Debt and Lines of Credit

12 Months Ended

Dec. 31, 2021

Debt and Lines of Credit

Debt and Lines of Credit

Note 9 — Debt and Lines of Credit

The following is a summary of long-term debt at December 31:

(in millions)	2021		2020
2.55% Notes, due 2022	$	750	$	750
0.875% Notes, due 2023		1,294		1,398
3.40% Notes, due 2023		1,050		1,050
5-year term loan due 2024		521		577
0.10% Notes, due 2024		670		724
3.875% Notes, due 2025		500		500
2.95% Notes, due 2025		1,000		1,000
1.50% Notes, due 2026		1,294		1,398
3.75% Notes, due 2026		1,700		1,700
0.375% Notes, due 2027		670		724
1.15% Notes, due 2028		650		650
1.40% Notes, due 2030		650		650
4.75% Notes, due 2036		1,650		1,650
6.15% Notes, due 2037		547		547
6.00% Notes, due 2039		515		515
5.30% Notes, due 2040		694		694
4.75% Notes, due 2043		700		700
4.90% Notes, due 2046		3,250		3,250
Unamortized debt issuance costs		(78)		(87)
Other, including fair value adjustments relating to interest rate hedge contracts designated as fair value hedges		23		144
Total carrying amount of long-term debt		18,050		18,534
Less: Current portion		754		7
Total long-term portion	$	17,296	$	18,527

On June 24, 2020, Abbott completed the issuance of $1.3 billion aggregate principal amount of senior notes, consisting of $650 million of its 1.15% Notes due 2028 and $650 million of its 1.40% Notes due 2030.

On September 28, 2020, Abbott repaid the €1.140 billion outstanding principal amount of its 0.00% Notes due 2020 upon maturity. The repayment equated to approximately $1.3 billion.

Abbott has readily available financial resources, including unused lines of credit that support commercial paper borrowing arrangements and provide Abbott with the ability to borrow up to $5 billion on an unsecured basis. The lines of credit are part of a Five Year Credit Agreement (Revolving Credit Agreement) that Abbott entered into on November 12, 2020. At that time, Abbott also terminated its 2018 revolving credit agreement. There were no outstanding borrowings under the 2018 revolving credit agreement at the time of its termination. Any borrowings under the Revolving Credit Agreement will mature and be payable on November 12, 2025. Any borrowings under the Revolving Credit Agreement will bear interest, at Abbott’s option, based on either a base rate or Eurodollar rate, plus an applicable margin based on Abbott’s credit ratings.

In 2019, Abbott’s long-term borrowings and debt issuance included the following:

● On November 19, 2019, Abbott’s wholly owned subsidiary, Abbott Ireland Financing DAC, completed an offering of €1.180 billion of long-term debt consisting of €590 million of 0.10% Notes due 2024 and €590 million of 0.375% Notes due 2027. The proceeds equated to approximately $1.3 billion. The Notes are guaranteed by Abbott.

● On November 21, 2019, Abbott borrowed ¥59.8 billion under a 5-year term loan and designated the yen-denominated loan as a hedge of its net investment in certain foreign subsidiaries. The term loan bears interest at TIBOR plus a fixed spread, and the interest rate is reset quarterly. The proceeds equated to approximately $550 million.

Note 9 — Debt and Lines of Credit (Continued)

In 2019, Abbott’s repayment of long-term debt included the following:

● $0.500 billion outstanding principal amount of its 2.80% Notes due 2020 – redeemed on February 24, 2019

● $2.850 billion principal amount of its 2.9% Notes due 2021 – redeemed on December 19, 2019. Abbott incurred a charge of $63 million related to the early repayment of this debt.

The 2.80% Notes were redeemed under a bond redemption authorization approved by the board of directors in 2018. The 2.9% Notes were redeemed under a bond redemption authorization approved by the board of directors in September 2019 for the early redemption of up to $5 billion of outstanding long-term notes. The 2019 bond redemption authorization superseded the board’s 2018 authorization. Of the $5 billion authorization, $2.15 billion remains available as of December 31, 2021.

Principal payments required on long-term debt outstanding at December 31, 2021 are $754 million in 2022, $2.3 billion in 2023, $1.2 billion in 2024, $1.5 billion in 2025, $3.0 billion in 2026 and $9.3 billion in 2027 and thereafter.

At December 31, 2021, Abbott’s long-term debt rating was A+ by Standard & Poor’s Corporation and A2 by Moody’s.

In December 2021, Abbott repaid a short-term facility for approximately $195 million. After the repayment, Abbott has no short-term borrowings. Abbott’s weighted-average interest rate on short-term borrowings was 0.4% at December 31, 2020 and 2019.