XML 42 R19.htm IDEA: XBRL DOCUMENT
v3.19.2

Debt And Related Expenses | 6 Months Ended
--- | ---
Jun. 30, 2019
Debt Disclosure [Abstract] |
Debt and Related Expenses |
1 3. | Debt and Related Expenses
A summary of debt is as follows:
|  | June 30, 2019 |  |  | December 31, 2018 |
6.30% due January 15, 2019 |  | $ | — |  |  | $ | 162 |
5.85% due December 15, 2025 |  |  | 485 |  |  |  | 485 |
7.50% due September 15, 2027 |  |  | 73 |  |  |  | 73 |
7.875% due September 30, 2031 (1) |  |  | 675 |  |  |  | 675 |
7.95% due April 15, 2032 (1) |  |  | 366 |  |  |  | 366 |
5.60% due July 15, 2041 |  |  | 1,250 |  |  |  | 1,250 |
4.75% due May 15, 2042 |  |  | 750 |  |  |  | 750 |
5.00% due June 15, 2045 |  |  | 750 |  |  |  | 750 |
Net discount on debentures and notes |  |  | (20 | ) |  |  | (21 | )
Debt issuance costs |  |  | (35 | ) |  |  | (36 | )
Total debt |  |  | 4,294 |  |  |  | 4,454 |
Less amount classified as short-term debt |  |  | — |  |  |  | 162 |
Total long-term debt |  | $ | 4,294 |  |  | $ | 4,292 |
| (1) | These senior notes were included in the 2018 tender offer repurchases discussed below.
Credit Lines Devon has a $3.0 billion Senior Credit Facility. As of June 30, 2019, Devon had no outstanding borrowings under the Senior Credit Facility and had issued $3 million in outstanding letters of credit under this facility. The Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65%. Under the terms of the credit agreement, total capitalization is adjusted to add back noncash financial write-downs such as impairments. As of June 30, 2019, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 23.4%. In connection with the closing of the sale of its Canadian business, Devon reallocated and terminated all Canadian commitments under the Senior Credit Facility in accordance with the terms of the credit agreement governing the Senior Credit Facility. The termination of the Canadian subfacility was effective as of June 27, 2019, and such termination did not decrease the $3.0 billion in total revolving commitments under, or otherwise modify the terms of, the Senior Credit Facility. Retirement of Senior Notes In January 2019, Devon repaid the $162 million of 6.30% senior notes at maturity. In the first quarter of 2018, Devon completed tender offers to repurchase $807 million in aggregate principal amount of debt securities, using cash on hand. This included $384 million of the 7.875% senior notes due September 30, 2031 and $423 million of the 7.95% senior notes due April 15, 2032. Devon recognized a $312 million loss on early retirement of debt, consisting of $304 million in cash retirement costs and $8 million of noncash charges. These costs, along with other charges associated with retiring the debt, are included in net financing costs in the consolidated comprehensive statements of earnings. Net Financing Costs The following schedule includes the components of net financing costs.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Interest based on debt outstanding |  | $ | 65 |  |  | $ | 68 |  |  | $ | 130 |  |  | $ | 151 |
Early retirement of debt |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 312 |
Other |  |  | 1 |  |  |  | (4 | ) |  |  | (4 | ) |  |  | (10 | )
Total net financing costs |  | $ | 66 |  |  | $ | 64 |  |  | $ | 126 |  |  | $ | 453 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration