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Debt | 12 Months Ended
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Sep. 30, 2022
Debt Disclosure [Abstract] |
Debt | Debt Current debt obligations The carrying value of Current debt obligations, net of unamortized debt issuance costs, at September 30 consisted of:
(Millions of dollars) |  |  | 2022 |  | 2021
Commercial paper borrowings |  |  | $ | 230 |  |  | $ | — |
Current portion of long-term debt |  |  |  |  |
1.000% Notes due December 15, 2022 |  |  | 487 |  |  | — |
Floating Rate Notes due June 6, 2022 | (a) |  | — |  |  | 500 |
1.401% Notes due May 24, 2023 |  |  | 292 |  |  | — |
0.632% Notes due June 4, 2023 |  |  | 779 |  |  | — |
0.000% Notes due August 13, 2023 |  |  | 390 |  |  | — |
Total current debt obligations |  |  | $ | 2,179 |  |  | $ | 500 |
(a)All of the aggregate principal amount outstanding was retired during 2022, as further discussed below. The weighted average interest rates for current debt obligations were 1.00% and 1.15% at September 30, 2022 and 2021, respectively. From time to time, the Company may access the commercial paper market as it manages working capital over the normal course of its business activities. The Company utilized commercial paper borrowings in the fourth quarter of fiscal year 2022 of which $230 million was outstanding as of September 30, 2022. There were no such borrowings outstanding as of September 30, 2021. Long-term debt The carrying value of Long-Term Debt, net of unamortized debt issuance costs, at September 30 consisted of:
(Millions of dollars) |  |  | 2022 |  | 2021
1.000% Notes due December 15, 2022 |  |  | $ | — |  |  | $ | 579 |
1.401% Notes due May 24, 2023 |  |  | — |  |  | 347 |
0.632% Notes due June 4, 2023 |  |  | — |  |  | 926 |
0.000% Notes due August 13, 2023 |  |  | — |  |  | 463 |
3.875% Notes due May 15, 2024 |  |  | 145 |  |  | 146 |
3.363% Notes due June 6, 2024 |  |  | 996 |  |  | 994 |
3.734% Notes due December 15, 2024 |  |  | 873 |  |  | 873 |
3.020% Notes due May 24, 2025 |  |  | 275 |  |  | 336 |
0.034% Notes due August 13, 2025 |  |  | 485 |  |  | 577 |
1.208% Notes due June 4, 2026 |  |  | 583 |  |  | 693 |
6.700% Notes due December 1, 2026 |  |  | 165 |  |  | 168 |
1.900% Notes due December 15, 2026 |  |  | 485 |  |  | 577 |
3.700% Notes due June 6, 2027 |  |  | 1,718 |  |  | 1,716 |
7.000% Debentures due August 1, 2027 | (a) |  | 119 |  |  | 174 |
6.700% Debentures due August 1, 2028 | (a) |  | 116 |  |  | 173 |
0.334% Notes due August 13, 2028 |  |  | 872 |  |  | 1,037 |
2.823% Notes due May 20, 2030 |  |  | 745 |  |  | 744 |
1.957% Notes due February 11, 2031 |  |  | 992 |  |  | 992 |
4.298% Notes due August 22, 2032 | (b) |  | 495 |  |  | — |
1.213% Notes due February 12, 2036 |  |  | 580 |  |  | 690 |
6.000% Notes due May 15, 2039 | (a) |  | 121 |  |  | 246 |
5.000% Notes due November 12, 2040 | (a) |  | 90 |  |  | 124 |
1.336% Notes due August 13, 2041 |  |  | 869 |  |  | 1,034 |
4.875% Notes due May 15, 2044 |  |  | 246 |  |  | 246 |
4.685% Notes due December 15, 2044 | (a) |  | 911 |  |  | 1,033 |
4.669% Notes due June 6, 2047 |  |  | 1,449 |  |  | 1,481 |
3.794% Notes due May 20, 2050 | (a) |  | 554 |  |  | 742 |
Total Long-Term Debt |  |  | $ | 13,886 |  |  | $ | 17,110 |
(a)A portion of the aggregate principal amount outstanding was retired during 2022, as further discussed below. (b)Represents notes issued during 2022, as further discussed below. The aggregate annual maturities of Long-Term Debt including interest during the fiscal years ending September 30, 2023 to 2027 are as follows: 2023 — $439 million; 2024 — $1.574 billion; 2025 — $2.019 billion; 2026 — $951 million; 2027 — $2.801 billion. Other current credit facilities During the fourth quarter of fiscal year 2021, the Company refinanced its five-year senior unsecured revolving credit facility that was to expire in December 2022, with a new five-year senior unsecured revolving credit facility that will expire in September 2026. The credit facility provides borrowings of up to $2.75 billion, with separate sub-limits of $100 million for letters of credit and swingline loans. The expiration date of the credit facility may be extended for up to two additional one year periods, subject to certain restrictions, including