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Goodwill | 9 Months Ended
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Sep. 30, 2025
Goodwill | NOTE 6 – Goodwill: Changes in the carrying amount of goodwill for the period ended September 30, 2025, were as follows:
|  | United States |  |  | Europe |  |  | International Markets |  |  | Other |  |  | Total |
|  | Teva’s API |  |  | Medis |
|  | (U.S. $ in millions) |
Balance as of December 31, 2024 (1) |  | $ | 5,732 |  |  | $ | 8,075 |  |  | $ | 1,110 |  |  |  | — |  |  | $ | 232 |  |  | $ | 15,147 |
Other changes during the period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Translation differences and other |  |  | — |  |  |  | 720 |  |  |  | 18 |  |  |  | — |  |  |  | 59 |  |  |  | 797 |
Balance as of September 30, 2025 (1) |  | $ | 5,732 |  |  | $ | 8,795 |  |  | $ | 1,128 |  |  |  | — |  |  | $ | 291 |  |  | $ | 15,945 |
(1) | Cumulative goodwill impairment as of September 30, 2025 and December 31, 2024, was each approximately $29.6 billion.
Teva operates its business through three reporting segments: United States, Europe and International Markets. Each of these business segments is a reporting unit. Additional reporting units include Teva’s production and sale of APIs to third parties (“Teva API”) and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis. Teva’s API and Medis reporting units are included under “Other” in the table above. See note 15 for additional segment information. Teva determines the fair value of its reporting units using the income approach. The income approach is a forward-looking approach for estimating fair value. Within the income approach, the method used is the discounted cash flow method. Teva begins with a forecast of all the expected net cash flows associated with the reporting unit, which includes the application of a terminal value, and then applies a discount rate to arrive at a net present value amount. Cash flow projections are based on Teva’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the weighted average cost of capital (“WACC”), adjusted for the relevant risk associated with country-specific and business-specific characteristics. If any of these expectations were to vary materially from Teva’s assumptions, Teva may record an impairment of goodwill allocated to these reporting units in the future. First Quarter Developments During the first quarter of 2025, management evaluated whether there were any developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount as of March 31, 2025. Management concluded that no triggering event had occurred and, therefore, no quantitative assessment was performed. Second Quarter Developments Pursuant to Company policy, Teva conducted its annual goodwill impairment test for all reporting units during the second quarter of 2025. Management considered all information available, including information gathered from its latest long-range planning (“LRP”) process and annual operating plan (“AOP”), which are parts of Teva’s internal financial planning and budgeting processes, as well as the recently announced “Accelerate Growth” phase under Teva’s Pivot to Growth strategy (“Teva’s Strategy”). The LRP, the AOP and Teva’s Strategy were discussed and reviewed by Teva’s management and its Board of Directors. Additionally, Teva conducted a quantitative analysis of all of its reporting units as part of its annual goodwill impairment test with the assistance of an independent valuation expert. Based on this quantitative analysis, no goodwill impairment charge was recorded in the second quarter of 2025. As of June 30, 2025, Teva’s United States, Europe, International Markets and Medis reporting units each had fair values in excess of 10% over their book values. In the second quarter of 2024, Teva recorded a goodwill impairment charge of $400 million related to Teva’s API reporting unit. Third Quarter Developments During the third quarter of 2025, management evaluated whether there were any developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount as of September 30, 2025. Management concluded that no triggering event had occurred and, therefore, no quantitative assessment was performed. In the third quarter of 2024, Teva recorded a goodwill impairment charge of $600 million related to Teva’s API reporting unit.

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