Stock Analysis on Net

Allergan Inc. (NYSE:AGN.)

This company has been moved to the archive! The financial data has not been updated since February 19, 2015.

Analysis of Debt

Microsoft Excel

Total Debt (Carrying Amount)

Allergan Inc., balance sheet: debt

US$ in thousands

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Notes payable 72,100 55,600 48,800 83,900 28,100
Convertible notes 642,500
Long-term debt, excluding current maturities 2,085,300 2,098,300 1,512,400 1,515,400 1,534,200
Total notes payable and long-term debt (carrying amount) 2,157,400 2,153,900 1,561,200 1,599,300 2,204,800

Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).

Debt item Description The company
Total notes payable and long-term debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Allergan Inc. total debt increased from 2012 to 2013 and from 2013 to 2014.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2014
Selected Financial Data (US$ in thousands)
Notes payable 72,100
Convertible notes
Long-term debt 2,095,500
Total notes payable and long-term debt (fair value) 2,167,600
Financial Ratio
Debt, fair value to carrying amount ratio 1.00

Based on: 10-K (reporting date: 2014-12-31).


Weighted-average Interest Rate on Debt

Weighted-average effective interest rate on debt: 3.49%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
8.83% 72,100 6,366
5.65% 20,000 1,130
3.94% 817,500 32,210
1.39% 249,700 3,471
3.41% 648,900 22,127
2.83% 349,200 9,882
Total 2,157,400 75,187
3.49%

Based on: 10-K (reporting date: 2014-12-31).

1 US$ in thousands

2 Weighted-average interest rate = 100 × 75,187 ÷ 2,157,400 = 3.49%


Interest Costs Incurred

Allergan Inc., interest costs incurred

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Interest expense 69,400 75,000 63,600 71,800 78,700
Interest capitalized 5,600 1,800 900 1,000 500
Interest costs incurred 75,000 76,800 64,500 72,800 79,200

Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. Allergan Inc. interest expense increased from 2012 to 2013 but then slightly decreased from 2013 to 2014.
Interest capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Allergan Inc. interest capitalized increased from 2012 to 2013 and from 2013 to 2014.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Allergan Inc. interest costs incurred increased from 2012 to 2013 but then slightly decreased from 2013 to 2014.

Adjusted Interest Coverage Ratio

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in thousands)
Net earnings attributable to Allergan, Inc. 1,524,200 985,100 1,098,800 934,500 600
Add: Net income attributable to noncontrolling interest 4,600 3,600 3,700 3,600 4,300
Less: Discontinued operations (3,800) (283,800)
Add: Income tax expense 456,700 458,300 430,800 361,600 165,900
Add: Interest expense 69,400 75,000 63,600 71,800 78,700
Earnings before interest and tax (EBIT) 2,058,700 1,805,800 1,596,900 1,371,500 249,500
 
Interest costs incurred 75,000 76,800 64,500 72,800 79,200
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 29.66 24.08 25.11 19.10 3.17
Adjusted interest coverage ratio (with capitalized interest)2 27.45 23.51 24.76 18.84 3.15

Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).

2014 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 2,058,700 ÷ 69,400 = 29.66

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 2,058,700 ÷ 75,000 = 27.45


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Allergan Inc. adjusted interest coverage ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.