<SEC-DOCUMENT>0001157523-18-000962.txt : 20180503
<SEC-HEADER>0001157523-18-000962.hdr.sgml : 20180503
<ACCEPTANCE-DATETIME>20180503070044
ACCESSION NUMBER:		0001157523-18-000962
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180503
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180503
DATE AS OF CHANGE:		20180503

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TEVA PHARMACEUTICAL INDUSTRIES LTD
		CENTRAL INDEX KEY:			0000818686
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			L3
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-16174
		FILM NUMBER:		18801742

	BUSINESS ADDRESS:	
		STREET 1:		5 BAZEL ST
		STREET 2:		P O B 3190
		CITY:			PETACH TIKVA
		STATE:			L3
		ZIP:			49131
		BUSINESS PHONE:		9729267267

	MAIL ADDRESS:	
		STREET 1:		TEVA PHARMACEUTICAL INDUSTRIES LIMITED
		STREET 2:		5 BAZEL ST PO B 3190
		CITY:			PETACH TIKVA
		STATE:			L3
		ZIP:			49131
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a51800447.htm
<DESCRIPTION>TEVA PHARMACEUTICAL INDUSTRIES LIMITED 8-K
<TEXT>
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    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 16pt"><b>UNITED
      STATES</b></font><b><font style="font-family: Times New Roman; font-size: 16pt"><br style="font-family: Times New Roman; font-size: 16pt"></font><font style="font-family: Times New Roman; font-size: 16pt">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Washington,
      D.C. 20549</b></font><br>
    </p>
    <hr style="text-align: center; height: 1.0 pt; width: 100%; color: #000000">


    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 16pt"><b>FORM 8-K</b></font>
    </p>
    <hr style="text-align: center; height: 1.0 pt; width: 100%; color: #000000">


    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>CURRENT
      REPORT</b></font><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Pursuant
      to Section 13 or 15(d)</b></font><b><font style="font-family: Times New Roman; font-size: 12pt"><br style="font-family: Times New Roman; font-size: 12pt"></font><font style="font-family: Times New Roman; font-size: 12pt">of
      the Securities Exchange Act of 1934</font></b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Date of
      Report (Date of earliest event reported) May 3, 2018</b></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><br>
    </p>
    <hr style="text-align: center; height: 1.0 pt; width: 100%; color: #000000">


    <p style="text-align: center">
      <br>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 20pt"><b>TEVA&#160;PHARMACEUTICAL&#160;INDUSTRIES&#160;LIMITED</b></font><br><font style="font-family: Times New Roman; font-size: 10pt"><b>(Exact
      name of registrant as specified in its charter)</b></font><br>
    </p>
    <hr style="text-align: center; height: 1.0 pt; width: 100%; color: #000000">


    <p style="text-align: center">
      <br>

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 10pt; margin-bottom: 10.0px">
      <tr>
        <td valign="bottom" style="text-align: center; width: 33%; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Israel</b>
          </p>
        </td>
        <td valign="bottom" style="text-align: center; width: 34%; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>001-16174</b>
          </p>
        </td>
        <td valign="bottom" style="text-align: center; width: 33%; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Not Applicable</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; width: 33%; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(State or Other Jurisdiction</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>of Incorporation)</b>
          </p>
        </td>
        <td valign="bottom" style="text-align: center; width: 34%; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(Commission</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>File Number)</b>
          </p>
        </td>
        <td valign="bottom" style="text-align: center; width: 33%; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(IRS Employer</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Identification No.)</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>
      <b>5 Basel Street</b><br><b>P.O. Box 3190</b><br><b>Petach Tikva
      4951033, Israel</b><br><b>(Address of Principal Executive Offices,
      including Zip Code)</b><br><br><b>+972-3-914-8171</b><br><b>(Registrant&#8217;s
      Telephone Number, including Area Code)</b><br><br><b>Not Applicable</b><br><b>(Former
      Name or Former Address, if Changed Since Last Report)</b>
    </p>
    <p style="text-align: center">

    </p>
    <hr style="height: 1.0 pt; text-align: center; width: 100%; color: #000000">


    <p style="text-align: center">

    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions (see General Instruction A.2. below):</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <p>
      Indicate by check mark whether the registrant is an emerging growth
      company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405
      of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
      (&#167;240.12b-2 of this chapter).
    </p>
    <p style="text-align: right">
      Emerging Growth Company&#160;&#160;<font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
    </p>
    <p>
      If an emerging growth company, indicate by check mark if the registrant
      has elected not to use the extended transition period for complying with
      any new or revised financial accounting standards provided pursuant to
      Section&#160;13(a) of the Exchange Act.&#160;&#160;<font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
    </p>
    <p>

    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>ITEM 2.02 &#160;&#160;&#160;Results of Operations and Financial Condition</b>
    </p>
    <p>
      On May 3, 2018, Teva Pharmaceutical Industries Ltd. issued a press
      release announcing its financial results for the period ended March 31,
      2018. A copy of the press release is furnished as Exhibit 99.1 to this
      Current Report on Form 8-K and the information contained therein is
      incorporated herein by reference.
    </p>
    <p>
      The information included in this Item 2.02 is being furnished to the
      Securities and Exchange Commission and shall not be deemed &#8220;filed&#8221; for
      purposes of Section&#160;18 of the Securities Exchange Act of 1934, as
      amended (the &#8220;Exchange Act&#8221;), nor shall it be deemed incorporated by
      reference in any filing under the Securities Act of 1933, as amended, or
      the Exchange Act, except as shall be expressly set forth by specific
      reference in such a filing.
    </p>
    <p>
      <br>
      <br>
      <b>ITEM&#160;9.01 &#160;&#160; Financial Statements and Exhibits</b>
    </p>
    <p>
      (d) Exhibits<br><br>
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 10pt; margin-bottom: 10.0px">
      <tr>
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        </td>
        <td valign="bottom" style="text-align: left; width: 2%; padding-left: 0.0px">
          &#160;
        </td>
        <td valign="middle" style="text-align: left; width: 90%; padding-left: 0.0px">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; width: 8%; border-bottom-color: black; padding-left: 0.0px">
          <b>Exhibit</b>

          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>No.</b>
          </p>
        </td>
        <td valign="bottom" style="text-align: left; padding-bottom: 2.0px; width: 2%; padding-left: 0.0px">

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: left; border-bottom-width: 1.0pt; width: 90%; border-bottom-color: black; padding-left: 0.0px">
          <b>Description of Document</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; width: 8%; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <a href="a51800447ex99_1.htm">99.1</a>
          </p>
        </td>
        <td valign="bottom" style="text-align: left; width: 2%; padding-left: 0.0px">

        </td>
        <td valign="top" style="text-align: left; width: 90%; padding-left: 5.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <a href="a51800447ex99_1.htm">Teva Reports First Quarter 2018
            Financial Results</a>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt"><b>SIGNATURES</b></font>
    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">Pursuant to
      the requirements of the Securities Exchange Act of 1934, as amended, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <p>

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 10pt; margin-bottom: 10.0px">
      <tr>
        <td style="width: 4%">

        </td>
        <td style="width: 46%">

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>TEVA PHARMACEUTICAL INDUSTRIES LTD.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 4%">

        </td>
        <td style="width: 46%">

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; width: 4%; padding-left: 0.0px">
          Date:
        </td>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; width: 46%; padding-left: 0.0px">
          May 3, 2018
        </td>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; width: 4%; padding-left: 0.0px">
          By:
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: left; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Michael McClellan
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 4%">

