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Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2024

Summary of Financial Items Carried at Fair Value

Financial items carried at fair value as of December 31, 2024 and 2023 are classified in the tables below in one of the three categories described in note 1f:

		December 31, 2024
		Level 1				Level 2				Level 3				Total
		(U.S. $ in millions)
Cash and cash equivalents:
Money markets		$	2,005				—				—			$	2,005
Cash, deposits and other			1,295				—				—				1,295
Investment in securities:
Equity securities			12				—				—				12
Other			3				—				—				3
Derivatives:
Asset derivatives:
Options and forward contracts			—				71				—				71
Liabilities derivatives:															—
Options and forward contracts			—				(24	)			—				(24	)
Bifurcated embedded derivatives			—				—				§				—
Contingent consideration*			—				—				(401	)			(401	)
Total		$	3,315			$	47			$	(401	)		$	2,961

		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

§ 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.

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, 2024				December 31, 2023
		(U.S. $ in millions)
Fair value at the beginning of the period		$	(477	)		$	(250	)
Investment in convertible bond *			—				25
Conversion option*			—				15
Redemption of convertible bond security*			(40)				—
Bifurcated embedded derivatives			§				§
Adjustments to provisions for contingent consideration:
Allergan transaction			(270	)			(422	)
Eagle transaction			(31	)			(132	)
Novetide transaction			(2	)			2
Settlement of contingent consideration:
Allergan transaction			363				207
Eagle transaction			54				76
Novetide transaction			2				2
Fair value at the end of the period		$	(401	)		$	(477	)

§ Represents an amount less than $0.5 million.

* On September 29, 2023, Teva purchased $40 million of subordinated convertible bonds of Alvotech. On June 26, 2024, Alvotech announced its intention to exercise its redemption rights and redeemed the convertible bonds, which were paid to Teva in July 2024 (see note 2).

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,
		2024				2023
		(U.S. $ in millions)
Senior notes and sustainability-linked senior notes included under senior notes and loans		$	15,717			$	17,214
Senior notes and convertible senior debentures included under short-term debt			1,779				1,651
Total*		$	17,496			$	18,865

* 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://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
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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://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Name Accounting Standards Codification
-Section 50
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+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
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