Short-Term and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2016

Short-Term and Long-Term Debt [Abstract]

Schedule of debt

	As of December 31,
	2016			2015
Long-Term Debt, Excluding Current Portion
Senior notes:
LIBOR + 3 bps notes, due 2017 (1)	$	-		$	250
7.00% notes, due 2018		200			200
LIBOR + 110 bps loan, due 2018		250			250
8.75% notes, due 2019 (2)		287			487
6.25% notes, due 2020 (2)		300			300
4.85% notes, due 2021 (2)		300			300
4.20% notes, due 2022 (2)		300			300
4.00% notes, due 2023 (2)		350			350
3.35% notes, due 2025 (2)		300			300
3.63% notes, due 2026 (2)		400			-
6.15% notes, due 2036 (2)		348			498
6.30% notes, due 2037 (1)(2)		375			375
7.00% notes, due 2040 (1)(2)		500			500
Total senior notes		3,910			4,110
Capital securities:
7.00%, due 2066		722			722
6.05%, due 2067		491			491
Total capital securities		1,213			1,213
Unamortized premiums (discounts)		(9	)		(12	)
Unamortized debt issuance costs		(27	)		(29	)
Fair value hedge – interest rate swap agreements		258			271
Total unamortized premiums (discounts), unamortized debt
issuance costs and fair value hedge on interest rate swap agreements		222			230
Total long-term debt	$	5,345		$	5,553

⁽¹⁾ Categorized as operating debt for leverage ratio calculations as the proceeds were used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies.

⁽²⁾ We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption.

Details underlying the recognition of gain on extinguishment of debt

	For the Years Ended December 31,
	2016			2015		2014
Principal balance outstanding prior to payoff (1)	$	350		$	-	$	-
Unamortized debt issuance costs and discounts prior to payoff		(3	)		-		-
Amount paid to retire debt		(410	)		-		-
Gain (loss) on extinguishment of debt, pre-tax	$	(63	)	$	-	$	-

⁽¹⁾ During the fourth quarter of 2016, we repurchased $200 million of our 8.75% senior notes due 2019 and $150 million of our 6.15% senior notes due 2036.

Future principal payments due on long-term debt

2018	$	450
2019		287
2020		300
2021		300
Thereafter		3,786
Total	$	5,123

Credit facilities and letters of credit

		As of December 31, 2016
	Expiration	Maximum		LOCs
	Date	Available		Issued
Credit Facilities
Five-year revolving credit facility	Jun-2021	$	2,500	$	342
LOC facility (1)	Dec-2019		350		350
LOC facility (2)	Mar-2023		110		110
LOC facility (1)	Mar-2023		924		924
LOC facility (1)	Aug-2031		990		907
LOC facility (1)	Oct-2031		1,029		1,023
Total		$	5,903	$	3,656

⁽¹⁾ Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements.

⁽²⁾ We entered into an irrevocable LOC facility agreement with a third-party lender supporting certain fees owed to another third-party lender that automatically renews on an annual basis, unless not extended by the third-party upon 30 days’ notice.