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Debt
12 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Debt Debt
Short-term debt
The carrying value of Short-term debt, net of unamortized debt issuance costs, at September 30 consisted of:
(Millions of dollars)
 
 
2019
 
2018
Current portion of long-term debt
 
 
 
 
 
2.675% Notes due December 15, 2019
(a)
 
$
300

 
$

2.404% Notes due June 5, 2020
 
 
999

 

2.133% Notes due June 6, 2019
 
 

 
724

0.368% Notes due June 6, 2019
(a)
 

 
1,157

Term Loan Facility due September 5, 2019
(b)
 

 
710

Other
 
 
10

 
10

Total short-term debt
 
 
$
1,309

 
$
2,601


(a)
All or a portion of the aggregate principal amount outstanding was redeemed or repaid during 2019, as further discussed below.
(b)
Term loan facility entered into during the fourth quarter of fiscal year 2018, as further discussed below.
The weighted average interest rates for short-term debt were 2.48% and 1.58% at September 30, 2019 and 2018, respectively.
Long-term debt
The carrying value of Long-Term Debt, net of unamortized debt issuance costs, at September 30 consisted of:
(Millions of dollars)
 
 
2019
 
2018
2.675% Notes due December 15, 2019
 
 
$

 
$
1,123

2.404% Notes due June 5, 2020
 
 

 
998

3.250% Notes due November 12, 2020
 
 
699

 
699

Floating Rate Notes due December 29, 2020
(a)
 
748

 
996

0.174% Notes due June 4, 2021
(b)
 
651

 

3.125% Notes due November 8, 2021
 
 
1,004

 
990

2.894% Notes due June 6, 2022
 
 
1,795

 
1,793

Floating Rate Notes due June 6, 2022
 
 
498

 
498

1.000% Notes due December 15, 2022
 
 
542

 
576

Revolving Credit Facility due December 29, 2022
 
 
480

 

3.300% Notes due March 1, 2023
 
 
295

 
296

1.401% Notes due May 24, 2023
 
 
325

 
346

0.632% Notes due June 4, 2023
(b)
 
867

 

3.875% Notes due May 15, 2024
 
 
181

 
182

3.363% Notes due June 6, 2024
 
 
1,740

 
1,738

3.734% Notes due December 15, 2024
 
 
1,369

 
1,368

3.020% Notes due May 24, 2025
 
 
306

 
324

1.208% Notes due June 4, 2026
(b)
 
649

 

6.700% Notes due December 1, 2026
(c)
 
174

 
177

1.900% Notes due December 15, 2026
 
 
541

 
575

3.700% Notes due June 6, 2027
(a)
 
1,714

 
2,383

7.000% Debentures due August 1, 2027
 
 
175

 
156

6.700% Debentures due August 1, 2028
 
 
175

 
154

6.000% Notes due May 15, 2039
 
 
246

 
246

5.000% Notes due November 12, 2040
(a)
 
124

 
296

4.875% Notes due May 15, 2044
(a)
 
248

 
331

4.685% Notes due December 15, 2044
(a)
 
