Halliburton 2015 Annual Report Download - page 77

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Note 8. Debt
Our long-term debt, including current maturities, consisted of the following:
December 31
Millions of dollars 2015 2014
5.0% senior notes due November 2045 $ 2,000 $
—
3.8% senior notes due November 2025 2,000
—
3.375% senior notes due November 2022 1,250
—
2.7% senior notes due November 2020 1,250
—
3.5% senior notes due August 2023 1,100 1,100
4.85% senior notes due November 2035 1,000
—
6.15% senior notes due September 2019 1,000 1,000
7.45% senior notes due September 2039 1,000 1,000
4.75% senior notes due August 2043 900 900
6.7% senior notes due September 2038 800 800
1.0% senior notes due August 2016 600 600
3.25% senior notes due November 2021 500 500
4.5% senior notes due November 2041 500 500
2.0% senior notes due August 2018 400 400
5.9% senior notes due September 2018 400 400
7.6% senior debentures due August 2096 300 300
8.75% senior debentures due February 2021 185 185
6.75% notes due February 2027 104 104
7.53% notes due May 2017 45 45
Other 144 37
Unamortized debt issuance costs and discounts (132) (92)
Total 15,346 7,779
Current maturities (659) (14)
Total long-term debt $ 14,687 $ 7,765
$7.5 billion issuance
In November 2015, we issued $7.5 billion aggregate principal amount of senior notes in five tranches: $1.25 billion of
2.7% senior notes due 2020, $1.25 billion of 3.375% senior notes due 2022, $2.0 billion of 3.8% senior notes due 2025, $1.0
billion of 4.85% senior notes due 2035, and $2.0 billion of 5.0% senior notes due 2045. We intend to use the net proceeds of the
offering for general corporate purposes, including financing a portion of the cash consideration component of our pending
acquisition of Baker Hughes. The 2020 notes and the 2022 notes, which aggregate $2.5 billion in principal amount, are subject
to a special mandatory redemption. In the event the Baker Hughes acquisition is not consummated on or prior to November 13,
2016, or, if prior to such date, the merger agreement is terminated for any reason, we will be required to redeem the 2020 notes
and the 2022 notes at a redemption price equal to 101% of the principal amount, plus accrued and unpaid interest. Based on
management's assessment, we believe the 2020 notes and the 2022 notes are appropriately classified as long-term debt on our
consolidated balance sheets as of December 31, 2015.
In conjunction with the November 2015 debt issuance, we adopted a new accounting standards update requiring debt
issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent
with debt discounts. We applied the change retrospectively for prior period balances of unamortized debt issuance costs. As
such, the table above now presents unamortized debt issuance costs and discounts in the aggregate for both periods. See Note
16 for further information.
Senior debt
All of our senior notes and debentures rank equally with our existing and future senior unsecured indebtedness, have
semiannual interest payments, and have no sinking fund requirements. We may redeem all of our senior notes from time to time
or all of the notes of each series at any time at the applicable redemption prices, plus accrued and unpaid interest. Our 7.6% and
8.75% senior debentures may not be redeemed prior to maturity.
Revolving credit facilities
In July 2015, we entered into a new five-year revolving credit agreement, with an initial capacity of $3.0 billion,
increasing to $4.5 billion upon closing of the Baker Hughes acquisition and satisfaction of the conditions provided in the credit
agreement. The credit agreement is for working capital or general corporate purposes and expires on July 21, 2020. The full
amount of the revolving credit facility was available as of December 31, 2015.