Teva Pharmaceutical Industries Limited (TEVA) 10-K 10 Feb 21 2020 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Transition Report	false
Document Period End Date	Dec. 31, 2020
Document Fiscal Period Focus	FY
Document Annual Report	true
Entity Registrant Name	TEVA PHARMACEUTICAL INDUSTRIES LIMITED
Entity Central Index Key	0000818686
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding	1,096,511,852
Title of 12(b) Security	Ordinary Share
Trading Symbol	TEVA
Security Exchange Name	NYSE
Entity File Number	001-16174
Entity Incorporation, State or Country Code	L3
Entity Tax Identification Number	00-0000000
Entity Address, Address Line One	5 Basel Street
Entity Address, City or Town	Petach Tikva
Entity Address, Postal Zip Code	4951033
Entity Address, Country	IL
City Area Code	+972 (3)
Local Phone Number	914-8213
Entity Filer Category	Large Accelerated Filer
Smaller Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Public Float		$ 11,830
ICFR Auditor Attestation Flag	true

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions		Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents		$ 2,177	$ 1,975
Accounts receivables, net of allowance for credit losses of $126 million and $135 million as of December 31, 2020 and December 31, 2019		4,581	5,676
Inventories		4,403	4,422
Prepaid expenses		945	870
Other current assets		710	434
Assets held for sale		189	87
Total current assets		13,005	13,464
Deferred income taxes		695	386
Other non-current assets		538	591
Property, plant and equipment, net		6,296	6,436
Operating lease right-of-use assets		559	514
Identifiable intangible assets, net		8,923	11,232
Goodwill	[1]	20,624	24,846
Total assets		50,640	57,470
Current liabilities:
Short-term debt		3,188	2,345
Sales reserves and allowances		4,824	6,159
Accounts payables		1,756	1,718
Employee-related obligations		685	693
Accrued expenses		1,780	1,869
Other current liabilities		933	889
Total current liabilities		13,164	13,674
Long-term liabilities:
Deferred income taxes		964	1,096
Other taxes and long-term liabilities		2,240	2,640
Senior notes and loans		22,731	24,562
Operating lease liabilities		479	435
Total long-term liabilities		26,414	28,733
Commitments and contingencies, see note 12
Total liabilities		39,579	42,407
Teva shareholders' equity:
Ordinary shares of NIS 0.10 par value per share; December 31, 2020 and December 31, 2019: authorized 2,495 million shares; issued 1,202 million shares and 1,198 million shares, respectively		57	56
Additional paid-in capital		27,443	27,312
Accumulated deficit		(10,946)	(6,956)
Accumulated other comprehensive loss		(2,399)	(2,312)
Treasury shares as of December 31, 2020 and December 31, 2019: 106 million ordinary shares		(4,128)	(4,128)
Stockholders' equity attributable to Teva shareholders		10,026	13,972
Non-controlling interests		1,035	1,091
Total equity		11,061	15,063
Total liabilities and equity		$ 50,640	$ 57,470
[1]	Accumulated goodwill impairment as of December 31, 2020, December 31, 2019 and December 31, 2018 was approximately $25.6 billion, $21.0 billion and $21.0 billion, respectively.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) shares in Millions, $ in Millions	Dec. 31, 2020USD ($)shares	Dec. 31, 2020SFr / shares	Dec. 31, 2019USD ($)shares	Dec. 31, 2019SFr / shares
Allowance for credit losses | $	$ 126		$ 135
Common stock, par or stated value per share | SFr / shares		SFr 0.10		SFr 0.10
Ordinary shares, authorized	2,495		2,495
Ordinary shares, issued	1,202		1,198
Treasury shares	106		106

Consolidated Statements of Inco

Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net revenues	$ 16,659	$ 16,887	$ 18,271
Cost of sales	8,933	9,351	9,975
Gross profit	7,726	7,537	8,296
Research and development expenses	997	1,010	1,213
Selling and marketing expenses	2,498	2,614	2,916
General and administrative expenses	1,173	1,192	1,298
Intangible assets impairments	1,502	1,639	1,991
Goodwill impairment	4,628		3,027
Other asset impairments, restructuring and other items	479	423	987
Legal settlements and loss contingencies	60	1,178	(1,208)
Other income	(40)	(76)	(291)
Operating (loss) income	(3,572)	(443)	(1,637)
Financial expenses, net	834	822	959
Income (loss) before income taxes	(4,406)	(1,265)	(2,596)
Income taxes (benefit)	(168)	(278)	(195)
Share in (profits) losses of associated companies, net	(138)	13	71
Net income (loss)	(4,099)	(1,000)	(2,472)
Net loss attributable to non-controlling interests	(109)	(2)	(322)
Net income (loss) attributable to Teva	(3,990)	(999)	(2,150)
Accrued dividends on preferred shares			249
Net income (loss) attributable to ordinary shareholders	$ (3,990)	$ (999)	$ (2,399)
Earnings (loss) per share attributable to ordinary shareholders:
Basic	$ (3.64)	$ (0.91)	$ (2.35)
Diluted	$ (3.64)	$ (0.91)	$ (2.35)
Weighted average number of shares (in millions):
Basic	1,095	1,091	1,021
Diluted	1,095	1,091	1,021

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net income (loss)	$ (4,099)	$ (1,000)	$ (2,472)
Other comprehensive income (loss), net of tax:
Currency translation adjustment	(69)	97	(713)
Unrealized gain (loss) on derivative financial instruments, net	57	84	115
Unrealized gain (loss) on available-for-sale securities, net	0	(1)	0
Unrealized gain (loss) on defined benefit plans, net	(18)	(20)	13
Total other comprehensive income (loss)	(30)	160	(585)
Total comprehensive income (loss)	(4,129)	(840)	(3,057)
Comprehensive income (loss) attributable to non-controlling interests	(53)	12	(296)
Comprehensive income (loss) attributable to Teva	$ (4,076)	$ (852)	$ (2,761)

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions		Total		Ordinary Shares [Member]		MCPS [Member]	[1]	Additional Paid-in Capital [Member]		Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Shares [Member]	Total Teva Shareholders' Equity [Member]	Non-controlling Interests [Member]
Beginning balance at Dec. 31, 2017		$ 18,745		$ 54		$ 3,631		$ 23,479		$ (3,803)	$ (1,853)	$ (4,149)	$ 17,359	$ 1,386
Beginning balance, shares at Dec. 31, 2017				1,124
Cumulative effect of new accounting standard	[2]									(5)	5
Net income (loss)		(2,472)								(2,150)			(2,150)	(322)
Other comprehensive income (loss)		(585)									(611)		(611)	26
Issuance of Shares, value		(52)	[3]	$ 2	[3]	(3,880)		3,826	[3]
Issuance of Shares, shares	[3]			72
Issuance of Treasury Shares		4						(3)				7	4
Stock-based compensation expense		155						155
Dividends to preferred shareholders						249		(249)
Transactions with non-controlling interests		(1)						2					2	(3)
Ending balance at Dec. 31, 2018		15,794		$ 56				27,210		(5,958)	(2,459)	(4,142)	14,707	1,087
Ending balance, shares at Dec. 31, 2018				1,196
Net income (loss)		(1,000)								(999)			(999)	(2)
Other comprehensive income (loss)		160									147		147	14
Issuance of Shares, shares				2
Issuance of Treasury Shares		6						(8)				14	6
Stock-based compensation expense	[3]	119						119					119
Transactions with non-controlling interests		(8)												(8)
Other		(8)						(8)					(8)
Ending balance at Dec. 31, 2019		15,063		$ 56				27,312		(6,956)	(2,312)	(4,128)	13,972	1,091
Ending balance, shares at Dec. 31, 2019				1,198
Net income (loss)		(4,099)								(3,990)			(3,990)	(109)
Other comprehensive income (loss)		(30)									(86)		(86)	56
Issuance of Shares, value		1											1
Issuance of Shares, shares	[4]			4
Stock-based compensation expense		129						129					129
Transactions with non-controlling interests		(2)												(2)
Ending balance at Dec. 31, 2020		$ 11,061		$ 57		$ 0		$ 27,443		$ (10,946)	$ (2,399)	$ (4,128)	$ 10,026	$ 1,035
Ending balance, shares at Dec. 31, 2020				1,202
[1]	Mandatory convertible preferred shares.
[2]	Following the adoption of ASU 2016-01, the Company recorded a $ 5 million opening balance reclassification from accumulated other comprehensive income to retained earnings.
[3]	Mainly MCPS conversion.
[4]	Represents an amount less than 0.5 million.

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
AOCI Attributable to Parent [Member]
Foreign currency translation attributable to non-controlling interests			$ 5
Maximum [Member] | Ordinary Shares [Member]
Exercise of options by employees and vested RSUs	$ 0.5	$ 0.5	$ 0.5

Consolidated Statements of Cash

Consolidated Statements of Cash Flows $ in Millions	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Operating activities:
Net income (loss)	$ (4,099)	$ (1,000)	$ (2,472)
Adjustments to reconcile net loss to net cash provided by operations:
Impairment of goodwill, long-lived assets and assets held for sale	6,546	1,778	5,621
Depreciation and amortization	1,557	1,722	1,842
Net change in operating assets and liabilities	(2,188)	(896)	(1,823)
Deferred income taxes, net and uncertain tax positions	(696)	(985)	(837)
Stock-based compensation	129	119	155
Other items	100	28	(135)
Research and development in process	80	0	114
Net loss (gain) from investments and from sale of long lived assets	(213)	(18)	(19)
Net cash provided by operating activities	1,216	748	2,446
Investing activities:
Beneficial interest collected in exchange for securitized trade receivables	1,405	1,487	1,735
Proceeds from sales of long-lived assets and investments	67	343	890
Purchases of property, plant and equipment	(578)	(525)	(651)
Purchases of investments and other assets	(55)	(8)	(119)
Other investing activities	24	58	11
Net cash provided by investing activities	863	1,355	1,866
Financing activities:
Repayment of senior notes and loans and other long-term liabilities	(1,871)	(3,944)	(7,446)
Proceeds from senior notes and loans, net of issuance costs	0	2,083	4,434
Proceeds from short term debt	550	500	0
Repayment of short term debt	(559)	(502)	(260)
Other financing activities	(5)	(11)	(57)
Tax withholding payments made on shares and dividends	0	(52)	(22)
Net cash used in financing activities	(1,885)	(1,926)	(3,351)
Translation adjustment on cash and cash equivalents	8	16	(142)
Net change in cash and cash equivalents	202	193	819
Balance of cash and cash equivalents at beginning of year	1,975	1,782	963
Balance of cash and cash equivalents at end of year	2,177	1,975	1,782
Non-cash financing and investing activities:
Beneficial interest obtained in exchange for securitized trade receivables	1,397	1,511	1,716
Conversion of mandatory convertible preferred shares into ordinary shares	0	0	3,880
Cash paid during the year for:
Interest	846	840	815
Income taxes, net of refunds	709	552	420
Net change in operating assets and liabilities:
Other current assets	(1,473)	(1,416)	(1,437)
Trade payables, accrued expenses, employee-related obligations and other liabilities	(463)	643	(500)
Trade receivables net of sales reserves and allowances	(293)	(394)	88
Inventories	41	271	26
Net Change In Items Comprising Supplemental Disclosure Of Cash Flow Information	$ (2,188)	$ (896)	$ (1,823)

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Significant Accounting Policies	NOTE 1—Significant accounting policies: a. General: Operations Teva Pharmaceutical Industries Limited (the “Parent Company”), headquartered in Israel, together with its subsidiaries and associated companies (the “Company,” “Teva” or the “Group”), is engaged in the development, manufacturing, marketing and distribution of generics, specialty medicines and biopharmaceuticals. The majority of the Group’s revenues are in the United States and Europe. Basis of presentation and use of estimate s The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In preparing the Company’s consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reported years. Actual results could differ from those estimates. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to determining the valuation and recoverability of intangible assets and goodwill; assessing sales reserves and allowances in the United States, and contingent consideration; assessing compliance with debt covenants; uncertain tax positions, valuation allowances, contingencies, inventory valuation and restructuring. The inputs into Teva’s judgments and estimates also consider the economic implications of the COVID-19 COVID-19 COVID-19 Certain amounts in the consolidated financial statements and associated notes may not add up due to rounding. All percentages have been calculated using unrounded amounts. Functional currency A major part of the Group’s operations is carried out by the Company in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”). The functional currency of certain subsidiaries and associated companies is their local currency. The financial statements of those companies are included in the consolidated financial statements, translated into U.S. dollars. Assets and liabilities are translated at year-end In the event of a divestiture of a foreign subsidiary, the related foreign currency translation results are reversed from equity to income. Foreign currency exchange gains and losses are included in net income (loss). Principles of consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, joint ventures and VIEs for which the Company is considered the primary beneficiary. For those consolidated entities where Teva owns less than 100%, the outside shareholders’ interests are shown as non-controlling For VIEs, the Company performs an analysis to determine whether the variable interests give a controlling financial interest in a VIE. The Company periodically reassesses whether it controls its VIEs. Intercompany transactions and balances are eliminated on consolidation; profits from intercompany sales, not yet realized outside the Group, are also eliminated. b. New accounting pronouncements Recently adopted accounting pronouncements In March 2020, the FASB issued ASU 2020-04 In April 2019, the FASB issued ASU 2019-04 In November 2018, the FASB issued ASU 2018-18 unit-of-account In August 2018, the FASB issued ASU 2018-15 other—Internal-use 350-40): internal-use In August 2018, the FASB issued ASU 2018-13 In June 2016, the FASB issued ASU 2016-13 Recently issued accounting pronouncements, not yet adopted In August 2020, the FASB issued ASU 2020-06 (Subtopic 470-20) In December 2019, the FASB issued ASU 2019-12 year-to-date In addition, the update also simplifies the accounting for income taxes in certain topics as follows: (1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based Company reviewed the above topics, noting that Items (1) and (4) of this paragraph are expected to be relevant, but not material. The adoption of this guidance will not have a significant impact on the Company’s consolidated financial statements. c. Acquisitions: Teva’s consolidated financial statements include the operations of acquired businesses from the date of the acquisition’s consummation. Acquired businesses are accounted for using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired in process research and development (“IPR&D”) be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When Teva acquires net assets that do not constitute a business, as defined under U.S. GAAP, no goodwill is recognized and acquired IPR&D is expensed. Contingent consideration incurred in a business combination is included as part of the acquisition price and recorded at a probability weighted assessment of its fair value as of the acquisition date. The fair value of the contingent consideration is re-measured d. Collaborative arrangements: Collaborative agreements are contractual arrangements in which the parties are active participants to the arrangement and are exposed to the significant risks and rewards that are dependent on the ultimate commercial success of the endeavor. The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to collaborative agreements as gross or net. If the Company is the principal participant in a transaction, revenues and costs are recorded on a gross basis; otherwise, revenues are recorded on a net basis. e. Equity investments: The Company measures equity investments at fair value with changes in fair value recognized in net income. The Company accounts for equity investments that do not have a readily determinable fair value as cost method investments under the measurement alternative prescribed within ASU 2016-01 f. Fair value measurement: The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value. g. Investment in debt securities: Investment in securities consists of debt securities classified as available-for-sale The Company’s investment in debt securities accounting policy until December 31, 2019, prior to the adoption of the new Current Expected Credit Losses (“CECL”) standard Unrealized gains of available for sale debt securities, net of taxes, are reflected in other comprehensive income. Unrealized losses considered to be temporary are reflected in other comprehensive income; unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. Realized gains and losses for debt securities are included in financial expenses, net. The Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment recognized in earnings, recorded in financial expense, net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in other comprehensive income. The Company’s investment in debt securities accounting policy from January 1, 2020, following the adoption of the new CECL standard Unrealized gains and losses for available-for-sale The CECL methodology, which became effective January 1, 2020, requires the Company to estimate lifetime expected credit losses for all available-for-sale Comparative information continues to be reported in accordance with the methodology in effect for prior periods. When estimating a security’s probability of default and the recovery rate, the Company assesses the security’s credit indicators, including credit ratings. If the assessment indicates that an expected credit loss exists, the Company determines the portion of the unrealized loss attributable to credit deterioration and records an allowance for the expected credit loss through the Consolidated Statements of Income. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit h. Cash and cash equivalents: All highly liquid investments, which include short-term bank deposits and money market instruments, that are not restricted as to withdrawal or use, and investment in short-term debentures, the period to maturity of which did not exceed three months at the time of investment, are considered to be cash equivalents. i. Accounts receivables: The Company’s accounts receivables accounting policy until December 31, 2019, prior to the adoption of the new CECL standard Accounts receivables are stated at their net realizable value. The allowance against gross accounts receivables reflects the best estimate of losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available information. An allowance for doubtful debts is reflected in net accounts receivables. Accounts receivables are written off after all reasonable means to collect the full amount have been exhausted. The Company’s accounts receivables accounting policy from January 1, 2020, following the adoption of the new CECL standard Accounts receivable have been reduced by an allowance for doubtful accounts. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Write-off j. Concentration of credit risks: Most of Teva’s cash and cash equivalents (which, along with investment in securities, totaled $2,478 million at December 31, 2020) were deposited with European, U.S. and Israeli banks and financial institutions and were comprised mainly of cash deposits. The pharmaceutical industry, particularly in the United States, has been significantly affected by consolidation among managed care providers, large pharmacy chains, wholesaling organizations and other buyer groups. The U.S. market constituted approximately 48% of Teva’s consolidated revenues in 2020. The exposure of credit risks relating to other trade receivables outside the U.S. is limited, due to the relatively large number of group customers and their wide geographic distribution. Teva performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral and from time to time the Company may choose to purchase trade credit insurance. k. Inventories: Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials, purchased products, manufactured finished products, products in process and capitalized production costs are determined predominantly on a standard cost basis, approximating actual costs. Other methods which are utilized for determining the value of inventories are moving average, cost basis and the first in first out method. Teva regularly reviews its inventories for obsolescence and other impairment risks and reserves are established when necessary. Inventories acquired in a business combination are stepped-up l. Long-lived assets: Teva’s long-lived, non-current Goodwill Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any non-controlling The Company has historically performed its annual goodwill assessment during the fourth quarter of each year. During the second quarter of 2020, the Company decided to change the date of its annual impairment assessment from October 1 to June 30. The change was made to more closely align the impairment assessment date with the Company’s long-term planning and forecasting process. See note 7. The goodwill impairment test is performed according to the following principles: 1. An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. 2. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying mount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized. An interim goodwill impairment test may be required in advance or after of the annual impairment test if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. For example, a substantial decline in the Company’s market capitalization, unexpected adverse business conditions, economic factors and unanticipated competitive activities may indicate that an interim impairment test is required. In the event that the Company’s market capitalization declines below its book value, the Company considers the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists. Identifiable intangible assets Identifiable intangible assets are comprised of definite life intangible assets and indefinite life intangible assets. Definite life intangible assets consist mainly of acquired product rights and other rights relating to products for which marketing approval was received from the U.S. Food and Drug Administration (“FDA”) or the equivalent agencies in other countries. These assets are amortized mainly using the straight-line method over their estimated period of useful life, or based on economic benefit models, if more appropriate, which is determined by identifying the period and manner in which substantially all of the cash flows are expected to be generated. Amortization of acquired developed products is recorded under cost of sales. Amortization of marketing and distribution rights is recorded under selling and marketing (“S&M”) expenses when separable. Indefinite life intangible assets are mainly comprised of IPR&D assets. Teva monitors these assets for items such as research and development progress and for indicators of fair value change such as level of expected competition and or pricing, to identify any triggering events. Teva determines the fair value of the asset annually or when triggering events are present, based on discounted cash flows and records an impairment loss if book value exceeds fair value. IPR&D acquired in a business combination is capitalized as an indefinite life intangible asset until the related research and development efforts are either completed or abandoned. In the reporting periods where they are treated as indefinite life intangible assets, they are not amortized but rather are monitored triggering events and tested for impairment. Upon completion of the related research and development efforts, management determines the useful life of the intangible assets and amortizes them accordingly. In case of abandonment or a reduction in the expected realizable value of the asset, the related research and development assets are impaired. Whenever impairment indicators are identified for definite life intangible assets, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s or asset group’s cash flows and compares such value against the asset’s or asset group’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value based on the discounted cash flows. In determining the estimated fair value of identifiable intangible assets, Teva utilized a discounted cash flow model. The key assumptions within the model related to forecasting future revenue and operating income, an appropriate discount rate and an appropriate terminal value based on the nature of the long-lived asset. The Company’s updated forecasts of net cash flows for the impaired assets reflect, among others, the following: (i) for IPR&D assets, the impact of changes to the development programs, the projected development and regulatory timeframes and the risks associated with these assets; and (ii) for product rights, pricing and volume projections, as well as patent life and any significant changes to the competitive environment. Property, plant and equipment Property, plant and equipment are stated at cost, after deduction of the related investment grants, and depreciated using the straight-line method over the estimated useful life of the assets: buildings, mainly 40 years; machinery and equipment, mainly between 15 to 20 years; and other assets, between 5 to 10 years. For property, plant and equipment and lease right-of-use Lease right-of-use See note 8 and note 1 cc for further discussion. m. Contingencies: The Company is involved in various patent, product liability, commercial, government investigations, environmental claims and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies, contingent consideration, other contingent liabilities incurred or acquired in a business combination, Teva records accruals for these types of contingencies to the extent that Teva concludes their occurrence is probable and that the related liabilities are estimable. When accruing these costs, the Company will recognize an accrual in the amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Teva records anticipated recoveries under existing insurance contracts that are probable of occurring at the gross amount that is expected to be collected. Legal costs are expensed as incurred. The Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved. n. Treasury shares: Treasury shares are presented as a reduction of Teva shareholders’ equity and carried at their cost to Teva, under treasury shares. o. Stock-based compensation: Teva recognizes stock based compensation for the estimated fair value of share-based awards, restricted share units (“RSUs”) and performance share units (“PSUs”). The compensation expense for PSUs is recognized only if it is probable that the performance condition will be achieved. Teva measures compensation expense for share-based awards based on estimated fair values on the date of grant using the Black-Scholes option-pricing model. This option pricing model requires estimates as to the option’s expected term and the price volatility of the underlying stock. Teva amortizes the value of share-based awards to expense over the vesting period on a straight-line basis. Teva measures compensation expense for the RSUs and PSUs based on the market value of the underlying stock at the date of grant, less an estimate of dividends that will not accrue to the RSU and PSU holders prior to vesting. p. Deferred income taxes: Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. In determining whether a valuation allowance is needed, Teva considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. Deferred income tax liabilities and assets are classified as non-current. Deferred tax has not been provided on the following items: 1. Taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. The determination of the amount of related unrecognized deferred tax liability is not practicable. 2. Amounts of tax-exempt q. Uncertain tax positions: Teva recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. Teva regularly re-evaluates Provisions for uncertain tax positions, whereas Teva has net operating losses to offset additional income taxes that would result from the settlement of the tax position, are presented as a reduction of the deferred tax assets for such net operating loss. r. Derivatives and hedging: The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, currency options, cross-currency swap contracts, interest rate swap contracts and treasury locks). The transactions are designed to hedge the Company’s currency and interest rate exposures. The Company does not enter into derivative transactions for trading purposes. Derivative instruments are recognized on the balance sheet at their fair value. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recognized in financial expenses , For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings. For derivative instruments that are designated as net-investment expenses , For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging. Derivative instruments that do not qualify for hedge accounting are recognized on the Balance Sheet at their fair value, with changes in the fair value recognized as a component of financial expenses , s. Revenue recognition: A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes. The amount of consideration to which Teva expects to be entitled varies as a result of rebates, chargebacks, returns and other sales reserves and allowances (“SR&A”) that the Company offers to its customers and their customers, as well as the occurrence or nonoccurrence of future events, including milestone events. A minimum amount of variable consideration is recorded by the Company concurrently with the satisfaction of performance obligations to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimates of variable consideration are based on historical experience and the specific terms in the individual agreements (which the Company believes approximates expected value). Rebates and chargebacks are the largest components of SR&A. If a minimum cannot be reasonably estimated, such revenue may be deferred to a future period when better information is available. For further description of SR&A components and how they are estimated, see “Variable Consideration” below. Shipping and handling costs, after control of the product has transferred to a customer, are accounted for as a fulfillment cost and are recorded under S&M expenses. Teva does not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms to customers are, on average, between thirty The Company generally recognizes the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The costs are recorded under S&M expenses. Similarly, Teva does not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less. Nature of revenue streams Revenue from sales of goods, including sales to distributors is recognized when the customer obtains control of the product. This generally occurs when products are shipped once the Company has a present right to payment and legal title, and risk and rewards of ownership are obtained by the customer. Licensing arrangements performance obligations generally include intellectual property (“IP”) rights, certain R&D and contract manufacturing services. The Company accounts for IP rights and services separately if they are distinct—i.e. if they are separately identifiable from other items in the arrangement and if the customer can benefit from them on their own or with other resources that are readily available to the customer. The consideration is allocated between IP rights and services based on their relative stand-alone selling prices. Revenue for distinct IP rights is accounted for based on the nature of the promise to grant the license. In determining whether the Company’s promise is to provide a right to access its IP or a right to use its IP, the Company considers the nature of the IP to which the customer will have rights. IP is either functional IP which has significant standalone functionality or symbolic IP which does not have significant standalone functionality. Revenue from functional IP is recognized at the point in time when control of the distinct license is transferred to the customer. Revenue from symbolic IP is recognized over the access period to the Company’s IP. Revenue from sales based milestones and royalties promised in exchange for a license of IP is recognized only when, or as, the later of subsequent sale or the performance obligation to which some or all of the sales-based royalty has been allocated, is satisfied. Revenues from licensing arrangements included royalty income of $129 million, $147 million and $165 million for the years ended December 31 , 2020 , 2019 and 2018 , respectively. Distribution revenues are derived from sales of third-party products for which the Company acts as distributor, mostly in the United States via Anda and in Israel via Salomon Levin and Elstein Ltd. (SLE). In the United States, the Company is the principal in these arrangements and therefore records revenue on a gross basis as it controls the promised goods before transferring these goods to the customer. In Israel, the Company is the agent in these arrangements and therefore records revenue on a net basis as it has no discretion in establishing prices for any specifies goods or services, limited inventory risk and is not primarily responsible for contract fulfillment. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer. Other revenues are primarily comprised of contract manufacturing services, sales of medical devices and other miscellaneous items. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer. Contract assets and liabilities Contract assets are mainly comprised of trade receivables net of allowance for doubtful debts, which includes amounts billed and currently due from customers. Contract liabilities are mainly comprised of deferred revenues which were immaterial as of December 31, 2020 and 2019. Variable consideration Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables. The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated: Rebates Rebates are primarily related to volume incentives and are offered to key customers to promote loyalty. These rebate programs provide that, upon the attainment of pre-established Medicaid and Other Governmental Rebates Pharmaceutical manufacturers whose products are covered by the Medicaid program are required to provide a rebate to each state as a percentage of their average manufacturer’s price for generic products dispensed and “best price” for specialty products dispensed. Many states have also implemented supplemental rebate programs that obligate manufacturers to pay rebates in excess of those required under federal law. The Company

Certain transactions

Certain transactions	12 Months Ended
	Dec. 31, 2020
Certain transactions	NOTE 2—Certain transactions: a. Business acquisitions: Actavis Generics and Anda acquisitions On August 2, 2016, Teva consummated its acquisition of Allergan plc’s (“Allergan”) worldwide generic pharmaceuticals business (“Actavis Generics”). At closing, Teva transferred to Allergan consideration of approximately $33.4 billion in cash and approximately 100.3 million Teva shares. On October 3, 2016, Teva consummated the acquisition of Anda Inc. (“Anda”), a medicines distribution business in the United States, from Allergan, for cash consideration of $500 million. This transaction was related to the Actavis Generics acquisition and, as such, the purchase price accounting and related disclosures were treated on a combined basis. The final cash consideration for the Actavis Generics acquisition was subject to certain net working capital adjustments. On January 31, 2018, Teva and Allergan entered into a settlement agreement and mutual releases for which Allergan made a one-time payment of $703 million to Teva to settle the working capital adjustments under the Master Purchase Agreement, dated July 26, 2015. As the measurement period has ended, this amount was recorded as a gain under legal settlements and loss contingencies in the first quarter of 2018. Rimsa On March 3, 2016, Teva completed the acquisition of Representaciones e Investigaciones Médicas, S.A. de C.V. (“Rimsa”), a pharmaceutical manufacturing and distribution company in Mexico, for $2.3 billion, in a cash free, debt free set of transactions. Teva financed the transaction using cash on hand. Following the closing of the acquisition, Teva identified issues concerning Rimsa’s pre-acquisition quality, manufacturing and other practices, at which point Teva began an assessment of the extent and cost of remediation required to return its products to the market. In September 2016, two lawsuits were filed: a pre-emptive suit by the Rimsa sellers against Teva and Teva’s lawsuit alleging fraud and breach of contract against the Rimsa sellers. The Rimsa sellers subsequently dismissed their lawsuit and the dismissal was approved by court order on December 20, 2016. On February 15, 2018, Teva and the Rimsa sellers entered into a settlement agreement and mutual releases with respect to Teva’s breach of contract claim, pursuant to which the Rimsa sellers made a one-time b. Other significant agreements: The Company has entered into alliances and other arrangements with third parties to acquire rights to products it does not have, to access markets it does not operate in and to otherwise share development costs or business risks. The Company’s most significant agreements of this nature are summarized below. Alvotech Partnership In August 2020, Teva entered into a partnership agreement with biopharmaceutical company Alvotech for the exclusive commercialization in the U.S. of five biosimilar product candidates. The initial pipeline for this partnership contains biosimilar candidates addressing multiple therapeutic areas. Under this agreement, Alvotech is responsible for the development, registration and supply of the biosimilar product candidates and Teva will exclusively commercialize the products in the United States. Teva paid an upfront payment in the third quarter of 2020 that w as to $450 million, as well as royalty payments, may be payable by Teva over the next few years. Teva and Alvotech will share profit from the commercialization of these biosimilar s. Eli Lilly and Alder BioPharmaceuticals In December 2018, Teva entered into an agreeme n ® On January 8, 2018, Teva signed a global license agreement with Alder BioPharmaceuticals (“Alder”). The agreement validates Teva’s intellectual property and resolves Alder’s opposition to Teva’s European patent with respect to anti-calcitonin gene-related peptide (CGRP) antibodies, including the withdrawal of Alder’s appeal before the European Patent Office. Under the terms of the agreement, Alder will receive a non-exclusive license to Teva’s anti-CGRP antibodies patent portfolio to develop, manufacture and commercialize eptinezumab in the United States and worldwide, excluding Japan and Korea. Teva received a $25 million upfront payment that was recognized as revenue during the first quarter of 2018, and a $25 million milestone payment in March 2020 that was recognized as revenue in the first quarter of 2020. The agreement stipulates additional commercial milestone payments to Teva of up to $150 million, as well as future royalties. PGT Healthcare Partnership In July 2018, Teva terminated its joint venture with the Procter & Gamble Company (“P&G”), PGT Healthcare partnership (“PGT”), which the two companies established in 2011 to market OTC medicines. Teva will continue to maintain its OTC business on an independent basis. As part of the separation, Teva transferred to P&G the shares it held in New Chapter Inc. and ownership rights in an OTC plant located in India. Teva provides certain services to P&G after the separation for a transition period. During the first quarter of 2018, Teva classified the plant in India as an asset held for sale and recorded an impairment of $64 million under other assets impairments, restructuring and other items. In addition, Teva recorded a write-down of $94 million of its investment in New Chapter Inc. under share in losses of associated companies. During September 2018, Teva and P&G completed the final net asset distribution as part of the dissolution and Teva recorded a gain of $50 million to reflect the cash payment received from P&G under the dissolution agreement. AUSTEDO ® On September 19, 2017, Teva entered into a partnership agreement with Nuvelution Pharma, Inc. (“Nuvelution”) for development of AUSTEDO for the treatment of Tourette syndrome in pediatric patients in the United States. There are no further plans in this indication following clinical trial results received in February 2020, which failed to meet their primary endpoints. Otsuka On May 12, 2017, Teva entered into a license and collaboration agreement with Otsuka Pharmaceutical Co. Ltd. (“Otsuka”), providing Otsuka with an exclusive license to conduct phase 2 and 3 clinical trials for AJOVY in Japan and, if approved, to commercialize the product in Japan. Otsuka paid Teva an upfront payment of $50 million in consideration for the transaction. Results for these trials were received in January 2020 indicating that primary and secondary endpoints were achieved and that no clinically significant adverse events were observed in subjects. In the third quarter of 2020, Otsuka submitted an application to obtain manufacturing and marketing approval for AJOVY in Japan and, as a result, paid Teva a milestone payment of $15 million, which was recognized as revenue in the third quarter of 2020. Teva may receive additional milestone payments upon achievement of certain commercial and revenue targets. Otsuka will also pay Teva royalties on AJOVY sales in Japan. Celltrion In October 2016, Teva and Celltrion, Inc. (“Celltrion”) entered into a collaborative agreement to commercialize TRUXIMA ® ® Regeneron In September 2016, Teva and Regeneron Pharmaceuticals, Inc. (“Regeneron”) entered into a collaborative agreement to develop and commercialize Regeneron’s pain medication product, fasinumab. Teva and Regeneron share in the global commercial rights to this product (excluding Japan, Korea and nine other Asian countries), as well as ongoing associated R&D costs of approximately $1 billion. Teva made an upfront payment of $250 million to Regeneron in the third quarter of 2016 and additional payments for achievement of development milestones in an aggregate amount of $120 million were paid during 2017 and 2018. The agreement stipulates additional development and commercial milestone payments of up to $2,230 million, as well as future royalties. c. Assets and Liabilities Held For Sale: Certain assets of Teva’s business venture in Japan Teva operates its business in Japan, which is part of Teva’s International Market segment, through a business venture with The Takeda Pharmaceutical Company Limited (“Takeda”), in which Teva owns a stake and Takeda owns the remaining In July 2020, Teva and Takeda entered into a purchase agreement to sell the majority of the business venture’s generic and operational assets. This transaction was completed on February 1, 2021. Teva is accounting for the business venture assets and liabilities under the purchase agreement as held for sale and determined that the fair value less cost to sell did not exceed the carrying value, resulting in an impairment charge of million in other assets impairments, restructuring and other items recognized in 2020 . Teva determined that the sale of this portion of the Teva-Takeda business venture does not constitute a strategic shift for Teva, and does not and will not have a major effect on its operations and financial results. Accordingly, the operations associated with the transactions are not reported as discontinued operations. Assets held for sale include the Teva-Takeda business venture assets that are held for sale, the anticipated sale of certain OTC assets and other manufacturing assets that are expected to be sold within the next year. The table below summarizes all Teva assets included as held for sale as of December 31, 2020 and December 31, 2019: December 31, December 31, (U.S. $ in millions) Inventories $ 146 $ — Property, plant and equipment, net and others 312 98 Goodwill 27 — Adjustments of assets held for sale to fair value (296 ) (11 ) Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 189 $ 87

