XML 59 R44.htm IDEA: XBRL DOCUMENT v3.10.0.1

Equity (Tables)

12 Months Ended

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

X

- 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

Name:	us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of accumulated other comprehensive income (loss).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669686-108580

+ Details

Name:	us-gaap_ScheduleOfAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the number and weighted-average grant date fair value for restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock units that were granted, vested, or forfeited during the year.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901

+ Details

Name:	us-gaap_ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References

Reference 1: 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

Name:	us-gaap_ScheduleOfShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901

+ Details

Name:	us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901

+ Details

Name:	us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the weighted-average grant-date fair value of equity options or other equity instruments granted during the year.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (d)(1)
-URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901

+ Details

Name:	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValueTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of number, weighted-average exercise price or conversion ratio, aggregate intrinsic value, and weighted-average remaining contractual term for exercisable or convertible options that are fully vested and expected to vest. Includes, but is not limited to, unvested options for which requisite service period has not been rendered but that are expected to vest based on achievement of performance condition, if forfeitures are recognized when they occur.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=109197908&loc=d3e5070-113901

+ Details

Name:	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration