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Leases
12 Months Ended
Dec. 31, 2022
Leases
NOTE 8—Leases:
The components of operating lease cost for the years ended December 31, 2022, 2021 and 2020 were as follows:
 
   
Year ended
December 31,
   
Year ended
December 31,
   
Year ended
December 31,
 
   
2022
   
2021
   
2020
 
   
(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
  $ 142     $ 135     $ 148  
Variable lease payments not included in the lease liability
    4       4       4  
Short-term lease cost
    2       2       3  
   
 
 
   
 
 
   
 
 
 
    $ 148     $ 141     $ 155  
   
 
 
   
 
 
   
 
 
 
Supplemental cash flow information related to operating leases was as follows:
 
   
Year ended
December 31,
   
Year ended
December 31,
   
Year ended
December 31,
 
   
2022
   
2021
   
2020
 
   
(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
  $ 140     $ 143     $ 151  
Right-of-use
assets obtained in exchange for lease obligations
(non-cash):
                       
Operating leases
  $ 81     $ 81     $ 211  
Supplemental balance sheet information related to operating leases was as follows:
 
   
December 31,
   
December 31,
 
   
2022
   
2021
 
   
(U.S. $ in millions)
   
(U.S. $ in millions)
 
Operating leases:
               
Operating lease ROU assets
  $ 419     $ 495  
Other current liabilities
    93       109  
Operating lease liabilities
     349        416  
Total operating lease liabilities
  $ 442     $ 525  
   
 
 
   
 
 
 

 
  
December 31,
 
 
December 31,
 
 
  
2022
 
 
2021
 
Weighted average remaining lease term

 
 
 
 
 
 
 
 
Operating leases

    6.8 years       7.3 years  
Weighted average discount rate

 
 
 
 
 
 
 
 
Operating leases

    5.6     5.4
Maturities of operating lease liabilities were as follows:
 
    
December 31,
 
    
2022
 
    
(U.S. $ in millions)
 
202
3
     116  
202
4
     94  
202
5
     79  
202
6
     66  
202
7
 and thereafter
     188  
    
 
 
 
Total operating lease payments
   $ 543  
    
 
 
 
Less: imputed interest
     101  
    
 
 
 
Present value of lease liabilities
   $ 442  
    
 
 
 
In 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, 2022, Teva’s total finance lease assets and finance lease liabilities were $29 million and $22 million, respectively. As of December 31, 2021, total finance lease assets and finance lease liabilities were $32 million and $25 million, respectively. The difference between those amounts is mainly due to prepaid payments.