        </td>
        <td style="width: 46%">

        </td>
        <td style="width: 4%">

        </td>
        <td valign="top" style="text-align: left; width: 6%; padding-left: 0.0px">
          Name:
        </td>
        <td valign="top" style="text-align: left; width: 40%; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Michael McClellan
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 4%">

        </td>
        <td style="width: 46%">

        </td>
        <td style="width: 4%">

        </td>
        <td valign="top" style="text-align: left; width: 6%; padding-left: 0.0px">
          Title:
        </td>
        <td valign="top" style="text-align: left; width: 40%; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Executive Vice President and Chief
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 4%">

        </td>
        <td style="width: 46%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="width: 6%">

        </td>
        <td valign="top" style="text-align: left; width: 40%; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51800447ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
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    <title></title>
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  <body style="font-family: Times New Roman; font-size: 8pt">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Teva
      Reports First Quarter 2018 Financial Results</b></font>
    </p>
    <p>

    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <font style="font-family: Times New Roman; font-size: 12pt"><b>Revenues
        of $5.1 billion</b></font>
      </li>
      <li style="margin-bottom: 10.0px">
        <font style="font-family: Times New Roman; font-size: 12pt"><b>Free
        cash flow of $1.9 billion</b></font>
      </li>
      <li style="margin-bottom: 10.0px">
        <font style="font-family: Times New Roman; font-size: 12pt"><b>GAAP
        EPS of $1.03</b></font>
      </li>
      <li style="margin-bottom: 10.0px">
        <font style="font-family: Times New Roman; font-size: 12pt"><b>Non-GAAP
        EPS of $0.94</b></font>
      </li>
      <li style="margin-bottom: 10.0px">
        <font style="font-family: Times New Roman; font-size: 12pt"><b>Restructuring
        plan on-track to achieve $1.5 billion of savings in 2018 and $3.0
        billion by the end of 2019</b></font>
      </li>
      <li style="margin-bottom: 10.0px">
        <font style="font-family: Times New Roman; font-size: 12pt"><b>Raising
        2018 full year guidance:</b></font>