1,045

 
1,159

4.669% Notes due June 6, 2047
 
 
1,485

 
1,484

Other long-term debt
 
 
5

 
8

Total Long-Term Debt
 
 
$
18,081

 
$
18,894

(a)
A portion of the aggregate principal amount outstanding was redeemed or repurchased during 2019, as further discussed below.
(b)
Includes notes issued during 2019, as further discussed below.
(c)
Includes notes assumed in connection with the Company's acquisition of Bard, as further discussed below.
The aggregate annual maturities of debt including interest during the fiscal years ending September 30, 2020 to 2024 are as follows: 2020$1.9 billion; 2021$2.6 billion; 2022$3.7 billion; 2023$2.9 billion; 2024$2.3 billion.
Other current credit facilities
In May 2017, the Company entered into a five-year senior unsecured revolving credit facility which provides borrowing of up to $2.25 billion. This facility will expire in December 2022. Under the revolving facility, the Company is able to issue up to $100 million in letters of credit and it also includes a provision that enables the Company, subject to additional commitments made by the lenders, to access up to an additional $500 million in financing through the facility for a maximum aggregate commitment of $2.75 billion. Borrowings outstanding under the revolving credit facility at September 30, 2019 were $485 million. There were no borrowings outstanding under the revolving credit facility at September 30, 2018.  In addition, the Company has informal lines of credit outside of the United States.
During the fourth quarter of 2019, the Company fully repaid its borrowings outstanding on a 364-day senior unsecured term loan facility that the Company entered in September 2018.  The Company had no commercial paper borrowings outstanding as of September 30, 2019.
2019 Debt-Related Transactions
In March 2019, the Company redeemed an aggregate principal amount of $250 million of its outstanding floating rate senior unsecured U.S. notes due December 29, 2020. Based upon the $249 million carrying value of the notes redeemed and the $250 million the Company paid to redeem the aggregate principal amount of the notes, the Company recorded a loss on this debt extinguishment transaction in the second quarter of fiscal year 2019 of $1 million as Other income (expense), net, on its consolidated statements of income.
In June 2019, Becton Dickinson Euro Finance S.à r.l., a private limited liability company (société à responsabilité limitée), which is an indirect, wholly-owned finance subsidiary of the Company, issued Euro-denominated debt consisting of 600 million Euros ($672 million) of 0.174% notes due June 4, 2021, 800 million Euros ($896 million) of 0.632% notes due June 4, 2023, and 600 million Euros ($672 million) of 1.208% notes due June 4, 2026. The notes are fully and unconditionally guaranteed on a senior unsecured basis by the Company. No other of the Company's subsidiaries provide any guarantees with respect to these notes. The indenture covenants include a limitation on liens and a restriction on sale and leasebacks, change of control and consolidation, merger and sale of assets covenants. These covenants are subject to a number of exceptions, limitations and qualifications. The indenture does not restrict the Company, Becton Dickinson Euro Finance S.à r.l., or any other of the Company's subsidiaries from incurring additional debt or other liabilities, including additional senior debt. Additionally, the indenture does not restrict Becton Dickinson Euro Finance S.à r.l. and the Company from granting security interests over its assets.
The Company used the net proceeds from this long-term debt offering, together with cash on hand, to repay all the 1.000 billion Euros ($1.120 billion) of principal outstanding on 0.368% notes due June 6, 2019, as well as to fund the Company's repurchase of certain of its long-term senior notes outstanding. Under this cash tender offer, the Company repurchased the following aggregate principal amounts of its long-term debt at an aggregate market price of $1.169 billion:
Interest Rate and Maturity
 
Aggregate
Principal Amount
(Millions of dollars)
3.700% Notes due June 6, 2027
 
$
675

5.000% Notes due November 12, 2040
 
175

4.875% Notes due May 15, 2044
 
75

4.685% Notes due December 15, 2044
 
175

Total notes purchased
 
$
1,100


The carrying value of these long-term notes was $1.112 billion, and the Company recognized a loss on this debt extinguishment of $57 million, which was recorded in June 2019 as Other income (expense), net, on the Company’s consolidated statements of income.
In September 2019, the Company redeemed an aggregate principal amount of $825 million of its outstanding 2.675% notes due December 15, 2019. Based upon the $825 million carrying value of the notes redeemed and the $826 million the Company paid to redeem the aggregate principal amount of the notes, the Company recorded a loss on this debt extinguishment transaction in the fourth quarter of fiscal year 2019 of $1 million as Other income (expense), net, on its consolidated statements of income.
2018 Debt-Related Transactions
In connection with the Company's acquisition of Bard, the Company exchanged certain outstanding notes issued by Bard for a like-amount of new notes issued by the Company. The exchange offers, which were conditioned upon the closing of the Bard acquisition, expired on December 29, 2017. The aggregate principal amounts of Bard notes which were validly tendered for notes issued by the Company are provided below.
(Millions of dollars)
 
