(Mark One) | ||
R | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended June 30, 2014 | ||
£ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 76-0451843 | |
(State or Other Jurisdiction of | (I.R.S. Employer | |
Incorporation or Organization) | ||
1333 West Loop South, Suite 1700, Houston, Texas | 77027 | |
(Address of Principal Executive Offices) | (Zip Code) |
3 | |
3 | |
3 | |
4 | |
5 | |
6 | |
7 | |
19 | |
39 | |
40 | |
40 | |
40 | |
40 | |
41 | |
41 | |
42 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
REVENUES | $ | 2,287.4 | $ | 2,053.7 | $ | 4,405.1 | $ | 3,858.0 | $ | 2,641 | $ | 2,209 | $ | 5,072 | $ | 4,270 | ||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below) | 1,625.0 | 1,448.9 | 3,119.1 | 2,729.3 | 1,893 | 1,567 | 3,658 | 3,020 | ||||||||||||||||||||||||
Selling and administrative expenses | 325.5 | 286.2 | 639.6 | 557.6 | 346 | 315 | 675 | 618 | ||||||||||||||||||||||||
Depreciation and amortization | 70.1 | 63.6 | 140.0 | 123.1 | 90 | 67 | 177 | 135 | ||||||||||||||||||||||||
Interest, net | 25.3 | 22.0 | 51.2 | 44.7 | 30 | 25 | 62 | 51 | ||||||||||||||||||||||||
Other costs (see Note 3) | 35.6 | 9.9 | 66.4 | 8.4 | ||||||||||||||||||||||||||||
Other costs (credits) (see Note 3) | (4 | ) | 35 | 44 | 66 | |||||||||||||||||||||||||||
Total costs and expenses | 2,081.5 | 1,830.6 | 4,016.3 | 3,463.1 | 2,355 | 2,009 | 4,616 | 3,890 | ||||||||||||||||||||||||
Income before income taxes | 205.9 | 223.1 | 388.8 | 394.9 | ||||||||||||||||||||||||||||
Income from continuing operations before income taxes | 286 | 200 | 456 | 380 | ||||||||||||||||||||||||||||
Income tax provision | (65.5 | ) | (48.5 | ) | (100.0 | ) | (86.3 | ) | (66 | ) | (64 | ) | (114 | ) | (97 | ) | ||||||||||||||||
Income from continuing operations | 220 | 136 | 342 | 283 | ||||||||||||||||||||||||||||
Income from discontinued operations, net of income taxes | 13 | 4 | 7 | 6 | ||||||||||||||||||||||||||||
Net income | $ | 140.4 | $ | 174.6 | $ | 288.8 | $ | 308.6 | 233 | 140 | 349 | 289 | ||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 12 | – | 17 | – | ||||||||||||||||||||||||||||
Net income attributable to Cameron stockholders | $ | 221 | $ | 140 | $ | 332 | $ | 289 | ||||||||||||||||||||||||
Amounts attributable to Cameron stockholders: | ||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 208 | $ | 136 | $ | 325 | $ | 283 | ||||||||||||||||||||||||
Income from discontinued operations | 13 | 4 | 7 | 6 | ||||||||||||||||||||||||||||
Net income attributable to Cameron stockholders | $ | 221 | $ | 140 | $ | 332 | $ | 289 | ||||||||||||||||||||||||
Earnings per common share attributable to Cameron stockholders: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.57 | $ | 0.71 | $ | 1.17 | $ | 1.25 | ||||||||||||||||||||||||
Continuing operations | $ | 1.02 | $ | 0.55 | $ | 1.55 | $ | 1.15 | ||||||||||||||||||||||||
Discontinued operations | 0.06 | 0.02 | 0.04 | 0.02 | ||||||||||||||||||||||||||||
$ | 1.08 | $ | 0.57 | $ | 1.59 | $ | 1.17 | |||||||||||||||||||||||||
Diluted | $ | 0.57 | $ | 0.70 | $ | 1.16 | $ | 1.25 | ||||||||||||||||||||||||
Continuing operations | $ | 1.02 | $ | 0.55 | $ | 1.54 | $ | 1.14 | ||||||||||||||||||||||||
Discontinued operations | 0.06 | 0.02 | 0.04 | 0.02 | ||||||||||||||||||||||||||||
$ | 1.08 | $ | 0.57 | $ | 1.58 | $ | 1.16 | |||||||||||||||||||||||||
Shares used in computing earnings per common share: | ||||||||||||||||||||||||||||||||
Basic | 246.6 | 246.3 | 247.1 | 246.2 | 204 | 247 | 209 | 247 | ||||||||||||||||||||||||
Diluted | 248.1 | 247.7 | 248.6 | 247.8 | 205 | 248 | 211 | 249 | ||||||||||||||||||||||||
Comprehensive income | $ | 91.5 | $ | 128.7 | $ | 163.0 | $ | 309.6 | $ | 218 | $ | 91 | $ | 360 | $ | 163 | ||||||||||||||||
Comprehensive income attributable to noncontrolling interests | 4 | – | 24 | – | ||||||||||||||||||||||||||||
Comprehensive income attributable to Cameron stockholders | $ | 214 | $ | 91 | $ | 336 | $ | 163 |
June 30, 2013 | December 31, 2012 | June 30, 2014 | December 31, 2013 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 1,718.1 | $ | 1,185.8 | $ | 1,525 | $ | 1,813 | ||||||||
Short-term investments | 310.2 | 517.0 | 56 | 41 | ||||||||||||
Receivables, net | 2,288.9 | 1,966.7 | 2,548 | 2,719 | ||||||||||||
Inventories, net | 3,060.3 | 2,741.2 | 3,268 | 3,133 | ||||||||||||
Other | 379.7 | 499.9 | 385 | 463 | ||||||||||||
Total current assets | 7,757.2 | 6,910.6 | 7,782 | 8,169 | ||||||||||||
Plant and equipment, net | 1,850.9 | 1,765.1 | 2,015 | 2,037 | ||||||||||||
Goodwill | 2,670.2 | 1,923.9 | 2,704 | 2,925 | ||||||||||||
Intangibles, net | 856 | 904 | ||||||||||||||
Other assets | 1,387.6 | 558.6 | 235 | 214 | ||||||||||||
TOTAL ASSETS | $ | 13,665.9 | $ | 11,158.2 | $ | 13,592 | $ | 14,249 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
Short-term debt | $ | 32.3 | $ | 29.2 | $ | 562 | $ | 297 | ||||||||
Accounts payable and accrued liabilities | 3,249.1 | 3,045.7 | 3,506 | 3,883 | ||||||||||||
Accrued income taxes | 97.2 | 94.1 | 100 | 80 | ||||||||||||
Total current liabilities | 3,378.6 | 3,169.0 | 4,168 | 4,260 | ||||||||||||
Long-term debt | 2,045.7 | 2,047.0 | 2,814 | 2,563 | ||||||||||||
Deferred income taxes | 370.4 | 131.7 | 251 | 277 | ||||||||||||
Other long-term liabilities | 206.9 | 244.4 | 229 | 233 | ||||||||||||
Total liabilities | 6,001.6 | 5,592.1 | 7,462 | 7,333 | ||||||||||||
Stockholders' Equity: | ||||||||||||||||
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at June 30, 2013 and December 31, 2012 | 2.6 | 2.6 | ||||||||||||||
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at June 30, 2014 and December 31, 2013 | 3 | 3 | ||||||||||||||
Capital in excess of par value | 3,155.5 | 2,094.6 | 3,220 | 3,207 | ||||||||||||
Retained earnings | 4,409.5 | 4,120.7 | 5,152 | 4,820 | ||||||||||||
Accumulated other elements of comprehensive income (loss) | (155.8 | ) | (30.0 | ) | (76 | ) | (80 | ) | ||||||||
Less: Treasury stock, 17,001,730 shares at June 30, 2013 (16,415,336 shares at December 31, 2012) | (701.5 | ) | (621.8 | ) | ||||||||||||
Less: Treasury stock, 60,027,350 shares at June 30, 2014 (41,683,164 shares at December 31, 2013) | (3,261 | ) | (2,098 | ) | ||||||||||||
Total Cameron stockholders' equity | 6,710.3 | 5,566.1 | 5,038 | 5,852 | ||||||||||||
Noncontrolling interests | 954.0 | – | 1,092 | 1,064 | ||||||||||||
Total equity | 7,664.3 | 5,566.1 | 6,130 | 6,916 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 13,665.9 | $ | 11,158.2 | $ | 13,592 | $ | 14,249 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(unaudited) | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 233 | $ | 140 | $ | 349 | $ | 289 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Gain on sale of Reciprocating Compression business | (95 | ) | – | (95 | ) | – | ||||||||||
Depreciation | 71 | 59 | 139 | 115 | ||||||||||||
Amortization | 19 | 11 | 38 | 25 | ||||||||||||
Non-cash stock compensation expense | 15 | 14 | 30 | 27 | ||||||||||||
Gain from remeasurement of prior interest in equity method investment | (8 | ) | – | (8 | ) | – | ||||||||||
Deferred income taxes and tax benefit of employee stock compensation plan transactions | 34 | (2 | ) | 17 | 12 | |||||||||||
Changes in assets and liabilities, net of translation, and non-cash items: | ||||||||||||||||
Receivables | 171 | (236 | ) | 111 | (71 | ) | ||||||||||
Inventories | (53 | ) | (124 | ) | (228 | ) | (340 | ) | ||||||||
Accounts payable and accrued liabilities | (257 | ) | 212 | (471 | ) | 7 | ||||||||||
Other assets and liabilities, net | 83 | (44 | ) | 157 | (57 | ) | ||||||||||
Net cash provided by operating activities | 213 | 30 | 39 | 7 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Proceeds from sales and maturities of short-term investments | 18 | 353 | 23 | 628 | ||||||||||||
Purchases of short-term investments | (33 | ) | (135 | ) | (38 | ) | (421 | ) | ||||||||
Capital expenditures | (73 | ) | (99 | ) | (178 | ) | (182 | ) | ||||||||
Proceeds received from sale of Reciprocating Compression business, net | 547 | – | 547 | – | ||||||||||||
Other dispositions (acquisitions), net | (18 | ) | 8 | (18 | ) | 9 | ||||||||||
Proceeds received and cash acquired from formation of OneSubsea | – | 603 | – | 603 | ||||||||||||
Proceeds from sales of plant and equipment | 4 | 3 | 10 | 4 | ||||||||||||
Net cash provided by investing activities | 445 | 733 | 346 | 641 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Issuance of senior notes | 500 | – | 500 | – | ||||||||||||
Debt issuance costs | (4 | ) | – | (4 | ) | – | ||||||||||
Short-term loan borrowings (repayments), net | (321 | ) | (28 | ) | 9 | 9 | ||||||||||
Purchase of treasury stock | (303 | ) | (93 | ) | (1,205 | ) | (125 | ) | ||||||||
Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions | 16 | 7 | 25 | 29 | ||||||||||||
Excess tax benefits from employee stock compensation plan transactions | 4 | 2 | 6 | 8 | ||||||||||||
Principal payments on capital leases | (5 | ) | (7 | ) | (8 | ) | (10 | ) | ||||||||
Net cash used for financing activities | (113 | ) | (119 | ) | (677 | ) | (89 | ) | ||||||||
Effect of translation on cash | 8 | (8 | ) | 4 | (27 | ) | ||||||||||
Increase (decrease) in cash and cash equivalents | 553 | 636 | (288 | ) | 532 | |||||||||||
Cash and cash equivalents, beginning of period | 972 | 1,082 | 1,813 | 1,186 | ||||||||||||
Cash and cash equivalents, end of period | $ | 1,525 | $ | 1,718 | $ | 1,525 | $ | 1,718 |
Cameron Stockholders | ||||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Elements of Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interests | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 3 | $ | 3,207 | $ | 4,820 | $ | (80 | ) | $ | (2,098 | ) | $ | 1,064 | ||||||||||
Net income | – | – | 332 | – | – | 17 | ||||||||||||||||||
Other comprehensive income (loss), net of tax | – | – | – | 4 | – | 7 | ||||||||||||||||||
Non-cash stock compensation expense | – | 30 | – | – | – | – | ||||||||||||||||||
Purchase of treasury stock | – | – | – | – | (1,210 | ) | – | |||||||||||||||||
Treasury stock issued under stock compensation plans | – | (22 | ) | – | – | 47 | – | |||||||||||||||||
Tax benefit of stock compensation plan transactions | – | 5 | – | – | – | – | ||||||||||||||||||
Purchase of noncontrolling ownership interests | – | – | – | – | – | 4 | ||||||||||||||||||
Balance at June 30, 2014 | $ | 3 | $ | 3,220 | $ | 5,152 | $ | (76 | ) | $ | (3,261 | ) | $ | 1,092 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(unaudited) | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 140.4 | $ | 174.6 | $ | 288.8 | $ | 308.6 | ||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||||
Depreciation | 59.3 | 51.6 | 115.3 | 99.4 | ||||||||||||
Amortization | 10.8 | 12.0 | 24.7 | 23.7 | ||||||||||||
Non-cash stock compensation expense | 14.0 | 10.7 | 27.4 | 21.6 | ||||||||||||
Deferred income taxes and tax benefit of employee stock compensation plan transactions | (2.4 | ) | 12.2 | 11.6 | 31.7 | |||||||||||
Changes in assets and liabilities, net of translation, acquisitions and non-cash items: | ||||||||||||||||
Receivables | (236.1 | ) | (80.7 | ) | (70.9 | ) | 16.8 | |||||||||
Inventories | (124.6 | ) | (109.6 | ) | (340.1 | ) | (312.1 | ) | ||||||||
Accounts payable and accrued liabilities | 211.9 | 124.4 | 7.4 | (168.3 | ) | |||||||||||
Other assets and liabilities, net | (43.7 | ) | (31.7 | ) | (57.3 | ) | (61.7 | ) | ||||||||
Net cash provided by (used for) operating activities | 29.6 | 163.5 | 6.9 | (40.3 | ) | |||||||||||
Cash flows from investing activities: | ||||||||||||||||
Proceeds from sales and maturities of short-term investments | 353.1 | 190.6 | 628.3 | 512.3 | ||||||||||||
Purchases of short-term investments | (134.5 | ) | (265.4 | ) | (421.4 | ) | (508.3 | ) | ||||||||
Capital expenditures | (98.8 | ) | (95.1 | ) | (182.5 | ) | (181.8 | ) | ||||||||
Dispositions (acquisitions), net of cash acquired | 7.8 | (248.1 | ) | 9.0 | (309.6 | ) | ||||||||||
Proceeds received and cash acquired from formation of OneSubsea (see Note 2) | 603.0 | – | 603.0 | – | ||||||||||||
Proceeds from sales of plant and equipment | 2.6 | 8.5 | 4.4 | 18.3 | ||||||||||||
Net cash provided by (used for) investing activities | 733.2 | (409.5 | ) | 640.8 | (469.1 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||
Short-term loan borrowings (repayments), net | (28.3 | ) | (62.9 | ) | 8.6 | (44.5 | ) | |||||||||
Issuance of senior debt | – | 499.3 | – | 499.3 | ||||||||||||
Debt issuance costs | – | (3.4 | ) | – | (3.4 | ) | ||||||||||
Purchase of treasury stock | (92.6 | ) | (4.4 | ) | (124.7 | ) | (7.5 | ) | ||||||||
Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions | 6.9 | (0.3 | ) | 29.1 | 2.1 | |||||||||||
Excess tax benefits from employee stock compensation plan transactions | 2.5 | 0.5 | 8.1 | 5.2 | ||||||||||||
Principal payments on capital leases | (7.4 | ) | (2.9 | ) | (10.1 | ) | (5.3 | ) | ||||||||
Net cash provided by (used for) financing activities | (118.9 | ) | 425.9 | (89.0 | ) | 445.9 | ||||||||||
Effect of translation on cash | (8.2 | ) | (13.4 | ) | (26.4 | ) | (6.4 | ) | ||||||||
Increase (decrease) in cash and cash equivalents | 635.7 | 166.5 | 532.3 | (69.9 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 1,082.4 | 662.5 | 1,185.8 | 898.9 | ||||||||||||
Cash and cash equivalents, end of period | $ | 1,718.1 | $ | 829.0 | $ | 1,718.1 | $ | 829.0 |
Cameron Stockholders | ||||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Elements of Comprehensive Income (loss) | Treasury Stock | Noncontrolling Interests | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 2.6 | $ | 2,094.6 | $ | 4,120.7 | $ | (30.0 | ) | $ | (621.8 | ) | $ | – | ||||||||||
Formation of OneSubsea, net of tax effects of $132.6 | – | 1,051.8 | – | – | – | 915.6 | ||||||||||||||||||
Net income | – | – | 288.8 | – | – | – | ||||||||||||||||||
Other comprehensive income (loss), net of tax | – | – | – | (125.8 | ) | – | – | |||||||||||||||||
Non-cash stock compensation expense | – | 27.4 | – | – | – | – | ||||||||||||||||||
Purchase of stock under nonqualified deferred compensation plans | – | – | – | – | (2.1 | ) | – | |||||||||||||||||
Purchase of treasury stock | – | – | – | – | (130.6 | ) | – | |||||||||||||||||
Treasury stock issued under stock compensation plans | – | (23.9 | ) | – | – | 53.0 | – | |||||||||||||||||
Tax benefit of stock compensation plan transactions | – | 5.6 | – | – | – | – | ||||||||||||||||||
Other noncontrolling interests | – | – | – | – | – | 38.4 | ||||||||||||||||||
Balance at June 30, 2013 | $ | 2.6 | $ | 3,155.5 | $ | 4,409.5 | $ | (155.8 | ) | $ | (701.5 | ) | $ | 954.0 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Results of Operations: | ||||||||||||||||
Revenues | $ | 64 | $ | 78 | $ | 111 | $ | 135 | ||||||||
Cost of sales (excluding depreciation and amortization) | (49 | ) | (58 | ) | (86 | ) | (99 | ) | ||||||||
All other costs | (11 | ) | (14 | ) | (29 | ) | (27 | ) | ||||||||
Gain on sale of Reciprocating Compression business, before tax | 95 | – | 95 | – | ||||||||||||
Income before income taxes | 99 | 6 | 91 | 9 | ||||||||||||
Income tax provision | (86 | ) | (2 | ) | (84 | ) | (3 | ) | ||||||||
Income from discontinued operations, net of income taxes | $ | 13 | $ | 4 | $ | 7 | $ | 6 |
Sales price | $ | 550 | ||
Net assets sold | (442 | ) | ||
Transaction and other costs associated with the sale | (13 | ) | ||
Pre-tax gain | 95 | |||
Tax provision | (85 | ) | ||
Gain on sale | $ | 10 |
Dr. (Cr.) | ||||
Cash | $ | 603.0 | ||
Receivables | 254.8 | |||
Inventory | 32.3 | |||
Other current assets | 2.0 | |||
Plant and equipment | 31.8 | |||
Goodwill | 754.0 | |||
Intangibles | 870.0 | |||
Other non-current assets | 10.6 | |||
Accounts payable and accrued liabilities | (205.7 | ) | ||
Accrued income taxes | (78.6 | ) | ||
Deferred tax | (297.1 | ) | ||
Other long-term liabilities | (9.7 | ) | ||
Capital in excess of par value | (1,051.8 | ) | ||
Noncontrolling interests | (915.6 | ) | ||
$ | – |
Accounts receivable | $ | 79 | ||
Inventory | 122 | |||
Goodwill | 214 | |||
All other | 27 | |||
Net assets sold | $ | 442 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Goodwill impairment | $ | – | $ | – | $ | 40 | $ | – | ||||||||
OneSubsea formation costs | – | 28 | – | 45 | ||||||||||||
Gain from remeasurement of prior interest in equity method investment | (8 | ) | – | (8 | ) | – | ||||||||||
Impairment of intangible assets | 4 | – | 4 | – | ||||||||||||
Acquisition and other integration costs | – | 2 | 2 | 3 | ||||||||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges | – | (3 | ) | – | – | |||||||||||
Currency devaluation, severance, restructuring and other costs, net | – | 8 | 6 | 18 | ||||||||||||
Total other costs (credits) | $ | (4 | ) | $ | 35 | $ | 44 | $ | 66 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
OneSubsea formation costs | $ | 28.4 | $ | – | $ | 44.7 | $ | – | ||||||||
International pension settlement costs | – | 6.1 | – | 6.1 | ||||||||||||
Acquisition integration costs | 1.7 | 3.3 | 3.3 | 5.2 | ||||||||||||
Mark-to-market impact on currency derivatives(1) | (2.7 | ) | (1.5 | ) | – | (5.6 | ) | |||||||||
Currency devaluation, litigation, restructuring and other costs | 8.2 | 2.0 | 18.4 | 2.7 | ||||||||||||
$ | 35.6 | $ | 9.9 | $ | 66.4 | $ | 8.4 |
June 30, 2013 | December 31, 2012 | June 30, 2014 | December 31, 2013 | |||||||||||||
Trade receivables | $ | 2,110.9 | $ | 1,823.2 | $ | 2,107 | $ | 2,368 | ||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 305 | 253 | ||||||||||||||
Other receivables | 186.4 | 151.4 | 160 | 119 | ||||||||||||
Allowance for doubtful accounts | (8.4 | ) | (7.9 | ) | (24 | ) | (21 | ) | ||||||||
Total receivables | $ | 2,288.9 | $ | 1,966.7 | $ | 2,548 | $ | 2,719 |
June 30, 2013 | December 31, 2012 | June 30, 2014 | December 31, 2013 | |||||||||||||
Raw materials | $ | 232.3 | $ | 237.9 | $ | 375 | $ | 238 | ||||||||
Work-in-process | 1,010.5 | 902.1 | 1,015 | 894 | ||||||||||||
Finished goods, including parts and subassemblies | 2,014.3 | 1,797.9 | 2,067 | 2,208 | ||||||||||||
Other | 18.2 | 14.3 | 25 | 22 | ||||||||||||
3,275.3 | 2,952.2 | 3,482 | 3,362 | |||||||||||||
Excess of current standard costs over LIFO costs | (119.5 | ) | (122.0 | ) | (91 | ) | (120 | ) | ||||||||
Allowances | (95.5 | ) | (89.0 | ) | (123 | ) | (109 | ) | ||||||||
Total inventories | $ | 3,060.3 | $ | 2,741.2 | $ | 3,268 | $ | 3,133 |
June 30, 2013 | December 31, 2012 | June 30, 2014 | December 31, 2013 | |||||||||||||
Plant and equipment, at cost | $ | 3,368.9 | $ | 3,155.9 | $ | 3,671 | $ | 3,670 | ||||||||
Accumulated depreciation | (1,518.0 | ) | (1,390.8 | ) | (1,656 | ) | (1,633 | ) | ||||||||
Total plant and equipment | $ | 1,850.9 | $ | 1,765.1 | $ | 2,015 | $ | 2,037 |
Balance at December 31, 2013 | $ | 2,925 | ||
Sale of Reciprocating Compression business | (213 | ) | ||
Impairment (See Note 3) | (40 | ) | ||
Acquisitions | 21 | |||
Adjustments to the purchase price allocation for prior year acquisitions | 19 | |||
Translation effect of currency changes and other | (8 | ) | ||
Balance at June 30, 2014 | $ | 2,704 |
