Edwards Lifesciences Corp., balance sheet: debt

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Short-term debt	—)	—)	—)	—)	598,000)
Long-term debt	595,700)	595,000)	594,400)	593,800)	438,400)
Total debt (carrying amount)	595,700)	595,000)	594,400)	593,800)	1,036,400)

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 analysis of the debt data over the five-year period reveals several noteworthy trends and observations regarding the company's leverage position.

Short-term Debt

The reported short-term debt is only present for the year ending December 31, 2017, amounting to 598,000 thousand US dollars. For all subsequent years (2018 through 2021), no short-term debt data is recorded, indicating either the absence of short-term borrowings or that such obligations were not reported.

Long-term Debt

Long-term debt shows a marked increase from 438,400 thousand US dollars in 2017 to 593,800 thousand US dollars in 2018, reflecting a rise of approximately 35%. From 2018 to 2019, the long-term debt remains relatively stable, increasing marginally to 594,400 thousand. This stability continues through 2020 and 2021, with values of 595,000 thousand and 595,700 thousand, respectively, indicating a plateau in the accumulation of long-term debt during these years.

Total Debt (Carrying Amount)

Total debt starts at 1,036,400 thousand US dollars in 2017 but drops sharply to 593,800 thousand in 2018. This large decline corresponds directly to the disappearance of short-term debt from the reported figures, as the long-term debt for 2018 matches the total debt amount exactly. The total debt then remains fairly constant through to 2021, closely following the long-term debt figures and showing minor incremental increases each year.

Overall Trends and Insights

Initially, the total debt includes a significant short-term debt portion in 2017, but from 2018 onwards, the company appears to have focused primarily on long-term borrowings, resulting in a streamlined debt profile centered around long-term obligations.

This shift may suggest a strategic move towards managing debt maturity profiles possibly to reduce refinancing risk associated with short-term debt. The relative stability of long-term debt from 2018 onwards indicates controlled borrowing, with minimal new long-term debt issuance or repayment during those years.

The absence of short-term debt data in later years prevents assessment of short-term borrowing activity and liquidity pressures. However, the overall flattening trend in total debt signals a conservative leverage approach after the initial reduction in 2018.

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	Dec 31, 2021
Selected Financial Data (US$ in thousands)
Notes	675,400)
Credit Agreement	—)
Total debt (fair value)	675,400)
Financial Ratio
Debt, fair value to carrying amount ratio	1.13

Based on: 10-K (reporting date: 2021-12-31).

Weighted-average interest rate under all debt obligations: 3.40%

Interest rate	Debt amount¹	Interest rate × Debt amount
3.40%	595,700)	20,254)
Total	595,700)	20,254)
3.40%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in thousands

² Weighted-average interest rate = 100 × 20,254 ÷ 595,700 = 3.40%

Edwards Lifesciences Corp. (NYSE:EW)

Analysis of Debt

Total Debt (Carrying Amount)

Total Debt (Fair Value)

Weighted-average Interest Rate on Debt