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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Schedule of Income Before Income Taxes
a.
Income (loss) before income taxes:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Parent Company and its Israeli subsidiaries
    $ (456 )     $ (767 )     $ (119 ) 
Non-Israeli
subsidiaries
      (828 )      143        (3,044 ) 
  
 
 
     
 
 
     
 
 
  
   $ (1,284 )    $ (624 )     $ (3,163 ) 
  
 
 
     
 
 
     
 
 
  
Schedule of the Provision for Income Taxes
b. Income taxes:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
In Israel
    $ 721      $ (402 )     $ 33  
Outside Israel
      (45 )       395        (676 ) 
  
 
 
     
 
 
     
 
 
  
   $ 676      $ (7 )     $ (643 ) 
  
 
 
     
 
 
     
 
 
  
Current
    $ 1,094      $ 333      $ 430  
Deferred
      (418 )       (340 )       (1,073 ) 
  
 
 
     
 
 
     
 
 
  
   $ 676      $ (7 )     $ (643 ) 
  
 
 
     
 
 
     
 
 
  
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)
 
  
2024
 
 
2023
 
 
2022
 
 
  
(U.S. $ in millions)
 
Income (loss) before income taxes
    $ (1,284 )   $ (624 )    $ (3,163 ) 
Statutory tax rate in Israel
      23 %      23 %      23 % 
  
 
 
    
 
 
    
 
 
  
Theoretical provision for income taxes
    $ (295 )   $ (144 )    $ (727 ) 
Increase (decrease) in the provision for income taxes due to:
       
Tax benefits arising from net deferred taxes, resulting from intellectual property related integration plans, including carryforward losses
      (87)     (272)   — 
The Parent Company and its Israeli subsidiaries - Settlement with the Israeli tax authorities
      514     —    — 
Increase (decrease) in other uncertain tax positions - net
    171     —        —   
Tax benefits arising from reduced tax rates under benefit programs
        14     15
Mainly nondeductible items and prior year tax
      16       —        35  
Non-Israeli subsidiaries
                         
Impairments that did not have a corresponding tax effect, non-deductible interest and other items
      463       372       941  
Adjustments to valuation allowances on deferred tax assets (*)
      (105)       —        —   
Worthless stock deduction (**)
        —        (909 ) 
Increase (decrease) in other uncertain tax positions - net
      (1 )      23       2  
  
 
 
    
 
 
    
 
 
  
Effective consolidated income taxes
    $ 676     $ (7 )    $ (643 ) 
  
 
 
    
 
 
    
 
 
  
*
Mainly related to deduction of interest expenses in the United States.
**
In 2022, one of Teva’s U.S. subsidiaries was determined to be insolvent for tax purposes (i.e., its liabilities exceeded the fair market value of its assets), mainly in light of its accumulated operational losses. Consequently, Teva recognized on its 2022 tax return, a worthless stock deduction of approximately $4.2 billion, with
a 
related tax benefit of approximately $909 million.
Schedule of Deferred Income Taxes
c.
Deferred income taxes:
 
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Deferred tax assets (liabilities), net:
   
Inventory related
    $ 88      $ 76  
Sales reserves and allowances
      55        81  
Provision for legal settlements
      667        702  
Intangible assets (*)
      170        (118 ) 
Carryforward losses and deductions and credits (**)
      1,557        2,463  
Property, plant and equipment
      (157 )       (225 ) 
Deferred interest
      789        799  
Provisions for employee related obligations
      95        80  
Other (***)
      69        357  
  
 
 
     
 
 
  
     3,333        4,215  
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized
      (2,017 )       (3,009 ) 
  
 
 
     
 
 
  
   $ 1,316      $ 1,206  
  
 
 
     
 
 
  

(*)
The increase in deferred tax is mainly due to intellectual property related integration.
(**)
The amounts are shown after reduction for unrecognized tax benefits of $163 million and $2 million as of December 31, 2024 and 2023, respectively.
The amount as of December 31, 2024 represents the tax effect of gross carryforward losses and deductions with the following expirations:
2025
-
2026
—$38 million;
2027
-
2034
—$486 million;
2035
and thereafter—$38 million. The remaining balance—$995 million—can be utilized with no expiration date.
 
(***)
The amounts shown for 2023 are primarily comprised of Capitalization of R&D Expenses.
Schedule of Deferred Tax Assets and Liabilities By Report Caption
The deferred income taxes are reflected in the balance sheets among:
 
    
December 31,
  
    
2024
     
2023
  
    
(U.S. $ in millions)
  
Long-term assets—deferred income taxes
      1,799        1,812  
Long-term liabilities—deferred income taxes
      (483 )       (606 ) 
  
 
 
     
 
 
  
   $ 1,316      $ 1,206  
  
 
 
     
 
 
  
Schedule of Unrecognized Tax Benefits
d.
Uncertain tax positions:
The following table summarizes the activity of Teva’s gross unrecognized tax benefits:
 
    
Year ended December 31,
  
    
2024
     
2023
     
2022
  
    
(U.S. $ in millions)
  
Balance at the beginning of the year
    $ 651      $ 638      $ 672  
Increase (decrease) related to prior year tax positions, net
      109        (1 )       (46 ) 
Increase related to current year tax positions
      53        15        42  
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations
      (395 )       (15 )       (31 ) 
Other
      29        14        1  
  
 
 
     
 
 
     
 
 
  
Balance at the end of the year
    $ 449      $ 651      $ 638