BORROWINGS

6 Months Ended

Sep. 30, 2023

BORROWINGS

BORROWINGS

NOTE 9. BORROWINGS

Debt

The following table presents the components of our debt:

			September 30,		March 31,
(Dollars in millions)	Interest Rate	Maturity	2023		2023
Unsecured floating-rate term loan	6.55%*	November 2024	$	500	$	500
Commercial loan agreement	3.00%	July 2026		82		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 **	5.03%	2023-2028		278		242
			$	3,260	$	3,238
Less: Unamortized discount				4		5
Less: Unamortized debt issuance costs				12		13
Less: Current maturities of long-term debt				121		110
Total long-term debt			$	3,123	$	3,111

* Floating rate calculated as of September 30, 2023, using a rate equal to one-month SOFR plus 1.225%. 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 September 30, 2023, exclusive of finance lease obligations, are as follows:

(Dollars in millions)*	Principal
Year ending March 31:
2024 (remaining six months)	$	14
2025		529
2026		29
2027		710
2028		—
Thereafter		1,700
Total	$	2,982

*    Contractual obligations approximate scheduled repayments.

During the three months ended September 30, 2023, the Company extinguished $67 million of finance lease obligations through the sale of certain IT infrastructure services equipment and assignment of associated finance leases, resulting in an immaterial gain in the Consolidated Income Statement.

During the three and six months ended September 30, 2023, the right-of-use assets obtained in exchange for new finance lease liabilities were $53 million and $150 million, respectively. During the three and six months ended September 30, 2022, the right-of-use assets obtained in exchange for new finance lease liabilities were $29 million and $37 million, respectively.

As of September 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.