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Debt
 6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Debt DEBT
The carrying value of our notes payable, finance leases and long-term debt as of June 30, 2019 and December 31, 2018 is listed in the following table, and is adjusted for the fair value of interest rate swaps, unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting. Original issue discounts and adjustments to fair value recorded in purchase accounting are amortized to interest expense over the term of the applicable instrument using the effective interest method.
  June 30, 2019December 31, 2018
MaturityInterest RatePrincipalAdjustmentsCarrying  ValuePrincipalAdjustmentsCarrying Value
Credit facilities:
Uncommitted Credit Facility
Variable$89.0 $— $89.0 $33.4 $— $33.4 
June 2023Variable170.0 — 170.0 159.0 — 159.0 
Senior notes:
September 20195.500  650.0 (0.3)649.7 650.0 (0.9)649.1 
March 20205.000  850.0 (0.6)849.4 850.0 (1.0)849.0 
November 20215.250  600.0 (1.0)599.0 600.0 (1.2)598.8 
June 20223.550  850.0 (3.2)846.8 850.0 (3.6)846.4 
May 20234.750  550.0 3.7 553.7 550.0 (5.5)544.5 
March 20253.200  500.0 (3.9)496.1 500.0 (4.3)495.7 
June 20262.900  500.0 (4.2)495.8 500.0 (4.4)495.6 
November 20273.375  650.0 (5.5)644.5 650.0 (5.9)644.1 
May 20283.950  800.0 (16.5)783.5 800.0 (17.3)782.7 
March 20356.086  181.9 (14.2)167.7 181.9 (14.4)167.5 
March 20406.200  399.9 (3.7)396.2 399.9 (3.8)396.1 
May 20415.700  385.7 (5.3)380.4 385.7 (5.3)380.4 
Debentures:
May 20219.250  35.3 (0.6)34.7 35.3 (0.7)34.6 
September 20357.400  148.1 (33.4)114.7 148.1 (33.8)114.3 
Tax-exempt:
2020 - 20491.500 - 1.9501,072.4 (6.1)1,066.3 1,042.4 (5.6)1,036.8 
Finance leases:
2019 - 20463.070 - 12.203107.7 — 107.7 109.5 — 109.5 
Total Debt$8,540.0 $(94.8)8,445.2 $8,445.2 $(107.7)8,337.5 
Less: current portion
(1,561.3)(690.7)
Long-term portion$6,883.9 $7,646.8 
Credit Facilities
In June 2018, we entered into a $2.25 billion unsecured revolving credit facility (the Credit Facility), which replaced our $1.0 billion and $1.25 billion unsecured credit facilities that would have matured in May 2021 and June 2019, respectively. The Credit Facility matures in June 2023. We may request two one-year extensions of the maturity date but none of the lenders are committed to participate in such extension. The Credit Facility also includes a feature that allows us to increase availability, at our option, by an aggregate amount of up to $1.0 billion through increased commitments from existing lenders or the addition of new lenders. At our option, borrowings under the Credit Facility bear interest at a Base Rate, or a Eurodollar Rate, plus an applicable margin based on our Debt Ratings (all as defined in the Credit Facility agreement).
The Credit Facility is subject to facility fees based on applicable rates defined in the Credit Facility agreement and the aggregate commitment, regardless of usage. Availability under our Credit Facility totaled $1,701.4 million and $1,694.1 million as of June 30, 2019 and December 31, 2018, respectively. The Credit Facility can be used for working capital, capital
expenditures, acquisitions, letters of credit and other general corporate purposes. The Credit Facility agreement requires us to comply with financial and other covenants. We may pay dividends and repurchase common stock if we are in compliance with these covenants.
As of June 30, 2019 and December 31, 2018, we had $170.0 million and $159.0 million of borrowings under our Credit Facility, respectively. We had $361.3 million and $379.6 million of letters of credit outstanding under our Credit Facility as of June 30, 2019 and December 31, 2018, respectively.
We also have an Uncommitted Credit Facility, which bears interest at LIBOR, plus an applicable margin and is subject to facility fees defined in the agreement, regardless of usage. We can use borrowings under the Uncommitted Credit Facility for working capital and other general corporate purposes. The agreement governing our Uncommitted Credit Facility requires us to comply with certain covenants. The Uncommitted Credit Facility may be terminated by either party at any time. We had $89.0 million of borrowings and $33.4 million of borrowings outstanding under our Uncommitted Credit Facility as of June 30, 2019 and December 31, 2018, respectively.
Senior Notes and Debentures
In 2018, we issued $800.0 million of 3.950% senior notes due 2028. Our senior notes and debentures are general unsecured obligations. Interest is payable semi-annually.
Tax-Exempt Financings
During the second quarter of 2019, we refinanced $35.0 million of tax-exempt financings and issued $30.0 million of new tax-exempt financings. As of June 30, 2019, we had $1,066.3 million of certain variable rate tax-exempt financings outstanding with maturities ranging from 2020 to 2049. As of December 31, 2018, we had $1,036.8 million of certain variable rate tax-exempt financings outstanding with maturities ranging from 2019 to 2044. Approximately 100% of our tax-exempt financings are remarketed quarterly by remarketing agents to effectively maintain a variable yield. The holders of the bonds can put them back to the remarketing agents at the end of each interest period. To date, the remarketing agents have been able to remarket all of our variable rate unsecured tax-exempt bonds.
