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Equity (Tables) | 12 Months Ended
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Dec. 31, 2019
Summary of Stock Option Activity | A summary of the status of the options as of December 31, 2019, 2018 and 2017, 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, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | Number (in thousands) |  |  | Weighted average exercise price |  |  | Number (in thousands) |  |  | Weighted average exercise price |  |  | Number (in thousands) |  |  | Weighted average exercise price |
Balance outstanding at begin n ing of year |  |  | 48,393 |  |  | $ | 38.62 |  |  |  | 43,121 |  |  | $ | 44.32 |  |  |  | 32,789 |  |  | $ | 50.71 |
Changes during the year: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Granted |  |  | — |  |  |  | — |  |  |  | 12,401 |  |  |  | 19.12 |  |  |  | 15,467 |  |  |  | 32.08 |
Exercised |  |  | (11 | ) |  |  | 16.99 |  |  |  | (84 | ) |  |  | 17.01 |  |  |  | (7 | ) |  |  | 17.44 |
Forfeited |  |  | (8,318 | ) |  |  | 42.12 |  |  |  | (7,040 | ) |  |  | 39.38 |  |  |  | (4,953 | ) |  |  | 47.92 |
Expired |  |  | — |  |  |  | — |  |  |  | (5 | ) |  |  | 50.65 |  |  |  | (175 | ) |  |  | 59.81 |
Balance outstanding at end of year |  |  | 40,064 |  |  |  | 37.90 |  |  |  | 48,393 |  |  |  | 38.62 |  |  |  | 43,121 |  |  |  | 44.32 |
Balance exercisable at end of year |  |  | 26,601 |  |  |  | 43.41 |  |  |  | 24,086 |  |  |  | 46.89 |  |  |  | 19,129 |  |  |  | 47.94 |
Summary of Weighted Average Fair Value of Options Granted | The weighted average fair value of options granted during these years was generally estimated by using the Black-Scholes option-pricing model as follows:
|  | Year ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Weighted average fair value |  |  | — |  |  | $ | 7.4 |  |  | $ | 5.7 |
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, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Dividend yield |  |  | — |  |  |  | 0 | % |  |  | 3.7 | %
Expected volatility |  |  | — |  |  |  | 40 | % |  |  | 29 | %
Risk-free interest rate |  |  | — |  |  |  | 2.6 | % |  |  | 2.1 | %
Schedule of Ordinary Shares Issued Upon Outstanding Options | The following tables summarize information a s of December 31, 2019 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 |  |  | 592 |  |  |  | 11.40 |  |  |  | 7.85 |  |  |  | — |
$15.01 - $25.00 |  |  | 10,938 |  |  |  | 18.94 |  |  |  | 8.13 |  |  |  | — |
$25.01 - $35.00 |  |  | 7,914 |  |  |  | 34.62 |  |  |  | 7.16 |  |  |  | — |
$35.01 - $45.00 |  |  | 5,511 |  |  |  | 40.59 |  |  |  | 2.49 |  |  |  | — |
$45.01 - $55.00 |  |  | 10,328 |  |  |  | 50.74 |  |  |  | 4.53 |  |  |  | — |
$55.01 - $65.00 |  |  | 4,781 |  |  |  | 59.20 |  |  |  | 5.31 |  |  |  | — |
Total |  |  | 40,064 |  |  |  | 37.90 |  |  |  | 5.89 |  |  |  | — |
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 |  |  | $ |
Lower than $15.01 |  |  | 197 |  |  |  | 11.40 |  |  |  | 7.85 |  |  |  | — |
$15.01 - $25.00 |  |  | 3,211 |  |  |  | 18.57 |  |  |  | 8.05 |  |  |  | — |
$25.01 - $35.00 |  |  | 3,983 |  |  |  | 34.61 |  |  |  | 7.16 |  |  |  | — |
$35.01 - $45.00 |  |  | 5,511 |  |  |  | 40.59 |  |  |  | 2.49 |  |  |  | — |
