| SENIOR NOTES The table below displays Holdings’ outstanding senior notes (the “Senior Notes”). Fair value is based on quoted market prices, but due to limited trading activity, the Senior Notes are considered Level 2 in the fair value hierarchy. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | (Dollars in millions) | Date Issued | | Date Due | | Principal
Amounts | | Consolidated
Balance Sheet
Amount | | Fair
Value | | Consolidated
Balance Sheet
Amount | | Fair
Value | 4.868% Senior notes | 6/5/2014 | | 6/1/2044 | | $ | 400 | | | $ | 398 | | | $ | 355 | | | $ | 398 | | | $ | 347 | | 3.5% Senior notes | 10/7/2020 | | 10/15/2050 | | 1,000 | | | 982 | | | 685 | | | 982 | | | 681 | | 3.125% Senior notes | 10/4/2021 | | 10/15/2052 | | 1,000 | | | 971 | | | 622 | | | 971 | | | 620 | | | | | | | $ | 2,400 | | | $ | 2,351 | | | $ | 1,662 | | | $ | 2,350 | | | $ | 1,648 | |
(Some amounts may not reconcile due to rounding.) Interest expense incurred in connection with the Senior Notes is as follows for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | (Dollars in millions) | Interest Paid | | Payable Dates | | 2025 | | 2024 | | 2025 | | 2024 | 4.868% Senior notes | Semi-annually | | June 1/December 1 | | $ | 5 | | | $ | 5 | | | $ | 10 | | | $ | 10 | | 3.5% Senior notes | Semi-annually | | April 15/October 15 | | 9 | | | 9 | | | 18 | | | 18 | | 3.125% Senior notes | Semi-annually | | April 15/October 15 | | 8 | | | 8 | | | 16 | | | 16 | | | | | | | $ | 22 | | | $ | 22 | | | $ | 43 | | | $ | 43 | |
(Some amounts may not reconcile due to rounding.)
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