Revenue from contracts with cus

Revenue from contracts with customers	12 Months Ended
	Dec. 31, 2020
Revenue from contracts with customers	NOTE 3—Revenue from contracts with customers: Disaggregation of revenue The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 19. Year ended December 31, 2020 North America Europe International Other activities Total (U.S.$ in millions) Sale of goods 6,902 4,736 1,946 772 14,354 Licensing arrangements 84 32 9 4 129 Distribution 1,462 3 30 — 1,495 Other § (14 ) 169 527 680 $ 8,447 $ 4,757 $ 2,154 $ 1,302 $ 16,659 Year ended December 31, 2019 North America Europe International Other activities Total (U.S.$ in millions) Sale of goods 6,941 4,770 2,045 754 14,510 Licensing arrangements 109 29 4 5 147 Distribution 1,492 2 20 — 1,514 Other § (6 ) 177 545 716 $ 8,542 $ 4,795 $ 2,246 $ 1,304 $ 16,887 Year ended December 31, 2018 North America Europe International Other activities Total (U.S.$ in millions) Sale of goods 7,838 5,153 2,151 739 15,881 Licensing arrangements 111 23 22 9 165 Distribution 1,347 7 19 — 1,373 Other 1 3 230 618 852 $ 9,297 $ 5,186 $ 2,422 $ 1,366 $ 18,271 § Represents an amount less than $1 million. Variable consideration Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables. The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. For description of the nature of each deduction and how provisions are estimated see note 1. SR&A to U.S. customers comprised approximately 79% of the Company’s total SR&A as of December 31, 2020, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the period ended December 31, 2019 and 2020 were as follows: Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total Total (U.S.$ in millions) Balance at January 1, 2019 $ 175 3,006 $ 1,361 $ 1,530 $ 638 $ 176 $ 6,711 $ 6,886 Provisions related to sales made in current year period 383 5,552 976 9,565 281 394 16,767 $ 17,150 Provisions related to sales made in prior periods — (92 ) (151 ) (17 ) 77 (6 ) (189 ) $ (189 ) Credits and payments (471 ) (5,570 ) (1,076 ) (9,736 ) (360 ) (392 ) (17,134 ) $ (17,605 ) Translation differences — (1 ) (1 ) 1 1 4 4 $ 4 Balance at December 31, 2019 $ 87 2,895 $ 1,109 $ 1,342 $ 637 $ 176 $ 6,159 $ 6,246 Provisions related to sales made in current year period 391 4,703 744 8,438 459 71 14,415 $ 14,806 Provisions related to sales made in prior periods — (219 ) (184 ) (65 ) (28 ) (1 ) (497 ) $ (497 ) Credits and payments (398 ) (5,360 ) (849 ) (8,614 ) (386 ) (100 ) (15,309 ) $ (15,707 ) Translation differences — 35 8 7 4 2 56 $ 56 Balance at December 31, 2020 $ 80 2,054 $ 828 $ 1,108 $ 686 $ 148 $ 4,824 $ 4,904

Inventories

Inventories	12 Months Ended
	Dec. 31, 2020
Inventories	NOTE 4—Inventories: Inventories, net of reserves, consisted of the following: December 31, 2020 2019 (U.S. $ in millions) Finished products $2,378 $2,504 Raw and packaging materials 1,231 1,183 Products in process 605 583 Materials in transit and payments on account 189 151 $4,403 $4,422

Property, Plant and Equipment

Property, Plant and Equipment	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment	NOTE 5—Property, plant and equipment: Property, plant and equipment, net, consisted of the following: December 31, 2020 2019 (U.S. $ in millions) Machinery and equipment $ 5,245 $ 5,385 Buildings 2,720 2,839 Computer equipment and other assets 2,197 2,131 Assets under construction and payments on account 933 672 Land 292 323 11,388 11,350 Less—accumulated depreciatio n (5,092 ) (4,914 ) $6,296 $6,436 Depreciation expenses were $537 million, $609 million and $676 million in the years ended December 31, 2020, 2019 and 2018, respectively. During the years ended December 31, 2020, 2019 and 2018, Teva had impairments of property See note 15 .

Identifiable Intangible Assets

Identifiable Intangible Assets	12 Months Ended
	Dec. 31, 2020
Identifiable Intangible Assets	NOTE 6—Identifiable intangible assets: Identifiable intangible assets consisted of the following: Gross carrying amount Accumulated Net carrying amount December 31, 2020 2019 2020 2019 2020 2019 (U.S. $ in millions) Product rights $ 19,650 $ 19,663 $ 12,094 $ 10,640 $ 7,556 $ 9,023 Trade names 621 600 165 126 456 474 In-process research and development (IPR&D) 911 1,735 — — 911 1,735 Total $ 21,182 $ 21,998 $ 12,259 $ 10,766 $ 8,923 $ 11,232 Product rights and trade names Product rights and trade names are assets presented at amortized cost. Product rights and trade names represent a portfolio of pharmaceutical products from various categories with a weighted average life of approximately 10 years. Amortization of intangible assets amounted to $1,020 million, $1,113 million and $1,166 million in the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, the estimated aggregate amortization of intangible assets for the years 2021 to 2025 is as follows: 2021—$812 million; 2022—$764 million; 2023—$744 million; 2024—$705 million and 2025—$723 million. These estimates do not include the impact of IPR&D that is expected to be successfully completed and reclassified to product rights. IPR&D Teva’s IPR&D are assets that have not yet been approved in major markets. Teva’s IPR&D is comprised mainly of various generic products from the Actavis Generics acquisition of $877 million. IPR&D carries intrinsic risks that the asset might not succeed in advanced phases and may be impaired in future periods. Intangible assets impairment Impairment of identifiable intangible assets amounted to $1,502 million, $1,639 million and $1,991 million in the years ended December 31, 2020, 2019 and 2018, respectively. These amounts are recorded in the statement of income (loss) under intangible assets impairment. Impairments in 2020 mainly consisted of: (a) IPR&D assets of $797 million, mainly due to: (i) $300 million related to generic pipeline products acquired from Actavis Generics resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date) in the United States; (ii) $262 million related to lenalidomide (generic equivalent of Revlimid®), due to modified competition assumptions as a result of settlements between the innovator and other generic filers; (iii) $211 million related to AUSTEDO for the treatment of Tourette syndrome in pediatric patients in the United States following clinical trial results, received in February 2020, which failed to meet their primary endpoints; and (b) Identifiable product rights of $705 million, mainly due to: (i) $398 million related to updated market assumptions regarding price and volume of products acquired from Actavis Generics that are primarily marketed in the United States; (ii) $165 million in Japan in connection with ongoing regulatory pricing reductions and generic competition; and (iii) $110 million related to a change in the assumptions regarding competition for the expected relaunch of metformin tablets. Impairments in 2019 mainly consisted of: (a) Identifiable product rights of $958 million, mainly due to: (i) $647 million due to updated market assumptions regarding price and volume of certain products acquired from Actavis Generics and primarily marketed in the United States, (ii) $128 million related to a decrease in future expected sales in Japan as a result of generic competition, and (iii) $123 million related to the discontinuation of certain products from Actavis Generics’ portfolio in several international markets; and (b) IPR&D assets of $681 million, due to: (i) $497 million related to various generic pipeline products acquired from Actavis Generics due to development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape, launch date or discount rate) in the United States (ii) $125 million related to lenalidomide (generic equivalent of REVLIMID ® Impairments in 2018 mainly consisted of: (a) Identifiable product rights of $1,068 million, mainly due to: (i) $412 million in connection with updated market assumptions regarding price and volume of products acquired from Actavis Generics currently marketed in the United States and supply constraints; (ii) $290 million in certain international markets, due to a loss of several tenders and termination of products manufacturing lines; and (iii) $222 million in Japan in connection with ongoing regulatory pricing reductions and generic competition. (b) IPR&D assets of $923 million, mainly related to revaluation of generic products acquired from Actavis Generics due to development progress and changes in other key valuation indications (e.g., market size, legal landscape, launch date or discount rate). The fair value measurement of the impaired intangible assets in 2020 is based measurement within the fair value hierarchy. The discount rate applied ranged from 7.5% to 9%. A probability of success factor of 80% was used in the majority of fair value calculation s to reflect inherent regulatory and commercial risk of IPR&D.

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2020
Goodwill	NOTE 7—Goodwill: The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 were as follows: North Europe International Other Total (U.S. $ in millions) Balance as of December 31, 201 8 (1) $ 11,098 $ 8,653 $ 2,479 $ 2,687 $ 24,917 Changes during the period: Goodwil l disposal (23 ) (5 ) — — (28 ) Translation differences 16 (112 ) 53 — (43 ) Balance as of December 31, 2019 (1) $ 11,091 $ 8,536 $ 2,532 $ 2,687 $ 24,846 Changes during the period: Goodwill reclassified as assets held for sale — (8 ) (19 ) — (27 ) Goodwill impairment (4,628 ) — — — (4,628 ) Translation differences 10 574 (151 ) — 433 Balance as of December 31 $ 6,473 $ 9,102 $ 2,362 $ 2,687 $ 20,624 (1) Accumulated goodwill impairment as of December 31, 2020, December 31, 2019 and December 31, 2018 was approximately $25.6 billion, $21.0 billion and $21.0 billion, respectively. Teva operates its business through three reporting segments: North America, 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 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 starts 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 recognize an impairment of goodwill allocated to its reporting units in the future. First Quarter Developments During the first quarter of 2020, management assessed developments that occurred during the quarter, including expected effects of the COVID-19 Based on this assessment, management concluded that it was not more likely than not that the fair value of any of the reporting units was below its carrying value as of March 31, 2020 and, therefore, no quantitative assessment was performed. Second Quarter Developments Pursuant to Company policy, the Company has historically performed its annual goodwill assessment during the fourth quarter of each year. During the second quarter of 2020, the Company changed its annual impairment assessment date from October 1 to June 30 to more closely align the impairment assessment date with the Company’s long-term planning and forecasting process. During the second quarter of 2020, Teva conducted a quantitative analysis of all reporting units as part of its annual goodwill impairment test and utilized the assistance of an independent valuation expert. No goodwill impairment charge was recorded during the second quarter of 2020. As part of the aforementioned analysis, Teva analyzed the aggregated fair value of its reporting units compared to its market capitalization as part of its annual goodwill impairment test, in order to assess the reasonableness of the results of its cash flow projections used for its goodwill impairment analysis. Management noted differences between the market capitalization and management’s internal projections as of the end of the second quarter. As of June 30, 2020, those differences were believed to be attributable to the following: • Management noted a portion of the difference can be attributed to sales projections of AJOVY and AUSTEDO in the International Markets reporting unit. Management continues to believe that the majority of analysts do not focus on these brands in preparing their financial models and, as a result, have not attributed value to the launch potential in this reporting unit. • Management noted an additional difference can be attributed to sales projections of AUSTEDO in the North America reporting unit, resulting in higher fair value as analyzed by management compared to Teva’s market capitalization. Management continues to believe that it has more accurate information based on its knowledge of the market and its growth and therefore no adjustment was incorporated to the fair value. • Management noted that market concerns regarding the uncertainty related to the opioid and price fixing litigation risks are impacting its market capitalization. Management believes that these concerns led to an acute reaction, which resulted in a decline in Teva’s share price. Management believed developments in the opioids case would clarify the outlook with regards to the opioid litigation, when the proposed settlement framework is finalized, which was expected in the near term. Even if management was to adjust the fair value of the North America reporting unit for any one of the uncertainties noted, the estimated fair value would still exceed its carrying amount. Management also noted that negative results related to all the uncertainties noted may lead to a material goodwill impairment charge. Third Quarter Developments During the third quarter of 2020, Teva’s share price experienced further decline. Teva analyzed its aggregated internal valuation of its reporting units compared to its market capitalization as part of its goodwill impairment test. Management believed there are similar reconciling factors to those referenced in the second quarter with additional declines occurring due to increased uncertainty related to certain litigation actions in the third quarter and the related uncertainties it added to the existing concerns around financial strength. During the third quarter of 2020, management noted the following factors that led to an assessment of the North America reporting unit for impairment: • The Company noted a 25% reduction in its market capitalization from the second quarter of 2020 to the third quarter of 2020. • With respect to the opioids litigation, as discussions continue with the group of Attorneys General regarding the nationwide framework and trial dates are postponed largely due to the COVID-19 • On August 25, 2020, the Company was indicted by the U.S. Department of Justice for alleged violations of the Sherman Act. • On August 18, 2020, the Company was sued by the U.S. Department of Justice alleging violations of the federal Anti-Kickback Statute, and asserting causes of action under the federal False Claims Act and state law. The Company is committed to its projected cash flow targets and management’s views on the litigation exposures have not changed. However, the developments indicated the timeframe for resolution will take significantly longer than previously expected which introduces greater uncertainty to a favorable resolution. In addition, management believed that analysts were unlikely to modify their projections until the Company could demonstrate progression on the resolution with respect to some or all of the above legal matters. As such, for purposes of testing the goodwill in the North America reporting unit under ASC 350 , management incorporated these factors into its valuation of the North America reporting unit, which resulted in an impairment charge of $4,628 million. Fourth Quarter Developments During the fourth quarter of 2020, management assessed developments 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. Based on this assessment, management concluded that it was not more likely than not that the fair value of any of the reporting units was below its carrying value as of December 31, 2020 and, therefore, no quantitative assessment was performed. Following the goodwill impairment charge recorded in the third quarter of 2020 to the North America reporting unit, the carrying value of the North America reporting unit equaled its fair value as of September 30, 2020. Therefore, if business conditions or expectations were to change materially, it may be necessary to record further impairment charges to the North America reporting unit in the future. The other reporting units all have fair value in excess of 10% over their book values as of December 31, 2020.

Leases

Leases	12 Months Ended
	Dec. 31, 2020
Leases	NOTE 8—Leases: Teva adopted the new accounting standard ASC 842 “Leases” and all the related amendments on January 1, 2019 and used the effective date as Teva’s date of initial application. The components of operating lease cost for the year ended December 31, 2020 were as follows: Year ended Year ended (U.S. $ in millions) (U.S. $ in millions) Operating lease cost: Fixed payments and variable payments that depend on an index or rate $ 148 $ 166 Variable lease payments not included in the lease liability 4 6 Short-term lease cost 3 6 $155 $178 Supplemental cash flow information related to operating leases was as follows: Year ended Year ended (U.S. $ in millions) (U.S. $ in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 151 $ 169 Right-of-use (non-cash): Operating leases $ 211 $ 142 Supplemental balance sheet information related to operating leases was as follows: December 31, December 31, (U.S. $ in millions) (U.S. $ in millions) Operating leases: Operating lease ROU assets $ 559 $ 514 Other current liabilities 116 118 Operating lease liabilities 479 435 Total operating lease liabilities $ 595 $ 553 December 31, December 31, 2020 2019 Weighted average remaining lease term Operating leases 7.5 years 7.5 years Weighted average discount rate Operating leases 5.2 % 6.0 % Maturities of operating lease liabilities were as follows: December 31, (U.S. $ in millions) 2021 $ 137 2022 119 2023 91 2024 73 2025 and thereafter 302 Total operating lease payments $ 722 Less: imputed interest 127 Present value of lease liabilities $ 595 At the end of the third quarter of , after obtaining the right to use the building, Teva began transitioning its corporate headquarters to a consolidated site in Tel-Aviv, Israel. Teva has an operating lease for the office space in Tel Aviv for an initial term of twelve and a half years, with an option for three extensions. Teva estimates that the reasonably certain holding period of the lease for accounting purposes is twelve and a half years. As of September 30, , upon initial recognition, million as operating lease right-of-use and $ million as operating lease liability. As of December 31, 2020, Teva’s total finance lease assets and finance lease liabilities were million, respectively. The difference between those amounts is mainly due to prepaid payments.

Debt obligations

Debt obligations	12 Months Ended
	Dec. 31, 2020
Debt obligations	NOTE 9—Debt obligations: a. Short-term debt: December 31, Weighted average Maturity 2020 2019 (U.S. $ in millions) Convertible debentures 0.25% 2026 514 514 Current maturities of long-term liabilities 2,674 1,831 Total short term debt $ 3,188 $ 2,345 Convertible senior debentures Teva 0.25% convertible senior debentures, due 2026, principal amount as of December 31, 2020 and 2019 were $514 million. These convertible senior debentures include a “net share settlement” feature according to which the principal amount will be paid in cash and in case of conversion, only the residual conversion value above the principal amount will be paid in Teva shares. Due to the “net share settlement” feature, exercisable at any time, these convertible senior debentures are classified in the Balance Sheet under short-term debt. Holders of the convertible debentures were able to cause Teva to redeem the debentures on February 1, 2021, and $491 million of the convertible debentures were redeemed on such date. b. Long-term debt: Weighted average Maturity December 31, December 31, % (U.S. $ in millions) Senior notes EUR 1,010 million (1) 0.38 % 2020 $ — $ 1,131 Senior notes EUR 1,500 million 1.13 % 2024 1,839 1,673 Senior notes EUR 1,300 million 1.25 % 2023 1,595 1,451 Senior notes EUR 900 million 4.50 % 2025 1,107 1,008 Senior notes EUR 750 million 1.63 % 2028 916 833 Senior notes EUR 700 million 3.25 % 2022 861 784 Senior notes EUR 700 million 1.88 % 2027 860 782 Senior notes EUR 1,000 million 6.00 % 2025 1,230 1,120 Senior notes USD 1,000 million 7.13 % 2025 1,000 1,000 Senior notes USD 3,500 million 3.15 % 2026 3,495 3,494 Senior notes USD 1,475 million 2.20 % 2021 1,472 1,474 Senior notes USD 3,000 million 2.80 % 2023 2,996 2,995 Senior notes USD 2,000 million 4.10 % 2046 1,986 1,985 Senior notes USD 1,250 million 6.00 % 2024 1,250 1,250 Senior notes USD 1,250 million 6.75 % 2028 1,250 1,250 Senior notes USD 844 million 2.95 % 2022 853 856 Senior notes USD 789 million 6.15 % 2036 783 782 Senior notes USD 700 million (2) 2.25 % 2020 — 700 Senior notes USD 613 million 3.65 % 2021 616 618 Senior notes USD 588 million 3.65 % 2021 586 587 Senior notes CHF 350 million 0.50 % 2022 397 361 Senior notes CHF 350 million 1.00 % 2025 398 362 Total senior notes 25,490 26,496 Other long-term debt 1.08 % 2026 1 1 Less current maturities (2,674 ) (1,831 ) Less debt issuance costs (86 ) (103 ) Total senior notes and loans $ 22,731 $ 24,562 (1) In July , Teva repaid at maturity € million of its senior notes. (2) In March , Teva repaid at maturity $ million of its senior notes. Long term debt was issued by several indirect wholly-owned subsidiaries of the Company and is fully and unconditionally guaranteed by the Company as to payment of all principal, interest, discount and additional amounts (as defined), if any. Long term debt as of December 31, 2020 is effectively denominated in the following currencies: U.S. dollar 60%, euro 37% and Swiss franc 3%. Teva’s principal sources of short-term liquidity are its cash on hand, existing cash investments, liquid securities and available credit facilities, primarily its $2.3 billion unsecured syndicated revolving credit facility entered into in April 2019 (“RCF”). The RCF agreement provides for two separate tranches, a billion tranche A and a billion tranche B. Loans and letters of credit will be available from time to time under each tranche for Teva’s general corporate purposes. Tranche A has a maturity date of April 8, 2022, with two one-year extension options, of which $1.065 billion was extended to April 8, 2023. Tranche B has a maturity date of April 8, 2024. The RCF contains certain covenants, including certain limitations on incurring liens and indebtedness and maintenance of certain financial ratios, including the requirement to maintain compliance with a net debt to EBITDA ratio, which becomes more restrictive over time. The RCF can be used for general corporate purposes, including repaying existing debt. As of December 31, 2020, and as of the date of this Annual Report on Form 10-K, no amounts were outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date these financial statements are issued. Under specified circumstances, including non-compliance with any of the covenants described above and the unavailability of any waiver, amendment or other modification thereto, the Company will not be able to borrow under the RCF. Additionally, violations of the covenants, under the above-mentioned circumstances, would result in an event of default in all borrowings under the RCF and, when greater than a specified threshold amount as set forth in each series of senior notes is outstanding, could lead to an event of default under the Company’s senior notes due to cross acceleration provisions. Teva expects that it will continue to have sufficient cash resources to support its debt service payments and all other financial obligations within one year from the date that these financial statements are issued. As of December 31, 2020, the required annual principal payments of long-term debt, excluding debt issuance cost, including convertible senior debentures, starting from the year 202 2 December 31, 2020 (U.S. $ in millions) 2022 $ 2,111 2023 4,591 2024 3,089 202 5 3,735 2026 and thereafter * 9,804 $ 23,330 * Including $514

Derivative instruments and hedg

Derivative instruments and hedging activities	12 Months Ended
	Dec. 31, 2020
Derivative Instruments and Hedging Activities	NOTE 10—Derivative instruments and hedging activities a. Foreign exchange risk management: In 2020, approximately 48% of Teva’s revenues were denominated in currencies other than the U.S. dollar. As a result, Teva is subject The Company enters into forward exchange contracts, purchases and writes options in order to hedge the currency exposure on balance sheet items, revenues and expenses. In addition, the Company takes measures to reduce exposure by using natural hedging. The Company also acts to offset risks in opposite directions among the subsidiaries within Teva. The currency hedged items are usually denominated in the following main currencies: the euro, the Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar, the Polish zloty, the Indian rupee and other European and Latin American currencies. Depending on market conditions, foreign currency risk is also managed through the use of foreign currency debt. The Company may choose to hedge against possible fluctuations in foreign subsidiaries net assets (“net investment hedge”) and entered into cross currency swaps and forward contracts in the past in order to hedge such an exposure. Most of the counterparties to the derivatives are major banks and the Company is monitoring the associated inherent credit risks. The Company does not enter into derivative transactions for trading purposes. b. Interest risk management: The Company raises capital through various debt instruments, including straight notes that bear a fixed or variable interest rate, bank loans and convertible debentures. In some cases, the Company has swapped from a fixed to a floating interest rate (“fair value hedge”) and from a fixed to a fixed interest rate with an exchange from a currency other than the functional currency (“cash flow hedge”), thereby reducing overall interest expenses or hedging risks associated with interest rate fluctuations. c. Derivative instrument disclosure: The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting: December 31, 2020 2019 (U.S. $ in millions) Cross-currency swap , — 1,000 d. Derivative instrument outstanding: The following table summarizes the classification and fair values of derivative instruments: Fair value Designated as hedging instruments Not designated as hedging instruments December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ — $ — $ 24 $ 32 Liability derivatives: Other current liabilities: Cross-currency swaps , — (22) Option and forward contracts — — (79 ) (41 ) The table below provides information regarding the location and amount of pre-tax Financial expenses, net Other comprehensive Year ended December 31, Year ended December 31, 2020 2019 2018** 2020 2019 2018** Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 834 $ 822 $ 959 $ (30 ) $ 160 $ (585 ) Cross-currency swaps—cash flow hedge (1) — (2 ) (2 ) — (33 ) (35 ) Cross-currency swaps , (2 ) (29 ) (31 ) (21 ) (22 ) (51 ) Interest rate swaps—fair value hedge (3) — 2 * — — — * Represents an amount less than $0.5 million. ** Comparative figures are based on prior hedge accounting standard. The table below provides information regarding the location and amount of pre-tax Financial expenses, net Net revenues Year ended December 31, Year ended December 31, 2020 2019 2018 2020 2019 2018 Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 834 $ 822 $ 959 $ 16,659 $ 16,887 $ 18,271 Option and forward contracts (4) 130 (51 ) (12 ) — — — Option and forward contracts (5) — — — * 14 (4 ) * Represents an amount less than $0.5 million. (1) With respect to cross-currency swap agreements, Teva recognized gains which mainly reflect the differences between the fixed interest rate and the floating interest rate. In the fourth quarter of 2019, Teva terminated $588 million in cross-currency swap agreements against its outstanding 3.65% senior notes maturing in November 2021. The settlement of these transactions resulted in cash proceeds of $95 million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense. (2) In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500 float-for-float (3) In the fourth quarter of 2016, Teva entered into an interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. With respect to this interest rate swap agreement, Teva recognized a loss which mainly reflects the differences between the fixed interest rate and the floating interest rate. In the third quarter of 2019, Teva terminated this interest rate swap agreement. The settlement of these transactions resulted in a gain position of $10 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense. (4) Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net. (5) Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar and some other currencies during the period for which such instruments are transacted. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. During 2019 and 2020, Teva entered into hedging instruments to hedge part of the projected 2020 operating results. In 2020, Teva recognized a gain of $27 million in relation with the 2020 hedging program. During the second half of 2020, Teva entered into hedging instruments to hedge part of the projected operating results for 2021. As part of the economic hedge treatment, Teva recorded a loss of $27 million in relation to the 2021 hedging instruments in the second half of 2020, while the positive foreign exchange impact on the underlying revenues and expenses, may occur upon their maturity in 2021. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. e. Amortizations due to terminated derivative instruments: Forward starting interest rate swaps and treasury lock agreements In 2015, Teva entered into forward starting interest rate swaps and treasury lock agreements to protect the Company from interest rate fluctuations in connection with a future debt issuance the Company was planning. These forward starting interest rate swaps and treasury lock agreements were terminated in July 2016 upon the debt issuance. The termination of these transactions resulted in a loss position of $493 million, which was recorded in other comprehensive income (loss) and is amortized under financial expenses, net over the life of the debt. With respect to these forward starting interest rate swaps and treasury lock agreements, losses of $31 million, $29 million and $28 million were recognized under financial expenses, net for the years ended December 31, 2020, 2019 and 2018, respectively. Fair value hedge In the third quarter of 2016, Teva terminated interest rate swap agreements designated as a fair value hedge relating to its 2.95% senior notes due 2022 with respect to $844 million notional amount and its 3.65% senior notes due 2021 with respect to $450 million notional amount. Settlement of these transactions resulted in a gain position of $41 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense. In the third quarter of 2019, Teva terminated $500 million interest rate swap agreements designated as a fair value hedge relating to its 2.8% senior notes due 2023 with respect to $3,000 million notional amount. Settlement of these transactions resulted in cash proceeds of $10 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt. Cash flow hedge In the fourth quarter of 2019, Teva terminated $588 million cross-currency swap agreements against its outstanding 3.65% senior notes maturing in November 2021. Settlement of these transactions resulted in cash proceeds of $95 million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt. With respect to the interest rate swap and cross-currency swap agreements, gains of $3 million, $6 million and $6 million were recognized under financial expenses, net for the years ended December 31, 2020, 2019 and 2018, respectively. f. Securitization: In April 2011, Teva established a trade receivables securitization program to sell trade receivables to BNP Paribas Bank (“BNP”). Under the program Teva (on a consolidated basis) receives an initial cash purchase price and the right to receive a deferred purchase price (“DPP”), according to the purchase price for the receivables sold by it. On an individual seller basis, each Teva subsidiary sells receivables to BNP for an amount equal to their nominal amount. BNP then immediately on-sells on-sells The SPE is a VIE for which Teva is considered to be the primary beneficiary. The SPE’s sole business consists of the purchase of receivables from Teva subsidiaries and the subsequent transfer of such receivables to the conduit. Although the SPE is included in Teva’s consolidated financial statements, it is a separate legal entity with separate creditors. The conduit and other designated creditors of the SPE are entitled, both before and upon the SPE’s liquidation, to be paid out of the SPE’s assets prior to the DPP payable to Teva. The assets of the SPE are not available to pay creditors of Teva or its subsidiaries. This program expires on August 21, 2021 but can be renewed with consent from the parties to the program up to August 20, 2022 or any other date agreed between the parties. Once sold to BNP, the relevant Teva subsidiary as seller has no retained interests in the receivables sold and they are unavailable to the relevant seller should the relevant seller become insolvent. The conduit has all the rights in the securitized trade receivables, including the right to pledge or dispose of such receivables. Consequently, receivables sold under this agreement are de-recognized The portion of the purchase price for the receivables which is not paid in cash by the conduit is a DPP asset. The conduit pays the SPE the DPP from collections received by the conduit from the securitized trade receivables (after paying senior costs and expenses, including the conduit’s debt service obligations), which the SPE then pays to Teva.The DPP asset represents a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The DPP asset is included in other current assets on Teva’s consolidated balance sheet. Teva has collection and administrative responsibilities for the sold receivables. The fair value of these servicing arrangements as well as the fees earned was immaterial. DPP asset as of December 31, 2020 and 2019 was $266 million and $250 million, respectively. As of December 31, 2020 and 2019, the balance of Teva’s securitized assets sold were $734 million and $690 million, respectively. The following table summarizes the sold receivables outstanding balance net of DPP asset under the outstanding securitization program: As of and for the year ended 2020 2019 (U.S. $ in millions) Sold receivables at the beginning of the year $ 690 $ 686 Proceeds from sale of receivables 4,606 4,852 Cash collections (remitted to the owner of the receivables) (4,607 ) (4,849 ) Effect of currency exchange rate changes 45 1 Sold receivables at the end of the year $ 734 $ 690

Legal Settlements and Loss Cont

Legal Settlements and Loss Contingencies	12 Months Ended
	Dec. 31, 2020
Legal Settlements and Loss Contingencies	NOTE 11—Legal settlements and loss contingencies: Legal settlements and loss contingencies for 2020 amounted to expenses of $60 million, compared to expenses of $1,178 million in 2019 2018. As of December 31, 2020 and 2019, Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses and other taxes and long-term liabilities was $1,625 million and $1,580 million, respectively.

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Dec. 31, 2020
Commitments and contingencies	NOTE 12—Commitments and contingencies: a. Commitments: Royalty commitments: The Company is committed to pay royalties to owners of know-how, Until September 30, 2018, royalty expenses were reported in cost of goods sold if related to the acquisition of a product, and if not, such expenses were included in S&M expenses. Commencing October 1, 2018, royalty expenses are retroactively reported entirely under cost of goods sold. Royalty expenses in each of the years ended December 31, 2020, 2019 and 2018 were $505 million, $403 million and $536 million, respectively. Milestone commitments: Teva has committed to make potential future milestone payments to third parties under various agreements. These payments are contingent upon the occurrence of certain future events and, given the nature of these events, it is unclear when, if ever, Teva may be required to pay such amounts. As of December 31, 2020, if all milestones and targets, for compounds in phase 2 and more advanced stages of development, are achieved, the total contingent payments could reach an aggregate amount of up to $509 million. b. Contingencies: General From time to time, Teva and/or its subsidiaries are subject to claims for damages and/or equitable relief arising in the ordinary course of business. In addition, as described below, in large part as a result of the nature of its business, Teva is frequently subject to litigation. Teva generally believes that it has meritorious defenses to the actions brought against it and vigorously pursues the defense or settlement of each such action. Teva records a provision in its financial statements to the extent that it concludes that a contingent liability is probable and the amount thereof is estimable. Based upon the status of the cases described below, management’s assessments of the likelihood of damages, and the advice of counsel, no provisions have been made regarding the matters disclosed in this note, except as noted below. Litigation outcomes and contingencies are unpredictable, and excessive verdicts can occur. Accordingly, management’s assessments involve complex judgments about future events and often rely heavily on estimates and assumptions. Teva continuously reviews the matters described below and may, from time to time, remove previously disclosed matters that the Company has determined no longer meet the materiality threshold for disclosure. If one or more of such proceedings described below were to result in final judgments against Teva, such judgments could be material to its results of operations and cash flows in a given period. In addition, Teva incurs significant legal fees and related expenses in the course of defending its positions even if the facts and circumstances of a particular litigation do not give rise to a provision in the financial statements. In connection with third-party agreements, Teva may under certain circumstances be required to indemnify, and may be indemnified by, in unspecified amounts, the parties to such agreements against third-party claims. Among other things, Teva’s agreements with third parties may require Teva to indemnify them, or require them to indemnify Teva, for the costs and damages incurred in connection with product liability claims, in specified or unspecified amounts. Except as otherwise noted, all of the litigation matters disclosed below involve claims arising in the United States. Except as otherwise noted, all third party sales figures given below are based on IQVIA (formerly IMS Health Inc.) data. Intellectual Property Litigation From time to time, Teva seeks to develop generic versions of patent-protected pharmaceuticals for sale prior to patent expiration in various markets. In the United States, to obtain approval for most generics prior to the expiration of the originator’s patents, Teva must challenge the patents under the procedures set forth in the Hatch-Waxman Act of 1984, as amended. To the extent that Teva seeks to utilize such patent challenge procedures, Teva is and expects to be involved in patent litigation regarding the validity, enforceability or infringement of the originator’s patents. Teva may also be involved in patent litigation involving the extent to which its product or manufacturing process techniques may infringe other originator or third-party patents. Additionally, depending upon a complex analysis of a variety of legal and commercial factors, Teva may, in certain circumstances, elect to market a generic version even though litigation is still pending. To the extent Teva elects to proceed in this manner, it could face substantial liability for patent infringement if the final court decision is adverse to Teva, which could be material to its results of operations and cash flows in a given period. Teva could also be sued for patent infringement outside of the context of the Hatch-Waxman Act. For example, Teva could be sued for patent infringement after commencing sales of a product. In addition, for biosimilar products, Teva could be sued according to the “patent dance” procedures of the Biologics Price Competition and Innovation Act (BPCIA). The general rule for damages in patent infringement cases in the United States is that the patentee should be compensated by no less than a reasonable royalty and it may also be able, in certain circumstances, to be compensated for its lost profits. The amount of a reasonable royalty award would generally be calculated based on the sales of Teva’s product. The amount of lost profits would generally be based on the lost sales of the patentee’s product. In addition, the patentee may seek consequential damages as well as enhanced damages of up to three times the profits lost by the patent holder for willful infringement, although courts have typically awarded much lower multiples. Teva is also involved in litigation regarding patents in other countries where it does business, particularly in Europe. The laws concerning generic pharmaceuticals and patents differ from country to country. Damages for patent infringement in Europe may include lost profits or a reasonable royalty, but enhanced damages for willful infringement are generally not available. In July 2014, GlaxoSmithKline (“GSK”) sued Teva in Delaware federal court for infringement of a patent expiring in June 2015 directed to using carvedilol in a specified manner to decrease the risk of mortality in patients with congestive heart failure. Teva and eight other generic producers began selling their carvedilol tablets (the generic version of GSK’s Coreg ® pre- two-to-one Teva filed a request for panel and en banc review. On February 9, 2021, the Federal Circuit granted panel rehearing. In its February 9, 2021 order, the Court vacated the October 2, 2020 judgment and scheduled oral argument for February 23, 2021. The Court will hear oral argument only on the issue of whether there is enough evidence to support the jury’s verdict of induced infringement during the time period from January 8, 2008 through April 30, 2011 (the “skinny label” period). If further appeals are decided against Teva, the case would be remanded to the district court for it to consider Teva’s other legal and equitable defenses that have not yet been considered by the district court. In 2014, Teva Canada succeeded in its challenge of the bortezomib (the generic equivalent of Velcade®) product and mannitol ester patents under the Patented Medicines (Notice Of Compliance) Regulations (“PM (NOC)”). At the time of Teva’s launch in 2015, annual sales of Velcade were approximately million Canadian dollars. Additionally, Teva commenced an action under Section 8 of PM (NOC) to recover damages for being kept off of the market during the PM (NOC) proceedings. Janssen and Millennium filed a counterclaim for infringement of the same two patents as well as a patent covering a process to prepare bortezomib. The product patent expired in October 2015; the other patents expire in January 2022 and March 2025. In 2017, Teva entered into an agreement with Janssen and Millennium which limited the damages payable by either party depending on the outcome of the infringement/impeachment action. As a result, the most Janssen and Millennium could have recovered is million Canadian dollars plus post-judgment interest. In June 2018, the court ruled that Janssen and Millennium pay Teva million Canadian dollars in Section 8 damages. Janssen and Millennium applied for leave to appeal to the Canadian Supreme Court. On May 8, 2020, the Canadian Supreme Court denied Janssen and Millennium’s application. This matter is now closed.​​​​​​​ Product Liability Litigation Teva’s business inherently exposes it to potential product liability claims. Teva maintains a program of insurance, which may include commercial insurance, self-insurance (including direct risk retention), or a combination of both approaches, in amounts and on terms that it believes are reasonable and prudent in light of its business and related risks. However, Teva sells, and will continue to sell, pharmaceuticals that are not covered by its product liability insurance; in addition, it may be subject to claims for which insurance coverage is denied as well as claims that exceed its policy limits. Product liability coverage for pharmaceutical companies is becoming more expensive and increasingly difficult to obtain. As a result, Teva may not be able to obtain the type and amount of insurance it desires, or any insurance on reasonable terms, in all of its markets. Teva and its subsidiaries are parties to litigation relating to previously unknown nitrosamine impurities discovered in certain products. The discovery led to a global recall of single and combination valsartan medicines around the world starting in July 2018 and to subsequent recalls on other products. The nitrosamine impurities in valsartan are allegedly found in the active pharmaceutical ingredient (API) supplied by multiple API manufacturers. Teva’s products allegedly at issue in the various nitrosamine-related litigations pending in the United States include valsartan, losartan, metformin and ranitidine. There are currently two Multi-District Litigations (“MDL”) pending in the United States District Courts. One MDL is pending in the United States District Court for the District of New Jersey for valsartan, losartan and irbesartan. The second MDL is pending in the United States District Court for the Southern District of Florida for ranitidine. The lawsuits against Teva in the MDLs consist of individual personal injury and/or product liability claims and economic damages claims brought by consumers and end payors on behalf of purported classes of other consumers and end payors as well as medical monitoring claims. Defendants’ motions to dismiss in the valsartan, losartan and irbesartan MDL were denied in part and granted in part, allowing plaintiffs to file amended complaints. On December 31, 2020, the court in the ranitidine MDL granted the generic defendants’ motion to dismiss on the grounds of preemption and deficient pleading, allowing plaintiffs to re-plead Competition Matters As part of its generic pharmaceuticals business, Teva has challenged a number of patents covering branded pharmaceuticals, some of which are among the most widely-prescribed and well-known drugs on the market. Many of Teva’s patent challenges have resulted in litigation relating to Teva’s attempts to market generic versions of such pharmaceuticals under the federal Hatch-Waxman Act. Some of this litigation has been resolved through settlement agreements in which Teva obtained a license to market a generic version of the drug, often years before the patents expire. Teva and its subsidiaries have increasingly been named as defendants in cases that allege antitrust violations arising from such settlement agreements. The plaintiffs in these cases, which are usually direct and indirect purchasers of pharmaceutical products, and often assert claims on behalf of classes of all direct and indirect purchasers, typically allege that (1) Teva received something of value from the innovator in exchange for an agreement to delay generic entry, and (2) significant savings could have been realized if there had been no settlement agreement and generic competition had commenced earlier. These class action cases seek various forms of injunctive and monetary relief, including damages based on the difference between the brand price and what the generic price allegedly would have been and disgorgement of profits, which are automatically tripled under the relevant statutes, plus attorneys’ fees and costs. The alleged damages generally depend on the size of the branded market and the length of the alleged delay, and can be substantial—potentially measured in multiples of the annual brand sales—particularly where the alleged delays are lengthy or branded drugs with annual sales in the billions of dollars are involved. Teva believes that its settlement agreements are lawful and serve to increase competition, and has defended them vigorously. In Teva’s experience to date, these cases have typically settled for a fraction of the high end of the damages sought, although there can be no assurance that such outcomes will continue. In June 2013, the U.S. Supreme Court held, in Federal Trade Commission (“FTC”) v. Actavis, Inc. (the “AndroGel case”), that a rule of reason test should be applied in analyzing whether such settlements potentially violate the federal antitrust laws. The Supreme Court held that a trial court must analyze each agreement in its entirety in order to determine whether it violates the antitrust laws. This new test has resulted in increased scrutiny of Teva’s patent settlements, additional action by the FTC and state and local authorities, and an increased risk of liability in Teva’s currently pending antitrust litigations. Beginning in April 2006, certain subsidiaries of Teva were named in a class action lawsuit filed in the U.S. District Court for the Eastern District of Pennsylvania with allegations that the settlement agreements entered into between Cephalon, Inc., now a Teva subsidiary (“Cephalon”), and various generic pharmaceutical companies in late 2005 and early 2006 to resolve patent litigation involving certain finished modafinil products (marketed as PROVIGIL ® In May 2015, Cephalon entered into a consent decree with the FTC (the “Modafinil Consent Decree”) under which the FTC dismissed its claims against Cephalon in the FTC Modafinil Action in exchange for payment of billion (less set-offs for prior settlements) by Cephalon and Teva into a settlement fund. Under the Modafinil Consent Decree, Teva also agreed to certain injunctive relief with respect to the types of settlement agreements Teva may enter into to resolve patent litigation in the United States for a period of ten years. The remaining balance of the settlement fund after consideration of the settlement with the State of California noted above is approximately million. In February 2019, in connection with the settlement of other unrelated FTC antitrust lawsuits, as described below, Teva and the FTC agreed to amend certain non-financial provisions of the Modafinil Consent Decree and to restart its ten-year term. Additionally, the European Commission issued a Statement of Objections and a Supplementary Statement of Objection in July 2017 and June 2020, respectively, and a final decision against both Cephalon and Teva in November 2020, finding that the 2005 settlement agreement between the parties had the object and effect of hindering the entry of generic modafinil, and imposed fines totaling €60.5 million on Teva and Cephalon. Teva and Cephalon filed an appeal against the decision in February 2021. A provision for this matter was included in the financial statements. Teva and its affiliates have been named as defendants in lawsuits that allege that multiple patent litigation settlement agreements relating to AndroGel ® challenging a September 2006 patent litigation settlement between Watson Pharmaceuticals, Inc. (“Watson”), from which Teva later acquired certain assets and liabilities, and Solvay Pharmaceuticals, Inc. (“Solvay”). The second lawsuit (the “Philadelphia AndroGel Litigation”) was filed by the F T C AndroGel ® $350 million at the time of the earlier Watson/Solvay settlement and approximately million at the time Actavis launched its generic version of AndroGel ® In December 2011, three groups of plaintiffs sued Wyeth and Teva for alleged violations of the antitrust laws in connection with their settlement of patent litigation involving extended release venlafaxine (generic Effexor XR ® ® $2.6 billion at the time of settlement and at the time Teva launched its generic version of Effexor XR ® In February 2012, two purported classes of direct-purchaser plaintiffs sued GSK and Teva in New Jersey federal court for alleged violations of the antitrust laws in connection with their settlement of patent litigation involving lamotrigine (generic Lamictal ® ® $950 million at the time of the settlement and approximately billion at the time Teva launched its generic version of Lamictal ® In April 2013, purported classes of direct purchasers of, and end payers for, Niaspan ® opt-out court denied the indirect purchasers’ motion for class certification without prejudice. On September 4, 2020, the indirect purchasers filed a renewed motion for class certification, which remains pending. In October 2016, the District Attorney for Orange County, California, filed a similar complaint in California state court, which has since been amended, alleging violations of state law. Defendants moved to strike the District Attorney’s claims for restitution and civil penalties to the extent not limited to alleged activity occurring in Orange County. The Superior Court denied that motion. The Court of Appeals subsequently reversed the decision and in June 2020, the California Supreme Court reversed the Court of Appeals’ decision, allowing the District Attorney’s claims to proceed. Annual sales of Niaspan ® $416 million at the time of the settlement and approximately billion at the time Teva launched its generic version of Niaspan ® Beginning in 2013, several putative class actions were filed against Actavis, Inc. and certain of its affiliates, alleging that Watson’s 2012 patent lawsuit settlement with Endo Pharmaceuticals Inc. relating to Lidoderm ® ® end-payers ® ® Since January 2014, numerous lawsuits have been filed in the U.S. District Court for the Southern District of New York by purported classes of end-payers ® end-payers’ ® $ billion and approximately $ million, respectively. At the time Teva launched its authorized generic version of Actos ® Actoplus Met in August 2012, annual sales of Actos ® Actoplus Met were approximately $ billion and approximately $ million, respectively. In May 2015, a purported class of end payers for Namenda IR ® ® ® $ billion and approximately $ million at the time other manufacturers first launched generic versions of Namenda IR ® 2015. In January 2019, generic manufacturer Cipla Limited filed a lawsuit against Amgen, which was later amended to include Teva as a defendant, in Delaware federal court, alleging, among other things, that a January 2, 2019 settlement agreement between Amgen and Teva, resolving patent litigation over cinacalcet (generic Sensipar ® end-payer ® ® On December 16, 2016, the U.K. Competition and Markets Authority (“CMA”) issued a statement of objections (a provisional finding of breach of the Competition Act) in respect of certain allegations against Allergan, Actavis UK and certain Auden Mckenzie entities alleging competition law breaches in connection with the supply of 10mg and 20mg hydrocortisone tablets in the U.K. On March 3, 2017 and February 28, 2019, the CMA issued second and third statements of objections in respect of certain additional allegations relating to the same products and covering part of the same time periods as in the first statement of objections. On February 12, 2020, the CMA issued a Supplementary Statement of Objections effectively combining the three previously issued statements referenced above and a Statement of Draft Penalty Calculation was issued on October 28, 2020. On January 9, 2017, Teva completed the sale of Actavis UK to Accord Healthcare Limited, in connection with which Teva will indemnify Accord Healthcare for potential fines imposed by the CMA and/or damages awarded by a court against Actavis UK in relation to the December 16, 2016 and March 3, 2017 statements of objections, and resulting from conduct prior to the closing date of the sale. In addition, Teva agreed to indemnify Allergan against losses arising from this matter in the event of any such fines or damages. A liability for this matter has been recorded in the financial statements. In October 2019, the European Commission commenced an inspection of Teva and subsequently requested information for purposes of investigating whether Teva may have abused a dominant position in the Multiple Sclerosis field, dating back to at least 2014. No formal proceedings have been initiated. Annual sales of COPAXONE ® Between September 1, 2020 and December 20, 2020, separate plaintiffs purporting to represent putative classes of direct and indirect purchasers and opt-out ® ® ® Government Investigations and Litigation Relating to Pricing and Marketing Teva is involved in government investigations and litigation arising from the marketing and promotion of its pharmaceutical products in the United States. In 2015 and 2016, Actavis and Teva USA each respectively received subpoenas from the U.S. Department of Justice (“DOJ”) Antitrust Division seeking documents and other information relating to the marketing and pricing of certain Teva USA generic products and communications with competitors about such products. On August 25, 2020, a federal grand jury in the Eastern District of Pennsylvania returned a three count indictment charging T e 20-cr-200 E-Cream, n In May 2018, Teva received a civil investigative demand from the DOJ Civil Division, pursuant to the federal False Claims Act, seeking documents and information produced since January 1, 2009 relevant to the Civil Division’s investigation concerning allegations that generic pharmaceutical manufacturers, including Teva, engaged in market allocation and price-fixing agreements, paid illegal remuneration, and caused false claims to be submitted in violation of the False Claims Act. An adverse resolution of this matter may include fines, penalties, financial forfeiture and compliance conditions. In 2015 and 2016, Actavis and Teva USA each respectively received a subpoena from the Connecticut Attorney General seeking documents and other information relating to potential state antitrust law violations. Subsequently, on December 15, 2016, a civil action was brought by the attorneys general of twenty states against Teva USA and several other companies asserting claims under federal antitrust law alleging price fixing of generic products in the United States. That complaint was later amended to add new states as named plaintiffs, as well as new allegations and new state law claims, and on June 18, 2018, the attorneys general of 49 states plus Puerto Rico and the District of Columbia filed a consolidated amended complaint against Actavis and Teva, as well as other companies and individuals. On May 10, 2019, most (though not all) of these attorneys general filed yet another antitrust complaint against Actavis, Teva and other companies and individuals, alleging price-fixing and market allocation with respect to additional generic products. On November 1, 2019, the state attorneys general filed an amended complaint, bringing the total number of plaintiff states and territories to 54. The amended complaint alleges that Teva was at the center of a conspiracy in the generic pharmaceutical industry, and asserts that Teva and others fixed prices, rigged bids, and allocated customers and market share with respect to certain additional products. On June 10, 2020, most, but not all, of the same states, with the addition of the U.S. Virgin Islands, filed a third complaint in the District of Connecticut naming, among other defendants, Actavis, but not Teva USA in a similar complaint relating to dermatological generics products. In the various complaints described above, the states seek a finding that the defendants’ actions violated federal antitrust law and state antitrust and consumer protection laws, as well as injunctive relief, disgorgement, damages on behalf of various state and governmental entities and consumers, civil penalties and costs. All such complaints have been transferred to the generic drug multidistrict litigation in the Eastern District of Pennsylvania (“Pennsylvania MDL”). On July 13, 2020, the court overseeing the Pennsylvania MDL chose the attorneys’ general November 1, 2019 complaint, referenced above, along with three complaints filed by private plaintiffs, to proceed first in the litigation as bellwether complaints. Teva moved the court to reconsider that ruling, and the motion was granted on February 9, 2021. As a result, the attorneys’ general November 1, 2019 amended complaint is not expected to be among the bellwether complaints in the Pennsylvania MDL. Beginning on March 2, 2016, and continuing through December 2020, numerous complaints have been filed in the United States on behalf of putative classes of direct and indirect purchasers of several generic drug products, as well as several individual direct and indirect purchaser opt-out seek injunctive relief and damages under federal antitrust law, and damages under various state laws. On October 16, 2018, the court In March 2017, Teva received a subpoena from the U.S. Attorney’s office in Boston, Massachusetts requesting documents related to Teva’s donations to patient assistance programs. Subsequently, in August 2020, the U.S. Attorney’s office in Boston, Massachusetts brought a civil action in the U.S. District Court for the District of Massachusetts alleging violations of the federal Anti-Kickback Statute, and asserting causes of action under the federal False Claims Act and state law. It is alleged that Teva caused the submission of false claims to Medicare through Teva’s donations to bona fide independent charities that provide financial assistance to patients. An adverse judgment may involve damages, civil penalties and injunctive remedies. On October 19, 2020, Teva filed a motion to dismiss the complaint, which remains pending. In December 2016, Teva resolved certain claims under the U.S. Foreign Corrupt Practices Act (“FCPA”) with the SEC and the DOJ. The settlement included a fine, disgorgement and prejudgment interest, a three-year deferred prosecution agreement (“DPA”) for Teva and the retention of an independent compliance monitor for a period of three years. In February 2020 the term of the monitorship provided for by the DPA and Teva’s consent judgement with the SEC expired and on March 4, 2020, following Teva’s certification to the SEC and the DOJ confirming that Teva had complied with its disclosure obligations under the DPA, the DOJ filed a motion to dismiss the information filed against Teva at the time the DPA was entered into. On July 21, 2020, the information was dismissed. Opioids Litigation Since May 2014, more than 3,000 complaints have been filed with respect to opioid sales and distribution against various Teva affiliates, along with several other pharmaceutical companies, by a number of cities, counties, states, other governmental agencies, tribes and private plaintiffs (including various putative class actions of individuals) in both state and federal courts. Most of the federal cases have been consolidated into a multidistrict litigation in the Northern District of Ohio (“MDL Opioid Proceeding”) and many of the cases filed in state court have been removed to federal court and consolidated into the MDL Opioid Proceeding. Two cases that were included in the MDL Opioid Proceeding were recently transferred back to federal district court for additional discovery, pre-trial 14-cv-04361 18-cv-07591-CRB allegedly engaged in improper marketing and distribution of opioids, including ACTIQ ® ® non-economic Absent resolutions, trials are expected to proceed in several states in 2021, unless postponed as a result of the COVID-19 pandemic. In May 2019, Teva settled the Oklahoma litigation brought by the Oklahoma Attorney General (State of Oklahoma, ex. rel. Mike Hunter, Attorney General of Oklahoma vs. Purdue Pharma L.P., et. al.) for million. The settlement did not include any admission of violation of law for any of the claims or allegations made. As the Company demonstrated a willingness to settle part of the litigation, for accounting purposes, management considered a portion of opioid-related cases as probable and, as such, recorded an estimated provision in the second quarter of 2019. Given the relatively early stage of the cases, management viewed no amount within the range to be the most likely outcome. Therefore, management recorded a provision for the reasonably estimable minimum amount in the assessed range for such opioid-related cases in accordance with Accounting Standards Codification 450 “Accounting for Contingencies.” On October 21, 2019, Teva reached a settlement with the two plaintiffs in the MDL Opioid Proceeding that was scheduled for trial for the Track One case, Cuyahoga and Summit Counties of Ohio. Under the terms of the settlement, Teva will provide the two counties with opioid treatment medication, buprenorphine naloxone (sublingual tablets), known by the brand name Suboxone ® Also on October 21, 2019, Teva and certain other defendants reached an agreement in principle with a group of Attorneys General from North Carolina, Pennsylvania, Tennessee and Texas for a nationwide settlement framework (the “framework”). The framework is designed to provide a mechanism by which the Company attempts to seek resolution of remaining potential and pending opioid claims by both the U.S. states and political subdivisions (i.e., counties, tribes and other plaintiffs) thereof. Under this framework, Teva would provide buprenorphine naloxone (sublingual tablets) with an estimated value of up to approximately As of January 2021, the Company continues to negotiate the terms and conditions of the framework. The Company cannot predict if the framework will be finalized with its current terms and obligations. The Company considered a range of potential settlement outcomes. The current provision remains a reasonable estimate of the ultimate costs if the nationwide settlement framework is finalized based on recent discussions. However, if not finalized for the entirety of the cases, a reasonable upper end of a range of loss cannot be determined. An adverse resolution of any of these lawsuits or investigations may involve large monetary penalties, damages, and/or other forms of monetary and non-monetary relief and could have a material and adverse effect on Teva’s reputation, business, results of operations and cash flows. Separately, on April 27, 2018, Teva received subpoena requests from the United States Attorney’s office in the Western District of Virginia and the Civil Division seeking documents relating to the manufacture, marketing and sale of branded opioids. In August 2019, Teva received a grand jury subpoena from the United States Attorney’s Office for the Eastern District of New York for documents related to the Company’s anti-diversion policies and procedures and distribution of its opioid medications, in what the Company understands to be part of a broader investigation into manufacturers’ and distributors’ monitoring programs and reporting under the Controlled Substances Act. In September 2019, Teva received subpoenas from the New York State Department of Financial Services (NYDFS) as part of an industry-wide inquiry into the effect of opioid prescriptions on New York health insurance premiums. Following a Statement of Changes and Notice of Hearing filed by the NYDFS, a hearing is currently scheduled to take place in June 2021. Currently, Teva cannot predict how the nationwide settlement framework agreement (if finalized) will affect these investigations and administrative actions. In addition, a number of state attorneys general, including a coordinated multistate effort, have initiated investigations into sales and marketing practices of Teva and its affiliates with respect to opioids. Other states are conducting their own investigations outside of the multistate group. Teva is cooperating

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2020
Income taxes	NOTE 13—Income taxes: a. Income (loss) before income taxes: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Parent Company and its Israeli subsidiaries $ 947 $ 542 $ 1,022 Non-Israeli subsidiaries (5,353 ) (1,807 ) (3,618 ) $ (4,406 ) $ (1,265 ) $ (2,596 ) b. Income taxes: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) In Israel $ 60 $ 107 $ 131 Outside Israel (228 ) (385 ) (326 ) $ (168 ) $ (278 ) $ (195 ) Current $ 182 $ 885 $ 700 Deferred (350 ) (1,163 ) (895 ) $ (168 ) $ (278 ) $ (195 ) 2020 2019 2018 (U.S. $ in millions) Income (Loss) before income taxes $ (4,406 ) $ (1,265 ) $ (2,596 ) Statutory tax rate in Israel 23.0 % 23.0 % 23.0 % Theoretical provision for income taxes $ (1,013 ) $ (291 ) $ (597 ) Increase (decrease) in the provision for income taxes due to: The Parent Company and its Israeli subsidiaries - Mainly tax benefits arising from reduced tax rates under benefit programs (183 ) (44 ) (134 ) Non-Israeli subsidiaries, including impairments * 1,369 (115 ) 381 U.S. Tax Cuts and Jobs Act effect 97 Increase (decrease) in other uncertain tax positions—net (341 ) 172 58 Effective consolidated income taxes $ (168 ) $ (278 ) $ (195 ) * In 2020 and 2018, income before income taxes includes goodwill impairment in non-Israeli The effective tax rate is the result of a variety of factors, including the geographic mix and type of products sold during the year, different effective tax rates applicable to non-Israeli In 2020, Teva released a valuation allowance on its deferred tax assets in one jurisdiction and recorded a valuation allowance in another jurisdiction, with both adjustments reflecting changes in the business forecasts of profitability in these jurisdictions. The net effect of these adjustments did not materially impact Teva’s effective tax rate for 2020. c. Deferred income taxes: December 31, 2020 2019 (U.S. $ in millions) Long-term deferred tax assets (liabilities), net: Inventory related $ 212 $ 144 Sales reserves and allowances 173 198 Provision for legal settlements 235 260 Intangible assets (*) (1,064 ) (1,733 ) Carryforward losses and deductions and credits (**) 2,176 1,689 Property, plant and equipment (142 ) (170 ) Deferred interest 527 648 Provisions for employee related obligations 107 106 Other 54 122 2,278 1,264 Valuation allowance—in respect of carryforward losses and deductions that may not be utilized (2,547 ) (1,974 ) $ (269 ) $ (710 ) (*) The decrease in deferred tax liability is mainly due to impairment and amortization. (**) The amounts are shown after reduction for unrecognized tax benefits of $ 63 million and $115 million as of December 31, 2020 2019 This amount represents the tax effect of gross carryforward losses and deductions with the following expirations: 2021 2022 2023 2029 2030 The deferred income taxes are reflected in the balance sheets among: December 31, 2020 2019 (U.S. $ in millions) Long-term assets—deferred income taxes 695 386 Long-term liabilities—deferred income taxes (964 ) (1,096 ) $ (269 ) $ (710 ) d. Uncertain tax positions: The following table summarizes the activity of Teva’s gross unrecognized tax benefits: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Balance at the beginning of the year $ 1,223 $ 1,072 $ 1,034 Increase (decrease) (238 ) 23 76 Increase related to current year tax positions 10 246 11 Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations (105 ) (118 ) (49 ) Other (2 ) — — Balance at the end of the year $ 888 $ 1,223 $ 1,072 Uncertain tax positions, mainly of a long-term nature, include 9 million, $ and $19 million years , respectively e. Tax assessments: Teva files income tax returns in various jurisdictions with varying statutes of limitations. Teva and its subsidiaries in Israel have received final tax assessments through tax year 2007. In 2013, Teva settled the 2005-2007 income tax assessment with the Israeli tax authorities, paying $213 million. No further taxes are due in relation to these years. Certain guidelines which were set pursuant to the agreement reached in relation to the 2005-2007 assessment have been implemented in the audit of tax years 2008-2011 The Israeli tax authorities issued tax assessment decrees for 2008-2012 and 2013-2016, challenging the Company’s positions on several issues. Teva has protested the 2008-2012 and 2013-2016 decrees before the Central District Court in Israel. The Company believes it has adequately provided for these items, however, adverse results could be material. In the United States, Teva has one tax issue in dispute for the 2009-2011 audit cycle, which is currently in litigation. The 2012-2014 audit cycle is ongoing, with an assessment report expected to be received in 2021. Additionally, Teva’s U.S. subsidiaries have multiple audit cycles open. The Company believes it has adequately provided for these items and that any adverse results would have an immaterial impact on Teva’s financial statements. Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. Trial in this case is scheduled to begin in March 2021 The Company’s subsidiaries in Europe have received final tax assessments mainly through tax year 2014. f. Basis of taxation: The Company and its subsidiaries are subject to tax in many jurisdictions, and estimation is required in recording the assets and liabilities related to income taxes. The Company believes that its accruals for tax liabilities are adequate for all open years. The Company considers various factors in making these assessments, including past history, recent interpretations of tax law, and the specifics of each matter. Because tax regulations are subject to interpretation and tax litigation is inherently uncertain, these assessments can involve a series of complex judgments regarding future events. Incentives Applicable until 2013 Under the incentives regime applicable to the Company until 2013, industrial projects of Teva and certain of its Israeli subsidiaries were eligible for “Approved Enterprise” status. Most of the projects in Israel have been granted Approved Enterprise status under the “alternative” tax benefit track which offered tax exemption on undistributed income for a period of two to ten years, depending on the location of the enterprise. Upon distribution of such exempt income, the distributing company is subject to corporate tax at the rate ordinarily applicable to the Approved Enterprise’s income. Amendment 69 to the Investment Law Pursuant to Amendment 69 to the Investment Law (“Amendment 69”), a company that elected by November 11, 2013 to pay a corporate tax rate as set forth in that amendment (rather than the tax rate applicable to Approved Enterprise income) with respect to undistributed exempt income accumulated by the company up until December 31, 2011 is entitled to distribute a dividend from such income without being required to pay additional corporate tax with respect to such dividend. A company that has so elected must make certain qualified investments in Israel over the five-year period commencing in 2013. Teva invested the entire required amount in 2013. During 2013, Teva applied the provisions of Amendment 69 to certain exempt profits Teva accrued prior to 2012. Consequently, Teva paid $577 million in corporate tax on exempt income of $9.4 billion. Part of this income was distributed as dividends during 2013-2018, while the remainder is available to be distributed as dividends in future years with no additional corporate tax liability. Incentives Applicable starting 2014: The Incentives Regime – Amendment 68 to the Investment Law Under Amendment 68 to the Investment Law, which Teva started applying in 2014, upon an irrevocable election made by a company, a uniform corporate tax rate will apply to all qualifying industrial income of such company (“Preferred Enterprise”), as opposed to the previous law’s incentives, which were limited to income from Approved The New Technological Enterprise Incentives Regime – Amendment 73 to the Investment Law Since 2017, a portion of the Company’s taxable income in Israel is entitled to a preferred 6% tax rate under Amendment 73 to the Investment Law as it pertains to Special Preferred Technological Enterprises. The new incentives regime applies to “Preferred Technological Enterprises” or “Special Preferred Technological Enterprises.” A “Preferred Technological Enterprise” is an enterprise that meet certain conditions, including, inter alia: a. Investment of at least 7% of income, or at least NIS 75 million (approximately $22 million) in R&D activities; and b. One of the following: a. At least 20% of the workforce (or at least 200 employees) are employed in R&D; b. A venture capital investment approximately equivalent to at least $2 million was previously made in the company; or c. Growth in sales or workforce by an average of 25% over the three years preceding the tax year. A “Special Preferred Technological Enterprise” is an enterprise that meets, inter alia conditions 1 and 2 above, and in addition has total annual consolidated revenues above NIS 10 billion (approximately $2.9 billion). Preferred Technological Enterprises are subject to a corporate tax rate of 7.5% on their income derived from intellectual property in areas in Israel designated as Zone A and 12% elsewhere, while Special Preferred Technological Enterprises are subject to 6% on such income. The withholding tax on dividends from these enterprises is 4% to foreign companies (or a lower rate under a tax treaty, if applicable). Income not eligible for Preferred Technological Enterprise benefits is taxed at the regular corporate tax rate, which is 23%, or the preferred tax rate, as the case may be. The Parent Company and its Israeli subsidiaries elected to compute their taxable income in accordance with Income Tax Regulations (Rules for Accounting for Foreign Investors Companies and Certain Partnerships and Setting their Taxable Income), 1986. Accordingly, the taxable income or loss is calculated in U.S. dollars. Applying these regulations reduces the effect of U.S. dollar—NIS exchange rate on the Company’s Israeli taxable income . Non-Israeli U.S. Tax reform On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which among other provisions, reduced the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018, and imposed a one-time deemed repatriation tax based on the post-1986 earnings and profits of the Company’s U.S. owned foreign subsidiaries. The one-time deemed repatriation tax is based on the post-1986 earnings and profits for which the Company has previously deferred from U.S. income taxes and is payable over 8 years. The year ended December 31, 2017 included a $112 million provisional estimate for Teva’s one-time deemed repatriation taxes liability. During 2018, Teva completed its analysis of the impacts of the Act and recorded an additional expense of $97 million, pursuant to guidance issued by the U.S. Department of Treasury and revisions to the Company’s estimates since the assessment date.

