BORROWINGS

3 Months Ended

Jun. 30, 2023

BORROWINGS

BORROWINGS

NOTE 9. BORROWINGS

Debt

The following table presents the components of our debt:

			June 30,		March 31,
(Dollars in millions)	Interest Rate	Maturity	2023		2023
Unsecured floating-rate term loan	6.27%*	November 2024	$	500	$	500
Commercial loan agreement	3.00%	July 2026		89		96
Unsecured senior notes due 2026	2.05%	October 2026		700		700
Unsecured senior notes due 2028	2.70%	October 2028		500		500
Unsecured senior notes due 2031	3.15%	October 2031		650		650
Unsecured senior notes due 2041	4.10%	October 2041		550		550
Finance lease obligations **	4.14%	2023-2028		311		242
			$	3,299	$	3,238
Less: Unamortized discount				5		5
Less: Unamortized debt issuance costs				13		13
Less: Current maturities of long-term debt				134		110
Total long-term debt			$	3,149	$	3,111

* Floating rate calculated as of June 30, 2023, using a rate equal to one-month U.S. dollar LIBOR plus 1.125%. Refer to Note 2 – Accounting Pronouncements for additional information.

** Finance lease obligations presented using the weighted-average interest rate.

Contractual obligations of long-term debt outstanding at June 30, 2023, exclusive of finance lease obligations, are as follows:

(Dollars in millions)*	Principal
Year ending March 31:
2024 (remaining nine months)	$	21
2025		529
2026		29
2027		710
2028		—
Thereafter		1,700
Total	$	2,989

*    Contractual obligations approximate scheduled repayments.

As of June 30, 2023, there were no borrowings under the Company’s revolving credit agreement. The Company is in compliance with its debt covenants in all periods presented.

During the three months ended June 30, 2023, the right-of-use assets obtained in exchange for new finance lease liabilities were $97 million. During the three months ended June 30, 2022, the right-of-use assets obtained in exchange for new finance lease liabilities were immaterial.