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Equity (Tables) | 12 Months Ended
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Dec. 31, 2018
Summary of Stock Option Activity | A summary of the status of the options as of December 31, 2018, 2017 and 2016, and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercisable in respect thereof).
|  | Year ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | Number (in thousands) |  |  | Weighted average exercise price |  |  | Number (in thousands) |  |  | Weighted average exercise price |  |  | Number (in thousands) |  |  | Weighted average exercise price |
Balance outstanding at beginning of year |  |  | 43,121 |  |  | $ | 44.32 |  |  |  | 32,789 |  |  | $ | 50.71 |  |  |  | 25,233 |  |  | $ | 49.69 |
Changes during the year: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Granted |  |  | 12,401 |  |  |  | 19.12 |  |  |  | 15,467 |  |  |  | 32.08 |  |  |  | 10,895 |  |  |  | 53.21 |
Exercised |  |  | (84 | ) |  |  | 17.01 |  |  |  | (7 | ) |  |  | 17.44 |  |  |  | (766 | ) |  |  | 44.24 |
Forfeited |  |  | (7,040 | ) |  |  | 39.38 |  |  |  | (4,953 | ) |  |  | 47.92 |  |  |  | (1,382 | ) |  |  | 54.09 |
Expired |  |  | (5 | ) |  |  | 50.65 |  |  |  | (175 | ) |  |  | 59.81 |  |  |  | (1,191 | ) |  |  | 52.79 |
Balance outstanding at end of year |  |  | 48,393 |  |  |  | 38.62 |  |  |  | 43,121 |  |  |  | 44.32 |  |  |  | 32,789 |  |  |  | 50.71 |
Balance exercisable at end of year |  |  | 24,086 |  |  |  | 46.89 |  |  |  | 19,129 |  |  |  | 47.94 |  |  |  | 14,468 |  |  |  | 46.06 |
Summary of Weighted Average Fair Value of Options Granted | The weighted average fair value of options granted during the years was generally estimated by using the Black-Scholes option-pricing model as follows:
|  | Year ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Weighted average fair value |  | $ | 7.4 |  |  | $ | 5.7 |  |  | $ | 9.4 |
Summary of Fair Value of Options Estimated on Date of Grant Based on Weighted Average Assumptions | The fair value of these options was estimated on the date of grant, based on the following weighted average assumptions:
|  | Year ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Dividend yield |  |  | 0 | % |  |  | 3.7 | % |  |  | 2.6 | %
Expected volatility |  |  | 40 | % |  |  | 29 | % |  |  | 25 | %
Risk-free interest rate |  |  | 2.6 | % |  |  | 2.1 | % |  |  | 1.4 | %
Expected term |  |  | 5 years |  |  |  | 5 years |  |  |  | 5 years |
Schedule of Ordinary Shares Issued Upon Outstanding Options | The following tables summarize information at December 31, 2018 regarding the number of ordinary shares issuable upon (1) outstanding options and (2) vested options:
(1) Number of ordinary shares issuable upon exercise of outstanding options |
Range of exercise prices |  | Balance at end of period (in thousands) |  |  | Weighted average exercise price |  |  | Weighted average remaining life |  |  | Aggregate intrinsic value (in millions) |
|  | Number of shares |  |  | $ |  |  | Years |  |  | $ |
Lower than $15.01 |  |  | 593 |  |  |  | 11.40 |  |  |  | 8.85 |  |  |  | 2.4 |
$15.01 - $25.00 |  |  | 12,398 |  |  |  | 18.92 |  |  |  | 9.13 |  |  |  | * |