Equity

Equity	12 Months Ended
	Dec. 31, 2020
Equity	NOTE 14—Equity: a. Ordinary shares and ADSs As of December 31, 2020 and 2019, Teva had approximately 1.2 billion ordinary shares issued. Teva ordinary shares are traded on the Tel-Aviv Stock Exchange and on the New York Stock Exchange, in the form of American Depositary Shares (“ADSs”), each of which represents one ordinary share . b. Mandatory convertible preferred shares On December 17, 2018, Teva’s c. Stock-based compensation plans Stock-based compensation plans are comprised of stock options, RSUs, PSUs, and other equity-based awards to employees, officers, directors and consultants of the Company and its affiliates. The purpose of the plans is to (a) attract, retain, motivate, and reward such individuals, and (b) promote the creation of long-term value for shareholders of the Company by closely aligning the interests of such individuals with those of the shareholders. On June 29, 2010, the Teva 2010 Long-Term Equity-Based Incentive Plan was approved by Teva’s shareholders, under which 70 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant. The 2010 Plan expired on June 28, 2015 (except with respect to awards outstanding on that date), and no additional awards under the 2010 Plan may be made. On September 3, 2015, the Teva 2015 Long-Term Equity-Based Incentive Plan was approved by Teva’s shareholders, under which 43.7 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant. On April 18, 2016, Teva’s shareholders approved an increase of an additional 33.3 million equivalent share units to the share reserve of Teva’s 2015 Long-Term Equity-Based Incentive Plan, so that 77 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, are approved for grant. On July 13, 2017, Teva’s shareholders approved an increase of an additional 65 million equivalent share units to the share reserve of Teva’s 2015 Long-Term Equity-Based Incentive Plan, so that 142 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, are approved for grant. The 2015 Plan expired on June 30 On June 11, 2020, the Teva 2020 Long-Term Equity-Based Incentive Plan was approved by Teva’s shareholders and became effective on July 1, 2020. Under the plan, 68 million shares, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant. As of December 31, 2020, 74 million shares remain available for future awards under the 2020 Long-Term Equity-Based Incentive Plan. In the past, Teva had various employee stock and incentive plans under which stock options and other share-based awards were granted. Stock options and other share-based awards granted under such prior plans continue in accordance with the terms of the respective plans. The vesting period of the outstanding options and RSUs is generally from 1 to 4 years from the date of grant. The vesting period of PSUs is generally 3 years from the date of grant. The rights of the ordinary shares obtained from the exercise of options, RSUs or PSUs are identical to those of the other ordinary shares of the Company. The contractual term of these options is primarily for ten years. A summary of the status of the options granted by Teva as of December 31, 2020, 2019 and 2018, and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercisable in respect thereof). Year ended December 31, 2020 2019 2018 Number (in thousands) Weighted Number (in thousands) Weighted Number (in thousands) Weighted Balance outstanding at beginning of year 40,064 $ 37.90 48,393 $ 38.62 43,121 $ 44.32 Changes during the year: Granted — — — — 12,401 19.12 Exercised — — (11 ) 16.99 (84 ) 17.01 Forfeited (3,610 ) 40.24 (8,318 ) 42.12 (7,040 ) 39.38 Expired (1,220 ) 49.35 — — (5 ) 50.65 Balance outstanding at end of year 35,234 37.27 40,064 37.90 48,393 38.62 Balance exercisable at end of year 28,556 40.56 26,601 43.41 24,086 46.89 The weighted average fair value of options granted during these Year ended December 31, 2020 2019 2018 Weighted average fair value — — $ 7.4 The fair value of these options was estimated on the date of grant, based on the following weighted average assumptions: Year ended December 31, 2020 2019 2018 Expected volatility — — 40 % Risk-free interest rate — — 2.6 % Expected term — — 5 years The expected term was estimated based on the weighted average period for which the options granted are expected to be outstanding, taking into consideration the current vesting of options and the historical exercise patterns of existing options. The expected volatility assumption used is based on a blend of the historical and implied volatility of the Company’s stock. The risk-free interest rate used is based on the yield of U.S. Treasuries with a maturity closest to the expected term of the options granted. The following tables summarize information as of December 31, 2020 regarding the number of ordinary shares issuable upon (1) outstanding options and (2) vested options: (1) Number of ordinary shares issuable upon exercise of outstanding options Range of exercise prices Balance at end of Weighted average Weighted average Number of shares $ Years Lower than $15.01 592 11.40 6.84 $15.01 10,087 18.93 7.12 $25.01 7,221 34.61 6.16 $35.01 5,216 40.66 1.46 $45.01 7,895 51.06 4.10 $55.01 4,223 59.26 4.30 Total 35,234 37.27 5.07 (2) Number of ordinary shares issuable upon exercise of vested options Range of exercise prices Balance at end of Weighted average Weighted average Number of shares $ Years Lower than $15.01 394 11.40 6.84 $15.01 5,431 18.81 7.09 $25.01 5,423 34.61 6.16 $35.01 5,216 40.66 1.46 $45.01 7,895 51.06 4.10 $55.01 4,197 59.28 4.30 Total 28,556 40.56 4.65 The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $ 9.65 in-the-money. The total intrinsic value of options exercised during the years ended December 31, 2019 and 2018 was immaterial, based on the Company’s average stock price of $11.50 and $20.92, for the years then ended, respectively. No options were exercised during 2020. non-vested The following table summarizes information about the number of RSUs and PSUs granted Year ended December 31, 2020 2019 2018 Number (in thousands) Weighted Number (in thousands) Weighted Number (in thousands) Weighted Balance outstanding at beginning of year 15,977 $ 16.49 10,403 $ 20.93 7,468 $ 27.95 Granted 10,848 11.42 9,303 15.36 5,900 18.80 Vested (4,324 ) 19.49 (2,435 ) 30.24 (1,638 ) 37.30 Forfeited (1,781 ) 18.18 (1,294 ) 18.74 (1,327 ) 32.50 Balance outstanding at end of year 20,720 13.81 15,977 16.49 10,403 20.93 The Company expenses compensation costs are based on the grant-date fair value. For the years ended December 31, 2020, 2019 and 2018, the Company recorded stock-based compensation costs as follows: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Employee stock options $ 30 $ 46 $ 74 RSUs and PSUs 99 73 81 Total stock-based compensation expense 129 119 155 Tax effect on stock-based compensation expense 14 14 18 Net effect $ 115 $ 105 $ 137 As of December 31, 2020, the total unrecognized compensation cost before tax on employee stock options and RSUs d. Dividends Teva has not paid dividends on Teva ordinary shares or ADSs since December 2017. e. Accumulated other comprehensive los s The components of accumulated other comprehensive loss attributable to Teva are presented in the table below: Net Unrealized Gains/(Losses) Benefit Plans Foreign Available- for-sale Derivative Actuarial Total (U.S. $ in millions) Balance as of January 1, 2018 $ (1,139 ) $ (4 ) $ (619 ) $ (91 ) $ (1,853 ) Cumulative effect of new accounting standard** — 5 — — 5 Other comprehensive income/(loss) before reclassifications (729 ) (1 ) 87 4 (639 ) Amounts reclassified to the statements of income — 1 28 13 42 Net other comprehensive income/(loss) before tax (729 ) — 115 17 (597 ) Corresponding income tax (10 ) — — (4 ) (14 ) Net other comprehensive income/(loss) after tax* (739 ) — 115 13 (611 ) Balance as of December 31, 2018 (1,878 ) 1 (504 ) (78 ) (2,459 ) Other comprehensive income/(loss) before reclassifications 100 (1 ) 54 (11 ) 142 Amounts reclassified to the statements of income — — 30 (10 ) 20 Net other comprehensive income/(loss) before tax 100 (1 ) 84 (21 ) 162 Corresponding income tax (16 ) — — 1 (15 ) Net other comprehensive income/(loss) after tax* 84 (1 ) 84 (20 ) 147 Balance as of December 31, 2019 (1,794 ) — (420 ) (98 ) (2,312 ) Other comprehensive income/(loss) before reclassifications (190 ) — 22 (7 ) (175 ) Amounts reclassified to the statements of income — — 35 (12 ) 23 Net other comprehensive income/(loss) before tax (190 ) — 57 (19 ) (152 ) Corresponding income tax 65 — — 1 66 Net other comprehensive income/(loss) after tax* (125 ) — 57 (18 ) (86 ) Balance as of December 31, 2020 $ (1,919 ) — $ (363 ) $ (117 ) $ (2,399 ) * Amounts do not include foreign currency translation adjustments attributable to non-controlling interests of $56 million gain in 2020 2019 million gain in 2018. ** Following the adoption of ASU 2016-01, the Company recorded a $5

Other assets impairments, restr

Other assets impairments, restructuring and other items	12 Months Ended
	Dec. 31, 2020
Other assets impairments, restructuring and other items	NOTE 15—Other assets impairments, restructuring and other items: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Impairment of long-lived tangible assets (1) $ 416 $ 139 $ 500 Contingent consideration (see note 2) (81 ) 59 57 Restructuring 120 199 488 Other 24 26 (58 ) Total $ 479 $ 423 $ 987 (1) Including impairments related to exit and disposal activities. Following Teva’s two-year Impairments Impairments of tangible assets for the years ended December 31, 2020, 2019 and 2018 were $416 million , million, respectively. The impairment for the year ended December 31, 2020 was mainly related to the sale of , which was completed on February 1, 2021, as well as Contingent consideration In 2020, Teva recorded an income of $81 million for contingent consideration, compared to an expense of $59 million and $57 million in 2019 and 2018 respectively. The income in 2020 was mainly related to a change in the future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid ® expense was ® ® Restructuring In 2020, Teva recorded $120 million of restructuring expenses, compared to $199 million in 2019 and $488 million in 2018. The expenses in 2020 were primarily related to residual expenses and other network consolidation impacts. In December 2017, Teva announced a comprehensive two-year The following tables provide the components of costs associated with Teva’s restructuring plan, including other costs associated with Teva’s restructuring plan and recorded under different items: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Restructuring Employee termination $ 71 $ 159 $ 410 Other 49 40 78 Total $ 120 $ 199 $ 488 The following table provides the components of and changes in the Company’s restructuring accruals: Employee Other Total (U.S. $ in millions ) Balance as of January 1, 2019 $ (204 ) $ (29 ) $ (233 ) Provision (159 ) (40 ) (199 ) Utilization and other* 155 62 217 Balance as of December 31, 2019 $ (208 ) $ (7 ) $ (215 ) Provision (71 ) (49 ) (120 ) Utilization and other * 164 49 213 Balance as of December 31, 2020 $ (115 ) $ (7 ) $ (122 ) * Includes adjustments for foreign currency translation. Significant regulatory and other events In July 2018, the FDA completed an inspection of Teva’s manufacturing plant in Davie, Florida in the United States, and issued a Form FDA-483 to the site. In October 2018, the FDA notified Teva that the inspection of the site is classified as “official action indicated” (OAI). On February 5, 2019, Teva received a warning letter from the FDA that contained four additional enumerated concerns related to production, quality control and investigations at this site. Teva has been working diligently to address the FDA’s concerns in a manner consistent with current good manufacturing practice (cGMP) requirements as quickly and as thoroughly as possible. An FDA follow up inspection occurred in January 2020, resulting in some follow up findings and Teva received a letter from the FDA dated April 24, 2020 notifying it that the site continues to be classified as OAI. If Teva is unable to remediate the findings to the FDA’s satisfaction, Teva may face additional consequences. These would potentially include delays in FDA approval for future products from the site, financial implications due to loss of revenues, impairments, inventory write-offs, customer penalties, idle capacity charges, costs of additional remediation and possible FDA enforcement action. Teva expects to generate approximately million in revenues from this site in 2021, assuming remediation or enforcement does not cause any unscheduled slowdown or stoppage at the facility, however, delays in FDA approvals of future products from the site may occur. In July 2018, Teva announced the voluntary recall of valsartan and certain combination valsartan medicines in various countries due to the detection of trace amounts of a previously unknown nitrosamine impurity called NDMA found in valsartan API supplied by Zhejiang Huahai Pharmaceuticals Co. Ltd. (“Huahai”). Since July 2018, Teva has been actively engaged with global regulatory authorities in reviewing its sartan and other products to determine whether NDMA and/or other related nitrosamine impurities are present in specific products. Where necessary, Teva has initiated additional voluntary recalls. In December 2019, Teva reached a settlement with Huahai resolving Teva’s claims related to certain sartan API supplied by Huahai. Under the settlement agreement, Huahai agreed to compensate Teva for some of its direct losses and provide it with prospective cost reductions for API. The settlement does not release Huahai from liability for any losses Teva may incur as a result of third party personal injury or product liability claims relating to the sartan API at issue. In addition, multiple lawsuits have been filed in connection with this matter, which may lead to additional customer penalties, impairments and litigation costs. In the second quarter of 2020, Teva’s operations in its manufacturing facilities in Goa, India were temporarily suspended due to a water supply issue. During the second half of 2020, Teva has completed partial remediation of this issue and has restarted limited supply from its Goa facilities. The impact to Teva’s financial results for the twelve months ended December 31, 2020 was immaterial, however, if the full remediation takes longer than expected there may be further loss of sales, customer penalties or impairments to related assets.

Other income

Other income	12 Months Ended
	Dec. 31, 2020
Other income	NOTE 16—Other income: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Gain on divestitures, net of divestitures related costs (1) $ 8 50 67 Section 8 and similar payments (2) — 5 195 Gain (loss) on sale of assets 11 (1 ) 9 Other, net 20 22 20 Total other income $ 40 $ 76 $ 291 (1) Mainly related to the divestment of several activities in the International Markets segment. (2) Section 8 of the Patented Medicines (Notice of Compliance) Regulation relates to recoveries of lost revenue related to patent infringement proceedings in Canada.

Financial expenses, net

Financial expenses, net	12 Months Ended
	Dec. 31, 2020
Financial expenses, net	NOTE 17—Financial expenses, net: Year ended December, 31 2020 2019 2018 (U.S. $ in millions) Interest expenses and other bank charges 963 881 920 Income from investments (1) (104 ) (41 ) (39 ) Foreign exchange (gains) losses, net (26 ) (15 ) 13 Other, net (2) — (4 ) 65 Total finance expense, net $ 834 $ 822 $ 959 (1) In 2020, Income from investments comprised mainly of revaluation gain of Teva’s investment in American Well Corporation (“American Well”). See note 20. (2) In 2018, Other, net comprised mainly of a make-whole payment of $46 million following early redemption of senior notes during 2018.

Earnings (Loss) per Share

Earnings (Loss) per Share	12 Months Ended
	Dec. 31, 2020
Earnings (Loss) per Share	NOTE 18—Earnings (loss) per share: The net income (loss) attributable to Teva and the weighted average number of ordinary shares used in the computation of basic and diluted earnings (loss) per share for the years ended December 31, 2020, 2019 and 2018 are as follows: Year ended December, 31 2020 2019 2018 (U.S. $ in millions, except share data) Net income (loss) used for the computation of basic and earnings (loss) (3,990 ) $ (999 ) $ (2,399 ) Weighted average number of shares used in the computation of basic earnings (loss) 1,095 1,091 1,021 Weighted average number of shares used in the computation of diluted earnings (loss) 1,095 1,091 1,021 Basic earnings and loss per share are computed by dividing net income (loss) attributable to Teva’s ordinary shareholders by the weighted average number of ordinary shares outstanding (including fully vested restricted share units (“RSUs”)) during the period, net of treasury shares. In computing diluted loss per share for the years ended December 31, 2020, 2019 and 2018, no account was taken of the potential dilution that could occur upon the exercise of employee stock options, RSUs and PSUs, amounting to 104 million, 113 million and 51 million weighted average shares, respectively, and convertible senior debentures, since they had an anti-dilutive effect on loss per share. Additionally, in computing diluted loss per share for the period between January 1, 2018 and December 17, 2018, no account was taken of the potential dilution of the mandatory convertible preferred shares amounting to 74 million since they had an anti-dilutive effect on loss per share. Basic and diluted loss per share was $3.64 for the year ended December 31, 2020, compared to basic and diluted loss per share of $0.91 and $2.35 for the years ended December 31, 2019 and December 31, 2018, respectively.

Segments

Segments	12 Months Ended
	Dec. 31, 2020
Segments	NOTE 19—Segments: Teva operates its business and reports its financial results in three segments: (a) North America segment, which includes the United States and Canada. (b) Europe segment, which includes the European Union and certain other European countries. (c) International Markets segment, which includes all countries other than those in the North America and Europe segments. In addition to these three segments, Teva has other sources of revenues included in other activities, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing Teva’s Chief Executive Officer (“CEO”), who is the chief operating decision maker (“CODM”), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the three identified reportable segments, namely North America, Europe and International Markets, to make decisions about resources to be allocated to the segments and assess their performance Segment profit is comprised of gross profit for the segment less R&D expenses, S&M expenses, G&A expenses and other income related to the segment. Segment profit does not include amortization and certain other items. Teva manages its assets on a company basis, not by segments, as many of its assets are shared or commingled. Teva’s CODM does not regularly review asset information by reportable segment and, therefore, Teva does not report asset information by reportable segment. Teva’s CEO may review its strategy and organizational structure. Any changes in strategy may lead to a reevaluation of the Company’s segments and goodwill allocation to reporting units, as well as fair value attributable to its reporting units. See note 7. a. Segment information: Year ended December 31, 2020 North America Europe International Markets (U.S. $ in millions) Revenues $ 8,447 $ 4,757 $ 2,154 Gross profit 4,489 2,666 1,096 R&D expenses 622 247 70 S&M expenses 1,013 830 427 G&A expenses 443 261 136 Other income (10 ) (3 ) (11 ) Segment profit $ 2,421 $ 1,331 $ 474 Year ended December 31, 2019 North America Europe International Markets (U.S. $ in millions) Revenues $ 8,542 $ 4,795 $ 2,246 Gross profit 4,350 2,704 1,167 R&D expenses 652 262 88 S&M expenses 1,021 890 481 G&A expenses 439 239 138 Other income (14 ) (5 ) (3 ) Segment profit $ 2,252 $ 1,318 $ 464 Year ended December 31, 2018 North America Europe International Markets (U.S. $ in millions) Revenues $ 9,297 $ 5,186 $ 2,422 Gross profit 4,979 2,884 1,254 R&D expenses 713 283 96 S&M expenses 1,154 1,003 518 G&A expenses 484 325 153 Other income (209 ) — (11 ) Segment profit $ 2,837 $ 1,273 $ 498 Year ended December 31, 2020 2019 2018 (U.S.$ in millions) North America profit $ 2,421 $ 2,252 $ 2,837 Europe profit 1,331 1,318 1,273 International Markets profit 474 464 498 Total reportable segments profit 4,225 4,034 4,608 Profit (loss) of other activities 163 108 115 Total segments profit 4,388 4,142 4,723 Amounts not allocated to segments: Amortization 1,020 1,113 1,166 Other asset impairments, restructuring and other items 479 423 987 Goodwill impairment 4,628 — 3,027 Intangible asset impairments 1,502 1,639 1,991 Gain on divestitures, net of divestitures related costs (8 ) (50 ) (66 ) Other R&D expenses (income) 37 (15 ) 83 Costs related to regulatory actions taken in facilities 23 45 14 Legal settlements and loss contingencies 60 1,178 (1,208 ) Other unallocated amounts 219 252 366 Consolidated operating income (loss) (3,572 ) (443 ) (1,637 ) Financial expenses, net 834 822 959 Consolidated income (loss) before income taxes $ (4,406 ) $ (1,265 ) $ (2,596 ) b. Segment revenues by major products and activities: The following tables present revenues by major products and activities for each segment for the year ended December 31, 2020, 2019 and 2018: North America segment: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Generic products $ 4,010 $ 3,963 $ 4,056 AJOVY 134 93 3 AUSTEDO 637 412 204 BENDEKA/TREANDA 415 496 642 COPAXONE 884 1,017 1,759 ProAir* 241 274 397 QVAR 179 250 182 Anda 1,462 1,492 1,347 Other 485 546 708 Total $ 8,447 $ 8,542 $ 9,297 * Does not include revenues from the ProAir authorized generic, which are included under generic products. Europe segment: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Generic products $ 3,513 $ 3,470 $ 3,593 AJOVY 31 3 — COPAXONE 400 432 535 Respiratory products 353 354 402 Other 459 536 656 Total $ 4,757 $ 4,795 $ 5,186 International Markets segment: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Generic products $ 1,792 $ 1,893 $ 2,022 COPAXONE 53 63 72 Other 309 291 328 Total $ 2,154 $ 2,246 $ 2,422 Teva revenues from external customers attributed to Israel were less than 5% of the consolidated revenues in the years ended December 31, 2020, 2019 and 2018, respectively. c. Supplemental data—major customers: The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2020, 2019 and 2018. Percentage of Third Party Net Sales 2020 2019 2018 McKesson Corporation 12 % 13 % 12 % AmerisourceBergen Corporation 12 % 12 % 14 % Most of Teva’s revenues from these customers were in the North America segment. d. Property, plant and equipment—by geographical location were as follows: December 31, 2020 2019 (U.S. $ in millions) Israel $ 1,611 $ 1,670 United States 790 864 Croatia 539 517 Germany 933 665 Czech republic 330 343 Hungary 325 330 Ireland 267 271 Other 1,501 1,776 Total property, plant and equipment $ 6,296 $ 6,436

Fair value measurement

Fair value measurement	12 Months Ended
	Dec. 31, 2020
Fair value measurement	NOTE 20 —Fair value measurement: Financial items carried at fair value as of December 31, 2020 and 2019 are classified in the tables below in one of the three categories described in note 1f: December 31, 2020 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 367 $ — $ — $ 367 Cash, deposits and other 1,810 — — 1,810 Investment in securities: Equity securities* 25 259 — 284 Other, mainly debt securities 5 — 10 15 Derivatives: Asset derivatives—options and forward contracts — 24 — 24 Liabilities derivatives—options and forward contracts — (79 ) — (79 ) Contingent consideration** — — (268 ) (268 ) Total $ 2,207 $ 204 $ (258 ) $ 2,153 December 31, 2019 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 577 $ — $ — $ 577 Cash, deposits and other 1,398 — — 1,398 Investment in securities: Equity securities 42 — — 42 Other, mainly debt securities 2 — 12 14 Derivatives: Asset derivatives—options and forward contracts — 32 — 32 Liability derivatives—options and forward contracts — (41 ) — (41 ) Liabilities derivatives—interest rate and cross-currency swaps — (22 ) — (22 ) Contingent consideration** — — (460 ) (460 ) Total $ 2,019 $ (31 ) $ (448 ) $ 1,540 * During the third quarter of 2020, Teva recorded a gain of $134 million under share in profits of associated companies, net, reflecting the difference between the book value of Teva’s investment in American Well and its fair value as of the date it completed its initial public offering in September 2020. The investment was reclassified from “investment in associated companies” to “investment in marketable securities,” since Teva no longer ha d This represented a transfer into Level 3 measurement within fair value hierarchy. By million under financial expenses, net, reflecting the revaluation gain of this security as of December 31, 2020 and transferred it to Level 2 measurement within fair value hierarchy due to a change in discount rate. Due to management’s intention and ability to sell this security in the next twelve months, the balance as of December 31, 2020 was reclassified to short term investments. ** Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. Teva determined the fair value of the liabilities for the contingent consideration based on a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration is based on several factors, such as: the cash flows projected from the success of unapproved product candidates; the probability of success of product candidates, including risks associated with uncertainty regarding achievement and payment of milestone events; the time and resources needed to complete the development and approval of product candidates; the life of the potential commercialized products and associated risks of obtaining regulatory approvals in the United States and Europe, and the risk adjusted discount rate for fair value measurement. A probability of success factor ranging from 80% to 100% was used in the fair value calculation to reflect inherent regulatory and commercial risk of the contingent payments and IPR&D. The discount rate applied ranged from 7.5% to 8.0%. The weighted average discount rate, calculated based on the relative fair value of Teva’s contingent consideration liabilities, was 7.7%. The contingent consideration is evaluated quarterly, or more frequently, if circumstances dictate. Changes in the fair value of contingent consideration are recorded in consolidated statements of income. Significant changes in unobservable inputs, mainly the probability of success and cash flows projected, could result in material changes to the contingent consideration liabilities. The fair value measurement of the investment in equity securities is based on a discount rate for fair value measurement, related to restriction of sale of shares, and thus represents a Level 2 measurement within the fair value hierarchy. The discount rate applied for the fair value measurement at December 31, 2020 was The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs. December 31, December 31, (U.S. $ in millions) Fair value at the beginning of the period $ (448 ) $ (497 ) Transfer into Level 3- equity securities 179 Revaluation of equity securities 80 Revaluation of debt securities (2 ) 2 Reclassification to Level 2- equity securities (259 ) Adjustments to provisions for contingent consideration: Actavis Generics transaction 156 92 Eagle transactio n (75 ) (151 ) Settlement of contingent consideration: Eagle transaction 111 106 Fair value at the end of the period $ (258 ) $ (448 ) Teva’s financial instruments consist mainly of cash and cash equivalents, investments in securities, current and non-current The fair value of the financial instruments included in working capital and non-current Financial instruments not measured at fair value Financial instruments measured on a basis other than fair value consist of 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, 2020 2019 (U.S. $ in millions) Senior notes included under long-term liabilities $ 22,684 $ 22,686 Senior notes and convertible senior debentures included under short-term liabilities 3,207 2,318 Fair value at the end of the period $ 25,891 $ 25,004 * The fair value was estimated based on quoted market prices.

Long-term Employee-related Obli

Long-term Employee-related Obligations	12 Months Ended
	Dec. 31, 2020
Long-term Employee-related Obligations	NOTE 21—Long-term employee-related obligations: a. Long-term employee-related obligations consisted of the following: December 31, 2020 2019 (U.S. $ in millions) Accrued severance obligations $ 82 $ 76 Defined benefit plans 192 165 Total $ 275 $ 241 As of December 31, 2020 and 2019, Teva had $86 million and $82 million, respectively, deposited in funds managed by financial institutions and earmarked by management to cover severance pay liability. Such deposits are not considered to be “plan assets” and are therefore included in other non-current assets. Most of the change resulted from actuarial updates, as well as from exiting from several defined benefit plans in several countries. The Company expects to expense an approximate contribution of $116 million in 2021 to pension funds and insurance companies in connection with its severance and pension pay obligations. The main terms of the different arrangements with employees are described in below. b. Terms of arrangements: Israel Israeli law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The Parent Company and its Israeli subsidiaries make ongoing deposits into employee pension plans to fund their severance liabilities. Generally, employees that joined the Company after 2005, have signed an arrangement, pursuant to which such deposits are made in lieu of the Company’s severance liability. Therefore, no obligation is provided for in the financial statements. Severance pay liabilities with respect to employees who were employed by the Parent Company and its Israeli subsidiaries prior to that date, as well as employees who have special contractual arrangements, are provided for in the financial statements based upon the number of years of service and the latest monthly salary of such employees. Europe Many of the employees in the Company’s European subsidiaries are entitled to a retirement grant when they leave the Company. In the consolidated financial statements, the liability of the European subsidiaries is accrued, based on the length of service and remuneration of each employee at the balance sheet date. Other employees in Europe are entitled to a pension according to a defined benefit scheme providing benefits based on final or average pensionable pay or according to a hybrid pension scheme that provides retirement benefits on a defined benefit and a defined contribution basis. Independent certified actuaries value these schemes and determine the rates of contribution payable. Pension costs for the defined benefit section of the scheme are accounted for on the basis of charging the expected cost of providing pensions over the period during which the subsidiaries benefit from the employees’ services. The Company uses December 31 as the measurement date for defined benefit plans. North America The Company’s North American subsidiaries mainly provide various defined contribution plans for the benefit of their employees. Under these plans, contributions are based on specified percentages of pay. Additionally, a multi-employer plan is maintained in accordance with various union agreements. Latin America The majority of the employees in Latin America are entitled to severance under local law. The severance payments are calculated based on service term and employee remuneration, and accruals are maintained to reflect these amounts. In some Latin American countries it is Teva’s practice to offer retirement health benefits to qualifying employees. Based on the specific plan requirements, benefits accruals are maintained to reflect the estimated amounts or adjusted if future plans are modified. The Company expects to pay the following future minimum benefits to its employees: $13 million in 2021; $12 million in 2022; $12 million in 2023; $11 million in 2024; $12 million in 2025 and $65 million in the aggregate between 2026 to 2030. These amounts do not include amounts that may be paid to employees who cease working with the Company before their normal retirement age.

