Earnings (Loss) per Share

12 Months Ended

Dec. 31, 2021

NOTE 18—Earnings (loss) per share:

Net income (loss) attributable to Teva and weighted average number of ordinary shares used in the computation of basic and diluted earnings (loss) per share for the years ended December 31, 2021, 2020 and 2019 are as follows:


	Year ended December, 31
	2021		2020			2019
	(U.S. $ in millions, except share data)
Net income (loss) used for the computation of basic and diluted earnings (loss) per share		417	$	(3,990	)	$	(999	)

Weighted average number of shares used in the computation of basic earnings (loss) per share		1,102		1,095			1,091

Weighted average number of shares used in the computation of diluted earnings (loss) per share		1,107		1,095			1,091

Basic earnings and loss per share are computed by dividing net income (loss) attributable to Teva’s ordinary shareholders by the weighted average number of ordinary shares outstanding (including fully vested restricted share units (“RSUs”) and performance share units (“PSUs”) during the period, net of treasury shares.

In computing diluted earnings per share for the year ended December 31, 2021, basic earnings per share were adjusted to take into account the potential dilution that could occur upon the exercise of options and non-vested RSUs and PSUs granted under employee stock compensation plans, amounting to 5 million weighted average shares, using the treasury stock method. No account was taken of the potential dilution by the convertible senior debentures, since they had an anti-dilutive effect on earnings per share.

In computing diluted loss per share for the years ended December 31, 2020 and 2019, no account was taken of the potential dilution that could occur upon the exercise of options and non-vested RSUs and PSUs granted under employee stock compensation plans, amounting to 104 million and 113 million weighted average shares, respectively, and convertible senior debentures, since they had an anti-dilutive effect on loss per share.

Basic and diluted earnings per share was $0.38 for the year ended December 31, 2021, compared to basic and diluted loss per share of $3.64 and $0.91 for the years ended December 31, 2020 and December 31, 2019, respectively.