Third Circuit granted Teva’s petition for interlocutory appellate review of the trial court’s partial denial of Teva’s motion to dismiss, and the appeal remains pending. In January 2024, Teva entered into private settlements pursuant to which the named
end-payer
plaintiffs, the named direct-payer plaintiffs, and certain other members of the putative class of direct payer plaintiffs agreed to dismiss all of their claims with prejudice, bringing the proceedings against Teva to an end. Annual sales of Sensipar
®
in the United States were approximately $1.4 billion at the time Teva launched its generic version of Sensipar
®
in December 2018, and at the time of the January 2, 2019 settlement.
In August 2019, certain direct-purchaser plaintiffs filed claims in federal court in Philadelphia against Teva and its affiliates alleging that the September 2006 patent litigation settlement relating to AndroGel
®
1% (testosterone gel) between Watson, from which Teva later acquired certain assets and liabilities, and Solvay Pharmaceuticals, Inc. (“Solvay”) violated antitrust laws. Annual sales of AndroGel
®
1% were approximately $350 million at the time of the earlier Watson/Solvay settlement and approximately $140 million at the time Actavis launched its generic version of AndroGel
®
1% in November 2015. A provision for this matter was previously included in the financial statements.
Between September 1, 2020 and December 20, 2020, plaintiffs purporting to represent putative classes of direct and indirect purchasers and
opt-out
retailer purchasers of Bystolic
®
(nebivolol hydrochloride) filed complaints in the U.S. District Court for the Southern District of New York against several generic manufacturers, including Teva, Actavis, and Watson, alleging, among other things, that the settlement agreements these generic manufacturers entered into with Forest Laboratories, Inc., the innovator, to resolve patent litigation over Bystolic
®
violated the antitrust laws. The cases were coordinated and on February 21, 2023, the court granted defendants’ motion to dismiss all claims in the second amended complaints with prejudice. Plaintiffs have filed an appeal in the U.S. Court of Appeals for the Second Circuit, which is pending. Annual sales of Bystolic
®
in the United States were approximately $700 million at the time of Watson’s 2013 settlement with Forest.
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
®
and/or Truvada
®
and Atripla
®
, although plaintiffs in the California litigation abandoned any claim for damages relating to the Viread
®
settlement. In May 2023, Teva and Gilead reached a settlement agreement with the retailer plaintiffs in the California litigation and Teva recognized a provision for this matter based on such settlement. A trial was held against the remaining plaintiffs in the California litigation, and on June 30, 2023, the jury issued a verdict in favor of Teva and Gilead, rejecting all of the remaining plaintiffs’ claims. On November 1, 2023, plaintiffs’ motion for a new trial was denied. In the New Mexico litigation, in response to Teva’s petition for a writ of certiorari regarding Teva’s motion to dismiss the complaint, the New Mexico Supreme Court remanded the litigation on July 6, 2023 to the trial court for limited discovery and for further proceedings on the issue of whether the trial court may exercise specific personal jurisdiction over Teva. Annual sales in the United States at the time of the settlement of Viread
®
, Truvada
®
and Atripla
®
were approximately $582 million, $2.4 billion, and $2.9 billion, respectively. Annual sales in the United States at the time Teva launched its generic version of Viread
®
in 2017, Truvada
®
in 2020 and Atripla
®
in 2020 were approximately $728 million, $2.1 billion and $444 million, respectively.
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 October 10, 2022, the European Commission issued a Statement of Objections, which sets forth its preliminary allegations that Teva had engaged in anti-competitive practices. Teva responded in writing to the Statement of Objections on February 8, 2023 and orally at a hearing on March 23, 2023. The European Commission issued further Requests for Information, to which Teva is responding. Annual sales of COPAXONE in the European Economic Area in 2021 were approximately $373 million.
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 a partial judgment handed down on September 18, 2023. That partial judgment will be made operative by the remaining portion of the judgment, which is expected in the first half of 2024. 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
®
), entered into in January 2016. Plaintiff claimed that the settlement was part of a conspiracy among Takeda and the generic manufacturers to unlawfully restrict output of colchicine by delaying generic entry. On September 5, 2023, Teva and the direct purchaser plaintiffs settled the case, pursuant to which the direct purchaser plaintiffs dismissed all claims against Teva with prejudice. In November 2023, a group of plaintiffs purporting to represent a class of
end-payors
filed a putative class action suit in the U.S. District Court for the Southern District of New York against Takeda and several generic manufacturers, including Watson and Teva, asserting similar allegations as those previously brought by the direct purchaser plaintiffs. The
end-payor
litigation is in preliminary stages. Annual sales of Colcrys
®
in the United States were approximately $187 million at the time of the patent settlement.
In November 2022, two complaints filed by plaintiffs purporting to represent retailer purchasers and a putative class of
end-payor
purchasers were filed in the U.S. District Court for the District of New Jersey against Teva and its marketing partner, Natco Pharma Limited (“Natco”), alleging violations of the antitrust laws in connection with their December 2015 settlement of patent litigation with Celgene Corporation (which was subsequently acquired by BMS) involving the drug Revlimid
®
(lenalidomide). The complaints also name Celgene and BMS as defendants. On January 24, 2023, the complaints were consolidated for
pre-trial
purposes only with an earlier-filed, already consolidated Insurer
Opt-Out
Action filed against BMS and Celgene. On February 16, 2023, plaintiffs filed amended complaints adding additional plaintiffs. On May 16, 2023, Teva and Natco, along with Celgene, moved to dismiss the complaints against them, and those motions remain pending while discovery is ongoing. Additionally, on October 6, 2023, two individual payor plaintiffs brought claims similar to those described above in the U.S. District Court for the Northern District of California. Annual sales of Revlimid
®
in the United States were approximately $3.5 billion at the time of the settlement.
On December 2, 2022, plaintiffs purporting to represent putative classes of indirect purchasers of EpiPen
®
(epinephrine injection) and NUVIGIL
®
(armodafinil) filed a complaint in the U.S. District Court for the District of Kansas against Teva, Cephalon, and a former Teva executive. Teva owns the New Drug Application (“NDA”) for NUVIGIL and sold the brand product, for which generic entry occurred in 2016. Teva filed an ANDA to sell generic EpiPen
®
, which Teva launched in 2018, following receipt of FDA approval. The complaint alleges, among other things, that the defendants violated federal antitrust laws, the RICO Act, and various state laws in connection with settlements resolving patent litigation relating to those products. Plaintiffs seek injunctive relief, compensatory and punitive damages, interest, attorneys’ fees and costs. On September 26, 2023, plaintiffs filed a brief in opposition to Teva’s motion to dismiss the amended complaint, in which plaintiffs stated an intent to narrow the case by dismissing all claims related to the alleged delay of generic EpiPen
®
, thus limiting their claims to those relating to the alleged delay of generic NUVIGIL. A decision on Teva’s motion to dismiss remains pending. Annual sales of NUVIGIL in the United States were approximately $300 million at the time Teva entered into the first settlement with an ANDA filer in 2012; annual sales of EpiPen
®
in the United States were approximately $600 million at the time Teva entered into its settlement agreement for that product in 2012.
In May 2023, certain
end-payor
plaintiffs filed putative class action complaints in the U.S. District Court for the District of Massachusetts against Teva and a number of its affiliates, alleging that Teva engaged in anticompetitive conduct to suppress generic competition to its branded QVAR asthma inhalers in violation of
state and federal antitrust laws and state consumer protection laws. Teva moved to dismiss these claims on October 18, 2023, and that motion remains pending.
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,
gel, and ointment), warfarin, nadolol, temozolomide, and tobramycin. On August 21, 2023, Teva USA entered into a
3-year
deferred prosecution agreement (“DPA”) with the DOJ. Under the terms of the DPA, Teva USA: (i) admitted to violating the antitrust laws by agreeing with competitors, in three instances between 2013 and 2015 involving three separate customers, not to bid on an opportunity to supply a customer with a particular generic product (in the first instance pravastatin, in the second clotrimazole, and in the third tobramycin); (ii) agreed to divest the pravastatin that it sells in the United States to a third-party buyer; (iii) agreed to donate $50 million worth of clotrimazole and tobramycin, valued at wholesale acquisition cost (“WAC”), to humanitarian organizations over five years; and (iv) agreed to pay a fine in the amount of $225 million over 5 years, with $22.5 million due each year from 2024 through 2027, and $135 million due in 2028. Teva recognized a provision for the resolution of this case.
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 (though not all) 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, but not all, 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
plaintiffs, including most recently an
opt-out
complaint filed by approximately 150 hospitals and pharmacies on July 1, 2023. These complaints, which allege that the defendants engaged in conspiracies to fix prices and/or allocate market share of generic products have been brought against various manufacturer defendants, including Teva USA and Actavis. The plaintiffs generally seek injunctive relief and damages under federal antitrust law, and damages under various state laws. From 2019 to 2021, certain individual plaintiffs commenced civil actions in the Pennsylvania Court of Common Pleas of Philadelphia County against many of the defendants in the Pennsylvania MDL, including Teva and Actavis, but no complaints have been filed in the actions and each of the three cases have been placed in deferred status. Certain counties in New York and Texas have also commenced civil actions against many of the defendants in the Pennsylvania MDL, including Teva and Actavis, and the complaints have been transferred to the Pennsylvania MDL. There is also one similar complaint brought in Canada, which is in its early stages and alleges that the defendants engaged in conspiracies to fix prices and/or allocate market share of generic drug products to the detriment of a class of private payors.
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 August 24, 2023, Teva filed a petition to appeal the summary judgment ruling with the First Circuit Court of Appeals, which was granted on November 17, 2023. In the third quarter of 2023, 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
Advanced Care Scripts, Inc., on the grounds that Humana lacks standing to assert RICO claims and the claims are time-barred and/or insufficiently pled, and that motion remains pending. On November 17, 2022, United Healthcare also filed an action against Teva in the U.S. District Court for the District of New Jersey based on the conduct alleged in the DOJ PAP Complaint, which Teva moved to dismiss on March 10, 2023, and that motion was denied without prejudice on November 28, 2023 in anticipation of United Healthcare filing an amended complaint.
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 and risperidone LAI. Teva is cooperating with the request for documents.
Opioids Litigation
Since May 2014, more than 3,500 complaints have been filed with respect to opioid sales and distribution against various Teva affiliates, along with several other pharmaceutical companies, by a number of cities, counties, states, other governmental agencies, tribes and private plaintiffs (including various putative class actions of individuals) in both state and federal courts. The vast majority of these cases have been resolved. The
remaining,
non-settled
cases include a political subdivision case brought by the City of Baltimore and those brought by third party payers, both as individual cases and as class actions. The majority of the remaining cases are consolidated in the multidistrict litigation in the Northern District of Ohio (the “MDL Opioid Proceeding”). These cases assert claims under similar provisions of different state laws and generally allege that the defendants engaged in improper marketing and distribution of opioids, including ACTIQ
®
and FENTORA
®
. The complaints also assert claims related to Teva’s generic opioid products.
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
damages. In many of these cases, plaintiffs are seeking joint and several damages among all defendants.
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 confirmed participation from all states except Nevada, and decided to move forward with the participation process of the subdivisions. In February 2023, Teva and the Tribes finalized their opioids settlement with participation from 100% of the Tribes.
In June 2023, Teva finalized and fully resolved its nationwide settlement agreement with the states and 99% of litigating subdivisions. Under the financial terms of the nationwide settlement agreement with the states and subdivisions, Teva will pay up to $4.25 billion (including the already settled cases), spread over 13 years. This total includes the supply of up to $1.2 billion of Teva’s generic version of Narcan
®
(naloxone hydrochloride nasal spray), valued at wholesale acquisition cost, over 10 years or cash at 20% of the wholesale acquisition cost ($240 million) in lieu of product. In June 2023, Teva reached a separate settlement with the remaining state, Nevada. Under the terms of the Nevada settlement, Teva will pay Nevada $193 million over 20 years, including all fees and costs.
Teva has now settled with all 50 U.S. states and the Tribes. Teva’s estimated cash payments between 2023 and 2027 for all opioids settlements are: $424 million paid in 2023, $418 million payable in 2024; $364 million payable in 2025; $368 million payable in 2026; and $368 million payable in 2027. These payments are subject to change based on various factors including, but not limited to, timing of payments, most favored nations clauses associated with prior settlements, and the states’ elections to take Teva’s generic version of Narcan
®
(naloxone hydrochloride nasal spray). The remaining payments, subject to adjustments, will be paid beyond 2028.
Various Teva affiliates, along with several other pharmaceutical companies, were named as defendants in opioids cases initiated by approximately 500 U.S. hospitals and other healthcare providers asserting opioid-related claims, including public nuisance. Specifically, the lawsuits brought by the hospitals allege that they have incurred financial harm in the form of what they claimed to be increased operating costs for treating patients
 
whose underlying illnesses are purportedly exacerbated or complicated by opioid addiction. In July 2023, Teva and the representatives for acute care hospitals reached an agreement in principle on the financial terms of a national settlement. Under the financial terms of the proposed national settlement agreement, Teva will pay up to $126 million in cash, spread over 18 years, and supply up to $49 million of Teva’s generic version of Narcan
®
(naloxone hydrochloride nasal spray), valued at wholesale acquisition cost, over 7 years. Teva’s proposed settlement agreement with the acute care hospitals and health systems is contingent upon Teva’s satisfaction, in the exercise of its sole discretion, with the level of participation by acute care hospitals and health care systems in the proposed settlement agreement.
In light of the nationwide settlement agreement between Teva and the States’ Attorneys General and their subdivisions, Teva’s indemnification obligations arising from Teva’s acquisition of the Actavis Generics business for opioid-related claims, prior settlements reached with Louisiana, Texas, Rhode Island, Florida, San Francisco, West Virginia, New York, the Tribes, and Nevada, the agreement in principle with the hospitals discussed above, as well as an estimate for a number of items including, but not limited to, costs associated with administering injunctive terms, and most favored nations clauses associated with prior settlements, the Company has recorded a provision. The provision is a reasonable estimate of the ultimate costs for Teva’s opioids settlements, after discounting payments to their net present value. Opioid-related lawsuits brought against Teva by the City of Baltimore, Maryland and dozens of third-party payers, such as unions and welfare funds, remain pending, with the Baltimore trial scheduled to commence in September 2024. A reasonable upper end of a range of loss cannot be determined for the entirety of the remaining opioid-related cases. An adverse resolution of any of these lawsuits or investigations may involve large monetary penalties, damages, and/or other forms of monetary and
non-monetary
relief and could have a material and adverse effect on Teva’s reputation, business, results of operations and cash flows.
In addition, Teva, certain of its subsidiaries and other defendants, are defending claims and putative class action lawsuits in Canada related to the manufacture, sale, marketing and distribution of opioid medications. The lawsuits include a claim by the Province of British Columbia on behalf of itself and a putative class of other federal and provincial governments, and claims of municipalities, First Nations, and persons who used opioids on behalf of themselves and putative classes. These cases are in early stages. In November and December 2023, the British Columbia Supreme Court held a hearing regarding preliminary motions, including plaintiffs’ certification motion, which remain pending.
Shareholder Litigation
On November 6, 2016 and December 27, 2016, two putative securities class actions were filed in the U.S. District Court for the Central District of California against Teva and certain of its current and former officers and directors. Those lawsuits subsequently were consolidated and transferred to the U.S. District Court for the District of Connecticut (the “Ontario Teachers Securities Litigation”). On December 13, 2019, the lead plaintiff filed an amended complaint, purportedly on behalf of purchasers of Teva’s securities between February 6, 2014 and May 10, 2019, asserting that Teva and certain of its current and former officers and directors violated federal securities and common laws in connection with Teva’s alleged failure to disclose pricing strategies for various drugs in its generic drug portfolio and by making allegedly false or misleading statements in certain offering materials. From July 2017 to June 2019, other putative securities class actions were filed in other federal courts based on similar allegations and claims, and were transferred to the U.S. District Court for the District of Connecticut. Between August 2017 and January 2022, twenty-three complaints were filed against Teva and certain of its current and former officers and directors on behalf of plaintiffs in various forums across the country, but many of those plaintiffs
“opted-out”
of the Ontario Teachers Securities Litigation. On March 10, 2020, the Court consolidated the Ontario Teachers Securities Litigation with all of the above-referenced putative class actions for all purposes and the
“opt-out”
cases for pretrial purposes. On January 18, 2022, Teva entered
into a settlement in the Ontario Teachers Securities Litigation for $420 million, which received final approval from the court on June 2, 2022. The vast majority of the total settlement amount was covered by the Company’s insurance carriers, with a small portion contributed by Teva. Additionally, as part of the settlement, Teva admitted no liability and denied all allegations of wrongdoing. On January 22, 2021, the Court dismissed the
“opt-out”
plaintiffs’ claims arising from statements made prior to the five-year statute of repose, but denied Teva’s motion to dismiss their claims under Israeli laws. On May 24, 2021, Teva moved to dismiss a majority of the
“opt-out”
complaints on various other grounds, and on May 1, 2023, the Court granted in part and denied in part Teva’s motions. Teva has settled several
“opt-out”
claims, but a number of
opt-out
cases remain outstanding. Teva also reached a settlement with shareholders who filed class actions in Israel with similar allegations to those raised in the Ontario Teachers Securities Litigation, which was approved by the court in Israel in November 2023.
On September 23, 2020, a putative securities class action was filed in the U.S. District Court for the Eastern District of Pennsylvania against Teva and certain of its former officers. On August 10, 2021, the lead plaintiff filed a corrected amended class action complaint, purportedly on behalf of persons who purchased or otherwise acquired Teva securities between October 29, 2015 and August 18, 2020. The corrected amended complaint alleges that Teva and certain of its current and former officers violated federal securities laws by allegedly making false and misleading statements regarding the commercial performance of COPAXONE, namely, by failing to disclose that Teva had allegedly caused the submission of false claims to Medicare through Teva’s donations to bona fide independent charities that provide financial assistance to patients, which allegedly impacted COPAXONE’s commercial success and the sustainability of its revenues and resulted in the DOJ PAP Complaint filed by the DOJ. The corrected amended complaint seeks unspecified damages and legal fees. On August 2, 2022, the court stayed all proceedings other than class certification proceedings pending the resolution of the DOJ PAP Complaint. On September 13, 2022, the plaintiff moved for class certification, which was granted by the court on November 3, 2023. On November 17, 2023, Teva filed a petition with the Third Circuit Court of Appeals for leave to appeal the class certification ruling, and that petition is pending. A motion to approve a securities class action was also filed in the Central District Court in Israel, which has been stayed pending the U.S. litigation, with similar allegations to those made in the above complaint filed in the U.S. District Court for the Eastern District of Pennsylvania.
Environmental Matters
Teva or its subsidiaries are party to a number of environmental proceedings, or have received claims, including under the federal Superfund law or other federal, provincial or state and local laws, imposing liability for alleged noncompliance, or for the investigation and remediation of releases of hazardous substances and for natural resource damages. Many of these proceedings and claims seek to require the generators of hazardous wastes disposed of at a third party-owned site, or the party responsible for a release of hazardous substances that impacted a site, to investigate and clean the site or to pay or reimburse others for such activities, including for oversight by governmental authorities and any related damages to natural resources. Teva or its subsidiaries have received claims, or been made a party to these proceedings, along with others, as an alleged generator of wastes that were disposed of or treated at third-party waste disposal sites, or as a result of an alleged release from one of Teva’s facilities or former facilities.
Although liability among the responsible parties, under certain circumstances, may be joint and several, these proceedings are frequently resolved so that the allocation of
clean-up
and other costs among the parties reflects the relative contributions of the parties to the site conditions and takes into account other pertinent factors. Teva’s potential liability varies greatly at each of the sites; for some sites the costs of the investigation,
clean-up
and natural resource damages have not yet been determined, and for others Teva’s allocable share of liability has not been determined. At other sites, Teva has taken an active role in identifying those costs, to the
extent they are identifiable and estimable, which do not include reductions for potential recoveries of
clean-up
costs from insurers, indemnitors, former site owners or operators or other potentially responsible parties. In addition, enforcement proceedings relating to alleged violations of federal, state, commonwealth or local requirements at some of Teva’s facilities may result in the imposition of significant penalties (in amounts not expected to materially adversely affect Teva’s results of operations) and the recovery of certain costs and natural resource damages, and may require that corrective actions and enhanced compliance measures be implemented.
Item 103 of Regulation
S-K
promulgated by the SEC requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions, unless the Company reasonably believes that the matter will result in no monetary sanctions, or in monetary sanctions, exclusive of interest and costs, of less than $300,000. The following matter is disclosed in accordance with that requirement. On July 8, 2021, the National Green Tribunal Principal Bench, New Delhi, issued an order against Teva’s subsidiary in India, Teva API India Private Limited, finding
non-compliance
with environmental laws and assessed a penalty of $1.4 million. The Company disputed certain of the findings and the amount of the penalty and filed an appeal before the Supreme Court of India. On August 5, 2021, the Supreme Court of India admitted the appeal for hearing and granted an interim unconditional stay on the National Green Tribunal’s order. The Company does not believe that the eventual outcome of such matter will have a material effect on its business.
Other Matters
On February 1, 2018, former shareholders of Ception Therapeutics, Inc., a company that was acquired by and merged into Cephalon in 2010, prior to Cephalon’s acquisition by Teva, filed breach of contract and other related claims against the Company, Teva USA and Cephalon in the Delaware Court of Chancery. Among other things, the plaintiffs allege that Cephalon breached the terms of the 2010 Ception-Cephalon merger agreement by failing to exercise commercially reasonable efforts to develop and commercialize CINQAIR
®
(reslizumab) for the treatment of eosinophilic esophagitis (“EE”). The plaintiffs claim damages of at least $200 million, an amount they allege is equivalent to the milestones payable to the former shareholders of Ception in the event Cephalon were to obtain regulatory approval for EE in the United States ($150 million) and Europe ($50 million). On December 28, 2018, following defendants’ motion to dismiss the complaint, the court granted the motion in part and dismissed all of plaintiffs’ claims, except for their claim against Cephalon for breach of contract. In November 2021, plaintiffs moved to amend their complaint to, among other things, reassert claims against the Company and Teva USA. However, on July 12, 2022, plaintiffs filed a new amended complaint that includes claims against Teva USA but not the Company, in exchange for Teva USA’s agreement to guarantee any judgment entered against Cephalon in the litigation. A bench trial for this matter was held in September 2022, closing arguments were heard in November 2023, and a ruling is expected in 2024.
On March 15, 2022, The Scripps Research Institute (“Scripps”) filed claims against Teva’s subsidiary, Teva Pharmaceuticals International GmbH (“TPIG”) in the U.S. District Court for the Southern District of California for alleged breach of a sublicense agreement between Scripps and Ivax Corporation (“Ivax”) dated November 2000 (“Sublicense Agreement”), which Teva succeeded to upon its acquisition of Ivax. Scripps alleged that TPIG breached the Sublicense Agreement by failing to pay royalties on sales of cladribine in certain countries, and sought breach of contract damages for royalties allegedly due but not paid, as well as a declaratory judgment related to royalties due in the future. On August 10, 2023, the parties entered into a settlement agreement and stipulated to the dismissal of Scripps’ claims with prejudice. Teva recognized a provision for the resolution of this case.
 
Gain Contingencies
From time to time, Teva may directly or indirectly pursue claims against certain parties, including but not limited to patent infringement lawsuits against other pharmaceutical companies to protect its patent rights, as well as derivative actions brought on behalf of Teva. Teva recognizes gain contingencies from the defendants in such lawsuits when they are realized or when all related contingencies have been resolved. No gain has been recognized regarding the matters disclosed below, unless mentioned otherwise.
In October 2017, Teva filed a lawsuit in the U.S. District Court for the District of Massachusetts alleging that Eli Lilly & Co.’s (“Lilly”) marketing and sale of its galcanezumab product for the treatment of migraine infringes nine Teva patents, including three method of treatment patents and six composition of matter patents. Lilly then submitted inter partes review (“IPR”) petitions to the Patent Trial and Appeal Board (“PTAB”), challenging the validity of the nine Teva patents. The PTAB issued decisions upholding the three method of treatment patents but finding the six composition of matter patents invalid, which decisions were affirmed by the Court of Appeals for the Federal Circuit on August 16, 2021. A jury trial regarding the three method of treatment patents resulted in a verdict in Teva’s favor on November 9, 2022, in which the three method of treatment patents were determined to be valid and infringed by Lilly and Teva was awarded $176.5 million in damages. On September 26, 2023, the U.S. District Court for the District of Massachusetts issued a decision that reversed the jury’s verdict and damages award, finding Teva’s
method of treatment
patents to be invalid. Teva is appealing this decision and
filed a notice of
appeal
on October 24, 2023
. On June 8, 2021, Teva filed a second lawsuit in the U.S. District Court for the District of Massachusetts alleging that Lilly’s marketing and sale of galcanezumab product infringes two patents related to the treatment of refractory migraine. This second litigation was stayed pending resolution of Lilly’s IPR petitions challenging the patentability of these two patents. On September 25, 2023, the PTAB issued its written decision for invalidating these two patents. On October 11, 2023, the PTAB issued its written decision invalidating a third patent also related to the treatment of refractory migraine based on another Lilly IPR petition. Teva did not appeal the PTAB decision, and on
November 28
, 2023
,
the patent litigation involving the refractory migraine patents was dismissed.
Motions to approve derivative actions seeking monetary damages against certain past and present directors and officers have been filed in Israeli Courts alleging negligence and recklessness, as well as motions for document disclosure prior to initiating derivative actions. Motions were filed with respect to several U.S. and EU settlement agreements, opioids, allegations related to the DOJ’s complaint regarding the COPAXONE patient assistance program in the U.S., and with respect to the COPAXONE European Commission’s investigation.
v3.24.0.1
Income taxes
 12 Months Ended
Dec. 31, 2023
Income taxes
NOTE 13—Income taxes:
 
a.
Income (loss) before income taxes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Parent Company and its Israeli subsidiaries
    $ (767 )     $ (119 )     $ 126  
Non-Israeli
subsidiaries
      143        (3,044 )       532  
    
 
 
     
 
 
     
 
 
  
     $ (624 )     $ (3,163 )     $ 658  
    
 
 
     
 
 
     
 
 
  
The financial data presented in the table above for the year ended December 31, 2022 have been revised as discussed in note 1b.
 
b.
Income taxes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
In Israel
    $ (402 )     $ 33      $ 124  
Outside Israel
      395        (676 )       87  
    
 
 
     
 
 
     
 
 
  
     $ (7 )     $ (643 )     $ 211  
    
 
 
     
 
 
     
 
 
  
Current
    $ 333      $ 430      $ 270  
Deferred
      (340 )       (1,073 )       (59 ) 
    
 
 
     
 
 
     
 
 
  
     $ (7 )     $ (643 )     $ 211  
    
 
 
     
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
2023
    
2022
    
2021
  
    
(U.S. $ in millions)
  
Income (loss) before income taxes (***)
    $ (624 )    $ (3,163 )    $ 658  
Statutory tax rate in Israel
      23 %      23 %      23 % 
    
 
 
    
 
 
    
 
 
  
Theoretical provision for income taxes (***)
    $ (144 )    $ (727 )    $ 151  
Increase (decrease) in the provision for income taxes due to:
                         
The Parent Company and its Israeli subsidiaries - Tax benefits arising from net deferred taxes, resulting from intellectual property related integration plans, including carryforward losses
      (272)
    —        —   
Tax benefits arising from reduced tax rates under benefit programs
      14       15       (12)  
Mainly nondeductible items and prior year tax
      —        35       20  
Non-Israeli
subsidiaries, including impairments (*)
      372       941       117  
Worthless stock deduction (**)
      —        (909)       —   
Increase (decrease) in other uncertain tax positions - net
      23       2       (65)  
    
 
 
    
 
 
    
 
 
  
Effective consolidated income taxes (***)
    $ (7)     $ (643)     $ 211  
    
 
 
    
 
 
    
 
 
  
 
*
In 2023 and 2022, income before income taxes includes goodwill impairment in
non-Israeli
subsidiaries that did not have a corresponding tax effect.
**
In 2022, one of Teva’s U.S. subsidiaries was determined to be insolvent for tax purposes (i.e., its liabilities exceeded the fair market value of its assets), mainly in light of its accumulated operational losses. Consequently, Teva recognized on its 2022 tax return, a worthless stock deduction of approximately $4.2 billion, with related tax benefit of approximately $909 million.
***
The financial data presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
Teva’s effective tax rate is the result of a variety of factors, including the geographic mix and type of products sold during the year, different effective tax rates applicable to
non-Israeli
subsidiaries that have tax rates different than Teva’s average tax rates, net deferred tax benefits from intellectual property related integration plans, impairments, legal settlements, and interest expense disallowances. Such intellectual property related integration plans have been adopted to, among other things, address the global adoption of the OECD Pillar Two minimum effective corporate tax, commencing in 2024. Additionally, the effective tax rate includes adjustments to valuation allowances on deferred tax assets and adjustments to uncertain tax positions.
 
c.
Deferred income taxes:
 
 
 
 
 
 
 
 
 
 
    
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
  
Deferred tax assets (liabilities), net:
         
Inventory related
    $ 76      $ 125  
Sales reserves and allowances
      81        89  
Provision for legal settlements
      702        703  
Intangible assets (*)
      (118 )       (567 ) 
Carryforward losses and deductions and credits (**)
      2,463        2,850  
Property, plant and equipment
      (225 )       (238 ) 
Deferred interest
      799        800  
Provisions for employee related obligations
      80        82  
Other (***)
      357        138  
    
 
 
     
 
 
  
       4,215        3,982  
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized
      (3,009 )       (3,072 ) 
    
 
 
     
 
 
  
     $ 1,206      $ 910  
    
 
 
     
 
 
  
 
(*)
The increase in deferred tax is mainly due to intellectual property related integration.
(**)
The amounts are shown following a reduction for unrecognized tax benefits of $2 million and $1 million as of December 31, 2023 and 2022, respectively.
The amount as of December 31, 2023 represents the tax effect of gross carryforward losses and deductions with the following expirations:
2024
-
2025
$50 million;
2026
-
2033
$924 million;
2034
and thereafter $291 million. The remaining balance—$1,196 million—can be utilized with no expiration date.
 
(***)
The amounts shown are primarily comprised of Capitalization of R&D Expenses. Other deferred income taxes presented in the table above as of December 31, 2022, have been revised as discussed in note 1b.
The deferred income taxes are reflected in the balance sheets among:
 
 
 
 
 
 
 
 
 
 
    
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
  
Long-term assets—deferred income taxes (*)
      1,812        1,458  
Long-term liabilities—deferred income taxes
      (606 )       (548 ) 
    
 
 
     
 
 
  
     $ 1,206      $ 910  
    
 
 
     
 
 
  
 
(*)
Long-term assets—deferred income taxes presented in the tables above as of December 31, 2022, have been revised as discussed in note 1b.
 
d.
Uncertain tax positions:
The following table summarizes the activity of Teva’s gross unrecognized tax benefits:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Balance at the beginning of the year
    $ 638      $ 672      $ 888  
Increase (decrease) related to prior year tax positions, net
      (1 )       (46 )       (106 ) 
Increase related to current year tax positions
      15        42        7  
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations
      (15 )       (31 )       (115 ) 
Other
      14        1        (2 ) 
  
 
 
     
 
 
     
 
 
  
Balance at the end of the year
    $ 651      $ 638      $ 672  
  
 
 
     
 
 
     
 
 
  
Uncertain tax positions, mainly of a long-term nature, include accrued potential penalties and interest of $224 million, $212 million and $210 million as of December 31, 2023, 2022 and 2021, respectively. The total amount of interest and penalties reflected in the consolidated statements of income was a net increase of $12 million, $2 million and $37 million for the years ended December 31, 2023, 2022 and 2021, respectively. Substantially all the above uncertain tax benefits, if recognized, would reduce Teva’s annual effective tax rate. Teva does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities or court decisions, the likelihood and timing of which is difficult to estimate.
 
e.
Tax assessments:
Teva files income tax returns in various jurisdictions with varying statutes of limitations. Teva and its subsidiaries in Israel have received final tax assessments through tax year 2011.
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 appeal hearing is expected to begin in March 2024. 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.
In the U.S., Teva is subject to ongoing examination of its U.S. subsidiaries by federal and state tax authorities. The years 2015 to 2019 are open years, currently under IRS examination. Additionally, Teva is currently under examination by various state tax authorities for open years from 2014 to 2021. In addition to ongoing audits, Teva and its subsidiaries have tax years 2009 to 2014 that are in administrative suspense for one open matter, pending the outcome of the court cases discussed further below.
 
Teva believes it has adequately provided for all uncertain tax positions for open years, and that any other adverse results of examinations or litigation would have an immaterial impact on the Company’s financial statements.
Teva currently has a legal proceeding in the U.S. Tax Court, one on appeal to the Third Circuit, which has ruled favorably for another taxpayer on a substantially similar matter, and one on appeal to the U.S. District Court of Appeals for the Federal Circuit. Each dispute with the IRS addresses the question of whether certain legal fees incurred related to Abbreviated New Drug Applications (“ANDAs”) were eligible to be deducted in the year incurred for tax purposes or were required to be amortized over longer periods under U.S. tax law. Teva received a favorable ruling in the Court of Federal Claims in August 2022, and the Department of Justice filed a notice of appeal in December 2022. The U.S. Tax Court case remains in the
pre-trial
phase. While Teva continues to vigorously defend itself in these cases, and believes it is
more-likely-than-not
to prevail, there is uncertainty in the outcome and an adverse ruling could materially affect the Company’s financial statements.
Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. Trial in this case is ongoing. A final and binding decision against Teva in this case may lead to an impairment in an amount up to $126 million.
The Company’s subsidiaries in Europe have received final tax assessments mainly through tax year 2015.
 
f.
Basis of taxation:
The Company and its subsidiaries are subject to tax in many jurisdictions, and estimation is required in recording the assets and liabilities related to income taxes. The Company believes that its accruals for tax liabilities are adequate for all open years. The Company considers various factors in making these assessments, including past history, recent interpretations of tax law, and the specifics of each matter. Because tax regulations are subject to interpretation and tax litigation is inherently uncertain, these assessments can involve a series of complex judgments regarding future events.
An assessment of the tax that would have been payable had the Company’s foreign subsidiaries distributed their income to the Company is not practicable because of the multiple levels of corporate ownership and multiple tax jurisdictions involved in each hypothetical dividend distribution.
Incentives Applicable until 2013
Under the incentives regime applicable to the Company until 2013, industrial projects of Teva and certain of its Israeli subsidiaries were eligible for “Approved Enterprise” status.
Most of the projects in Israel have been granted Approved Enterprise status under the “alternative” tax benefit track which offered tax exemption on undistributed income for a period of two to ten years, depending on the location of the enterprise. Upon distribution of such exempt income, the distributing company is subject to corporate tax at the rate ordinarily applicable to the Approved Enterprise’s income.
Amendment 69 to the Investment Law
Pursuant to Amendment 69 to the Investment Law (“Amendment 69”), a company that elected by November 11, 2013 to pay a corporate tax rate as set forth in that amendment (rather than the tax rate applicable to Approved Enterprise income) with respect to undistributed exempt income accumulated by the company up until December 31, 2011 is entitled to distribute a dividend from such income without being required to pay
additional corporate tax with respect to such dividend. A company that has so elected must make certain qualified investments in Israel over the five-year period commencing in 2013. Teva invested the entire required amount in 2013.
During 2013, Teva applied the provisions of Amendment 69 to certain exempt profits Teva accrued prior to 2012. Consequently, Teva paid $577 million in corporate tax on exempt income of $9.4 billion. Part of this income was distributed as dividends during 2013-2018, while the remainder is available to be distributed as dividends in future years with no additional corporate tax liability.
Incentives Applicable starting 2014
:
The Incentives Regime – Amendment 68 to the Investment Law
Under Amendment 68 to the Investment Law, which Teva started applying in 2014, upon an irrevocable election made by a company, a uniform corporate tax rate will apply to all qualifying industrial income of such company (“Preferred Enterprise”), as opposed to the previous law’s incentives, which were limited to income from Approved Enterprises during the benefits period. Under the law, when the election is made, the uniform tax rate for 2014 until 2016 was 9% in areas in Israel designated as Development Zone A and 16% elsewhere in Israel. The uniform tax rate for Development Zone A, as of January 1, 2017, is 7.5% (as part of changes enacted in Amendment 73, as described below). The profits of these “Preferred Enterprise” will be freely distributable as dividends, subject to a 20% or lower withholding tax, under an applicable tax treaty. Certain “Special Preferred Enterprises” that meet more stringent criteria (significant investment, R&D or employment thresholds) will enjoy further reduced tax rates of 5% in Zone A and 8% elsewhere. In order to be classified as a “Special Preferred Enterprises,” the approval of three governmental authorities in Israel is required.
The New Technological Enterprise Incentives Regime – Amendment 73 to the Investment Law
Since 2017, a portion of the Company’s taxable income in Israel is entitled to a preferred 6% tax rate under Amendment 73 to the Investment Law as it pertains to Special Preferred Technological Enterprises.
The new incentives regime applies to “Preferred Technological Enterprises” or “Special Preferred Technological Enterprises.” A “Preferred Technological Enterprise” is an enterprise that meet certain conditions, including, inter alia:
 
  •  
Investment of at least 7% of income, or at least NIS 75 million (approximately $22 million) in R&D activities; and
 
  •  
One of the following:
 
  a.
At least 20% of the workforce (or at least 200 employees) are employed in R&D;
 
  b.
A venture capital investment approximately equivalent to at least $2 million was previously made in the company; or
 
  c.
Growth in sales or workforce by an average of 25% over the three years preceding the tax year.
A “Special Preferred Technological Enterprise” is an enterprise that meets, inter alia conditions 1 and 2 above, and in addition has total annual consolidated revenues above NIS 10 billion (approximately $2.9 billion).
Preferred Technological Enterprises are subject to a corporate tax rate of 7.5% on their income derived from intellectual property in areas in Israel designated as Zone A and 12% elsewhere, while Special Preferred Technological Enterprises are subject to 6% on such income. The withholding tax on dividends from these enterprises is 4% to foreign companies (or a lower rate under a tax treaty, if applicable).
 
Income not eligible for Preferred Technological Enterprise benefits is taxed at the regular corporate tax rate, which is 23%, or the preferred tax rate, as the case may be.
The Parent Company and its Israeli subsidiaries elected to compute their taxable income in accordance with Income Tax Regulations (Rules for Accounting for Foreign Investors Companies and Certain Partnerships and Setting their Taxable Income), 1986. Accordingly, the taxable income or loss is calculated in U.S. dollars. Applying these regulations reduces the effect of U.S. dollar – NIS exchange rate on the Company’s Israeli taxable income.
Non-Israeli
subsidiaries are taxed according to the tax laws in their respective country of residence. Certain manufacturing subsidiaries operate in several jurisdictions outside Israel, some of which benefit from tax incentives such as reduced tax rates, investment tax credits and accelerated deductions.
The 2021 Budget Law
On November 15, 2021, the Israeli Parliament released its 2021-2022 Budget Law (“2021 Budget Law”). The 2021 Budget Law introduces a new dividend ordering rule that apportions every dividend between previously
tax-exempt
and previously taxed income. Consequently, distributions (including deemed distributions as per Section 51(h)/51B of the Investment Law) may entail additional corporate tax liability to the distributing company. The new dividend ordering rule may have an adverse effect on Teva’s financial condition and results of operations in future years, as the Company still has
tax-exempt
profits in its retained earnings. Income taxes have not been recognized for amounts of
tax-exempt
income generated from the Company’s current Approved Enterprises retained for reinvestment.
Pillar Two Taxation
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. The OECD continues to release additional guidance and the Company is monitoring the new rules and country agreements. The Company is currently evaluating the potential impact on its 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
.
v3.24.0.1
Equity
 12 Months Ended
Dec. 31, 2023
Equity
NOTE 14—Equity:
 
a.
Ordinary shares and ADSs
As of December 31, 2023 and 2022, Teva had approximately 1.2 billion ordinary shares issued. Teva ordinary shares are traded on the
Tel-Aviv
Stock Exchange and on the New York Stock Exchange, in the form of American Depositary Shares (“ADSs”), each of which represents one ordinary share.
 
b.
Stock-based compensation plans
Stock-based compensation plans are comprised of stock options, RSUs, PSUs, and other equity-based awards to employees, officers, directors and consultants of the Company and its affiliates. The purpose of the
plans is to (a) attract, retain, motivate, and reward such individuals, and (b) promote the creation of long-term value for shareholders of the Company by closely aligning the interests of such individuals with those of the shareholders.
On June 29, 2010, the Teva 2010 Long-Term Equity-Based Incentive Plan (“2010 Plan”) was approved by Teva’s shareholders, under which 70 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant. The 2010 Plan expired on June 28, 2015 (except with respect to awards outstanding on that date), and no additional awards under the 2010 Plan may be made.
On September 3, 2015, the Teva 2015 Long-Term Equity-Based Incentive Plan (“2015 Plan”) was approved by Teva’s shareholders, under which 43.7 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
On April 18, 2016, Teva’s shareholders approved an increase of an additional 33.3 million equivalent share units to the share reserve of the 2015 Plan, so that 77 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
On July 13, 2017, Teva’s shareholders approved an increase of an additional 65 million equivalent share units to the share reserve of the 2015 Plan, so that 142 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
The 2015 Plan expired on June 30, 2020 (except with respect to awards outstanding on that date), and no additional awards under the 2015 Plan may be made.
On June 11, 2020, the Teva 2020 Long-Term Equity-Based Incentive Plan (“2020 Plan”) was approved by Teva’s shareholders and became effective on July 1, 2020. Under the 2020 Plan, 68 million shares, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
As of December 31, 2023, 65.8 million shares remain available for future awards under the 2020 Plan.
In the past, Teva had various employee-stock and incentive plans under which stock options and other share-based awards were granted. Stock options and other share-based awards granted under such prior plans continue in accordance with the terms of the respective plans.
The vesting period of the outstanding options and RSUs is generally between 1 to 4 years from date of grant. The vesting period of PSUs is generally 3 years from date of grant. The rights of ordinary shares obtained from the exercise of options, RSUs or PSUs are identical to those of other ordinary shares of the Company. The contractual term of these options is primarily for ten years.
 
Status of options
A summary of the status of the options granted by Teva as of December 31, 2023, 2022 and 2021, and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercisable in respect thereof).
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
  
Balance outstanding at beginning of year
      24,119     $ 36.83        29,015     $ 36.96        35,234     $ 37.27  
Changes during the year:
               
Forfeited
      (885 )      34.65        (2,378 )      33.77        (3,644 )      36.09  
Expired
      (531 )      37.57        (2,518 )      41.26        (2,575 )      42.40  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      22,703       36.89        24,119       36.83        29,015       36.96  
  
 
 
       
 
 
       
 
 
    
Balance exercisable at end of year
      22,703       36.89        24,119       36.83        26,989       38.30  
  
 
 
       
 
 
       
 
 
    
No options
were
granted during 2023, 2022 and 2021.
The following table summarizes information as of December 31, 2023 regarding the number of ordinary shares issuable upon vested options:
 
Number of ordinary shares issuable upon exercise of vested options
  
Range of exercise prices
   
Balance at end of
period (in thousands)
     
Weighted average
exercise price
     
Weighted average
remaining life
  
    
Number of shares
     
$
     
Years
  
Lower than $15.01
      592        11.40        3.84  
$15.01 - $25.00
      7,374        18.95        4.14  
$25.01 - $35.00
      5,470        34.66        3.17  
$35.01 - $45.00
      61        37.97        2.78  
$45.01 - $55.00
      5,707        51.26        1.36  
$55.01 - $65.00
      3,500        59.04        1.34  
  
 
 
        
Total
      22,703        36.89        2.76  
  
 
 
        
The aggregate intrinsic value represents the total
pre-tax
intrinsic value, based on the Company’s closing stock price of $10.44 on December 31, 2023, less the weighted average exercise price in each range. This represents the potential amount receivable by the option holders had all option holders exercised their options as of such date. As of December 31, 2023, there were no exercisable options that were
in-the-money.
No options were exercised during 2023, 2022 and 2021.
 
Status of
non-vested
RSUs and PSUs
The following table summarizes information about the number of RSUs and PSUs granted and outstanding:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
  
Balance outstanding at beginning of year
      32,302     $ 9.11        24,412     $ 11.58        20,720     $ 13.81  
Granted
      16,608       9.77        18,755       7.42        12,748       10.42  
Vested
      (10,195 )      10.28        (7,571 )      13.02        (6,818 )      15.60  
Forfeited
      (3,052 )      9.81        (3,293 )      9.81        (2,238 )      12.18  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      35,664       9.07        32,302       9.11        24,412       11.58  
  
 
 
       
 
 
       
 
 
    
The Company expenses compensation costs are based on the grant-date fair value. For the years ended December 31, 2023, 2022 and 2021, the Company recorded stock-based compensation costs as follows:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Employee stock options
    $ —       $ 2      $ 16  
RSUs and PSUs
      121        122        103  
  
 
 
     
 
 
     
 
 
  
Total stock-based compensation expense
      121        124        119  
Tax effect on stock-based compensation expense
      11        9        12  
  
 
 
     
 
 
     
 
 
  
Net effect
    $ 110      $ 115      $ 107  
  
 
 
     
 
 
     
 
 
  
As of December 31, 2023, the total unrecognized compensation cost before tax on RSUs/PSUs amounted to $192 million. The cost is expected to be recognized over a weighted average period of approximately 2.5 years. There were no unrecognized compensation costs related to employee stock options.
 
c.
Dividends
Teva has not paid dividends on Teva ordinary shares or ADSs since December 2017.
 
d.
Accumulated other comprehensive loss
The components of accumulated other comprehensive loss attributable to Teva are presented in the table below:
 
    
Net Unrealized Gains/(Losses)
    
Benefit Plans
        
    
Foreign
currency
translation
adjustments
    
Derivative
financial
instruments
    
Actuarial
gains/(losses)
and prior
service
(costs)/
credits
    
Total
  
    
(U.S. $ in millions)
  
Balance as of January 1, 2021
    $ (1,919 )      (363 )      (117 )      (2,399 ) 
Other comprehensive income/(loss) before reclassifications
      (386 )      —        18       (368 ) 
Amounts reclassified to the statements of income
      —        39       18       57  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) before tax
      (386 )      39       36       (311 ) 
Corresponding income tax
      31       —        (4 )      27  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) after tax*
      (355 )      39       32       (284 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2021
      (2,274 )      (324 )      (85 )      (2,683 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income/(loss) before reclassifications
      (223 )      —        40       (183 ) 
Amounts reclassified to the statements of income
      —        29       27       56  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) before tax
      (223 )      29       67       (127 ) 
Corresponding income tax
      (17 )      —        (10 )      (27 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) after tax*
      (240 )      29       57       (154 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2022
      (2,514 )      (295 )      (28 )      (2,838 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income/(loss) before reclassifications
      167       (1 )      (17 )      149  
Amounts reclassified to the statements of income
      —        30       (4 )      26  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) before tax
      167       29       (21 )      175  
Corresponding income tax
      (37 )      —        3       (34 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) after tax*
      130       29       (18 )      141  
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2023
    $ (2,384 )    $ (266 )    $ (46 )    $ (2,697 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
 
*
Amounts do not include foreign currency translation adjustments attributable to
non-controlling
interests of $50 million loss in 2023, $116 million loss in 2022 and $107 million loss in 2021.
v3.24.0.1
Other assets impairments, restructuring and other items
 12 Months Ended
Dec. 31, 2023
Other assets impairments, restructuring and other items
NOTE 15—Other asset impairments, restructuring and other items:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Impairment
of long-lived tangible assets
(1)
    $ 28      $ 47      $ 160  
Contingent consideration (see note 20)
(2)
      548        261        7  
Restructuring
      111        146        133  
Other
      30        57        41  
  
 
 
     
 
 
     
 
 
  
Total
    $ 718      $ 512      $ 341  
  
 
 
     
 
 
     
 
 
  
 
(1)
Including impairments related to exit and disposal activities.
(2)
The contingent consideration presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
Impairments
Impairments of tangible assets for the years ended December 31, 2023, 2022 and 2021 were $28 million, $47 million and $160 million, respectively. Impairments for the year ended December 31, 2023 were mainly related to certain assets in Europe and North America. Impairments for the year ended December 31, 2022 were mainly related to certain assets North America. Impairments for the year ended December 31, 2021 were mainly related to certain assets in Europe and North America.
Teva may record additional impairments in the future, to the extent it changes its plans on any given asset and/or the assumptions underlying such plans, as a result of its network consolidation activities and its “Pivot to Growth Strategy”.
Contingent consideration
In 2023, Teva recorded expenses of $548 million for contingent consideration, compared to expenses of $261 million in 2022 and $7 million in 2021. Expenses in 2023 were mainly related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid
®
) and a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales. Expenses in 2022, which were revised as discussed in note 1b, were mainly related to changes in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid
®
).
Restructuring
In 2023, Teva recorded $111 million of restructuring expenses, compared to $146 million in 2022 and $133 million in 2021. Expenses in 2023 and 2022 were primarily related to network consolidation activities. Expenses in 2021 were primarily related to network consolidation activities and residual expenses of the restructuring plan announced in 2017.
 
The following table provides the components of restructuring costs:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Restructuring
         
Employee termination
    $ 52      $ 117      $ 117  
Other
      59        29        16  
  
 
 
     
 
 
     
 
 
  
Total
    $ 111      $ 146      $ 133  
  
 
 
     
 
 
     
 
 
  
The following table provides the components of and changes in the Company’s restructuring accruals:
 
    
Employee
termination costs
     
Other
     
Total
  
    
(U.S. $ in millions )
  
Balance as of January 1, 2021
    $ (115 )     $ (7 )     $ (122 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (117 )       (16 )       (133 ) 
Utilization and other*
      101        16        117  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2021
    $ (131 )     $ (7 )     $ (138 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (117 )       (29 )       (146 ) 
Utilization and other*
      136        29        165  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2022
    $ (112 )     $ (7 )     $ (119 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (52 )       (59 )       (111 ) 
Utilization and other*
      90        59        149  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2023
    $ (75 )     $ (7 )     $ (82 ) 
  
 
 
     
 
 
     
 
 
  
 
*
Includes adjustments for foreign currency translation.
v3.24.0.1
Other income
 12 Months Ended
Dec. 31, 2023
Other income
NOTE 16 – Other income:
 
    
Year ended
December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Gain on divestitures, net of divestitures related costs (1)
    $ 3      $ 46      $ 51  
Section 8 and similar payments
      5        13        19  
Gain (loss) on sale of assets (2)
      25        18        7  
Other, net (3)
      16        31        22  
  
 
 
     
 
 
     
 
 
  
Total other income
    $ 49      $ 107      $ 98  
  
 
 
     
 
 
     
 
 
  
 
(1)
In 2022 mainly related to the divestment of several activities in North America and International Markets. In 2021, mainly due to capital gains related to the sale of certain OTC assets.
(2)
In 2023 mainly related to the divestment of assets in International Markets.
(3)
In 2022 mainly the result of settlement proceeds related to the International Markets segment.
v3.24.0.1
Financial expenses, net
 12 Months Ended
Dec. 31, 2023
Financial expenses, net
NOTE 17—Financial expenses, net:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December, 31
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Interest expenses and other bank charges
    $ 1,029      $ 930      $ 891  
(Income) loss from investments (1)
      (68 )       (10 )       90  
Foreign exchange (gains) losses, net
      30        (16 )       7  
Other, net (2)
      66        61        71  
    
 
 
     
 
 
     
 
 
  
Total finance expense, net
    $ 1,057      $ 966      $ 1,058  
    
 
 
     
 
 
     
 
 
  
 
(1)
Loss from investments in 2021 comprised mainly of revaluation gains and loss of Teva’s investment in American Well Corporation (“American Well”).
(2)
Amortization of issuance costs and terminated derivative instruments.
v3.24.0.1
Earnings (Loss) per Share
 12 Months Ended
Dec. 31, 2023
Earnings (Loss) per Share
NOTE 18—Earnings (loss) per share:
The net income (loss) attributable to Teva and the weighted average number of ordinary shares used in the computation of basic and diluted earnings (loss) per share for the years ended December 31, 2023, 2022 and 2021 are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December, 31
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions, except share data)
  
Net income (loss) used for the computation of basic and diluted earnings (loss) per share*
    $ (559 )     $ (2,446 )     $ 417  
    
 
 
     
 
 
     
 
 
  
Weighted average number of shares used in the computation of basic earnings (loss) per share
      1,119        1,110        1,102  
    
 
 
     
 
 
     
 
 
  
Weighted average number of shares used in the computation of diluted earnings (loss) per share
      1,119        1,110        1,107  
    
 
 
     
 
 
     
 
 
  
 
*
Net income (loss) presented in the table above for the year ended December 31, 2022 has been revised as discussed in note 1b.
Basic earnings (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 RSUs and PSUs during the period), net of treasury shares.
In computing diluted loss per share for the year ended December 31, 2023 and 2022, no account was taken of the potential dilution that could occur upon the exercise of options and
non-vested
RSUs and PSUs granted under employee stock compensation plans, and convertible senior debentures, since they had an anti-dilutive effect on loss per share.
In computing diluted earnings per share for the year ended December 31, 2021, basic earnings per share were adjusted to take into account the potential dilution that could occur upon the exercise of options and
non-vested
RSUs and PSUs granted under employee stock compensation plans, amounting to 5 million weighted average shares, using the treasury stock method. No account was taken of the potential dilution by the convertible senior debentures, since they had an anti-dilutive effect on earnings per share.
 
Basic and diluted loss per share was $0.50 for the year ended December 31, 2023, compared to basic and diluted loss per share of $2.20 for the year ended December 31, 2022 and basic and diluted earnings per share of $0.38 for the year ended December 31, 202
1
.
v3.24.0.1
Segments
 12 Months Ended
Dec. 31, 2023
Segments
NOTE 19—Segments:
Teva operates its business and reports its financial results in three segments:
 
  (a)
North America segment, which includes the United States and Canada.
 
  (b)
Europe segment, which includes the European Union, the United Kingdom and certain other European countries.
 
  (c)
International Markets segment, which includes all countries other than those in the North America and Europe segments.
In addition to these three segments, Teva has other sources of revenues included in other activities, primarily the sale of APIs to third parties, certain contract manufacturing services and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis.
Teva’s Chief Executive Officer (“CEO”), who is the chief operating decision maker (“CODM”), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the three identified reportable segments, namely North America, Europe and International Markets, to make decisions about resources to be allocated to the segments and assess their performance.
Segment profit is comprised of gross profit for the segment less R&D expenses, S&M expenses, G&A expenses and other income related to the segment. Segment profit does not include amortization and certain other items.
Teva manages its assets on a company basis, not by segments, as many of its assets are shared or commingled. Teva’s CODM does not regularly review asset information by reportable segment and, therefore, Teva does not report asset information by reportable segment.
Teva’s CEO may review its strategy and organizational structure from time to time. 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 7.
In conjunction with a recent shift in executive management responsibilities and in alignment with Teva’s Pivot to Growth strategy, Teva decided that Canada will no longer be included as part of Teva’s North America segment as of January 1, 2024. From that date, Teva’s North America segment will be comprised solely of the United States, while Canada will be reported as part of the Company’s International Markets segment. Teva will align its internal financial and segment reporting and its reporting units in coordination with this shift effective January 1, 2024.
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:
 
    
Year ended December 31,
  
    
2023
  
    
North America
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 8,124      $ 4,837      $ 1,958  
Gross profit
      4,421        2,726        1,050  
R&D expenses
      625        220        83  
S&M expenses
      1,005        767        420  
G&A expenses
      403        263        118  
Other income
      (8 )       (2 )       (35 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,396      $ 1,478      $ 464  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2022
  
    
North America
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,452      $ 4,525      $ 1,903  
Gross profit
      3,926        2,700        1,033  
R&D expenses
      532        213        72  
S&M expenses
      941        748        405  
G&A expenses
      474        246        119  
Other income
      (15 )       (3 )       (43 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 1,993      $ 1,496      $ 479  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2021
  
    
North America
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,809      $ 4,886      $ 2,032  
Gross profit
      4,226        2,823        1,118  
R&D expenses
      618        244        68  
S&M expenses
      988        846        417  
G&A expenses
      427        244        109  
Other income
      (31 )       (5 )       (5 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,224      $ 1,494      $ 529  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2023
    
2022
    
2021
  
    
(U.S. $ in millions)
  
North America profit
    $ 2,396     $ 1,993     $ 2,224  
Europe profit
      1,478       1,496       1,494  
International Markets profit
      464       479       529  
  
 
 
    
 
 
    
 
 
  
Total reportable segments profit
      4,338       3,968       4,246  
Profit of other activities
      24       172       154  
  
 
 
    
 
 
    
 
 
  
Total segments profit
      4,361       4,139       4,401  
Amounts not allocated to segments:
         
Amortization
      616       732       802  
Other asset impairments, restructuring and other items
(1)
      718       512       341  
Goodwill impairment
      700       2,045       —   
Intangible assets impairments
      350       355       424  
Legal settlements and loss contingencies
      1,043       2,082       717  
Other unallocated amounts
      502       610       402  
  
 
 
    
 
 
    
 
 
  
Consolidated operating income (loss)
(1)
      433       (2,197 )      1,716  
  
 
 
    
 
 
    
 
 
  
Financial expenses, net
      1,057       966       1,058  
  
 
 
    
 
 
    
 
 
  
Consolidated income (loss) before income taxes
(1)
    $ (624 )    $ (3,163 )    $ 658  
  
 
 
    
 
 
    
 
 
  
 
(1)
The data presented for 2022 have been revised to reflect a revision in relation to a contingent consideration liability and related expenses in the consolidated financial statements. See note 1b.
 
b.
Segment revenues by major products and activities:
The following tables present revenues by major products and activities for each segment for the year ended December 31, 2023, 2022 and 2021:
North America segment:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Generic products
    $ 3,475      $ 3,549      $ 3,769  
AJOVY
      230        218        176  
AUSTEDO
      1,225        963        802  
BENDEKA and TREANDA
      241        316        385  
COPAXONE
      320        387        577  
Anda
      1,577        1,471        1,323  
Other*
      1,056        549        777  
  
 
 
     
 
 
     
 
 
  
Total
    $ 8,124      $ 7,452      $ 7,809  
  
 
 
     
 
 
     
 
 
  
 
*
Other revenues were mainly comprised of a $
500 
million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
 
Europe segment:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Generic products
    $ 3,664      $ 3,466      $ 3,569  
AJOVY
      160        124        87  
COPAXONE
      231        268        391  
Respiratory products
      265        273        356  
Other*
      516        393        483  
  
 
 
     
 
 
     
 
 
  
Total
    $ 4,837      $ 4,525      $ 4,886  
  
 
 
     
 
 
     
 
 
  
 
*
Other revenues in 2023 were mainly related to the sale of certain product rights.
International Markets segment:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Generic products
    $ 1,594      $ 1,586      $ 1,649  
AJOVY
      44        35        50  
COPAXONE
      39        36        37  
Other
      281        246        295  
  
 
 
     
 
 
     
 
 
  
Total
    $ 1,958      $ 1,903      $ 2,032  
  
 
 
     
 
 
     
 
 
  
Revenues are attributable to countries based on sales to third parties in such countries. Revenues within the United States constituted 49%, 47% and 46% of Teva’s consolidated revenues for the years ended December 31, 2023, 2022 and 2021, respectively. Revenues within the Company’s country of domicile (Israel) constituted 2%, 2% and 2% of Teva’s consolidated revenues for the years ended December 31, 2023, 2022 and 2021, respectively.
 
c.
Supplemental data—major customers:
The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2023, 2022 and 2021.
 
    
Percentage of Third Party Net Sales
  
    
2023
    
2022
    
2021
  
McKesson Corporation
      9 %      10 %      11 % 
AmerisourceBergen Corporation
      9 %      10 %      11 % 
Most of Teva’s revenues from these customers were in the North America segment.
d.
Property, plant and equipment—by geographical location were as follows:
 
    
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
  
Israel
    $ 1,312      $ 1,401  
Germany
      1,318        1,143  
United States
      596        625  
Croatia
      447        445  
Czech republic
      309        318  
Hungary
      279        294  
Ireland
      266        268  
Other
      1,222        1,245  
  
 
 
     
 
 
  
Total property, plant and equipment
    $ 5,750      $ 5,739  
  
 
 
     
 
 
  
v3.24.0.1
Fair value measurement
 12 Months Ended
Dec. 31, 2023
Fair value measurement
NOTE 20—Fair value measurement:
Financial items carried at fair value as of December 31, 2023 and 2022 are classified in the tables below in one of the three categories described in note 1g:
 
    
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  
Liabilities derivatives
:
               —   
Options and forward contracts
      —         (39 )       —         (39 ) 
Bifurcated embedded derivatives
      —         —       §        —   
Contingent consideration*
      —         —         (517 )       (517 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,235      $ 7      $ (477 )     $ 2,765  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
December 31, 2022
  
    
Level 1
     
Level 2
     
Level 3
     
Total
  
    
(U.S. $ in millions)
  
Cash and cash equivalents:
                                    
Money markets
    $ 1,222        —         —       $ 1,222  
Cash, deposits and other
      1,579        —         —         1,579  
Investment in securities:
                                    
Equity securities
      9        —         —         9  
Other
      5        —         1        6  
Restricted cash
      33        —         —         33  
Derivatives:
                                    
Asset derivatives:
                                    
Options and forward contracts
      —         29        —         29  
Liability derivatives:
                                    
Options and forward contracts
               (101 )                (101 ) 
Bifurcated embedded derivatives
      —         —       §          —   
Contingent consideration*
      —         —         (251 )       (251 ) 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 2,848      $ (73 )     $ (250 )     $ 2,525  
    
 
 
     
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
*
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long-term liabilities. The financial data presented in the tables above as of December 31, 2022 have been revised as discussed in note 1b.
Teva determined the fair value of the liabilities for the contingent consideration based on a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration is based on several factors, such as: the cash flows projected from the success of unapproved product candidates; the probability of success of product candidates, including risks associated with uncertainty regarding achievement and payment of milestone events; the time and resources needed to complete the development and approval of product candidates; the life of the potential commercialized products and associated risks of obtaining regulatory approvals in the United States and Europe, and the risk adjusted discount rate for fair value measurement. 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%.
The contingent consideration is evaluated quarterly, or more frequently, if circumstances dictate. Changes in the fair value of contingent consideration are recorded in consolidated statements of income. Significant changes in unobservable inputs, mainly the 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 convertible debt security is accounted for as available for sale with changes in fair value reflected in other comprehensive income. As of December 31, 2023, the fair value of the conversion option is negligible.
 
The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs.
 
 
 
 
 
 
 
 
 
 
    
December 31,
2023
     
December 31,
2022
  
    
(U.S. $ in millions)
  
Fair value at the beginning of the period
    $ (250 )     $ (175 ) 
Investment in convertible bond **
      40        —   
Bifurcated embedded derivatives
      §        §  
Additional contingent consideration resulting from Novetide acquisition*
      —         (11 ) 
Adjustments to provisions for contingent consideration:
                  
Allergan transaction***
      (422 )       (240 ) 
Eagle transaction
      (132 )       (21 ) 
Novetide transaction
      2        —   
Settlement of contingent consideration:
                  
Allergan transaction
      207        109  
Eagle transaction
      76        88  
Novetide transaction
      2        —   
    
 
 
     
 
 
  
Fair value at the end of the period
    $ (477 )     $ (250 ) 
    
 
 
     
 
 
  
 
§
Represents an amount less than $
0.5
 million.
*
In January 2022, Teva acquired 100% ownership of Novetide Ltd. (“Novetide”), which was previously accounted for as “investment in associated companies.” This transaction was accounted for as a business combination. Total consideration for the transaction included cash and certain contingent royalty payments through 2034. As part of the transaction, Teva recognized a gain under “Share in (profits) losses of associated companies, net,” reflecting the difference between the book value of its investment in Novetide and its fair value as of the date Teva completed its acquisition.
**
On September 29, 2023, Teva invested $40 million in subordinated convertible bonds, which were issued by Alvotech, pursuant to a convertible bond instrument dated December 20, 2022. (see note 2).
***
The financial data presented in the tables above with respect to adjustments to provisions for contingent consideration related to Allergan in 2022 have been revised as discussed in note 1b.
Teva’s financial instruments consist mainly of cash and cash equivalents, investments in securities, current and
non-current
receivables, short-term credit, accounts payable and accruals, loans, senior notes and sustainability-linked senior notes, convertible senior debentures and derivatives.
The fair value of the financial instruments included in working capital and
non-current
receivables approximates their carrying value. The fair value of long-term bank loans mostly approximates their carrying value, since they bear interest at rates close to the prevailing market rates.
 
Financial instruments not measured at fair value
Financial instruments measured on a basis other than fair value consist of senior notes, sustainability-linked senior notes and convertible senior debentures (see note 9), and are presented in the below table in terms of fair value:
 
    
Estimated fair value*
  
    
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
  
Senior notes and sustainability-linked senior notes included under senior notes and loans
    $ 17,214      $ 16,694  
Senior notes and convertible senior debentures included under short-term debt
      1,651        2,075  
  
 
 
     
 
 
  
Total
    $ 18,865      $ 18,769  
  
 
 
     
 
 
  
 
*
The fair value was estimated based on quoted market prices.
v3.24.0.1
Long-term Employee-related Obligations
 12 Months Ended
Dec. 31, 2023
Long-term Employee-related Obligations
NOTE 21—Long-term employee-related obligations:
 
a.
Long-term employee-related obligations consisted of the following:
 
    
December 31,
  
    
 2023 
     
 2022 
  
    
(U.S. $ in millions)
  
Accrued severance obligations
    $ 74      $ 74  
Defined benefit plans
      73        58  
  
 
 
     
 
 
  
Total
    $ 148      $ 132  
  
 
 
     
 
 
  
As of December 31, 2023 and 2022, Teva had $90 million and $79 million, respectively, deposited in funds managed by financial institutions and earmarked by management to cover severance pay liability. Such deposits are not considered to be “plan assets” and are therefore included in other
non-current
assets.
Most of the change resulted from actuarial updates, as well as from exiting from several defined benefit plans in several countries.
The Company expects to expense an approximate contribution of $115 million in 2024 to pension funds and insurance companies in connection with its severance and pension pay obligations.
The main terms of the different arrangements with employees are described in below.
 
b.
Terms of arrangements:
Israel
Israeli law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The Parent Company and its Israeli subsidiaries make ongoing deposits into employee pension plans to fund their severance liabilities. Generally, employees that joined the Company after 2005, have signed an arrangement, pursuant to which such deposits are made in lieu of the Company’s severance liability. Therefore, no obligation is provided for in the financial statements. Severance pay liabilities with respect to employees who were employed by the Parent Company and its Israeli subsidiaries
 
prior to that date, as well as employees who have special contractual arrangements, are provided for in the financial statements based upon the number of years of service and the latest monthly salary of such employees.
Europe
Many of the employees in the Company’s European subsidiaries are entitled to a retirement grant when they leave the Company. In the consolidated financial statements, the liability of the European subsidiaries is accrued, based on the length of service and remuneration of each employee at the balance sheet date. Other employees in Europe are entitled to a pension according to a defined benefit scheme providing benefits based on final or average pensionable pay or according to a hybrid pension scheme that provides retirement benefits on a defined benefit and a defined contribution basis. Independent certified actuaries value these schemes and determine the rates of contribution payable. Pension costs for the defined benefit section of the scheme are accounted for on the basis of charging the expected cost of providing pensions over the period during which the subsidiaries benefit from the employees’ services. The Company uses December 31 as the measurement date for defined benefit plans.
North America
The Company’s North American subsidiaries mainly provide various defined contribution plans for the benefit of their employees. Under these plans, contributions are based on specified percentages of pay. Additionally, a multi-employer plan is maintained in accordance with various union agreements.
Latin America
The majority of the employees in Latin America are entitled to severance under local law. The severance payments are calculated based on service term and employee remuneration, and accruals are maintained to reflect these amounts. In some Latin American countries, it is Teva’s practice to offer retirement health benefits to qualifying employees. Based on the specific plan requirements, benefits accruals are maintained to reflect the estimated amounts or adjusted if future plans are modified.
The Company expects to pay the following future minimum benefits to its employees: $14 million in 2024; $13 million in 2025; $13 million in 2026; $13 million in 2027; $15 million in 2028; and $80 million in the aggregate between 2029 to 2033. These amounts do not include amounts that may be paid to employees who cease working with the Company before their normal retirement age.
v3.24.0.1
Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2023
Quarterly Financial Data (Unaudited)
 
NOTE 22—Quarterly financial data (Unaudited):
As discussed in note 1b, 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, and determined that certain line items in connection with the Company’s unaudited quarterly financial data for 2023 and 2022 needed to be revised. The following tables, which present unaudited quarterly financial data for 2023 and 2022, reflect such revision:
 
 
  
Three months ended
 
 
  
December 31,
2023
 
  
September 30,
2023
 
  
June 30,
2023
 
 
March 31,
2023
 
 
  
U.S $ in millions (except per share amounts)
 
Net revenues
  
$
4,457
 
  
 
3,850
 
  
 
3,878
 
 
 
3,661
 
Gross profit
  
 
2,416
 
  
 
1,851
 
  
 
1,796
 
 
 
1,582
 
Net income (loss)*
  
 
465
 
  
 
78
 
  
 
(905
) 
 
 
(253
) 
Net income (loss) attributable to Teva*
  
 
461
 
  
 
70
 
  
 
(871
) 
 
 
(220
) 
Earnings (loss) per share attributable to ordinary shareholders:
  
  
  
 
Basic*
  
$
0.41
 
  
 
0.06
 
  
 
(0.78
) 
 
 
(0.20
) 
Diluted*
  
$
0.41
 
  
 
0.06
 
  
 
(0.78
) 
 
 
(0.20
) 
 
 
  
Three months ended
 
 
  
December 31,
2022
 
 
September 30,
2022
 
  
June 30,
2022
 
 
March 31,
2022
 
 
  
U.S $ in millions (except per share amounts)
 
Net revenues
  
$
3,884
 
 
 
3,595
 
  
 
3,786
 
 
 
3,661
 
Gross profit
  
 
1,770
 
 
 
1,669
 
  
 
1,794
 
 
 
1,740
 
Net income (loss)*
  
 
(1,333
) 
 
 
63
 
  
 
(278
) 
 
 
(952
) 
Net income (loss) attributable to Teva*
  
 
(1,301
) 
 
 
61
 
  
 
(251
) 
 
 
(955
) 
Earnings (loss) per share attributable to ordinary shareholders:
  
 
  
 
Basic*
  
$
(1.17
) 
 
 
0.05
 
  
 
(0.23
) 
 
 
(0.86
) 
Diluted*
  
$
(1.17
) 
 
 
0.05
 
  
 
(0.23
) 
 
 
(0.86
) 
 
*
The data presented for the above quarterly periods (except for the three months ended March 31, 2022 and the three months ended December 31, 2023) have been revised to reflect a revision of the line items in the consolidated financial statements. See tables below and note 1b.
 
The tables below present the impact of the revision on the line items within the Company’s unaudited quarterly financial data for 2023 and 2022:
Consolidated Statements of Income (loss)
 
 
 
Three months ended
 
 
 
September 30, 2023
 
 
June 30, 2023
 
 
March 31, 2023
 
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
U.S $ in millions (except per share amounts)
 
Other asset impairments, restructuring and other items
 
$
46
 
 
 
11
 
 
 
57
 
 
$
100
 
 
 
8
 
 
 
108
 
 
$
96
 
 
 
15
 
 
 
110
 
Operating income (loss)
 
 
355
 
 
 
(11
) 
 
 
344
 
 
 
(646
) 
 
 
(8
) 
 
 
(654
) 
 
 
2
 
 
 
(15
) 
 
 
(13
) 
Income (loss) before income taxes
 
 
75
 
 
 
(11
) 
 
 
64
 
 
 
(914
) 
 
 
(8
) 
 
 
(923
) 
 
 
(258
) 
 
 
(15
) 
 
 
(272
) 
Income taxes (benefit)
 
 
(12
) 
 
 
§
 
 
 
(12
) 
 
 
(16
) 
 
 
§
 
 
 
(16
) 
 
 
(19
) 
 
 
§
 
 
 
(19
) 
Net income (loss)
 
 
88
 
 
 
(11
) 
 
 
78
 
 
 
(898
) 
 
 
(8
) 
 
 
(905
) 
 
 
(238
) 
 
 
(15
) 
 
 
(253
) 
Net income (loss) attributable to Teva
 
 
80
 
 
 
(11
) 
 
 
70
 
 
 
(863
) 
 
 
(8
) 
 
 
(871
) 
 
 
(205
) 
 
 
(15
) 
 
 
(220
) 
Earnings per share attributable to ordinary shareholders:
 
 
 
 
 
 
 
 
 
Basic
 
$
0.07
 
 
 
(0.01
) 
 
 
0.06
 
 
$
(0.77
) 
 
 
(0.01
) 
 
 
(0.78
) 
 
$
(0.18
) 
 
 
(0.02
) 
 
 
(0.20
) 
Diluted
 
$
0.07
 
 
 
(0.01
) 
 
 
0.06
 
 
$
(0.77
) 
 
 
(0.01
) 
 
 
(0.78
) 
 
$
(0.18
) 
 
 
(0.02
) 
 
 
(0.20
) 

§ Represents an amount less than $0.5 million.
 
 
 
Three months ended
 
 
 
December 31, 2022
 
 
September 30, 2022
 
 
June 30, 2022
 
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
U.S $ in millions (except per share amounts)
 
Other asset impairments, restructuring and other items
 
$
132
 
 
 
85
 
 
 
217
 
 
$
36
 
 
 
(5
) 
 
 
31
 
 
$
118
 
 
 
18
 
 
 
137
 
Operating income (loss)
 
 
(855
) 
 
 
(85
) 
 
 
(940
) 
 
 
419
 
 
 
5
 
 
 
424
 
 
 
(949
) 
 
 
(18
) 
 
 
(967
) 
Income (loss) before income taxes
 
 
(1,100
) 
 
 
(85
) 
 
 
(1,185
) 
 
 
166
 
 
 
5
 
 
 
171
 
 
 
(1,160
) 
 
 
(18
) 
 
 
(1,178
) 
Income taxes (benefit)
 
 
154
 
 
 
(5
) 
 
 
149
 
 
 
107
 
 
 
§
 
 
 
107
 
 
 
(900
) 
 
 
§
 
 
 
(900
) 
Net income (loss)
 
 
(1,254
) 
 
 
(80
) 
 
 
(1,333
) 
 
 
58
 
 
 
5
 
 
 
63
 
 
 
(259
) 
 
 
(18
) 
 
 
(278
) 
Net income (loss) attributable to Teva
 
 
(1,221
) 
 
 
(80
) 
 
 
(1,301
) 
 
 
56
 
 
 
5
 
 
 
61
 
 
 
(232
) 
 
 
(18
) 
 
 
(251
) 
Basic
 
$
(1.10
) 
 
 
(0.07
) 
 
 
(1.17
) 
 
$
0.05
 
 
 
— 
 
 
 
0.05
 
 
$
(0.21
) 
 
 
(0.02
) 
 
 
(0.23
) 
Diluted
 
$
(1.10
) 
 
 
(0.07
) 
 
 
(1.17
) 
 
$
0.05
 
 
 
— 
 
 
 
0.05
 
 
$
(0.21
) 
 
 
(0.02
) 
 
 
(0.23
) 
 
§ Represents an amount less than $0.5 million.
Consolidated Balance Sheets
 
 
 
September 30, 2023
 
 
June 30, 2023
 
 
March 31, 2023
 
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
U.S $ in millions (except per share amounts)
 
Deferred income taxes
 
$
1,748
 
 
 
7
 
 
 
1,755
 
 
$
1,578
 
 
 
5
 
 
 
1,583
 
 
$
1,572
 
 
 
5
 
 
 
1,577
 
Total assets
 
 
42,088
 
 
 
7
 
 
 
42,095
 
 
 
43,095
 
 
 
5
 
 
 
43,100
 
 
 
43,456
 
 
 
5
 
 
 
43,461
 
Other taxes and long-term liabilities
 
 
3,818
 
 
 
132
 
 
 
3,950
 
 
 
3,973
 
 
 
121
 
 
 
4,094
 
 
 
3,869
 
 
 
113
 
 
 
3,982
 
Total long-term liabilities
 
 
23,182
 
 
 
132
 
 
 
23,314
 
 
 
23,543
 
 
 
121
 
 
 
23,664
 
 
 
24,433
 
 
 
113
 
 
 
24,546
 
Total liabilities
 
 
34,576
 
 
 
132
 
 
 
34,708
 
 
 
35,387
 
 
 
121
 
 
 
35,508
 
 
 
34,844
 
 
 
113
 
 
 
34,957
 
Teva shareholders’ equity:
 
 
 
 
 
 
 
 
 
Accumulated deficit
 
 
(13,870
) 
 
 
(125
) 
 
 
(13,995
) 
 
 
(13,950
) 
 
 
(116
) 
 
 
(14,066
) 
 
 
(13,086
) 
 
 
(108
) 
 
 
(13,194
) 
Total equity
 
 
7,512
 
 
 
(125
) 
 
 
7,387
 
 
 
7,708
 
 
 
(116
) 
 
 
7,592
 
 
 
8,612
 
 
 
(108
) 
 
 
8,504
 
Total liabilities and equity
 
$
42,088
 
 
 
7
 
 
 
42,095
 
 
$
43,095
 
 
 
5
 
 
 
43,100
 
 
$
43,456
 
 
 
5
 
 
 
43,461
 
 
 
 
December 31, 2022
 
 
September 30, 2022
 
 
June 30, 2022
 
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
U.S $ in millions (except per share amounts)
 
Deferred income taxes
 
$
1,453
 
 
 
5
 
 
 
1,458
 
 
$
1,546
 
 
 
§
 
 
 
1,546
 
 
$
1,595
 
 
 
§
 
 
 
1,595
 
Total assets
 
 
44,006
 
 
 
5
 
 
 
44,011
 
 
 
44,252
 
 
 
§
 
 
 
44,252
 
 
 
45,932
 
 
 
§
 
 
 
45,932
 
Other taxes and long-term liabilities
 
 
3,847
 
 
 
98
 
 
 
3,945
 
 
 
3,846
 
 
 
13
 
 
 
3,859
 
 
 
3,842
 
 
 
18
 
 
 
3,860
 
Total long-term liabilities
 
 
23,846
 
 
 
98
 
 
 
23,944
 
 
 
23,200
 
 
 
13
 
 
 
23,213
 
 
 
25,107
 
 
 
18
 
 
 
25,125
 
Total liabilities
 
 
35,315
 
 
 
98
 
 
 
35,413
 
 
 
34,734
 
 
 
13
 
 
 
34,747
 
 
 
36,103
 
 
 
18
 
 
 
36,121
 
Accumulated deficit
 
 
(12,882
) 
 
 
(93
) 
 
 
(12,975
) 
 
 
(11,660
) 
 
 
(13
) 
 
 
(11,673
) 
 
 
(11,716
) 
 
 
(18
) 
 
 
(11,734
) 
Total equity
 
 
8,691
 
 
 
(93
) 
 
 
8,598
 
 
 
9,519
 
 
 
(13
) 
 
 
9,506
 
 
 
9,828
 
 
 
(18
) 
 
 
9,810
 
Total liabilities and equity
 
$
44,006
 
 
 
5
 
 
 
44,011
 
 
$
44,252
 
 
 
— 
 
 
 
44,252
 
 
$
45,932
 
 
 
— 
 
 
 
45,932
 
 
§ Represents an amount less than $0.5 million.
 
v3.24.0.1
Schedule of Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2023
Schedule of Valuation and Qualifying Accounts
 
Column A
 
Column B
 
 
Column C
 
 
Column D
 
 
Column E
 
 
 
Balance at
beginning
of period
 
 
Charged to costs
and expenses
 
 
Charged to other
accounts
 
 
Deductions
 
 
Balance at end
of period
 
Allowance for doubtful accounts including credit losses:
                                        
Year ended December 31, 2023
   $ 162     $ 10     $ (6 )    $ (2 )      164  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Year ended December 31, 2022
   $ 164     $ 8     $ (2 )    $ (8 )    $ 162  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Year ended December 31, 2021
   $ 200     $ (8 )    $ —      $ (28 )    $ 164  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Allowance in respect of carryforward tax losses and deductions that may not be utilized:
                                        
Year ended December 31, 2023
   $ 3,072     $ 161     $ —      $ (224 )    $ 3,009  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Year ended December 31, 2022
   $ 2,723     $ 443     $ —      $ (93 )    $ 3,072  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Year ended December 31, 2021
   $ 2,547     $ 336     $ —      $ (160 )    $ 2,723  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
v3.24.0.1
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2023
General
a. General:
Operations
Teva Pharmaceutical Industries Limited (the “Parent Company”), headquartered in Israel, together with its subsidiaries and associated companies (the “Company,” “Teva” or the “Group”), is engaged in the development, manufacturing, marketing and distribution of generics, innovative medicines and biopharmaceuticals. The majority of the Group’s revenues are in the United States and Europe.
Basis of presentation and use of estimates
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).
In preparing the Company’s consolidated financial statements, management is required to make estimates and 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. 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. 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, contingent consideration 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.
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. As part of the Company’s annual goodwill analysis performed in the second quarter of 2023, it identified an increase in the discount rate, which led to a goodwill impairment charge in its International Markets reporting unit. This increase was due to an increase in certain components of the discount rate that were partially attributed to higher risk associated with country-specific characteristics of several countries, such as Russia, that might be a consequence of the conflict. Other than its impact on the goodwill impairment charge described above, during the year ended December 31, 2023, the impact of the Russia-Ukraine conflict on Teva’s results of operations and financial condition was immaterial. See also note 7.
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 year ended December 31, 2023, the impact of this war on Teva’s results of operations and financial condition was immaterial, but such impact may increase, which could be material, as a result of the continuation, escalation or expansion of such war.
 
 
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.
Functional currency
A major part of the Group’s operations is carried out by the Company in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”).
The functional currency of certain subsidiaries and associated companies is their local currency. The financial statements of those companies are included in the consolidated financial statements, translated into U.S. dollars. Assets and liabilities are translated at
year-end
exchange rates, while revenues and expenses are translated at monthly average exchange rates during the year. Differences resulting from translation are presented as other comprehensive income (loss) in the consolidated statements of comprehensive income (loss).
In the event of a divestiture of a foreign subsidiary, the related foreign currency translation results net of related income taxes are reversed from equity to income. Foreign currency exchange gains and losses are included in net income (loss).
Principles of consolidation
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, joint ventures and variable interest entities (“VIEs”) for which the Company is considered the primary beneficiary. For those consolidated entities where Teva owns less than 100%, the outside shareholders’ interests are shown as
non-controlling
interests
 
in equity. Investments in affiliates over which the Company has significant influence but not a controlling interest, are carried on the equity basis.
For VIEs, the Company performs an analysis to determine whether the variable interests give a controlling financial interest in a VIE. The Company periodically reassesses whether it controls its VIEs.
Intercompany transactions and balances are eliminated on consolidation; profits from intercompany sales, not yet realized outside the Group, are also eliminated.
Revision of Previously Reported Consolidated Financial Statements
 
b.
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
calculation of the contingent consideration liability as of and for the year ended December 31, 2022, and the quarterly and
year-to-date
periods ended June 30, September 30 and December 31, 2022, and March 31, June 30 and September 30, 2023. These errors did not impact the Company’s actual royalty payments, as well as total cash flows from operating activities, financing activities and investing activities in the periods stated above.
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 impact of the revision on the Company’s unaudited quarterly financial data for 2023 and 2022 is presented in note 22.
 
 
The tables below present the impact of the revision on the line items within the Company’s consolidated financial statements as of and for the year ended December 31, 2022:
 
Consolidated Statements of Income
(loss)
  
Year ended December 31, 2022
 
 
Consolidated Balance Sheets
  
December 31, 2022
 
 
  
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
  
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
  
U.S $ in millions (except per share
amounts)
 
 
 
  
U.S $ in millions (except per share
amounts)
 
Other asset impairments, restructuring and other items
  
$
414
 
 
 
98
 
 
 
512
 
 
Deferred income taxes
  
$
1,453
 
 
 
5
 
 
 
1,458
 
Operating income (loss)
  
 
(2,099
) 
 
 
(98
) 
 
 
(2,197
) 
 
Total assets
  
 
44,006
 
 
 
5
 
 
 
44,011
 
Income (loss) before income taxes
  
 
(3,065
) 
 
 
(98
) 
 
 
(3,163
) 
 
Other taxes and long-term liabilities
  
 
3,847
 
 
 
98
 
 
 
3,945
 
Income taxes (benefit)
  
 
(638
) 
 
 
(5
) 
 
 
(643
) 
 
Total long-term liabilities
  
 
23,846
 
 
 
98
 
 
 
23,944
 
Net income (loss)
  
 
(2,406
) 
 
 
(93
) 
 
 
(2,499
) 
 
Total liabilities
  
 
35,315
 
 
 
98
 
 
 
35,413
 
Net income (loss) attributable to Teva
  
 
(2,353
) 
 
 
(93
) 
 
 
(2,446
) 
 
Teva shareholders’ equity:
  
 
 
Earnings (loss) per share attributable to ordinary shareholders:
  
 
 
 
Accumulated deficit
  
 
(12,882
) 
 
 
(93
) 
 
 
(12,975
) 
Basic
  
$
(2.12
) 
 
 
(0.08
) 
 
 
(2.20
) 
 
Total equity
  
 
8,691
 
 
 
(93
) 
 
 
8,598
 
Diluted
  
$
(2.12
) 
 
 
(0.08
) 
 
 
(2.20
) 
 
Total liabilities and equity
  
$
44,006
 
 
 
5
 
 
 
44,011
 
New accounting pronouncements
c.
New accounting pronouncements
Recently adopted accounting pronouncements
In September 2022, the FASB issued ASU
2022-04
“Liabilities — Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations (Subtopic
405-50)”.
This guidance is intended to address requests from stakeholders for information about an entity’s use of supplier finance programs and their effect on the entity’s working capital, liquidity and cash flows. The guidance is effective for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information requirement, which is effective for the fiscal years beginning after December 15, 2023. For further information, see note 10g.
In October 2021, the FASB issued ASU
2021-08
“Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The Company adopted the new accounting standard effective January 1, 2023 and the guidance was applied prospectively to all business combinations with an acquisition date occurring on or after January 2023. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.
Recently issued accounting pronouncements, not yet adopted
In December 2023, the FASB issued ASU
2023-09
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU
2023-09
address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and
 
 
in foreign jurisdictions. ASU
2023-09
is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
In November 2023, the FASB issued ASU
2023-07
“Segment Reporting: Improvements to Reportable Segment Disclosures”. This guidance expands public entities’ segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments are required to be applied retrospectively to all prior periods presented in an entity’s financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements related disclosures.
In October 2023, the FASB issued ASU
2023-06
“Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” which incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification topics, allow investors to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from
Regulation S-X
or
Regulation S-K
becomes effective, with early adoption prohibited. The amendments in this ASU should be applied prospectively. The Company does not expect ASU
2023-06
will have a material impact to its consolidated financial statements.
 
Acquisitions
d.
Acquisitions:
Teva’s consolidated financial statements include the operations of acquired businesses from the date of the acquisition’s consummation. Acquired businesses are accounted for using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired IPR&D be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When Teva acquires net assets that do not constitute a business, as defined under U.S. GAAP, no goodwill is recognized and acquired IPR&D is expensed unless it has an alternative future use.
Contingent consideration incurred in a business combination is included as part of the acquisition price and recorded at a probability weighted assessment of its fair value as of the acquisition date. The fair value of the contingent consideration is
re-measured
at each reporting period, with any adjustments in fair value recognized in earnings under other asset impairments, restructuring and other items.
Collaborative arrangements
e.
Collaborative arrangements:
Collaborative arrangements are contractual arrangements in which the parties are active participants to the arrangement and are exposed to the significant risks and rewards that are dependent on the ultimate commercial success of the endeavor.
 
 
The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to collaborative agreements as gross or net. If the Company is the principal participant in a transaction, revenues and costs are recorded on a gross basis; otherwise, revenues and costs are recorded on a net basis.
Cost reimbursements to the collaborative partner or payments received from the collaborative partner to share these costs pursuant to the terms of the collaborative arrangements are recorded as research and development expenses.
 
Equity investments
f.
Equity investments:
The Company measures equity investments at fair value with changes in fair value recognized in net income. The Company accounts for equity investments that do not have a readily determinable fair value as cost method investments under the measurement alternative to the extent such investments are not subject to consolidation or the equity method. Under the measurement alternative, these financial instruments are carried at cost, less any impairment (assessed quarterly for triggering events), adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. In addition, income is recognized when dividends are received only to the extent they are distributed from net accumulated earnings of the investee. Otherwise, such distributions are considered returns of investment and are recorded as a reduction of the cost of the investment. The Company accounts for equity investments as current when the Company has the intent and ability to sell such assets within the next twelve months.
Fair value measurement
 
g.
Fair value measurement:
The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.
 
Investment in debt securities
h.
Investment in debt securities:
Investment in securities consists of debt securities classified as
available-for-sale
and recorded at fair value. The fair value of quoted securities is based on their current market value. When debt securities do not have an active market, fair value is determined using a valuation model. This model is based on reference to other instruments with similar characteristics, a discounted cash flow analysis or other pricing models making use of market inputs and relying as little as possible on entity-specific inputs.

 
 
Unrealized gains and losses for
available-for-sale
securities are excluded from earnings and reported net of the related tax effect in the accumulated other comprehensive income component of shareholders’ equity. The Current Expected Credit Loss (CECL) methodology requires the Company to estimate lifetime expected credit losses for all
available-for-sale
debt securities in an unrealized loss position. When estimating a security’s probability of default and the recovery rate, the Company assesses the security’s credit indicators, including credit ratings. If the assessment indicates that an expected credit loss exists, the Company determines the portion of the unrealized loss attributable to credit deterioration and records an allowance for the expected credit loss through the Consolidated Statements of Income. Unrealized gains and any portion of a security’s unrealized loss attributable to
non-credit
losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax.
 
Cash and cash equivalents
i.
Cash and cash equivalents:
All highly liquid investments, which include short-term bank deposits and money market instruments, that are not restricted as to withdrawal or use, and investment in short-term debentures, the period to maturity of which did not exceed three months at the time of investment, are considered to be cash equivalents.
Restricted cash
j.
Restricted cash:
Restricted cash represents amounts which are legally restricted to withdrawal or usage and is presented in the Consolidated Balance Sheet under other current assets.
 
Accounts receivables
k.
Accounts Receivables:
Accounts receivable have been reduced by an allowance for doubtful accounts. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations.
Write-off
activity and recoveries for the periods presented were not material.
Concentration of credit risks
l.
Concentration of credit risks:
Most of Teva’s cash and cash equivalents, along with investment in securities, at December 31, 2023 were deposited with European, U.S. and Israeli banks and financial institutions and were comprised mainly of cash deposits.
The U.S. market constituted approximately 51% of Teva’s consolidated revenues in 2023. The exposure of credit risks relating to other trade receivables outside the U.S. is limited, due to the relatively large number of group customers and their wide geographic distribution. Teva performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral and from time to time the Company may choose to purchase trade credit insurance.
 
Inventories
m.
Inventories:
Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials, purchased products, manufactured finished products, products in process and capitalized production costs are determined predominantly on a standard cost basis, approximating actual costs. Other methods which are utilized

 
for determining the value of inventories are moving average, cost basis and the first in first out method. Teva regularly reviews its inventories for obsolescence and other impairment risks and reserves are established when necessary.
Inventories acquired in a business combination are
stepped-up
to their estimated fair value and amortized to cost of sales as that inventory is sold.
 
