Long-term Debt and Interest Expense (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of components of long-term debt

The components of long-term debt, including the effects of issuance costs and issuance discounts, are as follows:


	As of December 31, 2021		As of December 31, 2020
	(in millions)
Outstanding debt principal balances:

3.450% senior notes due 2021	$	—	$	140
3.950% senior notes due 2022	244		244
0.550% senior notes due 2023	750		—
0.750% senior callable notes due 2024	750		—
0.250% convertible senior notes due 2025	1,323		1,323
1.125% senior notes due 2026	750		—
4.450% senior notes due 2026	500		500
5.625% senior notes due 2027 (a)	179		—
7.200% senior notes due 2028	241		241
4.125% senior notes due 2028 (a)	138		—
1.900% senior notes due 2030	1,100		1,100
2.150% senior notes due 2031	1,000		—
	6,975		3,548
Issuance costs and discounts, net	(43)		(248)
Total debt	6,932		3,300
Less current portion of long-term debt	244		140
Long-term debt	$	6,688	$	3,160

______________________

(a)Issued by Parsley and Parsley LLC, each a wholly owned subsidiary of the Company.

Schedule of convertible notes

nterest expense recognized on the Convertible Notes is as follows:


	Year Ended December 31,
	2021		As of	2020
	(in millions)
Contractual coupon interest	$	3		$	2
Amortization of issuance discount (a)	—			28
Amortization of capitalized loan fees	5			2
	$	8		$	32

______________________

(a)Upon adoption of ASU 2020-06, the Company no longer amortizes the issuance discount associated with the Convertible Notes to interest expense over the life of the Convertible Notes. See Note 2 for additional information.

Schedule of principal maturities of long-term debt

Principal payments scheduled to be made on the Company's long-term debt are as follows (in millions):


2022	$	244
2023	$	750
2024	$	750
2025	$	1,323
2026	$	1,250
Thereafter	$	2,658

Schedule of interest expense

Interest expense activity is as follows:


	Year Ended December 31,
	2021		2020		2019
	(in millions)
Cash payments for interest	$	136	$	119	$	121
Amortization of issuance discounts (premiums), net	(4)		29		1
Amortization of capitalized loan fees	14		5		4
Net changes in accruals	17		(19)		—
Interest incurred	163		134		126
Less capitalized interest	(2)		(5)		(5)
	$	161	$	129	$	121

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details