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Derivative instruments and hedging activities (Tables) | 9 Months Ended
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Sep. 30, 2022
Summary of Classification and Fair Values of Derivative Instruments | The following table summarizes the classification and fair values of derivative instruments:
|  | Fair value |
|  | Not designated as hedging instruments |
|  | September 30, 2022 |  |  | December 31, 2021 |
Reported under |  | (U.S. $ in millions) |
Asset derivatives: |  |  |  |  |  |  |  |
Other current assets: |  |  |  |  |  |  |  |
Option and forward contracts |  | $ | 94 |  |  | $ | 30 |
Liability derivatives: |  |  |  |  |  |  |  |
Other current liabilities: |  |  |  |  |  |  |  |
Option and forward contracts |  |  | (53 | ) |  |  | (23 | )
Information Regarding The Location And Amount Of Pretax (Gains) Losses Of Derivatives Designated In Fair Value Or Cash Flow Hedging Relationships | The table below provides information regarding the location and amount of pre-tax (gains) losses from derivatives not designated as hedging instruments:
|  | Financial expenses, net |  |  | Net revenues |
|  | Three months ended, |  |  | Three months ended, |
|  | September 30, 2022 |  |  | September 30, 2021 |  |  | September 30, 2022 |  |  | September 30, 2021 |
Reported under |  | (U.S. $ in millions) |
Line items in which effects of hedges are recorded |  | $ | 252 |  |  | $ | 241 |  |  | $ | (3,595 | ) |  | $ | (3,887 | )
Option and forward contracts (1) |  |  | (6 | ) |  |  | (9 | ) |  |  | — |  |  |  | — |
Option and forward contracts economic hedge (2) |  |  | — |  |  |  | — |  |  |  | (34 | ) |  |  | (16 | )
|  | Financial expenses, net |  |  | Net revenues |
|  | Nine months ended, |  |  | Nine months ended, |
|  | September 30, 2022 |  |  | September 30, 2021 |  |  | September 30, 2022 |  |  | September 30, 2021 |
Reported under |  | (U.S. $ in millions) |
Line items in which effects of hedges are recorded |  | $ | 721 |  |  | $ | 805 |  |  | $ | (11,041 | ) |  | $ | (11,778 | )
Option and forward contracts (1) |  |  | (48 | ) |  |  | (51 | ) |  |  | — |  |  |  | — |
Option and forward contracts economic hedge (2) |  |  | — |  |  |  | — |  |  |  | (69 | ) |  |  | (29 | )
(1) | Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net.
(2) | Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, Swiss franc, Japanese yen, British pound, Canadian dollar , Polish zloty and some other currencies to protect its projected operating results for 202 2 and 202 3 . These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. In the first nine months of 2022, the positive impact from these derivatives recognized under revenues was $69 million. In the first nine months of 2021, the positive impact from these derivatives recognized under revenues was $29 million. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.

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- Definition Tabular disclosure for cash flow hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
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- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
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