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Debt and Credit Facilities
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt and Credit Facilities DEBT AND CREDIT FACILITIES
The following table summarizes the carrying amount of our borrowings under various financing arrangements:
(in millions)Carrying Amount
Type of BorrowingIssue DateMaturity DateInterest RateDecember 31, 2022December 31, 2021
Senior UnsecuredSeptember 2016March 20221.95%$— $500 
Senior UnsecuredSeptember 2015September 20223.25%— 999 
Senior UnsecuredSeptember 2016September 20232.50%749 748 
Senior UnsecuredSeptember 2020September 20230.75%1,498 1,496 
Senior UnsecuredMarch 2014April 20243.70%1,748 1,747 
Senior UnsecuredNovember 2014February 20253.50%1,748 1,747 
Senior UnsecuredSeptember 2015March 20263.65%2,742 2,739 
Senior UnsecuredSeptember 2016March 20272.95%1,247 1,247 
Senior UnsecuredSeptember 2020October 20271.20%747 746 
Senior UnsecuredSeptember 2020October 20301.65%993 993 
Senior UnsecuredSeptember 2015September 20354.60%993 992 
Senior UnsecuredSeptember 2016September 20364.00%742 742 
Senior UnsecuredSeptember 2020October 20402.60%988 987 
Senior UnsecuredDecember 2011December 20415.65%996 996 
Senior UnsecuredMarch 2014April 20444.80%1,736 1,736 
Senior UnsecuredNovember 2014February 20454.50%1,733 1,733 
Senior UnsecuredSeptember 2015March 20464.75%2,221 2,220 
Senior UnsecuredSeptember 2016March 20474.15%1,728 1,727 
Senior UnsecuredSeptember 2020October 20502.80%1,477 1,476 
Total senior unsecured notes24,088 25,571 
Liability related to future royalties1,141 1,124 
Total debt, net25,229 26,695 
Less: Current portion of long-term debt and other obligations, net2,273 1,516 
Total Long-term debt, net$22,957 $25,179 
Senior Unsecured Notes
In February 2022, we repaid $500 million of senior unsecured notes prior to the March 2022 maturity by exercising a par call option. Additionally, in July 2022, we repaid $1.0 billion of senior unsecured notes prior to the September 2022 maturity by exercising a par call option. No new debt was issued in 2022.
Our senior unsecured fixed rate notes may be redeemed at our option at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the sum, as determined by an independent investment banker, of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semiannual basis at the Treasury Rate, plus a make-whole premium, which are defined in the terms of the notes. The senior unsecured fixed rate notes also have a par call feature, exercisable at our option, to redeem the notes at par in whole, or in part, on dates ranging from two to six months prior to maturity. In each case, accrued and unpaid interest is also required to be redeemed to the date of redemption. The $1.5 billion of 0.75% senior unsecured notes due September 2023 also have a different call feature, exercisable at our option, to redeem the notes at par, in whole or in part, at any time until maturity.
In the event of a change in control and a downgrade in the rating of our senior unsecured notes below investment grade by Moody’s Investors Service, Inc. and S&P Global Ratings, the holders may require us to purchase all or a portion of their notes at a price equal to 101% of the aggregate principal amount of the notes repurchased, plus accrued and unpaid interest to the date of repurchase. We are required to comply with certain covenants under our note indentures governing our senior unsecured notes. As of December 31, 2022 and 2021, we were not in violation of any covenants.
Liability Related to Future Royalties
In connection with our acquisition of Immunomedics, we assumed a liability related to a funding arrangement, which was originally entered into by Immunomedics and RPI Finance Trust (“RPI”), prior to our acquisition of Immunomedics. Under the funding agreement, RPI has the right to receive certain royalty amounts, subject to certain reductions, based on the net sales of Trodelvy for each calendar quarter during the term of the agreement through approximately 2036. The liability is amortized using the effective interest rate method, resulting in recognition of interest expense over 16 years. The estimated timing and amount of future expected royalty payments over the estimated term will be re-assessed each reporting period. The impact from changes in estimates will be recognized in the liability and the related interest expense prospectively. The liability related to future royalties was primarily included in Long-term debt, net on our Consolidated Balance Sheets.
Revolving Credit Facilities
In June 2020, we entered into a new $2.5 billion five-year revolving credit facility maturing in June 2025 (the “2020 Revolving Credit Facility”). The 2020 Revolving Credit Facility can be used for working capital requirements and for general corporate purposes, including, without limitation, acquisitions. As of December 31, 2022 and 2021, there were no amounts outstanding under the 2020 Revolving Credit Facility.
The 2020 Revolving Credit Facility contains customary representations, warranties, affirmative and negative covenants and events of default. As of December 31, 2022, we were in compliance with all covenants. Loans under the 2020 Revolving Credit Facility bear interest at either (i) the Term Secured Overnight Financing Rate (“SOFR”) plus the Applicable Percentage, or (ii) the Base Rate plus the Applicable Percentage, each as defined in the 2020 Revolving Credit Facility agreement. We may terminate or reduce the commitments, and may prepay any loans under the credit facility in whole or in part at any time without premium or penalty.
Contractual Maturities of Financing Obligations
The following table summarizes the aggregate future principal maturities of our senior unsecured notes as of December 31, 2022:
(in millions)Amount
2023$2,250 
20241,750 
20251,750 
20262,750 
20272,000 
Thereafter13,750 
Total$24,250 
Interest ExpenseInterest expense on our debt and credit facilities related to the contractual coupon rates and amortization of the debt discount and issuance costs was $940 million in 2022 and $1.0 billion in 2021 and 2020.