Long-Term Debt And Lease Obligation

12 Months Ended

Dec. 31, 2023

Long-Term Debt and Lease Obligation [Abstract]

Long-Term Debt and 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,
			2023		2022		2023		2022
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	372		371		374		374
		Total	$	790	$	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 $59 million and $52 million in 2023 and 2022, respectively. Below are the lease obligations we expect to pay through 2029 and thereafter including $6 million of interest for finance and operating leases:

(Dollars in millions)	Years ended December 31,
	2024		2025		2026		2027		2028		2029 and thereafter
Finance lease obligations	$	16	$	12	$	9	$	7	$	6	$	3
Operating lease obligations	3		3		3		2		1		—
Total lease obligations	$	19	$	15	$	12	$	9	$	7	$	3

The following table provides lease cost and other information:

(Dollars in millions)	Years ended December 31,
	2023			2022			2021
Lease cost:
Finance lease cost	$	14		$	14		$	15
Operating lease cost	3			5			4
Total lease cost	$	17		$	19		$	19
Other information finance leases:
Finance cash outflows	$	16		$	15		$	15
Weighted average discount rate	4.35		%	3.20		%	2.46		%
Weighted average remaining lease term in years	3.89			3.49			3.45
Other information operating leases:
Operating cash outflows	$	3		$	4		$	4
Weighted average discount rate	4.66		%	3.44		%	2.86		%
Weighted average remaining lease term in years	4.30			4.53			4.37