Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

8.Debt

Debt consists of (in millions):

	June 30,		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		494		494
Other debt		140		129
Total Debt		1,724		1,713
Less current portion		10		5
Long-term debt	$	1,714	$	1,708

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 June 30, 2022, the Company was in compliance with a debt-to-capitalization ratio of 28.3% and had no outstanding borrowings or letters of credit issued under the facility, resulting in $2.0 billion of available funds.

Additionally, the consolidated joint venture of the Company has 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 June 30, 2022, the joint venture was in compliance. The line of credit repayment schedule begins in December 2022 with final payment no later than June 2032. As of June 30, 2022, the Company has a carrying value of $111 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 June 30, 2022 included $29 million of funding provided by minority interest partners of NOV consolidated joint ventures.

The Company had $502 million of outstanding letters of credit at June 30, 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 June 30, 2022 and December 31, 2021, the fair value of the Company’s unsecured Senior Notes approximated $1,262 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 both June 30, 2022 and December 31, 2021, the carrying value of the Company’s unsecured Senior Notes approximated $1,584 million.