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Indebtedness | 12 Months Ended
--- | ---
Dec. 31, 2013
Debt Disclosure [Abstract] |
Indebtedness | Indebtedness Our indebtedness is summarized as follows:
| As of December 31,
(In millions) | 2013 |  | 2012
Current portion: |  |  |
6.0% Senior notes due March 1, 2013 | $ | — |  |  | $ | 450.0 |
Note payable to Fumedica | 3.5 |  |  | 3.4 |
Credit facility | — |  |  | — |
Current portion of notes payable and line of credit | $ | 3.5 |  |  | $ | 453.4 |
Non-current portion: |  |  |
6.875% Senior notes due March 1, 2018 | 580.1 |  |  | 586.4 |
Note payable to Fumedica | 12.3 |  |  | 14.5 |
Financing arrangement for the construction of the Cambridge facilities | — |  |  | 86.5 |
Non-current portion of notes payable and other financing arrangements | $ | 592.4 |  |  | $ | 687.4 |
The following is a summary description of our principal indebtedness as of December 31, 2013: Senior Notes On March 4, 2008, we issued $450.0 million aggregate principal amount of 6.0% Senior Notes due March 1, 2013 and $550.0 million aggregate principal amount of 6.875% Senior Notes due March 1, 2018 that were originally priced at 99.886% and 99.184% of par, respectively. The discount is amortized as additional interest expense over the period from issuance through maturity. These notes are senior unsecured obligations. Interest on the notes is payable March 1 and September 1 of each year. The notes may be redeemed at our option at any time at 100% of the principal amount plus accrued interest and a specified make-whole amount. The notes contain a change of control provision that may require us to purchase the notes under certain circumstances. There is also an interest rate adjustment feature that requires us to pay interest at an increased rate on the notes if the credit rating on the notes declines below investment grade. Upon the issuance of the 6.875% Senior Notes due in 2018, we entered into interest rate swap contracts where we received a fixed rate and paid a variable rate. These contracts were terminated in December 2008. Upon termination of these swaps, the carrying amount of the 6.875% Senior Notes due in 2018 was increased by $62.8 million and is being amortized using the effective interest rate method over the remaining life of the Senior Notes and is being recognized as a reduction of interest expense. As of December 31, 2013, $32.4 million remains to be amortized. On March 1, 2013, we repaid the $450.0 million principal amount of our 6.0% Senior Notes. Notes Payable to Fumedica In connection with our 2006 distribution agreement with Fumedica, we issued notes totaling 61.4 million Swiss Francs which were payable to Fumedica in varying amounts from June 2008 through June 2018. Our remaining note payable to Fumedica had a present value of 14.0 million Swiss Francs ($15.8 million) and 16.4 million Swiss Francs ($17.9 million) as of December 31, 2013 and 2012, respectively. Credit Facility In March 2013, we entered into a $750.0 million senior unsecured revolving credit facility, which we may choose to use for working capital and general corporate purposes. The terms of this revolving credit facility include a financial covenant that requires us to not exceed a maximum debt to EBITDA ratio. This facility terminates in March 2014. As of December 31, 2013, we had no outstanding borrowings and were in compliance with all covenants under this facility. Financing Arrangements During 2011 we recorded a financing obligation in relation to the construction of the two office buildings in Cambridge, Massachusetts. In July and November 2013, the construction of the two office buildings was completed and we derecognized the buildings and associated financing obligation. As of December 31, 2012, the amount recorded within our consolidated balance sheet as a financing obligation totaled approximately $86.5 million. For additional information related to these transactions, please read Note 11, Property, Plant & Equipment to these consolidated financial statements. Debt Maturity The total gross payments due under our debt arrangements are as follows:
(In millions) | As of December 31, 2013
2014 | $ | 3.5 |
2015 | 3.6 |
2016 | 3.6 |
2017 | 3.6 |
2018 | 553.6 |
2019 and thereafter | — |
Total | $ | 567.9 |
The fair value of our debt is disclosed in Note 8, Fair Value Measurements to these consolidated financial statements.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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