Goodwill

6 Months Ended

Jun. 30, 2026

NOTE 6 – Goodwill:

Changes in the carrying amount of goodwill for the period ended June 30, 2026, were as follows:


	United States			Europe			International Markets		Other Activities			Total
	(U.S. $ in millions)
Balance as of December 31, 2025 (1)	$	5,732		$	8,812		$	1,166	$	292		$	16,000
Goodwill allocation related to the shift of Anda to Other Activities		(184	)							184

Balance as of January 1, 2026	$	5,548		$	8,812		$	1,166	$	476		$	16,000

Other changes during the period:
Translation differences and other		—			(184	)		36		(13	)		(161	)

Balance as of June 30, 2026 (1)	$	5,548		$	8,628		$	1,202	$	463		$	15,839

(1)	Cumulative goodwill impairment as of June 30, 2026 and December 31, 2025, was approximately $29.6 billion in both periods.

Teva operates its business through three reporting segments: United States, Europe and International Markets. Each of these business segments is a reporting unit.

Additional reporting units include Teva’s distribution business in the United States through Anda; Teva’s sale of APIs to third parties (“Teva API”); and an

out-licensing

platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis. Anda, Teva’s API and Medis reporting units are included under “Other Activities” in the table above. See note 15 for additional segment information.

As further discussed in note 15, commencing January 1, 2026, Anda is reported as part of Teva’s Other Activities and not as part of Teva’s United States segment. As a result, Teva aligned its segment reporting and its reporting units in accordance with this change, and reallocated its goodwill to the adjusted reporting units using a relative fair value allocation. In conjunction with the goodwill reallocation, in the first quarter of 2026, Teva performed a goodwill impairment test for the balances in its adjusted United States and Anda’s reporting units and concluded that the fair value of each reporting unit was in excess of its carrying value.

ASC 350, intangibles–Goodwill and Other, outlines the methodology used to determine if goodwill has been impa

ed and to measure any loss resulting from impairment. Goodwill is tested for impairment on an annual basis in the second quarter of the fiscal year, or more frequently, if indicators of impairment exist. When testing goodwill for impairment, the Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is below its carrying amount (commonly known as “step zero”). If the qualitative assessment indicates it is more likely than not that the fair value of any of the reporting units is below its carrying amount, then a quantitative impairment test is required (commonly known as “step one”).

When a quantitative impairment test is performed, Teva determines the fair value of its reporting units using the income approach. The income approach is a forward-looking approach for estimating fair value. Within the income approach, the method used is the discounted cash flow method. Teva begins with a forecast of all the expected net cash flows associated with the reporting unit, which includes the application of a terminal value, and then applies a discount rate to arrive at a net present value amount. Cash flow projections are based on Teva’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the weighted average cost of capital (“WACC”), adjusted for the relevant risk associated with country-specific and business-specific characteristics.

During the second quarter of 2026, the Company performed its annual qualitative assessment impairment test and determined it was not more likely than not that the fair value of any of its reporting units was below its carrying amount as of June 30, 2026, therefore, no quantitative assessment was performed.

- Definition

The entire disclosure for goodwill.

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