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).
- Short-term borrowings and current portion of long-term debt
- The data reveals that the short-term borrowings and current portion of long-term debt were reported as 606 million USD at the end of 2014, decreased to 501 million USD by the end of 2016, and remained steady at 501 million USD by the end of 2018. There are missing data points for 2015 and 2017, which limits trend analysis for those years. The overall pattern suggests a slight decrease followed by stabilization in the short-term debt component.
- Long-term debt, net of discount, excluding current portion
- This line item demonstrates a substantial increase over the observed period. The long-term debt was 6,266 million USD in 2014, more than doubling to 14,250 million USD in 2015. It saw a slight decrease to 13,789 million USD in 2016, then increased again to 15,838 million USD in 2017, and further rose to 19,769 million USD in 2018. The trend reflects a significant and ongoing accumulation of long-term debt, with some minor fluctuations but a clear upward trajectory.
- Total debt (carrying amount)
- Total debt closely follows the pattern observed in long-term debt due to the relatively small and stable short-term borrowing portion. It increased from 6,872 million USD in 2014 to 14,250 million USD in 2015, continued to increase modestly to 14,289 million USD in 2016, rose further to 15,838 million USD in 2017, and reached 20,270 million USD in 2018. This indicates overall debt levels nearly tripled over the five-year span, emphasizing a consistent increase in total financial leverage.
- General Insights
- The predominant movement in the debt structure is driven by a sharp rise in long-term debt, suggesting strategic decisions to finance growth or operations through extended-duration borrowing. The short-term debt remained relatively stable with a slight decline and no observable volatility. The total debt growth highlights increased leverage, which might have implications for financial risk and interest obligations. The significant jump between 2014 and 2015 marks a notable change in capital structure, followed by incremental increases through 2018.
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) | |
| 3.63% | 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%