 
 
 
Interest Rate and Maturity
  
Aggregate Principal Amount
 
Principal Amount Accepted for Exchange
4.400% Notes due January 15, 2021
 
$
500

 
$
432

3.000% Notes due May 15, 2026
  
500

 
470

6.700% Notes due December 1, 2026
 
150

 
137

Total
  
$
1,150

 
$
1,039


This exchange transaction was accounted for as a modification of the assumed debt instruments. Following the exchange of the notes, the aggregate principal amount of Bard notes that remained outstanding after settlement of the exchange transaction was $111 million.
In January 2018, the Company commenced an offer to repurchase any and all of the outstanding 3.000% Notes due May 15, 2026 that were issued as a result of the exchange transaction discussed above. Under the terms of the repurchase offer, holders were entitled to receive cash equal to 101% of the principal amount of notes validly tendered, plus accrued and unpaid interest, if any, to the date of purchase. The offer to repurchase the 3.000% Notes expired on March 1, 2018 and a total of $461 million aggregate principal amount of notes were validly tendered at a market price of $465 million. Based upon the carrying value of $452 million, the Company recorded a loss relating to this debt extinguishment in the second quarter of fiscal year 2018 of $13 million as Other income (expense), net, on its consolidated statements of income.
During the second quarter of fiscal year 2018, the Company issued Euro-denominated debt consisting of 300 million Euros ($370 million) of 0.368% notes due June 6, 2019 under an indenture pursuant to which the Company previously issued, in the third quarter of fiscal year 2017, 0.368% notes due June 6, 2019. Also in the second quarter of fiscal year 2018, the Company issued $1 billion of floating rate senior unsecured U.S. notes due December 29, 2020. The Company used the net proceeds from these long-term debt offerings to repay portions of the balances outstanding on its term loan and revolving credit facilities, which are discussed above, as well as accrued interest, related premiums, fees and expenses related to these repaid amounts.
In June 2018, the Company redeemed all of the 4.400% Notes due January 15, 2021 and 3.000% Notes due May 15, 2026 which were issued by Bard and that remained outstanding after the exchange offer discussed above. Also in June 2018, the Company redeemed all of the 4.400% Notes due January 15, 2021 which were issued by the Company upon the exchange offer, as well as all of the 3.000% Notes due May 15, 2026 issued by the Company which remained outstanding after the repurchase offer also discussed above. The total aggregate principal amount of notes redeemed was $539 million. Based upon the $556 million carrying value of these notes and the $559 million the Company paid to redeem the aggregate principal amount of the notes, the Company recorded a loss on these debt extinguishment transactions in the third quarter of fiscal year 2018 of $3 million as Other income (expense), net, on its consolidated statements of income.
During the third quarter of fiscal year 2018, the Company issued Euro-denominated debt consisting of 300 million Euros ($354 million) of 1.401% notes due May 24, 2023. Also in the third quarter of fiscal year 2018, the Company issued British Pound-denominated debt of 250 million British Pounds ($337.5 million) of 3.02% notes due May 24, 2025. The Company used the net proceeds from these long-term debt offerings to redeem certain notes in the third quarter and to repay a portion of the balance outstanding on its term loan, as well as accrued interest, related premiums, fees and expenses related to this repaid amount.
Capitalized interest
The Company capitalizes interest costs as a component of the cost of construction in progress. A summary of interest costs and payments for the years ended September 30 is as follows:
(Millions of dollars)
2019
 
2018
 
2017
Charged to operations
$
639

 
$
706

 
$
521

Capitalized
44

 
42

 
32

Total interest costs
$
683

 
$
748

 
$
553

Interest paid, net of amounts capitalized
$
658

 
$
674

 
$
435