Short-Term and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2017

Short-Term and Long-Term Debt [Abstract]



	As of December 31,
	2017			2016
Short-Term Debt
Current maturities of long-term debt	$	450		$	-
Total short-term debt	$	450		$	-

Long-Term Debt, Excluding Current Portion
Senior notes:
7.00% notes, due 2018	$	-		$	200
LIBOR + 110 bps loan, due 2018		-			250
8.75% notes, due 2019 (1)		287			287
6.25% notes, due 2020 (1)		300			300
4.85% notes, due 2021 (1)		300			300
4.20% notes, due 2022 (1)		300			300
4.00% notes, due 2023 (1)		350			350
3.35% notes, due 2025 (1)		300			300
3.63% notes, due 2026 (1)		400			400
6.15% notes, due 2036 (1)		348			348
6.30% notes, due 2037 (1)(2)		375			375
7.00% notes, due 2040 (1)(2)		500			500
Total senior notes		3,460			3,910

Capital securities:
LIBOR + 236 bps, due 2066 (3)		722			722
LIBOR + 204 bps, due 2067 (3)		491			491
Total capital securities		1,213			1,213
Unamortized premiums (discounts)		(8	)		(9	)
Unamortized debt issuance costs		(25	)		(27	)
Fair value hedge – interest rate swap agreements		254			258
Total unamortized premiums (discounts), unamortized debt
issuance costs and fair value hedge on interest rate swap agreements		221			222
Total long-term debt	$	4,894		$	5,345

⁽¹⁾

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.

⁽²⁾

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.

⁽³⁾

In May 2016, the capital securities due 2066 changed from a 7.00% fixed rate to a floating rate of LIBOR + 236 bps. In April 2017, the capital securities due 2067 changed from a 6.05% fixed rate to a floating rate of LIBOR + 204 bps. To hedge the variability in rates, we purchased forward starting swaps to lock in a fixed rate of approximately 5% over the remaining terms of the capital securities, respectively.

Details underlying the recognition of gain on extinguishment of debt



	For the Years Ended December 31,
	2017		2016			2015
Principal balance outstanding prior to payoff (1)	$	-	$	350		$	-
Unamortized debt issuance costs and discounts prior to payoff		5		(3	)		-
Amount paid to retire debt		-		(410	)		-
Gain (loss) on early extinguishment of debt, pre-tax	$	5	$	(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
2022		300
Thereafter		3,486
Total	$	5,123

Credit facilities and letters of credit



		As of December 31, 2017
	Expiration	Maximum		LOCs
	Date	Available		Issued
Credit Facilities
Five-year revolving credit facility	Jun-2021	$	2,500	$	281
LOC facility (1)	Dec-2019		350		350
LOC facility (1)	Aug-2031		990		945
LOC facility (1)	Oct-2031		1,023		1,020
Total		$	4,863	$	2,596

⁽¹⁾

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