Leases

12 Months Ended

Dec. 31, 2021

NOTE 8—Leases:

The components of operating lease cost for the years ended December 31, 2021, 2020 and 2019 were as follows:


	Year ended December 31,		Year ended December 31,		Year ended December 31,
	2021		2020		2019
	(U.S. $ in millions)		(U.S. $ in millions)		(U.S. $ in millions)
Operating lease cost:
Fixed payments and variable payments that depend on an index or rate	$	135	$	148	$	166
Variable lease payments not included in the lease liability		4		4		6
Short-term lease cost		2		3		6

	$	141	$	155	$	178

Supplemental cash flow information related to operating leases was as follows:


	Year ended December 31,		Year ended December 31,		Year ended December 31,
	2021		2020		2019
	(U.S. $ in millions)		(U.S. $ in millions)		(U.S. $ in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	143	$	151	$	169
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases	$	81	$	211	$	142

Supplemental balance sheet information related to operating leases was as follows:


	December 31,		December 31,
	2021		2020
	(U.S. $ in millions)		(U.S. $ in millions)
Operating leases:
Operating lease ROU assets	$	495	$	559
Other current liabilities		109		116
Operating lease liabilities		416		479

Total operating lease liabilities	$	525	$	595


	December 31,			December 31,
	2021			2020
Weighted average remaining lease term
Operating leases		7.3 years			7.5 years
Weighted average discount rate
Operating leases		5.4	%		5.2	%

Maturities of operating lease liabilities were as follows:


	December 31,
	2021
	(U.S. $ in millions)
2022	$	133
2023		106
2024		81
2025		71
2026 and thereafter		255

Total operating lease payments	$	646

Less: imputed interest		121

Present value of lease liabilities	$	525

At the end of the third quarter of 2020, after obtaining the right to use the building, Teva began transitioning its corporate headquarters to a consolidated site in Tel-Aviv, Israel. Teva has an operating lease for the office space in Tel Aviv for an initial term of twelve and a half years, with an option for three extensions. Teva estimates that the reasonably certain holding period of the lease for accounting purposes is twelve and a half years. As of September 30, 2020, upon initial recognition, Teva booked $74 million as operating lease ROU assets and $66 million as operating lease liability.

As of December 31, 2021, Teva’s total finance lease assets and finance lease liabilities were $32 million and $25 million, respectively. As of December 31, 2020, total finance lease assets and finance lease liabilities were $29 million and $21 million, respectively. The difference between those amounts is mainly due to prepaid payments.