Analysis of Debt
Total Debt (Carrying Amount)
Halliburton Co., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
Total debt levels experienced a significant expansion in 2015, followed by a consistent multi-year deleveraging trend through 2018. The total carrying amount of debt peaked at 15,346 million US dollars in 2015, representing a substantial increase from the 7,854 million US dollars reported at the end of 2014. From 2016 onward, a steady reduction in total liabilities is observed, with the balance declining to 10,457 million US dollars by December 31, 2018.
- Long-term Debt Trends
- The primary driver of the overall debt profile is long-term debt, excluding current maturities. This component saw a sharp increase from 7,840 million US dollars in 2014 to 14,687 million US dollars in 2015. Subsequently, a downward trajectory was established, with balances falling to 12,214 million US dollars in 2016 and stabilizing around 10,421 million US dollars by 2018. This indicates a focused effort to reduce long-term leverage following the 2015 peak.
- Short-term Borrowings and Current Maturities
- Short-term obligations exhibited significant volatility throughout the period. After a negligible balance of 14 million US dollars in 2014, these liabilities spiked to 659 million US dollars in 2015. While this figure dropped to 170 million US dollars in 2016, it rose again to 512 million US dollars in 2017 before falling sharply to 36 million US dollars in 2018. These fluctuations suggest periodic shifts in liquidity management or the timing of debt maturities.
- Debt Composition and Structure
- The debt structure is heavily weighted toward long-term obligations. Throughout the five-year period, long-term debt consistently represented the vast majority of the total carrying amount. Even during the peaks of short-term borrowing in 2015 and 2017, the reliance on long-term financing remained the dominant characteristic of the company's debt profile, providing a more stable maturity schedule relative to the volatility seen in current liabilities.
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Total Debt (Fair Value)
| Dec 31, 2018 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total debt (fair value) | 10,876) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.04 |
Based on: 10-K (reporting date: 2018-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.99%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.00% | 2,000) | 100) | |
| 3.80% | 2,000) | 76) | |
| 3.50% | 1,100) | 39) | |
| 4.85% | 1,000) | 48) | |
| 7.45% | 1,000) | 75) | |
| 4.75% | 900) | 43) | |
| 6.70% | 800) | 54) | |
| 3.25% | 500) | 16) | |
| 4.50% | 500) | 23) | |
| 7.60% | 300) | 23) | |
| 8.75% | 185) | 16) | |
| 6.75% | 104) | 7) | |
| Total | 10,389) | 519) | |
| 4.99% | |||
Based on: 10-K (reporting date: 2018-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 519 ÷ 10,389 = 4.99%