the consent of the lenders. The credit facility provides that the Company may, subject to additional commitments by lenders, request an additional $500 million of financing, for a maximum aggregate commitment under the credit facility of up to $3.25 billion. Proceeds from this facility may be used for general corporate purposes. There were no borrowings outstanding under the Company’s revolving credit facilities as of September 30, 2022 and 2021. In addition, the Company has informal lines of credit outside of the United States. Spin-off-related debt transactions In February 2022, Embecta, as a wholly-owned subsidiary of the Company, issued $500 million of 5.000% senior secured notes due February 15, 2030, in advance of the Company’s spin-off of Embecta, which is further discussed in Note 2. On March 31, 2022, Embecta entered into an indenture dated April 1, 2022 to issue $200 million of 6.750% senior secured notes due February 15, 2030. These notes were issued to the Company as part of the consideration for assets transferred to Embecta in connection with the spin-off. After the spin-off was effective on April 1, 2022, the Company exchanged these notes for $199 million of the aggregate principal amount outstanding on the Company’s Floating Rate Notes due June 6, 2022, which were purchased through a tender offer. The carrying value of the long-term notes tendered was $199 million, and the Company recognized a loss on this debt extinguishment of $2 million, which was recorded in the third quarter of fiscal year 2022 within Other (expense) income, net, on the Company’s consolidated statements of income. Also in connection with the spin-off, on March 31, 2022, Embecta issued a senior secured term loan facility with an aggregate principal amount of $950 million and a senior secured revolving credit facility providing borrowings of up to $500 million that was undrawn at March 31, 2022 and at the spin-off date. The senior secured notes and credit agreement for the term loan and revolving credit facilities were guaranteed on an unsecured, unsubordinated basis solely by the Company prior to the spin-off date. The Company’s guarantees automatically and unconditionally terminated upon the consummation of the spin-off on April 1, 2022. On March 31, 2022, Embecta used a portion of the proceeds from the financing transactions discussed above to make a cash distribution of approximately $1.266 billion to the Company. Debt issuances The Company issued the following U.S. dollar-denominated debt during fiscal years 2022 and 2021:
Interest rate and maturity |  | Period issued |  | Amount issued (Millions of dollars) |  | Use of proceeds
4.298% notes due August 22, 2032 |  | Fourth quarter 2022 |  | $ | 500 |  |  | Fourth quarter 2022 retirements detailed below
1.957% notes due February 11, 2031 |  | Second quarter 2021 |  | $ | 1,000 |  |  | Retirement of 3.125% notes due November 8, 2021
The Company issued the following Euro-denominated debt during fiscal year 2021:
Interest rate and maturity |  | Period issued |  | Amount issued (Millions of Euros) |  | Amount issued (millions of dollars) |  | Use of proceeds
0.000% notes due August 13, 2023 |  | Fourth quarter 2021 |  | € | 400 |  |  | $ | 470 |  |  | Fourth quarter 2021 retirements detailed below
0.034% notes due August 13, 2025 |  | Fourth quarter 2021 |  | 500 |  |  | 587 |  |  | Fourth quarter 2021 retirements detailed below
Also in fiscal year 2021, Becton Dickinson Euro Finance S.à r.l., a private limited liability company (société à responsabilité limitée), which is an indirect, wholly-owned finance subsidiary of the Company, issued Euro-denominated notes, listed below, which are fully and unconditionally guaranteed on a senior unsecured basis by the Company. No other of the Company's subsidiaries provide any guarantees with respect to these notes. The indenture covenants included a limitation on liens and a restriction on sale and leasebacks, change of control and consolidation, merger and sale of assets covenants. These covenants are subject to a number of exceptions, limitations and qualifications. The indenture does not restrict the Company, Becton Dickinson Euro Finance S.à r.l., or any other of the Company's subsidiaries from incurring additional debt or other liabilities, including additional senior debt. Additionally, the indenture does not restrict Becton Dickinson Euro Finance S.à r.l. and the Company from granting security interests over its assets. The notes issued by Becton Dickinson Euro Finance S.à r.l included the following:
