Long-Term Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Long-Term Debt

NOTE 8 - LONG-TERM DEBT

The following table summarizes Occidental's outstanding debt, including finance lease liabilities:

millions	March 31, 2020		December 31, 2019
Total borrowings at face value	$	37,401	$	37,401
Adjustments to book value:
Unamortized premium, net	892		914
Debt issuance costs	(117)		(125)
Long-term finance leases	308		347
Current finance leases	38		51
Total debt and finance leases	38,522		38,588
Less current maturities of long-term debt	(2,464)		(51)
Long-term debt, net	$	36,058	$	38,537

DEBT ACTIVITY

On March 23, 2020, Occidental amended the sole financial covenant in its revolving credit facility (RCF) and Term Loan by revising the definition of "Total Capitalization" within each agreement to exclude any non-cash write-downs, impairments and related charges occurring after September 30, 2019. The amendments provide Occidental with additional flexibility in the event of any such write-downs, impairments or other changes under the ratio of Total Debt to Total Capitalization covenant.

FAIR VALUE OF DEBT

The estimated fair value of Occidental’s debt as of March 31, 2020, was $21.8 billion. The majority of Occidental's debt is classified as Level 1, with $2.3 billion classified as Level 2. At December 31, 2019, the estimated fair value of Occidental's debt was $38.8 billion. The decline in fair value reflects the market's uncertainty regarding the ongoing impact to Occidental from COVID-19 related reductions in oil and gas demand and the resulting historically low oil price environment.