INDEBTEDNESS

3 Months Ended

Mar. 31, 2021

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 due 2022, the 2017 Senior Notes due 2023, the 2017 Senior Notes due 2028 and the 2020 Senior Notes due 2025, 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, 2021
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	$	12	$	(1)	$	(1)	$	510
4.875% 2013 Senior Notes, due 2024	500		—		(1)		(1)		498
5.25% 2014 Senior Notes, due 2044	600		—		3		(5)		598
1.75% 2015 Senior Notes, due 2027	588		—		—		(2)		586
2.625% 2017 Senior Notes, due 2023	500		10		—		(1)		509
3.25% 2017 Senior Notes, due 2028	500		16		(4)		(3)		509
4.25% 2018 Senior Notes, due 2029	400		—		(2)		(3)		395
4.875% 2018 Senior Notes, due 2048	400		—		(6)		(4)		390
0.950% 2019 Senior Notes, due 2030	881		—		(3)		(6)		872
3.75% 2020 Senior Notes, due 2025	700		(6)		(1)		(4)		689
3.25% 2020 Senior Notes, due 2050	300		—		(4)		(3)		293
2.55% 2020 Senior Notes, due 2060	500		—		(4)		(5)		491

Total long-term debt	$	6,369	$	32	$	(23)	$	(38)	$	6,340


December 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	$	14	$	(1)	$	(1)	$	512
4.875% 2013 Senior Notes, due 2024	500		—		(1)		(1)		498
5.25% 2014 Senior Notes, due 2044	600		—		3		(5)		598
1.75% 2015 Senior Notes, due 2027	612		—		—		(2)		610
2.625% 2017 Senior Notes, due 2023	500		12		—		(2)		510
3.25% 2017 Senior Notes, due 2028	500		31		(4)		(3)		524
4.25% 2018 Senior Notes, due 2029	400		—		(3)		(3)		394
4.875% 2018 Senior Notes, due 2048	400		—		(6)		(4)		390
0.950% 2019 Senior Notes, due 2030	918		—		(3)		(6)		909
3.75% 2020 Senior Notes, due 2025	700		(1)		(1)		(5)		693
3.25% 2020 Senior Notes, due 2050	300		—		(4)		(3)		293
2.55% 2020 Senior Notes, due 2060	500		—		(4)		(5)		491
Total long-term debt	$	6,430	$	56	$	(24)	$	(40)	$	6,422

(1) The fair value of interest rate swaps in the table above represents the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt.

Notes Payable

At March 31, 2021, 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, 2021, 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 due 2044		2015 Senior Notes due 2027		2017 Senior Notes due 2023		2017 Senior Notes due 2028		2018 Senior Notes due 2029		2018 Senior Notes due 2048		2019 Senior Notes due 2030		2020 Senior Notes due 2025		2020 Senior Notes due 2050		2020 Senior Notes due 2060		Total
2021 (After March 31,)	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2022	500		—		—		—		—		—		—		—		—		—		—		—		500
2023	—		—		—		—		500		—		—		—		—		—		—		—		500
2024	—		500		—		—		—		—		—		—		—		—		—		—		500
2025	—		—		—		—		—		—		—		—		—		700		—		—		700
Thereafter	—		—		600		588		—		500		400		400		881		—		300		500		4,169
Total	$	500	$	500	$	600	$	588	$	500	$	500	$	400	$	400	$	881	$	700	$	300	$	500	$	6,369

Interest expense, net

The following table summarizes the components of interest as presented in the consolidated statements of operations and the cash paid for interest:


	Three Months Ended March 31,
		2021		2020
Income		$	3	$	4
Expense on borrowings		(41)		(31)
Income (expense) on UTPs and other tax related liabilities(2)		35		(8)
Net periodic pension costs - interest component		(4)		(5)
Interest expense, net		$	(7)	$	(40)
Interest paid(1)		$	73	$	49

(1) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 8.

(2) Income(expense) on UTPs and other tax related liabilities in 2021 includes a $40 million benefit relating to the reversal of tax-related interest accruals pursuant to the resolution of tax matters.

The fair value and carrying value of the Company’s debt as of March 31, 2021 and December 31, 2020 are as follows:


	March 31, 2021				December 31, 2020
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
4.50% 2012 Senior Notes, due 2022	$	510	$	525	$	512	$	530
4.875% 2013 Senior Notes, due 2024	498		555		498		562
5.25% 2014 Senior Notes, due 2044	598		775		598		828
1.75% 2015 Senior Notes, due 2027	586		641		610		674
2.625% 2017 Senior Notes, due 2023	509		518		510		522
3.25% 2017 Senior Notes, due 2028	509		537		524		561
4.25% 2018 Senior Notes, due 2029	395		453		394		480
4.875% 2018 Senior Notes, due 2048	390		493		390		544
0.950% 2019 Senior Notes, due 2030	872		915		909		974
3.75% 2020 Senior Notes, due 2025	689		764		693		785
3.25% 2020 Senior Notes, due 2050	293		292		293		329
2.55% 2020 Senior Notes, due 2060	491		404		491		467
Total	$	6,340	$	6,872	$	6,422	$	7,256

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.