$25.01 - $35.00 |  |  | 9,615 |  |  |  | 34.63 |  |  |  | 8.17 |  |  |  | — |
$35.01 - $45.00 |  |  | 6,703 |  |  |  | 40.57 |  |  |  | 3.58 |  |  |  | — |
$45.01 - $55.00 |  |  | 12,908 |  |  |  | 50.84 |  |  |  | 5.64 |  |  |  | — |
$55.01 - $65.00 |  |  | 6,167 |  |  |  | 59.34 |  |  |  | 6.30 |  |  |  | — |
$65.01 - $70.00 |  |  | 9 |  |  |  | 66.85 |  |  |  | 0.03 |  |  |  | — |
Total |  |  | 48,393 |  |  |  | 38.62 |  |  |  | 6.87 |  |  |  | 2.4 |
Schedule of Ordinary Shares Issued Upon Vested Options |
(2) Number of ordinary shares issuable upon exercise of vested options |
Range of exercise prices |  | Balance at end of period (in thousands) |  |  | Weighted average exercise price |  |  | Weighted average remaining life |  |  | Aggregate intrinsic value (in millions) |
|  | Number of shares |  |  | $ |  |  | Years |  |  | $ |
$15.01 - $25.00 |  |  | 548 |  |  |  | 16.99 |  |  |  | 8.68 |  |  |  | * |
$25.01 - $35.00 |  |  | 2,464 |  |  |  | 34.60 |  |  |  | 8.18 |  |  |  | — |
$35.01 - $45.00 |  |  | 6,655 |  |  |  | 40.59 |  |  |  | 3.55 |  |  |  | — |
$45.01 - $55.00 |  |  | 10,041 |  |  |  | 50.17 |  |  |  | 5.17 |  |  |  | — |
$55.01 - $65.00 |  |  | 4,369 |  |  |  | 59.58 |  |  |  | 6.25 |  |  |  | — |
$65.01 - $70.00 |  |  | 9 |  |  |  | 66.85 |  |  |  | 0.03 |  |  |  | — |
Total |  |  | 24,086 |  |  |  | 46.89 |  |  |  | 5.30 |  |  |  | * |
* | Represents an amount less than 0.5 million.
Schedule of the Number of RSUs Issued and Outstanding | The following table summarizes information about the number of RSUs and PSUs issued and outstanding:
|  | Year ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | Number (in thousands) |  |  | Weighted average grant date fair value |  |  | Number (in thousands) |  |  | Weighted average grant date fair value |  |  | Number (in thousands) |  |  | Weighted average grant date fair value |
Balance outstanding at beginning of year |  |  | 7,468 |  |  | $ | 27.95 |  |  |  | 4,636 |  |  | $ | 45.15 |  |  |  | 2,551 |  |  | $ | 51.43 |
Granted |  |  | 5,900 |  |  |  | 18.80 |  |  |  | 5,461 |  |  |  | 20.10 |  |  |  | 3,193 |  |  |  | 40.78 |
Vested |  |  | (1,638 | ) |  |  | 37.30 |  |  |  | (1,884 | ) |  |  | 39.63 |  |  |  | (830 | ) |  |  | 45.79 |
Forfeited |  |  | (1,327 | ) |  |  | 32.5 |  |  |  | (745 | ) |  |  | 42.84 |  |  |  | (278 | ) |  |  | 46.08 |
Balance outstanding at end of year |  |  | 10,403 |  |  |  | 20.93 |  |  |  | 7,468 |  |  |  | 27.95 |  |  |  | 4,636 |  |  |  | 45.15 |
Summary of Company Expenses Compensation Costs Based on Grant Date Fair Value | The Company expenses compensation costs based on the grant-date fair value. For the years ended December 31, 2018, 2017 and 2016, the Company recorded stock-based compensation costs as follows:
|  | Year ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (U.S. $ in millions) |
Employee stock options |  | $ | 74 |  |  | $ | 64 |  |  | $ | 56 |
RSUs and PSUs |  |  | 81 |  |  |  | 69 |  |  |  | 66 |
Total stock-based compensation expense |  |  | 155 |  |  |  | 133 |  |  |  | 122 |
Tax effect on stock-based compensation expense |  |  | 18 |  |  |  | 24 |  |  |  | 26 |
Net effect |  | $ | 137 |  |  | $ | 109 |  |  | $ | 96 |