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2020
Selected Quarterly Financial Data (Unaudited)	NOTE 22—Selected quarterly financial data (unaudited): The following table presents selected unaudited quarterly financial data for 2020 and 2019: 2020 4th quarter 3rd quarter 2nd quarter 1st quarter U.S $ in millions (except per share amounts) Net revenues 4,454 3,978 3,870 4,357 Gross profit 2,048 1,852 1,763 2,063 Net income (loss) 162 (4,340 ) 53 25 Net income (loss) attributable to Teva 150 (4,349 ) 140 69 Net income (loss) attributable to ordinary shareholders 150 (4,349 ) 140 69 Earnings per share attributable to ordinary shareholders: Basic 0.14 (3.97 ) 0.13 0.06 Diluted 0.14 (3.97 ) 0.13 0.06 2019 4th quarter 3rd quarter 2nd quarter 1st quarter U.S $ in millions (except per share amounts) Net revenues 4,468 4,093 4,177 4,149 Gross profit 1,958 1,830 1,893 1,856 Net income (loss) 75 (307 ) (671 ) (97 ) Net income (loss) attributable to Teva 110 (314 ) (689 ) (105 ) Net income (loss) attributable to ordinary shareholders 110 (314 ) (689 ) (105 ) Earnings per share attributable to ordinary shareholders: Basic 0.10 (0.29 ) (0.63 ) (0.10 ) Diluted 0.10 (0.29 ) (0.63 ) (0.10 )

Schedule of Valuation and Quali

Schedule of Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2020
Schedule of Valuation and Qualifying Accounts	Column A Column B Column C Column D Column E Balance at Charged to costs Charged to other Deductions Balance at end Allowance for doubtful accounts: Year ended December 31, 2020 $ 209 $ (11 ) $ 2 $ $ 200 Year ended December 31, 2019 $ 232 $ (16 ) $ — $ (7 ) $ 209 Year ended December 31, 2018 $ 232 $ 13 $ (9 ) $ (4 ) $ 232 Allowance in respect of carryforward tax losses and deductions that may not be utilized: Year ended December 31, 2020 $ 1,974 $ 670 $ — $ (97 ) $ 2,547 Year ended December 31, 2019 $ 1,633 $ 555 $ — $ (214 ) $ 1,974 Year ended December 31, 2018 $ 1,504 $ 407 $ 5 $ (283 ) $ 1,633

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
General	a. General: Operations Teva Pharmaceutical Industries Limited (the “Parent Company”), headquartered in Israel, together with its subsidiaries and associated companies (the “Company,” “Teva” or the “Group”), is engaged in the development, manufacturing, marketing and distribution of generics, specialty medicines and biopharmaceuticals. The majority of the Group’s revenues are in the United States and Europe. Basis of presentation and use of estimate s The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In preparing the Company’s consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reported years. Actual results could differ from those estimates. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to determining the valuation and recoverability of intangible assets and goodwill; assessing sales reserves and allowances in the United States, and contingent consideration; assessing compliance with debt covenants; uncertain tax positions, valuation allowances, contingencies, inventory valuation and restructuring. The inputs into Teva’s judgments and estimates also consider the economic implications of the COVID-19 COVID-19 COVID-19 Certain amounts in the consolidated financial statements and associated notes may not add up due to rounding. All percentages have been calculated using unrounded amounts. Functional currency A major part of the Group’s operations is carried out by the Company in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”). The functional currency of certain subsidiaries and associated companies is their local currency. The financial statements of those companies are included in the consolidated financial statements, translated into U.S. dollars. Assets and liabilities are translated at year-end In the event of a divestiture of a foreign subsidiary, the related foreign currency translation results are reversed from equity to income. Foreign currency exchange gains and losses are included in net income (loss). Principles of consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, joint ventures and VIEs for which the Company is considered the primary beneficiary. For those consolidated entities where Teva owns less than 100%, the outside shareholders’ interests are shown as non-controlling For VIEs, the Company performs an analysis to determine whether the variable interests give a controlling financial interest in a VIE. The Company periodically reassesses whether it controls its VIEs. Intercompany transactions and balances are eliminated on consolidation; profits from intercompany sales, not yet realized outside the Group, are also eliminated.
New accounting pronouncements	b. New accounting pronouncements Recently adopted accounting pronouncements In March 2020, the FASB issued ASU 2020-04 In April 2019, the FASB issued ASU 2019-04 In November 2018, the FASB issued ASU 2018-18 unit-of-account In August 2018, the FASB issued ASU 2018-15 other—Internal-use 350-40): internal-use In August 2018, the FASB issued ASU 2018-13 In June 2016, the FASB issued ASU 2016-13 Recently issued accounting pronouncements, not yet adopted In August 2020, the FASB issued ASU 2020-06 (Subtopic 470-20) In December 2019, the FASB issued ASU 2019-12 year-to-date In addition, the update also simplifies the accounting for income taxes in certain topics as follows: (1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based Company reviewed the above topics, noting that Items (1) and (4) of this paragraph are expected to be relevant, but not material. The adoption of this guidance will not have a significant impact on the Company’s consolidated financial statements.
Acquisitions	c. Acquisitions: Teva’s consolidated financial statements include the operations of acquired businesses from the date of the acquisition’s consummation. Acquired businesses are accounted for using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired in process research and development (“IPR&D”) be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When Teva acquires net assets that do not constitute a business, as defined under U.S. GAAP, no goodwill is recognized and acquired IPR&D is expensed. Contingent consideration incurred in a business combination is included as part of the acquisition price and recorded at a probability weighted assessment of its fair value as of the acquisition date. The fair value of the contingent consideration is re-measured
Collaborative arrangements	d. Collaborative arrangements: Collaborative agreements are contractual arrangements in which the parties are active participants to the arrangement and are exposed to the significant risks and rewards that are dependent on the ultimate commercial success of the endeavor. The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to collaborative agreements as gross or net. If the Company is the principal participant in a transaction, revenues and costs are recorded on a gross basis; otherwise, revenues are recorded on a net basis.
Equity investments	e. Equity investments: The Company measures equity investments at fair value with changes in fair value recognized in net income. The Company accounts for equity investments that do not have a readily determinable fair value as cost method investments under the measurement alternative prescribed within ASU 2016-01
Fair value measurement	f. Fair value measurement: The Company measures fair value and discloses fair value measurements for financial assets and liabilities. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.
Investment in debt securities	g. Investment in debt securities: Investment in securities consists of debt securities classified as available-for-sale The Company’s investment in debt securities accounting policy until December 31, 2019, prior to the adoption of the new Current Expected Credit Losses (“CECL”) standard Unrealized gains of available for sale debt securities, net of taxes, are reflected in other comprehensive income. Unrealized losses considered to be temporary are reflected in other comprehensive income; unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. Realized gains and losses for debt securities are included in financial expenses, net. The Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment recognized in earnings, recorded in financial expense, net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in other comprehensive income. The Company’s investment in debt securities accounting policy from January 1, 2020, following the adoption of the new CECL standard Unrealized gains and losses for available-for-sale The CECL methodology, which became effective January 1, 2020, requires the Company to estimate lifetime expected credit losses for all available-for-sale non-credit
Cash and cash equivalents	h. Cash and cash equivalents: All highly liquid investments, which include short-term bank deposits and money market instruments, that are not restricted as to withdrawal or use, and investment in short-term debentures, the period to maturity of which did not exceed three months at the time of investment, are considered to be cash equivalents.
Accounts receivables	i. Accounts receivables: The Company’s accounts receivables accounting policy until December 31, 2019, prior to the adoption of the new CECL standard Accounts receivables are stated at their net realizable value. The allowance against gross accounts receivables reflects the best estimate of losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available information. An allowance for doubtful debts is reflected in net accounts receivables. Accounts receivables are written off after all reasonable means to collect the full amount have been exhausted. The Company’s accounts receivables accounting policy from January 1, 2020, following the adoption of the new CECL standard Accounts receivable have been reduced by an allowance for doubtful accounts. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Write-off
Concentration of credit risks	j. Concentration of credit risks: Most of Teva’s cash and cash equivalents (which, along with investment in securities, totaled $2,478 million at December 31, 2020) were deposited with European, U.S. and Israeli banks and financial institutions and were comprised mainly of cash deposits. The pharmaceutical industry, particularly in the United States, has been significantly affected by consolidation among managed care providers, large pharmacy chains, wholesaling organizations and other buyer groups. The U.S. market constituted approximately 48% of Teva’s consolidated revenues in 2020. The exposure of credit risks relating to other trade receivables outside the U.S. is limited, due to the relatively large number of group customers and their wide geographic distribution. Teva performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral and from time to time the Company may choose to purchase trade credit insurance.
Inventories	k. Inventories: Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials, purchased products, manufactured finished products, products in process and capitalized production costs are determined predominantly on a standard cost basis, approximating actual costs. Other methods which are utilized for determining the value of inventories are moving average, cost basis and the first in first out method. Teva regularly reviews its inventories for obsolescence and other impairment risks and reserves are established when necessary. Inventories acquired in a business combination are stepped-up
Long-lived assets	l. Long-lived assets: Teva’s long-lived, non-current Goodwill Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any non-controlling The Company has historically performed its annual goodwill assessment during the fourth quarter of each year. During the second quarter of 2020, the Company decided to change the date of its annual impairment assessment from October 1 to June 30. The change was made to more closely align the impairment assessment date with the Company’s long-term planning and forecasting process. See note 7. The goodwill impairment test is performed according to the following principles: 1. An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. 2. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying mount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized. An interim goodwill impairment test may be required in advance or after of the annual impairment test if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. For example, a substantial decline in the Company’s market capitalization, unexpected adverse business conditions, economic factors and unanticipated competitive activities may indicate that an interim impairment test is required. In the event that the Company’s market capitalization declines below its book value, the Company considers the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists. Identifiable intangible assets Identifiable intangible assets are comprised of definite life intangible assets and indefinite life intangible assets. Definite life intangible assets consist mainly of acquired product rights and other rights relating to products for which marketing approval was received from the U.S. Food and Drug Administration (“FDA”) or the equivalent agencies in other countries. These assets are amortized mainly using the straight-line method over their estimated period of useful life, or based on economic benefit models, if more appropriate, which is determined by identifying the period and manner in which substantially all of the cash flows are expected to be generated. Amortization of acquired developed products is recorded under cost of sales. Amortization of marketing and distribution rights is recorded under selling and marketing (“S&M”) expenses when separable. Indefinite life intangible assets are mainly comprised of IPR&D assets. Teva monitors these assets for items such as research and development progress and for indicators of fair value change such as level of expected competition and or pricing, to identify any triggering events. Teva determines the fair value of the asset annually or when triggering events are present, based on discounted cash flows and records an impairment loss if book value exceeds fair value. IPR&D acquired in a business combination is capitalized as an indefinite life intangible asset until the related research and development efforts are either completed or abandoned. In the reporting periods where they are treated as indefinite life intangible assets, they are not amortized but rather are monitored triggering events and tested for impairment. Upon completion of the related research and development efforts, management determines the useful life of the intangible assets and amortizes them accordingly. In case of abandonment or a reduction in the expected realizable value of the asset, the related research and development assets are impaired. Whenever impairment indicators are identified for definite life intangible assets, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s or asset group’s cash flows and compares such value against the asset’s or asset group’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value based on the discounted cash flows. In determining the estimated fair value of identifiable intangible assets, Teva utilized a discounted cash flow model. The key assumptions within the model related to forecasting future revenue and operating income, an appropriate discount rate and an appropriate terminal value based on the nature of the long-lived asset. The Company’s updated forecasts of net cash flows for the impaired assets reflect, among others, the following: (i) for IPR&D assets, the impact of changes to the development programs, the projected development and regulatory timeframes and the risks associated with these assets; and (ii) for product rights, pricing and volume projections, as well as patent life and any significant changes to the competitive environment. Property, plant and equipment Property, plant and equipment are stated at cost, after deduction of the related investment grants, and depreciated using the straight-line method over the estimated useful life of the assets: buildings, mainly 40 years; machinery and equipment, mainly between 15 to 20 years; and other assets, between 5 to 10 years. For property, plant and equipment and lease right-of-use Lease right-of-use See note 8 and note 1 cc for further discussion.
Contingencies	m. Contingencies: The Company is involved in various patent, product liability, commercial, government investigations, environmental claims and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies, contingent consideration, other contingent liabilities incurred or acquired in a business combination, Teva records accruals for these types of contingencies to the extent that Teva concludes their occurrence is probable and that the related liabilities are estimable. When accruing these costs, the Company will recognize an accrual in the amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Teva records anticipated recoveries under existing insurance contracts that are probable of occurring at the gross amount that is expected to be collected. Legal costs are expensed as incurred. The Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved.
Treasury shares	n. Treasury shares: Treasury shares are presented as a reduction of Teva shareholders’ equity and carried at their cost to Teva, under treasury shares.
Stock-based compensation	o. Stock-based compensation: Teva recognizes stock based compensation for the estimated fair value of share-based awards, restricted share units (“RSUs”) and performance share units (“PSUs”). The compensation expense for PSUs is recognized only if it is probable that the performance condition will be achieved. Teva measures compensation expense for share-based awards based on estimated fair values on the date of grant using the Black-Scholes option-pricing model. This option pricing model requires estimates as to the option’s expected term and the price volatility of the underlying stock. Teva amortizes the value of share-based awards to expense over the vesting period on a straight-line basis. Teva measures compensation expense for the RSUs and PSUs based on the market value of the underlying stock at the date of grant, less an estimate of dividends that will not accrue to the RSU and PSU holders prior to vesting.
Deferred income taxes	p. Deferred income taxes: Deferred income taxes are determined utilizing the “asset and liability” method based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. In determining whether a valuation allowance is needed, Teva considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. Deferred income tax liabilities and assets are classified as non-current. Deferred tax has not been provided on the following items: 1. Taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally the Company’s intention to hold these investments, not to realize them. The determination of the amount of related unrecognized deferred tax liability is not practicable. 2. Amounts of tax-exempt
Uncertain tax positions	q. Uncertain tax positions: Teva recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. Teva regularly re-evaluates Provisions for uncertain tax positions, whereas Teva has net operating losses to offset additional income taxes that would result from the settlement of the tax position, are presented as a reduction of the deferred tax assets for such net operating loss.
Derivatives and hedging	r. Derivatives and hedging: The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, currency options, cross-currency swap contracts, interest rate swap contracts and treasury locks). The transactions are designed to hedge the Company’s currency and interest rate exposures. The Company does not enter into derivative transactions for trading purposes. Derivative instruments are recognized on the balance sheet at their fair value. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recognized in financial expenses , For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings. For derivative instruments that are designated as net-investment expenses , For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging. ,
Revenue recognition	s. Revenue recognition: A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes. The amount of consideration to which Teva expects to be entitled varies as a result of rebates, chargebacks, returns and other sales reserves and allowances (“SR&A”) that the Company offers to its customers and their customers, as well as the occurrence or nonoccurrence of future events, including milestone events. A minimum amount of variable consideration is recorded by the Company concurrently with the satisfaction of performance obligations to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimates of variable consideration are based on historical experience and the specific terms in the individual agreements (which the Company believes approximates expected value). Rebates and chargebacks are the largest components of SR&A. If a minimum cannot be reasonably estimated, such revenue may be deferred to a future period when better information is available. For further description of SR&A components and how they are estimated, see “Variable Consideration” below. Shipping and handling costs, after control of the product has transferred to a customer, are accounted for as a fulfillment cost and are recorded under S&M expenses. Teva does not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms to customers are, on average, between thirty The Company generally recognizes the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The costs are recorded under S&M expenses. Similarly, Teva does not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less. Nature of revenue streams Revenue from sales of goods, including sales to distributors is recognized when the customer obtains control of the product. This generally occurs when products are shipped once the Company has a present right to payment and legal title, and risk and rewards of ownership are obtained by the customer. Licensing arrangements performance obligations generally include intellectual property (“IP”) rights, certain R&D and contract manufacturing services. The Company accounts for IP rights and services separately if they are distinct—i.e. if they are separately identifiable from other items in the arrangement and if the customer can benefit from them on their own or with other resources that are readily available to the customer. The consideration is allocated between IP rights and services based on their relative stand-alone selling prices. Revenue for distinct IP rights is accounted for based on the nature of the promise to grant the license. In determining whether the Company’s promise is to provide a right to access its IP or a right to use its IP, the Company considers the nature of the IP to which the customer will have rights. IP is either functional IP which has significant standalone functionality or symbolic IP which does not have significant standalone functionality. Revenue from functional IP is recognized at the point in time when control of the distinct license is transferred to the customer. Revenue from symbolic IP is recognized over the access period to the Company’s IP. Revenue from sales based milestones and royalties promised in exchange for a license of IP is recognized only when, or as, the later of subsequent sale or the performance obligation to which some or all of the sales-based royalty has been allocated, is satisfied. Revenues from licensing arrangements included royalty income of $129 million, $147 million and $165 million for the years ended December 31 , 2020 , 2019 and 2018 , respectively. Distribution revenues are derived from sales of third-party products for which the Company acts as distributor, mostly in the United States via Anda and in Israel via Salomon Levin and Elstein Ltd. (SLE). In the United States, the Company is the principal in these arrangements and therefore records revenue on a gross basis as it controls the promised goods before transferring these goods to the customer. In Israel, the Company is the agent in these arrangements and therefore records revenue on a net basis as it has no discretion in establishing prices for any specifies goods or services, limited inventory risk and is not primarily responsible for contract fulfillment. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer. Other revenues are primarily comprised of contract manufacturing services, sales of medical devices and other miscellaneous items. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer. Contract assets and liabilities Contract assets are mainly comprised of trade receivables net of allowance for doubtful debts, which includes amounts billed and currently due from customers. Contract liabilities are mainly comprised of deferred revenues which were immaterial as of December 31, 2020 and 2019. Variable consideration Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables. The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated: Rebates Rebates are primarily related to volume incentives and are offered to key customers to promote loyalty. These rebate programs provide that, upon the attainment of pre-established Medicaid and Other Governmental Rebates Pharmaceutical manufacturers whose products are covered by the Medicaid program are required to provide a rebate to each state as a percentage of their average manufacturer’s price for generic products dispensed and “best price” for specialty products dispensed. Many states have also implemented supplemental rebate programs that obligate manufacturers to pay rebates in excess of those required under federal law. The Company estimates these rebates based on historical trends of rebates paid, as well as on changes in wholesaler inventory levels and increases or decreases in sales. Chargebacks The Company has arrangements with various third parties, such as managed care organizations and drug store chains, establishing prices for certain of Teva’s products. While these arrangements are made between the Company and the customers, the customers independently select a wholesaler from which they purchase the products. Alternatively, certain wholesalers may enter into agreements with the customers, with Teva’s concurrence, which establish the pricing for certain products which the wholesalers provide. Under either arrangement, Teva will issue a credit (referred to as a “chargeback”) to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract prices. Provisions for chargebacks involve estimates of contract prices of over 2,000 products and multiple contracts with multiple wholesalers. Provisions for chargebacks involve estimates of usage by retailers and other indirect buyers with varying contract prices for multiple wholesalers. The provision for chargebacks varies in relation to changes in product mix, pricing and the level of inventory at the wholesalers and, therefore, will not necessarily fluctuate in proportion to an increase or decrease in sales. Provisions for estimating chargebacks are calculated using historical chargeback experience and/or expected chargeback levels for new products and anticipated pricing changes. Teva considers current and expected price competition when evaluating the provision for chargebacks. Chargeback provisions are compared to externally obtained distribution channel reports for reasonableness. The Company regularly monitors the provision for chargebacks and makes adjustments when the Company believes that actual chargebacks may differ from estimated provisions. Other Promotional Arrangements Other promotional or incentive arrangements are periodically offered to customers, specifically related to the launch of products or other targeted promotions. Provisions are made in the period for which the Company can estimate the incentive earned by the customer, in accordance with the contractual terms. The Company regularly monitors the provision for other promotional arrangements and makes adjustments when it believes that the actual provision may differ from the estimated provisions. Shelf Stock Adjustments The custom in the pharmaceutical industry is generally to grant customers a shelf stock adjustment based on the customers’ existing inventory contemporaneously with decreases in the market price of the related product. The most significant of these relate to products for which an exclusive or semi-exclusive period exists. Provisions for price reductions depend on future events, including price competition, new competitive launches and the level of customer inventories at the time of the price decline. Teva regularly monitors the competitive factors that influence the pricing of its products and customer inventory levels and adjust these estimates where appropriate. Returns Returns primarily relate to customer returns of expired products which, the customer has the right to return up to one year following the expiration date. Such returned products are destroyed and credits and/or refunds are issued to the customer for the value of the returns. Accordingly, no returned assets are recoded in connection with those products. The returns provision is estimated by applying a historical return rate to the amounts of revenue estimated to be subject to returns. Revenue subject to returns is estimated based on the lag time from time of sale to date of return. The estimated lag time is developed by analyzing historical experience. Additionally, The Company considers specific factors, such as estimated levels of inventory in the distribution channel, product dating and expiration, size and maturity of launch, entrance of new competitors, changes in formularies or packaging and any changes to customer terms, for determining the overall expected levels of returns. Prompt Pay Discounts Prompt pay discounts are offered to most customers to encourage timely payment. Discounts are estimated at the time of invoice based on historical discounts in relation to sales. Prompt pay discounts are almost always utilized by customers. As a result, the actual discounts do not vary significantly from the estimated amount.
Research and development	t. Research and development: Research and development expenses are charged to statement of income (loss) as incurred. Participations and grants in respect of research and development expenses are recognized as a reduction of research and development expenses as the related costs are incurred, or as the related milestone is met. Upfront fees received in connection with cooperation agreements are deferred and recognized over the period of the applicable agreements as a reduction of research and development expenses. Advance payments for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as an expense as the related goods are delivered or the services are performed. Research and development in-process
Shipping and handling costs	u. Shipping and handling costs: Shipping and handling costs, which are included in S&M expenses, were $124 million, $138 million and $159 million for the years ended December 31 , 2020 , 2019 and 2018 , respectively.
Advertising costs	v. Advertising costs: Advertising costs are expensed as incurred. Advertising costs for the years ended December 31 , 2020 , 2019 and 2018 were $225 million, $213 million and $256 million, respectively.
Restructuring	w. Restructuring: Restructuring provisions are recognized for the direct expenditures arising from restructuring initiatives, where the plans are sufficiently detailed and where appropriate communication to those affected has been made. Costs for one-time Contractual termination benefits are provided to employees when employment is terminated due to an event specified in the provisions of an existing plan or agreement. A liability is recorded and the expense is recognized when it is probable that employees will be entitled to the benefits and the amount is reasonably estimable. Special termination benefits arise when the Company offers, for a short period of time, to provide certain additional benefits to employees electing voluntary termination. A liability is recorded and the expense is recognized in the period the employees irrevocably accept the offer and the amount of the termination liability is reasonably estimable.
Segment reporting	x. Segment reporting: The Company’s business includes three reporting segments based on three geographical areas: (a) North America segment, which includes the United States and Canada. (b) Europe segment, which includes the European Union and certain other European countries. (c) International Markets segment, which includes all countries in which Teva operates other than those in the North America and Europe segments. Each business segment manages the entire product portfolio in its region, including generics, specialty and over-the-counter In addition to these three segments, Teva has other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing
Earnings per share	y. Earnings per share: Basic earnings per share are computed by dividing the net income attributable to ordinary shareholders by the weighted average number of ordinary shares (including fully vested RSUs and PSUs) outstanding during the year, net of treasury shares. In computing diluted earnings per share, basic earnings per share are adjusted to take into account the potential dilution that could occur upon: (i) the exercise of options and non-vested “if-converted” adding to net income interest expense on the debentures and amortization of issuance costs, net of tax benefits, and by adding the weighted average number of shares issuable upon assumed conversion of the debentures; and (iii) until December 17, 2018, the conversion of the mandatory convertible preferred shares (“MCPS”) using the “if-converted” On December 17 , 2018 , the mandatory convertible preferred shares automatically converted into ordinary shares. As a result of this conversion, Teva issued 70.6 million ADSs. See note 14 .
Securitization	z. Securitization Teva accounts for transfers of certain of its trade receivable as sales when it has surrendered control over the related assets in accordance with ASC Topic 860 “Transfer and Servicing” of Financial Assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the balance sheet at fair value. Refer to note 10 f.
Divestitures	aa. Divestitures The Company nets the proceeds on the divestitures of products with the carrying amount of the related assets and records gain or loss on sale within other income. Any contingent payments that are potentially due to the Company as a result of these divestitures are recorded when it is probable that a significant reversal of income will not occur, or in the case of a business, when such payments are realizable. For divestures of businesses, including divestitures of products that qualify as a business, the Company reflects the relative fair value of goodwill associated with the businesses in the determination of gain or loss on sale.
Debt instruments	bb. Debt instruments Debt instruments are initially recognized at the fair value of the consideration received. Debt issuance costs are recorded on the consolidated balance sheet as a reduction of liability. They are subsequently recognized at amortized cost using the effective interest method. Debt may be considered extinguished when it has been modified and the terms of the new debt instruments and old debt instruments are “substantially different” (as defined in the debt modification guidance in ASC 470-50 non-current 470-50
Leases	cc. Leases The Company’s lease accounting policy until December 31, 2018, prior to the adoption of the new lease standard Teva leases real estate, cars and equipment for use in its operations, which are classified as operating leases. In addition to rent, the leases may require Teva to pay directly for fees, insurance, maintenance and other operating expenses. Rental expense for the year ended December 31, 2018 was $175 million. The Company also has capital leases for properties. The Company’s lease accounting policy from January 1, 2019, following the adoption of the new lease standard Teva adopted the new accounting standard ASC 842 “Leases” and all the related amendments on January 1, 2019 and used the effective date as Teva’s date of initial application. Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. Operating leases are included in operating lease right-of-use ROU assets represent Teva’s right to use an underlying asset for the lease term and lease liabilities represent Teva’s obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Teva uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. For finance leases, Teva recognizes interest on the lease liability separately from amortization of the ROU assets in the statement of comprehensive income. For operating leases, lease expenses are recognized on a straight-line basis over the lease term. The new standard also provides practical expedients for an entity’s ongoing accounting. Teva elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, Teva does not recognize ROU assets or lease liabilities, including ROU assets or lease liabilities for existing short-term leases of assets in transition, but recognizes lease expenses over the lease term on a straight line basis. Teva also elected the practical expedient to not separate lease and non-lease Lease terms will include options to extend or terminate the lease when it is reasonably certain that Teva will either exercise or not exercise the option to renew or terminate the lease. Teva’s lease agreements have remaining lease terms ranging from 1 year to 78 years. Some of these agreements include options to extend the leases for up to 10 years and some include options to terminate the leases immediately. Certain leases also include options to purchase the leased property. The depreciable life of leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset reasonably certain of exercise. Some of Teva’s vehicle lease agreements include rental payments based on the actual usage of the vehicles and other lease agreements include rental payments adjusted periodically for inflation. Teva’s lease agreements do not contain any material residual value guarantees. The new lease standard has no impact on Teva’s debt-covenant compliance under its RCF.

Certain transactions (Tables)

Certain transactions (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Major Classes of Assets and Liabilities Included as Held for Sale	The table below summarizes all Teva assets included as held for sale as of December 31, 2020 and December 31, 2019: December 31, December 31, (U.S. $ in millions) Inventories $ 146 $ — Property, plant and equipment, net and others 312 98 Goodwill 27 — Adjustments of assets held for sale to fair value (296 ) (11 ) Total assets of the disposal group classified as held for sale in the consolidated balance sheets $ 189 $ 87

Revenue from contracts with c_2

Revenue from contracts with customers (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of disaggregates revenues by major revenue streams	The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 19. Year ended December 31, 2020 North America Europe International Other activities Total (U.S.$ in millions) Sale of goods 6,902 4,736 1,946 772 14,354 Licensing arrangements 84 32 9 4 129 Distribution 1,462 3 30 — 1,495 Other § (14 ) 169 527 680 $ 8,447 $ 4,757 $ 2,154 $ 1,302 $ 16,659 Year ended December 31, 2019 North America Europe International Other activities Total (U.S.$ in millions) Sale of goods 6,941 4,770 2,045 754 14,510 Licensing arrangements 109 29 4 5 147 Distribution 1,492 2 20 — 1,514 Other § (6 ) 177 545 716 $ 8,542 $ 4,795 $ 2,246 $ 1,304 $ 16,887 Year ended December 31, 2018 North America Europe International Other activities Total (U.S.$ in millions) Sale of goods 7,838 5,153 2,151 739 15,881 Licensing arrangements 111 23 22 9 165 Distribution 1,347 7 19 — 1,373 Other 1 3 230 618 852 $ 9,297 $ 5,186 $ 2,422 $ 1,366 $ 18,271 § Represents an amount less than $1 million.
Summary of Sales Reserves and Allowances	SR&A to U.S. customers comprised approximately 79% of the Company’s total SR&A as of December 31, 2020, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the period ended December 31, 2019 and 2020 were as follows: Sales Reserves and Allowances Reserves Rebates Medicaid and Chargebacks Returns Other Total Total (U.S.$ in millions) Balance at January 1, 2019 $ 175 3,006 $ 1,361 $ 1,530 $ 638 $ 176 $ 6,711 $ 6,886 Provisions related to sales made in current year period 383 5,552 976 9,565 281 394 16,767 $ 17,150 Provisions related to sales made in prior periods — (92 ) (151 ) (17 ) 77 (6 ) (189 ) $ (189 ) Credits and payments (471 ) (5,570 ) (1,076 ) (9,736 ) (360 ) (392 ) (17,134 ) $ (17,605 ) Translation differences — (1 ) (1 ) 1 1 4 4 $ 4 Balance at December 31, 2019 $ 87 2,895 $ 1,109 $ 1,342 $ 637 $ 176 $ 6,159 $ 6,246 Provisions related to sales made in current year period 391 4,703 744 8,438 459 71 14,415 $ 14,806 Provisions related to sales made in prior periods — (219 ) (184 ) (65 ) (28 ) (1 ) (497 ) $ (497 ) Credits and payments (398 ) (5,360 ) (849 ) (8,614 ) (386 ) (100 ) (15,309 ) $ (15,707 ) Translation differences — 35 8 7 4 2 56 $ 56 Balance at December 31, 2020 $ 80 2,054 $ 828 $ 1,108 $ 686 $ 148 $ 4,824 $ 4,904

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Inventories	Inventories, net of reserves, consisted of the following: December 31, 2020 2019 (U.S. $ in millions) Finished products $2,378 $2,504 Raw and packaging materials 1,231 1,183 Products in process 605 583 Materials in transit and payments on account 189 151 $4,403 $4,422

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Property, Plant and Equipment, Net	Property, plant and equipment, net, consisted of the following: December 31, 2020 2019 (U.S. $ in millions) Machinery and equipment $ 5,245 $ 5,385 Buildings 2,720 2,839 Computer equipment and other assets 2,197 2,131 Assets under construction and payments on account 933 672 Land 292 323 11,388 11,350 Less—accumulated depreciatio n (5,092 ) (4,914 ) $6,296 $6,436

Identifiable Intangible Assets

Identifiable Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Identifiable Intangible Assets	Identifiable intangible assets consisted of the following: Gross carrying amount Accumulated Net carrying amount December 31, 2020 2019 2020 2019 2020 2019 (U.S. $ in millions) Product rights $ 19,650 $ 19,663 $ 12,094 $ 10,640 $ 7,556 $ 9,023 Trade names 621 600 165 126 456 474 In-process research and development (IPR&D) 911 1,735 — — 911 1,735 Total $ 21,182 $ 21,998 $ 12,259 $ 10,766 $ 8,923 $ 11,232

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Changes in the Carrying Amount of Goodwill by Segment	The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 were as follows: North Europe International Other Total (U.S. $ in millions) Balance as of December 31, 201 8 (1) $ 11,098 $ 8,653 $ 2,479 $ 2,687 $ 24,917 Changes during the period: Goodwil l disposal (23 ) (5 ) — — (28 ) Translation differences 16 (112 ) 53 — (43 ) Balance as of December 31, 2019 (1) $ 11,091 $ 8,536 $ 2,532 $ 2,687 $ 24,846 Changes during the period: Goodwill reclassified as assets held for sale — (8 ) (19 ) — (27 ) Goodwill impairment (4,628 ) — — — (4,628 ) Translation differences 10 574 (151 ) — 433 Balance as of December 31 $ 6,473 $ 9,102 $ 2,362 $ 2,687 $ 20,624 (1) Accumulated goodwill impairment as of December 31, 2020, December 31, 2019 and December 31, 2018 was approximately $25.6 billion, $21.0 billion and $21.0 billion, respectively.

