v3.21.2
Debt
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Debt
Note 7 – Debt

The following table sets forth the debt balances and activity as of, and for the six months ended, June 30, 2021:
(in millions)December 31,
2020
Proceeds from Issuances and Borrowings (1)
Note Redemptions (1)
Repayments
Reclassifications (1)
Other (2)
June 30,
2021
Short-term debt$4,579 $— $— $(660)$786 $(57)$4,648 
Long-term debt61,830 9,768 (4,742)— (786)(173)65,897 
Total debt to third parties66,409 9,768 (4,742)(660)— (230)70,545 
Short-term debt to affiliates— — — — 2,231 4 2,235 
Long-term debt to affiliates4,716 — — — (2,231)5 2,490 
Total debt$71,125 $9,768 $(4,742)$(660)$— $(221)$75,270 
(1)Issuances and borrowings, note redemptions, and reclassifications are recorded net of related issuance costs, discounts and premiums.
(2)Other includes the amortization of premiums, discounts, debt issuance costs and consent fees.
Our effective interest rate, excluding the impact of derivatives and capitalized interest, was approximately 4.1% and 4.9% for the three months ended June 30, 2021 and 2020, respectively, and 4.2% and 4.7% for the six months ended June 30, 2021 and 2020, respectively, on weighted average debt outstanding of $75.5 billion and $66.1 billion for the three months ended June 30, 2021 and 2020, respectively, and $74.5 billion and $48.5 billion for the six months ended June 30, 2021 and 2020, respectively. The weighted average debt outstanding was calculated by applying an average of the monthly ending balances of total short-term and long-term debt and short-term and long-term debt to affiliates, net of unamortized premiums, discounts, debt issuance costs and consent fees.

Issuances and Borrowings

During the six months ended June 30, 2021, we issued the following Senior Notes:
(in millions)Principal IssuancesPremiums and Issuance CostsNet Proceeds from Issuance of Long-Term DebtIssue Date
2.250% Senior Notes due 2026
$1,000 $(7)$993 January 14, 2021
2.625% Senior Notes due 2029
1,000 (7)993 January 14, 2021
2.875% Senior Notes due 2031
1,000 (6)994 January 14, 2021
2.625% Senior Notes due 2026
1,200 (7)1,193 March 23, 2021
3.375% Senior Notes due 2029
1,250 (7)1,243 March 23, 2021
3.500% Senior Notes due 2031
1,350 (8)1,342 March 23, 2021
2.250% Senior Notes due 2026
800 (2)798 May 13, 2021
3.375% Senior Notes due 2029
1,100 6 1,106 May 13, 2021
3.500% Senior Notes due 2031
1,100 6 1,106 May 13, 2021
Total of Senior Notes issued$9,800 $(32)$9,768 

Credit Facilities

On October 30, 2020, we entered into a $5.0 billion senior secured term loan commitment with certain financial institutions. On January 14, 2021, we issued an aggregate of $3.0 billion of Senior Notes. A portion of the senior secured term loan commitment was reduced by an amount equal to the aggregate gross proceeds of the Senior Notes, which reduced the commitment to $2.0 billion. On March 23, 2021, we issued an aggregate of $3.8 billion of Senior Notes. The senior secured term loan commitment was terminated upon the issuance of the $3.8 billion of Senior Notes.

Senior Notes

On January 14, 2021, we issued $1.0 billion of 2.250% Senior Notes due 2026, $1.0 billion of 2.625% Senior Notes due 2029, and $1.0 billion of 2.875% Senior Notes due 2031.

On March 23, 2021, we issued $1.2 billion of 2.625% Senior Notes due 2026, $1.25 billion of 3.375% Senior Notes due 2029, and $1.35 billion of 3.500% Senior Notes due 2031.

On May 13, 2021, we issued $800 million of 2.250% Senior Notes due 2026, $1.1 billion of 3.375% Senior Notes due 2029, and $1.1 billion of 3.500% Senior Notes due 2031.
Note Redemptions and Repayments

During the six months ended June 30, 2021, we made the following note redemptions and repayments:
(in millions)Principal Amount
Write-off of Issuance Cost and Consent Fees (1)
Redemption Premium (2)
Redemption DateRedemption Price
6.500% Senior Notes due 2026
$2,000 $36 $65 March 27, 2021103.250 %
6.000% Senior Notes due 2023
1,300 10 — May 23, 2021100.000 %
6.000% Senior Notes due 2024
1,000 9 — May 23, 2021100.000 %
5.125% Senior Notes due 2025
500 3 6 May 23, 2021101.281 %
Total Senior Notes to third parties redeemed$4,800 $58 $71 
3.360% Secured Series 2016-1 A-1 Notes due 2021
$438 $— $— VariousN/A
4.738% Secured Series 2018-1 A-1 Notes due 2025
131 — — VariousN/A
Other debt91 — — VariousN/A
Total Repayments$660 $— $— 
(1)Write-off of issuance costs and consent fees are included in Other expense, net in our Condensed Consolidated Statements of Comprehensive Income. Write-off of issuance costs and consent fees are included in Loss on redemption of debt within Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows.
(2)The redemption premium is the excess paid over the principal amount. Redemption premiums are included within Net cash used in financing activities in our Condensed Consolidated Statements of Cash Flows.

On March 27, 2021, we redeemed $2.0 billion aggregate principal amount of our 6.500% Senior Notes due 2026. The notes were redeemed at a redemption price equal to 103.250% of the principal amount of the notes (plus accrued and unpaid interest thereon), and were paid on March 26, 2021. The redemption premium was $65 million and the write off of issuance costs and consent fees was approximately $36 million, which was included in Other expense, net in our Condensed Consolidated Statements of Comprehensive Income and Losses on redemption of debt in our Condensed Consolidated Statements of Cash Flows.

On May 23, 2021, we redeemed $1.3 billion aggregate principal amount of our 6.000% Senior Notes due 2023, $1.0 billion aggregate principal amount of our 6.000% Senior Notes due 2024 and $500 million aggregate principal amount of our 5.125% Senior Notes due 2025. The notes were redeemed at a redemption price equal to 100.000%, 100.000% and 101.281% of the principal amount of the notes (plus accrued and unpaid interest thereon), respectively, and were paid on May 21, 2021. The redemption premium of our 5.125% Senior Notes due 2025 was $6 million, and the write off of issuance costs and consent fees of our 6.000% Senior Notes due 2023, 6.000% Senior Notes due 2024 and 5.125% Senior Notes due 2025 was approximately $10 million, $9 million and $3 million, respectively, which were included in Other expense, net in our Condensed Consolidated Statements of Comprehensive Income and Losses on redemption of debt in our Condensed Consolidated Statements of Cash Flows.

Subsequent to June 30, 2021, on August 2, 2021, we delivered a notice of prepayment on the remaining aggregate principal amount of our 3.360% Secured Series 2016-1 A-1 Notes due 2021. The aggregate principal amount, plus accrued and unpaid interest, of approximately $220 million is expected to be paid on or around August 20, 2021.

Restricted Cash

Certain provisions of our debt agreements require us to maintain specified cash collateral balances. Amounts associated with these balances are considered to be restricted cash.