Other assets impairments, restructuring and other items

9 Months Ended

Sep. 30, 2023

Other assets impairments, restructuring and other items

NOTE 12 – Other assets impairments, restructuring and other items:    

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
	(U.S. $ in millions)				(U.S. $ in millions)
Impairments of long-lived tangible assets (1)	$	1	$	4	$	21	$	34
Contingent consideration		16		6		106		100
Restructuring		27		25		93		117
Other		2		1		21		31
Total	$	46	$	36	$	241	$	282

(1) Including impairments related to exit and disposal activities.

Impairments

Impairments of tangible assets for the three months ended September 30, 2023 and 2022 were $1 million and $4 million, respectively.

Impairments of tangible assets for the nine months ended September 30, 2023 and 2022 were $21 million and $34 million, respectively. The impairments for the nine months ended September 30, 2023 were mainly related to certain assets in North America and Europe. The impairments for the nine months ended September 30, 2022 were mainly related to certain assets in 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 ongoing network consolidation activities.

Contingent consideration

In the three months ended September 30, 2023, Teva recorded an expense of $16 million for contingent consideration, compared to an expense of $6 million in the three months ended September 30, 2022.

In the nine months ended September 30, 2023, Teva recorded an expense of $106 million for contingent consideration, compared to an expense of $100 million in the nine months ended September 30, 2022. The expense in the first nine months of 2023 was mainly related to a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales and a change in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid®). The expense in the first nine months of 2022 was mainly related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid®).

Restructuring

In the three months ended September 30, 2023, Teva recorded $27 million of restructuring expenses, compared to $25 million in the three months ended September 30, 2022. The expenses for the three months ended September 30, 2023 and 2022 were primarily related to network consolidation activities.

In the nine months ended September 30, 2023, Teva recorded $93 million of restructuring expenses, compared to $117 million in the nine months ended September 30, 2022. The expenses for the nine months ended September 30, 2023 and 2022 were primarily related to network consolidation activities. 

The following tables provide the components of the Company’s restructuring costs:

	Three months ended September 30,
	2023		2022
	(U.S. $ in millions)
Restructuring
Employee termination	$	16	$	32
Other		12		(7	)
Total	$	27	$	25

	Nine months ended September 30,
	2023		2022
	(U.S. $ in millions)
Restructuring
Employee termination	$	40	$	95
Other		53		22
Total	$	93	$	117

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, 2023	$	(112	)	$	(7	)	$	(119	)
Provision		(40	)		(53	)		(93	)
Utilization and other*		77			53			130
Balance as of September 30, 2023	$	(75	)	$	(7	)	$	(82	)

	Employee termination costs		Other		Total
	(U.S. $ in millions)
Balance as of January 1, 2022	$	(131)	$	(7)	$	(138)
Provision		(95)		(22)		(117)
Utilization and other*		114		22		136
Balance as of September 30, 2022	$	(112)	$	(7)	$	(119)

* Includes adjustments for foreign currency translation.