XML 38 R19.htm IDEA: XBRL DOCUMENT
v3.19.3

Debt obligations | 9 Months Ended
--- | ---
Sep. 30, 2019
Debt obligations | NOTE 11 – Debt obligations: a. Short-term debt:
|  | Weighted average interest rate as of September 30, 2019 |  |  | Maturity |  |  | September 30, 2019 |  |  | December 31, 2018 |
|  |  |  |  |  |  |  | (U.S. $ in millions) |
Bank and financial institutions |  |  | — |  |  |  | — |  |  | $ | — |  |  | $ | 2 |
Revolving Credit Facility |  |  | LIBOR+1.6 | % |  |  | — |  |  |  | 100 |  |  |  | — |
Convertible debentures |  |  | 0.25 | % |  |  | 2026 |  |  |  | 514 |  |  |  | 514 |
Current maturities of long-term liabilities |  |  | 2,516 |  |  |  | 1,700 |
Total short-term debt |  | $ | 3,130 |  |  | $ | 2,216 |
Long-term debt:
|  | Weighted average interest rate as of September 30, 2019 |  |  | Maturity |  |  | September 30, 2019 |  |  | December 31, 2018 |
|  |  |  |  |  |  |  | (U.S. $ in millions) |
Senior notes EUR 1,660 million |  |  | 0.38% |  |  |  | 2020 |  |  | $ | 1,816 |  |  | $ | 1,897 |
Senior notes EUR 1,500 million |  |  | 1.13 % |  |  |  | 2024 |  |  |  | 1,633 |  |  |  | 1,707 |
Senior notes EUR 1,300 million |  |  | 1.25% |  |  |  | 2023 |  |  |  | 1,416 |  |  |  | 1,480 |
Senior notes EUR 900 million |  |  | 4.50% |  |  |  | 2025 |  |  |  | 985 |  |  |  | 1,029 |
Senior notes EUR 750 million |  |  | 1.63% |  |  |  | 2028 |  |  |  | 814 |  |  |  | 850 |
Senior notes EUR 700 million |  |  | 3.25% |  |  |  | 2022 |  |  |  | 766 |  |  |  | 801 |
Senior notes EUR 700 million |  |  | 1.88% |  |  |  | 2027 |  |  |  | 764 |  |  |  | 798 |
Senior notes USD 3,500 million |  |  | 3.15% |  |  |  | 2026 |  |  |  | 3,494 |  |  |  | 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 |  |  |  | — |  |  |  | 1,700 |
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 |  |  |  | 857 |  |  |  | 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 |  |  |  | 354 |  |  |  | 356 |
Senior notes CHF 350 million |  |  | 1.00% |  |  |  | 2025 |  |  |  | 354 |  |  |  | 356 |
Fair value hedge accounting adjustments |  |  |  |  |  |  |  |  |  |  | — |  |  |  | (9 | )
Total senior notes |  |  | 26,417 |  |  |  | 28,483 |
Other long-term debt |  |  | 0.96% |  |  |  | 2026 |  |  |  | 1 |  |  |  | 12 |
Less current maturities |  |  | (2,516 | ) |  |  | (1,700 | )
Derivative instruments |  |  | — |  |  |  | 9 |
Less debt issuance costs |  |  | (89 | ) |  |  | (104 | )
Total senior notes and loans |  | $ | 23,812 |  |  | $ | 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 September 30, 2019 is effectively denominated (taking into consideration cross currency swap agreements) in the following currencies: U.S. dollar 68%, euro 29% 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 $3 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 September 30, 2019, $100 million was outstanding under the RCF. As of the date of this quarterly​​​​​​​ report on Form 10-Q , no amounts a re 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 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.

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration