Print Page  |  Close Window

SEC Filings

6-K
TEVA PHARMACEUTICAL INDUSTRIES LTD filed this Form 6-K on 08/03/2017
Entire Document
 


Table of Contents

TEVA PHARMACEUTICAL INDUSTRIES LIMITED

Notes to Consolidated Financial Statements – (Continued)

 

The table below summarizes the fair value estimates of the assets acquired, liabilities assumed and resulting goodwill. As the measurement period is now closed, the amounts were finalized during the second quarter of 2017.

 

     U.S. $ in millions  
     Preliminary
values at
December 31,
2016
     Measurement
period
adjustments
     Values at June 30,
2017
 

Cash and cash equivalents

   $ 84      $ —        $ 84  

Trade receivables (1)

     3,211        (1      3,210  

Inventories

     1,670        (6      1,664  

Other current assets (2)

     2,050        (24      2,026  

Property, plant and equipment

     1,370        (105      1,265  

Other non-current assets

     24        —          24  

Identifiable intangible assets: (3)

        

Product rights (4)

     8,640        (486      8,154  

Trade names

     417        12        429  

In-process research and development

     5,006        611        5,617  

Goodwill

     24,192        961        25,153  
  

 

 

    

 

 

    

 

 

 

Total assets acquired

     46,664        962        47,626  
  

 

 

    

 

 

    

 

 

 

Sales reserves and allowances

     1,988        48        2,036  

Trade payables

     441        (3      438  

Employee related obligations

     134        13        147  

Accrued expenses (5)

     920        124        1,044  

Other current liabilities (6)

     376        315        691  

Deferred income taxes and other non-current liabilities (7)

     3,493        507        4,000  
  

 

 

    

 

 

    

 

 

 

Total liabilities assumed

     7,352        1,004        8,356  
  

 

 

    

 

 

    

 

 

 

Net assets acquired (8)

   $ 39,312      $ (42    $ 39,270  
  

 

 

    

 

 

    

 

 

 

 

(1)  As of the acquisition date, the fair value of trade receivables approximated the book value acquired. The gross contractual amount receivable was $3,319 million, of which approximately $109 million was not expected to be collected.
(2)  Other current net assets related to divestitures were approximately $1,611 million.
(3) The fair value adjustment estimate of identifiable intangible assets is determined using the “income approach,” which is a valuation technique that estimates the fair value of an asset based on market participants’ expectations of the cash flows an asset would generate over its remaining useful life.
(4)  The estimated weighted average amortization period of the acquired product rights is 11 years.
(5)  In the ordinary course of business, Actavis Generics incurred contingent and other liabilities. Except as specifically excluded by the relevant accounting standard, contingencies are required to be measured at fair value as of the acquisition date. A liability of $607 million for litigation matters was assumed by Teva in connection with the acquisition. See note 16.
(6) Changes in other current liabilities are mainly due to reassessment related to utilization of carryforward losses of $327 million.
(7)  Changes in deferred income taxes are mainly due to reassessment related to uncertain tax positions of approximately $297 million and changes related to re-allocation of intangibles assets to higher tax jurisdictions.
(8)  The reduction in the estimated fair value of the net assets acquired is a result of a working capital true up adjustment related to the Anda business.

 

10