Debt and Other Obligations

6 Months Ended

Jun. 30, 2019

Debt and Other Obligations [Abstract]

The table below sets forth the Company's debt and other obligations as of June 30, 2019.



	Original Issue Date		Contractual Maturity Date^(a)		Balance as of June 30, 2019			Balance as of December 31, 2018		Stated Interest Rate as of June 30, 2019^(a)
Tower Revenue Notes, Series 2015-1	May 2015		May 2042	_(c)	$	298		298		3.2	%
Tower Revenue Notes, Series 2015-2	May 2015		May 2045	_(c)	694			693		3.7	%
Tower Revenue Notes, Series 2018-1	July 2018		July 2043	_(c)	248			247		3.7	%
Tower Revenue Notes, Series 2018-2	July 2018		July 2048	_(c)	742			742		4.2	%
3.849% Secured Notes	Dec. 2012		Apr. 2023		995			994		3.9	%
Secured Notes, Series 2009-1, Class A-1	July 2009		Aug. 2019		—			12		N/A
Secured Notes, Series 2009-1, Class A-2	July 2009		Aug. 2029		70			70		9.0	%
Finance leases and other obligations	Various		Various	_(d)	235			227		Various
Total secured debt					$	3,282		$	3,283
2016 Revolver	Jan. 2016		June 2024	_(i)	$	485	_{(e) (i)}	$	1,075	3.5	%	_(f)
2016 Term Loan A	Jan. 2016		June 2024	_(i)	2,339			2,354		3.5	%	_(f)
2019 Commercial Paper Notes	Various	_(h)	Various	_(h)	500			—		Various		_(b)
5.250% Senior Notes	Oct. 2012		Jan. 2023		1,642			1,641		5.3	%
4.875% Senior Notes	Apr. 2014		Apr. 2022		845			844		4.9	%
3.400% Senior Notes	Feb./May 2016		Feb. 2021		850			850		3.4	%
4.450% Senior Notes	Feb. 2016		Feb. 2026		893			892		4.5	%
3.700% Senior Notes	May 2016		June 2026		744			744		3.7	%
2.250% Senior Notes	Sept. 2016		Sept. 2021		697			697		2.3	%
4.000% Senior Notes	Feb. 2017		Mar. 2027		495			494		4.0	%
4.750% Senior Notes	May 2017		May 2047		343			343		4.8	%
3.200% Senior Notes	Aug. 2017		Sept. 2024		744			743		3.2	%
3.650% Senior Notes	Aug. 2017		Sept. 2027		992			992		3.7	%
3.150% Senior Notes	Jan. 2018		July 2023		743			742		3.2	%
3.800% Senior Notes	Jan. 2018		Feb. 2028		989			988		3.8	%
4.300% Senior Notes	Feb. 2019		Feb. 2029	_(g)	591			—		4.3	%
5.200% Senior Notes	Feb. 2019		Feb. 2049	_(g)	395			—		5.2	%
Total unsecured debt					$	14,287		$	13,399
Total debt and other obligations					17,569			16,682
Less: current maturities and short-term debt and other current obligations					98			107
Non-current portion of long-term debt and other long-term obligations					$	17,471		$	16,575


(a)	See the 2018 10-K, including note 8, for additional information regarding the maturity and principal amortization provisions and interest rates relating to the Company's indebtedness.


(b)	The weighted-average interest rate for the outstanding commercial paper under the CP Program, as defined below, was 2.8%.

(c)

If the respective series of Tower Revenue Notes are not paid in full on or prior to an applicable anticipated repayment date, then Excess Cash Flow (as defined in the indenture) of the issuers of such notes will be used to repay principal of the applicable series and class of the Tower Revenue Notes, and additional interest (of an additional approximately 5% per annum) will accrue on the respective Tower Revenue Notes. As of June 30, 2019, the Tower Revenue Notes have principal amounts of $300 million, $250 million, $700 million and $750 million, with anticipated repayment dates in 2022, 2023, 2025 and 2028, respectively.


(d)	The Company's finance leases and other obligations relate to land, fiber, vehicles, and other assets and bear interest rates ranging up to 10% and mature in periods ranging from less than one year to approximately 30 years.


(e)	As of June 30, 2019, the undrawn availability under the 2016 Revolver was $4.5 billion.

(f)

The 2016 Revolver and senior unsecured term loan A facility ("2016 Term Loan A") bear interest at a rate per annum equal to LIBOR plus a credit spread ranging from 1.000% to 1.750%, based on the Company's senior unsecured debt rating. The Company pays a commitment fee ranging from 0.125% to 0.350%, based on the Company's senior unsecured debt rating, per annum on the undrawn available amount under the 2016 Revolver.


(g)	In February 2019, the Company issued $1.0 billion aggregate principal amount of senior unsecured notes ("February 2019 Senior Notes"), which consisted of (1) $600 million aggregate amount of 4.300% senior unsecured notes due February 2029 and (2) $400 million aggregate principle amount of 5.200% senior unsecured notes due February 2049.


(h)	In April 2019, the Company established an unsecured commercial paper program ("CP Program"), pursuant to which the Company may issue short-term, unsecured commercial paper notes. Notes under the CP Program may be issued, repaid and re-issued from time to time, with an aggregate principal amount

of commercial paper notes ("2019 Commercial Paper Notes") outstanding under the CP Program at any time not to exceed $1.0 billion. The net proceeds of the 2019 Commercial Paper Notes are expected to be used for general corporate purposes. The maturities of the 2019 Commercial Paper Notes will vary but may not exceed 397 days from the date of issue. The 2019 Commercial Paper Notes are issued under customary terms in the commercial paper market and are issued at a discount from par or, alternatively, can be issued at par and bear varying interest rates on a fixed or floating basis. For the three months ended June 30, 2019, the Company had net issuances of $500 million under the CP Program. At any point in time, the Company intends to maintain available commitments under its 2016 Revolver in an amount at least equal to the amount of 2019 Commercial Paper Notes outstanding. While any outstanding commercial paper issuances generally have short-term maturities, the Company classifies the outstanding issuances as long-term based on its ability and intent to refinance the outstanding issuances on a long-term basis.


(i)	In June 2019, the Company entered into an amendment to the Credit Facility to (1) increase commitments on the 2016 Revolver by $750 million, for total 2016 Revolver commitments of $5.0 billion, and (2) extend the maturity of the Credit Facility from June 2023 to June 2024.

Contractual Maturities

The following are the scheduled contractual maturities of the total debt and other long-term obligations of the Company outstanding as of June 30, 2019. These maturities reflect contractual maturity dates and do not consider the principal payments that will commence following the anticipated repayment dates on the Tower Revenue Notes.



	Six Months Ending December 31,			Years Ending December 31,												Unamortized Adjustments, Net			Total Debt and Other Obligations Outstanding
	2019			2020		2021		2022		2023		Thereafter		Total Cash Obligations		Unamortized Adjustments, Net			Total Debt and Other Obligations Outstanding
Scheduled contractual maturities	$	552	^(a)	$	98	$	1,672	$	998	$	3,602	$	10,759	$	17,681	$	(112	)	$	17,569


(a)	Predominantly consists of outstanding indebtedness under the Company's CP Program. Such amounts may be issued, repaid, or re-issued from time to time.

Interest Expense and Amortization of Deferred Financing Costs

The components of interest expense and amortization of deferred financing costs are as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Interest expense on debt obligations	$	169		$	157		$	336		$	314
Amortization of deferred financing costs and adjustments on long-term debt	5			5			10			11
Other, net of capitalized interest	(5		)	(4		)	(9		)	(7		)
Total	$	169		$	158		$	337		$	318