Debt

12 Months Ended

Sep. 30, 2020

Short-term debt

The carrying value of Short-term debt, net of unamortized debt issuance costs, at September 30 consisted of:


(Millions of dollars)	2020		2019
Current portion of long-term debt


0.174% Notes due June 4, 2021	701		—
2.404% Notes due June 5, 2020	—		999
2.675% Notes due December 15, 2019	—		300
Other	5		10
Total short-term debt	$	707	$	1,309

The weighted average interest rates for short-term debt were 0.20% and 2.48% at September 30, 2020 and 2019, 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)		2020		2019
3.250% Notes due November 12, 2020	(a)	—		699
Floating Rate Notes due December 29, 2020	(a)	—		748
0.174% Notes due June 4, 2021		—		651
3.125% Notes due November 8, 2021		1,008		1,004
2.894% Notes due June 6, 2022		1,797		1,795
Floating Rate Notes due June 6, 2022		499		498
1.000% Notes due December 15, 2022		584		542
Revolving Credit Facility due December 29, 2022		—		480
3.300% Notes due March 1, 2023		295		295
1.401% Notes due May 24, 2023		350		325
0.632% Notes due June 4, 2023		933		867
3.875% Notes due May 15, 2024		180		181
3.363% Notes due June 6, 2024		1,742		1,740
3.734% Notes due December 15, 2024		1,370		1,369
3.020% Notes due May 24, 2025		320		306
1.208% Notes due June 4, 2026		699		649
6.700% Notes due December 1, 2026		172		174
1.900% Notes due December 15, 2026		582		541
3.700% Notes due June 6, 2027		1,715		1,714
7.000% Debentures due August 1, 2027		175		175
6.700% Debentures due August 1, 2028		174		175
2.823% Notes due May 20, 2030	(b)	743		—
6.000% Notes due May 15, 2039		246		246
5.000% Notes due November 12, 2040		124		124
4.875% Notes due May 15, 2044		247		248
4.685% Notes due December 15, 2044		1,044		1,045
4.669% Notes due June 6, 2047		1,485		1,485
3.794% Notes due May 20, 2050	(b)	742		—
Other long-term debt		—		5
Total Long-Term Debt		$	17,224	$	18,081

(a)All of the aggregate principal amount outstanding was redeemed during 2020, as further discussed below.

(b)Represents notes issued during 2020, as further discussed below.

The aggregate annual maturities of debt including interest during the fiscal years ending September 30, 2021 to 2025 are as follows: 2021 — $1.2 billion; 2022 — $3.8 billion; 2023 — $2.6 billion; 2024 — $2.3 billion; 2025 — $2.0 billion.

Other current credit facilities

The Company has a five-year senior unsecured revolving credit facility in place which will expire in December 2022. The facility agreement includes a provision that enabled BD, 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. In April 2020, the Company entered into a supplement to the facility agreement which increased the revolving commitments available under the facility by $381 million. As such, borrowings provided for under the agreement increased from $2.25 billion to $2.63 billion. The Company is also able to issue up to $100 million in letters of credit under this revolving credit facility. Proceeds from this facility are used to fund general corporate needs. There were no borrowings outstanding under the revolving credit facility at September 30, 2020 and borrowings outstanding at September 30, 2019 were $485 million. In addition, the Company has informal lines of credit outside of the United States.

The Company had no commercial paper borrowings outstanding as of September 30, 2020.

2020 Debt-Related Transactions

In March 2020, the Company entered into a 364-day senior unsecured term loan facility with borrowing capacity available of $2.0 billion. During the third quarter of fiscal year 2020, the Company repaid $1.9 billion of borrowings outstanding under this term loan with cash on hand and terminated the facility.

In May 2020, the Company issued $750 million of 2.823% notes due May 20, 2030 and $750 million of 3.794% notes due May 20, 2050. The Company used the net proceeds from this long-term debt offering, together with cash on hand, to repay the entire $1.000 billion aggregate principal outstanding on the 2.404% notes due June 5, 2020, and to redeem $500 million of the aggregate principal outstanding on the 3.250% notes due November 12, 2020, as well as accrued interest, related premiums, fees and expenses related to these repaid amounts. The Company redeemed this long-term debt at an aggregate market price of $506 million. The carrying value of these long-term notes was $500 million, and the Company recognized a loss on this debt extinguishment of $6 million, which was recorded in June 2020 within Other income, net, on the Company’s consolidated statements of income.

In September 2020, the Company redeemed the remaining $200 million of its outstanding 3.25% notes due November 12, 2020, and $750 million of its floating rate notes due December 29, 2020. Based upon the aggregate $950 million carrying value of the notes redeemed and the $951 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 fourth quarter of fiscal year 2020 of $1 million within Other income, net, on its consolidated statements of income.

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 within Other income, 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 included 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 did 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 did 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 within Other income, 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 within Other income, net, on its consolidated statements of income.

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.

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)	2020		2019		2018
Charged to operations	$	528	$	639	$	706
Capitalized	43		44		42
Total interest costs	$	571	$	683	$	748
Interest paid, net of amounts capitalized	$	515	$	658	$	674