XML 25 R16.htm IDEA: XBRL DOCUMENT
v3.23.3

Debt obligations | 9 Months Ended
--- | ---
Sep. 30, 2023
Debt obligations | NOTE 7 – Debt obligations:
a. | Short-term debt:
. |  | Interest rate as of September 30, 2023 |  |  |  |  |  | September 30, |  |  | December 31, |
|  | Maturity |  |  | 2023 |  |  | 2022 |
|  |  |  |  |  |  |  | (U.S. $ in millions) |
Convertible senior debentures |  |  | 0.25 | % |  |  | 2026 |  |  |  | 23 |  |  |  | 23 |
Revolving Credit Facility |  |  | 6.95 | % |  |  |  |  |  |  | 500 |  |  |  | — |
Current maturities of long-term liabilities |  |  |  |  |  |  |  |  |  |  | 956 |  |  |  | 2,086 |
Total short-term debt |  |  |  |  |  |  |  |  |  | $ | 1,479 |  |  | $ | 2,109 |
Convertible senior debentures The principal amount of Teva’s 0.25% convertible senior debentures due 2026 was $23 million as of September 30, 2023 and as of December 31, 2022. 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’.
b. | Long-term debt:
|  | Interest rate as of September 30, 2023 |  |  | Maturity |  |  | September 30, 2023 |  |  | December 31, 2022 |
|  |  |  |  |  |  |  | (U.S. $ in millions) |
Senior notes EUR 1,500 million |  |  | 1.13 | % |  |  | 2024 |  |  |  | 663 |  |  |  | 670 |
Sustainability-linked senior notes EUR 1,500 million (6)(*) |  |  | 4.38 | % |  |  | 2030 |  |  |  | 1,586 |  |  |  | 1,606 |
Senior notes EUR 1,300 million (9) |  |  | 1.25 | % |  |  | 2023 |  |  |  | — |  |  |  | 633 |
Sustainability-linked senior notes EUR 1,100 million (7)(*) |  |  | 3.75 | % |  |  | 2027 |  |  |  | 1,163 |  |  |  | 1,177 |
Senior notes EUR 1,000 million (5) |  |  | 6.00 | % |  |  | 2025 |  |  |  | 434 |  |  |  | 1,070 |
Senior notes EUR 900 million (5) |  |  | 4.50 | % |  |  | 2025 |  |  |  | 525 |  |  |  | 963 |
Sustainability-linked senior notes EUR 800 million (1)(*) |  |  | 7.38 | % |  |  | 2029 |  |  |  | 846 |  |  |  | — |
Senior notes EUR 750 million |  |  | 1.63 | % |  |  | 2028 |  |  |  | 789 |  |  |  | 800 |
Senior notes EUR 700 million |  |  | 1.88 | % |  |  | 2027 |  |  |  | 739 |  |  |  | 748 |
Sustainability-linked senior notes EUR 500 million (2)(*) |  |  | 7.88 | % |  |  | 2031 |  |  |  | 529 |  |  |  | — |
Senior notes USD 3,500 million (5) |  |  | 3.15 | % |  |  | 2026 |  |  |  | 3,374 |  |  |  | 3,496 |
Senior notes USD 3,000 million (5)(10) |  |  | 2.80 | % |  |  | 2023 |  |  |  | — |  |  |  | 1,453 |
Senior notes USD 2,000 million |  |  | 4.10 | % |  |  | 2046 |  |  |  | 1,986 |  |  |  | 1,986 |
Senior notes USD 1,250 million (5) |  |  | 6.00 | % |  |  | 2024 |  |  |  | 956 |  |  |  | 1,250 |
Senior notes USD 1,250 million |  |  | 6.75 | % |  |  | 2028 |  |  |  | 1,250 |  |  |  | 1,250 |
Senior notes USD 1,000 million (5) |  |  | 7.13 | % |  |  | 2025 |  |  |  | 427 |  |  |  | 1,000 |
Sustainability-linked senior notes USD 1,000 million (7)(*) |  |  | 4.75 | % |  |  | 2027 |  |  |  | 1,000 |  |  |  | 1,000 |
Sustainability-linked senior notes USD 1,000 million (6)(*) |  |  | 5.13 | % |  |  | 2029 |  |  |  | 1,000 |  |  |  | 1,000 |
Senior notes USD 789 million |  |  | 6.15 | % |  |  | 2036 |  |  |  | 783 |  |  |  | 783 |
Sustainability-linked senior notes USD 600 million (3)(*) |  |  | 7.88 | % |  |  | 2029 |  |  |  | 600 |  |  |  | — |
Sustainability-linked senior notes USD 500 million (4)(*) |  |  | 8.13 | % |  |  | 2031 |  |  |  | 500 |  |  |  | — |
Senior notes CHF 350 million |  |  | 1.00 | % |  |  | 2025 |  |  |  | 383 |  |  |  | 382 |
Total senior notes |  |  |  |  |  |  |  |  |  |  | 19,533 |  |  |  | 21,266 |
Other long-term debt |  |  |  |  |  |  |  |  |  |  | 1 |  |  |  | 1 |
Less current maturities |  |  |  |  |  |  |  |  |  |  | (956 | ) |  |  | (2,086 | )
Less debt issuance costs (8) |  |  |  |  |  |  |  |  |  |  | (83 | ) |  |  | (78 | )
Total senior notes and loans |  |  |  |  |  |  |  |  |  | $ | 18,495 |  |  | $ | 19,103 |
(1) | In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 800 million euro bearing 7.38 % annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100 %- 0.300 % per annum, from and including September 15, 2026.