        <ul>
          <li style="margin-bottom: 10.0px">
            <font style="font-family: Times New Roman; font-size: 12pt"><b>Non-GAAP
            EPS guidance raised to $2.40-2.65 from $2.25-2.50</b></font>
          </li>
          <li style="margin-bottom: 10.0px">
            <font style="font-family: Times New Roman; font-size: 12pt"><b>Free
            cash flow guidance raised to $3.0-3.2 billion from $2.6-2.8 billion</b></font>
          </li>
        </ul>
      </li>
    </ul>
    <p>
      JERUSALEM--(BUSINESS WIRE)--May 3, 2018--Teva Pharmaceutical Industries
      Ltd. (NYSE: TEVA, TASE: TEVA) today reported results for the quarter
      ended March 31, 2018.
    </p>
    <p>
      Mr. K&#229;re Schultz, Teva&#8217;s President and CEO, said &quot;2018 is off to a solid
      start. Our restructuring program is proceeding well, and we are on track
      to meet our cost reduction targets of $1.5 billion in 2018 and $3.0
      billion by the end of 2019. During this quarter, our strong cash flow
      allowed us to continue to reduce our outstanding debt, and together with
      our recent debt issuance and covenant amendment, has placed Teva on a
      more stable financial footing. We have also benefited this quarter from
      the durability of COPAXONE and a steady flow of generic launches in the
      U.S. Our strong first quarter performance, along with our confidence in
      executing the restructuring program, gives us a solid foundation to
      raise our guidance for the year.&#8221;
    </p>
    <p>
      <u><b>First Quarter 2018 Consolidated Results</b></u>
    </p>
    <p>
      <b>Revenues</b> in the first quarter of 2018 were $5.1 billion, a
      decrease of 10%, or 15% in local currency terms, compared to the first
      quarter of 2017, mainly due to adverse market dynamics in the U.S.
      generics market, generic competition to COPAXONE and loss of revenues
      following our divestment of certain products and discontinuation of
      certain activities.
    </p>
    <p>
      <b>Exchange rate</b> differences between the first quarter of 2018 and
      the first quarter of 2017 positively impacted our revenues by $240
      million, our GAAP operating income by $37 million and our non-GAAP
      operating income by $46 million.
    </p>
    <p>
      GAAP <b>gross profit</b> was $2.3 billion in the first quarter of 2018,
      down 17% compared to the first quarter of 2017. GAAP <b>gross profit
      margin</b> was 46.4% in the first quarter of 2018, compared to 50.2% in
      the first quarter of 2017.
    </p>
    <div style="text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Non-GAAP <b>gross profit </b>was $2.7 billion in the first quarter of
      2018, a decline of 18% from the first quarter of 2017. Non-GAAP <b>gross
      profit margin</b> was 52.3% in the first quarter of 2018, compared to
      56.9% in the first quarter of 2017. The decrease in gross profit margin,
      on both a GAAP and a non-GAAP basis, was mainly the result of lower
      profitability in our North America segment due to lower COPAXONE sales
      and adverse market dynamics in the U.S. generics market.
    </p>
    <p>
      <b>Research and Development (R&amp;D)</b> expenses for the first quarter
      of 2018 were $317 million, down 27% compared to the first quarter of
      2017. R&amp;D expenses excluding equity compensation expenses and other R&amp;D
      expenses were $289 million, or 5.7% of quarterly revenues in the first
      quarter of 2018, compared to $420 million, or 7.4%, in the first quarter
      of 2017. The decrease in R&amp;D expenses primarily resulted from pipeline
      optimization, project terminations, phase 3 studies that ended and
      related headcount reductions.
    </p>
    <p>
      <b>Selling and Marketing (S&amp;M)</b> expenses in the first quarter of
      2018 were $771 million, a decrease of 20% compared to the first quarter
      of 2017. S&amp;M expenses excluding amortization of purchased intangible
      assets and equity compensation expenses were $715 million, or 14.1% of
      revenues, in the first quarter of 2018, compared to $894 million, or
      15.8% of revenues, in the first quarter of 2017. The decrease was mainly
      due to cost reduction and efficiency measures as part of the
      restructuring plan.
    </p>
    <p>
      <b>General and Administrative (G&amp;A) </b>expenses in the first
      quarter of 2018 were $329 million, a decrease of 10% compared to the
      first quarter of 2017. G&amp;A expenses excluding equity compensation
      expenses and other items were $322 million in the first quarter of 2018,
      or 6.4% of quarterly revenues, compared to $353 million, or 6.2% in the
      first quarter of 2017. The decrease was mainly due to cost reduction and
      efficiency measures as part of the restructuring plan.
    </p>
    <p>
      GAAP <b>other income</b> in the first quarter of 2018 was $203 million,
      an increase of 182% compared to $72 million in the first quarter of
      2017. Non-GAAP <b>other income</b> in the first quarter of 2018 was $110
      million, an increase of 53% compared to $72 million in the first quarter
      of 2017. The increase in other income was primarily the result of higher
      Section 8 recoveries in Canada and a $93 million net gain related to the
      divestment of our women&#8217;s health business, which was excluded from our
      non-GAAP results.
    </p>
    <p>
      GAAP <b>operating income</b> in the first quarter of 2018 was $1.5
      billion, compared to $895 million in the first quarter of 2017. Non-GAAP <b>operating
      income</b> in the first quarter of 2018 was $1.4 billion, a decrease of
      11% compared to the first quarter of 2017. GAAP <b>operating margin</b>
      was 30.0% in the first quarter of 2018 compared to 15.8% in the first
      quarter of 2017. Non-GAAP <b>operating margin</b> was 28.3% in the first
      quarter of 2018 compared to 28.7% in the first quarter of 2017.
    </p>
    <p>
      <b>EBITDA</b> (non-GAAP operating income, which excludes amortization
      and certain other items, as well as excluding depreciation expenses) was
      $1.6 billion in the first quarter of 2018, down 10% compared to $1.8
      billion in the first quarter of 2017.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      GAAP <b>financial expenses</b> for the first quarter of 2018 were $271
      million, compared to $207 million in the first quarter of 2017. Non-GAAP<b>
      financial expenses </b>were $203 million in the first quarter of 2018,
      compared to $235 million in the first quarter of 2017. The decrease in
      our non-GAAP financial expenses was mainly due to an increased gain in
      our hedging and derivatives activities and lower interest expenses
      resulting from reduced overall debt, partially offset by an increase in
      interest and foreign exchange rates.
    </p>
    <p>
      GAAP<b> income taxes</b> for the first quarter of 2018 were $46 million,
      or 4%, on pre-tax income of $1.3 billion. In the first quarter of 2017,
      GAAP income taxes were $54 million, or 8%, on pre-tax income of $688
      million. Our tax rate for the first quarter of 2018 was mainly affected
      by one-time legal settlements and divestments that had a low
      corresponding tax effect. Non-GAAP<b> income taxes</b> for the first
      quarter of 2018 were $211 million on pre-tax non-GAAP income of $1.2
      billion, for a quarterly tax rate of 17%. Non-GAAP income taxes in the
      first quarter of 2017 were $240 million on pre-tax non-GAAP income of
      $1.4 billion, for a quarterly tax rate of 17%.
    </p>
    <p>
      GAAP<b> net income </b>attributable to ordinary shareholders and GAAP<b>
      diluted EPS</b> in the first quarter of 2018 were $1.1 billion and
      $1.03, respectively, compared to $580 million and $0.57, respectively,
      in the first quarter of 2017. Non-GAAP<b> net income</b> attributable to
      ordinary shareholders and non-GAAP<b> diluted EPS </b>in the first
      quarter of 2018 were $954 million and $0.94, respectively, compared to
      $1.1 billion and $1.06 in the first quarter of 2017.
    </p>
    <p>
      For the first quarter of 2018, the weighted average <b>outstanding
      shares </b>for the fully diluted EPS calculation on both a GAAP and a
      non-GAAP basis was 1,020 million, compared to 1,017 million on a GAAP
      and non-GAAP basis for the first quarter of 2017. Additionally, no
      account was taken of the potential dilution by the mandatory convertible
      preferred shares, amounting to 64 million (including shares that may be
      issued due to unpaid dividends to date) for the three months ended March
      31, 2018 and 59 million for the three months ended March 31, 2017, as
      well as for the convertible senior debentures for the respective
      periods, since both had an anti-dilutive effect on EPS.
    </p>
    <p>
      <b>Non-GAAP information</b>: Net non-GAAP adjustments in the first
      quarter of 2018 were positive $101 million. Non-GAAP net income and
      non-GAAP EPS for the quarter were adjusted to exclude the following
      items:
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Impairments of $612 million, mainly a goodwill impairment related to
        Rimsa, impairment of intangible assets of product rights and IPR&amp;D
        assets related to the Actavis Generics acquisition, as well as
        impairment for closure of manufacturing sites and other fixed assets.
        The impairment also includes $56 million related to a plant located in
        India in connection with the termination of PGT Healthcare joint
        venture.
      </li>
      <li style="margin-bottom: 10.0px">
        Impairments of equity investments of $94 million due to termination of
        PGT Healthcare joint venture.
      </li>
      <li style="margin-bottom: 10.0px">
        Amortization of purchased intangible assets totaling $310 million, of
        which $264 million is included in cost of goods sold and the remaining
        $46 million in S&amp;M expenses;
      </li>
      <li style="margin-bottom: 10.0px">
        Restructuring expenses of $247 million;
      </li>
      <li style="margin-bottom: 10.0px">
        Financial expenses of $68 million mainly related to early redemption
        fees;
      </li>
      <li style="margin-bottom: 10.0px">
        Other non-GAAP items of $104 million;
      </li>
      <li style="margin-bottom: 10.0px">
        Divestment benefit of $93 million related to capital gain from the
        sales of our women health business;
      </li>
      <li style="margin-bottom: 10.0px">
        Tax benefit of $165 million; and
      </li>
      <li style="margin-bottom: 10.0px">
        Benefits from legal settlements of $1.3 billion mainly related to the
        Allergan working capital adjustments, the Rimsa settlement and the
        reversal of the carvedilol judgement against Teva.
      </li>
    </ul>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Teva believes that excluding such items facilitates investors'
      understanding of its business. See the attached tables for a
      reconciliation of the GAAP results to the adjusted non-GAAP figures.
      Investors should consider non-GAAP financial measures in addition to,
      and not as replacement for, or superior to, measures of financial
      performance prepared in accordance with GAAP.
    </p>
    <p>
      <b>Cash flow generated from operations</b> during the first quarter of
      2018 was $1.5 billion, compared to $0.1 billion in the first quarter of
      2017. The increase was mainly due to proceeds from the working capital
      adjustment with Allergan and the legal settlement with Rimsa, compared
      to payments made to the SEC and DOJ in connection with the FCPA
      resolution in the first quarter of 2017.
    </p>
    <p>
      <b>Free</b> <b>cash flow</b>, excluding net capital expenditures and
      beneficial interest collected in exchange for securitized trade
      receivables, was $1.9 billion in the first quarter of 2018, compared to
      $0.3 billion in the first quarter of 2017. The increase was mainly due
      to the increase in cash flow from operations as well as lower net
      capital expenditures investments and higher securitized account
      receivables.
    </p>
    <p>
      As of March 31, 2018, our total gross <b>debt</b> was $30.8 billion,
      compared to $32.5 billion as of December 31, 2017. The decrease was
      mainly due to $6.5 billion in debt prepayments, partially offset by our
      March 2018 issuance of an aggregate principal amount of $4.4 billion of
      senior notes, as well as exchange rate fluctuations. The portion of
      total debt classified as short-term as of March 31, 2018 was 4%,
      compared to 11% as of December 31, 2017.
    </p>
    <p>
      <u><b>Segment Results for the First Quarter 2018</b></u>
    </p>
    <p>
      Due to the organizational changes announced in November 2017, our
      financial results are now being reported under new segments. Our new
      reportable segments are:
    </p>
    <p>
      a) North America segment, which includes the United States and Canada.
    </p>
    <p>
      b) Europe segment, which includes the European Union and certain other
      European countries.
    </p>
    <p>
      c) Growth Markets segment, which includes all countries other than those
      in our North America and Europe segments.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      In addition to these three segments, we have other activities, primarily
      our API third party manufacturing business and certain contract
      manufacturing services.
    </p>
    <p>
      Segment profit is comprised of gross profit for the segment, less R&amp;D,
      S&amp;M, G&amp;A expenses and other income related to each segment. Segment
      profit does not include amortization and certain other items.
    </p>
    <p>
      <b>North America Segment</b>
    </p>
    <p>
      Our North America segment includes the United States and Canada.
    </p>
    <p>
      The following table presents revenues, expenses and profit for our North
      America segment for the three months ended March 31, 2018 and 2017:
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td>

        </td>
        <td valign="middle" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="7">
          <b>Three months ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: right; padding-bottom: 2.0px; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2018</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="7">
          <b>(U.S.$ in millions / % of Segment Revenues)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Revenues
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,531
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          100%
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          3,240
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          100%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Gross profit
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,432
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          57%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,080
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          64%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          R&amp;D expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          188
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          8%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          267
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          8%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          S&amp;M expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          305
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          12%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          441
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          14%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          G&amp;A expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          126
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          5%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          139
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          4%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Other income
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (102)
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (4%)
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (73)
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (2%)
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          Segment profit*
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          915
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          36%
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,306
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          40%
        </td>
      </tr>
      <tr>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="8">
          <p style="margin-top: 0px; margin-bottom: 0px">
            * Segment profit does not include amortization and certain other
            items. The data presented for prior periods have
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            been conformed to reflect the changes to our segment reporting
            commencing in the first quarter of 2018.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      <b>Revenues</b> from our North America segment in the first quarter of
      2018 were $2.5 billion, a decrease of $709 million, or 22%, compared to
      the first quarter of 2017, mainly due to adverse market dynamics in the
      U.S. generics market, a decline in COPAXONE revenues due to generic
      competition and the loss of revenues from the sale of our women&#8217;s health
      business, partially offset by higher revenues from AUSTEDO, BENDEKA and
      TREANDA, QVAR and our distribution business.
    </p>
    <p>
      <b>Revenues in the United States</b>, our largest market, were $2.4
      billion in the first quarter of 2018, a decrease of $719 million, or
      23%, compared to the first quarter of 2017.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Revenues by Major Products and Activities</b>
    </p>
    <p>
      The following table presents revenues for our North America segment by
      major products and activities for the three months ended March 31, 2018
      and 2017:
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Three months ended</b>
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>March 31,</b>
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Percentage</b>

          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Change</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-bottom: 2.0px; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2017-2018</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="5">
          <b>(U.S.$ in millions)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Generic products
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,088
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,415
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (23%)
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          COPAXONE
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          476
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          797
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (40%)
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          BENDEKA / TREANDA
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          181
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          156
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          16%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          ProAir
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          130
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          121
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          QVAR
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          107
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          84
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          27%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          AUSTEDO
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          30
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          N/A
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Distribution
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          331
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          295
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          12%
        </td>
      </tr>
    </table>
    </div>
    <p>
      <b>Generic products</b> revenues in our North America segment in the
      first quarter of 2018 decreased by 23% to $1.1 billion, compared to the
      first quarter of 2017, mainly due to lower volumes and price erosion.
    </p>
    <p>
      In the first quarter of 2018, we led the U.S. generics market in total
      prescriptions and new prescriptions, with approximately 584 million
      total prescriptions, representing 15% of total U.S. generic
      prescriptions according to IQVIA data.
    </p>
    <p>
      <b>COPAXONE</b> revenues in our North America segment in the first
      quarter of 2018 decreased by 40% to $476 million compared to the first
      quarter of 2017, mainly due to generic competition in the United States.
      COPAXONE revenues in the United States were $462 million in the first
      quarter of 2018.
    </p>
    <p>
      <b>BENDEKA<sup>&#174;</sup></b> and <b>TREANDA<sup>&#174;</sup></b>
      combined revenues in our North America segment in the first quarter of
      2018 increased by 16% to $181 million, compared to the first quarter of
      2017, mainly due to higher volumes resulting from supply stabilization.
    </p>
    <p>
      <b>ProAir<sup>&#174;</sup></b> revenues in our North America segment in
      the first quarter of 2018 increased by 7% to $130 million, compared to
      the first quarter of 2017, mainly due to higher volumes.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>QVAR</b><sup>&#174;</sup> revenues in our North America segment in
      the first quarter of 2018 increased by 27% to $107 million, compared to
      the first quarter of 2017. We launched QVAR<sup>&#174;</sup> RediHaler&#8482;
      in the first quarter of 2018. The increase in sales in the first quarter
      of 2018 was mainly due to slightly higher wholesaler stocking for all
      QVAR family products in connection with the launch. QVAR maintained its
      second-place position in the inhaled corticosteroids category in the
      United States.
    </p>
    <p>
      <b>AUSTEDO<sup>&#174;</sup></b> revenues in our North America segment in
      the first quarter of 2018 were $30 million. AUSTEDO was approved by the
      FDA for the treatment of chorea associated with Huntington disease and
      was launched in the United States in April 2017. In August 2017, the FDA
      approved AUSTEDO for the treatment of tardive dyskinesia.
    </p>
    <p>
      <b>Distribution</b> revenues in our North America segment which are
      generated by Anda increased by 12% to $331 million in the first quarter
      of 2018, compared to the first quarter of 2017, mainly due to the severe
      cold, cough and influenza season in the first quarter of 2018, which
      increased demand for certain medicines.
    </p>
    <p>
      <b>North America Gross Profit</b>
    </p>
    <p>
      Gross profit from our North America segment in the first quarter of 2018
      was $1.4 billion, a decrease of 31% compared to $2.1 billion in the
      first quarter of 2017. The decrease was mainly due to lower revenues
      from COPAXONE and generic products.
    </p>
    <p>
      Gross profit margin for our North America segment in the first quarter
      of 2018 decreased to 56.6%, compared to 64.2% in the first quarter of
      2017. This decrease was mainly due to lower COPAXONE revenues and
      continued price erosion of generic products.
    </p>
    <p>
      <b>North America Profit</b>
    </p>
    <p>
      Profit from our North America segment in the first quarter of 2018 was
      $915 million, a decrease of 30% compared to $1.3 billion in the first
      quarter of 2017. The decrease was mainly due to lower revenues due to
      generic competition for COPAXONE and continued price erosion in the U.S.
      generics market, partially offset by cost reduction and higher other
      income.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Europe Segment</b>
    </p>
    <p>
      Our Europe segment includes the European Union and certain other
      European countries.
    </p>
    <p>
      The following table presents revenues, expenses and profit for our
      Europe segment for the three months ended March 31, 2018 and 2017:
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="7">
          <b>Three months ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="7">
          <b>(U.S.$ in millions / % of Segment Revenues)</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Revenues
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,442
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          100%
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,341
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          100%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Gross profit
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          797
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          55%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          734
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          55%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          R&amp;D expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          73
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          5%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          106
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          8%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          S&amp;M expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          255
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          18%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          279
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          21%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          G&amp;A expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          91
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          6%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          79
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          6%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Other expenses
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          Segment profit*
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          377
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          26%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          268
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          20%
        </td>
      </tr>
      <tr>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="8">
          <p style="margin-top: 0px; margin-bottom: 0px">
            * Segment profit does not include amortization and certain other
            items. The data presented for prior periods have
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            been conformed to reflect the changes to our segment reporting
            commencing in the first quarter of 2018.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      Revenues from our Europe segment in the first quarter of 2018 were $1.4
      billion, an increase of $101 million or 8%, compared to the first
      quarter of 2017. In local currency terms, revenues decreased by 6%,
      mainly due to the loss of revenues from the closure of our distribution
      business in Hungary and the sale of our women&#8217;s health business,
      partially offset by new generic product launches.
    </p>
    <p>
      <b>Revenues by Major Products and Activities</b>
    </p>
    <p>
      The following table presents revenues for our Europe segment by major
      products and activities for the three months ended March 31, 2018 and
      2017:
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Three months ended</b>
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>March 31,</b>
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Percentage</b>

          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Change</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-bottom: 2.0px; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2017-2018</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="7">
          <b>(U.S.$ in millions)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Generic products
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          997
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          850
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          17%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          COPAXONE
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          153
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          152
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Respiratory products
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          113
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          84
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          35%
        </td>
      </tr>
    </table>
    </div>
    <p>
      <b>Generic products</b> revenues in our Europe segment in the first
      quarter of 2018, including OTC products, increased by 17% to $997
      million, compared to the first quarter of 2017. In local currency terms,
      revenues increased by 2%, mainly due to new product launches and volume
      growth in OTC, partially offset by price reductions.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>COPAXONE</b> revenues in our Europe segment in the first quarter of
      2018 increased by 1% to $153 million, compared to the first quarter of
      2017. In local currency terms, revenues decreased by 13%, mainly due to
      price reductions resulting from the entry of generic competition.
    </p>
    <p>
      <b>Respiratory</b> <b>products</b> revenues in our Europe segment in the
      first quarter of 2018 increased by 35% to $113 million, compared to the
      first quarter of 2017. In local currency terms, revenues increased by
      18%, mainly due to the launch of BRALTUS<sup>&#174;</sup> in 2017.
    </p>
    <p>
      <b>Europe Gross Profit</b>
    </p>
    <p>
      Gross profit from our Europe segment in the first quarter of 2018 was
      $797 million, an increase of 9% compared to $734 million in the first
      quarter of 2017. The increase was mainly due to the positive impact of
      currency fluctuations, partially offset by the loss of revenues from the
      sale of our women's health business.
    </p>
    <p>
      Gross profit margin for our Europe segment in the first quarter of 2018
      increased to 55.3%, compared to 54.7% in the first quarter of 2017. This
      increase was mainly due to the closure of our distribution business in
      Hungary, partially offset by other production costs.
    </p>
    <p>
      <b>Europe Profit</b>
    </p>
    <p>
      Profit from our Europe segment in the first quarter of 2018 was $377
      million, an increase of 41% compared to $268 million in the first
      quarter of 2017. The increase was mainly due to higher revenues as well
      as cost reductions and efficiency measures as part of the restructuring
      plan.
    </p>
    <p>
      <b>Growth Markets Segment</b>
    </p>
    <p>
      Our Growth Markets segment includes all countries other than those in
      our North America and Europe segments. The key markets in this segment
      are Japan, Russia and Israel.
    </p>
    <p>
      The following table presents revenues, expenses and profit for our
      Growth Markets segment for the three months ended March 31, 2018 and
      2017:
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td>

        </td>
        <td valign="middle" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="7">
          <b>Three months ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="7">
          <b>(U.S.$ in millions / % of Segment Revenues)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Revenues
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          750
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          100%
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          718
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          100%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Gross profit
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          313
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          42%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          292
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          41%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          R&amp;D expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          24
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          4%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          47
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          S&amp;M expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          134
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          18%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          158
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          22%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          G&amp;A expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          41
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          5%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          48
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Other income
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (8)
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (1%)
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (1)
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (0%)
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          Segment profit*
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          122
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          16%
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          40
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          6%
        </td>
      </tr>
      <tr>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="8">
          <p style="margin-top: 0px; margin-bottom: 0px">
            * Segment profit does not include amortization and certain other
            items. The data presented for prior periods have
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            been conformed to reflect the changes to our segment reporting
            commencing in the first quarter of 2018.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Revenues</b> from our Growth Markets segment in the first quarter of
      2018 were $750 million, an increase of $32 million, or 4%, compared to
      the first quarter of 2017. In local currency terms, revenues were flat
      compared to the first quarter of 2017, mainly due to higher sales in
      Israel, Japan and Russia, partially offset by the effect of the
      deconsolidation of our subsidiaries in Venezuela and the loss of
      revenues from the sale of our women&#8217;s health business.
    </p>
    <p>
      <b>Revenues by Major Products and Activities</b>
    </p>
    <p>
      The following table presents revenues for our Growth Markets segment by
      major products and activities for the three months ended March 31, 2018
      and 2017:
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Three months ended</b>
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>March 31,</b>
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Percentage</b>

