01—Abstract
Summary
Summary of the 8-K filed April 18, 2024. Cited figures are marked; the original filing is the authoritative source.
Teva Pharmaceutical Industries Limited ("Teva") filed this Form 8-K under Item 7.01 (Regulation FD Disclosure) to announce a change in its segment reporting.
Effective January 1, 2024, Canada is no longer part of the North America segment. The North America segment is renamed the "United States Segment" and includes only the United States. Canada moves into the International Markets segment.
Teva will apply the new structure to its financial reporting beginning with the quarter ended March 31, 2024, with prior periods adjusted accordingly. The company cites a recent shift in executive management responsibilities and its "Pivot to Growth" strategy as the reasons for the change. To help investors compare results before first-quarter 2024 earnings, Exhibit 99.1 presents recast unaudited segment data for 2023 and 2022 and for each quarter of 2023.
It shows revenues, gross profit, R&D, S&M, G&A, other income and segment profit for the United States, Europe and International Markets segments, along with revenues by major product for each segment and revenues for Canada. Under the new structure, the United States Segment reported 2023 revenues of $7.73 billiona and segment profit of $2.39 billion, compared with $7.00 billion and $1.93 billion in 2022.
Canada reported 2023 revenues of $393 millionb, compared with $449 million in 2022. The information in Item 7.01 and Exhibit 99.1 is furnished rather than filed for purposes of Section 18 of the Exchange Act and is not incorporated by reference into other filings unless specifically referenced.
02—Key points
Key Highlights
- Effective January 1, 2024, Canada moves from the North America segment into the International Markets segment.
- The former North America segment becomes the "United States Segment," comprising only the United States.
- The new segment structure takes effect for the quarter ended March 31, 2024, with prior periods adjusted to match.
- United States Segment 2023 revenues were $7,731 million, up from $7,003 million in 2022; segment profit was $2,394 million versus $1,934 million.
- Europe Segment 2023 revenues were $4,837 million and segment profit was $1,478 million, compared with $4,525 million and $1,496 million in 2022.
- International Markets Segment 2023 revenues were $2,351 million and segment profit was $465 million, compared with $2,352 million and $538 million in 2022.
- Canada 2023 revenues were $393 million, compared with $449 million in 2022, and are now reported within International Markets.
03—Questions
Frequently Asked Questions
Why is Teva changing its segment reporting?
The filing says the change follows a recent shift in executive management responsibilities and aligns with Teva's Pivot to Growth strategy.
Which segment will Canada be reported in starting in 2024?
Canada will be reported as part of the International Markets segment effective January 1, 2024. The United States Segment will consist solely of the United States.
When will the new segment structure appear in Teva's financial statements?
Teva will apply the new structure beginning with the quarter ended March 31, 2024, and prior periods will be adjusted accordingly.
What financial data does Exhibit 99.1 provide?
Exhibit 99.1 provides unaudited recast segment data for the years ended December 31, 2023 and 2022 and each quarter of 2023. It covers revenues, gross profit, R&D, S&M and G&A expenses, other income and segment profit, revenues by major product, and Canada revenues by product.
Are the information in this Item 7.01 and Exhibit 99.1 considered filed with the SEC?
No. The filing states that the information is furnished to the Commission and is not deemed filed for purposes of Section 18 of the Exchange Act, nor incorporated by reference into other filings except as specifically referenced.
04—Continue