FINANCING ARRANGEMENTS

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS

Short-term debt obligations include:

Dollars in millions	September 30, 2023		December 31, 2022
Non-U.S. short-term debt obligations	$	164	$	176
Current portion of Long-term debt	4,873		3,897
Other	430		191
Total	$	5,467	$	4,264

Long-term debt and the current portion of Long-term debt include:

Dollars in millions	September 30, 2023		December 31, 2022
Principal value	$	36,329	$	38,234
Adjustments to principal value:
Fair value of interest rate swap contracts	(24)		(18)
Unamortized basis adjustment from swap terminations	85		97
Unamortized bond discounts and issuance costs	(265)		(284)
Unamortized purchase price adjustments of Celgene debt	885		924
Total	$	37,010	$	38,953
Current portion of Long-term debt	$	4,873	$	3,897
Long-term debt	32,137		35,056
Total	$	37,010	$	38,953

The fair value of Long-term debt was $31.7 billion as of September 30, 2023 and $34.9 billion as of December 31, 2022 valued using Level 2 inputs, which are based upon the quoted market prices for the same or similar debt instruments. The fair value of Short-term debt obligations approximates the carrying value due to the short maturities of the debt instruments.

During the nine months ended September 30, 2023, $1.9 billion of debt matured and was repaid including $750 million 2.750% Notes, $890 million 3.250% Notes and $239 million 7.150% Notes.

During the nine months ended September 30, 2022, $4.8 billion of debt matured and was repaid including $1.5 billion 2.600% Notes, $500 million Floating Rate Notes, $750 million 2.000% Notes, $1.0 billion 3.250% Notes and $1.0 billion 3.550% Notes.

During the nine months ended September 30, 2022, BMS issued an aggregate principal amount of $6.0 billion of debt with net proceeds of $5.9 billion. The notes rank equally in right of payment with all of BMS's existing and future senior unsecured indebtedness and are redeemable at any time, in whole, or in part, at varying specified redemption prices plus accrued and unpaid interest. In addition, BMS purchased an aggregate principal amount of $6.0 billion of certain of its debt securities for $6.6 billion of cash in tender offers and "make-whole" redemptions. In connection with these transactions, a $266 million net loss on debt redemption was recognized based on the carrying value of the debt and included in Other (income)/expense, net.

Interest payments were $932 million and $1.1 billion for the nine months ended September 30, 2023 and 2022, respectively, net of amounts related to interest rate swap contracts.

Credit Facilities

As of September 30, 2023, BMS had a five-year $5.0 billion revolving credit facility expiring in January 2028, which is extendable annually by one year with the consent of the lenders. This facility provides for customary terms and conditions with no financial covenants and may be used to provide backup liquidity for our commercial paper borrowings. No borrowings were outstanding under the revolving credit facility as of September 30, 2023 and December 31, 2022.