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2020
Components Of Lease Expense	The components of operating lease cost for the year ended December 31, 2020 were as follows: Year ended Year ended (U.S. $ in millions) (U.S. $ in millions) Operating lease cost: Fixed payments and variable payments that depend on an index or rate $ 148 $ 166 Variable lease payments not included in the lease liability 4 6 Short-term lease cost 3 6 $155 $178
Supplemental cash flow information related to leases	Supplemental cash flow information related to operating leases was as follows: Year ended Year ended (U.S. $ in millions) (U.S. $ in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 151 $ 169 Right-of-use (non-cash): Operating leases $ 211 $ 142
Supplemental Balance Sheet Information Related To Leases	Supplemental balance sheet information related to operating leases was as follows: December 31, December 31, (U.S. $ in millions) (U.S. $ in millions) Operating leases: Operating lease ROU assets $ 559 $ 514 Other current liabilities 116 118 Operating lease liabilities 479 435 Total operating lease liabilities $ 595 $ 553 December 31, December 31, 2020 2019 Weighted average remaining lease term Operating leases 7.5 years 7.5 years Weighted average discount rate Operating leases 5.2 % 6.0 %
Maturities of lease liabilities	Maturities of operating lease liabilities were as follows: December 31, (U.S. $ in millions) 2021 $ 137 2022 119 2023 91 2024 73 2025 and thereafter 302 Total operating lease payments $ 722 Less: imputed interest 127 Present value of lease liabilities $ 595

Debt obligations (Tables)

Debt obligations (Tables)	12 Months Ended
	Dec. 31, 2020
Schedule of Short-term Debt	a. Short-term debt: December 31, Weighted average Maturity 2020 2019 (U.S. $ in millions) Convertible debentures 0.25% 2026 514 514 Current maturities of long-term liabilities 2,674 1,831 Total short term debt $ 3,188 $ 2,345
Schedule of Senior Notes and Loans	Weighted average Maturity December 31, December 31, % (U.S. $ in millions) Senior notes EUR 1,010 million (1) 0.38 % 2020 $ — $ 1,131 Senior notes EUR 1,500 million 1.13 % 2024 1,839 1,673 Senior notes EUR 1,300 million 1.25 % 2023 1,595 1,451 Senior notes EUR 900 million 4.50 % 2025 1,107 1,008 Senior notes EUR 750 million 1.63 % 2028 916 833 Senior notes EUR 700 million 3.25 % 2022 861 784 Senior notes EUR 700 million 1.88 % 2027 860 782 Senior notes EUR 1,000 million 6.00 % 2025 1,230 1,120 Senior notes USD 1,000 million 7.13 % 2025 1,000 1,000 Senior notes USD 3,500 million 3.15 % 2026 3,495 3,494 Senior notes USD 1,475 million 2.20 % 2021 1,472 1,474 Senior notes USD 3,000 million 2.80 % 2023 2,996 2,995 Senior notes USD 2,000 million 4.10 % 2046 1,986 1,985 Senior notes USD 1,250 million 6.00 % 2024 1,250 1,250 Senior notes USD 1,250 million 6.75 % 2028 1,250 1,250 Senior notes USD 844 million 2.95 % 2022 853 856 Senior notes USD 789 million 6.15 % 2036 783 782 Senior notes USD 700 million (2) 2.25 % 2020 — 700 Senior notes USD 613 million 3.65 % 2021 616 618 Senior notes USD 588 million 3.65 % 2021 586 587 Senior notes CHF 350 million 0.50 % 2022 397 361 Senior notes CHF 350 million 1.00 % 2025 398 362 Total senior notes 25,490 26,496 Other long-term debt 1.08 % 2026 1 1 Less current maturities (2,674 ) (1,831 ) Less debt issuance costs (86 ) (103 ) Total senior notes and loans $ 22,731 $ 24,562 (1) In July , Teva repaid at maturity € million of its senior notes. (2) In March , Teva repaid at maturity $ million of its senior notes.
Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance Cost	As of December 31, 2020, the required annual principal payments of long-term debt, excluding debt issuance cost, including convertible senior debentures, starting from the year 202 2 December 31, 2020 (U.S. $ in millions) 2022 $ 2,111 2023 4,591 2024 3,089 202 5 3,735 2026 and thereafter * 9,804 $ 23,330 * Including $514

Derivative instruments and he_2

Derivative instruments and hedging activities (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Notional Amounts for Hedged Items, Designated as Hedge Accounting	The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting: December 31, 2020 2019 (U.S. $ in millions) Cross-currency swap , — 1,000
Summary of Classification and Fair Values of Derivative Instruments	The following table summarizes the classification and fair values of derivative instruments: Fair value Designated as hedging instruments Not designated as hedging instruments December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Reported under (U.S. $ in millions) Asset derivatives: Other current assets: Option and forward contracts $ — $ — $ 24 $ 32 Liability derivatives: Other current liabilities: Cross-currency swaps , — (22) Option and forward contracts — — (79 ) (41 )
Derivatives Not Designated as Hedging Instruments	The table below provides information regarding the location and amount of pre-tax Financial expenses, net Other comprehensive Year ended December 31, Year ended December 31, 2020 2019 2018** 2020 2019 2018** Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 834 $ 822 $ 959 $ (30 ) $ 160 $ (585 ) Cross-currency swaps—cash flow hedge (1) — (2 ) (2 ) — (33 ) (35 ) Cross-currency swaps , (2 ) (29 ) (31 ) (21 ) (22 ) (51 ) Interest rate swaps—fair value hedge (3) — 2 * — — — * Represents an amount less than $0.5 million. ** Comparative figures are based on prior hedge accounting standard.
Information Regarding The Location And Amount Of Pretax (Gains) Losses Of Derivatives Designated In Fair Value Or Cash Flow Hedging Relationships	The table below provides information regarding the location and amount of pre-tax Financial expenses, net Net revenues Year ended December 31, Year ended December 31, 2020 2019 2018 2020 2019 2018 Reported under (U.S. $ in millions) Line items in which effects of hedges are recorded $ 834 $ 822 $ 959 $ 16,659 $ 16,887 $ 18,271 Option and forward contracts (4) 130 (51 ) (12 ) — — — Option and forward contracts (5) — — — * 14 (4 ) * Represents an amount less than $0.5 million. (1) With respect to cross-currency swap agreements, Teva recognized gains which mainly reflect the differences between the fixed interest rate and the floating interest rate. In the fourth quarter of 2019, Teva terminated $588 million in cross-currency swap agreements against its outstanding 3.65% senior notes maturing in November 2021. The settlement of these transactions resulted in cash proceeds of $95 million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense. (2) In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500 float-for-float (3) In the fourth quarter of 2016, Teva entered into an interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. With respect to this interest rate swap agreement, Teva recognized a loss which mainly reflects the differences between the fixed interest rate and the floating interest rate. In the third quarter of 2019, Teva terminated this interest rate swap agreement. The settlement of these transactions resulted in a gain position of $10 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense. (4) Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net. (5) Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the Swiss franc, the Japanese yen, the British pound, the Russian ruble, the Canadian dollar and some other currencies during the period for which such instruments are transacted. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. During 2019 and 2020, Teva entered into hedging instruments to hedge part of the projected 2020 operating results. In 2020, Teva recognized a gain of $27 million in relation with the 2020 hedging program. During the second half of 2020, Teva entered into hedging instruments to hedge part of the projected operating results for 2021. As part of the economic hedge treatment, Teva recorded a loss of $27 million in relation to the 2021 hedging instruments in the second half of 2020, while the positive foreign exchange impact on the underlying revenues and expenses, may occur upon their maturity in 2021. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
Summary of Sold Receivables Outstanding Balance Net of DPP Asset under Outstanding Securitization Program	The following table summarizes the sold receivables outstanding balance net of DPP asset under the outstanding securitization program: As of and for the year ended 2020 2019 (U.S. $ in millions) Sold receivables at the beginning of the year $ 690 $ 686 Proceeds from sale of receivables 4,606 4,852 Cash collections (remitted to the owner of the receivables) (4,607 ) (4,849 ) Effect of currency exchange rate changes 45 1 Sold receivables at the end of the year $ 734 $ 690

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
Schedule of Income Before Income Taxes	a. Income (loss) before income taxes: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Parent Company and its Israeli subsidiaries $ 947 $ 542 $ 1,022 Non-Israeli subsidiaries (5,353 ) (1,807 ) (3,618 ) $ (4,406 ) $ (1,265 ) $ (2,596 )
Schedule of the Provision for Income Taxes	b. Income taxes: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) In Israel $ 60 $ 107 $ 131 Outside Israel (228 ) (385 ) (326 ) $ (168 ) $ (278 ) $ (195 ) Current $ 182 $ 885 $ 700 Deferred (350 ) (1,163 ) (895 ) $ (168 ) $ (278 ) $ (195 )
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)	2020 2019 2018 (U.S. $ in millions) Income (Loss) before income taxes $ (4,406 ) $ (1,265 ) $ (2,596 ) Statutory tax rate in Israel 23.0 % 23.0 % 23.0 % Theoretical provision for income taxes $ (1,013 ) $ (291 ) $ (597 ) Increase (decrease) in the provision for income taxes due to: The Parent Company and its Israeli subsidiaries - Mainly tax benefits arising from reduced tax rates under benefit programs (183 ) (44 ) (134 ) Non-Israeli subsidiaries, including impairments * 1,369 (115 ) 381 U.S. Tax Cuts and Jobs Act effect 97 Increase (decrease) in other uncertain tax positions—net (341 ) 172 58 Effective consolidated income taxes $ (168 ) $ (278 ) $ (195 ) * In 2020 and 2018, income before income taxes includes goodwill impairment in non-Israeli
Schedule of Deferred Income Taxes	c. Deferred income taxes: December 31, 2020 2019 (U.S. $ in millions) Long-term deferred tax assets (liabilities), net: Inventory related $ 212 $ 144 Sales reserves and allowances 173 198 Provision for legal settlements 235 260 Intangible assets (*) (1,064 ) (1,733 ) Carryforward losses and deductions and credits (**) 2,176 1,689 Property, plant and equipment (142 ) (170 ) Deferred interest 527 648 Provisions for employee related obligations 107 106 Other 54 122 2,278 1,264 Valuation allowance—in respect of carryforward losses and deductions that may not be utilized (2,547 ) (1,974 ) $ (269 ) $ (710 ) (*) The decrease in deferred tax liability is mainly due to impairment and amortization. (**) The amounts are shown after reduction for unrecognized tax benefits of $ 63 million and $115 million as of December 31, 2020 2019 This amount represents the tax effect of gross carryforward losses and deductions with the following expirations: 2021 2022 2023 2029 2030
Schedule of Deferred Tax Assets and Liabilities By Report Caption	The deferred income taxes are reflected in the balance sheets among: December 31, 2020 2019 (U.S. $ in millions) Long-term assets—deferred income taxes 695 386 Long-term liabilities—deferred income taxes (964 ) (1,096 ) $ (269 ) $ (710 )
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, 2020 2019 2018 (U.S. $ in millions) Balance at the beginning of the year $ 1,223 $ 1,072 $ 1,034 Increase (decrease) (238 ) 23 76 Increase related to current year tax positions 10 246 11 Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations (105 ) (118 ) (49 ) Other (2 ) — — Balance at the end of the year $ 888 $ 1,223 $ 1,072

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Stock Option Activity	A summary of the status of the options granted by Teva as of December 31, 2020, 2019 and 2018, and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercisable in respect thereof). Year ended December 31, 2020 2019 2018 Number (in thousands) Weighted Number (in thousands) Weighted Number (in thousands) Weighted Balance outstanding at beginning of year 40,064 $ 37.90 48,393 $ 38.62 43,121 $ 44.32 Changes during the year: Granted — — — — 12,401 19.12 Exercised — — (11 ) 16.99 (84 ) 17.01 Forfeited (3,610 ) 40.24 (8,318 ) 42.12 (7,040 ) 39.38 Expired (1,220 ) 49.35 — — (5 ) 50.65 Balance outstanding at end of year 35,234 37.27 40,064 37.90 48,393 38.62 Balance exercisable at end of year 28,556 40.56 26,601 43.41 24,086 46.89
Summary of Weighted Average Fair Value of Options Granted	The weighted average fair value of options granted during these Year ended December 31, 2020 2019 2018 Weighted average fair value — — $ 7.4
Summary of Fair Value of Options Estimated on Date of Grant Based on Weighted Average Assumptions	The fair value of these options was estimated on the date of grant, based on the following weighted average assumptions: Year ended December 31, 2020 2019 2018 Expected volatility — — 40 % Risk-free interest rate — — 2.6 % Expected term — — 5 years
Schedule of Ordinary Shares Issued Upon Outstanding Options	The following tables summarize information as of December 31, 2020 regarding the number of ordinary shares issuable upon (1) outstanding options and (2) vested options: (1) Number of ordinary shares issuable upon exercise of outstanding options Range of exercise prices Balance at end of Weighted average Weighted average Number of shares $ Years Lower than $15.01 592 11.40 6.84 $15.01 10,087 18.93 7.12 $25.01 7,221 34.61 6.16 $35.01 5,216 40.66 1.46 $45.01 7,895 51.06 4.10 $55.01 4,223 59.26 4.30 Total 35,234 37.27 5.07
Schedule of Ordinary Shares Issued Upon Vested Options	(2) Number of ordinary shares issuable upon exercise of vested options Range of exercise prices Balance at end of Weighted average Weighted average Number of shares $ Years Lower than $15.01 394 11.40 6.84 $15.01 5,431 18.81 7.09 $25.01 5,423 34.61 6.16 $35.01 5,216 40.66 1.46 $45.01 7,895 51.06 4.10 $55.01 4,197 59.28 4.30 Total 28,556 40.56 4.65
Schedule of the Number of RSUs Issued and Outstanding	The following table summarizes information about the number of RSUs and PSUs granted Year ended December 31, 2020 2019 2018 Number (in thousands) Weighted Number (in thousands) Weighted Number (in thousands) Weighted Balance outstanding at beginning of year 15,977 $ 16.49 10,403 $ 20.93 7,468 $ 27.95 Granted 10,848 11.42 9,303 15.36 5,900 18.80 Vested (4,324 ) 19.49 (2,435 ) 30.24 (1,638 ) 37.30 Forfeited (1,781 ) 18.18 (1,294 ) 18.74 (1,327 ) 32.50 Balance outstanding at end of year 20,720 13.81 15,977 16.49 10,403 20.93
Summary of Company Expenses Compensation Costs Based on Grant Date Fair Value	The Company expenses compensation costs are based on the grant-date fair value. For the years ended December 31, 2020, 2019 and 2018, the Company recorded stock-based compensation costs as follows: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Employee stock options $ 30 $ 46 $ 74 RSUs and PSUs 99 73 81 Total stock-based compensation expense 129 119 155 Tax effect on stock-based compensation expense 14 14 18 Net effect $ 115 $ 105 $ 137
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)	The components of accumulated other comprehensive loss attributable to Teva are presented in the table below: Net Unrealized Gains/(Losses) Benefit Plans Foreign Available- for-sale Derivative Actuarial Total (U.S. $ in millions) Balance as of January 1, 2018 $ (1,139 ) $ (4 ) $ (619 ) $ (91 ) $ (1,853 ) Cumulative effect of new accounting standard** — 5 — — 5 Other comprehensive income/(loss) before reclassifications (729 ) (1 ) 87 4 (639 ) Amounts reclassified to the statements of income — 1 28 13 42 Net other comprehensive income/(loss) before tax (729 ) — 115 17 (597 ) Corresponding income tax (10 ) — — (4 ) (14 ) Net other comprehensive income/(loss) after tax* (739 ) — 115 13 (611 ) Balance as of December 31, 2018 (1,878 ) 1 (504 ) (78 ) (2,459 ) Other comprehensive income/(loss) before reclassifications 100 (1 ) 54 (11 ) 142 Amounts reclassified to the statements of income — — 30 (10 ) 20 Net other comprehensive income/(loss) before tax 100 (1 ) 84 (21 ) 162 Corresponding income tax (16 ) — — 1 (15 ) Net other comprehensive income/(loss) after tax* 84 (1 ) 84 (20 ) 147 Balance as of December 31, 2019 (1,794 ) — (420 ) (98 ) (2,312 ) Other comprehensive income/(loss) before reclassifications (190 ) — 22 (7 ) (175 ) Amounts reclassified to the statements of income — — 35 (12 ) 23 Net other comprehensive income/(loss) before tax (190 ) — 57 (19 ) (152 ) Corresponding income tax 65 — — 1 66 Net other comprehensive income/(loss) after tax* (125 ) — 57 (18 ) (86 ) Balance as of December 31, 2020 $ (1,919 ) — $ (363 ) $ (117 ) $ (2,399 ) * Amounts do not include foreign currency translation adjustments attributable to non-controlling interests of $56 million gain in 2020 2019 million gain in 2018. ** Following the adoption of ASU 2016-01, the Company recorded a $5

Other assets impairments, res_2

Other assets impairments, restructuring and other items (Tables)	12 Months Ended
	Dec. 31, 2020
Schedule of Other Assets Impairments, Restructuring and Other Items	Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Impairment of long-lived tangible assets (1) $ 416 $ 139 $ 500 Contingent consideration (see note 2) (81 ) 59 57 Restructuring 120 199 488 Other 24 26 (58 ) Total $ 479 $ 423 $ 987 (1) Including impairments related to exit and disposal activities.
Summary of Restructuring Plan Including Costs Related to Exit and Disposal	The following tables provide the components of costs associated with Teva’s restructuring plan, including other costs associated with Teva’s restructuring plan and recorded under different items: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Restructuring Employee termination $ 71 $ 159 $ 410 Other 49 40 78 Total $ 120 $ 199 $ 488
Summary of Restructuring Accruals	The following table provides the components of and changes in the Company’s restructuring accruals: Employee Other Total (U.S. $ in millions ) Balance as of January 1, 2019 $ (204 ) $ (29 ) $ (233 ) Provision (159 ) (40 ) (199 ) Utilization and other* 155 62 217 Balance as of December 31, 2019 $ (208 ) $ (7 ) $ (215 ) Provision (71 ) (49 ) (120 ) Utilization and other * 164 49 213 Balance as of December 31, 2020 $ (115 ) $ (7 ) $ (122 ) * Includes adjustments for foreign currency translation.

Other income (Tables)

Other income (Tables)	12 Months Ended
	Dec. 31, 2020
Schedule of Other Income	Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Gain on divestitures, net of divestitures related costs (1) $ 8 50 67 Section 8 and similar payments (2) — 5 195 Gain (loss) on sale of assets 11 (1 ) 9 Other, net 20 22 20 Total other income $ 40 $ 76 $ 291 (1) Mainly related to the divestment of several activities in the International Markets segment. (2) Section 8 of the Patented Medicines (Notice of Compliance) Regulation relates to recoveries of lost revenue related to patent infringement proceedings in Canada.

Financial expenses-net (Tables)

Financial expenses-net (Tables)	12 Months Ended
	Dec. 31, 2020
Schedule of Financial Expenses	Year ended December, 31 2020 2019 2018 (U.S. $ in millions) Interest expenses and other bank charges 963 881 920 Income from investments (1) (104 ) (41 ) (39 ) Foreign exchange (gains) losses, net (26 ) (15 ) 13 Other, net (2) — (4 ) 65 Total finance expense, net $ 834 $ 822 $ 959 (1) In 2020, Income from investments comprised mainly of revaluation gain of Teva’s investment in American Well Corporation (“American Well”). See note 20. (2) In 2018, Other, net comprised mainly of a make-whole payment of $46 million following early redemption of senior notes during 2018.

Earnings (Loss) per Share (Tabl

Earnings (Loss) per Share (Tables)	12 Months Ended
	Dec. 31, 2020
Schedule of Earnings per Share	The net income (loss) attributable to Teva and the weighted average number of ordinary shares used in the computation of basic and diluted earnings (loss) per share for the years ended December 31, 2020, 2019 and 2018 are as follows: Year ended December, 31 2020 2019 2018 (U.S. $ in millions, except share data) Net income (loss) used for the computation of basic and earnings (loss) (3,990 ) $ (999 ) $ (2,399 ) Weighted average number of shares used in the computation of basic earnings (loss) 1,095 1,091 1,021 Weighted average number of shares used in the computation of diluted earnings (loss) 1,095 1,091 1,021

Segments (Tables)

Segments (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Segment Profit	Year ended December 31, 2020 North America Europe International Markets (U.S. $ in millions) Revenues $ 8,447 $ 4,757 $ 2,154 Gross profit 4,489 2,666 1,096 R&D expenses 622 247 70 S&M expenses 1,013 830 427 G&A expenses 443 261 136 Other income (10 ) (3 ) (11 ) Segment profit $ 2,421 $ 1,331 $ 474 Year ended December 31, 2019 North America Europe International Markets (U.S. $ in millions) Revenues $ 8,542 $ 4,795 $ 2,246 Gross profit 4,350 2,704 1,167 R&D expenses 652 262 88 S&M expenses 1,021 890 481 G&A expenses 439 239 138 Other income (14 ) (5 ) (3 ) Segment profit $ 2,252 $ 1,318 $ 464 Year ended December 31, 2018 North America Europe International Markets (U.S. $ in millions) Revenues $ 9,297 $ 5,186 $ 2,422 Gross profit 4,979 2,884 1,254 R&D expenses 713 283 96 S&M expenses 1,154 1,003 518 G&A expenses 484 325 153 Other income (209 ) — (11 ) Segment profit $ 2,837 $ 1,273 $ 498
Schedule Of Consolidated Income Before Income Tax	Year ended December 31, 2020 2019 2018 (U.S.$ in millions) North America profit $ 2,421 $ 2,252 $ 2,837 Europe profit 1,331 1,318 1,273 International Markets profit 474 464 498 Total reportable segments profit 4,225 4,034 4,608 Profit (loss) of other activities 163 108 115 Total segments profit 4,388 4,142 4,723 Amounts not allocated to segments: Amortization 1,020 1,113 1,166 Other asset impairments, restructuring and other items 479 423 987 Goodwill impairment 4,628 — 3,027 Intangible asset impairments 1,502 1,639 1,991 Gain on divestitures, net of divestitures related costs (8 ) (50 ) (66 ) Other R&D expenses (income) 37 (15 ) 83 Costs related to regulatory actions taken in facilities 23 45 14 Legal settlements and loss contingencies 60 1,178 (1,208 ) Other unallocated amounts 219 252 366 Consolidated operating income (loss) (3,572 ) (443 ) (1,637 ) Financial expenses, net 834 822 959 Consolidated income (loss) before income taxes $ (4,406 ) $ (1,265 ) $ (2,596 )
Schedule of Net Sales by Product Line	North America segment: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Generic products $ 4,010 $ 3,963 $ 4,056 AJOVY 134 93 3 AUSTEDO 637 412 204 BENDEKA/TREANDA 415 496 642 COPAXONE 884 1,017 1,759 ProAir* 241 274 397 QVAR 179 250 182 Anda 1,462 1,492 1,347 Other 485 546 708 Total $ 8,447 $ 8,542 $ 9,297 * Does not include revenues from the ProAir authorized generic, which are included under generic products. Europe segment: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Generic products $ 3,513 $ 3,470 $ 3,593 AJOVY 31 3 — COPAXONE 400 432 535 Respiratory products 353 354 402 Other 459 536 656 Total $ 4,757 $ 4,795 $ 5,186 International Markets segment: Year ended December 31, 2020 2019 2018 (U.S. $ in millions) Generic products $ 1,792 $ 1,893 $ 2,022 COPAXONE 53 63 72 Other 309 291 328 Total $ 2,154 $ 2,246 $ 2,422
Schedule of Sales Percentage by Therapeutic Category	The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2020, 2019 and 2018. Percentage of Third Party Net Sales 2020 2019 2018 McKesson Corporation 12 % 13 % 12 % AmerisourceBergen Corporation 12 % 12 % 14 %
Schedule of Property, Plant and Equipment by Geographic Location	d. Property, plant and equipment—by geographical location were as follows: December 31, 2020 2019 (U.S. $ in millions) Israel $ 1,611 $ 1,670 United States 790 864 Croatia 539 517 Germany 933 665 Czech republic 330 343 Hungary 325 330 Ireland 267 271 Other 1,501 1,776 Total property, plant and equipment $ 6,296 $ 6,436

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Financial Items Carried at Fair Value	Financial items carried at fair value as of December 31, 2020 and 2019 are classified in the tables below in one of the three categories described in note 1f: December 31, 2020 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 367 $ — $ — $ 367 Cash, deposits and other 1,810 — — 1,810 Investment in securities: Equity securities* 25 259 — 284 Other, mainly debt securities 5 — 10 15 Derivatives: Asset derivatives—options and forward contracts — 24 — 24 Liabilities derivatives—options and forward contracts — (79 ) — (79 ) Contingent consideration** — — (268 ) (268 ) Total $ 2,207 $ 204 $ (258 ) $ 2,153 December 31, 2019 Level 1 Level 2 Level 3 Total (U.S. $ in millions) Cash and cash equivalents: Money markets $ 577 $ — $ — $ 577 Cash, deposits and other 1,398 — — 1,398 Investment in securities: Equity securities 42 — — 42 Other, mainly debt securities 2 — 12 14 Derivatives: Asset derivatives—options and forward contracts — 32 — 32 Liability derivatives—options and forward contracts — (41 ) — (41 ) Liabilities derivatives—interest rate and cross-currency swaps — (22 ) — (22 ) Contingent consideration** — — (460 ) (460 ) Total $ 2,019 $ (31 ) $ (448 ) $ 1,540 * During the third quarter of 2020, Teva recorded a gain of $134 million under share in profits of associated companies, net, reflecting the difference between the book value of Teva’s investment in American Well and its fair value as of the date it completed its initial public offering in September 2020. The investment was reclassified from “investment in associated companies” to “investment in marketable securities,” since Teva no longer ha d This represented a transfer into Level 3 measurement within fair value hierarchy. By million under financial expenses, net, reflecting the revaluation gain of this security as of December 31, 2020 and transferred it to Level 2 measurement within fair value hierarchy due to a change in discount rate. Due to management’s intention and ability to sell this security in the next twelve months, the balance as of December 31, 2020 was reclassified to short term investments. ** Contingent consideration represents liabilities recorded at fair value in connection with acquisitions.
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, December 31, (U.S. $ in millions) Fair value at the beginning of the period $ (448 ) $ (497 ) Transfer into Level 3- equity securities 179 Revaluation of equity securities 80 Revaluation of debt securities (2 ) 2 Reclassification to Level 2- equity securities (259 ) Adjustments to provisions for contingent consideration: Actavis Generics transaction 156 92 Eagle transactio n (75 ) (151 ) Settlement of contingent consideration: Eagle transaction 111 106 Fair value at the end of the period $ (258 ) $ (448 )
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 and convertible senior debentures (see note 9), and are presented in the below table in terms of fair value: Estimated fair value* December 31, 2020 2019 (U.S. $ in millions) Senior notes included under long-term liabilities $ 22,684 $ 22,686 Senior notes and convertible senior debentures included under short-term liabilities 3,207 2,318 Fair value at the end of the period $ 25,891 $ 25,004 * The fair value was estimated based on quoted market prices.

Long-term Employee-related Ob_2

Long-term Employee-related Obligations (Tables)	12 Months Ended
	Dec. 31, 2020
Schedule of Long Term Employee Related Obligation	a. Long-term employee-related obligations consisted of the following: December 31, 2020 2019 (U.S. $ in millions) Accrued severance obligations $ 82 $ 76 Defined benefit plans 192 165 Total $ 275 $ 241

Selected Quarterly Financial _2

Selected Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2020
Selected Quarterly Financial Data	The following table presents selected unaudited quarterly financial data for 2020 and 2019: 2020 4th quarter 3rd quarter 2nd quarter 1st quarter U.S $ in millions (except per share amounts) Net revenues 4,454 3,978 3,870 4,357 Gross profit 2,048 1,852 1,763 2,063 Net income (loss) 162 (4,340 ) 53 25 Net income (loss) attributable to Teva 150 (4,349 ) 140 69 Net income (loss) attributable to ordinary shareholders 150 (4,349 ) 140 69 Earnings per share attributable to ordinary shareholders: Basic 0.14 (3.97 ) 0.13 0.06 Diluted 0.14 (3.97 ) 0.13 0.06 2019 4th quarter 3rd quarter 2nd quarter 1st quarter U.S $ in millions (except per share amounts) Net revenues 4,468 4,093 4,177 4,149 Gross profit 1,958 1,830 1,893 1,856 Net income (loss) 75 (307 ) (671 ) (97 ) Net income (loss) attributable to Teva 110 (314 ) (689 ) (105 ) Net income (loss) attributable to ordinary shareholders 110 (314 ) (689 ) (105 ) Earnings per share attributable to ordinary shareholders: Basic 0.10 (0.29 ) (0.63 ) (0.10 ) Diluted 0.10 (0.29 ) (0.63 ) (0.10 )

Significant Accounting Polici_3

Significant Accounting Policies - Additional information (Detail) - USD ($) shares in Millions, $ in Millions	Dec. 17, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Significant Accounting Policies [Line Items]
Cash deposited with financially sound European us and Israeli banks and financial institutions		$ 2,478
Percentage of consolidated sales in North America		48.00%
Shipping and handling costs, which are included in selling and marketing expenses		$ 124	$ 138	$ 159
Advertising expense		$ 225	213	256
Ordinary shares issued upon mandatory conversion of preferred shares	70.6
Operating leases rent expense net				175
Operating Lease description		Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally, 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset.
Royalty income		$ 129	$ 147	$ 165
Building [Member]
Significant Accounting Policies [Line Items]
Property plant and equipment useful life		40 years
Minimum [Member]
Significant Accounting Policies [Line Items]
Credit terms to customers		30 days
Operating Lease Remaining Lease Term		1 year
Minimum [Member] | Other Machinery and Equipment [Member]
Significant Accounting Policies [Line Items]
Property plant and equipment useful life		15 years
Minimum [Member] | Other Capitalized Property Plant and Equipment [Member]
Significant Accounting Policies [Line Items]
Property plant and equipment useful life		5 years
Maximum [Member]
Significant Accounting Policies [Line Items]
Credit terms to customers		90 days
Operating Lease Remaining Lease Term		78 years
Maximum [Member] | Other Machinery and Equipment [Member]
Significant Accounting Policies [Line Items]
Property plant and equipment useful life		20 years
Maximum [Member] | Other Capitalized Property Plant and Equipment [Member]
Significant Accounting Policies [Line Items]
Property plant and equipment useful life		10 years

Certain Transactions - Business

Certain Transactions - Business Transactions - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions	Jan. 31, 2018	Oct. 03, 2016	Aug. 02, 2016
Allergan plc [Member]
Business Acquisition [Line Items]
Allergan one time payment to Teva	$ 703
Actavis [Member]
Business Acquisition [Line Items]
Cash consideration			$ 33,400
Shares issued as consideration for the acquisition			100.3
Anda [Member]
Business Acquisition [Line Items]
Cash consideration		$ 500

Certain Transactions - Other Tr

Certain Transactions - Other Transactions - Additional Information (Detail) $ in Millions

Jan. 08, 2018USD ($)

May 12, 2017USD ($)

Mar. 03, 2016USD ($)

Sep. 30, 2018USD ($)

Sep. 30, 2016USD ($)Lawsuit

Sep. 30, 2020USD ($)

Mar. 31, 2020USD ($)

Mar. 31, 2018USD ($)

Sep. 30, 2016USD ($)

Dec. 31, 2020USD ($)

Dec. 31, 2019USD ($)

Dec. 31, 2018USD ($)

Dec. 31, 2017USD ($)

Noncash or Part Noncash Acquisitions [Line Items]

Other asset impairments, restructuring and other items

$ 479

$ 423

$ 987

Net (gain) loss from sale of long-lived assets and investments

(213)

$ (18)

(19)

PGT Healthcare Partnership [Member]

Noncash or Part Noncash Acquisitions [Line Items]

Other asset impairments, restructuring and other items

$ 64

Write-down of investment

$ 94

Net (gain) loss from sale of long-lived assets and investments

$ 50

Rimsa [Member]

Noncash or Part Noncash Acquisitions [Line Items]

Cash consideration

$ 2,300

Number of lawsuits filed | Lawsuit

2

Alder [Member]

Noncash or Part Noncash Acquisitions [Line Items]

Upfront payment

$ 25

Milestone payment

$ 25

Collaborative agreement milestone payments

$ 150

Otsuka [Member]

Noncash or Part Noncash Acquisitions [Line Items]

Upfront payment

$ 50

Milestone payment

$ 15

Celltrion [Member]

Noncash or Part Noncash Acquisitions [Line Items]

Refundable payment

60

Total associated cost

$ 160

Regeneron [Member]

Noncash or Part Noncash Acquisitions [Line Items]

Upfront payment

$ 250

Collaborative agreement milestone payments

$ 2,230

$ 120

$ 120

Research and development costs

$ 1,000

Alvotech [Member]

Noncash or Part Noncash Acquisitions [Line Items]

