Long-Term Debt And Lease Obligation

12 Months Ended

Dec. 31, 2020

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,
			2020		2019		2020		2019
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 three to six years while the operating lease term for real estate properties is typically five years. Lease obligations totaled $57 million in both 2020 and 2019, respectively. Below are the lease obligations we expect to pay through years 2026 and thereafter including $3 million of interest for finance and operating leases:

(Dollars in millions)	Years ended December 31,
	2021		2022		2023		2024		2025		2026 and thereafter
Finance lease obligations	$	15	$	12	$	10	$	6	$	4	$	2
Operating lease obligations	2		2		2		2		1		2
Total lease obligations	$	17	$	14	$	12	$	8	$	5	$	4

The following table provides lease cost and other information for the year ended December 31, 2020 and 2019:

(Dollars in millions)
	2020			2019
Lease cost:
Finance lease cost	$	15		$	9
Operating lease cost	4			4
Total lease cost	$	19		$	13
Other information finance leases:
Finance cash outflows	$	15		$	15
Weighted average discount rate	2.62		%	2.96		%
Weighted average remaining lease term in years	3.67			3.65
Other information operating leases:
Operating cash outflows	$	8		$	8
Weighted average discount rate	3.65		%	3.69		%
Weighted average remaining lease term in years	4.84			4.71