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Equity (Tables)
 12 Months Ended
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.