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).
- Current Portion of Debt
- The current portion of debt exhibited significant volatility over the period analyzed. It surged sharply from US$30 million in 2017 to a peak of US$1,860 million in 2018, followed by a substantial decline to US$609 million in 2019. The downward trend continued through 2020 and 2021, settling at US$335 million and US$339 million respectively. This fluctuation suggests a considerable debt restructuring or refinancing activity occurring during the 2017-2019 timeframe, stabilizing thereafter.
- Noncurrent Portion of Debt
- The noncurrent portion of debt maintained relative stability, with figures consistently around the US$14 billion to US$15 billion mark. After a slight increase from US$14,755 million in 2017 to US$15,185 million in 2018, there was a gradual decline for the following three years, reaching US$14,420 million in 2021. This gradual decrease may reflect scheduled debt repayments, refinancing, or amortization over time without significant new debt issuance in this category.
- Finance Lease Liabilities, Current
- Current finance lease liabilities appeared in the records starting in 2019 at US$47 million and showed a slight upward trend over the next two years, rising to US$57 million in 2020 and US$58 million in 2021. This indicates a growing obligation under short-term lease agreements during the recent years.
- Finance Lease Liabilities, Noncurrent
- Noncurrent finance lease liabilities were first reported in 2019 at US$203 million, then decreased slightly to US$184 million in 2020, before increasing again to US$197 million in 2021. The relatively stable values suggest consistent long-term leasing commitments without major changes in obligations.
- Total Debt and Finance Lease Liabilities (Carrying Amount)
- The total reported debt and finance lease liabilities peaked in 2018 at US$17,045 million, coinciding with the spike in current debt. Subsequently, the total amount declined to US$15,669 million in 2019, stabilizing near US$15 billion in the following years with a minor decrease to US$15,014 million in 2021. Overall, the total debt load presents a reducing trend after a notable spike in 2018, reflecting possible debt repayments, restructuring, or strategic management of overall liabilities.
Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ 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) | |
| 3.63% | 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%