NOTE 8 – Leases:

The components of operating lease cost for the years ended December 31, 2025, 2024 and 2023 were as follows:


	Year ended December 31,		Year ended December 31,		Year ended December 31,
	2025		2024		2023
	(U.S. $ in millions)		(U.S. $ in millions)		(U.S. $ in millions)
Operating lease cost:
Fixed payments and variable payments that depend on an index or rate		116		123		132
Variable lease payments not included in the lease liability		16		16		5
Short-term lease cost		4		3		3

	$	136	$	142	$	139

Supplemental cash flow information related to operating leases was as follows:


	Year ended December 31,		Year ended December 31,		Year ended December 31,
	2025		2024		2023
	(U.S. $ in millions)		(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	$	136	$	143	$	141
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases	$	65	$	137	$	121

Supplemental balance sheet information related to operating leases was as follows:


	December 31,		December 31,
	2025		2024
	(U.S. $ in millions)		(U.S. $ in millions)
Operating leases:
Operating lease ROU assets	$	345	$	367

Other current liabilities		94		87
Operating lease liabilities		288		296

Total operating lease liabilities	$	382	$	383


	December 31,			December 31,
	2025			2024
Weighted average remaining lease term
Operating leases		5.7 years			6.1 years
Weighted average discount rate
Operating leases		6.9	%		6.5	%

Maturities of operating lease liabilities were as follows:


	December 31,
	2025
	(U.S. $ in millions)
2026		116
2027		97
2028		71
2029		50
2030 and thereafter		105

Total operating lease payments	$	439

Less: imputed interest		57

Present value of lease liabilities	$	382

As of December 31, 2025, Teva’s

total finance lease assets

and

finance lease liabilities

were $43 million and $37 million, respectively. As of December 31, 2024,

total finance lease assets

and

finance lease liabilities

were $23 million and $18 million, respectively. The difference between those amounts is mainly due to amortization and short term liabilities.

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

TEVA PHARMACEUTICAL INDUSTRIES LTD Leases Disclosure

About Leases Disclosures

Other Available Disclosures