NOTE 9. BORROWINGS Debt The following table presents the components of our debt: | | | | | | | | | | | | | | | | | June 30, | | March 31, | (Dollars in millions) | | Interest Rate | | Maturity | | 2025 | | 2025 | Unsecured senior notes due 2026 | | 2.05% | | October 2026 | | $ | 700 | | $ | 700 | Unsecured senior notes due 2028 | | 2.70% | | October 2028 | | | 500 | | | 500 | Unsecured senior notes due 2031 | | 3.15% | | October 2031 | | | 650 | | | 650 | Unsecured senior notes due 2034 | | 6.35% * | | February 2034 | | | 500 | | | 500 | Unsecured senior notes due 2041 | | 4.10% | | October 2041 | | | 550 | | | 550 | Finance lease and other obligations | | 5.46% † | | 2025-2031 | | | 258 | | | 290 | | | | | | | $ | 3,158 | | $ | 3,190 | Less: Unamortized discount | | | | | | | 4 | | | 4 | Less: Unamortized debt issuance costs | | | | | | | 13 | | | 14 | Less: Current portion of long-term debt | | | | | | | 128 | | | 129 | Total long-term debt | | | | | | $ | 3,014 | | $ | 3,042 |
* | Including the cross-currency swaps that the Company entered into subsequent to the issuance of the unsecured senior notes due 2034, the effective interest rate on such notes was approximately 3.84% at the time of issuance. For more information, see Note 7 – Financial Assets and Liabilities. |
†Weighted-average discount rate. Contractual obligations of long-term debt outstanding at June 30, 2025, exclusive of finance lease obligations, are as follows: | | | | (Dollars in millions)* | | Principal | Year ending March 31: | | | | 2026 (remaining nine months) | | $ | 22 | 2027 | | | 710 | 2028 | | | — | 2029 | | | 500 | 2030 | | | — | Thereafter | | | 1,700 | Total | | $ | 2,932 |
* Contractual obligations approximate scheduled repayments. As of June 30, 2025, there were no borrowings under the Company’s revolving credit agreement. The Company is in compliance with its debt covenants in all periods presented.
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