          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Change</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-bottom: 2.0px; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2017-2018</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="5">
          <b>(U.S.$ in millions)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Generic products
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          488
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          486
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.5%
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          COPAXONE
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          16
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          21
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (24%)
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Distribution
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          153
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          125
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          22%
        </td>
      </tr>
    </table>
    </div>
    <p>
      <b>Generic products</b> revenues in our Growth Markets segment in the
      first quarter of 2018, which includes OTC products, were flat compared
      to the first quarter of 2017. In local currency terms, revenues
      decreased by 3%, mainly due to the effect of the deconsolidation of our
      subsidiaries in Venezuela.
    </p>
    <p>
      <b>COPAXONE</b> revenues in our Growth Markets segment in the first
      quarter of 2018 decreased by 24% to $16 million, compared to the first
      quarter of 2017. In local currency terms, revenues decreased by 20%.
    </p>
    <p>
      <b>Distribution</b> revenues in our Growth Markets segment in the first
      quarter of 2018 increased by 22%, compared to the first quarter of 2017.
      In local currency terms, revenues increased by 13%.
    </p>
    <p>
      <b>Growth Markets Gross Profit</b>
    </p>
    <p>
      Gross profit from our Growth Markets segment in the first quarter of
      2018 was $313 million, an increase of 7% compared to $292 million in the
      first quarter of 2017. The increase was mainly due to higher revenues in
      Japan, including Azilect approval payment from Takeda, and Israel,
      partially offset by the deconsolidation of our subsidiaries in Venezuela
      and the loss of revenues from the sale of our women&#8217;s health business.
    </p>
    <p>
      Gross profit margin for our Growth Markets segment in the first quarter
      of 2018 increased to 41.7%, compared to 40.7% in the first quarter of
      2017. This increase was mainly due to higher gross profit in Japan,
      partially offset by the deconsolidation of our subsidiaries in Venezuela.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Growth Markets Profit</b>
    </p>
    <p>
      Profit from our Growth Markets segment in the first quarter of 2018 was
      $122 million, compared to $40 million in the first quarter of 2017. The
      increase was mainly due to higher revenues, as well as cost reductions
      and efficiency measures as part of the restructuring plan.
    </p>
    <p>
      During the fourth quarter of 2017, we deconsolidated our subsidiaries in
      Venezuela from our financial results. Consequently, results of
      operations of our subsidiaries in Venezuela are not included in our
      financial results for the first quarter of 2018.
    </p>
    <p>
      <b>Other Activities</b>
    </p>
    <p>
      We have other sources of revenues, primarily our API manufacturing
      business and certain contract manufacturing services. These other
      activities are not included in our North America, Europe or Growth
      Markets segments.
    </p>
    <p>
      Our <b>revenues</b> from other activities in the first quarter of 2018
      decreased by 2.6% to $342 million. In local currency terms, revenues
      decreased by 8%, mainly due to lower API sales to third parties.
    </p>
    <p>
      <b>API sales to third parties</b> in the first quarter of 2018 decreased
      by 9% to $179 million. In local currency terms, revenues decreased by
      10%, mainly due to the timing of certain shipments in the first quarter
      of 2018.
    </p>
    <p>
      <b>R&amp;D Pipeline Update</b>
    </p>
    <p>
      <b>fremanezumab</b> - We do not expect to receive FDA approval on our
      Biologics License Applications (BLA) for fremanezumab on the mid-June
      PDUFA date. We are engaged in a constructive dialogue with the FDA in
      close collaboration with our partner Celltrion, Inc. We expect an FDA
      pre-approval inspection to take place in the coming months and to
      receive FDA approval and launch before the end of 2018.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px" colspan="4">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Updated 2018 Non-GAAP Results Outlook</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Updated Guidance
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            May 2018
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Original Guidance
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            February 2018
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Revenues
        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          $18.5-19.0 billion
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          $18.3-18.8 billion
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Non-GAAP Operating Income
        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          $4.2-4.5 billion
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          $4.0-4.3 billion
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          EBITDA
        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          $4.9-5.2 billion
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          $4.7-5.0 billion
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Non-GAAP EPS
        </td>
        <td valign="bottom" style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $2.40-2.65
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $2.25-2.50
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Weighted average number of shares
        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          1,030 million
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          1,030 million
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Free cash flow
        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          $3.0-3.2 billion
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          $2.6-2.8 billion
        </td>
      </tr>
    </table>
    </div>
    <p>
      These estimates reflect management's current expectations for Teva's
      performance in 2018. Actual results may vary, whether as a result of
      exchange rate differences, market conditions or other factors. In
      addition, the non-GAAP measures exclude the amortization of purchased
      intangible assets, costs related to certain regulatory actions,
      inventory step-up, legal settlements and reserves, impairments and
      related tax effects.
    </p>
    <p>
      See &#8220;Non-GAAP Financial Measures&#8221; below.
    </p>
    <p>
      <u><b>Conference Call</b></u>
    </p>
    <p>
      Teva will host a conference call and live webcast along with a slide
      presentation on Thursday, May 3, 2018 at 8:00 a.m. ET to discuss its
      first quarter 2018 results and overall business environment. A question
      &amp; answer session will follow.
    </p>
    <p>
      In order to participate, please dial the following numbers (at least 15
      minutes before the scheduled start time):
    </p>
    <p>
      United States 1-866-254-0808
    </p>
    <p>
      International 44 (0) 1452 541003
    </p>
    <p>
      for a list of other international toll-free numbers, click here.
    </p>
    <p>
      Passcode: <b>9496209</b>
    </p>
    <p>
      A live webcast of the call will also be available on Teva's website at: <u>www.ir.tevapharm.com</u>.
      Please log in at least 10 minutes prior to the conference call in order
      to download the applicable audio software.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Following the conclusion of the call, a replay of the webcast will be
      available within 24 hours on Teva's website. The replay can also be
      accessed until May 31, 2018, 9:00 a.m. ET by calling United States
      1-866-247-4222 or International 44(0)1452550000; passcode: <b>9496209</b>.
    </p>
    <p>
      <u><b>About Teva</b></u>
    </p>
    <p>
      Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading
      global pharmaceutical company that delivers high-quality,
      patient-centric healthcare solutions used by millions of patients every
      day. Headquartered in Israel, Teva is the world&#8217;s largest generic
      medicines producer, leveraging its portfolio of more than 1,800
      molecules to produce a wide range of generic products in nearly every
      therapeutic area. In specialty medicines, Teva has a world-leading
      position in innovative treatments for disorders of the central nervous
      system, including pain, as well as a strong portfolio of respiratory
      products. Teva integrates its generics and specialty capabilities in its
      global research and development division to create new ways of
      addressing unmet patient needs by combining drug development
      capabilities with devices, services and technologies. Teva's net
      revenues in 2017 were $22.4 billion. For more information, visit <u>www.tevapharm.com</u>.
    </p>
    <p>
      <b>Non-GAAP Financial Measures</b>
    </p>
    <p>
      This press release contains certain financial information that differs
      from what is reported under accounting principles generally accepted in
      the United States (&quot;GAAP&quot;). These non-GAAP financial measures,
      including, but not limited to, non-GAAP EPS, non-GAAP operating income,
      non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP financial
      expenses, non-GAAP income taxes, non-GAAP net income and non-GAAP
      diluted EPS are presented in order to facilitates investors'
      understanding of our business. We utilize certain non-GAAP financial
      measures to evaluate performance, in conjunction with other performance
      metrics. The following are examples of how we utilize the non-GAAP
      measures: our management and board of directors use the non-GAAP
      measures to evaluate our operational performance, to compare against
      work plans and budgets, and ultimately to evaluate the performance of
      management; our annual budgets are prepared on a non-GAAP basis; and
      senior management&#8217;s annual compensation is derived, in part, using these
      non-GAAP measures. See the attached tables for a reconciliation of the
      GAAP results to the adjusted non-GAAP figures. Investors should consider
      non-GAAP financial measures in addition to, and not as replacements for,
      or superior to, measures of financial performance prepared in accordance
      with GAAP. We are not providing forward-looking guidance for GAAP
      reported financial measures or a quantitative reconciliation of
      forward-looking non-GAAP financial measures to the most directly
      comparable GAAP measure because we are unable to predict with reasonable
      certainty the ultimate outcome of certain significant items without
      unreasonable effort.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Cautionary Note Regarding Forward-Looking Statements</b>
    </p>
    <p>
      This press release contains forward-looking statements within the
      meaning of the Private Securities Litigation Reform Act of 1995, which
      are based on management&#8217;s current beliefs and expectations and are
      subject to substantial risks and uncertainties, both known and unknown,
      that could cause our future results, performance or achievements to
      differ significantly from that expressed or implied by such
      forward-looking statements. Important factors that could cause or
      contribute to such differences include risks relating to:
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        our ability to successfully compete in the marketplace, including:
        that we are substantially dependent on our generic products;
        competition for our specialty products, especially COPAXONE&#174;, our
        leading medicine, which faces competition from existing and potential
        additional generic versions and orally-administered alternatives;
        competition from companies with greater resources and capabilities;
        efforts of pharmaceutical companies to limit the use of generics
        including through legislation and regulations; consolidation of our
        customer base and commercial alliances among our customers; the
        increase in the number of competitors targeting generic opportunities
        and seeking U.S. market exclusivity for generic versions of
        significant products; price erosion relating to our products, both
        from competing products and increased regulation; delays in launches
        of new products and our ability to achieve expected results from
        investments in our product pipeline; our ability to take advantage of
        high-value opportunities; the difficulty and expense of obtaining
        licenses to proprietary technologies; and the effectiveness of our
        patents and other measures to protect our intellectual property rights<b>;</b>
      </li>
      <li style="margin-bottom: 10.0px">
        our substantially increased indebtedness and significantly decreased
        cash on hand, which may limit our ability to incur additional
        indebtedness, engage in additional transactions or make new
        investments, and may result in a further downgrade of our credit
        ratings; and our inability to raise debt or borrow funds in amounts or
        on terms that are favorable to us<b>;</b>
      </li>
      <li style="margin-bottom: 10.0px">
        our business and operations in general, including: failure to
        effectively execute our restructuring plan announced in December,
        2017; uncertainties related to, and failure to achieve, the potential
        benefits and success of our new senior management team and
        organizational structure; harm to our pipeline of future products due
        to the ongoing review of our R&amp;D programs; our ability to develop and
        commercialize additional pharmaceutical products; potential additional
        adverse consequences following our resolution with the U.S. government
        of our FCPA investigation; compliance with sanctions and other trade
        control laws; manufacturing or quality control problems, which may
        damage our reputation for quality production and require costly
        remediation; interruptions in our supply chain; disruptions of our or
        third party information technology systems or breaches of our data
        security; the failure to recruit or retain key personnel; variations
        in intellectual property laws that may adversely affect our ability to
        manufacture our products; challenges associated with conducting
        business globally, including adverse effects of political or economic
        instability, major hostilities or terrorism; significant sales to a
        limited number of customers in our U.S. market; our ability to
        successfully bid for suitable acquisition targets or licensing
        opportunities, or to consummate and integrate acquisitions; and our
        prospects and opportunities for growth if we sell assets<b> ;</b>
      </li>
      <li style="margin-bottom: 10.0px">
        compliance, regulatory and litigation matters, including: costs and
        delays resulting from the extensive governmental regulation to which
        we are subject; the effects of reforms in healthcare regulation and
        reductions in pharmaceutical pricing, reimbursement and coverage;
        governmental investigations into sales and marketing practices;
        potential liability for patent infringement; product liability claims;
        increased government scrutiny of our patent settlement agreements;
        failure to comply with complex Medicare and Medicaid reporting and
        payment obligations; and environmental risks<b>;</b>
      </li>
      <li style="margin-bottom: 10.0px">
        other financial and economic risks, including: our exposure to
        currency fluctuations and restrictions as well as credit risks;
        potential impairments of our intangible assets; potential significant
        increases in tax liabilities; and the effect on our overall effective
        tax rate of the termination or expiration of governmental programs or
        tax benefits, or of a change in our business<b>;</b>
      </li>
    </ul>
    <p>
      and other factors discussed in our Annual Report on Form 10-K for the
      year ended December 31, 2017, including in the section captioned &#8220;Risk
      Factors,&#8221; and in our other filings with the U.S. Securities and Exchange
      Commission, which are available at <u>www.sec.gov</u> and <u>www.tevapharm.com</u>.
      Forward-looking statements speak only as of the date on which they are
      made, and we assume no obligation to update or revise any
      forward-looking statements or other information contained herein,
      whether as a result of new information, future events or otherwise. You
      are cautioned not to put undue reliance on these forward-looking
      statements.
    </p>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="5">
          <b>Consolidated Statements of Income</b><br>(Unaudited, U.S. dollars
          in millions, except share and per share data)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="3">
          <b>Three months ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="3">
          <b>March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2018</b>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>(Unaudited)</b>
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>(Unaudited)</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Net revenues</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          5,065
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          5,650
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Cost of sales</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,717
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,811
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Gross profit</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,348
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,839
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Research and development expenses</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          317
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          432
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Selling and marketing expenses</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          771
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          958
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>General and administrative expenses</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          329
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          366
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Other asset impairments, restructuring and other items</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          707
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          240
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Goodwill impairment</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          180
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Legal settlements and loss contingencies</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (1,278)
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          20
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Other income</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (203)
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (72)
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Operating income</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,525
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          895
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Financial expenses &#8211; net</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          271
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          207
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Income before income taxes</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,254
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          688
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Income taxes</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          46
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          54
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Share in (profits) losses of associated companies, net</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          74
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (7)
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Net income</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,134
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          641
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Net income (loss) attributable to non-controlling interests</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          14
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (4)
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Net income attributable to Teva</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,120
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          645
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Dividends on preferred shares</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          65
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          65
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Net income attributable to Teva's ordinary shareholders</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,055
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          580
        </td>
      </tr>
      <tr>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Earnings per share attributable to ordinary shareholders:</b>
        </td>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Basic ($)</b>
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1.04
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.57
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">

