Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 14, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | NOV | |
Security Exchange Name | NYSE | |
Entity Registrant Name | NOV INC. | |
Entity Central Index Key | 0001021860 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 393,724,975 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 1-12317 | |
Entity Tax Identification Number | 76-0475815 | |
Entity Address, Address Line One | 10353 Richmond Avenue | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Postal Zip Code | 77042-4103 | |
City Area Code | 346 | |
Local Phone Number | 223-3000 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 774 | $ 1,069 |
Receivables, net | 1,776 | 1,739 |
Inventories, net | 2,036 | 1,813 |
Contract assets | 637 | 685 |
Prepaid and other current assets | 199 | 187 |
Total current assets | 5,422 | 5,493 |
Property, plant and equipment, net | 1,814 | 1,781 |
Lease right-of-use assets, operating | 361 | 346 |
Lease right-of-use assets, financing | 171 | 171 |
Goodwill | 1,549 | 1,505 |
Intangibles, net | 477 | 490 |
Investment in unconsolidated affiliates | 144 | 117 |
Other assets | 239 | 232 |
Total assets | 10,177 | 10,135 |
Current liabilities: | ||
Accounts payable | 961 | 906 |
Accrued liabilities | 775 | 959 |
Contract liabilities | 449 | 444 |
Current portion of lease liabilities | 89 | 87 |
Current portion of long-term debt | 13 | 13 |
Accrued income taxes | 21 | 28 |
Total current liabilities | 2,308 | 2,437 |
Long-term debt | 1,719 | 1,717 |
Lease liabilities | 556 | 549 |
Deferred income taxes | 68 | 68 |
Other liabilities | 218 | 230 |
Total liabilities | 4,869 | 5,001 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock - par value $.01; 1 billion shares authorized; 393,727,525 and 392,832,752 shares issued and outstanding at March 31, 2023 and December 31, 2022 | 4 | 4 |
Additional paid-in capital | 8,756 | 8,754 |
Accumulated other comprehensive loss | (1,554) | (1,593) |
Retained deficit | (1,963) | (2,069) |
Total Company stockholders' equity | 5,243 | 5,096 |
Noncontrolling interests | 65 | 38 |
Total stockholders’ equity | 5,308 | 5,134 |
Total liabilities and stockholders’ equity | $ 10,177 | $ 10,135 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 393,727,525 | 392,832,752 |
Common stock, shares outstanding | 393,727,525 | 392,832,752 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 1,962 | $ 1,548 |
Cost of revenue | 1,551 | 1,334 |
Gross profit | 411 | 214 |
Selling, general and administrative | 285 | 235 |
Operating profit (loss) | 126 | (21) |
Interest and financial costs | (21) | (19) |
Interest income | 8 | 1 |
Equity income in unconsolidated affiliates | 48 | 6 |
Other expense net | (16) | (2) |
Net income (loss) before income taxes | 145 | (35) |
Provision for income taxes | 20 | 14 |
Net income (loss) | 125 | (49) |
Net income (loss) attributable to noncontrolling interests | (1) | 1 |
Net income (loss) attributable to Company | $ 126 | $ (50) |
Net income (loss) attributable to Company per share: | ||
Basic | $ 0.32 | $ (0.13) |
Diluted | 0.32 | (0.13) |
Cash dividends per share | $ 0.05 | $ 0.05 |
Weighted average shares outstanding: | ||
Basic | 392 | 387 |
Diluted | 396 | 387 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 125 | $ (49) |
Currency translation adjustments | 39 | 22 |
Changes in derivative financial instruments, net of tax | (10) | (8) |
Changes in defined benefit plans, net of tax | 10 | |
Comprehensive income (loss) | 164 | (35) |
Comprehensive income (loss) attributable to noncontrolling interest | (1) | 1 |
Comprehensive income (loss) loss attributable to Company | $ 165 | $ (36) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 125 | $ (49) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 77 | 74 |
Provision for inventory losses | 4 | 24 |
Deferred income taxes | (2) | (3) |
Equity income in unconsolidated affiliates | (48) | (6) |
Other, net | 13 | 54 |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables | (39) | (156) |
Inventories | (221) | (133) |
Contract assets | 48 | 27 |
Prepaid and other current assets | (10) | (11) |
Accounts payable | 53 | 31 |
Accrued liabilities | (201) | 17 |
Contract liabilities | (1) | 12 |
Income taxes payable | (7) | 4 |
Other assets/liabilities, net | 7 | 12 |
Net cash used in operating activities | (202) | (103) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (57) | (46) |
Other | 5 | (3) |
Net cash used in investing activities | (52) | (49) |
Cash flows from financing activities: | ||
Borrowings against lines of credit and other debt | 1 | 1 |
Cash dividends paid | (20) | (20) |
Financing leases | (6) | (6) |
Other | (16) | (11) |
Net cash used in financing activities | (41) | (36) |
Effect of exchange rates on cash | 3 | |
Decrease in cash and cash equivalents | (295) | (185) |
Cash and cash equivalents, beginning of period | 1,069 | 1,591 |
Cash and cash equivalents, end of period | 774 | 1,406 |
Cash payments during the period for: | ||
Interest | 4 | 4 |
Income taxes | $ 20 | $ 11 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Deficit) [Member] | Total Company Stockholders' Equity [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2021 | $ 5,064 | $ 4 | $ 8,685 | $ (1,546) | $ (2,146) | $ 4,997 | $ 67 |
Beginning Balance, Shares at Dec. 31, 2021 | 393 | ||||||
Net income (loss) | (49) | (50) | (50) | 1 | |||
Other comprehensive income (loss), net | 14 | 14 | 14 | ||||
Cash dividends, per common share | (20) | (20) | (20) | ||||
Stock-based compensation | 17 | 17 | 17 | ||||
Withholding taxes | (12) | (12) | (12) | ||||
Other | (4) | (4) | |||||
Ending Balance at Mar. 31, 2022 | 5,010 | $ 4 | 8,690 | (1,532) | (2,216) | 4,946 | 64 |
Ending Balance, Shares at Mar. 31, 2022 | 393 | ||||||
Beginning Balance at Dec. 31, 2022 | 5,134 | $ 4 | 8,754 | (1,593) | (2,069) | 5,096 | 38 |
Beginning Balance, Shares at Dec. 31, 2022 | 393 | ||||||
Net income (loss) | 125 | 126 | 126 | (1) | |||
Other comprehensive income (loss), net | 39 | 39 | 39 | ||||
Cash dividends, per common share | (20) | (20) | (20) | ||||
Transactions with non-controlling interests | 31 | 3 | 3 | 28 | |||
Stock-based compensation | 15 | 15 | 15 | ||||
Common stock issued, shares | 2 | ||||||
Withholding taxes | (17) | (17) | (17) | ||||
Withholding taxes, shares | (1) | ||||||
Other | 1 | 1 | 1 | ||||
Ending Balance at Mar. 31, 2023 | $ 5,308 | $ 4 | $ 8,756 | $ (1,554) | $ (1,963) | $ 5,243 | $ 65 |
Ending Balance, Shares at Mar. 31, 2023 | 394 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Retained Earnings (Deficit) [Member] | ||
Cash dividends, per common share | $ 0.05 | $ 0.05 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited consolidated financial statements of NOV Inc. (“NOV” or the “Company”) present information in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP in the United States for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements included in the Company’s 2022 Annual Report on Form 10-K. Certain reclassifications have been made to prior period financial information in order to conform with current period presentation. In our opinion, the consolidated financial statements include all adjustments, which are of a normal recurring nature unless otherwise disclosed, necessary for a fair presentation of the results for the interim periods. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with GAAP in the United States requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The fair values of cash and cash equivalents, receivables and payables were approximately the same as their presented carrying values because of the short maturities of these instruments. The fair value of long-term debt is provided in Note 9, and the fair values of derivative financial instruments are provided in Note 12. |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 2. Inventories, net Inventories consist of (in millions): March 31, December 31, 2023 2022 Raw materials and supplies $ 513 $ 479 Work in process 323 308 Finished goods and purchased products 1,581 1,404 2,417 2,191 Less: Inventory reserve ( 381 ) ( 378 ) Total $ 2,036 $ 1,813 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 3. Accrued Liabilities Accrued liabilities consist of (in millions): March 31, December 31, 2023 2022 Compensation $ 188 $ 329 Vendor costs 138 168 Taxes (non-income) 75 107 Warranties 71 70 Insurance 40 42 Interest 24 7 Fair value of derivatives 23 13 Commissions 17 18 Other 199 205 Total $ 775 $ 959 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 4. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) are as follows (in millions): Derivative Employee Currency Financial Benefit Translation Instruments, Plans, Adjustments Net of Tax Net of Tax Total Balance at December 31, 2022 $ ( 1,545 ) $ ( 4 ) $ ( 44 ) $ ( 1,593 ) Accumulated other comprehensive income (loss) before 37 ( 12 ) 9 34 Amounts reclassified from accumulated other comprehensive 2 2 1 5 Balance at March 31, 2023 $ ( 1,506 ) $ ( 14 ) $ ( 34 ) $ ( 1,554 ) The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): Three Months Ended March 31, 2023 2022 Derivative Currency Employee Derivative Employee Financial Translation Benefit Financial Benefit Instruments Adjustments Plans Total Instruments Plans Total Revenue $ 1 $ — $ — $ 1 $ — $ — $ — Cost of revenue 1 — — 1 ( 7 ) — ( 7 ) Other expense — 2 — 2 — — — Selling, general and administrative — — 1 1 — — — Tax effect — — — — 1 — 1 $ 2 $ 2 $ 1 $ 5 $ ( 6 ) $ — $ ( 6 ) The Company’s reporting currency is the U.S. dollar. A majority of the Company’s international entities in which there is a substantial investment have the local currency as their functional currency. As a result, currency translation adjustments resulting from the process of translating the entities’ financial statements into the reporting currency are reported in other comprehensive income (loss). The effect of changes in the fair values of derivatives designated as cash flow hedges are accumulated in other comprehensive income (loss), net of tax, until the underlying transactions are realized. The movement in other comprehensive income (loss) from period to period will be the combination of: 1) changes in fair value of open derivatives of $( 12 ) million during the three months ended March 31, 2023 ; and, 2) the outflow of other comprehensive loss related to cumulative changes in the fair value of derivatives that have settled in the current period were $ 2 million during the three months ended March 31, 2023 . |
Segments
Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments | 5. Segments Financial results by operating segment are as follows (in millions): Three Months Ended March 31, 2023 2022 Revenue: Wellbore Technologies $ 745 $ 608 Completion & Production Solutions 718 530 Rig Technologies 550 441 Eliminations ( 51 ) ( 31 ) Total revenue $ 1,962 $ 1,548 Operating profit (loss): Wellbore Technologies $ 96 $ 39 Completion & Production Solutions 44 ( 22 ) Rig Technologies 53 11 Eliminations and corporate costs ( 67 ) ( 49 ) Total operating profit (loss) $ 126 $ ( 21 ) Sales from one segment to another generally are priced at estimated equivalent commercial selling prices; however, segments originating an external sale are credited with the full profit to the Company. Eliminations include intercompany transactions conducted between the three reporting segments that are eliminated in consolidation. Intrasegment transactions are eliminated within each segment. |
Impairment and Other Items
Impairment and Other Items | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment and Other Items | 6. Impairment and Other Items Beginning February 2022, as a result of armed conflict in Ukraine, governments in the European Union, the United States, the United Kingdom, Switzerland, and other countries have enacted sanctions against Russia and Russian interests. Among other things, these sanctions include controls on the export, re-export, and in-country transfer in Russia of certain goods, supplies, and technologies, including some that we use in our business in Russia. They also impose restrictions on doing business with specially designated nationals, including certain state-owned Russian customers, certain financial institutions and certain individuals and restrict or prohibit new investments and business activities in Russia. As previously disclosed, in response to these sanctions, the Company ceased new investments and curtailed our activities in Russia. Further, during the third quarter of 2022, the Company sold its business in Belarus and committed to a plan to sell its businesses in Russia. The sale is subject to government approval under Russian law. As a result of these actions, we recorded $ 41 million in impairment and other charges within costs of revenue in the first quarter of 2022. As of March 31, 2023, all our Russian assets and liabilities were classified as held for sale and reported in “Prepaid and Other Current Assets” and “Accrued Liabilities”, respectively, in our Consolidated Balance Sheet. We expect to complete the sale of our Russian entities within the next 12 months, subject to regulatory approval. Total other items included in operating profit for the three months ended March 31, 2023, were a pre-tax credit of $ 4 million primarily related to gains on sales of previously reserved inventory. Total other items included in operating profit for the three months ended March 31, 2022, were pre-tax charges for severance, facility closures, and other items of $( 45 ) million. Other items in the first quarter of 2022 included impairment and other charges associated with the Company's operations in Russia, Belarus, and Ukraine discussed above. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 7. Revenue Disaggregation of Revenue The following table disaggregates the Company’s revenue by major geographic and market segment destination. In the table, North America includes the U.S. and Canada (in millions): Three Months Ended March 31, 2023 2022 Completion Completion Wellbore & Production Rig Wellbore & Production Rig Technologies Solutions Technologies Elims. Total Technologies Solutions Technologies Elims. Total North America $ 383 $ 327 $ 104 $ — $ 814 $ 306 $ 213 $ 88 $ — $ 607 International 343 372 433 — 1,148 290 308 343 — 941 Eliminations 19 19 13 ( 51 ) — 12 9 10 ( 31 ) — $ 745 $ 718 $ 550 $ ( 51 ) $ 1,962 $ 608 $ 530 $ 441 $ ( 31 ) $ 1,548 Land $ 553 $ 438 $ 191 $ — $ 1,182 $ 434 $ 322 $ 123 $ — $ 879 Offshore 173 261 346 — 780 162 199 308 — 669 Eliminations 19 19 13 ( 51 ) — 12 9 10 ( 31 ) — $ 745 $ 718 $ 550 $ ( 51 ) $ 1,962 $ 608 $ 530 $ 441 $ ( 31 ) $ 1,548 Performance Obligations Net revenue recognized from performance obligations satisfied in previous periods was $ 13 million for the three months ended March 31, 2023 primarily due to change orders. Remaining performance obligations represent the transaction price of firm orders for all revenue streams for which work has not been performed on contracts with original expected duration of one year or more. We do not disclose the remaining performance obligations of royalty contracts, service contracts for which there is a right to invoice, and short-term contracts that are expected to have a duration of one year or less. As of March 31, 2023 , the aggregate amount of the transaction price allocated to remaining performance obligations was $ 4,224 million. The Company expects to recognize approximately $ 1,083 million in revenue for the remaining performance obligations in 2023 and $ 3,141 million in 2024 and thereafter. Contract Assets and Liabilities Contract assets include unbilled amounts when revenue recognized exceeds the amount billed to the customer under contracts where revenue is recognized over time. Contract liabilities consist of customer billings in excess of revenue recognized under over-time contracts, customer advance payments and deferred revenue. The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions): Contract Contract Balance at December 31, 2022 $ 685 $ 444 Provision — — Billings ( 378 ) 273 Revenue recognized 317 ( 273 ) Currency translation adjustments and other 13 5 Balance at March 31, 2023 $ 637 $ 449 Allowance for Credit Losses The Company estimates its allowance for credit losses using information about past events, current conditions and risk characteristics of each customer, and reasonable and supportable forecasts relevant to assessing risk associated with the collectability of receivables and contract assets. The Company’s customer base, mostly in the oil and gas industry, have generally similar collectability risk characteristics, although larger and state-owned customers may have lower risk than smaller independent customers. As of March 31, 2023, the allowance for credit losses totaled $ 71 million. Balance at December 31, 2022 $ 71 Provision for expected credit losses 9 Recoveries collected ( 6 ) Other ( 3 ) Balance at March 31, 2023 $ 71 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 8. Leases The Company leases certain facilities and equipment to support its operations around the world. These leases generally require the Company to pay maintenance, insurance, taxes and other operating costs in addition to rent. Renewal options are common in longer term leases; however, it is rare that the Company initially intends that a lease option will be exercised due to the cyclical nature of the Company’s business. Residual value guarantees are not typically part of the Company’s leases. Occasionally, the Company sub-leases excess facility space, generally at terms similar to the source lease. The Company reviews agreements at inception to determine if they include a lease and, when they do, uses its incremental borrowing rate to determine the present value of the future lease payments as most do not include implicit interest rates. Components of leases are as follows (in millions): March 31, December 31, 2023 2022 Current portion of lease liabilities: Operating $ 68 $ 67 Financing 21 20 Total $ 89 $ 87 March 31, December 31, 2023 2022 Long-term portion of lease liabilities: Operating $ 341 $ 334 Financing 215 $ 215 Total $ 556 $ 549 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Debt consists of (in millions): March 31, December 31, 2023 2022 $ 1.1 billion in Senior Notes, interest at 3.95 % payable December 1, 2042 $ 1,090 $ 1,090 $ 0.5 billion in Senior Notes, interest at 3.60 % payable December 1, 2029 495 495 Other debt 147 145 Total Debt 1,732 1,730 Less current portion 13 13 Long-term debt $ 1,719 $ 1,717 The Company has a revolving credit facility with a borrowing capacity of $ 2.0 billion through October 30, 2024, and a borrowing capacity of $ 1.7 billion from October 31, 2024 to October 30, 2025. The Company has the right to increase the commitments under this agreement to an aggregate amount of up to $ 3.0 billion upon the consent of only those lenders holding any such increase. Interest under the multicurrency facility is based upon Secured Overnight Financing Rate (SOFR), NIBOR or CDOR plus 1.25 % subject to a ratings-based grid or the U.S. prime rate. The credit facility contains a financial covenant regarding maximum debt-to-capitalization ratio of 60 %. As of March 31, 2023 , the Company was in compliance with a debt-to-capitalization ratio of 27.0 % and had no outstanding borrowings or letters of credit issued under the facility, resulting in $ 2.0 billion of available funds. Additionally, a consolidated joint venture of the Company borrowed $ 120 million against a $ 150 million bank line of credit for the construction of a facility in Saudi Arabia. Interest under the bank line of credit is based upon SOFR plus 1.40 %. The bank line of credit contains a financial covenant regarding maximum debt-to-equity ratio of 75 %. As of March 31, 2023 , the joint venture was in compliance. The facility construction was completed in the fourth quarter of 2022, and the joint venture will not have future borrowings on the line of credit. The line of credit repayment schedule began in December 2022 with final payment no later than June 2032 . As of March 31, 2023, the Company has a carrying value of $ 114 million in borrowings related to this line of credit. The carrying value of debt under the Company’s consolidated joint venture approximates fair value because the interest rates are variable and reflective of current market rates. The Company has $ 10 million in payments related to this line of credit due in the next twelve months. The Company can repay the entire outstanding facility balance without penalty at its sole discretion. Other debt at March 31, 2023 included $ 32 million of funding provided by minority interest partners of NOV consolidated joint ventures, of which $ 3 million is due in the next twelve months. The Company had $ 464 million of outstanding letters of credit at March 31, 2023, primarily in the U.S. and Norway, that are under various bilateral letter of credit facilities. Letters of credit are issued as bid bonds, advanced payment bonds and performance bonds. At March 31, 2023 and December 31, 2022, the fair value of the Company’s unsecured Senior Notes approximated $ 1,272 million and $ 1,215 million, respectively. The fair value of the Company’s debt is estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those of similar instruments. At March 31, 2023 and December 31, 2022, the carrying value of the Company’s unsecured Senior Notes approximated $ 1,585 million. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The effective tax rate for the three months ended March 31, 2023 was 13.8 %, compared to ( 39.3 )% for the same period in 2022. The effective tax rate for 2023 was positively impacted by the utilization of previously unrealized loss carryforwards and tax credits as well as favorable adjustments related to changes in certain exchange rates, partially offset by current year losses in certain jurisdictions with no tax benefit. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation The Company’s stock-based compensation plan, known as the NOV Inc. Long-Term Incentive Plan (the “NOV Plan”), was approved by shareholders on May 11, 2018 and amended and restated on May 24, 2022. The NOV Plan provides for the granting of stock options, restricted stock, restricted stock units, performance awards, phantom shares, stock appreciation rights, stock payments and substitute awards. The number of shares authorized under the NOV Plan is 55.7 million. The NOV Plan is also subject to a fungible ratio concept, such that the issuance of stock options and stock appreciation rights reduces the number of available shares under the NOV Plan on a 1-for-1 basis, and the issuance of other awards reduces the number of available shares under the NOV Plan on a 1.5-for-1 basis. At March 31, 2023 , approximately 12.8 million shares remained available for future grants under the NOV Plan. The Company also has outstanding awards under its other stock-based compensation plan known as the National Oilwell Varco, Inc. Long-Term Incentive Plan (the “Plan”), however the Company is no longer granting new awards under the Plan. On February 23, 2023, under the NOV Plan, the Company granted 1,014,002 stock options with a fair value of $ 9.75 per option and an exercise price of $ 21.76 per share; 2,228,226 restricted stock units with a fair value of $ 21.76 per share; and performance share awards (PSAs) to senior management employees with potential payouts varying from zero to 960,478 shares. The stock options vest over a three-year period from the grant date. The restricted stock units vest in three equal annual installments commencing on the first anniversary of the grant date. The 2023 PSAs can be earned based on performance against two established goals over a three-year period : 85 % with a TSR (total shareholder return) goal and 15 % with an internal NVA (“NOV Value Added”, a return on capital metric) goal. TSR performance is determined by comparing the Company’s TSR with the TSR of the members of the Philadelphia Stock Exchange’s Oil Services Sector Index (OSX) for the three-year performance period. The TSR portion of the performance share awards is subject to a vesting cap equal to 100% of Target Level if the Company’s absolute TSR is negative, regardless of relative TSR results. Conversely, if the Company’s absolute TSR is greater than 15% annualized over the three-year performance period the payout amount shall not be less than 50% of Target Level, regardless of relative TSR results. The NVA goal is based on the Company’s improvement in NVA from the beginning of the performance period until the end of the performance period. NVA is calculated as an amount equal to the Company’s (a) gross cash earnings less (b) average gross operating assets times an amount equal to a required return on assets, with certain adjustments. Total expense for all stock-based compensation arrangements was $ 15 million and $ 16 million for the three months ended March 31, 2023 and 2022, respectively. There was no income tax benefit recognized in the Consolidated Statements of Income (Loss) for stock-based compensation arrangements under the NOV Plan for each of the three months ended March 31, 2023 and 2022 . |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 12. Derivative Financial Instruments The Company uses forward currency contracts to manage the foreign currency exchange rate risk on forecasted revenues and expenses denominated in currencies other than the functional currency of the operating unit (cash flow hedge). The Company also executes forward currency contracts to manage the foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts (non-designated hedge). The fair values of these derivative financial instruments are determined using level 2 inputs (inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability) in the fair value hierarchy as the fair value is based on publicly available foreign exchange and interest rates at each financial reporting date. Forward currency contracts consist of (in millions): Currency Denomination March 31, December 31, Foreign Currency 2023 2022 South Korean Won KRW 21,765 KRW 65,980 Norwegian Krone NOK 2,486 NOK 2,741 U.S. Dollar USD 649 USD 655 Japanese Yen JPY 460 JPY 460 Brazilian Real BRL 291 BRL 291 Euro EUR 107 EUR 125 South African Rand ZAR 30 ZAR 149 Singapore Dollar SGD 27 SGD 27 British Pound Sterling GBP 17 GBP 16 Danish Krone DKK 15 DKK 13 Canadian Dollar CAD 2 CAD 2 Mexican Peso MXN — MXN 160 Cash Flow Hedging Strategy To protect against the volatility of forecasted foreign currency cash flows resulting from forecasted revenues and expenses, the Company instituted a cash flow hedging program. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is recorded in accumulated other comprehensive income (loss) and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in “revenues” when the hedged transactions are cash flows associated with forecasted revenues). The Company includes time value in hedge relationships. The Company expects $ 11 million of the accumulated other comprehensive loss will be reclassified into earnings within the next twelve months. Non-designated Hedging Strategy The Company enters into forward exchange contracts to hedge certain nonfunctional currency monetary accounts. The gain or loss on the derivative instrument is recognized in earnings in other income (expense), together with the changes in the hedged nonfunctional monetary accounts. The amount of gain (loss) recognized in other income (expense), net was $( 5 ) million for the three months ended March 31, 2023 , and $( 3 ) million for the three months ended March 31, 2022, respectively. The Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions): Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet March 31, December 31, Balance Sheet March 31, December 31, Location 2023 2022 Location 2023 2022 Derivatives designated as hedging instruments Foreign exchange contracts Prepaid and other $ 2 $ 3 Accrued liabilities $ 14 $ 3 Foreign exchange contracts Other Assets — — Other liabilities 3 1 Total derivatives designated as hedging instruments $ 2 $ 3 $ 17 $ 4 Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid and other $ 3 $ 5 Accrued liabilities $ 9 $ 10 Total derivatives $ 5 $ 8 $ 26 $ 14 |
Net Income (Loss) Attributable
Net Income (Loss) Attributable to Company Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Attributable to Company Per Share | 13. Net Income (Loss) Attributable to Company Per Share The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): Three Months Ended March 31, 2023 2022 Numerator: Net income (loss) attributable to Company $ 126 $ ( 50 ) Denominator: Basic—weighted average common shares outstanding 392 387 Dilutive effect of employee stock options and other 4 — Diluted outstanding shares 396 387 Net income (loss) attributable to Company per share: Basic $ 0.32 $ ( 0.13 ) Diluted $ 0.32 $ ( 0.13 ) Cash dividends per share $ 0.05 $ 0.05 Companies with unvested participating securities are required to utilize a two-class method for the computation of net income attributable to Company per share. The two-class method requires a portion of net income attributable to Company to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents if declared. Net income (loss) attributable to the Company allocated to these participating securities was immaterial for each of the three months ended March 31, 2023 and 2022 , respectively. The Company had stock options outstanding that were anti-dilutive totaling 16 million and 22 million shares for the three months ended March 31, 2023 and 2022 , respectively. |
Cash Dividends
Cash Dividends | 3 Months Ended |
Mar. 31, 2023 | |
Dividends [Abstract] | |
Cash Dividends | 14. Cash Dividends Cash dividends were $ 20 million for both the three months ended March 31, 2023 and March 31, 2022 . The declaration and payment of future dividends is at the discretion of the Company’s Board of Directors and will be dependent upon the Company’s results of operations, financial condition, capital requirements and other factors deemed relevant by the Company’s Board of Directors. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Our business is governed by laws and regulations, including those directed to the oilfield service industry, promulgated by U.S. federal and state governments and regulatory agencies, as well as international governmental authorities in the many countries in which we conduct business. In the United States these governmental authorities include: the U.S. Department of Labor, the Occupational Safety and Health Administration, the Environmental Protection Agency, the Bureau of Land Management, the Department of Treasury, Office of Foreign Asset Controls, state environmental agencies and many others. We are unaware of any material liabilities in connection with our compliance with such laws. New laws, investigations, regulations and enforcement policies may result in additional, presently unquantifiable, or unknown, costs or liabilities. From time to time, the Company is involved in various claims, regulatory agency audits, investigations and legal actions involving a variety of matters. The Company maintains insurance that covers claims such as third-party personal injuries or property damage arising from risks associated with the business activities of the Company, such as premises liability, product liability, personal injury, marine risk, property damage, and other such insurable losses. The Company carries substantial insurance to cover insurable risks above a self-insured retention. The Company believes, and the Company’s experience has been, that such insurance has been sufficient to cover any such material risks. The Company is also a party to claims, threatened and actual litigation, arbitration, internal investigations of potential regulatory and compliance matters which arise both from legacy businesses that the Company has acquired over many years and from the Company’s current ordinary day-to-day business activities. These regulatory matters and disputes involve private parties and/or government authorities, which assert claims against the Company for a broad spectrum of potential claims including: employment law claims, collective actions or class action claims under employment laws, intellectual property claims, (such as alleged patent infringement, and/or misappropriation of trade secrets by the company), premises liability claims, environmental claims, product liability claims, warranty claims, personal injury claims arising from exposure to or use of allegedly defective products, alleged regulatory violations, alleged violations of anti-corruption and anti-bribery laws and other commercial and/or regulatory claims seeking recovery for alleged actual or exemplary damages or fines and penalties. Such claims involve various theories of liability which include: negligence, breach of contract, strict liability, product liability, and other theories of liability. For some of these contingent claims and potential liabilities, the Company’s insurance coverage may not apply, exclusions to coverage may apply or legal impediments may apply. In such instances, settlement or other resolution of such claims, individually or collectively, could have a material financial or reputational impact on the Company. As of March 31, 2023, the Company recorded reserves in an amount believed to be sufficient, given the range of potential outcomes, for contingent liabilities representing all contingencies believed to be probable. These reserves include costs currently and reasonably estimated to be incurred for reclamation of a closed barite mine and product liability claims, as well as other circumstances involving material claims. The Company has assessed the potential for additional losses above the amounts accrued as well as potential losses for matters that are believed to be not probable, but are reasonably possible. The Company sets accruals in accordance with GAAP based on its best judgment about the probable results of disputed claims, regulatory enforcement actions, tax and other governmental audits, and other contingencies. The litigation process as well as the outcome of regulatory oversight is inherently uncertain, and our best judgment concerning the probable outcome of litigation or regulatory enforcement matters may prove to be incorrect. No assurance can be given as to the outcome of these matters. The total potential loss on these matters cannot be determined; however, in our opinion, any ultimate liability, to the extent not otherwise provided for, will not materially affect our financial position, cash flow or results of operations. These estimated liabilities are based on the Company’s assessment of the nature of these matters, their progress toward resolution, the advice of legal counsel and outside experts as well as management’s experience. Because of uncertainty and risk inherent to litigation, arbitration, audits, governmental investigations, enforcement actions, and similar matters, the Company’s actual liabilities incurred may materially exceed our estimated liabilities and reserves, which could have a material financial or reputational impact on the Company. In 2022, the Company received and paid a $ 51 million transfer pricing tax assessment in Denmark. The Company and its advisors believe the assessment is without merit. The Company is presently appealing and believes it will be reimbursed following a successful appeals process. The payment has been recorded as a long-term receivable. In many instances, the Company’s products and services embody or incorporate trade secrets or patented inventions. From time to time, we are engaged i n disputes concerning protection of the Company’s trade secrets and confidential information, patents, and other intellectual property rights. Such disputes frequently involve complex, factual, technical and/or legal issues which result in high costs to adjudicate our rights and for which it may be difficult to predict the ultimate outcome. At any given time, the Company may be a plaintiff or defendant in disputes involving disputed intellectual property rights. The Company is currently pursuing, and intends to pursue future claims involving revenue recognized for technology related to drill bits. The Company is suing for breach of certain license in agreements pursuant to which certain drill bit manufacturers have licensed the Company’s intellectual property. The amount of the Company's claims for outstanding receivables approximates $ 40 million dollars, and is likely to increase over time until we achieve resolution of such claims. Because of the importance of the Company’s intellectual property to the Company’s performance, an adverse result in such disputes could result in a material loss of revenue from royalties or a decline in sales of products protected by patents, which could materially and adversely impact our financial performance. Further, in some instances, direct or indirect consumers of our products and services or members of the supply chain for our products and services become involved in governmental investigations, internal investigations, political or other enforcement matters. In such circumstances, such investigations may adversely impact the ability of consumers of our products, entities providing financial support to such consumers or entities in the supply chain to timely perform their business plans or to timely perform under agreements with us. We may, from time to time, become involved in these investigations, at substantial cost to the Company. We also are subject to trade regulations, supply chain regulations, and other regulatory compliance in which the laws and regulations of different jurisdictions conflict or these regulations may conflict with contractual terms. In such circumstances, our compliance with U.S. laws and regulations may subject us to risk of fines, penalties, or contractual liability in other jurisdictions. Our efforts to actively manage such risks may not always be successful which could lead to negative impacts on revenue or earnings. The Company is exposed to customs and trade regulation risk in the countries in which we do business and countries from which or to which we import or export goods. Such trade regulations can be complex and conflicting, as different countries use trade regulation to promote conflicting policy objectives. Compliance with these laws and regulations present challenges which could result in future liabilities (for example, when laws conflict between countries). The Company may face increased tariffs and trade costs, loss of revenue, loss of customers, fines, penalties, increased costs, the need for renegotiation of agreements, and other business disruptions. In addition, trade regulations, export controls, and other laws adversely impact our ability to do business in certain countries, e.g., Iran, Syria, Russia, China and Venezuela. In response to additional sanctions enacted by governments in the European Union, the United States, the United Kingdom, Switzerland, and other countries as a result of active armed conflict in Ukraine, we ceased new investments in Russia and have curtailed our activities in Russia. During the third quarter of 2022, we sold our business in Belarus and committed to a plan to sell our business in Russia. The sale is subject to various government approvals in Russia and other jurisdictions. Litigation may result from the confluence of these events in Russia and Belarus and our response to the various sanctions as we work to comply with applicable laws and regulations. We also may incur severance costs as a result of conditions in Russia if we are unable to obtain the required government approvals. Lingering supply chain disruptions arising from the COVID-19 pandemic continue to adversely impact normal economic and manufacturing related activities. The Company’s ability to manufacture equipment and perform services could be impaired from such disruptions and the Company could be exposed to liabilities resulting from additional interruption or delay in its ability to perform due to materials shortages, inflationary pressures, and limited manpower. While the overall situation related to COVID-19 has improved, the Company continues to see operational delays resulting from the limited availability of materials and work force, the lack of predictability around vendor delivery dates and other operational disruptions. We may face loss of workers, labor shortages, litigation, fines and/or other adverse consequences resulting from other pandemic related labor impacts and COVID-19 regulations. The combined impact of supply chain and labor market disruptions along with the inflationary impacts of pandemic monetary and regulatory policies could have material adverse impacts on our financial results. Disputes may arise regarding application of force majeure contract provisions and allocation of responsibility among customers, the Company, and suppliers, resulting in material added cost and/or litigation. Our customers may attempt to cancel or delay projects, cancel contracts, or may invoke force majeure clauses. Our customers may also seek to delay or may default on their payments to us. As a result, the Company may be exposed to additional costs, liabilities and risks which could materially, adversely impact our financial performance and results. These potential operational and service delays could result in contractual or other legal claims from our customers. At this time, it is not possible to quantify all these risks, but the combination of these factors could have a material impact on our financial results. Due to market conditions and ongoing concerns about the energy transition, demand for our products and services may decline. Legal restrictions on exploration and production may impede our customer’s ability to do business in certain jurisdictions. The political environment may adversely impact demand for hydrocarbons in different jurisdictions or globally. The demand for energy may be constrained with adverse consequences for our customers and for the company. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 16. New Accounting Pronouncements Recently Issued Accounting Standards In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848).” Topic 848, as amended, applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024. During the first quarter of 2023 , the Company adopted the optional relief guidance provided under Topic 848 after modifying certain debt and derivative instruments to update the reference rate from LIBOR to SOFR. The adoption of this optional relief did no t have a material impact on the consolidated financial statements. The Company is currently assessing the impact of other optional elections allowed under Topic 848 and their impact on the company’s financial position, results of operations and cash flows. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Fair Value of Financial Instruments | The fair values of cash and cash equivalents, receivables and payables were approximately the same as their presented carrying values because of the short maturities of these instruments. The fair value of long-term debt is provided in Note 9, and the fair values of derivative financial instruments are provided in Note 12. |
Net Income (Loss) Attributable to Company Per Share | Companies with unvested participating securities are required to utilize a two-class method for the computation of net income attributable to Company per share. The two-class method requires a portion of net income attributable to Company to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents if declared. Net income (loss) attributable to the Company allocated to these participating securities was immaterial for each of the three months ended March 31, 2023 and 2022 , respectively. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848).” Topic 848, as amended, applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024. During the first quarter of 2023 , the Company adopted the optional relief guidance provided under Topic 848 after modifying certain debt and derivative instruments to update the reference rate from LIBOR to SOFR. The adoption of this optional relief did no t have a material impact on the consolidated financial statements. The Company is currently assessing the impact of other optional elections allowed under Topic 848 and their impact on the company’s financial position, results of operations and cash flows. |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of (in millions): March 31, December 31, 2023 2022 Raw materials and supplies $ 513 $ 479 Work in process 323 308 Finished goods and purchased products 1,581 1,404 2,417 2,191 Less: Inventory reserve ( 381 ) ( 378 ) Total $ 2,036 $ 1,813 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of (in millions): March 31, December 31, 2023 2022 Compensation $ 188 $ 329 Vendor costs 138 168 Taxes (non-income) 75 107 Warranties 71 70 Insurance 40 42 Interest 24 7 Fair value of derivatives 23 13 Commissions 17 18 Other 199 205 Total $ 775 $ 959 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are as follows (in millions): Derivative Employee Currency Financial Benefit Translation Instruments, Plans, Adjustments Net of Tax Net of Tax Total Balance at December 31, 2022 $ ( 1,545 ) $ ( 4 ) $ ( 44 ) $ ( 1,593 ) Accumulated other comprehensive income (loss) before 37 ( 12 ) 9 34 Amounts reclassified from accumulated other comprehensive 2 2 1 5 Balance at March 31, 2023 $ ( 1,506 ) $ ( 14 ) $ ( 34 ) $ ( 1,554 ) |
Components of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | The components of amounts reclassified from accumulated other comprehensive income (loss) are as follows (in millions): Three Months Ended March 31, 2023 2022 Derivative Currency Employee Derivative Employee Financial Translation Benefit Financial Benefit Instruments Adjustments Plans Total Instruments Plans Total Revenue $ 1 $ — $ — $ 1 $ — $ — $ — Cost of revenue 1 — — 1 ( 7 ) — ( 7 ) Other expense — 2 — 2 — — — Selling, general and administrative — — 1 1 — — — Tax effect — — — — 1 — 1 $ 2 $ 2 $ 1 $ 5 $ ( 6 ) $ — $ ( 6 ) |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Operating Segments | Financial results by operating segment are as follows (in millions): Three Months Ended March 31, 2023 2022 Revenue: Wellbore Technologies $ 745 $ 608 Completion & Production Solutions 718 530 Rig Technologies 550 441 Eliminations ( 51 ) ( 31 ) Total revenue $ 1,962 $ 1,548 Operating profit (loss): Wellbore Technologies $ 96 $ 39 Completion & Production Solutions 44 ( 22 ) Rig Technologies 53 11 Eliminations and corporate costs ( 67 ) ( 49 ) Total operating profit (loss) $ 126 $ ( 21 ) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregate Revenue by Destinations | The following table disaggregates the Company’s revenue by major geographic and market segment destination. In the table, North America includes the U.S. and Canada (in millions): Three Months Ended March 31, 2023 2022 Completion Completion Wellbore & Production Rig Wellbore & Production Rig Technologies Solutions Technologies Elims. Total Technologies Solutions Technologies Elims. Total North America $ 383 $ 327 $ 104 $ — $ 814 $ 306 $ 213 $ 88 $ — $ 607 International 343 372 433 — 1,148 290 308 343 — 941 Eliminations 19 19 13 ( 51 ) — 12 9 10 ( 31 ) — $ 745 $ 718 $ 550 $ ( 51 ) $ 1,962 $ 608 $ 530 $ 441 $ ( 31 ) $ 1,548 Land $ 553 $ 438 $ 191 $ — $ 1,182 $ 434 $ 322 $ 123 $ — $ 879 Offshore 173 261 346 — 780 162 199 308 — 669 Eliminations 19 19 13 ( 51 ) — 12 9 10 ( 31 ) — $ 745 $ 718 $ 550 $ ( 51 ) $ 1,962 $ 608 $ 530 $ 441 $ ( 31 ) $ 1,548 |
Summary of Changes in Carrying Amount of Contract Assets and Contract Liabilities | The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions): Contract Contract Balance at December 31, 2022 $ 685 $ 444 Provision — — Billings ( 378 ) 273 Revenue recognized 317 ( 273 ) Currency translation adjustments and other 13 5 Balance at March 31, 2023 $ 637 $ 449 |
Summary of Allowance for Credit Losses | As of March 31, 2023, the allowance for credit losses totaled $ 71 million. Balance at December 31, 2022 $ 71 Provision for expected credit losses 9 Recoveries collected ( 6 ) Other ( 3 ) Balance at March 31, 2023 $ 71 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Leases | Components of leases are as follows (in millions): March 31, December 31, 2023 2022 Current portion of lease liabilities: Operating $ 68 $ 67 Financing 21 20 Total $ 89 $ 87 March 31, December 31, 2023 2022 Long-term portion of lease liabilities: Operating $ 341 $ 334 Financing 215 $ 215 Total $ 556 $ 549 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt consists of (in millions): March 31, December 31, 2023 2022 $ 1.1 billion in Senior Notes, interest at 3.95 % payable December 1, 2042 $ 1,090 $ 1,090 $ 0.5 billion in Senior Notes, interest at 3.60 % payable December 1, 2029 495 495 Other debt 147 145 Total Debt 1,732 1,730 Less current portion 13 13 Long-term debt $ 1,719 $ 1,717 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Foreign Currency Forward Contracts | Forward currency contracts consist of (in millions): Currency Denomination March 31, December 31, Foreign Currency 2023 2022 South Korean Won KRW 21,765 KRW 65,980 Norwegian Krone NOK 2,486 NOK 2,741 U.S. Dollar USD 649 USD 655 Japanese Yen JPY 460 JPY 460 Brazilian Real BRL 291 BRL 291 Euro EUR 107 EUR 125 South African Rand ZAR 30 ZAR 149 Singapore Dollar SGD 27 SGD 27 British Pound Sterling GBP 17 GBP 16 Danish Krone DKK 15 DKK 13 Canadian Dollar CAD 2 CAD 2 Mexican Peso MXN — MXN 160 |
Derivative Instruments and their Balance Sheet Classifications | The Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions): Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet March 31, December 31, Balance Sheet March 31, December 31, Location 2023 2022 Location 2023 2022 Derivatives designated as hedging instruments Foreign exchange contracts Prepaid and other $ 2 $ 3 Accrued liabilities $ 14 $ 3 Foreign exchange contracts Other Assets — — Other liabilities 3 1 Total derivatives designated as hedging instruments $ 2 $ 3 $ 17 $ 4 Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid and other $ 3 $ 5 Accrued liabilities $ 9 $ 10 Total derivatives $ 5 $ 8 $ 26 $ 14 |
Net Income (Loss) Attributabl_2
Net Income (Loss) Attributable to Company Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Weighted Average Basic and Diluted Shares Outstanding | The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): Three Months Ended March 31, 2023 2022 Numerator: Net income (loss) attributable to Company $ 126 $ ( 50 ) Denominator: Basic—weighted average common shares outstanding 392 387 Dilutive effect of employee stock options and other 4 — Diluted outstanding shares 396 387 Net income (loss) attributable to Company per share: Basic $ 0.32 $ ( 0.13 ) Diluted $ 0.32 $ ( 0.13 ) Cash dividends per share $ 0.05 $ 0.05 |
Inventories, net - Inventories
Inventories, net - Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 513 | $ 479 |
Work in process | 323 | 308 |
Finished goods and purchased products | 1,581 | 1,404 |
Inventory, Gross | 2,417 | 2,191 |
Less: Inventory reserve | (381) | (378) |
Total | $ 2,036 | $ 1,813 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Compensation | $ 188 | $ 329 |
Vendor costs | 138 | 168 |
Taxes (non-income) | 75 | 107 |
Warranties | 71 | 70 |
Insurance | 40 | 42 |
Interest | 24 | 7 |
Fair value of derivatives | 23 | 13 |
Commissions | 17 | 18 |
Other | 199 | 205 |
Total | $ 775 | $ 959 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | $ 5,134 |
Ending Balance | 5,308 |
Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (1,545) |
Accumulated other comprehensive income (loss) before reclassifications | 37 |
Amounts reclassified from accumulated other comprehensive income | 2 |
Ending Balance | (1,506) |
Derivative Financial Instruments, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (4) |
Accumulated other comprehensive income (loss) before reclassifications | (12) |
Amounts reclassified from accumulated other comprehensive income | 2 |
Ending Balance | (14) |
Employee Benefit Plans, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (44) |
