National Oilwell Varco 2002 Annual Report Download - page 37

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4. Property, Plant and Equipment
Property, plant and equipment consists of (in thousands):
Estimated December 31, December 31,
Useful Lives 2002 2001
Land and improvements 2-20 Years 11,927$ 9,557$
Buildings and improvements 5-31 Years 74,610 53,268
Machinery and equipment 5-12 Years 111,652 89,268
Computer and office equipment 3-10 Years 92,794 73,322
Rental equipment 1-7 Years 77,328 63,971
368,311 289,386
Less accumulated depreciation (159,891) (120,435)
208,420$ 168,951$
5. Long-Term Debt
Long-term debt consists of (in thousands):
December 31, December 31,
2002 2001
Credit facilities 94,637$ 10,213$
6.875 % senior notes 150,000 150,000
6.50 % senior notes 150,000 150,000
5.65 % senior notes 200,000 -
594,637 310,213
Less current portion - 10,213
594,637$ 300,000$
In November 2002, we sold $200 million of 5.65 % unsecured senior notes due November 15,
2012. Proceeds were used to acquire Hydralift ASA. Interest is payable on May 15 and
November 15 of each year. In March 2001, we sold $150 million of 6.50 % unsecured senior
notes due March 15, 2011, with interest payable on March 15 and September 15 of each year. In
June 1998, we sold $150 million of 6.875 % unsecured senior notes due July 1, 2005, with
interest payments due annually on January 1 and July 1.
On July 30, 2002, we replaced the existing credit facility with a new three-year unsecured $175
million revolving credit facility. This facility is available for acquisitions and general corporate
purposes and provides up to $50 million for letters of credit, of which $22.0 million were
outstanding at December 31, 2002. Interest is based upon prime or Libor plus 0.5% subject to a
ratings based grid. In securing this new credit facility, we incurred approximately $0.9 million in
fees which will be amortized to expense over the term of the facility.
The senior notes contain reporting covenants and the credit facility contains financial covenants
and ratios regarding maximum debt to capital and minimum interest coverage. We were in
compliance with all covenants governing these facilities at December 31, 2002.
35
We also have additional credit facilities totaling $223 million that are used primarily for
acquisitions, general corporate purposes and letters of credit. Recently acquired Hydralift ASA
represents $152 million of these facilities. These multi-currency Hydralift committed facilities are