Long-Term Debt

12 Months Ended

Dec. 31, 2023

Long-Term Debt, Unclassified [Abstract]

LONG-TERM DEBT

LONG-TERM DEBT

Long-term debt is summarized as follows:

	December 31,
(In millions)	2023		2022
Subordinated notes	$	538	$	519
Senior notes	—		128
Finance lease obligations	4		4
Total	$	542	$	651

The carrying values presented above include the par value of the debt, adjusted for any unamortized premium or discount, unamortized debt issuance costs, and fair value hedge basis adjustments. The decrease in long-term debt from the prior year was primarily due to the maturity of $128 million, 4.50% senior notes during the second quarter of 2023.

During 2023, we terminated the remaining receive-fixed interest rate swap designated as a hedge of the $500 million subordinated notes due in October 2029. The remaining unamortized hedge basis adjustment from the terminated hedging relationship is amortized into earnings through the contractual maturity date of the hedged notes. See Note 7 for more information on derivatives designated as qualifying hedges.

Subordinated Notes

The following schedule presents our subordinated notes outstanding at December 31, 2023:

(Dollar amounts in millions)	Subordinated notes
Coupon rate	Balance		Par amount		Maturity
6.95%	$	88	$	88	September 2028
3.25%	450		500		October 2029
Total	$	538	$	588

The 6.95% subordinated notes are unsecured, with interest payable quarterly; the earliest redemption date for these notes was September 15, 2023, after which the interest rate changed to an annual floating rate equal to 3-month Term SOFR + 4.15%. The 3.25% subordinated notes are unsecured, interest is payable semi-annually, and the earliest redemption date is July 29, 2029.

Senior Notes

The senior notes are unsecured, with interest payable semi-annually. They were issued under a shelf registration filed with the Securities and Exchange Commission (“SEC”).

Maturities of Long-term Debt

The following schedule presents our long-term debt by maturity for each of the next five years:

(In millions)	Par amount 1
2024	$	—
2025	—
2026	—
2027	—
2028	88
Thereafter	500
Total	$	588

1 Does not include basis adjustments related to terminated or active fair value hedges.