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Debt | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
Debt | Debt Contractual maturities of debt, as of December 31, 2020, are illustrated in the following table. All amounts represent the principal amounts of the debt instruments outstanding.
| Total |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | Thereafter
| (In millions)
4.375% Notes due 2028 | $ | 800 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 800 |
5.375% Notes due 2022 | 700 |  |  | — |  |  | 700 |  |  | — |  |  | — |  |  | — |  |  | — |
3.875% Notes due 2030 | 650 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 650 |
Total | $ | 2,150 |  |  | $ | — |  |  | $ | 700 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,450 |
All debt is held at the parent which is reported in the Other segment. The following table summarizes our outstanding debt obligations and their classification in the accompanying consolidated balance sheets:
| December 31,
| 2020 |  | 2019
| (In millions)
Current portion of long-term debt: |  |  |
1.125% Convertible Notes, net of unamortized discount | $ | — |  |  | $ | 12 |
Term loan facility | — |  |  | 6 |
Total (1) | $ | — |  |  | $ | 18 |
Non-current portion of long-term debt: |  |  |
4.375% Notes due 2028 | $ | 800 |  |  | $ | — |
5.375% Notes due 2022 | 700 |  |  | 700 |
3.875% Notes due 2030 | 650 |  |  | — |
4.875% Notes due 2025 | — |  |  | 330 |
Term loan facility | — |  |  | 214 |
Less: debt issuance costs | (23) |  |  | (7) |
Total | $ | 2,127 |  |  | $ | 1,237 |
______________________ (1)Reported in “Accounts payable, accrued liabilities and other.” Credit Agreement In June 2020, we entered into a credit agreement (the “Credit Agreement”) that replaced our prior credit agreement. The terms of the Credit Agreement are substantially similar to the terms of the prior agreement. Among various provisions, significant changes incorporated to the Credit Agreement included: •An increase of the revolving credit facility (the “Credit Facility”) from $500 million to $1.0 billion; •A $15 million swingline sub-facility and a $100 million letter of credit sub-facility; •An increase of incremental term loans available to finance certain acquisitions from $150 million to $500 million, plus an unlimited amount as long as our consolidated net leverage ratio is not greater than 3:1; •The ability to engage in acquisitions where the consummation of such acquisitions is not conditioned on the availability of, or on obtaining, third-party financing; •Termination of the term loan facility under the prior credit agreement; and •LIBOR succession provisions. The Credit Agreement has a term of five years, and all amounts outstanding will be due and payable on June 8, 2025. Borrowings under the Credit Agreement bear interest based, at our election, on a base rate or other defined rate, plus in each case, the applicable margin. In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Credit Agreement, we are required to pay a quarterly commitment fee. The Credit Agreement contains customary non-financial and financial covenants. As of December 31, 2020, we were in compliance with all financial and non-financial covenants under the Credit Agreement and other long-term debt. As of December 31, 2020, no amounts were outstanding under the Credit Facility. High-Yield Senior Notes Our high-yield senior notes are described below. Each of these notes are senior unsecured obligations of Molina and rank equally in right of payment with all existing and future senior debt, and senior to all existing and future subordinated debt of Molina. In addition, each of the notes contain customary non-financial covenants and change of control provisions. The indentures governing the high-yield senior notes contain cross-default provisions that are triggered upon default by us or any of our subsidiaries on any indebtedness in excess of the amount specified in the applicable indenture. 4.375% Notes due 2028. On June 2, 2020, we completed the private offering of $800 million aggregate principal amount of senior notes (the “4.375% Notes”) due June 15, 2028, unless earlier redeemed. The 4.375% Notes contain optional early redemption provisions, with redemption prices in excess of par. Interest, at a rate of 4.375% per annum, is payable semiannually in arrears on June 15 and December 15 of each year. A portion of the net proceeds from the 4.375% Notes offering was used to repay $600 million principal amount outstanding under the term loan facility of our prior credit agreement, and the balance is intended to be used for general corporate purposes. Deferred issuance costs amounted to $11 million. 5.375% Notes due 2022. We have $700 million aggregate principal amount of senior notes (the “5.375% Notes”) outstanding as of December 31, 2020, which are due November 15, 2022, unless earlier redeemed. Interest at a rate of 5.375% per annum, is payable semiannually in arrears on May 15 and November 15. 3.875% Notes due 2030. On November 17, 2020, we completed the private offering of $650 million aggregate principal amount of senior notes (the “3.875% Notes”) due November 15, 2030, unless earlier redeemed. The 3.875% Notes contain optional early redemption provisions, with redemption prices in excess of par. Interest, at a rate of 3.875% per annum, is payable semiannually in arrears on May 15 and November 15 of each year, commencing on May 15, 2021. A portion of the net proceeds from the 3.875% Notes offering was used to repay $330 million principal amount outstanding under the 4.875% Notes, and the balance is intended to be used for general corporate purposes. Deferred issuance costs amounted to $10 million. 4.875% Notes due 2025. In December 2020, we completed the early redemption of the entire $330 million aggregate principal amount of senior notes (the “4.875% Notes”) that would have been due June 15, 2025. In accordance with the indenture governing such notes, the 4.875% Notes were settled at 100% of par, plus an early redemption premium which amounted to $8 million, plus accrued and unpaid interest. In conjunction with the redemption, we wrote off $3 million in unamortized deferred issuance costs directly related to the 4.875% Notes. 1.125% Cash Convertible Senior Notes due 2020 In January 2020, we paid $39 million to settle the $12 million remaining principal amount outstanding of the 1.125% cash convertible senior notes due January 15, 2020 (the “1.125% Convertible Notes”), and settled the related conversion option. Other Expenses (Income), Net In the year ended December 31, 2020, we recognized an aggregate loss on debt repayment of $15 million including costs incurred in repayment of the term loan facility, the 4.875% Notes repayment costs described above, and other financing transactions. In the year ended December 31, 2019, we recognized a gain on debt repayment of $15 million in connection with the 1.125% Convertible Notes repayment transactions. These amounts are reported in “Other expenses (income), net” in the accompanying consolidated statements of income.

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