XML 33 R17.htm IDEA: XBRL DOCUMENT v3.22.4
Debt
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt

9. Debt

Debt consists of (in millions):

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

$1.1 billion in Senior Notes, interest at 3.95% payable
   semiannually, principal due on December 1, 2042

 

 

1,090

 

 

 

1,090

 

$0.5 billion in Senior Notes, interest at 3.60% payable
   semiannually, principal due on December 1, 2029

 

 

495

 

 

 

494

 

Other debt

 

 

145

 

 

 

129

 

Total Debt

 

 

1,730

 

 

 

1,713

 

Less current portion

 

 

13

 

 

 

5

 

Long-term debt

 

$

1,717

 

 

$

1,708

 

 

Principal payments of debt for years subsequent to 2022 are as follows (in millions):

 

2023

 

 

13

 

2024

 

 

10

 

2025

 

 

21

 

2026

 

 

29

 

2027

 

 

12

 

Thereafter

 

 

1,661

 

 

 

$

1,746

 

 

The Company has a revolving credit facility with a borrowing capacity of $2.0 billion through October 30, 2024, and a borrowing capacity of $1.7 billion from October 31, 2024, to October 30, 2025. The Company has the right to increase the commitments under this agreement to an aggregate amount of up to $3.0 billion upon the consent of only those lenders holding any such increase. Interest under the multicurrency facility is based upon LIBOR, NIBOR or CDOR plus 1.25% subject to a ratings-based grid or the U.S. prime rate. The credit facility contains a financial covenant regarding maximum debt-to-capitalization ratio of 60%. As of December 31, 2022, the Company was in compliance with a debt-to-capitalization ratio of 27.7% and had no outstanding borrowings or letters of credit issued under the facility, resulting in $2.0 billion of available funds.

Additionally, a consolidated joint venture of the Company borrowed $120 million against a $150 million bank line of credit for the construction of a facility in Saudi Arabia. Interest under the bank line of credit is based upon LIBOR plus 1.40%. The bank line of credit contains a financial covenant regarding maximum debt-to-equity ratio of 75%. As of December 31, 2022, the joint venture was in compliance. Upon completion of the facility construction in the fourth quarter of 2022, the Company will not have future borrowings on the line of credit, with repayments beginning December 2022 and final payment no later than June 2032. As of December 31, 2022, the Company has a carrying value of $114 million in borrowings related to this line of credit. The carrying value of debt under the Company's consolidated joint venture approximates fair value because the interest rates are variable and reflective of current market rates. The Company has $10 million in payments related to this line of credit due in the next twelve months. The Company can repay the entire outstanding facility balance without penalty at its sole discretion. Other debt at December 31, 2022 included $31 million of funding provided by minority interest partners of NOV consolidated joint ventures, of which $3 million is due in the next twelve months.

The Company had $504 million of outstanding letters of credit at December 31, 2022, primarily in the U.S. and Norway, that are under various bilateral letter of credit facilities. Letters of credit are issued as bid bonds, advanced payment bonds and performance bonds.

At December 31, 2022 and 2021, the fair value of the Company's unsecured Senior Notes approximated $1,215 million and $1,610 million, respectively. The fair value of the Company's debt is estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those of similar instruments. At December 31, 2022 and 2021, the carrying value of the Company's unsecured Senior Notes approximated $1,585 million and $1,584 million, respectively.