Financing Activities (Tables)

9 Months Ended

Sep. 30, 2022

The following table details the equity and liability component recognized related to the Convertible Notes, prior to and following the adoption of ASU 2020-06:


(in millions)	September 30, 2022		December 31, 2021
Equity component:
Carrying amount of Convertible Notes	$	—	$	311
Carrying amount of issuance costs	—		(11)
Net carrying amount	$	—	$	300
Liability component:
Principal amount	$	1,611	$	2,097
Unamortized debt discount	—		(255)
Net carrying amount	$	1,611	$	1,842

Interest Income and Interest Expense Disclosure

The Company recognized interest expense associated with the Convertible Notes as follows:


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2022		2021		2022		2021
Non-cash amortization of the debt discount	$	—	$	19	$	—	$	55
Non-cash amortization of debt issuance costs	3		2		9		6
Contractual coupon interest	5		7		18		22
Total interest expense	$	8	$	28	$	27	$	83

Schedule of Extinguishment of Debt

The following tables present the impact of the partial extinguishment of the Company's Convertible Notes and early prepayment of debt (excluding payments on finance leases), including $1.3 billion in prepayments for all of the Company's outstanding 4.75% Notes due 2023, within the unaudited Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2022:


	Three months ended September 30, 2022
(in millions)	Cash paid for debt and interest		Principal repayment		Loss on extinguishment		Non-cash amortization of debt discount and (issuance) costs		Accrued Interest
1.25% Convertible Notes due 2025	$	240	$	184	$	59	$	(3)	$	—
5.125% Notes due 2027	149		143		3		1		2
4.75% Notes due 2023	1,274		1,247		8		—		19
5.25% Notes due 2025	227		217		6		—		4
Total	$	1,890	$	1,791	$	76	$	(2)	$	25


	Nine months ended September 30, 2022
(in millions)	Cash paid for debt and interest		Principal repayment		Loss on extinguishment		Non-cash amortization of debt discount and (issuance) costs		Accrued Interest
1.25% Convertible Notes due 2025	$	649	$	486	$	171	$	(9)	$	1
5.125% Notes due 2027	209		199		6		2		2
4.75% Notes due 2023	1,278		1,250		9		—		19
5.25% Notes due 2025	228		218		6		—		4
Total	$	2,364	$	2,153	$	192	$	(7)	$	26