(2) | In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of 500 million euro bearing 7.88 % annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100 %- 0.300 % per annum, from and including September 15, 2026.
(3) | In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $ 600 million bearing 7.88 % annual interest and due September 2029. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100 %- 0.300 % per annum, from and including September 15, 2026.
(4) | In March 2023, Teva issued sustainability-linked senior notes in an aggregate principal amount of $500 million bearing 8.13% annual interest and due September 2031. If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026.
(5) | In March 2023, Teva consummated a cash tender offer and extinguished $631 million aggregate principal amount of its 1,000 million euro 6% senior notes due in 2025; $432 million aggregate principal amount of its 900 million euro 4.5% senior notes due in 2025; $574 million aggregate principal amount of its $1,000 million 7.13% senior notes due in 2025; $454 million aggregate principal amount of its $3,000 million 2.8% senior notes due in 2023; $293 million aggregate principal amount of its $1,250 million 6% senior notes due in 2024 and $122 million aggregate principal amount of its $3,500 million 3.15% senior notes due in 2026.
(6) | If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.125%-0.375% per annum, from and including May 9, 2026.
(7) | If Teva fails to achieve certain sustainability performance targets, a one-time premium payment of 0.15%-0.45% out of the principal amount will be paid at maturity or upon earlier redemption, if such redemption is on or after May 9, 2026.
(8) | Debt issuance costs as of September 30, 2023 include $26 million in connection with the issuance of the sustainability-linked senior notes in March 2023, partially offset by $6 million acceleration of issuance costs related to the cash tender offer.
(9) | In March 2023, Teva repaid $646 million of its 1.25% senior notes at maturity.
(10) | In July 2023, Teva repaid $1,000 million of its 2.8% senior notes at maturity.
* | Interest rate adjustments and a potential one-time premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 8c.
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. The long-term debt outlined in the above table is generally redeemable at any time at varying redemption prices plus accrued and unpaid interest. Teva’s debt as of September 30, 2023 was effectively denominated in the following currencies: 62% in U.S. dollars, 36% in euro and 2% 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 $1.8 billion unsecured syndicated sustainability-linked revolving credit facility entered into in April 2022, as amended in February 2023 (“RCF”). The RCF has a maturity date of April 2026, with two one-year extension options. The RCF contains certain covenants, including certain limitations on incurring liens and indebtedness and maintenance of certain financial ratios, including a maximum leverage ratio, which becomes more restrictive over time. In addition, the RCF is linked to two sustainability performance targets: (i) the Company’s S&P ESG Score and (ii) number of new regulatory submissions in low and middle-income countries. The RCF margin may increase or decrease depending on the Company’s sustainability performance. On February 6, 2023, the terms of the RCF were amended to update the Company’s maximum leverage ratio under the RCF for certain periods. Under the terms of the RCF, as amended, the Company’s leverage ratio shall not exceed 4.25x in the third quarter of 2023, 4.00x in the fourth quarter of 2023, 4.00x in the first, second and third quarters of 2024, and 3.50x in the fourth quarter of 2024 and onwards. The RCF can be used for general corporate purposes, including repaying existing debt. In July 2023, a total amount of $700 million was withdrawn under the RCF, of which $200 million w a s repaid in September 2023. As of September 30, 2023, and as of the date of this Quarterly Report on Form 10-Q , $500 million i s 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 the 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 and sustainability-linked senior notes is outstanding, could lead to an event of default under the Company’s senior notes and sustainability-linked 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 the 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://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration