DEBT AND FINANCING COSTS

The following table presents the carrying amounts and estimated fair values of the Company’s outstanding debt as of June 30, 2018 and December 31, 2017:



	June 30, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In millions)
Commercial paper and committed bank facilities	$	—	$	—	$	—	$	—
Notes and debentures	8,337		8,507		8,484		9,244
Total Debt	$	8,337	$	8,507	$	8,484	$	9,244

The Company’s debt is recorded at the carrying amount, net of related unamortized discount and deferred loan costs, on its consolidated balance sheet. When recorded, the carrying amount of the Company’s commercial paper, committed bank facilities, and uncommitted bank lines approximates fair value because the interest rates are variable and reflective of market rates. Apache uses a market approach to determine the fair value of its notes and debentures using estimates provided by an independent investment financial data services firm (a Level 2 fair value measurement).

The following table presents the carrying value of the Company’s debt as of June 30, 2018 and December 31, 2017:



	June 30, 2018			December 31, 2017
	(In millions)
Debt before unamortized discount and deferred loan costs	$	8,430		$	8,580
Unamortized discount	(46		)	(47		)
Deferred loan costs	(47		)	(49		)
Total debt	8,337			8,484
Current maturities	(400		)	(550		)
Long-term debt	$	7,937		$	7,934

As of June 30, 2018, current debt included $400 million of 6.9% senior notes due September 15, 2018. As of December 31, 2017, current debt also included $150 million of 7.0% senior notes due February 1, 2018 that matured and were repaid on February 1, 2018.

In March 2018, the Company entered into a revolving credit facility that matures in March 2023 (subject to Apache’s two, one-year extension options) with commitments totaling $4.0 billion. The Company can increase commitments up to $5.0 billion by adding new lenders or obtaining the consent of any increasing existing lenders. The facility includes a letter of credit subfacility of up to $3.0 billion, of which $2.08 billion was committed as of June 30, 2018. The facility is for general corporate purposes and committed borrowing capacity fully supports Apache’s commercial paper program. As of June 30, 2018, letters of credit aggregating approximately £129.1 million and no borrowings were outstanding under this facility. In connection with entry into this facility, Apache terminated $3.5 billion and £900 million in commitments under two former credit facilities and wrote off $4 million of associated deferred loan costs, which is included in “Financing costs, net” in the Company’s consolidated statement of operations.

The Company’s $3.5 billion commercial paper program, which is subject to market availability, facilitates Apache borrowing funds for up to 270 days at competitive interest rates. As of June 30, 2018, the Company had no commercial paper outstanding.

Financing Costs, Net

The following table presents the components of Apache’s financing costs, net:



	For the Quarter Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
	(In millions)
Interest expense	$	110		$	115		$	222		$	231
Amortization of deferred loan costs	1			2			6			4
Capitalized interest	(13		)	(13		)	(25		)	(27		)
Loss on extinguishment of debt	—			—			—			1
Interest income	(4		)	(5		)	(10		)	(10		)
Financing costs, net	$	94		$	99		$	193		$	199