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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Schedule of Income Before Income Taxes
a.
Income (loss) before income taxes:
  
Year ended December 31,
 
  
2019
 
  
2018
 
  
2017
 
  
(U.S. $ in millions)
 
Parent Company and its Israeli subsidiaries
  $
542
    $
1,022
    $
1,451
 
Non-Israeli
subsidiaries
    
(1,807
)     
(3,618
 )    
(19,830
 )
                         
   $
(1,265
)    $
(2,596
 )   $
(18,379
 )
                         
Schedule of the Provision for Income Taxes
b.
Income taxes:
 
  
Year ended December 31,
 
  
2019
 
  
2018
 
  
2017
 
  
(U.S. $ in millions)
 
In Israel
  $
107
    $
131
    $
96
 
Outside Israel
   
(385
)     
(326
 )    
(2,029
 )
                         
   $
(278
)    $
(195
 )   $
(1,933
 )
                         
Current
  $
885
    $
700
    $
373
 
Deferred
   
(1,163
 )    
(895
 )    
(2,306
)
                         
   $
(278
 )   $
(195
 )   $
(1,933
)
                         
 
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)
 
2019
 
  
2018
 
  
2017
 
  
(U.S. $ in millions)
 
Income (
L
oss) before income taxes
  $
(1,265
)    $
(2,596
 )   $
(18,379
 )
Statutory tax rate in Israel
   
23.0
 %    
23.0
 %    
24.0
 %
                         
Theoretical provision for income taxes
  $
(291
)    $
(597
 )   $
(4,411
 )
Increase (decrease) in effective tax rate due to:
   
     
     
 
The Parent Company and its Israeli subsidiaries - Mainly tax benefits arising from reduced tax rates under benefit programs
   
(44
)     
(134
 )    
(253
 )
Non-Israeli
subsidiaries, including impairments (*)
    
(115
)     
381
     
3,817
 
U.S. Tax Cuts and Jobs Act effect
   
 
      
97
     
(1,061
 )
Increase (decrease) in other uncertain tax positions—net
   
172
     
58
     
(25
 )
                         
Effective consolidated income taxes
  $
(278
)    $
(195
 )   $
(1,933
 )
                         
*
In 2019,
i
ncome before income taxes includes intangible impairment
s
in
non-Israeli
subsidiaries with a corresponding tax effect. In 2017 and 2018,
i
ncome before income taxes includes goodwill impairment
s
in
non-Israeli
subsidiaries that did not have a corresponding tax effect.
Schedule of Deferred Income Taxes
c.
Deferred income taxes:
 
  
December 31,
 
  
2019
 
  
2018
 
  
(U.S. $ in millions)
 
Long-term deferred tax assets (liabilities)—net:
 
 
Inventory related
  $
144
    $
113
 
Sales reserves and allowances
   
198
     
199
 
Provision for legal settlements
   
260
     
42
 
Intangible assets (*)
   
(1,733
)     
(2,282
 )
Carryforward losses and deductions and credits (**)
   
1,689
     
1,340
 
Property, plant and equipment
   
(170
)     
(167
 )
Deferred interest
    
648
     
391
 
Provisions for employee related obligations
   
106
     
102
 
Other
   
122
     
123
 
                 
    
1,264
     
(139
 )
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized
(**)
   
(1,974
)     
(1,633
 )
                 
   $
(710
)    $
(1,772
 )
                 
 
* The decrease in deferred tax liability is mainly due to impairment and amortization.
** The amounts are shown after reduction for unrecognized tax benefits of
 
$
 115
 
million and $35 million as of December 31, 2019 and 2018, respectively.
Th
ese
 amount
s
represent the tax effect of gross carryforward losses and deductions with the following expirations: 2020-2022—$61 million; 2023-
2029—$672 million; 2030 and thereafter—$193 million. The remaining balance—$879 million—can be utilized with no expiration date.
Schedule of Deferred Tax Assets and Liabilities By Report Caption
The deferred income taxes are reflected in the balance sheets among:
 
December 31,
 
  
2019
 
  
2018
 
  
(U.S. $ in millions)
 
Long-term assets—deferred income taxes
   
386
     
368
 
Long-term liabilities—deferred income taxes
   
(1,096
)     
(2,140
 )
                 
   $
(710
)    $
(1,772
 )
                 
Schedule of Unrecognized Tax Benefits  
d.
Uncertain tax positions:
The following table summarizes the activity of Teva’s gross unrecognized tax benefits:
 
Year ended December 31,
 
  
2019
 
  
2018
 
  
2017
 
  
(U.S. $ in millions)
 
Balance at the beginning of the year
  $
1,072
    $
1,034
    $
734
 
Increase related to prior year tax positions, net
   
23
     
76
     
56
 
Increase related to current year tax positions
   
246
     
11
     
26
 
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations
   
(118
)     
(49
 )    
(56
 )
Liabilities assumed in acquisitions
   
—  
     
—  
      
273
 
Other
   
—  
     
—  
      
1
 
                         
Balance at the end of the year
  $
1,223
    $
1,072
    $
1,034