Teva’s 1Q18 non-GAAP adjustments
In 1Q18, Teva Pharmaceutical Industries (TEVA) recorded non-GAAP (generally accepted accounting principles) EPS (earnings per share) of $0.94 and net income of $954 million. These earnings results were adjusted for a number of factors. The company made net non-GAAP adjustments of $101 million in 1Q18.
Teva recorded $612 million of impairments in 1Q18 related to its US intangible assets due to the fair value revaluation of Actavis generics products, which were acquired in 2016, and goodwill impairment charges related to its Rimsa reporting unit due to the change in allocated net assets to the unit and the impact of the change in the weighted average cost of capital by ~0.5%. Teva also impaired some of its assets, which the company will transfer to Proctor & Gamble (PG), as its joint venture PGT Healthcare with the company has terminated. These impairment charges were recorded to be $94 million of equity investment impairment and $56 million of an India-based plant impairment, which was part of the joint venture. Moreover, the company has recognized certain other site-closure-related impairments and accelerated depreciation.
Positive adjustments in 1Q18
Teva’s non-GAAP results also excluded and adjusted for the positive impact of $93 million from the non-US women’s health business sale and certain settlements related to Allergan’s working capital, the Rimsa acquisition, and the positive ruling and subsequent reversal in a carvedilol-related patent infringement lawsuit by GlaxoSmithKline (GSK).
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