Analysis of Debt
Total Debt (Carrying Amount)
Allergan PLC, balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2019-12-31), 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).
A consistent and significant reduction in the total carrying amount of long-term debt and capital leases is observed between December 31, 2015, and December 31, 2019. Total obligations decreased from approximately 42.7 billion US dollars to 22.6 billion US dollars over the five-year period, representing a substantial deleveraging of the balance sheet.
- Total Debt Trajectory
- The total debt load experienced a steady downward trend, with the most significant absolute reduction occurring between 2015 and 2016, where obligations fell by nearly 10 billion US dollars. This trajectory continued through 2019, reflecting a sustained effort to lower the overall debt burden.
- Non-Current Debt Analysis
- Long-term debt excluding the current portion exhibited a continuous decline every year of the reported period. This figure dropped from 40.3 billion US dollars in 2015 to 18.1 billion US dollars in 2019, indicating a systematic reduction in long-term borrowing and lease commitments.
- Current Portion Volatility
- Unlike the steady decline of non-current debt, the current portion of long-term debt and capital leases demonstrated significant volatility. After rising from 2.4 billion US dollars in 2015 to a peak of 4.2 billion US dollars in 2017, the amount plummeted to 868.3 million US dollars in 2018 before surging to its highest point of 4.5 billion US dollars in 2019. This suggests fluctuating short-term repayment schedules or refinancing activities.
- Debt Composition Shift
- The proportion of total debt categorized as current obligations increased relative to the total debt amount by the end of the period. In 2015, the current portion represented approximately 5.7% of total debt; by 2019, this proportion increased to approximately 20%, indicating a higher concentration of debt maturing within the short term.
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Total Debt (Fair Value)
| Dec 31, 2019 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Senior Notes | 23,679,100) |
| Margin Loan | —) |
| Term Loan Indebtedness | —) |
| Other borrowings | 72,600) |
| Capital leases | —) |
| Total long-term debt and capital leases, including current portion (fair value) | 23,751,700) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.05 |
Based on: 10-K (reporting date: 2019-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 3.50%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.00% | 2,529,500) | 75,885) | |
| 3.38% | 654,700) | 22,096) | |
| 4.88% | 463,400) | 22,591) | |
| 5.00% | 1,262,900) | 63,145) | |
| 3.45% | 2,945,100) | 101,606) | |
| 3.25% | 1,739,100) | 56,521) | |
| 2.80% | 352,700) | 9,876) | |
| 3.85% | 1,089,900) | 41,961) | |
| 3.80% | 3,172,400) | 120,551) | |
| 4.55% | 1,953,400) | 88,880) | |
| 4.63% | 482,800) | 22,330) | |
| 4.85% | 1,192,800) | 57,851) | |
| 4.75% | 968,700) | 46,013) | |
| 0.50% | 846,700) | 4,234) | |
| 1.50% | 589,800) | 8,847) | |
| 1.25% | 817,700) | 10,221) | |
| 2.63% | 648,200) | 17,015) | |
| 2.13% | 683,900) | 14,533) | |
| Total | 22,393,700) | 784,155) | |
| 3.50% | |||
Based on: 10-K (reporting date: 2019-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 784,155 ÷ 22,393,700 = 3.50%