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Debt | 12 Months Ended
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Sep. 30, 2023
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) |  |  | 2023 |  | 2022
Commercial paper borrowings |  |  | $ | — |  |  | $ | 230 |
Current portion of long-term debt |  |  |  |  |
1.000% Notes due December 15, 2022 | (a) |  | — |  |  | 487 |
1.401% Notes due May 24, 2023 | (a) |  | — |  |  | 292 |
0.632% Notes due June 4, 2023 | (a) |  | — |  |  | 779 |
0.000% Notes due August 13, 2023 | (a) |  | — |  |  | 390 |
3.875% Notes due May 15, 2024 |  |  | 144 |  |  | — |
3.363% Notes due June 6, 2024 |  |  | 997 |  |  | — |
Total current debt obligations |  |  | $ | 1,141 |  |  | $ | 2,179 |
(a)All of the aggregate principal amount outstanding was retired upon maturity during 2023, as further discussed below. The weighted average interest rates for current debt obligations were 3.43% and 1.00% at September 30, 2023 and 2022, 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. In March 2023, the Company amended the agreement for its U.S. commercial paper program, which provided, among other things, an increase of the maximum amount of unsecured borrowings available under the program to $2.750 billion. Also in March 2023, the Company entered into an agreement to establish a multicurrency euro commercial paper program. This multicurrency program allows for a maximum amount of unsecured borrowings that, when aggregated with the amount outstanding under the U.S. commercial paper program, will not exceed $2.750 billion at any time. Proceeds from these programs may be used for working capital purposes and general corporate purposes, which may include acquisitions, share repurchases and repayments of debt. 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, 2023. Long-term debt The carrying value of Long-Term Debt, net of unamortized debt issuance costs, at September 30 consisted of:
(Millions of dollars) |  |  | 2023 |  | 2022
3.875% Notes due May 15, 2024 |  |  | — |  |  | 145 |
3.363% Notes due June 6, 2024 |  |  | — |  |  | 996 |
3.734% Notes due December 15, 2024 |  |  | 874 |  |  | 873 |
3.020% Notes due May 24, 2025 |  |  | 306 |  |  | 275 |
0.034% Notes due August 13, 2025 |  |  | 528 |  |  | 485 |
1.208% Notes due June 4, 2026 |  |  | 634 |  |  | 583 |
6.700% Notes due December 1, 2026 |  |  | 161 |  |  | 165 |
1.900% Notes due December 15, 2026 |  |  | 528 |  |  | 485 |
3.700% Notes due June 6, 2027 |  |  | 1,719 |  |  | 1,718 |
7.000% Debentures due August 1, 2027 |  |  | 119 |  |  | 119 |
4.693% Notes due February 13, 2028 | (a) |  | 796 |  |  | — |
6.700% Debentures due August 1, 2028 |  |  | 115 |  |  | 116 |
0.334% Notes due August 13, 2028 |  |  | 949 |  |  | 872 |
3.553% Notes due September 13, 2029 | (a) |  | 842 |  |  | — |
2.823% Notes due May 20, 2030 |  |  | 745 |  |  | 745 |
1.957% Notes due February 11, 2031 |  |  | 993 |  |  | 992 |
4.298% Notes due August 22, 2032 |  |  | 496 |  |  | 495 |
1.213% Notes due February 12, 2036 |  |  | 631 |  |  | 580 |
6.000% Notes due May 15, 2039 |  |  | 121 |  |  | 121 |
5.000% Notes due November 12, 2040 |  |  | 90 |  |  | 90 |
1.336% Notes due August 13, 2041 |  |  | 945 |  |  | 869 |
4.875% Notes due May 15, 2044 |  |  | 245 |  |  | 246 |
4.685% Notes due December 15, 2044 |  |  | 899 |  |  | 911 |
4.669% Notes due June 6, 2047 |  |  | 1,445 |  |  | 1,449 |
3.794% Notes due May 20, 2050 |  |  | 554 |  |  | 554 |
Other long-term debt |  |  | 2 |  |  | — |
Total Long-Term Debt |  |  | $ | 14,738 |  |  | $ | 13,886 |
(a)Represents notes issued during 2023, as further discussed below. The aggregate annual maturities of Long-Term Debt including interest during the fiscal years ending September 30, 2024 to 2028 are as follows: 2024 — $1.625 billion; 2025 — $2.161 billion; 2026 — $1.073 billion; 2027 — $2.916 billion; 2028 — $2.183 billion. Other current credit facilities The Company has a five-year senior unsecured revolving credit facility in place which will expire in September 2026. The credit facility, which was amended and restated in January 2023, provides borrowings of up to $2.750 billion, with separate sub-limits of $100 million and $194 million for letters of credit and swingline loans, respectively. 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 $3.250 billion. Proceeds from this facility may be used for general corporate purposes and Becton Dickinson Euro Finance S.à r.l. ("Becton Finance"), an indirect, wholly-owned finance subsidiary of BD, is authorized as an additional borrower under the credit facility. There were no borrowings outstanding under the Company’s revolving credit facility as of September 30, 2023. In addition, the Company has informal lines of credit outside of the United States. Debt issuances The Company issued the following U.S. dollar-denominated debt during fiscal years 2023 and 2022:
Interest rate and maturity |  | Period issued |  | Amount issued (Millions of dollars) |  | Use of proceeds
4.693% notes due February 13, 2028 |  | Second quarter 2023 |  | $ | 800 |  |  | Retirement of 1.401% notes due May 24, 2023 and 0.000% notes due August 13, 2023
4.298% notes due August 22, 2032 |  | Fourth quarter 2022 |  | $ | 500 |  |  | Fourth quarter 2022 debt retirements detailed below
Also in fiscal year 2023, Becton Finance 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 Finance, 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 Finance and the Company from granting security interests over its assets. The notes issued by Becton Finance included the following:
Interest rate and maturity |  | Period issued |  | Amount issued (Millions of Euros) |  | Amount issued (Millions of dollars) |  | Use of proceeds
3.553% notes due September 13, 2029 |  | Second quarter 2023 |  | € | 800 |  |  | $ | 868 |  |  | Retirement of 0.632% notes due June 4, 2023
Debt retirements The Company’s retirements of debt upon maturity in fiscal year 2023 included the following:
Principal, interest rate and maturity |  | Period of retirement |  |  |  |  |  |
400 million Euros ($439 million) of 0.000% notes due August 13, 2023 |  | Fourth quarter 2023 |  |  |  |  |  |
800 million Euros ($857 million) of 0.632% notes due June 4, 2023 |  | Third quarter 2023 |  |  |  |  |  |
300 million Euros ($325 million) of 1.401% notes due May 24, 2023 |  | Third quarter 2023 |  |  |  |  |  |
500 million Euros ($528 million) of 1.000% notes due December 15, 2022 |  | First quarter 2023 |  |  |  |  |  |
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, 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. 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, 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. 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) | 2023 |  | 2022 |  | 2021
Charged to operations | $ | 452 |  |  | $ | 398 |  |  | $ | 469 |
Capitalized | 51 |  |  | 46 |  |  | 44 |
Total interest costs | $ | 503 |  |  | $ | 444 |  |  | $ | 512 |
Interest paid, net of amounts capitalized | $ | 452 |  |  | $ | 390 |  |  | $ | 474 |

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