Impairments Drove Down Teva’s 2017 Profits: What to Expect

Teva Pharmaceuticals (TEVA) reported a GAAP (generally accepted accounting principles) operating loss of $13 billion in fiscal 4Q17, which it reported on February 8, 2018. This difference was the result of significant impairment charges related to Teva’s US generics business in fiscal 4Q17. In fiscal 4Q17, Teva recorded a non-GAAP adjustment of $15.3 billion, ~$11 billion of which was due to the impairment of goodwill related to the company’s US generics business.