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Financing Arrangement | 3 Months Ended
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Jun. 30, 2021
Debt Instruments [Abstract] |
Financing Arrangement | (11) FINANCING ARRANGEMENTS Senior Notes In February 2021, we issued $750 million aggregate principal amount of 1.85% Senior Notes due February 15, 2031 (the “2031 Notes”) and $750 million aggregate principal amount of 2.95% Senior Notes due February 15, 2051 (the “2051 Notes”). Our proceeds were $1,478 million, net of discount of $6 million and issuance costs of $16 million. Both the discount and issuance costs are being amortized to interest expense over the respective terms of the 2031 Notes and the 2051 Notes using the effective interest rate method. The effective interest rate is 1.98% for the 2031 Notes and 3.04% for the 2051 Notes. Interest is payable semiannually in arrears, on February 15 and August 15 of each year. In February 2016, we issued $400 million aggregate principal amount of 4.80% Senior Notes due March 1, 2026 (the “2026 Notes”). Our proceeds were $395 million, net of discount of $1 million and issuance costs of $4 million. Both the discount and issuance costs are being amortized to interest expense over the term of the 2026 Notes using the effective interest rate method. The effective interest rate was 4.97%. Interest is payable semiannually in arrears, on March 1 and September 1 of each year. The carrying and fair values of the Senior Notes are as follows (in millions):
| As of June 30, 2021 |  | As of March 31, 2021
Senior Notes: |  |  |
4.80% Senior Notes due 2026 | $ | 400 |  |  | $ | 400 |
1.85% Senior Notes due 2031 | 750 |  |  | 750 |
2.95% Senior Notes due 2051 | 750 |  |  | 750 |
Total principal amount | $ | 1,900 |  |  | $ | 1,900 |
Unaccreted discount | (7) |  |  | (7) |
Unamortized debt issuance costs | (16) |  |  | (17) |
Net carrying value of Senior Notes | $ | 1,877 |  |  | $ | 1,876 |
Fair value of Senior Notes (Level 2) | $ | 1,928 |  |  | $ | 1,873 |
As of June 30, 2021, the remaining life of the 2026 Notes, 2031 Notes and 2051 Notes is approximately 4.7 years, 9.6 years, and 29.6 years, respectively. The Senior Notes are senior unsecured obligations and rank equally with all our other existing and future unsubordinated obligations and any indebtedness that we may incur from time to time under our Credit Facility. The 2026 Notes, 2031 Notes and 2051 Notes are redeemable at our option at any time prior to December 1, 2025, November 15, 2030, and August 15, 2050, respectively, subject to a make-whole premium. After such dates, we may redeem each such series of Notes, respectively, at a redemption price equal to 100% of the aggregate principal amount plus accrued and unpaid interest. In addition, upon the occurrence of a change of control repurchase event, the holders of each such series of Notes may require us to repurchase all or a portion of these Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. Each such series of Notes also include covenants that limit our ability to incur liens on assets and to enter into sale and leaseback transactions, subject to certain allowances. Credit Facility On August 29, 2019, we entered into a $500 million unsecured revolving credit facility (“Credit Facility”) with a syndicate of banks. The Credit Facility terminates on August 29, 2024 unless the maturity is extended in accordance with its terms. The Credit Facility contains an option to arrange with existing lenders and/or new lenders to provide up to an aggregate of $500 million in additional commitments for revolving loans. Proceeds of loans made under the Credit Facility may be used for general corporate purposes. The credit agreement contains customary affirmative and negative covenants, including covenants that limit or restrict our ability to, among other things, incur subsidiary indebtedness, grant liens, and dispose of all or substantially all assets, in each case subject to customary exceptions for a credit facility of this size and type. We are also required to maintain compliance with a debt to EBITDA ratio. As of June 30, 2021, we were in compliance with the debt to EBITDA ratio. As of June 30, 2021, no amounts were outstanding under the Credit Facility. $2 million of debt issuance costs that were paid in connection with obtaining this credit facility are being amortized to interest expense over the 5-year term of the Credit Facility. Interest Expense The following table summarizes our interest expense recognized for the three months ended June 30, 2021 and 2020 that is included in interest and other income (expense), net on our Condensed Consolidated Statements of Operations (in millions):
| Three Months Ended June 30, |  |
| 2021 |  | 2020 |  |  |  |
Amortization of debt issuance costs | $ | — |  |  | $ | (1) |  |  |  |  |
Coupon interest expense | (14) |  |  | (10) |  |  |  |  |
Total interest expense | $ | (14) |  |  | $ | (11) |  |  |  |  |

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