Debt and Credit Facilities

12 Months Ended

Dec. 31, 2019

DEBT AND CREDIT FACILITIES

The following table summarizes the carrying amount of our borrowings under various financing arrangements (in millions):



				December 31,
Type of Borrowing	Issue Date	Due Date	Interest Rate	2019		2018
Senior Unsecured	September 2017	March 2019	3-month LIBOR + 0.22%	$	—	$	750
Senior Unsecured	March 2014	April 2019	2.05%	—		500
Senior Unsecured	September 2017	September 2019	1.85%	—		999
Senior Unsecured	September 2017	September 2019	3-month LIBOR + 0.25%	—		499
Senior Unsecured	November 2014	February 2020	2.35%	500		499
Senior Unsecured	September 2015	September 2020	2.55%	1,999		1,996
Senior Unsecured	March 2011	April 2021	4.50%	998		997
Senior Unsecured	December 2011	December 2021	4.40%	1,248		1,247
Senior Unsecured	September 2016	March 2022	1.95%	499		498
Senior Unsecured	September 2015	September 2022	3.25%	998		997
Senior Unsecured	September 2016	September 2023	2.50%	747		746
Senior Unsecured	March 2014	April 2024	3.70%	1,745		1,744
Senior Unsecured	November 2014	February 2025	3.50%	1,746		1,745
Senior Unsecured	September 2015	March 2026	3.65%	2,734		2,731
Senior Unsecured	September 2016	March 2027	2.95%	1,245		1,245
Senior Unsecured	September 2015	September 2035	4.60%	991		990
Senior Unsecured	September 2016	September 2036	4.00%	741		740
Senior Unsecured	December 2011	December 2041	5.65%	995		995
Senior Unsecured	March 2014	April 2044	4.80%	1,734		1,734
Senior Unsecured	November 2014	February 2045	4.50%	1,731		1,730
Senior Unsecured	September 2015	March 2046	4.75%	2,217		2,216
Senior Unsecured	September 2016	March 2047	4.15%	1,725		1,724
Total debt, net				24,593		27,322
Less current portion				2,499		2,748
Total long-term debt, net				$	22,094	$	24,574

Senior Unsecured Notes

We did not enter into any borrowings in 2019 or 2018. In 2017, in connection with our acquisition of Kite, we issued $3.0 billion aggregate principal amount of senior unsecured notes, of which $750 million of principal balance was repaid at maturity in 2018 and the remaining $2.25 billion was repaid at maturity in 2019.

We collectively refer to our senior unsecured notes issued in September 2016 (the 2016 Notes), in September 2015 (the 2015 Notes), in March and November 2014 (the 2014 Notes) and in March and December 2011 (the 2011 Notes) as our Senior Notes. In 2019 and 2018, we repaid at maturity $500 million and $1.0 billion of principal balance related to the 2014 Notes and 2015 Notes, respectively. In February 2020, we repaid at maturity $500 million of principal balance related to the 2014 Notes.

Our Senior 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 as defined in the indenture. Our Senior Notes maturing after 2020 also have a call feature, exercisable at our option, to redeem the notes at par in whole or in part one to six months immediately preceding maturity. In each case, accrued and unpaid interest is also required to be redeemed to the date of redemption.

In the event of the occurrence of a change in control and a downgrade in the rating of our Senior 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 Senior Notes and as of December 31, 2019 and 2018, we were not in violation of any covenants.

Interest expense on our Senior Notes related to the contractual coupon rates and amortization of the debt discount and issuance costs was $1.0 billion, $1.1 billion and $1.0 billion in 2019, 2018 and 2017, respectively.

Credit Facilities

In 2017, in connection with our acquisition of Kite, we borrowed $6.0 billion against our term loan credit facility, of which $1.5 billion was repaid in 2017 and the remaining $4.5 billion was repaid in 2018. The term loan credit facility agreement was terminated in 2018.

In 2016, we entered into a $2.5 billion five-year revolving credit facility agreement maturing in May 2021 (the Five-Year Revolving Credit Agreement). The revolving credit facility can be used for working capital requirements and for general corporate purposes, including, without limitation, acquisitions. As of December 31, 2019 and 2018, there were no amounts outstanding under the Five-Year Revolving Credit Agreement.

The Five-Year Revolving Credit Agreement contains customary representations, warranties, affirmative and negative covenants and events of default. At December 31, 2019, we were not in violation of any covenants. Loans under the Five-Year Revolving Credit Agreement bear interest at either (i) the Eurodollar Rate plus the Applicable Percentage, or (ii) the Base Rate plus the Applicable Percentage, each as defined in the Five-Year Revolving Credit Agreement. We may terminate or reduce the commitments and may prepay any loans under the Five-Year Revolving Credit Agreement in whole or in part at any time without premium or penalty.

Contractual Maturities of Financing Obligations

As of December 31, 2019, the aggregate future principal maturities of financing obligations for each of the next five years, based on contractual due dates, are as follows (in millions):



	2020		2021		2022		2023		2024
Contractual Maturities	$	2,500	$	2,250	$	1,500	$	750	$	1,750