a. Short-term debt:


	Weighted average interest rate as of June 30, 2019			Maturity		June 30, 2019		December 31, 2018
						(U.S. $ in millions)
Bank and financial institutions		4.25	%		—	$	1	$	2
Convertible debentures		0.25	%		2026		514		514
Current maturities of long-term liabilities							2,256		1,700

Total short-term debt						$	2,771	$	2,216

Long-term debt:


	Weighted average interest rate as of June 30, 2019		Maturity		June 30, 2019			December 31, 2018
					(U.S. $ in millions)
Senior notes EUR 1,660 million		0.38%		2020	$	1,886		$	1,897
Senior notes EUR 1,500 million		1.13%		2024		1,697			1,707
Senior notes EUR 1,300 million		1.25%		2023		1,472			1,480
Senior notes EUR 900 million		4.50%		2025		1,023			1,029
Senior notes EUR 750 million		1.63%		2028		846			850
Senior notes EUR 700 million		3.25%		2022		796			801
Senior notes EUR 700 million		1.88%		2027		794			798
Senior notes USD 3,500 million		3.15%		2026		3,493			3,493
Senior notes USD 3,000 million		2.20%		2021		2,998			2,997
Senior notes USD 3,000 million		2.80%		2023		2,994			2,993
Senior notes USD 1,556 million (1)		1.70%		2019		1,556			1,700
Senior notes USD 2,000 million		4.10%		2046		1,985			1,985
Senior notes USD 1,250 million		6.00%		2024		1,250			1,250
Senior notes USD 1,250 million		6.75%		2028		1,250			1,250
Senior notes USD 844 million		2.95%		2022		858			860
Senior notes USD 789 million		6.15%		2036		782			782
Senior notes USD 700 million		2.25%		2020		700			700
Senior notes USD 613 million		3.65%		2021		619			621
Senior notes USD 588 million		3.65%		2021		587			587
Senior notes CHF 350 million		0.50%		2022		359			356
Senior notes CHF 350 million		1.00%		2025		359			356
Fair value hedge accounting adjustments						9			(9	)

Total senior notes						28,313			28,483
Other long-term debt		1.15%		2026		1			12
Less current maturities						(2,256	)		(1,700	)
Derivative instruments						(9	)		9
Less debt issuance costs						(94	)		(104	)

Total senior notes and loans					$	25,955		$	26,700

(1)	During the first six months of 2019, Teva repurchased and canceled approximately $144 million principal amount of its $1,700 million 1.7% senior notes due in July 2019. In July 2019, Teva repaid at maturity $1,556 million of its 1.7% senior notes.

Long-term debt was issued by several indirect wholly-owned subsidiaries of the Company and is fully and unconditionally guaranteed by the Company as to payment of all principal, interest, discount and additional amounts, if any.

Long-term debt as of June 30, 2019 is effectively denominated (taking into consideration cross currency swap agreements) in the following currencies: U.S. dollar 62%, euro 35% and Swiss franc 3%.

Teva’s principal sources of short-term liquidity are its cash on hand, existing cash investments, liquid securities and available credit facilities, primarily its $2.3 billion revolving credit facility (“RCF”).

In April 2019, the Company entered into a $2.3

billion unsecured syndicated RCF, which replaced the previous

billion revolving credit facility. The RCF contains certain covenants, including certain limitations on incurring liens and indebtedness and maintenance of certain financial ratios, including the requirement to maintain compliance with a net debt to EBITDA ratio, which becomes more restrictive over time. The net debt to EBITDA ratio limit is 6.25x through December 31, 2019, gradually declines to 5.75x in the third and fourth quarters of 2020, and continues to gradually decline over the remaining term of the RCF.

The RCF can be used for general corporate purposes, including repaying existing debt. As of June 30, 2019, no amounts were outstanding under the RCF. As of the date of this report, $500 million was outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date that these financial statements are issued.

Under specified circumstances, including non-compliance with any of the covenants described above and the unavailability of any waiver, amendment or other modification thereto, the Company will not be able to borrow under the RCF. Additionally, violations of the covenants, under the above-mentioned circumstances, would result in an event of default in all borrowings under the RCF and, when greater than a specified threshold amount as set forth in each series of senior notes is outstanding, could lead to an event of default under the Company’s senior notes due to cross acceleration provisions.

Teva expects that it will continue to have sufficient cash resources to support its debt service payments and all other financial obligations within one year from the date that these financial statements are issued.