Financing Arrangements and Debt

3 Months Ended

Mar. 31, 2016

Financing Arrangements and Debt [Abstract]

Financing Arrangements and Debt

Note D – Financing Arrangements and Debt

The Company has a $2.0 billion committed credit facility with a major banking consortium that expires in June 2017.  Borrowings under the facility bear interest at 1.45% above LIBOR based on the Company’s current credit rating as of March 31, 2016.  In addition, facility fees of 0.30% are charged on the full $2.0 billion commitment.  At March 31, 2016, the company had borrowings of $925 million under this committed facility.  At March 31, 2016, the Company also had uncommitted credit lines that had an estimated total borrowing capacity of approximately $82 millionof which $46 million was outstanding under these uncommitted credit lines.  The Company also had outstanding letters of credit of approximately $88 million issued under its revolving credit facility at quarter end 2016, which reduced the available borrowing capacity under the agreement.  If necessary, the Company believes it could borrow funds under all or certain of these uncommitted lines with various financial institutions in future periods.  The Company also has a shelf registration statement on file with the U.S. Securities and Exchange Commission that permits the offer and sale of debt and/or equity securities through October 2018.

The Company and its partners are parties to a 25-year lease of production equipment at the Kakap field offshore Malaysia.  The lease has been accounted for as a capital lease, and payments under the agreement are to be made over a 15-year period through June 2028.  Current maturities and long-term debt on the Consolidated Balance Sheet included  $19.1 million and $206.7 million, respectively, associated with this lease at March 31, 2016.