Collaborative agreement milestone payments

$ 450

Certain Transactions - Assets a

Certain Transactions - Assets and Liabilities Held For Sale - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2020	Nov. 30, 2015
Impairment charge	$ 247
Teva [Member]
Equity Method Investment Ownership Percentage		51.00%
Minority Interest Ownership Percentage		49.00%

Certain Transactions - Busine_2

Certain Transactions - Business Acquisitions - Summary of Major Classes of Assets and Liabilities Included as Held for Sale (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Business Combinations [Abstract]
Inventories	$ 146	$ 0
Property, plant and equipment, net and others	312	98
Goodwill	27	0
Adjustments of assets held for sale to fair value	(296)	(11)
Total assets of the disposal group classified as held for sale in the consolidated balance sheets	$ 189	$ 87

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2020
United States [Member]
Revenue Recognition [Line Items]
Percentage sales reserves and allowances to U.S. customers	79.00%

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,454	$ 3,978	$ 3,870	$ 4,357	$ 4,468	$ 4,093	$ 4,177	$ 4,149	$ 16,659	$ 16,887	$ 18,271
Sale of Goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue									14,354	14,510	15,881
Licensing Arrangements [Member]
Disaggregation of Revenue [Line Items]
Total revenue									129	147	165
Distribution [Member]
Disaggregation of Revenue [Line Items]
Total revenue									1,495	1,514	1,373
Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue									680	716	852
International Markets [Member]
Disaggregation of Revenue [Line Items]
Total revenue									2,154	2,246	2,422
International Markets [Member] | Sale of Goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue									1,946	2,045	2,151
International Markets [Member] | Licensing Arrangements [Member]
Disaggregation of Revenue [Line Items]
Total revenue									9	4	22
International Markets [Member] | Distribution [Member]
Disaggregation of Revenue [Line Items]
Total revenue									30	20	19
International Markets [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue									169	177	230
Other activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue									1,302	1,304	1,366
Other activities [Member] | Sale of Goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue									772	754	739
Other activities [Member] | Licensing Arrangements [Member]
Disaggregation of Revenue [Line Items]
Total revenue									4	5	9
Other activities [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue									527	545	618
North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue									8,447	8,542	9,297
North America [Member] | Sale of Goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue									6,902	6,941	7,838
North America [Member] | Licensing Arrangements [Member]
Disaggregation of Revenue [Line Items]
Total revenue									84	109	111
North America [Member] | Distribution [Member]
Disaggregation of Revenue [Line Items]
Total revenue									1,462	1,492	1,347
North America [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue											1
Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue									4,757	4,795	5,186
Europe [Member] | Sale of Goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue									4,736	4,770	5,153
Europe [Member] | Licensing Arrangements [Member]
Disaggregation of Revenue [Line Items]
Total revenue									32	29	23
Europe [Member] | Distribution [Member]
Disaggregation of Revenue [Line Items]
Total revenue									3	2	7
Europe [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue									$ (14)	$ (6)	$ 3

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Schedule of Sales Reserves and Allowances (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenue Recognition [Line Items]
Balance at beginning of period	$ 6,246	$ 6,886
Provisions related to sales made in current year period	14,806	17,150
Provisions related to sales made in prior periods	(497)	(189)
Credits and payments	(15,707)	(17,605)
Translation differences	56	4
Balance at end of period	4,904	6,246
Reserves Included in Accounts Receivable, Net [Member]
Revenue Recognition [Line Items]
Balance at beginning of period	87	175
Provisions related to sales made in current year period	391	383
Credits and payments	(398)	(471)
Balance at end of period	80	87
Rebates [Member]
Revenue Recognition [Line Items]
Balance at beginning of period	2,895	3,006
Provisions related to sales made in current year period	4,703	5,552
Provisions related to sales made in prior periods	(219)	(92)
Credits and payments	(5,360)	(5,570)
Translation differences	35	(1)
Balance at end of period	2,054	2,895
Medicaid and Other Governmental Allowances [Member]
Revenue Recognition [Line Items]
Balance at beginning of period	1,109	1,361
Provisions related to sales made in current year period	744	976
Provisions related to sales made in prior periods	(184)	(151)
Credits and payments	(849)	(1,076)
Translation differences	8	(1)
Balance at end of period	828	1,109
Chargebacks [Member]
Revenue Recognition [Line Items]
Balance at beginning of period	1,342	1,530
Provisions related to sales made in current year period	8,438	9,565
Provisions related to sales made in prior periods	(65)	(17)
Credits and payments	(8,614)	(9,736)
Translation differences	7	1
Balance at end of period	1,108	1,342
Returns [Member]
Revenue Recognition [Line Items]
Balance at beginning of period	637	638
Provisions related to sales made in current year period	459	281
Provisions related to sales made in prior periods	(28)	77
Credits and payments	(386)	(360)
Translation differences	4	1
Balance at end of period	686	637
Other [Member]
Revenue Recognition [Line Items]
Balance at beginning of period	176	176
Provisions related to sales made in current year period	71	394
Provisions related to sales made in prior periods	(1)	(6)
Credits and payments	(100)	(392)
Translation differences	2	4
Balance at end of period	148	176
Total Reserves Included in Sales Reserves and Allowances [Member]
Revenue Recognition [Line Items]
Balance at beginning of period	6,159	6,711
Provisions related to sales made in current year period	14,415	16,767
Provisions related to sales made in prior periods	(497)	(189)
Credits and payments	(15,309)	(17,134)
Translation differences	56	4
Balance at end of period	$ 4,824	$ 6,159

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Inventories [Line Items]
Finished products	$ 2,378	$ 2,504
Raw and packaging materials	1,231	1,183
Products in process	605	583
Materials in transit and payments on account	189	151
Total	$ 4,403	$ 4,422

Property, Plant and Equipment -

Property, Plant and Equipment - Summary of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Machinery and equipment	$ 5,245	$ 5,385
Buildings	2,720	2,839
Computer equipment and other assets	2,197	2,131
Assets under construction and payments on account	933	672
Land	292	323
Subtotal	11,388	11,350
Less—accumulated depreciation	(5,092)	(4,914)
Property, Plant and Equipment, Net, Total	$ 6,296	$ 6,436

Property, Plant and Equipment_2

Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Depreciation expense for the year	$ 537	$ 609	$ 676
Impairment charge during the year on property, plant and equipment	$ 416	$ 139	$ 500

Identifiable Intangible Asset_2

Identifiable Intangible Assets - Summary of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount net of impairment	$ 21,182	$ 21,998
Accumulated amortization	12,259	10,766
Net carrying amount	8,923	11,232
Identifiable product rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount net of impairment	19,650	19,663
Accumulated amortization	12,094	10,640
Net carrying amount	7,556	9,023
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount net of impairment	621	600
Accumulated amortization	165	126
Net carrying amount	456	474
In Process Research and Development (IPR&D) [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount net of impairment	911	1,735
Net carrying amount	$ 911	$ 1,735

Identifiable Intangible Asset_3

Identifiable Intangible Assets - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets useful life	10 years
Amortization of intangible assets	$ 1,020	$ 1,113	$ 1,166
2021	812
2022	764
2023	744
2024	705
2025	723
Impairment of intangible assets excluding goodwill	1,502	1,639	1,991
Lenalidomide Product [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill	262	125
In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill	$ 797	681	923
Business combination, contingent consideration, liability, measurement input	80
In Process Research and Development [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Business combination, contingent consideration, liability, measurement input	7.5
In Process Research and Development [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Business combination, contingent consideration, liability, measurement input	9
Identifiable product rights [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill	$ 705	958
Actavis [Member] | In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Business combination recognized identifiable assets	877
Impairment of intangible assets excluding goodwill	110	59	1,068
Actavis [Member] | In Process Research and Development [Member] | Lenalidomide Product [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill	300	497
Actavis [Member] | Identifiable product rights [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill	398	647	412
AUSTEDO [Member] | In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill	211
International Markets [Member] | Discontinued business [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill		123
International Markets [Member] | Actavis [Member] | In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill			290
Japan [Member] | Identifiable product rights [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill	$ 165	$ 128
Japan [Member] | Actavis [Member] | In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets excluding goodwill			$ 222

Goodwill - Summary of Changes i

Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Line Items]
Beginning balance	[1]	$ 24,846	$ 24,917
Goodwill reclassified as assets to held for sale		(27)
Goodwill disposal			(28)
Goodwill impairment		(4,628)		$ (3,027)
Translation differences		433	(43)
Ending balance	[1]	20,624	24,846	24,917
North America [Member]
Goodwill [Line Items]
Beginning balance	[1]	11,091	11,098
Goodwill disposal			(23)
Goodwill impairment		(4,628)
Translation differences		10	16
Ending balance	[1]	6,473	11,091	11,098
Europe [Member]
Goodwill [Line Items]
Beginning balance	[1]	8,536	8,653
Goodwill reclassified as assets to held for sale		(8)
Goodwill disposal			(5)
Translation differences		574	(112)
Ending balance	[1]	9,102	8,536	8,653
International Markets [Member]
Goodwill [Line Items]
Beginning balance	[1]	2,532	2,479
Goodwill reclassified as assets to held for sale		(19)
Translation differences		(151)	53
Ending balance	[1]	2,362	2,532	2,479
Other [Member]
Goodwill [Line Items]
Beginning balance	[1]	2,687	2,687
Ending balance	[1]	$ 2,687	$ 2,687	$ 2,687
[1]	Accumulated goodwill impairment as of December 31, 2020, December 31, 2019 and December 31, 2018 was approximately $25.6 billion, $21.0 billion and $21.0 billion, respectively.

Goodwill - Summary of Changes_2

Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - USD ($) $ in Billions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Line Items]
Accumulated goodwill impairment	$ 25.6	$ 21	$ 21

Goodwill - Additional Informati

Goodwill - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2018
Goodwill [Line Items]
Goodwill impairment		$ 4,628	$ 3,027
North America [Member]
Goodwill [Line Items]
Goodwill impairment		$ 4,628
Reduction in its market capitalization	25.00%
Other [Member]
Goodwill [Line Items]
Percentage difference between fair value and carrying value in respect of goodwill		10.00%

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating lease cost:
Fixed payments and variable payments that depend on an index or rate	$ 148	$ 166
Variable lease payments not included in the lease liability	4	6
Short-term lease cost	3	6
Total operating lease cost	$ 155	$ 178

Leases - Supplemental cash flow

Leases - Supplemental cash flow information related to leases (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 151	$ 169
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases	$ 211	$ 142

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information Related To Leases (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Operating leases:
Operating lease ROU assets	$ 559	$ 514
Other current liabilities	116	118
Operating lease liabilities	479	435
Total operating lease liabilities	$ 595	$ 553
Weighted average remaining lease term Operating leases	7 years 6 months	7 years 6 months
Weighted average discount rate Operating leases	5.20%	6.00%
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OperatingLeaseLiabilityCurrent	us-gaap:OperatingLeaseLiabilityCurrent

Leases - Maturities of lease l

Leases - Maturities of lease liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
2021	$ 137
2022	119
2023	91
2024	73
2025 and thereafter	302
Total operating lease payments	722
Less: imputed interest	127
Present value of lease liabilities	$ 595	$ 553

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Finance Lease, Right-of-Use Asset	$ 29
Finance Lease, Liability	21
Operating lease right-of-use assets	559		$ 514
Operating lease liability	$ 595		$ 553
Maximum [Member]
Operating lease liability		$ 66
Minimum [Member]
Operating lease right-of-use assets		$ 74

Debt Obligations - Schedule of

Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Current maturities of long-term liabilities	$ 2,674	$ 1,831
Total short term debt	$ 3,188	2,345
Convertible senior debentures [Member]
Debt Instrument [Line Items]
Weighted average interest rate	0.25%
Maturity	2026
Short-term borrowings	$ 514	$ 514

Debt Obligations - Schedule o_2

Debt Obligations - Schedule of Senior Notes and Loans (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total senior notes		$ 25,490	$ 26,496
Less current maturities		(2,674)	(1,831)
Less debt issuance costs		(86)	(103)
Total senior notes and loans		$ 22,731	24,562
Other Debentures [Member]
Debt Instrument [Line Items]
Weighted average interest rate		1.08%
Maturity		2026
Total senior notes and loans		$ 1	1
Senior notes EUR 1,010 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate	[1]	0.38%
Maturity	[1]	2020
Total senior notes	[1]		1,131
Senior notes EUR 1,500 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		1.13%
Maturity		2024
Total senior notes		$ 1,839	1,673
Senior notes EUR 1,300 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		1.25%
Maturity		2023
Total senior notes		$ 1,595	1,451
Senior notes EUR 900 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		4.50%
Maturity		2025
Total senior notes		$ 1,107	1,008
Senior notes EUR 750 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		1.63%
Maturity		2028
Total senior notes		$ 916	833
Senior notes EUR 700 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		3.25%
Maturity		2022
Total senior notes		$ 861	784
Senior notes EUR 700 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		1.88%
Maturity		2027
Total senior notes		$ 860	782
Senior notes USD 3,500 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		3.15%
Maturity		2026
Total senior notes		$ 3,495	3,494
Senior notes USD 3,000 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		2.80%
Maturity		2023
Total senior notes		$ 2,996	2,995
Senior notes USD 2,000 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		4.10%
Maturity		2046
Total senior notes		$ 1,986	1,985
Senior notes USD 1,250 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		6.00%
Maturity		2024
Total senior notes		$ 1,250	1,250
Senior notes USD 1,250 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		6.75%
Maturity		2028
Total senior notes		$ 1,250	1,250
Senior notes EUR 1,000 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		6.00%
Maturity		2025
Total senior notes		$ 1,230	1,120
Senior notes USD 1,000 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		7.13%
Maturity		2025
Total senior notes		$ 1,000	1,000
Senior notes USD 1,475 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		2.20%
Maturity		2021
Total senior notes		$ 1,472	1,474
Senior notes USD 844 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		2.95%
Maturity		2022
Total senior notes		$ 853	856
Senior notes USD 789 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		6.15%
Maturity		2036
Total senior notes		$ 783	782
Senior notes USD 700 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate	[2]	2.25%
Maturity	[2]	2020
Total senior notes	[2]		700
Senior notes USD 613 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		3.65%
Maturity		2021
Total senior notes		$ 616	618
Senior notes USD 588 million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		3.65%
Maturity		2021
Total senior notes		$ 586	587
Senior notes CHF 350 Million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		0.50%
Maturity		2022
Total senior notes		$ 397	361
Senior notes CHF 350 Million [Member]
Debt Instrument [Line Items]
Weighted average interest rate		1.00%
Maturity		2025
Total senior notes		$ 398	$ 362
[1]	In July 2020, Teva repaid at maturity €1,010 million of its 0.375% senior notes.
[2]	In March 2020, Teva repaid at maturity $700 million of its 2.25% senior notes.

Debt Obligations - Schedule o_3

Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail) - Dec. 31, 2020 € in Millions, SFr in Millions, $ in Millions	EUR (€)	USD ($)	CHF (SFr)
Senior notes EUR 1,010 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | €	€ 1,010
Senior notes EUR 1,500 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | €	1,500
Senior notes EUR 1,300 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | €	1,300
Senior notes EUR 900 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | €	900
Senior notes EUR 750 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | €	750
Senior notes EUR 700 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | €	700
Senior notes EUR 700 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | €	700
Senior notes EUR 1,000 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | €	€ 1,000
Senior notes USD 1,000 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		$ 1,000
Senior notes USD 3,500 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		3,500
Senior notes USD 1,475 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		1,475
Senior notes USD 3,000 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		3,000
Senior notes USD 2,000 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		2,000
Senior notes USD 1,250 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		1,250
Senior notes USD 1,250 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		1,250
Senior notes USD 844 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		844
Senior notes USD 789 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		789
Senior notes USD 700 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		700
Senior notes USD 613 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		613
Senior notes USD 588 million [Member]
Debt Instrument [Line Items]
Debt instrument face amount		$ 588
Senior notes CHF 350 Million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | SFr			SFr 350
Senior notes CHF 350 Million [Member]
Debt Instrument [Line Items]
Debt instrument face amount | SFr			SFr 350

Debt Obligation - Schedule Requ

Debt Obligation - Schedule Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance Cost (Detail) $ in Millions	Dec. 31, 2020USD ($)
Long Term Debt Maturity [Line Items]
2022	$ 2,111
2023	4,591
2024	3,089
2025	3,735
2026 and thereafter	9,804	[1]
Total	$ 23,330
[1]	Including $514 million convertible notes. See note 9a.

Debt Obligation - Schedule Re_2

Debt Obligation - Schedule Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance Cost (Parenthetical) (Detail) - USD ($) $ in Millions	Feb. 01, 2021	Dec. 31, 2020	Dec. 31, 2019
Convertible Debt [Member]
Short-term Debt [Line Items]
Principal amount currently outstanding on the debt instruments	$ 491	$ 514	$ 514

Debt Obligations - Additional I

Debt Obligations - Additional Information (Detail) € in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Apr. 30, 2019USD ($)	Dec. 31, 2020USD ($)	Feb. 01, 2021USD ($)	Jul. 31, 2020EUR (€)	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Nov. 30, 2015USD ($)
Debt Instrument [Line Items]
Revolving credit facility	$ 1,150						$ 1,150
Senior notes		$ 25,490				$ 26,496
Long term debt currency portion USD		60.00%
Long term debt currency portion EUR		37.00%
Long term debt currency portion CHF		3.00%
Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes | €				€ 1,010
Debt instrument face amount					$ 700
Weighted average interest rate				0.375%	2.25%
Convertible Debt [Member]
Debt Instrument [Line Items]
Principal amount currently outstanding on the debt instruments		$ 514	$ 491			$ 514
Weighted average interest rate		0.25%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Covenant Description		The net debt to EBITDA ratio limit was 5.75x through December 31, 2020, gradually declines to 5.50x in the first and second quarters of 2021, 5.00x in the third and fourth quarters of 2021, and continues to gradually decline over the remaining term of the RCF.
Long Term Debt Payable Under Revolving Credit Facility		$ 0
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,300
Revolving Credit Facility [Member] | Trache A [Member] | Trache A Extension [Member]
Debt Instrument [Line Items]
Revolving credit facility	$ 1,065
Line of credit facility, expiration date	Apr. 8, 2023
Revolving Credit Facility [Member] | Trache B [Member]
Debt Instrument [Line Items]
Line of credit facility, expiration date	Apr. 8, 2024

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Summary of Notional Amounts for Hedged Items, Designated as Hedge Accounting (Detail) $ in Millions	Dec. 31, 2019USD ($)
Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedge [Member]
Derivative [Line Items]
Notional amounts of hedge	$ 1,000

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Non-current Assets [Member]
Derivative [Line Items]
Asset derivatives	$ 0
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accounts Payable [Member]
Derivative [Line Items]
Liability derivatives	0
Designated as Hedging Instrument [Member] | Swap [Member] | Other Current Liabilities [Member] | Net Investment Hedging [Member]
Derivative [Line Items]
Liability derivatives		$ (22)
Designated as Hedging Instrument [Member] | Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member] | Net Investment Hedging [Member]
Derivative [Line Items]
Liability derivatives	0
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accounts Payable [Member]
Derivative [Line Items]
Liability derivatives	(79)	(41)
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member]
Derivative [Line Items]
Asset derivatives	$ 24	$ 32

Derivative Instruments and He_5

Derivative Instruments and Hedging Activities - Information Regarding The Location And Amount Of Pretax (Gains) Losses Of Derivatives Designated In Fair Value Or Cash Flow Hedging Relationships (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	[1]	Dec. 31, 2017	[1]
Other Comprehensive Income
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax		$ (30)	$ 160	$ (585)
Other Comprehensive Income | Cash Flow Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax	[2]	0	(33)	(35)
Other Comprehensive Income | Net Investment Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax	[3]	(21)	(22)	(51)
Other Comprehensive Income | Fair Value Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax	[4]	0	0	$ 0
Financial expenses [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax		834	822			$ 959
Financial expenses [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax	[2]	0	(2)			(2)
Financial expenses [Member] | Net Investment Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax	[3]	(2)	(29)			$ (31)
Financial expenses [Member] | Fair Value Hedging [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax	[4]	$ 0	$ 2
[1]	Comparative figures are based on prior hedge accounting standard.
[2]	With respect to cross-currency swap agreements, Teva recognized gains which mainly reflect the differences between the fixed interest rate and the floating interest rate. In the fourth quarter of 2019, Teva terminated $588 million in cross-currency swap agreements against its outstanding 3.65% senior notes maturing in November 2021. The settlement of these transactions resulted in cash proceeds of $95 million. The cash flow hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense.
[3]	In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500 million maturing in 2020. These cross currency swaps were designated as a net investment hedge of Teva’s foreign subsidiaries euro denominated net assets, in order to reduce the risk of adverse exchange rate fluctuations. With respect to these cross currency swap agreements, Teva recognized gains which mainly reflect the differences between the float-for-float interest rates paid and received. In the first quarter of 2020, these cross-currency swap agreements expired. The settlement of these transactions resulted in cash proceeds of $3 million.
[4]	In the fourth quarter of 2016, Teva entered into an interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. With respect to this interest rate swap agreement, Teva recognized a loss which mainly reflects the differences between the fixed interest rate and the floating interest rate. In the third quarter of 2019, Teva terminated this interest rate swap agreement. The settlement of these transactions resulted in a gain position of $10 million. The fair value hedge accounting adjustments of these instruments, which are recorded under senior notes and loans, are amortized under financial expenses, net over the life of the debt as additional interest expense.

Derivative Instruments and He_6

Derivative Instruments and Hedging Activities - Schedule Of Other Derivatives Not Designated As Hedging Instruments Statements OfFinancial Performance And Financial Position Location (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019		Dec. 31, 2018
Net Revenues [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax		$ 16,659	$ 16,887		$ 18,271
Net Revenues [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax		0.5	14	[1]	(4)	[1]
Financial expenses [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax		834	822		959
Financial expenses [Member] | Not Designated as Hedging Instrument, Trading [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax	[2]	130	$ (51)		$ (12)
Financial expenses [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax	[1]	$ 0
[1]	Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the British pound, the Russian ruble and some other currencies during the period for which such instruments are transacted. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. [The [positive] impact from these derivatives recognized under revenues was $1 million, $14 million and ($4) million, partially offset by $0 million, $X million and $X million negative impact recognized under cost of sales in the years ended December 31, 2020, 2019 and 2018, respectively]. [To be updated] The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
[2]	Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net.

Derivative Instruments and He_7

Derivative Instruments and Hedging Activities - Summary of Sold Receivables Outstanding Balance Net of DPP Asset under Outstanding Securitization Program (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Sold receivables at the beginning of the year	$ 690	$ 686
Proceeds from sale of receivables	4,606	4,852
Cash collections (remitted to the owner of the receivables)	(4,607)	(4,849)
Effect of currency exchange rate changes	45	1
Sold receivables at the end of the year	$ 734	$ 690

Derivative Instruments and He_8

Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2020	Dec. 31, 2019		Dec. 31, 2018		Sep. 30, 2019	Dec. 31, 2016
Derivative [Line Items]
Revenues other than USD		48.00%
Teva other comprehensive loss		$ 493
Forward starting interest rate swaps and treasury lock agreements losses		31	$ 29		$ 28
Interest Rate Swap Gain		3	6		6
Deferred purchase asset		266	250
Sold receivables		734	690		686
Cash received on settlement of position		3
Cost of sales [Member]
Derivative [Line Items]
Derivative, Gain on Derivative		27
Cost of sales [Member] | Hedging Of Revenues 2021 [Member]
Derivative [Line Items]
Teva other comprehensive loss		27
Net Revenues [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax					0.5
Net Revenues [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivative [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax		0.5	14	[1]	$ (4)	[1]
Senior Notes Due 2023 Two [Member]
Derivative [Line Items]
Notional amount hedge debt	$ 3,000						$ 500	$ 500
Previously hedge debt rate							2.80%	2.80%
Settlement gain position		10
Cash received on settlement of position							$ 10
Derivative, Fair Value Hedge, Included in Effectiveness, Gain (Loss)	41
Senior Notes Due 2022 [Member]
Derivative [Line Items]
Notional amount hedge debt	$ 844
Previously hedge debt rate	2.95%
Senior Notes Due 2021 [Member]
Derivative [Line Items]
Notional amount hedge debt	$ 450		$ 588
Previously hedge debt rate	3.65%		3.65%
Cash received on settlement of position			$ 95
Senior Notes Due 2020 [Member]
Derivative [Line Items]
Cash received on settlement of position		$ 500
Senior Notes Due 2021 Two [Member]
Derivative [Line Items]
Previously hedge debt rate			3.65%
Cash received on settlement of position			$ 95
[1]	Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, the British pound, the Russian ruble and some other currencies during the period for which such instruments are transacted. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions against future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. [The [positive] impact from these derivatives recognized under revenues was $1 million, $14 million and ($4) million, partially offset by $0 million, $X million and $X million negative impact recognized under cost of sales in the years ended December 31, 2020, 2019 and 2018, respectively]. [To be updated] The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.

Legal Settlements and Loss Co_2

Legal Settlements and Loss Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Legal settlements and loss contingencies, expense	$ 60	$ 1,178
Legal settlements, income			$ 1,208
Accrued amount for legal settlements and loss contingencies	$ 1,625	$ 1,580
Settlement On Account Of Product Liability [Member] | United States [Member]
Loss Contingencies [Line Items]
Restructuring expense and income	The expenses in 2020 were mainly related to a fine imposed by the European Commission in relation to a 2005 patent settlement agreement and an increase of a reserve for certain product liability claims in the United States, partially offset by proceeds received following a settlement of the FCPA derivative proceedings in Israel and settlement of an action brought against the sellers of Auden McKenzie (an acquisition made by Actavis Generics). The expenses in 2019 were mainly related to an estimated provision recorded in connection with potential settlement of the opioid cases.

Commitments and Contingencies -

Commitments and Contingencies - Commitments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Commitment And Contingencies [Line Items]
Royalty expense	$ 505	$ 403	$ 536
Maximum [Member]
Commitment And Contingencies [Line Items]
Milestone contingent expense	$ 509

Commitments and Contingencies_2

Commitments and Contingencies - Contingencies - Additional Information (Detail) $ in Millions, $ in Millions

Oct. 21, 2019USD ($)Number

Jun. 27, 2018CAD ($)

Aug. 21, 2017USD ($)

May 31, 2019USD ($)

Jul. 31, 2015USD ($)

Sep. 30, 2013USD ($)

Apr. 30, 2013USD ($)

Aug. 31, 2012USD ($)

Dec. 31, 2010USD ($)

Nov. 30, 2009USD ($)

Dec. 31, 2019USD ($)

Dec. 31, 2018USD ($)

Dec. 31, 2014USD ($)

Dec. 31, 2014CAD ($)

Dec. 31, 2020USD ($)

Dec. 31, 2020CAD ($)

May 31, 2015USD ($)

Jan. 31, 2009USD ($)

Jul. 31, 2008USD ($)

Feb. 28, 2005USD ($)

Commitment And Contingencies [Line Items]

Damages assessment

$ 235.5

Sales

$ 94

Modafinil payment

$ 1,200

Annual sales at the time of settlement

700

$ 350

Annual sales of Effexor

$ 2,600

Annual sales of Lamictal

$ 2,300

$ 950

Annual sales of Niaspan

$ 1,100

$ 416

Annual sales of Actos

$ 2,800

$ 3,700

Annual sales of Acto plus

$ 430

$ 500

Annual sales of Namenda

$ 550

$ 1,100

Loss contingency payment

$ 25

Annual Sales Of Sensipar

$ 1,400

Modafinil payment remaining balance

19

Annual sales of Copaxone

$ 431

Generic modafinil, and imposed fines amount

$ 1,580

1,625

Opioid Litigation [Member]

Commitment And Contingencies [Line Items]

Litigation settlement amount

$ 85

Litigation settlement amount awarded distribution period

3 years

Litigation settlement amount awarded cash amount

$ 20

Litigation settlement amount awarded number of installments | Number

4

Litigation settlement amount awarded cash amount distribution period

3 years

Nationwide Settlement [Member]

Commitment And Contingencies [Line Items]

Litigation settlement amount

$ 23,000

Litigation settlement amount awarded distribution period

10 years

Litigation settlement amount awarded cash amount

$ 250

Litigation settlement amount awarded cash amount distribution period

10 years

Modafinil Settlement Agreement [Member]

Commitment And Contingencies [Line Items]

Generic modafinil, and imposed fines amount

$ 60.5

Eosinophilic Esophagitis [Member]

Commitment And Contingencies [Line Items]

Damage claimed

200

Eosinophilic Esophagitis [Member] | United States [Member]

Commitment And Contingencies [Line Items]

Damage claimed

150

Eosinophilic Esophagitis [Member] | Europe [Member]

Commitment And Contingencies [Line Items]

Damage claimed

$ 50

Janssen and Millennium [Member]

Commitment And Contingencies [Line Items]

Maximum damages payable

$ 200

Litigation settlement awarded from other party

$ 5

AndroGel Rate at 1% [Member]

Commitment And Contingencies [Line Items]

Annual sales at the time of settlement

$ 140

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]
Parent Company and its Israeli subsidiaries	$ 947	$ 542	$ 1,022
Non-Israeli subsidiaries	(5,353)	(1,807)	(3,618)
Income (loss) before income taxes	$ (4,406)	$ (1,265)	$ (2,596)

Income Taxes - Schedule of the

Income Taxes - Schedule of the Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]
In Israel	$ 60	$ 107	$ 131
Outside Israel	(228)	(385)	(326)
Effective consolidated income taxes	(168)	(278)	(195)
Current	182	885	700
Deferred	(350)	(1,163)	(895)
Income tax expense (benefit)	$ (168)	$ (278)	$ (195)

Income Taxes - Accumulated Othe

Income Taxes - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]
Income (Loss) before income taxes		$ (4,406)	$ (1,265)	$ (2,596)
Statutory tax rate in Israel		23.00%	23.00%	23.00%
Theoretical provision for income taxes		$ (1,013)	$ (291)	$ (597)
Increase (decrease) in the provision for income taxes due to:
The Parent Company and its Israeli subsidiaries- Mainly tax benefits arising from reduced tax rates under benefit programs		(183)	(44)	(134)
Non-Israeli subsidiaries, including impairments	[1]	1,369	(115)	381
U.S. Tax Cuts and Jobs Act effect				97
Increase (decrease) in other uncertain tax positions-net		(341)	172	58
Effective consolidated income taxes		$ (168)	$ (278)	$ (195)
[1]	In 2020 and 2018, income before income taxes includes goodwill impairment in non-Israeli subsidiaries that did not have a corresponding tax effect.

Income Taxes - Accumulated Ot_2

Income Taxes - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Parenthetical) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2018
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]
Income before income taxes includes goodwill impairment tax effect	$ 0	$ 0

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Defered Income Taxes (Detail) - USD ($) $ in Millions		Dec. 31, 2020	Dec. 31, 2019
Deferred Tax Assets Liabilities Net [Line Items]
Inventory related		$ 212	$ 144
Sales reserves and allowances		173	198
Provision for legal settlements		235	260
Intangible assets	[1]	(1,064)	(1,733)
Carryforward losses and deductions and credits	[2]	2,176	1,689
Property, plant and equipment		(142)	(170)
Deferred interest		527	648
Provisions for employee related obligations		107	106
Other		54	122
Long-term deferred tax assets (liabilities)-gross		2,278	1,264
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized		(2,547)	(1,974)
Deferred tax assets liabilities net		$ (269)	$ (710)
[1]	The decrease in deferred tax liability is mainly due to impairment and amortization.
[2]	The amounts are shown after reduction for unrecognized tax benefits of $ 63 million and $115 million as of December 31, 2020 and 2019, respectively. This amount represents the tax effect of gross carryforward losses and deductions with the following expirations: 2021-2022—$79 million; 2023-2029—$663 million; 2030 and thereafter—$171 million. The remaining balance—$1,327 million—can be utilized with no expiration date.