Balance at December 31, 2012 | $ | 1,923.9 | ||
Current year acquisitions | 754.0 | |||
Adjustments to the purchase price allocation for prior year acquisitions | 10.2 | |||
Translation | (17.9 | ) | ||
Balance at June 30, 2013 | $ | 2,670.2 |
June 30, 2013 | December 31, 2012 | June 30, 2014 | December 31, 2013 | |||||||||||||
Trade accounts payable and accruals | $ | 855.8 | $ | 925.1 | $ | 690 | $ | 1,184 | ||||||||
Advances from customers | 1,566.7 | 1,320.1 | 1,737 | 1,676 | ||||||||||||
Other accruals | 826.6 | 800.5 | 1,079 | 1,023 | ||||||||||||
Total accounts payable and accrued liabilities | $ | 3,249.1 | $ | 3,045.7 | $ | 3,506 | $ | 3,883 |
Balance December 31, 2012 | Net warranty provisions | Charges against accrual | Formation of OneSubsea | Translation and other | Balance June 30, 2013 | |||||||||||||||||||||||||||||||||||||||
Balance December 31, 2013 | Balance December 31, 2013 | Net warranty provisions | Charges against accrual | Sale of Reciprocating Compression | Translation and other | Balance June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
$ | 67.6 | $ | 19.6 | $ | (29.3 | ) | $ | 1.3 | $ | (1.0 | ) | $ | 58.2 | 46 | $ | 26 | $ | (18 | ) | $ | (7 | ) | $ | – | $ | 47 |
June 30, 2013 | December 31, 2012 | June 30, 2014 | December 31, 2013 | |||||||||||||
Commercial paper (0.33% weighted average rate) | $ | 263 | $ | – | ||||||||||||
Senior notes: | ||||||||||||||||
Floating rate notes due June 2, 2014 | $ | 250.0 | $ | 250.0 | – | 250 | ||||||||||
1.6% notes due April 30, 2015 | 250.0 | 250.0 | 250 | 250 | ||||||||||||
1.15% notes due December 15, 2016 | 250 | 250 | ||||||||||||||
1.40% notes due June 15, 2017 | 250 | – | ||||||||||||||
6.375% notes due July 15, 2018 | 450.0 | 450.0 | 450 | 450 | ||||||||||||
4.5% notes due June 1, 2021 | 250.0 | 250.0 | 250 | 250 | ||||||||||||
3.6% notes due April 30, 2022 | 250.0 | 250.0 | 250 | 250 | ||||||||||||
4.0% notes due December 15, 2023 | 250 | 250 | ||||||||||||||
3.7% notes due June 15, 2024 | 250 | – | ||||||||||||||
7.0% notes due July 15, 2038 | 300.0 | 300.0 | 300 | 300 | ||||||||||||
5.95% notes due June 1, 2041 | 250.0 | 250.0 | 250 | 250 | ||||||||||||
5.125% notes due December 15, 2043 | 250 | 250 | ||||||||||||||
Unamortized original issue discount | (4.0 | ) | (4.1 | ) | (7 | ) | (7 | ) | ||||||||
Other debt | 20.9 | 19.6 | 60 | 57 | ||||||||||||
Obligations under capital leases | 61.1 | 60.7 | 60 | 60 | ||||||||||||
2,078.0 | 2,076.2 | 3,376 | 2,860 | |||||||||||||
Current maturities | (32.3 | ) | (29.2 | ) | (562 | ) | (297 | ) | ||||||||
Long-term maturities | $ | 2,045.7 | $ | 2,047.0 | $ | 2,814 | $ | 2,563 |
· | $250 million principal amount of 1.4% Senior Notes due June 15, 2017, sold at an offering price of 99.951%, and |
· | $250 million principal amount of 3.7% Senior Notes due June 15, 2024, sold at an offering price of 99.769%. |
Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Tax Provision | Tax Rate | Tax Provision | Tax Rate | |||||||||||||
Forecasted tax expense by jurisdiction | $ | 109 | 24.0 | % | $ | 91 | 23.8 | % | ||||||||
Adjustments to income tax provision: | ||||||||||||||||
Recognition of certain historical tax benefits as prior uncertainty regarding those benefits has been resolved | – | – | (1 | ) | (0.1 | ) | ||||||||||
Tax effect of goodwill impairment | 10 | 2.1 | – | – | ||||||||||||
Finalization of prior year returns | (4 | ) | (0.9 | ) | 9 | 2.4 | ||||||||||
Tax effects of changes in legislation | – | – | (7 | ) | (1.9 | ) | ||||||||||
Changes in valuation allowances | – | – | 5 | 1.4 | ||||||||||||
Accrual adjustments and other | (1 | ) | (0.1 | ) | – | – | ||||||||||
Tax provision | $ | 114 | 25.1 | % | $ | 97 | 25.6 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
DPS | $ | 1,438.4 | $ | 1,155.8 | $ | 2,707.4 | $ | 2,197.9 | $ | 1,903 | $ | 1,438 | $ | 3,608 | $ | 2,707 | ||||||||||||||||
V&M | 534.3 | 558.3 | 1,055.8 | 1,049.5 | 536 | 534 | 1,028 | 1,056 | ||||||||||||||||||||||||
PCS | 314.7 | 339.6 | 641.9 | 610.6 | 202 | 237 | 436 | 507 | ||||||||||||||||||||||||
$ | 2,287.4 | $ | 2,053.7 | $ | 4,405.1 | $ | 3,858.0 | $ | 2,641 | $ | 2,209 | $ | 5,072 | $ | 4,270 | |||||||||||||||||
Income (loss) before income taxes: | ||||||||||||||||||||||||||||||||
DPS | $ | 195.6 | $ | 176.1 | $ | 350.0 | $ | 311.4 | $ | 235 | $ | 196 | $ | 418 | $ | 350 | ||||||||||||||||
V&M | 108.7 | 111.1 | 222.1 | 203.7 | 107 | 109 | 201 | 222 | ||||||||||||||||||||||||
PCS | 23.2 | 26.9 | 45.2 | 37.5 | 13 | 17 | 28 | 37 | ||||||||||||||||||||||||
Corporate & other | (121.6 | ) | (91.0 | ) | (228.5 | ) | (157.7 | ) | (69 | ) | (122 | ) | (191 | ) | (229 | ) | ||||||||||||||||
$ | 205.9 | $ | 223.1 | $ | 388.8 | $ | 394.9 | $ | 286 | $ | 200 | $ | 456 | $ | 380 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Net income | $ | 140.4 | $ | 174.6 | $ | 288.8 | $ | 308.6 | ||||||||||||||||||||||||
Net income from continuing operations | $ | 220 | $ | 136 | $ | 342 | $ | 283 | ||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 12 | – | 17 | – | ||||||||||||||||||||||||||||
Net income from continuing operations attributable to Cameron | 208 | 136 | 325 | 283 | ||||||||||||||||||||||||||||
Income from discontinued operations, net of taxes | 13 | 4 | 7 | 6 | ||||||||||||||||||||||||||||
Net income attributable to Cameron | $ | 221 | $ | 140 | $ | 332 | $ | 289 | ||||||||||||||||||||||||
Average shares outstanding (basic) | 246.6 | 246.3 | 247.1 | 246.2 | 204 | 247 | 209 | 247 | ||||||||||||||||||||||||
Common stock equivalents | 1.5 | 1.4 | 1.5 | 1.6 | 1 | 1 | 2 | 2 | ||||||||||||||||||||||||
Diluted shares | 248.1 | 247.7 | 248.6 | 247.8 | 205 | 248 | 211 | 249 | ||||||||||||||||||||||||
Basic earnings per share | $ | 0.57 | $ | 0.71 | $ | 1.17 | $ | 1.25 | ||||||||||||||||||||||||
Diluted earnings per share | $ | 0.57 | $ | 0.70 | $ | 1.16 | $ | 1.25 | ||||||||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||||||||||
Continuing operations | $ | 1.02 | $ | 0.55 | $ | 1.55 | $ | 1.15 | ||||||||||||||||||||||||
Discontinued operations | 0.06 | 0.02 | 0.04 | 0.02 | ||||||||||||||||||||||||||||
$ | 1.08 | $ | 0.57 | $ | 1.59 | $ | 1.17 | |||||||||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||||||||||
Continuing operations | $ | 1.02 | $ | 0.55 | $ | 1.54 | $ | 1.14 | ||||||||||||||||||||||||
Discontinued operations | 0.06 | 0.02 | 0.04 | 0.02 | ||||||||||||||||||||||||||||
$ | 1.08 | $ | 0.57 | $ | 1.58 | $ | 1.16 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Treasury shares at beginning of period | 15,768,832 | 16,826,348 | 16,415,336 | 17,579,397 | 56,109,636 | 15,768,832 | 41,683,164 | 16,415,336 | ||||||||||||||||||||||||
Purchases of treasury shares | 1,500,002 | 100,000 | 2,113,455 | 157,200 | 4,516,668 | 1,500,002 | 19,673,771 | 2,113,455 | ||||||||||||||||||||||||
Net change in treasury shares owned by participants in nonqualified deferred compensation plans | (1,068 | ) | – | 52,107 | – | (1,614 | ) | (1,068 | ) | 38,148 | 52,107 | |||||||||||||||||||||
Treasury shares issued in satisfaction of stock option exercises and vesting of restricted stock units | (266,036 | ) | (87,330 | ) | (1,579,168 | ) | (897,579 | ) | (597,340 | ) | (266,036 | ) | (1,367,733 | ) | (1,579,168 | ) | ||||||||||||||||
Treasury shares at end of period | 17,001,730 | 16,839,018 | 17,001,730 | 16,839,018 | 60,027,350 | 17,001,730 | 60,027,350 | 17,001,730 |
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
Accumulated Foreign Currency Translation Gain (Loss) | Prior Service Credits and Net Actuarial Losses | Accumulated Gain (Loss) on Cash Flow Hedge Derivatives | Total | Three Months Ended June 30, 2012 | Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||||
Accumulated Foreign Currency Translation Gain (Loss) | Prior Service Credits and Net Actuarial Losses | Accumulated Gain (Loss) on Cash Flow Hedge Derivatives | Total | Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | (23.0 | ) | $ | (85.5 | ) | $ | 1.6 | $ | (106.9 | ) | $ | (43.9 | ) | $ | (40 | ) | $ | (45 | ) | $ | 16 | $ | (69 | ) | $ | (107 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||||||||||||||||||||||
Pre-tax | (48.3 | ) | – | (2.7 | ) | (51.0 | ) | (54.8 | ) | (3 | ) | – | (3 | ) | (6 | ) | (51 | ) | ||||||||||||||||||||||
Tax effect | – | – | 1.4 | 1.4 | 3.1 | – | – | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to: | ||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income to: | ||||||||||||||||||||||||||||||||||||||||
Revenues | – | – | – | – | 0.6 | – | – | (2 | ) | (2 | ) | - | ||||||||||||||||||||||||||||
Cost of sales | – | – | (0.3 | ) | (0.3 | ) | 1.1 | – | – | (2 | ) | (2 | ) | - | ||||||||||||||||||||||||||
Depreciation and amortization | – | – | – | – | 0.1 | |||||||||||||||||||||||||||||||||||
Selling and administrative expense | – | 1.4 | – | 1.4 | 4.1 | – | – | – | – | 1 | ||||||||||||||||||||||||||||||
Tax effect | – | (0.6 | ) | 0.2 | (0.4 | ) | (0.1 | ) | – | – | 2 | 2 | - | |||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | (48.3 | ) | 0.8 | (1.4 | ) | (48.9 | ) | (45.9 | ) | |||||||||||||||||||||||||||||||
Net current period other comprehensive loss | (3 | ) | – | (4 | ) | (7 | ) | (49 | ) | |||||||||||||||||||||||||||||||
Balance at end of period | $ | (71.3 | ) | $ | (84.7 | ) | $ | 0.2 | $ | (155.8 | ) | $ | (89.8 | ) | $ | (43 | ) | $ | (45 | ) | $ | 12 | $ | (76 | ) | $ | (156 | ) |
Six Months Ended June 30, 2013 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||||||||
Accumulated Foreign Currency Translation Gain (Loss) | Prior Service Credits and Net Actuarial Losses | Accumulated Gain (Loss) on Cash Flow Hedge Derivatives | Total | Six Months Ended June 30, 2012 | Accumulated Foreign Currency Translation Gain (Loss) | Prior Service Credits and Net Actuarial Losses | Accumulated Gain (Loss) on Cash Flow Hedge Derivatives | Total | Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 45.9 | $ | (86.6 | ) | $ | 10.7 | $ | (30.0 | ) | $ | (90.8 | ) | $ | (49 | ) | $ | (45 | ) | $ | 14 | $ | (80 | ) | $ | (30 | ) | |||||||||||||
Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||||||||||||||||||||||
Pre-tax | (117.2 | ) | – | (15.1 | ) | (132.3 | ) | (11.9 | ) | 6 | – | 4 | 10 | (132 | ) | |||||||||||||||||||||||||
Tax effect | – | – | 5.5 | 5.5 | 2.5 | – | – | (2 | ) | (2 | ) | 5 | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to: | ||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income to: | ||||||||||||||||||||||||||||||||||||||||
Revenues | – | – | (1.5 | ) | (1.5 | ) | 2.0 | – | – | (5 | ) | (5 | ) | (2 | ) | |||||||||||||||||||||||||
Cost of sales | – | – | – | – | 4.8 | – | – | (2 | ) | (2 | ) | |||||||||||||||||||||||||||||
Depreciation and amortization | – | – | – | – | 0.1 | |||||||||||||||||||||||||||||||||||
Selling and administrative expense | – | 3.1 | – | 3.1 | 5.0 | – | – | – | – | 3 | ||||||||||||||||||||||||||||||
Tax effect | – | (1.2 | ) | 0.6 | (0.6 | ) | (1.5 | ) | – | – | 3 | 3 | - | |||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | (117.2 | ) | 1.9 | (10.5 | ) | (125.8 | ) | 1.0 | 6 | – | (2 | ) | 4 | (126 | ) | |||||||||||||||||||||||||
Balance at end of period | $ | (71.3 | ) | $ | (84.7 | ) | $ | 0.2 | $ | (155.8 | ) | $ | (89.8 | ) | $ | (43 | ) | $ | (45 | ) | $ | 12 | $ | (76 | ) | $ | (156 | ) |
Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Based on Significant Other Observable Inputs (Level 2) | Total | Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Based on Significant Other Observable Inputs (Level 2) | Total | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash | $ | 1,000.1 | $ | 447.1 | $ | – | $ | – | $ | 1,000.1 | $ | 447.1 | $ | 536 | $ | 618 | $ | – | $ | – | $ | 536 | $ | 618 | ||||||||||||||||||||||||
Certificates of deposit | – | 0.2 | – | – | – | 0.2 | ||||||||||||||||||||||||||||||||||||||||||
Money market funds | 586.8 | 429.1 | – | – | 586.8 | 429.1 | 960 | 1,172 | – | – | 960 | 1,172 | ||||||||||||||||||||||||||||||||||||
Commercial paper | – | – | 66.8 | 202.7 | 66.8 | 202.7 | – | – | 10 | 4 | 10 | 4 | ||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | – | 17.6 | – | – | – | 17.6 | ||||||||||||||||||||||||||||||||||||||||||
U.S. non-governmental agency asset-backed securities | – | – | 15.2 | 41.4 | 15.2 | 41.4 | ||||||||||||||||||||||||||||||||||||||||||
U.S. corporate obligations | 2.9 | 18.9 | – | – | 2.9 | 18.9 | ||||||||||||||||||||||||||||||||||||||||||
Non-U.S. bank and other obligations | 46.3 | 28.8 | – | – | 46.3 | 28.8 | 19 | 19 | – | – | 19 | 19 | ||||||||||||||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | 0.2 | 3.0 | – | – | 0.2 | 3.0 | ||||||||||||||||||||||||||||||||||||||||||
