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v3.23.1

Fair Value Measurement (Tables) | 3 Months Ended
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Mar. 31, 2023
Summary of Financial Items Carried at Fair Value | Financial items carried at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 are classified in the tables below in one of the three categories of fair value levels:
|  | March 31, 2023 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
|  | (U.S. $ in millions) |
Cash and cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money markets |  | $ | 702 |  |  | $ | — |  |  | $ | — |  |  | $ | 702 |
Cash, deposits and other |  |  | 1,441 |  |  |  | — |  |  |  | — |  |  |  | 1,441 |
Investment in securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  | 10 |  |  |  | — |  |  |  | — |  |  |  | 10 |
Other |  |  | 6 |  |  |  | — |  |  |  | 1 |  |  |  | 7 |
Restricted cash |  |  | 33 |  |  |  | — |  |  |  | — |  |  |  | 33 |
Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options and forward contracts |  |  | — |  |  |  | 45 |  |  |  | — |  |  |  | 45 |
Cross currency interest rate swaps |  |  | — |  |  | § |  |  |  |  | — |  |  |  |  |
Liability derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options and forward contracts |  |  | — |  |  |  | (63 | ) |  |  | — |  |  |  | (63 | )
Bifurcated embedded derivatives |  |  | — |  |  |  | — |  |  | § |  |  |  |  | — |
Contingent consideration* |  |  | — |  |  |  | — |  |  |  | (148 | ) |  |  | (148 | )
Total |  | $ | 2,192 |  |  | $ | (18 | ) |  | $ | (147 | ) |  | $ | 2,027 |
|  | December 31, 2022 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
|  | (U.S. $ in millions) |
Cash and cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money markets |  | $ | 1,222 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,222 |
Cash, deposits and other |  |  | 1,579 |  |  |  | — |  |  |  | — |  |  |  | 1,579 |
Investment in securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  | 9 |  |  |  | — |  |  |  | — |  |  |  | 9 |
Other |  |  | 5 |  |  |  | — |  |  |  | 1 |  |  |  | 6 |
Restricted cash |  |  | 33 |  |  |  | — |  |  |  | — |  |  |  | 33 |
Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset derivatives—options and forward contracts |  |  | — |  |  |  | 29 |  |  |  | — |  |  |  | 29 |
Liability derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options and forward contracts |  |  | — |  |  |  | (101 | ) |  |  | — |  |  |  | (101 | )
Bifurcated embedded derivatives |  |  | — |  |  |  | — |  |  |  | § |  |  |  | — |
Contingent consideration* |  | $ | — |  |  |  | — |  |  |  | (153 | ) |  |  | (153 | )
Total |  |  | 2,848 |  |  | $ | (73 | ) |  | $ | (152 | ) |  | $ | 2,624 |
§ | Represents an amount less than $0.5 million.
* | Contingent consideration represents liabilities recorded at fair value in connection with acquisitions.
Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs | The following table summarizes the activity for the financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs:
|  | Three months ended March 31, 2023 |  |  | Three months ended March 31, 2022 |
|  | (U.S. $ in millions) |
Fair value at the beginning of the period |  | $ | (152 | ) |  |  | (175 | )
Bifurcated embedded derivatives |  |  | § |  |  |  | § |
Adjustments to provisions for contingent consideration: |  |  |  |  |  |  |  |
Actavis Generics transaction |  |  | (9 | ) |  |  | (31 | )
Eagle transaction |  |  | (11 | ) |  |  | (2 | )
Novetide transaction |  |  | (1 | ) |  |  | — |
Settlement of contingent consideration: |  |  |  |  |  |  |  |
Actavis Generics transaction |  |  | 2 |  |  |  | — |
Eagle transaction |  |  | 21 |  |  |  | 23 |
Novetide transaction |  |  | 2 |  |  |  |  |
Additional contingent consideration resulting from Novetide acquisition* |  |  | — |  |  |  | (11 | )
Fair value at the end of the period |  | $ | (148 | ) |  | $ | (196 | )
§ | Represents an amount less than $0.5 million.
* | In January 2022, Teva acquired 100% ownership of Novetide Ltd. (“Novetide”), which was previously accounted for as “investment in associated companies”. This transaction was accounted for as a business combination. Total consideration for the transaction included cash and certain contingent royalty payments through 2034. As part of the transaction, Teva recognized a gain under “Share in (profits) losses of associated companies, net”, reflecting the difference between the book value of its investment in Novetide and its fair value as of the date Teva completed its acquisition.
Summary of Financial Instrument Measured on a Basis Other Than Fair Value | Financial instruments measured on a basis other than fair value mostly consist of senior notes and convertible senior debentures (see note 7) and are presented in the table below in terms of fair value (level 1 inputs):
|  | Estimated fair value* |
|  | March 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
|  | (U.S. $ in millions) |
Senior notes and sustainability-linked senior notes included under senior notes and loans |  | $ | 18,007 |  |  | $ | 16,694 |
Senior notes and convertible senior debentures included under short-term debt |  |  | 1,013 |  |  |  | 2,075 |
Total |  | $ | 19,020 |  |  | $ | 18,769 |
* | The fair value was estimated based on quoted market prices.

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- Definition Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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