Interest rate and maturity |  | Period issued |  | Amount issued (Millions of Euros) |  | Amount issued (Millions of dollars) |  | Use of proceeds
0.334% notes due August 13, 2028 |  | Fourth quarter 2021 |  | € | 900 |  |  | $ | 1,055 |  |  | Fourth quarter 2021 retirements detailed below
1.336% notes due August 13, 2041 |  | Fourth quarter 2021 |  | 900 |  |  | 1,055 |  |  | Fourth quarter 2021 retirements detailed below
1.213% notes due February 12, 2036 |  | Second quarter 2021 |  | 600 |  |  | 728 |  |  | Retirement of 0.174% notes due June 4, 2021
Debt retirements On August 8, 2022, the Company commenced a series of tender offers to purchase for cash, certain of its outstanding senior notes. Proceeds from the notes issued in the fourth quarter of fiscal year 2022 plus cash on hand were used to pay for the tender offers. As a result of the tender, the Company’s retirements of debt in fiscal year 2022 included the following:
|  |  |  | (Millions of dollars)
Principal, interest rate and maturity |  | Period of retirement |  | Carrying value |  | Market price of retirement (a) |  | (Gain) loss recognized to Other (expense) income, net (b)
$190 million of 3.794% notes due 2050 |  | Fourth quarter 2022 |  | $ | 188 |  |  | $ | 163 |  |  | $ | (25) |
$52 million of 7.000% debentures due 2027 |  | Fourth quarter 2022 |  | 54 |  |  | 59 |  |  | 5 |
$55 million of 6.700% debentures due 2028 |  | Fourth quarter 2022 |  | 56 |  |  | 62 |  |  | 5 |
$127 million of 6.000% notes due 2039 |  | Fourth quarter 2022 |  | 125 |  |  | 145 |  |  | 20 |
$34 million of 5.000% notes due 2040 |  | Fourth quarter 2022 |  | 34 |  |  | 35 |  |  | 1 |
$42 million of 4.685% notes due 2044 |  | Fourth quarter 2022 |  | 43 |  |  | 42 |  |  | (1) |
(a)Included accrued interest, related premiums, fees and expenses. (b)Debt retirement was accounted for as an early debt extinguishment. To mitigate the impact of rate volatility on the total tender cash spend, the Company executed reverse Treasury locks that were unwound concurrent with the tender at a loss of $17 million. The Company’s retirements of debt in fiscal year 2021 included the following:
|  |  |  | (Millions of dollars)
Principal, interest rate and maturity |  | Period of retirement |  | Carrying value |  | Market price of retirement (a) |  | Loss recognized to Other (expense) income, net (b)
$1.535 billion of 2.894% notes due June 6, 2022 |  | Fourth quarter 2021 |  | $ | 1,534 |  |  | $ | 1,566 |  |  | $ | 32 |
$294 million of 3.300% notes due March 1, 2023 |  | Fourth quarter 2021 |  | 295 |  |  | 307 |  |  | 12 |
$33 million of 3.875% notes due May 15, 2024 |  | Fourth quarter 2021 |  | 33 |  |  | 35 |  |  | 2 |
$500 million of 3.734% notes due December 15, 2024 |  | Fourth quarter 2021 |  | 499 |  |  | 546 |  |  | 48 |
$752 million of 3.363% notes due June 6, 2024 |  | Fourth quarter 2021 |  | 750 |  |  | 808 |  |  | 58 |
$1.0 billion of 3.125% notes due November 8, 2021 |  | Second quarter 2021 |  | 1,005 |  |  | 1,019 |  |  | 14 |
600 million Euros ($728 million) of 0.174% notes due June 4, 2021 |  | Second quarter 2021 |  | 728 |  |  | 730 |  |  | 1 |
$265 million of 2.894% notes due June 6, 2022 |  | First quarter 2021 |  | 265 |  |  | 275 |  |  | 10 |
(a)Included accrued interest, related premiums, fees and expenses. (b)All debt retirements in fiscal year 2021 were accounted for as early debt extinguishments. Capitalized interest The Company capitalizes interest costs as a component of the cost of construction in progress. A summary of interest costs and payments for the years ended September 30 is as follows:
(Millions of dollars) | 2022 |  | 2021 |  | 2020
Charged to operations | $ | 398 |  |  | $ | 469 |  |  | $ | 528 |
Capitalized | 46 |  |  | 44 |  |  | 43 |
Total interest costs | $ | 444 |  |  | $ | 512 |  |  | $ | 571 |
Interest paid, net of amounts capitalized | $ | 390 |  |  | $ | 474 |  |  | $ | 515 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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