Commercial paper | – | – | 187.9 | 253.9 | 187.9 | 253.9 | ||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | 9.9 | 64.5 | – | – | 9.9 | 64.5 | 56 | 41 | – | – | 56 | 41 | ||||||||||||||||||||||||||||||||||||
U.S. non-governmental agency asset-backed securities | – | – | 59.8 | 99.5 | 59.8 | 99.5 | ||||||||||||||||||||||||||||||||||||||||||
U.S. corporate obligations | 52.4 | 96.1 | – | – | 52.4 | 96.1 | ||||||||||||||||||||||||||||||||||||||||||
Non-qualified plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | 1.2 | 1.1 | – | – | 1.2 | 1.1 | 1 | 1 | – | – | 1 | 1 | ||||||||||||||||||||||||||||||||||||
Domestic bond funds | 2.6 | 2.4 | – | – | 2.6 | 2.4 | 3 | 3 | – | – | 3 | 3 | ||||||||||||||||||||||||||||||||||||
International bond fund | 0.3 | 0.1 | – | – | 0.3 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||
Domestic equity funds | 4.0 | 3.6 | – | – | 4.0 | 3.6 | 6 | 5 | – | – | 6 | 5 | ||||||||||||||||||||||||||||||||||||
International equity funds | 2.2 | 2.1 | – | – | 2.2 | 2.1 | 3 | 3 | – | – | 3 | 3 | ||||||||||||||||||||||||||||||||||||
Blended equity funds | 3.1 | 2.6 | – | – | 3.1 | 2.6 | 5 | 4 | – | – | 5 | 4 | ||||||||||||||||||||||||||||||||||||
Common stock | 3.2 | 2.1 | – | – | 3.2 | 2.1 | 2 | 2 | – | – | 2 | 2 | ||||||||||||||||||||||||||||||||||||
Derivatives, net asset (liability): | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | – | – | (14.3 | ) | 19.9 | (14.3 | ) | 19.9 | – | – | 5 | 19 | 5 | 19 | ||||||||||||||||||||||||||||||||||
$ | 1,715.2 | $ | 1,119.3 | $ | 315.4 | $ | 617.4 | $ | 2,030.6 | $ | 1,736.7 | $ | 1,591 | $ | 1,868 | $ | 15 | $ | 23 | $ | 1,606 | $ | 1,891 |
Notional Amount - Buy | Notional Amount - Sell | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | Total | 2013 | 2014 | 2015 | Total | |||||||||||||||||||||||||
FX Forward Contracts | ||||||||||||||||||||||||||||||||
Notional currency in: | ||||||||||||||||||||||||||||||||
EUR | 150.7 | 82.9 | – | 233.6 | (11.5 | ) | (1.5 | ) | – | (13.0 | ) | |||||||||||||||||||||
GBP | 96.5 | 10.3 | 0.5 | 107.3 | (32.9 | ) | (1.3 | ) | – | (34.2 | ) | |||||||||||||||||||||
MYR | – | 28.4 | – | 28.4 | – | – | – | – | ||||||||||||||||||||||||
NOK | 816.7 | 801.5 | 128.5 | 1,746.7 | (274.4 | ) | (134.4 | ) | – | (408.8 | ) | |||||||||||||||||||||
SGD | 0.3 | – | – | 0.3 | – | – | – | – | ||||||||||||||||||||||||
USD | 60.1 | 6.2 | – | 66.3 | (174.7 | ) | (112.4 | ) | (6.4 | ) | (293.5 | ) |
Notional Amount - Buy | Notional Amount - Sell | |||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | Total | 2014 | 2015 | 2016 | Total | |||||||||||||||||||||||||
Foreign exchange forward contracts - | ||||||||||||||||||||||||||||||||
Notional currency in: | ||||||||||||||||||||||||||||||||
Australian dollar | 17 | – | – | 17 | (17 | ) | – | – | (17 | ) | ||||||||||||||||||||||
Chinese yuan | 20 | – | – | 20 | – | – | – | – | ||||||||||||||||||||||||
Euro | 107 | 28 | 10 | 145 | (23 | ) | (4 | ) | (1 | ) | (28 | ) | ||||||||||||||||||||
Malaysian ringgit | 51 | 215 | 3 | 269 | (14 | ) | – | – | (14 | ) | ||||||||||||||||||||||
Norwegian krone | 612 | 513 | 54 | 1,179 | (159 | ) | (64 | ) | – | (223 | ) | |||||||||||||||||||||
Pound sterling | 52 | 17 | 1 | 70 | (37 | ) | (17 | ) | (1 | ) | (55 | ) | ||||||||||||||||||||
U.S. dollar | 56 | 7 | – | 63 | (389 | ) | (215 | ) | (47 | ) | (651 | ) |
June 30, 2014 | December 31, 2013 | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Current | $ | 18 | $ | 13 | $ | 28 | $ | 10 | ||||||||
Non-current | 3 | 2 | 3 | 2 | ||||||||||||
Total derivatives designated as hedging instruments | 21 | 15 | 31 | 12 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Current | 2 | 3 | 6 | 6 | ||||||||||||
Non-current | – | – | – | – | ||||||||||||
Total derivatives not designated as hedging instruments | 2 | 3 | 6 | 6 | ||||||||||||
Total derivatives | $ | 23 | $ | 18 | $ | 37 | $ | 18 |
June 30, 2013 | December 31, 2012 | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
Foreign exchange contracts designated as hedging instruments: | ||||||||||||||||
Current | $ | 10.2 | $ | 16.2 | $ | 20.4 | $ | 5.7 | ||||||||
Non-current | 0.8 | 2.8 | 2.3 | 0.4 | ||||||||||||
11.0 | 19.0 | 22.7 | 6.1 | |||||||||||||
Foreign exchange contracts not designated as hedging instruments: | ||||||||||||||||
Current | 1.8 | 7.0 | 3.3 | – | ||||||||||||
Non-current | – | 1.1 | – | – | ||||||||||||
1.8 | 8.1 | 3.3 | – | |||||||||||||
Total derivatives | $ | 12.8 | $ | 27.1 | $ | 26.0 | $ | 6.1 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | June 30, | June 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Foreign currency contracts designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments - | ||||||||||||||||||||||||||||||||
Cost of sales | $ | (0.7 | ) | $ | (0.8 | ) | $ | (5.4 | ) | $ | (0.5 | ) | $ | (1 | ) | $ | (1 | ) | $ | 1 | $ | (5 | ) | |||||||||
Foreign currency contracts not designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments - | ||||||||||||||||||||||||||||||||
Cost of sales | – | (0.5 | ) | – | 0.5 | 1 | – | 2 | – | |||||||||||||||||||||||
Other costs | 2.7 | 1.5 | – | 5.6 | – | 3 | – | – | ||||||||||||||||||||||||
$ | – | $ | 2 | $ | 3 | $ | (5 | ) | ||||||||||||||||||||||||
Total | $ | 2.0 | $ | 0.2 | $ | (5.4 | ) | $ | 5.6 |
· | identify performance obligations in each contract, |
· | estimate the amount of variable consideration to include in the transaction price, and |
· | allocate the transaction price to each separate performance obligation. |
Three Months Ended June 30, | Increase (Decrease) | Three Months Ended June 30, | Increase (Decrease) | |||||||||||||||||||||||||||||
2013 | 2012 | Amount | % | 2014 | 2013 | Amount | % | |||||||||||||||||||||||||
Drilling activity (average number of working rigs during period)(1): | ||||||||||||||||||||||||||||||||
United States | 1,761 | 1,970 | (209 | ) | (10.6 | )% | 1,852 | 1,761 | 91 | 5.2 | % | |||||||||||||||||||||
Canada | 155 | 173 | (18 | ) | (10.4 | )% | 202 | 155 | 47 | 30.3 | % | |||||||||||||||||||||
Rest of world | 1,306 | 1,229 | 77 | 6.3 | % | 1,345 | 1,306 | 39 | 3.0 | % | ||||||||||||||||||||||
Global average rig count | 3,222 | 3,372 | (150 | ) | (4.4 | )% | 3,399 | 3,222 | 177 | 5.5 | % | |||||||||||||||||||||
Commodity prices (average of daily U.S. dollar prices per unit during period)(2): | ||||||||||||||||||||||||||||||||
