Other assets impairments, restructuring and other items

6 Months Ended

Jun. 30, 2026

Other assets impairments, restructuring and other items

OTE 12 – Other assets impairments, restructuring and other items:


	Three months ended				Six months ended
	June 30,				June 30,
	2026		2025		2026			2025
	(U.S. $ in millions)				(U.S. $ in millions)
Impairments of long- lived tangible assets *	$	91	$	58	$	92		$	14
Contingent consideration		17		19		22			30
Restructuring		38		154		63			168
Other		§		1		(4	)		(1	)

Total	$	147	$	232	$	173		$	210

*	Including impairments related to exit and disposal activities.

§	Represents an amount less than $0.5 million.

Impairments

In the three months ended June 30, 2026, Teva recorded an expense of $91 million under impairments of tangible assets, compared to an expense of $58 million in the three months ended June 30, 2025. The expense for the three months ended June 30, 2026, was mainly related to

impairment charge in connection with a manufacturing facility in Europe. The expense for the three months ended June 30, 2025, was mainly related to the held for sale measurement of the API business (including its R&D, manufacturing and commercial activities), which includes a favorable impact related to the expected gain from reclassification of currency translation adjustments.

Impairments of tangible assets for the six months ended June 30, 2026 and 2025 were $92 million and $14 million, respectively. The impairment for the six months ended June 30, 2026

was mainly related to

impairment charge in connection with a manufacturing facility in Europe. The expense for the six months ended June 30, 2025, was mainly related to the held for sale measurement of the API business (including its R&D, manufacturing and commercial activities), which includes a favorable impact related to the expected gain from reclassification of currency translation adjustments.

In addition, as part of the Company’s efforts to optimize its portfolio and global manufacturing footprint to achieve additional operational efficiencies, the Company, from time to time, evaluates strategic alternatives for certain individual assets or asset groups. These strategic alternatives may include partnerships and collaborations, joint ventures, redeployment of assets or divestitures. Such actions may involve substantial impairment charges in the future depending on the ultimate course of action for these long-lived assets, which are recorded in the period in which there is a triggering event or commitment to a probable transaction.

Teva may record additional impairments in the future, to the extent it changes its plans on any given asset and/or the assumptions underlying such plans, as a result of its network consolidation activities and its “Pivot to Growth Strategy”.

Contingent consideration

In the three months ended June 30, 2026, Teva recorded an expense of $17 million for contingent consideration, compared to an expense of $19 million in the three months ended June 30, 2025.

In the six months ended June 30, 2026, Teva recorded an expense of $22 million for contingent consideration, compared to an expense of $30 million in the six months ended June 30, 2025.

Restructuring

In the three months ended June 30, 2026, Teva recorded $38 million of

restructuring expenses

, compared to $154 million in the three months ended June 30, 2025. Expenses in the three months ended June 30, 2026 and 2025 were primarily related to optimization activities in connection with Teva’s Transformation programs related to Teva’s global organization and operations, mainly through headcount reduction.

In the six months ended June 30, 2026, Teva recorded $63 million of

restructuring expenses

, compared to $168 million in the six months ended June 30, 2025. Expenses for the six months ended June 30, 2026 and 2025 were primarily related to optimization activities in connection with Teva’s

ransformation programs related to Teva’s global organization and operations, mainly through headcount reduction.

Under Teva’s Transformation programs announced on May 7, 2025, Teva expects to achieve cost savings through a variety of initiatives including examining practices and efficiencies in methods of working, reduction in headcount and optimizing external spend in the following years. These Transformation programs are expected to result in the reduction of approximately 8% of Teva’s total work force as of December 31, 2024, by the end of 2027.

The following tables provide the components of the Company’s restructuring costs:


	Three months ended June 30,
	2026		2025
	(U.S. $ in millions)
Restructuring
Employee termination	$	37	$	151
Other		1		3

Total	$	38	$	154


	Six months ended June 30,
	2026		2025
	(U.S. $ in millions)
Restructuring
Employee termination	$	59	$	163
Other		4		5

Total	$	63	$	168

The following table provides the components of and changes in the Company’s restructuring accruals:


	Employee termination costs			Other			Total
	(U.S. $ in millions)
Balance as of January 1, 2026	$	(124	)	$	(14	)	$	(138	)
Provision		(59	)		(4	)		(63	)
Utilization and other*		86			4			90

Balance as of June 30, 2026	$	(97	)	$	(14	)	$	(111	)



	Employee termination costs			Other			Total
	(U.S. $ in millions)
Balance as of January 1, 2025	$	(55	)	$	(13	)	$	(68	)
Provision		(163	)		(5	)		(168	)
Utilization and other*		50			4			54

Balance as of June 30, 2025	$	(168	)	$	(14	)	$	(182	)

*	Includes adjustments for foreign currency translation.