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Debt | 9 Months Ended
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Sep. 30, 2020
Debt [Abstract] |
Debt | 10. Debt Changes in debt (in millions) were as follows:
| For the Nine |
| Months Ended |
| September 30, |
|  | 2020 |  |
Balance as of beginning-of-year |  | $ | 6,367 |  |
LIBOR + 150 bps term loan issued, due 2022 |  |  | 500 |  |
Senior notes issued: |  |  |  |  |
3.40% notes, due 2031 |  |  | 500 |  |
4.375% notes, due 2050 |  |  | 300 |  |
Repayment of 6.25% senior notes, due 2020 |  |  | (300 | ) |
Early extinguishment of 4.85% senior notes, due 2021 |  |  | (296 | ) |
Repayment of LIBOR + 150 bps term loan, due 2022 |  |  | (500 | ) |
Unamortized premiums (discounts) |  |  | (1 | ) |
Unamortized debt issuance costs |  |  | (6 | ) |
Unamortized adjustments from discontinued hedges |  |  | 256 |  |
Fair value hedge on interest rate swap agreements |  |  | (106 | ) |
Balance as of end-of-period |  | $ | 6,714 |  |
Details underlying the recognition of a loss on the early extinguishment of debt (in millions) reported within interest expense on our Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2020, were as follows:
Principal balance outstanding prior to payoff (1) |  | $ | 796 |  |
Unamortized debt issuance costs and discounts |  |  | (2 | ) |
Amount paid to retire debt |  |  | (809 | ) |
Gain (loss) on early extinguishment of debt, pre-tax |  | $ | (15 | ) |
(1)During the second quarter of 2020, we redeemed our $296 million outstanding principal amount of 4.85% senior notes due 2021 and repaid our $500 million LIBOR + 150 bps term loan due 2022. Facility Agreement for Senior Notes Issuance During August 2020, LNC entered into a 10-year facility agreement (the “facility agreement”) with a Delaware trust in connection with the sale by the trust of $500 million of pre-capitalized trust securities in a private placement pursuant to Rule 144A of the Securities Act of 1933, as amended. The trust invested the proceeds from the sale of the trust securities in a portfolio of principal and interest strips of U.S. Treasury securities. The facility agreement provides LNC the right to issue and sell to the trust, on one or more occasions, up to an aggregate principal amount outstanding at any one time of $500 million of LNC’s 2.330% senior notes due August 15, 2030 (“2.330% senior notes”) in exchange for a corresponding amount of U.S. Treasury securities held by the trust. The 2.330% senior notes will not be issued unless and until the issuance right is exercised. In return, LNC pays a semi-annual facility fee to the trust at a rate of 1.691% per year (applied to the unexercised portion of the maximum amount of senior notes that LNC could issue and sell to the trust), and LNC reimburses the trust for its expenses. The issuance right will be exercised automatically in full upon our failure to make certain payments to the trust, such as paying the facility fee or reimbursing the trust for its expenses, if the failure to pay is not cured within 30 days, or upon certain bankruptcy events involving LNC. We are also required to exercise the issuance right in full if our consolidated stockholders’ equity (excluding AOCI) falls below $2.75 billion, subject to adjustment from time to time in certain cases, and upon certain other events described in the facility agreement. Prior to any involuntary exercise of the issuance right, LNC has the right to repurchase any or all of the 2.330% senior notes then held by the trust in exchange for U.S. Treasury securities. LNC may redeem any outstanding 2.330% senior notes, in whole or in part, prior to their maturity. Prior to May 15, 2030, the redemption price will equal the greater of par or a make-whole redemption price. After May 15, 2030, any outstanding 2.330% senior notes may be redeemed at par.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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