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Long-Term Debt | 12 Months Ended
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Dec. 31, 2017
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following at December 31 (in millions):
| 2017 |  | 2016
| Principal |  | Discount and Issue Costs |  | Carrying Value |  | Principal |  | Discount and Issue Costs |  | Carrying Value
Direct Senior Obligations of AFG: |  |  |  |  |  |  |  |  |  |  |
4.50% Senior Notes due June 2047 | $ | 590 |  |  | $ | (2 | ) |  | $ | 588 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
3.50% Senior Notes due August 2026 | 425 |  |  | (5 | ) |  | 420 |  |  | 300 |  |  | (3 | ) |  | 297 |
9-7/8% Senior Notes due June 2019 | — |  |  | — |  |  | — |  |  | 350 |  |  | (1 | ) |  | 349 |
6-3/8% Senior Notes due June 2042 | — |  |  | — |  |  | — |  |  | 230 |  |  | (7 | ) |  | 223 |
5-3/4% Senior Notes due August 2042 | — |  |  | — |  |  | — |  |  | 125 |  |  | (4 | ) |  | 121 |
Other | 3 |  |  | — |  |  | 3 |  |  | 3 |  |  | — |  |  | 3 |
| 1,018 |  |  | (7 | ) |  | 1,011 |  |  | 1,008 |  |  | (15 | ) |  | 993 |
Direct Subordinated Obligations of AFG: |  |  |  |  |  |  |  |  |  |  |  |  |
6-1/4% Subordinated Debentures due September 2054 | 150 |  |  | (5 | ) |  | 145 |  |  | 150 |  |  | (5 | ) |  | 145 |
6% Subordinated Debentures due November 2055 | 150 |  |  | (5 | ) |  | 145 |  |  | 150 |  |  | (5 | ) |  | 145 |
| 300 |  |  | (10 | ) |  | 290 |  |  | 300 |  |  | (10 | ) |  | 290 |
| $ | 1,318 |  |  | $ | (17 | ) |  | $ | 1,301 |  |  | $ | 1,308 |  |  | $ | (25 | ) |  | $ | 1,283 |
At December 31, 2017, scheduled principal payments on debt for the subsequent five years and thereafter were as follows: 2018 — none; 2019 — none; 2020 — none; 2021 — none; 2022 — none and thereafter — $1.32 billion. In June 2017, AFG issued $350 million in 4.50% Senior Notes due in 2047 at a price of 99.46%. The net proceeds of the offering were used to redeem AFG’s $230 million outstanding principal amount of 6-3/8% Senior Notes due June 2042 at par value and to redeem AFG’s $125 million outstanding principal amount of 5-3/4% Senior Notes due August 2042 at par value in June 2017 and August 2017, respectively. In November 2017, AFG issued an additional $125 million of 3.50% Senior Notes due in 2026 at a price of 99.698% and $240 million of 4.50% Senior Notes due in 2047 at a price of 102.374%. The net proceeds of the offering were used to redeem AFG’s $350 million outstanding principal amount of 9-7/8% Senior Notes due in June 2019 for $388 million (including a make-whole premium of $38 million) in December 2017. In August 2016, AFG issued $300 million in 3.50% Senior Notes due in 2026 at a price of 99.608%. The net proceeds of the offering were used to fund a portion of the November 2016 acquisition of the noncontrolling interest in NATL (discussed in Note B — “Acquisitions and Sale of Businesses”). At the acquisition date, the $18 million outstanding under NATL’s bank credit facility, including $6 million borrowed in September 2016, was repaid and the credit agreement was terminated. In September 2015, AFG used cash on hand to redeem the $132 million in outstanding AFG 7% Senior Notes due September 2050 at par value. In November 2015, AFG issued $150 million in 6% Subordinated Debentures due in 2055. During 2015, subsidiaries of AFG repaid all of the outstanding notes secured by real estate. To achieve a desired balance between fixed and variable rate debt, AFG entered into an interest rate swap in June 2015, which effectively converted its 9-7/8% Senior Notes to a floating rate of three-month LIBOR plus 8.099%. In December 2017, AFG settled the interest rate swap contemporaneously with the redemption of the 9-7/8% Senior Notes. At December 31, 2016, the fair value of the interest rate swap (asset of $1 million at that date) and the offsetting adjustment to the carrying value of the notes were both included in the carrying value of the 9-7/8% Senior Notes in the table above. AFG can borrow up to $500 million under its revolving credit facility, which expires in June 2021. Amounts borrowed under this agreement bear interest at rates ranging from 1.00% to 1.875% (currently 1.375%) over LIBOR based on AFG’s credit rating. No amounts were borrowed under this facility at December 31, 2017 or December 31, 2016. Cash interest payments on long-term debt were $85 million in 2017, $75 million in 2016 and 2015. In 2017, 2016 and 2015, AFG received $2 million, $3 million and $2 million, respectively, in interest under the interest rate swap discussed above.

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