Our working capital balance, which includes accounts receivables net of SR&A, inventories, prepaid expenses and other current assets, accounts payables, employee-related obligations, accrued expenses and other current liabilities, was $814 million as of June 30, 2022, compared to $787 million as of December 31, 2021. This increase was mainly due to an increase in inventory levels and accounts receivables, net of SR&A, partially offset by an update to the estimated settlement provision recorded in connection with the remaining opioid cases and an increase in accounts payables.
Employee-related obligations, as of June 30, 2022 were $467 million, compared to $563 million as of December 31, 2021. The decrease in the first six months of 2022 was mainly due to performance incentive payments to employees for 2021.
Cash investment in property, plant and equipment in the second quarter of 2022 was $127 million, compared to $113 million in the second quarter of 2021. Depreciation in the second quarter of 2022 was $146 million, compared to $134 million in the second quarter of 2021.
Cash and cash equivalents and short-term and long-term investments as of June 30, 2022 were $2,108 million, compared to $2,191 million as of December 31, 2021.
Our cash on hand that is not used for ongoing operations is generally invested in bank deposits as well as liquid securities that bear fixed and floating rates.
Teva’s principal sources of short-term liquidity are its cash on hand, existing cash investments, liquid securities and available credit facilities, primarily, as of June 30, 2022, its $1.8 billion unsecured syndicated sustainability-linked revolving credit facility, entered into in April 2022 (“RCF”). See note 7 to our consolidated financial statements.
Debt Balance and Movements
As of June 30, 2022, our debt was $22,082 million, compared to $23,043 million as of December 31, 2021. This decrease was mainly due to $680 million from exchange rate fluctuations and $296 million senior notes repaid at maturity.
Our debt as of June 30, 2022 was effectively denominated in the following currencies: 63% in U.S. dollars, 34% in euros and 3% in Swiss francs.
The portion of total debt classified as short-term as of June 30, 2022 was 8%, compared to 6% as of December 31, 2021.
Our financial leverage was 69% as of June 30, 2022, compared to 67% as of December 31, 2021.
Our average debt maturity was approximately 6.1 years as of June 30, 2022, compared to 6.4 years as of December 31, 2021.
Total equity was $9,828 million as of June 30, 2022, compared to $11,244 million as of December 31, 2021. This decrease was mainly due to a net loss of $1,211 million and a negative impact of $282 million from exchange rate fluctuations.
Exchange rate fluctuations affected our balance sheet, as approximately 58% of our net assets as of June 30, 2022 (including both
non-monetary
and monetary assets) were in currencies other than the U.S. dollar. When compared to December 31, 2021, changes in currency rates had a negative impact of $282 million on our equity as of June 30, 2022. The following main currencies decreased in value against the U.S. dollar: the Turkish lira by 27%, the Japanese yen by 19%, the British pound by 11%, the Polish zloty by 10%, the Chilean peso by 9%, the Croatian kuna by 9%, the Bulgarian lev by 8%, the euro by 8% and the Indian rupee by 6 %. The following main currency increased in value against the U.S. dollar: the Russian ruble by 30%. All comparisons are on a year to date basis.
We seek to continually improve the efficiency of our working capital management. From time to time, as part of our cash and commercial relationship management activities, we may make decisions in our commercial and supply chain activities which may drive an acceleration of receivable payments from customers or deceleration of payments to vendors, having the effect of increasing or decreasing cash from operations in an individual period. Such decisions may have an impact on our annual operating cash flow measurement, as well as on our quarterly results.