Analysis of Debt
Total Debt (Carrying Amount)
Warner Bros. Discovery Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The overall debt profile exhibits a peak in 2018 followed by a consistent downward trajectory through 2021. Total liabilities, including finance leases, rose from 14,785 million USD in 2017 to a high of 17,045 million USD in 2018, before gradually declining to 15,014 million USD by the end of 2021.
- Total Debt and Finance Lease Liabilities
- A notable increase in the total carrying amount occurred between 2017 and 2018, representing a growth of approximately 15%. This peak was followed by a period of steady deleveraging, with total obligations decreasing by roughly 12% over the subsequent three years to reach 15,014 million USD by December 31, 2021.
- Debt Maturity Structure
- The debt composition is heavily weighted toward noncurrent obligations, which remained relatively stable, fluctuating between 14,420 million USD and 15,185 million USD. A significant volatility is observed in the current portion of debt, which spiked to 1,860 million USD in 2018 from only 30 million USD in 2017. This temporary surge indicates a concentrated maturity window or a specific short-term financing event in 2018, which subsequently normalized to levels between 335 million USD and 609 million USD from 2019 onward.
- Finance Lease Liabilities
- Finance lease liabilities represent a marginal fraction of the total debt carrying amount. Since appearing in the records in 2019, these obligations have remained stable, with combined current and noncurrent lease liabilities fluctuating narrowly between 241 million USD and 255 million USD through 2021.
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Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Senior notes | 17,200) |
| Revolving credit facility | —) |
| Program financing line of credit, quarterly interest based on adjusted LIBOR or variable prime rate | —) |
| Finance lease liabilities | 255) |
| Total total debt and finance lease liabilities (fair value) | 17,455) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.16 |
Based on: 10-K (reporting date: 2021-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt and finance lease liabilities: 4.13%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 2.38% | 339) | 8) | |
| 2.95% | 796) | 23) | |
| 3.25% | 192) | 6) | |
| 3.80% | 450) | 17) | |
| 2.50% | 540) | 14) | |
| 3.90% | 497) | 19) | |
| 3.45% | 300) | 10) | |
| 3.95% | 500) | 20) | |
| 4.90% | 700) | 34) | |
| 1.90% | 678) | 13) | |
| 3.95% | 1,700) | 67) | |
| 4.13% | 750) | 31) | |
| 3.62% | 1,000) | 36) | |
| 5.00% | 548) | 27) | |
| 6.35% | 664) | 42) | |
| 4.95% | 285) | 14) | |
| 4.88% | 516) | 25) | |
| 5.20% | 1,250) | 65) | |
| 5.30% | 750) | 40) | |
| 4.65% | 1,000) | 47) | |
| 4.00% | 1,732) | 69) | |
| 3.57% | 255) | 9) | |
| Total | 15,442) | 638) | |
| 4.13% | |||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 638 ÷ 15,442 = 4.13%