Table of Contents Cash and Short-term Investments At September 30, 2020, total worldwide cash and short-term investments were $2.937 billion, including restricted cash, which were largely held in the United States. Financing Facilities We have a five-year senior unsecured revolving credit facility in place which will expire in December 2022. The facility agreement includes a provision that enabled BD, subject to additional commitments made by the lenders, to access up to an additional $500 million in financing through the facility for a maximum aggregate commitment of $2.75 billion. In April 2020, we entered into a supplement to the facility agreement which increased the revolving commitments available under the facility by $381 million. As such, borrowings provided for under the agreement increased from $2.25 billion to $2.63 billion. We are also able to issue up to $100 million in letters of credit under this revolving credit facility. We use proceeds from this facility to fund general corporate needs. There were no borrowings outstanding under the revolving credit facility at September 30, 2020. The agreement for our revolving credit facility and the supplement entered into in April 2020 contained the following financial covenants. We were in compliance with these covenants as of September 30, 2020. Our corporate credit ratings with the rating agencies Standard & Poor's Ratings Services ("S&P"), Moody's Investor Service (Moody's) and Fitch Ratings ("Fitch") were as follows at September 30, 2020: In March 2020, Standard & Poor's Ratings Services affirmed our September 30, 2019 ratings and revised the agency's outlook regarding the likely direction of these ratings from Stable to Negative. Lower corporate debt ratings and further downgrades of our corporate credit ratings or other credit ratings may increase our cost of borrowing. We believe that given our debt ratings, our financial management policies, our ability to generate cash flow and the non-cyclical, geographically diversified nature of our businesses, we would have access to additional short-term and long-term capital should the need arise. A rating reflects only the view of a rating agency and is not a recommendation to buy, sell or hold securities. Ratings can be revised S&P Moody’s Fitch Ratings: Senior Unsecured Debt BBB Ba1 BBB- Commercial Paper A-2 NP Outlook Negative Positive Stable • We are required to maintain an interest expense coverage ratio of not less than 4-to-1 as of the last day of each fiscal quarter. • We are required to have a leverage coverage ratio of no more than: ◦ 6-to-1 from the closing date of the Bard acquisition until and including the first fiscal quarter-end thereafter; ◦ 5.75-to-1 for the subsequent four fiscal quarters thereafter; ◦ 5.25-to-1 for the subsequent four fiscal quarters thereafter; ◦ 4.5-to-1 for the subsequent four fiscal quarters thereafter; ◦ 4-to-1 for the subsequent four fiscal quarters thereafter; ◦ 3.75-to-1 thereafter. Access to Capital and Credit Ratings In March 2020, we entered into a 364-day senior unsecured term loan facility with borrowing capacity available of $2.0 billion. During the third quarter of fiscal year 2020, we repaid $1.9 billion of borrowings outstanding under this term loan with cash on hand and terminated the facility. We also have informal lines of credit outside the United States. We may, from time to time, access the commercial paper market as we manage working capital over the normal course of our business activities. We had no commercial paper borrowings outstanding as of September 30, 2020. Also over the normal course of our business activities, we transfer certain trade receivable assets to third parties under factoring agreements. Additional disclosures regarding these sales of trade receivable assets are provided in Note 15 to the consolidated financial statements contained in Item 8. Financial Statements and Supplementary Data. 38