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INDEBTEDNESS | 6 Months Ended
--- | ---
Jun. 30, 2024
Debt Disclosure [Abstract] |
INDEBTEDNESS | INDEBTEDNESS The Company’s debt is recorded at its carrying value, which represents the issuance amount plus or minus any issuance premium or discount, except for certain debt as depicted in the table below, which is recorded at the carrying value adjusted for the fair value of an interest rate swap used to hedge the fair value of the note. The following table summarizes total indebtedness:
June 30, 2024
Notes Payable: | Principal Amount |  | Fair Value of Interest Rate Swaps (1) |  | Unamortized (Discount) Premium |  | Unamortized Debt Issuance Costs |  | Carrying Value
5.25% 2014 Senior Notes, due 2044 | $ | 600 |  |  | $ | (37) |  |  | $ | 3 |  |  | $ | (4) |  |  | $ | 562 |
1.75% 2015 Senior Notes, due 2027 | 536 |  |  | — |  |  | — |  |  | (1) |  |  | 535 |
3.25% 2017 Senior Notes, due 2028 | 500 |  |  | (25) |  |  | (2) |  |  | (1) |  |  | 472 |
4.25% 2018 Senior Notes, due 2029 | 400 |  |  | (39) |  |  | (1) |  |  | (2) |  |  | 358 |
4.875% 2018 Senior Notes, due 2048 | 400 |  |  | (39) |  |  | (6) |  |  | (3) |  |  | 352 |
0.950% 2019 Senior Notes, due 2030 | 803 |  |  | — |  |  | (2) |  |  | (3) |  |  | 798 |
3.75% 2020 Senior Notes, due 2025 | 700 |  |  | (11) |  |  | — |  |  | (1) |  |  | 688 |
3.25% 2020 Senior Notes, due 2050 | 300 |  |  | — |  |  | (4) |  |  | (3) |  |  | 293 |
2.55% 2020 Senior Notes, due 2060 | 300 |  |  | — |  |  | (2) |  |  | (3) |  |  | 295 |
2.00% 2021 Senior Notes, due 2031 | 600 |  |  | — |  |  | (6) |  |  | (4) |  |  | 590 |
2.75% 2021 Senior Notes, due 2041 | 600 |  |  | — |  |  | (12) |  |  | (5) |  |  | 583 |
3.10% 2021 Senior Notes, due 2061 | 500 |  |  | — |  |  | (7) |  |  | (5) |  |  | 488 |
3.75% 2022 Senior Notes, due 2052 | 500 |  |  | (42) |  |  | (8) |  |  | (5) |  |  | 445 |
4.25% 2022 Senior Notes, due 2032 | 500 |  |  | (12) |  |  | (2) |  |  | (4) |  |  | 482 |
Total debt | $ | 7,239 |  |  | $ | (205) |  |  | $ | (49) |  |  | $ | (44) |  |  | $ | 6,941 |
Current portion |  |  |  |  |  |  |  |  | (688) |
Total long-term debt |  |  |  |  |  |  |  |  | $ | 6,253 |
December 31, 2023
Notes Payable: | Principal Amount |  | Fair Value of Interest Rate Swaps (1) |  | Unamortized (Discount) Premium |  | Unamortized Debt Issuance Costs |  | Carrying Value
5.25% 2014 Senior Notes, due 2044 | $ | 600 |  |  | $ | (34) |  |  | $ | 3 |  |  | $ | (4) |  |  | $ | 565 |
1.75% 2015 Senior Notes, due 2027 | 552 |  |  | — |  |  | — |  |  | (1) |  |  | 551 |
3.25% 2017 Senior Notes, due 2028 | 500 |  |  | (26) |  |  | (2) |  |  | (2) |  |  | 470 |
4.25% 2018 Senior Notes, due 2029 | 400 |  |  | (34) |  |  | (2) |  |  | (2) |  |  | 362 |
4.875% 2018 Senior Notes, due 2048 | 400 |  |  | (36) |  |  | (6) |  |  | (3) |  |  | 355 |
0.950% 2019 Senior Notes, due 2030 | 829 |  |  | — |  |  | (2) |  |  | (4) |  |  | 823 |
3.75% 2020 Senior Notes, due 2025 | 700 |  |  | (16) |  |  | (1) |  |  | (1) |  |  | 682 |
3.25% 2020 Senior Notes, due 2050 | 300 |  |  | — |  |  | (4) |  |  | (3) |  |  | 293 |
2.55% 2020 Senior Notes, due 2060 | 300 |  |  | — |  |  | (2) |  |  | (3) |  |  | 295 |
2.00% 2021 Senior Notes, due 2031 | 600 |  |  | — |  |  | (6) |  |  | (4) |  |  | 590 |
2.75% 2021 Senior Notes, due 2041 | 600 |  |  | — |  |  | (12) |  |  | (5) |  |  | 583 |
3.10% 2021 Senior Notes, due 2061 | 500 |  |  | — |  |  | (7) |  |  | (5) |  |  | 488 |
3.75% 2022 Senior Notes, due 2052 | 500 |  |  | (29) |  |  | (8) |  |  | (5) |  |  | 458 |
4.25% 2022 Senior Notes, due 2032 | 500 |  |  | (8) |  |  | (2) |  |  | (4) |  |  | 486 |
Total long-term debt | $ | 7,281 |  |  | $ | (183) |  |  | $ | (51) |  |  | $ | (46) |  |  | $ | 7,001 |
(1) The fair value of interest rate swaps in the tables above represents the cumulative amount of fair value hedging adjustments included in the carrying value of the hedged debt. Credit Facility On May 6, 2024, the Company entered into a five-year senior, unsecured revolving credit facility with the capacity to borrow up to $1.25 billion, which expires in May 2029. The 2024 Credit Facility replaces the Company's $1.25 billion 2021 Credit Facility that was scheduled to mature in December 2026. Further information on the key terms of these revolving credit facilities is below:
