CHENIERE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED Restrictive Debt Covenants Interest Expense Fair Value Disclosures 2019 and 2018. As of December 31, 2019, the if-converted value of the 2045 Cheniere Convertible Senior Notes did not exceed the principal balance. As of December 31, 2019, each of our issuers was in compliance with all covenants related to their respective debt agreements. Total interest expense, including interest expense related to our convertible notes, consisted of the following (in millions): The following table shows the carrying amount and estimated fair value of our debt (in millions): (1) Includes the SPL Senior Notes except the 2037 SPL Senior Notes, the CQP Senior Notes and the 144A CCH Senior Notes. The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments. (2) The Level 3 estimated fair value was calculated based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including our stock price and interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market.  (3) Includes SPL Working Capital Facility, 2016 CQP Credit Facilities, 2019 CQP Credit Facilities, CCH Credit Facility, CCH Working Capital Facility, Cheniere Revolving Credit Facility and Cheniere Marketing trade finance facilities. The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and the debt may be repaid, in full or in part, at any time without penalty.  (4) The Level 1 estimated fair value was based on unadjusted quoted prices in active markets for identical liabilities that we had the ability to access at the measurement date. 102 Year Ended December 31, 2019 2018 2017 Interest cost on convertible notes: Interest per contractual rate $ 256 $ 237 $ 219 Amortization of debt discount 40 35 29 Amortization of debt issuance costs 12 9 7 Total interest cost related to convertible notes 308 281 255 Interest cost on debt and finance leases excluding convertible notes 1,538 1,397 1,271 Total interest cost 1,846 1,678 1,526 Capitalized interest (414 ) (803 ) (779 ) Total interest expense, net $ 1,432 $ 875 $ 747 December 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior notes (1) $ 22,700 $ 24,650 $ 19,700 $ 19,901 2037 SPL Senior Notes (2) 800 934 800 817 4.80% CCH Senior Notes (2) 727 830 — — 3.925% CCH Senior Notes (2) 475 495 — — Credit facilities (3) 3,283 3,283 5,395 5,395 2021 Cheniere Convertible Unsecured Notes (2) 1,278 1,312 1,218 1,236 2025 CCH HoldCo II Convertible Senior Notes (2) 1,578 1,807 1,455 1,612 2045 Cheniere Convertible Senior Notes (4) 625 498 625 431