Accumulated other comprehensive income (loss) before reclassifications | 9 |
Amounts reclassified from accumulated other comprehensive income | 1 |
Ending Balance | (34) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (1,593) |
Accumulated other comprehensive income (loss) before reclassifications | 34 |
Amounts reclassified from accumulated other comprehensive income | 5 |
Ending Balance | $ (1,554) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Components of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | $ 1,962 | $ 1,548 |
Selling, general and administrative | 285 | 235 |
Tax effect | (20) | (14) |
Net income (loss) attributable to Company | 126 | (50) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 1 | |
Cost of revenue | 1 | (7) |
Other expense | 2 | |
Selling, general and administrative | 1 | |
Tax effect | 1 | |
Net income (loss) attributable to Company | 5 | (6) |
Currency Translation Adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other expense | 2 | |
Net income (loss) attributable to Company | 2 | |
Derivative Financial Instruments, Net of Tax [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue | 1 | |
Cost of revenue | 1 | (7) |
Tax effect | 1 | |
Net income (loss) attributable to Company | 2 | $ (6) |
Employee Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Selling, general and administrative | 1 | |
Net income (loss) attributable to Company | $ 1 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Changes in fair value of open derivatives | $ (12) |
Cumulative changes in the fair value of derivatives | $ 2 |
Segments - Operating Segments (
Segments - Operating Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 1,962 | $ 1,548 |
Total operating profit (loss) | 126 | (21) |
Operating Segments [Member] | Wellbore Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 745 | 608 |
Total operating profit (loss) | 96 | 39 |
Operating Segments [Member] | Completion & Production Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 718 | 530 |
Total operating profit (loss) | 44 | (22) |
Operating Segments [Member] | Rig Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 550 | 441 |
Total operating profit (loss) | 53 | 11 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | (51) | (31) |
Total operating profit (loss) | $ (67) | $ (49) |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
Impairment and Other Items - Ad
Impairment and Other Items - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cost of Revenue [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other asset impairment charges | $ 41 | |
Gains On Sales Of Previously Reserved Inventory [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges/ (reversals) | $ (4) | |
Severance, Facility Closures And Other Items [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges/ (reversals) | $ (45) |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregate Revenue by Destinations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | $ 1,962 | $ 1,548 |
Operating Segments [Member] | Wellbore Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 745 | 608 |
Operating Segments [Member] | Completion & Production Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 718 | 530 |
Operating Segments [Member] | Rig Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 550 | 441 |
Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | (51) | (31) |
Continental [Member] | Eliminations [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 19 | 12 |
Continental [Member] | Eliminations [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 19 | 9 |
Continental [Member] | Eliminations [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 13 | 10 |
Continental [Member] | Eliminations [Member] | Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | (51) | (31) |
Continental [Member] | North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 814 | 607 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 383 | 306 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 327 | 213 |
Continental [Member] | North America [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 104 | 88 |
Continental [Member] | International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 1,148 | 941 |
Continental [Member] | International [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 343 | 290 |
Continental [Member] | International [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 372 | 308 |
Continental [Member] | International [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 433 | 343 |
Land and Offshore [Member] | Eliminations [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 19 | 12 |
Land and Offshore [Member] | Eliminations [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 19 | 9 |
Land and Offshore [Member] | Eliminations [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 13 | 10 |
Land and Offshore [Member] | Eliminations [Member] | Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | (51) | (31) |
Land and Offshore [Member] | Land Destination [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 1,182 | 879 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 553 | 434 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 438 | 322 |
Land and Offshore [Member] | Land Destination [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 191 | 123 |
Land and Offshore [Member] | Offshore Destination [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 780 | 669 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Wellbore Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 173 | 162 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Completion & Production Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | 261 | 199 |
Land and Offshore [Member] | Offshore Destination [Member] | Operating Segments [Member] | Rig Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregate revenue | $ 346 | $ 308 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Net revenue recognized from performance obligations satisfied in previous periods | $ 13 | |
Remaining performance obligations | 4,224 | |
Allowance for credit losses | $ 71 | $ 71 |
Revenue - Additional Informat_2
Revenue - Additional Information (Detail 1) $ in Millions | Mar. 31, 2023 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 4,224 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,083 |
Remaining performance obligations, expected to be recognized, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3,141 |
Remaining performance obligations, expected to be recognized, period | 1 year |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Carrying Amount of Contract Assets and Contract Liabilities (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at December 31, 2022 | $ 685 |
Billings | (378) |
Revenue recognized | 317 |
Currency translation adjustments and other | 13 |
Balance at March 31, 2023 | 637 |
Balance at December 31, 2022 | 444 |
Billings | 273 |
Revenue recognized | (273) |
Currency translation adjustments and other | 5 |
Balance at March 31, 2023 | $ 449 |
Revenue - Summary of allowance
Revenue - Summary of allowance for credit Losses (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at December 31, 2022 | $ 71 |
Provision for expected credit losses | 9 |
Recoveries collected | (6) |
Other | (3) |
Balance at March 31, 2023 | $ 71 |
Leases - Schedule of Components
Leases - Schedule of Components of Leases (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current portion of lease liabilities: | ||
Operating | $ 68 | $ 67 |
Financing | 21 | 20 |
Total | 89 | 87 |
Long-term portion of lease liabilities: | ||
Operating | 341 | 334 |
Financing | 215 | 215 |
Total | $ 556 | $ 549 |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,585 | $ 1,585 |
Other debt | 147 | 145 |
Total Debt | 1,732 | 1,730 |
Less current portion | 13 | 13 |
Long-term debt | 1,719 | 1,717 |
Senior Notes, Interest at 3.95% Payable Semiannually, Principal Due on December 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 1,090 | 1,090 |
Senior Notes, Interest at 3.60% Payable Semiannually, Principal Due on December 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 495 | $ 495 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Senior Notes, Interest at 3.60% Payable Semiannually, Principal Due on December 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note face amount | $ 500,000,000 | $ 500,000,000 |
Senior notes interest rate | 3.60% | 3.60% |
Senior note due date | Dec. 01, 2029 | Dec. 01, 2029 |
Senior Notes, Interest at 3.95% Payable Semiannually, Principal Due on December 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note face amount | $ 1,100,000,000 | $ 1,100,000,000 |
Senior notes interest rate | 3.95% | 3.95% |