Long-lived assets
n.
Long-lived assets:
Teva’s long-lived,
non-current
assets are comprised mainly of goodwill, identifiable intangible assets, property, plant and equipment, and operating lease
right-of-use
(“ROU”) assets. All long-lived assets are monitored for impairment indicators throughout the year. Impairment testing for goodwill and all indefinite-lived intangible assets is performed at least annually. When necessary, charges for impairments of long-lived assets, other than goodwill, are recorded for the amount by which the fair value is less than the carrying value of these assets.
Goodwill
Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any
non-controlling
interest in the acquiree, over the assigned fair values of the identifiable net assets acquired. Goodwill is not amortized, and is assigned to reporting units and tested for impairment at least on an annual basis, in the second quarter of the fiscal year.
The goodwill impairment test is performed according to the following principles:
 
  1.
An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.
 
  2.
If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying mount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized.
An interim goodwill impairment test may be required in advance or after of the annual impairment test if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. For example, a substantial decline in the Company’s market capitalization, unexpected adverse business conditions, economic factors and unanticipated competitive activities may indicate that an interim impairment test is required. In the event that the Company’s market capitalization declines below its book value, the Company considers the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists.
Identifiable intangible assets
Identifiable intangible assets are comprised of definite life intangible assets and indefinite life intangible assets.
Definite life intangible assets consist mainly of acquired product rights and other rights relating to products for which marketing approval was received from the U.S. Food and Drug Administration (“FDA”) or the equivalent agencies in other countries. These assets are amortized mainly using the straight-line method over their estimated period of useful life, or based on economic benefit models, if more appropriate, which is determined by identifying the period and manner in which substantially all of the cash flows are expected to be

 
generated. Amortization of acquired developed products is recorded under cost of sales. Amortization of marketing and distribution rights is recorded under selling and marketing (“S&M”) expenses when separable.
Indefinite life intangible assets are mainly comprised of IPR&D assets. Teva monitors these assets for items such as research and development progress and for indicators of fair value change such as level of expected competition and or pricing, to identify any triggering events.
IPR&D acquired in a business combination is capitalized as an indefinite life intangible asset until the related research and development efforts are either completed or abandoned. In the reporting periods where they are treated as indefinite life intangible assets, they are not amortized but rather are monitored triggering events and tested for impairment at least on an annual basis, in the second quarter of the fiscal year. Upon completion of the related research and development efforts, management determines the useful life of the intangible assets and amortizes them accordingly. In case of abandonment or a reduction in the expected realizable value of the asset, the related research and development assets are impaired.
Whenever impairment indicators are identified for definite life intangible assets, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s or asset group’s cash flows and compares such value against the asset’s or asset group’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value based on the discounted cash flows.
For indefinite life intangible assets, Teva performs an impairment test annually in the second quarter and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Teva determines the fair value of the asset based on discounted cash flows and records an impairment loss if its book value exceeds fair value.
In determining the estimated fair value of identifiable intangible assets, Teva utilized a discounted cash flow model. The key assumptions within the model related to forecasting future revenue and operating income, an appropriate discount rate and an appropriate terminal value based on the nature of the long-lived asset. The Company’s updated forecasts of net cash flows for the impaired assets reflect, among others, the following: (i) for IPR&D assets, the impact of changes to the development programs, the projected development and regulatory timeframes and the risks associated with these assets; and (ii) for product rights, pricing and volume projections, as well as patent life and any significant changes to the competitive environment.
Property, plant and equipment
Property, plant and equipment are stated at cost, after deduction of the related investment grants, and depreciated using the straight-line method over the estimated useful life of the assets: buildings, mainly 40 years; machinery and equipment, mainly 20 years; and other assets, between 5 to 10 years.
For property, plant and equipment and lease
right-of-use
assets, whenever impairment indicators are identified, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s cash flows and compares such value against the asset’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value.
Lease
right-of-use
(ROU) assets
See note 8 and note 1ee for further discussion.

Contingencies
o.
Contingencies:
The Company is involved in various patent, product liability, commercial, government investigations, environmental claims and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies, contingent consideration, other contingent liabilities incurred or acquired in a business combination, Teva records accruals for these types of contingencies to the extent that Teva concludes their occurrence is probable and that the related liabilities are reasonably estimable. When accruing these costs, the Company will recognize an accrual in the amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Teva records anticipated recoveries under existing insurance contracts that are probable of occurring at the gross amount that is expected to be collected. When applicable, the Company classifies the effect that the passage of time had on the net present value of a discounted legal accrual as legal expenses. Legal costs are expensed as incurred.
The Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved.
Treasury shares
p.
Treasury shares:
Treasury shares are presented as a reduction of Teva shareholders’ equity and carried at their cost to Teva, under treasury shares.
Stock-based compensation
q.
Stock-based compensation:
Teva recognizes stock based compensation for the estimated fair value of share-based awards, restricted share units (“RSUs”) and performance share units (“PSUs”).
Teva measures compensation expense for share-based awards based on estimated fair values on the date of grant using the Black-Scholes option-pricing model. This option pricing model requires estimates as to the share-based award’s expected term and the price volatility of the underlying stock. Teva amortizes the value of share-based awards to expense over the vesting period on a straight-line basis.
Teva measures compensation expense for RSUs and PSUs based on the market value of the underlying stock at the date of grant, less the present value of expected dividends not received during the vesting period, if applicable. Teva amortizes the value of RSUs to expense over the vesting period on a straight-line basis. The compensation expense for PSUs is recognized only if it is probable that the performance condition will be achieved.
Teva records forfeitures for share-based awards, RSUs and PSUs as they occur. If an employee forfeits an award because he fails to complete the requisite service period, the Company will reverse the compensation cost previously recognized in the period the award is forfeited.
 
Deferred income taxes
r.
Deferred income taxes:
Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. In
 
 
determining whether a valuation allowance is needed, Teva considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. Deferred income tax liabilities and assets are classified as
non-current.
Tax has not been provided on the following items:
 
  1.
Taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. The determination of the amount of related unrecognized deferred tax liability is not practicable.
 
  2.
Amounts of
tax-exempt
income generated from the Company’s current Approved Enterprises and unremitted earnings from foreign subsidiaries retained for reinvestment in the Group. See note 13f.
Uncertain tax positions
s.
Uncertain tax positions:
Teva recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. Teva regularly
re-evaluates
its tax positions based on developments in its tax audits, statute of limitations expirations, changes in tax laws and new information that can affect the technical merits and change the assessment of Teva’s ability to sustain the tax benefit. In addition, the Company classifies interest and penalties recognized in the financial statements relating to uncertain tax position under the income taxes line item.
Provisions for uncertain tax positions, whereas Teva has net operating losses to offset additional income taxes that would result from the settlement of the tax position, are presented as a reduction of the deferred tax assets for such net operating loss.
Derivatives and hedging
t.
Derivatives and hedging:
The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, currency options, cross-currency swap contracts, interest rate swap contracts and treasury locks). The transactions are designed to hedge the Company’s currency and interest rate exposures. The Company does not enter into derivative transactions for trading purposes.
Derivative instruments are recognized on the balance sheet at their fair value.
For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recognized in financial expenses, net in the statements of income in the period that the changes in fair value occur.
For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings.
For derivative instruments that are designated as
net-investment
hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income. The effective
 
 
portion is determined by looking into changes in spot exchange rate. The change in fair value attributable to changes other than those due to fluctuations in the spot exchange rate are excluded from the assessment of hedge effectiveness and are recognized in the statement of income under financial expenses, net.
For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging.
Derivative instruments that do not qualify for hedge accounting are recognized on the balance sheet at their fair value, with changes in the fair value recognized as a component of financial expenses, net in the statements of income. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
Revenue recognition
u.
Revenue recognition:
A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.
Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes.
The amount of consideration to which Teva expects to be entitled varies as a result of rebates, chargebacks, returns and other sales reserves and allowances (“SR&A”) that the Company offers to its customers and their customers, as well as the occurrence or nonoccurrence of future events, including milestone events. A minimum amount of variable consideration is recorded by the Company concurrently with the satisfaction of performance obligations to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimates of variable consideration are based on historical experience and the specific terms in the individual agreements (which the Company believes approximates expected value). Rebates and chargebacks are the largest components of SR&A. If a minimum cannot be reasonably estimated, such revenue may be deferred to a future period when better information is available. For further description of SR&A components and how they are estimated, see “Variable Consideration” below.
Shipping and handling costs, after control of the product has transferred to a customer, are accounted for as a fulfillment cost and are recorded under S&M expenses.
Teva does not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms to customers are, on average, between thirty and ninety days.
The Company generally recognizes the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The
 
 
costs are recorded under S&M expenses. Similarly, Teva does not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less.

Nature of revenue streams
Revenue from sales of goods, including sales to distributors is recognized when the customer obtains control of the product. This generally occurs when products are shipped once the Company has a present right to payment and legal title, and risk and rewards of ownership are obtained by the customer.
Licensing arrangements performance obligations generally include intellectual property (“IP”) rights, certain R&D and contract manufacturing services. The Company accounts for IP rights and services separately if they are distinct – i.e. if they are separately identifiable from other items in the arrangement and if the customer can benefit from them on their own or with other resources that are readily available to the customer. The consideration is allocated between IP rights and services based on their relative stand-alone selling prices.
Revenue for distinct IP rights is accounted for based on the nature of the promise to grant the license. In determining whether the Company’s promise is to provide a right to access its IP or a right to use its IP, the Company considers the nature of the IP to which the customer will have rights. IP is either functional IP which has significant standalone functionality or symbolic IP which does not have significant standalone functionality. Revenue from functional IP is recognized at the point in time when control of the distinct license is transferred to the customer. Revenue from symbolic IP is recognized over the access period to the Company’s IP.
Revenue from sales based milestones and royalties promised in exchange for a license of IP is recognized only when, or as, the later of subsequent sale or the performance obligation to which some or all of the sales-based royalty has been allocated, is satisfied.
Distribution revenues are derived from sales of third-party products for which the Company acts as distributor, mostly in the United States via Anda and in Israel via Salomon Levin and Elstein Ltd. (SLE). In the United States, the Company is generally the principal in these arrangements and therefore records revenue on a gross basis as it controls the promised goods before transferring these goods to the customer. In Israel, the Company is the agent in these arrangements and therefore records revenue on a net basis as it has no discretion in establishing prices for any specified goods or services, limited inventory risk and is not primarily responsible for contract fulfillment. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Other revenues are primarily comprised of contract manufacturing services, sales of IP rights, sales of medical devices and other miscellaneous items. Revenue is recognized when the customer obtains control of such rights or products. This generally occurs when products are shipped, once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Trade receivables and contract liabilities
Trade receivables are presented net of allowance for credit losses, which include amounts billed and currently due from customers.
Contract liabilities are mainly comprised of deferred revenues (defined as obligations to provide products or services to customers when payment has been made in advance and delivery or performance has not yet occurred), which were immaterial as of December 31, 2023 and 2022.
 
 
Variable consideration
Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables.
The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated:
Rebates
Rebates are primarily related to volume incentives and are offered to key customers to promote loyalty. These rebate programs provide that, upon the attainment of
pre-established
volumes or the attainment of revenue milestones for a specified period, the customer receives a rebate. Since rebates are contractually agreed upon, they are estimated based on the specific terms in each agreement based on historical trends and expected sales. Externally obtained inventory levels and expected sales usage by contract are evaluated in relation to estimates made for rebates payable to indirect customers and managed care agreements.
Medicaid and Other Governmental Rebates
Pharmaceutical manufacturers whose products are covered by the Medicaid program are required to provide a rebate to each state as a percentage of their average manufacturer’s price for generic products dispensed and “best price” for innovative products dispensed. Many states have also implemented supplemental rebate programs that obligate manufacturers to pay rebates in excess of those required under federal law. The Company estimates these rebates based on historical trends of rebates paid, as well as on changes in wholesaler inventory levels and increases or decreases in sales.
Chargebacks
The Company has arrangements with various third parties, such as managed care organizations and drug store chains, establishing prices for certain of Teva’s products. While these arrangements are made between the Company and the customers, the customers independently select a wholesaler from which they purchase the products. Alternatively, certain wholesalers may enter into agreements with the customers, with Teva’s concurrence, which establish the pricing for certain products which the wholesalers provide. Under either arrangement, Teva will issue a credit (referred to as a “chargeback”) to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract prices. Provisions for chargebacks involve estimates of contract prices of over 2,000 products and multiple contracts with multiple wholesalers. Provisions for chargebacks involve estimates of usage by retailers and other indirect buyers with varying contract prices for multiple wholesalers. The provision for chargebacks varies in relation to changes in product mix, pricing and the level of inventory at the wholesalers and, therefore, will not necessarily fluctuate in proportion to an increase or decrease in sales. Provisions for estimating chargebacks are calculated using historical chargeback experience and/or expected chargeback levels for new products and anticipated pricing changes. Teva considers current and expected price competition when evaluating the provision for chargebacks. Chargeback provisions are compared to externally obtained distribution channel reports for reasonableness. The Company regularly monitors the provision for chargebacks and makes adjustments when the Company believes that actual chargebacks may differ from estimated provisions.
 
 
Other Promotional Arrangements
Other promotional or incentive arrangements are periodically offered to customers, specifically related to the launch of products or other targeted promotions. Provisions are made in the period for which the Company can estimate the incentive earned by the customer, in accordance with the contractual terms. The Company regularly monitors the provision for other promotional arrangements and makes adjustments when it believes that the actual provision may differ from the estimated provisions.
Shelf Stock Adjustments
The custom in the pharmaceutical industry is generally to grant customers a shelf stock adjustment based on the customers’ existing inventory contemporaneously with decreases in the market price of the related product. The most significant of these relate to products for which an exclusive or semi-exclusive period exists. Provisions for price reductions depend on future events, including price competition, new competitive launches and the level of customer inventories at the time of the price decline. Teva regularly monitors the competitive factors that influence the pricing of its products and customer inventory levels and adjust these estimates where appropriate.
Returns
Returns primarily relate to customer returns of expired products which, the customer has the right to return up to one year following the expiration date. Such returned products are destroyed and credits and/or refunds are issued to the customer for the value of the returns. Accordingly, no returned assets are recoded in connection with those products. The returns provision is estimated by applying a historical return rate to the amounts of revenue estimated to be subject to returns. Revenue subject to returns is estimated based on the lag time from time of sale to date of return. The estimated lag time is developed by analyzing historical experience. Additionally, The Company considers specific factors, such as estimated levels of inventory in the distribution channel, product dating and expiration, size and maturity of launch, entrance of new competitors, changes in formularies or packaging and any changes to customer terms, for determining the overall expected levels of returns.
Prompt Pay Discounts
Prompt pay discounts are offered to most customers to encourage timely payment. Discounts are estimated at the time of invoice based on historical discounts in relation to sales. Prompt pay discounts are almost always utilized by customers. As a result, the actual discounts do not vary significantly from the estimated amount.
Research and development
v.
Research and development:
Research and development expenses are charged to statement of income (loss) as incurred. Participations and grants in respect of research and development expenses are recognized as a reduction of research and development expenses as the related costs are incurred, or as the related milestone is met.
Advance payments for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as an expense as the related goods are used or the services are rendered.
Research and development
in-process
acquired as part of an asset purchase, which has not reached technological feasibility and has no alternative future use, is expensed as incurred.
 
 
The Company accounts for grants received to perform research and development services in accordance with
ASC 730-20,
Research and Development Arrangements. At the inception of the grant, the Company performs an assessment as to whether the grant is a liability or a contract to perform research and development services for others. If Teva is obligated to repay the grant funds to the grantor regardless of the outcome of the research and development activities, then it is required to estimate and recognize that liability. Alternatively, if Teva is not required to repay, or if it is required to repay the grant funds only if the research and development activities are successful, then the grant agreement is accounted for as a contract to perform research and development services for others, in which case, a reduction of research and development costs is recognized when the related research and development expenses are incurred.
Shipping and handling costs
w.
Shipping and handling costs:
Shipping and handling costs to end customers, which are included in S&M expenses, were $124 million, $118 million and $111 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Advertising costs
x.
Advertising costs:
Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2023, 2022 and 2021 were $162 million, $168 million and $246 million, respectively.
Restructuring
y.
Restructuring:
Restructuring provisions are recognized for the direct expenditures arising from restructuring initiatives, where the plans are sufficiently detailed and where appropriate communication to those affected has been made.
Costs for
one-time
termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period.
Contractual termination benefits are provided to employees when employment is terminated due to an event specified in the provisions of an existing plan or agreement. A liability is recorded and the expense is recognized when it is probable that employees will be entitled to the benefits and the amount is reasonably estimable.
Special termination benefits arise when the Company offers, for a short period of time, to provide certain additional benefits to employees electing voluntary termination. A liability is recorded and the expense is recognized in the period the employees irrevocably accept the offer and the amount of the termination liability is reasonably estimable.
Segment reporting
z.
Segment reporting:
The Company’s business includes three reporting segments based on three geographical areas:
 
  (a)
North America segment, which includes the United States and Canada.
 
  (b)
Europe segment, which includes the European Union, the United Kingdom and certain other European countries.
 
  (c)
International Markets segment, which includes all countries in which Teva operates other than those in the North America and Europe segments.
Each business segment manages the entire product portfolio in its region, including generic products, innovative medicines and
over-the-counter
(“OTC”) products.
 
 
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
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis.
 
Earnings per share
aa.
Earnings per share:
Basic earnings (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 RSUs and PSUs during the period, net of treasury shares.
In computing diluted earnings per share, basic earnings per share are adjusted to take into account the potential dilution that could occur upon: (i) the exercise of options and
non-vested
RSUs and PSUs granted under employee stock compensation plans and convertible senior debentures, using the treasury stock method; and (ii) the conversion of the remaining convertible senior debentures using the
“if-converted”
method, by adding to net income interest expense on the debentures and amortization of issuance costs, net of tax benefits, and by adding the weighted average number of shares issuable upon assumed conversion of the debentures.
Securitization and factoring
bb.
Securitization and factoring
Teva accounts for transfers of its trade receivable as sales when it has surrendered control over the related assets in accordance with ASC Topic 860 “Transfer and Servicing” of Financial Assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the balance sheet at fair value. Refer to note 10f.
Divestitures
cc.
Divestitures
The Company nets the proceeds on the divestitures of businesses and tangible assets with the carrying amount of the related assets and records gain or loss on sale within other income. Any contingent payments that are potentially due to the Company as a result of these divestitures are recorded when it is probable that a significant reversal of income will not occur, or in the case of a business, when such payments are realizable. For divestures of businesses, including divestitures of products that qualify as a business, the Company reflects the relative fair value of goodwill associated with the businesses in the determination of gain or loss on sale.
Debt instruments
dd.
Debt instruments
Debt instruments are initially recognized at the fair value of the consideration received. Debt issuance costs are recorded on the consolidated balance sheet as a reduction of liability. They are subsequently recognized at amortized cost using the effective interest method. Debt may be considered extinguished when it has been modified and the terms of the new debt instruments and old debt instruments are “substantially different” (as defined in the debt modification guidance in ASC
470-50
“Debt—Modifications and Extinguishments”). The Company classifies the current portion of long term debt as
non-current
liabilities on the balance sheet when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC
470-50
“Debt”.
Leases
ee.
Leases
Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC
842-10-25-2.
If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva
 
 
classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally, 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset.
Operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in the consolidated balance sheet. Finance leases are included in property, plant and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheet.
ROU assets represent Teva’s right to use an underlying asset for the lease term and lease liabilities represent Teva’s obligation to make lease payments arising from the lease. Operating lease ROU and finance lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, which may include options to extend or terminate the lease, when it is reasonably certain at the commencement date whether the Company will or will not exercise the option to renew or terminate the lease. Teva uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments.
For finance leases, Teva recognizes interest on the lease liability separately from amortization of the assets in the consolidated statement of income. For operating leases, lease expenses are recognized on a straight-line basis over the lease term.
Teva elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, Teva does not recognize ROU assets or lease liabilities, but recognizes lease expenses over the lease term on a straight line basis. Teva also elected the practical expedient to not separate lease and
non-lease
components for all of Teva’s leases, other than leases of real estate.
Lease terms will include options to extend or terminate the lease when it is reasonably certain that Teva will either exercise or not exercise the option to renew or terminate the lease.
Teva’s lease agreements have remaining lease terms ranging from 1 year to 76 years. Some of these agreements include options to extend the leases for up to 10 years and some include options to terminate the leases immediately. Certain leases also include options to purchase the leased property.
The depreciable life of leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset reasonably certain of exercise.
Some of Teva’s vehicle lease agreements include rental payments based on the actual usage of the vehicles and other lease agreements include rental payments adjusted periodically for inflation. Teva’s lease agreements do not contain any material residual value guarantees.
Teva rents out or subleases certain assets to third parties, which has an immaterial impact on Teva’s consolidated financial statements.
v3.24.0.1
Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule Of Impact Of Restatement On Certain Line Items And Balance Sheet
Consolidated Statements of Income
(loss)
  
Year ended December 31, 2022
 
 
Consolidated Balance Sheets
  
December 31, 2022
 
 
  
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
  
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
  
U.S $ in millions (except per share
amounts)
 
 
 
  
U.S $ in millions (except per share
amounts)
 
Other asset impairments, restructuring and other items
  
$
414
 
 
 
98
 
 
 
512
 
 
Deferred income taxes
  
$
1,453
 
 
 
5
 
 
 
1,458
 
Operating income (loss)
  
 
(2,099
) 
 
 
(98
) 
 
 
(2,197
) 
 
Total assets
  
 
44,006
 
 
 
5
 
 
 
44,011
 
Income (loss) before income taxes
  
 
(3,065
) 
 
 
(98
) 
 
 
(3,163
) 
 
Other taxes and long-term liabilities
  
 
3,847
 
 
 
98
 
 
 
3,945
 
Income taxes (benefit)
  
 
(638
) 
 
 
(5
) 
 
 
(643
) 
 
Total long-term liabilities
  
 
23,846
 
 
 
98
 
 
 
23,944
 
Net income (loss)
  
 
(2,406
) 
 
 
(93
) 
 
 
(2,499
) 
 
Total liabilities
  
 
35,315
 
 
 
98
 
 
 
35,413
 
Net income (loss) attributable to Teva
  
 
(2,353
) 
 
 
(93
) 
 
 
(2,446
) 
 
Teva shareholders’ equity:
  
 
 
Earnings (loss) per share attributable to ordinary shareholders:
  
 
 
 
Accumulated deficit
  
 
(12,882
) 
 
 
(93
) 
 
 
(12,975
) 
Basic
  
$
(2.12
) 
 
 
(0.08
) 
 
 
(2.20
) 
 
Total equity
  
 
8,691
 
 
 
(93
) 
 
 
8,598
 
Diluted
  
$
(2.12
) 
 
 
(0.08
) 
 
 
(2.20
) 
 
Total liabilities and equity
  
$
44,006
 
 
 
5
 
 
 
44,011
 
v3.24.0.1
Certain transactions (Tables)
 12 Months Ended
Dec. 31, 2023
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 December 31, 2023 and December 31, 2022:
 
 
 
 
 
 
 
 
 
 
    
December 31,
2023
     
December 31,
2022
  
    
(U.S. $ in millions)
  
Inventories
    $ 12      $ 2  
Property, plant and equipment, net and others
      28        18  
Goodwill
      30        —   
Adjustments of assets held for sale to fair value
      —         (10 ) 
    
 
 
     
 
 
  
Total assets of the disposal group classified as held for sale in the consolidated balance sheets
    $ 70      $ 10  
    
 
 
     
 
 
  
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets, recorded under other current liabilities
    $ (13 )     $ —   
    
 
 
     
 
 
  
v3.24.0.1
Revenue from contracts with customers (Tables)
 12 Months Ended
Dec. 31, 2023
Summary of disaggregates revenues by major revenue streams
The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 19.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December 31, 2023
  
    
North
America
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,944        4,631        1,840        565        12,979  
Licensing arrangements *
      601        51        24        5        681  
Distribution
      1,577        §        38        —         1,615  
Other**
      2        155        56        357        570  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
     $ 8,124      $ 4,837      $ 1,958      $ 926      $ 15,846  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Revenues from licensing arrangements in North America segment were mainly comprised of $500 million upfront payment received in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
**
“Other” revenues in Europe segment mainly related to the sale of certain product rights.
§
Represents an amount less than $
0.5 
million.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December 31, 2022
  
    
North
America
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,834        4,455        1,806        671        12,766  
Licensing arrangements
      139        51        19        4        212  
Distribution
      1,471        1        46        —         1,519  
Other
      8        18        33        370        428  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
     $ 7,452      $ 4,525      $ 1,903      $ 1,045      $ 14,925  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   
    
Year ended December 31, 2021
  
    
North
America
     
Europe
     
International
Markets
     
Other
activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      6,394        4,807        1,889        739        13,829  
Licensing arrangements
      92        50        13        4        160  
Distribution
      1,323        1        65        —         1,390  
Other
      (1)        27        65        408        500  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
     $ 7,809      $ 4,886      $ 2,032      $ 1,151      $ 15,878  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Summary of Sales Reserves and Allowances
SR&A to U.S. customers comprised approximately 65% of the Company’s total SR&A as of December 31, 2023, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the years ended December 31, 2023 and 2022 were as follows:
 
   
Sales Reserves and Allowances
  
   
Reserves
included in
Accounts
Receivable, net
    
Rebates
    
Medicaid and
other
governmental
allowances
    
Chargebacks
    
Returns
    
Other
    
Total
reserves
included in
Sales
Reserves
and
Allowances
    
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
     354       4,015       654       7,579       264       109       12,621       12,975  
Provisions related to sales made in prior periods
     —        (31 )      (33 )      (54 )      17       —        (101 )      (101 ) 
Credits and payments
     (360 )      (3,974 )      (748 )      (7,662 )      (304 )      (77 )      (12,765 )      (13,125 ) 
Translation differences
     —        18       4       5       4       (1 )      30       30  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2023
   $ 61     $ 1,603     $ 540     $ 859     $ 436     $ 97     $ 3,535     $ 3,596  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
   
Sales Reserves and Allowances
  
   
Reserves
included in
Accounts
Receivable, net
    
Rebates
    
Medicaid and
other
governmental
allowances
    
Chargebacks
    
Returns
    
Other
    
Total
reserves
included in
Sales
Reserves
and
Allowances
    
Total
  
   
(U.S.$ in millions)
  
Balance at January 1, 2022
   $ 68     $ 1,655     $ 854     $ 1,085     $ 535     $ 112     $ 4,241     $ 4,309  
Provisions related to sales made in current year period
     363       3,823       871       7,819       317       85       12,915       13,278  
Provisions related to sales made in prior periods
     —        (69 )      (35 )      (44 )      (3 )      (51 )      (202 )      (202 ) 
Credits and payments
     (364 )      (3,798 )      (1,023 )      (7,861 )      (390 )      (77 )      (13,149 )      (13,513 ) 
Translation differences
     —        (36 )      (4 )      (8 )      (4 )      (3 )      (55 )      (55 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2022
   $ 67     $ 1,575     $ 663     $ 991     $ 455     $ 66     $ 3,750     $ 3,817  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
v3.24.0.1
Inventories (Tables)
 12 Months Ended
Dec. 31, 2023
Summary of Inventories
Inventories, net of reserves, consisted of the following:
 
    
December 31,
  
    
 2023 
     
 2022 
  
    
(U.S. $ in millions)
  
Finished products
    $ 2,346      $ 1,987  
Raw and packaging materials
      993        1,059  
Products in process
      500        555  
Materials in transit and payments on account
      183        232  
  
 
 
     
 
 
  
   $ 4,021      $ 3,833  
  
 
 
     
 
 
  
v3.24.0.1
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2023
Summary of Property, Plant and Equipment, Net
Property, plant and equipment, net, consisted of the following:
 
    
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
  
Machinery and equipment
    $ 4,807      $ 5,026  
Buildings
      2,488        2,463  
Computer equipment and other assets
      2,419        2,323  
Assets under construction and payments on account
      1,427        1,199  
Land
      246        246  
  
 
 
     
 
 
  
     11,387        11,257  
Less- accumulated depreciation
      (5,637 )       (5,518 ) 
  
 
 
     
 
 
  
   $ 5,750      $ 5,739  
  
 
 
     
 
 
  
v3.24.0.1
Identifiable Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2023
Summary of Identifiable Intangible Assets
Identifiable intangible assets consisted of the following:
 
    
Gross carrying
amount net of
impairment
     
Accumulated
amortization
     
Net carrying amount
  
    
December 31,
  
    
 2023 
     
 2022 
     
2023
     
2022
     
 2023 
     
 2022 
  
    
(U.S. $ in millions)
  
Product rights
    $ 17,981      $ 18,067      $ 13,274      $ 12,630      $ 4,707      $ 5,437  
Trade names
      583        577        269        231        314        346  
In-process
research and development (IPR&D)
      366        487        —         —         366        487  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 18,930      $ 19,131      $ 13,543      $ 12,861      $ 5,387      $ 6,270  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
v3.24.0.1
Goodwill (Tables)
 12 Months Ended
Dec. 31, 2023
Summary of Changes in the Carrying Amount of Goodwill by Segment
Changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 were as follows:
 
                     
Other
        
   
North
America
    
Europe
    
International
Markets
    
Teva’s API
    
Medis
    
Total
  
   
(U.S. $ in millions)
        
Balance as of December 31, 2021 (1)
   $ 6,474     $ 8,544     $ 2,328     $ 2,417     $ 277     $ 20,040  
Changes during the period:
            
Goodwill impairment
     —        —        (979 )      (1,066 )      —        (2,045 ) 
Goodwill acquired
     —        —        —        12       —        12  
Translation differences
     (24 )      (242 )      (10 )      (70 )      (28 )      (374 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2022 (1)
   $ 6,450     $ 8,302     $ 1,339     $ 1,293     $ 249     $ 17,633  
Changes during the period:
            
Goodwill impairment
     —        —        (700 )      —        —        (700 ) 
Goodwill reclassified as assets held for sale
     —        —        (30 )      —        —        (30 ) 
Translation differences
     9       164       66       20       16       275  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2023 (1)
   $ 6,459     $ 8,466     $ 675     $ 1,313     $ 265     $ 17,177  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
Cumulative goodwill impairment as of December 31, 2023, December 31, 2022 and December 31, 2021 was approximately $28.3 billion, $27.6 billion and $25.6 billion respectively.
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Components Of Lease Expense
The components of operating lease cost for the years ended December 31, 2023, 2022 and 2021 were as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating lease cost:
         
Fixed payments and variable payments that depend on an index or rate
    $ 132      $ 142      $ 135  
Variable lease payments not included in the lease liability
      5        4        4  
Short-term lease cost
      3        2        2  
  
 
 
     
 
 
     
 
 
  
   $ 139      $ 148      $ 141  
  
 
 
     
 
 
     
 
 
  
Supplemental cash flow information related to leases
Supplemental cash flow information related to operating leases was as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Cash paid for amounts included in the measurement of lease liabilities:
         
Operating cash flows from operating leases
    $ 141      $ 140      $ 143  
Right-of-use
assets obtained in exchange for lease obligations
(non-cash):
         
Operating leases
    $ 121      $ 81      $ 81  
Supplemental Balance Sheet Information Related To Leases
Supplemental balance sheet information related to operating leases was as follows:
 
    
December 31,
     
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating leases:
      
Operating lease ROU assets
    $ 397      $ 419  
  
 
 
     
 
 
  
Other current liabilities
      97        93  
Operating
lease
liabilities
      320        349  
  
 
 
     
 
 
  
Total operating lease liabilities
    $ 417      $ 442  
  
 
 
     
 
 
  
 
    
December 31,
    
December 31,
  
    
2023
    
2022
  
Weighted average remaining lease term
     
Operating leases
      6.1 years       6.8 years  
Weighted average discount rate
     
Operating leases
      6.0 %      5.6 % 
Maturities of lease liabilities
Maturities of operating lease liabilities were as follows:
 
    
December 31,
  
    
2023
  
    
(U.S. $ in millions)
  
2024
    $ 116  
2025
      98  
2026
      80  
2027
      62  
2028 and thereafter
      140  
  
 
 
  
Total operating lease payments
    $ 496  
  
 
 
  
Less: imputed interest
      79  
  
 
 
  
Present value of lease liabilities
    $ 417  
  
 
 
  
v3.24.0.1
Debt obligations (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule of Short-term Debt
a.
Short-term debt:
 
                 
December 31,
  
    
Weighted average
interest rate as of
December 31, 2023
    
Maturity
     
2023
     
2022
  
                 
(U.S. $ in millions)
  
Convertible debentures
      0.25 %      2026      $ 23      $ 23  
Current maturities of long-term liabilities
 
      1,649        2,086  
       
 
 
     
 
 
  
Total short term debt
 
    $ 1,672      $ 2,109  
Schedule of Senior Notes and Loans
b.
Long-term debt:
 
   
Interest rate as of
December 31,
2023
    
Maturity
    
December 31,
2023
    
December 31,
2022
  
               
(U.S. $ in millions)
  
Senior notes EUR 1,500 million
     1.13 %      2024       693       670  
Sustainability-linked senior notes EUR 1,500 million (6)(*)
     4.38 %      2030       1,656       1,606  
Senior notes EUR 1,300 million (9)
     1.25 %      2023       —        633  
Sustainability-linked senior notes EUR 1,100 million (7)(*)
     3.75 %      2027       1,215       1,177  
Senior notes EUR 1,000 million (5)
     6.00 %      2025       453       1,070  
Senior notes EUR 900 million (5)
     4.50 %      2025       547       963  
Sustainability-linked senior notes EUR 800 million (1)(*)
     7.38 %      2029       884       —   
Senior notes EUR 750 million
     1.63 %      2028       826       800  
Senior notes EUR 700 million
     1.88 %      2027       771       748  
Sustainability-linked senior notes EUR 500 million (2)(*)
     7.88 %      2031       552       —   
Senior notes USD 3,500 million (5)
     3.15 %      2026       3,374       3,496  
Senior notes USD 3,000 million (5)(10)
     2.80 %      2023       —        1,453  
Senior notes USD 2,000 million
     4.10 %      2046       1,986       1,986  
Senior notes USD 1,250 million (5)
     6.00 %      2024       956       1,250  
Senior notes USD 1,250 million
     6.75 %      2028       1,250       1,250  
Senior notes USD 1,000 million (5)
     7.13 %      2025       427       1,000  
Sustainability-linked senior notes USD 1,000 million (7)(*)
     4.75 %      2027       1,000       1,000  
Sustainability-linked senior notes USD 1,000 million (6)(*)
     5.13 %      2029       1,000       1,000  
Senior notes USD 789 million
     6.15 %      2036       783       783  
Sustainability-linked senior notes USD 600 million (3)(*)
     7.88 %      2029       600       —   
Sustainability-linked senior notes USD 500 million (4)(*)
     8.13 %      2031       500       —   
Senior notes CHF 350 million
     1.00 %      2025       416       382  
     
 
 
    
 
 
  
Total senior notes
 
     19,889       21,266  
Other long-term debt
 
     1       1  
Less current maturities
 
     (1,649 )      (2,086 ) 
Less debt issuance costs (8)
 
     (80 )      (78 ) 
 
 
 
    
 
 
  
Total senior notes and loans
 
   $ 18,161     $ 19,103  
 
 
 
    
 
 
  
 
(1)
In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 800 million euro bearing 7.38% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.100%-0.300%
per annum, from and including September 15, 2026.
(2)
In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 500 million euro bearing 7.88% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.100%-0.300%
per annum, from and including September 15, 2026.
(3)
In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $600 million bearing 7.88% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.100%-0.300%
per annum, from and including September 15, 2026.
(4)
In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $500 million bearing 8.13% annual interest and due September 2031. If Teva fails to achieve certain
 
 
  sustainability performance targets, the interest rate shall increase by
0.100%-0.300%
per annum, from and including September 15, 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)
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.
(7)
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.
(8)
Debt issuance costs as of December 31, 2023 include $26 million in connection with the issuance of the sustainability-linked senior notes in March 2023, partially offset by $6 million acceleration of issuance costs related to the cash tender offer.
(9)
In March 2023, Teva repaid $646 million of its 1.25% senior notes at maturity.
(10)
In July 2023, Teva repaid $1,000 million of its 2.8% senior notes at maturity.
*
Interest rate adjustments and a potential
one-time
premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 10c.
Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance Cost
As of December 31, 2023, the required annual principal payments of long-term debt (excluding debt issuance costs), including convertible senior debentures, starting from the year 2025, are as follows:
 
 
  
December 31,
2023
 
 
  
(U.S. $ in millions)
 
2025
    $ 1,843  
2026*
      3,397  
2027
      2,986  
2028
      2,076  
2029 and thereafter
      7,961  
    
 
 
  
     $ 18,263  
    
 
 
  
 
*
Including $23 million convertible notes. See note 9a.
v3.24.0.1
Derivative instruments and hedging activities (Tables)
 12 Months Ended
Dec. 31, 2023
Summary of Notional Amounts for Hedged Items
The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting:
 
 
 
 
 
 
 
 
 
 
    
December 31,

2023
     
December 31,

2022
  
    
(U.S. $ in millions)
  
Cross-currency swap-cash flow hedge (1)
    $ 169      $ —   
    
 
 
     
 
 
  
Summary of Classification and Fair Values of Derivative Instruments
The following table summarizes the classification and fair values of derivative instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Fair value
  
    
Designated as hedging
instruments
     
Not designated as hedging

instruments
  
    
December 31,

2023
     
December 31,

2022
     
December 31,

2023
    
December 31,

2022
  
Reported under
   
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Asset derivatives:
                                   
Other current assets:
                                   
Option and forward contracts
    $ —       $ —       $ 38     $ 29  
Other
non-current
assets:
                                   
Cross-currency swaps - cash flow hedge (1)
      8        —         —        —   
Liability derivatives:
                                   
Other current liabilities:
                                   
Option and forward contracts
    $ —       $ —       $ (39 )    $ (101 ) 
Summary of Pre-tax (Gains) Losses From Derivatives Designated in Cash Flow Hedging Relationships
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives designated in fair value or cash flow hedging relationships:
 
Reported under
   
Financial expenses, net
     
Other comprehensive

income (loss)
  
    
Year ended December 31,
     
Year ended December 31,
  
    
 2023 
    
 2022 
     
 2021 
     
 2023 
     
 2022 
    
 2021 
  
    
(U.S. $ in millions)
  
Line items in which effects of hedges are recorded
    $ 1,057     $ 966      $ 1,058      $ 91      $ (270 )    $ (391 ) 
Cross-currency swaps - cash flow hedge (1)
      (11 )      —         —         1        —        —   
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
(gains) losses from derivatives not designated as hedging instruments:
 
Reported under
   
Financial expenses, net
    
Net revenues
  
    
Year ended December 31,
    
Year ended December 31,
  
    
 2023 
    
 2022 
    
 2021 
    
 2023 
    
 2022 
    
 2021 
  
    
(U.S. $ in millions)
  
Line items in which effects of hedges are recorded
    $ 1,057     $ 966     $ 1,058     $ (15,846 )    $ (14,925 )    $ (15,878 ) 
Option and forward contracts (2)
      (54 )      (12 )      (45 )      —        —        —   
Option and forward contracts economic hedge (3)
      —        —        —        2       (11 )      (31 ) 
Summary of Sold Receivables Outstanding Balance Net of DPP Asset under Outstanding Securitization Program
The following table summarizes the change in the sold receivables outstanding balance, net of DPP, under the outstanding securitization program:
 
 
 
 
 
 
 
 
 
 
    
As of and for the year ended
December 31,
  
    
 2023 
     
 2022 
  
    
(U.S. $ in millions)
  
Sold receivables at the beginning of the year
    $ 636      $ 685  
Proceeds from sale of receivables
      4,391        4,653  
Cash collections (remitted to the owner of the receivables)
      (4,365 )       (4,665 ) 
Effect of currency exchange rate changes
      24        (37 ) 
    
 
 
     
 
 
  
Sold receivables at the end of the year
    $ 686      $ 636  
    
 
 
     
 
 
  
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule of Income Before Income Taxes
a.
Income (loss) before income taxes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Parent Company and its Israeli subsidiaries
    $ (767 )     $ (119 )     $ 126  
Non-Israeli
subsidiaries
      143        (3,044 )       532  
    
 
 
     
 
 
     
 
 
  
     $ (624 )     $ (3,163 )     $ 658  
    
 
 
     
 
 
     
 
 
  
Schedule of the Provision for Income Taxes
b.
Income taxes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
In Israel
    $ (402 )     $ 33      $ 124  
Outside Israel
      395        (676 )       87  
    
 
 
     
 
 
     
 
 
  
     $ (7 )     $ (643 )     $ 211  
    
 
 
     
 
 
     
 
 
  
Current
    $ 333      $ 430      $ 270  
Deferred
      (340 )       (1,073 )       (59 ) 
    
 
 
     
 
 
     
 
 
  
     $ (7 )     $ (643 )     $ 211  
    
 
 
     
 
 
     
 
 
  
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)
 
 
 
 
 
 
 
 
 
 
 
 
 
    
2023
    
2022
    
2021
  
    
(U.S. $ in millions)
  
Income (loss) before income taxes (***)
    $ (624 )    $ (3,163 )    $ 658  
Statutory tax rate in Israel
      23 %      23 %      23 % 
    
 
 
    
 
 
    
 
 
  
Theoretical provision for income taxes (***)
    $ (144 )    $ (727 )    $ 151  
Increase (decrease) in the provision for income taxes due to:
                         
The Parent Company and its Israeli subsidiaries - Tax benefits arising from net deferred taxes, resulting from intellectual property related integration plans, including carryforward losses
      (272)
    —        —   
Tax benefits arising from reduced tax rates under benefit programs
      14       15       (12)  
Mainly nondeductible items and prior year tax
      —        35       20  
Non-Israeli
subsidiaries, including impairments (*)
      372       941       117  
Worthless stock deduction (**)
      —        (909)       —   
Increase (decrease) in other uncertain tax positions - net
      23       2       (65)  
    
 
 
    
 
 
    
 
 
  
Effective consolidated income taxes (***)
    $ (7)     $ (643)     $ 211  
    
 
 
    
 
 
    
 
 
  
 
*
In 2023 and 2022, income before income taxes includes goodwill impairment in
non-Israeli
subsidiaries that did not have a corresponding tax effect.
**
In 2022, one of Teva’s U.S. subsidiaries was determined to be insolvent for tax purposes (i.e., its liabilities exceeded the fair market value of its assets), mainly in light of its accumulated operational losses. Consequently, Teva recognized on its 2022 tax return, a worthless stock deduction of approximately $4.2 billion, with related tax benefit of approximately $909 million.
***
The financial data presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
Schedule of Deferred Income Taxes
c.
Deferred income taxes:
 
 
 
 
 
 
 
 
 
 
    
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
  
Deferred tax assets (liabilities), net:
         
Inventory related
    $ 76      $ 125  
Sales reserves and allowances
      81        89  
Provision for legal settlements
      702        703  
Intangible assets (*)
      (118 )       (567 ) 
Carryforward losses and deductions and credits (**)
      2,463        2,850  
Property, plant and equipment
      (225 )       (238 ) 
Deferred interest
      799        800  
Provisions for employee related obligations
      80        82  
Other (***)
      357        138  
    
 
 
     
 
 
  
       4,215        3,982  
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized
      (3,009 )       (3,072 ) 
    
 
 
     
 
 
  
     $ 1,206      $ 910  
    
 
 
     
 
 
  
 
(*)
The increase in deferred tax is mainly due to intellectual property related integration.
(**)
The amounts are shown following a reduction for unrecognized tax benefits of $2 million and $1 million as of December 31, 2023 and 2022, respectively.
(***)
The amounts shown are primarily comprised of Capitalization of R&D Expenses. Other deferred income taxes presented in the table above as of December 31, 2022, have been revised as discussed in note 1b.
Schedule of Deferred Tax Assets and Liabilities By Report Caption
The deferred income taxes are reflected in the balance sheets among:
 
 
 
 
 
 
 
 
 
 
    
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
  
Long-term assets—deferred income taxes (*)
      1,812        1,458  
Long-term liabilities—deferred income taxes
      (606 )       (548 ) 
    
 
 
     
 
 
  
     $ 1,206      $ 910  
    
 
 
     
 
 
  
 
(*)
Long-term assets—deferred income taxes presented in the tables above as of December 31, 2022, have been revised as discussed in note 1b.
Schedule of Unrecognized Tax Benefits
d.
Uncertain tax positions:
The following table summarizes the activity of Teva’s gross unrecognized tax benefits:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Balance at the beginning of the year
    $ 638      $ 672      $ 888  
Increase (decrease) related to prior year tax positions, net
      (1 )       (46 )       (106 ) 
Increase related to current year tax positions
      15        42        7  
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations
      (15 )       (31 )       (115 ) 
Other
      14        1        (2 ) 
  
 
 
     
 
 
     
 
 
  
Balance at the end of the year
    $ 651      $ 638      $ 672  
  
 
 
     
 
 
     
 
 
  
v3.24.0.1
Equity (Tables)
 12 Months Ended
Dec. 31, 2023
Summary of Stock Option Activity
A summary of the status of the options granted by Teva as of December 31, 2023, 2022 and 2021, and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercisable in respect thereof).
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
  
Balance outstanding at beginning of year
      24,119     $ 36.83        29,015     $ 36.96        35,234     $ 37.27  
Changes during the year:
               
Forfeited
      (885 )      34.65        (2,378 )      33.77        (3,644 )      36.09  
Expired
      (531 )      37.57        (2,518 )      41.26        (2,575 )      42.40  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      22,703       36.89        24,119       36.83        29,015       36.96  
  
 
 
       
 
 
       
 
 
    
Balance exercisable at end of year
      22,703       36.89        24,119       36.83        26,989       38.30  
  
 
 
       
 
 
       
 
 
    
No options
were
granted during 2023, 2022 and 2021.
Schedule of Ordinary Shares Issued Upon Vested Options
The following table summarizes information as of December 31, 2023 regarding the number of ordinary shares issuable upon vested options:
 
Number of ordinary shares issuable upon exercise of vested options
  
Range of exercise prices
   
Balance at end of
period (in thousands)
     
Weighted average
exercise price
     
Weighted average
remaining life
  
    
Number of shares
     
$
     
Years
  
Lower than $15.01
      592        11.40        3.84  
$15.01 - $25.00
      7,374        18.95        4.14  
$25.01 - $35.00
      5,470        34.66        3.17  
$35.01 - $45.00
      61        37.97        2.78  
$45.01 - $55.00
      5,707        51.26        1.36  
$55.01 - $65.00
      3,500        59.04        1.34  
  
 
 
        
Total
      22,703        36.89        2.76  
  
 
 
        
Schedule of the Number of RSUs Issued and Outstanding
The following table summarizes information about the number of RSUs and PSUs granted and outstanding:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
  
Balance outstanding at beginning of year
      32,302     $ 9.11        24,412     $ 11.58        20,720     $ 13.81  
Granted
      16,608       9.77        18,755       7.42        12,748       10.42  
Vested
      (10,195 )      10.28        (7,571 )      13.02        (6,818 )      15.60  
Forfeited
      (3,052 )      9.81        (3,293 )      9.81        (2,238 )      12.18  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      35,664       9.07        32,302       9.11        24,412       11.58  
  
 
 
       
 
 
       
 
 
    
Summary of Company Expenses Compensation Costs Based on Grant Date Fair Value
The Company expenses compensation costs are based on the grant-date fair value. For the years ended December 31, 2023, 2022 and 2021, the Company recorded stock-based compensation costs as follows:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Employee stock options
    $ —       $ 2      $ 16  
RSUs and PSUs
      121        122        103  
  
 
 
     
 
 
     
 
 
  
Total stock-based compensation expense
      121        124        119  
Tax effect on stock-based compensation expense
      11        9        12  
  
 
 
     
 
 
     
 
 
  
Net effect
    $ 110      $ 115      $ 107  
  
 
 
     
 
 
     
 
 
  
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)
The components of accumulated other comprehensive loss attributable to Teva are presented in the table below:
 
    
Net Unrealized Gains/(Losses)
    
Benefit Plans
        
    
Foreign
currency
translation
adjustments
    
Derivative
financial
instruments
    
Actuarial
gains/(losses)
and prior
service
(costs)/
credits
    
Total
  
    
(U.S. $ in millions)
  
Balance as of January 1, 2021
    $ (1,919 )      (363 )      (117 )      (2,399 ) 
Other comprehensive income/(loss) before reclassifications
      (386 )      —        18       (368 ) 
Amounts reclassified to the statements of income
      —        39       18       57  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) before tax
      (386 )      39       36       (311 ) 
Corresponding income tax
      31       —        (4 )      27  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) after tax*
      (355 )      39       32       (284 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2021
      (2,274 )      (324 )      (85 )      (2,683 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income/(loss) before reclassifications
      (223 )      —        40       (183 ) 
Amounts reclassified to the statements of income
      —        29       27       56  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) before tax
      (223 )      29       67       (127 ) 
Corresponding income tax
      (17 )      —        (10 )      (27 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) after tax*
      (240 )      29       57       (154 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2022
      (2,514 )      (295 )      (28 )      (2,838 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income/(loss) before reclassifications
      167       (1 )      (17 )      149  
Amounts reclassified to the statements of income
      —        30       (4 )      26  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) before tax
      167       29       (21 )      175  
Corresponding income tax
      (37 )      —        3       (34 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income/(loss) after tax*
      130       29       (18 )      141  
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2023
    $ (2,384 )    $ (266 )    $ (46 )    $ (2,697 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
 
*
Amounts do not include foreign currency translation adjustments attributable to
non-controlling
interests of $50 million loss in 2023, $116 million loss in 2022 and $107 million loss in 2021.
v3.24.0.1
Other assets impairments, restructuring and other items (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule of Other Assets Impairments, Restructuring and Other Items
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Impairment
of long-lived tangible assets
(1)
    $ 28      $ 47      $ 160  
Contingent consideration (see note 20)
(2)
      548        261        7  
Restructuring
      111        146        133  
Other
      30        57        41  
  
 
 
     
 
 
     
 
 
  
Total
    $ 718      $ 512      $ 341  
  
 
 
     
 
 
     
 
 
  
 
(1)
Including impairments related to exit and disposal activities.
(2)
The contingent consideration presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
Summary of Restructuring Plan Including Costs Related to Exit and Disposal
The following table provides the components of restructuring costs:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Restructuring
         
Employee termination
    $ 52      $ 117      $ 117  
Other
      59        29        16  
  
 
 
     
 
 
     
 
 
  
Total
    $ 111      $ 146      $ 133  
  
 
 
     
 
 
     
 
 
  
Summary of Restructuring Accruals
The following table provides the components of and changes in the Company’s restructuring accruals:
 
    
Employee
termination costs
     
Other
     
Total
  
    
(U.S. $ in millions )
  
Balance as of January 1, 2021
    $ (115 )     $ (7 )     $ (122 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (117 )       (16 )       (133 ) 
Utilization and other*
      101        16        117  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2021
    $ (131 )     $ (7 )     $ (138 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (117 )       (29 )       (146 ) 
Utilization and other*
      136        29        165  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2022
    $ (112 )     $ (7 )     $ (119 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (52 )       (59 )       (111 ) 
Utilization and other*
      90        59        149  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2023
    $ (75 )     $ (7 )     $ (82 ) 
  
 
 
     
 
 
     
 
 
  
 
*
Includes adjustments for foreign currency translation.
v3.24.0.1
Other income (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule of Other Income
    
Year ended
December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Gain on divestitures, net of divestitures related costs (1)
    $ 3      $ 46      $ 51  
Section 8 and similar payments
      5        13        19  
Gain (loss) on sale of assets (2)
      25        18        7  
Other, net (3)
      16        31        22  
  
 
 
     
 
 
     
 
 
  
Total other income
    $ 49      $ 107      $ 98  
  
 
 
     
 
 
     
 
 
  
 
(1)
In 2022 mainly related to the divestment of several activities in North America and International Markets. In 2021, mainly due to capital gains related to the sale of certain OTC assets.
(2)
In 2023 mainly related to the divestment of assets in International Markets.
(3)
In 2022 mainly the result of settlement proceeds related to the International Markets segment.
v3.24.0.1
Financial expenses, net (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule of Financial Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December, 31
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Interest expenses and other bank charges
    $ 1,029      $ 930      $ 891  
(Income) loss from investments (1)
      (68 )       (10 )       90  
Foreign exchange (gains) losses, net
      30        (16 )       7  
Other, net (2)
      66        61        71  
    
 
 
     
 
 
     
 
 
  
Total finance expense, net
    $ 1,057      $ 966      $ 1,058  
    
 
 
     
 
 
     
 
 
  
 
(1)
Loss from investments in 2021 comprised mainly of revaluation gains and loss of Teva’s investment in American Well Corporation (“American Well”).
(2)
Amortization of issuance costs and terminated derivative instruments.
v3.24.0.1
Earnings (Loss) per Share (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule of Earnings per Share
The net income (loss) attributable to Teva and the weighted average number of ordinary shares used in the computation of basic and diluted earnings (loss) per share for the years ended December 31, 2023, 2022 and 2021 are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Year ended December, 31
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions, except share data)
  
Net income (loss) used for the computation of basic and diluted earnings (loss) per share*
    $ (559 )     $ (2,446 )     $ 417  
    
 
 
     
 
 
     
 
 
  
Weighted average number of shares used in the computation of basic earnings (loss) per share
      1,119        1,110        1,102  
    
 
 
     
 
 
     
 
 
  
Weighted average number of shares used in the computation of diluted earnings (loss) per share
      1,119        1,110        1,107  
    
 
 
     
 
 
     
 
 
  
 
*
Net income (loss) presented in the table above for the year ended December 31, 2022 has been revised as discussed in note 1b.
v3.24.0.1
Segments (Tables)
 12 Months Ended
Dec. 31, 2023
Summary of Segment Profit
    
Year ended December 31,
  
    
2023
  
    
North America
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 8,124      $ 4,837      $ 1,958  
Gross profit
      4,421        2,726        1,050  
R&D expenses
      625        220        83  
S&M expenses
      1,005        767        420  
G&A expenses
      403        263        118  
Other income
      (8 )       (2 )       (35 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,396      $ 1,478      $ 464  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2022
  
    
North America
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,452      $ 4,525      $ 1,903  
Gross profit
      3,926        2,700        1,033  
R&D expenses
      532        213        72  
S&M expenses
      941        748        405  
G&A expenses
      474        246        119  
Other income
      (15 )       (3 )       (43 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 1,993      $ 1,496      $ 479  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2021
  
    
North America
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,809      $ 4,886      $ 2,032  
Gross profit
      4,226        2,823        1,118  
R&D expenses
      618        244        68  
S&M expenses
      988        846        417  
G&A expenses
      427        244        109  
Other income
      (31 )       (5 )       (5 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,224      $ 1,494      $ 529  
  
 
 
     
 
 
     
 
 
  
 
    
Year ended December 31,
  
    
2023
    
2022
    
2021
  
    
(U.S. $ in millions)
  
North America profit
    $ 2,396     $ 1,993     $ 2,224  
Europe profit
      1,478       1,496       1,494  
International Markets profit
      464       479       529  
  
 
 
    
 
 
    
 
 
  
Total reportable segments profit
      4,338       3,968       4,246  
Profit of other activities
      24       172       154  
  
 
 
    
 
 
    
 
 
  
Total segments profit
      4,361       4,139       4,401  
Amounts not allocated to segments:
         
Amortization
      616       732       802  
Other asset impairments, restructuring and other items
(1)
      718       512       341  
Goodwill impairment
      700       2,045       —   
Intangible assets impairments
      350       355       424  
Legal settlements and loss contingencies
      1,043       2,082       717  
Other unallocated amounts
      502       610       402  
  
 
 
    
 
 
    
 
 
  
Consolidated operating income (loss)
(1)
      433       (2,197 )      1,716  
  
 
 
    
 
 
    
 
 
  
Financial expenses, net
      1,057       966       1,058  
  
 
 
    
 
 
    
 
 
  
Consolidated income (loss) before income taxes
(1)
    $ (624 )    $ (3,163 )    $ 658  
  
 
 
    
 
 
    
 
 
  
 
(1)
The data presented for 2022 have been revised to reflect a revision in relation to a contingent consideration liability and related expenses in the consolidated financial statements. See note 1b.
Schedule of Net Sales by Product Line
The following tables present revenues by major products and activities for each segment for the year ended December 31, 2023, 2022 and 2021:
North America segment:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Generic products
    $ 3,475      $ 3,549      $ 3,769  
AJOVY
      230        218        176  
AUSTEDO
      1,225        963        802  
BENDEKA and TREANDA
      241        316        385  
COPAXONE
      320        387        577  
Anda
      1,577        1,471        1,323  
Other*
      1,056        549        777  
  
 
 
     
 
 
     
 
 
  
Total
    $ 8,124      $ 7,452      $ 7,809  
  
 
 
     
 
 
     
 
 
  
 
*
Other revenues were mainly comprised of a $
500 
million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
 
Europe segment:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Generic products
    $ 3,664      $ 3,466      $ 3,569  
AJOVY
      160        124        87  
COPAXONE
      231        268        391  
Respiratory products
      265        273        356  
Other*
      516        393        483  
  
 
 
     
 
 
     
 
 
  
Total
    $ 4,837      $ 4,525      $ 4,886  
  
 
 
     
 
 
     
 
 
  
 
*
Other revenues in 2023 were mainly related to the sale of certain product rights.
International Markets segment:
 
    
Year ended December 31,
  
    
2023
     
2022
     
2021
  
    
(U.S. $ in millions)
  
Generic products
    $ 1,594      $ 1,586      $ 1,649  
AJOVY
      44        35        50  
COPAXONE
      39        36        37  
Other
      281        246        295  
  
 
 
     
 
 
     
 
 
  
Total
    $ 1,958      $ 1,903      $ 2,032  
  
 
 
     
 
 
     
 
 
  
Schedule of Sales Percentage by Therapeutic Category
The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2023, 2022 and 2021.
 
    
Percentage of Third Party Net Sales
  
    
2023
    
2022
    
2021
  
McKesson Corporation
      9 %      10 %      11 % 
AmerisourceBergen Corporation
      9 %      10 %      11 % 
Schedule of Property, Plant and Equipment by Geographic Location
    
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
  
Israel
    $ 1,312      $ 1,401  
Germany
      1,318        1,143  
United States
      596        625  
Croatia
      447        445  
Czech republic
      309        318  
Hungary
      279        294  
Ireland
      266        268  
Other
      1,222        1,245  
  
 
 
     
 
 
  
Total property, plant and equipment
    $ 5,750      $ 5,739  
  
 
 
     
 
 
  
v3.24.0.1
Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2023
Summary of Financial Items Carried at Fair Value
Financial items carried at fair value as of December 31, 2023 and 2022 are classified in the tables below in one of the three categories described in note 1g:
 
    
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  
Liabilities derivatives
:
               —   
Options and forward contracts
      —         (39 )       —         (39 ) 
Bifurcated embedded derivatives
      —         —       §        —   
Contingent consideration*
      —         —         (517 )       (517 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,235      $ 7      $ (477 )     $ 2,765  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
December 31, 2022
  
    
Level 1
     
Level 2
     
Level 3
     
Total
  
    
(U.S. $ in millions)
  
Cash and cash equivalents:
                                    
Money markets
    $ 1,222        —         —       $ 1,222  
Cash, deposits and other
      1,579        —         —         1,579  
Investment in securities:
                                    
Equity securities
      9        —         —         9  
Other
      5        —         1        6  
Restricted cash
      33        —         —         33  
Derivatives:
                                    
Asset derivatives:
                                    
Options and forward contracts
      —         29        —         29  
Liability derivatives:
                                    
Options and forward contracts
               (101 )                (101 ) 
Bifurcated embedded derivatives
      —         —       §          —   
Contingent consideration*
      —         —         (251 )       (251 ) 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 2,848      $ (73 )     $ (250 )     $ 2,525  
    
 
 
     
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
*
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long-term liabilities. The financial data presented in the tables above as of December 31, 2022 have been revised as discussed in note 1b.
Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs
The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs.
 
 
 
 
 
 
 
 
 
 
    
December 31,
2023
     
December 31,
2022
  
    
(U.S. $ in millions)
  
Fair value at the beginning of the period
    $ (250 )     $ (175 ) 
Investment in convertible bond **
      40        —   
Bifurcated embedded derivatives
      §        §  
Additional contingent consideration resulting from Novetide acquisition*
      —         (11 ) 
Adjustments to provisions for contingent consideration:
                  
Allergan transaction***
      (422 )       (240 ) 
Eagle transaction
      (132 )       (21 ) 
Novetide transaction
      2        —   
Settlement of contingent consideration:
                  
Allergan transaction
      207        109  
Eagle transaction
      76        88  
Novetide transaction
      2        —   
    
 
 
     
 
 
  
Fair value at the end of the period
    $ (477 )     $ (250 ) 
    
 
 
     
 
 
  
 
§
Represents an amount less than $
0.5
 million.
*
In January 2022, Teva acquired 100% ownership of Novetide Ltd. (“Novetide”), which was previously accounted for as “investment in associated companies.” This transaction was accounted for as a business combination. Total consideration for the transaction included cash and certain contingent royalty payments through 2034. As part of the transaction, Teva recognized a gain under “Share in (profits) losses of associated companies, net,” reflecting the difference between the book value of its investment in Novetide and its fair value as of the date Teva completed its acquisition.
**
On September 29, 2023, Teva invested $40 million in subordinated convertible bonds, which were issued by Alvotech, pursuant to a convertible bond instrument dated December 20, 2022. (see note 2).
***
The financial data presented in the tables above with respect to adjustments to provisions for contingent consideration related to Allergan in 2022 have been revised as discussed in note 1b.
Summary of Financial Instrument Measured on a Basis Other Than Fair Value
Financial instruments measured on a basis other than fair value consist of senior notes, sustainability-linked senior notes and convertible senior debentures (see note 9), and are presented in the below table in terms of fair value:
 
    
Estimated fair value*
  
    
December 31,
  
    
2023
     
2022
  
    
(U.S. $ in millions)
  
Senior notes and sustainability-linked senior notes included under senior notes and loans
    $ 17,214      $ 16,694  
Senior notes and convertible senior debentures included under short-term debt
      1,651        2,075  
  
 
 
     
 
 
  
Total
    $ 18,865      $ 18,769  
  
 
 
     
 
 
  
 
*
The fair value was estimated based on quoted market prices.
v3.24.0.1
Long-term Employee-related Obligations (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule of Long Term Employee Related Obligation
    
December 31,
  
    
 2023 
     
 2022 
  
    
(U.S. $ in millions)
  
Accrued severance obligations
    $ 74      $ 74  
Defined benefit plans
      73        58  
  
 
 
     
 
 
  
Total
    $ 148      $ 132  
  
 
 
     
 
 
  
v3.24.0.1
Quarterly Financial Data (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2023
Summary of Company's Revised Unaudited Quarterly Financial Information The following tables, which present unaudited quarterly financial data for 2023 and 2022, reflect such revision:
 
 
  
Three months ended
 
 
  
December 31,
2023
 
  
September 30,
2023
 
  
June 30,
2023
 
 
March 31,
2023
 
 
  
U.S $ in millions (except per share amounts)
 
Net revenues
  
$
4,457
 
  
 
3,850
 
  
 
3,878
 
 
 
3,661
 
Gross profit
  
 
2,416
 
  
 
1,851
 
  
 
1,796
 
 
 
1,582
 
Net income (loss)*
  
 
465
 
  
 
78
 
  
 
(905
) 
 
 
(253
) 
Net income (loss) attributable to Teva*
  
 
461
 
  
 
70
 
  
 
(871
) 
 
 
(220
) 
Earnings (loss) per share attributable to ordinary shareholders:
  
  
  
 
Basic*
  
$
0.41
 
  
 
0.06
 
  
 
(0.78
) 
 
 
(0.20
) 
Diluted*
  
$
0.41
 
  
 
0.06
 
  
 
(0.78
) 
 
 
(0.20
) 
 
 
  
Three months ended
 
 
  
December 31,
2022
 
 
September 30,
2022
 
  
June 30,
2022
 
 
March 31,
2022
 
 
  
U.S $ in millions (except per share amounts)
 
Net revenues
  
$
3,884
 
 
 
3,595
 
  
 
3,786
 
 
 
3,661
 
Gross profit
  
 
1,770
 
 
 
1,669
 
  
 
1,794
 
 
 
1,740
 
Net income (loss)*
  
 
(1,333
) 
 
 
63
 
  
 
(278
) 
 
 
(952
) 
Net income (loss) attributable to Teva*
  
 
(1,301
) 
 
 
61
 
  
 
(251
) 
 
 
(955
) 
Earnings (loss) per share attributable to ordinary shareholders:
  
 
  
 
Basic*
  
$
(1.17
) 
 
 
0.05
 
  
 
(0.23
) 
 
 
(0.86
) 
Diluted*
  
$
(1.17
) 
 
 
0.05
 
  
 
(0.23
) 
 
 
(0.86
) 
 
*
The data presented for the above quarterly periods (except for the three months ended March 31, 2022 and the three months ended December 31, 2023) have been revised to reflect a revision of the line items in the consolidated financial statements. See tables below and note 1b.
Summary of Restatement of Certain Line Items in the Income Statement
The tables below present the impact of the revision on the line items within the Company’s unaudited quarterly financial data for 2023 and 2022:
Consolidated Statements of Income (loss)
 
 
 
Three months ended
 
 
 
September 30, 2023
 
 
June 30, 2023
 
 
March 31, 2023
 
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
U.S $ in millions (except per share amounts)
 
Other asset impairments, restructuring and other items
 
$
46
 
 
 
11
 
 
 
57
 
 
$
100
 
 
 
8
 
 
 
108
 
 
$
96
 
 
 
15
 
 
 
110
 
Operating income (loss)
 
 
355
 
 
 
(11
) 
 
 
344
 
 
 
(646
) 
 
 
(8
) 
 
 
(654
) 
 
 
2
 
 
 
(15
) 
 
 
(13
) 
Income (loss) before income taxes
 
 
75
 
 
 
(11
) 
 
 
64
 
 
 
(914
) 
 
 
(8
) 
 
 
(923
) 
 
 
(258
) 
 
 
(15
) 
 
 
(272
) 
Income taxes (benefit)
 
 
(12
) 
 
 
§
 
 
 
(12
) 
 
 
(16
) 
 
 
§
 
 
 
(16
) 
 
 
(19
) 
 
 
§
 
 
 
(19
) 
Net income (loss)
 
 
88
 
 
 
(11
) 
 
 
78
 
 
 
(898
) 
 
 
(8
) 
 
 
(905
) 
 
 
(238
) 
 
 
(15
) 
 
 
(253
) 
Net income (loss) attributable to Teva
 
 
80
 
 
 
(11
) 
 
 
70
 
 
 
(863
) 
 
 
(8
) 
 
 
(871
) 
 
 
(205
) 
 
 
(15
) 
 
 
(220
) 
Earnings per share attributable to ordinary shareholders:
 
 
 
 
 
 
 
 
 
Basic
 
$
0.07
 
 
 
(0.01
) 
 
 
0.06
 
 
$
(0.77
) 
 
 
(0.01
) 
 
 
(0.78
) 
 
$
(0.18
) 
 
 
(0.02
) 
 
 
(0.20
) 
Diluted
 
$
0.07
 
 
 
(0.01
) 
 
 
0.06
 
 
$
(0.77
) 
 
 
(0.01
) 
 
 
(0.78
) 
 
$
(0.18
) 
 
 
(0.02
) 
 
 
(0.20
) 

§ Represents an amount less than $0.5 million.
 
 
 
Three months ended
 
 
 
December 31, 2022
 
 
September 30, 2022
 
 
June 30, 2022
 
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
U.S $ in millions (except per share amounts)
 
Other asset impairments, restructuring and other items
 
$
132
 
 
 
85
 
 
 
217
 
 
$
36
 
 
 
(5
) 
 
 
31
 
 
$
118
 
 
 
18
 
 
 
137
 
Operating income (loss)
 
 
(855
) 
 
 
(85
) 
 
 
(940
) 
 
 
419
 
 
 
5
 
 
 
424
 
 
 
(949
) 
 
 
(18
) 
 
 
(967
) 
Income (loss) before income taxes
 
 
(1,100
) 
 
 
(85
) 
 
 
(1,185
) 
 
 
166
 
 
 
5
 
 
 
171
 
 
 
(1,160
) 
 
 
(18
) 
 
 
(1,178
) 
Income taxes (benefit)
 
 
154
 
 
 
(5
) 
 
 
149
 
 
 
107
 
 
 
§
 
 
 
107
 
 
 
(900
) 
 
 
§
 
 
 
(900
) 
Net income (loss)
 
 
(1,254
) 
 
 
(80
) 
 
 
(1,333
) 
 
 
58
 
 
 
5
 
 
 
63
 
 
 
(259
) 
 
 
(18
) 
 
 
(278
) 
Net income (loss) attributable to Teva
 
 
(1,221
) 
 
 
(80
) 
 
 
(1,301
) 
 
 
56
 
 
 
5
 
 
 
61
 
 
 
(232
) 
 
 
(18
) 
 
 
(251
) 
Basic
 
$
(1.10
) 
 
 
(0.07
) 
 
 
(1.17
) 
 
$
0.05
 
 
 
— 
 
 
 
0.05
 
 
$
(0.21
) 
 
 
(0.02
) 
 
 
(0.23
) 
Diluted
 
$
(1.10
) 
 
 
(0.07
) 
 
 
(1.17
) 
 
$
0.05
 
 
 
— 
 
 
 
0.05
 
 
$
(0.21
) 
 
 
(0.02
) 
 
 
(0.23
) 
 
§ Represents an amount less than $0.5 million.
Summary of Restatement of Certain Line Items in the Balance Sheets
Consolidated Balance Sheets
 
 
 
September 30, 2023
 
 
June 30, 2023
 
 
March 31, 2023
 
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
U.S $ in millions (except per share amounts)
 
Deferred income taxes
 
$
1,748
 
 
 
7
 
 
 
1,755
 
 
$
1,578
 
 
 
5
 
 
 
1,583
 
 
$
1,572
 
 
 
5
 
 
 
1,577
 
Total assets
 
 
42,088
 
 
 
7
 
 
 
42,095
 
 
 
43,095
 
 
 
5
 
 
 
43,100
 
 
 
43,456
 
 
 
5
 
 
 
43,461
 
Other taxes and long-term liabilities
 
 
3,818
 
 
 
132
 
 
 
3,950
 
 
 
3,973
 
 
 
121
 
 
 
4,094
 
 
 
3,869
 
 
 
113
 
 
 
3,982
 
Total long-term liabilities
 
 
23,182
 
 
 
132
 
 
 
23,314
 
 
 
23,543
 
 
 
121
 
 
 
23,664
 
 
 
24,433
 
 
 
113
 
 
 
24,546
 
Total liabilities
 
 
34,576
 
 
 
132
 
 
 
34,708
 
 
 
35,387
 
 
 
121
 
 
 
35,508
 
 
 
34,844
 
 
 
113
 
 
 
34,957
 
Teva shareholders’ equity:
 
 
 
 
 
 
 
 
 
Accumulated deficit
 
 
(13,870
) 
 
 
(125
) 
 
 
(13,995
) 
 
 
(13,950
) 
 
 
(116
) 
 
 
(14,066
) 
 
 
(13,086
) 
 
 
(108
) 
 
 
(13,194
) 
Total equity
 
 
7,512
 
 
 
(125
) 
 
 
7,387
 
 
 
7,708
 
 
 
(116
) 
 
 
7,592
 
 
 
8,612
 
 
 
(108
) 
 
 
8,504
 
Total liabilities and equity
 
$
42,088
 
 
 
7
 
 
 
42,095
 
 
$
43,095
 
 
 
5
 
 
 
43,100
 
 
$
43,456
 
 
 
5
 
 
 
43,461
 
 
 
 
December 31, 2022
 
 
September 30, 2022
 
 
June 30, 2022
 
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
As
previously
reported
 
 
Adjustment
 
 
As
revised
 
 
 
U.S $ in millions (except per share amounts)
 
Deferred income taxes
 
$
1,453
 
 
 
5
 
 
 
1,458
 
 
$
1,546
 
 
 
§
 
 
 
1,546
 
 
$
1,595
 
 
 
§
 
 
 
1,595
 
Total assets
 
 
44,006
 
 
 
5
 
 
 
44,011
 
 
 
44,252
 
 
 
§
 
 
 
44,252
 
 
 
45,932
 
 
 
§
 
 
 
45,932
 
Other taxes and long-term liabilities
 
 
3,847
 
 
 
98
 
 
 
3,945
 
 
 
3,846
 
 
 
13
 
 
 
3,859
 
 
 
3,842
 
 
 
18
 
 
 
3,860
 
Total long-term liabilities
 
 
23,846
 
 
 
98
 
 
 
23,944
 
 
 
23,200
 
 
 
13
 
 
 
23,213
 
 
 
25,107
 
 
 
18
 
 
 
25,125
 
Total liabilities
 
 
35,315
 
 
 
98
 
 
 
35,413
 
 
 
34,734
 
 
 
13
 
 
 
34,747
 
 
 
36,103
 
 
 
18
 
 
 
36,121
 
Accumulated deficit
 
 
(12,882
) 
 
 
(93
) 
 
 
(12,975
) 
 
 
(11,660
) 
 
 
(13
) 
 
 
(11,673
) 
 
 
(11,716
) 
 
 
(18
) 
 
 
(11,734
) 
Total equity
 
 
8,691
 
 
 
(93
) 
 
 
8,598
 
 
 
9,519
 
 
 
(13
) 
 
 
9,506
 
 
 
9,828
 
 
 
(18
) 
 
 
9,810
 
Total liabilities and equity
 
$
44,006
 
 
 
5
 
 
 
44,011
 
 
$
44,252
 
 
 
— 
 
 
 
44,252
 
 
$
45,932
 
 
 
— 
 
 
 
45,932
 
 
§ Represents an amount less than $0.5 million.
v3.24.0.1
Significant Accounting Policies - Additional information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Significant Accounting Policies [Line Items]      
Percentage of consolidated sales in North America 51.00%    
Shipping and handling costs, which are included in selling and marketing expenses $ 124 $ 118 $ 111
Advertising expense $ 162 168 $ 246
Operating lease description Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally, 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset.    
Business combination contingent consideration $ 517 251 [1]  
Restatement adjustment [Member]      
Significant Accounting Policies [Line Items]      
Contingent consideration related expenses 34 $ 98  
Business combination contingent consideration $ 132    
Building [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 40 years    
Other Machinery and Equipment [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 20 years    
Minimum [Member]      
Significant Accounting Policies [Line Items]      
Operating Lease Remaining Lease Term 1 year    
Minimum [Member] | Other Capitalized Property Plant and Equipment [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 5 years    
Maximum [Member]      
Significant Accounting Policies [Line Items]      
Operating Lease Remaining Lease Term 76 years    
Maximum [Member] | Other Capitalized Property Plant and Equipment [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 10 years    
[1] Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long-term liabilities. The financial data presented in the tables above as of December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
Significant Accounting Policies - Schedule Of Impact Of Restatement On Certain Line Items And Balance Sheet (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]                    
Other asset impairments, restructuring and other items $ 57 $ 108 $ 110 $ 217 $ 31 $ 137 $ 718 [1] $ 512 [1] $ 341 [1]  
Operating income (loss) 344 (654) (13) (940) 424 (967) 433 [1] (2,197) [1] 1,716 [1]  
Income (loss) before income taxes 64 (923) (272) (1,185) 171 (1,178) (624) [1],[2] (3,163) [1],[2] 658 [1],[2]  
Income taxes (benefit) (12) (16) (19) 149 107 (900) (7) [2] (643) [2] 211 [2]  
Net income (loss) 78 (905) (253) (1,333) 63 (278) (615) (2,499) 456  
Net income (loss) attributable to Teva $ 70 $ (871) $ (220) $ (1,301) $ 61 $ (251) $ (559) $ (2,446) $ 417  
Earnings (loss) per share attributable to ordinary shareholders:                    
Basic $ 0.06 $ (0.78) $ (0.2) $ (1.17) $ 0.05 $ (0.23) $ (0.5) $ (2.2) $ 0.38  
Diluted $ 0.06 $ (0.78) $ (0.2) $ (1.17) $ 0.05 $ (0.23) $ (0.5) $ (2.2) $ 0.38  
Deferred income taxes $ 1,755 $ 1,583 $ 1,577 $ 1,458 $ 1,546 $ 1,595 $ 1,812 $ 1,458    
Total assets 42,095 43,100 43,461 44,011 44,252 45,932 43,479 44,011    
Other taxes and long-term liabilities 3,950 4,094 3,982 3,945 3,859 3,860 4,019 3,945    
Total long-term liabilities 23,314 23,664 24,546 23,944 23,213 25,125 23,106 23,944    
Total liabilities 34,708 35,508 34,957 35,413 34,747 36,121 35,353 35,413    
Teva shareholders' equity:                    
Accumulated deficit (13,995) (14,066) (13,194) (12,975) (11,673) (11,734) (13,534) (12,975)    
Total equity 7,387 7,592 8,504 8,598 9,506 9,810 8,126 8,598 $ 11,244 $ 11,061
Total liabilities and equity 42,095 43,100 43,461 44,011 44,252 45,932 $ 43,479 44,011    
As previously reported [Member]                    
Error Corrections and Prior Period Adjustments Restatement [Line Items]                    
Other asset impairments, restructuring and other items 46 100 96 132 36 118   414    
Operating income (loss) 355 (646) 2 (855) 419 (949)   (2,099)    
Income (loss) before income taxes 75 (914) (258) (1,100) 166 (1,160)   (3,065)    
Income taxes (benefit) (12) (16) (19) 154 107 (900)   (638)    
Net income (loss) 88 (898) (238) (1,254) 58 (259)   (2,406)    
Net income (loss) attributable to Teva $ 80 $ (863) $ (205) $ (1,221) $ 56 $ (232)   $ (2,353)    
Earnings (loss) per share attributable to ordinary shareholders:                    
Basic $ 0.07 $ (0.77) $ (0.18) $ (1.1) $ 0.05 $ (0.21)   $ (2.12)    
Diluted $ 0.07 $ (0.77) $ (0.18) $ (1.1) $ 0.05 $ (0.21)   $ (2.12)    
Deferred income taxes $ 1,748 $ 1,578 $ 1,572 $ 1,453 $ 1,546 $ 1,595   $ 1,453    
Total assets 42,088 43,095 43,456 44,006 44,252 45,932   44,006    
Other taxes and long-term liabilities 3,818 3,973 3,869 3,847 3,846 3,842   3,847    
Total long-term liabilities 23,182 23,543 24,433 23,846 23,200 25,107   23,846    
Total liabilities 34,576 35,387 34,844 35,315 34,734 36,103   35,315    
Teva shareholders' equity:                    
Accumulated deficit (13,870) (13,950) (13,086) (12,882) (11,660) (11,716)   (12,882)    
Total equity 7,512 7,708 8,612 8,691 9,519 9,828   8,691    
Total liabilities and equity 42,088 43,095 43,456 44,006 44,252 45,932   44,006    
Adjustment [Member]                    
Error Corrections and Prior Period Adjustments Restatement [Line Items]                    
Other asset impairments, restructuring and other items 11 8 15 85 (5) 18   98    
Operating income (loss) (11) (8) (15) (85) 5 (18)   (98)    
Income (loss) before income taxes (11) (8) (15) (85) 5 (18)   (98)    
Income taxes (benefit)       (5)       (5)    
Net income (loss) (11) (8) (15) (80) 5 (18)   (93)    
Net income (loss) attributable to Teva $ (11) $ (8) $ (15) $ (80) $ 5 $ (18)   $ (93)    
Earnings (loss) per share attributable to ordinary shareholders:                    
Basic $ (0.01) $ (0.01) $ (0.02) $ (0.07) $ 0 $ (0.02)   $ (0.08)    
Diluted $ (0.01) $ (0.01) $ (0.02) $ (0.07) $ 0 $ (0.02)   $ (0.08)    
Deferred income taxes $ 7 $ 5 $ 5 $ 5       $ 5    
Total assets 7 5 5 5       5    
Other taxes and long-term liabilities 132 121 113 98 $ 13 $ 18   98    
Total long-term liabilities 132 121 113 98 13 18   98    
Total liabilities 132 121 113 98 13 18   98    
Teva shareholders' equity:                    
Accumulated deficit (125) (116) (108) (93) (13) (18)   (93)    
Total equity (125) (116) (108) (93) (13) (18)   (93)    
Total liabilities and equity $ 7 $ 5 $ 5 $ 5 $ 0 $ 0   $ 5    
[1] The data presented for 2022 have been revised to reflect a revision in relation to a contingent consideration liability and related expenses in the consolidated financial statements. See note 1b.
[2] The financial data presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
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
May 12, 2017
Oct. 31, 2021
Aug. 31, 2021
Dec. 31, 2016
Dec. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2023
Oct. 03, 2023
Sanofi [Member] | Collaborative Arrangement [Member]                              
Noncash or Part Noncash Acquisitions [Line Items]                              
Upfront payment                           $ 500  
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           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                          
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               $ 35              
Otsuka [Member]                              
Noncash or Part Noncash Acquisitions [Line Items]                              
Upfront payment       $ 50                      
Milestone payment                       $ 35 $ 15    
Takeda [Member]                              
Noncash or Part Noncash Acquisitions [Line Items]                              
Upfront payment             $ 30                
Milestone payment             20     $ 25          
Collaborative agreement milestone payments             $ 519                
Alvotech [Member]                              
Noncash or Part Noncash Acquisitions [Line Items]                              
Collaborative agreement milestone payments                           $ 400  
MedinCell [Member]                              
Noncash or Part Noncash Acquisitions [Line Items]                              
Milestone payment                 $ 3            
Collaborative agreement milestone payments           $ 105                  
MODAG [Member]                              
Noncash or Part Noncash Acquisitions [Line Items]                              
License agreement potential aggregate milestone payments amount         $ 30                    
MODAG [Member] | Research and Development Expense [Member]                              
Noncash or Part Noncash Acquisitions [Line Items]                              
Milestone payment                     $ 10        
v3.24.0.1
Certain Transactions - Business Acquisitions - Summary of Major Classes of Assets and Liabilities Included as Held for Sale (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Business Combinations [Abstract]    
Inventories $ 12 $ 2
Property, plant and equipment, net and others 28 18
Goodwill 30 0
Adjustments of assets held for sale to fair value 0 (10)
Total assets of the disposal group classified as held for sale in the consolidated balance sheet 70 10
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets, recorded under other current liabilities $ (13) $ 0
v3.24.0.1
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenue Recognition [Line Items]      
Allowance for credit losses $ 95 $ 91  
Accounts receivable from securitization 686 636 $ 685
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member]      
Revenue Recognition [Line Items]      
Accounts receivable from securitization 437 436  
Pledged to PNC Bank, National Association in connection with the U.S. securitization program entered into in November 2022 [Member] | Accounts Receivable Securitization Facility [Member] | PNC Bank [Member]      
Revenue Recognition [Line Items]      
Accounts receivable from securitization $ 437 $ 436  
United States [Member]      
Revenue Recognition [Line Items]      
Percentage sales reserves and allowances to U.S. customers 65.00%    
v3.24.0.1
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Total revenue $ 15,846 $ 14,925 $ 15,878
Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 12,979 12,766 13,829
Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 681 [1] 212 160
Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 1,615 1,519 1,390
Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 570 [2] 428 500
International Markets [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 1,958 1,903 2,032
International Markets [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 1,840 1,806 1,889
International Markets [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 24 [1] 19 13
International Markets [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 38 46 65
International Markets [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 56 [2] 33 65
Other activities [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 926 1,045 1,151
Other activities [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 565 671 739
Other activities [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 5 [1] 4 4
Other activities [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 0 0 0
Other activities [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 357 [2] 370 408
North America [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 8,124 7,452 7,809
North America [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 5,944 5,834 6,394
North America [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 601 [1] 139 92
North America [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 1,577 1,471 1,323
North America [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 2 [2] 8 (1)
Europe [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 4,837 4,525 4,886
Europe [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 4,631 4,455 4,807
Europe [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 51 [1] 51 50
Europe [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue   1 1
Europe [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue $ 155 [2] $ 18 $ 27
[1] Revenues from licensing arrangements in North America segment were mainly comprised of $500 million upfront payment received in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
[2] “Other” revenues in Europe segment mainly related to the sale of certain product rights.
v3.24.0.1
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Parenthetical) (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Sanofi [Member] | Collaborative Arrangement [Member]  
Disaggregation of Revenue [Line Items]  
Upfront payment $ 500
v3.24.0.1
Revenue from Contracts with Customers - Schedule of Sales Reserves and Allowances (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Revenue Recognition [Line Items]    
Balance at beginning of period $ 3,817 $ 4,309
Provisions related to sales made in current year period 12,975 13,278
Provisions related to sales made in prior periods (101) (202)
Credits and payments (13,125) (13,513)
Translation differences 30 (55)
Balance at end of period 3,596 3,817
Reserves Included in Accounts Receivable, net [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 67 68
Provisions related to sales made in current year period 354 363
Provisions related to sales made in prior periods 0 0
Credits and payments (360) (364)
Translation differences 0 0
Balance at end of period 61 67
Rebates [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 1,575 1,655
Provisions related to sales made in current year period 4,015 3,823
Provisions related to sales made in prior periods (31) (69)
Credits and payments (3,974) (3,798)
Translation differences 18 (36)
Balance at end of period 1,603 1,575
Medicaid and other governmental allowances [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 663 854
Provisions related to sales made in current year period 654 871
Provisions related to sales made in prior periods (33) (35)
Credits and payments (748) (1,023)
Translation differences 4 (4)
Balance at end of period 540 663
Chargebacks [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 991 1,085
Provisions related to sales made in current year period 7,579 7,819
Provisions related to sales made in prior periods (54) (44)
Credits and payments (7,662) (7,861)
Translation differences 5 (8)
Balance at end of period 859 991
Returns [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 455 535
Provisions related to sales made in current year period 264 317
Provisions related to sales made in prior periods 17 (3)
Credits and payments (304) (390)
Translation differences 4 (4)
Balance at end of period 436 455
Other [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 66 112
Provisions related to sales made in current year period 109 85
Provisions related to sales made in prior periods 0 (51)
Credits and payments (77) (77)
Translation differences (1) (3)
Balance at end of period 97 66
Total reserves included in sales reserves and allowances [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 3,750 4,241
Provisions related to sales made in current year period 12,621 12,915
Provisions related to sales made in prior periods (101) (202)
Credits and payments (12,765) (13,149)
Translation differences 30 (55)
Balance at end of period $ 3,535 $ 3,750
v3.24.0.1
Inventories - Summary of Inventories (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Inventories [Line Items]    
Finished products $ 2,346 $ 1,987
Raw and packaging materials 993 1,059
Products in process 500 555
Materials in transit and payments on account 183 232
Total $ 4,021 $ 3,833
v3.24.0.1
Property, Plant and Equipment - Summary of Property, Plant and Equipment, Net (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Machinery and equipment $ 4,807 $ 5,026
Buildings 2,488 2,463
Computer equipment and other assets 2,419 2,323
Assets under construction and payments on account 1,427 1,199
Land 246 246
Subtotal 11,387 11,257
Less- accumulated depreciation (5,637) (5,518)
Property, Plant and Equipment, Net, Total $ 5,750 $ 5,739
v3.24.0.1
Property, Plant and Equipment - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]      
Depreciation expense for the year $ 537 $ 576 $ 528
Impairment charge during the year on property, plant and equipment 28 47 160
Teva [Member]      
Property, Plant and Equipment [Line Items]      
Impairment charge during the year on property, plant and equipment $ 28 $ 47 $ 160
v3.24.0.1
Identifiable Intangible Assets - Summary of Identifiable Intangible Assets (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment $ 18,930 $ 19,131
Accumulated amortization 13,543 12,861
Net carrying amount 5,387 6,270
Product rights [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment 17,981 18,067
Accumulated amortization 13,274 12,630
Net carrying amount 4,707 5,437
Trade names [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment 583 577
Accumulated amortization 269 231
Net carrying amount 314 346
In-process research and development (IPR&D) [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment 366 487
Accumulated amortization 0 0
Net carrying amount $ 366 $ 487
v3.24.0.1
Identifiable Intangible Assets - Additional Information (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets useful life 9 years    
Amortization of intangible assets $ 616 $ 732 $ 802
2024 503    
2025 460    
2026 462    
2027 451    
2028 398    
Impairment of intangible assets excluding goodwill $ 350 355 424
Inventory write down   4,200  
Change In Tevas Commercial Plans Regarding Certain Program [Member]      
Finite-Lived Intangible Assets [Line Items]      
Inventory write down   $ 108  
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]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill     127
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 $ 90 $ 45  
Identifiable product rights [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill 260 310  
Identifiable product rights [Member] | Regulatory Price And Volume Of Products [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill 148    
Identifiable product rights [Member] | Updated Market Assumptions [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill   256  
Identifiable product rights [Member] | Change In Tevas Commercial Plans Regarding Certain Program [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill   $ 54  
Identifiable product rights [Member] | Lenalidomide Product [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill     267
Actavis [Member] | Identifiable product rights [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill     297
Japan [Member] | Identifiable product rights [Member] | Updated Market Assumptions [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill $ 112    
United States [Member] | Actavis [Member] | Identifiable product rights [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill     $ 30
v3.24.0.1
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Jun. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Goodwill [Line Items]          
Beginning balance [1]     $ 17,633 $ 20,040  
Goodwill impairment $ 0 $ (700) (700) (2,045) $ 0
Goodwill reclassified as assets to held for sale     (30)    
Goodwill acquired       12  
Translation differences     275 (374)  
Ending balance [1] 17,177   17,177 17,633 20,040
North America [Member]          
Goodwill [Line Items]          
Beginning balance [1]     6,450 6,474  
Goodwill impairment     0 0  
Goodwill reclassified as assets to held for sale     0    
Goodwill acquired       0  
Translation differences     9 (24)  
Ending balance [1] 6,459   6,459 6,450 6,474
Europe [Member]          
Goodwill [Line Items]          
Beginning balance [1]     8,302 8,544  
Goodwill impairment     0 0  
Goodwill reclassified as assets to held for sale     0    
Goodwill acquired       0  
Translation differences     164 (242)  
Ending balance [1] 8,466   8,466 8,302 8,544
International Markets [Member]          
Goodwill [Line Items]          
Beginning balance [1]     1,339 2,328  
Goodwill impairment     (700) (979)  
Goodwill reclassified as assets to held for sale     (30)    
Goodwill acquired       0  
Translation differences     66 (10)  
Ending balance [1] 675   675 1,339 2,328
Other [Member] | Medis Reporting Units [Member]          
Goodwill [Line Items]          
Beginning balance [1]     249 277  
Goodwill impairment     0 0  
Goodwill reclassified as assets to held for sale     0    
Goodwill acquired       0  
Translation differences     16 (28)  
Ending balance [1] 265   265 249 277
Other [Member] | Tevas API Reporting Unit [Member]          
Goodwill [Line Items]          
Beginning balance [1]     1,293 2,417  
Goodwill impairment     0 (1,066)  
Goodwill reclassified as assets to held for sale     0    
Goodwill acquired       12  
Translation differences     20 (70)  
Ending balance [1] $ 1,313   $ 1,313 $ 1,293 $ 2,417
[1] Cumulative goodwill impairment as of December 31, 2023, December 31, 2022 and December 31, 2021 was approximately $28.3 billion, $27.6 billion and $25.6 billion respectively.
v3.24.0.1
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - USD ($)
$ in Billions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Goodwill [Line Items]      
Accumulated goodwill impairment $ 28.3 $ 27.6 $ 25.6
v3.24.0.1
Goodwill - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Jun. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jun. 30, 2022
Goodwill [Line Items]            
Goodwill impairment $ 0 $ 700 $ 700 $ 2,045 $ 0  
Tevas North America Europe Medis and Tevas API [Member]            
Goodwill [Line Items]            
Reporting unit percentage of fair value in excess of carrying amount   10.00%        
Tevas International Market [Member]            
Goodwill [Line Items]            
Reporting unit percentage of fair value in excess of carrying amount 6.00% 3.00% 6.00%      
Tevas International Market [Member] | Measurement Input Terminal Growth Rate [Member]            
Goodwill [Line Items]            
Reporting unit percentage of fair value in excess of carrying amount 1.79% 1.56% 1.79%      
Tevas International Market [Member] | Measurement Input, Discount Rate [Member]            
Goodwill [Line Items]            
Reporting unit percentage of fair value in excess of carrying amount 12.23% 9.96% 12.23%      
Tevas Europe Reporting Unit [Member]            
Goodwill [Line Items]            
Reporting unit percentage of fair value in excess of carrying amount 4.00% 1.00% 4.00%     9.00%
Maximum [Member] | Tevas International Market [Member] | Measurement Input Terminal Growth Rate [Member]            
Goodwill [Line Items]            
Reporting unit percentage of fair value in excess of carrying amount 1.54% 1.31% 1.54%      
Maximum [Member] | Tevas International Market [Member] | Measurement Input, Discount Rate [Member]            
Goodwill [Line Items]            
Reporting unit percentage of fair value in excess of carrying amount 12.48% 10.21% 12.48%      
Minimum [Member] | Tevas International Market [Member] | Measurement Input Terminal Growth Rate [Member]            
Goodwill [Line Items]            
Reporting unit percentage of fair value in excess of carrying amount 0.25% 0.25% 0.25%      
Minimum [Member] | Tevas International Market [Member] | Measurement Input, Discount Rate [Member]            
Goodwill [Line Items]            
Reporting unit percentage of fair value in excess of carrying amount 0.25% 0.25% 0.25%      
v3.24.0.1
Leases - Components of Lease Expense (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Operating lease cost:      
Fixed payments and variable payments that depend on an index or rate $ 132 $ 142 $ 135
Variable lease payments not included in the lease liability 5 4 4
Short-term lease cost 3 2 2
Total operating lease cost $ 139 $ 148 $ 141
v3.24.0.1
Leases - Supplemental cash flow information related to leases (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases $ 141 $ 140 $ 143
Right-of-use assets obtained in exchange for lease obligations (non-cash):      
Operating leases $ 121 $ 81 $ 81
v3.24.0.1
Leases - Supplemental Balance Sheet Information Related To Leases (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Operating leases:    
Operating lease ROU assets $ 397 $ 419
Other current liabilities 97 93
Operating lease liabilities 320 349
Total operating lease liabilities $ 417 $ 442
Weighted average remaining lease term Operating leases 6 years 1 month 6 days 6 years 9 months 18 days
Weighted average discount rate Operating leases 6.00% 5.60%
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Liabilities, Current Liabilities, Current
v3.24.0.1
Leases - Maturities of lease liabilities (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
2024 $ 116  
2025 98  
2026 80  
2027 62  
2028 and thereafter 140  
Total operating lease payments 496  
Less: imputed interest 79  
Present value of lease liabilities $ 417 $ 442
v3.24.0.1
Leases - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Finance Lease, Right-of-Use Asset $ 32 $ 29
Finance Lease, Liability $ 23 $ 22
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property, plant and equipment, net Property, plant and equipment, net
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other taxes and long-term liabilities Other taxes and long-term liabilities
v3.24.0.1
Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Current maturities of long-term liabilities $ 1,649 $ 2,086
Total short term debt $ 1,672 2,109
Convertible debentures [Member]    
Debt Instrument [Line Items]    
Weighted average interest rate 0.25%  
Maturity 2026  
Short-term borrowings $ 23 $ 23
v3.24.0.1
Debt Obligations - Schedule of Senior Notes and Loans (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Jul. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]      
Total senior notes $ 19,889   $ 21,266
Less current maturities (1,649)   (2,086)
Less debt issuance costs [1] (80)   (78)
Total senior notes and loans 18,161   19,103
Other Debentures [Member]      
Debt Instrument [Line Items]      
Total senior notes and loans $ 1   1
Senior notes EUR 1,500 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 1.13%    
Maturity 2024    
Total senior notes $ 693   670
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] $ 1,656   1,606
Senior notes EUR 1,300 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [4] 1.25%    
Maturity [4] 2023    
Total senior notes [4] $ 0   633
Sustainability-linked senior notes EUR 1,100 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [3],[5] 3.75%    
Maturity [3],[5] 2027    
Total senior notes [3],[5] $ 1,215   1,177
Senior notes EUR 1,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [6] 6.00%    
Maturity [6] 2025    
Total senior notes [6] $ 453   1,070
Senior notes EUR 900 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [6] 4.50%    
Maturity [6] 2025    
Total senior notes [6] $ 547   963
Sustainability-linked senior notes EUR 800 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [3],[7] 7.38%    
Maturity [3],[7] 2029    
Total senior notes [3],[7] $ 884   0
Senior notes EUR 750 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 1.63%    
Maturity 2028    
Total senior notes $ 826   800
Senior notes EUR 700 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 1.88%    
Maturity 2027    
Total senior notes $ 771   748
Sustainability-linked senior notes EUR 500 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [3],[8] 7.88%    
Maturity [3],[8] 2031    
Total senior notes [3],[8] $ 552   0
Senior notes USD 3,500 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [6] 3.15%    
Maturity [6] 2026    
Total senior notes [6] $ 3,374   3,496
Senior notes USD 3,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 2.80% [6],[9] 2.80%  
Maturity [6] 2023    
Total senior notes [6] $ 0   1,453
Senior notes USD 2,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 4.10%    
Maturity 2046    
Total senior notes $ 1,986   1,986
Senior notes USD 1,250 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [6] 6.00%    
Maturity [6] 2024    
Total senior notes [6] $ 956   1,250
Senior notes USD 1,250 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 6.75%    
Maturity 2028    
Total senior notes $ 1,250   1,250
Senior notes USD 1,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [6] 7.13%    
Maturity [6] 2025    
Total senior notes [6] $ 427   1,000
Sustainability-linked senior notes USD 1,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [3],[5] 4.75%    
Maturity [3],[5] 2027    
Total senior notes [3],[5] $ 1,000   1,000
Sustainability-linked senior notes USD 1,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [2],[3] 5.13%    
Maturity [2],[3] 2029    
Total senior notes [2],[3] $ 1,000   1,000
Senior notes USD 789 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 6.15%    
Maturity 2036    
Total senior notes $ 783   783
Sustainability-linked senior notes USD 600 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [3],[10] 7.88%    
Maturity [3],[10] 2029    
Total senior notes [3],[10] $ 600   0
Sustainability-linked senior notes USD 500 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [3],[11] 8.13%    
Maturity [3],[11] 2031    
Total senior notes [3],[11] $ 500   0
Senior notes CHF 350 Million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 1.00%    
Maturity 2025    
Total senior notes $ 416   $ 382
[1] Debt issuance costs as of December 31, 2023 include $26 million in connection with the issuance of the sustainability-linked senior notes in March 2023, partially offset by $6 million acceleration of issuance costs related to the cash tender offer.
[2] If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.125%-0.375% per annum, from and including May 9, 2026.
[3] Interest rate adjustments and a potential one-time premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 10c.
[4] In March 2023, Teva repaid $646 million of its 1.25% senior notes at maturity.
[5] If Teva fails to achieve certain sustainability performance targets, a one-time premium payment of 0.15%-0.45% out of the principal amount will be paid at maturity or upon earlier redemption, if such redemption is on or after May 9, 2026.
[6] In March 2023, Teva consummated a cash tender offer and extinguished $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.
[7] 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.
[8] 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.
[9] In July 2023, Teva repaid $1,000 million of its 2.8% senior notes at maturity.
[10] 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.
[11] 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.
v3.24.0.1
Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail)
€ in Millions, SFr in Millions, $ in Millions
 1 Months Ended 12 Months Ended
Jul. 31, 2023
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2023
EUR (€)
Dec. 31, 2023
USD ($)
Dec. 31, 2023
CHF (SFr)
Senior Notes [Member]          
Debt Instrument [Line Items]          
Senior notes repaid amount       $ 646  
Senior notes maturity percentage     1.25% 1.25% 1.25%
Senior notes EUR 1,500 million [Member]          
Debt Instrument [Line Items]          
Debt instrument face amount | €     € 1,500    
Debt Instrument Maturity Year   2024      
Debt instrument, interest rate, effective percentage     1.13% 1.13% 1.13%
Senior notes EUR 1,300 million [Member]          
Debt Instrument [Line Items]          
Debt instrument face amount | €     € 1,300    
Debt Instrument Maturity Year [1]   2023      
Debt instrument, interest rate, effective percentage [1]     1.25% 1.25% 1.25%
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% 1.63% 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% 1.88% 1.88%
Senior notes EUR 1,000 million [Member]          
Debt Instrument [Line Items]          
Debt instrument face amount | €     € 1,000    
Debt Instrument Maturity Year [2]   2025      
Debt instrument, interest rate, effective percentage [2]     6.00% 6.00% 6.00%
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 [2]   2025      
Debt instrument, interest rate, effective percentage [2]     4.50% 4.50% 4.50%
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 [2]   2025      
Debt instrument, interest rate, effective percentage [2]     7.13% 7.13% 7.13%
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 [2]   2026      
Debt instrument, interest rate, effective percentage [2]     3.15% 3.15% 3.15%
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 Maturity Year [2]   2023      
Debt instrument, interest rate, effective percentage 2.80%   2.80% [2],[3] 2.80% [2],[3] 2.80% [2],[3]
Debt instrument principal amount of debt extinguished   $ 454      
Senior notes USD 3,000 million [Member] | Senior Notes [Member]          
Debt Instrument [Line Items]          
Repayments of Senior Debt $ 1,000        
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% 4.10% 4.10%
Senior notes USD 1,250 million [Member]          
Debt Instrument [Line Items]          
Debt instrument face amount       $ 1,250  
Debt Instrument Maturity Year [2]   2024      
Debt instrument, interest rate, effective percentage [2]     6.00% 6.00% 6.00%
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% 6.75% 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% 6.15% 6.15%
Senior notes CHF 350 Million [Member]          
Debt Instrument [Line Items]          
Debt instrument face amount | SFr         SFr 350
Debt Instrument Maturity Year   2025      
Debt instrument, interest rate, effective percentage     1.00% 1.00% 1.00%
Sustainability-linked senior notes EUR 1,500 million [Member]          
Debt Instrument [Line Items]          
Debt instrument face amount | €     € 1,500    
Debt Instrument Maturity Year [4],[5]   2030      
Debt instrument, interest rate, effective percentage [4],[5]     4.38% 4.38% 4.38%
Sustainability-linked senior notes EUR 1,100 million [Member]          
Debt Instrument [Line Items]          
Debt instrument face amount | €     € 1,100    
Debt Instrument Maturity Year [5],[6]   2027      
Debt instrument, interest rate, effective percentage [5],[6]     3.75% 3.75% 3.75%
Sustainability-linked senior notes USD 1,000 million [Member]          
Debt Instrument [Line Items]          
Debt instrument face amount       $ 1,000  
Debt Instrument Maturity Year [5],[6]   2027      
Debt instrument, interest rate, effective percentage [5],[6]     4.75% 4.75% 4.75%
Sustainiability Senior Linked Notes Two Thousand Twenty Nine And Two Thousand And Thirty One One And Two [Member]          
Debt Instrument [Line Items]          
Accumulated Amortization, Debt Issuance Costs       $ 6  
Debt issuance costs gross       26  
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% 8.13% 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 month of maturity   2029-09      
Long term debt bearing fixed interest rate percentage     7.88% 7.88% 7.88%
Sustainability-linked senior notes USD 600 million [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% 7.88% 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% 7.38% 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 [5],[7]   2031      
Debt instrument, interest rate, effective percentage [5],[7]     8.13% 8.13% 8.13%
Sustainability-linked senior notes USD 600 million [Member]          
Debt Instrument [Line Items]          
Debt instrument face amount       $ 600  
Debt Instrument Maturity Year [5],[8]   2029      
Debt instrument, interest rate, effective percentage [5],[8]     7.88% 7.88% 7.88%
Sustainability-linked senior notes USD 1,000 million [Member]          
Debt Instrument [Line Items]          
Debt instrument face amount       $ 1,000  
Debt Instrument Maturity Year [5],[9]   2029      
Debt instrument, interest rate, effective percentage [5],[9]     7.38% 7.38% 7.38%
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 repaid $646 million of its 1.25% senior notes at maturity.
[2] 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.
[3] In July 2023, Teva repaid $1,000 million of its 2.8% senior notes at maturity.
[4] 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.
[5] Interest rate adjustments and a potential one-time premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 10c.
[6] 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.
[7] In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $500 million bearing 8.13% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026.
[8] In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $600 million bearing 7.88% annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026.
[9] In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 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.
v3.24.0.1
Debt Obligation - Schedule Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance Cost (Detail)
$ in Millions
Dec. 31, 2023
USD ($)
Long Term Debt Maturity [Line Items]  
2025 $ 1,843
2026 3,397 [1]
2027 2,986
2028 2,076
2029 and thereafter 7,961
Total $ 18,263
[1] Including $23 million convertible notes. See note 9a.
v3.24.0.1
Debt Obligation - Schedule Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance Cost (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Convertible Debt [Member]    
Short-term Debt [Line Items]    
Principal amount currently outstanding on the debt instruments $ 23 $ 23
v3.24.0.1
Debt Obligations - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2023
Jul. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]                  
Long term debt currency portion USD         60.00%   60.00%    
Long term debt currency portion EUR         38.00%   38.00%    
Long term debt currency portion CHF         2.00%   2.00%    
Convertible Debt [Member]                  
Debt Instrument [Line Items]                  
Principal amount currently outstanding on the debt instruments         $ 23   $ 23   $ 23
Weighted average interest rate         0.25%   0.25%    
Revolving Credit Facility [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Covenant Description             The RCF can be used for general corporate purposes, including repaying existing debt. In July 2023, a total amount of $700 million was withdrawn under the RCF, of which $200 million was repaid in September 2023 and the remaining amount of $500 million was repaid in the fourth quarter of 2023. As of December 31, 2023, and as of the date of this Annual Report on Form 10-K, no amounts were outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date the financial statements are issued.    
Long Term Debt Payable Under Revolving Credit Facility         $ 0   $ 0    
Line of Credit Facility, Maximum Borrowing Capacity         1,800   $ 1,800 $ 700  
Debt Instrument, Maturity Date             Apr. 30, 2026    
Repayments of Lines of Credit         $ 500 $ 200      
Line of credit extension period             one-year    
Revolving Credit Facility [Member] | Amended Revolving Credit Facility [Member]                  
Debt Instrument [Line Items]                  
Leverage Ratio         4.00        
Revolving Credit Facility [Member] | Amended Revolving Credit Facility [Member] | Subsequent Event [Member]                  
Debt Instrument [Line Items]                  
Leverage Ratio 3.50 4.00 4.00 4.00          
v3.24.0.1
Derivative instruments and hedging activities - Summary of Notional Amounts for Hedged Items (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Designated as Hedging Instrument [Member] | Cross Currency Swap Cash Flow Hedge [Member]    
Disclosure In Tabular Form Of Notional Amount Of Derivatives Designated As Hedging Instruments [Line Items]    
Cross-currency swap-cash flow hedge [1] $ 169 $ 0
[1] On March 31, 2023, Teva entered into a cross-currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen.
v3.24.0.1
Derivative Instruments and Hedging Activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
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 [1] 8 0
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member]    
Derivative [Line Items]    
Asset derivatives 38 29
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member]    
Derivative [Line Items]    
Liability derivatives (39) (101)
Not Designated as Hedging Instrument [Member] | Cross Currency Swap Cash Flow Hedge [Member] | Other Non-current Assets [Member]    
Derivative [Line Items]    
Asset derivatives [1] $ 0 $ 0
[1] On March 31, 2023, Teva entered into a cross-currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen.
v3.24.0.1
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
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other Comprehensive Income [Member]      
Derivative [Line Items]      
Other comprehensive income (loss) $ 91 $ (270) $ (391)
Financial expenses [Member]      
Derivative [Line Items]      
Financial expenses, net 1,057 966 1,058
Cross Currency Swap Cash Flow Hedge [Member] | Other Comprehensive Income [Member]      
Derivative [Line Items]      
Other comprehensive income (loss) [1] 1 0 0
Cross Currency Swap Cash Flow Hedge [Member] | Financial expenses [Member]      
Derivative [Line Items]      
Financial expenses, net [1] $ (11) $ 0 $ 0
[1] On March 31, 2023, Teva entered into a cross-currency interest rate swap agreement, designated as cash flow hedge for accounting purposes with respect to an intercompany loan due October 2026, denominated in Japanese yen.
v3.24.0.1
Derivative Instruments and Hedging Activities - Summary of Pre-tax (Gains) Losses From Derivatives Not Designated in as Hedging Instruments (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Net Revenues [Member] | Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax $ (15,846) $ (14,925) $ (15,878)
Net Revenues [Member] | Not Designated as Hedging Instrument, Trading [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [1] 0 0 0
Net Revenues [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [2] 2 (11) (31)
Financial expenses [Member] | Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax 1,057 966 1,058
Financial expenses [Member] | Not Designated as Hedging Instrument, Trading [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [1] (54) (12) (45)
Financial expenses [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [2] $ 0 $ 0 $ 0
[1] Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net.
[2] Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, Swiss franc, Japanese yen, British pound, Russian ruble, Canadian dollar, Polish zloty and some other currencies to protect its projected operating results for 2023 and 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 2023, the negative impact from these derivatives recognized under revenues was $2 million. In 2022, the positive impact from these derivatives recognized under revenues was $11 million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. Cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
v3.24.0.1
Derivative Instruments and Hedging Activities - Summary of Sold Receivables Outstanding Balance Net of DPP Asset under Outstanding Securitization Program (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Derivative [Line Items]    
Sold receivables at the beginning of the year $ 636 $ 685
Proceeds from sale of receivables 4,391 4,653
Cash collections (remitted to the owner of the receivables) (4,365) (4,665)
Effect of currency exchange rate changes 24 (37)
Sold receivables at the end of the year $ 686 $ 636
v3.24.0.1
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Nov. 07, 2023
Nov. 07, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jun. 30, 2023
Jul. 11, 2022
Derivative [Line Items]              
Revenues other than USD     47.00%        
Derivative, negative impact     $ 493 $ 2      
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     $ 31 30 $ 37    
Deferred purchase asset     247 270      
Sold receivables     $ 686 636 $ 685    
Derivative, Gain on Derivative       11      
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]     Revenue from Contract with Customer, Excluding Assessed Tax        
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration]     Liabilities        
Supplier finance program obligation     $ 108 34      
Proceeds from sale of accounts receivable classified as operating activities one     861 820      
March 2024 to November 2025 [Member]              
Derivative [Line Items]              
Derivative notional amount decrease $ 875            
March 2024 [Member]              
Derivative [Line Items]              
Derivative notional amount decrease 125            
PNC Bank [Member] | March 2024 [Member]              
Derivative [Line Items]              
Derivative notional Amount Increase 250            
Accounts Receivable Securitization Facility [Member] | November 2025 [Member]              
Derivative [Line Items]              
Derivative notional Amount Increase           $ 750  
Accounts Receivable Securitization Facility [Member] | Mizuho Bank [Member] | November 2025 [Member]              
Derivative [Line Items]              
Derivative notional amount           250  
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member]              
Derivative [Line Items]              
Sold receivables     437 436      
Derivative notional amount             $ 1,000
Derivatives term of contract   3 years          
Transfer of financial assets sold and derecognized     $ 864 $ 820      
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | March 2024 [Member]              
Derivative [Line Items]              
Derivative notional Amount Increase $ 1,000            
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | November 2025 [Member]              
Derivative [Line Items]              
Derivative notional amount decrease   $ 500          
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | November 2023 [Member]              
Derivative [Line Items]              
Derivative notional amount           $ 1,000  
v3.24.0.1
Legal Settlements and Loss Contingencies - Additional Information (Detail)
€ in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2023
EUR (€)
Loss Contingencies [Line Items]        
Legal settlements and loss contingencies, expense $ 1,043 $ 2,082 $ 717  
Accrued amount for legal settlements and loss contingencies $ 4,771 $ 4,186   € 60.5
Settlement On Account Of Product Liability [Member] | United States [Member]        
Loss Contingencies [Line Items]        
Restructuring expense and income Legal settlements and loss contingencies in 2021 were mainly related to an update of the estimated settlement provision recorded in connection with the remaining opioid cases, the provision for the carvedilol patent litigation as well as a liability which was substantially offset by insurance receivable related to the Ontario Teachers Securities Litigation discussed in note 12b.      
v3.24.0.1
Commitments and Contingencies - Commitments - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Commitment And Contingencies [Line Items]      
Royalty expense $ 543 $ 560 $ 522
Maximum [Member]      
Commitment And Contingencies [Line Items]      
Milestone contingent expense $ 20    
v3.24.0.1
Commitments and Contingencies - Contingencies - Additional Information (Detail)
€ in Millions
 1 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 ($)
Aug. 31, 2012
USD ($)
Dec. 31, 2010
USD ($)
Sep. 30, 2021
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2014
USD ($)
Aug. 21, 2022
USD ($)
Dec. 31, 2023
EUR (€)
Aug. 21, 2023
USD ($)
Dec. 31, 2022
USD ($)
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                   $ 700,000,000               $ 350,000,000    
Annual sales of Effexor                           $ 2,600,000,000              
Annual sales of Lamictal                                       $ 2,300,000,000 $ 950,000,000
Annual sales of Niaspan           $ 1,100,000,000 $ 416,000,000                            
Annual sales of Actos               $ 2,800,000,000 $ 3,700,000,000                        
Annual sales of Acto plus               $ 430,000,000 $ 500,000,000                        
Litigation settlement amount         $ 4,250,000,000                                
Annual Sales Of Sensipar                       $ 1,400,000,000                  
Litigation settlement amount awarded distribution period         13 years                                
Annual sales of Copaxone                         $ 373,000,000                
Generic modafinil, and imposed fines amount 4,771,000,000                   4,771,000,000       € 60.5   $ 4,186,000,000        
Loss Contingency Accrual, Provision 235,500,000                                        
Annual sales of the time of settlement of viread                     582,000,000                    
Annual sales of the time of settlement of Truvada                     2,400,000,000                    
Annual sales of the time of settlement of Atripla                     2,900,000,000                    
Annual sales of the time of New launch of viread                     728,000,000                    
Annual sales of the time of New launch of Truvada                     2,100,000,000                    
