Debt — Debt at each of the balance sheet periods consisted of:



	September 30, 2017				September 30, 2016				December 31, 2016
(millions)	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
3.75% Senior Notes due 2021	$	498.7	$	525.7	$	498.4	$	544.2	$	498.4	$	528.8
2.45% Senior Notes due 2027	496.0		475.3		495.6		497.5		495.8		464.6
6 5/8% Senior Notes due 2029	296.0		388.3		295.8		402.6		295.9		380.1
6.25% Senior Notes due 2032	395.3		518.7		395.1		533.3		395.2		499.0
4.35% Senior Notes due 2044	346.5		379.8		346.4		403.0		346.4		362.3
3.70% Senior Notes due 2045	395.2		392.6		395.1		418.7		395.1		372.5
4.125% Senior Notes due 2047	841.2		894.2		0		0		0		0
6.70% Fixed-to-Floating Rate Junior Subordinated Debentures due 2067	0		0		593.9		572.3		594.1		581.2
Other debt instruments	43.3		43.3		133.6		133.6		127.3		127.3
Total	$	3,312.2	$	3,617.9	$	3,153.9	$	3,505.2	$	3,148.2	$	3,315.8

The other debt instruments reported in the table above represent ARX indebtedness and consist of:



	September 30, 2017			September 30, 2016			December 31, 2016
($ in millions) Type of debt instrument	Number of Instruments	Carrying Value		Number of Instruments	Carrying Value		Number of Instruments	Carrying Value		Stated Maturity Date(s)
Term loans	2	$	43.3	2	$	68.4	2	$	62.1	December 2018 and 2019
Junior subordinated notes¹	0	0		2	41.2		2	41.2		June 2036 and 2037
Senior notes¹	0	0		4	24.0		4	24.0		Various²
Total		$	43.3		$	133.6		$	127.3

¹ The notes were redeemed during the third quarter 2017 (discussed below).

²The senior notes original maturity dates were May 2033, April 2034, December 2034, and June 2035.

The Progressive Corporation Debt

During the second quarter of 2017, we issued $850 million of 4.125% Senior Notes due 2047 (the “4.125% Senior Notes”) in an underwritten public offering. We received proceeds, after deducting underwriter’s discounts, commissions and other issuance costs, of approximately $841.1 million. In addition, upon issuance of the 4.125% Senior Notes, we closed a forecasted debt issuance hedge, which was entered into to hedge against a possible rise in interest rates, and recognized an $8.0 million pretax loss as part of accumulated other comprehensive income (loss); the loss will be recognized as an adjustment to interest expense and amortized over the life of the 4.125% Senior Notes.

During the second quarter 2017, we redeemed our 6.70% Fixed-to-Floating Rate Junior Subordinated Debentures due 2067 (the “6.70% Debentures”), at par, in the aggregate principal amount of $563.7 million. During the first quarter of 2017 and the full year 2016, we repurchased, in the open market, $30.9 million and $19.8 million, respectively, in aggregate principal amount of our 6.70% Debentures. Since the carrying value of the debt we repurchased differed from the amount paid to extinguish the debt, we recognized a gain of $0.2 million during the first quarter 2017 and $1.6 million in 2016.

During the third quarter 2016, we issued $500 million of our 2.45% Senior Notes due 2027 in an underwritten public offering. We received proceeds, after deducting underwriter’s discounts, commissions, and other issuance costs, of approximately $495.6 million.

Consistent with the other senior notes issued by Progressive, interest on the 4.125% Senior Notes and the 2.45% Senior Notes is payable semiannually and both notes are redeemable, in whole or in part, at any time.

ARX Debt (i.e., Other debt instruments)

The other debt instruments were issued by ARX, prior to The Progressive Corporation acquiring a controlling interest in 2015. ARX, not The Progressive Corporation or any of its other subsidiaries, is responsible for the other debt, which includes amounts that were borrowed and contributed to the capital of ARX’s insurance subsidiaries or used, or made available for use, for other business purposes.

In estimating the fair values of the other debt instruments, it was determined that the fair values of these notes are substantially equal to their carrying values, based on the current rates offered for debt of similar maturities and interest rates.

During the third quarter 2017, ARX redeemed their junior subordinated notes and senior notes, in their entirety, in the aggregate principal amount of $65.2 million, with proceeds from a 5-year, fixed-rate loan made by The Progressive Corporation to fund the redemptions; this intercompany transaction was eliminated in consolidation.

The Progressive Corporation Line of Credit

During the second quarter 2017, The Progressive Corporation entered into a new line of credit with PNC Bank, National Association (PNC) in the maximum principal amount of $250 million. This line of credit replaced a previous line of credit with a maximum principal amount of $100 million that expired in the second quarter 2017. Subject to the terms and conditions of the line of credit documents, advances under the line of credit (if any) will bear interest at a variable rate equal to the higher of PNC’s Prime Rate or the sum of the Federal Funds Open Rate plus 50 basis points. Each advance must be repaid on the 30th day after the advance or, if earlier, on April 30, 2018, the expiration date of the line of credit. Prepayments are permitted without penalty. All advances under the line of credit are subject to PNC’s discretion. We had no borrowings under either line of credit during the first nine months of 2017 or throughout 2016.