Senior note due date | Dec. 01, 2042 | Dec. 01, 2042 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Funds available under revolving credit facility | $ 2,000,000,000 | |
Interest rate under multi currency facility | Secured Overnight Financing Rate (SOFR), NIBOR or CDOR plus 1.25% | |
Capitalization ratio, Maximum | 60% | |
Capitalization ratio, Actual | 27% | |
Other debt | $ 147,000,000 | $ 145,000,000 |
Outstanding letters of credit under various bilateral letter of credit facilities | 464,000,000 | |
Carrying value of Unsecured Senior Notes | 1,585,000,000 | 1,585,000,000 |
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of Unsecured Senior Notes | 1,272,000,000 | $ 1,215,000,000 |
Noncontrolling Interests [Member] | ||
Debt Instrument [Line Items] | ||
Other debt | 32,000,000 | |
Other debt due in next twelve months | $ 3,000,000 | |
Canadian Dollar Offered Rate (CDOR) [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.25% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility current borrowing capacity | $ 2,000,000,000 | |
Funds available under revolving credit facility | 1,700,000,000 | |
Credit facility, extendable borrowing capacity | $ 3,000,000,000 | |
Variable rate basis | Secured Overnight Financing Rate (SOFR), NIBOR or CDOR | |
Outstanding letters of credit issued | $ 0 | |
Foreign Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility current borrowing capacity | $ 150,000,000 | |
Variable rate | 1.40% | |
Additional line of credit facility borrowing capacity | $ 120,000,000 | |
Debt to equity ratio maximum | 75% | |
Carrying value of borrowings | $ 114,000,000 | |
First payment | $ 10,000,000 | |
Line of credit repayment schedule beginning date | 2022-12 | |
Line of credit repayment schedule ending date | 2032-06 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 13.80% | (39.30%) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 3 Months Ended | ||
Feb. 23, 2023 $ / shares shares | Mar. 31, 2023 USD ($) Installment shares | Mar. 31, 2022 USD ($) | |
2018 Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 15,000,000 | $ 16,000,000 | |
2018 Plan [Member] | Stock Options [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock options granted | 1,014,002 | ||
Weighted average grant-date fair value of options | $ / shares | $ 9.75 | ||
Weighted average exercise price per share of options | $ / shares | $ 21.76 | ||
2018 Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares granted | 2,228,226 | ||
Restricted stock granted fair value | $ / shares | $ 21.76 | ||
Duration of performance-based restricted stock awards, vested | The restricted stock units vest in three equal annual installments commencing on the first anniversary of the grant date. | ||
Number of equal annual vesting installments | Installment | 3 | ||
2018 Plan [Member] | Performance-base restricted stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Description of performance goal | The 2023 PSAs can be earned based on performance against two established goals over a three-year period | ||
2018 Plan [Member] | Performance-base restricted stock [Member] | Minimum [Member] | Senior Management Employees [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares granted | 0 | ||
2018 Plan [Member] | Performance-base restricted stock [Member] | Maximum [Member] | Senior Management Employees [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares granted | 960,478 | ||
2018 Plan [Member] | TSR Award [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Description of performance goal | 85% with a TSR (total shareholder return) goal and 15% with an internal NVA (“NOV Value Added”, a return on capital metric) goal. TSR performance is determined by comparing the Company’s TSR with the TSR of the members of the Philadelphia Stock Exchange’s Oil Services Sector Index (OSX) for the three-year performance period. The TSR portion of the performance share awards is subject to a vesting cap equal to 100% of Target Level if the Company’s absolute TSR is negative, regardless of relative TSR results. Conversely, if the Company’s absolute TSR is greater than 15% annualized over the three-year performance period the payout amount shall not be less than 50% of Target Level, regardless of relative TSR results. The NVA goal is based on the Company’s improvement in NVA from the beginning of the performance period until the end of the performance period. NVA is calculated as an amount equal to the Company’s (a) gross cash earnings less (b) average gross operating assets times an amount equal to a required return on assets, with certain adjustments. | ||
2018 Plan [Member] | TSR [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Percentage of performance shares awarded | 85% | ||
2018 Plan [Member] | NVA [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Percentage of performance shares awarded | 15% | ||
NOV Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Authorized shares under stock based compensation | 55,700,000 | ||
Remaining shares available for future grants under the Plan | 12,800,000 | ||
Income tax benefit recognized | $ | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Outstanding Foreign Currency Forward Contracts (Detail) € in Millions, ₩ in Millions, ¥ in Millions, £ in Millions, kr in Millions, kr in Millions, R$ in Millions, R in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Mar. 31, 2023 KRW (₩) | Mar. 31, 2023 NOK (kr) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 JPY (¥) | Mar. 31, 2023 BRL (R$) | Mar. 31, 2023 EUR (€) | Mar. 31, 2023 ZAR (R) | Mar. 31, 2023 SGD ($) | Mar. 31, 2023 GBP (£) | Mar. 31, 2023 DKK (kr) | Mar. 31, 2023 CAD ($) | Dec. 31, 2022 KRW (₩) | Dec. 31, 2022 NOK (kr) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 JPY (¥) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 ZAR (R) | Dec. 31, 2022 SGD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 DKK (kr) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 MXN ($) |
Forward Contracts [Member] | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Foreign currency, Cash flow hedging | ₩ 21,765 | kr 2,486 | $ 649 | ¥ 460 | R$ 291 | € 107 | R 30 | $ 27 | £ 17 | kr 15 | $ 2 | ₩ 65,980 | kr 2,741 | $ 655 | ¥ 460 | R$ 291 | € 125 | R 149 | $ 27 | £ 16 | kr 13 | $ 2 | $ 160 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Accumulated other comprehensive loss reclassified into earnings within the next twelve months | $ (11) | |
Gain (loss) recognized in other income (expense), net | $ (5) | $ (3) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Derivative Instruments and their Balance Sheet Classifications (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 5 | $ 8 |
Liability Derivatives | 26 | 14 |
Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 2 | 3 |
Liability Derivatives | 17 | 4 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 14 | 3 |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instruments [Member] | Accrued liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 9 | 10 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 2 | 3 |
Foreign Exchange Contracts [Member] | Prepaid and Other Current Assets [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 3 | 5 |
Foreign Exchange Contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instruments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | $ 3 | $ 1 |
Net Income (Loss) Attributabl_3
Net Income (Loss) Attributable to Company Per Share - Computation of Weighted Average Basic and Diluted Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income (loss) attributable to Company | $ 126 | $ (50) |
Denominator: | ||
Basic—weighted average common shares outstanding | 392 | 387 |
Dilutive effect of employee stock options and other unvested stock awards | 4 | 0 |
Diluted outstanding shares | 396 | 387 |
Basic | $ 0.32 | $ (0.13) |
Diluted | 0.32 | (0.13) |
Cash dividends per share | $ 0.05 | $ 0.05 |
Net Income (Loss) Attributabl_4
Net Income (Loss) Attributable to Company Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive stock options outstanding | 16 | 22 |
Cash Dividends - Additional Inf
Cash Dividends - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Dividends [Abstract] | ||
Cash dividends paid | $ 20 | $ 20 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Other Commitments [Line Items] | |
Amount of claims outstanding receivables | $ 40,000,000 |
Denmark [Member] | |
Other Commitments [Line Items] | |
Received and paid of transfer pricing tax assessment | $ 51,000,000 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - ASU 2020-04 [Member] | Mar. 31, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Mar. 31, 2023 |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |