Long-Term Debt

6 Months Ended

Jun. 30, 2021


NOTE 7 - LONG-TERM DEBT

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


millions	June 30, 2021		December 31, 2020
Total borrowings at face value	$	35,061	$	35,235
Adjustments to book value:
Unamortized premium, net	707		748
Debt issuance costs	(147)		(156)
Net book value of debt	$	35,621	$	35,827
Long-term finance leases	332		316
Current finance leases	50		42
Total debt and finance leases	$	36,003	$	36,185
Less current maturities of financing leases	(50)		(42)
Less current maturities of long-term debt	(601)		(398)
Long-term debt, net	$	35,352	$	35,745

DEBT ACTIVITY

In the first quarter of 2021, Occidental repaid $174 million of debt upon maturity. No debt matured or was otherwise paid during the second quarter of 2021.

JULY 2021 DEBT ACTIVITY

In July 2021, Occidental used cash on hand to purchase $3.1 billion in outstanding senior notes, inclusive of accrued interest and premiums, with maturities ranging from 2022 through 2026. A premium of approximately $90 million associated with the purchase and retirement will be expensed in the third quarter. Subsequent to the purchase and retirement of these outstanding senior notes, Occidental's face value of debt was $32.0 billion.

The following table summarizes the face value of senior notes tendered and retired in July 2021:


millions						Face value tendered


July tender and purchase:
2.700% senior notes due 2022	$	(278)
2.700% senior notes due 2023	(484)
3.450% senior notes due 2024	(81)
2.900% senior notes due 2024	(1,620)
3.500% senior notes due 2025	(229)
3.400% senior notes due 2026	(224)
3.200% senior notes due 2026	(110)
Total	$	(3,026)

FAIR VALUE OF DEBT

The estimated fair value of Occidental’s debt as of June 30, 2021 and December 31, 2020, substantially all of which was classified as Level 1, was approximately $36.8 billion and $33.8 billion, respectively.