        </td>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Diluted ($)</b>
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1.03
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.57
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Weighted average number of shares (in millions):</b>
        </td>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Basic</b>
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,017
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,016
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">

        </td>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Diluted</b>
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,020
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,017
        </td>
      </tr>
      <tr>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Non-GAAP net income attributable to ordinary shareholders:*</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          954
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,079
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Non-GAAP net income attributable to ordinary shareholders for
          diluted earnings per share:</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          954
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,079
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Non-GAAP earnings per share attributable to ordinary
          shareholders:*</b>
        </td>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Basic ($)</b>
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.94
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1.06
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">

        </td>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Diluted ($)</b>
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.94
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1.06
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Non-GAAP average number of shares (in millions):</b>
        </td>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Basic</b>
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,017
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,016
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom-style: solid; text-align: left; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          &#160;
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: left; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>Diluted</b>
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,020
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,017
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Condensed Consolidated Balance Sheets</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            (U.S. dollars in millions)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>(Unaudited)</b>
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          <b>March 31,</b>
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>ASSETS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Current assets:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,418
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          963
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Trade receivables
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          6,289
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7,128
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Inventories
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          5,113
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          4,924
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Prepaid expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,138
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,100
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Other current assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          712
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          701
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Assets held for sale
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          17
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          566
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Total current assets</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          14,687
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          15,382
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Deferred income taxes</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          463
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          574
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Other non-current assets</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          832
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          932
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Property, plant and equipment, net</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7,420
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7,673
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Identifiable intangible assets, net</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          17,314
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          17,640
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Goodwill</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          28,465
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          28,414
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Total assets</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          69,181
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          70,615
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>LIABILITIES &amp; EQUITY</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Current liabilities:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Short-term debt
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,302
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          3,646
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Sales reserves and allowances
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7,410
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7,881
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Trade payables
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,929
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,069
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Employee-related obligations
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          607
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          549
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Accrued expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,632
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          3,014
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Other current liabilities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          876
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          724
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Liabilities held for sale
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          38
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Total current liabilities</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          14,756
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          17,921
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Long-term liabilities:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,998
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          3,277
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Other taxes and long-term liabilities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,875
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,843
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Senior notes and loans
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          29,450
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          28,829
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Total long-term liabilities</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          34,323
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          33,949
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Equity:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Teva shareholders&#8217; equity
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          18,621
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          17,359
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Non-contolling interests
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,481
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,386
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Total equity</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          20,102
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          18,745
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Total liabilities and equity</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          69,181
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          70,615
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="4">
          <b>Condensed Consolidated Cash Flow</b><br>(U.S. Dollars in millions)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="3">
          <b>Three months ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="3">
          <b>March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>Unaudited</b>
        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>Unaudited</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Operating activities:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 15.0px">
          <b>Net income</b>
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,134
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          641
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 15.0px">
          <b>Net change in operating assets and liabilities</b>
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (592)
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (797)
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 15.0px">
          <b>Items not involving cash flow</b>
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          954
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          292
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Net cash provided by operating activities</b>
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,496
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          136
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Net cash provided by investing activities</b>
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,039
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,516
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Net cash used in financing activities</b>
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (2,091)
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (1,768)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Translation adjustment on cash and cash equivalents</b>
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          11
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          28
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Net change in cash and cash equivalents</b>
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          455
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (88)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Balance of cash and cash equivalents at beginning of period</b>
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          963
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          988
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          <b>Balance of cash and cash equivalents at end of period</b>
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,418
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          900
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="7">
          <b>Non GAAP reconciliation items</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="7">
          (U.S. Dollars in millions)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="6">
          <b>Three Months Ended</b>

          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>March 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="2">
          <b>(U.S. $ in millions)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Gain on divestitures, net of divestitures related costs
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (93)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Amortization of purchased intangible assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          310
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          320
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Restructuring expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          247
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          130
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Inventory step-up
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          64
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Capital loss from currency translation
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          52
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Equity compensation expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          30
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          36
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Costs related to regulatory actions taken in facilities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          34
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Acquisition, integration and related expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          23
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Other R&amp;D expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          22
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Contingent consideration
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          8
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          21
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Legal settlements and loss contingencies
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (1,278)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          20
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Goodwill impairment
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          180
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Impairment of long-lived assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          432
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          11
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Other non-GAAP items
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          49
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          15
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Financial expense (income)
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          68
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (28)
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Minority interest
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (8)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (13)
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Impairments of Equity Investments
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          94
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Tax effect
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (165)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (186)
        </td>
        <td>

