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DEBT | 9 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
DEBT | DEBT The carrying value of debt outstanding, net of unamortized debt issuance costs, was as follows at September 30, 2024 and December 31, 2023:
| September 30, 2024 |  | December 31, 2023
| (in millions)
Short-term debt: |  |  |
Commercial paper | $ | — |  |  | $ | 871 |
Senior notes: |  |  |
$600 million, 3.850% due October 1, 2024 | 559 |  |  | 572 |
$600 million, 4.500% due April 1, 2025 | 577 |  |  | — |
Total senior notes | 1,136 |  |  | 572 |
Total short-term debt | $ | 1,136 |  |  | $ | 1,443 |
Long-term debt: |  |  |
Senior notes: |  |  |
$600 million, 4.500% due April 1, 2025 | $ | — |  |  | $ | 598 |
$500 million, 5.700% due March 13, 2026 | 499 |  |  | 498 |
$750 million, 1.350% due February 3, 2027 | 689 |  |  | 688 |
$600 million, 3.950% due March 15, 2027 | 537 |  |  | 537 |
$500 million, 5.750% due March 1, 2028 | 489 |  |  | 495 |
$500 million, 5.750% due December 1, 2028 | 495 |  |  | 495 |
$750 million, 3.700% due March 23, 2029 | 585 |  |  | 590 |
$500 million, 3.125% due August 15, 2029 | 433 |  |  | 433 |
$500 million, 4.875% due April 1, 2030 | 496 |  |  | 496 |
$1,250 million, 5.375% due April 15, 2031 | 1,239 |  |  | — |
$750 million, 2.150% due February 3, 2032 | 744 |  |  | 743 |
$750 million, 5.875% due March 1, 2033 | 762 |  |  | 750 |
$850 million, 5.950% due March 15, 2034 | 853 |  |  | 840 |
$250 million, 8.150% due June 15, 2038 | 260 |  |  | 261 |
$400 million, 4.625% due December 1, 2042 | 390 |  |  | 396 |
$750 million, 4.950% due October 1, 2044 | 738 |  |  | 740 |
$400 million, 4.800% due March 15, 2047 | 396 |  |  | 396 |
$500 million, 3.950% due August 15, 2049 | 534 |  |  | 529 |
$750 million, 5.500% due March 15, 2053 | 745 |  |  | 728 |
$1,000 million, 5.750% due April 15, 2054 | 1,002 |  |  | — |
Total senior notes | 11,886 |  |  | 10,213 |
Total long-term debt | $ | 11,886 |  |  | $ | 10,213 |
Senior Notes In March 2024, we issued $1.3 billion of 5.375% unsecured senior notes due April 15, 2031 and $1.0 billion of 5.750% unsecured senior notes due April 15, 2054. Our net proceeds, reduced for the underwriters' discounts and commissions paid, were $2.2 billion. We used the net proceeds for general corporate purposes, which include the repayment of existing indebtedness, including borrowings under our commercial paper program. We have entered into interest-rate swap agreements with major financial institutions to convert our interest-rate exposure on some of our senior notes payable from fixed rates to variable rates, based on Secured Overnight Financing Rate (SOFR), to align interest costs more closely with floating interest rates received on our cash equivalents and investment securities, as further described in Note 5. As a result, the carrying value of these senior notes has been adjusted to reflect changes in value caused by an increase or decrease in interest rates. The cumulative, aggregate decrease to the carrying value of the senior notes was approximately $117 million at September 30, 2024. For additional information regarding our Senior Notes, refer to Note 13 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" in our 2023 Form 10-K. Revolving Credit Agreements In June 2023, we entered into an amended and restated 5-year, $2.5 billion unsecured revolving credit agreement (replacing the 5-year, $2.5 billion unsecured revolving credit agreement entered in June 2021). In May 2024, we entered into an amendment to increase commitments $0.142 billion resulting in a $2.642 billion borrowing capacity. In May 2024, we entered into a 364-day $2.1 billion unsecured revolving credit agreement (replacing the 364-day $1.5 billion unsecured revolving credit agreement entered in June 2023, which expired in accordance with its terms). Under the credit agreements, at our option, we can borrow on either a competitive advance basis or a revolving credit basis. The revolving credit portion bears interest at Term SOFR or the base rate plus a spread. The competitive advance portion of any borrowings will bear interest at market rates prevailing at the time of borrowing on either a fixed rate or a floating rate based Term SOFR, at our option. The SOFR spread, currently 114.0 basis points under the 5-year revolving credit agreement and 116.0 basis points under the 364-day revolving credit agreement, varies depending on our credit ratings ranging from 92.0 to 130.0 basis points under the 5-year revolving credit agreement and from 94.0 to 135.0 basis points under the 364-day revolving credit agreement. We also pay an annual facility fee regardless of utilization. This facility fee, currently 11.0 basis points, under the 5-year revolving credit agreement and 9.0 basis points under the 364-day revolving agreement, varies depending on our credit ratings ranging from 8.0 to 20.0 basis points under the 5-year revolving credit agreement and from 6.0 to 15.0 basis points under the 364-day revolving credit agreement. Our credit agreements contain customary restrictive covenants and a financial covenant regarding maximum debt to capitalization of 60%, as well as customary events of default. We are in compliance with this financial covenant, with actual debt to capitalization of 42.3% as measured in accordance with the revolving credit agreements as of September 30, 2024. At September 30, 2024, we had no borrowings and approximately $18 million of letters of credit outstanding under the revolving credit agreements. Accordingly, as of September 30, 2024, we had $2.624 billion of remaining borrowing capacity under the 5-year revolving credit agreement and $2.1 billion of remaining borrowing capacity under the 364-day revolving credit agreement (which excludes the uncommitted $750 million of incremental loan facilities), none of which would be restricted by our financial covenant compliance requirement. For additional information regarding our Revolving Credit Agreements, refer to Note 13 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" in our 2023 Form 10-K. Commercial Paper Under our commercial paper program, we may issue short-term, unsecured commercial paper notes privately placed on a discount basis through certain broker dealers at any time. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The net proceeds of issuances have been and are expected to be used for general corporate purposes. The maximum principal amount outstanding at any one time during the nine months ended September 30, 2024 was $2.7 billion, with no outstanding amount at September 30, 2024 compared to $0.9 billion outstanding at December 31, 2023. For additional information regarding our Commercial Paper refer to Note 13 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" in our 2023 Form 10-K. Other Short-term Borrowings We are a member, through one subsidiary, of the Federal Home Loan Bank of Cincinnati, or FHLB. As a member we have the ability to obtain short-term cash advances, subject to certain minimum collateral requirements. At September 30, 2024 we had no outstanding short-term FHLB borrowings.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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