West Texas Intermediate Cushing, OK crude spot price per barrel in U.S. dollars | $ | 94.14 | $ | 93.30 | $ | 0.84 | 0.9 | % | $ | 103.06 | $ | 94.14 | $ | 8.92 | 9.5 | % | ||||||||||||||||
Henry Hub natural gas spot price per MMBtu in U.S. dollars | $ | 4.02 | $ | 2.30 | $ | 1.72 | 74.8 | % | $ | 4.59 | $ | 4.02 | $ | 0.57 | 14.2 | % | ||||||||||||||||
Twelve-month futures strip price (U.S. dollar amount at period end)(2): | ||||||||||||||||||||||||||||||||
West Texas Intermediate Cushing, OK crude oil contract (per barrel) | $ | 93.62 | $ | 87.14 | $ | 6.48 | 7.4 | % | $ | 101.10 | $ | 93.62 | $ | 7.48 | 8.0 | % | ||||||||||||||||
Henry Hub Natural Gas contract (per MMBtu) | $ | 3.76 | $ | 3.29 | $ | 0.47 | 14.3 | % | ||||||||||||||||||||||||
Henry Hub natural gas contract (per MMBtu) | $ | 4.35 | $ | 3.76 | $ | 0.59 | 15.7 | % | ||||||||||||||||||||||||
Contracted drillships and semi submersibles by location at period-end(3): | ||||||||||||||||||||||||||||||||
Contracted drillships and semi-submersibles by location at period-end(3): | ||||||||||||||||||||||||||||||||
U.S. Gulf of Mexico | 40 | 40 | – | – | 49 | 40 | 9 | 22.5 | % | |||||||||||||||||||||||
Central and South America | 88 | 85 | 3 | 3.5 | % | 76 | 88 | (12 | ) | (13.6 | )% | |||||||||||||||||||||
Northwestern Europe | 47 | 45 | 2 | 4.4 | % | 46 | 47 | (1 | ) | (2.1 | )% | |||||||||||||||||||||
West Africa | 37 | 34 | 3 | 8.8 | % | 45 | 27 | 18 | 66.7 | % | ||||||||||||||||||||||
Southeast Asia and Australia | 23 | 40 | (17 | ) | (42.5 | )% | 26 | 23 | 3 | 13.0 | % | |||||||||||||||||||||
Other | 45 | 30 | 15 | 50.0 | % | 44 | 45 | (1 | ) | (2.2 | )% | |||||||||||||||||||||
Total | 286 | 270 | 16 | 5.9 | % |
Three Months Ended June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Tax Provision | Tax Rate | Tax Provision | Tax Rate | |||||||||||||
Forecasted tax expense by jurisdiction | $ | 68 | 24.0 | % | $ | 50 | 24.7 | % | ||||||||
Adjustments to income tax provision: | ||||||||||||||||
Recognition of certain historical tax benefits as prior uncertainty regarding those benefits has been resolved | – | – | (1 | ) | (0.3 | ) | ||||||||||
Finalization of prior year returns | (1 | ) | (0.5 | ) | 10 | 4.8 | ||||||||||
Changes in valuation allowances | – | – | 5 | 2.6 | ||||||||||||
Accrual adjustments and other | (1 | ) | (0.5 | ) | – | – | ||||||||||
Tax provision | $ | 66 | 23.0 | % | $ | 64 | 31.8 | % |
Three Months Ended June 30, | Increase (Decrease) | Three Months Ended June 30, | Increase (Decrease) | |||||||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | $ | % | 2014 | 2013 | $ | % | ||||||||||||||||||||||||
Revenues | $ | 1,438.4 | $ | 1,155.8 | $ | 282.6 | 24.5 | % | $ | 1,903 | $ | 1,438 | $ | 465 | 32.3 | % | ||||||||||||||||
Income before income taxes | $ | 195.6 | $ | 176.1 | $ | 19.5 | 11.1 | % | ||||||||||||||||||||||||
Income before income taxes as a percent of revenues | 13.6 | % | 15.2 | % | N/A | (1.6 | )% | |||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 235 | $ | 196 | $ | 39 | 19.9 | % | ||||||||||||||||||||||||
Income from continuing operations before income taxes as a percent of revenues | 12.3 | % | 13.6 | % | N/A | (1.3 | )% | |||||||||||||||||||||||||
Orders | $ | 1,502.7 | $ | 1,617.2 | $ | (114.5 | ) | (7.1 | )% | $ | 1,690 | $ | 1,503 | $ | 187 | 12.4 | % | |||||||||||||||
Backlog (at period-end) | $ | 8,470.4 | $ | 5,155.3 | $ | 3,315.1 | 64.3 | % | $ | 9,209 | $ | 8,470 | $ | 739 | 8.7 | % |
Three Months Ended June 30, | Increase (Decrease) | Three Months Ended June 30, | Increase/(Decrease) | |||||||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | $ | % | 2014 | 2013 | $ | % | ||||||||||||||||||||||||
Revenues | $ | 534.3 | $ | 558.3 | $ | (24.0 | ) | (4.3 | )% | $ | 536 | $ | 534 | $ | 2 | 0.4 | % | |||||||||||||||
Income before income taxes | $ | 108.7 | $ | 111.1 | $ | (2.4 | ) | (2.2 | )% | |||||||||||||||||||||||
Income before income taxes as a percent of revenues | 20.3 | % | 19.9 | % | N/A | 0.4 | % | |||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 107 | $ | 109 | $ | (2 | ) | (1.8 | )% | |||||||||||||||||||||||
Income from continuing operations before income taxes as a percent of revenues | 20.0 | % | 20.4 | % | N/A | (0.4 | )% | |||||||||||||||||||||||||
Orders | $ | 523.8 | $ | 549.8 | $ | (26.0 | ) | (4.7 | )% | $ | 517 | $ | 524 | $ | (7 | ) | (1.3 | )% | ||||||||||||||
Backlog (at period-end) | $ | 1,063.0 | $ | 1,144.0 | $ | (81.0 | ) | (7.1 | )% | $ | 1,026 | $ | 1,063 | $ | (37 | ) | (3.5 | )% |
Three Months Ended June 30, | Increase (Decrease) | Three Months Ended June 30, | Increase (Decrease) | |||||||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | $ | % | 2014(1) | 2013(1) | $ | % | ||||||||||||||||||||||||
Revenues | $ | 314.7 | $ | 339.6 | $ | (24.9 | ) | (7.3 | )% | $ | 202 | $ | 237 | $ | (35 | ) | (14.8 | )% | ||||||||||||||
Income before income taxes | $ | 23.2 | $ | 26.9 | $ | (3.7 | ) | (13.8 | )% | |||||||||||||||||||||||
Income before income taxes as a percent of revenues | 7.4 | % | 7.9 | % | N/A | (0.5 | )% | |||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 13 | $ | 17 | $ | (4 | ) | (23.5 | )% | |||||||||||||||||||||||
Income from continuing operations before income taxes as a percent of revenues | 6.4 | % | 7.2 | % | N/A | (0.8 | )% | |||||||||||||||||||||||||
Orders | $ | 304.4 | $ | 407.0 | $ | (102.6 | ) | (25.2 | )% | $ | 229 | $ | 212 | $ | 17 | 8.0 | % | |||||||||||||||
Backlog (at period-end) | $ | 963.7 | $ | 1,154.3 | $ | (190.6 | ) | (16.5 | )% | $ | 908 | $ | 832 | $ | 76 | 9.1 | % |
Six Months Ended June 30, | Increase (Decrease) | Six Months Ended June 30, | Increase | |||||||||||||||||||||||||||||
2013 | 2012 | Amount | % | 2014 | 2013 | Amount | % | |||||||||||||||||||||||||
Drilling activity (average number of working rigs during period)(1): | ||||||||||||||||||||||||||||||||
United States | 1,760 | 1,981 | (221 | ) | (11.2 | )% | 1,816 | 1,760 | 56 | 3.2 | % | |||||||||||||||||||||
Canada | 346 | 382 | (36 | ) | (9.4 | )% | 364 | 346 | 18 | 5.2 | % | |||||||||||||||||||||
Rest of world | 1,290 | 1,209 | 81 | 6.7 | % | 1,341 | 1,290 | 51 | 4.0 | % | ||||||||||||||||||||||
Global average rig count | 3,396 | 3,572 | (176 | ) | (4.9 | )% | 3,521 | 3,396 | 125 | 3.7 | % | |||||||||||||||||||||
Commodity prices (average of daily U.S. dollar prices per unit during period)(2): | ||||||||||||||||||||||||||||||||
