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Equity (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Stock Option Activity

A summary of the status of the options granted by Teva as of December 31, 2020, 2019 and 2018, 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,
		2020								2019								2018
		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			40,064			$	37.90				48,393			$	38.62				43,121			$	44.32
Changes during the year:
Granted			—				—				—				—				12,401				19.12
Exercised			—				—				(11	)			16.99				(84	)			17.01
Forfeited			(3,610	)			40.24				(8,318	)			42.12				(7,040	)			39.38
Expired			(1,220	)			49.35				—				—				(5	)			50.65
Balance outstanding at end of year			35,234				37.27				40,064				37.90				48,393				38.62
Balance exercisable at end of year			28,556				40.56				26,601				43.41				24,086				46.89

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,
		2020				2019				2018
Weighted average fair value			—				—			$	7.4

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,
		2020				2019				2018
Expected volatility			—				—				40	%
Risk-free interest rate			—				—				2.6	%
Expected term			—				—				5 years

Schedule of Ordinary Shares Issued Upon Outstanding Options

The following tables summarize information as of December 31, 2020 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
		Number of shares				$				Years
Lower than $15.01			592				11.40				6.84
$15.01  - $25.00			10,087				18.93				7.12
$25.01  - $35.00			7,221				34.61				6.16
$35.01  - $45.00			5,216				40.66				1.46
$45.01  - $55.00			7,895				51.06				4.10
$55.01  - $65.00			4,223				59.26				4.30
Total			35,234				37.27				5.07

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
		Number of shares				$				Years
Lower than $15.01			394				11.40				6.84
$15.01  - $25.00			5,431				18.81				7.09
$25.01  - $35.00			5,423				34.61				6.16
$35.01  - $45.00			5,216				40.66				1.46
$45.01  - $55.00			7,895				51.06				4.10
$55.01  - $65.00			4,197				59.28				4.30
Total			28,556				40.56				4.65

Schedule of the Number of RSUs Issued and Outstanding

The following table summarizes information about the number of RSUs and PSUs granted and outstanding:

		Year ended December 31,
		2020								2019								2018
		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			15,977			$	16.49				10,403			$	20.93				7,468			$	27.95
Granted			10,848				11.42				9,303				15.36				5,900				18.80
Vested			(4,324	)			19.49				(2,435	)			30.24				(1,638	)			37.30
Forfeited			(1,781	)			18.18				(1,294	)			18.74				(1,327	)			32.50
Balance outstanding at end of year			20,720				13.81				15,977				16.49				10,403				20.93

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, 2020, 2019 and 2018, the Company recorded stock-based compensation costs as follows:

		Year ended December 31,
		2020				2019				2018
		(U.S. $ in millions)
Employee stock options		$	30			$	46			$	74
RSUs and PSUs			99				73				81
Total stock-based compensation expense			129				119				155
Tax effect on stock-based compensation expense			14				14				18
Net effect		$	115			$	105			$	137

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
		(U.S. $ in millions)
Balance as of January 1, 2018		$	(1,139	)		$	(4	)		$	(619	)		$	(91	)		$	(1,853	)
Cumulative effect of new accounting standard**			—				5				—				—				5
Other comprehensive income/(loss) before reclassifications			(729	)			(1	)			87				4				(639	)
Amounts reclassified to the statements of income			—				1				28				13				42
Net other comprehensive income/(loss) before tax			(729	)			—				115				17				(597	)
Corresponding income tax			(10	)			—				—				(4	)			(14	)
Net other comprehensive income/(loss) after tax*			(739	)			—				115				13				(611	)
Balance as of December 31, 2018			(1,878	)			1				(504	)			(78	)			(2,459	)
Other comprehensive income/(loss) before reclassifications			100				(1	)			54				(11	)			142
Amounts reclassified to the statements of income			—				—				30				(10	)			20
Net other comprehensive income/(loss) before tax			100				(1	)			84				(21	)			162
Corresponding income tax			(16	)			—				—				1				(15	)
Net other comprehensive income/(loss) after tax*			84				(1	)			84				(20	)			147
Balance as of December 31, 2019			(1,794	)			—				(420	)			(98	)			(2,312	)
Other comprehensive income/(loss) before reclassifications			(190	)			—				22				(7	)			(175	)
Amounts reclassified to the statements of income			—				—				35				(12	)			23
Net other comprehensive income/(loss) before tax			(190	)			—				57				(19	)			(152	)
Corresponding income tax			65				—				—				1				66
Net other comprehensive income/(loss) after tax*			(125	)			—				57				(18	)			(86	)
Balance as of December 31, 2020		$	(1,919	)			—			$	(363	)		$	(117	)		$	(2,399	)

* Amounts do not include foreign currency translation adjustments attributable to non-controlling interests of $56 million gain in 2020, $14 million gain in 2019 and $26 million gain in 2018.

** 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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