Long-Term Debt And Lease Obligation

12 Months Ended

Dec. 31, 2022

Long-Term Debt and Lease Obligation [Abstract]

Long-Term Debt and Lease Obligation Text Block

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,
			2022		2021		2022		2021
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	371		371		374		374
		Total	$	789	$	789	$	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 $52 million and $54 million in 2022 and 2021, respectively. Below are the lease obligations we expect to pay through 2028 and thereafter including $4 million of interest for finance and operating leases:

(Dollars in millions)	Years ended December 31,
	2023		2024		2025		2026		2027		2028 and thereafter
Finance lease obligations	$	16	$	12	$	8	$	6	$	3	$	2
Operating lease obligations	2		2		2		1		1		1
Total lease obligations	$	18	$	14	$	10	$	7	$	4	$	3

The following table provides lease cost and other information:

(Dollars in millions)	Years ended December 31,
	2022			2021			2020
Lease cost:
Finance lease cost	$	14		$	15		$	15
Operating lease cost	5			4			4
Total lease cost	$	19		$	19		$	19
Other information finance leases:
Finance cash outflows	$	15		$	15		$	15
Weighted average discount rate	3.20		%	2.46		%	2.62		%
Weighted average remaining lease term in years	3.49			3.45			3.67
Other information operating leases:
Operating cash outflows	$	4		$	4		$	8
Weighted average discount rate	3.44		%	2.86		%	3.65		%
Weighted average remaining lease term in years	4.53			4.37			4.84