Apache Corp., balance sheet: debt

US$ in millions

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Current debt	1)	—)	53)	990)	431)
Long-term debt, excluding current maturities	8,777)	11,245)	9,672)	11,355)	6,785)
Total debt (carrying amount)	8,778)	11,245)	9,725)	12,345)	7,216)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Apache Corp. total debt increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.

	Dec 31, 2015
Selected Financial Data (US$ in millions)
Total debt (fair value)	8,330)
Financial Ratio
Debt, fair value to carrying amount ratio	0.95

Weighted-average interest rate on debt: 5.06%

Interest rate	Debt amount¹	Interest rate × Debt amount
6.90%	400)	28)
7.00%	150)	11)
7.63%	150)	11)
3.63%	500)	18)
3.25%	919)	30)
2.63%	531)	14)
7.70%	100)	8)
7.95%	180)	14)
6.00%	1,000)	60)
5.10%	1,500)	77)
5.25%	500)	26)
4.75%	1,500)	71)
4.25%	800)	34)
7.38%	150)	11)
7.63%	150)	11)
7.75%	300)	23)
Total	8,830)	447)
5.06%

¹ US$ in millions

² Weighted-average interest rate = 100 × 447 ÷ 8,830 = 5.06%

Apache Corp., interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Interest expense, net of capitalized interest	259)	136)	197)	175)	170)
Amortization of deferred loan costs	11)	6)	8)	7)	5)
Capitalized interest	227)	363)	374)	334)	263)
Interest costs incurred	497)	505)	579)	516)	438)

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Debt item	Description	The company
Interest expense, net of capitalized interest	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Apache Corp. interest expense, net of capitalized interest decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Apache Corp. capitalized interest decreased from 2013 to 2014 and from 2014 to 2015.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Apache Corp. interest costs incurred decreased from 2013 to 2014 and from 2014 to 2015.

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Apache shareholders	(23,119)	(5,403)	2,232)	2,001)	4,584)
Add: Net income attributable to noncontrolling interest	(409)	343)	56)	—)	—)
Less: Net loss from discontinued operations, net of tax	(771)	(517)	—)	—)	—)
Add: Income tax expense	(5,469)	1,637)	1,928)	2,876)	3,509)
Add: Interest expense, net of capitalized interest	259)	136)	197)	175)	170)
Earnings before interest and tax (EBIT)	(27,967)	(2,770)	4,413)	5,052)	8,263)

Interest costs incurred	497)	505)	579)	516)	438)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	-107.98	-20.37	22.40	28.87	48.61
Adjusted interest coverage ratio (with capitalized interest)²	-56.27	-5.49	7.62	9.79	18.87

2015 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of capitalized interest
= -27,967 ÷ 259 = -107.98

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= -27,967 ÷ 497 = -56.27

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Apache Corp. adjusted interest coverage ratio deteriorated from 2013 to 2014 and from 2014 to 2015.

Apache Corp. (NYSE:APA)

Analysis of Debt