        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="7">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Three Months Ended March 31, 2018</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="6">
          <b>Three Months Ended March 31, 2017</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="text-align: right; padding-left: 0.0px" colspan="9">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>U.S. dollars and shares in millions (except per share amounts)</b>
          </p>
        </td>
        <td>

        </td>
        <td colspan="6">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>GAAP</b>
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="2">
          <b>Non-GAAP Adjustments</b>
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>Dividends on Preferred Shares</b>
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="2">
          <b>Non-GAAP</b>
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>% of Net Revenues</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>GAAP</b>
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>Non-GAAP Adjustments</b>
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>Dividends on Preferred Shares</b>
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="2">
          <b>Non-GAAP</b>
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px">
          <b>% of Net Revenues</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Gross profit (1)
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,348
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          303
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,651
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          52%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,839
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          377
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          3,216
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          57%
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Operating income (loss) (1)(2)
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,525
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (90)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,435
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          28%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          895
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          726
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,621
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          29%
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Net income attributable to ordinary shareholders (1)(2)(3)(4)
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,055
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (101)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          954
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          19%
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          580
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          499
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,079
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          19%
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Earnings per share attributable to ordinary shareholders - diluted
          (5)
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1.03
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (0.09)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.94
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.57
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.49
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1.06
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (1)
        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Amortization of purchased intangible assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          264
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          267
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Inventory step-up
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          64
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Costs related to regulatory actions taken in facilities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          34
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Equity compensation expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          6
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          5
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Other COGS related adjustments
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          32
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Gross profit adjustments
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          303
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          377
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Gain on divestitures, net of divestitures related costs
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (93)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Goodwill impairment
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          180
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (2)
        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Restructuring expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          247
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          130
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Amortization of purchased intangible assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          46
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          53
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Capital loss on currency translation
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          52
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Equity compensation expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          24
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          31
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Acquisition, Integration and related expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          23
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Other R&amp;D expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          22
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Contingent consideration
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          8
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          21
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Legal settlements and loss contingencies
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (1,278)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          20
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Impairment of long-lived assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          432
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          11
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Other operating related adjustments
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          17
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          8
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (393)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          349
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Operating income adjustments
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (90)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          726
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (3)
        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Financial expense (income)
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          68
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (28)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Tax effect
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (165)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (186)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Impairments of Equity Investments
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          94
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Minority interest
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (8)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (13)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          Net income adjustments
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (101)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          499
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (4)
        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px" colspan="17">
          <p style="margin-top: 0px; margin-bottom: 0px">
            The non-GAAP diluted weighted average number of shares was 1,020
            and 1,017 million for the three months ended March 31, 2018 and
            2017,
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            respectively. For the three months ended March 31, 2018, the
            mandatory convertible preferred shares amounting to 64 million
            weighted average
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            shares had an anti-dilutive effect on earnings per share and were
            therefore excluded from the outstanding shares calculation.
            Non-GAAP earnings per
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            share can be reconciled with GAAP earnings per share by dividing
            each of the amounts included in footnotes 1-3 above by the
            applicable weighted
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            average share number.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="18">
          <b>Segment Information</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>North America</b>
        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Europe</b>
        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Growth Markets</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Three months ended March 31,</b>
        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Three months ended March 31,</b>
        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Three months ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="2">
          <b>(U.S. $ in millions)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="2">
          <b>(U.S. $ in millions)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="2">
          <b>(U.S. $ in millions)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Revenues
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,531
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          3,240
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,442
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,341
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          750
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          718
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Gross profit
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,432
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2,080
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          797
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          734
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          313
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          292
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          R&amp;D expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          188
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          267
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          73
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          106
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          24
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          47
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          S&amp;M expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          305
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          441
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          255
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          279
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          134
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          158
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          G&amp;A expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          126
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          139
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          91
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          79
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          41
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          48
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Other income
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (102)
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (73)
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          2
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (8)
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (1)
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          Segment profit
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          915
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,306
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          377
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-bottom: 4.0px; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          268
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          122
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          40
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="7">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Reconciliation of our segment profit </b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>to consolidated income before income taxes</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="5">
          <b>Three months ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="2">
          <b>(U.S.$ in millions)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          North America profit
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          915
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,306
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Europe profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          377
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          268
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Growth Market profit
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          122
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          40
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Total segment profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,414
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,614
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Profit of other activities
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          21
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,435
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,621
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Amounts not allocated to segments:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 35.0px">
          Amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          310
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          320
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 35.0px">
          Other asset impairments, restructuring and other items
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          707
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          240
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 35.0px">
          Goodwill impairment
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          180
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 35.0px">
          Gain on divestitures, net of divestitures related costs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (93)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 35.0px">
          Inventory step-up
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          64
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 35.0px">
          Other R&amp;D expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          22
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 35.0px">
          Costs related to regulatory actions taken in facilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          34
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 35.0px">
          Legal settlements and loss contingencies
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (1,278)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          20
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 35.0px">
          Other unallocated amounts
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          61
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          48
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Consolidated operating income
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,525
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          895
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px">
          Financial expenses - net
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          271
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-width: 1.0pt; border-bottom-color: black">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: right; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          207
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px">
          Consolidated income before income taxes
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,254
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; text-align: right; border-bottom-width: 2.25pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          688
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; text-indent: 0pt; width: 100%; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; font-size: 8pt; margin-bottom: 10.0px">
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="9">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Revenues by Activity and Geographical Area</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Unaudited)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Three months ended</b>
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>March 31,</b>
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Percentage</b>

          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Change</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-bottom: 2.0px; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2017-2018</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="5">
          <b>U.S.$ in millions</b>
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>North America segment</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Generics medicines
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,088
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,415
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (23%)
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          COPAXONE
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          476
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          797
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (40%)
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Bendeka and Trenda
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          181
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          156
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          16%
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          ProAir
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          130
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          121
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          7%
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          QVAR
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          107
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          84
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          27%
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          AUSTEDO
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          30
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          N/A
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Distribution
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          331
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          295
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          12%
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Three months ended</b>
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>March 31,</b>
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Percentage</b>

          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Change</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-bottom: 2.0px; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2017-2018</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="5">
          <b>U.S.$ in millions</b>
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Europe segment</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Generic medicines
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          997
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          850
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          17%
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          COPAXONE
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          153
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          152
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1%
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Respiratory products
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          113
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          84
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          35%
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>Three months ended</b>
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px" colspan="5">
          <b>March 31,</b>
        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px">
          <b>Percentage</b>

          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Change</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; text-align: center; border-bottom-width: 1.0pt; border-bottom-color: black; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; padding-bottom: 2.0px; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <b>2017-2018</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="5">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>U.S.$ in millions</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          <b>Growth Market segment</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Generics medicines
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          488
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          486
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.5%
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          COPAXONE
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          16
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          21
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (24%)
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px">
          Distribution
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          153
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          125
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          22%
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br><b>Teva Pharmaceutical Industries Ltd.</b><br><b>IR Contacts </b><br><b>United
      States </b><br>Kevin C. Mannix, 215- 591-8912<br>or<br><b>Israel </b><br>Ran
      Meir, 972 (3) 926 7516<br>or<br>Tomer Amitai, 972 (3) 926 7656<br>or<br><b>PR
      Contacts</b><br><b>United States</b><br>Doris Saltkill, 816- 391-8881<br>or<br><b>Israel</b><br>Yonatan
      Beker, 972 (54) 888 5898
    </p>
    <p>

    </p>
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</DOCUMENT>
</SEC-DOCUMENT>