|  |  |  |  |  |  | June 30, 2024 |  | December 31, 2023
| Issue Date |  | Capacity |  | Maturity |  | Drawn |  | Undrawn |  | Drawn |  | Undrawn
2021 Credit Facility | December 17, 2021 |  | $ | 1,250 |  |  | December 17, 2026 (Terminated in 2024) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,250 |
2024 Credit Facility | May 6, 2024 |  | $ | 1,250 |  |  | May 6, 2029 |  | $ | — |  |  | $ | 1,250 |  |  | $ | — |  |  | $ | — |
Interest on borrowings under the 2024 Credit Facility is payable at rates that are based on an adjusted term SOFR Rate plus a premium that can range from 80.5 BPS to 122.5 BPS, depending on the Company’s index debt ratings, as set forth in the 2024 Credit Facility. The Company also has the option to choose other rates, such as those based on adjusted Daily Simple SOFR or an alternate base rate, as set forth in the 2024 Credit Facility. Regardless of borrowing activity under the 2024 Credit Facility, the Company pays quarterly fees for the 2024 Credit Facility that can range from 7 BPS of the 2024 Credit Facility amount to 15 BPS, depending on the Company’s index debt ratings. The 2024 Credit Facility contains certain customary covenants and also contains a financial covenant that requires the Company to maintain a total debt to EBITDA Ratio of (i) not more than 4 to 1 at the end of any fiscal quarter or (ii) not more than 4.5 to 1 as of the end of the first three consecutive quarters immediately following any acquisition with consideration in excess of $500 million, subject to certain conditions as set forth in the 2024 Credit Facility. Notes Payable At June 30, 2024, the Company was in compliance with all covenants contained within all of the debt agreements. All of the debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of June 30, 2024, there were no such cross defaults. The repayment schedule for the Company’s borrowings is as follows:
Year Ending December 31, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Year Ending Total
2024 (After June 30,) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | — |
2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 700 |
2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
2027 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 536 |
2028 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 500 |
Thereafter |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,503 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 7,239 |
Interest expense, net The following table summarizes the components of interest as presented in the consolidated statements of operations and the cash paid for interest:
| Three Months Ended June 30, |  | Six Months Ended June 30, |
| 2024 |  | 2023 |  | 2024 |  | 2023 |
Income | $ | 23 |  |  | $ | 15 |  |  | $ | 45 |  |  | $ | 25 |  |
Expense on borrowings(1) | (74) |  |  | (75) |  |  | (148) |  |  | (145) |  |
(Expense) income on UTPs and other tax related liabilities(2) | (5) |  |  | (4) |  |  | (9) |  |  | 14 |  |
Net periodic pension costs - interest component | (7) |  |  | (7) |  |  | (13) |  |  | (13) |  |
Interest expense, net | $ | (63) |  |  | $ | (71) |  |  | $ | (125) |  |  | $ | (119) |  |
Interest paid(3) | $ | 51 |  |  | $ | 47 |  |  | $ | 151 |  |  | $ | 143 |  |
(1) Expense on borrowings includes interest on long-term debt, as well as realized gains/losses related to interest rate swaps and cross currency swaps, which are more fully discussed in Note 7. (2) The amount for the six months ended June 30, 2023 reflects a $22 million reduction of tax-related interest expense primarily related to the resolutions of tax matters. (3) Interest paid includes net settlements on interest rate swaps, which are more fully discussed in Note 7. The fair value and carrying value of the Company’s debt as of June 30, 2024 and December 31, 2023 are as follows:
| June 30, 2024 |  | December 31, 2023
| Carrying Value |  | Estimated Fair Value |  | Carrying Value |  | Estimated Fair Value
Total debt | $ | 6,941 |  |  | $ | 6,121 |  |  | $ | 7,001 |  |  | $ | 6,402 |
The fair value of the Company’s debt is estimated based on quoted prices in active markets as of the reporting date, which are considered Level 1 inputs within the fair value hierarchy.

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