8. Debt

Debt The following summarizes the Company’s outstanding debt, including capital lease obligations, after eliminating the effect of intercompany transactions:



millions	WES			WGP ⁽¹⁾		Anadarko ⁽²⁾			Consolidated
September 30, 2017
Total borrowings at face value	$	3,370		$	28	$	13,523		$	16,921
Net unamortized discounts, premiums, and debt issuance costs ⁽³⁾	(26		)	—		(1,563		)	(1,589		)
Total borrowings ⁽⁴⁾	3,344			28		11,960			15,332
Capital lease obligations	—			—		241			241
Less short-term debt	—			—		149			149
Total long-term debt	$	3,344		$	28	$	12,052		$	15,424

December 31, 2016
Total borrowings at face value	$	3,120		$	28	$	13,558		$	16,706
Net unamortized discounts, premiums, and debt issuance costs ⁽³⁾	(29		)	—		(1,599		)	(1,628		)
Total borrowings ⁽⁴⁾	3,091			28		11,959			15,078
Capital lease obligations	—			—		245			245
Less short-term debt	—			—		42			42
Total long-term debt	$	3,091		$	28	$	12,162		$	15,281

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⁽¹⁾	Excludes WES.


⁽²⁾	Excludes WES and WGP.


⁽³⁾	Unamortized discounts, premiums, and debt issuance costs are amortized over the term of the related debt. Debt issuance costs related to RCFs are included in other current assets and other assets on the Company’s Consolidated Balance Sheets.


⁽⁴⁾	The Company’s outstanding borrowings, except for borrowings under the WGP RCF, are senior unsecured.

Fair Value The Company uses a market approach to determine the fair value of its fixed-rate debt using observable market data, which results in a Level 2 fair-value measurement. The carrying amount of floating-rate debt approximates fair value as the interest rates are variable and reflective of market rates. The estimated fair value of the Company’s total borrowings was $17.4 billion at September 30, 2017, and $17.1 billion at December 31, 2016.

8. Debt (Continued)

Anadarko Borrowings Anadarko has a $3.0 billion senior unsecured RCF maturing in January 2021 (APC RCF) and a $2.0 billion 364-day senior unsecured RCF maturing in January 2018 (364-Day Facility). At September 30, 2017, the Company had no outstanding borrowings under the APC RCF or the 364-Day Facility and was in compliance with all covenants.

Anadarko’s Zero Coupons can be put to the Company in October of each year, in whole or in part, for the then-accreted value of the outstanding Zero Coupons. None of the Zero Coupons were put to the Company in October 2017. The Zero Coupons can next be put to the Company in October 2018, in whole or in part, for the then-accreted value of $930 million.

The Company also has notes payable related to its ownership of certain noncontrolling mandatorily redeemable interests that are not included in the Company’s reported debt balance and do not affect consolidated interest expense. See Note 8—Equity Method Investments in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

WES and WGP Borrowings At September 30, 2017, WES was in compliance with all covenants contained in its $1.2 billion senior unsecured RCF maturing in February 2020 (WES RCF), which is expandable to $1.5 billion. During the nine months ended September 30, 2017, WES borrowed $250 million under its RCF, which was used for general partnership purposes. At September 30, 2017, WES had outstanding borrowings under its RCF of $250 million at an interest rate of 2.54%, had outstanding letters of credit of $5 million, and had available borrowing capacity of $945 million. WES’s $350 million 2.60% Senior Notes due August 2018 were classified as long-term debt on the Company’s Consolidated Balance Sheet at September 30, 2017, as WES has the ability and intent to refinance these obligations using long-term debt.

At September 30, 2017, WGP was in compliance with all covenants contained in its $250 million three-year senior secured RCF maturing in March 2019 (WGP RCF), which is expandable to $500 million subject to receiving increased or new commitments from lenders and the satisfaction of certain other conditions. Obligations under the WGP RCF are secured by a first priority lien on all of WGP’s assets (not including the consolidated assets of WES) as well as all equity interests owned by WGP. At September 30, 2017, WGP had outstanding borrowings under its RCF of $28 million at an interest rate of 3.24% and had available borrowing capacity of $222 million.