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Indebtedness | 12 Months Ended
--- | ---
Dec. 31, 2016
Debt Disclosure [Abstract] |
Indebtedness | Indebtedness Our indebtedness is summarized as follows:
| As of December 31,
(In millions) | 2016 |  | 2015
Current portion: |  |  |
Notes payable to Fumedica | $ | 3.0 |  |  | $ | 3.1 |
Financing arrangement for the purchase of the RTP facility | 1.7 |  |  | 1.7 |
Current portion of notes payable and other financing arrangements | $ | 4.7 |  |  | $ | 4.8 |
Non-current portion: |  |  |
6.875% Senior Notes due March 1, 2018 | $ | 558.5 |  |  | $ | 565.3 |
2.900% Senior Notes due September 15, 2020 | 1,485.3 |  |  | 1,485.5 |
3.625% Senior Notes due September 15, 2022 | 993.2 |  |  | 992.2 |
4.050% Senior Notes due September 15, 2025 | 1,734.8 |  |  | 1,733.4 |
5.200% Senior Notes due September 15, 2045 | 1,721.5 |  |  | 1,721.1 |
Notes payable to Fumedica | 3.0 |  |  | 5.9 |
Financing arrangement for the purchase of the RTP facility | 16.4 |  |  | 18.1 |
Non-current portion of notes payable and other financing arrangements | $ | 6,512.7 |  |  | $ | 6,521.5 |
The following is a summary of our principal indebtedness as of December 31, 2016:
• | $550.0 million aggregate principal amount of 6.875% Senior Notes due March 1, 2018, valued at 99.184% of par;
• | $1.5 billion aggregate principal amount of 2.90% Senior Notes due September 15, 2020, valued at 99.792% of par;
• | $1.0 billion aggregate principal amount of 3.625% Senior Notes due September 15, 2022, valued at 99.920% of par;
• | $1.75 billion aggregate principal amount of 4.05% Senior Notes due September 15, 2025, valued at 99.764% of par; and
• | $1.75 billion aggregate principal amount of 5.20% Senior Notes due September 15, 2045, valued at 99.294% of par.
The costs associated with these offerings of approximately $52.0 million have been recorded as a reduction to the carrying amount of the debt on our consolidated balance sheet. These costs along with the discounts will be amortized as additional interest expense using the effective interest rate method over the period from issuance through maturity. These notes are senior unsecured obligations. 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 6.875% Senior Notes due in 2018 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. The remaining Senior Notes contain a change of control provision that may require us to purchase the notes at a price equal to 101% of the principal amount plus accrued and unpaid interest to the date of purchase under certain circumstances. In connection with the 2.90% Senior Notes offering due in 2020, we entered into interest rate swap contracts. The carrying value of the 2.90% Senior Notes includes approximately $4.6 million related to changes in the fair value of these contracts. For additional information, please read Note 9, Derivative Instruments, to these consolidated financial statements. In connection with 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, 2016, $9.9 million remains to be amortized. 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 carrying value of 6.2 million Swiss Francs ($6.0 million) and 8.9 million Swiss Francs ($9.0 million) as of December 31, 2016 and 2015, respectively. Credit Facility In August 2015 we entered into a $1.0 billion, five-year senior unsecured revolving credit facility under which we are permitted to draw funds for working capital and general corporate purposes. The terms of the revolving credit facility include a financial covenant that requires us not to exceed a maximum consolidated leverage ratio. As of December 31, 2016, we had no outstanding borrowings and were in compliance with all covenants under this facility. Financing Arrangement During 2015 we recorded a financing obligation in relation to the amendment of our lease agreement of Eisai's oral solid dose products manufacturing facility in RTP, North Carolina where we manufacture our and Eisai's oral solid dose products. As of December 31, 2016 and 2015, the financing obligation totaled approximately $18.1 million and $19.8 million, respectively. For additional information, please read Note 10, Property, Plant and Equipment to these consolidated financial statements. Debt Maturity The total gross payments, excluding our financing arrangement, due under our debt arrangements are as follows:
(In millions) | As of December 31, 2016
2017 | $ | 3.1 |
2018 | 553.1 |
2019 | — |
2020 | 1,500.0 |
2021 | — |
2022 and thereafter | 4,500.0 |
Total | $ | 6,556.2 |
The fair value of our debt is disclosed in Note 7, 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 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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