Financing Arrangements

12 Months Ended

Dec. 31, 2015

Financing Arrangements And Long-Term Debt [Abstract]

Financing Arrangements

Note F – Financing Arrangements

At December 31, 2015, the Company had a $2.0 billion committed credit facility with a major banking consortium that expires in May 2017.  Borrowings under this facility bear interest at 1.45% above LIBOR based on the Company’s current credit rating as of February 15, 2016.  In addition, facility fees of 0.25% are charged on the full $2.0 billion commitment. At December 31, 2015, the Company had borrowings of $600,000,000 under this committed facility.  At December 31, 2015, the Company also had uncommitted credit lines that had estimated total borrowing capacity of approximately $300,000,000.  No borrowings were outstanding under these uncommitted credit lines at December 31, 2015.  If necessary, the Company believes it could borrow funds under all or certain of these uncommitted lines with various financial institutions in future periods.  On October 16, 2015, the Company renewed its 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 2029.  Current maturities and long-term debt on the Consolidated Balance Sheet included $18,881,000 and $209,817,000, respectively, associated with this lease at December 31, 2015.