12. Long-term Debt

Our long-term debt carrying value consisted of the following:



	December 31,
(Dollars in millions)	2018		2017
6.00% Senior Notes due 2018	—		66
9.625% Senior Notes due 2019	—		488
5.125% Senior Notes due 2020	364		364
5.875% Exchangeable Senior Notes due 2021	1,194		1,170
7.75% Senior Notes due 2021	743		741
4.50% Senior Notes due 2022	644		643
8.25% Senior Notes due 2023	742		739
9.875% Senior Notes due 2024	781		780
9.875% Senior Notes due 2025	588		—
6.50% Senior Notes due 2036	447		447
6.80% Senior Notes due 2037	255		255
7.00% Senior Notes due 2038	456		456
9.875% Senior Notes due 2039	245		245
6.75% Senior Notes due 2040	457		456
5.95% Senior Notes due 2042	369		368
Term Loan Agreement due 2020	308		372
Capital and Other Lease Obligations	69		86
Other	—		2
Total Senior Notes and Other Debt	7,662		7,678
Less: Amounts Due in One Year	57		137
Long-term Debt	$	7,605	$	7,541

The accrued interest on our borrowings was $140 million and $145 million at December 31, 2018 and 2017, respectively. The following is a summary of scheduled long-term debt maturities by year (dollars in millions):



2019	$	57
2020	622
2021	1,937
2022	644
2023	742
Thereafter	3,660
	$	7,662

Term Loan Agreement

As of December 31, 2018, our borrowings, net of repayments, under the Term Loan Agreement were $310 million. The interest rate for borrowings under our Term Loan Agreement is variable and is determined by our leverage ratio as of the most recent fiscal quarter, as either (1) the one-month London Interbank Offered Rate (“LIBOR”) plus a variable margin rate ranging from 1.425% to 3.2% or (2) the alternate base rate plus the applicable margin ranging from 0.425% to 2.2%. For the year ended December 31, 2018, the interest rate for the Term Loan Agreement was LIBOR plus a margin rate of 2.3%. The Term Loan Agreement requires a principal repayment of $12.5 million on the last day of each quarter.

Exchangeable Senior Notes, Senior Notes and Tender Offers

We have issued various senior notes, all of which rank equally with our existing and future senior unsecured indebtedness, which have semi-annual interest payments and no sinking fund requirements.

Exchangeable Senior Notes

On June 7, 2016, we issued exchangeable notes with a par value of $1.265 billion and an interest rate of 5.875%. The notes have a conversion price of $7.74 per share and are exchangeable into a total of 163.4 million shares of the Company upon the occurrence of certain events on or after January 1, 2021. The notes mature on July 1, 2021. We have the choice to settle an exchange of the notes in any combination of cash or shares. As of December 31, 2018, the if-converted value did not exceed the principal amount of the notes.

The exchange feature is reported with a carrying amount of $97 million in “Capital in Excess of Par Value” on the accompanying Consolidated Balance Sheets. The debt component of the exchangeable notes has been reported separately in “Long-term Debt” on the accompanying Consolidated Balance Sheets with a carrying value of $1.194 billion at December 31, 2018, net of remaining unamortized discount and debt issuance costs of $71 million. The discount on the debt component is being amortized over the remaining maturity of the exchangeable notes at an effective interest rate of 8.4%. In 2018, 2017 and 2016, interest expense related to accrued interest and amortization of the discount on the notes was $99 million, $97 million and $54 million. At December 31, 2018, $74 million was related to accrued interest and $25 million was related to amortization of the discount.

Senior Notes

In February 2018, we repaid in full our 6.00% senior notes due March 2018. On February 28, 2018, we issued $600 million in aggregate principal amount of our 9.875% senior notes due 2025.

In June 2017, we repaid in full our 6.35% senior notes on the maturity date. On June 26, 2017, we issued an additional $250 million aggregate principal amount of our 9.875% senior notes due 2024. These notes were issued as additional securities under an indenture pursuant to which we previously issued $540 million aggregate principal amount of our 9.875% senior notes due 2024.

Tender Offers

The February 2018 debt offering partially funded a concurrent tender offer to purchase for cash any and all of our 9.625% senior notes due 2019. We settled the tender offer in cash for the amount of $475 million, retiring an aggregate face value of $425 million and accrued interest of $20 million. In April 2018, we repaid the remaining principal outstanding on an early redemption of the bond. We recognized a cumulative loss of $34 million on these transactions in “Bond Tender and Call Premium” on the accompanying Consolidated Statements of Operations.

In June 2016, we commenced a cash tender offer completed on July 1, 2016 for the repurchase of a portion of our 6.35% senior notes due 2017, 6.00% senior notes due 2018, 9.625% senior notes due 2019, and 5.125% senior notes due 2020. We settled the June early tender offers in cash in the amount of $1.972 billion, retiring an aggregate face value of senior notes tendered of $1.87 billion and accrued interest of $27 million. We recognized a cumulative loss of $78 million on these transactions in “Bond Tender and Call Premium” on the accompanying Consolidated Statements of Operations. On June 30, 2016, we accepted additional tenders of $2 million of debt, which we settled in cash on July 1, 2016.