Income Taxes - Schedule of De_2

Income Taxes - Schedule of Defered Income Taxes (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred Tax Assets Liabilities Net [Line Items]
Unrecognized tax benefits	$ 63	$ 115

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) ₪ in Millions, $ in Millions

Jan. 01, 2017

Jul. 31, 2020USD ($)

Dec. 31, 2020USD ($)

Sep. 30, 2020USD ($)

Jun. 30, 2020USD ($)

Mar. 31, 2020USD ($)

Dec. 31, 2019USD ($)

Sep. 30, 2019USD ($)

Jun. 30, 2019USD ($)

Mar. 31, 2019USD ($)

Dec. 31, 2020USD ($)Employee

Dec. 31, 2020ILS (₪)Employee

Dec. 31, 2019USD ($)

Dec. 31, 2018USD ($)

Dec. 31, 2017USD ($)

Dec. 31, 2016

Income Tax [Line Items]

Balance of accrued potential penalties and interest in unrecognized tax benefits

$ 173

$ 164

$ 173

$ 164

$ 131

Unrecognized Tax Benefits Income Tax Penalties And Interest Expense

$ 9

$ 33

$ 19

Statutory tax rate in Israel

23.00%

23.00%

23.00%

23.00%

Annual revenue

4,454

$ 3,978

$ 3,870

$ 4,357

$ 4,468

$ 4,093

$ 4,177

$ 4,149

$ 16,659

$ 16,887

$ 18,271

Effective income tax rate

21.00%

35.00%

Expected impairment of income tax benefit

$ 141

Provisional estimate for one-time deemed repatriation tax liability

$ 97

$ 112

Israel Tax Authority [Member]

Income Tax [Line Items]

Income tax audit period

2008 2009 2010 2011

2008 2009 2010 2011

Withholding tax percentage on dividends

8.00%

Israel Tax Authority [Member] | Tax Year 2005 To 2007 [Member]

Income Tax [Line Items]

Income tax settlement amount

$ 213

Tax Carryforwards And Deductions Expiration Period One [Member]

Income Tax [Line Items]

Tax effect of unspecified carryforward losses and deductions

79

$ 79

Tax Carryforwards And Deductions Expiration Period Two [Member]

Income Tax [Line Items]

Tax effect of unspecified carryforward losses and deductions

663

663

Tax Carryforwards And Deductions No Expiration [Member]

Income Tax [Line Items]

Tax effect of unspecified carryforward losses and deductions

171

171

Tax Carryforwards And Deductions Indefinite [Member]

Income Tax [Line Items]

Tax effect of unspecified carryforward losses and deductions

1,327

1,327

Amendment 69 to Investment Law [Member]

Income Tax [Line Items]

Payment of corporate tax

577

Exempt Income

9,400

Amendment 68 to Investment Law [Member] | Israel Tax Authority [Member]

Income Tax [Line Items]

Statutory tax rate in Israel

16.00%

Amendment 68 to Investment Law [Member] | Israel Tax Authority [Member] | Development Zonea [Member]

Income Tax [Line Items]

Statutory tax rate in Israel

9.00%

Amendment 73 to Investment Law [Member] | Israel Tax Authority [Member] | Development Zonea [Member]

Income Tax [Line Items]

Statutory tax rate in Israel

7.50%

Preferred Enterprise [Member] | Israel Tax Authority [Member]

Income Tax [Line Items]

Withholding tax percentage on dividends

20.00%

Preferred Enterprise [Member] | Israel Tax Authority [Member] | Development Zonea [Member]

Income Tax [Line Items]

Withholding tax percentage on dividends

5.00%

Preferred Technological Enterprises [Member]

Income Tax [Line Items]

Venture capital investment

$ 2

$ 2

Average growth rate in sales or workforce

25.00%

25.00%

Average growth preceding period in sales or workforce

3 years

3 years

Preferred Technological Enterprises [Member] | Research and Development Arrangement [Member]

Income Tax [Line Items]

Minimum percentage of investment income

7.00%

7.00%

Minimum investment income

$ 22

₪ 75

Minimum percentage of workforce

20.00%

20.00%

Minimum number of employees employed | Employee

200

200

Preferred Technological Enterprises [Member] | Israel Tax Authority [Member]

Income Tax [Line Items]

Statutory tax rate in Israel

12.00%

12.00%

Preferred Technological Enterprises [Member] | Israel Tax Authority [Member] | Development Zonea [Member]

Income Tax [Line Items]

Statutory tax rate in Israel

7.50%

7.50%

Special Preferred Technological Enterprise [Member]

Income Tax [Line Items]

Annual revenue

$ 2,900

₪ 10,000

Special Preferred Technological Enterprise [Member] | Israel Tax Authority [Member]

Income Tax [Line Items]

Statutory tax rate in Israel

6.00%

6.00%

Withholding tax percentage on dividends

4.00%

4.00%

Minimum [Member] | Tax Carryforwards And Deductions Expiration Period One [Member]

Income Tax [Line Items]

Expiration period

Dec. 31, 2021

Dec. 31, 2021

Minimum [Member] | Tax Carryforwards And Deductions Expiration Period Two [Member]

Income Tax [Line Items]

Expiration period

Dec. 31, 2023

Dec. 31, 2023

Minimum [Member] | Tax Carryforwards And Deductions No Expiration [Member]

Income Tax [Line Items]

Expiration period

Dec. 31, 2030

Dec. 31, 2030

Maximum [Member] | Tax Carryforwards And Deductions Expiration Period One [Member]

Income Tax [Line Items]

Expiration period

Dec. 31, 2022

Dec. 31, 2022

Maximum [Member] | Tax Carryforwards And Deductions Expiration Period Two [Member]

Income Tax [Line Items]

Expiration period

Dec. 31, 2029

Dec. 31, 2029

Income Taxes - Schedule of De_3

Income Taxes - Schedule of Deferred Tax Assets and Liabilities By Report Caption (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Deferred Tax Assets Liabilities Net [Line Items]
Long-term assets-deferred income taxes	$ 695	$ 386
Long-term liabilities-deferred income taxes	(964)	(1,096)
Deferred tax assets liabilities net	$ (269)	$ (710)

Income Taxes - Schedule of Unre

Income Taxes - Schedule of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule Of Unrecognized Tax Benefits [Line Items]
Balance at the beginning of the year	$ 1,223	$ 1,072	$ 1,034
Increase (decrease) related to prior year tax positions, net	(238)	23	76
Increase related to current year tax positions	10	246	11
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations	(105)	(118)	(49)
Other	(2)
Balance at the end of the year	$ 888	$ 1,223	$ 1,072

Equity - Additional Information

Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	Dec. 17, 2018	Jul. 13, 2017	Apr. 18, 2016	Dec. 31, 2020	Jun. 11, 2020	Dec. 31, 2019	Dec. 31, 2018	Sep. 03, 2015	Jun. 29, 2010
Class of Stock [Line Items]
Ordinary shares issuance ADSs				1,200,000		1,200,000
Share price				$ 9.65
Share issued due to conversion of convertible preferred shares	70,600
Convertible preferred stock terms of conversion	1 mandatory convertible preferred share to 16 ADSs, and all of the accumulated and unpaid dividends on the mandatory convertible preferred shares were paid in ADSs, at a ratio of 3.0262
Number of shares exercisable				28,556
Number of shares available for future awards				74,000
Vesting period, description				The vesting period of the outstanding options and RSUs is generally from 1 to 4 years from the date of grant. The vesting period of PSUs is generally 3 years from the date of grant. The rights of the ordinary shares obtained from the exercise of options, RSUs or PSUs are identical to those of the other ordinary shares of the Company. The contractual term of these options is primarily for ten years.
Company average share price						$ 11.50	$ 20.92
Total unrecognized compensation cost before tax on employee stock options				$ 20
Total unrecognized compensation cost before tax on employee stock RSUs				$ 164
Share based compensation arrangements expected over weighted average period for options				1 year 1 month 6 days
Share based compensation arrangements expected over weighted average period for RSU/PSUs				2 years 6 months
2010 Long-Term Equity-Based Incentive Plan [Member]
Class of Stock [Line Items]
Number of shares exercisable									70,000
2015 Long-Term Equity-Based Incentive Plan [Member]
Class of Stock [Line Items]
Number of shares exercisable		142,000	77,000					43,700
Number of additional shares authorized		65,000	33,300
2020 Long-Term Equity-Based Incentive Plan [Member]
Class of Stock [Line Items]
Number of shares exercisable					68,000

Equity - Summary of Stock Optio

Equity - Summary of Stock Option Activity (Detail) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance outstanding at begining of year	40,064	48,393	43,121
Granted			12,401
Exercised		(11)	(84)
Forfeited	(3,610)	(8,318)	(7,040)
Expired	(1,220)		(5)
Balance outstanding at end of year	35,234	40,064	48,393
Balance exercisable at end of year	28,556	26,601	24,086
Balance outstanding at begining of year	$ 37.90	$ 38.62	$ 44.32
Granted			19.12
Exercised		16.99	17.01
Forfeited	40.24	42.12	39.38
Expired	49.35		50.65
Balance outstanding at end of year	37.27	37.90	38.62
Balance exercisable at end of year	$ 40.56	$ 43.41	$ 46.89

Equity - Summary of Weighted Av

Equity - Summary of Weighted Average Fair Value of Options Granted (Detail)	12 Months Ended
	Dec. 31, 2018$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value	$ 7.4

Equity - Summary of Fair Value

Equity - Summary of Fair Value of Options Estimated on Date of Grant Based on Weighted Average Assumptions (Detail)	12 Months Ended
	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	40.00%
Risk-free interest rate	2.60%
Expected term	5 years

Equity - Schedule of Ordinary S

Equity - Schedule of Ordinary Shares Issued Upon Outstanding Options (Detail) shares in Thousands	12 Months Ended
	Dec. 31, 2020yr$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	35,234
Weighted average exercise price	$ 37.27
Weighted average remaining life Years | yr	5.07
Lower than $15.01 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	592
Weighted average exercise price	$ 11.40
Weighted average remaining life Years | yr	6.84
Range of exercise prices, upper limit	$ 15.01
$15.01 - $25.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	10,087
Weighted average exercise price	$ 18.93
Weighted average remaining life Years | yr	7.12
Range of exercise prices, lower limit	$ 15.01
Range of exercise prices, upper limit	$ 25
$25.01 - $35.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	7,221
Weighted average exercise price	$ 34.61
Weighted average remaining life Years | yr	6.16
Range of exercise prices, lower limit	$ 25.01
Range of exercise prices, upper limit	$ 35
$35.01 - $45.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	5,216
Weighted average exercise price	$ 40.66
Weighted average remaining life Years | yr	1.46
Range of exercise prices, lower limit	$ 35.01
Range of exercise prices, upper limit	$ 45
$45.01 - $55.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	7,895
Weighted average exercise price	$ 51.06
Weighted average remaining life Years | yr	4.10
Range of exercise prices, lower limit	$ 45.01
Range of exercise prices, upper limit	$ 55
$55.01 - $65.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	4,223
Weighted average exercise price	$ 59.26
Weighted average remaining life Years | yr	4.30
Range of exercise prices, lower limit	$ 55.01
Range of exercise prices, upper limit	$ 65

Equity - Schedule of Ordinary_2

Equity - Schedule of Ordinary Shares Issued Upon Vested Options (Detail) shares in Thousands	12 Months Ended
	Dec. 31, 2020yr$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	28,556
Weighted average exercise price	$ 40.56
Weighted average remaining life Years | yr	4.65
Lower than $15.01 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	394
Weighted average exercise price	$ 11.40
Weighted average remaining life Years | yr	6.84
Range of exercise prices, upper limit	$ 15.01
$15.01 - $25.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	5,431
Weighted average exercise price	$ 18.81
Weighted average remaining life Years | yr	7.09
Range of exercise prices, lower limit	$ 15.01
Range of exercise prices, upper limit	$ 25
$25.01 - $35.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	5,423
Weighted average exercise price	$ 34.61
Weighted average remaining life Years | yr	6.16
Range of exercise prices, lower limit	$ 25.01
Range of exercise prices, upper limit	$ 35
$35.01 - $45.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	5,216
Weighted average exercise price	$ 40.66
Weighted average remaining life Years | yr	1.46
Range of exercise prices, lower limit	$ 35.01
Range of exercise prices, upper limit	$ 45
$45.01 - $55.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	7,895
Weighted average exercise price	$ 51.06
Weighted average remaining life Years | yr	4.10
Range of exercise prices, lower limit	$ 45.01
Range of exercise prices, upper limit	$ 55
$55.01 - $65.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Balance at end of period (in thousands) Number of shares | shares	4,197
Weighted average exercise price	$ 59.28
Weighted average remaining life Years | yr	4.30
Range of exercise prices, lower limit	$ 55.01
Range of exercise prices, upper limit	$ 65

Equity - Schedule of Number of

Equity - Schedule of Number of RSUs Issued and Outstanding (Detail) - Restricted Stock Units [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance outstanding at beginning of year	15,977	10,403	7,468
Granted	10,848	9,303	5,900
Vested	(4,324)	(2,435)	(1,638)
Forfeited	(1,781)	(1,294)	(1,327)
Balance outstanding at end of year	20,720	15,977	10,403
Weighted-average grant date fair value per share - RSUs at beginning year	$ 16.49	$ 20.93	$ 27.95
Granted	11.42	15.36	18.80
Vested	19.49	30.24	37.30
Forfeited	18.18	18.74	32.50
Weighted-average grant date fair value per share - RSUs at end of year	$ 13.81	$ 16.49	$ 20.93

Equity - Summary of Company Exp

Equity - Summary of Company Expenses Compensation Costs Based on Grant Date Fair Value (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Stock Options Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 30	$ 46	$ 74
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	99	73	81
Omnibus Long Term Share Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	129	119	155
Tax effect on stock-based compensation expense	14	14	18
Net effect	$ 115	$ 105	$ 137

Equity - Accumulated Other Comp

Equity - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance		$ (2,312)
Ending Balance		(2,399)	$ (2,312)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance		(1,794)	(1,878)	$ (1,139)
Other comprehensive income/(loss) before reclassifications		(190)	100	(729)
Net other comprehensive income (loss) before tax		(190)	100	(729)
Corresponding income tax		65	(16)	(10)
Net other comprehensive income (loss) after tax	[1]	(125)	84	(739)
Ending Balance		(1,919)	(1,794)	(1,878)
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			1	(4)
Cumulative effect of new accounting standard	[2]			5
Other comprehensive income/(loss) before reclassifications			(1)	(1)
Amounts reclassified to the statements of income				1
Net other comprehensive income (loss) before tax			(1)
Net other comprehensive income (loss) after tax	[1]		(1)
Ending Balance				1
Derivative Financial Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance		(420)	(504)	(619)
Other comprehensive income/(loss) before reclassifications		22	54	87
Amounts reclassified to the statements of income		35	30	28
Net other comprehensive income (loss) before tax		57	84	115
Net other comprehensive income (loss) after tax	[1]	57	84	115
Ending Balance		(363)	(420)	(504)
Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance		(98)	(78)	(91)
Other comprehensive income/(loss) before reclassifications		(7)	(11)	4
Amounts reclassified to the statements of income		(12)	(10)	13
Net other comprehensive income (loss) before tax		(19)	(21)	17
Corresponding income tax		1	1	(4)
Net other comprehensive income (loss) after tax	[1]	(18)	(20)	13
Ending Balance		(117)	(98)	(78)
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance		(2,312)	(2,459)	(1,853)
Cumulative effect of new accounting standard	[2]			5
Other comprehensive income/(loss) before reclassifications		(175)	142	(639)
Amounts reclassified to the statements of income		23	20	42
Net other comprehensive income (loss) before tax		(152)	162	(597)
Corresponding income tax		66	(15)	(14)
Net other comprehensive income (loss) after tax	[1]	(86)	147	(611)
Ending Balance		$ (2,399)	$ (2,312)	$ (2,459)
[1]	Amounts do not include foreign currency translation adjustments attributable to non-controlling interests of $56 million gain in 2020, $14 million gain in 2019 and $26 million gain in 2018.
[2]	Following the adoption of ASU 2016-01, the Company recorded a $ 5 million opening balance reclassification from accumulated other comprehensive income to retained earnings.

Equity - Accumulated Other Co_2

Equity - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Standards Update 2016-01 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation attributable to non-controlling interests	$ 5
Foreign Currency Translation Adjustments Attributable to Non-controlling Interests [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation attributable to non-controlling interests		$ 56	$ 14	$ (26)

Other assets impairments, res_3

Other assets impairments, restructuring and other items - Schedule of Other Assets Impairments, Restructuring and Other Items (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restructuring and Impairment Costs [Line Items]
Impairments of long-lived tangible assets	[1]	$ 416	$ 139	$ 500
Contingent consideration (see note 2)		(81)	59	57
Restructuring		120	199	488
Other		24	26	(58)
Total		$ 479	$ 423	$ 987
[1]	Including impairments related to exit and disposal activities

Other assets impairments, res_4

Other assets impairments, restructuring and other items - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring and Impairment Costs [Line Items]
Impairments of property, plant and equipment	$ 416	$ 139	$ 500
Business combination contingent consideration arrangements change in amount of contingent consideration liability	(81)	59	57
Restructuring costs	120	$ 199	$ 488
Expected revenue from Florida manufacturing plant in 2020	$ 190
Restructuring plan cost reduction				$ 3,000

Other assets impairments, res_5

Other assets impairments, restructuring and other items - Components of costs associated with restructuring plan including costs related to exit and disposal activities (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 120	$ 199	$ 488
Employee termination [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	71	159	410
Other [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 49	$ 40	$ 78

Other assets impairments, res_6

Other assets impairments, restructuring and other items - Summary of Restructuring Accruals (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019
Restructuring Cost and Reserve [Line Items]
Beginning balance		$ (215)	$ (233)
Provision		(120)	(199)
Utilization and other	[1]	213	217
Ending balance		(122)	(215)
Employee termination costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance		(208)	(204)
Provision		(71)	(159)
Utilization and other	[1]	164	155
Ending balance		(115)	(208)
Other Exit and Disposal [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance		(7)	(29)
Provision		(49)	(40)
Utilization and other	[1]	49	62
Ending balance		$ (7)	$ (7)
[1]	Includes adjustments for foreign currency translation.

Other Income - Schedule of Othe

Other Income - Schedule of Other Income (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Income [Line Items]
Gain on divestitures, net of divestitures related costs	[1]	$ 8	$ 50	$ 67
Section 8 and similar payments	[2]		5	195
Gain (loss) on sale of assets		11	(1)	9
Other, net		20	22	20
Total other income		$ 40	$ 76	$ 291
[1]	Mainly related to the divestment of several activities in our International Markets segment.
[2]	Section 8 of the Patented Medicines (Notice of Compliance) Regulation relates to recoveries of lost revenue related to patent infringement proceedings in Canada.

Financial expenses, net - Sched

Financial expenses, net - Schedule of Financial Expenses (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Expenses [Line Items]
Interest expenses and other bank charges		$ 963	$ 881	$ 920
Income from investments	[1]	(104)	(41)	(39)
Foreign exchange (gains) losses, net		(26)	(15)	13
Other, net	[2]		(4)	65
Total finance expense, net		$ 834	$ 822	$ 959
[1]	In 2020, Income from investments comprised mainly of revaluation gain of Teva’s investment in American Well Corporation (“American Well”). See note 20.
[2]	In 2018, Other, net comprised mainly of a make-whole payment of $46 million following early redemption of senior notes during 2018.

Financial expenses, net - Sch_2

Financial expenses, net - Schedule of Financial Expenses (Parenthetical) (Detail) $ in Millions	Dec. 31, 2018USD ($)
Expenses [Line Items]
Payment for redemption of senior notes	$ 46

Earnings (Loss) per Share - Sch

Earnings (Loss) per Share - Schedule of Earnings per Share (Detail) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss) used for the computation of basic and diluted earnings (loss) per share	$ (3,990)	$ (999)	$ (2,399)
Weighted average number of shares used in the computation of basic earnings (loss) per share	1,095	1,091	1,021
Weighted average number of shares used in the computation of diluted earnings (loss) per share	1,095	1,091	1,021

Earnings (Loss) per Share - Add

Earnings (Loss) per Share - Additional Information (Detail) - $ / shares shares in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 17, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic and diluted loss per share	$ 3.64	$ 0.91	$ 2.35
Stock Option Restricted Stock Units And Performance Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average shares with anti-dilutive effect on earnings per share	104	113	51
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average shares with anti-dilutive effect on earnings per share				74

Segments - Summary of Segment P

Segments - Summary of Segment Profit (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues	$ 4,454	$ 3,978	$ 3,870	$ 4,357	$ 4,468	$ 4,093	$ 4,177	$ 4,149	$ 16,659	$ 16,887	$ 18,271
Gross profit	$ 2,048	$ 1,852	$ 1,763	$ 2,063	$ 1,958	$ 1,830	$ 1,893	$ 1,856	7,726	7,537	8,296
R&D expenses									997	1,010	1,213
S&M expenses									2,498	2,614	2,916
G&A expenses									1,173	1,192	1,298
Segment profit									(3,572)	(443)	(1,637)
North America [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues									8,447	8,542	9,297
Gross profit									4,489	4,350	4,979
R&D expenses									622	652	713
S&M expenses									1,013	1,021	1,154
G&A expenses									443	439	484
Other (income) expense									(10)	(14)	(209)
Segment profit									2,421	2,252	2,837
Europe [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues									4,757	4,795	5,186
Gross profit									2,666	2,704	2,884
R&D expenses									247	262	283
S&M expenses									830	890	1,003
G&A expenses									261	239	325
Other (income) expense									(3)	(5)
Segment profit									1,331	1,318	1,273
International Markets [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenues									2,154	2,246	2,422
Gross profit									1,096	1,167	1,254
R&D expenses									70	88	96
S&M expenses									427	481	518
G&A expenses									136	138	153
Other (income) expense									(11)	(3)	(11)
Segment profit									$ 474	$ 464	$ 498

Segments - Summary of Profit by

Segments - Summary of Profit by Segments and Reconciliation of Segments Profit to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Amounts allocated to segments:
Segments profit	$ (3,572)	$ (443)	$ (1,637)
Amounts not allocated to segments:
Amortization	1,020	1,113	1,166
Other asset impairments, restructuring and other items	479	423	987
Intangible asset impairments	1,502	1,639	1,991
Goodwill impairment	4,628		3,027
Gain on divestitures, net of divestitures related costs	(8)	(50)	(66)
Other R&D expenses (income)	37	(15)	83
Costs related to regulatory actions taken in facilities	23	45	14
Legal settlements and loss contingencies	60	1,178	(1,208)
Other unallocated amounts	219	252	366
Consolidated operating income (loss)	(3,572)	(443)	(1,637)
Financial expenses, net	834	822	959
Income (loss) before income taxes	(4,406)	(1,265)	(2,596)
North America [Member]
Amounts allocated to segments:
Segments profit	2,421	2,252	2,837
Amounts not allocated to segments:
Consolidated operating income (loss)	2,421	2,252	2,837
Europe [Member]
Amounts allocated to segments:
Segments profit	1,331	1,318	1,273
Amounts not allocated to segments:
Consolidated operating income (loss)	1,331	1,318	1,273
International Markets [Member]
Amounts allocated to segments:
Segments profit	474	464	498
Amounts not allocated to segments:
Consolidated operating income (loss)	474	464	498
Corporate Segment [Member]
Amounts allocated to segments:
Segments profit	4,225	4,034	4,608
Amounts not allocated to segments:
Consolidated operating income (loss)	4,225	4,034	4,608
Other Segments [Member]
Amounts allocated to segments:
Segments profit	163	108	115
Amounts not allocated to segments:
Consolidated operating income (loss)	163	108	115
Segments and Other Activities [Member]
Amounts allocated to segments:
Segments profit	4,388	4,142	4,723
Amounts not allocated to segments:
Consolidated operating income (loss)	$ 4,388	$ 4,142	$ 4,723

Segments - Schedule of Revenues

Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Product Information [Line Items]
Revenues	$ 4,454	$ 3,978	$ 3,870	$ 4,357	$ 4,468	$ 4,093	$ 4,177	$ 4,149	$ 16,659	$ 16,887	$ 18,271
North America [Member]
Product Information [Line Items]
Revenues									8,447	8,542	9,297
Europe [Member]
Product Information [Line Items]
Revenues									4,757	4,795	5,186
International Markets [Member]
Product Information [Line Items]
Revenues									2,154	2,246	2,422
Generic products [Member] | North America [Member]
Product Information [Line Items]
Revenues									4,010	3,963	4,056
Generic products [Member] | Europe [Member]
Product Information [Line Items]
Revenues									3,513	3,470	3,593
Generic products [Member] | International Markets [Member]
Product Information [Line Items]
Revenues									1,792	1,893	2,022
COPAXONE [Member] | North America [Member]
Product Information [Line Items]
Revenues									884	1,017	1,759
COPAXONE [Member] | Europe [Member]
Product Information [Line Items]
Revenues									400	432	535
COPAXONE [Member] | International Markets [Member]
Product Information [Line Items]
Revenues									53	63	72
BENDEKA and TREANDA [Member] | North America [Member]
Product Information [Line Items]
Revenues									415	496	642
ProAir [Member] | North America [Member]
Product Information [Line Items]
Revenues									241	274	397
QVAR [Member] | North America [Member]
Product Information [Line Items]
Revenues									179	250	182
AJOVY [Member] | North America [Member]
Product Information [Line Items]
Revenues									134	93	3
AJOVY [Member] | Europe [Member]
Product Information [Line Items]
Revenues									31	3
AUSTEDO [Member] | North America [Member]
Product Information [Line Items]
Revenues									637	412	204
Respiratory Product [Member] | Europe [Member]
Product Information [Line Items]
Revenues									353	354	402
Anda [Member] | North America [Member]
Product Information [Line Items]
Revenues									1,462	1,492	1,347
Other [Member] | North America [Member]
Product Information [Line Items]
Revenues									485	546	708
Other [Member] | Europe [Member]
Product Information [Line Items]
Revenues									459	536	656
Other [Member] | International Markets [Member]
Product Information [Line Items]
Revenues									$ 309	$ 291	$ 328

Segments - Schedule of Sales Pe

Segments - Schedule of Sales Percentage by Therapeutic Category (Detail)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
McKesson Corporation [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Third party net sales present	12.00%	13.00%	12.00%
AmerisourceBergen Corporation [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Third party net sales present	12.00%	12.00%	14.00%

Segments - Schedule of Net Sale

Segments - Schedule of Net Sales by Product Line - Schedule of Property, Plant and Equipment by Geographic Location (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 6,296	$ 6,436
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	1,611	1,670
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	790	864
Croatia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	539	517
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	933	665
Czech republic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	330	343
Hungary [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	325	330
Ireland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	267	271
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 1,501	$ 1,776

Segments - Additional Informati

Segments - Additional Information (Detail) - Segment	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Number of reportable segments	3
Israel [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	5.00%	5.00%	5.00%

Fair Value Measurement - Summar

Fair Value Measurement - Summary of Financial Items Carried at Fair Value (Detail) - USD ($) $ in Millions		Dec. 31, 2020		Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	[1]	$ (268)		$ (460)
Total		2,153		1,540
Asset Derivatives - Options and Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives		24		32
Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives				(22)
Liabilities Derivatives Options and Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives		(79)		(41)
Money Markets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		367		577
Cash, Deposits and Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		1,810		1,398
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities		284	[2]	42
Other, Mainly Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities		15		14
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		2,207		2,019
Level 1 [Member] | Money Markets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		367		577
Level 1 [Member] | Cash, Deposits and Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		1,810		1,398
Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities		25	[2]	42
Level 1 [Member] | Other, Mainly Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities		5		2
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		204		(31)
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives		24		32
Level 2 [Member] | Liabilities Derivatives - Interest Rate and Cross Currency Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives				(22)
Level 2 [Member] | Liabilities Derivatives Options and Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives		(79)		(41)
Level 2 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities	[2]	259
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	[1]	(268)		(460)
Total		(258)		(448)
Level 3 [Member] | Other, Mainly Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in securities		$ 10		$ 12
[1]	Contingent consideration represents liabilities recorded at fair value in connection with acquisitions.
[2]	During the third quarter of 2020, Teva recorded a gain of $134 million under share in profits of associated companies, net, reflecting the difference between the book value of Teva’s investment in American Well and its fair value as of the date it completed its initial public offering in September 2020. The investment was reclassified from “investment in associated companies” to “investment in marketable securities,” since Teva no longer had significant influence in American Well. This represented a transfer into Level 3 measurement within fair value hierarchy. By December 31, 2020, Teva recorded an additional gain of $80 million under financial expenses, net, reflecting the revaluation gain of this security as of December 31, 2020 and transferred it to Level 2 measurement within fair value hierarchy due to a change in discount rate. Due to management’s intention and ability to sell this security in the next twelve months, the balance as of December 31, 2020 was reclassified to short term investments.

Fair value measurement - Additi

Fair value measurement - Additional Information (Detail) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain under share in profits of associated companies	$ 134
Revaluation of Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain under financial expenses		$ 80
Measurement input, discount rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input		0.04
Maximum [Member] | Measurement input probability of success [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input		1
Maximum [Member] | Measurement input, discount rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input		0.080
Minimum [Member] | Measurement input probability of success [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input		0.80
Minimum [Member] | Measurement input, discount rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input		0.075
Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration, liability, measurement input		0.077

Fair Value Measurement - Summ_2

Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value at the beginning of the period	$ (448)	$ (497)
Transfer into Level 3- equity securities	179
Revaluation of equity securities	80
Revaluation of debt securities	(2)	2
Reclassification to Level 2- equity securities	(259)
Fair value at the end of the period	(258)	(448)
Actavis Generics [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Actavis Generics transaction	156	92
Eagle Transaction [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjustments to provisions for contingent consideration	(75)	(151)
Settlement of contingent consideration	$ 111	$ 106

Fair Value Measurement - Summ_3

Fair Value Measurement - Summary of Financial Instrument Measured on a Basis Other Than Fair Value (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 25,891	$ 25,004
Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	22,684	22,686
Senior Notes and Convertible Senior Debentures Included Under Short-Term Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 3,207	$ 2,318

Long-term Employee-related Ob_3

Long-term Employee-related Obligations - Schedule of Long Term Employee Related Obligation (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Accrued severance obligations	$ 82	$ 76
Defined benefit plans	192	165
Total	$ 275	$ 241

Long-term Employee-related Ob_4

Long-term Employee-related Obligations - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Long-term investments earmarked for severance pay liabilities in Israel	$ 86	$ 82
Expected contributions to pension funds	116
2021	13
2022	12
2023	12
2024	11
2025	12
2026 to 2030	$ 65

Selected Quarterly Financial _3

Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Selected Quarterly Financial Information [Line Items]
Net revenues	$ 4,454	$ 3,978	$ 3,870	$ 4,357	$ 4,468	$ 4,093	$ 4,177	$ 4,149	$ 16,659	$ 16,887	$ 18,271
Gross profit	2,048	1,852	1,763	2,063	1,958	1,830	1,893	1,856	7,726	7,537	8,296
Net income (loss)	162	(4,340)	53	25	75	(307)	(671)	(97)	(4,099)	(1,000)	(2,472)
Net income (loss) attributable to Teva	150	(4,349)	140	69	110	(314)	(689)	(105)	(3,990)	(999)	(2,150)
Net income (loss) attributable to ordinary shareholders	$ 150	$ (4,349)	$ 140	$ 69	$ 110	$ (314)	$ (689)	$ (105)	$ (3,990)	$ (999)	$ (2,399)
Earnings per share attributable to ordinary shareholders:
Basic	$ 0.14	$ (3.97)	$ 0.13	$ 0.06	$ 0.10	$ (0.29)	$ (0.63)	$ (0.10)	$ (3.64)	$ (0.91)	$ (2.35)
Diluted	$ 0.14	$ (3.97)	$ 0.13	$ 0.06	$ 0.10	$ (0.29)	$ (0.63)	$ (0.10)	$ (3.64)	$ (0.91)	$ (2.35)

Schedule II Valuation and Quali

Schedule II Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 6,246	$ 6,886
Deductions	(15,707)	(17,605)
Balance at end of period	4,904	6,246	$ 6,886
Allowance For Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	209	232	232
Charged to costs and expenses	(11)	(16)	13
Charged to other accounts	2		(9)
Deductions		(7)	(4)
Balance at end of period	200	209	232
Valuation Allowance in Tax Carryforward Losses And Deductions [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	1,974	1,633	1,504
Charged to costs and expenses	670	555	407
Charged to other accounts			5
Deductions	(97)	(214)	(283)
Balance at end of period	$ 2,547	$ 1,974	$ 1,633