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Long-term Debt and Debt Facility Agreements
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Long-term Debt and Debt Facility Agreements

9. Long-term Debt and Debt Facility Agreements

Long-term Debt consists of the following:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

3.30% Senior Notes due 2021

$

1,597

 

 

$

1,596

 

3.65% Senior Notes due 2023

 

1,495

 

 

 

1,493

 

3.90% Senior Notes due 2028

 

1,444

 

 

 

-

 

2.40% Senior Notes due 2022

 

998

 

 

 

997

 

4.00% Senior Notes due 2025

 

929

 

 

 

1,742

 

4.3% Senior Notes due 2029

 

845

 

 

 

-

 

3.75% Senior Notes due 2024

 

746

 

 

 

-

 

1.00% Guaranteed Notes due 2026

 

665

 

 

 

678

 

4.20% Senior Notes due 2021

 

600

 

 

 

1,100

 

2.65% Senior Notes due 2022

 

598

 

 

 

598

 

0.00% Notes due 2024

 

551

 

 

 

-

 

0.25% Notes due 2027

 

550

 

 

 

-

 

0.50% Notes due 2031

 

544

 

 

 

-

 

3.63% Senior Notes due 2022

 

294

 

 

 

847

 

7.00% Notes due 2038

 

208

 

 

 

210

 

5.95% Notes due 2041

 

114

 

 

 

115

 

5.13% Notes due 2043

 

99

 

 

 

99

 

4.00% Notes due 2023

 

81

 

 

 

82

 

3.70% Notes due 2024

 

55

 

 

 

55

 

3.00% Senior Notes due 2020

 

-

 

 

 

1,596

 

2.20% Senior Notes due 2020

 

-

 

 

 

499

 

4.50% Notes due 2021

 

-

 

 

 

132

 

3.60% Notes due 2022

 

-

 

 

 

109

 

Commercial paper borrowings

 

2,222

 

 

 

2,433

 

Other

 

135

 

 

 

263

 

 

$

14,770

 

 

$

14,644

 

 

During the fourth quarter of 2019, Schlumberger repurchased the remaining $416 million of its 3.00% Senior Notes due 2020; $126 million of its 4.50% Senior Notes due 2021; $500 million of its 4.20% Senior Notes due 2021; and $106 million of its 3.60% Senior Notes due 2022.     Schlumberger paid a premium of $28 million in connection with these repurchases.  This premium, net of related credits, was classified as Impairments & other in the Consolidated Statement of Income (Loss).  (See Note 3 - Charges and Credits.)

 

During the third quarter of 2019, Schlumberger issued €500 million of 0.00% Notes due 2024, €500 million of 0.25% Notes due 2027 and €500 million of 0.50% Notes due 2031.

 

During the third quarter of 2019, Schlumberger repurchased $783 million of its 3.00% Senior Notes due 2020 and $321 million of its 3.625% Senior Notes due 2022. Schlumberger paid a premium of $29 million in connection with these repurchases. This premium was classified as Impairments & other in the Consolidated Statement of Income (Loss). (See Note 3 - Charges and Credits.)

During the second quarter of 2019, Schlumberger completed a debt exchange offer, pursuant to which it issued $1.500 billion in principal of 3.90% Senior Notes due 2028 (the “New Notes”) in exchange for $401 million of 3.00% Senior Notes due 2020, $234 million of 3.63% Senior Notes due 2022 and $817 million of 4.00% Senior Notes due 2025.  In connection with the exchange of principal, Schlumberger paid a premium of $48 million, substantially all of which was in the form of New Notes.  This premium is being amortized as additional interest expense over the term of the New Notes.

During the first quarter of 2019 Schlumberger issued $750 million of 3.75% Senior Notes due 2024 and $850 million of 4.30% Senior Notes due 2029.

During the fourth quarter of 2018, Schlumberger issued €600 million of 1.00% Guaranteed Notes due 2026.

41

 

At December 31, 2019, Schlumberger had separate committed credit facility agreements aggregating $6.5 billion with commercial banks, of which $4.3 billion was available and unused.  These committed facilities support commercial paper programs in the United States and Europe, and $1.0 billion matures in February 2020,  $2.0 billion matures in February 2023, $2.0 billion matures in February 2024  and $1.5 billion matures in July 2024  .  Interest rates and other terms of borrowing under these lines of credit vary from country to country.

 

Commercial paper borrowings are classified as long-term debt to the extent they are backed up by available and unused committed credit facilities maturing in more than one year and to the extent it is Schlumberger’s intent to maintain these obligations for longer than one year.  Borrowings under the commercial paper programs at December 31, 2019 were $2.2 billion, all of which  was classified in  Long-term debt  in the Consolidated Balance Sheet.  At December 31, 2018, borrowings under the commercial paper programs were $2.4 billion, all of which was classified in Long-term debt in the Consolidated Balance Sheet.

The weighted average interest rate on variable rate debt as of December 31, 2019 was 2.3%.

Long-term Debt as of December 31, 2019 is due as follows:  $2.3 billion in 2021, $1.9 billion in 2022, $1.9 billion in 2023, $3.2 billion in 2024, $0.9 billion in 2025, $0.7 billion in 2026 and $3.9 billion thereafter.

The fair value of Schlumberger’s Long-term Debt at December 31, 2019 and December 31, 2018 was $15.3 billion and $14.6 billion, respectively, and was estimated based on quoted market prices.

Schlumberger Limited fully and unconditionally guarantees the securities issued by certain of its subsidiaries, including securities issued by Schlumberger Investment SA, a wholly-owned finance subsidiary of Schlumberger.