Long-Term Debt and Credit Facilities (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Principal and Carrying Amounts of Debt

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

Principal and Carrying Amounts of Debt 

	As of December 31, 2019						As of December 31, 2018
	Principal			Carrying Value			Principal			Carrying Value
	(in millions)
AGUS:
7% Senior Notes (1)	$	200		$	197		$	200		$	197
5% Senior Notes (1)	500			497			500			497
Series A Enhanced Junior Subordinated Debentures (2)	150			150			150			150
AGUS long-term debt	850			844			850			844
Intercompany loans payable	290			290			50			50
Total AGUS	1,140			1,134			900			894
AGMH (3):
67/8% QUIBS (1)	100			70			100			70
6.25% Notes (1)	230			144			230			143
5.6% Notes (1)	100			58			100			57
Junior Subordinated Debentures (2)	300			204			300			198
Total AGMH	730			476			730			468
AGM (3):
AGM Notes Payable	4			4			5			5
Total AGM	4			4			5			5
AGMH's debt purchased by AGUS	(131		)	(89		)	(128		)	(84		)
Elimination of intercompany loans payable	(290		)	(290		)	(50		)	(50		)
Total	$	1,453		$	1,235		$	1,457		$	1,233

 ____________________

(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 primarily due 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.

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. The Company may choose to make additional purchases of this or other Company debt in the future.

AGUS's Purchase

of AGMH's Junior Subordinated Debentures

	Year Ended December 31,
	2019		2018		2017
	(in millions)
Principal amount repurchased	$	3	$	100	$	28
Loss on extinguishment of debt (1)	1		34		9

 ____________________

(1)

Included in other income in the 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.

Expected Maturity Schedule of Debt

Expected Maturity Schedule of Debt

As of December 31, 2019

	AGUS		AGMH (1)		AGM		Eliminations (2)			Total
	(in millions)
2020	$	—	$	—	$	2	$	—		$	2
2021	—		—		—		—			—
2022	—		—		—		—			—
2023	40		—		—		(40		)	—
2024	500		—		—		—			500
2025-2044	450		—		2		(250		)	202
2045-2064	—		—		—		—			—
2065-2084	150		300		—		(131		)	319
Thereafter	—		430		—		—			430
Total	$	1,140	$	730	$	4	$	(421	)	$	1,453

 ____________________

(1) Includes AGMH's debt purchased by AGUS of $131 million.

(2)

Includes eliminations of intercompany loans payable and AGMH's debt purchased by AGUS.

Schedule of Interest Expense

Interest Expense

	Year Ended December 31,
	2019			2018			2017
	(in millions)
AGUS:
7% Senior Notes	$	13		$	13		$	13
5% Senior Notes	26			26			26
Series A Enhanced Junior Subordinated Debentures	7			7			5
AGUS long-term debt	46			46			44
Intercompany loans payable	5			3			3
Total AGUS	51			49			47
AGMH:
67/8% QUIBS	7			7			7
6.25% Notes	16			15			16
5.6% Notes	6			6			6
Junior Subordinated Debentures	25			25			25
Total AGMH	54			53			54
AGMH's debt purchased by AGUS	(11		)	(5		)	(1		)
Elimination of intercompany loans payable	(5		)	(3		)	(3		)
Total	$	89		$	94		$	97