Long-Term Debt and Credit Facilities (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Principal and Carrying Amounts of Debt

The following table presents the principal amounts of AGMH's outstanding Junior Subordinated Debentures that AGUS purchased and the loss on extinguishment of debt recognized by the Company.

AGUS's Purchase

of AGMH's Junior Subordinated Debentures

	Third Quarter				Nine Months
	2018		2017		2018		2017
	(in millions)
Principal amount repurchased	$	25	$	6	$	72	$	28
Loss on extinguishment of debt (1)	9		2		26		9

 ____________________

(1) Included in other income in the condensed consolidated statements of operations. The loss represents the difference between the amount paid to purchase AGMH's debt and the carrying value of the debt, which includes the unamortized fair value adjustments that were recorded upon the acquisition of AGMH in 2009.

The principal and carrying values of the Company’s long-term debt are presented in the table below.

Principal and Carrying Amounts of Debt

	As of September 30, 2018						As of December 31, 2017
	Principal			Carrying Value			Principal			Carrying Value
	(in millions)
AGUS:
7% Senior Notes (1)	$	200		$	197		$	200		$	197
5% Senior Notes (1)	500			497			500			496
Series A Enhanced Junior Subordinated Debentures (2)	150			150			150			150
Total AGUS	850			844			850			843
AGMH(3):
67/8% QUIBS (1)	100			70			100			70
6.25% Notes (1)	230			143			230			142
5.6% Notes (1)	100			57			100			57
Junior Subordinated Debentures (2)	300			196			300			192
Total AGMH	730			466			730			461
AGM:
AGM Notes Payable	5			5			6			6
Total AGM	5			5			6			6
Purchased debt	(100		)	(66		)	(28		)	(18		)
Total	$	1,485		$	1,249		$	1,558		$	1,292

 ____________________

(1) AGL fully and unconditionally guarantees these obligations.

(2) Guaranteed by AGL on a junior subordinated basis.

(3) Carrying amounts are different than principal amounts due primarily to fair value adjustments at the date of the AGMH acquisition, which are accreted or amortized into interest expense over the remaining terms of these obligations.