$45.01 - $55.00 |  |  | 9,165 |  |  |  | 50.43 |  |  |  | 4.32 |  |  |  | — |
$ 55.01 - $ 65.00 |  |  | 4,534 |  |  |  | 59.37 |  |  |  | 5.27 |  |  |  | — |
Total |  |  | 26,601 |  |  |  | 43.41 |  |  |  | 5.00 |  |  |  | — |
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, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | 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 |  |  | 10,403 |  |  | $ | 20.93 |  |  |  | 7,468 |  |  | $ | 27.95 |  |  |  | 4,636 |  |  | $ | 45.15 |
Granted |  |  | 9,303 |  |  |  | 15.36 |  |  |  | 5,900 |  |  |  | 18.80 |  |  |  | 5,461 |  |  |  | 20.10 |
Vested |  |  | (2,435 | ) |  |  | 30.24 |  |  |  | (1,638 | ) |  |  | 37.30 |  |  |  | (1,884 | ) |  |  | 39.63 |
Forfeited |  |  | (1,294 | ) |  |  | 18.74 |  |  |  | (1,327 | ) |  |  | 32.50 |  |  |  | (745 | ) |  |  | 42.84 |
Balance outstanding at end of year |  |  | 15,977 |  |  |  | 16.49 |  |  |  | 10,403 |  |  |  | 20.93 |  |  |  | 7,468 |  |  |  | 27.95 |
Summary of Company Expenses Compensation Costs Based on Grant Date Fair Value | The Company expenses compensation costs are based on the grant-date fair value. For the years ended December 31, 2019, 2018 and 2017, the Company recorded stock-based compensation costs as follows:
|  | Year ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | (U.S. $ in millions) |
Employee stock options |  | $ | 46 |  |  | $ | 74 |  |  | $ | 64 |
RSUs and PSUs |  |  | 73 |  |  |  | 81 |  |  |  | 69 |
Total stock-based compensation expense |  |  | 119 |  |  |  | 155 |  |  |  | 133 |
Tax effect on stock-based compensation expense |  |  | 14 |  |  |  | 18 |  |  |  | 24 |
Net effect |  | $ | 105 |  |  | $ | 137 |  |  | $ | 109 |
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, 201 7 |  |  | (2,592 | ) |  |  | (7 | ) |  |  | (479 | ) |  |  | (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 |  |  | (1,139 | ) |  |  | (4 | ) |  |  | (619 | ) |  |  | (91 | ) |  |  | (1,853 | )
Cumulative effect of new accounting standard ** |  |  | — |  |  |  | 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 |  |  | (1,878 | ) |  |  | 1 |  |  |  | (504 | ) |  |  | (78 | ) |  |  | (2,459 | )
Other comprehensive income/(loss) before reclassifications |  |  | 84 |  |  |  | (1 | ) |  |  | 54 |  |  |  | (11 | ) |  |  | 126 |
Amounts reclassified to the statements of income |  |  |  |  |  |  |  |  |  |  | 30 |  |  |  | (10 | ) |  |  | 20 |
Net other comprehensive income/(loss) before tax |  |  | 84 |  |  |  | (1 | ) |  |  | 84 |  |  |  | (21 | ) |  |  | 146 |
Corresponding income tax |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 1 |
Net other comprehensive income/(loss) after tax* |  |  | 84 |  |  |  | (1 | ) |  |  | 84 |  |  |  | (20 | ) |  |  | 147 |
Balance, December 31, 2019 |  |  | (1,794 | ) |  |  | — |  |  |  | (420 | ) |  |  | (98 | ) |  |  | (2,312 | )
* | Amounts do not include foreign currency translation adjustments attributable to non-controlling interests of $14 million gain in 201 9 , $26 million gain in 201 8 and $63 million loss in 201 7 .
** | Following the adoption of ASU 2016-01, the Company recorded a $5 million opening balance reclassification from accumulated other comprehensive income to retained earnings.

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