XML 83 R19.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Indebtedness | 12 Months Ended
--- | ---
Dec. 31, 2017
Debt Disclosure [Abstract] |
Indebtedness | Indebtedness Our indebtedness is summarized as follows:
| As of December 31,
(In millions) | 2017 |  | 2016
Current portion: |  |  |
Notes payable to Fumedica | $ | 3.2 |  |  | $ | 3.0 |
Financing arrangement for the purchase of the RTP facility | — |  |  | 1.7 |
Current portion of notes payable and other financing arrangements | $ | 3.2 |  |  | $ | 4.7 |
Non-current portion: |  |  |
6.875% Senior Notes due March 1, 2018 | $ | — |  |  | $ | 558.5 |
2.900% Senior Notes due September 15, 2020 | 1,482.4 |  |  | 1,485.3 |
3.625% Senior Notes due September 15, 2022 | 994.3 |  |  | 993.2 |
4.050% Senior Notes due September 15, 2025 | 1,736.3 |  |  | 1,734.8 |
5.200% Senior Notes due September 15, 2045 | 1,722.0 |  |  | 1,721.5 |
Notes payable to Fumedica | — |  |  | 3.0 |
Financing arrangement for the purchase of the RTP facility | — |  |  | 16.4 |
Non-current portion of notes payable and other financing arrangements | $ | 5,935.0 |  |  | $ | 6,512.7 |
6.875% Senior Notes due March 1, 2018 On March 4, 2008, we issued $550.0 million aggregate principal amount of 6.875% Senior Notes due March 1, 2018 at 99.184% of par. These notes were senior unsecured obligations. We also 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 contracts, the carrying amount of these notes were increased by $62.8 million with this amount being amortized using the effective interest rate method over the remaining life of the Senior Notes and recognized as a reduction of interest expense. In November 2017 we redeemed these notes prior to their maturity and recognized a net charge of $5.2 million upon the extinguishment of these notes. This charge, which was recognized in interest expense in other income (expense) net in our consolidated statements of income for the year ended December 31, 2017, reflects the payment of a $7.7 million early call premium and the write off of remaining unamortized original debt issuance costs and discount balances, partially offset by a $2.9 million gain related to the remaining unamortized balance of the interest rate swap liability discussed above. 2015 Senior Notes The following is a summary of our principal indebtedness as of December 31, 2017:
• | $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 $47.5 million have been recorded as a reduction to the carrying amount of the debt in 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. These Senior 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. These 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 $10.1 million related to changes in the fair value of these contracts. For additional information on our interest rate contracts, please read Note 10, Derivative Instruments, to these consolidated financial statements. Notes Payable to Fumedica In connection with our 2006 distribution agreement with Fumedica, we issued notes totaling 61.4 million Swiss Francs that are payable to Fumedica in varying amounts from June 2008 through June 2018. Our remaining note payable to Fumedica, payable in June 2018, had a carrying value of 3.1 million Swiss Francs ($3.2 million) and 6.2 million Swiss Francs ($6.0 million) as of December 31, 2017 and 2016, 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, 2017, 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 for Eisai's oral solid dose products manufacturing facility in RTP, NC. In December 2017 we completed the purchase of this facility for $17.2 million and derecognized the remaining unamortized portion of the financing obligation from our consolidated balance sheet as of that date. For additional information on this transaction, please read Note 11, 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, 2017
2018 | $ | 3.2 |
2019 | — |
2020 | 1,500.0 |
2021 | — |
2022 | 1,000.0 |
2023 and thereafter | 3,500.0 |
Total | $ | 6,003.2 |
The fair value of our debt is disclosed in Note 8, Fair Value Measurements, to these consolidated financial statements.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration