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Other assets impairments, restructuring and other items | 9 Months Ended
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Sep. 30, 2025
Other assets impairments, restructuring and other items | NOTE 12 – Other assets impairments, restructuring and other items:
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
|  | (U.S. $ in millions) |  |  | (U.S. $ in millions) |
Impairments of long-lived tangible assets (*) |  | $ | 15 |  |  | $ | (80 | ) |  | $ | 28 |  |  | $ | 589 |
Contingent consideration |  |  | 16 |  |  |  | 34 |  |  |  | 46 |  |  |  | 305 |
Restructuring |  |  | 29 |  |  |  | 21 |  |  |  | 196 |  |  |  | 52 |
Other |  |  | 3 |  |  |  | 1 |  |  |  | 2 |  |  |  | (16 | )
Total |  | $ | 62 |  |  | $ | (23 | ) |  | $ | 272 |  |  | $ | 931 |
(*) | Including impairments related to exit and disposal activities.
Impairments In the three months ended September 30, 2025, Teva recorded an expense of $15 million under impairments of tangible assets, compared to an income of $80 million in the three months ended September 30, 2024. The income for the three months ended September 30, 2024 was mainly related to a favorable adjustment to the changes of the expected loss from reclassification of currency translation adjustments, partially offset by an additional impairment due to the fair value update in connection with the classification of the business venture in Japan as held for sale. Impairments of tangible assets for the nine months ended September 30, 2025 and 2024 were $28 million and $589 million, respectively. The impairments for the nine months ended September 30, 2024 were mainly related to the classification of the business venture in Japan as held for sale (see note 2). In addition, as part of the Company’s efforts to further focus its business by optimizing its portfolio and global manufacturing footprint to achieve additional operational efficiencies, the Company, from time to time, evaluates strategic alternatives for certain individual assets or asset groups. These strategic alternatives may include partnerships, joint ventures, redeployment of assets or divestitures. These actions may involve substantial impairment charges in the future depending on the ultimate course of action for these long-lived assets. Any such impairment charges are recorded in the period in which there is a triggering event or commitment to a probable transaction. Teva may record additional impairments in the future, to the extent it changes its plans on any given asset and/or the assumptions underlying such plans, as a result of its network consolidation activities and its Pivot to Growth strategy. Contingent consideration In the three months ended September 30, 2025, Teva recorded an expense of $16 million for contingent consideration, compared to an expense of $34 million in the three months ended September 30, 2024. The expenses in the three months ended September 30, 2025 were mainly related to a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales. The expenses in the three months ended September 30, 2024 were mainly due to the effect of the passage of time on the net present value of the discounted payments. In the nine months ended September 30, 2025, Teva recorded an expense of $46 million for contingent consideration, compared to an expense of $305 million in the nine months ended September 30, 2024. The expense in the first nine months of 2025 was mainly related to lenalidomide capsules (the generic version of Revlimid ® ) (mainly the effect of the passage of time on the net present value of the discounted payments) and to a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales. The expenses in the first nine months of 2024 were mainly related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide capsules (the generic version of Revlimid ® ) and a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales. Restructuring In the three months ended September 30, 2025, Teva recorded $29 million of restructuring expenses, compared to $21 million in the three months ended September 30, 2024. Expenses in the three months ended September 30, 2025 were primarily related to optimization activities in connection with Teva’s Transformation programs related to Teva’s global organization and operations, mainly through headcount reductions. Expenses in the three months ended September 30, 2024 primarily related to network consolidation activities. In the nine months ended September 30, 2025, Teva recorded $196 million of restructuring expenses, compared to $52 million in the nine months ended September 30, 2024. Expenses in the nine months ended September 30, 2025 were primarily related to optimization activities in connection with Teva’s Transformation programs related to Teva’s global organization and operations, mainly through headcount reduction. Expenses in the nine months ended September 30, 2024 primarily related to network consolidation activities. Under Teva’s Transformation programs announced on May 7, 2025, Teva expects to achieve cost savings through a variety of initiatives including examining practices and efficiencies in methods of working, reduction in headcount and optimizing external spend in the following years. These Transformation programs are expected to result in the reduction of approximately 8% of Teva’s total work force as of December 31, 2024, by the end of 2027. The following tables provide the components of the Company’s restructuring costs:
|  | Three months ended September 30, |
|  | 2025 |  |  | 2024 |
|  | (U.S. $in millions) |
Restructuring |  |  |  |  |  |  |  |
Employee termination |  | $ | 28 |  |  | $ | 13 |
Other |  |  | 1 |  |  |  | 8 |
Total |  | $ | 29 |  |  | $ | 21 |
|  | Nine months ended September 30, |
|  | 2025 |  |  | 2024 |
|  | (U.S. $in millions) |
Restructuring |  |  |  |  |  |  |  |
Employee termination |  | $ | 191 |  |  | $ | 33 |
Other |  |  | 5 |  |  |  | 19 |
Total |  | $ | 196 |  |  | $ | 52 |
The following table provides the components of and changes in the Company’s restructuring accruals:
|  | Employee termination costs |  |  | Other |  |  | Total |
|  | (U.S. $in millions) |
Balance as of January 1, 2025 |  | $ | (55 | ) |  | $ | (13 | ) |  | $ | (68 | )
Provision |  |  | (191 | ) |  |  | (5 | ) |  |  | (196 | )
Utilization and other* |  |  | 92 |  |  |  | 4 |  |  |  | 96 |
Balance as of September 30, 2025 |  | $ | (154 | ) |  | $ | (14 | ) |  | $ | (168 | )
|  | Employee termination costs |  |  | Other |  |  | Total |
|  | (U.S. $in millions) |
Balance as of January 1, 2024 |  | $ | (75 | ) |  | $ | (7 | ) |  | $ | (82 | )
Provision |  |  | (33 | ) |  |  | (19 | ) |  |  | (52 | )
Utilization and other* |  |  | 52 |  |  |  | 12 |  |  |  | 64 |
Balance as of September 30, 2024 |  | $ | (56 | ) |  | $ | (14 | ) |  | $ | (70 | )
* | Includes adjustments for foreign currency translation.

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