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Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Financial Items Carried at Fair Value

Financial items carried at fair value as of December 31, 2019 and 2018 are classified in the tables below in one of the three categories described in note 1g:

		December 31, 2019
		Level 1				Level 2				Level 3				Total
		(U.S. $ in millions)
Cash and cash equivalents:
Money markets		$	577			$	—			$	—			$	577
Cash, deposits and other			1,398				—				—				1,398
Investment in securities:
Equity securities			42				—				—				42
Other, mainly debt securities			2				—				12				14
Derivatives:
Asset derivatives—options and forward contracts			—				32				—				32
Liabilities derivatives—options and forward contracts			—				(41	)			—				(41	)
Liabilities derivatives—interest rate and cross-currency swaps			—				(22	)			—				(22	)
Contingent consideration*			—				—				(460	)			(460	)
Total		$	2,019			$	(31	)		$	(448	)		$	1,540

		December 31, 2018
		Level 1				Level 2				Level 3				Total
		(U.S. $ in millions)
Cash and cash equivalents:
Money markets		$	203			$	—			$	—			$	203
Cash, deposits and other			1,579				—				—				1,579
Investment in securities:
Equity securities			51				—				—				51
Other, mainly debt securities			2				—				10				12
Derivatives:
Asset derivatives—options and forward contracts			—				18				—				18
Asset derivatives—cross-currency swaps			—				58				—				58
Liability derivatives—options and forward contracts			—				(26	)			—				(26	)
Liabilities derivatives—interest rate and cross-currency swaps			—				(50	)			—				(50	)
Contingent consideration*			—				—				(507	)			(507	)
Total		$	1,835			$	—			$	(497	)		$	1,338

* Contingent consideration represents liabilities recorded at fair value in connection with acquisitions.

Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs

The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs.

		December 31, 2019				December 31, 2018
		(U.S. $ in millions)
Fair value at the beginning of the period		$	(497	)		$	(717	)
Investment in debt securities			2				(8	)
Adjustments to provisions for contingent consideration:
Actavis Generics transaction			92				—
Labrys acquisition			—				(17	)
Eagle transaction			(151	)			(40	)
Settlement of contingent consideration:
Labrys acquisition			—				151
Eagle transaction			106				134
Fair value at the end of the period		$	(448	)		$	(497	)

Summary of Financial Instrument Measured on a Basis Other Than Fair Value

Financial instruments measured on a basis other than fair value consist of senior notes and convertible senior debentures (see note 9), and are presented in the below table in terms of fair value:

		Estimated fair value*
		December 31,
		2019				2018
		(U.S. $ in millions)
Senior notes included under long-term liabilities		$	22,686			$	23,560
Senior notes and convertible senior debentures included under short-term liabilities			2,318				2,140
Fair value at the end of the period		$	25,004			$	25,700
* The fair value was estimated based on quoted market prices.

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- Definition

Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2.

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Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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