XML 25 R15.htm IDEA: XBRL DOCUMENT
v3.21.2

Debt obligations | 6 Months Ended
--- | ---
Jun. 30, 2021
Debt obligations | NOTE 7 – Debt obligations: a. Short-term debt:
|  | Weighted average interest rate as of June 30, 2021 |  |  | Maturity |  |  | June 30, 2021 |  |  | December 31, 2020 |
|  |  |  |  |  |  |  | (U.S. $ in millions) |
Convertible senior debentures |  |  | 0.25 | % |  |  | 2026 |  |  | $ | 23 |  |  | $ | 514 |
Current maturities of long-term liabilities (1) |  |  |  | 3,507 |  |  |  | 2,674 |
Total short-term debt |  |  | $ | 3,530 |  |  | $ | 3,188 |
(1) | In July 2021, Teva repaid $ 1,475 million of its 2.2 % senior notes at maturity.
Convertible senior debentures The principal amount of Teva’s 0.25% convertible senior debentures due 2026, was $23 million as of June 30, 2021 and $514 million as of December 31, 2020. These convertible senior debentures include a “net share settlement” feature according to which the principal amount will be paid in cash and in case of conversion, only the residual conversion value above the principal amount will be paid in Teva shares. Due to the “net share settlement” feature, exercisable at any time, these convertible senior debentures are classified in the Balance Sheet under short-term debt. Holders of the convertible senior debentures exercised their optional repurchase right and redeemed $491 million of the convertible senior debentures on February 1, 2021, which was the date to exercise this right. b. Long-term debt:
|  | Weighted average interest rate as of June 30, 2021 |  |  | Maturity |  |  | June 30, 2021 |  |  | December 31, 2020 |
|  |  |  |  |  |  |  | (U.S. $ in millions) |
Senior notes EUR 1,500 million |  |  | 1.13 | % |  |  | 2024 |  |  | $ | 1,780 |  |  | $ | 1,839 |
Senior notes EUR 1,300 million |  |  | 1.25 | % |  |  | 2023 |  |  |  | 1,544 |  |  |  | 1,595 |
Senior notes EUR 1,000 million |  |  | 6.00 | % |  |  | 2025 |  |  |  | 1,190 |  |  |  | 1,230 |
Senior notes EUR 900 million |  |  | 4.50 | % |  |  | 2025 |  |  |  | 1,071 |  |  |  | 1,107 |
Senior notes EUR 750 million |  |  | 1.63 | % |  |  | 2028 |  |  |  | 885 |  |  |  | 916 |
Senior notes EUR 700 million |  |  | 3.25 | % |  |  | 2022 |  |  |  | 832 |  |  |  | 861 |
Senior notes EUR 700 million |  |  | 1.88 | % |  |  | 2027 |  |  |  | 832 |  |  |  | 860 |
Senior notes USD 3,500 million |  |  | 3.15 | % |  |  | 2026 |  |  |  | 3,495 |  |  |  | 3,495 |
Senior notes USD 1,475 million (1) |  |  | 2.20 | % |  |  | 2021 |  |  |  | 1,474 |  |  |  | 1,472 |
Senior notes USD 3,000 million |  |  | 2.80 | % |  |  | 2023 |  |  |  | 2,997 |  |  |  | 2,996 |
Senior notes USD 2,000 million |  |  | 4.10 | % |  |  | 2046 |  |  |  | 1,986 |  |  |  | 1,986 |
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 1,000 million |  |  | 7.13 | % |  |  | 2025 |  |  |  | 1,000 |  |  |  | 1,000 |
Senior notes USD 844 million |  |  | 2.95 | % |  |  | 2022 |  |  |  | 851 |  |  |  | 853 |
Senior notes USD 789 million |  |  | 6.15 | % |  |  | 2036 |  |  |  | 783 |  |  |  | 783 |
Senior notes USD 613 million |  |  | 3.65 | % |  |  | 2021 |  |  |  | 614 |  |  |  | 616 |
Senior notes USD 588 million |  |  | 3.65 | % |  |  | 2021 |  |  |  | 588 |  |  |  | 586 |
Senior notes CHF 350 million |  |  | 0.50 | % |  |  | 2022 |  |  |  | 380 |  |  |  | 397 |
Senior notes CHF 350 million |  |  | 1.00 | % |  |  | 2025 |  |  |  | 381 |  |  |  | 398 |
Total senior notes |  |  |  | 25,183 |  |  |  | 25,490 |
Other long-term debt |  |  | 1.10 | % |  |  | 2026 |  |  |  | 1 |  |  |  | 1 |
Less current maturities |  |  |  | (3,507 | ) |  |  | (2,674 | )
Less debt issuance costs |  |  |  | (75 | ) |  |  | (86 | )
Total senior notes and loans |  |  | $ | 21,602 |  |  | $ | 22,731 |
( 1) | In July 2021, Teva repaid $ 1,475 million of its 2.2 % senior notes at maturity.
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, 2021 is effectively denominated in the following currencies: 63% in U.S. dollar, 34% in euro and 3% in Swiss franc. 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 unsecured syndicated revolving credit facility entered into in April 2019 (“RCF”). The RCF agreement provides for two separate tranches, a $1.15 billion tranche A and a $1.15 billion tranche B. Tranche A had a maturity date of April 8, 2022, of which an amount of $1.065 billion was extended twice, initially to April 8, 2023 and then to April 8, 2024. Tranche B has a maturity date of April 8, 2024. Loans and letters of credit will be available from time to time under each tranche for Teva’s general corporate purposes. 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 was 5.50x through June 30, 2021, gradually declines to 5.00x in the third and fourth quarters of 2021, 4.50x in the first and second quarters of 2022, and continues to gradually decline over the remaining term of the RCF to 3.50x in the first quarter of 2023. The RCF can be used for general corporate purposes, including repaying existing debt. As of June 30, 2021, no amounts were outstanding under the RCF. During July 2021, $500 million was drawn down 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