INDEBTEDNESS

9 Months Ended

Sep. 30, 2023

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 certain debt as depicted in the table below, which is 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:

September 30, 2023
Notes Payable:	Principal Amount		Fair Value of Interest Rate Swaps (1)		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
5.25% 2014 Senior Notes, due 2044	$	600	$	(46)	$	3	$	(4)	$	553
1.75% 2015 Senior Notes, due 2027	529		—		—		(1)		528
3.25% 2017 Senior Notes, due 2028	500		(37)		(2)		(2)		459
4.25% 2018 Senior Notes, due 2029	400		(49)		(2)		(2)		347
4.875% 2018 Senior Notes, due 2048	400		(48)		(6)		(3)		343
0.950% 2019 Senior Notes, due 2030	794		—		(2)		(4)		788
3.75% 2020 Senior Notes, due 2025	700		(22)		—		(2)		676
3.25% 2020 Senior Notes, due 2050	300		—		(4)		(3)		293
2.55% 2020 Senior Notes, due 2060	300		—		(2)		(3)		295
2.00% 2021 Senior Notes, due 2031	600		—		(6)		(4)		590
2.75% 2021 Senior Notes, due 2041	600		—		(13)		(5)		582
3.10% 2021 Senior Notes, due 2061	500		—		(7)		(5)		488
3.75% 2022 Senior Notes, due 2052	500		(56)		(8)		(5)		431
4.25% 2022 Senior Notes, due 2032	500		(16)		(2)		(4)		478
Total long-term debt	$	7,223	$	(274)	$	(51)	$	(47)	$	6,851

December 31, 2022
Notes Payable:	Principal Amount		Fair Value of Interest Rate Swaps (1)		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
4.875% 2013 Senior Notes, due 2024	$	500	$	—	$	(1)	$	(1)	$	498
5.25% 2014 Senior Notes, due 2044	600		(42)		3		(4)		557
1.75% 2015 Senior Notes, due 2027	534		—		—		(2)		532
3.25% 2017 Senior Notes, due 2028	500		(37)		(3)		(2)		458
4.25% 2018 Senior Notes, due 2029	400		(42)		(2)		(2)		354
4.875% 2018 Senior Notes, due 2048	400		(44)		(6)		(4)		346
0.950% 2019 Senior Notes, due 2030	800		—		(2)		(4)		794
3.75% 2020 Senior Notes, due 2025	700		(27)		(1)		(3)		669
3.25% 2020 Senior Notes, due 2050	300		—		(4)		(3)		293
2.55% 2020 Senior Notes, due 2060	300		—		(2)		(3)		295
2.00% 2021 Senior Notes, due 2031	600		—		(7)		(4)		589
2.75% 2021 Senior Notes, due 2041	600		—		(13)		(5)		582
3.10% 2021 Senior Notes, due 2061	500		—		(7)		(5)		488
3.75% 2022 Senior Notes, due 2052	500		(35)		(8)		(5)		452
4.25% 2022 Senior Notes, due 2032	500		(12)		(2)		(4)		482
Total long-term debt	$	7,734	$	(239)	$	(55)	$	(51)	$	7,389

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

Notes Payable

In the first nine months of 2023, the Company fully repaid $500 million of the 2013 Senior Notes due 2024.

At September 30, 2023, 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 September 30, 2023, there were no such cross defaults.

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

Year Ending December 31,	Year Ending Total
2023 (After September 30,)	$	—
2024	—
2025	700
2026	—
2027	529
Thereafter	5,994
Total	$	7,223

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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Income	$	19	$	5	$	44	$	9
Expense on borrowings(1)	(75)		(54)		(220)		(152)
Income (expense) on UTPs and other tax related liabilities(2)	(4)		(5)		10		(11)
Net periodic pension costs - interest component	(6)		(4)		(19)		(12)
Interest expense, net	$	(66)	$	(58)	$	(185)	$	(166)
Interest paid(3)	$	87	$	77	$	230	$	167

(1) Expense on borrowings includes interest on long-term debt, as well as realized gains/losses related to interest rate swaps and cross currency swaps, which are more fully discussed in Note 8.

(2) The amount for the nine months ended September 30, 2023 reflects a $22 million reduction of tax-related interest expense primarily related to the resolutions of outstanding tax matters.

(3) Interest paid includes net settlements on interest rate swaps, which are more fully discussed in Note 8.

The fair value and carrying value of the Company’s debt as of September 30, 2023 and December 31, 2022 are as follows:

	September 30, 2023				December 31, 2022
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Total debt	$	6,851	$	5,844	$	7,389	$	6,564

The fair value of the Company’s debt is estimated based on quoted prices in active markets as of the reporting date, which are considered Level 1 inputs within the fair value hierarchy.