Twitter Inc., balance sheet: debt

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Convertible notes, short-term	—)	917,866)	—)	897,328)	—)
Finance lease liabilities, short-term	—)	567)	23,476)	68,046)	84,976)
Convertible notes, long-term	3,559,023)	1,875,878)	1,816,833)	1,730,922)	1,627,460)
Senior notes, long-term	693,996)	692,994)	691,967)	—)	—)
Finance lease liabilities, long-term	—)	—)	205)	24,394)	81,308)
Total debt (carrying amount)	4,253,019)	3,487,305)	2,532,481)	2,720,690)	1,793,744)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Twitter Inc. total debt increased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021
Selected Financial Data (US$ in thousands)
Convertible and senior notes outstanding	4,476,926)
Finance lease liabilities	—)
Total debt (fair value)	4,476,926)
Financial Ratio
Debt, fair value to carrying amount ratio	1.05

Weighted-average interest rate on debt: 0.80%

Interest rate	Debt amount¹	Interest rate × Debt amount
0.25%	1,244,760)	3,112)
0.38%	1,206,210)	4,523)
0.00%	1,297,200)	—)
3.88%	728,756)	28,239)
Total	4,476,926)	35,874)
0.80%

¹ US$ in thousands

² Weighted-average interest rate = 100 × 35,874 ÷ 4,476,926 = 0.80%

Twitter Inc., interest costs incurred

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Interest expense	51,186)	152,878)	138,180)	132,606)	105,237)
Interest costs capitalized	1,500)	3,800)	4,600)	3,700)	3,600)
Interest costs incurred	52,686)	156,678)	142,780)	136,306)	108,837)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Twitter Inc. interest expense increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Interest costs capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Twitter Inc. interest costs capitalized decreased from 2019 to 2020 and from 2020 to 2021.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Twitter Inc. interest costs incurred increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Add: Income tax expense	(189,704)	1,084,687)	(1,075,520)	(782,052)	12,645)
Add: Interest expense	51,186)	152,878)	138,180)	132,606)	105,237)
Earnings before interest and tax (EBIT)	(359,927)	101,939)	528,319)	556,150)	9,819)

Interest costs incurred	52,686)	156,678)	142,780)	136,306)	108,837)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	-7.03	0.67	3.82	4.19	0.09
Adjusted interest coverage ratio (with capitalized interest)²	-6.83	0.65	3.70	4.08	0.09

2021 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= -359,927 ÷ 51,186 = -7.03

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= -359,927 ÷ 52,686 = -6.83

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Twitter Inc. adjusted interest coverage ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Twitter Inc. (NYSE:TWTR)

Analysis of Debt