Accumulated Other Comprehensive Income/(Loss) (Net of Tax) | The components of accumulated other comprehensive loss attributable to Teva are presented in the table below:
|  | Net Unrealized Gains/(Losses) |  |  | Benefit Plans |  |  |  |
|  | Foreign currency translation adjustments |  |  | Available-for- sale securities |  |  | Derivative financial instruments |  |  | Actuarial gains/(losses) and prior service (costs)/credits |  |  | Total |
Balance, January 1, 2016 |  |  | (2,384 | ) |  |  | 312 |  |  |  | 175 |  |  |  | (58 | ) |  |  | (1,955 | )
Other comprehensive loss before reclassifications |  |  | (355 | ) |  |  | (456 | ) |  |  | (491 | ) |  |  | (26 | ) |  |  | (1,328 | )
Amounts reclassified to the statements of income |  |  | 3 |  |  |  | 140 |  |  |  | 14 |  |  |  | (6 | ) |  |  | 151 |
Net other comprehensive loss before tax |  |  | (352 | ) |  |  | (316 | ) |  |  | (477 | ) |  |  | (32 | ) |  |  | (1,177 | )
Corresponding income tax |  |  | (33 | ) |  |  | (3 | ) |  |  | — |  |  |  | 9 |  |  |  | (27 | )
Net other comprehensive loss after tax* |  |  | (385 | ) |  |  | (319 | ) |  |  | (477 | ) |  |  | (23 | ) |  |  | (1,204 | )
Balance, December 31, 2016 |  |  | (2,769 | ) |  |  | (7 | ) |  |  | (302 | ) |  |  | (81 | ) |  |  | (3,159 | )
Other comprehensive income/(loss) before reclassifications |  |  | 1,075 |  |  |  | 64 |  |  |  | (167 | ) |  |  | (3 | ) |  |  | 969 |
Amounts reclassified to the statements of income |  |  | 378 |  |  |  | (66 | ) |  |  | 27 |  |  |  | (5 | ) |  |  | 334 |
Net other comprehensive income/(loss) before tax |  |  | 1,453 |  |  |  | (2 | ) |  |  | (140 | ) |  |  | (8 | ) |  |  | 1,303 |
Corresponding income tax |  |  | — |  |  |  | 5 |  |  |  | — |  |  |  | (2 | ) |  |  | 3 |
Net other comprehensive income/(loss) after tax* |  |  | 1,453 |  |  |  | 3 |  |  |  | (140 | ) |  |  | (10 | ) |  |  | 1,306 |
Balance, December 31, 2017 |  |  | (1,316 | ) |  |  | (4 | ) |  |  | (442 | ) |  |  | (91 | ) |  |  | (1,853 | )
Cumulative effect of new accounting standard (See Note 1) |  |  | — |  |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | 5 |
Other comprehensive income/(loss) before reclassifications |  |  | (739 | ) |  |  | (1 | ) |  |  | 87 |  |  |  | 4 |  |  |  | (649 | )
Amounts reclassified to the statements of income |  |  |  |  |  |  | 1 |  |  |  | 28 |  |  |  | 13 |  |  |  | 42 |
Net other comprehensive income/(loss) before tax |  |  | (739 | ) |  |  | — |  |  |  | 115 |  |  |  | 17 |  |  |  | (607 | )
Corresponding income tax |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4 | ) |  |  | (4 | )
Net other comprehensive income/(loss) after tax* |  |  | (739 | ) |  |  | — |  |  |  | 115 |  |  |  | 13 |  |  |  | (611 | )
Balance, December 31, 2018 |  |  | (2,055 | ) |  |  | 1 |  |  |  | (327 | ) |  |  | (78 | ) |  |  | (2,459 | )
* | Amounts do not include foreign currency translation adjustments attributable to non-controlling interests of $26 million gain in 2018, $63 million loss in 2017 and $60 million loss in 2016

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- Definition Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5047-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901 + Details
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