Long-Term Debt And Lease Obligation

12 Months Ended

Dec. 31, 2019

Long-term Debt and Lease Obligation [Abstract]

Long-Term Debt And Capital Lease Obligation

Long-Term Debt and Lease Obligations

This table summarizes the principal amounts of our long-term debt excluding unamortized discounts, none of which are encumbered by rating triggers:

(Dollars in millions)			Book value				Principal amount
Interest rate	Year of  issue		At December 31,				At December 31,
			2019		2018		2019		2018
6.900%	1998	Senior debentures, due 2028	$	27	$	27	$	28	$	28
6.920%	2005	Senior debentures, due 2028	391		391		391		391
6.125%	2004	Senior notes, due 2034	370		370		374		374
		Total	$	788	$	788	$	793	$	793

The finance lease term for equipment and autos is 3 to 6 years while the operating lease term for real estate properties is typically 5 years. Lease obligations totaled $57 million and $46 million in 2019 and 2018, respectively. Included in the consolidated balance sheet lease obligations is a net $1 million for interest and remaining lease residual values for finance leases we expect to pay. Below are the expected lease obligations we expect to pay through years 2025 and thereafter:

(Dollars in millions)	Years ended December 31,
	2020		2021		2022		2023		2024		2025 and thereafter
Finance lease obligations	$	14	$	10	$	8	$	6	$	3	$	1
Operating lease obligations	5		2		2		2		1		3
Total lease obligations	$	19	$	12	$	10	$	8	$	4	$	4

The following table provides lease cost and other information for the year ended December 31, 2019:

(Dollars in millions)
	2019
Lease cost:
Finance lease cost	$	9
Operating lease cost	4
Total lease cost	$	13
Other information finance leases:
Finance cash outflows	$	15
Weighted average discount rate	2.96		%
Weighted average remaining lease term in years	3.65
Other information operating leases:
Operating cash outflows	$	8
Weighted average discount rate	3.69		%
Weighted average remaining lease term in years	4.71