Analysis of Debt
Total Debt (Carrying Amount)
Celgene Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
Between 2014 and 2018, a significant and consistent upward trend in total debt is observed. The total carrying amount of debt grew from US$ 6,872 million to US$ 20,270 million, representing a substantial increase in leverage over the five-year period.
- Total Debt Trajectory
- The most pronounced expansion occurred between 2014 and 2015, where total debt more than doubled, rising from US$ 6,872 million to US$ 14,250 million. Following a period of relative stability in 2016, debt levels continued to climb, reaching a peak of US$ 20,270 million by December 31, 2018.
- Debt Composition and Structure
- The debt profile is heavily skewed toward long-term obligations. Long-term debt, net of discount and excluding the current portion, increased from US$ 6,266 million in 2014 to US$ 19,769 million in 2018. This component serves as the primary driver of the overall debt increase, consistently accounting for the vast majority of the total carrying amount.
- Short-Term Obligations
- Short-term borrowings and the current portion of long-term debt remained marginal and relatively stable in comparison to long-term liabilities. These figures decreased slightly from US$ 606 million in 2014 to US$ 501 million by 2016 and 2018, indicating a financing strategy focused on long-term capital rather than short-term borrowing.
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Total Debt (Fair Value)
| Dec 31, 2018 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Commercial paper | —) |
| Senior notes | 19,300) |
| Total debt (fair value) | 19,300) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.95 |
Based on: 10-K (reporting date: 2018-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 3.82%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 2.88% | 1,497) | 43) | |
| 3.95% | 509) | 20) | |
| 2.25% | 498) | 11) | |
| 2.88% | 498) | 14) | |
| 3.25% | 1,034) | 34) | |
| 3.55% | 996) | 35) | |
| 2.75% | 747) | 21) | |
| 3.25% | 994) | 32) | |
| 4.00% | 730) | 29) | |
| 3.62% | 1,000) | 36) | |
| 3.88% | 2,478) | 96) | |
| 3.45% | 986) | 34) | |
| 3.90% | 1,490) | 58) | |
| 5.70% | 247) | 14) | |
| 5.25% | 393) | 21) | |
| 4.63% | 987) | 46) | |
| 5.00% | 1,975) | 99) | |
| 4.35% | 1,234) | 54) | |
| 4.55% | 1,476) | 67) | |
| 2.25% | 501) | 11) | |
| Total | 20,270) | 775) | |
| 3.82% | |||
Based on: 10-K (reporting date: 2018-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 775 ÷ 20,270 = 3.82%