Annual sales of the time of New launch of Atripla                     444,000,000                    
Annual sales of Colcrys                     187,000,000                    
Litigation Settlement Amount DistributableIn Kind 1,200,000,000                   1,200,000,000                    
Accrual for Environmental Loss Contingencies 300,000                   $ 300,000                    
Loss Contingencies On Environmental Laws Penalty                                   $ 1,400,000      
Percentage of the litigating subdivisions have chosen to participate in Teva's nationwide settlement                     99.00%                    
Annual Sales Of Revlimid 3,500,000,000                                        
Annual Sales At The Time Of Nuvigil Entered Into First Settlement Of With AN ANDA Filer 300,000,000                                        
Annual Sales Of EpiPen 600,000,000                                        
Loss Contingency Claims Dismissed Value Paid To Each State Proportional To Its Share Of National Population $ 1,000,000                                        
Percentage Of Share Of The National Population 1.00%                                        
Percentgae of amount in cash settlement 20.00%                   20.00%       20.00%            
Litigation Settlement Amount Distributable in cash $ 240,000,000                   $ 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 368,000,000                   368,000,000                    
Loss contingency accrual, product liability, undiscounted, to be paid, year four 368,000,000                   368,000,000                    
Loss contingency accrual, product liability, undiscounted, to be paid, year three 364,000,000                   364,000,000                    
Loss contingency accrual, product liability, undiscounted, to be paid, year two 418,000,000                   418,000,000                    
Loss contingency accrual, product liability, undiscounted, to be paid, year one $ 424,000,000                   $ 424,000,000                    
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    
v3.24.0.1
Income Taxes - Schedule of Income Before Income Taxes (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]                  
Parent Company and its Israeli subsidiaries             $ (767) $ (119) $ 126
Non-Israeli subsidiaries             143 (3,044) 532
Income (loss) before income taxes $ 64 $ (923) $ (272) $ (1,185) $ 171 $ (1,178) $ (624) [1],[2] $ (3,163) [1],[2] $ 658 [1],[2]
[1] The data presented for 2022 have been revised to reflect a revision in relation to a contingent consideration liability and related expenses in the consolidated financial statements. See note 1b.
[2] The financial data presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
Income Taxes - Schedule of the Provision for Income Taxes (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]                  
In Israel             $ (402) $ 33 $ 124
Outside Israel             395 (676) 87
Effective consolidated income taxes $ (12) $ (16) $ (19) $ 149 $ 107 $ (900) (7) [1] (643) [1] 211 [1]
Current             333 430 270
Deferred             (340) (1,073) (59)
Effective consolidated income taxes $ (12) $ (16) $ (19) $ 149 $ 107 $ (900) $ (7) [1] $ (643) [1] $ 211 [1]
[1] The financial data presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
Income Taxes - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]                    
Income (loss) before income taxes $ 64 $ (923) $ (272) $ (1,185) $ 171 $ (1,178) $ (624) [1],[2] $ (3,163) [1],[2] $ 658 [1],[2]  
Statutory tax rate in Israel             23.00% 23.00% 23.00% 23.00%
Theoretical provision for income taxes [2]             $ (144) $ (727) $ 151  
Increase (decrease) in the provision for income taxes due to:                    
The Parent Company and its Israeli subsidiaries - Tax benefits arising from net deferred taxes, resulting from intellectual property related integration plans, including carryforward losses             (272)      
Tax benefits arising from reduced tax rates under benefit programs             14 15 (12)  
Mainly nondeductible items and prior year tax               35 20  
Non-Israeli subsidiaries, including impairments [3]             372 941 117  
Worthless stock deduction [4]               (909)    
Increase (decrease) in other uncertain tax positions - net             23 2 (65)  
Effective consolidated income taxes $ (12) $ (16) $ (19) $ 149 $ 107 $ (900) $ (7) [2] $ (643) [2] $ 211 [2]  
[1] The data presented for 2022 have been revised to reflect a revision in relation to a contingent consideration liability and related expenses in the consolidated financial statements. See note 1b.
[2] The financial data presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
[3] In 2023 and 2022, income before income taxes includes goodwill impairment in non-Israeli subsidiaries that did not have a corresponding tax effect.
[4] In 2022, one of Teva’s U.S. subsidiaries was determined to be insolvent for tax purposes (i.e., its liabilities exceeded the fair market value of its assets), mainly in light of its accumulated operational losses. Consequently, Teva recognized on its 2022 tax return, a worthless stock deduction of approximately $4.2 billion, with related tax benefit of approximately $909 million.
v3.24.0.1
Income Taxes - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Parenthetical) (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]  
Obsolete stock written off $ 4,200
Effective income tax reconciliation amount inventory written off $ 909 [1]
[1] In 2022, one of Teva’s U.S. subsidiaries was determined to be insolvent for tax purposes (i.e., its liabilities exceeded the fair market value of its assets), mainly in light of its accumulated operational losses. Consequently, Teva recognized on its 2022 tax return, a worthless stock deduction of approximately $4.2 billion, with related tax benefit of approximately $909 million.
v3.24.0.1
Income Taxes - Schedule of Defered Income Taxes (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Deferred Tax Assets Liabilities Net [Line Items]    
Inventory related $ 76 $ 125
Sales reserves and allowances 81 89
Provision for legal settlements 702 703
Intangible assets [1] (118) (567)
Carryforward losses and deductions and credits [2] 2,463 2,850
Property, plant and equipment (225) (238)
Deferred interest 799 800
Provisions for employee related obligations 80 82
Other [3] 357 138
Long-term deferred tax assets (liabilities)-gross 4,215 3,982
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized (3,009) (3,072)
Deferred tax assets liabilities net $ 1,206 $ 910
[1] The increase in deferred tax is mainly due to intellectual property related integration.
[2] The amounts are shown following a reduction for unrecognized tax benefits of $1 million and $10 million as of December 31, 2023 and 2022, respectively.
[3] The amounts shown are primarily comprised of Capitalization of R&D Expenses. Other deferred income taxes presented in the table above as of December 31, 2022, have been revised as discussed in note 1b.
v3.24.0.1
Income Taxes - Schedule of Defered Income Taxes (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Deferred Tax Assets Liabilities Net [Line Items]    
Unrecognized tax benefits $ 2 $ 1
v3.24.0.1
Income Taxes - Additional Information (Detail)
₪ in Millions, $ in Millions
 1 Months Ended 12 Months Ended
Jan. 01, 2017
Oct. 31, 2021
USD ($)
Jul. 31, 2020
USD ($)
Dec. 31, 2023
USD ($)
Employee
Dec. 31, 2023
ILS (₪)
Employee
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
Dec. 31, 2016
Income Tax [Line Items]                  
Balance of accrued potential penalties and interest in unrecognized tax benefits       $ 224   $ 212 $ 210    
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense       $ 12   $ 2 $ 37    
Statutory tax rate in Israel       23.00% 23.00% 23.00% 23.00% 23.00%  
Annual revenue       $ 15,846   $ 14,925 $ 15,878    
Expected impairment of income tax benefit     $ 126            
With Effect From January 2025 [Member] | Organization For Economic Cooperation And Development [Member] | Pillar Two Rules [Member]                  
Income Tax [Line Items]                  
Global minimum tax rate percentage       15.00% 15.00%        
Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Withholding tax percentage on dividends                 8.00%
Israel Tax Authority [Member] | Tax Year 2008 To 2011 [Member]                  
Income Tax [Line Items]                  
Income Tax Examination, Estimate of Possible Loss   $ 350              
Tax Carryforwards And Deductions Expiration Period One [Member]                  
Income Tax [Line Items]                  
Tax effect of unspecified carryforward losses and deductions       $ 50          
Tax Carryforwards And Deductions Expiration Period Two [Member]                  
Income Tax [Line Items]                  
Tax effect of unspecified carryforward losses and deductions       924          
Tax Carryforwards And Deductions No Expiration [Member]                  
Income Tax [Line Items]                  
Tax effect of unspecified carryforward losses and deductions       291          
Tax Carryforwards And Deductions Indefinite [Member]                  
Income Tax [Line Items]                  
Tax effect of unspecified carryforward losses and deductions       1,196          
Amendment 69 to Investment Law [Member]                  
Income Tax [Line Items]                  
Payment of corporate tax       577          
Exempt Income       9,400          
Amendment 68 to Investment Law [Member] | Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel                 16.00%
Amendment 68 to Investment Law [Member] | Israel Tax Authority [Member] | Development Zonea [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel                 9.00%
Amendment 73 to Investment Law [Member] | Israel Tax Authority [Member] | Development Zonea [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel 7.50%                
Preferred Enterprise [Member] | Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Withholding tax percentage on dividends                 20.00%
Preferred Enterprise [Member] | Israel Tax Authority [Member] | Development Zonea [Member]                  
Income Tax [Line Items]                  
Withholding tax percentage on dividends                 5.00%
Preferred Technological Enterprises [Member]                  
Income Tax [Line Items]                  
Venture capital investment       $ 2          
Average growth rate in sales or workforce       25.00% 25.00%        
Average growth preceding period in sales or workforce       3 years 3 years        
Preferred Technological Enterprises [Member] | Research and Development Arrangement [Member]                  
Income Tax [Line Items]                  
Minimum percentage of investment income       7.00% 7.00%        
Minimum investment income       $ 22 ₪ 75        
Minimum percentage of workforce       20.00% 20.00%        
Minimum number of employees employed | Employee       200 200        
Preferred Technological Enterprises [Member] | Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel       12.00% 12.00%        
Preferred Technological Enterprises [Member] | Israel Tax Authority [Member] | Development Zonea [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel       7.50% 7.50%        
Special Preferred Technological Enterprise [Member]                  
Income Tax [Line Items]                  
Annual revenue       $ 2,900 ₪ 10,000        
Special Preferred Technological Enterprise [Member] | Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel       6.00% 6.00%        
Withholding tax percentage on dividends       4.00% 4.00%        
Minimum [Member] | Tax Carryforwards And Deductions Expiration Period One [Member]                  
Income Tax [Line Items]                  
Expiration period       Dec. 31, 2024 Dec. 31, 2024        
Minimum [Member] | Tax Carryforwards And Deductions Expiration Period Two [Member]                  
Income Tax [Line Items]                  
Expiration period       Dec. 31, 2026 Dec. 31, 2026        
Minimum [Member] | Tax Carryforwards And Deductions No Expiration [Member]                  
Income Tax [Line Items]                  
Expiration period       Dec. 31, 2034 Dec. 31, 2034        
Maximum [Member] | Tax Carryforwards And Deductions Expiration Period One [Member]                  
Income Tax [Line Items]                  
Expiration period       Dec. 31, 2025 Dec. 31, 2025        
Maximum [Member] | Tax Carryforwards And Deductions Expiration Period Two [Member]                  
Income Tax [Line Items]                  
Expiration period       Dec. 31, 2033 Dec. 31, 2033        
v3.24.0.1
Income Taxes - Schedule of Deferred Tax Assets and Liabilities By Report Caption (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Deferred Tax Assets Liabilities Net [Line Items]    
Long-term assets—deferred income taxes [1] $ 1,812 $ 1,458
Long-term liabilities—deferred income taxes (606) (548)
Deferred tax assets liabilities net $ 1,206 $ 910
[1] Long-term assets—deferred income taxes presented in the tables above as of December 31, 2022, have been revised as discussed in note 1b.
v3.24.0.1
Income Taxes - Schedule of Unrecognized Tax Benefits (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Schedule Of Unrecognized Tax Benefits [Line Items]      
Balance at the beginning of the year $ 638 $ 672 $ 888
Increase (decrease) related to prior year tax positions, net (1) (46) (106)
Increase related to current year tax positions 15 42 7
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations (15) (31) (115)
Other 14 1 (2)
Balance at the end of the year $ 651 $ 638 $ 672
v3.24.0.1
Equity - Additional Information (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Jul. 13, 2017
Apr. 18, 2016
Dec. 31, 2023
Dec. 31, 2022
Jun. 11, 2020
Sep. 03, 2015
Jun. 29, 2010
Class of Stock [Line Items]              
Ordinary shares issuance ADSs     1,200,000 1,200,000      
Share price     $ 10.44        
Number of shares exercisable     22,703        
Number of shares available for future awards     65,800        
Vesting period, description     The vesting period of the outstanding options and RSUs is generally between 1 to 4 years from date of grant. The vesting period of PSUs is generally 3 years from date of grant. The rights of ordinary shares obtained from the exercise of options, RSUs or PSUs are identical to those of other ordinary shares of the Company. The contractual term of these options is primarily for ten years.        
Unrecognized compensation cost before tax related to RSUs/PSUs     $ 192        
Weighted average period     2 years 6 months        
Unrecognized compensation costs related to employee stock options     $ 0        
2010 Long-Term Equity-Based Incentive Plan [Member]              
Class of Stock [Line Items]              
Number of shares exercisable             70,000
2015 Long-Term Equity-Based Incentive Plan [Member]              
Class of Stock [Line Items]              
Number of shares exercisable 142,000 77,000       43,700  
Number of additional shares authorized 65,000 33,300          
2020 Long-Term Equity-Based Incentive Plan [Member]              
Class of Stock [Line Items]              
Number of shares exercisable         68,000    
v3.24.0.1
Equity - Summary of Stock Option Activity (Detail) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance outstanding at begining of year 24,119 29,015 35,234
Forfeited (885) (2,378) (3,644)
Expired (531) (2,518) (2,575)
Balance outstanding at end of year 22,703 24,119 29,015
Balance exercisable at end of year 22,703 24,119 26,989
Balance outstanding at begining of year $ 36.83 $ 36.96 $ 37.27
Forfeited 34.65 33.77 36.09
Expired 37.57 41.26 42.4
Balance outstanding at end of year 36.89 36.83 36.96
Balance exercisable at end of year $ 36.89 $ 36.83 $ 38.3
v3.24.0.1
Equity - Schedule of Ordinary Shares Issued Upon Vested Options (Detail)
shares in Thousands
 12 Months Ended
Dec. 31, 2023
yr
$ / shares
shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 22,703
Weighted average exercise price $ 36.89
Weighted average remaining life Years | yr 2.76
Lower than $15.01 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 592
Weighted average exercise price $ 11.4
Weighted average remaining life Years | yr 3.84
Range of exercise prices, upper limit $ 15.01
$15.01 - $25.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 7,374
Weighted average exercise price $ 18.95
Weighted average remaining life Years | yr 4.14
Range of exercise prices, lower limit $ 15.01
Range of exercise prices, upper limit $ 25
$25.01 - $35.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 5,470
Weighted average exercise price $ 34.66
Weighted average remaining life Years | yr 3.17
Range of exercise prices, lower limit $ 25.01
Range of exercise prices, upper limit $ 35
$35.01 - $45.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 61
Weighted average exercise price $ 37.97
Weighted average remaining life Years | yr 2.78
Range of exercise prices, lower limit $ 35.01
Range of exercise prices, upper limit $ 45
$45.01 - $55.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 5,707
Weighted average exercise price $ 51.26
Weighted average remaining life Years | yr 1.36
Range of exercise prices, lower limit $ 45.01
Range of exercise prices, upper limit $ 55
$55.01 - $65.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 3,500
Weighted average exercise price $ 59.04
Weighted average remaining life Years | yr 1.34
Range of exercise prices, lower limit $ 55.01
Range of exercise prices, upper limit $ 65
v3.24.0.1
Equity - Schedule of Number of RSUs Issued and Outstanding (Detail) - Restricted Stock Units [Member] - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance outstanding at beginning of year 32,302 24,412 20,720
Granted 16,608 18,755 12,748
Vested (10,195) (7,571) (6,818)
Forfeited (3,052) (3,293) (2,238)
Balance outstanding at end of year 35,664 32,302 24,412
Weighted-average grant date fair value per share - RSUs at beginning year $ 9.11 $ 11.58 $ 13.81
Granted 9.77 7.42 10.42
Vested 10.28 13.02 15.6
Forfeited 9.81 9.81 12.18
Weighted-average grant date fair value per share - RSUs at end of year $ 9.07 $ 9.11 $ 11.58
v3.24.0.1
Equity - Summary of Company Expenses Compensation Costs Based on Grant Date Fair Value (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Stock Options Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 0 $ 2 $ 16
Restricted Stock Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 121 122 103
Omnibus Long Term Share Incentive Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 121 124 119
Tax effect on stock-based compensation expense 11 9 12
Net effect $ 110 $ 115 $ 107
v3.24.0.1
Equity - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance $ (2,838)    
Ending Balance (2,697) $ (2,838)  
Foreign Currency Translation Adjustments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (2,514) (2,274) $ (1,919)
Other comprehensive income/(loss) before reclassifications 167 (223) (386)
Net other comprehensive income/(loss) before tax 167 (223) (386)
Corresponding income tax (37) (17) 31
Net other comprehensive income/(loss) after tax [1] 130 (240) (355)
Ending Balance (2,384) (2,514) (2,274)
Derivative Financial Instruments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (295) (324) (363)
Other comprehensive income/(loss) before reclassifications (1)   0
Amounts reclassified to the statements of income 30 29 39
Net other comprehensive income/(loss) before tax 29 29 39
Net other comprehensive income/(loss) after tax [1] 29 29 39
Ending Balance (266) (295) (324)
Benefit Plans [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (28) (85) (117)
Other comprehensive income/(loss) before reclassifications (17) 40 18
Amounts reclassified to the statements of income (4) 27 18
Net other comprehensive income/(loss) before tax (21) 67 36
Corresponding income tax 3 (10) (4)
Net other comprehensive income/(loss) after tax [1] (18) 57 32
Ending Balance (46) (28) (85)
AOCI Attributable to Parent [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (2,838) (2,683) (2,399)
Other comprehensive income/(loss) before reclassifications 149 (183) (368)
Amounts reclassified to the statements of income 26 56 57
Net other comprehensive income/(loss) before tax 175 (127) (311)
Corresponding income tax (34) (27) 27
Net other comprehensive income/(loss) after tax [1] 141 (154) (284)
Ending Balance $ (2,697) $ (2,838) $ (2,683)
[1] Amounts do not include foreign currency translation adjustments attributable to non-controlling interests of $50 million loss in 2023, $116 million loss in 2022 and $107 million loss in 2021.
v3.24.0.1
Equity - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Foreign Currency Translation Adjustments Attributable to Non-controlling Interests [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Foreign currency translation attributable to non-controlling interests $ 50 $ 116 $ 107
v3.24.0.1
Other assets impairments, restructuring and other items - Schedule of Other Assets Impairments, Restructuring and Other Items (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring and Impairment Costs [Line Items]      
Impairments of long-lived tangible assets [1] $ 28 $ 47 $ 160
Contingent consideration (see note 20) [2] 548 261 7
Restructuring 111 146 133
Other 30 57 41
Total $ 718 $ 512 $ 341
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] Other asset impairments, restructuring and other items    
[1] Including impairments related to exit and disposal activities.
[2] The contingent consideration presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
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
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 111 $ 146 $ 133
Employee termination [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 52 117 117
Other [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 59 $ 29 $ 16
v3.24.0.1
Other assets impairments, restructuring and other items - Summary of Restructuring Accruals (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]      
Beginning balance $ (119) $ (138) $ (122)
Provision (111) (146) (133)
Utilization and other [1] 149 165 117
Ending balance (82) (119) (138)
Employee termination costs [Member]      
Restructuring Cost and Reserve [Line Items]      
Beginning balance (112) (131) (115)
Provision (52) (117) (117)
Utilization and other [1] 90 136 101
Ending balance (75) (112) (131)
Other Exit and Disposal [Member]      
Restructuring Cost and Reserve [Line Items]      
Beginning balance (7) (7) (7)
Provision (59) (29) (16)
Utilization and other [1] 59 29 16
Ending balance $ (7) $ (7) $ (7)
[1] Includes adjustments for foreign currency translation.
v3.24.0.1
Other assets impairments, restructuring and other items - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring and Impairment Costs [Line Items]      
Impairments of property, plant and equipment $ 28 $ 47 $ 160
Business combination contingent consideration arrangements change in amount of contingent consideration liability [1] 548 261 7
Restructuring costs $ 111 $ 146 $ 133
[1] The contingent consideration presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
Other Income - Schedule of Other Income (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other Income [Line Items]      
Gain on divestitures, net of divestitures related costs [1] $ 3 $ 46 $ 51
Section 8 and similar payments 5 13 19
Other, net [2] 16 31 22
Gain (loss) on sale of assets [3] 25 18 7
Total other income $ 49 $ 107 $ 98
[1] In 2022 mainly related to the divestment of several activities in North America and International Markets. In 2021, mainly due to capital gains related to the sale of certain OTC assets.
[2] In 2022 mainly the result of settlement proceeds related to the International Markets segment.
[3] In 2023 mainly related to the divestment of assets in International Markets.
v3.24.0.1
Financial expenses, net - Schedule of Financial Expenses (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Expenses [Line Items]      
Interest expenses and other bank charges $ 1,029 $ 930 $ 891
(Income) loss from investments [1] (68) (10) 90
Foreign exchange (gains) losses, net 30 (16) 7
Other, net [2] 66 61 71
Total finance expense, net $ 1,057 $ 966 $ 1,058
[1] Loss from investments in 2021 comprised mainly of revaluation gains and loss of Teva’s investment in American Well Corporation (“American Well”).
[2] Amortization of issuance costs and terminated derivative instruments.
v3.24.0.1
Earnings (Loss) per Share - Schedule of Earnings per Share (Detail) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Net income (loss) used for the computation of basic and diluted earnings (loss) per share [1] $ (559) $ (2,446) $ 417
Weighted average number of shares used in the computation of basic earnings (loss) per share 1,119 1,110 1,102
Weighted average number of shares used in the computation of diluted earnings (loss) per share 1,119 1,110 1,107
[1] Net income (loss) presented in the table above for the year ended December 31, 2022 has been revised as discussed in note 1b.
v3.24.0.1
Earnings (Loss) per Share - Additional Information (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                  
Basic $ 0.06 $ (0.78) $ (0.2) $ (1.17) $ 0.05 $ (0.23) $ (0.5) $ (2.2) $ 0.38
Diluted $ 0.06 $ (0.78) $ (0.2) $ (1.17) $ 0.05 $ (0.23) $ (0.5) $ (2.2) $ 0.38
Weighted average shares with dilutive effect on earnings per share                 5,000,000
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 0
v3.24.0.1
Segments - Summary of Segment Profit (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Amounts Allocated To Segments [Abstract]                    
Consolidated operating income (loss)   $ 344 $ (654) $ (13) $ (940) $ 424 $ (967) $ 433 [1] $ (2,197) [1] $ 1,716 [1]
Amounts Not Allocated To Segments [Abstract]                    
Amortization               616 732 802
Other asset impairments, restructuring and other items   57 108 110 217 31 137 718 [1] 512 [1] 341 [1]
Goodwill impairment $ 0   700         700 2,045 0
Intangible assets impairments               350 355 424
Legal settlements and loss contingencies               1,043 2,082 717
Other Unallocated Amounts               502 610 402
Revenues               15,846 14,925 15,878
Gross profit               7,645 6,973 7,594
R&D expenses               953 838 967
S&M expenses               2,336 2,265 2,429
G&A expenses               1,162 1,180 1,099
Segment profit   344 (654) (13) (940) 424 (967) 433 [1] (2,197) [1] 1,716 [1]
Financial expenses, net               1,057 966 1,058
Consolidated income (loss) before income taxes   $ 64 $ (923) $ (272) $ (1,185) $ 171 $ (1,178) (624) [1],[2] (3,163) [1],[2] 658 [1],[2]
North America [Member]                    
Amounts Allocated To Segments [Abstract]                    
Consolidated operating income (loss)               2,396 1,993 2,224
Amounts Not Allocated To Segments [Abstract]                    
Revenues               8,124 7,452 7,809
Gross profit               4,421 3,926 4,226
R&D expenses               625 532 618
S&M expenses               1,005 941 988
G&A expenses               403 474 427
Other (income) expense               (8) (15) (31)
Segment profit               2,396 1,993 2,224
Europe [Member]                    
Amounts Allocated To Segments [Abstract]                    
Consolidated operating income (loss)               1,478 1,496 1,494
Amounts Not Allocated To Segments [Abstract]                    
Revenues               4,837 4,525 4,886
Gross profit               2,726 2,700 2,823
R&D expenses               220 213 244
S&M expenses               767 748 846
G&A expenses               263 246 244
Other (income) expense               (2) (3) (5)
Segment profit               1,478 1,496 1,494
International Markets [Member]                    
Amounts Allocated To Segments [Abstract]                    
Consolidated operating income (loss)               464 479 529
Amounts Not Allocated To Segments [Abstract]                    
Revenues               1,958 1,903 2,032
Gross profit               1,050 1,033 1,118
R&D expenses               83 72 68
S&M expenses               420 405 417
G&A expenses               118 119 109
Other (income) expense               (35) (43) (5)
Segment profit               464 479 529
Segments and Other Activities [Member]                    
Amounts Allocated To Segments [Abstract]                    
Consolidated operating income (loss)               4,361 4,139 4,401
Amounts Not Allocated To Segments [Abstract]                    
Segment profit               4,361 4,139 4,401
Other Segments [Member]                    
Amounts Allocated To Segments [Abstract]                    
Consolidated operating income (loss)               24 172 154
Amounts Not Allocated To Segments [Abstract]                    
Segment profit               24 172 154
Corporate Segment [Member]                    
Amounts Allocated To Segments [Abstract]                    
Consolidated operating income (loss)               4,338 3,968 4,246
Amounts Not Allocated To Segments [Abstract]                    
Segment profit               $ 4,338 $ 3,968 $ 4,246
[1] The data presented for 2022 have been revised to reflect a revision in relation to a contingent consideration liability and related expenses in the consolidated financial statements. See note 1b.
[2] The financial data presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Product Information [Line Items]      
Revenues $ 15,846 $ 14,925 $ 15,878
North America [Member]      
Product Information [Line Items]      
Revenues 8,124 7,452 7,809
Europe [Member]      
Product Information [Line Items]      
Revenues 4,837 4,525 4,886
International Markets [Member]      
Product Information [Line Items]      
Revenues 1,958 1,903 2,032
Generic products [Member] | North America [Member]      
Product Information [Line Items]      
Revenues 3,475 3,549 3,769
Generic products [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 3,664 3,466 3,569
Generic products [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 1,594 1,586 1,649
AJOVY [Member] | North America [Member]      
Product Information [Line Items]      
Revenues 230 218 176
AJOVY [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 160 124 87
AJOVY [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 44 35 50
AUSTEDO [Member] | North America [Member]      
Product Information [Line Items]      
Revenues 1,225 963 802
BENDEKA and TREANDA [Member] | North America [Member]      
Product Information [Line Items]      
Revenues 241 316 385
COPAXONE [Member] | North America [Member]      
Product Information [Line Items]      
Revenues 320 387 577
COPAXONE [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 231 268 391
COPAXONE [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 39 36 37
Anda [Member] | North America [Member]      
Product Information [Line Items]      
Revenues 1,577 1,471 1,323
Respiratory Product [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 265 273 356
Other [Member] | North America [Member]      
Product Information [Line Items]      
Revenues [1] 1,056 549 777
Other [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues [2] 516 393 483
Other [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues $ 281 $ 246 $ 295
[1] Other revenues were mainly comprised of a $500 million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
[2] Other revenues in 2023 were mainly related to the sale of certain product rights.
v3.24.0.1
Segments - Schedule of Revenues by Major Products and Activities (Parentheticals) (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Collaborative Arrangement [Member] | Sanofi [Member]  
Product Information [Line Items]  
Upfront Payments $ 500
v3.24.0.1
Segments - Schedule of Sales Percentage by Therapeutic Category (Detail)
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
McKesson Corporation [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Third party net sales present 9.00% 10.00% 11.00%
AmerisourceBergen Corporation [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Third party net sales present 9.00% 10.00% 11.00%
v3.24.0.1
Segments - Schedule of Net Sales by Product Line - Schedule of Property, Plant and Equipment by Geographic Location (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net $ 5,750 $ 5,739
Israel [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 1,312 1,401
Germany [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 1,318 1,143
United States [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 596 625
Croatia [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 447 445
Czech republic [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 309 318
Ireland [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 266 268
Hungary [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 279 294
Other [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net $ 1,222 $ 1,245
v3.24.0.1
Segments - Additional Information (Detail) - Segment
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting Information [Line Items]      
Number of reportable segments 3    
Israel [Member] | Sales Revenue, Net [Member] | Revenue from Rights Concentration Risk [Member]      
Segment Reporting Information [Line Items]      
Concentration Risk, Percentage 2.00% 2.00% 2.00%
UNITED STATES | Sales Revenue, Net [Member] | Revenue from Rights Concentration Risk [Member]      
Segment Reporting Information [Line Items]      
Concentration Risk, Percentage 49.00% 47.00% 46.00%
v3.24.0.1
Fair Value Measurement - Summary of Financial Items Carried at Fair Value (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration $ (517) $ (251) [1]
Total $ 2,765 2,525
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 $ 38 29
Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives 8  
Convertible Debt Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 40  
Liabilities Derivatives Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives (39) (101)
Money Markets [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 1,704 1,222
Cash, Deposits and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 1,522 1,579
Equity Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 7 9
Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 1 6
Restricted Cash [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash 1 33
Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 3,235 2,848
Level 1 [Member] | Money Markets [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 1,704 1,222
Level 1 [Member] | Cash, Deposits and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 1,522 1,579
Level 1 [Member] | Equity Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 7 9
Level 1 [Member] | Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 1 5
Level 1 [Member] | Restricted Cash [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash 1 33
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 7 (73)
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives 38 29
Level 2 [Member] | Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives 8  
Level 2 [Member] | Liabilities Derivatives Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives (39) (101)
Level 2 [Member] | Restricted Cash [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash  
Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration (517) (251) [1]
Total (477) (250)
Level 3 [Member] | Convertible Debt Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 40  
Level 3 [Member] | Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities $ 0 1
Level 3 [Member] | Restricted Cash [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash  
[1] Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long-term liabilities. The financial data presented in the tables above as of December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
Fair value measurement - Additional Information (Detail)
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Percentage increase in significant unobservable input percentage business combination contingent consideration 1.00%
Percentage decrease in significant unobservable input percentage business combination contingent consideration 1.00%
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
v3.24.0.1
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value at the beginning of the period $ (250) $ (175)
Fair value at the end of the period (477) (250)
Nove Tide Acquisition [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Redemption of debt securities [1] 0 (11)
Eagle Transaction [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Adjustments to provisions for contingent consideration (132) (21)
Settlement of contingent consideration 76 88
Allergan transaction [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Allergan transaction [2] (422) (240)
Settlement of contingent consideration 207 $ 109
Novetide transaction [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Adjustments to provisions for contingent consideration 2  
Settlement of contingent consideration 2  
Convertible Debt Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in convertible bond [3] $ 40  
[1] In January 2022, Teva acquired 100% ownership of Novetide Ltd. (“Novetide”), which was previously accounted for as “investment in associated companies.” This transaction was accounted for as a business combination. Total consideration for the transaction included cash and certain contingent royalty payments through 2034. As part of the transaction, Teva recognized a gain under “Share in (profits) losses of associated companies, net,” reflecting the difference between the book value of its investment in Novetide and its fair value as of the date Teva completed its acquisition.
[2] The financial data presented in the tables above with respect to adjustments to provisions for contingent consideration related to Allergan in 2022 have been revised as discussed in note 1b.
[3] On September 29, 2023, Teva invested $40 million in subordinated convertible bonds, which were issued by Alvotech, pursuant to a convertible bond instrument dated December 20, 2022. (see note 2).
v3.24.0.1
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Parenthetical) (Detail) - USD ($)
$ in Millions
Sep. 29, 2023
Jan. 01, 2022
Nove tide Acquisition [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business acquisition, Percentage of voting interests acquired   100.00%
Subordinated Convertible Bonds [Member] | Alvotech [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument face amount $ 40  
v3.24.0.1
Fair Value Measurement - Summary of Financial Instrument Measured on a Basis Other Than Fair Value (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total [1] $ 18,865 $ 18,769
Senior Notes And Sustainability Linked Senior Notes [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total [1] 17,214 16,694
Senior Notes and Convertible Senior Debentures Included Under Short-Term Debt [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total [1] $ 1,651 $ 2,075
[1] The fair value was estimated based on quoted market prices.
v3.24.0.1
Long-term Employee-related Obligations - Schedule of Long Term Employee Related Obligation (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Accrued severance obligations $ 74 $ 74
Defined benefit plans 73 58
Total $ 148 $ 132
v3.24.0.1
Long-term Employee-related Obligations - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Long-term investments earmarked for severance pay liabilities in Israel $ 90 $ 79
Expected contributions to pension funds 115  
2024 14  
2025 13  
2026 13  
2027 13  
2028 15  
2029 to 2033 $ 80  
v3.24.0.1
Quarterly Financial Data (Unaudited) - Summary of Company's Revised Unaudited Quarterly Financial Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Quarterly Financial Information [Line Items]                      
Net revenues                 $ 15,846 $ 14,925 $ 15,878
Gross profit                 7,645 6,973 7,594
Net income (loss)   $ 78 $ (905) $ (253) $ (1,333) $ 63 $ (278)   (615) (2,499) 456
Net income (loss) attributable to Teva   $ 70 $ (871) $ (220) $ (1,301) $ 61 $ (251)   $ (559) $ (2,446) $ 417
Earnings per share attributable to ordinary shareholders:                      
Basic   $ 0.06 $ (0.78) $ (0.2) $ (1.17) $ 0.05 $ (0.23)   $ (0.5) $ (2.2) $ 0.38
Diluted   $ 0.06 $ (0.78) $ (0.2) $ (1.17) $ 0.05 $ (0.23)   $ (0.5) $ (2.2) $ 0.38
Adjustment                      
Quarterly Financial Information [Line Items]                      
Net revenues $ 4,457 $ 3,850 $ 3,878 $ 3,661 $ 3,884 $ 3,595 $ 3,786 $ 3,661      
Gross profit 2,416 1,851 1,796 1,582 1,770 1,669 1,794 1,740      
Net income (loss) [1] 465 78 (905) (253) (1,333) 63 (278) (952)      
Net income (loss) attributable to Teva [1] $ 461 $ 70 $ (871) $ (220) $ (1,301) $ 61 $ (251) $ (955)      
Earnings per share attributable to ordinary shareholders:                      
Basic [1] $ 0.41 $ 0.06 $ (0.78) $ (0.2) $ (1.17) $ 0.05 $ (0.23) $ (0.86)      
Diluted [1] $ 0.41 $ 0.06 $ (0.78) $ (0.2) $ (1.17) $ 0.05 $ (0.23) $ (0.86)      
[1] The data presented for the above quarterly periods (except for the three months ended March 31, 2022 and the three months ended December 31, 2023) have been revised to reflect a revision of the line items in the consolidated financial statements. See tables below and note 1b.
v3.24.0.1
Quarterly Financial Data (Unaudited) - Summary of Restatement of Certain Line Items in the Income Statement (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Quarterly Financial Information [Line Items]                  
Other asset impairments, restructuring and other items $ 57 $ 108 $ 110 $ 217 $ 31 $ 137 $ 718 [1] $ 512 [1] $ 341 [1]
Operating income (loss) 344 (654) (13) (940) 424 (967) 433 [1] (2,197) [1] 1,716 [1]
Income (loss) before income taxes 64 (923) (272) (1,185) 171 (1,178) (624) [1],[2] (3,163) [1],[2] 658 [1],[2]
Income taxes (benefit) (12) (16) (19) 149 107 (900) (7) [2] (643) [2] 211 [2]
Net income (loss) 78 (905) (253) (1,333) 63 (278) (615) (2,499) 456
Net income (loss) attributable to Teva $ 70 $ (871) $ (220) $ (1,301) $ 61 $ (251) $ (559) $ (2,446) $ 417
Earnings (loss) per share attributable to ordinary shareholders:                  
Basic $ 0.06 $ (0.78) $ (0.2) $ (1.17) $ 0.05 $ (0.23) $ (0.5) $ (2.2) $ 0.38
Diluted $ 0.06 $ (0.78) $ (0.2) $ (1.17) $ 0.05 $ (0.23) $ (0.5) $ (2.2) $ 0.38
As previously reported [Member]                  
Quarterly Financial Information [Line Items]                  
Other asset impairments, restructuring and other items $ 46 $ 100 $ 96 $ 132 $ 36 $ 118   $ 414  
Operating income (loss) 355 (646) 2 (855) 419 (949)   (2,099)  
Income (loss) before income taxes 75 (914) (258) (1,100) 166 (1,160)   (3,065)  
Income taxes (benefit) (12) (16) (19) 154 107 (900)   (638)  
Net income (loss) 88 (898) (238) (1,254) 58 (259)   (2,406)  
Net income (loss) attributable to Teva $ 80 $ (863) $ (205) $ (1,221) $ 56 $ (232)   $ (2,353)  
Earnings (loss) per share attributable to ordinary shareholders:                  
Basic $ 0.07 $ (0.77) $ (0.18) $ (1.1) $ 0.05 $ (0.21)   $ (2.12)  
Diluted $ 0.07 $ (0.77) $ (0.18) $ (1.1) $ 0.05 $ (0.21)   $ (2.12)  
Adjustment [Member]                  
Quarterly Financial Information [Line Items]                  
Other asset impairments, restructuring and other items $ 11 $ 8 $ 15 $ 85 $ (5) $ 18   $ 98  
Operating income (loss) (11) (8) (15) (85) 5 (18)   (98)  
Income (loss) before income taxes (11) (8) (15) (85) 5 (18)   (98)  
Income taxes (benefit)       (5)       (5)  
Net income (loss) (11) (8) (15) (80) 5 (18)   (93)  
Net income (loss) attributable to Teva $ (11) $ (8) $ (15) $ (80) $ 5 $ (18)   $ (93)  
Earnings (loss) per share attributable to ordinary shareholders:                  
Basic $ (0.01) $ (0.01) $ (0.02) $ (0.07) $ 0 $ (0.02)   $ (0.08)  
Diluted $ (0.01) $ (0.01) $ (0.02) $ (0.07) $ 0 $ (0.02)   $ (0.08)  
[1] The data presented for 2022 have been revised to reflect a revision in relation to a contingent consideration liability and related expenses in the consolidated financial statements. See note 1b.
[2] The financial data presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
Quarterly Financial Data (Unaudited) - Summary of Restatement of Certain Line Items in the Income Statement (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2023
 [1]
Dec. 31, 2022
Dec. 31, 2021
 [1]
Quarterly Financial Information [Line Items]                  
Income Tax Expense (Benefit) $ (12.0) $ (16.0) $ (19.0) $ 149.0 $ 107.0 $ (900.0) $ (7.0) $ (643.0) [1] $ 211.0
Restatement adjustment [Member]                  
Quarterly Financial Information [Line Items]                  
Income Tax Expense (Benefit) (12.0) (16.0) (19.0) $ 154.0 107.0 (900.0)   $ (638.0)  
Maximum [Member] | Restatement adjustment [Member]                  
Quarterly Financial Information [Line Items]                  
Income Tax Expense (Benefit) $ 0.5 $ 0.5 $ 0.5   $ 0.5 $ 0.5      
[1] The financial data presented in the tables above for the year ended December 31, 2022 have been revised as discussed in note 1b.
v3.24.0.1
Quarterly Financial Data (Unaudited) - Summary of Restatement of Certain Line Items in the Balance Sheets (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Dec. 31, 2020
Quarterly Financial Information [Line Items]                  
Deferred income taxes $ 1,812 $ 1,755 $ 1,583 $ 1,577 $ 1,458 $ 1,546 $ 1,595    
Total assets 43,479 42,095 43,100 43,461 44,011 44,252 45,932    
Other taxes and long-term liabilities 4,019 3,950 4,094 3,982 3,945 3,859 3,860    
Total long-term liabilities 23,106 23,314 23,664 24,546 23,944 23,213 25,125    
Total liabilities 35,353 34,708 35,508 34,957 35,413 34,747 36,121    
Teva shareholders' equity:                  
Accumulated deficit (13,534) (13,995) (14,066) (13,194) (12,975) (11,673) (11,734)    
Total equity 8,126 7,387 7,592 8,504 8,598 9,506 9,810 $ 11,244 $ 11,061
Total liabilities and equity $ 43,479 42,095 43,100 43,461 44,011 44,252 45,932    
As previously reported [Member]                  
Quarterly Financial Information [Line Items]                  
Deferred income taxes   1,748 1,578 1,572 1,453 1,546 1,595    
Total assets   42,088 43,095 43,456 44,006 44,252 45,932    
Other taxes and long-term liabilities   3,818 3,973 3,869 3,847 3,846 3,842    
Total long-term liabilities   23,182 23,543 24,433 23,846 23,200 25,107    
Total liabilities   34,576 35,387 34,844 35,315 34,734 36,103    
Teva shareholders' equity:                  
Accumulated deficit   (13,870) (13,950) (13,086) (12,882) (11,660) (11,716)    
Total equity   7,512 7,708 8,612 8,691 9,519 9,828    
Total liabilities and equity   42,088 43,095 43,456 44,006 44,252 45,932    
Adjustment [Member]                  
Quarterly Financial Information [Line Items]                  
Deferred income taxes   7 5 5 5        
Total assets   7 5 5 5        
Other taxes and long-term liabilities   132 121 113 98 13 18    
Total long-term liabilities   132 121 113 98 13 18    
Total liabilities   132 121 113 98 13 18    
Teva shareholders' equity:                  
Accumulated deficit   (125) (116) (108) (93) (13) (18)    
Total equity   (125) (116) (108) (93) (13) (18)    
Total liabilities and equity   $ 7 $ 5 $ 5 $ 5 $ 0 $ 0    
v3.24.0.1
Quarterly Financial Data (Unaudited) - Summary of Restatement of Certain Line Items in the Balance Sheets (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Quarterly Financial Information [Line Items]              
Deferred income tax assets $ 1,812.0 $ 1,755.0 $ 1,583.0 $ 1,577.0 $ 1,458.0 $ 1,546.0 $ 1,595.0
Total assets $ 43,479.0 42,095.0 43,100.0 43,461.0 44,011.0 44,252.0 45,932.0
Restatement adjustment [Member]              
Quarterly Financial Information [Line Items]              
Deferred income tax assets   1,748.0 1,578.0 1,572.0 1,453.0 1,546.0 1,595.0
Total assets   $ 42,088.0 $ 43,095.0 $ 43,456.0 $ 44,006.0 44,252.0 45,932.0
Maximum [Member] | Restatement adjustment [Member]              
Quarterly Financial Information [Line Items]              
Deferred income tax assets           0.5 0.5
Total assets           $ 0.5 $ 0.5
v3.24.0.1
Schedule II Valuation and Qualifying Accounts (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period $ 3,596 $ 3,817 $ 4,309
Deductions   (13,125) (13,513)
Balance at end of period   3,596 3,817
Allowance For Doubtful Accounts [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period 162 164 200
Charged to costs and expenses 10 8 (8)
Charged to other accounts (6) (2) 0
Deductions (2) (8) (28)
Balance at end of period 164 162 164
Valuation Allowance in Tax Carryforward Losses And Deductions [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period 3,072 2,723 2,547
Charged to costs and expenses 161 443 336
Deductions (224) (93) (160)
Balance at end of period $ 3,009 $ 3,072 $ 2,723