Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2021

Summary of Financial Items Carried at Fair Value

Financial items carried at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 are classified in the tables below in one of the three categories of fair value levels:

	March 31, 2021
	Level 1		Level 2			Level 3			Total
	(U.S. $ in millions)
Cash and cash equivalents:
Money markets	$	120	$	—		$	—		$	120
Cash, deposits and other		1,623		—			—			1,623
Investment in securities:
Equity securities*		182		—			—			182
Other, mainly debt securities		5		—			1			6
Derivatives:
Asset derivatives—options and forward contracts		—		63			—			63
Liability derivatives—options and forward contracts		—		(23	)		—			(23	)
Contingent consideration**		—		—			(246	)		(246	)
Total	$	1,930	$	40		$	(245	)	$	1,725

	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
Liability derivatives—options and forward contracts		—		(79	)		—			(79	)
Contingent consideration**		—		—			(268	)		(268	)
Total	$	2,207	$	204		$	(258	)	$	2,153

* As of March 31, 2021, Teva’s shares in American Well Corporation (“American Well”) moved from a Level 2 measurement to Level 1 measurement within the fair value hierarchy, since they are no longer subject to a sale restriction. 

** 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:

	Three months ended March 31, 2021			Three months ended March 31, 2020
	(U.S. $ in millions)
Fair value at the beginning of the period	$	(258	)		(448	)
Redemption of debt securities		(9	)
Adjustments to provisions for contingent consideration:
Actavis Generics transaction		(3	)		(5	)
Eagle transaction		—			(1	)
Settlement of contingent consideration:
Eagle transaction		25			31
Fair value at the end of the period	$	(245	)	$	(423	)

Summary of Financial Instrument Measured on a Basis Other Than Fair Value

Financial instruments not measured at fair value

Financial instruments measured on a basis other than fair value mostly consist of senior notes and convertible senior debentures (see note 7) and are presented in the table below in terms of fair value (level 1 inputs):

	Estimated fair value*
	March 31,		December 31,
	2021		2020
	(U.S. $ in millions)
Senior notes included under senior notes and loans	$	22,316	$	22,684
Senior notes and convertible senior debentures included under short-term debt		2,711		3,207
Total	$	25,027	$	25,891

* The fair value was estimated based on quoted market prices.