West Texas Intermediate Cushing, OK crude spot price per barrel in U.S. dollars | $ | 94.22 | $ | 98.11 | $ | (3.89 | ) | (4.0 | )% | $ | 100.89 | $ | 94.22 | $ | 6.67 | 7.1 | % | |||||||||||||||
Henry Hub natural gas spot price per MMBtu in U.S. dollars | $ | 3.76 | $ | 2.36 | $ | 1.40 | 59.3 | % | $ | 4.95 | $ | 3.76 | $ | 1.19 | 31.6 | % |
Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Tax Provision | Tax Rate | Tax Provision | Tax Rate | |||||||||||||
Forecasted tax expense by jurisdiction | $ | 109 | 24.0 | % | $ | 91 | 23.8 | % | ||||||||
Adjustments to income tax provision: | ||||||||||||||||
Recognition of certain historical tax benefits as prior uncertainty regarding those benefits has been resolved | – | – | (1 | ) | (0.1 | ) | ||||||||||
Tax effect of goodwill impairment | 10 | 2.1 | – | – | ||||||||||||
Finalization of prior year returns | (4 | ) | (0.9 | ) | 9 | 2.4 | ||||||||||
Tax effects of changes in legislation | – | – | (7 | ) | (1.9 | ) | ||||||||||
Changes in valuation allowances | – | – | 5 | 1.4 | ||||||||||||
Accrual adjustments and other | (1 | ) | (0.1 | ) | – | – | ||||||||||
Tax provision | $ | 114 | 25.1 | % | $ | 97 | 25.6 | % |
Six Months Ended June 30, | Increase (Decrease) | Six Months Ended June 30, | Increase (Decrease) | |||||||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | $ | % | 2014 | 2013 | $ | % | ||||||||||||||||||||||||
Revenues | $ | 2,707.4 | $ | 2,197.9 | $ | 509.5 | 23.2 | % | $ | 3,608 | $ | 2,707 | $ | 901 | 33.3 | % | ||||||||||||||||
Income before income taxes | $ | 350.0 | $ | 311.4 | $ | 38.6 | 12.4 | % | ||||||||||||||||||||||||
Income before income taxes as a percent of revenues | 12.9 | % | 14.2 | % | N/ | A | (1.3 | )% | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 418 | $ | 350 | $ | 68 | 19.4 | % | ||||||||||||||||||||||||
Income from continuing operations before income taxes as a percent of revenues | 11.6 | % | 12.9 | % | N/A | (1.3 | )% | |||||||||||||||||||||||||
Orders | $ | 4,245.7 | $ | 3,306.6 | $ | 939.1 | 28.4 | % | $ | 3,449 | $ | 4,246 | $ | (797 | ) | (18.8 | )% |
Six Months Ended June 30, | Increase (Decrease) | Six Months Ended June 30, | Decrease | |||||||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | $ | % | 2014 | 2013 | $ | % | ||||||||||||||||||||||||
Revenues | $ | 1,055.8 | $ | 1,049.5 | $ | 6.3 | 0.6 | % | $ | 1,028 | $ | 1,056 | $ | (28 | ) | (2.7 | )% | |||||||||||||||
Income before income taxes | $ | 222.1 | $ | 203.7 | $ | 18.4 | 9.0 | % | ||||||||||||||||||||||||
Income before income taxes as a percent of revenues | 21.0 | % | 19.4 | % | N/ | A | 1.6 | % | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 201 | $ | 222 | $ | (21 | ) | (9.5 | )% | |||||||||||||||||||||||
Income from continuing operations before income taxes as a percent of revenues | 19.6 | % | 21.0 | % | N/A | (1.4 | )% | |||||||||||||||||||||||||
Orders | $ | 1,062.3 | $ | 1,077.8 | $ | (15.5 | ) | (1.4 | )% | $ | 1,053 | $ | 1,062 | $ | (9 | ) | (0.8 | )% |
Six Months Ended June 30, | Increase (Decrease) | Six Months Ended June 30, | Decrease | |||||||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | $ | % | 2014 | 2013 | $ | % | ||||||||||||||||||||||||
Revenues | $ | 641.9 | $ | 610.6 | $ | 31.3 | 5.1 | % | $ | 436 | $ | 507 | $ | (71 | ) | (14.0 | )% | |||||||||||||||
Income before income taxes | $ | 45.2 | $ | 37.5 | $ | 7.7 | 20.5 | % | ||||||||||||||||||||||||
Income before income taxes as a percent of revenues | 7.0 | % | 6.1 | % | N/ | A | 0.9 | % | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 28 | $ | 37 | $ | (9 | ) | (24.3 | )% | |||||||||||||||||||||||
Income from continuing operations before income taxes as a percent of revenues | 6.4 | % | 7.3 | % | N/A | (0.9 | )% | |||||||||||||||||||||||||
Orders | $ | 656.4 | $ | 759.0 | $ | (102.6 | ) | (13.5 | )% | $ | 416 | $ | 480 | $ | (64 | ) | (13.3 | )% |
• | volatility in general economic, social and political conditions; |
• | the effects of civil unrest and sanctions imposed by the United States and other governments on transactions with various countries, such as Iran; |
• | the effects of civil unrest and, in some cases, military action on the Company's business operations, customers and employees, such as that recently occurring in several countries in the Middle East, in Ukraine and in Venezuela; |
• | exchange controls or other similar measures that result in restrictions on repatriation of capital and/or income, such as those involving the currencies of, and the Company's operations in, Angola and Nigeria; and |
• | reductions in the number or capacity of qualified personnel. |
Item 3. Quantitative and Qualitative Disclosures about Market Risk |
Period | Total number of shares purchased during the period | Average price paid per share | Cumulative number of shares purchased as part of repurchase program | Maximum number of shares that may yet be purchased under repurchase program(1) | ||||||||||||
4/1/13 – 4/30/13 | 716,700 | $ | 60.00 | 1,791.953 | 6,400,781 | |||||||||||
5/1/13 – 5/31/13 | 213,000 | $ | 63.14 | 2,004,953 | 6,251,346 | |||||||||||
6/1/13 – 6/30/13 | 570,302 | $ | 61.27 | 2,575,255 | 5,650,375 | |||||||||||
Total | 1,500,002 | $ | 60.93 | 2,575,255 | 5,650,375 |
Period | Total number of shares purchased during the period | Average price paid per share | Cumulative number of shares purchased as part of repurchase program | Maximum number of shares that may yet be purchased under repurchase program(1) | ||||||||||||
4/1/14 – 4/30/14 | 3,788,207 | $ | 62.73 | 46,362,733 | 2,815,393 | |||||||||||
5/1/14 – 5/31/14 | 452,100 | $ | 63.62 | 46,814,833 | 7,416,387 | |||||||||||
6/1/14 – 6/30/14 | 276,361 | $ | 65.76 | 47,091,194 | 6,736,137 | |||||||||||
Total | 4,516,668 | $ | 63.00 | 47,091,194 | 6,736,137 |
(1) | Based upon month-end stock price. At June 30, 2014, the closing stock price was $67.71 per share. |
(a) | Information Not Previously Reported in a Report on Form 8-K |
(b) | Material Changes to the Procedures by Which Security Holders May Recommend Board Nominees. |
Date: July | CAMERON INTERNATIONAL CORPORATION | |||
(Registrant) | ||||
By: | /s/ Charles M. Sledge | |||
Charles M. Sledge | ||||
Senior Vice President and Chief Financial Officer and authorized to sign on behalf of the Registrant |
Exhibit Number | Description |
Certification | |
Certification | |
Certification of the CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |