XML 48 R38.htm IDEA: XBRL DOCUMENT v3.19.1
Derivative instruments and hedging activities (Tables)
 3 Months Ended
Mar. 31, 2019
Summary of Notional Amounts for Hedged Items, Designated as Hedge Accounting
The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting:
 
 
 
March 31,
 
 
December 31,
 
 
 
2019
 
 
2018
 
 
 
(U.S. $ in millions)
 
Cross-currency swap—cash flow hedge
 
$
588
 
 
$
588
 
Cross-currency swap—net investment hedge
 
 
1,000
 
 
 
1,000
 
Interest rate swap—fair value hedge
 
 
500
 
 
 
500
 
 
 
 
2,088
 
 
 
2,088
 
Summary of Classification and Fair Values of Derivative Instruments
The following table summarizes the classification and fair values of derivative instruments:
 
 
 
Fair value
 
 
 
Designated as hedging

instruments
 
 
Not designated as hedging

instruments
 
 
 
March 31,

2019
 
 
December 31,

2018
 
 
March 31,

2019
 
 
December 31,

2018
 
Reported under
 
(U.S. $ in millions)
 
Asset derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Option and forward contracts
 
$
—
 
 
$
—
 
 
$
32
 
 
$
18
 
Other non-current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross-currency swaps—cash flow hedge
 
 
76
 
 
 
58
 
 
 
 —
 
 
 
—
 
Liability derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Option and forward contracts
 
 
—
 
 
 
—
 
 
 
(11
)
 
 
(26
)
Cross-currency swaps—net investment hedge
 
 
 (22
)
 
 
 —
 
 
 
 —
 
 
 
 —
 
Other taxes and long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross-currency swaps—net investment hedge
 
 
—
 
 
 
(41
)
 
 
—
 
 
 
—
 
Senior notes and loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps—fair value hedge
 
 
(6
)
 
 
(9
)
 
 
—
 
 
 
—
 
 
Information Regarding The Location And Amount Of Pretax (Gains) Losses Of Derivatives Designated In Fair Value Or Cash Flow Hedging Relationships
The table below provides information regarding the location and amount of pretax (gains) losses from derivatives designated in fair value or cash flow hedging relationships:
 
 
 
Reported under
 
 
 
Financial expenses, net
 
 
Other Comprehensive income
 
 
 
Period ended,
 
 
 
March 31,

2019
 
 
March 31,

2018**
 
 
March 31,

2019
 
 
March 31,

2018**
 
 
 
(U.S. $ in millions)
 
Line items in which effects of hedges are recorded
 
$
 218
 
 
$
 271
 
 
$
 100
 
 
$
 113
 
Cross-currency swaps
—
cash flow hedge (1)
 
 
(1
)
 
 
*
 
 
 
(20
)
 
 
17
 
Cross-currency swaps
—
net investment hedge (2)
 
 
(7
)
 
 
(7
)
 
 
(20
)
 
$
30
 
Interest rate swaps
—
fair value hedge (3)
 
$
1
 
 
$
*
 
 
$
—
 
 
$
—
 
 
 
 
 
 
 
 
  
*
Represents an amount less than $0.5 million.
**
Comparative figures are based on prior hedge accounting standard.
The table below provides information regarding the location and amount of pretax (gains) losses from derivatives not designated as hedging instruments:
 
 
 
Reported under
 
 
 
Financial expenses, net
 
 
Net Revenues
 
 
 
Period ended,
 
 
 
March 31,

2019
 
 
March 31,

2018
 
 
March 31,

2019
 
 
March 31,

2018
 
 
 
(U.S. $ in millions)
 
Line items in which effects of hedges are recorded
 
 
 218
 
 
 
 271
 
 
 
 4,295
 
 
 
 5,065
 
Option and forward contracts (4)
 
$
(42
)
 
$
19
 
 
$
—
 
 
$
—
 
 
   
(1)
With respect to cross-currency swap agreements, Teva recognized gains which mainly reflect the differences between the fixed interest rate and the floating interest rate.
(2)
In each of the first and second quarters of 2017, Teva entered into a cross currency swap agreement with a notional amount of $500 million maturing in 2020. These cross currency swaps were designated as a net investment hedge of Teva’s foreign subsidiaries euro denominated net assets, in order to reduce the risk of adverse exchange rate fluctuations. With respect to these cross currency swap agreements, Teva recognized gains which mainly reflect the differences between the float-for-float interest rates paid and received. No amounts were reclassified from AOCI into income related to the sale of a subsidiary.
(3)
In the fourth quarter of 2016, Teva entered into an interest rate swap agreement designated as fair value hedge relating to its 2.8% senior notes due 2023 with respect to $500 million notional amount of outstanding debt. With respect to this interest rate swap agreement, Teva recognized a loss which mainly reflects the differences between the fixed interest rate and the floating interest rate.
(4)
Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses—net.
 
Derivatives Not Designated as Hedging Instruments [Table Text Block]
The table below provides information regarding the location and amount of pretax (gains) losses from derivatives not designated as hedging instruments:
 
 
 
Reported under
 
 
 
Financial expenses, net
 
 
Net Revenues
 
 
 
Period ended,
 
 
 
March 31,

2019
 
 
March 31,

2018
 
 
March 31,

2019
 
 
March 31,

2018
 
 
 
(U.S. $ in millions)
 
Line items in which effects of hedges are recorded
 
 
 218
 
 
 
 271
 
 
 
 4,295
 
 
 
 5,065
 
Option and forward contracts (4)
 
$
(42
)
 
$
19
 
 
$
—
 
 
$
—