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INDEBTEDNESS
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
INDEBTEDNESS INDEBTEDNESS
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:
June 30, 2021
Notes Payable:Principal Amount
Fair Value of Interest Rate Swaps (1)
Unamortized (Discount) Premium
Unamortized Debt Issuance CostsCarrying Value
4.50% 2012 Senior Notes, due 2022
$500 $10 $— $— $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
593 — — (2)591 
2.625% 2017 Senior Notes, due 2023
500 9 — (1)508 
3.25% 2017 Senior Notes, due 2028
500 18 (4)(3)511 
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
889 — (3)(6)880 
3.75% 2020 Senior Notes, due 2025
700 (5)(1)(4)690 
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$6,382 $32 $(22)$(37)$6,355 
December 31, 2020
Notes Payable:Principal Amount
Fair Value of Interest Rate Swaps (1)
Unamortized (Discount) Premium
Unamortized Debt Issuance CostsCarrying 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 June 30, 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 June 30, 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 20222013 Senior Notes due 20242014 Senior Notes due 20442015 Senior Notes due 20272017 Senior Notes due 20232017 Senior Notes due 20282018 Senior Notes due 20292018 Senior Notes due 20482019 Senior Notes due 20302020 Senior Notes due 20252020 Senior Notes due 20502020 Senior Notes due 2060Total
2021 (After June 30,)
$— $— $— $— $— $— $— $— $— $— $— $— $— 
2022500 — — — — — — — — — — — 500 
2023— — — — 500 — — — — — — — 500 
2024— 500 — — — — — — — — — — 500 
2025— — — — — — — — — 700 — — 700 
Thereafter— — 600 593 — 500 400 400 889 — 300 500 4,182 
Total$500 $500 $600 $593 $500 $500 $400 $400 $889 $700 $300 $500 $6,382 
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
June 30,		Six Months Ended
June 30,
2021202020212020
Income$1 $3 $4 $7 
Expense on borrowings(41)(48)(82)(79)
Income (expense) on UTPs and other tax related liabilities(2)
(5)(10)30 (18)
Net periodic pension costs - interest component(4)(5)(8)(10)
Interest expense, net$(49)$(60)$(56)$(100)
Interest paid(1)
$13 $23 $86 $72 
(1) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 9.
(2) Income (expense) on UTPs and other tax related liabilities for the six months ended June 30, 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 June 30, 2021 and December 31, 2020 are as follows:
June 30, 2021December 31, 2020
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
4.50% 2012 Senior Notes, due 2022
$510 $522 $512 $530 
4.875% 2013 Senior Notes, due 2024
498 551 498 562 
5.25% 2014 Senior Notes, due 2044
598 808 598 828 
1.75% 2015 Senior Notes, due 2027
591 643 610 674 
2.625% 2017 Senior Notes, due 2023
508 516 510 522 
3.25% 2017 Senior Notes, due 2028
511 550 524 561 
4.25% 2018 Senior Notes, due 2029
395 465 394 480 
4.875% 2018 Senior Notes, due 2048
390 527 390 544 
0.950% 2019 Senior Notes, due 2030
880 919 909 974 
3.75% 2020 Senior Notes, due 2025
690 768 693 785 
3.25% 2020 Senior Notes, due 2050
293 313 293 329 
2.55% 2020 Senior Notes, due 2060
491 442 491 467 
Total$6,355 $7,024 $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.