Short-Term and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2024

Details underlying short-term and long-term debt (in millions) were as follows:


	As of December 31,
	2024		2023
Short-Term Debt
Current maturities of long-term debt	$	300	$	250
Total short-term debt	$	300	$	250

Long-Term Debt, Excluding Current Portion
Senior notes:

3.35% notes, due 2025 (1)	$	–	$	300
3.625% notes, due 2026 (1)	400		400
3.80% notes, due 2028 (1)	500		500
3.05% notes, due 2030 (1)	500		500
3.40% notes, due 2031 (1)	500		500
3.40% notes, due 2032 (1)	300		300
5.852% notes, due 2034 (1)	350		–
6.15% notes, due 2036 (1)	243		243
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		450
4.375% notes, due 2050 (1)	300		300
Total senior notes	4,418		4,368
Term loans:
Variable, due 2027 (3)	150		–
Total term loans	150		–
Subordinated notes:
Variable, due 2066 (4) (5)	562		562
Variable, due 2067 (4) (6)	433		433
Total subordinated notes	995		995
Capital securities:
Variable, due 2066 (4) (7)	160		160
Variable, due 2067 (4) (8)	58		58
Total capital securities	218		218
Unamortized premiums (discounts)	(6)		(6)
Unamortized debt issuance costs	(30)		(30)
Unamortized adjustments from discontinued hedges	310		326
Fair value hedge on interest rate swap agreements	(199)		(172)
Total long-term debt	$	5,856	$	5,699

(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) Transitioned from London Interbank Offered Rate (“LIBOR”)-based to Secured Overnight Financing Rate (“SOFR”)-based interest rates, plus an applicable transition spread of 10 basis points due to the discontinued publication of LIBOR effective after June 30, 2023. Our applicable credit spread was 137.5 and 112.5 basis points as of December 31, 2024 and 2023, respectively. In 2024, we repaid $100 million and refinanced and extended the term loan into a $150 million variable-rate term loan due July 16, 2027.

(4) 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 subordinated notes and capital securities.

(5) Transitioned from LIBOR-based to 3-Month ISDA SOFR-based interest rates after June 30, 2023, plus a credit spread of 236 basis points.

(6) Transitioned from LIBOR-based to 3-Month ISDA SOFR-based interest rates after June 30, 2023, plus a credit spread of 204 basis points.

(7) Transitioned from LIBOR-based to 3-Month Term SOFR-based interest rates after June 30, 2023, plus a transition spread of 26.161 basis points after June 30, 2023, plus a credit spread of 236 basis points.

(8) Transitioned from LIBOR-based to 3-Month Term SOFR-based interest rates after June 30, 2023, plus a transition spread of 26.161 basis points after June 30, 2023, plus a credit spread of 204 basis points.

Future Principal Payments

Future principal payments due on long-term debt (in millions) as of December 31, 2024, were as follows:


2025	$	300
2026	400
2027	150
2028	500
2029	–
Thereafter	4,731
Total	$	6,081

Schedule of Line of Credit Facilities

Credit facilities, which allow for borrowing or issuances of letters of credit (“LOCs”), (in millions) were as follows:


		As of December 31, 2024
	Expiration Date	Maximum Available		LOCs Issued
Credit Facilities
Five-year revolving credit facility	December 21, 2028	$	2,000	$	250
LOC facility (1)	August 26, 2031	965		895
LOC facility (1)	October 1, 2031	827		827
Total		$	3,792	$	1,972

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