INDEBTEDNESS

3 Months Ended

Mar. 31, 2020

The Company’s debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for the 2012 Senior Notes, the 2017 Senior Notes due 2021, the 2017 Senior Notes due 2023, and the 2017 Senior Notes due 2028 which are recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge the fair value of the note.

The following table summarizes total indebtedness:


March 31, 2020
Notes Payable:	Principal Amount		Fair Value of Interest Rate Swaps ⁽¹⁾		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
4.50% 2012 Senior Notes, due 2022	$	500	$	18	$	(1)	$	(1)	$	516
4.875% 2013 Senior Notes, due 2024	500		—		(1)		(1)		498
5.25% 2014 Senior Notes (30-Year), due 2044	600		—		3		(5)		598
1.75% 2015 Senior Notes, due 2027	549		—		—		(3)		546
2.75% 2017 Senior Notes, due 2021	500		21		—		(1)		520
2.625% 2017 Senior Notes, due 2023	500		15		(1)		(2)		512
3.25% 2017 Senior Notes, due 2028	500		31		(4)		(3)		524
3.25% 2018 Senior Notes, due 2021	300		—		—		(1)		299
4.25% 2018 Senior Notes, due 2029	400		—		(3)		(3)		394
4.875% 2018 Senior Notes, due 2048	400		—		(7)		(4)		389
0.950% 2019 Senior Notes, due 2030	823		—		(3)		(6)		814
3.75% 2020 Senior Note, due 2025	700		—		(1)		(6)		693
Commercial Paper	487		—		(2)		—		485
Total debt	$	6,759	$	85	$	(20)	$	(36)	$	6,788
Current portion									(485)
Total long-term debt									$	6,303


December 31, 2019
Notes Payable:	Principal Amount		Fair Value of Interest Rate Swaps ⁽¹⁾		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value

4.50% 2012 Senior Notes, due 2022	$	500	$	9	$	(1)	$	(1)	$	507
4.875% 2013 Senior Notes, due 2024	500		—		(1)		(2)		497
5.25% 2014 Senior Notes (30-Year), due 2044	600		—		4		(5)		599
1.75% 2015 Senior Notes, due 2027	561		—		—		(3)		558
2.75% 2017 Senior Notes, due 2021	500		11		(1)		(2)		508
2.625% 2017 Senior Notes, due 2023	500		7		(1)		(2)		504
3.25% 2017 Senior Notes, due 2028	500		—		(4)		(3)		493
3.25% 2018 Senior Notes, due 2021	300		—		—		(1)		299
4.25% 2018 Senior Notes, due 2029	400		—		(3)		(3)		394
4.875% 2018 Senior Notes, due 2048	400		—		(7)		(4)		389
0.950% 2019 Senior Notes, due 2030	842		—		(3)		(6)		833
Total long-term debt	$	5,603	$	27	$	(17)	$	(32)	$	5,581

⁽¹⁾ The Company has entered into interest rate swaps on the 2012 Senior Notes, the 2017 Senior Notes due 2021, the 2017 Senior Notes due 2023 and the 2017 Senior Notes due 2028 which are more fully discussed in Note 10 above. These amounts represent the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt.

Commercial Paper

As of March 31, 2020, the Company has CP borrowings outstanding of $485 million with a weighted average maturity date at the time of issuance of 77 days. At March 31, 2020, the weighted average remaining maturity and interest rate on CP outstanding was 58 days and 2.38% respectively.

Notes Payable

On March 25, 2020, the Company issued $700 million aggregate principal amount of senior unsecured rate notes in a public offering. The 2020 Senior Notes (5-year) bear interest at an annual fixed rate of 3.75% and mature on March 24, 2025.

At March 31, 2020, the Company was in compliance with all covenants contained within all of the debt agreements. All the debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of March 31, 2020, there were no such cross defaults.

The repayment schedule for the Company’s borrowings is as follows:


Year Ending December 31,	2012 Senior Notes due 2022		2013 Senior Notes due 2024		2014 Senior Notes (30-Year) due 2044		2015 Senior Notes due 2027		2017 Senior Notes due 2021		2017 Senior Notes due 2023		2017 Senior Notes due 2028		2018 Senior Notes due 2021		2018 Senior Notes due 2029		2018 Senior Notes due 2048		2019 Senior Notes due 2030		2020 Senior Note due 2025		Commercial Paper		Total
2020 (After March 31,)	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	487	$	487
2021	—		—		—		—		500		—		—		300		—		—		—		—		—		$	800
2022	500		—		—		—		—		—		—		—		—		—		—		—		—		$	500
2023	—		—		—		—		—		500		—		—		—		—		—		—		—		$	500
2024	—		500		—		—		—		—		—		—		—		—		—		—		—		$	500
Thereafter	—		—		600		549		—		—		500		—		400		400		823		700		—		$	3,972
Total	$	500	$	500	$	600	$	549	$	500	$	500	$	500	$	300	$	400	$	400	$	823	$	700	$	487	$	6,759

Interest expense, net

The following table summarizes the components of interest as presented in the consolidated statements of operations:


	Three Months Ended March 31,
	2020		2019
Income	$	4	$	5
Expense on borrowings	(31)		(46)
UTPs and other tax related liabilities	(8)		(6)
Net periodic pension costs - interest component	(5)		(5)
Total	$	(40)	$	(52)

The following table shows the cash paid for interest:


	Three Months Ended March 31,
	2020		2019
Interest paid	$	49	$	73

The fair value and carrying value of the Company’s debt as of March 31, 2020 and December 31, 2019 are as follows:


	March 31, 2020						December 31, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
4.50% 2012 Senior Notes, due 2022	$	516	$	521	$	507	$	531
4.875% 2013 Senior Notes, due 2024	498		536		497		551
5.25% 2014 Senior Notes (30-Year), due 2044	598		738		599		757
1.75% 2015 Senior Notes, due 2027	546		577		558		604
2.75% 2017 Senior Notes, due 2021	520		497		508		507
2.625% 2017 Senior Notes, due 2023	512		496		504		507
3.25% 2017 Senior Notes, due 2028	524		509		493		523
3.25% 2018 Senior Notes, due 2021	299		301		299		306
4.25% 2018 Senior Notes, due 2029	394		445		394		453
4.875% 2018 Senior Notes, due 2048	389		463		389		492
0.950% 2019 Senior Notes, due 2030	814		769		833		847
3.75% 2020 Senior Note, due 2025	693		732		—		—
Total	$	6,303	$	6,584	$	5,581	$	6,078

The fair value of the Company’s long-term debt is estimated based on quoted market prices for similar instruments. Accordingly, the inputs used to estimate the fair value of the Company’s long-term debt are classified as Level 2 inputs within the fair value hierarchy.