Long-Term Debt and Credit Facilities (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Principal and Carrying Amounts of Debt

The principal and carrying values of the Company’s long-term debt are presented in the table below.

Principal and Carrying Amounts of Debt

	As of December 31, 2018						As of December 31, 2017
	Principal			Carrying Value			Principal			Carrying Value
	(in millions)
AGUS:
7% Senior Notes (1)	$	200		$	197		$	200		$	197
5% Senior Notes (1)	500			497			500			496
Series A Enhanced Junior Subordinated Debentures (2)	150			150			150			150
Total AGUS	850			844			850			843
AGMH (3):
67/8% QUIBS (1)	100			70			100			70
6.25% Notes (1)	230			143			230			142
5.6% Notes (1)	100			57			100			57
Junior Subordinated Debentures (2)	300			198			300			192
Total AGMH	730			468			730			461
AGM (3):
AGM Notes Payable	5			5			6			6
Total AGM	5			5			6			6
AGMH's debt purchased by AGUS	(128		)	(84		)	(28		)	(18		)
Total	$	1,457		$	1,233		$	1,558		$	1,292

 ____________________

(1) AGL fully and unconditionally guarantees these obligations.

(2) Guaranteed by AGL on a junior subordinated basis.

(3) Carrying amounts are different than principal amounts primarily due to fair value adjustments at the date of the AGMH acquisition, which are accreted or amortized into interest expense over the remaining terms of these obligations.

The following table presents the principal amounts of AGMH's outstanding Junior Subordinated Debentures that AGUS purchased and the loss on extinguishment of debt recognized by the Company. The Company may choose to make additional purchases of this or other Company debt in the future.

AGUS's Purchase

of AGMH's Junior Subordinated Debentures

	Year Ended December 31,
	2018		2017
	(in millions)
Principal amount repurchased	$	100	$	28
Loss on extinguishment of debt (1)	34		9

 ____________________

(1) Included in other income in the consolidated statements of operations. The loss represents the difference between the amount paid to purchase AGMH's debt and the carrying value of the debt, which includes the unamortized fair value adjustments that were recorded upon the acquisition of AGMH in 2009.

Expected Maturity Schedule of Debt

Expected Maturity Schedule of Debt

As of December 31, 2018

	AGUS		AGMH (1)		AGM		Total
	(in millions)
2019 - 2023	$	—	$	—	$	3	$	3
2024 - 2043	700		—		2		702
2044 - 2063	—		—		—		—
2064 - 2083	150		300		—		450
Thereafter	—		430		—		430
Total	$	850	$	730	$	5	$	1,585

Schedule of Interest Expense

Interest Expense

	Year Ended December 31,
	2018			2017			2016
	(in millions)
AGUS:
7% Senior Notes	$	13		$	13		$	13
5% Senior Notes	26			26			26
Series A Enhanced Junior Subordinated Debentures	7			5			9
Total AGUS	46			44			48
AGMH:
67/8% QUIBS	7			7			7
6.25% Notes	15			16			16
5.6% Notes	6			6			6
Junior Subordinated Debentures	25			25			25
Total AGMH	53			54			54
AGMH's debt purchased by AGUS	(5		)	(1		)	—
Total	$	94		$	97		$	102