v3.26.1
Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt Note 10. Debt
Effective interest
rate as of March 31,
As of
March 31,
As of
December 31,
(In millions)
2026
2026
2025
3.500% Unsecured Notes due 2026
3.53%
$326
$326
4.750% Unsecured Notes due 2046
4.81%
554
554
4.600% Unsecured Notes due 2027
4.65%
700
700
4.700% Unsecured Notes due 2028
4.76%
700
700
4.950% Unsecured Notes due 2030
5.01%
1,000
1,000
5.400% Unsecured Notes due 2035
5.47%
1,000
1,000
7.125% Unsecured Notes due 2036
7.25%
445
445
6.875% Unsecured Notes due 2039
6.99%
191
191
6.500% Unsecured Notes due 2043
6.61%
239
239
4.200% Unsecured Notes due 2033
4.24%
50
50
7.650% Private Placement due 2031
7.80%
50
50
Other
11
12
Total principal
5,266
5,267
Unamortized (discounts), premiums and debt issuance costs
3
2
Total long-term debt
5,269
5,269
Less: current portion of long-term debt
(333)
(333)
Long-term debt
$4,936
$4,936
Debt is reported on the condensed consolidated balance sheets at par value adjusted for unamortized
discount or premium and unamortized issuance costs. The fair value of the Company’s long-term debt was
$5,011 million as of March 31, 2026 (comprised of $4,950 million in unsecured notes and $61 million in other
long-term debt), compared to $5,047 million as of December 31, 2025 ($4,989 million in unsecured notes and
$58 million in other long-term debt). The fair value of the unsecured notes is based on listed market prices
and was categorized as Level 1 in the fair value hierarchy.
The fair value of the Company’s long-term debt was as follows:
(In millions)
As of March 31, 2026
Carrying amount
$4,936
Fair value
$5,011
The Company recognized interest expense related to third-party debt of $72 million and $11 million for the
three months ended March 31, 2026 and 2025, respectively. Debt issuance costs amortized to Interest
expense, net on the unaudited condensed consolidated statements of operations were immaterial for the
three months ended March 31, 2026 and 2025. See Note 18 (Related party) for interest expense related to
borrowings and funding associated with the related-party note agreements for periods prior to the Spin-Off.
Bank credit
The Company has a commercial paper program for the issuance of short-term promissory notes with a
maximum aggregate principal amount of $2 billion outstanding at any time (“Commercial Paper Program”).
The Commercial Paper Program provides for private placements in the United States under Section 4(a)(2) of
the Securities Act. The short-term promissory notes issued under the Commercial Paper Program will be
unsecured notes ranking at least pari passu with all of our other senior unsecured indebtedness. These short-
term promissory notes are anticipated to be offered at par less a discount representing an interest factor or, if
interest bearing, at par. During the three months ended March 31, 2026, the Company utilized the Commercial
Paper Program. As of March 31, 2026, the amount outstanding was $777 million. The weighted average
interest rate for borrowings under the Commercial Paper Program was 4.22% for the three months ended
March 31, 2026. There were no borrowings outstanding under the Commercial Paper Program as of
December 31, 2025.
The Company has a 5-year committed, senior unsecured revolving credit facility that may be used for general
corporate purposes (the “Revolving Credit Facility”) with commitments of $2 billion. There were no
outstanding balances under the Revolving Credit Facility as of March 31, 2026 and December 31, 2025.
Covenants
Certain debt instruments contain restrictive covenants, including a financial covenant that requires the
Company to maintain a Consolidated Net Leverage Ratio (as defined in the Credit Agreement), which
measures consolidated net debt as of such date relative to consolidated earnings before interest, taxes,
depreciation and amortization for the four consecutive fiscal quarters then ended, of no more than 3.75 to 1,
tested at the end of each fiscal quarter. As of March 31, 2026, the Company was in compliance with the
financial covenants of its debt agreements.