Short-Term and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2018

Short-Term and Long-Term Debt [Abstract]



	As of December 31,
	2018			2017
Short-Term Debt
Current maturities of long-term debt	$	-		$	450
Total short-term debt	$	-		$	450

Long-Term Debt, Excluding Current Portion
Senior notes:
8.75% notes, due 2019 (1)	$	-		$	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
LIBOR + 100 bps loan, due 2023		200			-
4.00% notes, due 2023 (1)		500			350
3.35% notes, due 2025 (1)		300			300
3.63% notes, due 2026 (1)		400			400
3.80% notes, due 2028 (1)		500			-
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
4.35% notes, due 2048 (1)		450			-
Total senior notes		4,473			3,460

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)		(3	)		(8	)
Unamortized debt issuance costs		(33	)		(25	)
Unamortized adjustments from discontinued hedges		123			-
Fair value hedge on interest rate swap agreements		66			254
Total unamortized premiums (discounts), unamortized debt
issuance costs and fair value hedge on interest rate swap agreements		153			221
Total long-term debt	$	5,839		$	4,894

⁽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 primarily used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies.

⁽³⁾

To hedge the variability in rates, we purchased interest rate swaps to lock in a fixed rate of approximately 5% over the remaining terms of the capital securities.

Schedule Of Extinguishment Of Debt



	For the Years Ended December 31,
	2018			2017		2016
Principal balance outstanding prior to payoff (1)	$	287		$	-	$	350
Unamortized debt issuance costs and discounts prior to payoff		(1	)		5		(3	)
Amount paid to retire debt		(309	)		-		(410	)
Gain (loss) on early extinguishment of debt, pre-tax	$	(23	)	$	5	$	(63	)

⁽¹⁾

During the first quarter of 2018, we repurchased $287 million of our 8.75% senior notes due 2019. 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



2019	$	-
2020		300
2021		300
2022		300
2023		700
Thereafter		4,086
Total	$	5,686

Credit facilities and letters of credit



		As of December 31, 2018
	Expiration	Maximum		LOCs
	Date	Available		Issued
Credit Facilities
Five-year revolving credit facility	Jun-2021	$	2,500	$	1,001
LOC facility (1)	Dec-2019		350		350
LOC facility (1)	Aug-2031		990		953
LOC facility (1)	Oct-2031		1,006		1,006
Total		$	4,846	$	3,310

⁽¹⁾

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