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Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2023

Summary of Financial Items Carried at Fair Value

Financial items carried at fair value as of December 31, 2023 and 2022 are classified in the tables below in one of the three categories described in note 1g:

		December 31, 2023
		Level 1				Level 2				Level 3				Total
		(U.S. $ in millions)
Cash and cash equivalents:
Money markets		$	1,704				—				—			$	1,704
Cash, deposits and other			1,522				—				—				1,522
Investment in securities:
Investment in convertible bond security			—				—				40				40
Equity securities			7				—				—				7
Other			1				—				—				1
Restricted cash			1				—				—				1
Derivatives:
Asset derivatives:
Options and forward contracts			—				38				—				38
Cross-currency interest rate swap			—				8				—				8
Liabilities derivatives:															—
Options and forward contracts			—				(39	)			—				(39	)
Bifurcated embedded derivatives			—				—			§					—
Contingent consideration*			—				—				(517	)			(517	)
Total		$	3,235			$	7			$	(477	)		$	2,765

		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*			—				—				(251	)			(251	)
Total		$	2,848			$	(73	)		$	(250	)		$	2,525

§ Represents an amount less than $0.5 million.

* Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long-term liabilities. The financial data presented in the tables above as of December 31, 2022 have been revised as discussed in note 1b.

Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs

The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs.

		December 31, 2023				December 31, 2022
		(U.S. $ in millions)
Fair value at the beginning of the period		$	(250	)		$	(175	)
Investment in convertible bond **			40				—
Bifurcated embedded derivatives			§				§
Additional contingent consideration resulting from Novetide acquisition*			—				(11	)
Adjustments to provisions for contingent consideration:
Allergan transaction***			(422	)			(240	)
Eagle transaction			(132	)			(21	)
Novetide transaction			2				—
Settlement of contingent consideration:
Allergan transaction			207				109
Eagle transaction			76				88
Novetide transaction			2				—
Fair value at the end of the period		$	(477	)		$	(250	)

§ 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.

** On September 29, 2023, Teva invested $40 million in subordinated convertible bonds, which were issued by Alvotech, pursuant to a convertible bond instrument dated December 20, 2022. (see note 2).

*** The financial data presented in the tables above with respect to adjustments to provisions for contingent consideration related to Allergan in 2022 have been revised as discussed in note 1b.

Summary of Financial Instrument Measured on a Basis Other Than Fair Value

Financial instruments measured on a basis other than fair value consist of senior notes, sustainability-linked senior notes and convertible senior debentures (see note 9), and are presented in the below table in terms of fair value:

		Estimated fair value*
		December 31,
		2023				2022
		(U.S. $ in millions)
Senior notes and sustainability-linked senior notes included under senior notes and loans		$	17,214			$	16,694
Senior notes and convertible senior debentures included under short-term debt			1,651				2,075
Total		$	18,865			$	18,769

* The fair value was estimated based on quoted market prices.

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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.

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