Debt

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt

Note 7 – Debt

The outstanding amounts of debt (net of issuance costs, discounts or premiums) and finance leases were as follows:

(In millions)	June 30, 2024		December 31, 2023
Short-term debt
Commercial paper	$	790	$	1,237
$500 million, 0.613% Notes due March 2024	—		500
$790 million, 3.500% Notes due June 2024 (1)	—		996
$900 million, 3.250% Notes due April 2025 (2)	885		—
Other, including finance leases	42		42
Total short-term debt	$	1,717	$	2,775
Long-term debt
$900 million, 3.250% Notes due April 2025 (2)	—		882
$1,216 million, 4.125% Notes due November 2025 (1)	1,215		2,197
$1,284 million, 4.500% Notes due February 2026 (1)	1,285		1,502
$550 million, 1.250% Notes due March 2026 (1)	549		798
$700 million, 5.685% Notes due March 2026	698		698
$1,500 million, 3.400% Notes due March 2027	1,459		1,450
$259 million, 7.875% Debentures due May 2027	259		259
$600 million, 3.050% Notes due October 2027	598		597
$3,800 million, 4.375% Notes due October 2028	3,790		3,787
$1,000 million, 5.000% Notes due May 2029	994		—
$1,400 million, 2.400% Notes due March 2030 (1) (2)	1,394		1,493
$1,500 million, 2.375% Notes due March 2031 (2)	1,383		1,397
$750 million, 5.125% Notes due May 2031	745		—
$45 million, 8.080% Step Down Notes due January 2033	45		45
$800 million, 5.400% Notes due March 2033	795		794
$1,250 million, 5.250% Notes due February 2034 (2)	1,242		—
$190 million, 6.150% Notes due November 2036	190		190
$2,200 million, 4.800% Notes due August 2038	2,193		2,193
$750 million, 3.200% Notes due March 2040	744		744
$121 million, 5.875% Notes due March 2041	119		119
$448 million, 6.125% Notes due November 2041	486		487
$317 million, 5.375% Notes due February 2042	315		315
$1,500 million, 4.800% Notes due July 2046	1,467		1,467
$1,000 million, 3.875% Notes due October 2047	990		989
$3,000 million, 4.900% Notes due December 2048	2,970		2,970
$1,250 million, 3.400% Notes due March 2050	1,237		1,237
$1,500 million, 3.400% Notes due March 2051	1,479		1,479
$1,500 million, 5.600% Notes due February 2054	1,482		—
Other, including finance leases	52		66
Total long-term debt	$	30,175	$	28,155

(1)Included in the February 2024 debt tender offers discussed below.

(2)The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 11 to the Consolidated Financial Statements for further information about the Company's interest rate risk management and these derivative instruments.

Short-term and Credit Facilities Debt

Revolving Credit Agreements. Our revolving credit agreements provide us with the ability to borrow amounts for general corporate purposes, including providing liquidity support if necessary under our commercial paper program discussed below. As of June 30, 2024, there were no outstanding balances under these revolving credit agreements.

In April 2024, The Cigna Group replaced its previous revolving credit agreements and entered into the following (the "Credit Agreements"):

•a $5.0 billion five-year revolving credit and letter of credit agreement that will mature in April 2029 with an option to extend the maturity date for additional one-year periods, subject to consent of the banks. The Company can borrow up to $5.0 billion under the credit agreement for general corporate purposes, with up to $500 million available for issuance of letters of credit.

•a $1.5 billion 364-day revolving credit agreement that will mature in April 2025. The Company can borrow up to $1.5 billion under the credit agreement for general corporate purposes. This agreement includes the option to "term out" any revolving loans that are outstanding at maturity by converting them into a term loan maturing on the one-year anniversary of conversion.

Each of the Credit Agreements include an option to increase commitments in an aggregate amount of up to $1.5 billion across both facilities for a maximum total commitment of $8.0 billion. The Credit Agreements allow for borrowings at either a base rate or an adjusted term Secured Overnight Funding Rate ("SOFR") plus, in each case, an applicable margin based on the Company's senior unsecured credit ratings.

Each of the two facilities is diversified among 22 large commercial banks, all of which had an A- equivalent or higher rating by at least one Nationally Recognized Statistical Rating Organization ("NRSRO") as of June 30, 2024. Each facility also contains customary covenants and restrictions, including a financial covenant that the Company's leverage ratio, as defined in the Credit Agreements, may not exceed 60% subject to certain exceptions upon the consummation of an acquisition.

Commercial Paper. Under our commercial paper program, we may issue short-term, unsecured commercial paper notes privately placed on a discounted basis through certain broker-dealers at any time not to exceed an aggregate amount of $5.0 billion. In July 2024, our commercial paper program size was increased to $6.5 billion. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The net proceeds of issuances have been and are expected to be used for general corporate purposes. The weighted average interest rate of our commercial paper was 5.47% at June 30, 2024.

Long-term debt

Debt Issuance and Debt Tender Offers. In February 2024, we issued $4.5 billion of new senior notes, as detailed in the table below. The proceeds from this debt were used to pay the consideration for the cash tender offers as described below. We used the remaining net proceeds to fund the repayment of our senior notes that matured in March 2024 and for general corporate purposes, including repayment of indebtedness and repurchases of shares of our common stock. Interest on this debt is paid semi-annually.

Principal	Maturity Date	Interest Rate	Net Proceeds	Redeemable Date(1)	"Make whole" premium basis points over U.S. Treasury rate(2)
$1,000 million	May 15, 2029	5.000%	$995 million	April 15, 2029	15
$750 million	May 15, 2031	5.125%	$746 million	March 15, 2031	15
$1,250 million	February 15, 2034	5.250%	$1,244 million	November 15, 2033	20
$1,500 million	February 15, 2054	5.600%	$1,485 million	August 15, 2053	20

(1) Redeemable at any time prior to this date at a "make whole" premium, defined below. Redeemable at par on or after this date.

(2) "Make whole" premium calculated using the most directly comparable U.S. Treasury rate plus the amount of basis points set forth in this column.

In the first quarter of 2024, the Company completed the repurchase of a total of $1.8 billion in aggregate principal amount of existing senior notes that were tendered to the Company pursuant to cash tender offers.

Interest Expense

Interest expense on corporate financing was $378 million for the three months ended and $747 million for the six months ended June 30, 2024, compared with $350 million for the three months ended and $695 million for the six months ended June 30, 2023.

Debt Covenants

The Company was in compliance with its debt covenants as of June 30, 2024.