Finance Leases
We had finance lease liabilities of $107.7 million and $109.5 million as of June 30, 2019 and December 31, 2018, respectively, with maturities ranging from 2019 to 2046.
Interest Rate Swap and Lock Agreements
Our ability to obtain financing through the capital markets is a key component of our financial strategy. Historically, we have managed risk associated with executing this strategy, particularly as it relates to fluctuations in interest rates, by using a combination of fixed and floating rate debt. From time to time, we also have entered into interest rate swap and lock agreements to manage risk associated with interest rates, either to effectively convert specific fixed rate debt to a floating rate (fair value hedges), or to lock interest rates in anticipation of future debt issuances (cash flow hedges).
Fair Value Hedges
During the second half of 2013, we entered into various interest rate swap agreements relative to our 4.750% fixed rate senior notes due in May 2023. The goal was to reduce overall borrowing costs and rebalance our debt portfolio's ratio of fixed to floating interest rates. As of June 30, 2019 and December 31, 2018, these swap agreements had a total notional value of $300.0 million and mature in May 2023, which is identical to the maturity of the hedged senior notes. We pay interest at floating rates based on changes in LIBOR and receive interest at a fixed rate of 4.750%. These transactions were designated as fair value hedges because the swaps hedge against the changes in fair value of the fixed rate senior notes resulting from changes in interest rates.
As of June 30, 2019 and December 31, 2018, the interest rate swap agreements are reflected at their fair value of $11.6 million and $2.5 million, respectively, and are included in other assets in our consolidated balance sheet. To the extent they are effective, these interest rate swap agreements are included as an adjustment to long-term debt in our consolidated balance sheets.
For the three months ended June 30, 2019 and 2018, we recognized a loss of $5.5 million and a gain of $2.5 million, respectively, on the change in fair value of the hedged senior notes attributable to changes in the benchmark interest rate, with an offsetting gain of $5.7 million and an offsetting loss of $2.7 million respectively, on the related interest rate swaps. For the six months ended June 30, 2019 and 2018, we recognized a loss of $8.9 million and a gain of $9.2 million, respectively, on the change in fair value of the hedged senior notes attributable to changes in the benchmark interest rate, with an offsetting gain of
$9.1 million and an offsetting loss of $9.5 million respectively, on the related interest rate swaps. The difference of these fair value changes for the six months ended June 30, 2018 was recorded directly in earnings as other income, net. In accordance with our adoption of ASU 2017-12, the difference of these fair value changes for the six months ended June 30, 2019 was recorded directly in earnings as an adjustment to interest expense in our consolidated statement of income.
For further detail regarding the effect of our fair value hedging on interest expense, refer to Note 12, Financial Instruments, to our unaudited consolidated financial instruments in Item 1 of Part I of this Quarterly Report on Form 10-Q.
Cash Flow Hedges
As of June 30, 2019 and December 31, 2018, our interest rate lock agreements had an aggregate notional value of $875.0 million and $725.0 million, respectively, with fixed interest rates ranging from 1.900% to 3.250%. We entered into these transactions to manage exposure to fluctuations in interest rates in anticipation of planned future issuances of senior notes in 2019 through 2021. Upon the expected issuance of senior notes, we will terminate the interest rate locks and settle with our counterparties. These transactions were accounted for as cash flow hedges. The fair value of our interest rate locks was determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy). The aggregate fair values of the outstanding interest rate locks as of June 30, 2019 were assets of $0.3 million, which were recorded in prepaid expenses and other current assets in our consolidated balance sheet and liabilities of $32.4 million, which were recorded in other accrued liabilities and other long-term liabilities in our consolidated balance sheet. As of December 31, 2018, the aggregate fair values of the outstanding interest rate locks were assets of $10.3 million and were recorded in other assets in our consolidated balance sheet.
Total unrealized loss recognized in other comprehensive income for interest rate locks was $19.9 million and $12.2 million for the three months ended June 30, 2019 and 2018, respectively. Total unrealized loss (gain) recognized in other comprehensive income for interest rate locks was $31.2 million and $(6.0) million for the six months ended June 30, 2019 and 2018, respectively.
As of June 30, 2019 and December 31, 2018, our previously terminated interest rate locks were recorded as components of accumulated other comprehensive income, net of tax of $10.9 million and $11.2 million, respectively. The amortization of the terminated interest rate locks is recorded as an adjustment to interest expense over the life of the issued debt using the effective interest method. We expect to amortize approximately $0.9 million of net interest income over the next 12 months as a yield adjustment of our senior notes.
For detail regarding the effect of our cash flow hedging on interest expense, refer to Note 12, Financial Instruments, to our unaudited consolidated financial instruments in Item 1 of Part I of this Quarterly Report on Form 10-Q.