In the three months ended September 30, 2026, Teva recorded an expense of $204 million under impairments of tangible assets, compared to an expense of $15 million in the three months ended September 30, 2025. The expense for the three months ended September 30, 2026, was mainly related to impairment charges in connection with several manufacturing facilities in Europe and to the held for sale measurement of the API business (including its R&D, manufacturing and commercial activities), which includes an impact related to the expected gain from reclassification of currency translation adjustments.

Impairments of tangible assets for the nine months ended September 30, 2026 and 2025 were $296 million and $28 million, respectively. The impairment for the nine months ended September 30, 2026, was mainly related to impairment charges in connection with several manufacturing facilities in Europe and 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.

In the three months ended September 30, 2026, Teva recorded an expense of $2 million for contingent consideration, compared to an expense of $16 million in the three months ended September 30, 2025.

In the nine months ended September 30, 2026, Teva recorded an expense of $25 million for contingent consideration, compared to an expense of $46 million in the nine months ended September 30, 2025.

In the three months ended September 30, 2026, Teva recorded $58 million of restructuring expenses, compared to $29 million in the three months ended September 30, 2025. Expenses in the three months ended September 30, 2026 and 2025 were primarily related to optimization activities in connection with Teva’s Transformation Programs, as described below, related to Teva’s global organization and operations, mainly through headcount reductions.

In the nine months ended September 30, 2026, Teva recorded $121 million of restructuring expenses, compared to $196 million in the nine months ended September 30, 2025. Expenses for the nine months ended September 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.

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 ("Transformation Programs"). These Transformation Programs are expected to result in the reduction of approximately 8% of Teva’s total workforce as of December 31, 2024, by the end of 2027. In addition, as part of Teva's ongoing efficiency and modernization initiatives, Teva continues to evolve its operating model, leveraging technology and process simplification, including through external capabilities.

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	(116)		(5)		(121)
Utilization and other*	139		6		145
Balance as of September 30, 2026	$	(101)	$	(13)	$	(114)


	Employee termination costs		Other		Total
	(U.S. $ in millions)
Balance as of January 1, 2025	$	(55)	$	(13)	$	(68)
Provision	(191)		(5)		(196)
Utilization and other*	92		4		96
Balance as of September 30, 2025	$	(154)	$	(14)	$	(168)